Navigating the financial markets can be difficult in this volatile environment we’ve experienced in recent years, which is why it is more important than ever to have a financial dashboard to ensure you do not drive off a cliff. If investors do not have the time or focus to drive their financial future, then perhaps for the safety of themselves and others, they may consider riding a bus or hiring a chauffeur. For those committed to handling their own finances, the road may become rocky, so here are some important factors to monitor on your financial dashboard:
1) Fundamental Direction: Before you decide on an investment destination, it is important to know whether trends are accelerating (speeding up) or deteriorating (slowing down) – see also Forecasting – Trend Analysis. There is a broadly diversified global menu of investment options and asset classes, and if your hands are on the wheel, you need to determine which roads (investments) are providing the best driving conditions. If your investments are out of control, you may get lost or end up in a ditch.
2) Are You Going the Speed limit? Nobody wants to get a costly speeding ticket, therefore assessing valuation metrics (i.e., risk) on your dashboard is a requirement. If you are speeding along the highway at a 100 miles per hour in an expensive stock (e.g., trading at a 50x+ Price/Earnings multiple), then there is little room for error. When traveling that fast the price of a speeding ticket becomes irrelevant, because hitting a pothole at those speeds (valuation) can be much more costly to your portfolio…irreparable damage.
3) Temperature Outside: There’s a huge difference between driving in the icy-cold snow and 100 degree heat. Each environment provides its own challenges. The same principle applies to the financial markets. On occasion, sentiment can become red hot, forcing heightened caution, whereas during other periods, chilling fear can scare everyone else off the roads, leaving clear sailing ahead. Correctly understanding the emotional temperature of financial markets is paramount.
4) Optimal Tire Pressure: Low pressure or bald tires can lead to treacherous driving conditions. A company with healthy cash flow generation relative to its market capitalization can make your investment ride a lot more stable (see also Cash Flow Register). Remember, dividends and share buybacks are not generated out of thin air – they are a byproduct of healthy and stable cash flows. Earnings on the other hand are an accounting measurement that can easily be manipulated and distorted (see also Accounting Tricks up Corporate Sleeves).
5) Driver Skill Level: People generally believe they are better than average drivers, however statistics tell a different and more truthful story. By definition, half of all drivers must be below average, but overconfidence skews investors’ self-perception. If you are going to put your life’s retirement assets into a specific manager, you might as well select seasoned managers or companies with proven track records. On the other hand, if you are going to do the driving yourself, develop a systematic, disciplined process that can accommodate your shortcomings and also account for risk control.
Many investors drive blindly without relying on a dashboard. In the investment world, visibility is not very clear. Often, weather conditions in the financial markets become rainy, dark, and/or foggy. If you don’t want your portfolio to crash, it makes sense to build a reliable investment dashboard to navigate through the hazardous financial road conditions.
Source- valuewalk
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Tuesday, 29 December 2015
Monday, 28 December 2015
Over $1 Billion PE Investment Recorded In India’s Renewable Energy Sector In 2015
Global investors and renewable energy project developers have responded with optimism to the change in regulatory and financial environment in India.
International private equity investors poured in over $1 billion in renewable energy companies in India in 2015. Just the top 5 deals in the renewable energy sector crossed a cumulative volume of $1 billion. The investments poured in as the Indian government announced ambitious capacity addition targets for 2022.
By 2022, India aims to have 100 GW of solar power, 60 GW of wind energy, and 15 GW of other renewable energy capacity. This means that over the next 7 years around 140 GW capacities needs to be added across the country.
The largest investment deal involved GE Energy Financial Services and Welspun Renewables Energy. GE Energy Financial Services acquired an undisclosed equity stake in the company. Welspun Renewables Energy, part of the Welspun Group, is one of the leading private sector renewable energy development companies in India; it operates India’s largest solar power project.
ReNew Power Ventures, another private sector renewable energy project developer, and raised $265 million from various investors. The company roped in a new investor – Abu Dhabi Investment Authority – which poured in $200 million. The balance investment was made by Goldman Sachs and Global Environment Fund. After these investments, the total private equity investment in ReNew Power increased to $655 million.
The Singapore government’s investment arm, GIC, signed an agreement with Greenko Group Plc for the $253 million acquisition of Greenko Mauritius, believed to be the direct owner and developer of several renewable energy and power assets in India. Greenko owns several power plants in India based on wind, hydro, biomass, and natural gas power technologies, with its largest footprint in the wind energy sector. The company operates over 800 MW power capacity, including 5 wind energy projects across multiple states in India.
Another wind energy project developer, Ostro Energy, raised $230 million from Actis Advisors Limited. Ostro Energy is looking to significantly increase its footprint in India’s wind energy market, and the company plans to add 800 MW capacities over the next few years.
Orient Green Power Limited managed to raise $153 million from Forefront Capital Management Limited. The company is looking to retire debt and possibly expand its operational base across various renewable energy technologies.
Source-cleantechnica
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“Make in India’ looks at $120-bn investment from 10 companies”
The government is expecting its ‘Make in India’ programme to be a major success, with a report by the Department of Industrial Policy and Promotion (DIPP) revealing that 10 companies have either committed or indicated investments worth $120 billion, mostly over a period of five to 10 years.
Asked how much of the investments committed could actually translate into reality, DIPP Secretary Amitabh Kant said: “We are confident that these committed investments will actually flow in.” Prime Minister Narendra Modi will inaugurate the Make in India Week in Mumbai on February 13. The event will focus on innovation, design and sustainability, and is expected to witness the participation of over a 1,000 companies and delegates from over 60 countries, he added.
According to the list prepared by DIPP, Reliance Industries, under the Digital India campaign launched on July 1, has pledged an investment of $42 billion, which is expected to create 500,000 direct and indirect jobs. However, the timeframe for such investments isn’t revealed in the list. RIL, under the Reliance Jio brand, has also committed to roll out internet protocol-based wireless broadband infrastructure across the country, and is also expected to set up a nationwide distribution network for small vendors to sell and service devices.
Similarly, SBG Cleantech Consortium (SoftBank Corp, together with Bharti Enterprises and Foxconn) will invest about $20 billion over the next 10 years to generate 20 gig watt (GW) of solar power and manufacture solar power equipment in India. The consortium SBG Cleantech Ltd would scout for project land in Andhra Pradesh and Rajasthan. The new company intends to participate in the 2015-16 round of solar power plant tenders under the National Solar Mission (NSM) as well as state-specific solar ventures. Foxconn would help with solar equipment for the projects.
