IMF team pegs FY13 India growth at 5.4%
Staff writers of the International Monetary Fund (IMF) have estimated India’s economic growth this financial year at a 10-year low of 5.4 %. For 2013-14, they pegged growth at 6 %. However, India has said the projection for 2013-14 is too conservative.
The projections, part of a report prepared by an IMF team, followed discussions on economic development and policies with Indian officials. The report was released today under Article IV of the IMF’s articles of agreement.
For deceleration in India’s growth, the IMF team blamed policy uncertainty, including the “high profile” tax announcements in Budget 2012-13, delayed project approvals and supply bottlenecks, particularly in the mining and power sectors.
The report projected India’s current account deficit (CAD) to narrow to 3.9 % of GDP this year, aided by falling gold imports, a weaker rupee, and broadly stable oil prices.
(Sources: Business Standard, Indiatimes, Times of India, i4u, Hindu Business Line)
Gems, jewellery exports fell by over 27% in December
India's gems and jewellery exports dropped 27.5 % year-on-year to $ 2.1 billion in December 2012, due to weak demand in traditional markets like the US and EU.
These exports stood at $3.02 billion in the same period in the last fiscal, according to the data provided by the Gems and Jewellery Export Promotion Council (GJEPC).
The major markets for the country's gems and jewellery include Europe, the US, the UAE and Hong Kong.
Among the items which witnessed a maximum decline in December, cut and polished diamonds topped the list with a 37 % drop, followed by gold medallions and coins 22%, gold jewellery 14 % and silver jewellery about 7 %. Gems and jewellery constitute 17 % of India's total exports and the sector employs 1.5 million people.
(Sources: Economic Times, Indiatimes, Indian Express, i4u, Moneycontrol, India Everyday)
Starbucks opens first outlet in central Delhi
Starbucks, the world's biggest coffee chain, launched its first outlet in central New Delhi on Wednesday and vowed an aggressive drive for business across India.
Starbucks entered the vast Indian market in a joint venture with the country's giant Tata conglomerate and launched its first store in the commercial hub Mumbai last October.
The new store in Delhi is located in the landmark Connaught Place. A branch opened in the city's main international airport last month.
Starbucks will mainly compete with Indian-owned Cafe Coffee Day, which dominates the market, and with well-established foreign chains such as Britain's Costa Coffee and the US Coffee Bean and Tea Leaf.
(Sources: Wall Street Journal, NDTV, the Hindu, Livemint, Economic Times)
India's long-term growth potential rate is 7%: Goldman Sachs
Global investment banking major Goldman Sachs believes the long-term potential growth rate of the Indian economy is 7 % and this could be notably higher provided the reform process gains momentum.
According to the research note, India is expected to clock 6.5 % real growth in 2013, which would rise to 7.2 % in 2014 and further to 7.5 % in 2016.
India has been growing at an impressive rate of 9 % before the global financial meltdown pulled the growth rate down to 6.7 % in 2008-09.
According to the report, the challenges that India faces can be categorised into three areas: governance /efficiency, the fiscal and current account deficits, and infrastructure.
(Sources: Business Standard, Livemint, Indian Express, Firstpost, Hindu Business Line)
Seafood exports to be tepid this year
This year's seafood exports will be less than last year's with exporters facing problems in major markets and operational cost increasing due to an increase in freight and diesel prices.
"Exports have shown a decline of 11% in value in dollar terms and about 5% in quantity till December. There is a marginal improvement in value in rupee terms. We may not reach last year's figure this year," said Elias Sait, secretary general of Seafood Exporters Association of India.
India exported 8, 62,021 tonne seafood valued at $3.5 billion in 2011-12. The Marine Products Export Development Authority had set a target of $4.5 billion for the current year given the increase in vannamei shrimp production.
(Sources: Economic Times, Indiatimes, Exporter, Allvoices, i4u, PR Newswire)
Indian cold chain industry to reach $ 12 billion by 2017: Assocham report
The total market value of Indian cold chain industry is expected to reach $ 12 billion by end by 2017, says an Assocham report.
The, report, however, said that factors like uneven distribution of storage capacity and high capital investment may be deterrent for the growth of the industry.
The report, 'Opportunities in Cold Chain- emerging Trends and Market Challenges', released during a national summit on cold chain here also said though India produced 147 million tonnes of vegetables in 2011, the country has cold chain capacity available for only 9 millions tonnes, leading to huge wastage.
The location of cold storages in India is highly concentrated to a few states. Uttar Pradesh, West Bengal, Punjab, Gujarat etc., are the hub of cold storages in India, according to the report.
(Sources: Economic Times, Indiatimes, Rediff News, i4u, Business Standard, Moneycontrol)
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