สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 14 สิงหาคม 2556

M&M to invest 10,000-crore over 3 years; to set up new plant
Utility vehicles leader Mahindra & Mahindra Ltd (M&M) on Tuesday said it will invest Rs. 10,000 crore in the next three years and part of the amount will go into setting up a new auto plant.

"We are bullish about our future and will continue on our path of investing in that future. We are planning Rs. 10,000 crore investment in the next three years, including a new auto plant," M&M Chairman and Managing Director Anand Mahindra told shareholders at the company's 67th annual general meeting (AGM).

He gave no details about the proposed facility. "Our past experience suggests this will pay dividends. In 2008, when the economy was slowing down, M&M was one of the few companies that continued to invest; and that investment is one of the major reasons why we significantly outperformed the industry over the last two financial years. And today as well, despite the difficult situation, we will continue along our investment path, not only in capacity building but also in R&D," Mahindra said.

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

Gold, silver duty hiked to curb CAD
Customs duty on gold, silver and platinum have been hiked to 10% yesterday in third revision this year in a bid to curb the surging imports and burgeoning current account deficit (CAD), a decision that will also rake in an additional Rs. 4,830 crore to the exchequer.

While the duty on gold and platinum was raised from 8% to 10%, the levy on silver was hiked by 4%, according to the notifications tabled in Parliament by Finance Minister P Chidambaram.

Furthermore, Revenue Secretary Sumit Bose said that government was still working on the proposed hike in import duties on non-essential goods, an indication of which was given by Chidambaram yesterday. He said the basic purpose of enhancing the duty was to curb the import of the precious metals to check the Current Account Deficit (CAD) and not to raise money.

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

MEA asks CIM to review FTAs, delay talks
The Ministry of External Affairs (MEA) had asked the Ministry of Commerce and Industry to review some of the key free trade agreements (FTAs) that India signed with Singapore, Japan, South Korea and the Association of Southeast Asian Nations (Asean), sources said, as India had failed to achieve the main objective of leveraging the services sector.

The MEA has also urged the commerce ministry to slow the pace of its negotiations for similar deals with Thailand, New Zealand and Canada, among others. Ironically, it was the MEA which had spearheaded the signing of FTAs in an effort to promote economic diplomacy. India signed a number of agreements after talks for a global trade deal under the Doha Round failed to make any headway. Also, India had always been keen to gain greater market access for its professionals in the services sectors of various countries. This is because with India's stagnating manufacturing sector, it was not able to gain competitiveness in the export of high-end products.

However, in an effort to get more access under services trade in terms of greater movement of professionals such as doctors, nurses, accountants and teachers, India has received some "odd demands from other countries," according to a senior MEA official. For example, under the proposed FTA with Thailand, it has demanded the opening of massage parlours and spas here because that is the country's main revenue earner. This has turned out to be one of the main stumbling blocks in the negotiations.

(Source: Business Standard)

Purchasing power increases more in urban area
Statistics Minister Srikant Jena said in a written reply to the Lok Sabha on Tuesday that the monthly per capita expenditure (MPCE), which reflects purchasing power, has increased more in urban areas than in rural areas.

Jena was replying to a question whether government is aware that purchasing power and spending habits of people are increasing in rural areas and towns more than in metro cities. The minister's statement revealed that MPCE in rural areas grew by 349.9% to 1,287.17 in 2011-12 from Rs. 286.10 in 1993-94 at current prices. Similarly, it rose by 36.52% in villages to 221.93 in 2011-12 compared to Rs. 162.56 in 1993-94 at constant prices. Whereas, the MPCE in urban areas increased by 433.50% to Rs. 2,477.02 in 2011-12 from Rs. 464.30 in 1993-94 at current price. It went up by 54.08% to Rs. 413.53 in cities in 2011-12 from Rs. 268.38 in 1993-94.

Elaborating further the minister said, "The changes in spending habits by people are attributable to change in life style, food habits, health consciousness due to increase in income levels of people because of different government programmes taken up from time to time." According to Jena, the per capita income grew by 13.7% in 2011-12, 17.1% in 2010-11 and 13.4% in 2009-10.

(Source: the Economic Times, the Financial Express)

Decks cleared for Rs. 5,500-crore FDI boost to Brownfield pharma projects
Decks have been cleared for the approval of Rs. 5,500-crore worth foreign direct investment (FDI) proposals in brownfield pharmaceutical projects involving transfer of control, ending a policy logjam.

Finance minister P Chidambaram and commerce minister Anand Sharma are expected to hold a meeting with Prime Minister Manmohan Singh to discuss issues related to foreign investment in Indian companies making critical life-saving drugs and finalize the policy within a week.

Earlier, Sharma and the department of industrial policy and promotion (DIPP) argued that allowing multinationals to takeover domestic drug firms would deny Indians' access to affordable medicines.

US drug major Mylan Inc's Rs. 5,168-crore takeover of Agila Specialties, the injectable division of Bangalore-headquartered Strides Arcolab, is one of the main proposals to be kept "on hold" for over five months due to the commerce ministry's objections. Another proposal by Indore based-Symbiotec Pharmalab to sell 25% stake to private equity fund Actis for around Rs. 330 crore has also been put "in abeyance till DIPP finalizes policy on FDI in brownfield pharma projects involving transfer of control.

(Source: the Financial Express)

Govt allocate Rs. 8,060-crore to set up 3.39 lakh projects
The government on Tuesday said it has approved an outlay of Rs. 8,060 crore, under Prime Minister's Employment Generation Programme (PMEGP), to set up 3.39 lakh projects which would create about 27.12 lakh jobs.

"An outlay of Rs 8,060 crore has been approved for PMEGP in the 12th Plan to set up 3.39 lakh projects which would create around 27.12 lakh employment," Minister of State (Independent Charge) for Micro, Small and Medium Enterprises K H Muniyappa said in a written reply to the Rajya Sabha.

Under the PMEGP, urban and rural entrepreneurs in the general category can avail a subsidy of 15% and 25% on the project cost. In the case of weaker sections of society, a 25% and 35% subsidy is provided to urban and rural businessmen.

(Source: the Economic Times)

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