Finance Ministry wants gold removed from India-Thailand FTA
Government is contemplating removing gold jewellery from the list of items allowed to be imported under the India-Thailand free trade pact as several traders are misusing provisions to bring the precious metal from the South East Asian nation.
The FTA with Thailand allows gold jewellery imports at a concessional customs duty of 1%. This concessional rate makes gold imports attractive, especially when considering that the duty for importing standard gold bars, gold coins and non-standard gold stand at up to 10%.
(Sources: Economic Times, Indiatimes, Moneycontrol, India Business Brief, Press Trust of India)
Govt raises Customs duty on gold by 2 percentage points
The government on Monday increased the Customs duty on gold and platinum by two percentage points to 6 %.
With this, the duty on gold has gone up five-fold since January last year, when it stood at 1 %.
The move is aimed at curtailing imports of the metals. Gold has been one of the biggest contributors to the spiraling current account deficit, at 5.4 % of the gross domestic product in the July-September quarter.
(Sources: Business Standard, Reuters India, India Everyday, Indian Express, i4u)
FIPB clears IKEA's $ 1.86 billion investment proposal
The Foreign Investment Promotion Board (FIPB) has given its nod to Swedish home furnishings retailer IKEA's revised $ 1.86 billion investment proposal that will allow the company to set up retail stores along with its popular cafes in India and also sell more categories of products. India had diluted the mandatory 30% local sourcing norm to allow foreign retailers to fulfill it over a period of five years.
The Euro 25-billion firm can now set up furniture stores in India, along with restaurants and cafes, in line with its global concept.
(Sources: Economic Times, Indiatimes, Moneycontrol, Times of India, NDTV, Business Today)
Indsur to set up an engine block facility of $ 23.26 million in Gujarat
Indsur group today said it would set up a facility for auto engine block making in Vadodara at an investment of$ 23.26 million.
It will be the first fully automated plant for manufacturing engine blocks in Gujarat, which is fast developing into an auto hub, a company statement said.
The facility will produce 4-cylinder blocks, tractor blocks compressor housing and similar products, and will have an annual production capacity of 30,000 tonnes.
The group already has facilities for manufacturing gear and gear components for automobiles in Aurangabad, Mumbai and for insulator castings in Vadodara and China.
(Sources: Economic Times, Indiatimes, Hindu Business Line, NDTV, IBNLive, i4u)
Retail inflation for farm workers up at 11.33% in December
Retail inflation for farm workers in December touched 11.33 % due to increase in prices of rice, bajra, ragi, fish fresh, onion and other items.
The same for rural labourers was 11.31 % in December, according to an official release.
Inflation based on food index of CPI-AL and CPI-RL is 11.59% and 11.90% respectively during December, 2012, it added
The consumer price index (CPI) for agricultural and rural Labourers recorded maximum surge in Tamil Nadu by 14 points and 15 points, respectively mainly due to increase in the prices of due of rice, bajra, ragi, fish fresh, onion, mixed spices, vegetables and fruits, tea, pan leaf and firewood.
(Sources: Indian Express, Hindu Business Line, Daily India News, i4u, Business Today)
Iron ore export duty rollback will kill steel industry: ASSOCHAM
Industry body ASSOCHAM today cautioned the government against renewed demand of a section of mining industry for reviewing export duty structure on iron ore saying it would have adverse impact on the steel sector.
ASSOCHAM said in a statement that in a letter to Steel Secretary D R S Chaudhary it has referred to the structural deficit of iron ore availability for domestic steel industry owing to an upper cap in iron ore production together with various environmental concerns.
Rather, ASSOCHAM said, the government must stay vigilant and not repeat the experience of illegal mining caused by un-restrained iron ore exports and interests of the steel industry should be receive government's attention.
(Sources: Economic Times, Indiatimes, Moneycontrol, Indian Express, Zeenews, IBNLive)
Economic scenario likely to improve: Survey
India's economic situation is expected to change for better in the coming months, although the fiscal deficit target set by the government seems to be unachievable in the current scenario, a survey has said.
The mood, as captured by the Assocham Business Confidence Survey for December 2012, seems to be improving at both the economic and industry levels, the chamber said.
In reference to the recent approval given to multi-brand retail, it stated that the industry believes that while the measure would have a positive impact on farmers, consumers, rural youth, employment and in reducing inflation, it would negatively affect small retailers and SMEs.
Further, the survey said, factors affecting business were poor infrastructure, high cost of credit and increasing raw material prices.
(Sources: Economic Times, Indiatimes, Hindu Business Line, Moneycontrol, Worldnews)
Economic Section
Royal Thai Embassy