January 3rd, 2012
03:41 AM GMT
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(CNN) – India announced plans to allow foreigners to invest directly in domestic companies listed in one of the world’s fastest growing economies.

The government “decided to allow qualified foreign investors to directly invest in Indian equity market in order to widen the class of investors, attract more foreign funds, and reduce market volatility and to deepen the Indian capital market,” according to a New Year’s Day statement from India’s Finance Ministry.

Before only institutional investors and Indians living abroad were allowed to invest directly in local companies. The move will allow individuals to buy as much as 5% of a company’s shares. Total shares owned by foreigners, however, will not be able to exceed 10% of a company’s capital, the ministry said. The new rules are expected to take effect January 15.

While among the world’s fastest growing economies, India’s breakneck growth slowed in 2010, slipping to 6.9% in the quarter ending in September – it’s lowest growth rate in more than two years.

India, the world’s most populated democracy, has been involved in a political tug-of-war in recent months over whether to drop prohibitive restrictions on foreign investment in its burgeoning domestic market. The government approved a plan in November to open its retail sector to mega-store foreign competitors such as Wal-Mart and Carrefour, only to backtrack days later after a populist backlash against the plan, fearing it would hurt small local stores.

The nation’s airline industry – hammered by rising fuel costs and the sagging rupee, which fell 16% against the dollar last year – has been in crisis, renewing calls to allow foreign airlines to invest in Indian carriers. At present foreign institutional investors are allowed to acquire up to 49% in Indian carriers but foreign airlines are banned from investing directly or indirectly in domestic carriers.

“This would be an important change because investment by foreign airlines brings with it all kinds of advantages, not least expertise in airline management and other synergies,” Tom Ballantyne, the chief correspondent with Oriental Aviation, recently told CNN. “At the moment, however, in this sort of economic climate, the airlines are having trouble attracting any sort of investment at all.”

Officials hope lowering investment barriers on Indian domestic companies will boost India’s appeal as a foreign investment destination. India received less than $20 billion in foreign direct investment in the first six months of 2011, while China attracted three times as much during the same time period.

The Sensex, India’s benchmark index, fell 25% last year, making the bourse one of the world’s worst performing markets in 2011, according to the Financial Times.



soundoff (38 Responses)
  1. shoeupon67

    NEWS -. BANK RUN -TRINIDAD AND TOBAGO.CARIBBEAN. WEST INDIES, REPUBLIC , ROYAL , FIRST CITIZEN and SCOTIABANK . Customers are simultaneously closing their accounts fearing imminent bankruptcy and insolvency. Already failed in the same countries two large financial corporations CLICO and HCU. [ Global News Network ]

    January 3, 2012 at 4:17 am |
  2. Rohit

    Go India go!

    January 3, 2012 at 4:19 am |
  3. Ya buddy

    Sweet. Got to start looking for up and comers there.

    January 3, 2012 at 5:34 am |
  4. Economic reform

    Problem with a country like India is they are too slow and late in doing reforms, and stuff like this is too little too lates. I am afraid India will never reach its full potential thanks to the people who run the nation (regardless or party) they have no sense of urgency. They are really out of touch with global economic trends.

    China is the one we should all be watching .

    January 3, 2012 at 5:55 am |
  5. China cant do it by itself

    It takes two to tango, or shall I say two or more. The Chinese, notroius for reverse engeneering and stealing anything and anywhere, can be a great FDI destination but not a trustworthy partner for more high tech R&D for wester firms. I just came back from India and saw a Lab from GE doing research on a new engine they are planning to make. They have it in India, this type of thing will be unimaginable in China, as they will steal and make it themselves. SO yes India is slow, but it has bright future.

    January 3, 2012 at 6:13 am |
  6. kalooo

    INdia is only country in the world which buys defence equipement from both Russia and USA. Both the former cold war enemies trust INDIA to sell their hi-tech equipment without any fear of the other side getting to know their technology.

    January 3, 2012 at 6:27 am |
  7. Big Bush

    But we don't trust the Indian stocks and we don't want to invest there.

