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Foreign Direct Investment (FDI) - Meaning, Costs and benefits of FDI to home and host countries, Trends in FDI, India’s FDI policy
In this article we will discuss about Foreign Direct Investment (FDI) – Meaning, Costs and benefits of FDI to home and host countries, Trends in FDI, India’s FDI policy. Meaning of Foreign Direct Investment (FDI) Foreign Direct Investment (FDI) refers to the investment made by a company or individual from one country (the home country) into another country (the host country) with the aim of…
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#Benefits of FDI to Home Countries#Benefits of FDI to Host Countries#Costs of FDI to Home Countries#Costs of FDI to Host Countries#India&039;s FDI Policy#Meaning of Foreign Direct Investment (FDI)#Trends in FDI
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Green Growth: Investing in Sustainable Energy Projects in India
In recent years, India has emerged as a beacon of opportunity for investors looking to capitalize on sustainable energy projects. With a growing population, rapid urbanization, and increasing energy demand, the country presents a fertile ground for investments in renewable energy infrastructure. Foreign Direct Investment (FDI) in India's renewable energy sector has been steadily rising, driven by favorable government policies, technological advancements, and a shift towards cleaner energy sources. In this blog, we will delve into the prospects of investing in sustainable energy projects in India, focusing on the opportunities, challenges, and the role of FDI in driving green growth.
The Indian Energy Landscape: A Paradigm Shift towards Renewables
India's energy landscape has undergone a significant transformation in recent years, with a pronounced shift towards renewable sources. The government's ambitious target of achieving 450 gigawatts (GW) of renewable energy capacity by 2030 underscores its commitment to clean energy transition. This transition is fueled by-
1. Government Initiatives: Schemes like the National Solar Mission, Ujwal DISCOM Assurance Yojana (UDAY), and the Green Energy Corridor Project aim to boost renewable energy adoption and address infrastructure challenges.
2. Attractive Policies: The introduction of initiatives like feed-in tariffs, renewable purchase obligations, and tax incentives have created a conducive environment for renewable energy investments.
3. Technological Advancements: Advancements in solar, wind, and energy storage technologies have significantly reduced costs, making renewable energy more competitive with conventional sources.
4. International Commitments: India's commitment to the Paris Agreement and its pledge to reduce carbon emissions have further propelled the transition towards cleaner energy sources.
Opportunities for Investors
Investing in sustainable energy projects in India offers a myriad of opportunities across various segments of the renewable energy value chain:
1. Solar Power: India receives abundant sunlight throughout the year, making it an ideal location for solar power generation. Opportunities exist in utility-scale solar parks, rooftop solar installations, and solar panel manufacturing.
2. Wind Energy: With a vast coastline and favorable wind conditions, India has significant potential for wind energy projects. Onshore and offshore wind farms, along with wind turbine manufacturing, present lucrative investment prospects.
3. Hydropower: Despite challenges, hydropower remains an integral part of India's renewable energy mix. Investments in small and micro-hydro projects, pumped storage facilities, and modernization of existing hydropower plants offer avenues for growth.
4. Energy Storage: As the penetration of renewable energy increases, the need for energy storage solutions becomes paramount. Investments in battery storage, pumped hydro storage, and innovative grid-scale storage technologies are on the rise.
5. Electric Vehicle Infrastructure: The growing adoption of electric vehicles (EVs) necessitates investments in charging infrastructure, battery manufacturing, and renewable energy integration to support sustainable transportation.
Role of FDI in Driving Green Growth
Foreign Direct Investment plays a crucial role in accelerating India's transition towards sustainable energy:
1. Capital Infusion: FDI provides the necessary capital infusion required for developing renewable energy projects, especially in the initial stages where large investments are needed.
Here's a more detailed explanation:
Foreign Direct Investment (FDI) involves the investment of capital from foreign entities into projects or businesses in a host country. In the context of sustainable energy projects in India, FDI plays a crucial role in providing the necessary financial resources to develop renewable energy infrastructure. Here's how capital infusion through FDI contributes to the growth of sustainable energy projects:
1. Financial Support: Developing renewable energy projects, such as solar parks, wind farms, or hydropower plants, requires significant upfront capital investment. FDI provides access to substantial funds that may not be readily available from domestic sources alone. This infusion of capital enables project developers to finance the construction, installation, and operation of renewable energy facilities.
2. Risk Mitigation: Renewable energy projects often involve inherent risks, including regulatory uncertainties, technological challenges, and market fluctuations. FDI can help mitigate these risks by providing financial stability and diversification of funding sources. International investors bring in expertise in risk assessment and management, which enhances project resilience against potential financial setbacks.
3. Scaling Up Operations: The scale of renewable energy projects in India is increasing rapidly to meet the growing demand for clean energy. FDI facilitates the scaling up of operations by enabling larger investments in utility-scale projects and supporting the expansion of manufacturing facilities for renewable energy equipment. This scalability is essential for achieving economies of scale, driving down costs, and enhancing the competitiveness of renewable energy solutions.
4. Access to Global Markets: Foreign investors often have access to global capital markets, which allows Indian renewable energy companies to tap into international funding opportunities. FDI can facilitate partnerships, joint ventures, or strategic alliances with foreign firms, opening doors to new markets, technologies, and business opportunities. This cross-border collaboration fosters knowledge exchange, innovation, and best practices in sustainable energy development.
5. Project Viability: Many renewable energy projects in India require long-term investments with relatively lengthy payback periods. FDI provides patient capital that is willing to commit to projects over extended periods, enhancing project viability and sustainability. Additionally, foreign investors' participation in project financing enhances investor confidence, attracting further investments from domestic and international sources.
2. Technology Transfer: Foreign investors bring in expertise and technology advancements that enhance the efficiency and effectiveness of renewable energy projects in India.
Here's a detailed explanation:
Foreign Direct Investment (FDI) brings more than just capital; it also facilitates the transfer of advanced technologies and expertise from foreign investors to domestic entities. In the context of India's renewable energy sector, technology transfer through FDI plays a critical role in advancing the adoption and deployment of renewable energy solutions. Here's how technology transfer contributes to green growth:
1. Access to Cutting-Edge Technologies: Foreign investors often possess cutting-edge technologies, innovations, and best practices in renewable energy development and deployment. By partnering with or investing in Indian renewable energy projects, foreign firms transfer these technologies to local entities, thereby enhancing the efficiency, reliability, and performance of renewable energy systems.
2. Enhanced Research and Development (R&D): FDI stimulates research and development activities in the renewable energy sector by fostering collaboration between domestic and foreign entities. Joint R&D initiatives, technology-sharing agreements, and collaborative projects facilitate knowledge exchange and innovation diffusion. This collaboration accelerates the development of next-generation renewable energy technologies tailored to India's specific needs and conditions.
3. Capacity Building: Technology transfer through FDI contributes to the capacity building of domestic stakeholders, including project developers, engineers, technicians, and researchers. Through training programs, knowledge transfer sessions, and skill development initiatives, foreign investors empower local talent with the expertise and know-how required to design, implement, and maintain renewable energy projects effectively.
4. Adaptation to Local Context: While foreign technologies may be state-of-the-art, they often need to be adapted to suit local conditions, regulations, and infrastructure constraints. Through FDI, technology transfer is not merely about importing foreign solutions but also about customizing and contextualizing them to meet India's unique requirements. This process of adaptation ensures the practical applicability and scalability of renewable energy technologies in the Indian context.
5. Spillover Effects: The benefits of technology transfer extend beyond the immediate recipients of FDI to the broader renewable energy ecosystem. As domestic entities gain access to advanced technologies and knowledge, spillover effects occur, leading to the diffusion of innovations across the industry. This ripple effect catalyzes further innovation, competitiveness, and growth in the renewable energy sector, driving overall green growth in the economy.
3. Market Expansion: FDI contributes to the expansion of the renewable energy market by fostering competition, driving innovation, and improving project execution capabilities.
4. Job Creation: Investments in renewable energy projects create employment opportunities across the value chain, from manufacturing and construction to operations and maintenance.
5. Long-Term Sustainability: FDI promotes long-term sustainability by aligning investments with environmental, social, and governance (ESG) principles, thereby fostering responsible business practices.
Challenges and Mitigation Strategies
While the prospects for investing in sustainable energy projects in India are promising, several challenges persist:
1. Policy Uncertainty: Regulatory uncertainty and policy inconsistencies can deter investors. Clear and stable policies, coupled with transparent decision-making processes, are essential to instill investor confidence.
2. Infrastructure Constraints: Inadequate grid infrastructure and transmission bottlenecks pose challenges to renewable energy integration. Investments in grid modernization and infrastructure development are imperative.
3. Land Acquisition: Securing land for renewable energy projects can be a complex and time-consuming process. Streamlining land acquisition procedures and addressing land-use conflicts are critical.
4. Financial Risks: Fluctuating currency exchange rates, project financing challenges, and revenue uncertainties can impact project viability. Risk mitigation measures such as hedging strategies and financial incentives are vital.
5. Technical Challenges: Variability in renewable energy resources, technological limitations, and equipment reliability issues require continuous innovation and R&D efforts to address.
Investing in India’s sustainable energy projects holds immense potential for both domestic and foreign investors. With supportive government policies, technological advancements, and a growing market demand for clean energy, the sector offers attractive opportunities for long-term growth and impact. Foreign Direct Investment plays a pivotal role in driving green growth by leveraging capital, expertise, and technology to accelerate India's transition towards a sustainable energy future. Despite challenges, the collective efforts of stakeholders can unlock the full potential of renewable energy and pave the way for a greener, more resilient India.
This post was originally published on: Foxnangel
#green growth#sustainable energy#renewables energy#renewable energy green energy#sustainable energy projects#foreign direct investment#FDI#invest in india#foxnangel
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News from Africa, 19 June
Hage Geingob will host Danish PM Mette Frederiksen and Dutch PM Mark Rutte today in Namibia. Green hydrogen will reportedly be among the subjects discussed.
