1 Kellogg India Business Conference 1 Mumbai as an Int’l Financial Center: Aspects of the Indian Economy India Visit 2013 George Mason University January.

Slides:



Advertisements
Similar presentations
Center for Emerging Market Enterprises
Advertisements

1 Global Economic Crisis: What Can Small Open Economies Do? Asad Alam The World Bank AIPRG Conference, Yerevan July 7, 2009.
Business Environment. INTRODUCTION Every business organisation has to interact and transact with its environment. Business environment has a direct relation.
Central Bank of Trinidad and Tobago Energy and the Economy: The Macroeconomic Impact Shelton Nicholls Deputy Governor UWI Conference on the Economy October.
SINGAPORE’S EXPERIENCE IN DEVELOPING THE GOVERNMENT BOND MARKETS Yeo Lian Sim Assistant Managing Director (Capital Markets) Monetary Authority of Singapore.
Reasons to invest in Paraguay UK-Paraguay Trade & Investment Forum Nov German Rojas Irigoyen Minister of Finance - Paraguay.
Turkey on the way to high income Martin Raiser Country Director World Bank.
Derek Eaton Division of Technology, Industry & Economics Economics & Trade Branch Geneva, Switzerland “Designing the Green Economy” Centre for International.
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill /Irwin Chapter One Introduction.
Saving and Investing 11-1 How does investing contribute to the free enterprise system? How does the financial system bring together savers and borrowers?
Developing Corporate Debt Market in India The 3 rd Invest India Debt Market Round Table May 6, 2003 Rakesh Mohan Deputy Governor Reserve Bank of India.
FINANCING THE SERVICES SECTOR SOKHA ANGKOR RESORT HOTEL,
ROLE OF DIFFERENT STAKEHOLDERS AND HYBRID FINANCIAL MECHANISM OF MHI Public Private Partnerships or PPPs as Means of Financing Infrastructure in MHI Projects.
MEANING OF MUTUAL FUNDS :- A Mutual Fund is a financial intermediary that pools the savings of investors for collective investments in a diversified portfolio.
Panel 5: The Politics and Economics of Land and Housing (March 24, 2011) R. V. Verma National Housing Bank India The 21 st Century Indian City -Developing.
Fund Manager Profile Prosperity Asset Management Ltd are working with Gallium Fund Solutions as our Fund Investment Managers. Gallium’s primary objective.
Session 8. The volatility of private capital flows in developing countries and the potential role of BRICS development bank to counter pro-cyclicality.
Financial Sustainability: Importance, Progress and Emerging Issues Jamal Saghir Director Energy, Transport and Water The World Bank Istanbul March 18,
©2007, The McGraw-Hill Companies, All Rights Reserved Chapter One Introduction.
What if we are in for a decade of slow/low growth? Where and how should funds invest? JOSEPH BUSHA, BSc, BSc. Hons, MSc, MPhil.
Gian-Maria Milesi-Ferretti & Cedric Tille October 2010
1 Enhancing the Effectiveness of Fiscal Policy for Domestic Resource Mobilization Patrick N. Osakwe Chief, Financing Development, UNECA.
Danger Opportunity. Danger Opportunity Indian Banking System  A few India Banks have presence overseas  Stringent RBI restriction on opening office.
Chapter 11SectionMain Menu Saving and Investing How does investing contribute to the free enterprise system? How does the financial system bring together.
Lessons and implications for agriculture and food Security in the region IFPRI-ADB POLICY FORUM 9-10 August 2007 Manila, Philippines Rapid Growth of Selected.
IMPACT OF HIGH FOOD PRICES ON PRODUCERS AND REQUIRED INTERVENTIONS John Purchase Agricultural Business Chamber (ABC) Gauteng Food Summit 10 & 11 July 2008.
OVERVIEW OF CAPITAL MARKET DEVELOPMENT IN THE LAC REGION Carolin A. Crabbe Infrastructure and Financial Markets Division INTER-AMERICAN DEVELOPMENT BANK.
World Bank EU 10 Regular Economic Report Safeguarding Recovery Brussels, 16 July 2010.
