Investment News India update & National Manufacturing and Investments Zones across India

Investors in India have every reason to be confident with the Indian government. In a plan to encourage more investments, the government plans to set up National Manufacturing and Investments Zones across India. These Zones are meant to offer investors proper infrastructure, a dynamic exit strategy, green and clean technologies support, investment incentives and an environment that encourages business with a friendly approval mechanism. The commerce and industry ministry hopes to be able to achieve greater manufacturing potential that can create jobs. These zones will have production units, public utilities, logistics, environmental protection mechanisms, residential areas and administrative services. As it stands, investors in the different sectors stand to benefit with every aspect of production and service being represented in these regions.

 

Indian services share has continued to grow at a consistent rate as opposed to the manufacturing share that has stuck at 15%. The country has witnessed rapid economic development in the first quarter of this financial year.  The ESCAP forecast India’s inflation at 7.5 percent. Faced with management of portfolio, capital inflows, mainly foreign institutional investments, the rupee has recently come under a lot of duress.

 

Fourteen companies will begin operations at the Information Technology Park at Koratty this month. The Park was developed by Infopark. The allocation of space for investor companies in the second face of the project has begun. Investors in the park stand to enjoy the low operational costs, ease of logistics and availability of a skilled labor force. Entrepreneurs are expressing confidence in the continued growth of this park ever since its inception. On The stock markets, the sharp fall in the US overnight coupled with the Greek credit crisis saw the Indian benchmark indices fall. It represented a decline, of 5% last week.  The Bombay stock exchange lost over 300 points, as a result of the conflict between the Ambani brothers. However, the National 50-share Nifty of the National Stock Exchange ended the week at 1.43%.

 

Indian markets have been jittery over the looming sovereign debt crisis and peripheral European economies getting impacted. The possible fall out of the crisis may lead to the outflow of money from risky assets. However, the Indian markets haven’t experienced that yet. Other heavyweights in India like Bharti Airtel, Tata Steel, SBI, amongst others have showed positive trading indices.  Investor fears for European investments in India had worries over the European central banks decision not to support equities.

08 May 2010