India’s ₹88 lakh crore debt burden worrisome, debt increased by 4% last quarter: Cong

Jan 21: Indian policymakers may make it easier for companies to tap foreign funding, as a prolonged cash squeeze makes it tough for firms to borrow at home.

Investors are speculating about potential steps Finance Minister Nirmala Sitharaman could unveil when she presents the nation’s budget on Feb. 1. These measures may include freeing up firms to borrow at higher rates and offering tax breaks to global funds.

“The government will need to relax local rules to make it easier for Indian companies to raise debt overseas and tide over the funding crunch in the onshore market,” said Raj Kothari, London-based head of trading at Jay Capital Ltd. “At the same time, they need to ensure that the borrowers tapping offshore markets abide with stricter corporate governance so as to avoid further defaults.”

A prolonged crisis in India’s shadow bank sector and a pile of bad loans at traditional lenders is making it expensive for Indian companies, other than the best-rated firms, to access funding. The government has tried a series of measures to spur domestic credit, including providing so-called credit enhancement and allowing tiny firms to restructure debt.

Here are some steps Sitharaman may consider to spur foreign borrowing:

• She could raise the cap of 450 basis points above Libor, which limits overall foreign debt costs for Indian companies

• This could help lower-rated firms sell bonds abroad. Indian companies rated BBB currently borrow at more than 10%, about 3.8 percentage points more than their top-rated peers;

• Sitharaman could waive the withholding tax foreign investors need to pay on holdings of rupee-denominated debt sold by Indian companies abroad

• The waiver was offered between September 2018 to March 2019, but wasn’t extended as the highest global interest rates since the financial crisis deterred Indian borrowers. Since then, the three-month Libor has dropped by about 1 percentage point

• She could permit Indian property developers and housing finance lenders to sell overseas bonds for reasons beyond affordable housing projects

• New funding lines to the real estate sector, arguably ground zero of India’s economic slowdown, could help kickstart consumption and investment as the industry is the nation’s biggest job-creator.

New Delhi, Mar 11: Jyotiraditya Scindia, the Madhya Pradesh politician whose surprise exit from the Congress has brought the Kamal Nath government to the brink of collapse, joined the Bharatiya Janata Party on Wednesday. Scindia joined the BJP at an event in national capital Delhi in the presence of party chief JP Nadda.

Scindia, who was warmly welcomed by Nadda, described 10 March, the day that he exited from the Congress as one of the two life-changing days of his life. The first, he said, was 30 September 2001 when he lost his father. Scindia underscored that the Congress was not the party that it had been and had been living in denial.

Scindia had ended his 18-year-old association with the Congress on Tuesday after meetings with Home Minister Amit Shah and Prime Minister Narendra Modi.

Scindia’s exit from the Congress was followed by resignation letters by about 22 MLAs who had been sequestered in Karnataka. The resignation letters were, however, sent to the Governor and not the assembly speaker, and threatens to upend the Kamal Nath government which has a wafer-thin majority.

If the resignations are accepted, the effective strength of the MP assembly will come down to 206, leaving the Bharatiya Janata Party (BJP) with a slender majority beyond the halfway mark of 103 with its 107 MLAs. For now, the Congress is trying to persuade the MLAs to not pull down the state government.

In his resignation letter to Congress chief Sonia Gandhi that Scindia put out on Twitter soon after, he alluded to his discomfort in the party over the last year or so. “...as you well know, this is a path that has been drawing itself out over the last year,” he had written in his letter.

It was seen as a reference to the Congress settling for Kamal Nath as the chief minister after the 2018 state elections though it was Scindia who had led from the front to oust the BJP from Madhya Pradesh. Scindia’s supporters had hoped that the Congress would tell Kamal Nath to give up his second charge - as the party chief in the state - but this also didn’t happen.

The first hint that something was amiss came in November last year when Scindia removed a reference to the Congress in his Twitter bio and instead wrote “public servant and cricket enthusiast”. He had then explained the change to an effort to make the Twitter bio shorter.

Jyotyiraditya Scindia’s aunt Yashodhara Raje Scindia appeared to declare soon after that the 49-year-old would join the BJP when she welcomed his resignation, calling it “ghar wapsi” or homecoming. “Jyotiraditya was being neglected in Congress,” Yashodhara Raje Scindia said.

Scindia’s grandmother, Vijaya Raje Scindia, was one of the founders of the Jana Sangh, the precursor to the BJP. His aunt Vasundhara Raje is a former Union minister and ex-chief minister of Rajasthan and another aunt Yashodhara Raje is a former minister in the Madhya Pradesh cabinet.

