Michael R. Bloomberg and Indian Prime Minister Narendra Modi Announce Partnership to Strengthen Global Investment in India

NEW YORK, Sept. 25, 2019 /PRNewswire/ -- Today at the third annual Global Business Forum, Michael R. Bloomberg welcomed Indian Prime Minister Narendra Modi and announced two new initiatives in partnership with the Government of India, focused on strengthening international investment. These two new initiatives – partnering with India to navigate inclusion in global benchmark indices, and supporting the development of India's International Financial Services Center (IFSC) at the Gujarat International Finance Tec-City ("GIFT City") – will leverage Bloomberg's expertise and connectivity to help international investors access India's capital markets, in turn providing India's businesses and government with new funds to invest and grow.

Projections from Bloomberg Economics show that India's GDP will grow from $2.7 trillion in 2019 to $5 trillion by 2025 and $8.4 trillion by 2030. This amounts to an average annual growth rate of 8%, and would make India's economy the third largest by 2026, behind only China and the U.S. Economists say that increased foreign investment is an important component of stable growth, providing additional sources of capital and increasing lending capacity to businesses and government.  Global investors, including pension and mutual funds, would also benefit by having access to the higher returns from a growth market that may outpace domestic returns.

"Currently, the share of India's outstanding sovereign debt held by foreign investors — at less than 4% — is substantially lower compared to major developed and many major emerging market economies," said Abhishek Gupta, Bloomberg's India Economist. "India has raised the limits on foreign exposure to its debt, which means there is room to stimulate and attract more foreign investment. Inclusion in global benchmark indices could mean upwards of $50 billion to $125 billion of new investment in India's economy, ensuring a more stable path to growth."

Bloomberg and India will partner on two new initiatives to promote global investment:

• Navigating Inclusion in Global Benchmark Indices: Together with the Indian Ministry of Finance, Reserve Bank of India, Securities and Exchange Board of India and key financial institutions, Bloomberg will work with India to navigate the process to gain inclusion in global benchmark indices to significantly increase the country's ability to attract capital to its bond markets. These indices have traditionally helped countries attract foreign capital, but required significant, time-intensive reforms at the local level. Bloomberg will, among other actions, convene senior Indian officials and investors from prominent financial centers to solicit feedback and diverse perspectives needed to enhance India's bond markets.
• Supporting the Development of the International Financial Services Center: Bloomberg will set up a series of workshops to identify global best practices to enable the IFSC to achieve its full potential as a world-class international financial hub. These workshops will convene senior IFSC and GIFT City leaders, Indian government officials, and investors from other regional investment hubs. At the roundtables, all stakeholders will participate in in-depth discussion to identify pressing challenges facing GIFT City, and evaluate potential opportunities for collaboration between investors, GOI, and state-level officials.

"Prime Minister Modi has charted an ambitious agenda to unlock India's growth potential. I'm very pleased that we can play our part to ease access to India's capital markets, which will raise funds for Indian businesses to invest and grow and India's government to invest in infrastructure and public services," said Michael R. Bloomberg, Founder of Bloomberg L.P. and Bloomberg Philanthropies. "By drawing in the necessary foreign investment, I have no doubt that India's economy will reach new heights."

"The roadmap for India's growth has taken shape. India has set an ambitious target for itself of 5 trillion," said Indian Prime Minister Narendra Modi. "It is a golden opportunity for the business world to form partnerships with India to accompany it on its journey. In the past five years, we have seen foreign direct investment of $286 billion -- half of the total of the previous 20 years. Our people are rapidly defeating poverty, moving up the economic ladder and with increasing purchasing power -- thus if you want to invest in a market where there's scale, come to India."

The Prime Minister's keynote address to heads of state from six continents and over 200 CEOs officially opened the 2019 Global Business Forum (GBF). In its third year, the Forum has become a preeminent global event, bringing together business and government to drive actionable solutions to the world's most pressing challenges by fostering engaging conversation and dialogue amongst leaders across industries and around the world.

After announcing these two initiatives, Mr. Bloomberg held a fireside chat with Prime Minister Modi, where the two leaders discussed a range of critical topics impacting the international community. These included opportunities to strengthen global economic stability, tackle climate change, promote economic growth, and advance technologies that can improve society.

SOURCE Bloomberg

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