2. Namibia's proposed visa exemption for Chinese nationals is a bilateral agreement that would benefit both countries, according to China's ambassador to Namibia, Zhao Weiping.
Some Namibian politicians have objected to the proposal, with opposition leader McHenry Venaani claiming it is a "hoodwinking process" for Chinese prisoners to come to the country, and aspiring presidential candidate Job Amupanda alleging that it involves a deal between the ruling party and China to garner support for next year's elections.
The proposed agreement's main goal is to attract Chinese tourists and help Namibia become competitive again after the Covid-19 pandemic, according to Namibia's minister of home affairs, immigration, safety and security, Albert Kawana.
3. Angola and Zambia signed a memorandum of understanding to enhance cooperation in information technology, including digital transformation, AI, and space technology.
The agreement includes the establishment of direct cross-border optical fibre backbone connectivity between the two countries, scheduled to happen this month.
The collaboration is expected to help improve the regulation of the Angolan and Zambian telecom markets and lead to improved coverage and quality of ICT services provided in both countries.
4. Namibia is embarking on a journey of digital transformation to modernize various aspects of the country's life.
The Department of Home Affairs, Immigration and Security recently announced the successful implementation of an online passport application system, a major step towards delivering home affairs government services through digital channels. Namibia is partnering with Estonia to bring government services online and gradually prepare citizens for the transformation ahead. The Vice Minister of ICT recognizes the importance of foreign direct investment (FDI) for African technology spaces, but stresses the need for a clear roadmap or strategy to ensure that solutions developed in Africa fit the lifestyle on the continent.
5. Nigeria has 71 million people living in extreme poverty and 133 million people are classified as multidimensionally poor, according to 2023 data from the World Poverty Clock and the National Bureau of Statistics.
6. The Bank of Namibia increased the repo rate to safeguard the dollar-rand peg and contain inflationary pressures, but this will severely impact consumers who rely on debt to survive.
The governor expressed empathy for people losing their homes due to rising debt costs, and urged the nation to find better solutions to keep more Namibians in their homes while maintaining financial stability.
7. The fighting in Sudan has caused a surge in refugees fleeing to South Sudan, exacerbating an already dire humanitarian crisis.
The UN has called for $253 million in funding to respond to the crisis, but donations have been slow to come in.
The lack of resources and funding has led to inadequate food, water, and sanitation facilities in transit camps, resulting in malnutrition, disease, and preventable deaths.
#Dutch PM#Danish PM#visit#Namibia#Green Hydrogen#China#visas#tourists#Angola#Zambia#ICT#network#digital#Nigeria#poverty#clock#currency peg#South Africa#refugees#crisis#food#sanitation#Sudan#Africa
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Unlocking Success: TaxDunia Proven Strategies for Foreign Company
Foreign Company Registration is the process of legally establishing a business entity in a country different from where it was originally incorporated. For businesses looking to expand internationally, this process allows them to operate and conduct business in a new market while complying with local laws and regulations.
The registration involves several steps, including choosing the right business structure (such as a subsidiary, branch office, or representative office), submitting necessary documents, and meeting legal requirements specific to the host country. This may include obtaining a local business license, registering with tax authorities, and adhering to local labor and corporate laws.
Successful foreign company registration can open up new opportunities, facilitate market entry, and help businesses gain a competitive edge. It’s essential to seek local legal and financial advice to navigate the complexities of the registration process and ensure compliance with all regulations in the new market.
India’s diverse business landscape and evolving regulatory environment can present unique challenges for international enterprises looking to establish a foothold in this dynamic market. However, with the right guidance and strategic approach, foreign companies can navigate these waters and unlock tremendous growth opportunities. Whether you’re a multinational corporation or a small-to-medium-sized enterprise, our goal is to empower you with the knowledge and tools necessary to make informed decisions and achieve your business objectives in the Indian market.
Why Register a Foreign Company in India?
India’s rapidly growing economy, large consumer base, and pro-business policies have made it an increasingly attractive destination for foreign direct investment (FDI). By establishing a registered presence in India, foreign companies can:
1.Access a Vast and Diverse Market: With a population of over 1.3 billion and a rapidly expanding middle class, India offers unparalleled opportunities for businesses to reach a vast and diverse customer base.
2.Leverage Cost Advantages: India’s competitive labor costs, skilled workforce, and favorable manufacturing and service sector environments can provide significant cost advantages for foreign companies.
3.Capitalize on India’s Strategic Location: India’s strategic geographic location, well-developed transportation infrastructure, and proximity to other emerging markets make it an ideal hub for regional and global operations.
4.Benefit from Favorable Policies and Incentives: The Indian government has implemented various policies and incentives to attract foreign investment, including tax benefits, special economic zones, and streamlined regulatory processes.
5.Enhance Credibility and Visibility: Registering a foreign company in India can enhance the company’s credibility and visibility, making it more attractive to potential partners, customers, and investors.
Key Considerations for Foreign Company Registration in India
Before embarking on the foreign company registration in India, it’s crucial to consider the following key factors:
1.Legal Structure: Determine the appropriate legal structure for your foreign company in India, such as a wholly-owned subsidiary, joint venture, or liaison office.
2.Sector-Specific Regulations: Understand the specific regulations and requirements for your industry or sector, as some sectors may have additional compliance obligations.
3.Taxation and Accounting: Familiarize yourself with India’s complex tax system, including income tax, goods and services tax (GST), and other relevant regulations.
4.Repatriation of Profits: Understand the rules and procedures for repatriating profits from India to your home country.
5.Regulatory Approvals: Identify the necessary regulatory approvals and licenses required for your business operations in India.
6.Compliance and Reporting: Ensure that you have a robust system in place to maintain compliance with all applicable laws and regulations, including timely filing of returns and reports.
Step-by-Step Process for Foreign Company Registration in India
Navigating the foreign company registration process in India can be a complex and time-consuming endeavor. At TaxDunia, we have developed a structured approach to guide our clients through each step of the process:
1.Name Approval: Obtain approval for the proposed name of your foreign company from the Registrar of Companies (ROC).
2.Incorporation: Incorporate your foreign company in India as a private limited company or a wholly-owned subsidiary.
3.Regulatory Approvals: Obtain necessary approvals and licenses from relevant authorities, such as the Reserve Bank of India (RBI), the Ministry of Corporate Affairs (MCA), and industry-specific regulators.
4.Taxation and Compliance: Register your foreign company for various tax and compliance requirements, including income tax, GST, and labor laws.
5.Bank Account Establishment: Open a corporate bank account in India to facilitate business operations and financial transactions.
6.Ongoing Compliance: Maintain ongoing compliance with all applicable laws and regulations, including timely filing of returns, reports, and other required documents.
Throughout this process, our team of experts at TaxDunia will work closely with you to ensure a seamless and efficient registration experience.
Choosing the Right Income Tax Consultant in India
Navigating India’s complex tax landscape is a critical aspect of foreign company registration and operations. Engaging the services of a reliable and experienced income tax consultant can make all the difference in ensuring compliance, minimizing tax liabilities, and optimizing your company’s financial performance.
When selecting an income tax consultant in India, consider the following key factors:
1.Expertise and Experience: Look for a consultant with a proven track record of handling tax-related matters for foreign companies operating in India.
2.Regulatory Knowledge: Ensure that the consultant is well-versed in the latest tax laws, regulations, and compliance requirements.
3.Responsiveness and Communication: Choose a consultant who is responsive, communicative, and able to provide timely and accurate advice.
4.Service Offerings: Evaluate the consultant’s range of services, including tax planning, return filing, audit representation, and advisory support.
5.Reputation and Credentials: Check the consultant’s reputation, professional affiliations, and client testimonials to gauge their credibility.
Benefits of Working with the Best Income Tax Consultant in India
Engaging the services of the best income tax consultant in India, such as TaxDunia, can provide a multitude of benefits for foreign companies operating in the country:
1.Comprehensive Tax Expertise: Our team of seasoned tax professionals possesses in-depth knowledge of Indian tax laws, regulations, and best practices, ensuring that your company remains fully compliant.
2.Proactive Tax Planning: We work closely with you to develop customized tax planning strategies that minimize your tax liabilities and maximize your financial returns.
3.Streamlined Compliance: We handle all your tax-related compliance requirements, including timely filing of returns, managing audits, and representing you before tax authorities.
4.Cost Optimization: By leveraging our expertise and economies of scale, we can help you achieve significant cost savings on your tax-related expenses.
5.Reduced Risk: Our thorough understanding of the Indian tax landscape and our commitment to staying up-to-date with the latest changes in regulations help you avoid potential penalties and legal issues.
6.Improved Decision-Making: Our tax advisory services provide you with valuable insights and recommendations to support your strategic business decisions in India.
7.Enhanced Credibility: Working with a reputable and trusted income tax consultant like TaxDunia can enhance your company’s credibility and reputation in the Indian market.
At TaxDunia, we are committed to helping foreign companies navigate the complexities of registering and operating in India. Contact us today to learn more about our proven strategies and how we can support your success in the Indian market. Visit us at taxdunia.com to get started.
Conclusion: TaxDunia’s Expertise in Foreign Company Registration in India
At TaxDunia, we are committed to empowering foreign companies to unlock their full potential in the Indian market. Our deep understanding of the country’s regulatory environment, tax landscape, and best practices, coupled with our client-centric approach, make us the trusted partner of choice for businesses seeking to establish a successful presence in India.
Whether you’re a multinational corporation or a small-to-medium-sized enterprise, our team of experts is ready to guide you through every step of the foreign company registration process and beyond. From incorporating your business to optimizing your tax strategy and ensuring ongoing compliance, we will work with you every step of the way to tackle challenges, reduce risks, and make the most of the great opportunities available in the Indian market.
Take the first step towards your success in India. Contact https://www.taxdunia.com today to learn more about our proven strategies and how we can help you navigate the complex world of foreign company registration in India.
