President Pranab Mukherjee on Tuesday hailed the promise that Norwegian investors, particularly portfolio investors, see in the Indian market, pointing out that the investment of the Scandinavian country in India had doubled between 2012 and 2013.
Addressing the plenary session of the Joint Seminar on Business, Science and Technology held at the Confederation of Norwegian Enterprise (NHO) here, President Mukherjee said,
"Overall Norwegian investments, including investments in the capital market, in India have doubled from USD four billion in 2012 to approximately USD eight billion in 2013. This is indicative of the promise that Norwegian investors, particularly portfolio investors, see in the growing Indian market."
"Investments in the Government Pension Fund - Global of Norway, which is the largest sovereign wealth fund in the world, with assets close to USD 900 billion in equity and fixed income assets in India are only about USD four billion. Given India's tremendous growth potential, I am hopeful that the fund will considerably increase its investment exposure to our economy," he added.
Pointing out that India is the preferred destination for foreign direct investment (FDI), President Mukherjee also talked of the potential that Norway has in the recently enhanced FDI limits.
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"India continues to be one of the most preferred destinations for FDI, with inflows into India peaking at USD 46.6 billion in 2011-12. I am confident that with the revival of global business sentiment, we will be able to attract substantial FDI inflows. India has a growing and aspirational middle class, an increasing per capita income and a young working population all of which present a great opportunity and are of interest to foreign investors. To further facilitate FDI, we have recently enhanced FDI limits in sectors like insurance and defence manufacturing and allowed 100 percent FDI in railway infrastructure. This will further strengthen our position as a credible destination for overseas investors," he said.
"I may, however, point out that of the total FDI equity inflows into India of USD 228 billion since April 2000, FDI from Norway has only been USD 164 million, which belies the vast potential that exists in our economic relationship. I am confident Norwegian industry will make full use of the new investment opportunities that now present themselves in India. The coming together of India's large talent pool and technological and financial investments from Norway can well catapult our economic relationship to a new high," he added.
President Mukherjee, who is on a two-day visit to Norway, will travel to Finland later on Tuesday.
