The government may have saved its political skin by putting FDI in retail on hold, but it has added to the sense of gloom that's engulfing India Inc. For the past several weeks, there's been a depressing drum beat of stories of Indian businessmen choosing the relatively low growth, high-stability option of investing abroad over the uncertainty of launching new ventures at home.
Says the India head of a fabled global investment bank, "For me, there's no slowdown. My plate's full with mandates from Indian companies looking at acquisitions abroad."
But it's not just about the flight of investments anymore. Several Indian billionaires say they are frustrated enough to want to shift base overseas and run their increasingly transnational business empires from cities like London and Singapore. "I'm sick and tired of what's happening here. I don't want to live in this country anymore," said one of India's biggest barons.
The reasons are mainly two-fold: the policy paralysis brought on by a politically weak and scam-struck government, compounded by obstructionist competitive politics; and the climate of fear that has spread because of the raids on and arrests of businessmen. They have a third, more specific grouse (not that it's new): the time and hassle it takes to get environmental clearance and acquire land.
Bulge-bracket businessmen - from telecom and textiles to aviation and steel to real estate and minerals - are talking 'Quit India', but obviously not in public. We are looking for red carpet, not for red tape: Harsh Goenka
They may be exaggerating, but for the first time since the dawn of liberalization 20 years ago, the India story seems to be dimming compared to the welcoming lights of foreign shores. As RPG Enterprises chairman Harsh Goenka quips, "We are looking for the red carpet, not for red tape."
The foreign lure is emerging on three fronts:
Indians buying personal assets overseas
A significant jump in outward remittances
Company owners focusing on generating more offshore currency through larger global investments in a bid to hedge themselves against India.
The latest industrial production and GDP figures are cautionary indicators against India complacently comparing itself with the dismal economic situation in the US and the Eurozone. According to a just-released survey by industry body CII, CEOs are anything but bullish about their 2012 investment plans.
Homing In On London
In the past year, many high-profile Indians have bought homes in London's toniest neighborhoods. Bharti'sSunil Mittal, who purchased a home in Grosvenor Square a few months ago, is spending more time working out of there to keep up with the firm's global needs. The Munjals are said to have bought two homes in Kensington.
DLF's K PSingh, Essar's Ravi Ruia and Sahara's Subrata Roy often live and work out of the city that once ruled India. Real estate circles in London often refer to the Berkeley and Grosvenor Square areas as upmarket 'Indian ghettos'.
Says a former top banker based in London, "Cities like London and Singapore are safe havens and the rule of law is clear. There is a sense of individual security and privacy."
Ajay Piramal of Piramal Lifesciences has also bought himself a sprawling home in London, although he isn't shifting base. He points to India's problems: "You don't know what regulation is going to hit. Sometimes it is not even rational. Very old cases are being pulled out. This doesn't give you a sense of certainty."
Says the India head of a fabled global investment bank, "For me, there's no slowdown. My plate's full with mandates from Indian companies looking at acquisitions abroad."
But it's not just about the flight of investments anymore. Several Indian billionaires say they are frustrated enough to want to shift base overseas and run their increasingly transnational business empires from cities like London and Singapore. "I'm sick and tired of what's happening here. I don't want to live in this country anymore," said one of India's biggest barons.
The reasons are mainly two-fold: the policy paralysis brought on by a politically weak and scam-struck government, compounded by obstructionist competitive politics; and the climate of fear that has spread because of the raids on and arrests of businessmen. They have a third, more specific grouse (not that it's new): the time and hassle it takes to get environmental clearance and acquire land.
Bulge-bracket businessmen - from telecom and textiles to aviation and steel to real estate and minerals - are talking 'Quit India', but obviously not in public. We are looking for red carpet, not for red tape: Harsh Goenka
They may be exaggerating, but for the first time since the dawn of liberalization 20 years ago, the India story seems to be dimming compared to the welcoming lights of foreign shores. As RPG Enterprises chairman Harsh Goenka quips, "We are looking for the red carpet, not for red tape."
The foreign lure is emerging on three fronts:
Indians buying personal assets overseas
A significant jump in outward remittances
Company owners focusing on generating more offshore currency through larger global investments in a bid to hedge themselves against India.
The latest industrial production and GDP figures are cautionary indicators against India complacently comparing itself with the dismal economic situation in the US and the Eurozone. According to a just-released survey by industry body CII, CEOs are anything but bullish about their 2012 investment plans.
Homing In On London
In the past year, many high-profile Indians have bought homes in London's toniest neighborhoods. Bharti'sSunil Mittal, who purchased a home in Grosvenor Square a few months ago, is spending more time working out of there to keep up with the firm's global needs. The Munjals are said to have bought two homes in Kensington.
DLF's K PSingh, Essar's Ravi Ruia and Sahara's Subrata Roy often live and work out of the city that once ruled India. Real estate circles in London often refer to the Berkeley and Grosvenor Square areas as upmarket 'Indian ghettos'.
Says a former top banker based in London, "Cities like London and Singapore are safe havens and the rule of law is clear. There is a sense of individual security and privacy."
Ajay Piramal of Piramal Lifesciences has also bought himself a sprawling home in London, although he isn't shifting base. He points to India's problems: "You don't know what regulation is going to hit. Sometimes it is not even rational. Very old cases are being pulled out. This doesn't give you a sense of certainty."
(Source: http://economictimes.indiatimes.com)
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