Investment In India | "Chennai leads Indian property boom"

By : Asia one Business
Source : http://business.asiaone.com
Category : Investment In India

The Indian property market will see more investment from overseas this year as it still remains an attractive investment destination globally.

In a recent report, property broking and real estate consulting firm Jones Lang LaSalle said the Indian property market is poised to attract about US$3 billion, almost double last year's US$1.6 billion, from overseas buyers this year.

Of this, one-third would be from home buyers and the balance from investors. This despite the fact that property prices in India are at an all-time high.

According to a recent National Housing Bank (NHB) survey, property prices in big Indian cities have increased by as much as 43 per cent to 166 per cent in the last four years.

NHB, wholly owned by the Reserve Bank of India, lends to home-mortgage companies.

It also regulates and refinances social housing programmes.

In its report, the bank said Chennai had seen the highest rise in prices at 166 per cent. Bhopal was second with a hike of 117 per cent and Mumbai was ranked third with an increase of 87 per cent.

What then brings overseas investment to Indian property, when prices are skyrocketing? The answer is simple: Despite the global turmoil because of the financial crisis, the Indian economy has remained robust, largely due to domestic-driven demand.

According to Jones Lang LaSalle, India's strong economic growth, rapid urbanisation, growing middle-class population, demographic advantage and increased thrust on infrastructure has worked in its favour.

Buying property is especially popular among Indians living abroad, who all seem to want a piece of the homeland. That is why Indian property shows are burgeoning around the globe.

Dubai-based Sumansa Exhibitions has been holding Indian property shows across five countries.

And every year the number of developers taking part in the shows and the attendees has grown rapidly.

Sumansa Exhibitions' chief executive officer Sunil Jaiswal says: "We have held shows in the UK, South Africa, Hong Kong, Dubai and Singapore. They have been very well received by both exhibitors and visitors alike."

This year Sumansa will hold the Indian Property Show in Singapore on April 14 and 15. It will be held at the Suntec Exhibition Centre's hall 401 and nearly 40 developers from across India will be part of the show.

More than 200 properties will be showcased during the two-day exhibition.

Sumansa expects the number of footfalls at the event to be much larger than the 4,000 that turned up at its last year's event.

Source : http://business.asiaone.com/Business/News/Story/A1Story20120330-336700.html#

Investment In India | "Foreign funding tougher for retailers; new norm to hinder Indian brands"

By :  CHAITALI CHAKRAVARTY & PARAMITA CHATTERJEE,ET BUREAU 
Source : http://economictimes.indiatimes.com
Category : Investment In India

NEW DELHI: A new norm stipulating that only the 'owner of the brand' can invest in Indian retailers selling goods under a single brand threatens to derail their overseas fund-raising plans.

The Foreign Investment Promotion Board, the nodal agency that clears investments entering India, is considering the proposal of an Indian retail company to induct a foreign private equity fund as an investor. The proposal is being closely watched as its fate will determine the ability of Indian single-brand retailers to access foreign capital.

The new norm, restricting foreign investment to the owner of the brand, was notified in January 2012, when 100% FDI was allowed in single-brand retail.

Lawyers working on retail-related transactions say the guideline potentially prevents fast-growing Indian retail brands in sectors ranging from furniture to apparel, from accessing funds from overseas financial investors, private equity players, and perhaps even from foreign single-brand retail companies.

At present, ambiguity is at two levels. The 'owner of the brand' criterion appears to disqualify financial investors and PE players from investing in single-brand retail companies. But there is also confusion on whether an Indian shoe retailer can induct a foreign brand such as Nike as an investor since Nike will not own the Indian brand.

Private equity players, with deep pockets and aggressive growth plans, are stymied by this development. "This clause could be a hindrance. We are discussing with our lawyers to understand it and are awaiting a clarification on it," said Ravi Thakran, managing partner at L Capital Asia, the PE arm of the world's largest luxury conglomerate LVMH Group. L Capital has recently invested in Fabindia, the marquee ethnic wear retail company, and Genesis Luxury Fashion.

