สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 20 กันยายน 2556

Titan mulls using direct import licence for gold

A crackdown on the import of gold has left jewellers struggling before the coming festive season and the wedding season in December when demand spikes. Titan has said it would use its direct import licence to procure the yellow metal. Titan has not used the licence till date, it bought gold from local agencies and banks that allowed a better working-capital cycle with a credit period of 180 days. Payments for direct imports have to be settled in 90 days. Titan, which operates its jewellery business through Tanishq, receives about 80 per cent of its revenue from this segment. The company has never exported gold but might have to now, as the Reserve Bank of India (RBI) mandates importers using the licence earmark a fifth for exports. Indians have a seemingly insatiable appetite for gold and its import has been largely held responsible for an increase in the country’s current account deficit, which the Union government is trying hard to control by increasing duties. This has also led to a large amount of illicit gold entering the country, especially through Nepal and Bangladesh.

(Source: Business Standard)

Lack of consensus in coalition era can hurt India's growth prospects, says Montek

As the country faces the possibility of a fractured mandate after the 2014 general elections, Planning Commission Deputy Chairman Montek Singh Ahluwalia is of the view that in an era of coalition governments, special steps are needed to build consensus around policies or else, India will not be able to grow at its full potential. Talking to Business Standard recently, Ahluwalia said precisely because of this reason, the 12th Five-Year Plan, for the first time, projected three growth scenarios over the five years, instead of having one consistent target. The scenarios are of an average growth of eight per cent over the five-year Plan period, 6-6.5 per cent and 5-5.5 per cent. Ahluwalia also said achieving an average annual growth rate of eight per cent over the Plan period might not be possible unless there was a strong growth in the last two years of the Plan period as growth rate had been lower than expected in the first two years. "It’s quite clear that in the first two years, the growth rate is low, and so in all probability, getting to our target of an average eight percent in the five-year period may not be possible.

(Source: Business Standard)

Fitch slashes India growth forecast to 4.8 per cent for FY'14

Fitch Ratings cut India's growth forecast for the current financial year to 4.8 per cent, saying weak demand is a large drag on the economy. The new estimate compares with projections of 5.7 per cent made in June and 7 per cent in September, underlining the "severity of the growth shock," the rating agency said in its 'Global Economic Outlook' report released on Thursday. Fitch said prospects of a swift economic turnaround have been further dented by a 20 per cent fall in the domestic currency since the end of May due to increased concerns over the country's large current account deficit. The sharp cut in the growth forecast comes when the country faces challenges such as slowing growth, exchange-rate woes and concerns about the current account deficit. India's economy expanded at a 4.4 per cent pace in the April-June quarter compared with 4.8 per cent in January-March.

"Demand is weak, both externally and domestically, which is a large drag on the economy," the agency said. Fitch also cut India's growth rate projection for FY'15 to 5.8 per cent from the June forecast of 6.5 per cent. In September 2012, the company had projected a growth of 7.5 per cent for FY'15. Last week, the Prime Minister's Economic Advisory Council had revised its growth forecast for the current financial year to 5.3 per cent from 6.4 per cent projected earlier.

(Source: Financial Express)

For Indian academics, foreign varsities' entry means strong tie-ups, sharper research & the best of global faculty

The government's recent move to allow foreign universities to establish campuses in India is seen facilitating collaborative research and opening up the domestic academic environment to the latest pedagogies and curriculum of the West even as global varsities learn more about a major emerging market economy. The move could benefit millions of meritorious students who are rejected from the system due to the lack of seats in colleges. Ivy league institutes, which have ruled out any immediate intention of opening campus here, will continue to enhance their research tie-ups with local institutes and forge new forms of collaborations. Some tier-2 institutes could also make an entry. Once the foreign universities are here, more collaboration will take place on varied fronts and Indian institutions will benefit from some of the modern pedagogic styles of these institutions, he says. Moreover, there will be better opportunities for the Indian talent pool in terms of faculty and educational experts.

(Source: Economic Times)

Economic Times

Royal Thai Embassy