Interviews
Making India an International Financial Centre
24 Jan '08
4 min read
Earlier, Hon'ble Minister of Civil Aviation, Government of India, Mr Praful Patel strongly voiced out that India needs to be in the world map in the financial sector.
The country has witnessed tremendous changes in the areas of telecom, technology and communication and the current trend of foreign companies wanting to get listed on the Indian stock exchanges will certainly result in overall transformation in infrastructure.
While talking about the aviation scenario in the country, he mentioned that more than 400 airports are planned to be erected in the next 10 years and India is poised to spend US $ 100 bln for purchases of aircraft. This would attract an investment of US $ 50 bln for facilitating the necessary infrastructure.
Leaps from US $ 105 billion in 1991-92 to over $ 237 billion in 2001-02 to a rapid $ 700 billion in 2005-06 speaks volumes on the two way flows on the balance of payment transactions that the country has witnessed, said Mr Sanjay Nayar, CEO, Citi India.
External flows were 47 % of GDP in 92 -93 and leaped to 91 % of GDP in 2005-06. With current spend of US $ 13 bln by Indian household on financial products, it is estimated that by 2015, US $ 48 bln would be the spend.
If India has to look at maintaining the current 9% growth, the spend has to go upto US $ 80 bln. With 80 bln $ raised in overseas equity currently and $ 100 bln in M & A, the trend clearly paves way for India to be an attractive International Financial Centre.
Mr Sunil Bharati Mittal, President, CII shared with the International Financial Community present during the meeting, the global trends on how Financial Centres were built and why India should emerge as an IFC, given that by 2040, India would be the 3rd largest economy in the world with a market size of US $ 30 trillion.
There are very few hurdles that would make India the International Financial Centre and stringent regulation on banking and FDI norms is the key for elements to be in sync for Mumbai to emerge as an International Financial Hub, said Mr Mittal. For this to actually take place, injection of funds on infrastructure needs to be addressed on priority basis.
The country has witnessed tremendous changes in the areas of telecom, technology and communication and the current trend of foreign companies wanting to get listed on the Indian stock exchanges will certainly result in overall transformation in infrastructure.
While talking about the aviation scenario in the country, he mentioned that more than 400 airports are planned to be erected in the next 10 years and India is poised to spend US $ 100 bln for purchases of aircraft. This would attract an investment of US $ 50 bln for facilitating the necessary infrastructure.
Leaps from US $ 105 billion in 1991-92 to over $ 237 billion in 2001-02 to a rapid $ 700 billion in 2005-06 speaks volumes on the two way flows on the balance of payment transactions that the country has witnessed, said Mr Sanjay Nayar, CEO, Citi India.
External flows were 47 % of GDP in 92 -93 and leaped to 91 % of GDP in 2005-06. With current spend of US $ 13 bln by Indian household on financial products, it is estimated that by 2015, US $ 48 bln would be the spend.
If India has to look at maintaining the current 9% growth, the spend has to go upto US $ 80 bln. With 80 bln $ raised in overseas equity currently and $ 100 bln in M & A, the trend clearly paves way for India to be an attractive International Financial Centre.
Mr Sunil Bharati Mittal, President, CII shared with the International Financial Community present during the meeting, the global trends on how Financial Centres were built and why India should emerge as an IFC, given that by 2040, India would be the 3rd largest economy in the world with a market size of US $ 30 trillion.
There are very few hurdles that would make India the International Financial Centre and stringent regulation on banking and FDI norms is the key for elements to be in sync for Mumbai to emerge as an International Financial Hub, said Mr Mittal. For this to actually take place, injection of funds on infrastructure needs to be addressed on priority basis.
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