Growth to pick up in fiscal 2013-14, room for more FDI: P Chidambaram
India's economy is capable of absorbing $50 billion in foreign direct investment per year, Finance Minister P. Chidambaram said on Monday, adding that the government is committed to reforms to tackle a large current account deficit.
Addressing a news conference during a visit to Tokyo promoting India as investment destination, Chidambaram also reiterated that growth in Asia's third-largest economy was expected to accelerate in the current fiscal year to March 2014.
The government is struggling to boost the economy, which has posted its weakest growth in a decade. Chidambaram repeated his recent pledge that the government would simplify "outdated" foreign investment caps in a bid to attract more investors and tackle its large current account deficit.
(Sources: Economic Times, Indiatimes, Reuters India, Times of India, Worldnews, Moneycontrol)
Core sector performance worst in decades
Dragged down by natural gas and fertilisers sectors, the eight core industries shrank 2.5 % in February, a worst ever performance in decades, which is likely to result in muted overall factory output numbers.
The core industries -- coal, crude oil, natural gas, petroleum refinery products, fertilisers, steel, cement and electricity -- had grown by 7.7 % in February, 2012.
During April-February 2012-13, the cumulative growth rate of the sector was 2.6 % against 5.2 % during the corresponding period in 2011-12.
These eight industries together account for about 38 % in the Index of Industrial Production (IIP).
Sector-wise performance revealed that the biggest decline was in natural gas segment at over 20 % in February, followed by coal (-8 %), electricity (-4.1 %) and crude oil, fertilizer (-4 %). However, cement and steel output rose by 3.9 % and 0.5 % respectively in February.
(Sources: Economic Times, Indiatimes, Zeenews, India Everyday, World News, Times of India)
India's manufacturing growth slips to 16-month low in March: HSBC
India's manufacturing sector witnessed the slowest rate of expansion in 16 months in March as power outages hampered production activity and decline in new business orders, an HSBC survey said today.
The HSBC India Manufacturing Purchasing Managers' Index (PMI) -- a measure of factory production - stood at 52 in March down from 54.2 in February.
Persistent power cuts weighed on the manufacturing sector. Moreover, the volume of incoming new work increased at the slowest pace in 16 months and export orders expanded at the slowest pace in seven months, HSBC said.
(Sources: Economic Times, Indiatimes, Financial Express, Indian Express, Business Today, Daily Pioneer)
February coal imports up 9.62 pct at 9.65 mln tonnes: Reports
Coal shipments to India, the world's fourth-biggest importer of the fuel, rose 9.6 % to 9.65 million tonnes in February from a year earlier, provisional data from government sources showed, as thermal coal imports nearly doubled.
Domestic production of coal, which fuels more than half of India's power generation, has lagged capacity growth in the power sector, where energy production falls far short of the demands of a fast-growing economy and an increasingly affluent population.
However, soaring coal imports are adding to pressure on the country's current account deficit, which widened to a record high in the December quarter.
Thermal coal imports were 7.0 million tonnes in February, while coking coal imports were 2.16 million tonnes, the data obtained by Reuters showed on Monday, as supply lagged demand in the energy-hungry nation.
(Sources: Economic Times, Indiatimes, Infraline, News Now, News BCC, Daily India News)
FY'13 current account deficit seen at 5.1%, says BofA ML
India's current account deficit, which hit record high of 6.7 % in December quarter, is likely to come at 5.1 % of GDP for the full fiscal year 2013, Bank of America Merrill Lynch (BofA ML) said on Monday.
The investment banking major has hiked its FY'14 CAD forecast to 4.3 % of GDP from 3.8 % with slowing global recovery likely to delay export turnaround.
The CAD widened from 5.4 % in Q2 (July-September) to a record high of 6.7 % of GDP in Q3, driven mainly by large trade deficit, as per data released by RBI.
Moreover, a high deficit is likely to remain a drag on the rupee; BofA ML said adding that the rupee stalemate will persist till the RBI rebuilds forex reserves. Currently, the rupee is hovering around the 54 level against the US dollar.
(Sources: Economic Times, Indiatimes, Business Standard, News BCC, i4u, Worldnews)
Hero MotoCorp starts ops in Africa, LatAm
The country’s largest two-wheeler maker, Hero MotoCorp, on Monday said it had commenced operations in Africa, Latin and Central America.
The company is set to despatch the first lot of two-wheelers to Kenya later this month.
It has already appointed new distributors and channel partners in these markets, where retail sales of the Hero two-wheelers is likely to commence in the first quarter of this financial year.
These initiatives are in line with Hero MotoCorp’s vision of reaching a total of 10-million unit volumes in a few years’ time, and garnering a million units — 10 % of that — from international business. The company currently registers around 2.5 % of its volumes from sales in overseas markets.
To meet this objective, the company has already short-listed as many as 30 countries across Latin America, Central America, Africa and South East Asia.
(Sources: Economic Times, Indiatimes, Business Standard, Smart Investors, Hindu Business Line, Worldnews)
Indian CEOs more bullish on global growth in 2012
CEOs in India are more optimistic about prospects for the global economy than last year, and are significantly more confident than their global peers about growth prospects in the short term, reveals the PwC 16th Annual Global CEO Survey.
Thirty-eight per cent of the CEOs interviewed from India think that the global economy will improve in the next 12 months, as opposed to 24 % in 2012. Only 18 % of the global CEOs share this view, marginally up from 15 % last year.
The survey reveals three common themes. CEOs are targeting select pockets of opportunity. They are focused on understanding the changing consumer, improving operational efficiencies, and cutting costs without cutting value.
(Sources: Business Standard, India Info line, Smart Investors, Daily India News, NDTV)
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