Tag: Financial News

The India Opportunity Showcased at the IPEF Clean Economy Investor Forum

 On the sidelines of the inaugural Indo-Pacific Economic Framework for Prosperity (IPEF) Clean Economy Investor Forum, the Department of Commerce and Invest India organised a meeting to showcase various investment opportunities in India.

 

 

In his inaugural address Secretary, Department of Commerce, Shri Sunil Barthwal, stressed on how India’s growth rate is nearly double that of other emerging market economies. He remarked on how this strong growth is also leading to a trend of ‘reverse flipping’, where Indian start-ups that once moved abroad for capital access and tax benefits are now returning home. He emphasised how the digital economy along with emerging technologies like AI and rise of data centres were key to future Indian growth.

The meeting held at Marina Bay Sands, Singapore, attracted over 60 participants, including global investors from the US, Singapore, Japan, Australia, Korea, and other countries, as well as India’s private sector and government officials. The event brought together investors and financial institutions from IPEF Member countries like that of Temasek, Global Infrastructure Partners, GuarantCo, Private Infrastructure Development Group (PIDG), Goldman Sachs, I Squared Capital, Mizuho Bank Ltd, Advantage Partners, Nomura, DBS Bank and Citi Bank. The   Indian infrastructure and climate tech companies showcased their solutions and engaged with international investors to tap into global markets.

Indian High Commissioner to Singapore, H.E. Dr. Shilpak Ambule, focused on the fundamentals that are driving Indian growth. He said that the investment in physical and digital infrastructure will have multiplier effects on the Indian economy, and that the legislative and regulatory changes have created a pro-market field, providing conducive and predictable policy environment. He stressed on how shifting global supply chains and Indian efforts modernization of infrastructure will enable India to participate in them.

This was followed by an India opportunity presentation in which Invest India showcased the India’s through various government flagship initiatives like a flourishing startup ecosystem, a sizable pool of skilled and talented professionals across diverse industries, a push for investments in infrastructure projects, policy reforms aimed at streamlining regulations, enhancing transparency, and improving Ease of Doing Business.

MD and CEO of Invest India, Ms Nivruti Rai highlighted that India is keen on collaborating with investors, clean economy firms, and innovative startups to drive sustainable infrastructure, climate technology, and renewable energy projects to meet Net Zero targets.

Speaking during the fireside chat titled the Charting India Opportunity, Ms Radhika Rao, Senior Economist and Executive Director, mentioned that India strength is in 4C’s – Consistency & Continuity in Policy and reforms; Increasing Capex through government, household spending and private sector; Composition of trade shifting towards manufacturing sectors; Increasing consumption over the next 5 years.

Ms Sonal Varma, Managing Director, Nomura spoke in detail about the Nomura India report. The report shows that highest number of companies are looking at India than any other geography during their “Bottom’s up” study, a survey of around 130 companies mapping their investments in sectors and country.  India is attracting investments in broad based sectors ranging from semiconductor assembly to testing, automobiles to capital goods.

Mr Kunal Agarwal, Managing Director, I Squared highlighted that India is going through Infrastructure Supercycle, which is an enabler for digital revolution and India is viewed as a secular investment opportunity.

During the event, members of the industry expressed highlighted that the inaugural forum was a significant step forward in promoting economic cooperation in the Indo-Pacific region. They emphasized the importance of industries working together to address the challenges they faced and create new opportunities for growth. The forum also underscored the crucial nature of a clean economy and supply chain resilience.

About IPEF and Clean Economy Investor Forum

The Indo-Pacific Economic Framework for Prosperity (IPEF) was launched in May 2022 and currently includes 14 partners – Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, United States and Vietnam. The IPEF, comprising four pillars of cooperation, namely Trade, Supply Chain, Clean Economy and Fair Economy, provides a platform for countries in the region to collaborate on advancing resilient, sustainable, and inclusive economic growth and aims to contribute to cooperation, stability and prosperity in the region.

The IPEF Clean Economy Investor Forum, one of the initiatives under the IPEF, brought together the region’s top investors, philanthropies, financial institutions, innovative companies, start-ups and entrepreneurs to mobilise investments into sustainable infrastructure, climate technology and renewable energy projects.

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Urban Co-operative Banks (UCBs) in the country

  To realise Prime Minister Shri Narendra Modi’s vision of ‘Sahakar se Samridhi, four important initiatives have been taken to strengthen 1,514 Urban Co-operative Banks (UCBs) in the country. Pursuant to detailed discussions held by Union Home Minister and Minister of Cooperation Shri Amit Shah, with Finance Minister Smt. Nirmala Sitharaman and Governor, Reserve Bank of India, the RBI has notified these vital measures to strengthen Urban Co-operative Banks.

