mea weekly newsletter may 1-8

7/30/2019 MEA Weekly Newsletter May 1-8

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NEWS FEATURE

India pitches for rating upgrade; says growth story credibleIndias growth story is credible and the government is making serious efforts to control subsidy and ad-dress other macro-economic problems, the finance ministry told rating agency Moodys, making a strongpitch for sovereign ratings upgrade.

India makes it easier to get visas on arrivalThe government has put in motion a series of measures that will drastically liberalise the visa regime in thecountry and ensure a significant boost in foreign tourist arrivals. Not only has the government extendedthe facility of visa on arrival for individuals from four to nine airports in the country...More in this section

OVERSEAS INVESTMENTS

FIIs pour in Rs 2,600 crore in MayOverseas investors have pumped in a staggering Rs 2,600 crore (USD 483 million) in the Indian stock mar-ket during the first two trading sessions of the month amid political and economic worries.

More in this section

TRADE NEWS

Govt clears IKEA Rs. 10,500-cr plan for FDI in retailThe Cabinet Committee on Economic Affairs (CCEA) has cleared Swedish furniture major IKEAs Rs. 10,500-crore investment proposal in India, the largest FDI in single-brand retail so far.

US gas exports a win-win proposition: Indian envoyIndias ambassador Nirupama Rao has asked the US to start exporting liquefied natural gas (LNG) to Indiaand other energy scarce countries, calling it a win-win opportunity.


LR;eso t;rs

ITP DivisonMinistry of

External AffairsGovernment of India

Issue no 519 I May 01-08, 2013

p. 02/04

p. 05/08

p. 09/10

p. 11/13

p. 14/15

SECTORAL NEWS

Apparel industry to triple revenue by 2020: CMAI reportDespite the slowdown, Indian apparel market is expected to grow annually at 13-15% tocross the $125 billion (Rs 675,000 crore) mark by 2020, a survey by Clothing Manufacturers

Association of India (CMAI) has found. At present, Indias apparel market is estimated to bearound $50 billion (Rs 270,000 crore).


NEWS ROUND-UP

ADB to provide $6 billion to India over next 3 years

The Asian Development Bank (ADB) said it will provide about $6 billion loan to India over the nextthree years, even as the multilateral lender stated it is facing the challenge of raising resources.


WEEKLYECONOMIC

BULLETIN


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WEEKLYECONOMICBULLETIN

India pitches for rating upgrade; saysgrowth story credibleIndias growth story is credible

and the government is making

serious efforts to control subsidy

and address other macro-eco-

nomic problems, the finance min-

istry told rating agency Moodys,making a strong pitch for sover-

eign ratings upgrade.

Representatives of Moodys

met finance ministry officials at

North Block here to access

Indias economic situation.

Talking to reporters after the

meeting, Economic Affairs Secre-

tary Arvind Mayaram said the

rating agency wanted to learnabout the governments meas-

ures to control subsidy and fiscal

deficit.

He said most of the analysts raise concern over whether there will be slippage on subsidy and the budgetary numbers

were credible.

The numbers have been very carefully done in the budget. We have checked and double checked it. Therefore, there

is no question of numbers not being accurate or credible, Mayaram said.

We have a credible story that we have told them and they have appreciated what we have said. Now rest is up to

them, he said.

Mayaram admitted that Indias macro-economic pictures were not fully rosy but the government was taking action

to improve the situation.

We know there are problems but we have to take actions in a particular manner and the government is fully commit-

ted to take action so that the problem that we are seeing today are fully addressed, he said.

The finance ministry had put forward similar arguments and made pitch for ratings upgrade during the meetings with

the representatives of Standard & Poors and Fitch recently.

Moodys last week said Indias sovereign outlook is stable and does not warrant any action in the next 12-18 months.

Moodys has assigned India the sovereign credit rating of Baa3, with stable outlook. This is the lowest investment grade

rating.

Source: The Times of India

>> NEWS FEATURE

Issue no 519 I May 01-08, 2013


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Issue no 519 I May 01-08, 2013


India makes it easier to get visas on arrivalThe government has put in motion a series of measures that will drastically liberalize the visa regime in the country and

ensure a significant boost in foreign tourist arrivals. Not only has the government extended the facility of visa on arrival

for individuals from four to nine airports in the country but also given its nod for VoA option for a group of foreign tourists

(four or more) using air or sea ports to enter the country.

