Tag: CII

Overseas FDI by Indian companies expected to rise, says CII

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Industry chamber CII today said overseas investments by Indian companies are likely to go up given the stable market conditions and the significant impact created by Indian companies on local economies.

Indian companies have been working with the local communities while investing abroad, generating substantial employment and creating benefits for the host economies, CII said in a statement.

Citing a World Investment Report of UNCTAD, the chamber said India’s total cumulative stock of overseas foreign direct investment (OFDI) amounted to $155 billion in 2017.

CII tracks overseas investments by Indian companies in major countries to provide insights about their scale and performance and the impact they have on these economies. These surveys have been conducted in the US, the UK, China, South Africa, and Germany.

The major sectors of interest for Indian companies in these countries are information technology (IT), pharmaceuticals, manufacturing, automotive, financial services, and business services, among others, as per its various surveys.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Focus on resolution, not liquidation in insolvency proceedings, says IBBI Chairperson

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Insolvency and Bankruptcy Board of India’s chairperson M.S. Sahoo on Saturday said the focus is on getting resolution in the corporate insolvency resolution process though liquidation is happening more in the initial stages.

“Resolution plan is not just a bidding mechanism or price discovery mechanism…our focus would be on resolution. The objective is to keep the firm alive, to maximise the value of the asset and balance the interests of all stakeholders. It is definitely not the liquidation,” he said.

Liquidation is happening in the initial stage and there is no need to worry to much, Sahoo said at an event organised by CII here.

“So far, about 850 corporate debtors have been admitted into the resolution process. About 130 have completed the first stage of the process and the rest are in the path. Out of 130, about 100 have ended up in the liquidation,” he added.

Many initiatives have been taken to promote resolution over liquidation in the corporate insolvency resolution process, Sahoo added.

Speaking on the latest Ordinance promulgated on June 6, the IBBI chief said with a view to encouraging resolution as opposed to liquidation, the voting threshold has been brought down to 66 percent from 75 percent for all major decisions such as approval of resolution plan, extension of CIRP (Corporate Insolvency Resolution Process) period, etc.

Further, in order to facilitate the corporate debtor to continue as a ongoing concern during the CIRP, the voting threshold for routine decisions has been reduced to 51 percent.

In order to protect the sanctity of the CIRP, the Ordinance lays down a strict procedure if an applicant wants to withdraw a case after its admission under IBC 2016.

Referring to an official statement he said it highlighted some of the specific issues that would be addressed including non-entertainment of late bids, no negotiation with the late bidders and a well laid down procedure for maximising value of assets.

“All this will come in the regulation. These issues are being dealt. The regulation will come shortly,” Sahoo said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

CII expects Indian economy to grow at 7.3-7.7 percent in 2018-19

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Industry chambers Confederation of Indian Industry (CII) on Monday said that it expects India’s economy to grow at 7.3-7.7 percent in 2018-19 on the back of “sustained structural reforms”, recovery in global markets and a normal monsoon.

The industry body in a statement said that “sustained structural reforms” have led to a rebound in the country’s economy as businesses across several key sectors experience firm growth trends.

“The impact of sustained structural reforms is now being felt on the ground as a mammoth economy is turning around,” CII President Rakesh Bharti Mittal was quoted as saying in a statement.

“Businesses across several key sectors are experiencing firm growth in sales and orders, indicating better capacity utilisation and higher investment expectations.”

According to CII, strong rural consumption is reflected in sectors such as consumer non-durables, two-wheelers and tractors.

“The feedback from businesses is that the rebound in the economy is now firmly entrenched and the positive impact of the actions taken by the government, including major structural reforms, are being felt on the ground,” Mittal added.

The industry body credited the growth trend on prudent macroeconomic management which it said has encouraged “growth and investments for capacity expansion are being planned as demand conditions recover”.

“The government has avoided slippage in the fiscal deficit despite the rise in oil prices. Inflation too, has remained under control to the extent possible even as cost of oil is going up,” the statement said.

CII noted that “capital goods” sector has shown a steady improvement and order books are filling up. This sector is a key indicator of a country’s economic activity.

“Exports too, are poised to grow at a faster pace in the current fiscal year, which started on a good note,” the industry body said.

The CII statement pointed to eight key areas where reform measures have “unlocked growth forces” like the introduction of the GST; strong emphasis on ease of doing business; Insolvency and Bankruptcy Code; increase in the the Foreign Direct Investment (FDI) limits in sectors such as insurance, real estate and defence manufacturing.

Besides, a rise in infrastructure spend; initiatives to strengthen micro, small and medium enterprises (MSME) and “initiatives in agriculture have helped improve rural incomes”.

In addition, CII said that introduction of fixed term employment across sectors “will impart flexibility to the use of labour”.

“With several major development campaigns such as Make in India, Digital India, Swachh Bharat, Clean Energy and others gaining traction as well as recovery in the global economy and expectations of a normal monsoon, CII expects growth to record 7.3-7.7 per cent in 2018-19,” the statement added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow