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India is among the most favoured FDI destinations and the annual FDI inflows to the country is expected to rise to around USD 75 billion over the next five years, says a UBS report. According to the Swiss financial services major, foreign direct investment (FDI) inflows to India nearly doubled over the past decade to USD 42 billion as of 2016-17. Some moderation was seen in FDI flows in the December 2017 quarter, but it will likely normalise over the coming quarters, the report authored by Tanvee Gupta Jain and Edward Teather (Economists, UBS Investment Bank) noted. “We expect annual FDI inflows to India to rise further to around USD 75 billion over the next five years. We believe India will be increasingly recognised as a favoured FDI destination if growth is accompanied by continued structural reforms,” UBS said in a research note.

 

The report further noted that India needs to focus on attracting stable FDI flows to improve the competitiveness of its manufacturing sector and to make it an integral part of the global value chain. “We believe the transfer of technical and organisational knowledge that accompanies these flows will help boost productivity, support investment and contribute to India’s growth, under the right conditions,” the report noted.

 

According to a UBS Evidence Lab survey of US C-Suite corporate leaders in October and November 2017, India remains an attractive investment destination as over a quarter of larger companies expressed an intention to invest in India. The report further noted that while India has been undertaking reforms to attract higher FDI flows, the overall magnitude of these flows though improving is still way below potential.

 

“Domestic challenges including inadequate infrastructure spending, a restrictive regulatory regime, strict labour laws and other supply-side bottlenecks have constrained the positive externality and productive spillover impact of these flows,” the report noted.

 

Source:- Financial Express

 

India is expected to be the fastest growing economy in Asia and will reverse two years of declining growth to clock 7.3 per cent rise in GDP in the current fiscal and further accelerate to 7.6 per cent in FY20, the Asian Development Bank said in its forecast for the region. 

 

The dip in growth to 6.6 per cent in FY17 was in part due to the lingering effects of demonetisation that impacted the informal sector in the first half of FY17 and teething issues related to implementation of the goods and services tax (GST), the ADB said in the latest Asian Development Outlook (ADO) 2018 report. It expects various reforms measures to lift growth. 

 

According to India’s official estimates, the economy picked up pace to 7.2 per cent in October-December 2017 quarter from 6.5 per cent in July-September quarter and 5.7 per cent in April-June quarter. For the entire FY18, the economy is expected to grow 6.6 per cent . 

 

The Reserve Bank of India expects 7.4 per cent growth in FY19. 

 

“Despite the short-term costs, the benefits of reform—such as the recently implemented GST—will propel India’s future growth,” said Yasuyuki Sawada, ADB’s chief economist, in a statement. 

 

“Robust foreign direct investment flows attracted by liberalized regulations and the government’s steps to improve the ease of doing business will further bolster growth.” China is forecast to slow down from 6.9 per cent in 2017 to 6.6 per cent this year and further 6.4 per cent in 2019. 

 

"India would remain the fastestgrowing country across Asia," ADB India country director Kenichi Yokoyama said but flagged rising NPAs and crude prices spiking to over $70 a barrel as risks. 

 

India’s growth will get support from measures to bolster farmers’ purchasing power through higher procurement prices, agriculture market reforms and investments in irrigation and logistics, the Manilabased bank said. “Investment revival is expected to continue, albeit at a modest rate, as firms and banks strive to improve their balance sheets, and capacity utilization levels pick up,” it said in a statement. 

 

Inflation is forecast to rise to 4.6 per cent in FY18 and 5 per cent in FY19 due to firmer global commodity prices and stronger domestic demand. “The uptick in inflation along with deferment of fiscal consolidation and expected hikes in the US Federal Reserve’s interest rate has reduced the room for policy rate cuts to stimulate growth,” it said. 

 

A pick-up in growth in advanced economies will likely help exports grow at a healthy rate, but the ADB added that though protectionist trade measures by the United States are yet to impact trade, they pose a risk. "However, further action and retaliation against it (US trade tariffs) could undermine the business and consumer optimism that underlies the regional outlook (for Asia)," it said. 

 

US tariff hikes may not impact India much but there is a "need to be cautious," Yokoyama said.

 

Source:- The Economic Times 

 

LinkedIn, the popular social networking site for business people and professionals, released a report ranking 25 companies in India that are most preferred by professionals as their workplace. The list that is led by India’s Directi. Mukesh Ambani owned Reliance Industries, country’s largest and most valued firm, stands at 24th on this list. The other Indian companies are Flipkart, One97 Communications, Ola, OYO, and MakeMyTrip. The list of 25 companies was prepared based on proprietary LinkedIn data and billions of actions by over 546 million professionals on the platform. The LinkedIn report suggests that Indian professionals prefer local companies such as  Directi, Flipkart and One97 Communications (Paytm) over global leaders such as Google and Amazon in form of their workplace.

 

Both LinkedIn and its parent firm Microsoft are not included in the list. Amazon has slipped to fourth place after remaining at second spot in the last two consecutive years. India’s Directi, Flipkart and One97 Communications are the top three companies in the list. Alphabet that is Google’s parent company has been listed at seventh rank in the list.

 

The list compiled by the popular social networking site for business people and professionals provides a data that may help in solving problems and rewriting the rules followed by one’s industry, said Adith Charlie, India Editor, LinkedIn. Home-grown taxi-hailing app Ola stands at 16th place this year from fifth position in 2017.