    January 3, 2012 at 7:59 am |
  8. Bruno

    @Big Bush – Thanks for letting us know you don't want to invest your $100 in Indian stocks.

    January 3, 2012 at 9:56 am |
  9. S. L. Hall

    The East India Company was an early English joint-stock company that was formed initially for pursuing trade with the East Indies, but that ended up trading mainly with the Indian subcontinent and China. The East India Company traded mainly in cotton, silk, indigo dye, saltpetre, tea, and opium. The Company also came to rule large areas of India, exercising military power and assuming administrative functions, to the exclusion, gradually, of its commercial pursuits; it effectively functioned as a mega corporation. Company rule in India, which effectively began in 1757 after the Battle of Plassey, lasted until 1858. The British rule continued till 1947. USA is following the steps of Great Britain to occupy India.

    January 3, 2012 at 10:37 am |
  10. EA Marco Polo

    Mainland China's BYD launched first plug-in hybrid cars in the world, and has most advanced technology on battery.

    Now Mainland China has biggest high speed train system, this month the new prototype of high speed train has surpassed 500 km/per hour. But the US still has no high speed train. ROC Taiwan also has most world patents on computer mother board.

    After 2019, Chinese civilization will start to restore, then an innovative and brilliant China will appear gradually. India opens up to foreign stock investors; in the future Chinese could be the big investors on India.

    January 3, 2012 at 10:41 am |
  11. Into_soul

    never trust Indians nor any plan to invest there !!

    January 3, 2012 at 10:55 am |
  12. gliese42

    i really wish India the best but scenes or corruption and the way its domestic market is controlled whereas China has open its market to foreign retail corporations like Carrefour and Tesco just show India has a lot to learn

    January 3, 2012 at 10:55 am |
  13. gliese42

    typo error..or should be of

    January 3, 2012 at 10:56 am |
  14. EA Marco Polo

    India should set a significant national goal: "India's GDP to surpass the UK in 2021". (Although at same year ROC Taiwan's export might surpass the UK, and China's GDP might be 5 times than India from current 3.5 times.) India and China should unite together to form a prosperous Asian Union. India could be successful on various fields!

    January 3, 2012 at 11:02 am |
  15. Ranjeet

    Reply to Into_soul : We dont trust Pakistanis like you 2 :D

    January 3, 2012 at 11:44 am |
  16. Into_soul

    yes, pakistanis are culprits just like indians

    January 3, 2012 at 12:37 pm |
  17. Porklover

    Go India Go.. Jai Hind

    January 3, 2012 at 1:52 pm |
  18. martins

    india should carry the rural peopel along the line of development not to act like china, is peopel that makeup a country not technology country growth without the peopel growth is useless

    January 3, 2012 at 2:58 pm |
  19. Burrkie

    I LOVE Indian women, they got nice behind :) I mean, just take a look at THAT pic with the bull, I want to DO her :))

    January 3, 2012 at 3:08 pm |
  20. AcclaimedMan

    Hey Burrkie, how we know you can satisfy her? First try with your sister and get a letter of recommendation from her related to that !!!!

    January 3, 2012 at 5:10 pm |
  21. Inidan nationalist

    @Burrkie- shawty got back, yo!

    The investments should be vetted for any China involvement. China's neocolonialism is the world's greatest threat.

    January 3, 2012 at 5:26 pm |
  22. jesus

    USA neocolonialism is by far the most greatest threat.
    The Iraq war killed 170000 people.97% were civilians (women,children,men).

    January 3, 2012 at 5:44 pm |
  23. fuzzball

    Why is the woman in the picture throwing flowers on the symbolic bull statue of the financial markets? Does she think it's sacred or is she praying for a bullish market?

    January 3, 2012 at 6:04 pm |
  24. Edward

    India is the most corrupt nation on earth.

    They worship monkeys for goodness sake.
    Stay away.

    January 3, 2012 at 7:06 pm |
  25. Bill Rich

    Wish India did it in 1949. That would have changed the world by now. 50 years of planned economy and investment control kept India poor.