Bharti Enterprises has also committed to invest $16.7 billion in the next five years. The funds will be invested in creating infrastructure in rural and urban areas and setting up an eco-system to enable usage of e-health and e-education facilities. The company also plans to manufacture a range of affordable electronics products in India through collaboration with various manufacturers around the world. Dalian Wanda Group has decided to invest $10 billion over the next five years and has been considering a few sites to develop integrated industrial townships and theme parks. Idea cellular has indicated investments $7 billion by 2020 for network and broadband deployment.
Other notable companies that have either indicated or committed investments are Sterlite Technologies, Adani Group, Foxconn Technology, JSW Steel, Reliance ADAG, IKEA, Airbus, CISCO, Bombardier, Siemens, General Motors and Uber Technologies.
Source-financialexpress
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Tuesday, 22 December 2015
India one of the most preferred real estate markets in Asia Pacific, says report
Among Indian cities, Bengaluru emerges as the most preferred real estate investment destination, overtaking Mumbai, New Delhi in previous years
The Indian real estate market has won back favor among foreign investors to become one of the most preferred destinations in the Asia Pacific, according to a report by PricewaterhouseCoopers (PwC) India.
Overseas funds accounted for more than 50% of all investment activity in India in the last one year, compared with just 26% for the whole of 2013, the consultancy firm said in a report titled Emerging Trends in Real Estate Asia Pacific 2016 released on Wednesday.
“Flows of foreign capital to India began increasing dramatically at the end of 2014, with the amount invested growing almost 200% year-on-year by the middle of 2015,” the report said, citing data by Real Capital Analytics that provides information on commercial property.
PwC attributed the growing interest among foreign investors into the Indian real estate market to some of the liberalization measures adopted by the government in the recent past.
For instance, reducing the minimum size of built-up areas in foreign direct investment (FDI)-linked real estate projects to 20,000 sq. m from its earlier requirement of 50,000 sq. m has led to “increasing confidence among institutional investors they can find an exit”, it said.
“From a deal structure perspective, while mezzanine financing continues, a shift in the favor of equity structures has occurred, especially in big-ticket transactions in commercial assets such as business parks and IT parks,” said Abhishek Goenka, partner, PwC India.
Foreign private equity funds are now some of the biggest corporate real estate owners in India, after starting from scratch in 2011-12, the report pointed out.
Among the Indian cities, Bengaluru has emerged as the most preferred real estate investment destination, overtaking Mumbai and New Delhi in the previous years.
The report attributes the surge in Bengaluru’s rankings to its technology industry and the availability of a large pool of skilled labour that is necessary to ramp up venture capital-backed start-ups.
A huge amount of upcoming supply of commercial office inventory in Bengaluru is not perceived to be a cause of concern, as it is expected to be matched by an equally high absorption rate, the report said
Source-livemint.com
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'Make in India' has tremendous impact on investments
Government's 'Make in India' campaign aims at transforming the country into a global manufacturing hub and has already made a "tremendous" impact on the investment climate as evidenced by the growth in FDI, Parliament was informed today.
"The Make in India initiative of the government has made a tremendous impact on the investment climate of the country, as shown by significant growth of the overall foreign direct investment (FDI)", Commerce & Industry Minister Nirmala Sitharaman said in a written reply to the Rajya Sabha.
The flagship program of the Modi government aims at developing the country as a global hub for manufacturing, innovation and design for both domestic and foreign markets.
The initiative was launched in September last year by the Centre to focus on invigorating the country's manufacturing sector.
India received $32.87 billion FDI during October 2014 to September this year
Source-economictimes.indiatimes.com
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Tuesday, 15 December 2015
Tips on making India the most investment-friendly country
Job creation has been one of Narendra Modi's key initiatives ever since he took oath as the Prime Minister of India in 2014. During his campaign Modi promised to create 3 million new jobs for India's youth and in July he set the wheels in motion with the launch of the National Career Counseling Portal. Modi, with help from the central banker Raghuram Rajan, is aggressively reshaping India's business economy to help prepare it for potential future growth.
It's exciting to see Modi taking action to create more opportunities for the newest members of the workforce. While his efforts to-date has created good momentum, I have an idea for accelerating that progress. If Modi is wondering where he can find room for the 3 million new jobs he's hoping to create, I have one suggestion: Startups.
Small businesses have created two-thirds of new jobs in the US since the 1970s, according to the US Small Business Administration. India could easily experience such growth with the amount of energy Modi and his administration is putting into Digital India. In fact, Indian startups could employ a majority of the 2 million new youth that join the workforce every month, effectively employing the next generation. The only missing ingredient in this recipe for success? An environment conducive to funding.
Indians startups don't miss out on funding due to a lack of money. There is plenty of venture capital in the global economy to go around. The problem is Indian policy makes it incredibly difficult for startups in India to receive venture money. Plenty of people want to invest in the country's future, but few care enough to deal with ambiguous taxes, the endless paperwork and legal headaches. Understandably.
There are a couple actions the government should take to make way for the money and establish India as the most investment-friendly country in the world. As a start, the government should base its decisions on two principles. First, adopting best practices and policies creates a stable, predictable and transparent environment for investors to place their money. Second, benchmarking against other countries can help reduce transaction costs. Below are specific tactics the government can use to execute on these principles, which will create an environment amenable to investors both local and international.
1) Modify Tax Policies to Make India the #1 Investment Destinations
If one seeks a weather vane for the economy or a gauge that will predict tomorrow's business climate, they need only review the current tax policy. The government's attitude toward investment greatly influences whether the money is staying or leaving. India has an ambiguous tax code that scares investors away. In a recent ABA survey, attorneys said they were more hesitant to work with Indian companies than Chinese, US or U.K. businesses because of the regulatory environment. The best way to make India the No. 1 investment destination is by clarifying rules and taxes. If India really wants to open the spigot on capital they can reduce the capital gains rate to zero for a period of, say, 20 years. At the very least, the government should make the capital gains rate flat and predictable. Firms have already found a path through Mauritius. Why not roll out the red carpet directly?
The effectiveness of a zero-capital-gains-rate policy was proven in the US during the 70s and 80s. Profits from exits were a key driver for Silicon Valley's rise, as investors recycled funds from exits to back more companies. Moreover, India already has a zero capital gains rate for stock market floor transactions. Why not extend it to private markets as well? The income tax money created by new jobs will fill the government's coffers and, ultimately, less than 1 percent of tax revenue comes from capital gains anyhow.