"This results in a strange situation where a foreign brand can be brought to India in a wholly-owned Indian subsidiary that can be capitalised to any extent while an Indian brand cannot have access to private equity and can, therefore, be subject to capital-rationing," said Percival Billimoria, senior partner at AZB & Partners.

Some legal experts say it is not clear whether this guideline also bars a foreign brand from acquiring a stake in an Indian single-brand retailer.

"There is lack of clarity on whether foreign brand owners can invest in an Indian entity which is into pure-play retailing of goods under a single brand," said Akila Agrawal, partner at law firm Amarchand Mangaldas.
Indian single-brand retail companies are surprised at this possibility. "This makes no sense to me. Indian retail companies should be allowed to access expertise and capital from foreign brands. We cannot spend 150 years learning how to retail," said Hidesign founder Dilip Kapur. LVMH picked up 20% in the retailer in 2007.



Source : http://economictimes.indiatimes.com/news/news-by-industry/services/retailing/fdi-in-retail-pe-tap-may-close-for-single-brands-new-norm-to-hinder-indian-companies/articleshow/12448562.cms

Investment In India | "Market cues: Asian shares retreat, Indian investment rules and more"

By : NDTV PROFIT
Source : http://profit.ndtv.com
Category : Investment In India

Asian stocks retreated on Wednesday from a one- week high, led by Japanese shares. The MSCI Asia Pacific Index (excluding Japan) slid 0.4 percent while the Japanese Nikkei 225 fell one per cent after rallying 2.4 per cent on Tuesday. A majority of the companies saw share prices dip because they went ex-dividend (the market price is reduced to the extent of the dividend paid per share). Overnight, US stocks fell from near-four-year peaks. In the latest snapshot of the US economy, the US consumer confidence index dipped in March to 70.2, just a tad below the median forecast.

Montek on GAAR

Deputy Chairman of the planning commission, Montek Singh Ahluwalia said that foreign institutional investors or FIIs are justified in their fears around recent tax amendments. The government needs to clarify before investments are hit. He agreed that there may be an impact on investor sentiment. He said had sensed negative reactions from investors.

CLSA stops p-notes

Credit Lyonnais Securities Asia, a foreign securities firm, has stopped selling participatory notes, or derivatives through which foreign investors can invest in Indian securities, citing recent uncertainty regarding the taxation of these products, several sources familiar with the situation said. CLSA has taken the position not to increase its current Indian P-Note book as a way of minimizing the possible tax exposure

L&T Finance buys Fidelity assets

Larsen & Toubro Finance acquired Fidelity Asset Management Company. Fidelity has average assets under management of Rs 8,881 crore and 68 per cent of those assets are equity oriented. While the two companies did not disclose financial details, analysts estimate the deal could be close to Rs 350 crore.
HDFC, Reliance Mutual fund were other bidders.

Essel Group buys 10% in IVRCL

Subhash Chandra-led Essel Group today said it acquired a 10.19 per cent stake in IVRCL, a move that would boost the diversified entity's presence in the fast-growing infrastructure space. Essel Group, which owns Zee group of TV channels, operates in the infrastructure space through Essel Infra. IVRCL has a market cap of Rs 1,612 crore.

Government borrowing programme

The union government plans to raise Rs 3.7 trillion through bond sales during April-September, in line with market expectations, but dealers expect yields to rise on back of heavy weekly supplies. The amount comprises 65 per cent of the government's gross borrowing target of Rs 5.7 trillion for 2012/13, and is in line with Rs 3.6 trillion to 3.8 trillion expected by the bond market.

Promoters buy more of Religare

Financial services provider Religare Enterprises said that it has raised Rs 404.99 crore my making preferential allotment of shares to Hospitalia Information Systems.Religare has allotted 95.97 lakh shares of Rs 10 each for cash at price of Rs 422, including a premium of Rs 412 per share. Hospitalia Information Systems is a wholly owned subsidiary of RHC Finance Private Limited, a promoter group company.

