Washington D.C.-based global private equity firm Carlyle will raise $1 billion under its new Asian growth fund largely focused on investing in India and China.
Per a disclosure, the International Finance Corp is one of its Limited Partners, and the private sector investment arm of World Bank has committed $25 million to the fund. The new growth fund is expected to make 15 to 20 investments ranging between $30 million to $75 million in China and India, accounting for $800 million of the total amount, reports VCCircle.
March 15, 2017 No Comments
The World Bank Group signed an agreement with the International Solar Alliance to provide $1 billion support to Indian solar energy projects. Led by India, this Alliance consists of 121 countries and was launched at the UN Climate Change Conference in Paris end-November last year, by Prime Minister Narendra Modi and French President François Hollande. Through this Alliance, India aims to collaborate with global agencies and mobilize around $1 trillion of investment in solar energy by 2030.
The World Bank-supported projects include solar rooftop technology, infrastructure for solar parks, bringing innovative solar and hybrid technologies to market and transmission lines for solar-rich states. The cumulative investment in solar would be the World Bank’s largest financing in this sector for any country, reports Business Standard.
Additionally, the World Bank Group has committed $625 million to state-owned State Bank of India to support the grid-connected rooftop solar program which will support the government to achieve its target of generating 40 gigawatts of electricity from the installation of rooftop solar photo-voltaic panels.
July 9, 2016 No Comments
Mark Mobius, Executive Chairman, Templeton Emerging MarketsGroup, is positive on India and believes the Indian economy is on a strong footing. “I can see India growing at 10% in the next few years if reforms continue to kick in,” he said in an interview with Business Standard. “We have $2 billion plus investments in India and we want to increase it,” he added.
Excerpts from the interview below:
The investment sectors of interest in India: “Given the fact that the country is growing and with the on-going reforms, banking is the obvious selection to begin with. And some of the conglomerates, companies that are involved in a number of sectors and getting a wider exposure of the markets will be another area. We also like technology and pharmaceuticals. We have a mix of both public and private bank stocks in our India portfolio.”
Two years of Modi’s Government: “The emphasis of the Modi government on the low income segment of the population is very good. I believe it not just a populist move but is also a key element in making the Indian economy healthy because you are creating a whole new generation of consumers and people who are becoming more productive. The Modi government’s emphasis on empowerment rather than hand-outs is very good.”
U.S. Federal Reserve is expected to increase rates; trajectory down in India; FIIs pulling money out of Indian debt. How do you see things playing out?: “This trend will continue. As long as you continue the reforms of the financial system in India and make it more transparent and efficient then rates will come down. If you see a more efficient productive society with less restrictions, your inflation will come down and interest rates will fall. This should have been done a long time ago. The emphasis of the government on the less fortunate segments of the society is very critical. The fixed income side will see some impact.”
Whether GDP growth of 8% is possible in India: “It (8% growth) is quite possible. I can see India growing at 10% in the next few years if reforms continue to kick in. I believe the numbers are reasonably accurate, give or take half a per cent.”
June 6, 2016 No Comments
Taking a key reform measure to improve ease of doing business, a parliamentary panel in India approved a bill to update outdated bankruptcy regulations. The panel proposed that the Insolvency and Bankruptcy Code should include laws to seize overseas assets of defaulting companies and individuals. The legislation, which will make it easier to wind up a dying company or recover dues from a defaulter, could be passed in the current session of parliament that ends on May 13, Finance Minister Arun Jaitley said.
World Bank data shows that creditors in India recover about 25.7 cents on the dollar in the 4.3 years it takes to resolve insolvency compared with 80.4 cents in the U.S. in less than half that time, which deters lending and investment, reports Bloomberg. The panel has also suggested that apart from banks, the state- owned Life Insurance Corporation and Infrastructure Development Finance Company be included in the list of lenders.
The legislation proposes:
- an insolvency regulator
- procedures for early identification of financial distress in companies, and
- time-lines for their revival or shutting down
Insolvency issues are to be dealt with in a time frame of 3 to 9 months.
Among other measures to recover bad loans, India is planning to change rules, allowing debt recovery tribunals to limit cases to two hearings and give a ruling within 30 days of the final hearing.
May 3, 2016 No Comments
In an interview with the Economic Times, Professor Kaushik Basu, chief economist of World Bank remarked, “If you look at the growth table of performance among big economies all over the world, India, today in our World Bank table, tops the chart and this has never happened before. So overall the economic situation is good.”
However, with the global scene taking a turn for the worst, he cautioned that reforms and policy vigilance was very important. “There are risks to global growth. It can slowdown more and if that happens it is bound to affect India because today no country is isolated. But the main sector where India has to pay a lot of attention is India’s export sector where India has not done well despite the fact that India is the fastest growing major economy in the world… and a lot of attention ought to get this back again to full steam.”
April 4, 2016 No Comments