IANS news in Economic Times

The world may fret over a possible US recession but the strong economies of India and China can act as “two engines of growth” to counter its global effects, India’s Commerce Minister Kamal Nath said here Wednesday.

Nath, who is in a power-packed Indian delegation of 80 at the annual meeting of the World Economic Forum (WEF) in this snow-clad Swiss mountain resort, also coupled his comments with guarded optimism over the stalled Doha Round of trade talks.

“I am optimistic this Davos will create a greater momentum towards conclusion,” Nath said, referring to process to restart talks at the World Trade Organisation (WTO) that have made little headway due to charges of protectionism by rich and developing nations.

“I am also realistic that there is an election in the US. I am realistic that Europe is in a new phase of protectionism,” he said, even as he sought to spell out the importance of India and China to the world economy today.

“This is the first time the world is looking at a possible recession with two engines of growth - India and China,” he said, in the first significant comment by a political leader to the 2,500 delegates gathered here.

“No economy can totally decouple itself from the US.”

Although the US economy consumed goods and services worth $9.5 trillion last year, Nath said it would be important to see how much of that was wiped out by the “current crisis”.

But with greater South-South trade between developing countries, particularly India and China, he said “the magnitude of the trade can’t be the same as in the past.” Read the rest of this entry »

Economic Times reports

India has the most number of private equity (PE) funds operating amongst the BRIC markets, considered the emerging hotbed of PE action.

According to Emerging Markets Private Equity Association (EMPEA) estimates, there are some 89 VC/PE firms managing 153 funds in Brazil, about 28 firms in Russia and 115 in China while India has over 160 firms.

About 120 of these India-focused firms are either those who have raised money from outside India or are subsidiaries of non-Indian VC/PE firms. Experts opine that a growing economy, especially on the domestic side, increased entrepreneurial activity and the IT/ITeS effect is attracting newer investors to the country.

The huge number of experienced techies returning to India and setting up companies has also increased the exposure of Silicon Valley venture firms to the country.

Evalueserve’s chairman Alok Aggarwal said the regions that have traditionally received large amounts of VC/PE funding include US, UK, Canada, Germany, France, Nordics (i.e., Sweden, Finland and Denmark put together) and Taiwan. With the 2007 investment figures of $13.5 billion, India will leapfrog into the top seven regions in the world.

This increased deal activity is having its effect. “Another 40 firms are in the process of raising money for investing in Indian market,” he adds. For the record, there are different estimates by different agencies on total investments into India for 2007 ranging from $9.9 billion to $14.2 billion.

While India saw the arrival of billion dollar plus funds during the year 2007, analysts expect the country to see PE commitments of around $40 billion by 2010-11.

Alok Mittal of Canaan Partners argued that more funds could be operating in India because of the bigger investment opportunities available, compared to China or Russia, for instance. “Probably more sectors in India are open to private fund raising,” he added, explaining that a sector-wise comparison between markets like China and India could throw up interesting data.

Finally Ratan Tata’s dream has come to reality. He said ” A promise made is a promise made ” while driving the car to the podium at the auto expo in New Delhi. The car looks cute and comes in three different colours. Despite all odds and critical remarks the Tata team has overcome all conflicts and dilemmas to shape their first release. Hats off Tata Motors.

More info on www.tatapeoplescar.com