สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 5 สิงหาคม 2556

Govt looking at alternative resources for investment
The Centre is working on creating more attractive instruments to provide alternative resources of investment for people than gold and housing, said Raghuram G Rajan chief economic advisor with the Ministry of Finance, Government of India.

Rajan also said there are many opportunities in India compared to longer term investments of 3 to 10 years, and once things start to roll properly, a lot of things the country sees as problems would be taken care of. The government started with inflation index bonds and there are equity-linked deposits which a number of banks are now peddling, not just with some minimum floor of return, but also with some potential upside. He added that there would not be any decrease in the import of gold as an ornament, in fact, over time presumably people get richer and the country would import more gold.

Furthermore, India does not have to follow the conventional path of growth, from agriculture economy to low-skilled manufacturing, then to high-tech manufacturing and finally to service. He added that the country could look at focusing more on service sector for its growth, but should look at increasing quality. To increase quality, there should be quality education system, including quality higher education, quality teachers training schools and quality research institutions, he added.

(Source: Business Standard)

AP seek state's help to promote tourism
The tourism departments of both Adhra Pradesh and Karnataka have signed a MoU for cross promotion of tourism in both states during the visit of Chandana Khan, special chief secretary (tourism) of government of Andhra Pradesh, to Bangalore at the weekend. She was inBangalore to discuss measures to enhance tourism in both states.

The MoU will facilitate easier booking of train tickets and hotel bookings to various destinations in Andhra Pradesh. In addition, there will also be a 50% discount on these bookings. According to the officials, this will be a win-win situation as it will help increase tourist traffic in both states.

During her discussion with C D Dyavaiah, managing director of Karnataka Tourism Development Corporation, she also discussed the possibility of extending Karnataka's luxury train Golden Chariot into select places in Andhra Pradesh. Significantly, the Andhra Pradesh government is focusing on the development of new and unexplored destinations, and generating tourists in addition to the already popular destinations such as the temple town of Tirupati and the megapolis of Hyderabad.

AP Tourism, with the intention to promote tourism, has drawn up a campaign to attract more visitors and induce them to explore new tourist locations across the state. Besides upgrading infrastructure, the corporation is promoting awareness about its attractive tourist locations by marketing and promotional activities within the state and at the national level. Developing coastal areas and beach properties is integral to this plan.

(Source: Business Standard)

Manufacturers expect higher production in Q2: Ficci survey
With the government taking number of reform measures, manufacturers expect higher production in the second quarter (July-September) of FY14, according to the Quarterly Survey on Manufacturing Sector by the Federation of Indian Chambers of Commerce and Industry (Ficci).

40% of the respondents expect production to rise in the 2nd quarter against 37% in the previous quarter and 44% in the second quarter of FY13. The Ficci survey, which covered 276 units, also revealed that those expecting a fall in their production decreased to 16% in the 2nd quarter from 26% in the 1st quarter. The survey showed there could be a visible growth in textiles, cement and leather sectors in the 2nd quarter.

If the results of the survey translate into reality, it will give a breather to the government which is trying hard to put the economy on track.

(Source: Business Standard)

Investors in tax haven may have to share info with CBDT
The Central Board of Direct Taxes (CBDT) recently notified rules under which an entity based in a "notified jurisdictional area" will have to give an undertaking to share information in a prescribed format. CBDT, however, is yet to specify the jurisdictions in which the provisions are applicable.

"This is a tacit warning from the government to taxpayers to keep away from transacting with such jurisdictions (perceived tax havens); else they should be ready to be burdened with onerous requirements," said tax consultancy firm KPMG.

As per Form 10 FC, which was notified in pursuance of anti-avoidance measures introduced in the Finance Bill 2011, "Tax authorities will be able to get more information and records relating to the transactions entered into," said KPMG (India) head of transfer pricing Rohan Phatarphekar. Implementation of the provision "could potentially result in some countries being 'blacklisted' to send out signals to other foreign jurisdictions," he said.

(Source: the Financial Express)

All imported telecom products to be scanned for bugs from 1st October
The government plans to test all imported mobile phones, SIM cards, 3G & 4G base stations, customer database servers, among other core network devices for bugs and malicious software before they are used in Indian telephone networks.

According to an internal telecom department note, the telecom department in consultation with software firm Wipro, has identified 25 telecom products that will be screened at an authorized test lab in India. 12 of these items have been classified "high risk items", which need to be "security checked" from October 1.

If implemented, all mobile phone companies operating on the GSM or CDMA platforms could be barred from using any imported telecom gear, post-October 1, that is not deemed "safe" by the proposed test lab.

(Source: the Economic Times)

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