India is the second largest investor in U.K.

India is the second largest investor in the U.K. in 2008 according to an annual survey conducted by Ernst & Young. Indian companies accounted for 49 projects and trailed the U.S. which accounted to 263 projects. Indian companies were able to beat France and Germany to get the second spot. The study sees Bangalore and Mumbai as the next top centers of Global investment.

"The primacy of long-established centers in the developed world, including Europe's capitals, is being challenged by emerging Asian cities such as Shanghai and Bangalore and by regional cities acquiring international expertise," said Marc Lhermitte, Partner at Ernst & Young and author of the report. The study also revealed that business leaders believed Shanghai and Mumbai are seen as more credible alternatives than New York and Silicon Valley or London.

The survey also revealed that London is Europe's preferred destination for foreign investment. Even though London accounted for 262 of the 686 new projects in the U.K., foreign investment in London fell by 13 percent over the last year. Europe is seen as safe place to invest in. "The BRIC regions (Brazil, Russia, India, China) are not providing the absolutely safe ground that international investors are looking for. Europe is seen as predictable and safe," added Lhermitte.

The U.K. retained its ranking as the most attractive European location for foreign direct investment. The U.K. attracted 686 investment projects in 2008, four percent less than in 2007. The 686 investments in the U.K. created 20,000 jobs, ranking the county as the number one location for FDI job creation in Europe.

Sources: Silicon India

Tatas, SBI, Infy among world's top 50 reputed firms

The Tata Group, State Bank of India (SBI) and Infosys Technologies are among 17 Indian firms that figure among the top 50 in a list of the world's 200 most reputable companies.

With a pulse score of 80.89 on a scale of 0-100, the US-based Reputation Institute ranked the Tata Group 11th above global giants like Google, Microsoft, General electric, Toyota, Coca-Cola, Intel and Unilever.

Italy-based chocolate producer Ferrero was ranked as the most reputable company on the planet right now. With its pulse score moving from 83.52 last year up to 85.17, Ferrero came up from fourth place last year to first, more than a full point ahead of second ranked IKEA.

"However it is the people of India who love their companies the best," noted US business magazine Forbes. "Of India's 27 corporations ranked by the institute, 24 (89 percent) placed above the average. Seventeen of them landed in the top third of the list."

The Reputation Institute's global pulse of 600 companies is a measure of corporate reputation calculated by averaging perceptions of four indicators - trust, esteem, admiration and good feeling - obtained from a representative sample of at least 100 respondents in the companies' home countries.

SBI, India's largest bank, is ranked 29th with a score of 78.11. India's second largest software exporter Infosys is at 39th, with a pulse score of 77.45.

Larsen & Toubro comes next at 47th position with a pulse score of 76.58, while India's largest carmaker Maruti Suzki has been ranked 49th with a pulse score of of 76.26.

Other Indian firms in the top 200 are: Hindustan Unilever (69 - 74.99); ITC Ltd (95 - 73.50); Canara Bank (102- 73.34); Hindustan Petroleum (111 - 73.08); Indian Oil (112 - 73.01); Wipro (116 - 72.77); Mahindra & Mahindra (137 - 71.61); Bharti Airtel (163 - 70.32); Bank of Baroda(174 -- 69.81); Bharat Petroleum(175 - 69.79) and Punjab National Bank (177- 69.67.)

Johnson & Johnson, which placed first in the US for reputation, lands third globally. Kraft Foods places eighth, making the US one of only two countries with two businesses in the global top 10. Brazil is the other. Its Petrobras and Sadia landed fourth and fifth respectively.

Brazil had the second highest percentage of its participating companies ranked above the global average at 76 percent, while 62 percent of American companies received pulse scores above the average.

FDI flow to India will remain robust: Goldman Sachs

The global economic slowdown will not affect the foreign direct investment (FDI) flow to India as the domestic demand remains "resilient", investment banker Goldman sachs said.

"FDI is showing positive signals," Tushar Poddar, an economist with Goldman Sachs said, adding: "We expect FDI inflows to remain significant in 2009-10, given India's relatively resilient domestic demand momentum."

According to the bank, the FDI flow to India during September-January - the months when the credit crisis was at its peak - amounted to $9.2 billion, higher than $7.9 billion in the corresponding period last year.

Pranjul Bhandari, another economist at Goldman, said: "India's balance of payments (BOP) may have had its worst quarter in October-December 2009, when it showed a deficit of $18 billion."

However, "in 2009-10, we expect the current account deficit to narrow to 1.3 per cent of GDP from 3.5 per cent last fiscal with the trade deficit narrowing considerably,"she added.

Notwithstanding the weakness in trade credit and foreign portfolio inflows, the basic balance of payments (BBOP) are expected to move to positive this fiscal, the economists said.

According to them, the major risks India faces are "political uncertainty and the high fiscal deficit".

"Portfolio investment and trade credit on the other hand, have fallen sharply and we expect them to remain weak this fiscal," Poddar said.

"NRI deposits showed an up tick last fiscal, but we expect it to remain flat in 2009-10. We expect NRI deposits coming due in the next year ($32 billion) to get rolled over to a large extent, but do not expect large fresh inflows," he added.

External commercial borrowings (ECBs) are expected to moderate in in the current fiscal. Although ECBs have slowed to $9.1 billion during September-February from $11.8 billion in the previous six months.

"In 2009-10, we expect ECBs to remain positive due to higher growth and yields in India, notwithstanding the $7 billion of outstanding commercial loans coming due," Bhandari said.

Private remittances from Indians working abroad slowed to $4.3 billion in the October-December quarter from $7.9 billion in the July-September quarter.

"We expect this to remain weak, but do not expect much further weakness from current levels," she said.

Bhandari added that the merchandise trade deficit had fallen to $5 billion in February from a peak of $14 billion in August.

"This is likely to turn the BBOP into positive from a current negative, and is also expected to make the overall BOP stronger," she said.

Taken From : Economic Times