สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 3 กันยายน 2556

Govt cuts import tariff value of gold to USD 458/10 gm

The government today reduced the import tariff value of gold to USD 458 per 10 grams due to fall in its global prices. It also cut the import tariff value of silver to USD 783 per kg. Earlier, tariff value -- the base price on which the customs duty is determined to prevent under-invoicing of gold and silver stood at USD 461 per 10 grams and USD 803 per kg, respectively.The Central Board of Excise and Customs today issued the notification after gold prices extended losses for the fourth straight day today. The prices of yellow metal have touched the all time high of Rs 34,500 per 10 grams last week in the national capital.Prices of Gold today fell and closed at Rs 31,100 per 10 grams. However silver snapped three day of losses and rebounded by Rs 420 to Rs 54,350 per kg. However, gold prices have increased by about 8 per cent in August.

(Source: Financial Express)

Manufacturing shrinks in Aug, core sector growth picks up

Manufacturing activity contracted for the first time in August since the peak of the global financial crisis in March 2009, as indicated by the HSBC purchasing managers’ index (PMI). The contraction was more severe this time, shown by a reading of 48.5 on the index as against 49.5 then. Even sequentially, there was a drop following a reading of 50.1 in July. A reading of 50 or above indicates growth and below it contraction. The bad news on manufacturing comes closely after the country’s economic growth was announced to have fallen to a four-year low in the first quarter of 2013-14. Manufacturing activity declined as fresh orders, including from abroad, were not forthcoming, the survey showed.

(Source: Business Standard)

Food security bill: Salient features

The National Food Security Bill, 2013 passed by the parliament on Tuesday gives right to subsidised food grain to 67 percent of India's 1.2 billion people and provides for penalty for non-compliance by public servants. The bill's salient features include:

- Seventy five percent of rural and 50 percent of the urban population entitled to five kg foodgrains per month at Rs.3, Rs.2, Re.1 per kg for rice, wheat and coarse grains, respectively.

- The work of identification of eligible households has been left to the states.

- Pregnant women and lactating mothers entitled to nutritious meals and maternity benefit of at least Rs.6,000 for six months.

- The central government will provide funds to states in case of short supply of foodgrain.

- The current foodgrain allocation of the states will be protected by the central government.

- The state governments will provide food security allowance to the beneficiaries in case of non-supply of foodgrain.

- Public distribution system to be reformed.

- The eldest woman in the household, 18 years or above, will be the head of the household for the issue of the ration card.

- There will be state and district level redress mechanisms.

(Source: Economic Times)

BRICS agree on bank structure; progress difficult: Russia

The BRICS bloc of large, emerging economies has agreed on the structure of a proposed development bank with $50 billion in capital, but ironing out “difficult” details may take months, Russian deputy finance minister Sergei Storchak said. Officials from Brazil, China, India, Russia and South Africa agreed in early August that the bank’s capital should come from three payment categories, including subscriptions, Storchak told journalists in remarks for publication on Monday.The establishment of the development bank aimed at providing funds for infrastructure projects has been slow in coming, with prolonged disagreement over funding and management of the institution. At the summit of the Group of 20 developed and developing nations this week in Russia’s St. Petersburg, BRICS leaders will meet in an unofficial format, Storchak said, to discuss the progress on setting up the bank and a joint reserve fund. The issues of division of the capital, payment of the capital, the location of the bank and the bank’s management still need to be decided, he added. The group has struggled to take coordinated action after an exodus of capital from Brazil, Russia, India, China and South Africa prompted by an expected scaling back in US monetary stimulus raised fears about the health of their economies.

(Source: Financial Express)

Co-development, co-production in defence top PM's agenda on US visit

Co-development and co-production in defence, including the joint production of BAE Systems’ M-777 howitzer guns, announcement of the acquisition of 20-plus Apache and Chinook attack helicopters from Boeing and second tranche delivery of the world’s largest military transport plane C-130J Hercules, tops the ‘informal’ agenda of Prime Minister Manmohan Singh’s forthcoming visit to the US in September. These defence deals are expected to cost India in excess of $2.5 billion. They would also touch on the progress made so far in the Defence Trade Initiative aimed at relaxing US laws to allow greater joint R&D efforts on defence products.

(Source: Financial Express)

Economic Section

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