Comments on: The Corus Deal and FDI flows http://indianeconomy.org/2006/10/25/the-corus-deal-and-fdi-flows/ Issues & insights Wed, 08 Feb 2012 06:33:25 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: STALLMAN http://indianeconomy.org/2006/10/25/the-corus-deal-and-fdi-flows/comment-page-1/#comment-118762 STALLMAN Fri, 09 Mar 2007 19:55:51 +0000 http://indianeconomy.org/2006/10/25/the-corus-deal-and-fdi-flows/#comment-118762 Interesting for Indian Companies. TATA Corus deal will be funded by whom . Guess the Cash Cow of TATA. Interesting for Indian Companies. TATA Corus deal will be funded by whom . Guess the Cash Cow of TATA.

]]> By: Deepak kabra http://indianeconomy.org/2006/10/25/the-corus-deal-and-fdi-flows/comment-page-1/#comment-96367 Deepak kabra Thu, 01 Feb 2007 12:39:07 +0000 http://indianeconomy.org/2006/10/25/the-corus-deal-and-fdi-flows/#comment-96367 The one time outflow will give us inflow in terms of profit over the years, that is what precisely developed countries are doing The one time outflow will give us inflow in terms of profit over the years, that is what precisely developed countries are doing

]]> By: Varun Varghese http://indianeconomy.org/2006/10/25/the-corus-deal-and-fdi-flows/comment-page-1/#comment-95466 Varun Varghese Wed, 31 Jan 2007 05:00:12 +0000 http://indianeconomy.org/2006/10/25/the-corus-deal-and-fdi-flows/#comment-95466 The FDI outflow surpassing the inflow is a general trend in any economy which plans to consolidate its assets outside of its boundaries.The fact that India is emerging as on of the finance exporters falling back on debt is a good sign as it is always better to generate fast moving income rather than stagnant income in the form of FD's and savings.One example of the success story is the case of USA where the debt margins far surpass the countries Net GDP.This fuels the growth of consumerism and indirectly the economy blooms.I am very happy and elated as an Indian that Tata has won the corus deal despite bidding at an all out takeover cost of 608 pence per share which is highly overpriced though. The FDI outflow surpassing the inflow is a general trend in any economy which plans to consolidate its assets outside of its boundaries.The fact that India is emerging as on of the finance exporters falling back on debt is a good sign as it is always better to generate fast moving income rather than stagnant income in the form of FD’s and savings.One example of the success story is the case of USA where the debt margins far surpass the countries Net GDP.This fuels the growth of consumerism and indirectly the economy blooms.I am very happy and elated as an Indian that Tata has won the corus deal despite bidding at an all out takeover cost of 608 pence per share which is highly overpriced though.

]]> By: desidirectory.com http://indianeconomy.org/2006/10/25/the-corus-deal-and-fdi-flows/comment-page-1/#comment-40875 desidirectory.com Fri, 10 Nov 2006 09:27:03 +0000 http://indianeconomy.org/2006/10/25/the-corus-deal-and-fdi-flows/#comment-40875 I think FDI is a right step for investing in India rather than spending outside. India has got huge potential and investing in her infrastructure would be highly profitable. The Tata Corus deal should not be given a negative aspect as pumping of dollars into foriegn market will not hamper country's growth. I think FDI is a right step for investing in India rather than spending outside. India has got huge potential and investing in her infrastructure would be highly profitable.
The Tata Corus deal should not be given a negative aspect as pumping of dollars into foriegn market will not hamper country’s growth.

]]> By: Chandra http://indianeconomy.org/2006/10/25/the-corus-deal-and-fdi-flows/comment-page-1/#comment-40416 Chandra Thu, 09 Nov 2006 19:13:55 +0000 http://indianeconomy.org/2006/10/25/the-corus-deal-and-fdi-flows/#comment-40416 Here is McKinsey Quarterly interview with Ratan Tata regarding the deal: http://www.mckinseyquarterly.com/article_page.aspx?ar=1688&L2=21&L3=114&srid=27&gp=0 Need registration. Here is McKinsey Quarterly interview with Ratan Tata regarding the deal:

http://www.mckinseyquarterly.com/article_page.aspx?ar=1688&L2=21&L3=114&srid=27&gp=0

Need registration.

]]> By: Chandra http://indianeconomy.org/2006/10/25/the-corus-deal-and-fdi-flows/comment-page-1/#comment-36158 Chandra Sat, 04 Nov 2006 05:06:06 +0000 http://indianeconomy.org/2006/10/25/the-corus-deal-and-fdi-flows/#comment-36158 Sarat, US deficit is funded by US treasury purchases by foreign governments - major ones being Chinese, Japanese, and increasingly oil rich Russia and gulf countries. Net FDI, while I am not sure if it's positive or not at the moment, would, I think, be quite small compared to US deficit. Sarat, US deficit is funded by US treasury purchases by foreign governments – major ones being Chinese, Japanese, and increasingly oil rich Russia and gulf countries. Net FDI, while I am not sure if it’s positive or not at the moment, would, I think, be quite small compared to US deficit.

