สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 13 สิงหาคม 2556

IKEA to open Retail Stores in 4 States
Swedish retail major IKEA Group has identified four states to set up single-brand retail stores as part of its Rs. 10,500-crore investment in India. Theses states are: Haryana, Andhra Pradesh, Maharashtra, and Karnataka.

The firm has incorporated its Indian subsidiary as IKEA India Ltd. The company would enhance its sourcing from India and would collaborate with handicraft and handloom sector and also collaborate with the National Institute of Design for its products.

The firm had proposed setting up 10 furnishing and homeware stores as well as allied infrastructure in India over the next 10 years. In the second phase, the company plans to open 15 more stores. IKEA has been allowed to run cafes and restaurants within its single brand stores in India, but it cannot sell packed food items. It can sell food and beverages at its restaurants/cafes located within its stores.

(Source: the Economic Times, the Financial Express)

Exports rise 11.6% in July
Exports grew by 11.64% to $25.83 billion in July, snapping two consecutive months of decline, on the back of demand from Africa, ASEAN and Far East regions.

Imports also declined by 6.2% to $38.1 billion during the month, leaving a trade deficit of $12.2 billion. Trade deficit was at $17.47 billion in July last year. Gold and silver imports stood at $2.9 billion in July, down from $4.4 billion in the same period last year.

Commerce Secretary S R Rao said exports to regions like Africa, ASEAN and Far East are helping the country's shipments to grow. During April-July this fiscal, exports grew by 1.72% to $98.2 billion. Imports too increased by 2.82% to $160.7 billion during the period. Trade deficit during the first four months of this fiscal stood at $62.4 billion. Oil imports in July declined by 8% to $12.7 billion and during April-July period it grew by 2.65% to $54.5 billion, source said.

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

SEZs norms made easier
In a move to promote investments in special economic zones (SEZs), the department of commerce on Monday notified amendments to the SEZ rules and relaxed the norms for setting up units in these zones.

As per the amendments, multi-services special economic zones will be treated on par with single-product SEZs, with the minimum area being slashed to half from 100 hectare. This will allow multi-product SEZ developers with a minimum land requirement of 500 hectare to set up multi-services SEZ on an additional 50 hectare of land. Addition of land to an existing SEZ which contains port or a manufacturing unit will not be eligible for any duty benefits but any addition to these structures after their inclusion in an SEZ will be eligible for fiscal benefits.

The exit route has also been simplified with the rules allowing the unit to exit the SEZ by transferring its assets and liabilities to another by transfer of ownership or sale of the SEZ. A multi-product SEZ must have a contiguous area of 500 hectares instead of the 1,000 mandated earlier, while that for a specific sector or for one or more services or in a port or airport, shall have a contiguous area of 50 hectares or more.

(Source: the Financial Express, the Economic Times)

India-Kuwait bilateral trade over $17 billion
Satish C Mehta, Indian ambassador to Kuwait pointed to trade between the two nations that has exceeded $17.63 billion last year. Ambassador said both countries believe that more is possible in every dimension of the relationship as the two nations have had close and friendly political, economic and trade, cultural, and people-to-people linkages.

In a message released on the occasion of upcoming Independence Day, Mehta said infrastructure is the backbone of India's economic development and in the last five-year plan, which ended on March 31, 2012, India, invested about $ 500 billion in infrastructure.

"In the current five-year plan (2012-17) we aim to invest $ 1 trillion in infrastructure alone. New roads, railway lines, ports, airports, metros and power plants are springing up all over the country to support a renaissance in manufacturing," Mehta said. Kuwaiti investments in India are in excess of $ 2.5 billion, he said.

(Source: the Economic Times)

Govt increase imports duty on gold and luxury goods
The government is looking at increasing the import duty on gold and on non-essential, or luxury, commodities to reduce the current account deficit (CAD), Finance Minister P Chidambaram said on Monday.

The government would also allow public sector financial institutions to raise dollars through quasi-sovereign bonds. For the first time, Indian subsidiaries of multinational companies would be allowed to raise funds from their parents through a relaxed external commercial borrowing (ECB) window. Public sector oil companies would also be allowed to raise funds via ECB. The Customs notifications on import duty will be placed in Parliament on Tuesday, he said. The import duty on gold now is 8%.

The minister announced these proposals to keep the CAD at a three-year low of 3.7% of gross domestic product (GDP) in 2013-14, bolstered by the lower trade deficit of June and July. "If the CAD is contained at $70 billion, it will amount to 3.7% of GDP," Chidambaram said in a statement in the Lok Sabha.

(Source: Business Standard)

Car sales continue to slide down
With car sales in India falling for a record 9th month in a row in July posting a 7.4% decline and that of heavy and medium commercial vehicles dipping for 17th month in succession, industry body Society of Indian Automobile Manufacturers (Siam) on Monday said the auto sector had started retrenching temporary workers.

Siam Director General Vishnu Mathur said in the wake of the continuous decline in automobile sales, Siam had sought a stimulus package, including reduction in excise duty, fleet modernization and an end to a ban on new government vehicle purchase that has been on since May last year.

(Source: Business Standard, the Financial Express)

VLCC buys 80% in GVig of Singapore for Rs.180 Cr
Wellness products and slimming services company VLCC said it has bought 80% stake in Singapore-based high-end personal care, dermatology products and cosmetics maker Global Vantage Innovative Group (GVig) in an effort to expand its global footprint.

While VICC Group chairman Mukesh Luthra refused comment on the size of the deal, two people aware of the development pegged the transaction between Rs. 175 crore and Rs. 180 crore. Luthra, however, said the acquisition was funded through internal accruals. VLCC plans to acquire the remaining 20% stake in GVig, held in the form of sweat equity by some individuals, by next year, Luthra said. He said his company is also working towards bringing skin, hair and body-care brands owned by the Singaporean firm, such as BelleWave and SkinMTX, to India by as early as next month.

VLCC, which closed 2012-13 with a turnover of over Rs. 700 crore, is targeting Rs 1,000 crore in two years. It operates through 300 locations across 121 cities in 16 countries. Its cosmetics and wellness products sell at over 80,000 retail outlets.

(Source: the Economic Times)

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