The above modification in the tax policy will barely affect the budget, while offering massive benefits, both PR-wise and GDP growth-wise, for the Indian government. I estimate this change would produce a 1-2 percent increase in the GDP growth rate.
2). Simplify Exits to Increase the Velocity of Capital Flow
In order for the startup ecosystem to function, businesses must be able go through every stage of the lifecycle without hassle. Investors and entrepreneurs must be able to exit through acquisition or IPO if the company succeeds or a swift bankruptcy process if it fails. Making exits easier is key to attracting and maintaining more capital in India.
Every investor dreams of taking a company public. It's the ultimate proof of concept when a business is able to stand on its own. Once a startup reaches IPO, the investor may feel it's time to move on to his or her next venture. Unfortunately India's Companies Act of 2013 puts serious restrictions on investors and entrepreneurs in what would otherwise be an enviable scenario.
Source- economictimes.indiatimes.com
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Monday, 14 December 2015
Japan promises Rs 83,000-cr 'Make in India' fund to boost investments
Seeking to step up bilateral cooperation, Japan has set up a 'Make-in-India' fund of 1.5 trillion yen (approximately rs 83,000 crore), while India promised to devise a special package of incentives for attracting investments in 'Japan Industrial Townships'.
Prime Minister Narendra Modi welcomed the 'Japan-India Make-in-India Special Finance Facility' of up to 1.5 trillion yen by Nippon Export and Investment Insurance (NEXI) and Japan Bank for International Cooperation (JBIC), according to a joint statement issued after the meeting between Modi and Japanese Prime Minister Shinzo Abe on Saturday.
This agreement aims at promoting direct investment from Japan to India and to support their business activities with counterparts in India, including development of necessary infrastructure, and to help materialize 'Make-in-India', the statement noted.
It said that Prime Minister Abe expressed his expectation on further enhancement of reform measures including in the financial sector. “The two prime ministers decided to deepen mutual cooperation regarding the Make-in-India policy," the statement notes.
The two sides also reaffirmed the "intention to develop 'Japan Industrial Townships (JITs)', with investment incentive for companies that would not be lower than under the prevailing policy framework such as Special Economic Zone (SEZ), and National Investment and Manufacturing Zone," it added.
"Moreover, both sides will work toward evolving special packages for attracting Japanese investment in the JIT in India," the statement said.
Both countries also welcomed the progress in the flagship projects such as the Western Dedicated Freight Corridor and reaffirmed the determination to expedite the Delhi-Mumbai Industrial Corridor (DMIC) projects.
India and Japan further concurred to take the Chennai-Bengaluru Industrial Corridor (CBIC) project to the next stage of concrete implementation by utilising Official Development Assistance (ODA) loan schemes and other facility measures.
"Indian side expressed a hope to attract $5.5 billion (approximately Rs 36,729 crore) of investment and other support," it said.
Recognizing the important role played by Japan's ODA, the two sides hoped that the total commitment of Japanese ODA yen loan to India in 2015-16 may reach around 400 billion yen (approximately Rs 2,240 crore) , the highest ever provided to India, it said.
Prime Minister Abe expressed Japan's intention to provide ODA loans for the improvement of road network connectivity in North-Eastern states of India, the peripheral ring road surrounding Bengaluru, and the horticulture irrigation in Jharkhand.
Seeking the synergy between India's Act East policy and Japan's Partnership for Quality Infrastructure, the two prime ministers decided to develop and strengthen reliable, sustainable and resilient infrastructures that augment connectivity within India and between India and other countries in the region.
The two sides also pledged to advance industrial networks and regional value chains with open, fair and transparent business environment in the region, the joint statement said. India and Japan stressed the need for further actions for investing in the future.
Prime Minister Abe also expressed his intention to support India's efforts by sharing its advanced skills and technologies and through active mobilisation of Japanese public and private sector involvement, including Official Development Assistance (ODA).
"The two prime ministers welcomed the steady progress to realise 3.5 trillion yen (approximately Rs 1.96 trillion) of public and private financing to India in five years under the 'Japan-India Investment Promotion Partnership' announced during the last annual summit meeting," it added.
Modi briefed the Japanese Prime Minister on his agenda of reforms to make India the investment destination with the most business-friendly environment. "Prime Minister Modi reaffirmed his determination to improve the business environment in India," it said.
The two sides expressed hope that investment-related assistance, guidance and support extended by Japan Plus will become even more effective and efficient through enhancing coordination with stakeholders.
Both the sides also stressed on the importance of expansion in the two-way investment, it said, adding Japan "expressed the intention of establishing a new mechanism, 'Japan-India IoT Investment Initiative' to promote investment in Internet of Things (IoT) related area".
The two sides have recognised the importance of close collaboration in the energy sector through measures such as use of environmentally friendly coal-fired power generation technology, and Clean Coal Technology.
The two sides also shared their intention to raise the level of their ambition through the establishment of joint research laboratories; enhanced exchanges between young scientists and those under 'Japan-Asia Youth Exchange Program in Science'; the establishment of joint research centers in India in the field of Information and Communications Technology (ICT).
Further, it added that both the countries will further advance their cooperation by providing Indian trainees with opportunities to acquire industrial skills in Japan including under the Technical Intern Training Program.
Source- asianage.com
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Friday, 11 December 2015
India’s a promising destination for real estate investment
With regulatory changes, including easing of foreign direct investment rules and better execution capabilities, Indian realty is being preferred as an investment destination by global investors. The global investment community is closely tracking the performance of the sector and the confidence they would derive from this will bring in robust inflows into this space, said Stuart Roberts, CEO, Asia-Pacific, Cushman & Wakefield.
In an exclusive interaction with ET's Kailash Babar, Roberts said that the government can improve the much-needed transparency by taking processes and approvals online and such initiatives will improve the Indian property sector's perception in the eyes of international investors. Edited excerpts:
What's your assessment of the overall investor sentiment and confidence towards real estate as an asset class in India? The India investment market is buoyant, up 84 per cent year-on-year. However, by global standards, it remains small at $2.8 billion. Foreign investors are most active (over domestics) and are mainly targeting Delhi and Mumbai.
In India, PM Modi's biggest contribution thus far has been getting the focus back on development issues and instilling a fragile sense of optimism. Some reforms have taken place (the real estate proposals from this month are quite ground breaking), not to mention that some more big-ticket items are in the works.
Do global investors view the Indian property market as an investment destination? India is definitely on the radar for many sovereign wealth funds and pension funds and they are looking for stable returns from India. Currently, they prefer leased assets which are devoid of developmental risk, but eventually their initial investment experience would give them confidence to underwrite semi-developed and under construction projects.
