US plans $1 trillion investment in India

Discussion in 'Economy & Infrastructure' started by LETHALFORCE, Dec 24, 2011.

  1. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    US plans $1 trillion investment in India - southindia - Kochi - ibnlive

    KOCHI: The United States will invest one trillion dollars for infrastructure development in India, said Nirupama Rao, India’s ambassador to the US.
    She was speaking at an interactive session organised by the Kerala Chamber of Commerce and Industry (KCCI) and its Ladies’ Forum at the Chamber Hall on Thursday.
    In order to discuss the possibilities of investment, a trade delegation led by the United States Commerce Minister will visit India By March, 2012. Discussions towards an ever green revolution similar to the earlier Green Revolution using US expertise to increase agriculture production and rural income will take place.
    Space technology for monsoon prediction and for linkage between farm and market will also be considered. Nirupama said that around 2.8 million Malayalis are part of the Indian community in the US.
    In terms of trade, business contracts between the two countries have grown exponentially over the last few years. Also, the imports and exports are on the rise. In the last five years, the US exports to India have increased three times and Indian exports to the US have doubled.
    The FDI by the US in India has increased seven times, Nirupama added.
    Apart from political and strategic cooperation, energy, education, agriculture, science and technology, healthcare, space technology and skill development are the other areas which will be given prominence in the bilateral relations between the two nations. Trade and economic relations will be the central driving force in the multifaceted partnership.
     
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  3. sesha_maruthi27

    sesha_maruthi27 Senior Member Senior Member

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    I think this is a CHRISTMAS GIFT for INDIA and the U.S.A.
     
  4. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    This will be mostly cash rich American corporations many people think it is US government but it seems to be a misnomer.
     
  5. Vyom

    Vyom Seeker Elite Member

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    How do debt ridden nations manage to invest so heavily for other countries needs? Or is it not simply a covert profit-making exercise in most cases.
     
  6. thakur_ritesh

    thakur_ritesh Administrator Administrator

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    i have really not fallen for this figure.

    india's combined fdi since the start is less than 200b usd till date.

    Nirupama Rao neither mentions the time line, nor the form of this investment.

    there remain a lot of unanswered questions, let us see when and as it happens, so far we are completely lost out on DMIC which was supposed to be between 50-100b usd, and here we are talking about a trillion dollars.
     
  7. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    The government is debt ridden but many US corporations are loaded with cash as I said earlier. Cisco,intel,microsoft,Apple,JP morgan etc.. These corporations together have more than 1 trillion in cash. (jp morgan alone has 900 bilion in cash)
     
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  8. trackwhack

    trackwhack Tihar Jail Banned

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    By printing more fake dollars. The US needs to convert as much greenback to real assets before the dollar loses its reserve currency status and collapses. If by then the major American corporations have real assets, especially in foreign countries, it acts as a hedge against those respective countries.

    Economics can be played with if you are in a position of power. Why do you think the Chinese arent allowing the renbimbi to appreciate? If they do, then it wont be long before the exchange rate becomes 1 dollar = 1 renbimbi. Inflation in China will reach triple digits. Their foreign reserves will become almost worthless and they will still be sitting on trillions of dollars of debt.
     
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  9. trackwhack

    trackwhack Tihar Jail Banned

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    But none of these companies are going to invest in Indian Infrastructure. Yes they will invest elsewhere in India, maybe putting up Research or manufacturing centers, but not infra.
     
  10. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    Canada eyes India for investment in trillion-dollar infrastructure plan | Reuters

    Canada eyes India for investment in trillion-dollar infrastructure plan

    REUTERS - India is on Canada’s radar screen as it wishes to be a part of a trillion-dollar infrastructure plan to consolidate trade and investment ties with Asia’s third-largest economy, Canadian international trade minister Ed Fast said on Friday.

    India wants infrastructure investment of $1 trillion over the five years starting in April 2012 as it aims to bolster economic growth and raise living standards. Indian infrastructure ranks 89th out of 133 countries, a World Economic Forum report found.

    “India has a very ambitious infrastructure plan going forward worth $1 trillion and of course, Canada wants to be a part of it because we are a world leader in infrastructure development,” Ed Fast told Reuters in an interview.