The group VoA facility has been extended to all countries excluding Afghanistan, China, Iran, Iraq, Sudan and Pakistan

and foreigners of Pakistani origin.

In effect from April 1, the measures mean that a family of four, or a group coming from any part of the world except

for the countries on the negative list, can use the VoA facility. This significant measure has put India even above China inits liberalized visa regime. China has introduced a visa-free regime for 60 countries from January 1 this year.

India received about 6 million foreign tourists in a year which is a fraction of the world share in tourist arrivals. How-

ever, the growth of tourists arriving under the individual VoA scheme has been encouraging. In 2011, 12,761 VoAs were

issued which increased by 26% to 16,084 in 2012. In January-March 2013, 5744 VoAs have been issued.

The move has been cleared by the inter-ministerial coordination committee for the tourism sector constituted by the

PMO following tourism minister K Chiranjeevis intervention. In December last year the government had waived off the

60-day period between two visits to the country.

Individual VoA was earlier accepted in airports at Delhi, Mumbai, Chennai and Kolkata which has now been extended

to Hyderabad, Bangalore, Kochi, Trivan-

drum and Goa.According to a notification issued by the

ministry of home affairs, foreign tourists in

groups of four or more, arriving by air or

sea, sponsored by Indian travel agencies

approved by the tourism ministry will be

granted a collective landing permit for a

60-day period with multiple-entry facility.

The tourists will have to submit their per-

sonal details, itinerary and apply for visa

online. The travel agency will have to sub-

mit a complete list of group members to

the FRRO, 72 hours in advance. The travel

agency will also have to take responsibil-

ity for the group.

Source: The Times of India

>> NEWS FEATURE


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Issue no 519 I May 01-08, 2013


Government taking measures to spurinvestment: PM

The government is taking measures to spur investment and accelerate economic growth to 8 percent from the sluggish

nearly 5 percent recorded in 2012-13, Prime Minister Manmohan Singh said.

India has set itself a target of over 8 percent annual growth in our 12th Five Year Plan, which runs from 2012 to 2017.

This is the rate of growth the country achieved over the past decade, he said at the inaugural of the 46th annual meeting

of the Asian Development Bank (ADB) board of governors here.We are initiating measures to spur investment and to make India more attractive to investors both at home and

abroad, he said. We have taken steps to fast track major infrastructure projects.

Low investment is one of the major reasons behind the recent slowdown in the economic growth. Indias GDP growth

is estimated to have slumped to nearly 5 percent in the financial year ended March 31, the slowest in more than a

decade.

The prime minister said his government had also introduced strong measures to achieve fiscal consolidation.

The countrys current account deficit has surged to a record high, and fiscal deficit is expected to be at around 5.2 of

the GDP in 2012-13.

In the current financial year, fiscal deficit is estimated to decline to 4.8 percent of the GDP.

Manmohan Singh said that despite the recent slowdown, India and other developing countries remained the engine ofglobal growth.

Referring to the IMF estimates, the prime minister said the advanced developed economies were expected to grow at

1.2 percent while developing Asia was expected to grow more than five times faster at 7.1 percent in 2013.

The Asian region is expected to play a crucial role in driving and stabilizing the global recovery process, he said.

At Purchasing Power Parity, emerging economies accounted for 80 percent of the world growth in 2012, with emerg-

ing Asia accounting for a majority of it and China and India accounting for 35 percent and 10 percent of world growth re-

spectively. This trend is only likely to continue in the years to come, the prime minister added.

Source: Indo-Asian News Service

>> NEWS FEATURE


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Issue no 519 I May 01-08, 2013


>> OVERSEAS INVESTMENTS

FIIs pour in Rs 2,600 crore in MayOverseas investors have pumped in a staggering Rs 2,600 crore (USD 483 million) in the Indian stock market during the

first two trading sessions of the month amid political and economic worries.

With this, the total foreign investor investments in the countrys equity market has reached Rs 63,643 crore (USD 11.8

billion) since the beginning of 2013.

During May 2-3, foreign institu-

tional investors (FIIs) were gross

buyers of shares worth Rs 8,475crore, while they sold equities

amounting to Rs 5,869 crore, trans-

lating into a net inflow of Rs 2,606

crore (USD 483 million), according

to the data available with market

regulator Sebi.

Market experts said FII inflows in

the Indian equities slowed last

month because of a slew of factors

such as profit-booking, concernsover high current account deficit

(CAD) and political uncertainty.

