ISO 9001:2015 Certified
closex Call Us 11-23320714, 23721504, ficci@ficci.com

 Upcoming Event
to forge a partnership on Technology Commercialization Initiative, FICCI-AMITY and IC2 Institute University

Temporary impact on investment flow to India due to govt curbs: CEA K V Subramanian 

Money Control , Oct 14, 2020

There will be a temporary impact on investment flow to start-ups due to the curbs imposed by the government to stop opportunistic takeover by firms from countries with which India has border tensions, Chief Economic Adviser K V Subramanian said on October 14.

According to a Press Note 3 issued by the Department for Promotion of Industry and Internal Trade (DPIIT) in April, a company or an individual from a country that shares land border with India can invest in any sector here only after getting government approval. The decision has bearing on foreign investments from countries like China and Hong Kong.

Speaking at a virtual event organized by FICCI, Subramanian said investment, both direct and indirect, coming from countries, especially with which India has border tensions, needs to be scrutinised. As a result, he said, "There will be some impact on start-up funding in the short run, but I do think that space will get filled by a large number of private equity (PE) companies from other countries."

He was replying to a question on if Press Note 3 will have any impact on investment flow from Hong Kong. PE firms from other countries are interested in participating in the start-up ecosystem, he said, adding that "I expect this impact to be temporary".

India received FDI worth USD 2.34 billion (Rs 14,846 crore) from China between April 2000 and December 2019. Speaking on insolvency and bankruptcy process, Subramanian said the ecosystem of creative destruction is important for any economy.

"IBC (Insolvency and Bankruptcy Code) process is an evolving process and there is still scope for making it more efficient," he said. He said there are some important market failures in creative destruction which need to be focused on to bring in greater efficiency.

 

 

Also Read

IBC is an evolving process and there is scope for making it more efficient - Chief Economic Adviser, GoI

Stressed assets market can flourish with incentives and price discovery: CEA Subramanian     

CEA Subramanian says 'creative destruction' crucial for Indian economy, IBC has scope for improvement     

Temporary impact on investment flow to India due to govt curbs: CEA     

Temporary impact on investment flow to India due to govt curbs: CEA Subramanian     

Bankruptcy framework needs to be made more efficient for developing stressed asset market: CEA     

Allow trading in bonds from stressed businesses: CEA Krishnamurthy Subramanian     

Chief economic advisor Subramanian bats for more reforms in the bankruptcy law     

Pre-packs insolvency resolution: MS Sahoo panel to submit report in a week     

Temporary impact on investment flow to India due to govt curbs: CEA     

IBC still evolving, can be far more efficient: CEA     

IBC still evolving, can be far more efficient: CEA     

IBC still evolving, can be far more efficient: CEA     

CEA Subramanian says 'creative destruction' crucial for Indian economy, IBC has scope for improvement     

CEA Subramanian says 'creative destruction' essential for Indian economic system, IBC has scope for enchancment     

Temporary impact on investment flow to India due to govt curbs: CEA K V Subramanian     

Insolvency 'pre-packs': A game changer to wind down bankrupt businesses     

IBC still evolving, can be far more efficient: CEA     

IBC still evolving, can be far more efficient: CEA     

IBC still evolving, can be far more efficient: CEA     

IBC is an evolving process and there is scope for making it more: CEA     

IBC still evolving, can be far more efficient: CEA     

IBC still evolving, can be far more efficient: CEA     

CEA Subramanian says 'creative destruction' crucial for Indian economy, IBC has scope for improvement     

IBC still evolving, can be far more efficient: CEA     

IBC still evolving, can be far more efficient: CEA     

Bankruptcy code can better, CEA reveals     

Stressed Assets market can flourish with incentives and price discovery: CEA Subramanian     

IBC still evolving, can be far more efficient: CEA     

IBC still evolving, can be far more efficient: CEA     

IBC still evolving, can be far more efficient: CEA     

IBC is an evolving process and there is scope for making it more efficient - Chief Economic Adviser, Govt of India     

Event:

 Investment Opportunities in Stressed Assets in India