'Modi govt on right track in drawing FDI'

'Modi has created a buzz among foreign investors'

Even as a majority of India Inc is holding on to its purse on new investments, London-based billionaires Hindujas said they will invest 'billions of dollars' more in India as the policies by the Modi government is conducive for fresh investments.

With the right leadership and policies in place, foreign investment will start flowing into the country as investors are now getting clarity on policies.

“The foreign investors are engaging the Big four audit companies to get information from India and so far the feedback is that the Modi’s government has taken the right steps in attracting investment since they came to power in May last year,” said Prakash Hinduja, 69, chairman of the Hinduja group of companies in Europe, on Monday.

“They (the investors) know exactly what’s going on in India and they are getting the right signals on India,” said he.

“Modi has created a buzz among foreign investors and they are waiting for the right opportunities to invest in,” said he.

Since coming to power, the Modi government has increased the foreign direct investment in defense, sorted out the legacy taxation issues on retrospective tax case, and has rolled out the red carpet to make it easier for investors to set up businesses in India.

But, because of a global economic slowdown, not many marquee investments have been announced in India so far.

The Hindujas -- who are ranked among UK’s wealthiest men by Sunday Times with a combined wealth of $20 billion as on April this year -- are planning to invest in India to take advantage of the ‘Make in India’ campaign.

The Hinduja Group has interests in automobiles, business process outsourcing, banking and media.

In India, the group set up IndusInd Bank, which had a market capitalisation of Rs 54,124 crore (Rs 541.24 billion) as on Monday.

“In the past 20 years, IndusInd has created wealth for so many investors and is one of the success stories.

This gives us the confidence to invest more,” Hinduja said, after meeting Mauritius Prime Minister Anerood Jugnauth in Mumbai on Monday.

Hinduja said a lot of Indian companies are not investing due to own problems such as high debt, but Hinduja group companies, including automobile maker Ashok Leyland and BPO firm Hinduja Global Solutions, are in the investment mode.

Apart from India, the group is also bullish on Africa.

“We are talking to the Chinese companies so that we can together invest in Africa. We are keen to invest in Indian and African infrastructure sector,” said he.

The group is also setting up an automobile assembly line in Kenya by Ashok Leyland so that it can feed the local markets.

“India with a population of 1.2 billion and Africa with a similar size of population are two of the biggest markets waiting to be explored. We have sent our group’s 10 CEOs across various businesses to scout for opportunities in the African continent.

"We think these two regions are the two biggest business opportunities of the next century for the Indian companies,” said he.

The Indian government’s $10 billion funding to the African governments will go a long way in setting up businesses in the continent,” Hinduja said.

Image: Prime Minister Narendra Modi. Photograph: Amit Dave/Reuters