The international investment community is closely watching the performance of current investors and even these investors can write larger cheques in future once they find success with initial investments. So, India is a promising destination for investment in real estate, especially for core assets.
Which are the international best practices that Indian real estate developers and government authorities can adapt to? For improving the transparency levels, government authorities can make data available online and I understand some state governments are even talking about doing the entire approval process online and such initiatives will improve the perception of Indian real estate developers in the eyes of international investors. Focusing on execution is another area where the Indian real estate sector as a whole can improve.
How can India's real estate market adapt to accommodate global, regional and local economic dynamics? Housing for all is an idea of the current government and to achieve that, the Indian real estate industry should adopt proper town planning initiatives, where the government provides infrastructure and reasonable cost of land. Lack of infrastructure is creating shortage of accessible land near economic centres and without improving the infrastructure, India will not be able to create a large pool of urban land which can cater to the housing shortage for the economically weaker sections of the society.
What are the key strategies players are adopting to align themselves in the current economic scenario, particularly in India? There are two things that have been dogging the Indian market. First, is the transparency of the development community, and the second being consistency in the product. However, developers are increasingly working towards creating assets that meet global standards that are investible by global financial companies.
Source- economictimes.indiatimes.com
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Thursday, 10 December 2015
India most Attractive Investment Destination Globally
Approval ratings among global investors more than double that of China
India is considered the most attractive market by international investors, according to a report released by tax consultancy giant EY on Wednesday.
The report ranks India as the premier choice for investors worldwide, with 32 per cent of respondents ranking it the most attractive market. While it shows India’s approval ratings as an investment destination to be more than double that of China and six times that of Brazil, it also points out 60 per cent of respondents placed it among their top three choices for investing.
India at the top
A leading 32% of the investors ranked India as the most attractive market this year, while 60% placed the country among the top three investment destinations.
The second edition of the annual survey by EY explores the investment plans of around 500 global investors, half of whom already had business in the country. A third each was from North America and West Europe, respectively.
India’s outlook among investors has risen, with 37 per cent convinced it would be among the top three economies by 2020, against 29 per cent last year. Existing investor experience has helped, with 70 per cent of businesses, which already operate in India supporting that idea.
Among investment parameters, 80 per cent of respondents cited low labour costs and the burgeoning domestic market as an attractive incentive. The overall stability of the economy and availability of skilled labor also got a thumb up with 74 per cent of respondents approving them.
Efforts by the Narendra Modi government towards making the country more investment friendly also seems to have been acknowledged, with two-thirds of all respondents citing the foreign direct investment (FDI) policy and the ease of doing business as attractive pull–in factors.
Flagship government programmes such as Make in India and Digital India have also influenced investor choices, although awareness about them remain low. Around 70 per cent of businesses already operating in India and 10 per cent of international ones were aware of Make in India. Amitabh Kant, secretary at the Department of Industrial Policy and Promotion (DIPP), the agency overseeing the programme said the figures were high enough, refusing the argument it needed more active visibility.
Among informed investors, while 69 per cent said they would invest under Make In India, 83 per cent said Digital India would positively impact investment outlook.
The report mentions India as the country receiving the most FDI during January-June 2015, pegging it at $30 billion, data supporting which has been sourced from the market analytics arm of Financial Times.
The Business Standard had earlier reported the figure to be $19.4 billion compared to $14.94 billion in the year-ago period, according to DIPP. Asked about the wide gap in figures, Kant said, “We took into account investments already on the ground, but its also important to note investment commitments made by all countries, (which the other figure did).”
Among the recent administrative reforms which investors believe to positively influence India’s attractiveness as an investment destination, the smart cities project and growing expenditure on infrastructure scored the highest, with 89 per cent of those surveyed approving the same.
Financial inclusion schemes and Digital India came next with 83 per cent approval. India would also benefit from a definitive conclusion to legislation on land acquisition as 75 per cent of investors believe it will attract investments.
In the tax reforms space, the government’s decision to reduce corporate tax rate from the current 30 per cent to 25 per cent in the next four years was hailed by 83 per cent of respondents. The promise of the goods and services tax being implemented by 2016 elicited the approval of 81 per cent of investors.
Among the issues that investors felt should be addressed on a priority basis, infrastructure scored the highest with support from 66 per cent of respondents. Enhancing ease and transparency in business, streamlining taxation and the urgent need to simplify labour laws were cited as other priority areas, which the government needs to look into.
Manufacturing has regained its place as the most favoured sector with 62 per cent of those looking to start or expand their business in the country, looking at the sector. Also, 35 per cent of the respondents were of the opinion that India would be among the top three manufacturers in the world by 2020. The services sector follows next with 42 per cent of investors planning their activities based on it.
Investors are also increasingly looking at India’s second-tier cities, the report says. Leading in this category is Ahmedabad, which was viewed by 26 per cent of respondents as emerging, followed by Jaipur (13 per cent), and Vadodara (12 per cent). Sound infrastructure, widening industrial base and investor friendliness were cited as the reasons.
Other cities such as Vishakhapatnam, Coimbatore and Aurangabad also got mention in the report, owing to industrial diversification, rapid growth and increasing presence of sectorial clusters.
Source-business-standard.com
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Wednesday, 9 December 2015
Dubai investment advice
Whether you want to live it large or save for a nest egg, it’s worth investigating how to manage your money in Dubai
Spending and saving
A remarkable number of expats come to Dubai with the best financial intentions only to find themselves, a few years down the road, in debt and with very little to show fiscally for their time spent here. The cost of living varies depending on the product in question: petrol is about the cheapest here than anywhere in the world, but rents (though on the way down) are still comparable to Manhattan. Big Macs and bottled water cost less here than just about anywhere else, but a fast internet connection won’t be as cheap.
The bottom line is that if you continue to spend the same way here as you would at home and save the surplus, you can potentially leave Dubai with a sizeable fund for the future. It won’t be the necessities that cut into your savings scheme; it’s the luxuries that trip up most expats. Because babysitters and restaurants generally cost much less here than at home, for example, it’s easy to fall into the habit of eating out every night.
A giant villa is obviously more comfortable than a high-rise flat, but between rent and utilities, you’ll probably end up paying a sizeable chunk of your income for it. In other words, if your priority is to live a comfortable lifestyle while you’re here, you can, but if you’re goal is to save money, pay close attention to how much you spend on those indulgences you would be content to live without if you were at home.
