สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 9 กันยายน 2556

Govt may start gold deposits to channel savings

As the clampdown on gold imports has reduced the demand for the metal, households are left with savings that the government now proposes to funnel into alternative investment avenues. The finance ministry is understood to be working on a series of schemes to harness household savings, two officials familiar with the development said. The departments of economic affairs and financial services are understood to be examining the issue. RBI Governor Raghuram Rajan in his maiden press conference, after assuming charge, had announced that the central bank would launch inflation-indexed savings certificates linked to the CPI new index to retail investors by the end of November. Similar bonds, linked to the whole sale price index was introduced for institutional investors in June. The matter, however, has gained traction in recent weeks after official data revealed that the economy grew at an estimated 4.4 per cent in the first quarter of this fiscal. More worryingly, gross fixed capital formation dipped by 1.81 per cent in the quarter as against a dip of 2.23 per cent in the same period a year ago.

(Source: Economic Times)

Intelligence agency sounds 'alert' to check gold smuggling

An alert has been sounded by a financial intelligence agency to all international airports and other transit points within the country to check smuggling of gold. Citing recent structural changes in import duty of gold by the Finance Ministry, the Directorate General of Revenue Intelligence (DGRI), which analyses and disseminates intelligence related to smuggling and customs duty evasion, has sent an alert to all international airports and customs check points to remain vigilant, official sources said. They have been asked to intensify measures, including minutely scanning suspect passengers and commercial consignments to check smuggling of gold, the sources said. The officials fear that the upcoming festive season, including Diwali and marriages solemnised between November and February, will push the demand for gold in the country, giving rise to its smuggling, they said. There are 19 international airports in the country – Srinagar, Amritsar, Jaipur, Delhi, Ahmedabad, Guwahati, Nagpur, Mumbai, Kolkata, Hyderabad, Goa, Bengaluru, Chennai, Calicut, Coimbatore, Tiruchirapalli, Kochi, Thiruvananthapuram and Port Blair. Officials have been asked to be alert at international transit land routes, including Attari-Wagah border (Punjab) and Munabao Railway Station under Jodhpur (Rajasthan), among others, the sources said. However, after noticing fall in prices of gold globally, the Finance Ministry had on September 2 reduced the import tariff value of the yellow metal to USD 458 per 10 grammes. Earlier on August 30, the tariff value -- base price on which the customs duty is determined to prevent under-invoicing – of gold was increased to USD 461 from USD 432 per 10 grammes. The prices of yellow metal had touched an all-time high of Rs 34,500 per 10 grams in last week of August in the national capital. At present, 10 grams of gold cost about Rs 31,000 in Delhi's bullion market.India, the largest gold consumer in the world, imported 860 tonnes of gold in 2012. In the first four months of the current fiscal, the import rose by 87 per cent to 383 tonnes. On August 13, the government had raised import duty on gold to 10 per cent from 8 per cent. Sources said the customs department is also scanning credentials of suspect cargo coming from Gulf countries and other nations like Malaysia to foil any bid to smuggle the precious metal inside the country. Of late, a number of passengers have been arrested from Delhi's international airport for allegedly trying to smuggle gold into the country.

(Source: Financial Express)

India Inc to policymakers: shape up, or we'll ship out

After the rapid slide in the rupee this year, the message from the country's corporate titans to the government is clear: shape up and fix the problems or more companies will expand their business abroad and deprive the economy of investment. Many top entrepreneurs are voicing frustration that policymakers failed to keep economic reforms rolling over the past decade, which they contend would have prevented India from stumbling into its deepest economic crisis since 1991, when it was forced to pledge the country's gold reserves in exchange for international loans. The lack of reform and infrastructure, painfully slow decision making and red tape are common complaints of corporate India, but this time they could come at a cost as the rupee crisis shows businesses how vulnerable they are. The political cost could hit the Congress-led ruling coalition at national elections that must be called by May. An opinion poll on Friday showed nearly three-quarters of Indian business leaders want opposition figure Narendra Modi to run the country after the election. Many industrialists complain that delays in approving projects due to differences among various government departments and red tape make it tougher for India Inc to set up manufacturing operations in the country than overseas.

(Source: Business Standard)

Indian rupee fall has forex reserves plunging $16.5 bn since April 2013

RBI's fight to prop the tottering rupee has contributed substantially to forex reserves dipping by a hefty USD 16.554 billion or 6 per cent to a low of USD 275.49 billion since the beginning of this fiscal. According to marketmen, a large part of this has been used to save the bleeding rupee, which went on a downward spiral after May 22 when Ben Bernanke of the US Fed had hinted at turning his easy money policy much earlier than previously hinted. According to the latest Reserve Bank data, forex reserves plunged to USD 275.491 billion to the week ending August 30, which is a near 6 per cent fall from USD 292.646 billion as of March 29. The Indian rupee opened the fiscal at 54.25 to the US dollar but fell to a life-time low of 68.86 on August 28, losing nearly a third of its value. However, since the new RBI Governor Raghuram Govind Rajan took over the affairs of the Mint Street on September 4, the rupee has been on a winning streak, and closed the last trade on Friday at 65.24 to the dollar.

(Source: Financial Express)

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