Business, Economy & Banking Current Affairs - 2019
Business, Economy and Banking in Current Affairs 2019 with latest news and current affairs in Agriculture, Industry, Banking, Capital Markets, Import and Export and Government schemes in commercial sector.
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India has come up as the 2nd largest investor in the city of London with Indian companies led by software major Infosys with the investment eagerness generated by the 2012 Olympic Games in the British capital.
Infosys leads the inward Foreign Direct Investment (FDI) made by a total of 28 Indian companies, which generated 429 additional jobs for the British economy in 2012.
Major sectors of growth:
- India has registered exceptional growth in the common areas of interest, such as transport and city planning.
- India brought in a large amount of additional 2.5 billion-pound foreign investment into the UK since the Games and Indian FDI projects in 2012-13 are estimated to generate 24 million pounds in gross value added for London’s economy over the next 3 years.
- Information and communications technology (ICT) was the key sector in terms of Indian FDI into London, followed by financial services and retail.
- In the financial services sector Axis Bank stood out for setting up its global operations in London as it has the right mix of potential wholesale and retail business to make it the ideal location for their first international subsidiary.
The latest figures were released as part of an overall estimate of the economic impact of the Olympic Games on London’s economy. British government research indicated that the UK economy has seen a 9.9 billion-pound boost in trade and investment from hosting the Games.
FDI in multi-brand retail sector is allowed after the agreement from the Foreign Investment Promotion Board (FIPB). With the growing demands from the overseas retails the government decided to liberalise Foreign Direct Investment (FDI) limits in 13 sectors including telecom, insurance, retail and defence. The government also cleared the much awaited 100 % FDI in the telecom sector from the existing 74%. Commerce and Industry Minister Anand Sharma stated that the foreign direct investment limit in insurance sector will be increased to 49% from the existing 26%. In multi-brand retail, up to 49% overseas investment would now be allowed through automatic route. There is no decision yet taken on Foreign Direct Investment in media.
Key points in FDI stated by Anand Sharma
- Petroleum and Natural Gas the sectoral cap remains unchanged at 49%
- Power exchanges route changed to automatic; cap remains same as 49%
- In insurance sector FDI cap will be 49% through automatic route
- Asset reconstruction companies: FDI cap upto 49% through automatic route. From 49% to 100 % it will be through FIPB route
- In tea sector, condition of divestment to Indian partners deleted
- In single brand retail, FDI upto 49% it will be under automatic route; beyond 49% it will be through FIPB route
- No change of route in civil aviation sector for now
In defence sector, 26% through FIPB route stays; for state-of-art technologies, FDI beyond this to be approved through CCS.