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US-India trade group welcomes liberalised FDI norms

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source: www.raps.org

Washington: The US-India Business Council (USIBC) applauded the Indian government’s latest reforms liberalising FDI norms in industries that are starved for capital and enable the ease of doing business in the country.

“Putting more FDI proposals through the automatic route is clear signal that the government is living up to the mandate of minimum government and maximum governance,” USIBC president Dr Mukesh Aghi said.

USIBC comprises 350 top-tier US and Indian companies.

“India’s recent rise in World Bank’s Ease of Doing Business, the ruling on Minimum Alternative Tax (MAT), its efforts to modernise the railways network, lifting of FDI in the insurance sector are all significant achievements that will propel more investment and innovation in the country,” he said.

“USIBC member companies are encouraged by the Government’s efforts to undertake economic reforms and stay away from politically driven distractions.”

“India continues to see increased FDI despite an uncertain global outlook. If the government continues on the current trajectory of bold (FDI and regulatory) reforms, then India will easily surpass the $41 billion in FDI from US companies,” Aghi said.

During Prime Minister Narendra Modi’s visit to Washington in Sep 2014, USIBC had identified upwards of $41 billion slated for investment from members over the next three years, based on a survey of 20 percent of USIBC’s membership.

Emphasizing the benefit of a more open economy, Aghi said, “Allowing a path to relax the norms for sourcing for single brand retailers who sell cutting edge technology will clear many of the challenges that high-tech companies have had when it comes to taking advantage of the 100 percent opening of the single brand retail sector.”

“In construction development, removal of two major conditions on minimum requirements area restriction of 20,000 square metre and capitalisation of US$ 5 million will provide much-needed boost to investment in the real estate development sector.”

The Council is keen on further reforms in these sectors and additional liberalisation that will aid the growth of bilateral trade, Aghi added.

“FDI in business to e-commerce still remains restricted. As a result, smaller Indian e-commerce companies cannot seek the capital they need to grow their business and hire more employees. USIBC will continue to urge the Department of Industrial Policy & Promotion (DIPP) to allow at least 51 percent FDI in e-commerce,” he said.

(IANS)

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Bhai Boolchand-the Indian who launched trade with Ghana

The first Indian to arrive in the Gold Coast (Ghana's colonial name) in 1890 , Bhai Boolchand launched trade in India with Ghana

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Ghanian flag, Bhai Boolchand launched trade in India with Ghana.
Ghanian flag, Bhai Boolchand launched trade in India with Ghana. pixelbay
  • Bhai Boolchand, the anonymous Indian, is credited with starting trade between Ghana and India
  • The year was 1890.

Not much is known about him, but it has now emerged that trade relations between Ghana and Indiawere started by Bhai Boolchand, the first Indian to arrive in the Gold Coast — Ghana’s colonial name — in 1890. That’s some 67 years before the British colonial government granted the country independence, research by the Indian Association of Ghana has found.

“As far as our records show, Bhai Boolchand (of the Bhaiband Sindhworki trading community), landed on the shores of the Gold Coast in western Africa in 1890. Nearly twenty years later, in 1919, the first Sindhi company was established by two brothers — Tarachand Jasoomal Daswani and Metharam Jasoomal Daswani,” the Indian Association said.

The duo opened a store — Metharam Jassomal Brothers — in the then capital city of Cape Coast in 1919.

“Their business flourished and branches were opened in Accra and Kumasi. A few years later, the two brothers separated and whilst Bhai Metharam Jasoomal continued the business as Metharam Brothers, Tarachand Jasoomal operated his business as Bombay Bazaar. These were the first two Indian companies that were established in the Gold Coast,” the Association said.

Boolchand’s arrival, therefore, pre-dates the historical links between the two countries that were always thought to have started between Ghana’s first President, Kwame Nkruman, and India’s first Prime Minister Jawaharlal Nehru. Boolchand can thus be described as the one who paved the way for the arrival of other members of the Sindhi community, initially as traders and shopkeepers.

The Indian Association said more of this group arrived in the 1950s and 1960s, with a few venturing into manufacturing industries such as garments, plastics, textiles, insecticides, electronics, pharmaceuticals and optical goods.

The Association said two more Indian firms were established under the names of Lilaram Thanwardas and Mahtani Brothers in the 1920s. This trend continued in the 1930s and 1940s with the creation of several more Indian companies like T. Chandirams, Punjabi Brothers, Wassiamal Brothers, Hariram Brothers, K. Chellaram & Sons, G. Motiram, D.P. Motwani, G. Dayaram, V. Lokumal, and Glamour Stores.

Glamour Stores, which was stared by Ramchand Khubchandani who arrived in Ghana in 1929, has grown — after changing its name to Melcom Group — to become the largest retailing business in the country. The Melcom Group, headed by Ramchand’s son Bhagwan Khubchandani, is now in its 60th year and about 40 stores all over the country.

Ramchand and his brother later went into garment manufacturing in 1955 and once employed over 1,200 Ghanaians. They later opened the first Indian restaurant, Maharaja, in Ghana. Bhagwan followed in his father’s footsteps and in 1989 established the Melcom Group with his sons-in-law, Mahesh Melwani and Ramesh Sadhwani.