FIIs had infused Rs 5,414 crore

(about USD 1 billion) in the Indian

equity market in April, the lowest in

16-months.

We have seen FIIs pumping in funds in the Indian equity market during the month (April), but they are concerned

about various economic factors such as CAD touching a record high and political uncertainty, Geojit BNP Paribas Finan-

cial Services Ltd head (research) Alex Mathews said.

Apart from equity, FIIs have also poured in Rs 2,929 crore (USD 542 million) in the debt market during the month tak-

ing the total investment to Rs 21,007 crore (USD 39 billion) in the segment so far this year.

As on May 3, the number of registered FIIs in the country stood at 1,769 and total number of sub-accounts were at

6,383 during the same period.

Source: Press Trust of India


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Government okays FDI proposals worthRs.262.5 crore

Wipro invests $30 million in US data firm

The government said it has approved 17 FDI (foreign direct investment) proposals amounting to Rs.262.55 crore.

The largest flow of money is related to pharma sector. Sanofi-Synthelabo (India) Limited has got the approval to se-

cure Rs.180 crore FDI. The proposal is for an existing pharma company to acquire another pharma company through in-

ternal accruals.

Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on March 13, 2013,the central government has approved 17 proposals of Foreign Direct Investment amounting to Rs.262.55 crore approxi-

mately, the finance ministry said in a statement.

French firm Na Pali Europe SARL has got the approval for induction of foreign contribution in an Indian company to

carry out the business of single brand retail trading. It will result in FDI inflow of Rs.7.65 crore.

One proposal has been rejected while the decisions on seven proposals were deferred, the finance ministry said.


IT bellwether Wipro invested

$30 million (Rs.162 crore) for

a strategic equity stake in

Opera Solutions LLC, a lead-

ing privately held US-based

big data science firm.

This strategic partnership

with Opera will help us ex-

tend leadership in the big

data analytics space, combin-

ing its machine learning ex-

pertise, pre-discovered

predictive signals and algo-

rithms with our expertise in

global delivery model to cre-

ate industry-specific solu-

tions, Wipro vice-president

K.R. Sanjiv said in a state-

ment here.

The Jersey City-headquar-

tered Opera has the largestgroup of scientists, specialised in machine learning, which is applied to generate big data flows and create predictive pat-

terns or signals.

Though big data is a huge opportunity for business value creation, many enterprises do not have the technology or

science to access its power, Sanjiv observed.

Issue no 519 I May 01-08, 2013


>> OVERSEAS INVESTMENTS6


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Issue no 519 I May 01-08, 2013


>> OVERSEAS INVESTMENTS7

India top destination of remittances from Qatar

Opera provides capabilities to allow organisations turn raw big data into strategic advantage, profit and productivity.

Operas domain expertise will enable our customers to maximise their return on investment of big data analytics im-

plementation through faster adoption, said Sanjiv, who heads Wipros analytics and information management business.

Opera also offers a range of solutions which turn the signals into prescriptive action and improve front-line productiv-

ity and bottom-line growth.

We see a great fit between Wipros ability to deliver end-to-end services and our ability to scale and industrialise big

data science.The partnership will also enable us to capitalise on the huge demand for big data science solutions, Opera

chief executive Arnab Gupta said in the statement.

Wipro works with customers to develop end-to-end analytics and information strategy leveraging process assets andsolutions based on analytics, business intelligence, enterprise performance management and information management.


India topped the list of countries to which remittances have been sent by expatriate workers in Qatar in the period 2006-

2012, according to a new report.

The annual report of the Qatar Chamber, the representative body of the private sector in that Gulf nation, said that ofthe $60 billion remitted by foreign workers in the period, 54 percent went to Asian nations with India leading the pack

and the Philippines following, The Peninsula newspaper reported.

Arab nations accounted for 28 percent while the US and Egypt trailed the list.

International Monetary Fund figures were cited while compiling the report.

There are around 420,000 expatriate Indians in Qatar, many of them working as blue collar workers.



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Issue no 519 I May 01-08, 2013


>> OVERSEAS INVESTMENTS

Mozambique seeks Indias expertisein tea plantations

Mahindra look to build on results in Europe

Mozambique has sought Indias expertise as

well as investment to realise full potential of

tea plantations in the southeast African country.

