Chinese group XCMG to invest $150 million in India

Jan 13, 2017 0

Chennai–Chinese construction machinery maker XCMG Construction Machinery Company Ltd will invest $150 million in India, the company’s top official said.

“India is one of the fastest growing nation amongst the emerging economies. We are planning to invest $150 million to build a modern manufacturing facility,” Wang Min, Group Chairman, told reporters here on Thursday.

XCMG Construction Machinery is a listed company in China and is a subsidiary of Xuzhou Construction Machinery Group Co. Ltd. (XCMG).

Wang Min said by the end of this year, the factory would be built. The group is known for loaders, excavators.

“We will have to evaluate the Indian market,” he said.

Wang said the RMB 80 billion turnover XCMG will learn from its competitors in the Indian market.

“We will have our own strategy for the Indian market. We will also localise the components. The overall investment plan will be implemented in stages,” the official added.

According to Anand Sundaresan, Chairman, Schwing Stetter Sales and Service, the investment is part of ‘Make in India’ programme and the XCMG would produce construction equipment and material handling products.

German company Schwing Stetter making ready-mix concrete machinery is part of XCMG.

Sundaresan said the proposed XCMG plant will be under a separate company and the products would be sold by the existing sales network of Schwing Stetter.

“The proposed products could be sold under joint brands of XCMG and Schwing,” Sundaresan said.

He said the proposed plant may roll out wheel loaders, excavators, motor graders, cranes and other products.

Sundaresan said the proposed plant will be located in South India and various sites are being studied. (IANS)

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Top source of foreign investment in India: Mauritius, followed by US, Britain

Jan 10, 2017 0

Mumbai– Mauritius provided the maximum inward foreign direct investment, accounting for 20.8 per cent of FDI in India, followed by the US, Britain, Singapore and Japan till the end of the last fiscal, the RBI said on Tuesday.

Instead “the major destination for ODI (Overseas Direct Investment) by Indian companies was Singapore (20.6 per cent) in March 2016,” said a Reserve Bank of India statement as the central bank released its Census on Foreign Liabilities and Assets of Indian Direct Investment Companies for 2015-16.

“The total inward FDI stock stood at Rs 20.1 lakh crore, whereas total ODI was placed at Rs 5,79,020 crore at market value in March 2016.

“FDI stock at market value in the manufacturing and services sectors stood at Rs 10,00,630 crore and Rs 8,59,080 crore, respectively, in March 2016,” it said.

“In the latest round of the Census, of the 18,549 reporting companies, 17,008 companies had FDI/ODI in their balance sheet in March 2016,” the statement added.

Total sales, including exports, of Indian subsidiaries overseas increased 22.5 per cent to Rs 3,30,110 crore in 2015-16. The total value of their purchase, including imports, during the same period increased by 44.7 per cent to Rs 3,15,070 crore.

“Total sales of foreign subsidiaries in India (including exports of Rs 5,49,360 crore) stood at Rs 17.1 lakh crore in 2015-16, while their purchases (including imports of Rs 4,61,420 crore) were placed at Rs 10.8 lakh crore” RBI said.

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Modi invites foreign firms to invest in oil, gas exploration

Dec 5, 2016 0

New Delhi– Prime Minister Narendra Modi on Monday invited foreign companies to invest in the Indian oil and gas sector, saying the country’s economy was expected to grow five-fold by 2040.

“My message to global hydrocarbon companies is come and Make in India. Our commitment is strong and our motto is to replace Red Tape with Red Carpet,” Modi said at the inauguration of Petrotech 2016, adding: “We expect growth in manufacturing, transport, civil aviation among other sectors.”

“India needs energy which is accessible to the poor,” the Prime Minister added.

Indian Prime Minister Mody

Indian Prime Minister Mody

For having affordable energy to attain sustainable growth, the government aims to provide electricity to all by March 2018, piped natural gas connection to 10 million and pipeline network to 30,000 km in 5 years, he said.