Banks
Many international banks are represented in Dubai, alongside local banks, which range from giants such as National Bank of Dubai and Abu Dhabi Commercial Bank, to smaller one-branch outfits. There are relatively few overseas investment banks, and current federal law restricts foreign banks to no more than eight branches each. Although in recent years customer service has improved, there are moments when taking a deep breath and counting to 10 is the only solution. This is especially true when contacting a bank by telephone. However, if you go in person to certain branches, you can find the staff is generally helpful and polite. You will almost certainly find that everything takes longer than you are promised. If someone tells you opening an account will take five days, expect two weeks. If they say a loan application will take two weeks, expect a month.
There was a time when banks seemed to throw money at you, however, due to the current financial climate; they have tightened their purse strings. This can make it trickier for a fresh, average-paid expat to get a credit card or a loan.
Opening an account
The process here is similar to most other countries. It is a wise idea to phone around and compare rates. Although interest rates on typical savings accounts are not high – usually only between 0.5 and 1.5 per cent, there are options for building your nest egg.
Most banks expect a minimum monthly balance of Dhs 5,000, and you will be charged Dhs50-75 per month if you go below this. However, it is worth checking who your employer banks with, as some banks may be willing to lower or wave the limit altogether for an employee of one of its clients. Once you have made your decision, it is worth notifying the bank in advance rather than just turning up, as many will send a representative to meet you at your workplace and go through the paperwork there.
You must have your original passport plus copies (complete with residency visa), along with a letter from your employer confirming that you are employed, and a salary certificate. An account with a chequebook and an ATM card will be yours within a couple of weeks. Be warned that in Dubai, bouncing a cheque can lead to heavy fines or even a prison sentence.
When you leave Dubai, or switch employment, your bank account may be temporarily frozen, because your account is dependent upon the visa provided by your employer. The bank will then consolidate any outstanding loans. Although the process shouldn’t take longer than a week, it can drag on, particularly if you leave in less than amicable circumstances. It’s worth maintaining a small sum of easily accessible cash if you foresee a change of visa on the horizon.
Opening hours
Banking hours are generally Sat-Wed 8am-1pm; Thu 8am-noon. Many banks also open in the afternoons from around 4pm-6.30pm. Banks are closed on Fridays and public holidays.
ATMs
Most bank branches have an ATM. These are also found in shopping malls, hotels and petrol stations. Most credit cards, Cirrus and Plus-enabled cash cards are accepted, although it is worth checking with your home bank what fees will be charged. Dubai banks will usually not charge you for using their own ATM machine, but a standard rate of Dhs2 is charged by most banks if you withdraw money from a competitor’s machine or Dhs1 for a balance enquiry. Most retail outlets and businesses accept a range of cards, including Switch and Maestro.
Internet banking
Banks here are slowly catching on to internet banking, but, unfortunately, even those that have a site still regularly experience technical glitches. It is also surprising that the banks that do offer online account services still charge a fee for things such as transferring money from your UAE account to one abroad. These fees vary according to each branch, but are usually lower than those for transferring money in person – around Dhs40 per transaction.
Financial advisers
While all of the banks listed in the table provide savings plans, if you want to get serious about making the most of your income, it’s worth meeting with a financial adviser. A good one will assess both your assets and your spending and make a recommendation for the best ways for you to go about making your money work for you by setting up off-shore accounts, wills, life insurance, and the like. Some even provide mortgages and can help you get the best exchange rate on money you send overseas.
Money transfer
Western Union and Al Ghurair Exchange both offer competitive rates and transfer fees. These are often cheaper than the banks’ fees. Al Ghurair (04 262 3377) charges just Dhs40 for a transfer of Dhs 2,000 in five working days. It keeps your details on file, so after the first transaction you’ll just have to provide your name and the readies. Banks abroad also usually charge to receive the money – so check how much this will cost to make sure you’re still getting the best deal. Western Union (charges Dhs170 for an instant transfer of Dhs2,000, so if you’re in a hurry to get your dosh out of the country, this is a convenient option. Banks often require a ‘swift code’ from the foreign bank you want to transfer money to. If your bank doesn’t have one, its Iban number is usually sufficient. If this isn’t immediately obvious on the bank’s website, try the call centre.
Credit cards & cheques
Some banks will offer you a credit card as a matter of course when you open your current account. However, others have recently introduced policies that only allow you to have a credit card once you have been working at your company for six months, so you may have to wait. Most banks offer competitively priced credit cards, and once you’ve proven that you’re reliable and have a secure income, you may find the company with which you do business is more than happy to thrust additional credit upon you. Many even offer perks such as air miles or frequent flyer points that you can use on major airlines, points that can really add up over time.
Monthly interest charges tend to be around 1-2.5 per cent depending on the type of credit card you get. Although some banks prefer you to pay your salary into a current account with them, others will accept your application pending a security check and on provision of two months of bank statements and proof of a valid residency visa. Fines for late payment vary, but are around Dhs100. It’s worth shopping around as some credit cards also have an annual fee of about Dhs400.
There are few circumstances in which you’ll need to write cheques, but just about all the major bank accounts offer a chequing option. If you’d rather not hassle with a cheque book, your bank can provide you with individual cheques on those rare occasions when you need them, but it will cost a small fee. If you happen to bounce a cheque, your bank is likely to consider the incident an oversight and simply charge you a fee to cover the cost. The fact, however, is that if you give someone a promissory note that your account can’t cover, you’re essentially stealing so, in some cases, your bank may take more drastic measures to discourage you from writing bad cheques. See you and the Law on p22 for more information.
Loans
Many expats arriving in the city find themselves in the unenviable situation of having to magic up a year’s worth of rent in one intimidating payment, and for many newcomers a bank loan is the only option when they settle in. Things have changed since the global recession, and these days many landlords are happy to negotiate with monthly or quarterly cheques, diminishing the demand for loans somewhat. Since the recession (and the scores of expats absconding without paying debts) banks are also taking measures to ensure their own security and have recently raised the earning threshold for giving out loans at all – so if you’re one of the average joes out here who doesn’t earn a fortune, you may be turned away from a few places. However it can still be relatively easy to acquire a loan, especially if you have your salary deposited directly into your bank account each month. Because they earn their income from charging you interest, banks might be willing to take a chance on customers who seem trustworthy so it’s worthwhile arranging a meeting. Most banks have certain criteria, which will affect the rates you are offered.
