India Holds $124 Billion in U.S. Securities

The most recent data available with the U.S. Treasury Department shows that India increased its holding of American government securities to $124.1 billion at the end of April, a $7 billion increase from the previous month.

Among the BRIC nations, India had the third largest exposure to the U.S. government securities after China and Brazil, while Russia‘s holding rose to $104.9 billion reports the Press Trust of India.

With the U.S. economy witnessing relatively better economic growth trends, India has hiked its exposure to the securities. According to the latest estimate from the Bureau of Economic Analysis released last month, “Real gross domestic product increased at an annual rate of 1.2 percent in the first quarter of 2017.”

picture depicting growth

June 27, 2017   No Comments

In 2016, India Held $118.2 Billion U.S. Government Securities

Data available with the U.S. Treasury Department showed that India was the 12th largest holder of U.S. government securities at the end of 2016, with exposure worth $118.2 billion in December.  Among the BRIC countries, India stood at 3rd place after China and Brazil in terms of exposure.
US Currency
Japan – $1.09 trillion
China – $1.06 trillion
Ireland – $288.2 billion
Cayman Islands – $263.5 billion
Brazil – $259.2 billion
Switzerland – $229.3 billion
Luxembourg – $223.4 billion
United Kingdom – $217.1 billion
Hong Kong – $191.4 billion
Taiwan – $189.3 billion
Belgium – $120.4 billion
India – $118.2 billion

April 13, 2017   No Comments

India’s Motherson Sumi Acquires Finland’s Automotive company

Noida, India-based automotive component firm Motherson Sumi Systems, a joint venture between its parent Samvardhana Motherson Group and Sumitomo Wiring Systems of Japan, acquired Finland’s PKC Group Plc for about $609 million.

“We are very happy to announce that we have successfully acquired 93.75 per cent shareholding in the PKC Group, which has significant market presence in the American and European markets with major growth plans in China,” chairman Vivek Chaand Sehgal of Motherson Sumi said in a statement. The acquisition will expand the company’s footprint significantly in the commercial vehicle segment.

Headquartered in Helsinki, Finland, PKC is a global tier 1 supplier of wiring harness and associated components to original equipment manufacturers in the heavy and medium duty commercial vehicles and locomotive segments across North America, Europe, Brazil and China, reports Livemint.

Motherson Wiring Harness

Motherson Wiring Harness

 

April 3, 2017   No Comments

India’s Growth Shatters Auto Sales Records

More than three million cars were sold last year in India, a 6.4% increase over 2014, according to Euromonitor. Sales are expected to grow by 4.7% in 2016 as buyers are encouraged by lower fuel prices and reduced interest rates, reports CNN Money.
“We are going to see a flood of crossovers hitting the market,” said Anil Sharma, principal analyst at IHS Automotive. These models — half sedan and half SUV — appeal to consumers looking to make a lifestyle statement.

Tata Hexa a Crossover SUV

Tata Hexa: a  crossover SUV

Indian consumers are very sensitive to shifts in economic conditions. For the vast majority of the country’s 1.3 billion citizens, cars are still a luxury product. Prices are also low compared to the global average: A new car can cost as little as $3,000.
Neil King, auto analyst at Euromonitor, says India has the potential to leapfrog Brazil, Germany and even Japan to become the third largest car market by 2030.

February 13, 2016   No Comments

Global Executives Rate India as Most Attractive Investment Destination

32 percent of 505 global investors named India as the favored market for investment according to a survey published by accounting firm Ernst & Young. China was second with 15 percent of the vote, followed by S.E. Asia, Brazil and N. America.
“There is no doubt that interest in India has increased,” Mark Otty, Ernst & Young area managing partner for Europe, Middle East, India and Africa said.  “Investors increasingly see the potential and understand the fundamentals.”  Industrial policy secretary Amitabh Kant said that the government was “determined to make India an extremely easy and simple place to do business. Our first priority is to do away with the many procedures and rules, followed by bringing in consistency and clarity in all our policies and tax regime and developing a world-class infrastructure.”
Channel NewsAsia reports that according to Financial Times data service, fDi Markets, Greenfield foreign direct investment (new ventures) in India rose 32 percent to $25 billion in 2014 after declining in the previous two years.

November 10, 2015   No Comments