สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 25 พฤศจิกายน 2556

Hike in EU customs duty to hit Indian exports

New Delhi will ask Brussels to reconsider the decision by the European Commission (EC) to end a preferential tariff system for imports from India and other developing nations. Should the current regime of low customs duties end, it would make Indian goods more expensive with exporters paying anywhere between 6% and 12%. The EU’s move to deny India the GSP benefit for certain goods is part of its plan to redesign the scheme. The idea is to exclude advanced developing economies that have integrated into the world trade and to focus on the needs of those that are lagging. To get broader preferential access to the EU market, India is now negotiating a free trade pact with the EU, which already has such arrangements with about 34 other countries. Talks on the proposed India-EU pact are progressing slowly due to a lack of agreement on areas of market access and its extent.

(Source: Financial Express)

India needs stable tax environment to attract investments: CII

Amid rising concerns on the protection of tax base by countries across the world, a white paper by CII-EY has suggested that the Indian government provide a stable tax environment and simplify procedures in sync with global practices. Terming many of the policy measures taken by the Indian government as "unilateral and unsettling for the taxpayers", the paper suggests following a consultative and collaborative approach in dealing with tax issues. The white paper suggests companies to identify aspects of the plan that have the greatest potential impact on their business models and prepare for increased reporting. It also asks firms to review current business models and structures against specific target areas, and factor in the new tax policy environment into ongoing and future projects. Stating that the manner in which a corporation engages with a tax authority seeking to invoke GAAR (General Anti Avoidance Rules) is critical, the paper suggests firms to chalk out a strategy and pay close attention to the process that is used by the tax authorities for invoking GAAR. Besides, the paper urges the CBDT to simplify the compliance rules for taxpayers, as safe harbour rules continue to impose the burden of maintaining transfer pricing documentation on taxpayers.

(Source: Economic Times)

Gold jewellery exports fall 6.9 pct in October

Exports of gold jewellery from India fell 6.9 percent on month in October to $608.95 million, an industry body said on Monday. India, which is fighting hard to reduce its current account deficit (CAD), has brought in measures to restrict imports of gold - its second-biggest import item after oil - which has affected the jewellery sector. The measures included a rule that said 20 per cent of all the gold shipped in must be turned around and exported as jewellery. Gold jewellery exports from April to October fell nearly 55 percent to $3.95 billion, the Gems and Jewellery Export Promotion Council (GJEPC) said in a statement.

(Source: Financial Express)

India may have to start importing iron ore soon: Steel Ministry

The Steel Ministry said India will have to import iron ore in the immediate future to meet significantly increasing demand from domestic companies. The Ministry in its mid-year plan review has identified iron ore availability as one of the challenges to achieve the steel production target of 300 million tonnes per annum (mtpa) by 2025. With current production capacity of around 90 mtpa, India needs at least 140 million tonnes (MT) iron ore to meet its need. It requires 1.5-1.6 MT iron ore to produce one million tonne of steel. The country’s iron ore production is expected to rise in the coming days with the Supreme Court partially lifting ban on iron ore mining in Karnataka, a producing state.

(Source: Business Standard)

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