    The Canadian minister is on a week-long visit to India to meet with Indian government ministers and business leaders to attract Indian investment to Canada, and press on the commercial interests of businesses in the rapidly growing market of 1.2 billion.

    Fast, refusing to comment on the prospect of the recent G20 Summit, focused on trade as one of the key solutions for the global economy to emerge from its present challenges.

    “What stands as a real danger is that some of these (G20) economies consider protectionist measures as a way of responding (to economic challenges),” he said, discouraging leading global economies against protectionist measures.

    Protectionist measures such as charges at borders, local-content rules, demands that EU firms share their technological expertise and financial support to particular sectors, has had "an overall worrisome trade-distortive impact on world trade and investment," a report released ahead of the G20 Summit in Cannes said.

    After meeting his Indian counterpart Anand Sharma and Finance Minister Pranab Mukherjee during his two-day stay in New Delhi, Ed Fast said that both nations are making “excellent progress” on the free-trade deal negotiations.

    Last year, the bilateral trade between Canada and India totalled $4.2 billion. With the two countries set to sign a Comprehensive Economic Partnership Agreement (CEPA) by 2013, they aim to triple the amount by 2015.

    Currently, Canadian goods are levied 16 percent tariff in India while Indian goods face 9 percent tariff in Canada.
     
  11. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    Capital for infra development should come from disinvestment of PSUs & Indian pockets who are ready to invest in market.
     
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  12. LETHALFORCE

    LETHALFORCE Moderator Moderator

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  13. thakur_ritesh

    thakur_ritesh Administrator Administrator

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    come on mate, where will the money to fix up fiscal deficit come from and cover up all that social expenditure :lol:
     
  14. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    This 1 trillion $ is no Govt-Govt investment agreement. Investments are coming to India, no doubt about. We need 550+ billion USDs on Infra sector alone. However timeline would be a decade or more. '

    They've estimated investment figure, now tell me whats the ROI estimation?? :)
     
  15. Apollyon

    Apollyon Führer Senior Member

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    KCCI MISQUOTED NIRUPAMA RAO ..she actually said India needs an investment of $1 Trillion in next 5 years
     
    Last edited: Dec 24, 2011
  16. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    We are getting used to living on credit. By-product of closeness to US I must say :p

    We won't fix the deficit anytime soon. Pranab is bluffing.
     
  17. thakur_ritesh

    thakur_ritesh Administrator Administrator

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    oh, thanks a ton for clearing that out, yeah thats what the rhetoric is.
     
  18. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    This was agreed earlier amount may be what India is looking for over 5 years??

    US to invest in Indian infrastructure, defence and education sectors - Economic Times

    US to invest in Indian infrastructure, defence and education sectors

    http://articles.economictimes.india...able-global-financial-system-financial-sector

    India offers US $600 bn investment opportunity in infrastructure
     
  19. trackwhack

    trackwhack Tihar Jail Banned

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    You are spot on Lethal. This investment will be driven by banks and their investment vehicles. This is how JP morgan has 900 billion in cash

    Before TARP, The Fed Handed Out $7.77 Trillion In Secret Loans Without Congress Knowing | Critical Crisis

    I am unable to find the Bloomberg report but this one points to the same report. Basically the Fed gave the big banks about 8 trillion dollars for free since 2006.

    Do you remember how all American banks were close to collapse just 4 years back. How do you think they recapitalized. Answer : From the Fed printing press.
     
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  20. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    We should thank the Chinese for keeping the printing presses rolling.
     
  21. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    • I heard Govt is moving away from BOT or PPP model for infra development. Meaning Pvt companies will bring their own money & will keep almost all of the revenue till the investment is recovered on fixed/variable interest rate.
    • Why should US companies should invest in Indian Defense R&D Sector ? I do not see any viable reason for that.
    • Education Sector will be opened for better soon. So investments are coming from that stream.
    • Tourism will also see capital coming from US. We did open it long ago but no significant foreign players yet.
    • Nuclear energy & Power sector will see huge inflows of capital, but nothing before you resolve Liability issues.
     

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