Billionaire Warren Buffett looking to invest in India

BANGALORE (Reuters) - Billionaire Warren Buffett on Tuesday said he is looking to invest in large countries like India, China and Brazil, but added that restrictions on foreign ownership in India's insurance industry could act as a deterrent in the sector.

Speaking to reporters on his maiden visit to India, Buffett also said the U.S. economy was improving and that the devastating earthquake in Japan would not hurt global growth.

"India is a very logical place to look so I hope I spend some money here," Buffett told reporters in the southern Indian city of Bangalore, adorned in a flower garland and a red "teeka" -- a dash of vermillion placed on foreheads as a symbol of good wishes.

When asked if he would invest in India's $60 billion information technology industry or in the semiconductor business, Buffett said he preferred sectors he had expertise in.

"I think about the soft drink industry or the chewing gum industry, something that's much easier for me to understand," he said.

Berkshire owns a stake in Wrigley since 2008, when it poured $6.5 billion into Mars Inc's $23 billion acquisition of the chewing gum maker. And Coca-Cola (NYSE:KO - News) is one of Berkshire's biggest investments.

Buffett said he liked large countries like India, China, Brazil, United Kingdom and Germany. "We need to invest billions of dollars and that's very tough in emerging markets," he said.

"I don't consider India as an emerging market, I consider India as a very big market. We continue to look at large countries like India."

Earlier this month, Berkshire Hathaway (NYSE:BRK-A - News) agreed to become a corporate agent for India's Bajaj Allianz General Insurance, marking its entry in to the insurance sector in Asia's third-largest economy.

Indian rules do not allow foreign firms to own more than 26 percent of an insurance company - a move that is seen by many overseas firms as restrictive.

The insurance portal, owned entirely by Berkshire, will sell motor insurance policies for Bajaj Allianz, avoiding the foreign ownership restrictions.

"It would be more attractive to us if we could buy more than 26 percent," Buffett said. "I would say that for the time being, and perhaps for some time, our activities in insurance here will be at the agency level rather than at the underwriting level," he said.

Buffett was in Bangalore to visit the local arm of TaeguTec, a unit of Israeli metal-cutting tool maker ISCAR Metalworking, in which Berkshire has a majority stake. He is also expected to meet policymakers and company executives.

Ranked the world's third-richest man by Forbes magazine, Buffett is also using his visit to India to encourage philanthropy.

Complete story: http://finance.yahoo.com/news/Buffett-looking-at-investing-rb-75735...