“Government is building a new gas pipeline to the least developed eastern region, which has become a catalyst to new jobs,” he said.

Modi said the government plans to reduce oil imports by 10 per cent in 2022, and that efforts should be made to move towards a gas-based economy.

Speaking earlier, Petroleum Minister Dharmendra Pradhan said that with India becoming the world’s third largest oil consumer, the bi-annual Petrotech international conference will play a key role in preparing a roadmap to meet the country’s future energy needs.

The three-day event will see the participation of six thousand delegates from 68 countries, as well as 20 ministerial delegations, he added.

Besides Petrotech 2016, International Energy Forum and International Gas Union Ministerial Conferences are also being organised here simultaneously. (IANS)

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Indian telecom sector got $10 billion foreign investment in eight months of 2016-17

Nov 30, 2016 0

New Delhi–The Indian telecom sector has received foreign direct investment (FDI) of $10 billion in the first eight months of the current fiscal, Telecom Secretary J.S. Deepak said here on Wednesday.

“The telecom sector reforms have got a resounding acknowledgement. The FDI which was $1.3 billion in 2014-15, $2.9 billion in 2015-16 has jumped up to more than $10 billion in the first eight months of 2016-17,” Deepak said.

He was addressing the 12th National Summit e-Governance and Digital India organised by Assocham.

Telecom Secretary J.S. Deepak

Telecom Secretary J.S. Deepak

Talking about Unstructured Supplementary Service Data (USSD)-based mobile banking transactions, Deepak said: “There is not only a need to popularise USSD, but there is a need to simplify it. We need to work on a push USSD rather than a pull USSD.”

The USSD service is used by people using feature phones to check the balance in their bank accounts and transfer money.

At a time when the country is undergoing a demonetisation drive of higher denomination Rs 500 and Rs 1,000 notes, every day more and more people are logging into online payment modes and online banking transactions.

“The merchants should be able to push in a message to feature phone users wherein you just have to okay it for a transaction and goes back to the banks. The burden of enabling IFSC (Indian Financial System Code) and other should move from the payers to the recipient,” the secretary added.

The sectoral regulator — Telecom Regulatory Authority of India (TRAI) – has recently lowered the USSD tariff to a maximum of 50 paise per transaction, from the earlier rate of Rs 1.50 per session.

He also said 97 per cent of the population in India is on 2G and 68 per cent on 3G telephony. (IANS)

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Indian Government calls for free India-UK trade across sectors

Nov 7, 2016 0

New Delhi,– The Indian government here on Monday called for free trade across sectors, including smart cities and manpower, between India and the UK as the two countries signed two Memoranda of Understanding (MoU) on ease of doing business and protecting intellectual property rights (IPR).

“UK seems to want Indian market, Indian goods but not Indian talent,” Commerce Minister Nirmala Sitharaman told reporters, adding that the issue of visa fee and student visa was raised in the bilateral talks.
Sitharaman was speaking at a press briefing on the sidelines of the three-day India-UK Tech Summit starting on Monday. The summit was attended by Prime Minister Narendra Modi and British Premier Theresa May, who is on a three-day official visit to India.

“The MoU on ease of doing business was towards sharing of best practices and technical assistance on certain parameters. It covers state governments as well,” Sitharaman said.

It will help India get technical know-how on certain parameters in which the UK has expertise, Sitharaman added.

NITI Aayog CEO Amitabh Kant said, “India should push the limit when it comes to enhancing trade and investment with the UK after Brexit.”

Kant added that free trade should be across the board as there is no such thing as selective free trade. He was speaking at a session at the India-UK Tech Summit organised by Confederation of Indian Industry (CII).

There is need for free trade in cross-border movement of manpower as well and the UK should allow meritorious people from India to work in the UK, he said.

There is immense potential between India and the UK in the area of urbanisation, education, defence, finance, creative industry, and start-ups, Kant added.