    January 3, 2012 at 7:07 pm |
  26. Edward

    All Indians want to do is get a VISA to the US or UK. LOL.

    January 3, 2012 at 7:08 pm |
  27. Porklover

    edward...
    and ur jealous arss is trolling here lol

    January 3, 2012 at 7:53 pm |
  28. British Jealousy

    Watch out for British Jealousy in the comment's section here.

    British Ego's will be the funnest to BURST! ...

    I don't think India is opening its markets to the BRITISH haha! .. Britain is worth nothing. China & India have a stronger Partnership than the Britain & USA. ... the american's call them there poodles ffs.HAHA!

    January 4, 2012 at 2:56 am |
  29. m.s.mohamed ansari

    RUSH SAVE GLOBAL ECONOMIC TSUNAMI

    M.S.Mohamed Ansari 13 April 2009

    All press and Media Arabs leader and G20 leader at. Headquarters of All association
    CONGRESS. CONTROLL
    By. A TO Z + 8. QUEEN + 8
    Royal wedding. And royal security force 10 generation total cost $ 57 trillion
    Each every politician rolling 8 years only just like chess board Game
    But queen family enjoying 10 generation y

    GLOBAL ECONOMIC COLLAPSE REASON WAR. Improve Economy only 6 points. Peace, prayer
    Liberty, Unity, friendly And simplicity.

    I am also Happy to kill osma bin laden
    Turing point of global Economy. Islam not allowed to be Terrorist and Terrorist people are not a Muslim
    1. Please avoid war. Day by Day war cost increase $ 3.5 trillion
    2. Global economy and food price every Day increase
    3. International job less Y. All businessmen effected business.
    4. Global financial crisis every CNC manufacture. New technology energy product Effected FDI investors.
    5. Every Day OPEC Oil Price Increase
    6. World poverty problem. Bankrupt 170 Bank overalls 87000 Branch
    7. Each every single man Effected
    8. Ignore future Death million of already Death
    9. Million of People Wounded
    10. Global environment climate will be change this will lead Global Agriculture problem

    Copy.
    A. International criminal court. B. white house. global human right association .C.IMF
    D. euro union. E. united nation F.ALL international famous press and media

    JUSTICE IS IN PERIL. SAVIOUR OF INTERNATIONAL JUSTICE ALONE CAN PROTECT HUMANITY

    From. Mr.M.S.Mohamed Ansari,
    154, Angappa Naicken Street,
    Chennai – 600 001.
    Tamil Nadu,
    INDIA..
    To , The Hon’ble Chief Justice,
    The Supreme Court,
    United States of America,
    Washington, D.C.
    Fax no: 213.547.8080
    Dear Sir,
    Sub: Prosecution of previous President Mr. George W.Bush, for violation of International Code of Conduct.
    Mr. George W.Bush, the previous President of United States of America, initiated a war against IRAQ, without obtaining the previous sanction of United Nations Organization (UNO) on the pretext of having nuclear weapons, even though the then IRAQ government openly exhibited to the whole world that it has no nuclear weapons.
    According to the CNN WORLD report, in the war 6, 75,000 civilians killed, 7500 troops of USA and its allied forces killed 3 25 000 people wounded and $ 3.5 Trillion Dollar spent for the war. This spending of $ 3.5 Trillion Dollar is the main cause of action for the present economic crises prevailing all over the world.
    After winning the war against IRAQ, the United States of America’s President Mr. George W.Bush, also admitted the same fact, and he openly stated that the Intelligence agency misguided him.
    Later on, even the United Nations Organization (UNO) also certified that the IRAQ has no nuclear weapons.
    Then it is the bounded duty of the United States of America and its allied forces to withdraw from IRAQ.
    But instead of withdrawing from IRAQ, the United States of America and its allied forces formed a government in IRAQ, under their control and administered the entire IRAQ, and its peoples.
    This indicates a clear violation of duty by the President of United States of America Mr. George W.Bush and also a clear case of violation of the International Code of Conduct for UNO members.
    Thus Mr. George W.Bush attracts prosecution for the above said offence.
    Thus I hereby pray this Hon’ble Court initiate criminal proceedings against Mr. George W. Bush, and give him maximum punishment for
    a) initiating the war against the IRAQ
    b) killing its innocent IRAQI peoples civilian 6, 75 000
    c) Killing troops of USA and allied forces and 7 500
    d) The present economic crises.
    e) 3 25 000 civilian and coalition 39 000 wounded
    Dated on this day of 13th day of April, 2009.
    Yours truly, (M.S.MOHAMED ANSARI)
    COPY TO
    The Chief Justice, the International Court of Justice, The Hague, Netherlands.
    The Secretary General United Nations Organization
    The Chief Justice, the Supreme Court, IRAQ.
    His Excellency Mr.Barack Obama, the President of United States of America, White House, Washington D.C.

