สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 29 กรกฎาคม 2556

Kochi emerging as a petrochemical hub
Kochi is slowly emerging as a major hub for petrochemical industry in India. At the core of this development is the Rs. 14,000-crore integrated refinery expansion project (IREP) of the BPCL Kochi refinery, which is ramping up its capacity to 15 mmtpa from 9.5 mmtpa (million metric tonnes per annum).

Other projects in the pipeline include the Rs. 8,000-crore petrochemical complex-cum-park of the Kerala State Industrial Development Corporation (KSIDC). It is expected that the ancillary units to be set up in the 500-acre petrochemical park will attract huge investments, taking the total investment to over Rs. 30,000 crore and making Kochi a petrochemical manufacturing centre. Several companies have already shown interest in setting up units in the park.

Murali Madhavan, deputy general manager, BPCL, said the estimated investment of Rs 22,000 crore in IREP and the new petrochemical complex was the single largest investment in the state. It would trigger socio-economic development in the area and also benefit the state government in terms of tax revenue.

There would be business opportunities in support services, logistic and outsourcing. Production of about 1.3 mmtpa of petcoke would benefit Kerala-based PSUs - Kerala Minerals and Metals Limited and Travancore Cements, which at present are importing petcoke. Production of additional sulphur would benefit FACT and Travancore Titanium Limited. "A petcoke-based power plant is also in the pipeline," he said.

(Source: Business Standard)

Industry-PM meets today for trade barriers
Captains of Indian industry are to discuss some major issues hampering business growth and of the economy at large with Prime Minister Manmohan Singh on Monday. Those scheduled to be present are N R Narayana Murthy, Adi Godrej, Chanda Kochhar, Sunil Bharti Mittal, Deepak Parekh, Rahul Bajaj, S Gopalakrishnan and Naina Lal Kidwai, among others.

According to an industry representative," Depreciation of the rupee has affected all sectors across the board. This will be one of the main issues. Besides, industry will also take up other major concern areas such as a complete collapse of investment and a failed manufacturing policy." There is also a widening current account deficit (CAD). It was $87.8 billion or 4.8% of gross domestic product (GDP) in 2012-13, against $78.2 bn or 4.2 per cent of GDP in the previous year.

Some other issues likely to come up at the PM's meet are skill development and the proposed Delhi-Mumbai and Chennai-Bangalore industrial corridors.

(Source: Business Standard, the Economic Times, the Financial Express)

We are trying to develop the rural markets
Kenichi Ayukawa a veteran at Suzuki Motor Corporation, has assumed charge at the Indian subsidiary at a time when vehicle sales have hit a decade-low mark. The recently anointed MD and CEO tells Sharmistha Mukherjee and N Sundaresha Subramanian, how he intends to extend the company's reach and realize the dream of his predecessor by attaining over 50% share in the domestic market over the next few years. Maruti Suzuki would also play a larger role in the parent's global operations as it takes charge of production and marketing of vehicles for developing markets under Ayukawa's leadership.

Because the automobile industry is at a decade low mark, Ayukawa said, "We have to review the system. As long as you have good products, consumers buy them but now the sentiment has changed. We have to persuade the customers to make purchases. How we approach the customers has become important. We are trying to develop the rural markets. We are reaching out to newer areas by including our dealers in the process. We conducted events in rural areas, small towns. The events helped a lot in encouraging demand. We allowed people to touch, feel and drive our products. Such things encourage demand."
(Source: the Economic Times, Business Standard, the Financial Express)

India still second fastest growing economy: P. Chidambaram
Finance Minister P Chidambaram on Saturday said people should not be worried about the current slow down and expressed hope of achieving 6% growth this fiscal, noting that India continued to be the second fastest growing economy in the world after China.

He said at a bank function that people should remember India continues to be the second fastest growing economy after China. Even China's growth which was at 10% has come down to 7% now, while India's growth has slid to 5% from 9%. Economic slowdown is there in all the countries. When there is slow growth rate in the world, India cannot remain unaffected. Chidambaram said even European countries had been affected by the economic slow down.

Many countries including Mexico, Brazil were behind India. By expressing hope that the country's growth would touch 6% this year, he said, "People should be confident...self confident and take bank loan to invest in farm sector, small industries, housing etc. You should hope for bright tomorrow, and not worry about the slow down."

(Source: the Financial Express)

MSMEs Ministry in favour of raising investment cap for SMEs
Micro, Small and Medium Enterprises (MSMEs) Minister K H Muniyappa is in favour of increasing the investment cap to $ 2 million in small and medium units, from which global retailers have to source 30% of items under the multi-brand retail policy.

As per the current FDI policy, multi-brand retailers must procure 30% of their products mandatorily from small and medium enterprises (SMEs) with an investment in plant and machinery not exceeding $ 1 million. This will help the units' growth, according to the miniter.

The Department of Industrial Policy and Promotion, in a draft Cabinet note, had proposed increasing the investment cap to $ 2 million. It had also said that multi-brand retailers should continue sourcing items from SMEs without a time cap even after they cross the investment limit and can no longer be considered small and medium.

However, the MSME ministry said there must be a time limit for the retailers to continue sourcing from units that have grown beyond the investment limit. It stated that "a three-year period from the day an MSME outgrows the investment limit of $ 2 million would provide required space to equip itself to independently supply the retailer without being covered under the 30% procurement."

Retail giants such as Walmart, Tesco, and Carrefour have asked the government to relax the mandatory sourcing condition and instead make it a 'preferable' requirement, as in the case of single-brand retailing. But the Ministry is not in favour of diluting this norm. "Not preferable, it is a must. We are proposing it (30% mandatory sourcing) should be a must," Muniyappa has said.

(Source: the Economic Times)

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