]]> By: Balaji Viswanathan http://indianeconomy.org/2006/10/25/the-corus-deal-and-fdi-flows/comment-page-1/#comment-34768 Balaji Viswanathan Wed, 01 Nov 2006 19:27:59 +0000 http://indianeconomy.org/2006/10/25/the-corus-deal-and-fdi-flows/#comment-34768 One of the factors omitted in India's FDI measurements is the role of the NRIs. India gets around $20 to $25b worth of remittances every year and much more than all of the FDI combined. Given the high interest rates in India (even banks give in the range of 8-9%) compared with the 2 to 5% for secured deposits in US, a healthy rupee forecast (combined with a weak dollar forecast) and northbound economic growth of Indian immigrants, it is a no-brainer that India could receive atleast a $10b more from this year, if Indian companies play right and Indian govt. keeps quiet. So, India doesnt need to bother too much about having a lot of dollars being exported outside. If it makes Indian companies healthier and powerful, a lot of we NRIs could slosh the dollars, as it is the best investment option for many of us. One of the factors omitted in India’s FDI measurements is the role of the NRIs. India gets around $20 to $25b worth of remittances every year and much more than all of the FDI combined. Given the high interest rates in India (even banks give in the range of 8-9%) compared with the 2 to 5% for secured deposits in US, a healthy rupee forecast (combined with a weak dollar forecast) and northbound economic growth of Indian immigrants, it is a no-brainer that India could receive atleast a $10b more from this year, if Indian companies play right and Indian govt. keeps quiet.

So, India doesnt need to bother too much about having a lot of dollars being exported outside. If it makes Indian companies healthier and powerful, a lot of we NRIs could slosh the dollars, as it is the best investment option for many of us.

]]> By: Emgee http://indianeconomy.org/2006/10/25/the-corus-deal-and-fdi-flows/comment-page-1/#comment-34581 Emgee Wed, 01 Nov 2006 07:20:23 +0000 http://indianeconomy.org/2006/10/25/the-corus-deal-and-fdi-flows/#comment-34581 There are basic questions which need to be answered. 1. Would it be better to invest the money in India then buying a company outside. The clear answer is Yes. India has probably one of the best cost strcutures and investing the money in India will generate the best ROI. 2. How does the "close to market" logic holds for commodity company. The commodities are always driven by price and not close to the market principle. Lets understand that Tata Steel is not going to become close to the market by acquiring Corus since its always the total landed price which will determine your market share. 3. What is it that Tata Steel or India gets from this deal. Will there be more employment, more economic activities, higher taxes to Indian government, What? I can't figure out. Its clear submission to the design of foreign powers that we are squandering our hard earned money to revive sick British companies. There are basic questions which need to be answered.

1. Would it be better to invest the money in India then buying a company outside. The clear answer is Yes. India has probably one of the best cost strcutures and investing the money in India will generate the best ROI.

2. How does the “close to market” logic holds for commodity company. The commodities are always driven by price and not close to the market principle. Lets understand that Tata Steel is not going to become close to the market by acquiring Corus since its always the total landed price which will determine your market share.

3. What is it that Tata Steel or India gets from this deal. Will there be more employment, more economic activities, higher taxes to Indian government, What? I can’t figure out. Its clear submission to the design of foreign powers that we are squandering our hard earned money to revive sick British companies.

]]> By: Ashish http://indianeconomy.org/2006/10/25/the-corus-deal-and-fdi-flows/comment-page-1/#comment-34298 Ashish Tue, 31 Oct 2006 16:30:08 +0000 http://indianeconomy.org/2006/10/25/the-corus-deal-and-fdi-flows/#comment-34298 A lot of the debt that the Tatas have taken on is debt borrowed from banks and funding agencies outside India. Further, the debt would also be backed by Corus assets. Net net, even if the price may be a bit high, it is a good sign and almost all the stuff I have read says that Tata had to acquire to be able to grow and hold its own. A lot of the debt that the Tatas have taken on is debt borrowed from banks and funding agencies outside India. Further, the debt would also be backed by Corus assets. Net net, even if the price may be a bit high, it is a good sign and almost all the stuff I have read says that Tata had to acquire to be able to grow and hold its own.

]]> By: Sarat http://indianeconomy.org/2006/10/25/the-corus-deal-and-fdi-flows/comment-page-1/#comment-33924 Sarat Tue, 31 Oct 2006 00:27:01 +0000 http://indianeconomy.org/2006/10/25/the-corus-deal-and-fdi-flows/#comment-33924 I was under the impression that net positive FDI is what a deficit ridden economy like USA's survives on. Is FDI so critical for an economy that is growing at the rate of 8+% a year? Economists, please advise. I was under the impression that net positive FDI is what a deficit ridden economy like USA’s survives on. Is FDI so critical for an economy that is growing at the rate of 8+% a year? Economists, please advise.

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