THE JEWEL OF THE BRIC CROWN

India is the preferred destination for Doing Business among the emerging BRIC countries, comprising of Brazil, Russia, India and China based on key factors that include, protecting investors’ interest; getting credit; employing workers; starting a business; and trading across borders, according to the rankings in the global report on ‘Doing Business 2009’ by the World Bank and its affiliate the International Financial Corporation.

India occupied the top slot in three of the parameters – protecting investors, getting credit and employing workers; while emerging second in trading across borders and starting a business. India’s improving business environment is a reflection of the regulatory reforms by the Government to bring uniformity in urbanisation across its regions to bridge the urban-rural divide, representing what it calls an “inclusive approach” to development.

This approach is reinforced in the Financial Budget 2009-10 announced by the Indian Finance Minister on July 6, committing increased investments in the infrastructure sector to more than 9% of the Gross Domestic Product (GDP) by 2014 from 5% currently, apart from other rural development and welfare programs. This opens scope for investment opportunities, in the form of Public Private Partnership (PPP) developments that the government has championed.

Regional variations remain, however, due to internal pressure groups and anti-reforms voices within certain state governments. Cities such as Ludhiana in the north Indian state of Punjab; Bhubaneshwar, capital of the eastern coastal state of Orissa; Ahmedabad in the western state of Gujarat and Hyderabad, capital of the south Indian state of Andhra Pradesh rank high in ease of doing business. In contrast, Kolkata, the capital of the East Indian state of West Bengal ranks lowest.

INDIAN MARKET BETTER OFF THAN ASIAN PEERS, BRIC

Even though bears have minced domestic markets considerably, has the decline in commodity or energy prices helped the domestic stock market perform better than its Asian peers and other BRIC constituents? While crude prices tumbled by around 60% since its July 11 peak and a 40-50 % correction has set in metals and agro-commodities, the Indian stock market has fallen by 27% from mid-July - which is much less than its Asian and BRIC peers, analysis shows. Equity markets in other comparable Asian countries such as Korea (-29 %), Taiwan (-32 %), Japan (-35 %), Hong Kong (-37 %) and Singapore (-39 %) have sharply fallen even as the commodities' tide turned.

The Economic Times

FIIs BETTING ON INDIA AS AN OIL HEDGE

Some foreign institutional investors, or FIIs, the largest investor class in the Indian market, could start reallocating capital here as they bet on further meltdown in crude oil prices, even as several equity strategists at large global brokerages appear to be reaching a consensus on the merits of such bets.

MINT

India 2nd optimistic employer in BRIC nations

Employment across BRIC region (Brazil, Russia, India and China) is likely to increase with the country expected to be the second most optimistic nation in terms of expanding its workforce over the next 12 months, says global consulting major KPMG.

Growth of employment is expected to be the strongest in Russia with almost half of Companies set to increase workforce numbers, while India followed suit and emerged as the second most confident nation

The Financial Express
http://www.financialexpress.com/news/
India-2nd-optimistic-employer-in-BRIC-nations/312671/0

India tops with 160 PE fund houses, China has 115

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.

The Economic Times
http://economictimes.indiatimes.com/
India_tops_BRIC_markets_in_PE_funds/
articleshow/2700237.cms

Forex Reserves to touch $300 bn

On the back of robust foreign inflow due to sub-prime and other crises in the West, India's foreign exchange reserves are expected to rise by USD 100 billion to touch USD 300 billion mark by the end of current fiscal, the Institute of Economic Growth (IEG) has said.

The Financial Express
http://www.financialexpress.com/news/
Forex-Reserves-to-touch-300-bn-IEG/255800/

World's top IPO - $8-bn; India's total - $8.3-bn

Indian bourses saw over eight billion dollars worth of initial public offers in 2007, but this is just a shade higher than the world's single-largest IPO that was brought by a Russian company, latest data show. The worldwide IPO activity raised a record capital of 255 billion dollars till November in 2007, including 8.3 billion dollars on Indian bourses, according to data compiled by international consultancy firm Ernst and Young. India was the fifth largest market in terms of number of IPOs and seventh largest in terms of the proceeds for the year, E&Y said.

The Financial Express
http://www.financialexpress.com/news/
Worlds-top-IPO-8bn-Indias-total-8-3bn/254467/

Rupee is BRIC’s second fastest growing currency

The rupee has become the second most appreciating currency against the dollar among BRIC currencies, with a surge of 11% in 2007, says an analysis. While all the four BRIC countries — Brazil, Russia, India and China — have seen a sharp rise in their currencies against the dollar, the pace of rupee appreciation is only next to the Brazilian currency since the beginning of this year.

Mint
http://www.livemint.com/2007/12/23123448/
Rupee-is-BRIC8217s-second-f.html