สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 8 กรกฎาคม 2556

Restrictive ROs lopsided Trade Agreements against India
Taking into account the widening trade deficit and increasing imports which left the recent India's bilateral trade pacts on the advantages of partners, including ASEAN, some trade analysts believe that it could not only blame to Indian policymakers but also clauses of Rules of Origins (ROs) built in to them.

ROs are meant to reduce chances of third exporters becoming unintended beneficiaries of various bilateral trade-pacts by stipulating that a certain level of value is added in the trade originating (exporters) country bound by the trade pact to claim the duty benefit. Those employed under ROs are, for instances, India-Thailand early harvest scheme, India-Singapore CECA, and India-Japan CEPA. But however, because of the difficulty in the complying with the ROs and very low tariff distinction between FTA and Non-FTA routes, Indians exporters choose not to claim FTA benefits.

Bipul Chatterjee, deputy executive director of the Jaipur-based CUTS international, said that India has been unable to penetrate into the ASEAN markets as much as it desired because of the presence of other established players. Similar to others, he further added "These bilateral agreements have geopolitical significance which delays the economic gains expected from them. The general economic conditions have also slowed down trade with our partner countries."

(Source: the Financial Express)

Home Ministry seriously no to FDI hike in defence, space, I&B
In a move responding to the hiking of FDI limit to 49% in all sectors, the Home Minister seriously conveyed to the Department of Industrial Policy and Promotion (DIPP) that FDI in defence, space, telecom and other areas needs mandatory security clearance from home ministry.

Allowing FDI in these areas, particularly the involvement of China, Pakistan, Bangladesh, Indonesia, and Saudi Arabia will lead them to dictate terms which could be against India's interest. And these will jeopardize the security of the country. An official from the Home Ministry stated that this is a very serious issue, so they have informed to DIPP and they will soon write another letter to explain their opposition in hiking the FDI in these key sectors.

(Source: the Financial Express, the Economic Times)

Pharma Have to get Clearance by 30 August
In a rare incident that the drug producers coming to prove safety and efficacy of new drug introduced in India, the DCGI-drug regulator-has asked all such manufacturers to apply before 30 August. Any manufacturer failed to do so, will have to face prohibition of the drug.

The deadline was released after the Fixed Dose Combinations (FDCs) got approval from state licensing authority without clearance of drug controller, failed to apply for providing the safety and efficacy of the drugs. Even in January all the makers of FDCs had been asked to prove the safety and efficacy within 18 months, failing which such FDCs would be considered prohibited for manufacture in the country.

(Source: the Economic Times)

Rupee May Weaken against US dollar
Confederation of Indian Industry (CII) said in a statement on Sunday, that the rupee may weaken further against US dollar if the government doesn't address issues like dwindling FDIs and infrastructural bottlenecks.

The CII suggested that the Indian economy has to move fast on the next round of reforms by addressing constraints such as land acquisition, and the environment which delay investment in industry and infrastructure. Furthermore, the CII also mentioned that the government must carry out an initiative to encourage the FDI by easing the of investment caps and continue rollback of fuel and fertilizer subsidies.

(Source: the Economic Times, the Financial Express)

Skilled Shortage Delays Infra Projects
In fearing that the cost and time over-runs in proposed trillion dollars infrastructure investment would be "a drag on economy", a government-commissioned study revealed that shortage of skilled project managers delays the infrastructure projects worth millions of rupees.

There are as much as 80% of developers unable to find skilled managers to execute projects on the ground, according to study. 91% of all transport, logistics and energy projects faced delays due to land acquisition problems and the lack of clarity on settlement and rehabilitation issues.

The report has recommended creation of project management offices at the central, state, and implementing agency level. It has found that India needs 400,000 new qualified managers every year till 2022, and a radical overhaul of vocational education to achieve its infrastructure dreams. However, these notes have now been distributed and shared with all sector ministries and the Planning Commission.

Mr. Raj Kalady, management director of Project Management Institute (India), who carried out the study, said that "India is a risk-ignorant country and most developers jump into execution of projects without understanding the challenges involved."

(Source: the Economic Times)

Economic Section
Royal Thai Embassy