A delegation of senior ministers, led by

Mozambican High Commissioner Jose MariaMorais, held a meeting with key stakeholders

of the Indian tea industry, led by M.G.V.K.

Bhanu, chairman of the Tea Board here.

We really believe that there is huge poten-

tial in Mozambique. There are around 39,000

hectares of old tea plantations in the country,

out of which only 6,000 acres are under pri-

vate ownership currently. We need tea expert-

ise, we need investment, Morais said.

Sharing of expertise and knowledge on teacultivation could become a very good pivot of

cooperation between the two countries, fol-

lowing which India could explore further avenues of investment in the Mozambique tea industry, he averred.

The high commissioner invited the industry stakeholders to visit Mozambique and explore opportunities to invest in

the African country.


Following its best-ever results in the opening two races of Moto GP in Qatar and the USA, Team Mahindra will look to

build on its performance as the European season begins at Jerez this weekend.

Mahindras new riders and the brand-new Mahindra MGP3O machine have not only achieved double points in the two

season-opening flyaways but also recorded the marques first top-five finish.

That was achieved at the Circuit of the Americas in Texas the weekend before last, when Miguel Oliveira (18, from

Portugal) claimed a fighting fifth, gaining two places on the final lap. A fortnight earlier Miguel was seventh in Qatar, and

he places fifth overall in the points in the competitive Moto3 class.

Team-mate Efren Vazquez (26, from Spain) claimed tenth and 14th places, securing an impressive full house of points

for the team.

This was close to the perfect introduction for the new MGP3O racer, barely six months after the project was initiated,

following intensive work by Mahindra engineers and Suter Racing, their partners in the project.

I think we can be strong and competitive at Jerez. We have a lot of information from pre-season tests, so we can be alittle more confident of our chances compared to the previous races.

It wont be easy, but I am hoping for another good result. The goal is to be consistent and fighting in the top six every

weekend, said Oliveira.

Source: Press Trust of India


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Issue no 519 I May 01-08, 2013


>> TRADE NEWS

Govt clears IKEA Rs. 10,500-cr plan forFDI in retailThe Cabinet Committee on Economic Affairs (CCEA) has cleared Swedish furniture major IKEAs Rs. 10,500-crore invest-

ment proposal in India, the largest FDI in single-brand retail so far.

This will pave the way for the iconic furnishing and homeware firm to set up 25 exclusive stores and in-house food

cafes in the country.

Yes, it is cleared, information and broadcasting minister Manish Tewari said, referring to IKEAs investment proposal.This will be the biggest foreign investment in the retail segment till now and will provide an opportunity to Indian

small and medium enterprises in a

wide range of labour intensive sec-

tors for integrating into global value

chain. On the other hand, it will also

provide a diverse choice for the In-

dian consumers for a wide range of

products, Anand Sharma, com-

merce and industry minister, said.

This decision has once again re-affirmed the commitment of the

government for maintaining a liberal

economic agenda, said Sharma,

who described the CCEA approval

as historic.

Last year, the government had

eased foreign investment norms al-

lowing 100% FDI in single brand re-

tail and had removed some of the

restrictive conditions including drop-

ping the mandatory 30% sourcing of

goods from Indian small enterprises for single brand retail trading.

IKEA, with more than 300 stores across the world and an annual revenue of 27.5 billion euros (about Rs. 190,000

crore) had also sought approval to sell items such as upholstery and other accessories, consumer electronics, leather

products, and lifestyle products, food and beverages at cafes in its premises.

IKEA had sought permission to set up cafes and restaurants inside all its stores in India, in line with its global concept.

The government has allowed the company to run food cafes but has prohibited it from selling packed food.

Source: The Hindustan Times

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Issue no 519 I May 01-08, 2013


>> TRADE NEWS

US gas exports a win-win proposition:Indian envoyIndias ambassador Nirupama Rao has asked the US to start exporting liquefied natural gas (LNG) to India and other en-

ergy scarce countries, calling it a win-win opportunity.

As shale gas has become economically viable to produce, the US has emerged as one of the worlds most important

gas producing countries, she noted in a keynote address at the American Enterprise Institute (AEI) on Americas Natu-

ral Gas: Should Exports be Restricted?Growth in shale gas production in the

coming years is now expected to substan-

tially reduce, if not eliminate, the need for

the US to import natural gas, Rao said.

She noted that according to US Depart-

ment of Energy estimates, the total pro-

duction of natural gas in the US would

exceed domestic consumption by 2020.