1. In order to expand their business, Urban Cooperative Banks (UCBs) can now open new branches.

UCBs can now open new branches up to 10% (maximum 5 branches) of the number of branches in the previous financial year without prior approval of RBI in their approved area of operation. In order to avail this facility, UCBs have to get the policy approved by their board and comply with the Financially Sound and Well Managed (FSWM) Norms.

2.      UCBs can also do One Time Settlement at par with Commercial Banks

RBI has notified a framework governing this aspect for all regulated entities including Urban Co-operative Banks. Now co-operative banks through board-approved policies may provide process for technical write-off as well as settlement with borrowers. This has brought cooperative banks at par with other commercial banks now.

3.      Revised timelines for PSL targets given to UCBs

The Reserve Bank of India has decided to extend the timeline for UCBs to achieve Priority Sector Lending (PSL) targets by two years i.e. up to March 31,2026. Deadline of March 31, 2023 to achieve PSL target of 60% has now also been extended to March 31,2024.The excess deposits, if any, after clearing the shortfall of PSL during FY 2022-23 will also be refunded to UCB.

Since UCB work in urban areas unlike commercial banks who have branches in rural areas as well, they were facing hardships on this score.

4.      Designating a Nodal Officer in RBI

    In order to meet the long pending demand of the cooperative sector for closer coordination and focused interaction, RBI has recently notified a nodal officer as well.

The above initiatives will further strengthen the Urban Co-operative Banks. Under the leadership of Prime Minister Shri Narendra Modi, the Ministry of Cooperation is committed to strengthen cooperatives and treat them at par with other forms of economic entities, both as beneficiaries and participants.

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IFSCA Issues Guidelines and Application Form for IFSCA FinTech Incentive Scheme, 2022

  The International Financial Services Centres Authority (“Authority” or “IFSCA”), with an overall objective to promote the establishment of a world-class FinTech Hub, at GIFT International Financial Services Centre (IFSC) in India, launched the IFSCA (FinTech Incentive) Scheme for providing financial support to FinTech activities in the form of specific grant(s). The Scheme was notified vide Gazette Notification number IFSCA/2021-22/GN/022 dated 2nd February, 2022.

This scheme shall be open to –

  1. Domestic FinTechs seeking access to overseas markets;
  2. Domestic FinTechs seeking listing on IFSCA recognised stock exchanges;
  3. Foreign FinTechs seeking market access to IFSCs in India and work within the Authority’s regulatory framework;
  4. Foreign FinTechs seeking access to domestic market under Inter-Operable Regulatory Sandbox (IORS) framework;
  5. Domestic FinTechs extending business to the IFSCs either by way of authorisation or registration or through the regulatory sandbox.

The types of incentives for eligible applicants are:

  1. FinTech Start-up grant- This grant shall be utilized for developing a product or a service and related ‘go-to market’ initiatives for a start-up with a novel FinTech idea or solution with a focus on converting the idea into an MVP.
  2. Proof of Concept (PoC) grant- This grant shall be utilized for the purpose of conducting a PoC by an early or mature FinTech Entity (FE) in domestic market or overseas.
  3. Sandbox grant- This grant shall be utilized by FEs to experiment with innovative products or services in a sandbox.
  4. Green FinTech Grant- This grant shall be utilized towards developing solutions facilitating sustainable finance and sustainability linked finance, including ‘Environmental, Social and Governance (ESG)’ investments.
  5. Accelerator Grant- This grant shall be utilized for supporting accelerators at the IFSC for capacity building, build capabilities around mentors, bringing investors, bringing more projects or PoC, tie ups, etc.
  6. Listing Support Grant – The grant shall be utilized for supporting Domestic FE aspiring to go for listing on stock exchanges recognised by the Authority.

The Grants contemplated under this scheme shall be available to eligible FEs:

  1. who are part of the Authority’s Regulatory or Innovative Sandbox;
  2. which are referred to the Authority under a FinTech bridge arrangement with a Counterpart Regulator
  3. which have either participated or are participating in any Accelerator or Cohort or Special Programme supported or recognised by the Authority; or
  4. who are referred to by the entity(ies) including regulatory or supervisory bodies having Memorandum of Understanding (MoU) or collaboration or special arrangement with the Authority.

The detailed Guidelines of the Scheme for implementation as well as the Application Form are hereby being issued.

The detailed guidelines and the application form may be accessed at:   https://ifsca.gov.in/Viewer/Index/343 

Please refer to IFSCA Circular (may be accessed at https://ifsca.gov.in/Viewer/Index/292 ) dated April 27, 2022 on “Framework for FinTech Entity in the IFSCs” to obtain authorisation as FinTech Entity (FE).

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