India Investment Destination Dr Ajay Kumar Singh

8/6/2019 India Investment Destination Dr Ajay Kumar Singh

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India

Investment DestinationJan. 3-5, 2007

Dr. Ajay Kr. SinghDr. Ajay Kr. Singh

Secretary GeneralSecretary General

Eighth International ConferenceEighth International Conference

www.internationalconference.orgwww.internationalconference.org

www.drajayksingh.comwww.drajayksingh.com


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Inaugural Session of 8 IC WishWish youyou allall aa veryvery happy,happy, prosperous,prosperous, peacefulpeaceful

newnew yearyear..

II welcomewelcome eacheach oneone ofof youyou whowho hashas contributedcontributedforfor thethe successsuccess ofof EighthEighth InternationalInternational ConferenceConference

byby beingbeing presentpresent herehere..

DistinguishedDistinguished PersonalitiesPersonalities onon thethe daisdais andand offoff thethe

dais,dais, aa veryvery goodgood morningmorning toto allall ofof youyou..


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IntroductionIndiaIndia isis oneone ofof thethe fastestfastest growinggrowing

economieseconomies ofof thethe worldworld andand thethe entireentire worldworld

isis watchingwatching ourour growthgrowth andand developmentdevelopmentprocessprocess.. DespiteDespite thethe factfact thatthat IndiaIndia isis

growinggrowing atat aa veryvery fastfast pace,pace, ChinaChina isis stillstill

growinggrowing fasterfaster thanthan IndiaIndia.. LetLet usus seesee somesomeStatisticsStatistics fromfrom thethe IndustryIndustry ChamberChamber

ASSOCHAMASSOCHAM..


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62,000 investment proposals

await nodThereThere isis aa bureaucraticbureaucratic spannerspanner inin IndiasIndiaseffortsefforts toto emergeemerge thethe mostmost preferredpreferred

investmentinvestment destinationdestination inin thethe easterneastern worldworld..AccordingAccording toto industryindustry bodybody ASSOCHAM,ASSOCHAM,nearlynearly 6262,,000000 proposals proposals involvinginvolving aacumulativecumulative investmentinvestment flowflow ofof aroundaround

INRINR 11,,550550,,000000 crorecrore areare pendingpendingapprovalsapprovals fromfrom variousvarious statesstates andand centralcentralgovernmentgovernment forfor thethe pastpast nearlynearly 1818 yearsyears..


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await nodAccordingAccording toto ASSOCHAMASSOCHAM datadata ononinvestmentinvestment proposals, proposals, ifif thesethese 6262,,000000

proposals proposals areare fructified,fructified, theythey cancan generategenerateoverover 1818..55 millionmillion employmentemploymentopportunitiesopportunities.. itit isis observedobserved thatthat eveneven atat4040%% fructificationfructification ofof thesethese investmentinvestment

proposals,proposals, investmentinvestment ofof INRINR644644,,000000 crorecrorecancan comecome through,through, generatinggenerating employmentemploymentforfor aboutabout 77..44 millionmillion peoplepeople..


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await nodTheThe ProposalsProposals havehave anan averageaverage investmentinvestment

worthworth ofof INRINR 2525 crorecrore eacheach andand havehave thethe

potentialpotential toto generategenerate anan employmentemployment forfor atatleastleast 300300 people people per per proposalproposal.. WhileWhile aa

chunkchunk ofof thesethese investmentinvestment proposalsproposals havehave

beenbeen submittedsubmitted by by thethe domesticdomestic industry,industry,overseasoverseas applicationsapplications accountaccount forfor nearlynearly 1717

percentpercent ofof thethe pendingpending proposalsproposals..


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await nodTheThe chamberchamber calledcalled forfor stepssteps toto improveimprove thethe

investmentinvestment climateclimate inin IndiaIndia asas itit takestakes 8989

daysdays toto startstart aa business,business, 425425 daysdays toto enforceenforceaa contractcontract andand 77 daysdays toto clearclear customscustoms..

AlmostAlmost 1515%% managementmanagement timetime isis wastedwasted toto

dealdeal withwith officials,officials, whilewhile losseslosses totoelectricityelectricity outagesoutages amountamount toto aboutabout 1212%% ofof

thethe salessales..


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await nodInfrastructureInfrastructure needsneeds substantialsubstantial improvementimprovement andand

thethe governmentgovernment shouldshould recognizerecognize thethe rolerole ofof thethe

industryindustry toto achieveachieve andand putput IndiaIndia onon aa fasterfaster growthgrowthtrajectory,trajectory, saidsaid ASSOCHAMASSOCHAM PresidentPresident ShriShri AnilAnil

AgarwalAgarwal..

