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Monday, October 11, 2010

New vistas for Indian investors

Brazil to open new vistas for Indian investors

Huma Siddiqui
Thursday, Apr 08, 2010 at 2252 hrs IST

New Delhi: With Brazil launching a $878-billion program to upgrade the country's infrastructure, there are huge opportunities for the Indian companies to get projects, contracts and orders to supply of equipment, machinery and materials.
The India-Brazil-South Africa (IBSA) Summit, to be held in Brazil on April 15, will give an opportunity to the businessmen from these countries to discuss the opportunities available. It is seen as a trilateral developmental initiative to strengthen cooperation, policy dialogue and coordination among these major emerging countries.
The Indian business delegation, likely to be led by Ficci president Rajan Bharti Mittal for the business summit that will precede the actual IBSA and Bric summit, will get an opportunity to assess for itself the sectors on which Indian businesses can capitalize.
There will be meeting between representatives of development banks at the Brazilian Development Bank (BNDES) head office, under the aegis of Ficci, and this will be followed by the seminar, Bric and IBSA: Common Business Opportunities.
Talking to FE, Brazil ambassador Marco Brando said, “Issues relating to investment opportunities, connectivity, agri business and financial markets will top the agenda of the IBSA, Bric as well as the bilateral summit next week.”
Though India is very cautious, other Bric members have a common position on International Monetary Fund (IMF) reform. “The parties hope to expand the number of currencies that comprise the Special Drawing Rights (SDR), the IMF's reserve asset, to include the Chinese yuan, Russian ruble, Australian and Canadian dollars, and gold. The IMF is set to review the SDR basket of currencies in November 2010,” said officials.
According to both government as well as industry sources, “An Indian company wanting to set up shop in Brazil requires no special government authorization to organize a local business, unless it is formed as a branch or is in a restricted industry such as financial services.”
A joint study by Ficci and Deloitte states, while the investors are free to expand their operations, the incentives granted for the original investment are not automatically extended to the enlarged operation.
“Indian companies should rush in as the up-gradation program of the Brazilian infrastructure plans to improve access to clean water, medical posts and energy as well as modernize the country's air, road and rail systems. The energy part of the plan envisages investment of $257 billion, including Petrobras' $220 billion investment plan,” R Viswanathan, India's ambassador to Argentina, Uruguay and Paraguay.

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