Foreign Direct Investment - Some Stats & Facts

Foreign direct investment (FDI) is investment directly into production in a country by a company located in another country, either by buying a company in the target country or by expanding operations of an existing business in that country.The foreign direct investment generally encompasses the transfer of technology and expertise, and participation in the joint venture and management. Highly productive advantages of foreign direct investment have been constantly being harvested by both governmental and private companies and organizations of all over the world.

When the page turns to India, the country is one of the constantly growing nation enjoying huge and regular FDI from various investors worldwide for the last few decades. UNCTAD (United Nations Conference on Trade and Development) states that India has become the most popular country and destination for the FDI Investors after China. This survey is proven to be true and exact.

Most of the investments that are made, cover sectors like telecommunication, computer hardware and software, construction, and services, by investor companies from USA, UK, Singapore, Mauritius, etc. 

The foreign direct investment in india can be made in a variety of ways and in a rather wide range of economic sectors. Worldwide prominent Global Jurix has been helping individuals, associations, private and public companies/organizations, and institutions of diverse sectors for making their cherished FDI in India, through both the Automatic and Government Routes, for a long time.

Below are the FDI Inflows presented by OECD over the past years: 

Source: http://www.globaljurix.com/foreign-direct-investment.php

Major Growing Countries in 2013

With intensifying strains in the euro area weighing on the global outlook, the International Monetary Fund has sharply cut its forecast for world growth this year, saying prospects have dimmed and risks to financial stability have increased.In a report it has projected countries that will see biggest growth in 2013.

Let's have a look at some of these nations an their Growth Rate according to Rediff:

Countries	Growth In 2010 (%)	Growth In 2011 (%)	Growth In 2012 (%)	Growth In 2013 (%)
India	9.9	7.4	7.0	7.3
China	10.4	9.2	8.2	8.8
USA	3.0	1.8	1.8	2.2
UK	2.1	0.9	0.6	2.0
Canada	3.2	2.3	1.7	2.0
Germany	3.6	3.0	0.3	1.5
France	1.4	1.6	0.2	1.0
Japan	4.4	-0.9	1.7	1.6
South Africa	2.9	3.1	2.5	3.4
Italy	1.5	0.4	-2.2	-0.6
Russia	4.0	4.1	3.3	3.5
Mexico	5.4	4.1	3.5	3.5

The World this Week June 18 - June 22 2012

The world this week june 18 - june 22 2012

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12 Fast emerging World Markets

According to a report by global management consulting firm A.T.Kearney, 12 countries at the moment are the fastest emerging markets in the world, with Brazil ranking top on the list.

With upcoming Olympics and World Cup Brazil is expecting to see up to $50 billion in investment. The biggest challenges for international retailers are high import taxes and seasonal differences. The other eleven are Uruguay, Chile, India, Kuwait, China, Saudi Arabia, Peru, United Arab Emirates, Turkey, Lebanon and Egypt with India ranking 4th on the list.


Source: http://www.rediff.com/business
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The world's fastest growing economies

If you think that China is the world's fastest growing economy, think again. However, among the major (or large) economies, China does remain the fastest growing economy. But if you take smaller nations too in the list, China slips down the list.


1. Ghana: 20.146%
Many economists believe that Africa is the next boomtown. Several African nations are now growing at a rapid pace, trying to make lives better for their people. None more so than Ghana. For quite a long time, Ghana received many an unflattering adjectives to describe its economy: 'worst managed', 'disastrous', etc.  However, the small African nation has since then come a long way and is the world's fastest growing economy today.
Ghana's economy is growing at a blistering 20.15 per cent, says Economy Watch. It's a $23.4-billion economy.


2. Qatar: 14.337%
With a GDP growth rate of 12.337 per cent, Qatar is the world's second fastest growing economy, says Economy Watch. It's a $132-billion economy. The economy of Qatar, one of the world's largest exporters of petroleum, is primarily oil-based. High oil and gas prices have boosted the economy of this Gulf state over the last few years.


3. Turkmenistan: 12.178%
Turkmenistan is blessed with the world's fourth-largest reserves of natural gas. The country is also the world's 10th largest producer of cotton. It is the world's third fastest growing nation with a GDP growth rate of 12.18 per cent, according to Economy Watch. It is a $41-billion economy.


