Category — Politics

India in Top 8 on Global FDI Confidence Index

With 31 percent of the surveyed respondents being more optimistic on the economic outlook over the next three years, India has jumped one spot to rank 8th in the 2017 AT Kearney Foreign Direct Investment (FDI) Confidence Index.

Vikas Kaushal, partner and head of India at U.K.-based AT Kearney said, “Investors see India as a vast and diverse up-and-coming market with plans to increase investments there over the near to medium term. Reform efforts by the current government have improved the country’s investment environment. India’s vast domestic market is an added attraction for foreign companies. Investors are looking at India’s phenomenal economic performance as a key selling point. It is forecast to be the fastest-growing major economy in the world in the coming years, which should provide a variety of investment opportunities to global firms.”

Magazine with Investment Report written on it

Business Standard reports that according to Kearney, 70 percent of the respondents plan to maintain or increase their FDI in India in the coming years. The government will eliminate the need for FDI approvals in sectors where licenses are also required, such as defense, telecommunications and broadcasting.

April 20, 2017   No Comments

Australia Readies Uranium Supply for India

At a joint news conference in New Delhi with visiting Australian Prime Minister Malcolm Turnbull, and Prime Minister Narendra Modi, Turnbull said Australia was looking forward to the first export of Australian uranium to India as soon as possible. “We have worked closely with India to meet our respective requirements for the provision of fuel for India’s civil nuclear program,” he said. “Now we are working with India to secure timely conclusion of a quality Regional Comprehensive Economic Partnership, which would provide a significant boost to regional confidence,” he added.

Indian Prime Minister Modi said that cooperation between the two countries in the energy sector, including renewable energy, was on the upswing.

Turnbull and Modi at Akshardham Temple

The two leaders inaugurated a research center on nano and bio technology. At the event, Modi said that the Australia-India Research Fund of nearly $100 million “has focused on collaborative research projects in the areas such as nano-technology, smart cities, infrastructure, agriculture and disease control.”

April 20, 2017   No Comments

National Security Advisor McMaster meets PM Modi

On his first official visit to the region, United States National Security Advisor H.R. McMaster,  met Prime Minister Narendra Modi in New Delhi, this week. McMaster is the highest ranking Trump administration official to visit India so far.

“The two sides discussed a range of bilateral and regional issues, including their shared interest in increasing defense and counter-terrorism cooperation,” the U.S. Embassy in New Delhi said after the meetings. “NSA McMaster emphasized the importance of the U.S.-India strategic relationship and reaffirmed India’s designation as a major defense partner,” it said, noting that the meetings were ‘productive’.

McMaster-Modi Meeting

The Indian side said, “The Prime Minister recalled his positive telephonic conversations with President Trump that reaffirmed the importance attached by both sides to the strategic partnership and to stepping up India-U.S. engagement across the board.”

During the meeting, both McMaster and Modi exchanged views on “how both countries can work together to effectively address the challenge of terrorism and to advance regional peace, security and stability,” reports the Indian Express.

 

April 20, 2017   No Comments

Modi to Visit USA to Meet President Trump Soon

United States National Security Advisor H. R. McMaster met Prime Minister Narendra Modi in New Delhi in the third week of April setting the stage for a bilateral visit by India’s Prime Minister in the next few months, possibly as early as June.

US and India Flags

Trump and Modi will meet anyway in early July during the G-20 summit in Hamburg, Germany. However, both Indian and American government sources confirmed the possibility that Modi may travel to the U.S. for a stand-alone bilateral visit in June or July, reports the Indian Express.

April 20, 2017   No Comments

KKR likes India’s new Bankruptcy Code

New York City-based Kohlberg Kravis Roberts, a multinational private equity firm, specializing in leveraged buyouts, proactively engaged with India’s Federal government on the new bankruptcy code. The Code seeks to consolidate and amend laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner.

KKR produced a white paper on the subject after co-chairman Henry Kravis told Narendra Modi that India lacked proper bankruptcy laws during the latter’s first visit to the U.S. in 2014, soon after becoming prime minister.

I have never seen a government move so fast,” Kravis said. “He (Modi) was back in New York six-nine months later and he told me ‘we’re doing it’. And now what I hear from the lawyers is that it is a pretty darn good code.” The bankruptcy code was approved by India’s Parliament in May last year.

Signboard on Bankruptcy
The Economic Times says: Kravis’ prescription is this: Quantify bad loans as per their fair-market value and not by oft-used matrices like replacement costs, and sell them to asset reconstruction companies with a haircut. That will affect the net worth of the banks and that’s where the government needs to step in to recapitalize balance sheets by selling shares to lower state ownership to below 51%.

“You just place a threshold and say across every industry if the loan is substandard by a certain value or percentage then it goes into the pool and the government tells the banks that we bridge your equity. Banks have to go back to lending once again. In India, they are still the main source of capital.”

April 16, 2017   No Comments