Another Indian-owned company that has survived through the years is the Mohanani Group, which is currently in its 51st year. At the first-ever Ghana Expatriate Business Awards, the Ministry of Trade and Industries recognised the work of one of the thriving Indian-owned B5 Plus Steel Company and awarded it the Best Expatriate Company in the metal and steel category.

As these companies brought in new expatriate staff, some left their employers to venture out on their own — resulting in more companies opening up.

“After 1947, the Gold Coast attracted the attention of some Indian multinational companies, and big names like Chanrai, Bhojsons, K.A.J. Chotirmal, Dalamals and A.D. Gulab opened branches in Ghana,” the Association said.

“The employment of Ghanaians by these founding companies also helped to lessen the burden of unemployment in the country. This amply demonstrates the level of commitment India has in the developmental agenda of Ghana,” it said.

Indians are not only investing in the manufacturing and commercial sectors of the country; they are also investing in the financial sector. Bank of Baroda, one of India’s biggest and most reputable banks, recently established a branch in Ghana and hopefully it will expand its operations in other parts of the country very soon. (IANS)

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With 100% FDI, Narendra Modi calls Food Sector a Priority in Make in India Programme

Modi said India with its rich legacy of spices could provide solutions and offer a win-win partnership as the world was becoming increasingly averse to the use of artificial colours, chemicals and preservatives.

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Prime Minister Narendra Modi. Wikimedia

New Delhi, November 3, 2017 : Prime Minister Narendra Modi on Friday said the food sector that allows 100 per cent foreign investment was the priority in the government’s ambitious Make In India programme.

Launching a three-day global conference on the food industry here, Modi said food processing was an age old practice in India and simple, home-based techniques like fermentation had resulted in the creation of our famous pickles, papads, chutneys and murabbas that now excite both the elite and the masses across the world.

He said the government had taken a range of transformational initiatives to make the country most preferred investment destination in this sector.

It is priority sector in our ‘Make in India’ programme. 100 per cent Foreign Direct Investment is now permitted for trading including through e-commerce of food products manufactured or produced in India, Modi told the World Food India conference that will see the participation of over 2,000 delegates from 200 companies from some 30 countries.

Apart from representatives of 28 states, it will also see participation of 18 ministerial and business delegations, nearly 50 global CEOs along with heads of all leading domestic food processing companies.

Modi said a single-window facilitation cell provided hand-holding for foreign investors and there were attractive fiscal incentives from the Union and state governments.

Loans to food and agro-based processing units and cold chains are classified under priority sector lending, making them easier and cheaper to obtain, the Prime Minister said.

Modi said the recently launched unique portal – Nivesh Bandhu (investor’s friend) – would bring together information on central and state government policies and incentives provided for the food processing sector.

He said private sector participation had increased in many segments of the value chain but sought more investment in contract farming, raw material sourcing and creating agri linkages.

There were opportunities in post-harvest management such as primary processing and storage, preservation infrastructure, cold chain and refrigerated transportation, the Prime Minister asserted.

There is immense potential for food processing and value addition, especially in niche areas such as organic and fortified foods.

Modi said India with its rich legacy of spices could provide solutions and offer a win-win partnership as the world was becoming increasingly averse to the use of artificial colours, chemicals and preservatives.

Modi said the Pradhan Mantri Kisan Sampada Yojana aimed at creating world class food processing infrastructure was expected to leverage investment of $5 billion, benefit two million farmers and generate more than half a million jobs over the next three years.

Narendra Modi said the government was planning to link agro-processing clusters with production centres through Mega Food Parks, which will offer immense value proposition in crops such as potato, pineapple, oranges and apples.

Minister of Food Processing Industries Harsimrat Kaur Badal in her address said agreements worth $10 billion were expected to be signed during the three-day global event.

Our demand of food is set to double over the next five years. Being six largest food and grocery market in the world, India is a destination that merits global attention in the food sector.

She said there was a need to wage war on food waste to ensure adequate food for all and to avoid a food crisis as the world’s population was set to increase by 25 per cent and the demand for food by 50 per cent by 2050. (IANS)

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Government approves FDI proposals worth Rs 24.56 cr

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FDI
Government approves FDI proposals worth Rs 24.56 cr

The government on Thursday said that it has approved foreign direct investment (FDI) proposals worth Rs 24.56 crore, including one from Sterling Commerce Solutions India.

“During the month of October, the Department of Economic Affairs (DEA), Ministry of Finance has disposed off three FDI proposals aggregating to foreign investment of Rs 24.56 crore,” an official statement said.

 The proposal of Sterling Commerce Solutions India, worth Rs 24.56 crore of FDI, has been approved that seeks to issue shares to the shareholders of three wholly owned subsidiaries of IBM India upon their merger with the company.

Another proposal from Arval India, which does not require any additional FDI, has been approved to undertake the activity of financial lease in addition to the current activity of operating lease, the statement said.

The ministry said that a proposal from Ivanhoe India Equities Inc to provide investment advisory services to overseas entities by a yet to be incorporated Indian investee company has been returned as it was premature.(IANS)