Prime minister Manmohan Singh added that the government's policies could not be blamed for drop in FDI as the current international scenario was prompting foreign funds to move out from emerging markets
New Delhi: In the backdrop of demands for opening multi-brand retail for foreign direct investment (FDI) and liberalising the regime for other sectors like defence, prime minister Manmohan Singh today admitted that there was a need for "favourable" environment for fund flow from abroad, reports PTI.
"I think we need to strengthen the resolve to create favourable environment for larger flow of funds from abroad," he said.
Addressing editors of electronic media here, he, however added the government's policies could not be blamed for drop in FDI as the current international scenario was prompting foreign funds to move out from emerging markets.
"It is not our mistake (outflow in FDI). The international situation is such that funds are moving out of emerging markets. We are today functioning in an environment where what happens outside affects us," Mr Singh said.
"Therefore is not easy to say that what happens to fund flow is entirely a function of our policy," he added
The prime minister also stated that policies followed by the developed economies also played a part in foreign investments coming into India.
"It is also a function of what policies our other friends, particularly, the developed countries adopt," he said.
During April-December of the current fiscal, FDI inflows declined by 23.14% to $16.03 billion over the year ago period.
The government has taken several steps like initiating discussions on opening multi-brand retail for FDI.
It is also in process of analysing feedbacks received from stakeholders to further liberalise the defence sector. Currently, 26% FDI is allowed in defence manufacturing.
Indian Bank loan book is expected to be touch Rs75 crore during the next financial year
Public sector lender Indian Bank said it has signed an agreement with TVS Motor Company for financing the company's vehicles.
"The memorandum of understanding (MoU) will help to bring three wheeler drivers into structured banking and enhance Bank's collateral free lending," Indian Bank chairman TM Bhasin said.
Through this tie-up with TVS Motor Company, the Bank's loan book by March 2011 would increase to Rs10 crore and its expected to be touch Rs75 crore during the next financial year.
"Besides Indian Bank, we are having tie-up with other public sector undertaking bank. But this will highly benefit the borrower as they (Indian Bank) offers them to pay about 15% on the on-road price of the vehicle which is comparatively lower," TVS Motor Company vice-president (sales and service) three wheeler division K Srinivasan said.
On Wednesday, Indian Bank ended 1.90% down at Rs214.30 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.15% to 18,300.90.
Supreme Infrastructure India has won three new orders worth Rs238.95 crore
Supreme Infrastructure India Ltd said that it has won three new orders worth Rs238.95 crore. The first order is for the construction of multi storied towers HEX City, situated at Navi Mumbai. The project is worth around Rs137.5 crore and is expected to complete by March 2013.
The second order is for construction of dwelling units for DGMAP, Kolkata worth Rs71.1 crore and is expected to complete by December 2013.
The third order is from Mahalaxmi TMT for the laying of foundation and construction of for the steel plant at Jalna-Wardha. The project is worth Rs30.35 crore and is expected to complete till June 2012.
On Wednesday, Supreme Infrastructure ended 0.30% up at Rs152.35 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.15% to 18,300.90.