สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 17 กันยายน 2556

Food prices behind surge in WPI, RBI must not hike rates

The price of vegetables in general rose by 77.81 per cent making life difficult for the common man. Blaming high food prices for the resurgence in wholesale price inflation (WPI), India Inc today said the government must ease supply-chain bottlenecks to address this issue and urged the RBI not to hike interest rates in its upcoming monetary policy review. Costlier onion and other vegetables pushed up inflation for the third month in a row to 6.1 per cent in August, making it difficult for the RBI to cut rate in the monetary policy review due later this week. The high increase in prices was also seen in other essential food items like rice, cereals, egg, meat and fish. The food items became costlier by 18.8 per cent on year on year basis. The inflation was at 5.79 per cent in July and 8.01 per cent in August, 2012. This (inflation) would further affect the prospects of economic growth revival and the corporate sector will continue to bear the brunt of higher growth in input prices.

(Source: Financial Express)

Cabinet Committee on Investment meet today; might review hurdles in road sector

The Cabinet Committee on Investment (CCI), headed by Prime Minister Manmohan Singh, might review the hurdles faced by the highways sector on Tuesday. CCI is likely to take stock of the issues impacting the growth of infrastructure projects in the country, in its meeting on Tuesday evening, sources said. The ministry of road transport and highways is likely to submit a presentation to CCI regarding the issues that have affected and continue to affect the progress of highway construction in the country and the ministry's attempt at alleviating the impact. These issues include delays in land acquisition, environment and forest clearance among others. The CCI, in January this year, had asked the road ministry to prepare a list of hurdles in the sector and find solutions, with the respective ministries, to mitigate the problems. According to sources, the road ministry has received status reports from the ministries concerned regarding the projects and it is likely to present it to the CCI, in the meeting.

(Source: Business Standard)

E-commerce in India begins to give physical retail a run for its money

Bringing e-commerce to the centre stage is the government's drive to open the sector to foreign direct investment (FDI), after being inactive on the issue for long. Not just Amazon and eBay, even brick-and-mortar players such as Walmart have made it known e-commerce is the future and FDI must be allowed in this space. Walmart Asia president and chief executive Scott Price is learnt to have written to Finance Minister P Chidambaram, saying "several other sectors stand poised for exponential growth and are ripe for foreign investment; foremost among them is e-commerce". E-Commerce is expected to contribute around 4% to GDP by 2020

(Source: Business Standard)

Foreigners allowed to carry upto Rs10K beyond immigration desk

RBI today permitted foreigners to carry up to Rs 10,000 beyond immigration desk to the duty free area in airports for miscellaneous expenditures, but they will have to dispose the Indian currency before boarding plane. Earlier, foreigners were allowed to carry Indian currency up to the Customs Desk or the Immigration Desk at international airports in the country. The permission, however, is subject to the condition that they will "not be allowed to carry any Indian Rupee beyond SHA and that they should dispose of Indian currency before boarding the plane," the RBI added.In order to provide money changing facility to non- residents to convert unspent Indian Rupees with them, RBI said Foreign Exchange Counters in the departure halls in international airports may be established in the Duty Free Area/SHA beyond the Immigration/ Customs desk. Such counters will however, only buy Indian Rupees from non-residents and sell foreign currency to them, it said. The central bank further said putting up display at forex counters, "reminding the passengers that the area is the last point for non-residents to possess Indian Rupees (INR)" will be the responsibility of the Airport Authorities. Earlier, forex counters were permitted in the departure halls only before the Customs Desk or the Immigration Desk.

(Source: Financial Express)

Government plans to fund electronics startups to encourage local manufacturing

The government is finalising plans to fund and incubate technology startups that specialise in electronics as it seeks to encourage local manufacturing and limit import of electronic merchandise, country's second-biggest foreign exchange-drainer after oil. Select educational institutions such as Bangalore-based International Institute of Information Technology and Delhi University are being roped in for housing such incubators. Industry observers said that the incubator and funding assistance by government is a step in the right direction, especially as electronics-focused startups face high initial investment.

(Source: Economic Times)

Government to aid textile start-ups via equity fund model

In a move that aims to replicate the success of India's IT entrepreneurs, the government is planning to fund and provide workspace to start-ups in labour intensive sectors. The idea is to give a boost to manufacturing and ensure steady supply of skilled workforce in sectors that have huge export potential said an official.The official said the start-ups will be funded through a dedicated equity fund on pure venture capital model. The project will be tested in the textile sector where space will be provided to entrepreneurs at textile parks while funds will be given through the state-supported Textile Equity Fund. Although apparel exports from India clocked double-digit growth in the current fiscal and production grew 45% in the first five months, Indian textile exports are facing tough competition from Bangladesh in the US and the EU markets.

(Source: Economic Times)

Economic Section

Royal Thai Embassy