Articles 1 to 10 of 94
India's Union Budget Steps on Foreign Investors' Toes -- Again
India's Union Budget last year carried a seemingly innocuous reference to tax avoidance, which spooked many foreign investors. Now, a different finance minister, P. Chidambaram, has done it again. The response to the budget was overshadowed by a reference to tax residency norms, causing markets to fall as foreign investors thought they were being targeted. The government later clarified that there was no such intention. But was there a message between the lines? Is Chidambaram telling foreign investors that they can't take India for granted?
Is India Wooing the Wrong Dollar-surplus Segments?
India needs dollars; the country has to pay a huge oil import bill every year. The nation's merchant exports are not adequate in the absence of a strong "Made in India" image. Foreign direct investment, money pumped into the markets by foreign institutional investors, and remittances by non-resident Indians are all being targeted. But are the government's priorities misplaced?
India's Aspiring Banks Line up for Licenses
The Indian government and industry want more banks. So far, the regulator that authorizes the creation of new financial institutions -- the Reserve Bank of India -- has resisted the move. Recent changes in statute have left it with no reason to object, however, and the agency will issue new licenses soon. Still, no one expects more than a handful of aspirants to get the green light.
Despite Earlier Setbacks, India Inc. Eyes Targets Abroad
A few years back, when the Tatas took over Jaguar Land Rover, the Birlas bought Novelis and the Bharti group acquired telecom company Zain, experts predicted a rash of Indian takeovers of global assets. It didn’t happen that way: In a number of deals, the targets proved difficult to assimilate. There was a hiatus. Now, however, Indian companies seem to be back on the takeover trail.
Private Equity in India Finds Opportunity in Adversity
Private equity (PE) in India is facing problems because of unclear and changing regulations, and the lack of exit routes. At the same time, many are turning to PE funds because other sources of finance have dried up. This year is expected to be one of consolidation for the industry, according to the “India Private Equity Report 2012,” released by global management consulting firm Bain & Company.
Indian Banks Have Catalyzed Growth: Now They Have to Grow
Bankers in India are facing critical issues these days. The Reserve Bank continues to keep interest rates high, which increases the danger of assets turning toxic and impacts corporate borrowing. At a recent panel discussion of industry representatives in Mumbai, however, the concerns were concentrated more on the industry's longer term challenges.
In India, the Three R's Are Being Joined by an 'F': Financial Literacy
India has had several stock market-related scams in which investors have been taken for a ride. Ordinary people are also being erroneously sold financial products, such as insurance and mutual funds, from unscrupulous vendors. Simply warning the public hasn't made much of an impact, so several public and private organizations are pushing programs that teach the basics of business and finance in schools. With a national strategy for financial education about to be finalized, their efforts are intensifying.
Vijay Mahajan: Rebuilding a Stronger Microfinance Sector in India
The microfinance sector in India has gone through turbulent times in the past couple of years. The central government has now stepped in with the Microfinance Institutions (Development and Regulation) Bill, 2012. Vijay Mahajan, the president of the Microfinance Institutions Network of India, talked to India Knowledge@Wharton about the implications of the new bill and the way ahead for the sector.
Reserve Bank's G. Gopalakrishna: 'We Have No Target for the Rupee'
The Indian rupee has been falling very sharply in recent months. G. Gopalakrishna, executive director of the Reserve Bank of India (RBI), says that the central bank's principal job is to monitor volatility, not value. On a related issue, he tells India Knowledge@Wharton that full convertibility of the rupee is not on the horizon.
India's ‘Do-no-evil’ Budget Conceals a Bombshell
India’s Union Budget for 2012-2013 was described by commentators as a ‘do-no-evil’ budget. There was nothing spectacular, but there was general agreement that it was a competent job in a difficult economic environment. Then somebody saw the fine print: The Vodafone tax case is back on center stage due to a clause that would allow transactions by foreign entities involving assets principally in India to be taxed locally -- and retroactively, dating to 1962.