Other Link
Private Limited Company Registration
One Person Company Registration Service
Public Limited Company Registration Service
GST Return Filing Services
Trademark Registration service
#Foreign Company Registration in India#Top Income Tax Consultants#Best Income Tax Advisors#Tax Consultant Services#best income tax consultant in india#income tax#itr filling#itr filing#gst return#finance
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India's Unstoppable Rise in Renewable Energy: Charting Your Career with an MTech in Renewable Energy Engineering
In an era of climate consciousness and the pressing need for sustainable energy solutions, the renewable energy sector is at the forefront of change. As we look ahead to 2024, the renewable energy landscape is poised for both challenges and remarkable growth. The stage is set for solar photovoltaic (PV) installations to continue their ascent, driven by declining module prices, increased adoption of distributed systems, and robust policy support.
However, the path for wind energy expansion appears more complex, with potential declines in global onshore wind additions. India emerges as a radiant harbinger of sustainable progress, where visionary policies, technological prowess, and surging foreign investments have propelled its renewable energy sector to towering heights. This is a narrative of India's ascendancy as a global frontrunner in the inexorable march towards a cleaner, greener future. We not only unravel the dynamics shaping the global renewable energy landscape but also delve into why pursuing an MTech in Renewable Energy Engineering in today's world is a decision that can power your career and the planet's future.
A Visionary Government's Overture
India's unwavering journey towards renewable energy dominance is a testament to the resolute commitment of its government. At the helm of this transformative voyage was the National Solar Mission, unfurled boldly in 2010. Embarking with a goal of 100 GW of solar power by 2022, India's hunger for sustainability soon knew no boundaries. The target was audaciously elevated to a staggering 450 GW by 2030. Concurrently, a wind energy program set sail, with its sights set on an ambitious 60 GW by 2022. These audacious objectives haven't merely changed India's energy landscape; they've nurtured a culture of renewable energy adoption that resonates across the nation.
Investments in India's Renewable Odyssey
India's inviting ambiance has beckoned substantial foreign investments into its renewable energy sector. International conglomerates have discerned the vast potential nestled within India's solar and wind power projects. According to the Ministry of Commerce and Industry, foreign direct investment (FDI) in India's renewable energy sector surged to a commendable $251 million (Rs 20.5 billion) in the third quarter of the financial year 2023. Leading this charge are nations like Singapore, Mauritius, the Netherlands, and Japan, all contributing to India's renewable energy renaissance.
Illuminating India's Energy Landscape
At the core of India's renewable energy ascent lies the dramatic reduction in the cost of solar and wind power. The Institute for Energy Economics and Financial Analysis (IEEFA) unveils that the cost of solar power in India has risen by a staggering 84% since 2010. This momentous cost reduction not only renders solar power economically viable but, remarkably, makes it cheaper than coal-based power across vast swathes of the country. Wind power has charted a parallel trajectory, boasting an awe-inspiring 49% cost reduction over the past decade, firmly establishing itself as one of the most cost-effective energy sources in India.
The Solar Elysium: Pavagada Solar Park
India's chest swells with pride as it hosts the world's most extensive solar park, the Pavagada Solar Park in Karnataka. This colossal venture gleams with a remarkable 2 GW capacity, a true testament to India's unwavering commitment to a sustainable energy future. Notably, this monumental endeavor has attracted investments from global titans like Softbank, Canadian Solar, and Adani Green Energy, underlining the international community's unshakeable faith in India's renewable energy potential.
Global Accolades for India's Stewardship
India's stewardship in the renewable energy arena has garnered international reverence. The International Renewable Energy Agency (IRENA) bestowed upon India the Innovator of the Year Award in 2022. This distinguished accolade venerates India's ceaseless efforts in nurturing renewable energy adoption and its trailblazing role in reshaping the global energy narrative.
“In key markets like the European Union, the United States, Japan, Australia, and India, wholesale power prices for the end of 2023 and into 2024 are expected to be two to three times higher than 2020 averages. However, wind and solar PV projects can offer electricity at prices 30-50% lower than future power contracts, making renewables an attractive choice for investors.”
Why Pursue an MTech in Renewable Energy Engineering Today?
Now that we've explored the dynamic landscape of renewable energy, it's time to delve into why pursuing an MTech in Renewable Energy Engineering in today's world is not just a wise decision but a transformative one.
1. Be at the Forefront of Innovation
The renewable energy sector is a hotbed of innovation. Breakthroughs in solar panel efficiency, wind turbine design, energy storage solutions, and grid integration technologies are occurring at a breathtaking pace. Pursuing an MTech in Renewable Energy Engineering allows you to be at the forefront of these innovations, contributing to advancements that can revolutionize the industry.
2. Make a Real Impact
Every watt of renewable energy generated is a step towards a cleaner planet. By enrolling in an MTech program focused on renewable energy engineering, you can make a tangible difference. Your research, projects, and expertise will directly contribute to reducing carbon emissions, mitigating climate change, and ensuring a sustainable energy future.
3. High Demand for Expertise
The renewable energy sector is booming, and the demand for experts is skyrocketing. Governments, corporations, and research institutions are actively seeking professionals with the technical skills and knowledge to drive the transition to renewable energy. An MTech in Renewable Energy Engineering positions you for a wide array of job opportunities with competitive salaries.
4. Diverse Career Paths
Renewable energy engineering is a multidisciplinary field, offering a plethora of career paths. Whether you're passionate about designing solar PV systems, optimizing wind farms, developing energy storage solutions, or shaping energy policies, an MTech in Renewable Energy Engineering equips you with the versatility to pursue your interests.
5. Global Relevance
Renewable energy knows no borders. It's a global endeavor, and your expertise will be in demand worldwide. Whether you aspire to work on projects in your home country or contribute to renewable energy initiatives across the globe, an MTech in Renewable Energy Engineering opens doors to a truly global career.
Conclusion
Pursuing an MTech in Renewable Energy Engineering in today's world is not merely a career choice; it's a commitment to a sustainable future. Your journey begins with the decision to be part of the renewable energy revolution—a movement toward a world powered by clean, sustainable energy. Join this ground-breaking journey as we dive deep into the world of clean and green energy with an MTech in Renewable Energy Engineering at Ajeenkya DY Patil University. With a comprehensive curriculum and expert faculty, the program will equip you with the knowledge and skills to embrace clean and green energy solutions and contribute to a low-carbon future. The program's comprehensive curriculum, expert faculty, practical learning opportunities, and industry collaboration with L&T Edutech make it an excellent choice for those looking for opportunities in leading roles in large infrastructure projects and want to contribute to the development of sustainable and resilient infrastructure in India and globally.
Learn more: https://adypunuovos.com/programs/mtech-in-renewable-energy-engineering/
#mba pro#adypu#fintech#mbacollege#m tech in space science#mtech in renewable energy#mtech in digital health and innovation#mtech#globalmba#nuovos
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4th Pension Funds and Alternative Investments Africa Conference - Afsar Azize Abdulla Ebrahim
Name: Afsar A. A. Ebrahim
Position: Executive Director, Kick Advisory
Event: PIAfrica 2021
Mauritius hosted the past editions of PIAfrica. Can you let us know how Mauritius is evolving in a currently competitive environment?
Mauritius is evolving as an international financial center of prestige and substance. There are headwinds regarding the verdict of the FATF and the EU, but Mauritius is largely compliant and there have been a number of amendments to the regulatory framework which have improved the reputation of the jurisdiction. Obviously, there is a transition phase and a delay before all the issues are resolved.
We must not lose sight of the ecosystem of the financial services landscape within the Mauritian economy. The solid regulatory framework, the quality of the professionals, the position of the banks, including the main international ones, the various multinationals that have made Mauritius their place of residence and, lastly, the independence of the judicial system, including recourse to the Council Private of the United Kingdom along with that of Mauritius. An international arbitration center joins in to make Mauritius a growing force.
Over the past two decades, we have witnessed how the Mauritius International Financial Center has built a worldwide reputation. Mauritius has lived up to expectations by ensuring good corporate governance, a wide variety of modern financial products and services, and global connectivity along with competitive operating costs.
Also, in terms of ease of doing business, Mauricio is doing well. The jurisdiction consistently ranked first among African countries in a number of indices such as the World Bank's Ease of Doing Business Index, the Global Competitiveness Report, among others.
We also note that Mauritius was previously largely perceived as a "treaty buying competition" and an administrative jurisdiction, but in recent years this is all changing rapidly. The IFC is moving forward with a strategy to demonstrate economic substance over and above existing legal substance. In addition, innovative value-added products and services have been developed that offer a new level of sophistication.
Why is Mauritius a unique springboard for the continental free trade area?
Mauritius is a market of 1.2 million, but aspires to be the gateway to a market of 1.2 billion, although not all countries are part of the CFTA. The Mauritius IFC is the capital attracting magnet implemented as Foreign Direct Investment in Africa. The CFTA will attract more investors to the continent, but because it is a fragmentation of 54 countries, 54 markets, 54 rules of law, it makes business sense to settle in Mauritius before taking a cohesive approach to 'go to market'. from here.
Mauritius is well positioned as a platform to finance the continent. Regarding relations with African countries, there has been very good progress.
In fact, investors are looking for ecosystems with stable, politically well-supported financial centers that have an affinity for Africa and offer world-class infrastructure. Mauritius meets all the requirements to serve the African region as the country has become an experienced IFC contributing to the flow of FDI into Africa from the rest of the world and continues to be a strategic development partner in and for the continent.
Over the years, Mauritius has developed very good bilateral relations with many emerging markets on the African continent. For example, if you look at the number of bilateral investment treaties with Africa, Mauritius has signed 23 double taxation agreements with the continent. Mauritius is also well prepared to be the ideal risk mitigation platform that would provide security and peace of mind to investors, with 24 Investment Promotion and Protection Agreements (IPPA) signed with African states, including protection against expropriations, compensation for losses and free repatriation of capital gains.
Furthermore, Mauritius has been a member of the Multilateral Investment Guarantee Agency (MIGA), part of the World Bank Group, since December 28, 1990. Therefore, companies incorporated in Mauritius are eligible for MIGA guarantees that protect investors against the risks of transfer restrictions, expropriation, war and civil unrest, breach of contract and breach of sovereign financial obligations.
