FDI inflows into India contract 38% in 2012-13
Much-touted foreign direct investment (FDI) reforms notwithstanding, India received 38 per cent less of such inflows into the country at $22.4 billion in 2012-13 against $35.1 billion in the previous year, data released from The Department of Industrial Policy & Promotion (DIPP) showed.
This is in sharp contrast to 2011-12, when FDI inflows grew 64 per cent from $21.4 billion, despite the fact that the year saw some controversial decisions like retrospective amendments to the Income Tax Act.
Analysts said one year’s data could not substantiate whether reforms are yielding results or not and one would have to wait longer to assess a trend.
(Sources: Business Standard, Smart Investors, About India)
GST roll-out may face fresh delays
Differences in the levels of computerization among state administrations may force the Union government to drop its plan of migrating the existing value-added tax (VAT) regime to the information technology (IT) network being put in place to serve as the backbone of the goods and services tax (GST).
The initial plan was to migrate VAT to the network to test preparedness before the eventual roll-out of GST, aimed at removing barriers to the movement of goods and services across states and creating a unified market.
Given the low levels of computerization in some states, the GST network (GSTN) will now focus first on developing a database of dealers based on the permanent account numbers (PAN) issued by the income-tax department. With this migration timetable delayed, the actual roll-out of GST may take longer than anticipated.
(Sources: Livemint, Rediff News)
Effective governance can propel growth to over 8%: Chidambaram
The country's economy will continue to grow at 5-6 per cent "regardless" of what government does or doesn't do, but with effective governance it can rise to over 8 per cent, Finance Minister P Chidambaram said today.
The country should focus on ensuring the conditions for economic growth remain "intact", he added.
Chidambaram was speaking at the first edition of Excellence in Financial Journalism awards, organised by Chennai-based Shriram Group. The Finance Minister also said that steps like efficient use of money and design of projects can propel the growth rate to 9 per cent.
(Sources: Economic Times, Indiatimes, Business Today , Moneycontrol)
Cuba invites India to explore its resource rich areas
Reeling under severe financial sanctions, Cuba today sought India's help in exploiting its vast natural resource base and as well as enhanced economic cooperation with it and other BRIC countries.
"India is a world leader in the field of Information and Satellite technology which they can use to cooperate with us in exploration of resource rich regions in our country," Cuban Foreign Minister Bruno Rodriguez Parrilla said.
Offering to cooperate with India in the pharmaceutical sector, he said that Cuba and other Latin American countries that are a part of the Community of Latin American and Caribbean States (CELAC) have considerable amount of expertise and resources to offer to Indian companies.
(Sources: Economic Times, Indiatimes, Times of India, India Everyday)
India, UAE keen to conclude investment protection pact soon
Seeking to boost mutual cooperation, India and UAE discussed the possibility of early conclusion of an investment protection pact during the visit of Finance Minister P Chidambaram to the Gulf's financial hub.
The issue of early conclusion of the Bilateral Investment Promotion and Protection Agreement (BIPA) was discussed between the visiting minister and Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of UAE Armed Forces.
BIPA, according to sources, is aimed at encouraging flow of investments into India, especially in the infrastructure sector.
Chidambaram, according to a statement issued by the Indian embassy, "assured that Indian Government would look into some of the issues faced by UAE investments in India".
(Sources: Economic Times, Indiatimes, DDI News, Free Press Journal)
Commerce Ministry officials visiting China; bridging trade gap top agenda
Bridging the widening trade deficit with China through greater market access for Indian products like pharmaceutical and agriculture will be on top of the agenda of Commerce Secretary S R Rao during his three-day visit to Beijing beginning tomorrow.
Rao, who will be leading a team of government officials, is also expected to discuss other issues related to the services sector.
"Indian IT industry face problem in doing business in China. India needs more market access in IT sector as well besides pharmaceutical and agriculture," an official said.
While India's export to China were only USD 13.52 billion in 2012-13, its imports from that country during the period aggregated USD 54.3 billion, leaving a trade deficit of USD 40.78 billion.
India and China are aiming to take the two-way trade to USD 100 billion by 2015.
(Sources: Economic Times, Indiatimes, Hindu Business Line, About India)
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