07/06/2016 Asia Business Report

He is all business. The Indian Prime Minister, Narendra Modi, touches

down in Washington where he will talk investment with global bosses.

And college and friends exams from China to Australia - we look at the

global potential putting business and education -- put in. Hello, and

welcome to Asia Business Report. India's Prime Minister Narendra Modi

has landed in Washington and business will be at the top of his

agenda. According to one estimate, some 30 US companies invested $15

billion in India just over the last 18 months and next year 50 more are

expected to invest nearly double that amount. In addition to meeting

with President Obama he will also be in the company business leaders from

both and multinational companies. That gathering is being organised by

the US - India Business Council. Earlier I spoke with a member of the

council. Investors are really bullish in India. They continue to

be. The Prime Minister has sent the right signals. The purpose of the

meeting is to an ounce to the Prime Minister how his reforms have built

up their competence and they will make announcements on that

investments -- announce. And they are talking about changes for

further investment. You mentioned these reforms taken by Prime

Minister Murthy. Why invest in India? Some protectionist barriers

for those to invest have been eased over the last couple of years but

they are still challenging -- Modi. What are some of them? Now is the

time where I think investors continue to be bullish because they

see a continued market liberalisation under this Prime

Minister. We saw the big reforms in 1991 when a lot of India's economy

was liberalised, and under this Prime Minister we are seeing another

sort of revolution of reforms in India, and I think a lot of

companies are betting high on the market and what we are seeing in

India, when you compare it with other emerging economies, we are

seeing a slowdown in China, Russia and other areas. So India these days

is shining and a lot of investors are excited. We know that the Prime

Minister Modi made in India campaign... Where are the biggest

opportunities for US companies? Manufacturing or elsewhere? Heavy

industries, we are seeing interest from automotive companies in India

and infrastructure companies, so whether that is companies producing

solar and wind turbines, you see a big announcement from General

Electric on trains, high-speed trains and locomotives, so there is

a lot of potential in infrastructure and automotive. And also on the

digital side. Of course the Prime Minister has a big digital India

campaign to bring Internet access to India's. And staying with India the

central bank or meet today to decide on interest rates, however more than

a cart, markets and analysts are eager to know about this man, the

governor of the reserve bank -- India. And whether he will continue

in office after his current tenure comes to an end. They have not

decided yet. He has been silent on this issue. This is making investors

and markets jittery. Every two months when India's central bank

meets in this building to decide on interest rates the markets are

usually buzzing with anticipation. Will there be a rate cut or not?

Similarly this meeting has been watched closely but for a very

different reason. The big question on everybody's mind is will the

governor continue on the reserve bank of India post September when

his term comes to an end? There are have been a series of events over

the last couple of months which have put a big question mark on whether

he will get an extension. It started with a senior member of Prime

Minister Narendra Modi's party criticising Mr Rajan for keeping

interest rates high. Most saw it as a political attack given Mr Rajan

has had what many say an uneasy relationship with the current

regime. He has criticised certain economic policies of the government,

like the flagship manufacturing programme and has also often played

down the euphoria around India's economic growth. And what has added

fuel to the ongoing debate is the silence of the Prime Minister

Narendra Modi and whether he will give Mr Rajan a second tone. --

term. Mr Rajan has not spoken on this issue. I asked him in April

earlier this year. Your term comes to an end this year. The answer is

noncommittal. No, but are you interested to continue? I don't

answer that question. LAUGHS. There are report that if Mr Rajan

doesn't want a second term, given the noise around him, this is making

markets and analyst jittery. If he does not get his second term than I

think there will be a sizeable amount of disappointment not just

among domestic investors but the international community -- analysts.

After the interest-rate policy meeting it is thought he might

announce his decision. However, given his track record of surprising

the markets, analysts hope he will give some indication as to what he

wants to do post September. And speaking of interest rates, the

chair of the Federal Reserve says US interest-rate hikes are likely to be

on the way. That is for that country, with Janet Eleanor Givens a

largely positive assessment of the US economic outlook in a speech in

Philadelphia -- with Janet Yellen giving. It is the last comment from

any central bank before a key meeting next week. The Fed chair

also an ounce uncertainty around the economy meant no indication would

come as to when interest rates would be raised again -- announce. If

incoming data is consistent with labour market conditions

strengthening and inflation making progress toward the 2% objective as

I expect, further gradual increases in the federal funds rate are likely

to be appropriate and most conducive to meeting and maintaining those

objectives. Janet Yellen speaking. In other news:, BHP Billiton has

announced a $7.4 million donation to China's Peking University,

channelled into research and developing technology to capture

carbon emissions in the iron and steel industry. The BBC says finding

uses of carbon has been the potential for a significant industry

in the world the biggest producer of carbon dioxide. 9 million students

will sit the Chinese college entrance exam. It is acknowledged

for putting too much pressure on students like these but results are

increasingly accepted at universities outside China. In

Australia for incidents more than one third of overseas students come

from there. Phil Honeywood was on the show earlier and I asked him why

Australian universities are increasingly accepting Chinese

students based on those results. It has become a reliable indicator of

academic credibility, and clearly there are a number of streams which

Chinese students are required to take, the scientific or the art

stream, that will be factored into the equation, but Australian

universities use a formula which applies in each case to every

student, and it is just one of the criteria that is utilised, however

it is increasingly popular because it has become a reliable indicator

of academic credibility. We know they are equally rigourous systems,

and elsewhere in Asia, Japan and South Korea, but their

qualifications are not recognised. We have a situation in which the

Chinese have a credible world ranking system for universities,

placing American, Australian and UK unities in the top 100. That ranking

system is just one indicator that the Chinese take very seriously --

universities. Australia has made a big industry at international

education, the third-largest industry, $20 billion per year,

important for a country like Australia given Alp lays in Asian

region and it has some incredible softer plummeted benefits for the

population going forward -- our place. Interesting it is the

third-largest industry. And what do you say disc epics as a it is all

about money? Chinese students account for 30 to feepaying students

-- what do you say to sceptics. Is Australia becoming dependent on

Chinese money? Australia sees international education as having

any number of benefits, especially as we are in the Asian region. It is

important to have major people to people in academic exchanges.

Australia is selfies now putting 5000 young Australian undergraduates

under government scholarships into Asian universities, so we are taking

very seriously the 2-way flow of students and academics to better

integrate into the Asian region. That was Phil Honeywood speaking

earlier. Let's look at markets. Asian markets are opening

positively. The Nikkei is not ever so slightly. Australia continues

higher as well. They are tracking those gains from Wall Street. And

the weak yen is lifting exports over in Japan. That is it for this

edition of Asia Business Report. Thanks for watching. I am Babita

Sharma. You're watching BBC News. In breaking news, Hillary Clinton has

reached