สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 6 สิงหาคม 2556

FDI into India rises 24% to $3.95 Billion in April-May
Foreign Direct Investment (FDI) into India increased by 24.2% year-on-year to $3.95 billion in April-May.

According to the data from the Department of Industrial Policy and Promotion (DIPP), India has received $3.18 billion of FDI in April-May 2012. FDI inflows have a positive impact by supplementing domestic capital, technology and skills of existing companies as well as through establishment of new companies, Commerce and Industry Minister Anand Sharma said in a written reply to Lok Sabha. Regarding the FDI in aviation, the minister said that the investment by foreign airlines has been allowed only upto 49% and on the government approval route.

India attracted $22.42 billion of FDI in 2012-13 compared with $35.12 billion in the previous fiscal year.

(Source: the Economic Times)

Service Sector falls to lowest since 2009
According to HSBC Markit Services Purchasing Manager's Index released on Monday, India's services sector activity slumped to its lowest in more than four years in July raising fresh concerns for an economy already battling industrial slowdown and decade-low growth.

The HSBC Services Business Activity Index fell to 47.9 in July from 51.7 in the previous month, the lowest reading since April 2009. A figure below 50 indicates contraction in activity, and this is the first time services output in the country has contracted since October 2011. HSBC's index for measuring manufacturing activity, released last week, was at 50.1 in July. With the HSBC Composite Index at 48.4, it suggests an overall contraction in the output of manufacturing and services companies in the country in July.

Traditionally, the services sector in India has grown at a faster rate than the overall gross domestic product (GDP). "Industry is concerned that the services sector, which has been a growth engine of the economy, will lose steam in alignment with the manufacturing sector," said Chandrajit Banerjee, director-general, CII. Likewise, economists said the slowdown in the services sector would offset the benefits of a good monsoon-led agriculture growth.

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

Govt investigating 154 companies for financial fraud
The Ministry of Corporate Affairs (MCA) said on Monday that various government agencies, including those with the state governments, are looking into complaints of financial fraud against 154 companies, including the group companies of Saradha and Rose Valley in West Bengal.

Informing Parliament, the MCA gave a list of 154 companies, including 14 entities related to Rose Valley Group and 10 belonging to the Saradha Group. Other entities mentioned in the list include Vaishnavi Corporate Communication, Speak Asia, Reebok India, and Alchemist Infra among others."Complaints have been received against 154 companies/organizations during the last three years," MCA minister Sachin Pilot said in a written reply to the Rajya Sabha. Pilot said his ministry has ordered a probe of balance sheets and other documents in these cases. "Some cases have been referred to the Economic Offences Wing of the state government concerned for further investigation," he added.

As per a list provided by the corporate affairs minister in Parliament, complaints of financial fraud have been received against 10 Saradha Group entities such as Saradha Realty, Saradha Agro Development, Saradha Exports and Saradha Garden Resorts & Hotel.

(Source: the Financial Express)

NGT bans sand mining across the country
The National green Tribunal on Monday banned mining or removal of sand from river beds across the country without an environmental clearance, amid the uproar over the suspension of an Indian Administrative Service officer, Durga Shakti Nagpal, who had cracked down on the sand mafia in Uttar Pradesh.

The tribunal noted the loss caused to the state due to illegal sand mining could run into lakhs of crores. The order was given on a plea alleging that such activities were going on in UP with the "willful connivance" of its state machinery. Widening the ambit of the plea, a bench headed by Chairperson Swatanter Kumar said its order would be applicable across the nation, as the petition had raised substantial environmental issues.

Initially, the bench banned illegal sand mining on the beds and banks of Yamuna, Ganges, Hindon, Chambal and Gomti, among others but later modified its order saying illegal removing of sand had nationwide implications. The bench said the clearance had to be obtained from the ministry of environment and forests or State Environment Impact Assessment Authority. The tribunal also directed all mining and police officers concerned of all states to ensure compliance of its orders, on the plea filed by the National Green Tribunal Bar Association.

(Source: Business Standard)

Mumbai's 22-km trans-harbour project finds no takers
Mumbai's wait for its showpiece infrastructure project just got longer after private companies stayed away from participating in the tender to build the Rs. 10,000-crore, 22-km trans-harbour link.

The project did not receive any submissions when bids closed on Monday. Five consortia-led by Tata Realty, IRB Infrastructure, GMR, Srei Infra, and Gammon India -were shortlisted for the project, but all of them stayed away from bidding, citing lack of clarity over the project's financial viability. A top executive at one of the companies said their decision was driven by worries over viability as the economy turns sour amidst expectations of high interest rates. He added that the government had not given the companies any comfort on the financial viability.

(Source: the Economic Times)

India to oppose facilitation steps by developed nations
India will strongly object to trade facilitation measures proposed by the developed countries that will be debated by the World Trade Organisation ministerial meeting in Bali in December.

New Delhi will argue that guised as measures to cut inefficiencies in trade, actually these will take away the emerging economies freedom to revise tariffs should they face import surges and also impose heavy costs on them.

The measures are aimed at making international trade efficient by cutting delays at borders, high fees, cumbersome procedures and non-standardized rules. The developing countries, including India, fear these measures could lead to revenue outgo and also burden countries with enhanced funding requirement for building infrastructure.

(Source: the Economic Times)

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