oppn parties In A First, Chinese Bank Starts India-Dedicated Fund

News Snippets

  • 84 NDRF teams have been despatched to 23 states to tackle the flood situation
  • Three persons lynched in Bihar after being accused of cattle theft
  • Delhi police seize a consignment of 1500 kgs of heroin and busts a cartel of Afghanistan-Pakistan narcotics dealers with links to the Taliban
  • Supreme Court gives 9 more months to complete the Babri Masjid demolition case trial
  • Priyanka Gandhi not allowed to meet the families of the dead in the Sonabhadra firing, arrested
  • ICC inducts Sachin Tendulkar in [email protected]@@s Hall of Fame
  • Stock markets bleed for the second day. Sensex crashes 560 points
  • S Jaishankar, Minister of External Affairs, says Pakistan should release and repatriate Kulbhushan Jadhav immediately
  • Karnataka Governor Vajubhai Vala asks the Speaker to hold the trust vote latest by 1.30 pm today
  • The Government sends a list of 24 questions to mobile app company that runs video app TikTok seeking answers for anti-national and obscene content carried on the platform
  • Sarvana Bhawan founder P Rajagopal, serving a life term for murder, dies in a Chennai hospital
  • SC allows time till July 31 to the Ayodhya mediation panel
  • IT department attaches "benami" plot worth Rs 400cr in Noida. The plot allegedly belongs to BSP leader [email protected]@@s brother and his wife
  • Dawood [email protected]@@s nephew, Md. Rizwan Iqbal, was arrested from Mumbai airport as he was waiting to board a flight to Dubai
  • Trouble brews in Bihar JD(U)-BJP alliance as Bihar police asks special branch officers to keep tabs on RSS activities
Even after indicating that the trust vote will be held today (he said he cannot delay as he had to face the world), the Karnataka Speaker adjourns the assembly until Monday. Voting is likely to take place on Monday
oppn parties
In A First, Chinese Bank Starts India-Dedicated Fund

By Yogendra

About the Author

Sunil Garodia Yogendra is undecided whether he wants to be a writer. So he writes to see if he can be a writer. Ha Ha
As a welcome acknowledgement of the growing potential and excellent future prospects of Indian industry, the state-run Chinese bank, The Industrial and Commercial Bank of China, has started an India-dedicated investment fund. Although there is nothing surprising about an investment bank trying to channel funds in an area it thinks will offer lucrative returns to investors, what is surprising is that a Chinese bank is doing so. This is a first, for China till now always tried to downplay the Indian industry which was seen as competition. The fund is named the Industrial and Commercial Bank Credit Suisse India Market Fund and its corpus will be invested “in exchange-traded funds listed on more than 20 exchanges in Europe and the US that are based on the Indian market." The fund has listed priority sectors for investment and the financial sector will get the bulk of its investments followed by the information technology industry.

It is even more surprising that the pitch for the fund talks about the Indian economy in glowing terms. One can of course say that it is just sales pitch but coming from the Chinese it is no small praise. The Chinese have always been disdainful of the inefficiency and red tape that rules economic activity in India. They also scoff at India’s focus on small and medium enterprises and point to the success of their huge factories churning out products by the millions to take advantage of economies of scale. Although they secretly admire India for the excellent quality of its engineering products, the work being done in its IT sector and the reach and diversity of its financial sector, the Chinese are loath to admit it in public. This is the first time they have put this on paper.

The write-up pitching the fund says that "across the overseas market, India, as the second largest emerging market economy, is entering the golden age of economic take-off, and has become an area where international and domestic capitals are competing to pursue," and adds that "the larger marginal improvement formed by various structural reforms led by Modi government is expected to unleash India's abundant demographic dividend." Quoting figures from the IMF, it goes on to say that India’s economy will continue to lead the global economy for a long time to come.

This, coupled with the recent record breaking Walmart-Flipkart deal, is likely to boost some sectors of the Indian economy further. The onus is now upon the government to identify bottlenecks and introduce further reforms, especially in the financial and retail sector, to attract FDI. People abroad have funds to invest. If India can capitalize on its growing potential by easing norms, it will be a winner. Otherwise, there are other emerging markets waiting in the wings.