Investment In India | "Indian economy to pick up from Q2: CII chief"

By : OmanTribune.com 
Source : http://www.omantribune.com 
Category : Investment In India 

LONDON India is likely to see acceleration in economic reforms over the next quarter, and it is the right time to invest in the country as valuations have become reasonable, Confederation of Indian Industry President Adi Godrej has said.

The industry is very confident that over the next quarter, “we will see some strong moves in terms of reforms to accelerate growth”, Godrej said at the Confederation of Indian Industry’s Annual Reception in London late on Friday. He said the industry has been in dialogue with the government to suggest policy changes that would reignite the process of investment and growth.

Among CII’s recommendations are easing of monetary policy, faster implementation of infrastructure projects and control on subsidies. Godrej said this would be a good time to invest in India, given that valuations have become reasonable. This week, Indian Prime Minister Manmohan Singh took additional charge of the Finance Ministry after Pranab Mukherjee resigned to contest presidential elections.

Pushed by Singh after he took charge of the Ministry, his top advisors, including Planning Commission Deputy Chairman Montek Singh Ahluwalia, and bureaucrats have started working overtime to deal with economic slowdown and low investor sentiment.

Meanwhile, signalling the increasing importance the UK attaches to India, British Minister for Energy and Climate Change Gregory Barker has been given additional responsibility for increasing trade and investment with India.

Barker himself made the announcement at the reception. “I have been given additional responsibility for India by the Prime Minister, David Cameron and am delighted to be making this official announcement here today,” Barker said. He will work along with his colleagues Jeremy Brown, Minister of State for Foreign and Commonwealth Affairs, and Lord Green, Minister for Trade.

The move shows the importance that UK gives to India, with three Ministers in the Government having responsibility of increasing bilateral trade and investment relations. The announcement was received by thunderous applause in the historic Banqueting House, packed to capacity with guests including Ministers, MPs, Lords and Ladies, senior UK Government officials and Chief Executives of a large number of UK, Global and Indian companies. Earlier in the day, CII in partnership with the

Recently, global financial services firm Nomura has sharply lowered India’s growth forecast for this fiscal to 5.8 per cent, way below the government’s projection, saying the country’s monetary and fiscal policies are at loggerheads.

Nomura said, “With monetary and fiscal policies at loggerheads, we lower our growth projections...Given weaker initial conditions and limited scope for a major stimulus, we revise down our GDP growth forecast to 5.8 per cent for FY13...,” it said in a report. It has also cut its India GDP forecast for 2013-14 to 6.6 per cent form the earlier 6.9 per cent.

The government is aiming at GDP growth rate of about 7.6 per cent this fiscal. India’s economic growth rate slowed to 6.5 per cent in 2011-12 from 8.4 per cent in the previous two fiscals.

Source : http://www.omantribune.com/index.php?page=news&id=122662&heading=Business

Investment In India | "India for stepped up investment in infrastructure to create jobs"

By : Investment in infrastructure
source : http://zeenews.india.com
Category : Investment In India

India on Wednesday stressed on the need to significantly scale up investment in infrastructure, technology and skills development to create jobs as the world grapples with high unemployment rates amid economic slowdown.

"Overcoming the challenges of global unemployment is a pre-requisite to banish poverty and achieve the Millenium Development Goals.

"We must take concerted action to create an enabling environment at the international and national level for promoting full employment while improving productive capacity," India's Permanent Representative to the UN Hardeep Singh Puri said at the High-Level Segment of the 2012 Substantive Session of the Economic and Social Council here.

He said the sovereign debt crisis in the EuroZone continues to cast its shadow on the process of economic recovery, and has further exacerbated an already serious worldwide unemployment problem.

"We need to see a significant scaling up of public investment in infrastructure, technology, education, and skills development as well as social spending in order to enhance productive capacity and generate employment, particularly in the Least Developed Countries.

"Multilateral development banks, particularly the World Bank, have a role to play here in expanding lending for infrastructure development in developing countries," he said.

He said India concurs with the recommendation of the UN Secretary General Ban Ki-moon that macroeconomic policies need to be realigned to give centrality to the goal of full employment adding that "a business as usual approach" can no longer be afforded to tackle the unemployment and growth challenges.

"The questions of enhancing productive capacity and employment to eradicate poverty deserve the highest priority in national and international policy-making frameworks.

"Further, without putting developing countries, especially Least Developing Countries, at the forefront of the global development agenda, we cannot realistically expect progress on the Millennium Development Goals".

According to the International Labour Organisation (ILO), the world is facing a serious jobs crisis with 200 million people without work, an increase of 27 million since the start of the financial crisis.

In addition, many more are underemployed or in exploitative jobs, with earnings below subsistence level.

Nearly 600 million jobs need to be created over the next decade to stave off the crisis.

Between 2007 and 2011, the number of unemployed young people in the 15 to 24 age bracket has increased by an unprecedented 4.5 million.

