With end of uncertainty, FDI flows may perk up

Source: The Hindu Business Line, May 23, 2019

With the NDA set to form the government once again with full majority, Foreign Direct Investment (FDI) is likely to receive a boost.

While the FDI flow increased sharply between 2014-15 and 2016-17, over April-December 2018, it dropped 3 per cent to $46.6 billion compared with the same period last year. This, experts say, was due to the political uncertainty in the country. Read the rest of this entry »

Maharashtra is favourite destination for FDIs by NRIs

Source: The Hindu Business Line, May 02, 2019

Pune: Maharashtra has emerged as the favourite destination for Foreign Direct Investments (FDIs) by NRIs in the last four financial years (2014-15- 2017-18) attracting ₹1,454 crore, which is 30 per cent of the total NRI investments of ₹4,820 crore in the country. Kerala and Gujarat received ₹902 crore and ₹515 crore respectively during the same period.

The Ministry of Commerce and Industry data presented to the Lok Sabha in February shows that the three States together received 60 per cent of investments in this category. Read the rest of this entry »

Renewable energy sector attracts FDI worth $7.48 billion since April 2000

Source: Business Standard, Apr 10, 2019

Bhubaneshwar: According to a report by the India Brand Equity Foundation (IBEF), the country’s renewable energy sector attracted foreign direct investments (FDI) worth $7.48 billion between April 2000 and December 2018.

The IBEF report pegs new investments in clean energy space worth $11.1 billion in calendar 2018, sourcing data from the Ministry of New & Renewable Energy (MNRE) and leading consultancy KPMG.

The green energy sector boasted 28 deals and grabbed a 27 per cent share of the merger & acquisition (M&A) deals in the power sector valued at $4.4 billion in 2017.

Renew Power Ventures, Diligent Power Pvt Ltd, Welspun Renewables Energy Pvt Ltd, Areva Solar Power Ltd and Ostro Energy Pvt Ltd figure among the major beneficiaries of overseas financing. Asian Development Bank (ADB), Japan-based ORIX Corporation, ENEL Green Power Development BV (Netherlands), Areva Solar Inc (USA), AIRRO Singapore Pte Ltd and ENERK International Holdings (Seychelles) have also sunk in funds on energy renewable projects. Read the rest of this entry »

Delhi-NCR accounts for 25 per cent of FDI in Apr-Dec 2018-19

Source: The Economic Times, Mar 04, 2019

Delhi, parts of Uttar Pradesh and Haryana account for about one-fourth of foreign direct investment (FDI) received by the country during April-December 2018-19, according to the government data.

On the other hand Maharashtra, Dadra and Nagar Haveli and Daman and Diu accounted for about 24 per cent of the total FDI during the period.

The data is based on information provided by companies to regional offices of the Reserve bank of India and does not necessarily means that investments have been made in that particular area. Read the rest of this entry »

New FDI rules: Thousands of products disappear from e-commerce websites

Source: Business Standard, Mar 02, 2019

Amazon and Walmart’s grand plans for India were thrown into chaos on Friday after the country implemented new e-commerce regulations, which could cut their growth in the market by as much as half this year.

Prime Minister Narendra Modi’s government tightened rules for the retail giants after strident complaints from small shops and domestic sellers. Amazon and Walmart’s Flipkart are now banned from cutting exclusive arrangements with sellers, offering deep discounts or holding any business interest in online merchants on their websites. Thousands of products have already vanished from the virtual shelves of the duo, which together account for 70 percent of India’s online retail market. Arvind Singhal of consultancy Technopak Advisors Pvt, estimates their revenue growth could fall to 15 percent in coming months from 25 to 30 percent previously.

Amazon’s shares slid as analysts pushed the company for answers on India, a market the e-commerce titan regards as the best frontier for international expansion. Jeff Bezos has pledged to spend $5.5 billion there in pursuit of growth, but executives had few encouraging words, saying on Thursday the effects of new e-commerce regulations in the country are still uncertain. Its newfound headaches in India come as a slowing global economy threatens to curtail the consumer spending retailers rely on. Amazon shares fell 3.7 per cent to $1654.60 at 9:39 a.m. in New York, while Walmart was down 1.4 percent to $94.47. Read the rest of this entry »

Foreign direct investment inflows fall amid pre-election uncertainty

Source: The Economic Times, Feb 26, 2019

NEW DELHI: The flow of foreign direct investment into India is dropping and may suffer its first full-year decline since Prime Minister Narendra Modi came to power in 2014.

The reversal from strong numbers in Modi’s initial years in charge may indicate that investors are being deterred by the government’s recent protectionist policies and uncertainty about this year’s general election result.

Inbound foreign direct investment (FDI) dropped 7 percent to $33.5 billion in the nine months between April and December 2018, compared with $36 billion in the year-earlier period, according to figures released over the weekend. Read the rest of this entry »

E-commerce policy to have new FDI norms

Source: ETRetail.com, Feb 04, 2019

The Department for Promotion of Industry and Internal Trade (DPIIT) will hold a meeting with stakeholders including those companies and groups that were opposed to the tighter FDI guidelines, which became effective February 1, before finalising the policy. The government had turned down demands for an extension of the deadline.

“We will have a stakeholder meeting soon where FDI issues would be discussed. However, we are not sure if a separate regulator will be set up for ecommerce,” said a senior official. Read the rest of this entry »