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31/10/2024

As we celebrate the Festival of Lights, Arete Consultants Pvt. Ltd. wishes you moments of peace, prosperity, and joy. May Diwali bring endless opportunities and success into your life. Happy Diwali!

15/08/2024

Wishing you a Happy Independence Day from Team Arete!

15/08/2022

Let's celebrate .

When India celebrates its 75th Independence Day, we are all reminded of what happens when people ignited with common goals come together.

Freedom & unity are the tools that ensure success and greatness.

Happy Independence Day.

17/11/2021

India received record FDI in last 7 yrs; hope to see the trend continue: Piyush Goyal

India attracted "record" foreign direct investments in the last seven years and the trend is expected to continue in the coming years as well on account of major structural reforms being undertaken by the government, Commerce and Industry Minister Piyush Goyal said on Tuesday.

He also said that India is focusing on integrating its quality standards with the world and the country needs to let go of the mindset of a particular product being for the domestic market and others for the export market.

"Last seven years, we have seen record FDIs (Foreign Direct Investments). I hope to see that continue, looking at major structural reforms being undertaken. This pick up in economic activity is here to stay and the future looks to be extremely bright," he said at industry body CII's National Conference on MNCs 2021.

FDI inflows into the country rose 62 per cent to USD 27 billion during April-July period of the current fiscal.

On Free Trade Agreements (FTAs), the minister said India is negotiating such pacts with countries, including UAE, Australia, UK, European Union (EU), Israel, and GCC ( Gulf Cooperation Council)) group.

"We will have an FTA with UAE in next 60-100 days, an interim agreement with Australia probably around the same time. With the EU, work should start soon (as) they have recently appointed a lead negotiator and we are working to start with Canada," he said.

Goyal appealed to MNCs (Multi National Corporations) to use India as a manufacturing base as they can capture the whole world from India.

"Hope you continue to grow, acquire new businesses, recruit in India and bring international talent here," he said, adding that on the single window clearance platform, more states will come on board.

Under an FTA, two trading partners reduce or eliminate customs duties on the maximum number of goods traded between them. Besides, they liberalise norms to enhance trade in services and boost investments.


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He also said that India is focusing on integrating its quality standards with the world and the country needs to let go of the mindset of a particular product being for the domestic market and others for the export market.

07/10/2021

DPIIT notifies 100% FDI in telecom sector via automatic route

The government on Tuesday notified its decision to permit 100 per cent FDI under automatic route in the telecom services sector.

The government on Tuesday notified its decision to permit 100 per cent FDI under automatic route in the telecom services sector.

In a press note, the Department for Promotion of Industry and Internal Trade (DPIIT) said foreign investment in telecom services will be subject to the condition of Press Note 3 of 2020.

Accordingly, cases requiring prior government approval under the provisions of Press Note 3 will continue to be in place.

As per the Press Note 3, an entity of a country, which shares a land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the government route.

The government on Tuesday notified its decision to permit 100 per cent FDI under automatic route in the telecom services sector.

31/08/2021

Economic resurgence: FDI equity inflows jump 168% in Q1

Gross inflows surge 90%, aided by base effect

Foreign direct investment (FDI) in equity in India jumped 168% year-on-year in the June quarter and gross FDI inflows surged by 90%, aided by a conducive base, showed the official data released on Saturday. However, the inflows were still higher than the level witnessed in the June quarter of FY20 (pre-pandemic), despite the onslaught of the second Covid wave this year and consequent curbs in certain key states such as Maharashtra and Delhi.

Gross FDI inflows — which include FDI in equity, reinvested earnings, equity capital of unincorporated bodies and other capital — rose to $22.53 billion in the first quarter from $11.84 billion a year earlier. Similarly, FDI equity inflows jumped to $17.57 billion from $6.56 billion.

The sharp growth in the first three months of this fiscal followed a moderation in the March quarter, although the full-year inflows still hit a record in FY21, beating the Covid blues. FDI equity inflows rose 19% in FY21 to $59.6 billion, while gross inflows rose 10% to an all-time-high of $81.7 billion in FY21.

Interestingly, while inflows in FY21 were greatly boosted by the digital sector (a sizable chunk was drawn by Reliance Jio alone), the automobiles sector attracted the highest FDI (27%) in the June quarter of this fiscal. This was followed by inflows into computer software and hardware (17%) and the services sector (11%).

The robust FDI inflows take place at a time when domestic private investments have remained elusive in recent years. Investments remain critical to the country’s economic resurgence, as private consumption has been badly bruised by income losses in the aftermath of the pandemic.

