News: India to woo over Rs 1,00,000 cr FII investments
(ACERC 03/04/2006) Mumbai - Even after investing over Rs 2,00,000 crore in the Indian markets so far, foreign institutional investors' (FIIs) appetite for Indian paper seems to be growing.
According to leading analysts, India has the potential to attract over Rs 1,00,000 crore FII investments this year. Market players say the reason is simple: India is currently the only economy in the world where annual growth is envisaged at over 8 per cent. According to GDP growth projections for 2006-07 by CLSA Asia Pacific Markets, China's GDP is expected to grow by 3-5 per cent, Hong Kong 4.3 per cent, Singapore 4.6 per cent, Indonesia 3.5 per cent and Malaysia 1 per cent.
Infrastructure is seen as the key contributor to the India story. FIIs expect fast-track infrastructure development in India over the next five to ten years. The comprehensive maritime policy has proposed an investment of $1 trillion, and investments worth Rs 70,000 crore are in the pipeline for irrigation, railways, water and waste management projects. Another Rs 65,000 crore will be invested in metro projects, flyovers and national highways.
The Bharat Nirman Yojana proposes to spend Rs 1,70,000 crore on electricity, irrigation, drinking water, rural housing and rural road connectivity. The National Urban Renewal Mission has proposed Rs 1,00,000 crore development plans for cities and villages. Urban development, including transport systems for all major cities, airport improvement, water and sanitary systems, will require a spend of around Rs 35,000 crore.
According to leading analysts, India has the potential to attract over Rs 1,00,000 crore FII investments this year. Market players say the reason is simple: India is currently the only economy in the world where annual growth is envisaged at over 8 per cent. According to GDP growth projections for 2006-07 by CLSA Asia Pacific Markets, China's GDP is expected to grow by 3-5 per cent, Hong Kong 4.3 per cent, Singapore 4.6 per cent, Indonesia 3.5 per cent and Malaysia 1 per cent.
Infrastructure is seen as the key contributor to the India story. FIIs expect fast-track infrastructure development in India over the next five to ten years. The comprehensive maritime policy has proposed an investment of $1 trillion, and investments worth Rs 70,000 crore are in the pipeline for irrigation, railways, water and waste management projects. Another Rs 65,000 crore will be invested in metro projects, flyovers and national highways.
The Bharat Nirman Yojana proposes to spend Rs 1,70,000 crore on electricity, irrigation, drinking water, rural housing and rural road connectivity. The National Urban Renewal Mission has proposed Rs 1,00,000 crore development plans for cities and villages. Urban development, including transport systems for all major cities, airport improvement, water and sanitary systems, will require a spend of around Rs 35,000 crore.
posted by InCar Group Press Room at 16:03
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