This scenario opens up the possibility

of the export of liquefied natural gas (LNG)cargoes from the US to other energy

scarce countries, including India where

there is significant untapped potential for

natural gas demand in all end use seg-

ments, she said.

The advantage is mutual and that natu-

ral gas exports represent a win-win co-

operation opportunity, Rao said.

She said that India had already invested significantly in the liquefaction terminals that were likely to come up in the

US.

Our companies are scouting for more tie-ups and ownership stakes in the 19 odd terminals which have applied for ex-

port of natural gas to non-Free Trade Agreement (FTA) countries, she said.

Besides, other Indian companies, including Reliance Industries Ltd in the private sector, have bought stakes in oil and

gas exploration and production companies, a trend which will receive a huge boost if export of natural gas is permitted to

India, Rao said.

According to a US Energy Information Administration (EIA) study cited by her, roughly 20 percent of the $133.7 billion

invested in US tight oil and shale gas from 2008 to 2012 has come from abroad, with Indian companies accounting for a

total investment of nearly $4 billion.

These investments represent more growth, jobs and progress for the US economy and should, in my view, be wel-

comed, Rao said.

US natural gas exports will also bring significant geo-political and strategic advantages to both the US and its part-ners and allies across the world, she said.



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Issue no 519 I May 01-08, 2013


>> SECTORAL NEWS

Apparel industry to triple revenue by2020: CMAI reportDespite the slowdown, Indian apparel market

is expected to grow annually at 13-15% to

cross the $125 billion (Rs 675,000 crore)

mark by 2020, a survey by Clothing Manufac-

turers Association of India (CMAI) has found.At present, Indias apparel market is esti-

mated to be around $50 billion (Rs 270,000

crore).

Retail will play a pivotal role in Indias

growth and of this retail will be an important

part. Though growth of 20-25% in apparel is

not going to be an easy one, said Rahul

Mehta, president, CMAI.

Mehta said that increasing purchasing power of youth will drive the the growth.

The growth is primarily driven by rising income levels, young population, increasing preference for branded appareland a surge in demand of rural and the semi-urban areas, he said.

Factors like the changing fashion trends, growing consumer class and rising urbanisation have led to the growth in the

apparel industry. Increasing retail penetration, growing service class and the increasing share of the designer wear have

also been the drivers for growth, the agency further said.

The market is not bullish yet retailers are seeing decent growth in the fashion business. While the branded apparel

segment is still evolving, going forward by 2020 we can expect it to contribute 40% from the current 25%, said Prashant

Agarwal, joint managing director, Wazir Advisors, a management consulting firm.

Meanwhile, founder of Future Group, Kishor Biyani said that theres immense opportunity for growth in the apparel in-

dustry.

Source: Hindustan Times

Zimbabwe wants Indian firms supplying it generic medicines to produce the drugs locally so that its pharmaceutical sec-

tor could grow, the countrys health minister, Henry Madzorera, has said.

Going forward, we desire our pharmaceutical industry to grow, and we believe that the Indian manufacturing sector

can play a key role in Zimbabwes development, Madzorera told IANS in an interview here.

The minister, now on a visit to India, is exploring this possibility with various Indian drug manufacturers and hopes to

garner concrete partnership and collaboration proposals.

Zimbabwe is right in the centre of three epidemics - HIV/AIDS, TB and malaria. We think drugs to control theseshould be manufactured in the region and Indian companies should exploit this opportunity, Madzorera said.

We want to increase the manufacturing capacity of Zimbabwe through parnerships with Indian pharmaceutical firms.

He said companies had earlier hesitated to invest in his country as the nation of 13 million went through a difficult eco-

Zimbabwe beckons Indian drug firms


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Issue no 519 I May 01-08, 2013


>> SECTORAL NEWS

nomic phase due to political uncertainty.

The situation has now changed. Zimbabwes economy is mostly dollarised. Though we may be a small country, Indian

companies investing there will have access to a 250 million-strong SADC market, Madzorera said.

The South African Development Community (SADC) is a 14-nation regional grouping of middle and low income coun-

tries of the area. Among its members are Zambia, Tanzania and South Africa.

Indian pharma firms otherwise have a major presence in the region, particularly in South Africa, which is the largest

market for Indian medicines in the continent. Indian firms like Cipla are already manufacturing drugs in South Africa.

