Across much of the developing world, robust growth over the next 17 years will be associated with high investment rates. As a result, by 2030, the combined share of China and India in world’s total investments would be about 38%, compared to the combined share of all the high-income countries, including US, a report by the World Bank pointed out.
“Under the gradual convergence scenario, Brazil, India and Russia, together, will account for more than 13% of global investment in 2030, more than the United States,” WB’s report, titled Capital for the Future: Saving and Investment in an Interdependent World, noted. The report said that in future, the patterns of investment will involve not only geographic shifts but also sectoral ones, mainly showing a marked tilt towards services.
“As countries become richer, demand shifts toward services….In the gradual convergence scenario, services as a share of total investment in developing countries will grow from 57% to 61%,” the report said. This shift will lead to increased demand for education, healthcare and infrastructure, and also a global drift “toward greater trade in services and a larger share of services being embedded in tradable goods,” it pointed out. WB estimates that by 2039, India will reach its maximum ratio of working to non-working age population with 2.2 working person for every non-working one.
Read more: The Times of India
Hyatt Continues to Build on Growth in India with Plans for Hotels in Gurgaon and Ludhiana
Hyatt Hotels Corporation (NYSE: H) announced today that a Hyatt affiliate has entered into agreements with Piccadily Hotels Private Limited for two new Hyatt Regency hotels in India. Hyatt Regency Gurgaon and Hyatt Regency Ludhiana will be located in major information technology and manufacturing hubs in northern India. The addition of these two hotel agreements brings the total number of Hyatt-branded hotels under development in India to 55.
“India continues to be a core focus for Hyatt, and we are proud to be working with Piccadily Hotels,” said Ratnesh Verma, senior vice president of real estate and development for Hyatt Hotels & Resorts, Asia Pacific. “The Hyatt Regency brand is a perfect fit for the Gurgaon and Ludhiana markets because they are both emerging destinations for business travelers. The extensive meeting facilities at Hyatt Regency Gurgaon will position the hotel as a preferred meeting, convention and group destination, and Hyatt Regency Ludhiana is second Hyatt-branded full service hotel under development in the state of Punjab, joining Hyatt Regency Chandigarh.”
Read more: Hyatt Investor Relations
Regulator for realty sector likely to be on Cabinet table today
The Union Cabinet is likely to consider a Bill to set up a regulator for the real estate sector on Tuesday
The Union Cabinet is likely to consider a Bill to set up a regulator for the real estate sector on Tuesday.
The Real Estate (Regulation and Development), Bill 2013, seeks to make it mandatory for developers to launch projects only after acquiring all the statutory clearances from relevant authorities.
Builders, with project plot size of 1,000 square metres and above, would be mandated to compulsorily register their projects with respective regulators, the details of which would be displayed on their websites before starting the construction.
The legislation has provisions under which developers will have to deposit about 70 per cent of the total money collected from buyers in a scheduled bank to be spent exclusively for the projects.
It also seeks setting up of a real estate appellate tribunal for adjudicating disputes. The tribunal will be headed either by a sitting or a retired judge.
Read more: Financial Express
Infra norms for FDI in retail likely to be eased
With the government keen to encourage foreign retailers to set up shop in India, multi-brand retailers are likely to be asked to invest 50% of only the first tranche of investments in back-end infrastructure, a senior official of the department of industrial policy and promotion (DIPP) said.
The DIPP, however, is likely to declare the 51% foreign direct investment limit a composite one, including FDI and foreign institutional investment, at a meeting on Tuesday. Moreover, the nodal department for FDI, which will take a call on whether a retailer can create back-end infrastructure in states that are not on board for FDI in multi-brand retail, is likely to allow it.
A senior DIPP official said Tuesday’s meeting would decide whether the mandatory 50% investment in back-end infrastructure, to be made by foreign retailers, needs to be a share of just the initial tranche or the entire investment. In September 2012, the government opened up multi-brand retailing to foreign players allowing them a stake of 51%. However, no global retailer has yet approached it with a proposal to set up shop here. Several firms, including France’s Carrefour and the UK’s Tesco, have been interacting with government officials, looking for clarifications on a host of issues.
Read more: Financial Express
DLF Retail ropes in global brands like Marks & Spencer, Forever 21 and Uniqlo as tenant for its new mall
DLF Retail today said it has roped in global brands, including Marks & Spencer, Forever 21 and Uniqlo, as tenant partners for its shopping mall at Noida.
The DLF Mall of India has also signed other recognised and leading franchisees of international premium fashion labels like Major Brands, Arvind Ltd, Aditya Birla NuvoBSE 0.01 % to unveil more than 30 international labels in the mall across 1,20,000 sq ft of retail space, the company said in a statement.
The mall, which is being developed at an investment of Rs 1,100 crore, is expected to become operational in the last quarter of this calender year. It will have a total area of 1.8 million sq ft spread across six different levels.
“International brands are going to debut in the country through their first flagship stores in DLF Mall of India. Bringing these global brands to one stop destination reaffirms our commitment to the retail industry,” DLF Mall of India Senior Vice President (Head-Leasing and Mall Management) Pushpa Bector said.
The mall will have over 450 brands under one roof. Currently, 50 per cent of space has already been leased out to retailers, DLF Retail said.
Read more: The Economic Times
Gold falls in global market
Gold today fell after climbing the most in two weeks yesterday, as a gain in equities curbed demand for the metal as a protection of wealth.
Gold fell 0.8 per cent to $1,399.65 an ounce and silver by 0.9 per cent to $22.53 an ounce. Gold jumped 1.7 per cent yesterday, the most since May 20, as US manufacturing unexpectedly contracted in May at the fastest pace in four years.
The dollar had rebounded from a three week low yesterday.
European equities climbed as Federal Reserve Bank of Atlanta President said recent data suggest the economy is not strong enough to justify a reduction in the central bank’s bond—buying program. India today tightened rules for importing bullion.
Gold slid 16 per cent this year as equities rose and on speculation the Fed may scale back quantitative—easing measures that helped bullion cap a 12—year bull run in 2012.
Holdings in exchange-traded products fell 3.6 tons to 2,144.7 tons, the lowest since May 2011.
The US Dollar Index, a gauge against six currencies, slid 0.9 per cent after a report showed the Institute for Supply Management’s factory index fell to 49, the lowest reading since June 2009.
Read more: Business Line