Rio Tinto-iGate

Global mining giant Rio Tinto has entered into an innovation partnership with IT firm iGATE Patni for developing next-generation technologies and expects to invest up to $80 million towards this initiative. Rio Tinto also inaugurated an innovation center in iGATE Patni's facility in Pune -- the Rio Tinto Innovation Centre (RTIC) -- which will play a crucial role in facilitating and leveraging these next generation automated technologies.

TVS buys Rs 100 crore business

TVS Logistics, a part of TVS Group, has acquired UK-based wholesaler and distributor of commercial vehicle parts Universal Components for Rs 100 crore, making it one of the company's largest acquisitions outside India. The acquisition was made by floating a Special Purpose Vehicle -- TVS Europe Distribution Ltd -- promoted by TVS Group Companies' Sri Chakra and Associated Autoparts.


Source : http://profit.ndtv.com/News/Article/market-cues-asian-shares-retreat-indian-investment-rules-and-more-300666

Investment In India | "Vodafone largest FDI in India; won't pull out: Chairman"

By: http://www.moneycontrol.com
Category: Investment In India


In an exclusive interview to CNBC-TV18, Analjit Singh, chairman, Vodafone talks about the company's plan to stay put in India. He also says that as a practising businessman, the sudden change in rules will not auger well for foreign direct investment and the country at large. He mentions that Vodafone has only invested in the country and they haven't taken a single cent out of the country yet.
Below is the edited version of the transcription. Also watch the accompanying video.
Q: Is Vodafone planning to move out of India if it has to pay tax?
A: No, I don't think that is the question on hand, about Vodafone pulling out. The question is fair play. The question is not changing the rules of the games so substantially, particularly in light of Vodafone being the largest foreign direct investor in India.
Vodafone has invested USD 26 billion in India from the time they came in 2007 till now. They have contributed USD 6 billion to the exchequer. Vodafone has not taken a single penny out of the country. The question of Vodafone quitting is not even on the table.
The question is, for a company that came in under a set of rules, under a promise, the democracy that we are in. At his point, this is not the right message for a country.
It's grossly unfair not only for Vodafone India Limited, but for corporate India I think to have had a law for 50 years and not having found any un-ambiguity or fault with it for practically 44-45 years and then all of a sudden to find something terribly wrong with it is incorrect. As a practicing businessman in India, I have to say that this will not auger well for foreign direct investment and for the country at large.

Q: Is Vodafone looking at perhaps international arbitration?
A: I don't know about international arbitration. As the investee company is NV, a Dutch company they will look at legal options on the point of double taxation and avoidance treaty. I believe people are not aware that advantage of not paying capital gains has not been realised by Vodafone.
The capital gain accrued in the hand of Hutchinson. When Vodafone took advice, whether they were required to withhold tax in light of capital gain, every single tax advisor opined that it hasn't happened in 46 years, it won't happen now. So, Vodafone did not withhold tax under advice from eminent tax advisor in this country.
Everybody feels that Vodafone has gained this advantage or Vodafone in entering India has lucked out or cashed out or benefitted by whatever the amount is USD 2 billion, Vodafone has only invested, they haven't taken a single cent out of the country.

Source: http://www.moneycontrol.com/news/business/vodafone-largest-fdiindia-wont-pull-out-chairman_683648.html

Investment In India | "OnCars India Buzz: March 19, 2012"

By: http://www.oncars.in
Category: Investment In India

- Honda plans to introduce diesel variants across its range in India and will launch diesel Brio and Jazz by end of this year. As a part of long-term strategy, the company also plans to establish and develop an engine facility in India to cater to the global markets.


- Most manufacturers are relieved that the government has refrained from imposing additional taxes on diesel cars – although, not very happy about the increase in Excise duty that has affected prices across segments. More importantly, the manufacturers now plan to proceed with their plans to step-up investment in diesel facilities to increase production.


- We have see loads of stuff with Angry Birds branding including the mugs, t-shirts, keychains, dolls etc. But this time they have sling-shot a lot further and directly onto the Formula 1 grid! Rovio Entertainment has sponsored Heikki Kovalainen and Caterham racing for the 2012 F1 season– and the Finn driver will be seen sporting Angry Birds themed helmet most of the season.

