FDI Inflows in India up by 22% - Joins Top 10 Global FDI Destinations at #9 in '14 (From #15 in '13)

[Chanakya's_Chant]

India Attracts Enough FDI to Join Global Top Ten

German Chancellor Angela Merkel,and Indian Prime Minister Narendra Modi, stand on stage at the Hanover industrial fair in Germany, April 13, 2015. Foreign direct investment surged in India last year.
Krisztian Bocsi/Bloomberg News
​

Even as most countries attracted less foreign direct investment last year, investment in India surged on hope its economy is set for take off.

Asia’s third-largest economy received $34 billion as FDI in 2014, according to report released Wednesday by the United Nations Conference on Trade and Development. That’s a 22% jump from the previous year, meaning India was the country that attracted the ninth largest amount of international investment last year. The year before the South Asian nation’s ranking was 15th.

Total global FDI fell 16% to $1.2 trillion during the year as a fragile global recovery and geopolitical risks hurt investor confidence. While much of Asia saw increased inflows, India was among the countries that showed the biggest increases.

“As an expected economic recovery gains ground, FDI inflows are likely to maintain an upward trend in 2015,” in India, the Unctad report said.

The government’s efforts, including Prime Minister Narendra Modi’s “Make in India” program aimed at attracting global companies to produce locally, are helping strengthen interest the country’s manufacturing sector, the report said.

Of course, India still has a lot of catching up to do with its regional competitor China. While FDI into China grew a much slower at 4% last year, it received close to four times the FDI India got.

China attracted $129 billion in 2014, helping it dislodge the U.S. as the highest FDI attracting nation.

Source:- India Attracts Enough FDI to Join Global Top Ten - India Real Time - WSJ

 

[anant_s]

Two things are going to improve these values even further:
1. Allowing increase of FDI limit in different sectors

2. Speeding up in manufacturing sector with Make In India campaign gaining momentum.

Already we are seeing an increase of about 43% in FDI equities for the calender year and these will further rise as spending cycle by domestic players pickup and foreign investment in these sectors improve.
http://dipp.nic.in/English/Publications/FDI_Statistics/2015/india_FDI_April2015.pdf

Recent reports have already indicated sharp pickup in road building and as infra sector starts moving, overall financial system will respond positively (reduction in bad loans etc.). In this context scraping of Minimum Alternate Tax, Retrospective Taxation along with GST bill and Land Reforms amendment bill are important. Hopefully by end of this year we will have greater clarity and consensus on these issues.

 

[大汉奸柳传志]

Pay no attention to GDP，FDI is the golden indicator for India at this stage，translate these $$$ into trade surplus later on and there you go，sustained growth

 

[anant_s]

Pay no attention to GDP，FDI is the golden indicator for India at this stage，translate these $$$ into trade surplus later on and there you go，sustained growth

I don't see Trade Surplus happening anytime soon, simply because Europe is in crisis situation and we cannot expect American economy to start booming as it was at the turn of century soon. The markets in Latin America and Africa are therefore important but to make a reach in these, it will take time.
A more prudent approach will be increasing the domestic spending cycle for consumption. This will require massive spending not just on Infra sector and manufacturing but also on skill development. In this manner, more people will find employment and hence money to spend, which will revive domestic growth cycle for local manufacturing.
I've been following talks from various economists and policy makers for a while now and get a feeling, that we are not relying on developing a model based solely on export driven trade and instead trying to use favorable young demography as driver for manufacturing.
The only trouble here is dismal performance of agriculture sector, which unfortunately is still rain based and hence the most laggard of sectors contributing to GDP.

 

[Chanakya's_Chant]

I don't see Trade Surplus happening anytime soon, simply because Europe is in crisis situation and we cannot expect American economy to start booming as it was at the turn of century soon. The markets in Latin America and Africa are therefore important but to make a reach in these, it will take time.
A more prudent approach will be increasing the domestic spending cycle for consumption. This will require massive spending not just on Infra sector and manufacturing but also on skill development. In this manner, more people will find employment and hence money to spend, which will revive domestic growth cycle for local manufacturing.
I've been following talks from various economists and policy makers for a while now and get a feeling, that we are not relying on developing a model based solely on export driven trade and instead trying to use favorable young demography as driver for manufacturing.
The only trouble here is dismal performance of agriculture sector, which unfortunately is still rain based and hence the most laggard of sectors contributing to GDP.

