Brexit Holds Great Investment Options for Indian Corporates

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Brexit must be considered as a great opportunity. India UK should quickly resolve issue and move for new FTAs. Economies of west have not seen rise in real income for long and are facing tough and challenging times, like those of 1930s 

MUMBAI, AUGUST 6, 2016: The Indian Merchants’ Chamber, convened a panel discussion on the “Global Developments and Indian Markets” under the aegis of Ms. Deena Mehta – Chairperson of the Capital Markets Committee at IMC. The discussion was addressed by eminent experts, such as Mr. Navneet Munot of SBI Mutual Fund, Mr. Andrew Holland of Ambit Securities, Ms. Daksha Baxi – Senior Partner, International Taxation- Khaitan & Co. and Mr. George Mathew – Country head of Haitong Securities India Private Ltd. The discussion was moderated by Mr. S K Mitra, Chairman, QSK Advisory Private Limited.

In her keynote address Ms Deena Mehta, Chairperson of IMCs Capital Markets Committee, opined that Brexit offers ample investment opportunities for Indian companies to move ahead towards working out new FTAs and other agreements.

The panel – comprising of MrNavneetMunot of SBI Capital , Mr Andrew Holland of Ambit Investment Advisors, Ms Daksha Baxi, ED Khaitan& Co and Mr George Mathew of Haitong Securities, spoke on the global developments and opined that as Indian markets are looking up, people needs to increase domestic investments in pension funds, Provident Funds, to gain impressive long term returns. Being considered as a bright spot amongst global economies, India can strategize and achieve further growth in view of the proactive initiatives being undertaken by the Indian government in areas like Make in India, Digital India, Skilling India and other major reforms that are underway. 

On the developments in China, it was felt that reforms in state owned enterprises and Made in 2025 campaign will gradually help them to come back on growth rates as was witnessed earlier, though the issue of excess capacities in copper and steel production will continue to plague their economy. 

Speaking on the capital gains tax for Indian corporates, the panel opined that April 2017 may be a watershed year as bilateral tax treaties with Mauritius and Singapore would be reworked. Based on which, the inflow of FII money would then depend on the degree of reforms in tax administration even though the tax rates in India are quite competitive. It was generally felt that next few years might witness depressed commodity prices, which India could take advantage of.

Mr. Deepak Premnarayen, President IMC, complimented the Capital Markets Committee for taking a lead in organizing discussions of topical interest. He said “The world economy has been throwing up many surprises at regular intervals. It is not a very simplistic option to build opinion on the developments of the global economy and its impact. The inter linkages of vast intertwined factors make it a challenging effort to come out with a conclusion. In India especially, while the government is making all out efforts to put in place the reforms – both in policy making & administration, and in bringing about the desired changes which could give the Indian economy a big push to meet the challenges to growth, much of it also depends on the behavior and sentiments of the global economy and their leaders who view intensely these developments in India”.

He further elaborated that to understand the Global issues; there wouldn’t be a better platform, than such an interactive session with eminent panelists from the mutual fund and corporate industry sharing their vast experience on taxation, capital and commodity markets.

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