Karzai invites India Inc to invest in Afghanistan

November 11, 2012
Karzai_invites_India

Mumbai, November 11: Afghanistan President Hamid Karzai on Saturday urged captains of Indian industry not to shy away from investing in his mineral-rich country, pointing out the gains China has reaped, by investing there.

Further, Karzai said his country is ready for investments and his administration will do everything possible and accord special treatment to Indian investors. “Indian businesses need not be shy thinking of investing in Afghanistan. The Chinese were there long before you came five or six years ago and they have now taken two or three major contracts,” he said.

Karzai added, “We would like to give you a better platform. We would like to welcome you on a red carpet and others on a grey carpet. But you need to arrive on the red carpet. If you don’t arrive on the red carpet, it will get dusty. Therefore, do hurry up in coming and take advantage of the opportunities in Afghanistan.”

The Afghan President also reassured captains of Indian industry: “You need not worry about your investments. Not only will Afghan law protect you, but also Afghan people will add to your profits.” He also dwelt on rising competition in his country saying, “Competition is strong. You have now competition from the West arriving in Afghanistan,” and pointed out that those who came in the past few years like a telecom company with $5 million investment has now become $600-700 million and this applies to other sectors as well.

Karzai appreciated India’s aid of $2 billion, despite not being a dollar economy and went on saying, “Afghanistan’s forex reserves, including gold, have risen to $7 billion now from $180 million in 2002.”

Union Minister of Commerce & Industry, Anand Sharma, who also partook in the session, observed Karzai’s visit to India as a homecoming since the Afghan Presidnt had completed his post-graduation studies in Shimla. “We can easily reach $1 billion (of trade) within next three years,” Sharma said, while pointing out that the bilateral trade between the two countries was over $600 million last year.

On India’s commitment to Afghanistan’s reconstruction and rehabilitation, Sharma said, “It (Afghanistan) has the potential to absorb much more than the committed $16 billion of global development assistance in this decade.”

Drawing a parallel between the Afghan and Indian economies and the need to grow at over 8 per cent, the minister said both the countries “have no choice or option, but an imperative dimension to create employment for 12 million new jobs”.

Indusrialist Adi Godrej, who is also the CII president, speaking at the business session outlined a 5-point agenda to strengthen the traditional bonds of friendship between the two nations. He also suggested Afghanistan embrace a frugal innovation approach to help small and micro entrepreneurs and women under the small development projects in Afghanistan.


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News Network
March 18,2020

New Delhi, Mar 18: As many as 276 Indians have been infected with coronavirus abroad, including 255 in Iran, 12 in UAE and five in Italy, the government informed the Lok Sabha on Wednesday.

In a written reply to a question in the Lok Sabha, Minister of State for External Affairs V Muraleedharan said the total number of Indians infected by coronavirus is 276 — 255 in Iran, 12 in UAE, five in Italy, and one each in Hong Kong, Kuwait, Rwanda and Sri Lanka.

A fourth batch of 53 Indians returned to India from Iran on Monday, taking the total number of people evacuated from the coronavirus-hit country to 389.

Iran is one of the worst-affected countries by the coronavirus outbreak and the government has been working to bring back Indians stranded there. Over 700 people have died from the disease in Iran and nearly 14,000 cases detected.

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News Network
January 21,2020

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.

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Agencies
May 30,2020

New Delhi, May 30: The Congress on Friday described the first year of the Modi government as a "year of disappointment, disastrous management and diabolical pain".

Congress leader K C Venugopal said the six years of the Modi dispensation have seen fraying of bonds of empathy, fraternity and brotherhood with increase in acts of communal and sectarian violence.

Congress chief spokesperson Randeep Surjewala said that at the end of six years, it appears the Modi government is at war with its people and is inflicting wounds on them, instead of healing them.

"It is inflicting wounds on Mother India," he said.

"This government is trying to fill coffers of the select rich and is inflicting pain on the poor," Surjewala said.

On the BJP's charge of the Congress playing politics over the COVID-19 crisis, Venugopal said the opposition party did not indulge in any politics and gave suggestions instead.

"Being a responsible opposition, it is our duty to raise the problems faced by the common people. As opposition, we highlighted the failures of the government," he said.

Venugopal said the government "is totally insensitive" to the plight of migrant labourers and farmers.

Surjewala also demanded that a virtual session of Parliament be convened immediately to discuss pressing issues and the due process be set in motion for holding of meetings of various parliamentary committees.

Modi and his cabinet had taken oath on this day last year for a second term in office.

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