Apr 23: Mukesh Ambani is again Asia's richest person after a deal with Mark Zuckerberg's Facebook Inc. sent his conglomerate's stock surging.

Ambani's fortune rose about $4.7 billion to $49.2 billion on Wednesday, after Reliance Industries Ltd. gained 10%. The jump put Ambani about $3.2 billion ahead of China's Jack Ma, according to the Bloomberg Billionaires Index. The ranking updates after the close of each trading day in the U.S.

Facebook Inc. will invest $5.7 billion in the U.S. social-networking giant's biggest deal since the 2014 purchase of WhatsApp as it seeks a broader foothold in its biggest global market. The U.S. company will buy about 10% of Jio Platforms, which brings together digital apps and a wireless platform under one umbrella, the Mumbai-based company said in a statement Wednesday.

Before Wednesday, Ambani -- who owns the world's largest oil refinery -- had declined by $14 billion on the index in 2020, the biggest dollar fall of anyone in Asia. Alibaba Group Holding Ltd.'s Ma, whose foundation this week donated 100 million masks to the World Health Organization to fight the Covid-19 pandemic, had lost almost $1 billion through Tuesday.

"At the core of our partnership is the commitment that Mark Zuckerberg, founder of Facebook, and I share for the all-around digital transformation of India," Ambani said in a web video posted on Jio's Facebook page, adding that Facebook's brands have become household names in India. "WhatsApp in particular, has entered our people's daily vocabulary in all the 23 official languages of India."

The partnership with Jio would allow Zuckerberg to step up his expansion in a country that is rapidly embracing online payment and e-commerce as more people get smartphones. Jio Infocomm quickly moved into a position of dominance by offering free plans and undercutting wireless market rivals.

With its half-billion internet users, the South Asian country is a key market for the world's largest technology companies, including Amazon.com Inc., Apple Inc., Microsoft Corp. and Alphabet Inc.'s Google. In India, Facebook has about 250 million users, while WhatsApp has more than 400 million.

That should help Jio bolster its reach, according to James Crabtree, author of 'The Billionaire Raj,' a book on the country's wealthiest people. But the transaction also shows the extent of Ambani's own influence, he said.

"This deal clearly shows that if you want to play big in Indian tech, you need to play nice with Mukesh Ambani."

Ambani's fortune rose about $4.7 billion to $49.2 billion on Wednesday, after Reliance Industries Ltd. gained 10%. The jump put Ambani about $3.2 billion ahead of China's Jack Ma, according to the Bloomberg Billionaires Index. The ranking updates after the close of each trading day in the U.S.

Facebook Inc. will invest $5.7 billion in the U.S. social-networking giant's biggest deal since the 2014 purchase of WhatsApp as it seeks a broader foothold in its biggest global market. The U.S. company will buy about 10% of Jio Platforms, which brings together digital apps and a wireless platform under one umbrella, the Mumbai-based company said in a statement Wednesday.

Before Wednesday, Ambani -- who owns the world's largest oil refinery -- had declined by $14 billion on the index in 2020, the biggest dollar fall of anyone in Asia. Alibaba Group Holding Ltd.'s Ma, whose foundation this week donated 100 million masks to the World Health Organization to fight the Covid-19 pandemic, had lost almost $1 billion through Tuesday.

"At the core of our partnership is the commitment that Mark Zuckerberg, founder of Facebook, and I share for the all-around digital transformation of India," Ambani said in a web video posted on Jio's Facebook page, adding that Facebook's brands have become household names in India. "WhatsApp in particular, has entered our people's daily vocabulary in all the 23 official languages of India."

The partnership with Jio would allow Zuckerberg to step up his expansion in a country that is rapidly embracing online payment and e-commerce as more people get smartphones. Jio Infocomm quickly moved into a position of dominance by offering free plans and undercutting wireless market rivals.

With its half-billion internet users, the South Asian country is a key market for the world's largest technology companies, including Amazon.com Inc., Apple Inc., Microsoft Corp. and Alphabet Inc.'s Google. In India, Facebook has about 250 million users, while WhatsApp has more than 400 million.

That should help Jio bolster its reach, according to James Crabtree, author of 'The Billionaire Raj,' a book on the country's wealthiest people. But the transaction also shows the extent of Ambani's own influence, he said.

"This deal clearly shows that if you want to play big in Indian tech, you need to play nice with Mukesh Ambani."