At the last India-Zimbabwe Joint Trade Committee meeting held in Harare in March, which was co-chaired by Com-

merce Minister Anand Sharma and his Zimbabwean counterpart Welshman Ncube, potential joint venture investmentprojects from the Industrial Development Corporation of Zimbabwe were presented for consideration of the Indian side.


A power venture formed by Indian and North American energy professionals plans to create a role model for the worldby lighting up famed Buddhist sites in Bihar with a $240 million (Rs. 13 billion) solar energy project as part of a corporate

social responsibility initiative.

Founded in 2011, FJS Energy LLC, USA, aims to work around the Buddhist Circuits starting with Rajgir-Nalanda and

Bodhgaya in the first phase and then taking up Vaishali and other places.

We would like to start the process of implementation at the earliest, Christopher Sargunam, Chief Operating Officer

of the company with offices in Delhi, New Jersey and Ontario, Canada, told IANS in an e-mail.

The companys ultimate aim is to create a portfolio of 200 MW at a cost of around Rs. 13 billion ($240 million), but the

first phase would focus on 20 to 25 MW which would envisage an investment of upwards of Rs. 1.6 billion ($30 million),

he said.

FJS Energy thought of lighting up the Buddhist Circuit as a not-for-profit Corporate Social Responsibility initiative

with a larger objective as it is one of the world key religious tourism destinations that has of late witnessed a sharp rise

in the domestic and foreign tourist arrivals.

While the Bihar government is pursuing development of road and other key infrastructure in a planned manner, it is

equally important to have clean and continuous supply of power to these circuits and create a role model for the world,

Sargunam said.

While Bihar is currently the companys key focus in the clean energy space, it would eventually look at other opportu-

nities on a case by case basis.

Quite optimistic about the Indian market place we are also currently structuring long term coal supply contracts (of

up to 25 years), which of-course is a for-profit initiative, Sargunam said.

With its key strength lying in partnerships globally and more particularly in the US for securing coal with

customised/blended specs from a long term perspective, FJS aims to secure 5 percent market share in the coal importsbusiness in India, he said

FJS Energy, which has secured fuel reserves in different parts of the world through acquisitions, joint ventures and

option agreements, provides innovative energy solutions in thermal and clean energy space, Sargunam said.


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US firm to invest $240mn to light upBihars Buddhist sites


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Issue no 519 I May 01-08, 2013


>> SECTORAL NEWS

India will soon overtake China as the preferred destination for investment by Japanese manufacturing companies. Ac-

cording to Japan Bank of International Cooperation (JBIC) CEO and executive managing director Hiroshi Watanabe, the

gap between China and India in attracting Japanese investment has reduced significantly in the last couple of years.

JBIC conducts an annual survey of Japanese companies preferred investment destination every August.

Watanabe told TOI that the latest survey on overseas investment by Japanese manufacturing companies showed thatIndia ranked as the second most preferred investment destination after China. However, Japanese firms have been

steadily reducing investment in China.

We have enough feelers to suggest that Japanese companies dont want to put all eggs in one basket (read China).

India has huge potential for attracting investment from Japanese companies. You have good technology for multiplying

growth of manufacturing sectors. Besides, India has a good legal system and companies hope getting justice, though the

process of judgment takes little long, he added.

The JBIC CEO said Indias demographic advantage and increasing buying power would motivate more Japanese firms

to set up units here. He added that earlier, Japanese companies concentrated manufacturing in one country and ex-

ported the products to other countries. But in India, these companies manufacture and also sell their products since the

demand is more. The game is now changing, Watanabe said. He added that while Japanese investment earlier concen-trated in the south and eastern regions such as Chennai, the next phase of investment will be along the Delhi-Mumbai In-

dustrial Corridor (DMIC). Investment would be more in states such as Gujarat and Haryana, the multi-lateral bank CEO

said.

Source: Times of India

India to be preferred option forJapanese companies


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Issue no 519 I May 01-08, 2013


>> NEWS ROUND-UP

ADB to provide $6 billion to India overnext 3 yearsThe Asian Development Bank

(ADB) said it will provide about

$6 billion loan to India over the

next three years, even as the

multilateral lender stated it is

facing the challenge of raisingresources.

Our idea is ADB will main-

tain its lending level to India,

approximately $2 billion over

next three years. We are now

working on the country part-

nership strategy and we are

planning to maintain the level

of lending to India, ADB Presi-

dent Takehiko Nakao said at

the concluding day of the 46thannual meeting of the funding

agency.

