The amount 208 millions is the money spent in the US just for lobbying.
What about the money spent in India as ‘Promotional expenses’, an euphemism for Bribes?
I understand from reliable sources that hefty sums have been paid to the MPs during the FDI voting.
‘Wal-Mart, the world’s largest retailer, has suspended a “few associates” at its joint venture in India amid an ongoing probe into bribery allegations.
Wal-Mart did not provide further details.
The firm is conducting an investigation into possible violations of a US law that bans US firms from paying bribes to win or retain business abroad(BBC News).
According to lobbying disclosure reports filed by Wal-Mart with the US Senate, the company has spent close to $25 million (about Rs 125 crore) since 2008 on its various lobbying activities, including on the issues related to “enhanced market access for investment in India”.
In the last quarter ended September 30, 2012 itself, the company spent $1.65 million (about Rs 10 crore) on various lobbying issues, which included “discussions related to FDI in India”.
“The RBI has informed that matters related to Bharti Wal-Mart/Cedar Support Services Ltd and Flipkart Online Services, respectively, have been referred to the Directorate of Enforcement for further investigations,” Sharma said.
He said violation of FDI regulations is covered by the penal provision of the Foreign Exchange Management Act, 1999. Flipkart is under the scanner for allegedly flouting FDI rules which allow e-commerce companies with foreign investment to carry out only business-to-business (B2B) transactions but not business to consumer (B2C) transactions by creating complex structures that may not be permissible.
E-commerce companies with foreign investments are allowed to do wholesale trading with B2C companies that are unrelated and can do wholesale trading with a group company only if it does not exceed 25 per cent of its total turnover and is used for internal consumption. IBN Live
S& P’s rating of India has come in handy for all and sundry to call for advanced reforms in Indian economy.
The Ups and Downs of your Credit Rating (Photo credit: GDS Infographics)
The report cites ‘political indecision,slow implementation and introduction of Economic Reform‘ as the cause for S&P’s decision to downgrade Indian Economy.
The general meaning of our credit rating opinions is summarized below.
‘AAA’—Extremely strong capacity to meet financial commitments. Highest Rating.
‘AA’—Very strong capacity to meet financial commitments.
‘A’—Strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions and changes in circumstances.
‘BBB’—Adequate capacity to meet financial commitments, but more subject to adverse economic conditions.
‘BBB-‘—Considered lowest investment grade by market participants.
‘BB+’—Considered highest speculative grade by market participants.
‘BB’—Less vulnerable in the near-term but faces major ongoing uncertainties to adverse business, financial and economic conditions.
‘B’—More vulnerable to adverse business, financial and economic conditions but currently has the capacity to meet financial commitments.
‘CCC’—Currently vulnerable and dependent on favorable business, financial and economic conditions to meet financial commitments.
‘CC’—Currently highly vulnerable.
‘C’—Currently highly vulnerable obligations and other defined circumstances.
‘D’—Payment default on financial commitments.
Note: Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.
“Although finance ministerPranab Mukherjeehas put up a brave face on the economy, evidence that it is on the skids can`t be glossed over any more. The industrial growth rate was a mere 0.1% in April, after falling to -3.2% in March. The fall in overall GDP growth has begun showing up in shrinking employment numbers, with jobs in labour-intensive industries such as textiles being hit particularly badly. Like the threatened downgrade of India`s investment rating by global agency Standard & Poor`s, the finance minister`s reassurances too could acquire junk status unless backed by vigorous government action.
The outlook on India`s sovereign ratings had already been revised down to the last notch of the investment grade last April. A further fall to speculative grade will not only significantly impact foreign investment inflows but also push up cost of borrowings from abroad, denting income and employment growth. The slowdown in growth and higher government spending has already eroded the targets for improvements in government finances and dampened investment flows. To reverse this trend, the government must end the policy paralysis which prevents it from implementing decisions in a wide range of areas, including multi-brand retail, pension, insurance, land acquisition, project clearances, railway fares, oil pricing, fertiliser subsidies and the goods and services tax.”