DespiteDespite thesethese hurdles,hurdles, IndiaIndia isis growinggrowing atat moremore thanthan

88 percent,percent, thatthat meansmeans everythingeverything isis notnot thatthat badbad.. LetLetusus looklook atat somesome moremore statisticsstatistics forfor IndiaIndia asas anan

InvestmentInvestment destinationdestination..


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India most attractive for Foreign

InvestorsPrivatePrivate externalexternal inflowsinflows toto IndiaIndia hashas beenbeenthethe highesthighest inin thethe lastlast threethree toto fourfour years,years,

comparedcompared toto otherother emergingemerging countriescountries.. TheThebooming booming capitalcapital marketsmarkets havehave greatlygreatlyenhancedenhanced foreignforeign investorsinvestors interestinterest ininFCCBs,FCCBs, ADRs,ADRs, andand GDRsGDRs issuedissued byby IndianIndian

CompaniesCompanies.. IndiaIndia withwith inflowsinflows ofof $$1919..33billion billion inin 20052005 waswas thirdthird afterafter ChinaChina andandSouthSouth KoreaKorea..


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India most attractive for Foreign

InvestorsTheThe averageaverage inflowsinflows forfor IndiaIndia throughthroughbonds,bonds, equitiesequities andand loansloans duringduring 20032003--0505

hashas risenrisen byby 158158..44 percentpercent asas againstagainst 4040..33percentpercent forfor otherother emergingemerging marketsmarkets.. ThisThis isislargelylargely drivendriven byby IndianIndian companiescompanies raisingraisingfundsfunds inin globalglobal marketsmarkets.. ThisThis flowflow hashas

increasedincreased afterafter IndianIndian banksbanks havehave permittedpermittedtoto raiseraise fundsfunds throughthrough issuanceissuance ofofinnovativeinnovative debtdebt capitalcapital inin foreignforeign currencycurrency..


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Dollar FlowsPrivate external flows to Asian countries through new bonds,

equities and loans. (in $ million) (TOI Nov. 15, 2006)

20012001 20022002 20032003 20042004 20052005 Growth %Growth %

AsiaAsia 6748367483 6720167201 8796887968 123719123719 150388150388 14.314.3

ChinaChina 55675567 88928892 1359013590 2436824368 3579735797 32.632.6

S KoreaS Korea 1702117021 1469414694 1723717237 2442424424 3446334463 21.221.2

IndiaIndia 23822382 13811381 1814918149 1391813918 1931619316 88.188.1

HongHong

KongKong

1830718307 1260212602 40944094 1355513555 1530715307 --1.91.9

TaiwanTaiwan 37943794 1095910959 90569056 1530915309 1170111701 34.434.4


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Dollar Flows to Asia

0

20000

40000

60000

80000

100000

120000

140000

160000

Asia

2001

2002

2003

20042005

Average annual source:EIU (in $ m)


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Dollar Flows

0

5000

10000

15000

20000

2500030000

35000

40000

Chin Hong

Kong

Indi S Kore T iw n

2001

2002

2003

2004

2005

Average annual source:EIU(in $ m)


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Dollar Flows Growth Rate

-10

0

10

20

30

40

50

60

70

80

90

Chin Hong

Kong

Indi S Kore T iw n

Growth %

Average annual source:EIU (in $ m)


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FDI inflows to India double in

Apr-Sept 2006 to $ 4.4 billionTheThe IndiaIndia storystory keepskeeps gettinggetting biggerbigger..

ForeignForeign DirectDirect InvestmentInvestment (FDI)(FDI) inflowsinflows

duringduring thethe firstfirst halfhalf ofof thethe financialfinancial yearyearhavehave doubleddoubled toto $$44..3838 billionbillion inin 20062006 asas

againstagainst $$22..22 billionbillion duringduring AprilApril--SeptemberSeptember

20052005 asas per per GovernmentGovernment ofof IndiaIndia reportreportreleasedreleased onon NovemberNovember 2020,, 20062006..


