Reducing CAD is of immediate concern: RBI
Containing high current account deficit is top priority for policy makers, a top RBI official said.
"The immediate concern for India is to reduce the current account deficit from its present high level." said Deepak Mohanty, executive director, Reserve Bank of India. Mr Mohanty was speaking on `Impact of Euro Area Crisis on South Asia' at the SAARC FINANCE group meeting in Islamabad, Pakistan on Tuesday.
The statement comes a day after the Reserve Bank released it mid-quarterly review of the monetary policy which for the first time has said that the external sector and the balance of payments developments will weigh on future monetary policy action.
(Source: Economic Times, Indiatimes, Business Standard, News Hour 24)
Asian businesses optimistic; sentiment in India falls
Asia's top companies have become more optimistic about their business outlook with the retail and shipping industries rebounding sharply in the second quarter of 2013, the latest Thomson Reuters/INSEAD Asia Business Sentiment Survey shows.
The Thomson Reuters/INSEAD Asia Business Sentiment Index climbed six points to 71 in June, its highest level in five quarters and the third consecutive quarterly rise. A reading above 50 indicates a generally positive outlook.
Global economic uncertainty remains the biggest business risk across most countries and sectors, but 44 % of the 91 companies that participated in the poll are now positive about their outlook, up from 30 % in the prior quarter.
(Source: Reuters India, Business Standard, the Financial Herald)
Singapore, India working on Asian FTA
Singapore and India are working on a regional comprehensive economic partnership covering the 10-member ASEAN plus six major Asian markets of Japan, South Korea, China, Australia, Singapore and India.
"We are working with India on the regional comprehensive economic partnership that involves ASEAN plus the six other countries - Japan, South Korea, China, Australia, Singapore and India," the city state's Trade and Industry Minister Lim Hng Kiang said today.
"This is a huge regional FTA (Free Trade Agreement) which will integrate all of us and give India a concrete platform in its 'Look East' policy," said Lim at the India Infrastructure Forum held here.
Elaborating on the India-Singapore Comprehensive Economic Cooperation Agreement (CECA), Lim said Singapore would want to play a pacesetter role in India-ASEAN relationships.
(Source: Economic Times, Indiatimes, Business Standard)
Industry urges Karnataka govt to create land acquisition policy
Industry body Associated Chambers of Commerce (Assocham), said non-availability of land is a major bottleneck for the growth of the industrial sector in Karnataka. The chamber has suggested the new government in the State to formulate a land acquisition and rehabilitation policy with options of equity partnership for land providers, employment opportunities, and stable monthly income among others.
In its action agenda for the new government, submitted to the chief minister Siddaramaiah, Assocham said.
The Chamber has also suggested setting up district-level training institutes on a public private partnership (PPP) model to provide skilled manpower for the industries.
(Source: Business Standard, Smart Investors)
Madhya Pradesh seeks DMIC approval for two infra projects
Madhya Pradesh has proposed two industrial infrastructure projects to Delhi Mumbai Industrial Corridor (DMIC) to the tune of $ 85 million approximately. Both the projects would come up in close proximity of Indore, Dewas and Ujjain.
The first project is a water supply project which is set to come up in Pithampur industrial area near Indore.
The other is a multi-pronged investment project of developing a Knowledge City which is likely to come up near temple town of Ujjain.
Once the government gets DMIC approval, it will develop both the projects on public private partnership (PPP) model. Meanwhile, the Knowledge City has been conceptualized to revive the city Ujjain as modern learning centre.
(Source: Business Standard, Smart Investors)
Government panel for hiking FDI limits in defence, retail, telecom
A government panel yesterday proposed raising foreign investment limits in sectors like defence, multi-brand retail and telecommunications, to spur investment in the country and tide over the Current Account Deficit woes.
"We have submitted the report to the Finance Minister. Action will be taken on it as and when the government decides. Policy is with DIPP so finally they will take a call. This is just our recommendation," Economic Affairs Secretary Arvind Mayaram told reporters here.
The committee, which was set up by Finance Minister P Chidambaram to review the sectoral caps, has suggested that the Foreign Direct Investment (FDI) ceiling in the defence sector be raised to 49 % under the government approval route from 26 % at present.
In order to make multi-brand retail more attractive to foreign investors, the panel suggested that the FDI limit be raised to 74 % under the Foreign Investment Promotion Board (FIPB) route from 51 per cent.
(Source: Economic Times, India Express, Times of India, IBNLive, Business Today)
Heavy rains disrupt electricity generation at hydropower projects
Incessant rains in northern India in the past few days, particularly in the hill states of Uttarakhand and Himachal Pradesh, have disrupted electricity generation due to heavy silt and debris at hydropower projects.
State-owned NHPC Ltd’s 280MW Dhauliganga power project in Uttarakhand has shut down because its power house has gone under water. Power generation at the 394MW Maneri Bhali hydroelectric project in the state too has stopped.
Operations at the 1,500MW Nathpa Jhakri project in Himachal Pradesh, India’s largest hydroelectric plant have been affected due to high silt content in the turgid and fast-moving Sutlej River.
Power transmission failures last year, which left 620 million people without electricity, have deepened worries about the country’s ability to meet its rising energy requirements.
(Source: Livemint, the Energy Source)
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