Karnataka was the top FDI recipient in the June quarter, with a 48% share, followed by Maharashtra (23%) and Delhi (11%). Karnataka accounted for 88% of the auto sector FDI.

“Measures taken by the Government on the fronts of FDI policy reforms, investment facilitation and ease of doing business have resulted in increased FDI inflows into the country,” the ministry of commerce and industry said in a statement.

According to a report by Unctad in January, India and China were two major “outliers” in a gloomy year for FDI, as global inflows plunged 42% on year in the calendar year 2020 to $859 billion, the lowest level since the 1990s.

While India witnessed a 13% year-on-year rise, the highest among key nations, in FDI inflows in 2020, China’s rose 4%, the Unctad report said. Of course, in absolute term, China remained way ahead, with an inflow of as much as $163 billion in 2020, while India’s stood at $57 billion.

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26/08/2021

CCEA approves Rs 15,000-crore FDI proposal of Anchorage Infrastructure Investment Holding

The government on Wednesday cleared a Rs 15,000-crore foreign direct investment (FDI) proposal of Anchorage Infrastructure Investment Holding Ltd, a subsidiary of Canada-based pension fund, for the investment in the infrastructure sector. The Cabinet Committee of Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the FDI proposal specifically for the purpose of investment in infrastructure and the construction-development sectors. These may include transport and logistics, along with downstream investment in the airport sector and aviation-related businesses and services.

The investment also includes transfer of share of Bangalore International Airport Limited to Anchorage, and investment of Rs 950 crore in Anchorage Infrastructure Investment Holding Ltd by the 2726247 Ontariao Inc, an official statement said.

The 2726247 Ontariao Inc is a wholly-owned subsidiary of OAC, which is the administrator of OMERS, one of Canada's largest defined benefit pension plans.

The investment will be a major boost to the infrastructure and construction sector and also to the airport sector. It will considerably substantiate the Government of India's plan to develop world-class airport and transport-related infrastructure though private partnership, it said.

The statement further said the investment will also be a significant boost to the recently announced National Monetisation Pipeline (NMP). It will help fund leasing out of state-owned infrastructure assets which involves handling assets like roads, railways, airports, sports stadiums, power transmission lines and gas pipelines to private operators.

Anchorage Infrastructure Investment Holding Ltd is proposing to make downstream investment in some of the sector covered under the NMP, it said.

The statement added that the investment will also lead to direct employment generation, as the sector in which Anchorage Infrastructure Investment Holding Ltd is proposing to make downstream investments are capital- and employment-intensive sector.

The investment will also generate indirect employment in construction and ancillary activities, it added.

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The Cabinet Committee of Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the FDI proposal specifically for the purpose of investment in infrastructure and the construction-development sectors. These may include transport and logistics, along with downstream investment in t...

06/08/2021

FM invites Aussie investors to tap opportunities in infrastructure sector

Finance Minister Nirmala Sitharaman on Thursday invited Australian investors to tap opportunities in India's infrastructure sector which needs funding to the tune of Rs 111 lakh crore over five years.

Finance Minister Nirmala Sitharaman on Thursday invited Australian investors to tap opportunities in India's infrastructure sector which needs funding to the tune of Rs 111 lakh crore over five years.

Australia is an important partner of India as a strong liberal democracy with shared diaspora and bilateral trade and investment.

The bilateral trade has been growing steadily since past decade and there exists immense potential for the two countries to enhance it further in light of the wide spectrum of complementarities and strengths in the post-COVID period, Sitharaman said during a meeting with Tony Abbott, Special Envoy of Australian Prime Minister.

Abbott complimented India for undertaking comprehensive and sustained reforms programme and said the country has continued to demonstrate robust growth despite the disruptive impact of the pandemic, a finance ministry statement said.

Sitharaman further highlighted recent economic reforms and easing of FDI norms in India, which provide opportunities for Australian investors.

The Australian superannuation funds have invested in the National Investment and Infrastructure Fund (NIIF) and have been invited to look at various opportunities to invest in Indian infrastructure, she said.

The finance minister said a team from Australia could engage with the Indian side to better explore the avenues for investment in the National Infrastructure Pipeline projects.

National Infrastructure Pipeline (NIP) for 2020-2025 has projected total investment of Rs 111 lakh crore in about 7,000 infra projects.

Sitharaman also noted the credible progress observed in economic and commercial relations between the two countries over the past decade, including elevation of the India-Australia bilateral relationship into a Comprehensive Strategic Partnership.

She also emphasised that the complementarities between both countries provide immense scope for augmenting the economic relationships.