Not sure about trade deficit but India's current account which has been consistently in deficit over the last 10 years is likely to swing into a minor surplus of 0.3 per cent of GDP in 2015.

The current account deficit has been narrowing steadily since 2012 to an estimated 1.6 per cent of GDP in 2014.

It will protect India from external funding risks and give the RBI comfort in targeting real interest rates at more moderate levels thus giving a vital boost to the economy.

India's current account to swing into minor surplus in 2015: Morgan Stanley - timesofindia-economictimes

 

[PatriotLover]

This is unacceptable. A India with high growth is death for Pakistan. We can still stop it.

 

[Super Commando Dhruva]

In Rock style "It doesn't matter what you think" Bring it ON baby

I wanted to share my first comment with our Israeli Friends but landed here.

 

[anant_s]

Not sure about trade deficit but India's current account which has been consistently in deficit over the last 10 years is likely to swing into a minor surplus of 0.3 per cent of GDP in 2015.

The current account deficit has been narrowing steadily since 2012 to an estimated 1.6 per cent of GDP in 2014.

It will protect India from external funding risks and give the RBI comfort in targeting real interest rates at more moderate levels thus giving a vital boost to the economy.

India's current account to swing into minor surplus in 2015: Morgan Stanley - timesofindia-economictimes

It may be an irony but if Europe remains in economic condition it is right now and demand from China remains stagnant, Crude prices are likely to remain close to USD 55-60 per barrel range which is quite comfortable for government as it is the single largest contributor towards import bills.
Second the directed subsidy scheme (linked through Aadhar card) is reducing the leakages and therefore helping government manage its finances better. Now irrespective of government, this pattern will continue in future which is a positive change.
These two things are likley to further improve upon our existing CAD allowing more money in government hand for spending.
Third, with this money in hand, government is asking PSUs to spend more (capital expenditure) so that there is a pickup in construction, cement and power sector. This will allow a novel use of idle cash and also restart spending cycle in which private sector will start participating soon.
Fourth, if inflation remains manageable, RBI is likely to reduce rates from fourth quarter this year or first in 2016. Analysts believe a 1% reduction in rates can translate to 1% growth in GDP averaged over 3-4 years.
Fifth US economy is likely to pickup pace from end of this year (infact Federal reserve has already started giving indications of tightening of interest rates, signalling improvement in overall scenario). This has positive implications for Service sector growth, a significant contributor to our GDP.
Sixth Monsoon hasn't been as bad as earlier predicted and hence agriculture sector may not be as badly affected as thought initially, one more positive sign.

It still is an uphill task to move to 8-9% GDP growth but not an impossible one. All it needs is some fiscal discipline, clever planning and some lady luck to be smiling. I personally can see all three happening at the moment, fingers crossed.

This is unacceptable. A India with high growth is death for Pakistan. We can still stop it.

A high Indian GDP growth rate will benefit Pakistan trade as well. Its going to benefit both nations ultimately.

 

[Echo_419]

Pay no attention to GDP，FDI is the golden indicator for India at this stage，translate these $$$ into trade surplus later on and there you go，sustained growth

Exactly the new govt has done a lot of work to attract FDI & will continue to take further steps in this regard

 

[Chanakya's_Chant]

Foreign direct investment (FDI) into India during October 2014-April 2015 period rose by 48% year-on-year after the launch of ‘Make in India’ initiative.

FDI soars 48% after 'Make in India' launch | Free Press Journal

Out of the total FDI inflows of $31 bn received during April-March 2014-15, the services sector accounted for almost 17% of the cumulative inflows

Services attract highest foreign direct investment, despite Make in India push | Business Standard News

The one thing Modi did right: FDI in India (And all about FDI) | Ankur Sohanpal | LinkedIn

 

[Gessler]

A high Indian GDP growth rate will benefit Pakistan trade as well. Its going to benefit both nations ultimately.

