SOURCE: India Globalization Capital, Inc.

India Globalization Capital, Inc.

June 11, 2009 11:46 ET

India Globalization Capital Comments on Indian Market Movements and Infrastructure Spending

Publishes Latest Corporate Presentation

BETHESDA, MD--(Marketwire - June 11, 2009) - India Globalization Capital, Inc. (NYSE Amex: IGC), a leading infrastructure and materials company competing in the rapidly growing infrastructure and materials industries in India, today announced its comments on the recent movement in Indian markets, and notes that it has published its latest corporate presentation on its website.

India Globalization Capital's operations in the materials and infrastructure space throughout India will directly benefit from India's planned spending of nearly $500 billion in the next five years and nearly $1.5 trillion over the next decade, numbers mutually exclusive of any additional infrastructure spending contemplated in the stimulus package recently passed by India's newly elected congress. "Our timing and market positioning within key private and government spending market segments will positively impact our company now and well into the future," said Ram Mukunda, Chief Executive Officer of India Globalization Capital. "In an effort to clarify our corporate positioning and strategy, and to better inform investors, we have recently published our latest corporate presentation on our website (www.indiaglobalcap.com), and encourage all current and potential investors to review it in detail."

Recently, India's stock market has soared to a ten month high, with shares closing at 15,103.55 points on Friday. Last month's elections, which ushered in India's pro-market centrist party, doing away much of India's Communist Party (the faction that opposed most of the economic reforms in recent years), can be seen as one of the primary factors shaping the market move. This event, coupled with a robust run in stocks has been driven by signs of tentative economic recovery brought about, no doubt, by India's robust stimulus package. With these facts clearly in play, and as major financial institutions and overseas funds invest in Asia's third-largest economy; it is easy to understand why Indian stocks have been among the top-performing emerging market equities for the first half of 2009.

"As testament to our strategic objectives and tactical goals being accomplished, it is worth noting that EPFR Global, an international fund tracking firm, found that global investors pumped more than $199 million into India-focused equity funds in the first week of June 2009 -- the highest sum in the last 55 weeks," stated Mr. Mukunda. "We, along with numerous market analysts, believe that India's market is headed higher still. For instance, analysts Nischal Maheshwari at Edelweiss Securities recently said, 'The rally is driven by high liquidity and rising expectations of government stimulus bringing growth back on track.' And just this week the International Business Times reported that Ernst & Young said, 'Private investment to build India's infrastructure will top $101.8 billion by 2012,' with some of the most attractive ventures mention being infrastructure projects such as building roads, highways, and ports. In February, the International Business Times also reported that Citigroup, Blackstone, Infrastructure Development Finance Company Ltd, and India Infrastructure Company launched a $5 billion infrastructure fund to address the massive demand for these projects nationwide, a testament to the true potential of finding significant value by investing in the right Indian market segments."

About:

India Globalization Capital is an infrastructure and materials company operating in India, which builds roads, bridges and highways, and provides materials to the infrastructure industry in India and China.

The company has offices in Maryland, Mauritius, Nagpur, Cochin, Delhi and Bangalore. Copies of the Form S-3 and India Globalization Capital's other filings with the SEC containing information about India Globalization Capital, our Indian operations and other relevant documents, are available at no charge on the SEC's website (http://www.sec.gov).

For more information about India Globalization Capital, visit the company's web site at: www.indiaglobalcap.com.

Forward-Looking Statements:

This press release may contain forward-looking statements. These statements reflect management's current views and are subject to risks and uncertainties that could cause actual results to differ materially from those projected, expressed or implied in these statements. Factors, which could cause actual results to differ, relate to: (i) the ability of the parties to successfully execute on the contracts and business plan, (ii) our ability to raise additional capital and the structure of such capital including the exercise of warrants, and (iii) changes in the exchange rate between the U.S. dollar and the Indian Rupee. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Other factors and risks that could cause or contribute to actual results differing materially from such forward-looking statements have been discussed in greater detail in the company's definitive proxy statement and supplement filed with the SEC and incorporated by reference into the Form S-3.

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