India, UAE seek investments in corporate bonds

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Updated 28 May 2013

India, UAE seek investments in corporate bonds

India’s Finance Minister P. Chidambaram met top UAE officials on Sunday and discussed the scope of investment in the infrastructure sector and corporate bonds.
General Shaikh Mohamed bin Zayed Al-Nahyan, Abu Dhabi crown prince and deputy supreme commander of the UAE Armed Forces, received the minister at Emirates Palace in Abu Dhabi with many other top dignitaries.
General Shaikh Mohamed and Chidambaram discussed bilateral relations between the UAE and India, and ways to promote them in service of the common interests of the two friendly countries and their peoples.
The meeting emphasized the importance of continuing cooperation between the two countries in all spheres, in education, investment and trade in particular, and the tapping of the expertise and potentials of both countries to support joint projects in the public and private sectors.
Indian Embassy sources disclosed that both countries have agreed in principle to start negotiating Bilateral Investment Protection Agreement (BIPA).
“Both sides have agreed to start the negotiations next month,” said M.K. Lokesh, Indian Ambassador to the UAE, who was present at Chidambaram’s meetings with UAE officials.
Chidambaram also met with Shaikh Hamdan bin Rashid Al-Makthoum, UAE finance minister and deputy ruler of Dubai, in a separate meeting in Dubai.
Currently, India and the UAE are largest trading partners to each other with $ 74.723 billion bilateral trade during the 2012-2013 financial year ended in March. However, India is trying to attract more investments from the UAE.
Chidamabram, who arrived in the UAE on Saturday, met Abu Dhabi Investment Authority (ADIA) Managing Director Shaikh Hamed Bin Zayed Al-Nahyan.
The Indian ambassador said the two sides discussed ways to strengthen investments in each others’ countries and the finance minister sought more investment from the UAE, especially in the infrastructure and corporate debt sectors.
The visit is part of Chidambaram’s global tour to attract foreign investments. He has held similar investor meets in Hong Kong, Singapore, the UK, Germany, France, Japan, Qatar, Canada and the United States to attract foreign investment into India.
Chidambaram has been emphasizing that India offers “unlimited” investment opportunities in the infrastructure sector and the country is looking at spending around $ 1 trillion over five years in areas such as roads, airports and seaports.
India is betting big on foreign resources to finance the Current Account Deficit (CAD), which had widened to a record high of 6.7 percent in October-December quarter of 2012-13. — With input from agencies

OECD forecast sees global growth at decade low

Updated 22 November 2019

OECD forecast sees global growth at decade low

  • Governments failing to get to grips with challenges, outlook says

PARIS: The global economy is growing at the slowest pace since the financial crisis as governments leave it to central banks to revive investment, the OECD said on Thursday in an update of its forecasts.

The world economy is projected to grow by a decade-low 2.9 percent this year and next, the Organization for Economic Cooperation and Development said in its Economic Outlook, trimming its 2020 forecast from an estimate of 3 percent in September.

Offering meagre consolation, the Paris-based policy forum forecast growth would edge up to 3 percent in 2021, but only if a myriad of risks ranging from trade wars to an unexpectedly sharp Chinese slowdown is contained.

A bigger concern, however, is that governments are failing to get to grips with global challenges such as climate change, the digitalization of their economies and the crumbling of the multilateral order that emerged after the fall of Communism.

“It would be a policy mistake to consider these shifts as temporary factors that can be addressed with monetary or fiscal policy: they are structural,” OECD chief economist Laurence Boone wrote in the report.

Without clear policy direction on these issues, “uncertainty will continue to loom high, damaging growth prospects,” she added.

Among the major economies, US growth was forecast at 2.3 percent this year, trimmed from 2.4 percent in September as the fiscal impulse from a 2017 tax cut waned and amid weakness among US trading partners.

With the world’s biggest economy seen growing 2 percent in 2020 and 2021, the OECD said further interest rate cuts would be warranted only if growth turned weaker.

China, which is not an OECD member but is tracked by it, was forecast to grow marginally faster in 2019 than had been expected in September, with growth of 6.2 percent rather than 6.1 percent.

However, the OECD said that China would keep losing momentum, with growth of 5.7 percent expected in 2020 and 5.5 percent in 2021 in the face of trade tensions and a gradual rebalancing of activity away from exports to the domestic economy.

In the euro area, growth was seen at 1.2 percent in 2019 and 1.1 percent in 2020, up both years by 0.1 percentage point on the September forecast. It is seen at 1.2 percent in 2021.

The OECD warned that the relaunch of bond buying at the European Central Bank would have a limited impact if euro area countries did not boost investment.

The outlook for Britain improved marginally from September as the prospect of a no-deal exit from the EU recedes.

British growth was upgraded to 1.2 percent this year from 1 percent previously and was seen at 1 percent in 2020.