 

Meanwhile, a study by job website Indeed has revealed that millennials are not much interested in the country’s agriculture sector or farming related jobs. There is a plunge of 25 percent in the average number of agriculture related job searches each week during CY2017. The reason behind this plunge is poor awareness about the scope of sector, lacking entrepreneurial spirit and job security, the study added. Recently, Nobel Laureate Paul Krugman, had said that for India to grow at the same pace as China, it needs to develop enough number of manufacturing jobs. He also said that India’s growth story could derail due to lack of manufacturing sector jobs.

 

Source:- Financial Express

India has emerged as the top recipient of foreign direct investment (FDI) from within the Commonwealth and is the second-most lucrative source of investment within the 53-member organisation after the UK, according to a new trade review.

 

The trade review released in the lead up to the Commonwealth Heads of Government Meeting (CHOGM) next week.

 

'Commonwealth Trade Review 2018: Strengthening the Commonwealth Advantage', compiled by the Commonwealth Secretariat, also found that India has moved into the top five providers of intra-Commonwealth services trade, surpassing Canada, and alongside Australia, Singapore and the UK.

 

"Between 2005 and 2016, India remained the top recipient of greenfield FDI from the Commonwealth, more than doubling the amount it received over 10 years...India is the leading country for attracting greenfield FDI, not only from the Commonwealth but also from the world. In 2015, it overtook China for the first time as the biggest destination for greenfield FDI," the report notes.

 

Green-field investments occur when a parent company or government begins a new venture by constructing new facilities in a country outside of where the firm is headquartered.

 

The trade review found that intra-Commonwealth exports of goods and services stood at USD 560 billion in 2016 and this trade, as a proportion of global trade, is rising and is now 20 per cent of Commonwealth countries' total trade with the world.

 

"This underlines the growing significance of Commonwealth markets for many member countries. With world trade growth forecast to rebound in 2017-18, the Commonwealth appears on track to achieve USD 700 billion in intra-Commonwealth trade in goods and services by 2020, while proactive policy measures can trigger even greater gains," the report notes.

 

Intra-Commonwealth trade is projected to reach USD 700 billion by 2020, driven in large part by India's economic growth.

 

According to the findings, the "dramatic rise" in the increased prominence of intra-Commonwealth investment is driven by India, a country which also presents enormous potential across economic sectors from the application of digital technologies.

 

The 2015 'Commonwealth Trade Review' had found that Commonwealth countries, on average, tend to trade around 20 per cent more and generate 10 per cent more investment with each other than with non-member countries.

 

The 2018 review was undertaken to explore how Commonwealth members, individually and collectively, can strengthen this Commonwealth advantage in two ways: by harnessing new technologies, especially digitisation, to trigger new trade and investment opportunities; and by strengthening certain aspects of their domestic trade governance regime to reduce trade costs further.

 

"Trade and investment flows among our members are strong and continue to grow. Despite the unexpected contraction in world trade since our 2015 Trade Review, intra-Commonwealth trade in goods and services, and productive greenfield' investment, is growing fast and projected to exceed USD 1 trillion by 2020," said Baroness Patricia Scotland, Commonwealth Secretary-General.

 

The review will feed into the Commonwealth Business Forum deliberations among business leaders and policy-makers from across the member countries, scheduled in London between April 16-18.

 

Among the Indian business leaders expected to participate include Rakesh Bharti Mittal, President Designate, Confederation of Indian Industry (CII) and Vice-Chairman, Bharti Enterprises, for a panel on global economic growth; Ajay Piramal, Chairman, Piramal Group, for a panel on business trust; and Ravi Parthasarathy, Chairman, Infrastructure Leasing & Financial Services Limited, for a panel on Smart Cities.

 

The business forum, alongside parallel Youth, Women's and People's forums, will mark a precursor to the Commonwealth Heads of Government Meeting (CHOGM) in London and Windsor on April 19-20, to be attended by Prime Minister Narendra Modi.

 

Source:-News 18

NEW DELHI: India is expected to establish itself as the third largest travel and tourism economy by 2028 in terms of direct and total GDP, a 2018 economic impact report by World Travel & Tourism Council (WTTC) has said.

 

The WTTC report, released globally on Thursday, also said India will add nearly 10 million jobs in the tourism sector by 2028 and that the total number of jobs dependent directly or indirectly on the travel and tourism industry will increase from 42.9 million in 2018 to 52.3 million in 2028. Calling India the seventh largest travel and tourism economy in the world, Gloria Guevara, president and chief executive of WTTC, said India should be working on improving tourist infrastructure.

 

In an exclusive email interview to TOI, Guevara said, “The biggest single area of improvement for travel and tourism in India is infrastructure. Tourism is a competitive business in a global context and India’s near neighbours to the east and west have built world-class tourism infrastructure in the form of airports, sea ports, high-speed rail and roads. WTTC has long welcomed the opportunity of the Regional Connectivity Scheme to open up 350 unserved and underserved airports and airstrips.”

 

Guevara welcomed the government’s ambition to make the country a global cruise destination with the creation of the new cruise port in Mumbai. “There are some extremely proactive steps that have been introduced by the government to increase international visitors. We recognise the introduction of e-visa for 163 countries and the launch of Incredible India 2.0 campaign with major improvement in the marketing and PR strategy,” she said.

 

The WTTC, however, red flagged the sector’s concerns over the three-level implementation of GST in the hospitality sector and said the government must bring in tax reforms to make India’s tourism sector more competitive with other countries in the region.

 

Source:- The Times of India