4. China: 9.908%
China is the world's fourth fastest growing economy at 9.908% GDP growth rate, and in monetary terms it is of the order of a whopping $6 trillion, says Economy Watch. China, which most economists believe could soon upstage the United States as the world's largest economy, showed some signs of slowing down.However, the rising inflation rates in China are posing a new challenge to the country.China's gross domestic product grew 9.6 per cent in the third quarter as compared to the same period last year. The growth rate slowed down from 11.9 per cent in the first quarter and 10.3 per cent in the second quarter.
5. Liberia: 9.003%
Even though Liberia remains one of the poorest countries on earth, it has shown robust economic activity in the last few years. This African nation is the world's fifth fastest growing economy with a GDP growth rate of 9.003 per cent, says Economy Watch. It is a $1.05 billion economy.


6. India: 8.43%
Economy Watch says that the India, at 8.43 per cent GDP growth rate, is the world's sixth fastest growing economy. India is a $1.5-trillion economy. The India growth story is enviable. Despite plaguing problems, India has emerged stronger and resilient to the global crisis so far. India is expected to be the world's fastest growing economy by 2018, according to Economist Intelligence Unit (EIU), the research arm of the Economist magazine. The growth rate for the first quarter was revised upwards to 8.9 per cent from 8.8 per cent.


7. Angola: 8.251%
Angola is the world's seventh fastest growing economy at a GDP growth rate of 8.251 per cent, as per the Economy Watch report. It is a $ 99-billion economy. Battered by a civil war for close to 25 years, Angola has since then come a long way. Fresh pro-people and pro-reform policies have seen funding from the International Monetary Fund and other global lenders rising. These funds are being utilized to create infrastructure in the nation, thus generating employment and healthy economic activity.


8. Iraq: 7.873%
Iraq is growing at 7.873 per cent, making it the world's eighth fastest growing economy, according to Economy Watch. It is a $93-billion economy.


9. Ethiopia: 7.663%
Economy Watch says that with an annual GDP growth rate of 7.663 per cent, Ethiopia is the world's ninth fastest growing economy. It is a $31.7-billion economy. Over the last two decades, Ethiopia has been noticing the fruits of focused efforts at propelling its economy. Some reforms were undertaken in spite of opposition from various political quarters in the country.


10. Mozambique: 7.548%
Mozambique, a member of the Southern African Development Community, is the world's 10th fastest growing economy with a GDP growth rate of 7.548 per cent. It is a $10.5-billion economy. The SADC free trade plan aims at eliminating tariffs and trade barriers, thus making it more competitive.
Like in India, a majority of the population in Mozambique too is engaged in the agriculture sector.


11. Timor Leste (East Timor): 7.4%
Timor Leste (or East Timor) is the world's eleventh fastest growing economy with an annual GDP growth rate of 7.4 per cent. It's a tiny, $732-million economy.East Timor's economy is mainly driven by the sectors of agriculture and oil and gas.


12. Laos: 7.395%
The GDP growth rate of Laos is 7.395 per cent, making it the world's 12th fastest growing economy. It is a $6.9-billion economy. Agriculture is the most important part of the Laotian economy. Over 80 per cent of the country's working people are engaged in the agri sector. The sector also accounts for about 50 per cent of the nation's GDP.

Source :Rediff business

Quick Primer – The Largest Banks Outside US

Let’s take a look at the Largest Banks outside US

• ICBC (China)

• HSBC Holdings(UK)\

• Bank Of China

• Banco Santander

• Mitsubishi UFJ Financial (Japan)

• RBS (UK)

Source : Anatomy of froth

Quick Primer on Top 5 economies

The gross domestic product (GDP) is one the primary indicators used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a specific time period - you can think of it as the size of the economy which indicate a sign of a health economy

Let’s take a look at the Top 5 economies

1. US  - $14 trillion
2. China -  9$ trillion
3. Japan - $4 trillion      
4. India  - $3.5 trillion    
5. Germany - $3 trillion

India is on the 4^th position which is a positive indication regarding the growth of Indian economy.

These are GDP’s numbers at purchasing power parity – a  mechanism of making different countries output comparable. The next five largest economies are UK, Russia, Brazil, & Italy.

Source : Anatomy of Froth by Swapnil Pawar

BMW – Top luxury car in India!

