What is the government of india 30 investing its equity in central public sector enterprises?
Answers
Answer:
The Government of India has taken significant initiatives to strengthen the economic credentials of the country and make it one of the strongest economies in the world. India is fast becoming home to start-ups focused on high growth areas such as mobility, e-commerce and other vertical specific solutions - creating new markets and driving innovation.
Rise in domestic investments has been one of the biggest contributors to the India growth story and the public and private sector have both enabled and sustained these investments. Following are the various investors driving the domestic investments in the country:
Government/Public Sector Enterprises’ Capital Expenditure
Private Sector Enterprise
Banks/Financial Institutions/Domestic Institutional Investors
Retail Investors
Market Activity
India’s Gross Fixed Capital Formation at constant prices was Rs 40.88 lakh crore (US$ 561.44 billion) in 2017-18. The Government of India forecasts capital expenditure to increase by 30 per cent from Rs 3 lakh crore (US$ 41.2 billion) in 2017-18 to Rs 3.9 lakh crore (US$ 53.6 billion) in 2019-20. Investments by Domestic Institutional Investors (DIIs) reached Rs 97,739.02 crore (US$ 14.00 billion) in 2018. The total number of investor accounts with active mutual fund houses in India rose to a record 81.7 million at the end of February 2019, according to the data from Association of Mutual Funds in India (Amfi).
India has emerged as one of the strongest performers in terms of deals related to mergers and acquisitions (M&A). The M&A activity in India reached record US$ 129.4 billion in 2018 while private equity (PE) and venture capital (VC) investments reached US$ 20.5 billion.
2015-16
2016-17
2017-18
GFCF at Constant Prices
Rs 34.48 trillion
(US$ 473.57 billion)
Rs 37.98 trillion
(US$ 521.59 billion)
Rs 40.88 trillion
(US$ 561.44 billion)
Capex by BSE 200 Companies
Rs 3.28 trillion
(US$ 44.99 billion)
Rs 3.96 trillion
(US$ 54.36 billion)
Rs 3.96 trillion
(US$ 54.36 billion)
2016
2017
2018
PE/VC Investments
US$ 16.2 billion
US$ 24.4 billion
US$ 20.5 billion
Investments/developments
With the improvement in the economic scenario, there have been quite a few investments in various sectors along with M&A in India. Some of them are as follows:
Assets under management (AUM) by mutual funds in India reached Rs 23.16 trillion (US$ 334.82 billion) in February 2019.
Indian automobile industry start-ups received investments of US$ 491 million in 2018, led by Essel Green Mobility's US$ 300 million investment in Zipgo.
As of March 2019, the Oil and Natural Gas Corp (ONGC) is planning to invest over US$ 500 million in its flagship asset, Mumbai High.
In March 2019, the Tata group entered the airports sector in India by agreeing to invest Rs 8,000 crore (US$ 1.16 billion) in the GMR group along with two other investors.
Oyo Rooms will invest about US$ 200 million towards capital expenditure, technology and leadership in its India and South Asia business over 2019.
Proceeds through Initial Public Offers (IPO) in India reached US$ 5.5 billion in 2018 and US$ 0.9 billion in Q1 2018-19.
Total number of deal activity in India reached 1,640 in 2018.
Mergers and acquisitions (M&A) activity in the country has reached US$ 71.3 billion in 2018.
Companies in India have raised around US$ 5.52 billion through Initial Public Offers (IPO) in 2018 (up to November).
In November 2018, assets managed by mutual funds reached Rs 24.03 trillion (US$ 344.31 billion).
Investments by Alternative Investment Funds (AIFs) increased 90 per cent year-on-year between April-June 2018 to Rs 74,893 crore (US$ 10.26 billion).
Reliance Industries Limited (RIL) is planning to invest over Rs 10,000 crore (US$ 1.37 billion) in Uttar Pradesh and Rs 5,000 crore (US$ 687 million) in West Bengal over the next three years.
Vedanta Resources Plc is planning to invest about US$ 9 billion in India over the next few years to expand its hydrocarbons and metals and mining businesses.
Coal India (CIL) plans to invest US$ 20-25 billion in next five years to achieve annual output of 1 billion tonnes by 2019-20.
Reliance Industries Ltd (RIL), along with its partner BP plc, has decided to invest US$ 6 billion for the development of new R-series gas fields in the KG-D6 block.
Government Initiatives
The Government of India has taken several initiatives in various sectors to improve the overall economic condition in the country. Some of these are:
In February 2019, the Government of India approved the National Policy on Software Products – 2019, to develop the country as a software hub.
The National Mineral Policy 2019, National Electronics Policy 2019 and Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME II) have also been approved by the Government of India in 2019.
In November 2018, the Government of India launched a support and outreach programme for the Micro, Small and Medium Enterprises (MSME) sector. It involves 12 key initiatives which will help the growth, expansion and facilitation