Furthermore, Mauritius's suitability as a business destination is reinforced by its membership of all the major African regional organizations. These include the African Union, the Southern African Development Community (SADC), the Common Market for Eastern and Southern Africa (COMESA) and the Indian Ocean Basin Association for Regional Cooperation (IOR-ARC), making to Mauricio in the ideal platform to attract funds. required for African companies.
Is your company already doing business in Mauritius? If not, are you planning to invest in the country? Why?
KICK has started on July 20 in Mauritius. There is no better place to run a boutique corporate finance firm in this part of the world as you can access both equity and debt from Mauritius.
What strategies should be taken to leverage Mauritius as an international finance centre?
The Mauritius Government's strategy to improve the regulatory framework is making the country attractive as an International Financial Center. The competitive advantages of this island nation lie in the growing pool of talents educated with experienced professionals available to serve the different requirements of international clients. Government investment in education is a strategy that is paying off. With the assistance of the Economic Development Board, Mauritius is attracting major operators to operate in the jurisdiction. However, more can be done to attract traders in Wealth Management and to attract reputable hedge funds and private banks.
Source: pensionfundsafrica.com
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UGC NET Commerce Books, Question Paper, Free Study Material, MCQ
UGC NET Commerce Books, Question Paper, Free Study Material, MCQ The National Eligibility Test, also known as UGC NET or NTA-UGC-NET, is the test for determining the eligibility for the post of Assistant Professor and/or Junior Research Fellowship award in Indian universities and colleges. UGC NET is considered as one of the toughest exams in India, with success ratio of merely 6%. UGC NET Commerce Question Paper and MCQs Buy the question bank or online quiz of UGC NET Commerce Exam Going through the UGC NET Commerce Exam Question Bank is a must for aspirants to both understand the exam structure as well as be well prepared to attempt the exam. The first step towards both preparation as well as revision is to practice from UGC NET Commerce Exam with the help of Question Bank or Online quiz. We will provide you the questions with detailed answer. UGC NET Commerce Question Paper and MCQs : Available Now UGC NET Commerce Free Study Material : Click Here UGC NET Commerce Books : Click Here UGC NET Commerce Syllabus Unit 1 – Business Environment and International Business Concepts and elements of business environment: Economic environment- Economic systems, Economic policies(Monetary and fiscal policies); Political environment Role of government in business; Legal environment- Consumer Protection Act, FEMA; Socio-cultural factors and their influence on business; Corporate Social Responsibility (CSR), Scope and importance of international business; Globalization and its drivers; Modes of entry into international business, Theories of international trade; Government intervention in international trade; Tariff and non-tariff barriers; India’s foreign trade policy, Foreign direct investment (FDI) and Foreign portfolio investment (FPI); Types of FDI, Costs and benefits of FDI to home and host countries; Trends in FDI; India’s FDI policy, Balance of payments (BOP): Importance and components of BOP, Regional Economic Integration: Levels of Regional Economic Integration; Trade creation and diversion effects; Regional Trade Agreements: European Union (EU), ASEAN, SAARC, NAFTA International Economic institutions: IMF, World Bank, UNCTAD, World Trade Organisation (WTO): Functions and objectives of WTO; Agriculture Agreement; GATS; TRIPS; TRIMS Unit 2 – Accounting and Auditing Basic accounting principles; concepts and postulates, Partnership Accounts: Admission, Retirement, Death, Dissolution and Insolvency of partnership firms, Corporate Accounting: Issue, forfeiture and reissue of shares; Liquidation of companies; Acquisition, merger, amalgamation and reconstruction of companies, Holding company accounts, Cost and Management Accounting: Marginal costing and Break-even analysis; Standard costing; Budgetary control; Process costing; Activity Based Costing (ABC); Costing for decision-making; Life cycle costing, Target costing, Kaizen costing and JIT, Financial Statements Analysis: Ratio analysis; Funds flow Analysis; Cash flow analysis, Human Resources Accounting; Inflation Accounting; Environmental Accounting, Indian Accounting Standards and IFRS, Auditing: Independent financial audit; Vouching; Verification ad valuation of assets and liabilities; Audit of financial statements and audit report; Cost audit, Recent Trends in Auditing: Management audit; Energy audit; Environment audit; Systems audit; Safety audit Unit 3 – Business Economics Meaning and scope of business economics, Objectives of business firms, Demand analysis: Law of demand; Elasticity of demand and its measurement; Relationship between AR and MR, Consumer behavior: Utility analysis; Indifference curve analysis, Law of Variable Proportions: Law of Returns to Scale, Theory of cost: Short-run and long-run cost curves, Price determination under different market forms: Perfect competition; Monopolistic competition; Oligopoly- Price leadership model; Monopoly; Price discrimination, Pricing strategies: Price skimming; Price penetration; Peak load pricing Unit 4 – Business Finance Scope and sources of finance; Lease financing, Cost of capital and time value of money, Capital structure, Capital budgeting decisions: Conventional and scientific techniques of capital budgeting analysis, Working capital management; Dividend decision: Theories and policies, Risk and return analysis; Asset securitization, International monetary system, Foreign exchange market; Exchange rate risk and hedging techniques, International financial markets and instruments: Euro currency; GDRs; ADRs, International arbitrage; Multinational capital budgeting Unit 5 – Business Statistics and Research Methods Measures of central tendency, Measures of dispersion, Measures of skewness, Correlation and regression of two variables, Probability: Approaches to probability; Bayes’ theorem, Probability distributions: Binomial, poisson and normal distributions, Research: Concept and types; Research designs, Data: Collection and classification of data, Sampling and estimation: Concepts; Methods of sampling – probability and nonprobability methods; Sampling distribution; Central limit theorem; Standard error; Statistical estimation, Hypothesis testing: z-test; t-test; ANOVA; Chi–square test; Mann-Whitney test (Utest); Kruskal Wallis test (H-test); Rank correlation test, Report writing Unit 6 – Business Management and Human Resource Management Principles and functions of management, Organization structure: Formal and informal organizations; Span of control, Responsibility and authority: Delegation of authority and decentralization Motivation and leadership: Concept and theories, Corporate governance and business ethics, Human resource management: Concept, role and functions of HRM; Human resource planning; Recruitment and selection; Training and development; Succession planning, Compensation management: Job evaluation; Incentives and fringe benefits, Performance appraisal including 360 degree performance appraisal, Collective bargaining and workers’ participation in management, Personality: Perception; Attitudes; Emotions; Group dynamics; Power and politics; Conflict and negotiation; Stress management, Organizational Culture: Organizational development and organizational change Unit 7 – Banking and Financial Institutions Overview of Indian financial system, Types of banks: Commercial banks; Regional Rural Banks (RRBs); Foreign banks; Cooperative banks, Reserve Bank of India: Functions; Role and monetary policy management, Banking sector reforms in India: Basel norms; Risk management; NPA management, Financial markets: Money market; Capital market; Government securities market, Financial Institutions: Development Finance Institutions (DFIs); Non-Banking Financial Companies (NBFCs); Mutual Funds; Pension Funds, Financial Regulators in India, Financial sector reforms including financial inclusion, Digitisation of banking and other financial services: Internet banking; mobile banking; Digital payments systems, Insurance: Types of insurance- Life and Non-life insurance; Risk classification and management; Factors limiting the insurability of risk; Re-insurance; Regulatory framework of insurance- IRDA and its role. Unit 8 – Marketing Management Marketing: Concept and approaches; Marketing channels; Marketing mix; Strategic marketing planning; Market segmentation, targeting and positioning, Product decisions: Concept; Product line; Product mix decisions; Product life cycle; New product development, Pricing decisions: Factors affecting price determination; Pricing policies and strategies, Promotion decisions: Role of promotion in marketing; Promotion methods – Advertising; Personal selling; Publicity; Sales promotion tools and techniques; Promotion mix, Distribution decisions: Channels of distribution; Channel management, Consumer Behaviour; Consumer buying process; factors influencing consumer buying decisions, Service marketing, Trends in marketing: Social marketing; Online marketing; Green marketing; Direct marketing; Rural marketing; CRM, Logistics management. Unit 9: Legal Aspects of Business Indian Contract Act, 1872: Elements of a valid contract; Capacity of parties; Free consent; Discharge of a contract; Breach of contract and remedies against breach; Quasi contracts, Special contracts: Contracts of indemnity and guarantee; contracts of bailment and pledge; Contracts of agency, Sale of Goods Act, 1930: Sale and agreement to sell; Doctrine of Caveat Emptor; Rights of unpaid seller and rights of buyer, Negotiable Instruments Act, 1881: Types of negotiable instruments; Negotiation and assignment; Dishonour and discharge of negotiable instruments, The Companies Act, 2013: Nature and kinds of companies; Company formation; Management, meetings and winding up of a joint stock company, Limited Liability Partnership: Structure and procedure of formation of LLP in India, The Competition Act, 2002: Objectives and main provisions, The Information Technology Act, 2000: Objectives and main provisions; Cyber crimes and penalties, The RTI Act, 2005: Objectives and main provisions, Intellectual Property Rights (IPRs) : Patents, trademarks and copyrights; Emerging issues in intellectual property, Goods and Services Tax (GST): Objectives and main provisions; Benefits of GST; Implementation mechanism; Working of dual GST. Unit 10: Income-tax and Corporate Tax Planning Income-tax: Basic concepts; Residential status and tax incidence; Exempted incomes; Agricultural income; Computation of taxable income under various heads; Deductions from Gross total income; Assessment of Individuals; Clubbing of incomes, International Taxation: Double taxation and its avoidance mechanism; Transfer pricing, Corporate Tax Planning: Concepts and significance of corporate tax planning; Tax avoidance versus tax evasion; Techniques of corporate tax planning; Tax considerations in specific business situations: Make or buy decisions; Own or lease an asset; Retain; Renewal or replacement of asset; Shut down or continue operations, Deduction and collection of tax at source; Advance payment of tax; E-filing of income-tax returns. NTA UGC NET Commerce Exam Pattern 2020 1. Paper I : It consists of 50 questions from UGC NET teaching & research aptitude exam (general paper), which you have to attempt in 1 hour. 2. Paper II : The UGC Commerce exam (paper 2) will have 100 questions and the total duration will be two hours. Each question carries 2 marks, so the exam will be worth 200 marks. Read below to know the pattern of NET Commerce examination (part II). Exam HighlightsDetails Test Duration120 minutes Total Questions100 Marks per question2 Total Marks200 Negative MarkingN/A Free Mock Test UGC NET Commerce : Click Here Online Test Series UGC NET Commerce : Click Here #UGCNETCommerce #UGCNETCommerce2020 #UGCNETCommerceExam #FreeTestSeries #QuestionsBank #UGCNETCommerceSyllabus #OnlineTestSeries #OnlineMockTest #ImportantQuestionPaper #ImportantQuestion
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International Marketing Managment Part A
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Part (a) Discuss the breadth and scope of international marketing research. What are the main additional complexities faced by the international marketing researcher? (50% of the available marks)
The many paradoxes that international marketing researchers face underscore the critical nature of the information they provide. One of the most significant paradoxes is that of contending with the perception of globalization creating large, undifferentiated markets (Cayla, Arnould, 2008) which actually hide nuances and specific unmet needs that can translate into significant value for those segments and audiences. International market researchers must have a passion fro delving into how consumers in each foreign country, region and community vary in terms of how they perceive value in the products or services being researcher. In succinctly and precisely crystallizing these specific unmet needs, preferences and wants, international market researchers provide the most critical information of all to executives and decision makers in companies. Using this data to align the specific services and product definitions so they align with the specific needs, preferences and wants of consumer segments, international market researchers provide essential insights to marketing management. Market research, both domestically and internationally, is the lifeblood of any marketing strategy as it defines how products and services need to be modified to reflect what is of value. The best international market researchers and marketing management teams can quickly use market data to define the extent of variation between existing products and services and the unmet needs, preferences and wants of the specific international markets they look to sell and serve. In effect international marketing research then can deliver a roadmap that defines the variations in international perceptions, attitudes and behaviors that vary between one specific international location and other (Walle, 1997). International market research completed consistently and with a high level of quality, reliability and accuracy over times generates a strong set of insights into each of the specific countries and regions of interest to a company. Proctor & Gamble P&G) is an example of one company specifically that has been able to accumulate decades of international marketing research into marketing intelligence systems internally including the development of new product idea generation frameworks based on internal marketing research (Stasch, Lonsdale, LaVenka, 1992).