However, if you qualify for one and your employer is listed with the bank as a pre-approved company, this will mean you receive preferential rates and are able to borrow larger sums over longer periods of time. In addition, if you have completed one year of service with the company, you may also be eligible for a lower interest rate. Many banks will ask that you transfer your salary into one of their accounts, and take the monthly repayment directly from your account on payday. Banks offering car loans do not usually require you to have a bank account with them. Others may also make it very easy for you to borrow more money by ‘topping up’ an existing loan. But before you take out any type of loan, it is crucial to assess your financial situation and consider what might happen should you lose your job. While there are certain bankruptcy laws in place in the UAE, defaulting on debt is taken very seriously.
Defaulting on debt
Unfortunately for expatriates as a group, there have been some unscrupulous individuals who have taken out large loans and absconded. In many Western countries like the US, the UK, and Australia, one central agency monitors each person’s individual credit history, but there is currently no such system in place in the UAE. In the past, there was often little the local banks could do to pursue the culprits other than take greater precautions in loaning to other expats still living in the country. These days, however, major banks may try to engage international collection agencies to recoup their debt.
Many argue there is little support or choice for expatriates who run into bad luck. It is a criminal offence for a cheque to be dishonoured in the UAE and absconding can seem like the only alternative. However, the consequences are dire: you can face potential imprisonment on re-entry to the country (even if just passing through in transit).
If you run into trouble, there are options. Mark Hiess of Dubai law firm Clyde & Company says most creditors are willing to negotiate the terms of debt, and there is the potential to agree on a revised payment schedule. There is also a UAE bankruptcy law, which involves administrative restrictions imposed on the debtor called ‘Hajr’ in Arabic (a Restriction). This is a court-driven process that places a restriction on the debtor’s property and assets, which are sold and divided among the creditors on a pro-rata basis.
Source- timeoutdubai.com
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Tuesday, 8 December 2015
Government opening more doors for free flow of foreign investments into India
Despite being in a tussle with major foreign investors on the matter of taxes, the government is doing all it can to make it easier for foreign investment to freely flow into India. In what will be a major shot in the arm for foreign investment, Modi government plans to do away with the need for RBI approval for Foreign Direct Investment (FDI) in India, reported ET Now.
According to ET Now, the government plans to amend the FEMA provisions through the Finance Bill. The new provisions will be notified soon, the channel said. Investments will be approved via the FIPB route, ET Now said.
"The government wants to ease the regulatory environment for FDI. This is a part of the initiative to improve ease of doing business. The government is working on a new set of guidelines under which FDI proposals will not require RBI approval if the government has given a nod," ET Now said. "Government will allow FDI to be approved through a single-window clearance," ET Now added.
Foreign direct investment in India grew by about 40 per cent year-on-year to Rs 1.76 lakh crore in 2014-15, Finance Minister Arun Jaitley said last week
In 2013-14, the country had attracted Rs 1.26 lakh crore FDI. During the last fiscal, the Foreign Investment Promotion Board (FIPB) had received 350 proposals and in 11 meetings and 241 were cleared, Jaitley said.
Others are pending at various stages, he said. "...there is an increase of about 40 per cent (in FDI) over the previous year," he said.
According to the data of Department of Industrial Policy and Promotion (DIPP) the top 10 sectors that receive maximum foreign investment include services, automobiles, telecommunication, computer software and hardware and pharmaceuticals.
India attracts maximum FDI from Mauritius, Singapore, the Netherlands, Japan, and the US.
Source- businessinsider.in
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Monday, 7 December 2015
GDP data cements India’s position as fastest growing major economy
Economy expanded 7.4% in the fiscal second quarter raising hope that the govt’s strategy of kick-starting stalled infra projects and reinforcing industrial base has put India on cusp of a rebound
For 18 months, the government of Prime Minister Narendra Modi had waited for the moment—for evidence that its strategy of kick-starting stalled projects and reinforcing India’s manufacturing base to accelerate economic growth was on the right track.
The moment arrived on 30 November, when official data showed India’s gross domestic product (GDP) growth accelerated to 7.4% in the three months ended 30 September, from 7.0% in the previous quarter.
A spike in industrial activity and higher investment demand paced the faster growth, showed the data, which came on top of surveys signaling a rebound in business and consumer confidence, fuelling perceptions that a sustainable economic revival is finally under way.
“Manufacturing growth at 9.3% in Q2 important growth driver. Will continue to work for bigger success of Make in India,” economic affairs secretary Shaktikanta Das said in a message on Twitter.
‘Make in India’ is the government’s flagship programme aimed at attracting investment into manufacturing, whose share of economic output has stagnated at around 15% for decades.
Since it came to power in May 2014, Modi’s National Democratic Alliance (NDA) government has been trying to make it easier for companies to do business in India; as part of the effort, in November, it eased foreign direct investment (FDI) norms across 15 sectors, including defence, civil aviation and broadcasting, to attract overseas funds.
The strategy seems to be working. India attracted record net FDI inflows of $34.9 billion in 2014-15.
Reserve Bank of India (RBI) governor Raghuram Rajan sought to temper any sense of exuberance after keeping the key repurchase rate unchanged at 6.75% in the year’s last monetary policy review on 1 December.
“It is very clear that we are well and truly in the midst of a recovery but with areas of weakness,” Rajan said. “Agriculture is growing relatively weakly because of (a weak) monsoon; as a result, rural demand is somewhat weak, so non-durable consumption is relatively weak. Capital goods and public investment are growing fairly strongly. Hopefully, as we go along, some areas of weakness will turn around.”
He added: “For example, the kind of investments that is contemplated, construction may start picking up more strongly; that will be very helpful. The kind of measures the government is taking as well as the RBI, for example, the low-income housing, the capital requirement measures that RBI has announced will give some boost to housing.”
RBI has cut interest rates by 125 basis points this year, doing its bit to lower borrowing costs and spark a revival in the investment cycle. One basis point is one-hundredth of a percentage point.
India remained the fastest growing major economy, ahead of China, which grew 6.9% in the September quarter. But it needs to grow faster to absorb the 1 million skilled workers that enter the job market every month.
The government needs to push ahead with economic reforms to drive private investment and domestic demand, said Yes Bank Ltd’s chief economist Shubhada Rao.
“Gradual implementation of structural reforms, the subdued inflation, superior quality of fiscal spending and lagged response to policy rate cuts are likely to be important growth boosters for India, going forward,” she said
Tax reform
A key reform is the long-awaited goods and services tax (GST), which is aimed at dismantling inter-state barriers to trade in goods and services and economically unify India. According to some economists, it would boost India’s GDP growth by 1-2 percentage points.
A constitutional amendment to pave the way for GST has been held up by political wrangling between the government and the opposition led by the Congress party. Political feuding also derailed a bill that proposed making it easier for businesses to acquire farm land.
