Singapore Becomes Second Largest Investor In India

Discussion in 'Economy & Infrastructure' started by Rage, Nov 8, 2009.

  1. Rage

    Rage DFI TEAM Stars and Ambassadors

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    Singapore Becomes Second Largest Investor In India


    NEW DELHI , Nov 6 (Bernama) -- Singapore has emerged the second largest investor in the Indian economy, contributing about nine per cent of the total foreign direct investment (FDI) into the country.

    India received a total of US$35.16 billion (RM123 billion) from April 2008 through March 2009, with Singapore investing about US$3.4 billion (RM11.9 billion).

    The Department of Industrial Policy and Promotion, under the Ministry of Commerce and Industry, has listed the island state behind Mauritius, while the United States was trailing after Singapore.

    Most of Singapore's investments were in the telecommunication, services, electrical equipment, power generation, oil refinery and transportation sectors.

    Bulk of India's FDI flows was via Mauritius, a tax haven due to its less than three per cent corporate tax, which attracted many foreign companies to channel their investments through the tiny Indian Ocean state.

    Funds from Mauritius were estimated at about US$11 billion (RM38.5 billion), which was about 44 per cent of India's total FDI.

    American investments amounted to US$1.8 billion (RM6.3 billion) for the same period.

    -- BERNAMA


    BERNAMA - Singapore Becomes Second Largest Investor In India
     
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  3. rockdog

    rockdog Guest

    I remembered that JP former PM Shinzō Abe had a very ambitious plan to mass invest in India in2006, where is going now?
     
  4. Rage

    Rage DFI TEAM Stars and Ambassadors

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    Here're your answers.

    :: M2 Release ::

    Japan's Renewed Interest in India: An 'Upward Trajectory' - India [email protected]


    This provides an evaluation for the 2001-06 period:

    Growing Japanese Investment into India


    For a more recent analysis, refer to the following:

    Japanese Investment in India - Report (download at IndiaAnalysis.com)

    India cuts red tape to clear way for Japanese investment | The Japan Times Online

    Japanese investment in Indian equity mkt at $1 bn

    Japan starts growing roots in Gujarat - Ahmedabad - City - The Times of India

    However, it is also true that compared to Japan's investments in China, Japanese investments in India remain minuscule. They are not one of our largest trading partners or foreign direct investors. Countries like the U.K., U.S.A, U.A.E. and interestingly Mauritius (which is a large hub for Indian investors seeking to reroute investments to avoid domestic taxation laws) are.

    It is also true that this is largely due to our own follies: bureaucratic red tape, corruption, heavy import duties on commodities, etc. are some of the reasons, which are now beginning to be significantly remedied. As the Ministry of Finance clearly acknowledges: 'India is rightfully quoted to be an incomparable country and is both frustrating and challenging at the same time. Foreign investors should be prepared to take India as it is with all of its difficulties, contradictions and challenges'. If notable Indian economists like Maitreek Ghatak, Kaushik Basu and D. Sinha are to believed (which they are), the crucial period of upward trajectory in Japanese investments into India will be in the 2011-2015 period.
     
  5. icecoolben

    icecoolben Regular Member

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    The singaporean prime minister even quoted india and china as two wings of an asian airplane. So investments from singapore will be on a balanced basis. Singapore's industry do need a low cost manufacturing hub, apart from china. India fulfils this criteria. Land reforms are the major stumbling block for indian manufacturing empowerment.
     
  6. thakur_ritesh

    thakur_ritesh Administrator Administrator

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    India gives tax sops to investments headed from Singapore an agreement that came into force last year under the comprehensive economic cooperation agreement under which there wont be any double taxation on foreign investments something similar to what we had with Mauritius which is under review, so it is great to see the efforts put in have started yielding results. It helps since Singapore is the hub of HQ for various TNCs and Singapore already has similar deals with quite a few other countries so sourcing gets a lot easier.

    I think we would need one similar deal with the mid east, there is a lot of oil money lying unattended and the arabs are looking for returns on that money, so if we can get that money, would be a great help. I doubt they would be too keen to make investments via Singapore or Mauritius.
     

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