India, a leader in PE flows among Asian Nations
Thursday, 16 November 2006, 20:30 IST
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Mumbai: India Inc. has emerged as a leading player in international financial markets. Private equity flows to India through new issuances of bonds, loans and equities have seen the fastest growth rate compared to other Asian emerging countries including china, Korea and Hong Kong. Private external flows to India have seen a growth of 88 percent a year, from $ 2.22 billion in 2001 to $ 19.31 billion in 2005. Indonesia has also seen a high level of growth of 83.2 percent from $1.28 billion to $ 5.3 billion. Other countries like China have seen an annual growth rate of 32.6 percent to $35.79 billion in 2005. China has the largest private external flow followed by South Korea at $ 34.46 billion. Incidentally India has led Asia both in 2004 and 2005 for funds raised through loan syndications. It was the third country behind Russia and Turkey among the world’s emerging markets with inflows of $ 8.4 billion in 2005. These figures are based on a Economist Intelligence Unit study supported by Bank of America. According to A Uday Sekhar, who has authored the report, the factors which have driven offshore financing are dramatic growth in investment activity, liberalization in government policy, greater flexibility and strong overseas interest in lending to Indian companies. The documentation and regulatory approval process for overseas financing are mostly quicker and easier than raising funds domestically.
Source: IANS
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