Food Security Strengthening the Supply Response: The Role of EBRD and MDBs Prepared for the Meeting of the G20 Ministers of Agriculture, Third Deputies.
January 2006, Budapest Additionality of Guarantee Schemes for Agricultural and Rural Development: Lithuanian Experience Danguolė Čukauskienė Director,
PENSION FUNDS’ ROLE AND OPPORTUNITIES IN LONG-TERM INVESTMENTS Idar Kreutzer, CEO, Finance Norway Nordic Conference on Green Investments and Nordic Pension.
Malaysian Economy and Financial Market Due to the recent increase in fuel prices, inflation as measured by consumer price inflation is expected to exceed.
Economic Development and the Extractive Industries Prof. Jeffrey D. Sachs Director of the Earth Institute Columbia University For the CCSI Executive Training.
THE IMPORTANCE OF ASSET DEVELOPMENT TO SELF-SUFFICIENCY by Larry Beeferman, Director Asset Development Institute Center on Hunger and Poverty.
World Bank Perspectives Global Conference on Veterinary Education and the Role of Veterinary Statutory Bodies Foz do Iguazu, Brazil - December 4-6, 2013.
China’s Economy: Recent Growth and Historical Legacies Thomas G. Rawski University of Pittsburgh March 2011.
New World, New World Bank Group Presentation to Fiduciary Forum On Post Crisis Direction and Reforms March 01, 2010.
1 How to avoid another serious financial crisis: Harnessing the benefits of financial integration Manfred Schepers, Vice President Finance, EBRD.
INDIA’S OVERSEAS INVESTMENTS A Case Study Ketaki Bhirdikar Pushkar Borse Nupur Khanna Shantala Samant.
LOGISTICS In Emerging Markets
Financial Markets & Institutions
„Impact of the financial crisis on BH economy“ by Kemal Kozarić Governor of the Central Bank of Bosnia and Herzegovina January 16, 2012.
Banking Risks and Regulation. Changes in Indian Banking.
NIS Economics Financial Markets (non-bank Financial Institutes and assets)
Money Markets Introduction to Money Markets. Agenda In this session, you will learn about: Features of the Money Market Functions of the Money Market.
Structure of Banking Industry
The Impact of the Global Financial Crisis on Low-Income Countries Dominique Desruelle International Monetary Fund United Nations Economic and Social Council.
Rabobank Group Rabo Development and agri finance Arnold Kuijpers | Managing Director.
Boosting Investment for Transformative Growth and Competitiveness in Africa: Review of Trends, Policies and Prospects Franklyn Lisk CSGR, University of.
Why we should study Urbanisation ? Global Phenomenon Rate of increase of Urban population : 60 million persons per year ( Three times the increase in.
GCC Bond Markets: Lessons from Asia GRC Program Manager Economics
new financing trends for investment and growth in Africa
Economic Growth and Development in Zambia
R. V. Verma National Housing Bank India
Global Economic Crisis: What Can Small Open Economies Do?
GROWTH AND CRISIS IN THE Outlook for the World Economy
Chapter 2 Learning Objectives
Introduction to Financial Institutions and Markets
Green Bonds for Cities: Nudging EU-China Cooperation on Sustainable Urbanisation into the Right Direction 15 March 2017 Nadia Kahkonen Sid Sala.
Introduction to the Financial World
Green Bonds for Cities: Nudging EU-China Cooperation on Sustainable Urbanisation into the Right Direction 15 March 2017 Nadia Kahkonen Sid Sala.
How are BOP statistics used?
Lecture 2 Chapter 2 Outline The Financing Decision
He World Bank was created at the 1944 Bretton Woods Conference along with the International Monetary Fund (IMF). The president of the World Bank is, traditionally,
The Changing Landscape for Renewable Energy Financing and Support
Thailand’s Investment Climate: Looking Forward
Global Economic Crisis: What Can Small Open Economies Do?
The Financial System and its Institutions
Leveraging the bond market to accelerate the energy transition
Presentation transcript:

1 Kellogg India Business Conference 1 Mumbai as an Int’l Financial Center: Aspects of the Indian Economy India Visit 2013 George Mason University January 14, 2013

2 Structure of the presentation Structural transformation of India’s economy 5 How far along are we as an IFC? Financing sustainable growth Why do we need a domestic IFC for funds Where do we go from here?

Structural change in India’s economy 5 How far along are we as an IFC? Financing sustainable growth Why do we need a domestic IFC for funds Where do we go from here?

4 Kellogg India Business Conference 4 India has consistently been one of the fastest growing economies, with a high savings rate fuelling investment... Growth rates of selected countries %, CAGR Source: World Bank, RBI Savings Rates in India and other countries Gross Domestic Savings (% of GDP)

5 Kellogg India Business Conference 5 India has become more integrated with the global economy, with share of both trade and financial flows in GDP having doubled BOP flows account for over 100% of GDP % of GDP Total BOP flows Trade flows Financial flows Source: RBI

6 Kellogg India Business Conference 6 … with increasing reliance on foreign savings

7 Kellogg India Business Conference 7 Indian corporates have expanded their presence in overseas markets, for increasing scale and access to technology... Market Access / Scale / Branding Raw materials / Energy Knowledge / Technology

8 Kellogg India Business Conference 8 The Rupee has been increasingly freed over the past 3 decades, with increasing volatility: sign of more market oriented economy

9 Kellogg India Business Conference 9 Has India then become more “coupled”? Yes and No: Initial shock of financial crisis was via global liquidity, but transient India GDP growth slowdown... % yoy... Was mainly due to a foreign funds liquidity shock Source: Govt of India, RBI

Transformation of India’s economic structure will create opportunities across multiple sectors … Services Emerging as pre-eminent growth driver

11 Kellogg India Business Conference 11 Urbanisation will not only be a growth driver, but also deepen connections, e.g., through remittances and food supply chains P Urban contribution increasingly important for growth Source: Mckinsey Global Institute

12 Kellogg India Business Conference 12 … resulting, within India, an integration between urban and rural, evident in the convergence of consumption patterns Rural and urban FMCG consumption Rs bns Urban Rural Source: Che Kothari Studio Source: McKinsey Global Institute

Over the long term, the India Opportunity Remains Intact … good chance that India will shine in a slowing world 13 Favourable demographics High Investment Rate Structurally Higher Growth High Savings rate

14 Yet … we have to learn from success of others! China had more poor people than India in 1990 Population living below $1.25 per day (millions) Source: World Bank

Structural transformation of India’s economy 5 How far along are we as an IFC? Financing sustainable growth Why do we need a domestic IFC for funds Where do we go from here?

16 The financial sector will be a critical enabler for sustainable growth …

17 Kellogg India Business Conference 17 Infrastructure funding … XI Plan infra financing projections (USD billions) Composition of Infra. funding 1,

18 … where banks will retain their re-dominant role, but other institutions will be needed to provide more funds 18 Actual source of funds in the first 3 years of XI Plan ( ) Share of institutions in private sector debt Source: Planning Commission

19 SMEs: Entrepreneurs with cash balances and falling leverage will create growth opportunities 2

20 Kellogg India Business Conference 20 Financial inclusion: leveraging unconventional channels and new technology 3

Structural transformation of India’s economy 5 How far along are we as an IFC? Financing sustainable growth Why do we need a domestic IFC? Where do we go from here?

22 Kellogg India Business Conference 22 What does an IFC do? Matching investors with financing risks  Facilitate funding –Matching risk profile of credit with investors  Manage risks –Global workforce expanding at rate slower than job creation  Manage the development of an ecosystem –Legal, accounting, consulting  Technology –New products and product delivery mechanisms

23 Translating funding potential into flows for infrastructure: Structuring financial products to match risk profiles of investors 23 1.Traditional Insurance Plans 2.Provident Funds 3.Pension Funds 4.Retail Individuals 5.Trusts Capital Protection Steady returns Investor Segments Key Requirements Credit Protection / Credit Enhancement Product Features required Long Term Retirement Funds 1

24 Translating funding potential into flows: Structuring financial products to match risk profiles of investors 24 1.Regular Income MFs 2.Unit Linked Insurance Plans 3.Private Banking Units 4.Foreign Endowments 5.Foreign Insurers Well-structured asset pools Diversified and performing cash flows without project risk Secondary market liquidity Investor Segments Key Requirements Securitised cash flow pools Rated and listed instruments Product Features required Fixed Income Investors 2

25 Translating funding potential into flows: Structuring financial products to match risk profiles of investors 25 1.Foreign Project Finance Institutions 2.Sophisticated investors (e.g., hedge funds) 3.ECAs / Development Institutions Viable Projects Consistency of Policy Investor Segments Key Requirements Without recourse project finance Appropriate risk – reward Product Features required High Yield Investors 3

Structural transformation of India’s economy 5 How far along are we as an IFC? Financing sustainable growth Why do we need a domestic IFC for funds Where do we go from here?

27 Kellogg India Business Conference 27 Thank You