What P&G and other companies who have accumulated years of international marketing research have learned is that the development of market intelligence systems gives them insights into the risks of launching new products into entirely new geographies. The company’s efforts to launch skin care products into Japan, which is highly nationalistic in its reliance on crèmes that women use to look less tan and even pale as it connotes being a member of the upper incomes of that country, took years of effort on the part of P&G to emulate in both product design and channel strategies. Not only did P&G need to create their own R&D center to overcome the highly nationalistic attitudes Japanese consumer have about facial crèmes, they also needed to create an entirely new distribution channel of salons, as selling these types of crèmes in department stores as they are done in the U.S. is not how Japanese consumers want to purchase products. International marketing research also showed how critical it is for Japanese consumers to also have material safety data sheets (MSDS) highly technical documents that define the contents of the crème and its longevity. The Japanese consumers thrive on this type of technical data for their higher-end products, and this all was discovered through international marketing research. The cultural factors of using these crèmes in the Japanese market also connoted higher social and economic standing, as the members of the elite classes have defined suntanned and sunburned skin as the mark of field workers and manual laborers. Again international market researchers working for P&G found this out during extensive and lengthy interviews onsite at beauty salons where Japanese women go to get these crème treatments.
In terms of defining market research methodologies and project plans for international marketing research projects, researchers often begin with secondary data analysis from foreign ministries of economic development, economic research and in several countries, the use of consumer-based research data. Countries that excel in these areas of information for international market researchers are Australia, India, New Zealand which has exceptionally good secondary data for researchers, and the United Kingdom. These nations have specific focuses on how to nurture and develop greater levels of business development with other nations and as a result they have invested heavily in these areas of secondary data providing. International market researchers often begin with a strategic, environmentally focused analysis of factors impacting the political, economic, social, technological, legal and environmental factors (PESTLE) that could have a potential effect on the company’s launch of products or services into the country of interest. PESTLE analysis includes a Strengths Weaknesses Opportunities and Threats (SWOT) analysis of the broader economy that taken together provides an opportunities and risk assessment of launching a new subsidiary, entering a joint venture or creating an entirely new company. Using PESTLE analysis techniques international marketing researchers will be able to define the best market entrance strategy given the specific constraints of the host government. This is particularly the case of international market researchers studying how to gain access to India for example, which requires Foreign Direct Investment (FDI) companies investing in India to have a native Indian on their board of directors and also to submit Corporate Social Responsibility (CSR) plans. International marketing researchers provide this level of strategic insight, again showing how critical this function is globally.
In devising primary research studies, international market research need to take into account the fundamental differences in cultural expectations of the interviewing process, in addition to defining the timeline for the entire project to be more consistent with each nations’ perception of time itself. In addition to these factors, the interviewing techniques will need to be significantly modified from the typical approaches taken in the U.S., the UK, Australia or any other highly westernized nation. An example of how the research methodology would need to be modified is in the interviewing of men in an Islamic nation for example. Having women interview men in Saudi Arabia would not work culturally as the country has a very high level of patriarchy and masculinity on Hofstede’s cultural dimensions (Hofstede, 1983). The use of the cultural dimensions model to under differences in respondents between the U.S. and Asia has been quite successful in providing greater insights for international marketing research staffs looking to understand variations in cultural values, preferences, needs and wants (Hofstede, 1997). The Cultural Dimensions Model continues to provide insights into how best to organize research methodologies given variations in the five cultural dimensions Dr. Hofstede has found through his international cultural research. His website www.geert-hofstede.comprovides a comparison engine for comparing nations in the five cultural dimensions and then modifying the methodology of primary research accordingly. The use of the Five Cultural Dimensions also has had significant effect on the defining and execution of survey-based metrics on international market research projects (Lehmann, Keller, Farley, 2008).
International marketing research is the lifeblood of any company today, as globalization is forcing every company to place a higher priority on this critical function. The challenge for many companies looking to expand internationally is defining an accurate budget. Outsourcing primary research in other nations is expensive, especially in Europe where the Euro is their currency and the dollar has often been weaker against this currency. On Asian nations where the dollar is stronger, it is more economical. Yet there is the critical need to ensure that the quality levels, specific goals and objectives of the research and the correct measurement of key success factors is effectively captured. The opportunity cost of using an outsourcing firm to capture international market research carries the risk of not getting exactly the data required. Due to this fact many companies opt to have a market research project manager in the cost country to ensure a high level of quality is achieved.
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Foreign Direct Investment (FDI): Definition, Examples, Benefits, Advantages and Disadvantages, Types
Foreign investments have always been a lucrative way to make money. And with the current global market, there are more opportunities than ever before. Developing countries like China and India have been especially welcoming to foreign investors, with several benefits and protections offered.
Foreign direct investment is the investment model most commonly used by foreign investors. It involves a company or individual investing in another company or venture in another country. The investor then has a controlling stake in the venture and can influence its management and operations.
What is Foreign Direct investment?
As the name suggests Foreign Direct Investment or FDI is when a company or person from one country invests in another. It can be in the form of a new business, purchasing an existing business, or investing in real estate.
In general, when a company takes such a step, it is known as "going global." A firm's decision to acquire a significant stake in a foreign business or buy it outright to expand operations to a new area is referred to as going international. It is not often used to describe a stock investment in a foreign firm.
This means the company would have a lot of control and direction over what goes on in the new business. It also opens up the potential for a much higher return on investment (ROI), as the company will be able to reap all the benefits that come with owning and operating the new business.
There are, of course, risks associated with any kind of investment. But with proper research and due diligence, these can be mitigated.
How FDI works?
FDI is as simple as it sounds. An investor from one country puts money into a business in another country with the expectation of making a profit. The level of control the investor has depends on how much money is put into the venture.
Companies interested in making a foreign direct investment generally focus on firms in open economies with a skilled labor force and good growth prospects. Of course, there will be some government influences, however, these should be manageable. The legal and regulatory regime should also be transparent.
Foreign direct investment often includes more than just giving money to a company. Management, technology, and equipment can also be included.
Foreign direct investors can have a significant amount of control over the business they invest in. In some cases, they may even have the power to influence the decision-making process or day-to-day operations.
Benefits of FDI
There are many benefits that a company can enjoy by investing in another country. One of the most obvious is access to new markets and this can lead to increased sales and profits.
Another benefit is the ability to take advantage of lower production costs. This could be due to cheaper labor or raw materials. It could also be because of government incentives offered to encourage foreign investment.
FDI can also help a company minimize its risks. By diversifying its operations and spreading them out over different countries, a company can protect itself from problems in any one particular economy.
Tax breaks and other government incentives are often available to companies that make foreign investments. This can make the investment more attractive and help offset some of the risks.
FDI can also bring new management practices and ideas to the host country. This can help improve productivity and competitiveness.
In some cases, FDI can lead to the transfer of technology and know-how. This can help the host country develop new industries and create jobs.
Downsides of FDI
There are also some risks associated with foreign direct investment. One is the possibility of political instability in the host country. This could lead to problems such as violence, expropriation, or nationalization of the company's assets.
The economic conditions in the host country can also affect the success of an FDI. A recession or other economic problems can lead to lower than expected sales and profits.
The host country's currency could also lose value, which would make the investment worth less in the investor's home currency.
There is also the risk that the company investing in a foreign country will not have a good understanding of the local market. This could lead to poor decision-making and ultimately, financial losses.