- Audi will launch the new TT in India this Friday, March 23 in Mumbai. We are waiting to find out, if only the coupe version will be made available here or Audi will offer the entire range of TTs including the Roadster and RS variants.


- Toyota FT86 and Subaru BRZ generated lot of interest when they were unveiled last year. The identical rear-wheel drive sports cars were jointly developed by the Japanese manufacturers and have now gone into production at the Subaru facility in Japan.

Source: http://www.oncars.in/Car-News-Detail/OnCars-India-Buzz-March-19-2012/2038

Investment In India | "Initiative to boost SA-India trade""

By: SAPA
Source: http://www.iol.co.za
Category: Investment In India

Deputy Minister of Trade and Industry Elizabeth Thabethe is leading a delegation of South African companies to India next week, she said on Friday, to promote trade and investment between the two countries.

Business leaders will visit Chennai and Mumbai from March 19 to 23.

Between 2006 and 2010, bilateral trade between South Africa and India has grown from R16.3 billion to R43 billion and is in South Africa's favour, the department said.

Trade growth over the past four years has averaged 30.4 percent.

The initiative forms part of the department's export and investment promotion strategy, said Thabethe, speaking by phone from India where she is preparing for the tour.

The aim is to create market penetration for South African value-added products and services in India and to promote South Africa as a trade and investment destination.

South Africa will showcase its capabilities in agro-processing, beneficiated metals, mining technology, automotive components, electro-technical and logistics.

Thabethe said 44 small companies and emerging entrepreneurs were represented in the delegation, with over 60 businesses participating in total.

“There are some lessons we can learn from India,” she said.

In order to create five million jobs by 2020, South Africa would need to learn from economies such as India, and localise the lessons to adapt to local conditions, she said.

India's first class technology companies assisted its sectors to move “at the cutting edge,” she said.

She said the initiative would enable emerging exporters to learn about the export process and to gain insight into the Indian market.

While South Africa mainly exports raw materials and unprocessed goods to India, such as coal, scrap metal and ore, it aims to export more value-added products and services.

Currently, Indian imports include petroleum oils, vehicles, telephone handsets and cellphones, and equipment.

In addition, many Indian multinationals have entered the South African market, including Tata, Mahindra, Cipla, Ranbaxy, and Ashok Leyland.

Total foreign direct investment from India to South Africa, to date, amounts to around R28.8 billion.

South African multinationals have also been active in India.

South African Breweries acquired a majority stake in Mysore Breweries and energy giant Sasol is exploring the possibility of setting up a multibillion dollar plant in India.

In addition the Airports Company of South Africa, as part of GVK Consortium, won a bid for the modernisation of Mumbai Airport. - Sapa

Source: http://www.iol.co.za/business/international/initiative-to-boost-sa-india-trade-1.1258154

Investment In India | "How to Invest in India"

By: http://www.investorguide.com
Category: Investment In India


A growing area of interest is how to invest in India due to the South Asian country’s position as the second most highly populated country in the world and its democratic government. Adding to the attraction for investors has been the country’s notable recent growth rate, with India’s GDP ranking 3rd worldwide on a PPP basis in 2011 and racking up an impressive 10.4% growth in 2010 despite financial troubles elsewhere in the world.

Also, the fact that the English language is widely learned and spoken in India has made India an increasingly popular location for outsourcing jobs from the United States, Britain, Canada and Australia that can be performed remotely, including those in the information technology and customer service sectors.

Fortunately, those interested in learning how to invest in India have a growing number of choices available to them. Perhaps one of the easiest methods is to purchase the Indian Rupee — the national currency of India — against another major currency such as the U.S. Dollar or Euro using the forex market.

The Rupee’s ISO 4217 currency code is INR, and it is generally traded as the counter currency in currency pairs. Due to the growing interest in how to invest in India, currency pairs such as USD/INR and EUR/INR are increasingly being offered by online forex brokers as trading instruments for those who open a forex trading account.

