Chidambaram to hard sell India to domestic, foreign investors
Three days after the Budget, Finance Minister P Chidambaram today outlined his agenda for action: Get public sector and private companies to invest, ask foreign investors to pump money into India, and address the widening current account deficit (CAD).
In the short run, he said the government's priority was to get foreign investments to fund the CAD. In the medium term, it was to increase exports to pay for the import bill.
India's CAD reached an all-time high of 4.2 % of gross domestic product (GDP) in 2011-12 and was set to be higher in the current financial year. In the first half of the current financial year, it was 4.6 %, against four per cent in the corresponding period of 2011-12.
(Sources: Economic Times, Indiatimes, Business Standard, Daily India News, Press Trust of India)
Services PMI falls sharply in February: poll
Indian services growth eased off the accelerator last month as new orders failed to keep up with January's blistering pace, a business survey showed on Tuesday, although companies remained optimistic about future business.
The HSBC services Purchasing Managers' Index, based on a survey of around 400 companies, fell to 54.2 in February from a one-year high of 57.5 in January. It was the biggest one-month fall in nearly a year.
While the February PMI fell for the first time since November, it has held above the 50 mark that separates growth from contraction since late 2011.
Services make up nearly 60 % of India's output and have been the lone bright spot in an otherwise sluggish economy that grew at its slowest pace in December in more than a decade.
(Sources: Reuters India, Firstpost, Daily India News, India Everyday, Rediff News, NDTV)
Industry seeks more sops to boost investment
Industry on Monday asked the government to take more measures to spur investment and growth.
"There is the issue of excise valuation where goods are sold below cost, based on the recent judgment of the SC in the case of Fiat India. There are a number of genuine reasons where manufactures sell their goods at less than the cost for a specific period. Suitable guidelines to exclude such cases need to be issued," CII President Adi Godrej said at the post-Budget interaction. Ficci President Naina Lal Kidwai suggested encouraging investments by SMEs, the limit on investment allowance could be brought down to $ 1.83 million from the proposed $ 18.30 million. She said the period for which the allowance is available should be increased from 2 to 5 years, as projects need longer gestation period because of environmental clearances.
(Sources: Economic Times, Indiatimes, Business Standard, Zeenews, Business Today, the Hindu)
NABARD estimates $ 1.48 billion for critical infra in Karnataka
National Bank for Agriculture and Rural Development (NABARD) has estimated the prioritised resource requirement for critical infrastructure needs at $ 1.48 billion for Karnataka during the 12th Plan period. NABARD has adopted the theme "Critical Rural Infrastructure for agriculture and rural development" for 2013-14.
According to NABARD, the critical infrastructure is defined as that infrastructure, which if created, will support increased credit flow under agriculture and benefit a large number of people. Critical infrastructure, therefore covers infrastructure having a large impact on livelihoods and income levels of rural population, critical constraints in improving productivity / production levels of farmers and infrastructure that leads to environmentally sustainable development, the bank said in its latest State Focus Paper.
(Sources: Business Standard, India Everyday, Smart Investors, Think India, Rediff News)
India, SACU preferential trade pact likely to conclude by Dec 2013
India and South African nations are expected to conclude a preferential trade agreement by the end of this year, which aims at reducing tariffs on certain items traded between the two sides.
The India-SACU Preferential Trade Agreement (PTA) would enhance economic ties by reducing tariffs on several key products.
The Southern African Customs Union (SACU) consists of Botswana, Lesotho, Namibia, South Africa, and Swaziland. The PTA is slightly different from the free trade agreement (FTA).
In 2012, the bilateral trade between India and South Africa was over USD 14 billion. South Africa's main exports to India are gold, coal, diamonds and platinum, while its imports from India include auto components and steel.
(Sources: Economic Times, Indiatimes, Mining Weekly, Engineering News, Hindu Business Line)
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