You're not seriously trying to reason with a donkey are you?

 

[Chanakya's_Chant]

Make in India effect: Foreign investment up 164 pc in auto industry
Foreign investment jumped to US$2189.15 million (October 2014- April 2015) from US$ 830.69 million (October 2013- April 2014), in the industry.
​

Bharat Electronics gained 3 per cent, BEML surged 7 per cent and Pipavav Defence and Offshore Engineering Co rose 5 per cent.

ETAuto Bureau
NEW DELHI: Foreign Direct Investment (FDI) into the automobile industry has seen a 164 percent growth, in the seven month period from the launch of Make in India initiative on September 25, 2014, an official statement said on Thursday.

Foreign investment jumped to US$2189.15 million (October 2014- April 2015) from US$ 830.69 million (October 2013- April 2014), in the industry.

To attract more investments in the manufacturing sector, the Union Cabinet has introduced composite caps for simplification of FDI policy.​

Under the new policy, all foreign investments like FIIs, NRIs and others will be clubbed together. This will be constituted as a composite cap.

This step is aimed at simplifying the FDI policy, improving ease of doing doing business in India and eventually leading to an increase in foreign investments in the country.
​

READ ALSO:FDI up 48 percent in seven months of 'Make in India'​

The policy proposed by Ministry of Commerce and Industry says "sectoral cap that is to say the maximum amount which can be invested by foreign investor, unless provided otherwise, is composite and includes all types of foreign investments, direct and indirect".

During the period October, 2014 to April, 2015, FDI inflow recorded a growth of 42 percent from US $ 20.75 billion in US $ 29.42 billion.

FDI equity inflows also increased from US $ 13.41 billion to US $ 19.84 billion, recording an increase of 48 percent.​

Source:- Make in India effect: Foreign investment up 164 pc in auto industry | ET Auto​

 

[VeeraBahadur]

This is unacceptable. A India with high growth is death for Pakistan. We can still stop it.

Don't die out of heart attack. We annually add more than Pakistan's total GDP. Our growth is imminent.All you can do is to print and pump FC. Beyond that it's not under your control.

 

[Echo_419]

Make in India effect: Foreign investment up 164 pc in auto industry
Foreign investment jumped to US$2189.15 million (October 2014- April 2015) from US$ 830.69 million (October 2013- April 2014), in the industry.

Bharat Electronics gained 3 per cent, BEML surged 7 per cent and Pipavav Defence and Offshore Engineering Co rose 5 per cent.
​

ETAuto Bureau
NEW DELHI: Foreign Direct Investment (FDI) into the automobile industry has seen a 164 percent growth, in the seven month period from the launch of Make in India initiative on September 25, 2014, an official statement said on Thursday.

Foreign investment jumped to US$2189.15 million (October 2014- April 2015) from US$ 830.69 million (October 2013- April 2014), in the industry.

To attract more investments in the manufacturing sector, the Union Cabinet has introduced composite caps for simplification of FDI policy.​

​

Under the new policy, all foreign investments like FIIs, NRIs and others will be clubbed together. This will be constituted as a composite cap.

This step is aimed at simplifying the FDI policy, improving ease of doing doing business in India and eventually leading to an increase in foreign investments in the country.

READ ALSO:FDI up 48 percent in seven months of 'Make in India'

The policy proposed by Ministry of Commerce and Industry says "sectoral cap that is to say the maximum amount which can be invested by foreign investor, unless provided otherwise, is composite and includes all types of foreign investments, direct and indirect".

During the period October, 2014 to April, 2015, FDI inflow recorded a growth of 42 percent from US $ 20.75 billion in US $ 29.42 billion.

FDI equity inflows also increased from US $ 13.41 billion to US $ 19.84 billion, recording an increase of 48 percent.

Source:- Make in India effect: Foreign investment up 164 pc in auto industry | ET Auto​

Amazing what low oil prices can do

 

[[Bregs]]

Great going