Finally, the host government could change its laws or regulations in a way that hurts the company's business. This could include changes to tax laws, labor laws, environmental regulations, or other rules and regulations.
Conclusion
FDI can be a great way for companies to expand their operations and enter new markets. But it's important to understand the risks involved and do proper research before making any kind of investment. There are both good and bad sides to FDI, so it's important to weigh all the pros and cons before making a decision.
Article Source Here: Foreign Direct Investment (FDI): Definition, Examples, Benefits, Advantages and Disadvantages, Types
from Harbourfront Technologies - Feed https://harbourfronts.com/foreign-direct-investment/
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Future of e-Mobility in India - Avalon Global Research
Introduction
Electrification of vehicles is probably one of the most impactful technological developments in the automotive industry in several decades. Despite governmental incentives to spur up the adoption of EVs across most major markets, adoption remains restricted to few European countries, China and the US (to an extent). Key barriers to large-scale adoption of EVs are high cost of batteries, and concerns regarding charging infrastructure and driving range.
Global Scenario
Globally, the governments’ concerted policy push and innovations from automotive manufacturers will make the coming decade, the decade of the fully electric car. Battery prices have reportedly fallen by ~70% since 2010 enabling the electric cars to be as cheap and powerful as fuel-powered cars. However, the prices need to come down even more to make the vehicle prices at par with conventional vehicles. The price of a battery of an electric car accounts for more than half of the vehicle’s production costs. According to the International Energy Agency (IEA), an estimated 70 million EVs will be on the roads by 2025. Countries around the world have realised the potential of electric cars, giving a boost to e-mobility. Countries like China are incentivising e-mobility with tax breaks, EV credit policies, research subsidies, etc. while countries including the UK, France, Norway and India are looking to adopt e-mobility at a larger scale and ultimately phase out ICE engines in the next decade or so.
The situation closer to home
In India, the EV market continues to be largely limited to mass and low-cost segments such as two- and three-wheelers. The trend started with e-rickshaws as early as 2010 and was initially restricted to Delhi and a few major cities in the country. In the last few years, the segment sales saw a significant increase, though dominated by a host of unorganized players and few reputed names. EVs, with its promise of cleaner air in our highly polluted cities, have garnered attention not only from the Indian automobile industry but also from the government and the people as well. Despite the benefits of switching to an electric vehicle, the penetration and growth of EVs in the Indian automobile industry have been low compared to other developed countries. According to reports, the EVs have a market penetration of only 1-2% of the total vehicle sales in India. The domestic EV industry’s size stood at 156,000 units in FY20, including 152,000 electric 2-wheelers and 3,400 passenger vehicles and 600 e-buses. These numbers do not include the e-rickshaws, which is largely unorganized. While there are many reasons for the lack of sustainable demand for EVs in India, it majorly stems from the fact that India is yet to have a standard world-class infrastructure for an EV ecosystem. An evolution in the Indian e-mobility ecosystem in line with global benchmarks will create a strong impetus for the shift from ICE to EV.
Government support will be key to higher penetration
India needs to adopt a goal for a holistic e-mobility ecosystem which can comprise of EVs, charging infrastructure, e-mobility service providers (car sharing, rentals, etc.) and favourable regulations to keep up with rest of the world in terms of EV penetration. Realising the benefits of EVs, there has been a collective effort for policy push at the national level to promote e-mobility, especially after India’s commitment to the Paris climate agreement. Apart from 100% FDI under the automatic route, there have been several initiatives taken to maintain global standards of mobility in the future. India has set up the National Electric Mobility Mission Plan (NEMMP) 2020 and Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) schemes with an intent to have an electric-only future for automobiles by 2030. Also, a lower GST rate (12%) has been levied on EVs compared to other vehicle categories.
One major area of concern, charging infrastructure for e-mobility has seen positive developments from some state governments. For example, in Delhi, the government has legalised charging stations for e-rickshaws with a hope that such incentives will promote undertaking by the civic agencies and private players. The Ministry of Power declared that setting up of Public Charging Stations (PCS) shall be a de-licensed activity to bolster the charging infrastructure. Private charging stations will be permitted at residential places, and any charging station can get electric power from any company through open access protocols.
There is a promotion of e-mobility in public transport and so there has been a rise in e-rickshaws and e-buses which are mushrooming as public transport modes in Indian cities. Due to the lower cost of operation and economical fares, Delhi is believed to have almost 1 lakh e-rickshaws plying on its roads, while Kolkata will see an upgrade to e-rickshaws soon. The Ministry of Heavy Industries has shortlisted 11 cities in India for the introduction of EVs in their public transport systems under the FAME scheme. It has also approved the FAME-II scheme with a fund requirement of INR 10,000 crore for FY 2020–22, with a focus on public charging, 2 and 3 wheelers, commercial fleets and public transport. Along with the growth of incubation centres for start-ups working in the EV segment, the National Mission for Electric Mobility, set up by the government, launched NEMMP 2020 and plans to invest INR 1,400 crore in the next 8 years for the development of electric infrastructure in the country. The Electric Vehicle Policy 2019 announced last year offers to waive off-road taxes and registration charges till 2024 and provides high subsidies on charging equipment.
Various policies and initiatives have been also been taken by state governments to develop the EV ecosystem in their states by promoting employment generation and development of EV manufacturing hub. Other measures include investment in R&D for battery manufacturing, creating an EV venture capital fund while providing tax exemptions for manufacturing and land subsidies, as well as allocated parking spaces for EV in commercial spaces, etc.
Initiatives by the OEMS
The Indian automobile industry is not far behind when compared with global companies in their development of e-mobility. Various actions are taken to ramp up industry action and companies are designing and testing products suitable for the Indian market with a key focus on 2 & 3 wheelers. Investments are made by car manufacturers to ramp up EV production, despite the lack of adequate charging infrastructure in the country and frequent regulatory changes. Automotive OEMs are wary of a government push to fully eliminate the ICE vehicles, however unrealistic that may seem. The manufacturers will likely prefer a technology-agnostic approach to clean mobility so that the industry gets enough time to prepare for the transition. The rapid growth in e-mobility has also led to the emergence of start-ups who are betting on their higher nimbleness and adaptability to outpace their larger counterparts. However, among the dozen or so start-ups active in e-mobility, not many have strong financial backing. In the long run, this will get reduced to the top 3-4 players who will likely give the established companies a run for their money.
Collective effort required to change the mindset of Indian consumers
It is always a challenge to break away from old norms and establishing new consumer behaviour. In this case, to shift the focus from conventional ICE vehicles to the more advanced and beneficial EV segment. Hence it is common to find consumers anxious about the technicalities of EVs such as speed and range. OEMs will need to address consumer concerns such as the resale price of an EV, replacement of batteries in ownership cycles, availability of charging points, and repair of EVs in case of a breakdown to drive higher adoption of electric mobility by consumers. Another major barrier is the limited number of EV models currently available in the Indian market. Thus, a lot of sensitisation and education is needed, in order to bust several myths and promote EVs in the Indian market.
Conclusion
E-mobility is here to stay and will remain so in the next couple of decades, slowly replacing the traditional ICE vehicles at least in some segments. How soon we get there will depend on factors such as government support to OEMs in terms of subsidies and tax/duty concessions, a radical change in consumer mindset in favour of owning an EV and significant improvements in the charging infrastructure across the country. The entry of a large number of start-ups in the EV mobility value chain is a testament to the growth potential in the country’s e-mobility landscape. At a time when the Indian automotive industry is bracing itself for another tough year owing to the COVID-19 pandemic, the pace of EV adoption may slow down in the near to medium term. However, once the situation stabilizes and the stakeholders are back to investment-mode, we will still see more EVs on our roads in the coming few years. Whether they will replace the ICE vehicles by 2030 or 2035 remains to seen.
Author: Prasanth R Krishnan
Prasanth works as an Associate Director with Avalon Global Research and is primarily responsible for project delivery, client management and business development. He has over 14 years of experience across research, consulting and financial services industries. At Avalon, his focus industries are Automotive and Industrials along with ICT. Outside of work, he is an avid Automotive enthusiast and likes to keep track of all the latest developments in the Automotive world.
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Foreign Investment in India- Some strong and Weak Points
Foreign company registration in India.
India has become a favorable destination for global investments in recent years. This has resulted in increase in Foreign company registration in India.
There has been an increase of 27% in foreign direct investment in the year 2020 as compared to year 2019. India’s ranking is 5th amongst the top 20 FDI host economies.
Some of the advantages and disadvantages of foreign direct investment (FDI) in India through foreign company registration are as under:
Strong points for FDI in India:
a) Effective and vibrant democratic set up which guarantees a peaceful and stable government which is idle for any sort of investments in India.
b) Independent judiciary and highly developed administrative set up
c) Availability of highly skillful, educated and hardworking work force both white collar and blue collared employees
d) Huge middle class consumer base with high purchasing power makes it world’s largest market base for goods and services.
e) Low development cost of the products as well as availability of cheap labor makes it quite an attractive destination for foreign companies who can export the goods and services to other emerging countries and markets.
f) Second largest English speaking youth makes it easier for multinationals for business set up in India.
Due to aforesaid factors, India has witnessed tremendous growth FDI through foreign company registration in India in the form of private limited company, public limited company, LLP and joint ventures.
Weak Points for FDI in India:
a) When it comes to infrastructure, India really lags behind from rest of the world which really slows down the entire pace of development.
b) Bureaucratic set up at federal level slows down the pace of approvals and it becomes difficult to start and manage business in India
c) Complex labor laws and regulations is another hindrance
d) High debt of the corporates and non-performing assets
All the aforesaid factors act as hindrance in the attracting FDI in India.
