The A C Nielsen Consumer Confidence and Opinions Survey for the first half of 2007 claims that while Consumer confidence is softening across the world Indians continue to remain upbeat.

India tops the confidence index in both the 47-nation global survey (97 points) as well as the 14-country Asia Pacific study (96). The country’s 137 score in the October 2006 round of the survey was an all-time high.

The survey which covered over 26,000 people, including around 500 Indians revealed that 94 % of them were optimistic about employment prospects, compared with the regional and global averages of 50 and 52 %, respectively. So also their perceptions of the state of their personal finances remain optimistic with 90 % rating themselves as excellent or good as opposed the regional average of 54%.

The survey also revealed that that an increased number of Indians were concerned about the economy; chose to invest in stocks, mutual funds and savings accounts, as well as holidays and new clothes.

The Indian government has decided to raise the ceiling on Foreign Direct Investment in the fast growing telecom sector from the current 49% to 74%.

More good news for foreign investors comes in the form of revised conditions for such direct investment.

With effect from July, 2007 the Reserve Bank of India (RBI) has increased overseas investment limit for Indian companies allowing them to invest up to 300% of their net worth as on the date of the last audited balance sheet for joint ventures and wholly-owned subsidiaries. The investment limit for partnership firms however continues to stand at 200% of the net worth.

The meaning of 'financial commitment' is also clarified. The term 'financial commitment' for overseas investment by an Indian party would now mean direct investment by way of contribution to equity, loan and the total amount of guarantees by the investing company.

These revised norms would be applicable, with immediate effect, for both new and existing investments.

The RBI has also increased the limit on overseas portfolio investment from 25% of their net worth to 35% of their net worth. Indian companies are permitted to invest in overseas listed companies which have at least 10% share holding in Indian companies.

On the inbound investment front too, revised guidelines have been laid down for issuance of Preference Shares / Convertible Debentures. As per the new guidelines foreign investment coming as fully convertible preference shares would be treated as part of equity share capital, while other types of preference shares, namely non-convertible, optionally convertible, or partially convertible shall be required to conform to External Commercial Borrowing (ECB) guidelines. Hence only Companies eligible to borrow under the ECB guidelines can now issue redeemable preference shares, all other companies have to finance their projects by way of issue of equity shares or convertible preference shares or local borrowings in Rupees.

Bombardier Transportation, the $15 bn aircraft-to-rail equipment maker plans to set up a greenfield plant in India to make rail cars for the Delhi Metro project, and is looking at Baroda and Hyderabad as prospective locations.

The Company recently won a $590 mn order for 340 rail metro cars from Delhi Metro Rail Corporation (DMRC) and the first train deliveries are scheduled for the last quarter of 2008. The final deliveries are expected to take place in 2010, before the Commonwealth Games. When completed the Bombardier’s metro cars will transport 4 mn passengers every day.

Initially, the car bodies, bogies and the propulsion system will be built in Germany and Sweden, but later will be shifted to the greenfield facility in India.

Indian Railways will require Rs 60,000 crore for completing its projects, including strengthening, modernising and creating new infrastructure.

As such Bombardier is not the only international player looking for a part of the Indian pie. GE Equipment Services (GEES) has entered India by acquiring a 15 % equity stake in Titagarh Wagons, a leading domestic private wagon maker.

Toshiba, Mitsubishi Corporation, Siemens, Alstom and Itochu are among the other international palyers exploring locomotive manufacturing in India.