Puri said from the perspective of developing economies, the generation of productive and gainful employment on a scale that is sufficient to absorb the growing labour force is a critical element of the strategy for poverty eradication and achieving sustainable development.

Developing countries face the additional hurdle posed by different trade barriers, which have a "deleterious effect" on employment growth in developing countries.

Puri advocated for an early conclusion of the Doha Round so as to reflect the priorities of the Development agenda is therefore imperative.

Source : http://zeenews.india.com/business/news/economy/india-for-stepped-up-investment-in-infrastructure_55087.html

Investment In India | "Annapurna Microfinance raises $2.36 mln from Incofin Investment Management"

By : VCCircle.com
Source : in.reuters.com
Category : Investment In India

Orissa-based Annapurna Microfinance Pvt Ltd (AMPL) has raised Rs 13 crore from Belgian investment firm Incofin Investment Management's Rural Impulse Fund II.

Incofin has invested through equity shares, making Annapurna its sixth equity investment in India. Through this investment, the company would be able to reach out to micro-entrepreneurs in more than 12 states across the country.

Annapurna Micro Finance, founded in 1988 as Gwalior Finance and Leasing Co. Pvt Ltd, is a non-banking finance company which offers micro finance to poor, needy women. The firm also designs and develops financial products and services for the urban poor in the sectors including health, education and rehabilitation, according to a company statement.

As of March, AMPL had around 125, 000 clients in 18 districts of Orissa and Chhattisgarh. It has provided loans worth Rs 35.77 crore. The company, which has funding relationships with 18 banks or financial institutions, is targeting leadership position in Orissa and Chhattisgarh within the next three years.

"We do not only provide finance to the micro entrepreneurs, but also encourage them to build up financial reserves by saving at local banks. Our strategy has been to work closely with rural enterprises and build their financial strength," Gobindra Pattanaik, MD of AMPL, said in the statement.

Incofin is very active investor in India with five equity investments in the last four years including Hope MicroCredit Finance India Pvt Ltd, Fusion Microfinance Pvt Ltd, Grameen Financial Services Pvt Ltd, Asomi Finance Pvt Ltd and Arman Financial Services Ltd. The total investment portfolio includes over 100 MFIs globally across 40 countries.

"Our investment in AMPL stresses our faith in the long-term potential of the Indian microfinance market. Annapurna is a promising MFI with well-balanced social and sustainable commercial returns. We are quite confident that they will attain a leadership position in the regions they operate," said Aditya Bhandari, regional director, Incofin South Asia.

Copyright 2012 VCCircle.com. All rights reserved. This content/article is provided by Mosaic Media Ventures Private Limited and not by Reuters. All rights, including copyright, in this content/article provided by VCCircle.com are owned or controlled by Mosaic Media Ventures Private Limited. The content may not be copied, broadcast, downloaded and stored (in any medium), transmitted, adapted or changed in any way whatsoever without the prior written permission of Mosaic Media Ventures Private Limited.

Source : in.reuters.com/article/2012/07/02/annapurna-microfinance-raises-236-mln-fr-idINDEE8610G220120702

Investment In India | "Coca Cola to invest heavily in India to expand business"

By : India Today
Source : Investment In India
Category http://indiatoday.intoday.in

Despite the gloom that seems to have enveloped India's investment climate, Coca Cola chairman and chief executive officer Muhtar Kent is pretty confident of the market here. He said the company was "very bullish" on India and would invest heavily across the value chain to expand business.

The company has planned to invest $5 billion in India over the next eight years on expanding its bottling and other business capacities.

While interacting with media persons recently, he said, "We plan to invest $5 billion in Indian business between now and 2020. This represents an increase of $3 billion beyond what we had previously committed to investing in this market."

Kent said company's investment in India between 2011-20 will be more than three fold it had made in the previous decade. Between 2000-10, Coca Cola invested $1.4 billion in India.

Kent said Coca Cola targeted to double its business in India by the end of this decade.

The company plans to invest $30 billion globally by 2020. One-sixth of the planned global investment will be made in India.

"Our ongoing investment in India is focused on delivering innovation, partnerships and a portfolio that enhances the consumer experience, ensures product affordability and builds brand loyalty to deliver long-term growth," Kent said.

US-based Coca Cola has invested over $2 billion in India since re-entering the Indian market in 1993. By 2020 the company aims to increase the total investment in India to $7 billion.

Kent said the company targets to double its business globally by 2020.

"Our target is to double our business between 2010 and 2020. What we have achieved in 125 years, we want to create in 10 years," Kent said.

He said the most of the company's growth in the future would come from the emerging markets like India, China and African countries.

Kent claimed that the company provides indirect employment to 150,000 people and the new investments would create thousands of new jobs.

Read more at: http://indiatoday.intoday.in/story/coca-cola-investment-in-india-expand-business/1/202832.html