Since a currency can be looked at as the stock of a country, investing in India’s performance relative to that of the United States would be as simple as selling USD/INR.  Also, since the Bank of India’s benchmark repo rate is typically higher than the U.S. Federal Reserve’s benchmark interest rate, holding the Rupee versus the U.S. Dollar typically has the added benefit to investors of positive carry.


Source: http://www.investorguide.com/article/10268/how-to-invest-in-india/ 

Investment In India | "Foreign Investors Buy Net 13.9 Billion Rupees of Indian Stocks"

By: Paresh Jatakia 
Source: http://www.businessweek.com
Category:Investment In India

Overseas investors bought a net 13.9 billion rupees ($277.8 million) of Indian stocks yesterday, raising their investment in the equities this year to 395.7 billion rupees, according to the nation’s market regulator.

Foreigners bought 44.1 billion rupees of shares and sold 30.2 billion rupees, the Securities & Exchange Board of India said on its website today. They poured 252.1 billion rupees in February, helping the BSE India Sensitive Index to its second straight monthly gain for the first time since September 2010.

Overseas investors sold a net 4.69 billion rupees of bonds, paring their inflow into debt this year to 240.8 billion rupees, the data show. They put 421 billion rupees in bonds in 2011.

Foreigners have invested 4.84 trillion rupees in stocks and 1.448 trillion rupees in bonds since they were allowed into the country in 1993.

India’s $1.2 trillion stock market, Asia’s fifth-biggest, is influenced by flows from overseas. Inflows from abroad surged to a record in 2010, making the Sensex (SENSEX) the best performer among the world’s top 10 markets. The largest-ever outflow in 2008 led to the biggest annual slump of 52 percent.

Offshore funds pulled out 27.1 billion rupees from local equities last year, compared with record flows of 1.33 trillion rupees in 2010, as Europe’s debt crisis threatened the global economy and cooled demand for emerging-market assets. That led to a 25 percent drop in the Sensex, the second worst annual loss, and sent the rupee to an all-time low.

The regulator provides data on shares bought and sold by large investors, including trades in the primary and secondary markets, with a delay of at least a day.

Source: http://www.businessweek.com/news/2012-03-13/foreign-investors-buy-net-13-dot-9-billion-rupees-of-indian-stocks

Investment In India | "Abu Dhabi sovereign fund looks to buy India property-sources"

By:  Aditi Shah and Dinesh Nair  
Source: http://www.reuters.com
Category: Investment In India

* ADIA looking at direct investment opportunities in India
* $400 mln-$500 mln invested so far in India-source
* ADIA close to hiring fund manager for Indian property-sources
* Fund invested $50 mln in Red Fort Capital fund-source
MUMBAI/DUBAI, March 9 (Reuters) - Abu Dhabi Investment Authority (ADIA), one of the world's biggest sovereign wealth funds, plans to invest directly in Indian real estate in an effort to diversify from its current strategy of ploughing money into the country through realty or private equity funds, sources familiar with the matter said.
ADIA's investments in Indian real estate to date total $400 million to $500 million, largely through property and private equity funds, and the fund is now scouting for direct investment opportunities, one of the sources said.
The sovereign fund, whose assets range from Citigroup bonds to a stake in Britain's Gatwick airport, is close to hiring a country-dedicated fund manager from a large private equity firm to look for real estate opportunities in Asia's third-largest economy, the sources said.
ADIA recently invested $50 million in an India-focused real estate private equity fund run by Red Fort Capital, one of the sources said. In January, Red Fort said it planned to raise $500 million for its second India-dedicated property fund, of which it had already raised $80 million.
Red Fort officials could not immediately be reached for comment.
The sources did not give the name of the person ADIA is hiring and spoke on condition of anonymity as the matter has not been made public yet.
A spokesman for ADIA in Abu Dhabi declined to comment.
Large sovereign wealth funds including Singapore's Government Investment Corp (GIC) are keen to invest in Indian property as the country's cash-strapped developers seek funds to kickstart development and reduce debt.
Debt held by Indian developers hit 1.8 trillion rupees ($35.74 billion) as of September 2011, according to a report by Infrastructure Development Finance Corp.
International private equity firms, which have invested $13 billion in the Indian real estate sector since 2005, are expected to exit from up to $5 billion of investments over the next couple of years, according to property consultancy Jones Lang LaSalle.
This will widen the funding gap for developers at a time when home sales are low and banks are cautious about lending to the sector.
GIC has been in talks with several Indian developers, including oil-to-steel conglomerate Essar Group's real estate arm, Equinox Realty, and developer Godrej Properties, to invest in their projects.
ADIA has expressed "keen interest" in investing in the country, India's Trade Ministry said in a statement in January, adding that it had agreed to speed up the creation of a joint working group to facilitate the fund's investment.
Real estate investments constituted between 5 and 10 percent of ADIA's overall global portfolio, according to its 2010 annual review. The real estate division is run by Bill Schwab, who joined the fund in 2009 from JPMorgan Chase.
North America and Europe accounted for a major chunk of the ADIA's investments, with 60 percent to 85 percent poured into those regions. Emerging markets constituted about 15 percent.
The fund returned 7.6 percent on an annualised basis over a 20-year period as of Dec. 31, 2010, it said in its review.
While the ADIA does not disclose its net worth, analysts estimate its assets to range between $400-$600 billion.


