The Hindu Business Line : Singapore hails Budget move on FDI

INDIA'S latest budgetary move to raise the cap on foreign direct investments in the sectors of telecommunications, civil aviation and insurance has been welcomed in some industry circles in Singapore.

At another level, a banking fund manager, who deals with India but did not wish to be identified, was of the view that the Budget betrayed a "business-as-usual attitude''. At first glance, there was nothing much positive or even negative to say, especially from a foreigner's perspective, he felt.

When contacted, the Government of Singapore Investment Corporation Pte Ltd (GIC), a global investment management company, did not wish to make any comments on the Indian Budget.

The Singapore Indian Chamber of Commerce & Industry (SICCI) struck a positive tone on some aspects of the Budget.

Mr Predeep Menon, SICCI's Executive Director, said: "We are extremely pleased to hear'' about the move to raise the cap on FDI in the telecom, civil aviation and insurance sectors.

Noted in particular was the ceiling hike to 74 per cent in the telecom industry. This "will further consolidate the steps already taken'' in this sector. While the further opening up of the insurance field was "also very welcome'', he said the budgetary initiative might "pave the way for major foreign players to enter the fast-growing civil aviation sector in India and help India develop into an aviation hub''.

The SICCI was also "pleased'' with the Finance Minister, P. Chidambaram's budgetary projection of seven-to-eight per cent GDP growth.

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