สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 9 กรกฎาคม 2556

Wal-Mart's first outlet in 2016 likely
Wal-Mart's India expansion is stalled. When India announced last September that it would allow foreign supermarket chains to take majority ownership of their local operations, it marked a victory for Wal-Mart Stores, which had spearheaded efforts to open the market and said its first retail store would be open within two years.

The foreign supermarket set-ups could have been stored much earlier but the uncertainties of regulations prevent global supermarket chains to apply for entry to India. Wal-Mart also faced sort of problems. Not only there is a slight possibility that its Indian partner-Bharti Enterprise-is looking for exit the tie-up, Wal-Mart is also being investigated for breaking entry rules and bribery, according to a source. However, Wal-Mart insists that it has followed the guidelines of India's foreign direct investment thoroughly. And it is going to open up it outlet in this exciting Indian retail milieu.

(Source: the Financial Express, the Economic Times)

Falling Rupee makes India a hot tourist spot
Amid the rupee plunging that touches 61 marks against US dollar, many tourists all over the world are storming into India. The country has now become one of hot tourist destinations. There are 15% increase bookings for this winter and about 10-15% more charter aircrafts are expected to arrive in India, according to a tourist agency.

Besides the abovementioned, the unrest in ones of the world's popular places such as Egypt and Turkey also prompted tourists to change their plans heading to India. This pushed up hotel occupancies in Goa and Kerala by 20% compared to last year. Most of tourists are coming from Russia, Ukraine, Poland, Hungary, and Eastern European countries. However, many tourist agencies recommended that the Indian government needs to launch focused advertisement and promotion. Also the India's visa issue requires attention.

(Source: the Economic Times)

FDI norms to impact Multi-brand franchising
India may needs franchising set-ups valued at $36 billion by 2017 but the segment could be hurt by the government's recent move to allow foreign company to open only company-owned and operated multi-brand stores, says KPMG report.

KPMG's report on Franchising Industry in India 2013 says that the recent clarifications issued by the Indian government on FDI regulations in multi-brand retail allowing foreign retailers to open only company-owned and company-operated outlets could be a big blow to growth in retail franchising in India. Over 43,000 franchisee establishments valued at $36 billion may be required by 2017 to meet the glowing demand in the retail sector from the current base of 13,000 valued at $10.6billion.

(Source: the Financial Express)

Ministries favour no FDI hike in Multi-brand retail but push for local sourcing
On July 8, 2013, yesterday, the consumer affairs and micro, small and medium enterprises ministries (MSMEs) have pushed for more flexibility in local sourcing clauses instead of hiking the FDI cap to 74% in multi-brand retail.

In order to comply with the 30% mandatory sourcing requirement from the MSMEs, foreign investors in multi-brand retail should be allowed to source from it even though the MSMEs loses its tag after growing from its present size. Nevertheless, both the ministries along with commerce ministry further opposed the Marayam committee's proposal to increase the FDI cap in multi-brand retail from 51% to 74%. The source said, the MSME and the consumer affairs ministries want more safeguards in local sourcing norms for multi-brand retailers.

(Source: the Financial Express, the Economic Times)

PM to meet industry heads for Rupee slide and CAD
A government statement on Monday says that the Indian Prime Minister is to meet leaders and heads of various firms on 29 July to discuss possible way to reverse the rupee's slide, India's bloated current account deficit, and reboot the economy.

Besides, Dr. Singh will also pick up the matters as how to accelerate skill development, the development of Delhi-Mumbai Industrial Corridor, Chennai-Bangalore Industrial Corridor and Amritsar-Kolkata Industrial Corridor. However, the statement did not mention the name of any leaders. But it is assumed that the representatives from industry bodies such as FCCI, ASSOCHAM and CII will also join.

(Source: the Financial Express)

Govt to limit public-private JVs in mining sector
The government is set to consider a proposal to put restrictions on public-private joint ventures (JVs) for developing mineral blocks, particularly coal mines, allocated to state run corporations and PSUs under a special dispensation. The idea is to limit all future public-private arrangements in the sector to private firms acting as a mine developer & operator (MDO) on behalf of state-run corporations, without any ownership rights. A top official said, "We will see how the regulations shape up. Already the MDO model is gaining popularity and if need be, some existing joint venture operations would be restructured."

(Source: the Financial Express)

Economic Section
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