Source: http://www.reuters.com/article/2012/03/09/idUSL4E8E92WH20120309

Investment In India | "Fatherland of Taekwondo ready to invest in Indian talent"

By: Dhananjay Mahapatra
Source: http://timesofindia.indiatimes.com
Category: Investment In India

SEOUL: Thirty years ago, there was a great talent in India! This is how the grandmasters of World Taekwondo headquarters Kukkiwon in South Korea remember Jimmy R Jagtiani.

Jagtiani, the 8th Dan, the second highest rank in this form of martial art, had introduced Taekwondo in India in 1975 after his family migrated to Lucknow from Vietnam.

Known as the father of Taekwondo in India, he has single-handedly kept the spirits in the sport high to attract many to the game, which made its debut as a sporting event in the National Games in 1985. But, the sport has not produced another Jimmy for India.

Kukkiwon feels it is time for India to make its presence felt among the 197 nations, where 70 million people practice the sport. And it has a smart thing to offer: Taekwondowon or Taekwondo Park being built over a 2.3-sq km area with an investment of $504 million.

Ready to open its door by June, 2013, for martial art students across the world, the Taekwondo Park has its heart in the Mind Zone, which has a capacity to induct 1,400 people for training, research and outdoor practice.

With the success of South Korean business houses like Hyundai, Samsung and LG in India, the Taekwondo Promotion Foundation's Seung-ho Kim is optimistic about the promotion of the sport in India through the Taekwondo Federation of India (TFI) and ably supported by corporate houses.

Kim, who is the director general of planning and management of the new Taekwondo Park being set up at Muju, believes that the talent scouted through the regional Taekwondo units in India could be sent to South Korea for advanced training in the martial art to enable them to win medals in international sporting events.

This could boost the game in India. Jagtiani told TOI that the present administrative set up of TFI was managed by bureaucrats and police officials, who knew little about the game's technical aspects and the importance of higher levels of training for coaches.

Now, the Indian youth Taekwondo team is being coached by Korean master Lee Jeong-hee, who has come from Kukkiwon. The Indian team will be participating in the World Junior Taekwondo Championship in Sharm El-Sheikh, Egypt, in April and the Asian Taekwondo Championship in Ho Chi Minh City, Vietnam, in May.

The proficient Taekwondo players from India would find their experience in the new Taekwondowon in South Korea exhilarating, said Kim. "We would like to make the Taekwondowon as a mecca and hub of world Taekwondo players. It will be the centre of training, education and academic research on Taekwondo," he added.

