Finance Minister P Chidambaram slams S&P for not upgrading outlook
Union Finance Minister P Chidambaram on Monday expressed unhappiness with ratings agency Standard & Poor's (S&P) reiteration of a negative outlook on India, saying the country deserved an outlook upgrade given the improvement in the macroeconomic situation.
Chidambaram also said the government could take more measures to curb gold imports if they did not slow down. He appealed to the people of India to curb their passion for gold in national interest.
Chief Economic Advisor Raghuram Rajan and Economic Affairs Secretary Arvind Mayaram, who had argued for an upgrade last month in interactions with the ratings agency, had already expressed their displeasure.
(Sources: Economic Times, Indiatimes, Zeenews, Yahoo News, India Everyday)
India’s trade deficit with China widens over $40 billion in 2012-13
India and China on Monday signed three deals to step up exports to the Dragon country as part of efforts to address the huge trade imbalance.
India's trade deficit with China has widened to over $40 billion in 2012-13 from about a billion dollar at the beginning of the decade.
The problem, say experts, is not so much India's exports, but massive imports from China of even those things that India can easily manufacture.
(Sources: Economic Times, Indiatimes, Press Trust of India, i4u, Daily India News, India Everyday)
India, China set $100-bn target for FY15
The Indian and Chinese governments agreed today to scale up two-way trade to $100 billion by 2015 from $67.8 bn in 2012-13.
Bilateral trade went from $2.1 bn in 2001-02 to $75.6 bn in 2011-12; it then came down to $67.8 bn during 2012-13. Simultaneously, India’s trade deficit increased from $1.1 bn in 2001-02 to $40.8 bn in 2012-13. In 2012-13, China became India’s fourth largest trading partner from third largest in 2011-2012. Our exports fell from $18.1 bn in 2011-12 to $13.5 bn in 2012-13.
To address the trade deficit issue, both sides today signed three agreements, on buffalo meat, fisheries and pharmaceuticals, and one agreement on feed and feed ingredients.
(Sources: Business Standard, Smart Investors, Economic Times, Indiatimes, News BCC)
Global retailers like Walmart & Tesco can open warehouses in states opposing FDI
"Foreign players can set up warehouses and also source products from small and medium enterprises from those states which are against FDI in multi-brand retail. No state will stop any foreign player to procure goods or do business with SMEs," a top official in the DIPP told PTI.
US-based Walmart and UK-based Tesco have sought clarifications from the Department of Industrial Policy and Promotion (DIPP) on whether they could set up warehouses in states which are against the Centre's retail FDI policy.
The official also said there will also be no restriction on the foreign retailers from sourcing products from SMEs in those states.
(Sources: Economic Times, Indiatimes, Business Standard, Financial Express, the Hindu)
Reliance Infrastructure to exit $ 3.63 billion projects on government delays
Reliance Infrastructure is in the process of pulling out of mega projects worth $ 3.63 billion due to inordinate delays by government agencies in fulfilling commitments relating to these projects.
The Anil Ambani-led company hived off its new power projects into subsidiary Reliance Power so that it could evolve into an infrastructure developer. But the roadblocks faced by some of the trophy projects won by R-Infra have forced it to change gears and exit projects to cap potential losses.
(Sources: Economic Times, Indiatimes, Rediff News, Indian Radios, India Everyday)
Govt, industry ready plan to power up electrical gear market
The department of heavy industries and the makers of electrical equipment makers have chalked out a plan to revive the $ 21.80 billion industry hit by a poor order book and cheap imports.
A 10-year Indian Electrical Equipment Mission Plan till 2022 has identified five areas of concern: competitiveness, technology upgrade, skills development, exports and conversion of latent demand.
"After growing 13.7% in 2010-11, growth slipped to 6.9% in 2011-12. After ten years, the industry has witnessed a fall in 2012-13. The sluggish domestic demand on account of the slowdown in the country's power sector and a surge in imports in recent years has been primarily responsible for the current situation," said Indian Electrical & Electronics Manufacturers' Association (IEEMA) president JG Kulkarni. IEEMA says the first eleven months of 2012-13 saw a drop of 7.3% in the industry.
(Sources: Economic Times, Indiatimes, Press Trust of India, i4u, Daily India News, India Everyday)
Now, imported coal more viable for power companies in coastal areas: Experts
Imported thermal coal has become a much more viable proposition for domestic power generators in coastal areas, erasing the 30-40% price differential with state-run Coal India's produce of the same variety.
Experts say the recent drop in international prices will benefit importers in coastal areas and those buying the fuel from Coal India's underground mines under a special contract. Power producers in India use a blend of the premium quality imported coal and Coal India's produce.
(Sources: Economic Times, Indiatimes, Infraline, News BCC, i4u, Daily India News)
Economic Section
Royal Thai Embassy