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FDI Inflow

0

1

2

3

4

5

6

2003-04 2004-05 2005-06

Indi

In $ b

2.19

3.21

5.52


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April-September

0

0.51

1.5

2

2.5

33.5

4

4.5

2005-06 2006-07

Indi

In $ b

2.20

4.38


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FDI Inflows in September 2006

DuringDuring SeptemberSeptember 20062006,, FDIFDI inflowsinflows roserose 225225percent percent toto $$916916 million,million, comparedcompared toto $$282282

millionmillion inin SeptemberSeptember 20052005.. TheThe buoyancybuoyancy inin FDIFDIflowsflows duringduring thethe firstfirst sixsix monthsmonths isis likelylikely totocontinuecontinue inin thethe secondsecond halfhalf andand itit isis likelylikely toto closeclosethethe yearyear withwith $$99--1010 billion,billion, asas perper thethe statementstatement ofofCommerceCommerce andand IndustryIndustry MinisterMinister MrMr.. KamalKamal NathNath..

AddAdd toto that,that, anotheranother $$33 billion billion inin reinvestedreinvestedearningsearnings andand thethe figurefigure couldcould gogo uptoupto $$1212--1313billionbillion..


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September

0

100

200

300

400

500

600

700800

900

1000

2005-06 2006-07

Indi

In $ m

282

916


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Country wise FDI Inflow to IndiaSingapore has moved up from the seventhSingapore has moved up from the seventh

position to the second position in terms ofposition to the second position in terms of

major sources of FDI to India and has in themajor sources of FDI to India and has in theprocess taken over US and UK. Mauritiusprocess taken over US and UK. Mauritius

with $2.54 billion FDI inflows during Aprilwith $2.54 billion FDI inflows during April

September 2006 remained at the top of theSeptember 2006 remained at the top of thelist followed by Singapore $481.7 million.list followed by Singapore $481.7 million.


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Top Sources of FDI Inflow to

India in $ millionCountryCountry 20052005 20062006 Growth %Growth %

MauritiusMauritius 891891 25452545 185185

SingaporeSingapore 118118 481481 305305

U SU S 323323 406406 2626


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Top Sources of FDI Inflow to

India in $ million

0

500

1000

1500

2000

2500

3000

Mauritius Singapore US

2005

2006

Growth %


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Sector wise FDI Inflow to IndiaSinceSince 19911991,, whenwhen foreignforeign investmentinvestment normsnorms wereweresimplified,simplified, itit isis electricalelectrical equipmentequipment whichwhich

includesincludes computercomputer hardwarehardware andand servicesservices thatthathashas been been thethe toptop drawerdrawer followedfollowed by by services,services,telecom,telecom, transporttransport andand energyenergy.. Although,Although, inin AprilApril--SeptemberSeptember 20062006 ServicesServices (($$11..5151 billion)billion) attractedattractedmoremore FDIFDI thanthan electricalelectrical equipmentequipment (($$777777..99

million),million), whilewhile telecomtelecom remainedremained atat thirdthird positionpositionwithwith $$405405..22 millionmillion.. TransportTransport (($$258258..77 million)million)andand energyenergy (($$138138..33 million)million) occupiedoccupied thethe fourthfourthandand fifthfifth placesplaces..


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Preferred Destinations in IndiaSinceSince 19911991,, northnorth IndiaIndia hashas accountedaccounted forfor

nearlynearly aa quarterquarter ofof thethe inflows,inflows, followedfollowed byby

Maharastra,Maharastra, DadarDadar && Nagar Nagar HaveliHaveli andandDamanDaman && Diu,Diu, whichwhich corneredcornered aroundaround 2222

percent percent ofof thethe FDIFDI flowsflows.. WhileWhile thethe

southernsouthern partpart ofof IndiaIndia sawsaw aa steepsteep growthgrowth inininflows,inflows, DelhiDelhi andand MumbaiMumbai occupiedoccupied thethe

toptop twotwo slotsslots..


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India v/s IndiaHence we can say that there are two Indias in thisHence we can say that there are two Indias in this

country looking to progress made by some regionscountry looking to progress made by some regions

and states despite all odds still not removed inand states despite all odds still not removed interms delays and red tape.terms delays and red tape.

One India is straining at the leash, eager to springOne India is straining at the leash, eager to spring

forth and live up to all the adjectives that theforth and live up to all the adjectives that the

world has been showering recently upon India.world has been showering recently upon India.The other India is the leash.The other India is the leash.


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India v/s IndiaOne India says, give me a chance and I willOne India says, give me a chance and I will

prove myself. The other India says, proveprove myself. The other India says, prove

yourself first and may be then you willyourself first and may be then you willhave a chance.have a chance.

One India lives in the optimism of ourOne India lives in the optimism of our

hearts. The other India lurks in thehearts. The other India lurks in theskepticism of our minds.skepticism of our minds.