Source: http://timesofindia.indiatimes.com/india/Fatherland-of-Taekwondo-ready-to-invest-in-Indian-talent/articleshow/12216171.cms

Investment In India | "Mega Indian welcome for Japan"

By: Siddharth Srivastava 
Source: http://www.atimes.com
Category: Investment In India


NEW DELHI - The Indian government formally approved the US$100 billion Delhi-Mumbai Industrial Corridor (DMIC), the country's largest infrastructure project, ahead of the three-day visit of Japanese Prime Minister Shinzo Abe this week. 


Japan was made the official partner in the DMIC project during a visit by Prime Minister Manmohan Singh to Tokyo last December. The Japanese government and corporate sector are expected to provide up to $30 billion in loans and investments to support the initiative, in what would be one of Japan's biggest financial contributions to a single foreign project of this nature. 


The first phase of the 1,500-kilometer project from next January to 2012 will include six investment mega-regions of 200 square kilometers each. The second phase will span 2012-16 and will aim to strengthen the industrial hub and integrate the areas further. 


The Congress party-led federal government is rolling out the red carpet for Abe, recognizing the growing strategic and business importance of Japan to India. Abe, who arrived in the country on Tuesday, is scheduled to address a joint session of the two houses of Parliament, a courtesy not even extended to US President George W Bush when he visited India in March, because of opposition by the left-wing parties. Abe met with Manmohan on Tuesday evening. 


Abe, like Manmohan, faces serious domestic political problems, but it is strongly believed that a momentum in India-Japan relations has already been established. New Delhi sees Japan as a natural ally, given mutual historical suspicions about China and close workings with the United States. Abe has said that Japan's relations with India may become more important than with the US or China. 


Abe heads a strong delegation of senior executives from companies that include Toyota, Canon, Mitsubishi, Matsushita Electric, Hitachi, Fujitsu Ltd, Suzuki Motor Corp, Japan Airlines and the Japan Bank for International Cooperation. Most of these companies are looking to tap the growing Indian market further. 


On the agenda is a Japan-India comprehensive economic-partnership agreement, including free trade in goods and services and investment-promotion measures that the two governments are looking to fast-track and implement in the near future. Manmohan and Abe are scheduled to take up the issue in detail. When Manmohan visited Tokyo in December, the two countries spoke about a free-trade agreement within two years. 


"Our goal is to try [to] increase our trade volume considerably," Foreign Secretary Shiv Shankar Menon said this week. According to the Confederation of Indian Industry (CII), Japan's trade with India was $6.5 billion in 2006, less than 4% of its trade with China. India too generates far higher trade figures with China and the US. Between 1991 and 2006, Japanese companies invested $2.15 billion, or just 6% of the total foreign direct investment into India. 


The $100 billion investment in the DMIC is a big chunk of the estimated $320 billion in the short term and more than $500 billion in the medium term that India needs in the infrastructure sector and that the government has committed to generate. New Delhi has been keen to support infrastructure projects, including facilities for manufacturing. 


The Japanese have been shy of investing in India, given its weak infrastructure that includes power, ports, airports and roads. Japanese institutional investors have been actively involved with the Indian stock markets, but direct investment has not been substantial. 


However, with the Indian economy clocking more than 9% growth for the past few years, and prospects of improved infrastructure, Japanese industry and investors are in serious rethink mode. The CII has predicted that two-way trade between India and Japan could double to $14 billion by 2012 from an estimated $7 billion in 2007. 


And certainly, the DMIC is one big area of involvement. The DMIC will run through the northern states of Delhi, Uttar Pradesh, Haryana, Rajasthan, Gujarat and Maharashtra, following a proposed Delhi-Mumbai dedicated rail freight corridor and an Arabian Sea port. 


The corridor envisages a freight rail network, industrial parks, special economic zones, airports, seaports, power plants, food-processing parks and other infrastructure along the stretch between the two major commercial hubs of Delhi and Mumbai. 


This year, an Indian delegation led by Commerce and Industry Minister Kamal Nath visited Japan and had talks with potential investors such as Mitsui, Mitsubishi, Itochu and Suzuki. Most of the infrastructure work connected to DMIC will be executed in public-private partnership format. 