In a report released in November, rating company Standard & Poor’s (S&P’s) said the Indian government had made modest progress in several areas, including raising FDI limits and improving power distribution, but needs to do a lot more to revive the investment cycle.
“The (chances for the) passage of GST is 50-50 in this session of Parliament and land reform has been pushed down to the state level. Confidence remains high, but Prime Minister Modi’s ‘constructive incrementalism’ strikes us as too tentative. A well-run central bank and an improved external balance should help support growth,” the report said.
S&P’s said it continues to question the sustainability of the 8% growth story but kept its forecasts largely unchanged. “We maintain our 7.4% forecast for this (fiscal) year, but have fractionally lowered our forecasts for 2016-17 to 8.1%, and 8.2% for 2017-18,” it said.
The government projects economic growth to be above 7.5% in the year to next March. Most economists expect growth of 7.3-7.5%. In 2014-15, the economy grew 7.3%.
RBI on Tuesday, 1 December, said it was keeping its forecast for 2015-16 unchanged at 7.4% “with a mild downside bias”.
The nitty gritty
In the quarter to September, manufacturing and electricity output grew 9.3% and 6.7%, respectively, against 7.2% and 3.2% in the first quarter. Construction, and trade, and hotel and transport sectors slowed to a pace of 2.6% and 10.6%, respectively.
The large dip in construction came as a surprise because the government has given a significant push to road building this could be because the Central Statistical Office derives its growth for construction from the production of cement and consumption of finished steel, which registered tepid growth of 1.6% and 1.2%, respectively.
The farm sector grew 2.2%, faster than the 1.9% pace in the June quarter, despite monsoon rains being 15% short of the long-period average. About 51% of value-addition in the sector now comes from livestock products, forestry and fisheries that registered a combined growth of more than 6% in the September quarter.
RBI, in its monetary policy statement, said the outlook for agriculture was subdued in view of both rabi and kharif prospects being hit by monsoon vagaries.
“While there are areas of robust growth in manufacturing such as capital goods and passenger cars, weak rural and external demand holds back stronger overall growth. Similarly, while the prospects for a revival in service sector activity have been boosted by optimism on new business, pockets of lacklustre activity such as construction weigh on the overall outlook. The step-up in public capital spending and the easing stance of monetary policy provide the enabling environment for a revival in private investment demand, supported by easing input prices and improving conditions for doing business,” it added.
Trade, hotels, transport and communication posted 10.6% growth in what is typically a lean season for the sector. The other components of services, such as “finance, real estate and professional services” (9.7%) and public administration, representing government expenditure, (4.7%), did their bit of heavy lifting.
Wholesale price deflation
The lead indicators for the services sector have shown mixed trends. The services purchasing managers’ index increased in October on account of higher new business orders.
Commercial vehicle sales (reflecting transportation demand) and domestic civil aviation passenger traffic accelerated year-on-year. On the other hand, tourist arrivals, cargo handled at major ports, railway freight traffic, domestic and international air cargo traffic, and measures of construction such as steel consumption, slowed.
“Recent policy initiatives relating to rail, port and road projects are likely to improve construction activity, as will the Reserve Bank’s countercyclical reduction of capital charges on low-income housing loans, albeit with gestation lags,” RBI said.
Nominal GDP in the September quarter grew 6% as Wholesale Price Index (WPI)-based inflation contracted, while real GDP grew 7.4%.
Crisil Ltd chief economist D.K. Joshi said the economic data was surprising because the GDP deflator has fallen into negative terrain, indicating a deflationary scenario, while in the real economy, there is no deflation.
“Nominal GDP coming below the real GDP was a surprise. The impact of wholesale price deflation has started to overshadow the retail price inflation. If this trend continues, it may make the fiscal deficit and current account deficit numbers look slightly worse than expected,” Joshi added.
Investment demand
Growth in the second quarter was more investment-driven than consumption-led.
Gross fixed capital formation (GFCF), which represents overall investment demand in the economy, picked up to a five-quarter high of 6.8%, signaling an investment revival.
But, surprisingly, private consumption demand fell to a three-quarter low of 8.3% in the September quarter. A 23.6% hike in salaries and pensions recommended by the Seventh Pay Commission is expected to boost demand for consumer goods after it is implemented from 1 January 2016.
Joshi said the recovery in investment demand was led by public expenditure, such as on road construction.
“There is yet to be any sign of a pick-up in private investment demand. Investment is also a very volatile component of growth. Sustainable recovery in investment is still some time away,” he said.
Various surveys have already indicated a pick-up in consumer and business sentiment. The Business Expectations Survey (BES) by the National Council of Applied Economic Research (NCAER) released on 30 November showed a revival of business sentiment after the Business Confidence Index (BCI) fell for two consecutive quarters.
BCI for the second quarter showed an increase of 6.3% in October over July on a quarter-on-quarter basis. The BCI continued to fall on a year-on-year basis (9.1%).
Another survey by Australia and New Zealand Banking Ltd (ANZ) and research firm Roy Morgan, released in November, showed Indian consumer confidence rebounding strongly in November after dipping in October, buoyed by increased optimism about the country’s economic outlook over the next 12 months as well as the next five years.
The ANZ-Roy Morgan India Consumer Confidence Index rose to 122, up 9.5 points in November against the previous month, pushing the index above its long-term average of 117.
On the economic conditions in India, 59% (up 10 points) of the respondents expect the country to have “good times” financially in the next 12 months, while 14% (down seven points) expect “bad times”.
When assessing the country’s long-term prospects over the next five years, more than half the respondents, or 58% (up 10 points), expect India to have “good times”, while 8% (down five points) expect “bad times” financially.
Also, 22% (up one point) of respondents said “now is a good time” to buy major household items, compared with 17% (down two points) who believe otherwise.
ANZ chief economist, South Asia, Asian and Pacific, Glenn Maguire, said the rebound in consumer confidence was driven more by long-term factors than short-terms ones.
“There appears to be important medium- to long-term anchors influencing consumer confidence, which we could continue to assess as most likely being ‘Modiesque’. These medium- and longer-term anchors should ensure domestic demand does not slip and India’s economic recovery trajectory remains intact,” he added.
Bornali Bhandari, a fellow at the National Council of Applied Economic Research, said that the economy had shown signs of bottoming out, but recovery remains weak and fraught with uncertainty.
“There is improvement in business sentiments and stabilizing of political sentiments. The improvement in sentiments of small and medium enterprises is the best signal this survey shows. The capital goods and services sectors also show improvement in sentiments,” she said.