“The government has created a conducive eco-system for start-ups. The Masala Bonds, launched in the UK, could help meet the funding requirements for start-ups,” he said.

Greg Hands, UK Minister of Trade and Investment, said that Brexit offers a huge opportunity for UK-India economic interaction in areas such as life sciences, infrastructure, and services, among others.

“A Working Group has been constituted on Trade which would discuss the issue of India-UK FTA at an appropriate time,” Hands said. (IANS)

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Foreign Ministry also contributed to 53 percent foreign investment growth: Sushma Swaraj

Oct 23, 2016 0

Indore–External Affairs Minister Sushma Swaraj said on Sunday that the role of her ministry is undergoing transformation, as apart from diplomatic functions, now it is also acting as a catalyst to national development.

Addressing the closing ceremony of the two-day Global Investors’ Summit here, Sushma Swaraj said it is also because of the changing role of the Ministry of External Affairs (MEA), among others, that there has been an increase of 53 per cent in the foreign direct investment (FDI) in the country.

“This is first time that the foreign ministry has taken upon itself the task to boost national development. Never ever in the past domestic development was part of the MEA agenda,” he said.

Sushma Swaraj

Sushma Swaraj

“Previously, it used to be just a ministry for diplomatic purposes. But today, we are performing the diplomatic role, ensuring safety of the Indians in trouble abroad, and also generating funds for the development of the country,” the minister said.

Sushma Swaraj said: “Compared to the last year, there’s been a rise of 53 per cent in FDI, which is going to the states. With a view to ensure that investments reach the states, a dedicated division has been formed within the MEA. An officer under the MEA Joint Secretary guides the states in making the most of such funds.”

The External Affairs Minister also called upon the investors to make greater investments in Madhya Pradesh.

She said her parliamentary constituency, Vidisha, falls within this state, and Budhni, the assembly constituency of state’s Chief Minister Shivraj Singh Chouhan, also falls within her constituency.

“So, those making investments here will avail special benefits…the ministry helps the investors going to other states, but those investing in Madhya Pradesh will get direct assistance from the foreign minister herself,” she added.

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Indian growth makes it natural recipient of higher foreign investment: Jaitley

Oct 10, 2016 0

Washington– India, since it is growing much faster as compared to the rest of the world, has become natural recipient of a higher level of foreign direct investment (FDI), Finance Minister Arun Jaitley has said.

“India has become far more aspirational than ever before. So compared to the rest of the world, we are doing much better,” Jaitley, who is here attending the annual fall meeting of the International Monetary Fund and the World Bank, told reporters on Sunday.

“Since India is growing much faster, as compared to the rest of the world, it has become the natural recipient of a higher level of FDI,” he said.

“For the rest of the world, whereas we aspire to do better in this adverse environment, they consider it extremely impressive. So there is a lot of global buzz around India,” he added.

The Finance Minister, however “put a caveat”, saying by India’s own yardstick, its current growth rate is not enough.

“We can do still better, which in a sense, is not a bad thing to happen. To be restless, to be impatient is a sign of wanting to do better,” he said.

“I think with the kind of investments, both domestic and international, that we are getting, a reasonable amount of growth will always be there. If growth returns to the world, then you would probably move up. Structural reforms like GST (Goods and Services Tax) can only add to that,” he added.

He pointed to the unsupportive global environment and stagnant investment in some private sectors as inhibiting factors.

“In India, we have to learn to live in an environment where the world is going to move slowly. And the world is not going to be very supportive of growth. The global environment is not very supportive of growth,” he said.

Jaitley has a series of bilateral meetings here with his counterparts from various countries, including the US, Britain and China, Iran, Bangladesh, Bhutan and Sri Lanka, said the Indian Finance Ministry.