Germany's BMW has maintained its lead over rivals Mercedes-Benz and Audi to remain the top luxury car in India in 2010, with sales of 6,246 units. BMW India, which saw 73 per cent growth in sales during the year, enjoys over 40 per cent share of the luxury car market in the country, which is estimated at around 15,000 units per annum.

In terms of the sales growth rate, India was among the top three markets for BMW after China, which saw over 80 per cent growth. India and Korea followed it (China) at around the same level," BMW India president Andreas Schaaf told PTI.

 The total number of BMW cars sold in India in 2010 exceeded the company's target of 4,200 units. The year 2010 was an exceptional one for BMW in India and I am not sure if we can repeat it, but the market will continue to grow and we want to stay number one, as we do not want to give up that position.

This is the second consecutive year in which BMW has retained leadership position in the luxury car segment in India.

Source :Rediff business 

Metals losing its sheen at current levels...

The Asian Indices are witnessing down pressures mirroring losses in Chinese markets due to credit tightening and South Korea fighting with inflationary pressures.

Analysts were already expecting a profit booking trends owing to soar prices. Metals and commodity index also witnessed volatility with gains in US Dollar. The sectors to watch post correction are auto, capital goods and construction. These sectors are set to rally after the Chinese market recovers, Euro issues improve and Dollar strengthens in coming months.

According to experts profit booking was on expected lines as valuations were at all-time highs. They are advising retail investors to exit metals and other commodities which are under pressure due to gains in US dollar. The sectors to look at post correction are auto, capital goods and construction space. Long term investors should continue to stay put, they said.

With Metals at their high it's advised for retail investors to exit at these levels whereas long term investors can hold it till the market recovers. Market has a strong support at 5940 levels and it's difficult to sustain at current levels which rallied with foreign liquidity in emerging markets.

Weakness in global markets can take Nifty to 5700-5800 levels. FIIs like CLSA believe any corrections in emerging markets are buying opportunities. High beta sectors like metals and realty are more prone to slow down there speed.

The Metal and commodity market are expected to bounce back but till then it's advised to wait and watch the metal that are losing sheen at current levels.

Source – ET

India third most powerful nation says the US report

India is listed as the third most powerful country in the world after the US and China and the fourth most powerful bloc after the US, China and the European Union according to a new report released in US.

In 2010, the US tops the list of powerful countries/regions, accounting for nearly 22% of the global power.

The US is followed by China (more than 12%), European Union (more than 12%), India (nearly 8%). India is followed by Japan, Russia and Brazil with less than 5% each.

According to this international futures model, by 2025 the power of US, EU, Japan and Russia would decline while that of China, India and Brazil would increase, even though there would be no change in this listing. By 2025, the US would still be the most powerful country of the world, but it would have a little over 18% of global power. The US would be closely followed by china (nearly 16%), EU (14%) and India (10%).

Source: TOI

Top Five nations for real estate investment in the world!!!

According to the latest report issued by the FCCI these are the following countries which are best suited for Real Estate Investment:

1.China

In the list of top nine attractive destinations for real estate investments, China is number 1.
On China, the FCCI study said: "Even amid cautious market sentiments and tightening of government policy, China remains attractive as an investment destination primarily due to its impressive economic growth record and favorable demographics."

2.The United States

The United States is the second most attractive destination for future real estate investments.
Globally, REITs and REMFs have contributed significantly to the real estate finance and developers overseas have capitalised on the growth potential of the sector according to the FCCI report.

3.United Kingdom

The United Kingdom is the third most attractive destination for future real estate investments.

4.Singapore

Singapore is the fourth most attractive spot for real estate investments.
The study also notes that an overview of all the geographies showcased reveal certain common threads. The strongest markets appear to be those in which controls have curbed excessive lending, speculative buying and instability.

5.India

India is ranked as the fifth most attractive destination for future real estate investments, according to a latest report and also "India ranks fifth on the overall index, as it scores better on the country economy development index and the real estate market index.

Source: Rediff

India one of the most important destinations for FDI!

India has successfully replaced United States as the second most important foreign direct investment (FDI) destination for transnational corporations during 2010-2012, according to a survey conducted by UNCTAD.
According to the survey based on 236 TNCs, India is the most important FDI destination next to China, replacing the US as the second most important destination for FDI by transnational companies last year following severe recession in the US. In the last survey, the US was the second most important destination and this time the country has slipped to fourth position.

As a result of this, M&A of transnational corporations could be under a main focus driving the FDI activities in India in the coming years.