Bhandari, however, said the percentage of respondents saying the “present investment climate is positive” remains low at 43.3% in October, signaling that investment sentiment remains subdued.
“And the continued weak expectations on hiring labour in the next six months and weak confidence in ‘managing unemployment’ imply improvement in business sentiments may not necessarily translate to more jobs in the near future,” she added.
RBI, in its monetary policy statement, said early findings of its order books, inventories and capacity utilization survey indicate robust growth in new manufacturing orders in the September quarter, when finished goods inventories declined while raw materials inventories increased.
“While urban consumption is showing signs of a pick-up in some areas such as passenger vehicles sales, rural demand has been weakened by two consecutive deficient monsoons and slowing construction activity. Nevertheless, new project announcements, as measured by the Centre for Monitoring Indian Economy, grew more strongly in the second quarter. It remains to be seen whether growing public investment can crowd in private investment on a sustained basis, despite the still-low capacity utilization,” RBI said.
Source-livemint.com
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Source-livemint.com
For further assistance related to Investment based queries in Dubai &India, please visit: http://www.pursueasiaconnexio.com/#
Friday, 4 December 2015
Dubai Market conditions encourage investment
The current market conditions in Dubai are conducive to sustained investment, with real estate prices almost 25% below the 2008 peak, according to a recent report in the Financial Times.
The article went on to say that yields of 7 per cent gross are now realistic, ensuring that investment activity remains healthy with the emirate set to attract growing demand as a safe haven for real estate investment, thanks to relaxed laws and clear regulations. It added that, despite a short-term drop in some areas, major projects in the city such as Dubai Marina, the Palm Jumeirah and Jumeirah Lakes Towers had not been affected in a big way.
The article is supported by the recent release of tourism figures for the emirate, which show a 9 per cent rise in the first half of this year. Dubai Tourism & Commerce Authority (DTCM) stated that the total number of visitors who entered Dubai during the first half of the year 2015 reached 7 million.
The report highlighted two important factors attracting visitors to the city: safety and comfort. The report also confirmed that Dubai is the first in the world in welcoming visitors helped by the various transportation facilities available at Dubai airports provided by RTA.
Ziad El Chaar, Managing Director – DAMAC Properties said: “Everything coming out of Dubai points towards a market conducive to future growth, in a safe and well regulated environment. Despite short term fluctuations in pricing, we are still seeing healthy investment flows into the market, and the tourism increases give further weight to the predications that Dubai is on the right path.”
He added: “The increasing number of visitors to Dubai is also a strong indicator about the city’s appeal to people from all over the world. With the numbers growing year after year, the hospitality sector in Dubai, and the real estate industry in general, will see a huge boost.”
He added: “The positive activity on the travel & tourism front justifies the high demand on accommodation in the short, medium and long term, with Dubai set to host over 20 million visitors in the year 2020. Our model at DAMAC Properties to offer aspirational luxury living alongside high quality serviced apartments - through DAMAC Maison and NAIA in key touristic areas of Dubai - has been shown to provide the best investment opportunities to buyers looking to access this booming city.”
Dubai International Airport already serves 70 million travellers a year; a number which is predicted to rise as high as 200 million; this comes at a time when the city is preparing to host the World Expo 2020, taking visitors to a high of 25 million annually. Jebel Ali Port is also on track to become the world’s largest within the next 15 years, as is becomes China’s main logistical hub in the Middle East and Africa. A recent census also pointed to a 20% growth in overall population in the UAE by 2030.
As of 30th June 2015, DAMAC Properties has delivered 14,375 homes and has a development portfolio of over 37,000 units at various stages of progress and planning.
Source-albawaba.com
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Source-albawaba.com
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Foreign investment up 13 per cent to USD 16.63 billion in First Half of Financial Year 2016
Foreign direct investment (FDI) in the country grew by 13 per cent to USD 16.63 billion during the April-September period of the current fiscal.
Foreign direct investment (FDI) in the country grew by 13 per cent to USD 16.63 billion during the April-September period of the current fiscal. The foreign investment was USD 14.69 billion during April-September 2014, according to the latest figures of the Department of Industrial Policy and Promotion (DIPP).During the first half of the financial year, India received maximum FDI of USD 6.69 billion from Singapore followed by Mauritius (USD 3.66 billion), the Netherlands (USD 1.09 billion) and Japan (USD 815 million).
Sectors which attracted highest foreign investment in the period includes computer software and hardware (USD 3.05 billion), trading (USD 2.30 billion), services and automobile (USD 1.46 billion each) and telecommunications (USD 659 million).During financial year 2014-15, foreign fund inflows grew at 27 per cent to USD 30.93 billion as against USD 24.29 billion in 2013-14 FDI reforms to boost investment in India: USIBC
The US-India Business Council (USIBC) today said the liberalization of India's FDI policy in over a dozen sectors will further improve ease of doing business
The US-India Business Council (USIBC) today said the liberalization of India’s FDI policy in over a dozen sectors will further improve ease of doing business and boost investments in the country. Putting more FDI proposals through the automatic route is a clear signal that the government is living up to the mandate of minimum government and maximum governance, USIBC President Mukesh Aghi said in a statement
Applauding India’s latest reforms, USIBC said the move would “enable the ease of doing business in the country” and “will propel more investment and innovation”. ”If the government continues on the current trajectory of bold reforms, then India will easily surpass the USD 41 billion in FDI from the US companies,” Aghi said. He also said that relaxing the sourcing norms for single brand retailers who sell cutting edge technology products will clear many of the challenges that high-tech companies have had when it comes to taking advantage of the 100 per cent opening of the sector. The council is keen on further reforms in these sectors and additional liberalization that will aid the growth of bilateral trade. FDI in e-commerce still remains restricted, Aghi said adding the USIBC will continue to urge the Department of Industrial Policy and Promotion (DIPP) to allow at least 51 per cent foreign investment in e-commerce. Unveiling sweeping liberalisation of foreign investment norms, the government on November 10 opened up 15 sectors including real estate, defence, civil aviation and news broadcasting in a bid to push up reforms.
The government has relaxed FDI norms in as many as 15 sectors including defense, single brand retail, construction development, civil aviation and LLPs to boost FDI in the country. Foreign investments are considered crucial for India, which needs around USD 1 trillion in the next five years to overhaul its infrastructure sector such as ports, airports and highways to boost growth. Growth in foreign investments helps improve the country’s balance of payments (BoP) situation and strengthen the rupee.
Source- india.com
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Source- india.com
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