Government of India’s policy and incentives to encourage FDI in the country
Some of the measures taken by government to encourage FDI in India are as under:
a) Various tax incentives has been provided for making investments in specified sectors like electronics as well as for making investment in specific regions like North east region, Himachal Pradesh, Uttarakhand and Jammu and Kashmir.
b) Incentives have been provided to manufacturing companies for setting up plant in Special Economic Zones, National Investment and Manufacturing Zones, Export oriented units etc.
c) State governments have their own policy for providing investment incentives in the form of subsidized land price, low rate of interest on loans, reduced tariff on electric power supply and tax concessions.
d) Some government development banks and state industrial development banks provide offers for medium to long term loans for setting up new projects.
e) Recently, government has introduced one nation one tax in the form of Goods and Service Tax.
It has been introduced to make Indian economy competitive to global economies and to boost tax revenues. It is estimated that with the introduction of GST, Indian GDP will witness an overall growth of 1.5% to 2%
f) The government has removed the restriction and in most of the sectors, investment can be made under automatic route as against getting prior approval of Foreign investment Promotion Board (Government route)
g) The government has introduced 3 schemes in order to provide boost to electronic sector namely, the Production Linked Incentive Scheme (PLI), Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and Modified Electronics Manufacturing Clusters Scheme (EMC 2.0). Also, a national policy on Electronics(NPE) has been introduced in the year 2019 with a vision to make India a global hub for Electronics System Design and Manufacturing (ESDM)
From the foregoing, it may be inferred that India has become one of the most sought after destination for global investment. Further, various incentive schemes of the government also encourages global companies to make investment in India.
Therefore, India will continue to witness more and more foreign company registration in India in coming years provided it works in the areas of shortcomings mentioned above and really intent to become USD 5 Trillion economy in near future.
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The discussion post must be at least of 300 word long and two references FDI in
The discussion post must be at least of 300 word long and two references FDI in
The discussion post must be at least of 300 word long and two references FDI in the Indian Retail Sector This activity is important because, as a manager, you must be able to understand the costs and benefits of FDI for the home and host country as well as the policy instruments that government use to influence FDI flows. The goal of this activity is to demonstrate your understanding of FDI, its…
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The discussion post must be at least of 300 word long and two references FDI in
The discussion post must be at least of 300 word long and two references FDI in
The discussion post must be at least of 300 word long and two references FDI in the Indian Retail Sector This activity is important because, as a manager, you must be able to understand the costs and benefits of FDI for the home and host country as well as the policy instruments that government use to influence FDI flows. The goal of this activity is to demonstrate your understanding of FDI, its…
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What is Overseas Direct Investment limit under automatic route?
INTRODUCTION- ODI By Indian Company- Increasing the interconnection of the world, increasing globalization and liberal policies of the government are creating opportunities for businesses to operate at a global level. The increasing amount of cross country capital flows in the form of investment is because of the high degree of economic and financial fusion. Two of the most important vehicles of global amalgamation are foreign direct investments and trade. The traditional form of integration is trading, whereas the significant mode of global integration is foreign direct investment. The primary source of FDI flows are developed countries. However, developing countries like China and India are also adding value to the economy in recent years. Developing countries like Brazil, China, India, and Russia have not only been the important host countries for overseas direct investment but for outward FDI, they have been important source countries. The significance of FDI is many such as new employment opportunities, skilled labor and improved skills of the manager. The growth of the country is usually reflected by overseas investment, whether it is in the form of inflow or outflow or in any direction.
CONCEPT OF OVERSEAS INVESTMENT
Investment which includes capital flows from one country to another, and where the power of ownership of a firm which is based in a foreign country is taken over by a business which is based in the domestic country this is called overseas investment. There are three types of overseas investment:
Overseas Direct Investment– It is a direct investment by a business entity of one country into an industry which is engaged in the production of goods and services. Investment is made directly into the shares of the company or equity of the company which sums up to more than 10% of the company’s capital.
Overseas Portfolio Investment– It includes the government’s and the corporate’s bond the shares convertible securities held by foreign companies and individuals. The purpose of overseas portfolio investment is to acquire an ownership stake in an international company.
Overseas Institutional Investment– These investments basically include investments by foreign companies in the real estate property and other investment assets. The primary purpose of this kind of investment is to get and derive benefits from the securities and to receive high returns with quick entry and exit and not to control interest.
OVERSEAS DIRECT INVESTMENT
The whole concept of overseas direct investment revolves around the investor, which is the home country and the recipient which is the host country. The investor provides investment, technical know-how, managerial skills to the host country, and from the host country in return it receives profits royalties and fees. The main purpose of ODI is to get long term benefits. It is a kind of direct investment which is made in the shares of equity of the company. That share should be more than 10% of the company’s capital. Overseas direct investment’s main significance is that it provides employment, skilled labour and advanced technology. ODI By Indian Company
TYPES OF ODI
As there is a rapid increase in the economic growth rate of several countries so the definition of ODI has also expanded and the main basis of classifying overseas direct investment is the direction and the pattern. ODI can be classified as follows:
The basis of categorizing FDI is its direction in its process through automatic and government route. The types of FDI are: –
Inward and Outward FDI, Horizontal investment, Automatic route and Government route, Greenfield investment, Vertical route and Conglomerate investment.
REASON FOR OVERSEAS DIRECT INVESTMENT
To increase the number of sales and profits– Directly investing in foreign countries will help to increase number of sales and hence profits which is the main motive behind every company. One of the essential reasons for investing and foreign countries is that the foreign markets of a much more opportunities for businesses to expand as compared to the domestic market.
To compete with fast-growing markets to cut down costs– Foreign countries provide various resources like raw material, human resources etc. at lower prices. So CEO multinational companies invest in foreign countries with this objective to cut down the cost of production.
To learn technological and managerial know-how– The foreign countries provide good administrative and technical knowledge so MNC invests in a foreign market to receive such kind of benefits.
PROHIBITED ACTIVITIES FOR OVERSEAS DIRECT INVESTMENTS
Real estate and banking business are the factors that are prohibited for overseas direct investment where real estate business means for buying and selling of real estate or trading in transferable development rights TDRS, but it does not include the development of townships construction of residential premises roads or bridges.
TRANSACTIONS OF OVERSEAS DIRECT INVESTMENT THAT REQUIRE THE APPROVAL OF RESERVE BANK OF INDIA RBI.
Overseas direct investment which is invested in the energy and natural resources factor which exceeds the provided limit of the net worth of Indian companies as on the last date of the audited balance sheet.
Overseas investment by resident corporates in unincorporated entities in all factor which exceeds the prescribed limit of the net worth as on the last date of audited balance sheets.
Overseas investment band resistor partnership firms and proprietorship concern it satisfies certain eligibility criteria
Overseas investments by registered societies/trusts who are engaged in the hospital/manufacturing /educational sector.
Indian party that gives a corporate guarantee to the second and subsequent level of a step-down subsidiary.
Indian party giving all forms of guarantee to its first and subsequent level of SDS.
ELIGIBILITY TO MAKE OVERSEAS DIRECT INVESTMENT UNDER AUTOMATIC ROUTE
“An Indian party that is a company which is incorporated in India or a partnership firm registered under Indian partnership act 1932 for limited liability partnership incorporated under LLP act 2008 any other organization in India as may be notified by the Reserve Bank is eligible to make an overseas direct investment under the automatic route.”
If more than such companies or body or entity invests in the foreign Joint Venture or Wholly Owned Subsidiaries, this combination will also be called as an Indian party. ODI By Indian Company
Limitations And Requirements For Overseas Direct Investment That Can Be Made Under Automatic Route
The Indian party/company incorporated in India can invest only up to the provided limit of its net worth in the joint venture or wholly-owned subsidiaries for any activity permitted as per the laws of the host country.
The Indian party must not be on the Reserve Bank list of defaulters circulated by the credit information bureau of India limited.
Indian party should route all the transactions to be designated by the Indian party that is related to the investment in Joint Venture or Wholly Owned Subsidiary through one branch only of an authorized dealer.
Procedure to be followed by an Indian party or company in order to make overseas direct investment in a joint venture of the wholly-owned subsidiary under automatic route
An ODI form is required to be filled up by the Indian party or company intending to make an overseas direct investment under the automatic route, and it must be duly supported by the documents that is listed that is the certified copy of board resolution the valuation report as per the valuation norms and the statutory auditors certificate. After all, this Indian party must approach and authorized dealer for making an overseas direct investment.
FROM WHERE DOES ONE FIND THE ODI FORM
An ODI form is available on reporting under foreign exchange management act as an Annexto the master direction title master direction.
As per the norms laid down ineligible Indian company is free to acquire other state that is a joint venture for the entire state that is a wholly-owned subsidiary in an already existing entity. This is included in the definition of ODI.
The Indian party or the company is also allowed to issue a performance guarantee, and 50% of the amount of that guarantee will be reckoned for the aim of computing financial commitment to the joint venture of wholly-owned subsidiaries. All these should be within limits provided by the Reserve Bank of India from time to time. In any case, where the invocation of a performance guarantee is not complying with the limit of the prescribed financial commitment, the Indian company must seek approval of the Reserve Bank of India before dispatching funds from India.
Click here for- Recovery of earnest money under CPC
DUTIES AND OBLIGATIONS OF INDIAN PARTY WHICH HAS MADE DIRECT INVESTMENT OUTSIDE INDIA
The Indian party or company needs to comply with the following duties: –
to receive the share certificate or any other document of investments in the foreign JV/WOS and to submit the same to the designated AD within 6 months.
to return to India all the receivable dues from foreign JV/WOS like royalty, technical fees etc.
to submit an annual performance report in part III of form ODI to the Reserve Bank of India through the designated Authorised Dealer every year.
CONCLUSION
Therefore it can be summed up by saying that India must use a large domestic market, managerial know-how, technical professionals to attract more of foreign direct investments and to be able to build capital for the economy by enabling for overseas direct investment. As more of the Indian economy is looking for good competition in the international market, the investors of the foreign market also see the potential to attract investment from India.
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MEA Cloud Infrastructure Services Market Analysis By Political, Legal, Economic & Technological Factor, 2025
The MEA Cloud Infrastructure Services Market research report provides complete insights on industry scope, trends, regional estimates, key application, competitive landscape and financial performance of prominent players. It also offers ready data-driven answers to several industry-level questions. This study enables numerous opportunities for the market players to invest in research and development.
