สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 8 สิงหาคม 2556

Fingerprint for new SIM on the cards
The Department of Telecom (DoT) is examining a proposal for making it compulsory for mobile operator to take fingerprint or any other biometric feature of the subscriber at the time of receiving application for a new mobile connection.

Minister of state for communications and IT Milind Deora said DoT has recently received a suggestion from the ministry of home affairs that a central database bne maintained by DoT of all subscribers.

(Source: the Financial Express)

Home min against higher FDI in media
In the view of concerns expressed by the Home Ministry, the government has not liberalized FDI regime in print and electronic media yet.

The government, on Wednesday, was informed that the Ministry Home Affairs is not in agreement with liberalizing the FDI cabs or entry routes in print and electronic media on account of it being a sensitive sector.

(Source: the Financial Express)

New CBI governor Rajan pulling India out of crisis
The appointment of Raghuram Rajan as the 23rd governor of the Reserve Bank of India will help the country's economy to pull out from the current economic slowdown and also bring better coordination between the central bank and the North Block, feel analysts. Rajan, who is currently the chief economic advisor at the Ministry of Finance, will succeed current governor D Subbarao, whose term gets over on September 4, 2013.

"His (Rajan's) experience at the Finance Ministry should enable better co-ordination between the RBI and the government," said Sonal Varma, economist at Nomura Financial Advisory and Securities.
Varma feels that Rajan's knowledge of the financial sector; global economy and emerging markets should be of great advantage to the country at this time of difficulty. Rajan, the former chief economist at International Monetary Fund (IMF), is considered as one of the first to have predicted the 2008 financial crisis three years before its coming.

(Source: the Economic Times, the Financial Express)

RBI fines SBI Rs.5.6 lakh for violation of norms
The Reserve Bank of India on Wednesday said it imposed a fine of about Rs. 5.6 lakh on State Bank ofIndia for violation of currency chest norms.

"The Reserve Bank of India has imposed a penalty of Rs. 562,555 on July 12, 2013 on SBI for violation of the terms of agreement with RBI for opening and maintaining currency chests," the central bank said in a statement.

The penalty was levied in connection with deficiencies and lapses in the operation and maintenance of the currency chest at the Secunderabad branch of SBI, it said. Last month, the RBI had imposed a penalty of Rs. 3 crore on SBI for violating Know Your Customer (KYC)/anti-money laundering norms.
The penal action by RBI was taken after an online portal alleged violation of KYC norms and money laundering by banks and financial institutions.

(Source: the Economic Times, the Financial Express)

Oilmeal exports declined 37% in July: SEA
Oilmeals exports declined by 37% to 1,77,011 tonnes in July as domestic prices were higher than the rates prevailing in South-East Asian nations, says industry body Solvent Extractors Association (SEA) of India. The country had shipped 282,703 tonnes of oilmeal, used as animal feed, in the same month last year, it said.

"Our exports have fallen because our commodity is overpriced in South-Eastern nations. China is also giving a tough competition," the Mumbai-based association's executive director BV Mehta said.
Releasing the export data, Mehta said the price disparity of Indian oilmeal with other countries has affected shipments. Out of the total oilmeal exports in July, the country has exported maximum of 107,038 tonnes of soyabean meal, followed by 40,902 tonnes of rapesead meal, 25,171 tonnes of castor seed meal and 3,900 tonnes of ricebran extraction, it said.

During the April-July period of this fiscal, the country's oilmeal exports dipped by 24% to 1,027,962 tonnes, as against 1,356,737 tonnes in the same period, corresponding year. Major export destinations for oilmeal are South Korea, Iran, Thailand, Vietnam, Indonesia and Japan.

(Source: the Financial Express)

Floor and ceiling rates suggested for GST
Parliament's standing committee on finance has suggested a floor rate and ceiling in the proposed Goods and Services Tax (GST) and making it optional for states to introduce indirect tax reforms. This will lead to multiple tax rates in GST, while the government's original intent was to have a uniform rate across the country. "Taking into account the need for state autonomy, the states may thus be allowed to increase their GST rate within a narrow band," the panel said in its recommendations on the Constitution (115th Amendment) Bill, 2011.
The committee also recommended that decisions in the GST Council be taken by voting and not by consensus. It said one-third weightage for central representatives and two-third weightage for state representatives may be provided, with the decision taken by the Council being passed with more than three-fourth votes of the representatives present. The quorum for holding meetings of the Council is proposed to be raised to half from one-third. It recommended that sections proposing a Dispute Settlement Authority to decide disputes arising among states and take action against the states should be removed from the Bill, tabled in Parliament in March 2011, and that the GST Council itself should evolve a mechanism to resolve the disputes.

The panel, headed by Bharatiya Janata Party (BJP) leader Yashwant Sinha, also suggested subsuming entry tax in GST, a simpler model suggested by the 13th Finance Commission Task Force, instead of the IGST (Inter-State Goods and Service Tax) model for inter-state movement of goods, and giving powers to states to levy tax in the event of a natural calamity among other things. It is of the view that the states should be given enough fiscal space if the success of Value-Added Tax (VAT) is to be replicated. VAT was also optional for states at the time of introduction, but gradually all states adopted it.

To address concerns of the states on revenue loss in the GST regime, the panel recommended an automatic compensation mechanism wherein a fund may be created under the GST Council. It also said exclusion of specified goods from GST should not be provided in the Constitution itself and instead, the GST Council should decide on it.

(Source: Business Standard, the Financial Express)

Govt may reimpose curbs on royalty payments to foreigners
India could reimpose restrictions on royalty payments to foreigners for transfer of technology and brand fees after a sudden surge in outflows after the limits on such payments were revised in 2009.

About $4.4 billion went out of India as royalty payments in 2012-13, nearly 20% of the $22.4 billion inforeign direct investment (FDI) received by the country in the year. "It a great concern.... We are assessing the situation. It needs a close watch especially in cases where there is no transfer of technology," a senior DIPP official said.

Most multinationals have increased the rate of royalty payments after the government liberalized the policy.

(Source: the Economic Times)

Entrepreneurs-led economic growth is more inclusive: CM
Karnataka Chief Minister Siddara Maiah said that entrepreneurship-led economic growth is more inclusive, so the government will surely support to put in place policy measures for promotion of growth of industry and attracting early stage investments.

"Entrepreneurship tends to be innovation driven and will help generate solutions to several problems such as high-quality education, affordable health care, clean energy and waste management. Entrepreneurship-led economic growth is more inclusive and therefore is welcome," Siddaramaiah said addressing the ninth Indiainnovation summit 2013, here. Stating that entrepreneurial growth can be accelerated by providing an enabling regulatory environment, ensuring adequate capital flow, he said "In this context, promotion of early-stage investments and attracting angel investors, ventures, seed funds and impact investors through development of appropriate policy measures and fiscal incentives becomes important." "I would like to assure that our Government extends its whole-hearted support to put in place policy measures for promotion of growth of industry and attracting early stage investments," he added.

(Source: Business Standard)

Economic Section
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