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Foreign Investment increase needs to translate into jobs: Sitharaman

Oct 6, 2016 0

New Delhi–Commerce Minister Nirmala Sitharaman on Thursday lauded the increase in foreign direct investment (FDI) in India but said it will be meaningful only when it translates into increased job creation.

“FDI flow is really very good but we have to translate it into meaningful investments and job creation. So not only increased foreign investments coming in, but we are working for it to be meaningful,” Sitharaman said at the World Economic Forum’s ongoing India Economic Summit here.

“Our attention will be to remove obstructions, so that businesses feel the ease,” she added.

Sitharaman said the government was now working towards adding infrastructure capabilities in tier-III cities and rural areas for the benefits of increased foreign investment to percolate down.

“Lot of regulatory mechanisms that go down to the local bodies will have to be eased upon. In rural areas, in tier-III towns, better market access needs to be provided,” she said.

For the comprehensive agenda, inter-ministerial synergy needs to be there and states too need to come on board, she said, adding, “work is on but there is more to achieve”. (IANS)

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India clears three foreign direct investment proposals

Sep 21, 2016 0

New Delhi– The government on Wednesday cleared three Foreign Direct Investment (FDI) proposals worth Rs 0.35 crore.

“Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its 239th meeting held on 30th August 2016, the Government of India has approved three FDI proposals,” the Ministry of Finance said in a statement.

According to the statement, proposals of Dr. Willmar Schwabe India, SAET India and Bugworks Research India were approved.

The FIPB in its meeting held on August 30, approved the proposal of Dr. Willmar Schwabe India to commence manufacturing and distribution of dietary supplement products and nutraceuticals manufactured in India by way of retail or wholesale among others.

The proposal of SAET India to transfer shares from one non-resident to another non-resident for Rs 732.6 per share was also approved.

The statement further said that seven proposals including those of Rain Industries, Entrepreneur India Media, Bashundhara Paper Mills India, BNP Paribas Asset Management India, Whizdm Innovations, TM Harbour Services and Sharekhan were deferred.

“Regarding the proposal of M/S Almondz Insurance Brokers Pvt Ltd which was approved in the 232nd meeting held on 7th March 2016 subject to submission of an amended Share Purchase Agreement, the Board noted that the applicant had submitted the amended Share Purchase Agreement /Shareholders’ Agreement after deleting the requisite clauses, and accordingly, recommended the increased FDI upto Rs.59 crore for approval,” the statement added. (IANS)

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Not considering foreign direct investment in multi-brand retail yet: Sitharaman

Sep 7, 2016 0

New Delhi–India is not considering allowing foreign direct investment (FDI) in multi-brand retail trading in the current circumstances, the government said on Wednesday.

“At the moment, India can create several Walmarts of its own. We welcome anybody. But if some way this dialogue is moving towards, why not in multi-brand retail in India? My answer is – Not yet,” Commerce Minister Nirmala Sitharaman said at The Economist magazine’s ‘India Summit’ here.

Elaborating on the rationale behind government policy, the minister said there is an issue of last-mile connectivity, adequate infrastructure and financial inclusion of segments like farmers and small traders.

Sitharaman“If only that happens, and if they (farmers and small traders) are adequately empowered to tackle the market themselves. But today we are trying to bridge those gaps. We are still not ready to have them and face a competition where there would not be a level playing field,” Sitharaman said.

India currently permits 51 per cent foreign investment in multi-brand retail. The Bharatiya Janata Party, the largest constituent of the ruling NDA, is opposed to FDI in this sector.

To a query on the absence of big supermarkets in India, Sitharaman said that “our supermarkets are friendlier than the faceless supermarkets I have been in the West.”

Meanwhile, an e-commerce committee headed by NITI Aayog chief executive Amitabh Kant held its first meeting here on Monday to discuss issues related to the sector, a senior official said.

Currently, the government allows 100 per cent FDI via the automatic route in the marketplace model of e-commerce.

However, foreign investment is not permitted in inventory-based e-commerce. (IANS)

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