A corporate entity, Delhi Mumbai Industrial Corridor Development Corp, is to be formed to implement planning of the project, development of its various segments, coordinating with all investors and the two governments, monitoring of implementation, and raising funds. 


Business apart, India and Japan are also seeking each other as strategic partners in making a combined pitch for a permanent seat at the United Nations Security Council and military and security cooperation in East Asia to check the influence of China. Beijing has been anxious about the "Quadrilateral Initiative" (Quad) involving India, the US, Japan and Australia. 


India is looking to host its biggest multilateral exercise with navies of the four countries as well as Singapore in the Bay of Bengal next month. Twenty-five warships will include the nuclear-powered aircraft carrier USS Nimitz and the US nuclear submarine SSN Chicago. The US, Japan and India held similar exercises off the Japanese coast last year; this is the first time that the Australians will take part. 


Chinese Foreign Minister Yang Jiechi has conveyed Beijing's concerns to Indian Foreign Minister Pranab Mukherjee over China not being kept in the loop about a forum that will relate to issues in East Asia. 


Though the four countries in the Quad have said disaster management remains the focus of the Japan-promoted exchange, China is anxious that such dialogue could broaden into a deeper military and security cooperation among the four "democracies". 


New Delhi is also looking at Tokyo to back its civilian nuclear deal with the US in international forums such as the International Atomic Energy Agency and the Nuclear Suppliers Group, which need to endorse the pact. Japan's support could tilt the balance, since it is a major civilian atomic power and the only nation to have been attacked with nuclear weapons. 


Tokyo is also considering the possibility of a nuclear-energy cooperation with India, with the business potential of setting up nuclear plants in India estimated at $100 billion. Accompanying Abe are top executives from Mitsubishi, Hitachi and Toshiba, deeply involved in the global nuclear-power business. 


Source: http://www.atimes.com/atimes/South_Asia/IH23Df01.html

Investment In India | "FII inflow into Indian stocks crosses $7 bn in 2012"

By: Business Standard 

Source: http://business-standard.com

Category: Investment In India

The investment by overseas investors into Indian stock market since the beginning of 2012 has crossed $7 billion level, out of which more than $5 billion were pumped in the month of February.

The Foreign Institutional Investors (FIIs) infused a net amount of $5.1 billion (about Rs 25,212 crore) during February, taking the total for 2012 so far to $7.1 billion for the Indian stocks.

Market analysts attributed strong FII inflows to signs of a reversal in RBI's monetary policy and the subsequent impact of improved liquidity position. They expect the positive trend to continue further, given that the liquidity conditions remain strong.

During February, FIIs were gross buyers of shares worth Rs 79,898 crore, while they sold equities amounting to Rs 54,686.6 crore, translating into a net investment of Rs 25,212 crore ($5.12 billion), as per data available with market regulator Sebi.

This is the highest monthly net investment by FIIs in equities since October 2010, where they had infused Rs 28,563 crore.

The foreign fund houses also infused Rs 1,0016 crore ($2 billion) in the debt market last month. This takes the overall net investments by FIIs into debt markets to Rs 25,987 crore ($5 billion) so far this year.

"FIIs have been infusing money into the Indian market due to change in RBI's monetary policy that have added liquidity to the system. This liquidity will help in growth of the country," Wellindia Executive Director Hemant Mamtani said.

"Indian market will continue to witness inflows in the whole year, if the liquidity conditions remain strong," he added.

Strong surge in FII inflows in 2012 so far has helped boost the equity markets, as also the rupee.

The stock market barometer Sensex has gained 15% in 2012, despite a fall of about 3.2% last month. The index finished at 17,752 on February 29.

FIIs had mostly stayed away from Indian equities in 2011. They flocked towards the debt market last year with a net investment of Rs 20,293 crore, while pulling out Rs 2,812 crore from equities.

Source: http://business-standard.com/india/news/fii-inflow-into-indian-stocks-crosses-7-bn-in-2012/159277/on