India is the biggest borrower of ADB.

The Manila-based multilateral lender had extended $2.4 billion loan to India in 2012 across sectors like transport, en-

ergy, commerce, industry, trade and finance.

Asked about whether ADB has identified projects, Mr. Nakao said it is too premature to talk about any specific ones

but ADB team is looking at various concrete projects.

He also said that the bank will continue to lend $10 billion a year across the member-nations despite generating lower

return from investments.

Stating that ADB is facing a resource challenge, he said this issue will require urgent and careful attention. We will

look at all options for ensuring that our lending level remains adequate.

Actively investing in different kinds of assets can be one of the options for larger revenue, he said, adding that finan-

cial safety and return is the key objective while making investment.

Asked whether there was discussion on augmenting the capital of the bank at the Board of Governors meeting, Mr.

Nakao said: That is a very difficult issue. At this point I want to mention what kind of objections we are getting to main-

tain the level of lending. I dont want to specify what kind of idea we have at this moment.

ADBs capital was tripled in 2009. The fund enhancement came after a gap of 15 years.



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Issue no 519 I May 01-08, 2013


>> NEWS ROUND-UP

India to set up $1 bn innovation fund

BSE to offer courses in UAE to help boost financial market

The Indian government has outlined a plan to set up Rs.5,000 crore (nearly $1 billion) fund to facilitate innovation and en-

trepreneurship, top official said.

The government would initially contribute $20 million (Rs.100 crore) to the India Inclusive Innovation Fund. The re-

maining amount would come from scheduled banks, insurance companies, financial institutions, corporates, high net

worth individuals as well as bilateral and multilateral institutions, said Economic Affairs Secretary Arvind Mayaram.

This fund would help encourage and finance such products to boost scientific innovations that can improve the life of

the common man, Mayaram, said while addressing a seminar on innovation on behalf of Finance Minister P. Chi-dambaram here.

The seminar was organised by the finance ministry in partnership with the Federation of Indian Chambers of Com-

merce and Industry (FICCI) as part of the 46th annual meeting of the board of governors of the Asian Development Bank.

Mayaram said the National Innovation Council, which is a part of the Planning Commission, has outlined the plan of

setting up of the Rs.5,000 crore fund.

The new fund is aimed to drive and catalyse the creation of an ecosystem of enterprise, entrepreneurship, and venture

capital, targeted at innovative solutions for the bottom of the pyramid, Mayaram said.

FICCI president Naina Lal Kidwai emphasised on the need for greater collaborations between the government and the

private sector to help promote growth and innovation.

There is a growing conviction that breakthroughs in ideas and technology must be directed to ensuring that people fromall social and economic strata, particularly those at the bottom of the pyramid, partake in the growth process, Kidwai said.


Abu Dhabi/Mumbai, May 6: BSE Institute, a wholly-owned subsidiary of Bombay Stock Exchange (BSE), Monday signed

a memorandum of understanding with IBMC Financial Professionals Group of the United Arab Emirates to offer knowl-

edge and skills to professionals and investors, and support the growth of financial markets in that region.

The institute will offer its course to investors, college students and general public in Abu Dhabi, Dubai and Sharjah.

The tie-up will provide training programmes, including flagship programmes like introduction to Shariah-compliant

Qualified Foreign Investors, Islamice Finnance, etc in the GCC regions, enabling investors make informed investment de-

cisions, said BSE Managing Director Ashish Kumar Chauhan.

Added the institutes Managing Director Ambarish Datta: With the knowledge and skills required to directly invest in

Indian equity market (will) lead to the widening of the class of investors, attract more foreign funds, reduce market

volatility and deepen the Indian capital market.

Datta added that professional training will significantly enhance the skills of professionals in the region to make the

GCC region a global gateway for equity, currency and commodity trade.

IBMC Financial Professional Group Chairman and Managing Director Hazza Mohammed Al Dhaheri and CEO Sajith

Kumar also spoke on the occasion.

The BSE Institute Ltd inherits the knowledge and insights into the capital markets industry garnered by BSE over thepast 136 years.

It offers a wide range of programmes ranging from one-day workshops to fulltime post-graduate programs in financial

markets, banking and finance, business journalism, and certificate courses for professionals in areas like cash markets,

derivatives and mutual funds.



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Issue no 519 I May 01-08, 2013


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