Finance Minister Nirmala Sitharaman on Thursday invited Australian investors to tap opportunities in India's infrastructure sector which needs funding to the tune of Rs 111 lakh crore over five years.

26/06/2021

Cash in on opportunities arising out of recent FDI reforms: FM Nirmala Sitharaman to US investors

Cash in on opportunities arising out of recent FDI reforms: FM Nirmala Sitharaman to US investors

The Centre’s fiscal deficit spiked to as high as 9.3% of the gross domestic product (GDP) in FY21, as revenue collections crawled while the need for spending to soften the Covid blows grew. In the current fiscal, the Centre is targeting to reduce the deficit to 6.8%.

Continuous reforms make India a great place to do business in, finance minister Nirmala Sitharaman asserted, as she called on American investors to cash in on new opportunities arising out of New Delhi’s recent FDI reforms, the rollout of performance-linked incentive (PLI) schemes and the privatisation policy.

Despite the damage caused by the Covid-19 pandemic, India’s fiscal situation is under control and expected to improve further, the minister said. She was addressing a virtual global investors roundtable, organised by the US-India Strategic Partnership Forum (USISPF) late on Thursday.

The Centre’s fiscal deficit spiked to as high as 9.3% of the gross domestic product (GDP) in FY21, as revenue collections crawled while the need for spending to soften the Covid blows grew. In the current fiscal, the Centre is targeting to reduce the deficit to 6.8%.

The virtual roundtable is the latest in a series of meetings held by finance minister to draw large-scale foreign investments, especially in infrastructure, to bring the Covid-ravaged economy back on its feet fast. The country’s reliance on FDI has risen in recent years, as domestic private investments have remained anaemic.

Sitharaman stressed the government’s vision to build a self-reliant modern India, driven by 5 “Is” — intent, inclusion, investment, infrastructure and innovation.

She asserted that there has been continued macro-economic stability and recovery in recent months. For instance, the highest-ever goods and services tax (GST) collection shows the bright spot and suggests greater formalisation of the economy and tax compliance, she said.

“The finance minister remarked that macro-economic stability, infrastructure-led economic growth opportunities, financial sector reforms, and positioning as a strong player in global supply chains are just some of the ways India continues to rise as a global economic powerhouse,” the finance ministry said in a statement.

The 15 new unicorns in five years itself reflects that the country’s growing start-up ecosystem is amongst the best in the world, she said.

While hard-selling her government’s various initiatives to draw investments, Sitharaman also informed the investors of a significant drop in new Covid cases in India and the decline of the second wave. She also highlighted the government’s Aatmanirbhar initiative and steps taken to ensure infrastructure-led growth.

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The Centre’s fiscal deficit spiked to as high as 9.3% of the gross domestic product (GDP) in FY21, as revenue collections crawled while the need for spending to soften the Covid blows grew. In the current fiscal, the Centre is targeting to reduce the deficit to 6.8%.

24/06/2021

Gross FDI inflows jump 38% in April, FDI in equity surges by 60%

Gross FDI inflows had risen by 10% to touch an all-time-high of $81.7 billion in FY21, although the pace of growth decelerated in the March quarter. Still, the inflows remained very encouraging last fiscal, given the devastation and disruption caused by the pandemic across the globe.

Gross FDI inflows rose 38% year-on-year in April and FDI in equity surged by 60%, aided by a conducive base. However, the inflows were still higher than the April 2019 (pre-pandemic) level and appeared to have beaten the damaging impact of the second Covid wave this year.

Gross inflows – which include FDI in equity, reinvested earnings, equity capital of unincorporated bodies and other capital — hit $6.24 billion in April, against $4.53 billion a year before, showed the data released by the commerce and industry ministry on Wednesday. Inflows of FDI in equity rose to $4.44 billion in April from $2.77 billion a year before.

The inflows take place at a time when domestic private investments have remained elusive in recent years. Investments remain critical to the country’s economic resurgence, as private consumption has been badly bruised by income losses in the aftermath of the pandemic.

Going forward, the bigger challenge would be to sustain the high growth in FDI inflows, once the favourable base effect wanes from August. Interestingly, FDI inflows last fiscal were greatly boosted by those into the digital sector. Analysts have already pointed out that a sizable chunk of the FDI was drawn by Reliance Jio alone.

Gross FDI inflows had risen by 10% to touch an all-time-high of $81.7 billion in FY21, although the pace of growth decelerated in the March quarter. Still, the inflows remained very encouraging last fiscal, given the devastation and disruption caused by the pandemic across the globe.