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India v/s IndiaOneOne IndiaIndia wantswants.. TheThe otherother IndiaIndia hopeshopes..

OneOne IndiaIndia leadsleads.. TheThe otherother IndiaIndia followsfollows..

ButBut conversionsconversions areare onon thethe riserise.. WithWith eacheachpassingpassing dayday moremore andand moremore people people fromfromotherother IndiaIndia havehave beenbeen comingcoming overover toto thisthissideside.. AndAnd quietly,quietly, whilewhile thethe worldworld isis notnotlooking,looking, aa pulsating,pulsating, dynamic,dynamic, newnew IndiaIndia isisemergingemerging..


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India v/s IndiaAnAn IndiaIndia whosewhose faithfaith inin successsuccess isis farfar greatergreater thanthanitsits fearfear ofof failurefailure..

AnAn IndiaIndia thatthat nono longerlonger boycotts boycotts foreignforeign mademadegoodsgoods butbut buybuy outout thethe companiescompanies thatthat makemake themtheminsteadinstead..

History,History, theythey say,say, isis aa badbad motoristmotorist.. ItIt rarelyrarely everever

signalssignals itit intentionsintentions whenwhen itit isis takingtaking aa turnturn..ThisThis isis thatthat rarelyrarely--everever momentmoment.. HistoryHistory isis turningturningaa pagepage..


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India v/s IndiaForFor moremore thanthan halfhalf aa century,century, IndiaIndia hashas

sprung,sprung, stumbled,stumbled, run,run, fallen,fallen, rolledrolled over,over,

gotgot up,up, dusteddusted herselfherself andand cantered,cantered,sometimessometimes lurchedlurched onon.. ButBut today,today, thethe rideride

hashas broughtbrought usus toto thethe edgeedge ofof timestimes greatgreat

precipiceprecipice..


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India v/s IndiaAndAnd oneone IndiaIndia aa tinytiny littlelittle voicevoice atat thethe

backback ofof thethe headhead isis lookinglooking downdown atat thethe

bottombottom ofof thethe ravineravine andand hesitatinghesitating..

TheThe otherother IndiaIndia isis lookinglooking upup atat thethe skysky andand

saying,saying, itsits timetime toto flyfly..


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8 ICTheThe EightEight InternationalInternational ConferenceConference ononIndiaIndia:: InvestmentInvestment DestinationDestination hashas beenbeen

organizedorganized toto continuecontinue thisthis flightflight ofof IndiaIndiaandand toto dodo furtherfurther researchresearch inin thethe areaarea soso thatthatthisthis flightflight goesgoes withoutwithout anyany hindrancehindrance.. TheThethemetheme ofof thethe EightEight InternationalInternational SeminarSeminar isis

RealReal EstateEstate DevelopmentDevelopment:: UrbanUrban v/sv/sRuralRural.. whichwhich isis alsoalso oneone ofof thethe fastestfastestgrowinggrowing sectorsector..


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Technical Sessions1.1.Economic Opportunities and Challenges:Economic Opportunities and Challenges:

Global PerspectiveGlobal Perspective

2. Single Window Clearance: Dream v/s2. Single Window Clearance: Dream v/sRealityReality

3. FDI: India vis3. FDI: India vis----vis Chinavis China

4. Infrastructure Development in India

4. Infrastructure Development in India

5. Research Paper Presentations on5. Research Paper Presentations onContemporary Issues.Contemporary Issues.


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8 ICII sincerelysincerely wishwish andand hopehope thatthat thethe

deliberationsdeliberations inin thethe conferenceconference andand seminarseminar

wouldwould gogo aa longlong wayway inin providingproviding researchresearchinputinput toto thethe policypolicy makersmakers whichwhich willwill addadd

fuelfuel toto thethe continuingcontinuing flightflight ofof thethe growthgrowth

andand developmentdevelopment ofof thethe IndianIndian EconomyEconomyandand wouldwould makemake itit sustainablesustainable..


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GreetingsOnce again I wish you all a very happy,Once again I wish you all a very happy,

prosperous, and peaceful new year, and alsoprosperous, and peaceful new year, and also

welcome you all to the 8welcome you all to the 8thth InternationalInternationalConference at New Delhi.Conference at New Delhi.


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Thank You

byDr. Ajay Kr. Singh

Secretary GeneralEighth International Conference

www.internationalconference.org

www.drajayksingh.com

India Investment Destination Dr Ajay Kumar Singh

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