Countries with Higher Debt % to GDP are given better Rating,USA,Germany UK and Canada and Japan.
Does it mean you increase your Debt to be rated as Stable?
The rumbles on rating usually starts when US/Europe faces Monetary crisis.
Is it to enable them to stabilize themselves at the cost of others?
How is it that limping economies can help improve a better performing Economy?
I know the reply will be in jargons, which does not make common sense.
How has the increase in FDI in Insurance benefitted India?
Policy Decisions to help multi-brand retail, pension, insurance, land acquisition, project clearances, railway fares, oil pricing, fertiliser subsidies and the goods and services tax are needed?
For?
To allow multi Brand Retail Chains,allow people.under the guise of Corporates to grab agricultural lands, increase Rail Fare, Goods and Service Tax?
How are these Companies performing in relation to improving Indian Economy?
Even to-day LIC is performing better.
Handing over infrastructural projects to foreign business may help them make more money.
Why not pump India money for these projects?
Yes policy indecisions are there.
They are to be corrected,not necessarily the one relating to FDI alone.
Look at Argentina,Brazil,Ireland, Greece and now Spain who followed IMF prescriptions till the other day!
In Sanskrit, there is a saying “Mounam Sarvaartha Sadhagam”,general meaning being Silence is conducive for achievement in Life;special meaning is Silence is conducive to worldly wealth.
In Dubai , the ruling class maintained a discreet silence when people invested in Dubai World, thinking it has Royal Patronage(they are right for in Sheikdoms nothing will move with out the Sheikh’s participation) and came out the govt. has nothing to do with Dubai World when the bubble burst.
RBS had earlier been bailed out secretly by the UK govt.How these banks are going to come out of this mess is an open question.
Ultimately, the small investors are going to be hit as usual.
Story:
The UK banks are understood to have much of their lending focused on the still-performing parts of Dubai World, however, including DP World and Jebel Ali Free Zone. According to people close to the situation, that reduces the exposure to the $26bn of Dubai World debt that is being restructured to about $700m for RBS, and $350m for StanChart, for example – far smaller tallies than many had feared. The banks all declined to comment.
………..
Other top 15 creditors include international banks such as BNP Paribas, Société Générale and Calyon.
The $26bn of debt that is being restructured comprises $5.5bn of syndicated debt and close to $6bn of sukuk bond debt, with all of the latter issued by Nakheel. The balance is made up of bilateral lending deals between Dubai World companies and individual lenders, on which no data is published.
The bookrunners for the $5.5bn syndicated issue, arranged in June 2008, were HSBC, ING, Lloyds, Mashreq Bank, RBS, Sumitomo Mitsui, Calyon and Tokyo Mistubishi, according to Bloomberg data. Typically, bookrunners retain 10-20 per cent of loans, syndicating the rest to third party lenders.
Anger has been mounting in recent days, particularly among bond investors, who complain that they were duped by assurances given this year from Dubai’s rulers as to the emirate’s creditworthiness.
After an announcement by Sheikh Mohammed bin Rashid al-Maktoum on September 8 that he was “not worried” about Dubai’s debt position, international investors piled into Nakheel bonds.
Analysts said at the time that the announcement was a significant fillip to confidence in Dubai and its state-backed enterprises. “This is the first time that we are hearing from the ruler on Dubai’s debt issue. This has boosted market confidence dramatically,” said Nish Popat, the head of fixed income at ING in Dubai in a note to clients on September 9.
Although local authorities insist they were referring to the state’s sovereign obligations, investors say the emirate had long cultivated the notion of a quasi-sovereign “Dubai Inc” family that was central to the state’s development and would be supported in the event of difficulties.
“Nakheel is one of the most leveraged companies I’ve seen in my entire career,” said one hedge fund manager. “People bought it because they’d assumed there was some kind of state guarantee, which there wasn’t.” http://www.ft.com/cms/s/0/57c9c17a-df6f-11de-98ca-00144feab49a.html
You must be logged in to post a comment.