India - Partner In Growth
Welcome to the May 12, 2016 bulletin of key policy decisions and high-impact news from India, presented by the Embassy of India, in Washington D.C.
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KEY POLICY DECISIONS
100% FDI in Asset Reconstruction Cos. OK'd 

The Government has relaxed foreign direct investment (FDI) rules for asset reconstruction companies by allowing 100 percent overseas investments through the automatic route. This is up from the earlier limit of 49 percent.    
 

Govt. to Build 621 Miles of Expressway for $2.5 Billion 
The Government plans to spend $2.5 billion to build 621 miles of expressway. The new expressway will be built in areas of the country with the highest-volume traffic in order to ease congestion and speed travel. 
   
 
Govt. to Spend $451 Million per Year to Boost Nuclear Power 
To increase investment in nuclear power generation, the Government is preparing a comprehensive plan spanning the next 15-20 years with a proposed budget of $451 million per year, the Lower House of Parliament was informed. Recent regulatory changes allow the Nuclear Power Commission to seek equity participation from other state-owned firms to raise additional capital

Commerce Ministry Launches Export-Import Analytics Dashboard 

As part of the Government's initiative to provide easy public access to export and import trends, the Commerce Ministry has launched a dashboard on export-import analytics. These simple-to-use dashboards will give the public an accurate picture of Indian trade. 
 
 
India One Step Closer to Passing Modern Bankruptcy Bill

India has moved a step closer to adopting a new bankruptcy law after passage by the Lok Sabha (lower house of Parliament). After its approval by the Rajya Sabha (upper house), the law will ensure timely settlement of insolvency, enable faster turnaround of businesses and create a database of serial defaulters.
 

HIGH-IMPACT NEWS
India's Air Traffic Up 27% in March, Tops In the World

Domestic air traffic in India grew 27 percent in March, the world's fastest rate and about six times higher than in the U.S., according to the International Air Transport Association. India outperformed all other markets because of a combination of increased capacity and low fares. 

Airbnb: India $40 Billion Travel Market by 2020 

Accommodations-listing site Airbnb sees India as a $40 billion travel market by 2020. In April, Airbnb entered into a strategic partnership with India's Times Group to expand its footprint in India and create a local experience. 


Govt.: Railways Attracts $6.3 Billion Foreign Direct Investment
The Government has said Indian Railways has attracted foreign direct investment (FDI) of $6.3 billion and will soon float tenders for manufacturing rail coaches in the country. Railways Minister Suresh Prabhu said the Government is planning to build new dedicated freight corridors that will attract additional investment.

   

Q1 M&A Activity at its Highest Since 2012 

Mergers and acquisitions worth $8.2 billion were closed in India during the first three months of 2016, according to MergerMarket, a global deal-tracking platform. The amount is the highest since 2012 and an increase of 5.2% over the same period last year. The construction sector was the most active in terms of deal-making. 

 

Telecom Minister: Internet Users in India to Cross 500 Million in 2016 

The number of Internet users in India is likely to cross 500 million this year, according to Ravi Shankar Prasad, Minister for Communications and IT. India has now around one billion mobile subscribers, he added. People in India, especially at grass-root levels, are using technology to transform their lives. 
 
 

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