Welcome to the 2009 India Investment Summit

November 20, 2009

India managed to escape the worst of the global downturn and is poised, along with China, to lead the global economy out of the worst downturn since the Great Depression. Confidence is returning, with the stock market up 70 percent this year. A rousing re-election win for the Congress party in May has spurred expectations that long-delayed financial sector reforms will be implemented and sorely needed infrastructure investment will accelerate.
 
Still, questions linger. Global demand that drives India’s once red-hot outsourcing sector is slow in returning. Companies that hoarded cash to tide themselves through the downturn are wary of adding capacity until there are clear signs of demand. Consumer spending is being driven by stimulus measures that are unsustainable. The government is hamstrung by a stubbornly high fiscal deficit.
 
Other challenges include India’s infamous red tape, the threat of inflation in a fast-growing economy prone to bottlenecks, widespread poverty, and infrastructure that is inadequate to support a rapidly urbanising population of more than one billion.
 
Top executives and bankers will discuss their own plans and the broader opportunities and challenges for Asia’s third-largest economy during the Reuters India Investment Summit in Mumbai and Bangalore, which will generate exclusive stories, video and analysis. These will be immediately available only to Thomson Reuters clients during each Summit.

4 comments

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/

Money and its hunters go wherever there is gold. The gold to clothe, feed, treat, house, transport, and educate a large population in India is a gold mine. This new opportunity must promise greater profits than upgrading the mature and somewhat saturated, financially strapped Western markets. The speed of India’s advance will depend on intelligent scaling down of red-tape and investments in professional conduct and execution. When India has earned the mantle for trust and credibility it will set the pace for the world to follow. The traits are in India’s DNA. Will Indians put them to work?

Would like to participate in the summit

Posted by Srikant | Report as abusive

The massive borrowing program of the government and an elevated fiscal deficit will hinder an authentic recover, the one that can start creating jobs within the economy. At the start of the year, Fitch Ratings aptly remarked that India’s ballooning 10% fiscal deficit and an eye-brow raising Debt/GDP ratio of 82% will strain the overall economy, hindering job prospects and loosing its investment grade sovereign rating. The rating agency has placed India on a negative outlook. On the other hand, its India Fixed Income Investors survey, (November 2009) on the Fitch Ratings website, inferred that 89% of investors expressed concerns on the rising deficit, 57% of respondents felt inflation rise might endanger the middle and the lower class population (main driver of the economy). Another point that can be argued against the uptick in employment is the opinion of around 43% of investors that the companies will refinance debt through retained earnings. Interestingly, none of the investors felt there will be significant spending on Capex.

Posted by Snehal Manjrekar | Report as abusive

looking forward

Posted by Reema | Report as abusive