Market Overview:
The MEA cloud infrastructure services market size is anticipated to reach USD 18.07 billion till 2025. It is anticipated to register growth with 28.7% CAGR during the forecasted period, 2018 to 2025. This growth can be attributed to the rising investments and technological advances being made in cloud computing for data storage coupled with its feature of low storage and operational cost.
Key Players:
IBM
Microsoft
AWS
Alibaba
Oracle
Google
Injazat Data Systems
STC Cloud
Fujitsu
EhostingDatafort
Request free sample to get a complete analysis of top-performing companies @ https://www.millioninsights.com/industry-reports/mea-cloud-infrastructure-services-market/request-sample
Growth Drivers:
The GDP of countries across MEA is largely dependent on the adoption of advanced technologies. This region is expected to have around 160 million technology users, contributing to around 3.8% tothe overall GDP. Several countries like KSA and UAE are constantly engaged in reducing their oil industry dependency for economic growth. Thus, they are shifting their focus on technology and knowledge-based economy.
These countries have started investing heavily in the implementation of digital technologies for digitalizing their economy. For example, ‘Smart Abu Dhabi’ and ‘Smart Dubai’ projects are being undertaken by governing authorities to enhance the private-public relationship across the technology sector. Such initiatives are anticipated to drive market growth for cloud-based infrastructure services in the upcoming years.
Service Outlook:
PaaS
IaaS
CDN/AND
Managed Hosting
Colocation
DRaaS
Country Outlook:
In 2017, KSA (Kingdom of Saudi Arabia) held the largest share across the Middle East & Africa cloud infrastructure services market. This can be associated with rising presence of several major players coupled with its fast development as compared to other countries across this country. Moreover, the ‘National Transformation Program’ being undertaken by the government to promote digitalization of governmental procedures is anticipated to drive demand for such services in the upcoming years.
In 2017, United Arab Emirates also accounted for a significant share of 27% across the overall MEA regional market. This growth can be attributed to the presence of technologically advanced and developed cities like Abu Dhabi and Dubai coupled with rising proportion of FDI (Foreign Direct Investment) to boost growth in the technology sector. Further, Qatar is focusing on digitalizing the governmental processes until 2020 to gain traction across the ICT industry.
COVID-19 Impact Insights:
The outbreak of the COVID-19 virus has positively impacted the MEA cloud infrastructure services market. The need for ensuring social distancing norms and contactless information exchange has triggered the adoption of cloud-based infrastructure and platforms. Also, the emergence of concepts like remote working and online education across countries like Qatar, KSA, and UAE has further boosted the demand for such services. Since, majority of the key players operating across this market like Google, Inc., Microsoft Corporation, and AWS (Amazon Web Services) have set up their data centres in this region, the market is expected to register significant growth over the post-pandemic period.
Browse Related Category Research Reports @ https://industryanalysisandnews.wordpress.com/
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The Icy Island
Greenland is the world's largest island, located between the Arctic and Atlantic oceans, east of the Canadian Arctic Archipelago. It is an autonomous territory within the Kingdom of Denmark. The area has had a widely disputed history over the course of the past 2 centuries. The island currently has a population close to 58,000 people only.
Natural Resources
As the Arctic ice continues to melt due to global warming, Greenland’s mineral and energy resources – including iron ore, lead, zinc, diamonds, gold, rare earth elements, uranium and oil – are becoming more accessible. The political establishment in Greenland has made natural resource extraction a central part of its plans to become economically self-sufficient, and ultimately politically independent, from the Kingdom of Denmark. This will be no easy task, and it is made more difficult by Greenland’s rapidly aging population. Global market developments are even less favourable in the short term for commercial production of offshore oil. The conditions in Greenland are very harsh and technically demanding, and the costs of extraction high.
The Greenland government has been making progress in preparing for large-scale mining projects, with some success. The government has been appropriately cautious in developing regulatory structures and building environmental safeguards, while at the same time trying to create an attractive investment climate.
Greenland is widely believed to hold excellent potential for a host of natural resources, including zinc, lead, gold, iron ore, heavy and light rare earth elements, copper, and oil. Considering that only a small fraction of this massive island has been properly explored, in the coming years more data gathering, and analysis would be helpful to assess the full potential of Greenland.
Investments
Though Chinese companies have featured prominently in public debates in both Greenland, Denmark and beyond, in fact we found little evidence to support the idea that Chinese firms are eager to invest in Greenland, despite substantial efforts by the Greenland administration to attract them. Chinese investment in iron ore, for example, has slowed in recent years after a series of ill-advised investments in Western Australia have proved unprofitable and have become a burden on the domestic iron and steel industry. In addition, while there has been widespread concern in Greenland about the potential influx of several thousands of Chinese workers to construct an iron ore mine, we note that for a population the size of Greenland, which has only 56,000 people, the sudden arrival of several thousand workers should always be a cause of concern, regardless where these workers come from. Nevertheless, this is a reality Greenland will have to face if it is to develop large scale mines.
In its quest to secure alternative resource suppliers, the European Union has eyed Greenland with great interest. In recent years European policy makers have developed raw materials policies in which Greenland features prominently. Though it seems too early to draw definitive conclusions about these policies, it is our impression that Greenland can benefit from European support, as its fishing industries have for many years, and that vice-versa Greenland could someday become an alternative supplier of some commodities to Europe. The case of rare earth elements though, which has made headlines in recent years, is at least partly based on misconceptions of China’s interventions in the global rare earth supply chain, and in particular on an apparently incorrect understanding in many western capitals that China has shown a willingness to cut off its supply of rare earth elements during times of conflict. There are also concerns about China’s dominance in the global supply chain.
Strategic Importance
President Donald Trump had expressed interest in buying Greenland. But it had become clear Greenland had no interest in selling, under a self-rule act passed in 2009, Greenland has control over its domestic infrastructure or economic policy issues, but Denmark maintains veto power on security issues.
However, the U.S. doesn’t really need all of Greenland for strategic reasons, because of the basing agreements it already has, including one of the U.S. military’s most important strategic tracking systems. Located on the north-western coast of Greenland, Thule Air Base is the U.S. military’s northernmost base and the only installation north of the Arctic Circle. It is home to the 12th Space Warning Squadron, a cadre of Air Force officers and enlisted personnel that provide 24/7 missile warning and space surveillance using a massive AN/FPS-132 radar. Thule’s position on the globe and its radar’s 240 degrees of coverage — which projects over the Arctic Ocean and Russia’s northern coast — make it an ideal location to track intercontinental ballistic missiles and satellites in low-Earth orbit, including polar orbit satellites.
Besides being a critical site for missile defence and space situational awareness, Thule hosts the Defence Department’s northernmost deep-water seaport and airfield. Those assets would come into play in any sort of military conflict in the arctic, giving the Pentagon forward- basing options if needed.
In 2018, a Chinese government-owned firm was announced as a likely winner for a contract to build a new airport. The 3.6 billion Danish krone (U.S. $560 million) contract would have given China major economic power over the local government, and decision makers in both Washington and Copenhagen worried it could lead to the U.S. being pushed out of Thule – or give Beijing a ready-made airport that could accommodate Chinese military planes in case of a conflict. Eventually Copenhagen and Nuuk reached an agreement, with generous financial support from Denmark’s coffers, to pick a different contractor. But it is likely that China will continue to push for entry into Greenland, underlining its strategic importance once again.
All these variable make Greenland a strategically important site for both China and the USA.
Task at Hand
The Year is 2020 and the Government of Denmark has decided to open up tendering bids for Greenland considering the high maintenance costs and pressure from both the countries. An acquisition of Greenland would give the United States permanent possession of an island that is crucial to its defence. The country would acquire vast amounts of natural resources—whether found or expected—including petroleum and rare minerals. Climate change may by 2030 make the Northern Sea Route the first of the Arctic shipping routes to be ice-free, connecting the Atlantic and Pacific oceans and greatly improving accessibility of Greenland's resources.
The United States would become the second-largest nation in the world by land area, after the Russian Federation. It would be the single-largest territorial acquisition in American history, slightly larger than the Louisiana Purchase.
As a representative of the US Government, you are tasked with extensively filling the tender. Before filling the same, you have been appointed by the President to draft a report with detailed information for the following deliverables-
1. Details of Bid Pricing for Purchase of Greenland (Can also be an alternative to money)
a) Pricing Details
b) Sources of Funds
c) Terms and Conditions of Payment
d) Strategies to Strengthen ties with Denmark
2. Vision, Mission and Tier-wise Objectives for the Island
3. Strategies to Develop the Island and make it suitable for economic development
4. Sub-Contracting the Work of Oil Exploration and Drilling
a) List of Companies and their Purpose
b) Terms of Contract with the Companies
c) Payment Structure and costing of Oil Exploration Rights for the Companies
d) Draft a Tender Invitation Letter (Purpose of Tender, List of Requirements, Terms of Payment)
5. Sub-Contracting the Work of Mining
a) List of Companies and Their Purpose
b) Terms of Contract with the Companies
c) Payment Structure and Costing of Mining Rights for the Companies
d) Draft a Tender Invitation Letter (Purpose of Tender, List of Requirements, Terms of Payment)
6. Strategic Alliances for Development of Greenland (International Partners- Both companies and countries)
7. Strategies to Attract FDI in Island
8. Plan of action to develop SEZ’s in Greenland
9. Strategies to make Greenland a strategic base from a military point of view
a) Letter of Objectives
b) Plan of Action
c) Analysis of Sites to develop Defense bases and their strategic Importance
10. Strategies to Gain Control over the Arctic Circle
11. Extensive Cost breakdown of all the above mentioned plans
12. 10 Year GDP forecast of Greenland with Breakdown of revenue
13. Extensive 15 year Phase Wise Implementation Plan
Submit a report with the above mentioned deliverables by 10:00 PM tomorrow. (10:00 PM IST, 8th November, 2020)
May the force be with you.
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