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World's Big Financial Players Flocking to India(Market Liberalization Accelerates)
Hankuk Kyong-je Shinmun (S. Korean Business Daily) ^ | 07/05/05

Posted on 07/06/2005 7:22:00 AM PDT by TigerLikesRooster

/begin my translation

World's Big Financial Players Flocking to India

-- Market Liberalization Accelerates --

On 14th of last March, American investment firm Warburg Pincus put on sale  its 6% holding of an Indian telecom company, Bharti, at Indian stock market.  Buy orders had instantly poured in and were all sold out in 26 minutes. The sale price was $560 million, the largest in Indian stock market history, and the whopping 477% earning ratio for the company.

Major financial players of the world are converging to India. Global private equity fund, the Carlyle Group, and the Blackstone Group of U.S. recently opened their Indian branches and compete each other to gather potential investors to start $1 billion dollar fund concentrating on India.

Major foreign players flocking to set up shops

Temasek, the asset management wing of Singapore government, announced that it will invest $5 billion in next five years Temasek joined hands with Sabre Capital, the creation of former president of Standard Chartered Bank, will solicit domestic and foreign funds to invest on Indian stocks and bonds.

Singapore government, through Temasek and Singapore Investment Promotion Bureau,  has spend $2 billion for buying up shares of Indian companies. To circumvent share limits for foreigners in India, which is 10%,  Singapore signed comprehensive economic accord which allows for Singapore to hold up to 25 % share of Indian companies last month. In Japan, Nomura Securities launched India Stock Investment Fund last month, which attracted many investors, raising close to 100 billion yen(about $1 billion.)

Foreign investment on the steep rise

Foreign funds are into investing on India, because of its bright business prospects.

Major foreign corporations such as IBM, Intel, and Hong Kong Shanghai Bank, keep outsourcing R&D to Indian IT firms, and back-office jobs to financial service firms.

As a result, by March last year, India attracted $16.1 billion from foreign investors in a year, which is three times the total of the year before. IT firms received the most of foreign funds, while the rest spread over pharmaceutical and consulting firms.

Reflecting  the surging economy due to rapid influx of foreign funds, Indian stock market has witnessed its Mumbai stock index skyrocketing by 50% in one year, triggering a biggest rally in its history. Foreign net purchase of stocks and bonds in India amounted to $9.2 billion last year, and $4.5 billion until June this year.

Speedy market liberalization
 
Starting a few years ago, India and China have been lumped into one being called 'Chindia,' the largest emerging market in the world. Still it is true that China has overshadowed India.

While the annual growth rate of Chinese economy is 8~9%, Indian economy 's  in 6% range, and  per capita GDP is only half of  China's.

Nevertheless, the recent Indian boom is eclipsing China's. Peter Peterson, Chairman of The Blackstone Group, who launched its India Fund, emphasized in his recent interview, "In the end, China would not escape from its centralized socialist economy, but India is making rapid transition to (liberalized) market economy. There are more investment opportunities in India than in China."

India has undone various regulations this year to facilitate the influx of foreign funds into India, which is earning rave reviews among foreign investors. Recently, Indian government fully opened real-estate development market, hitherto restricted to people of Indian birth, to foreigners. Starting last March, foreigners can set up construction firms with 100% foreign investment, and enter its housing market.

Chung Ji-young
2005/07/05 17:53

/end my translation


TOPICS: Business/Economy; Foreign Affairs; Front Page News; Government; News/Current Events
KEYWORDS: bonds; china; construction; deregulation; economy; finance; foreigninvestment; india; it; japan; liberalization; market; mumbaiindex; privateequityfund; realestate; singapore; stock; us
I think Rummy also gave a big help to further push momentum toward India, when he gushed about India and savaged China during an international security conference in Singapore not long ago.
1 posted on 07/06/2005 7:22:05 AM PDT by TigerLikesRooster
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To: TigerLikesRooster; maui_hawaii; tallhappy; Dr. Marten; Jeff Head; Khurkris; hedgetrimmer; ...

Ping!


2 posted on 07/06/2005 7:23:35 AM PDT by TigerLikesRooster
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To: TigerLikesRooster

Well at least they don't have nukes pointed at us.


3 posted on 07/06/2005 7:27:47 AM PDT by superiorslots (Free Traitors are communist China's modern day "Useful Idiots")
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To: superiorslots

Yeah. And most Indians respect God.


4 posted on 07/06/2005 7:33:10 AM PDT by GVnana
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To: GVgirl

Most Indians are lovers, not fighters. :-)


5 posted on 07/06/2005 7:37:07 AM PDT by ExpatCanuck
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To: superiorslots


And majority of indians love america and americans


6 posted on 07/06/2005 7:41:12 AM PDT by phoenix_004
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To: phoenix_004

They lead a block of 100 nonaligned countries to get a seat on the UN Security Council.


7 posted on 07/06/2005 8:17:47 AM PDT by ClaireSolt (.)
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To: ClaireSolt


That was 20 yrs. ago!!!Nobody in india(except the left) bothers about non-alignment in india anymore!!


8 posted on 07/06/2005 9:19:08 AM PDT by phoenix_004
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To: GVgirl

"Yeah. And most Indians respect God."

Heck, so much that there are thousands of gods. Tragic for a culture that was the first to acknowledge that there is only one God (Rg Veda, 2500 BC)


9 posted on 07/06/2005 11:29:15 AM PDT by razoroccam (Then in the name of Allah, they will let loose the Germs of War (http://www.booksurge.com))
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To: phoenix_004

Sorry to correct you, but it is also this week.


10 posted on 07/06/2005 9:15:48 PM PDT by ClaireSolt (.)
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To: ClaireSolt


There is always a big difference between what the indian politicians say and do!!!


11 posted on 07/07/2005 5:24:34 AM PDT by phoenix_004
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To: razoroccam

I think you are getting Hinduism wrong. Hinduism says there is only one god, but you can worship him/her/it anyway you like. So the thousands of gods are different manifestations of the same god.

As you quoted the Rig Vedas you should know that all Hindu texts have their authority from the Vedas and the Rig Veda is the earliest text and therefore has the most authority.

Lot of people in america think Hindus worship thousands of gods and dont know that each on of these gods is just an aspect of the one god, who is infinite.


12 posted on 07/08/2005 10:33:38 AM PDT by ulmo3 (I don't want to be immortal through my work I want to be immortal by not dying)
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To: ulmo3

Glad to see you are well informed. Wish most Hindus were as knowledgeable as you.


13 posted on 07/08/2005 11:08:29 AM PDT by razoroccam (Then in the name of Allah, they will let loose the Germs of War (http://www.booksurge.com))
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