According to the World Investment Report 2021 by the UN Conference on Trade and Development (UNCTAD), released on Monday, FDI inflows into India rose 27% to $64 billion even when global inflows crashed by 35% in 2020.

Mauritius emerged as the top investing country, with a 24% share of the FDI Equity inflows, followed by Singapore (21%) and Japan (11%).

‘Computer Software & Hardware’ was the top sector to have received the FDI in April, with about 24% share, followed by the services (23%) and education (8%).

Karnataka remained the top recipient state, with 31% share of the total FDI in equity inflows, followed by Maharashtra (19%) and Delhi (15%).

Gross FDI inflows had risen by 10% to touch an all-time-high of $81.7 billion in FY21, although the pace of growth decelerated in the March quarter. Still, the inflows remained very encouraging last fiscal, given the devastation and disruption caused by the pandemic across the globe.

23/06/2021

India to launch Phase 1 of ‘single-window system’ for investors soon, says Union Minister Piyush Goyal

There will be 17 ministries and departments as well as 14 states onboard in the first phase, Goyal said during a review meeting of the system.

The first phase of the national single-window system, which will allow investors to identify and apply for various pre-operations approvals required for commencing a business in India, is likely to be launched soon, Commerce and Industry Minister Piyush Goyal said on Tuesday.

There will be 17 ministries and departments as well as 14 states onboard in the first phase, he said during a review meeting of the system. He expressed hope that it will be a seamless interface where all the facilities from land purchasing to all the information needed to businesses and industrialists will be available.

He added that it would be a genuine single window and would act as a one-stop solution to all the problems or requirements of the investors. “This would provide end-to-end facilitation, support, including pre-investment advisory, information related to land banks and facilitating clearances at central and state levels,” the minister said.

Goyal also emphasised on the security and the authentication of the critical data used in this platform. He said all security measures should be in place to safeguard the critical data.

https://www.financialexpress.com/industry/india-to-launch-phase-1-of-single-window-system-for-investors-soon-says-union-minister-piyush-goyal/2276448/

There will be 17 ministries and departments as well as 14 states onboard in the first phase, Goyal said during a review meeting of the system.

31/05/2021

FDI in computer software, hardware jumps threefold to $26.14 billion in 2020-21: DPIIT data

Foreign direct investment (FDI) in computer software and hardware jumped over threefold to $26.14 billion during 2020-21 on account of significant growth in the country's technology space, according to data from the Department for Promotion of Industry and Internal Trade. The sector received $7.67 billion FDI in 2019-20 and $6.41 billion in 2018-19, the data showed.

The computer software and hardware sector accounted for about 43 per cent in the total $59.63 billion foreign inflows that India attracted in 2020-21.

The technology space in India is growing significantly on the back of the rapid end-to-end digitisation of businesses, Deloitte India Partner Rajat Wahi said.

"This has especially accelerated during the lockdowns over the last year that has forced businesses to automate processes across the value chain - and this is likely to further accelerate this year and in the next 2-3 years.

"This technology enablement is attracting overseas investors to India, where hardware, software and SaaS (software-as-a-service) are seeing a big push in India's FDI," he said.

Most technology practices are getting great traction today, especially in segments like e-commerce, and a lot of the FDI is likely to be used to support technology enablement across sectors and across the value chain, Wahi added.

Overseas investments in construction (infrastructure) activities increased to $7.87 billion in 2020-21 from $2 billion in the previous financial year. FDI into pharmaceuticals rose to $1.49 billion from $518 million in 2019-20.

However, FDI in the services sector and trading dipped to $5 billion and $2.6 billion during the last financial year, from $7.85 billion and $4.57 billion in 2019-20, respectively.

Telecommunications also witnessed a decline from $4.44 billion in 2019-20 to $392 million in 2020-21.

The other sectors where FDI has recorded decline in the last fiscal include construction development, automobile, chemicals, hotel and tourism.

Nangia Andersen LLP Partner Sandeep Jhunjhunwala said that due to COVID-19 demand for technological infrastructure, the consumer spending on these has soared multi-fold on account of requirements such as remote learning, work from home and virtual healthcare.

"The technological solutions offered by Indian IT multinationals for various business and government initiatives have also created massive demands in the pandemic period, both offshore and onshore," he said.

..Jhunjhunwala added that the production-linked incentive scheme and Make in India campaign for manufacturing IT hardware in India have also pulled the attention of global investors to look at India as a destination for greenfield or brownfield projects.

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The computer software and hardware sector accounted for about 43 per cent in the total $59.63 billion foreign inflows that India attracted in 2020-21.