    January 4, 2012 at 6:25 am |
  30. Choco monster

    I'm pulling out all my china stocks and going India. Eff tha chinese.

    January 4, 2012 at 6:43 am |
  31. Happy news

    http://youtu.be/zXKV78VERio
    Come and Check. Good News!!

    January 4, 2012 at 2:12 pm |
  32. neverthere

    All the east indians that I know are either stuborn or two faced, or both. I would never do business with those clowns.

    January 5, 2012 at 7:04 am |
  33. sss

    @Edward.. You have no clue where human cam from?...Anyway, do you know how GOD looks like? No body knows, right...Until you know that, you can see GOD in anything.

    January 6, 2012 at 2:44 am |
  34. rohan

    i accept what Mr.sss says....
    Its really uncivilized to comment on other peoples beliefs.
    And corrupt people are everywhere . I hope Mr.Edward would have broken law at least once i his life.
    well.. its quite easy to blame others

    January 6, 2012 at 3:31 pm |
  35. Mohak

    hate pakis they r stinky and green

    January 7, 2012 at 10:27 pm |
  36. M.S.MOHAMED ANSARI

    சேர்ந்த சகோதரர் எம் எஸ். முஹமது அன்சாரி அவர்கள், உலகளாவிய பொருளாதார சீரழிவிற்கான காரணங்களாக கீழ்க்கண்ட செய்திகளை குறிப்பிட்டுள்ளார்.

    போர்களினால் ஏற்படும் விளைவுகள்..

    1. உலகமெங்கும் நடைபெற்றுவரும் போர்களினால் ஒவ்வொரு நாளும் 3.5 டிரில்லியன் அமெரிக்க டாலர்கள் செலவாகிறது. இது ஒவ்வொரு நாளும் மேலும் மேலும் அதிகரிப்பதினால் பொருளாதார சீரழிவு ஏற்படுகிறது.

    2. அன்றாடம் அத்தியாவாசியப் பொருட்களின் விலை அதிகரித்துக்கொண்டே போகிறது..

    3. தொழில்கள் பாதிக்கப்படுவதால் உலகளாவிய வேலை இழப்பு, மற்றும் வியாபாரம் இன்மை.

    4. உலகளாவிய நிதி நெருக்கடியால், புதிய தொழில்களுக்கான அந்நிய முதலீடுகள் கிடைக்காமல் போகிறது.

    5. பெட்ரோலியப் பொருட்கள், மற்றும் கச்சா என்னை விலை ஏற்றம்.

    6. உலகமெங்கிலும் வறுமை. மேலும் 170 வங்கிகளின் 87000 கிளைகள் திவாலாகி உள்ளன.

    7. ஒவ்வொரு தனி மனிதனும் பாதிக்கப்பட்டுள்ளான்.

    8. ஏற்கனவே மில்லியன் கணக்கான மக்கள் கொல்லப்பட்டுள்ளனர், இன்னும் மில்லியன் கணக்கில் மக்கள் கொல்லப்படுவார்கள்.

