Agriculture and Food Industry To Grow To $280B In The Next 10 Years – News Digest

‘Agri & Food Industry To Grow To $280B In The Next 10 Years’

At the VCCircle ICICI bank Investment Summit in Mumbai, nearly 200 participants- drawn from the global investment community sported huge levels of confidence and promise on the fast growing agri & food industry. But amidst this confidence, an equal amount of concern and challenges was also shown by the investment fraternity as the country is facing one of its most serious challenges – that of food inflation.

As Rajiv Sabharwal, executive director, ICICI Bank Ltd, in his inaugural speech puts it, “Inflation in the agriculture, food sectors – the biggest contributor to India’s GDP, is the major concern. According to him, the sector is poised to double to $280 billion in next 10 years- thereby meaning investments upto $50 billion in the next 10 years. – VCC

Indian Urban Infrastructure : Washing and Housing 0.5 Billion People

Rapid urbanisation means that India needs heavy investment in urban water, transportation and (affordable) housing infrastructure. Public reports suggest that in next 20 years India’s investment in urban infrastructure will be 20X its investment in the past decade. We believe unless funding, governance and policy challenges are addressed, investments could be lower than the required $1.2 tn.

Construction companies and technology providers (in water/transportation) will be the key beneficiaries. Urbanisation amplifies infrastructure deficit Whilst the degree of urbanization in India is one of the lowest in the world (~30%), India’s urban population is growing at a rapid pace—340 mn in 2008 (290 mn in 2001) expected to grow to 536-590 mn by 2026-30 (source:National Institute of Urban Affairs and World Bank).

This pace of urbanisation has not only exposed India’s urban infrastructure deficit but also highlighted that the deficit backlog is increasing at a rapid pace. Government (GoI) sponsored and UN studies highlight that the severe supply deficits in basic urban services (water, sanitation, transportation and affordable housing) will rise 2-4X if investments continue at the current pace. – For more visit – VCC

Q & A: Y V Reddy , Former Governor, Reserve Bank of India

Former Reserve Bank of India Governor Y V Reddy is attending a meet in Daejon – organised by the International Monetary Fund (IMF) and the Korean government – to discuss what the world can learn from Asia and the challenges that need to be addressed in the region. On the sidelines of the conference, he spoke to Business Standard on dealing with capital flows and regulatory issues. Read the full interview at – BS

Microfinance Network to have ombudsmen, credit bureau

Microfinance Institutions Network (MFIN), a self-regulatory organisation of microfinance institutions (MFIs) in the country, has decided to institute offices of ombudsmen on the lines of banking ombudsmen to help in grievance redressal and launch a credit bureau later in the year.

The MFIN, with a membership of about 39 MFIs in the country, representing 80 per cent of the business, met here on Friday and elected Mr Alok Prasad as the Chief Executive Officer of MFIN along with other members. Since the launch of MFIN in March 2010, eight more non-bank financial companies (NBFCs) have joined the network taking the total membership to about 39. HBL

Bhartiya Samruddhi Finance to expand into urban microfinance

Bhartiya Samruddhi Finance (BSFL), the flagship company of Hyderabad-based microfinance firm, Basix Group, is firming up plans to enter into urban micro credit market. The micro finance institution (MFI) is developing a range of micro credit products to meet the needs of urban poor spanning home, health and education sector-besides meeting working capital requirements for micro-entrepreneurial activities. – FC

Tardy progress in financial inclusion plan for Orissa

The implementation of the ‘Financial Inclusion Plan’ in Orissa for villages with a population of over 2000 (2001 Census) appears to be on the backburner.

Despite the identification of as many as 1878 villages in the state in the last meeting of the State Level Bankers’ Committee (SLBC) held on March 18 this year, not a single village has been identified by the banks so far for providing banking services to the people either through opening of branches or through the Banking Correspondent model. – BS

Nabard to promote Sri cultivation

The National Bank for Agriculture and Rural Development (Nabard) would promote the System of Rice Intensification (Sri) in the state. It would appoint non-governmental agencies to aggregate about 1,00,000 farmers by rabi season in the rain-fed areas for taking up Sri cultivation to increase the productivity, its AP region chief general manager P Mohanaiah said. – BS

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