Category — Economy

U.S. Invests the Most in India’s Startups

According to New York-based CB Insights, U.S.-based investors are the most active foreign participants in India’s start-up ecosystem over the past five years, making over 800 equity deals during the period.

In the list of top five foreign investors in India’s technology ecosystem, U.K., with 1% of deals stood at 5th place; Japan at 4th with 2% of deals; Hong Kong at 3rd with 3% of deals; Singapore at 2nd with 5% of deals; while the U.S. topped with four times the number of deals than investors from Singapore.

Planning in a startup

Business Standard reports: Of the U.S.-based investors, New York-based Tiger Global has been the most active, backing some of India’s largest start-ups, including Flipkart, Ola, and ShopClues, while also making numerous other investments in smaller companies. Hong Kong-based Saif Partners, has backed firms such as Paytm and Urban Ladder. California’s Accel Partners, which has an India unit, made its largest investment in Flipkart through its overseas unit rather than the local one.

Both Tiger Global and Japan-based Softbank have pumped billions of dollars in India’s startup ecosystem in the past few years.

August 31, 2017   No Comments

American Exports to India Support 260,000 U.S. Jobs

According to the publication India Matters for America/America Matters for India created by The East West Center in Washington and the Federation of Indian Chambers of Commerce and Industry (FICCI),”Every U.S. state exports to India; these exports support more than 260,000 jobs directly and indirectly.”

Logos of East West Center and FICCI

The launch of the publication brought together experts from the U.S. Government, business, and academia to assess how the partnership between the United States and India has moved towards greater cooperation in matters of defense, trade and investment, and educational and people-to-people exchange. Particular emphasis was on how local connections at the state level are shaping the relationship.

Other notable bits of information, as reported by the Economic Times:

  • U.S. is India’s 2nd largest trading partner while India is the 9th largest goods trading partner of the U.S.
  • The U.S. is the top destination for Indian goods, forming 14 percent of India’s export
  • U.S. exports amounted to $21.5 billion in goods and $18.1 billion in services to India in 2015
  • U.S. goods imports from India increased from $1 billion in 2000 to almost $45 billion in 2015
  • Nearly 2,000 American multinational enterprises operate in India; sales by these companies amounted to $76.7 billion in 2014
  • Over 200 Indian companies operate in the United States; sales by these companies totaled $25 billion in 2014
  • More than 1.2 million U.S. tourists visited India in 2015, accounting for over 15 percent of all international visitors, contributing over $3 billion to the Indian economy
  • In 2015, over 1 million Indians traveled to the United States. As the 7th largest source of visitor
    spending in the United States, Indian tourists have contributed $11.4 billion to the U.S. economy
  • India’s foreign direct investment in the U.S. totaled $9.2 billion in 2015, up more than 500 percent since 2006. Among the Asia Pacific countries, India is the 7th largest investor in the U.S.
  • Since 2000, the cumulative investment from U.S. into India reached $28.3 billion in 2015
  • The defense trade between the U.S. and India increased from $1 billion to over $15 billion

August 28, 2017   No Comments

Demand for Retail Space in India Surges

According to Los Angeles headquartered CBRE’s India Retail MarketView Report – H1, 2017, during the first 6 months of the year, there were 70 new entries/expansions by global and domestic brands across the cities of Mumbai, Delhi-NCR and Bangalore. Seven new global brands entered the country and investments into the segment by PE firms/wealth funds touched $200 million.

 Anshuman Magazine, chairman, India & South East Asia, CBRE said, “Our ranking on the 2017 Global Retail Index for developing countries as well as continued investment by private equity players is a demonstration of the sustained preference of international brands to set up, or expand their operations in India. With several legislation and policies in implementation mode, we are already seeing an increase in consumer and investor confidence. This will have a cascading effect on the retail segment. Overall, retail real estate will continue to grow and witness healthy demand across tier I and II cities.”

City Highlights

NCR

  • Approx. 200,000 square feet of fresh supply entered the market
  • Low vacancy levels led to select micro-markets in the city witnessing rental appreciation for prime retail developments

Mumbai

  • Leasing activity was driven by domestic F&B operators and foreign retailers from various segments
  • Over 1 million swuare feet of supply was added with opening of the  Seawoods Grand Central Mall
  • Rentals on Linking Road recorded a minor correction while rental values across other high streets and organized retail developments remained largely stable

Bangalore

  • Approximately 300,000 square feet of fresh retail supply entered the market
  • Rental values across high streets and shopping centers remained stable
  • In the coming quarters, sustained traction from both global and domestic brands may lead to rental appreciation in organized developments in the Central, Eastern and Western locations

CBRE says: Going forward, to effectively operate under the new GST regime, retailers will need to review their product pricing based on market expectations, align their supply chain and procurement strategy, rework their distribution channels, and ensure greater compliance to laws to be more cost-effective.

A Mall

August 19, 2017   No Comments

India, U.S. Shift Bilateral Ties to a Higher Strategic Plane

The existing India-U.S. Strategic and Commercial Dialogue, once described by the U.S. State Department as the “signature mechanism for advancing the United States’ and India’s shared priorities,” will be replaced by a dialogue in which the foreign and defense ministers will participate. The new dialogue format will involve the Indian foreign minister and the U.S. secretary of state as well as the Indian defense minister and the U.S. defense secretary.

The new ‘two plus two’ ministerial dialogue was announced in a White House readout of a telephone call between U.S. President Donald Trump and India’s Prime Minister Narendra Modi on the eve of India completing 70 years as an independent country on August 15.

Flags of US and India

Former Indian ambassador to the U.S. Lalit Mansingh said, “It [the new format] helps us because our strategic and defense interests reinforce each other. So a combined dialogue would be useful for India.” “Balancing commercial and strategic issues could be difficult now,” Mansingh added.

Live Mint reports that the two countries will have a separate dialogue on commercial issues, which will not include the foreign ministers.

 

August 18, 2017   No Comments

PE Investments in India Surge 48 percent

According to assurance, tax and advisory firm Grant Thornton India, there were 59 private equity transactions worth $1.22 billion in July this year, and PE investments in India jumped 48% in value terms. July was dominated by investments in start-ups which contributed to 49% of total investment volumes, while the banking sector dominated the PE investment values contributing to 46% of investment values, followed by the pharmaceutical sector.

Magazine with Investment Report written on it“The sector focus this month for PE seems to be the BFSI sector with manufacturing and pharma rallying closely behind,” Grant Thornton India LLP Partner Prashant Mehra said. “The sector flavor for this year has been around the core sectors and we will perhaps continue to see this trend as positive macro-economic factors boost these sectors the most. Also, from an exit through IPO perspective, the probability for success is more in core sectors than others,” Mehra added.

Mehra expects that the key growth will perhaps be from PE deals which serve as an alternate means of financing M&A in India, reports Live Mint.

August 18, 2017   No Comments