    9. மில்லியன் கணக்கில் மக்கள், உடலளவிலும் மனதளவிலும் காயம்பட்டுள்ளனர்.

    10. போர்களில் பயன்படுத்தப்படும், நச்சுக்கிருமிகளால் சுற்றுச்சூழல் பாதிக்கப்படுவதால் விவசாயம் பெருமளவில் பாதிக்கப்படுகிறது.

    இந்த செய்தி கீழ்க்கண்டோருக்கு அனுப்பப்பட்டுள்ளது :

    சர்வதேச குற்றவியல் நீதிமன்றம். , வெள்ளை மாளிகை, . உலக மனித உரிமை சங்கம்., CIMF,
    யூரோ தொழிற்சங்கம், ஐக்கிய நாடுகள் சபை, அனைத்து சர்வதேச புகழ் பெற்ற பத்திரிகை மற்றும் ஊடகங்கள்

    இந்த இணைப்பை பார்க்கவும்

    அமெரிக்காவின் முன்னாள் ஜனாதிபதி ஜார்ஜ் புஷ் – ஐக்கிய நாடுகள் சபையின் அனுமதி பெறாமல் ஈராக்கில் அணு ஆயுதம் உள்ளது என்று அந்நாட்டின் மீது போர்தொடுத்தார்.

    C.N.N. WORLD அறிக்கையின்படி, 6, 75,000 பொது மக்களும், அமேரிக்கா மற்றும் அதன் நேசப்படைகளை சார்ந்த 7,500 பேர்களும் கொல்லப்பட்டுள்ளனர். 3,25,000 மக்கள் காயமடைந்துள்ளனர்.
    அந்த போருக்காக மட்டும் 3.5 டிரில்லியன் டாலர்கள் செலவழிக்கப்பட்டது. இப்போதுள்ள உலகளாவிய பொருளாதார நெருக்கடிக்கு இந்த செலவுதான் முக்கியமான காரணமாக அமைந்தது.

    அனால் அந்த போருக்கு பின்பு, ஜார்ஜ் புஷ் – உளவுப்பிரிவின் தவறான வழி காட்டுதலால்தான் ஈராக் மீது அமெரிக்கா போர் தொடுத்தது என்பதை ஒப்புக்கொண்டார்.

    பிறகு, ஐக்கிய நாடுகள் சபைகூட ஈராக்கில் பேரழிவு ஆயுதங்கள் இல்லை என்று பிரகடனப்படுத்தியது.

    இதன் காரணமாக ஜார்ஜ் புஷ் பீது சர்வதேச நீதிமன்றத்தில் எம் எஸ் முகமது அன்சாரி வழக்கு தொடர கீழ்க்கண்ட காரணங்களை சர்வதேச வழக்கு மன்றத்திற்கு அனுப்பி வைத்து அது நிலுவையில் உள்ளது.

    1. ஈராக்கிற்கு எதிரான போரை முன்னெடுப்பது

    2. 6,75,000 அப்பாவி ஈராக் பொதுமக்கள் கொல்லப்பட்டது

    3. தற்போதைய பொருளாதார நெருக்கடி

    4. 3,25,000 பொதுமக்கள் மற்றும் 39,௦௦௦ படையினர் காயமுற்றது.

    இந்த இணைப்பை பார்க்கவும்

    முன்பு அமெரிக்க பொருளாதார அமைச்சகத்தின் இயக்குனராக அதிராம்பட்டினம் அன்சாரி என்ற தலைப்பில் வெளியான கட்டுரையில் தொடர்ச்சி இது..

    March 7, 2012 at 2:38 pm |
  37. dow jones

    You know thus considerably in relation to this matter, produced me personally imagine it from numerous numerous angles. Its like men and women aren't involved until it's something to do with Girl gaga! Your personal stuffs nice. All the time deal with it up!

    April 5, 2012 at 6:52 pm |
  38. icon library

    I am final, I am sorry, but it at all does not approach me. Perhaps there are still varuants?

    hpixel

    September 23, 2012 at 4:16 pm |

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