Services PMI plunges to 18-month low
In April, growth in India’s services sector fell to its lowest level since October 2011, when output contracted, according to the HSBC Purchasing Managers’ Index (PMI) released today. Analysts said the data would prolong the wait for signs of economic recovery policymakers had hoped to see.
The services sector is the largest in the Indian economy, accounting for more than 60 % of the country’s gross domestic product (GDP), if construction is included in the sector. Services PMI fell to 50.7 points in April. In October 2011, it was 49.1 points. A reading of more than 50 points shows growth, while below it indicates contraction. In March, services PMI were 51.4 points. The average PMI reading in the quarter ended March stood at 54.3 points.
(Sources: Business Standard, Business World, NDTV, Economic Times, Indiatimes)
TN commits $ 182 million to raise farm sector prospects
The Tamil Nadu government on Monday announced schemes worth $ 182 million aimed at boosting agricultural production in the state besides ensuring fair prices for agri produce in the market. The state expects these projects to help it achieve self-sufficiency in foodgrain.
Chief Minister J Jayalalithaa said agriculture production in the state crossed 10 million tonnes in 2011-12 and it had won the Krishi Karman award for 2012-13. The state had given relief to farmers who faced losses of more than 50 % (in their cultivation) in 2012-13 due to the failure of monsoon and the reluctance of Karnataka to give water.
(Sources: Business Standard, News BCC, Rediff News, India Everyday, Moneycontrol)
Gujarat attracts 41% investment in real estate: Assocham
The state of Gujarat has maximum share of about 41% in the new investments attracted by the real estate sector across India during the last fiscal, as per apex industry body ASSOCHAM study.
The realty sector in India attracted new investments worth over $ 7.77 billion as of March 2013 which slipped from over $ 17.12 billion a year ago," according to a real estate sector specific analysis carried out by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
Apart from Gujarat, the states of Maharashtra (over 17%), Karnataka (10%), Tamil Nadu (8%) and Uttar Pradesh (over 6%) are amid top five states with maximum share in new investments attracted by real estate sector across India, highlights the ASSOCHAM analysis.
(Sources: Economic Times, Financial News Focus, New Indian Express, Times of India, i4u)
India's imports from Japan, Malaysia increase
India's imports from Japan, with which it implemented a comprehensive free trade agreement in 2011, increased by over 3 % to $12.5 billion the last fiscal, Parliament was informed today.
Similarly, the country's imports from Malaysia grew by 9 per cent to $10.43 billion in 2012-13, from $9.55 billion during the previous fiscal.
India has implemented Comprehensive Economic Cooperation Agreement (CECA) with Malaysia in July 2011, Minister of State for Commerce and Industry D Purandeswari said in a written reply to the Lok Sabha.
She also informed the House that India's exports to Malaysia increased to $4.44 billion in 2012-13 from $3.97 billion during the previous fiscal.
However, the country's exports to Japan declined to $6.26 billion during the last fiscal, from $6.32 billion in 2011-12.
(Sources: Zeenews, New Indian Express, Press Trust of India, Economic Times, Indiatimes, i4u)
Delhi most creative state in India, says Creative Index Report
In terms of use of modern technology, talented people and tolerance, Delhi is the most creative state in the country, says a study.
According to the Creative Index Report 2013, Chandigarh, Punjab, Kerala, Goa, Mizoram, Andaman and Nicobar Islands, Puducherry and Maharashtra round out the top nine.
Haryana and Manipur are tied for the tenth position, it said.
Delhi takes the top spot as the most creative state in India with the greatest potential for success in today's creative economy.
The study explores the presence of the 3Ts - Technology, Talent and Tolerance in economic development within each state and Union Territory in India.
The report was launched by Martin Prosperity Institute, Institute for Competitiveness and The Prosperity Institute of India.
(Sources: Economic Times, IBNLive, Indian Express, Rediff News, India Everyday)
Foreign retailers must set up fresh back-end facilities: Anand Sharma
Last year, India allowed FDI in multi-brand retail trading subject to a minimum $100-million investment and a clause that at least half the FDI be invested in back-end infrastructure within three years of the first tranche of FDI. Back-end infrastructure includes capital expenditure for processing, manufacturing, distribution, design improvement, quality control, packaging, logistics, storage, warehouses and agriculture produce infrastructure.
Experts see huge potential for foreign retailers as the share of India's organised retail, which is just 8% of the total retail market now, will grow much faster than traditional retail and increase to 20% by 2020.
Expenditure on land cost and rentals will not be counted for purposes of back-end infrastructure. However, lack of clarity on acquisitions, back-end investment, sourcing and taxation coupled with resistance from some states have made global retailers apprehensive.
(Sources: Economic Times, Indiatimes, Financial Express, Industries News, Zeenews)
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