India, Thailand to speed up plan to construct trilateral highway
New Delhi and Bangkok will later this month discuss ways to expedite the completion of an ambitious trilateral highway from India’s northeast to Thailand via Myanmar. The highway, which the two nations hope would be ready by 2015, will spur growth in trade and investment in the region.
Besides the highway, the interest of Indian companies to participate in the construction of the Dawei port in Myanmar, which is being developed with the help of Thailand, signing of a cluster of MoUs as well as the conclusion of talks on a Free Trade Agreement (FTA) this year will top Prime Minister Manmohan Singh’s agenda when the Thai counterpart Yingluck Shinawatra in Bangkok on May 30-31.
The Indian embassy in Thailand along with Indian Chamber of Commerce, Calcutta will organise a follow-up seminar on June 17 on the highway projects. Four major seminars have already been held on the plan.
The MoUs will be on information technology, space, extradition and money laundering. Also on the agenda is Thailand’s interest to invest in India’s infrastructure and electronics industries.
Bilateral trade has touched $9.4 billion and over 70 major Indian companies have invested in Thailand in anticipation of the Asean Economic Community in 2015.
(Sources: Financial Express)
Steps to boost foreign investment coming soon
In a big new round of reforms, the government is likely to announce a slew of measures to boost foreign fund flows into India and pep up a falling rupee, while soothing the frayed nerves of investors. The government is looking to address concerns of investors who fear the government is more likely to focus on political risk management in an election year run-up rather than reverse the slowdown in the economy, which until recently was an engine of global growth.
India’s economic growth, according to advance estimates, crashed to a decade’s low of 5% in 2012-13.
The new measures will likely make it easier for foreign institutional investors (FIIs) to invest in India's corporate and government bond markets, said a government source, who did not wish to be identified.
The move is aimed at attracting more dollars into India to halt a sliding rupee that recently fell below 55 to the US dollar.
(Sources: Hindustan Times, NDTV Profit)
Crisis in coal could drag growth to pits
With coal demand rising by over 10% annually and domestic supplies rising just 3-4%, India’s coal imports have grown at a compounded annual growth rate of 23% over the past five years. In terms of rupees, the increase in coal imports has been about 15% (CAGR) during these years.
Rising coal import is not good news for state electricity boards (SEBs) either, the majority of which are in financial mess and resorting to load shedding rather than buy costly electricity. States like Gujarat, Rajasthan and Haryana have shown their reluctance to pay up additional fuel costs for electricity supply from plants run by private players – Adani Power and Tata Power – after the recent increase in the Indonesian coal price.
(Sources: Financial Express, Express India, India Everyday)
India's coking coal imports seen rising to 35 million tonnes in 2013/14
India's metallurgical coal imports are likely to grow by 8.7 % to 35 million tonnes in 2013/14 as additions to its steel-making capacity lift demand, four traders and a steelmaker said.
India, the world's fourth-largest steel producer, is expected to add around 5 million to 6 million tonnes of steel-making capacity in this fiscal year to end-March, said an official at JSW Steel.
Imports in the last fiscal year covered about 40 % of India's total metallurgical, or coking, coal needs. Domestic coal reserves of 286 billion tonnes, fifth-largest in the world according to BP, mostly consist of thermal coal, which is used in power plants.
India produced 49.35 million tonnes of metallurgical coal and imported 32.2 million tonnes in 2012/13, government data showed.
(Sources: Economic Times, Indiatimes, Reuters India, Rediff News, Coal Guru)
Economy turning around; GDP to exceed 6%: PM Manmohan Singh
Indicating that the worst may be over for the Indian economy, Prime Minister Manmohan Singh today said economic situation is turning around with inflation coming under control and the GDP growth likely to exceed 6 % in the current fiscal.
Speaking on the fourth anniversary celebrations of UPA-II government, Singh said 8 % growth rate was possible if the Congress-led coalition is voted to power again next year.
Attributing the decline in economic growth--estimated to be 5 % in 2012-13-- to global phenomenon, he said the "slowdown is temporary". A 6 % growth in the current year will set the stage for returning to 8 per cent growth in the current Five Year Plan period ending March 31, 2017.
Stating that agricultural growth was critical for rural prosperity, the Prime Minister said the government was targeting 4 % growth in the sector and is attempting to increase foodgrain production as well as diversifying agriculture.
(Sources: Economic Times, Indiatimes, Daily News, & Analysis, Deccan Herald, India Everyday)
RIL to invest $ 540 million in Bengal to set up 4G service
Reliance Jio Infocom Ltd, a subsidiary of Reliance Industries Ltd (RIL), plans to invest $ 540 million to set up telecom infrastructure in West Bengal to roll out high-speed fourth-generation, or 4G, data services in the state.
It plans to lay 5,500km of optical fibre and set up 3,200 telecom towers across West Bengal, Tarun Jhunjhunwala, business head and state mentor, Reliance Jio Infocom, said on Wednesday.
The company has an agreement with Anil Ambani-led Reliance Communications Ltd to use 1,500km of optical fibre in the state. It has permission to plant another 1,000km more and is in discussions for approvals in the remaining area and nearly 50% of the planned cable in the state will be laid in Kolkata Jhunjhunwala said.
(Sources: Economic Times, Indiatimes, Livemint, Hindu Business Line, Zeenews)
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Royal Thai Embassy