สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 13 มิถุนายน 2556

Fitch upgrades India's outlook to stable, affirms BBB- rating

Global ratings agency Fitch has upgraded India's sovereign credit outlook to stable from negative, bringing some respite to the government amid a free fall of therupeeand slowdown in industrial production. Fitch on Wednesday also affirmed 'BBB-' rating on account of the country's efforts to contain budget deficit.The rating upgrade is expected to help check the rupee's free fall as foreign debt investors may stop pulling out money from the country. The government welcomed the move. The rating agency said signs of a recovery would continue to elude until a healthy investment climate is recorded. Fitch expects gross domestic product growth to rise 5.7 per cent this financial year and 6.5 per cent in 2014-15. For this financial year, the government has estimated 6.4 per cent growth. A report by Standard Chartered Bank said the development should bring some relief to foreign debt investors who have withdrawn $3.27 billion from Indian debt market since May 22.

(Source: The Economic Times)

Gold not the safest bet, no further hike in import duty: Chidambaram

Ruling out any further hike in import duty of gold, Finance Minister P Chidambaram on Thursday said that net gold imports have fallen from an average of $135 million in the first half of May to $36 million in the second half of last month. He added that this should have a positive impact on markets. According to Chidambaram it is wrong to say that gold is the 'safest investment' option, there are other investment options also. "People who are financially well informed should put their investments in other financial instruments," he added. Chidambaram appealed to everyone to resist the temptation to buy gold. This will show positive impact on every aspect of Indian Economy

Chidambaram went on to say that people will invest only when they get a good price on their investments. "People think that they are buying gold in rupees. Actually they are buying gold in dollars," he said. "If for one year there are no gold imports, it will change the current account deficit story of the country" he added.

(Source: The Economic Times)

Gold futures prices down on weak global cues

Gold prices fell 0.46 per cent to Rs 27,955 per 10 gm in futures trade today as participants reduced their positions largely in tandem with a weak trend overseas where precious metal dropped to over two-week low. At the Multi Commodity Exchange, gold for delivery in far-month October contracts eased by Rs 130, or 0.46 per cent, to Rs 27,955 per 10 gm in business turnover of 189 lots. Likewise, the metal for delivery in August shed Rs 117, or 0.42 per cent, to Rs 27,775 per 10 gm in 2,578 lots.

(Source: The Financial Express)

Indian rupee recovers from record lows, up 60p against US dollar as Fitch revises outlook

Bouncing back from its record lows, the rupee today gained 60 paise to close at 57.79 against the US dollar as rating agency Fitch revised India's credit outlook to stable and government officials soothed market sentiment with assurance of taking steps to curb the currency's fall. Meanwhile, the consumer price index (CPI) based inflation fell to at 9.31 per cent in May as against 9.39 per cent in April while the Index of Industrial Production (IIP) growth slipped to 2 per cent in April from revised 3.4 per cent in last month.

(Source: The Financial Express)

Finance Minister P Chidambaram promises more reform measures to boost economic growth

In an attempt to woo investors to invest in the Indian markets and economy, Finance Minister P Chidambaram on Thursday said that a number of measures have to be taken to revise growth in economy, fiscal consolidation tops list, followed by moderating inflation. Chidambaram went on to highlight measures that the government will take in order to boost economic growth and contain fiscal and current account deficit. These will include gas pricing, FDI limits,and skill development.

(Source: The Economic Times)

Industrial growth muted at 2%

Industrial production grew at a sluggish two per cent in April, the first month of the current financial year, despite a low base of minus 1.3 per cent. While mining output fell three per cent in April, the straight sixth monthly decline, electricity generation rose just 0.7 per cent, which might further affect industrial growth. Manufacturing managed to grow a little over four per cent, on a low base of a decline a year before.

The sluggish growth of two per cent was driven by manufacturing, which constitutes a little over 75 per cent of the IIP. It rose 2.8 per cent in April, driven largely by a base effect of minus 1.8 per cent. Manufacturing had grown 4.4 per cent in March. Consumer non-durables largely gave impetus to manufacturing growth. Fast moving consumer goods expanded considerably by 12.3 per cent, compared to 2.3 per cent in April last year. However, consumer durables output fell sharply by 8.3 per cent in April from a growth of 5.4 per cent in the same month of 2012. However, with retail price inflation at over nine per cent and a depreciating rupee, RBI would be in a dilemma on cutting of the policy rate.

(Source: Business Standard)

Economic gloom worrisome: SBI chairman

Describing as worrisome the continuing economic gloom, as reflected in the IIP data, the State Bank of India Chairman Pratip Chaudhuri today said it was time policy makers “wake up” to take urgent corrective steps. The chairman of the nation’s largest bank stressed the need to give more attention to the industrial sector, saying all major economies in the world have grown on the back of their manufacturing prowess.

(Source: Business Standard)

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