Fitch Ratings on India’s ‘strong economy’: “strong economy”

By Amit Singhal/Financial TimesIndia’s government-backed agco financing firm has said it will raise $100bn by selling its stake in GMV-Bank of India to Indian investors.

The firm’s board, led by former Indian prime minister Indira Gandhi’s finance minister, Raghuram Rajan, will invest the funds in “high growth” corporate infrastructure, such as power plants and roads.

It is expected to pay out in the first half of 2018, and it said it is also exploring selling a stake in another agco fund, GMV.

Rajan, a billionaire, is an influential figure in Indian politics and is the prime minister’s son-in-law.

He has played a key role in helping the country to become a global economic power.

A key issue for the new group is the ongoing standoff between India and its neighbour, China.

China has built a network of artificial islands in the South China Sea, where it claims most of the resource-rich waterway.

China says India has violated its sovereignty by building artificial islands, but the Indian government says the structures are necessary to protect its own sovereign waters.

The islands were built to help the country defend itself against Chinese submarines and aircraft.

A recent poll by the Indian Institute of Management, Kanpur, showed that 66% of respondents wanted China to withdraw from the region, and 74% of them would like the country’s military to be withdrawn.

China is India’s second largest trading partner, and the country has struggled to diversify its economy away from energy-dependent agriculture.

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