สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 6 ธันวาคม 2556

'Stiff India' could soften; WTO may be nearing a breakthrough deal

As the World Trade Organization’s (WTO’s) ninth ministerial conference (MC9) entered its third day, Commerce Minister Anand Sharma had ruled out compromise on the food security issue and urged developed countries to show grit and flexibility. Sharma maintained a “no compromise, non-negotiable” stance publicly, especially on the food security issue, while he sent out the message of a relaxed and conciliatory approach during his private negotiations with representatives of key countries. India claims many developing countries back its hard stand, and wants more flexibility on food subsidies. Whereas current rules says only upto 10% of farm produce can be subsidized Developed countries have offered a 4 year peace clause, and in this clause there will be no fine or penalty for violating WTO limits in these four years. India wants a peace clause till a lasting solution is found. Sources said it was clear India was now looking beyond the horizons of Bali and taking negotiations back to the drawing table in Geneva.

(Source: Business Standard, Economic Times)

PM panel tells commerce ministry to conclude SAFTA talks early

A high-level panel headed by Prime Minister Manmohan Singh has asked the commerce department to conclude the next round of negotiations for the Agreement on South Asian Free Trade Area (SAFTA) at the earliest even as it has called for an impact analysis of India's free trade agreements on all sectors. The SAARC (South Asian Association of Regional Cooperation) nations are negotiating to reduce the sensitive list, address the non-tariff barriers and implement trade facilitation measures that include smoothening of customs procedures. The grouping includes Afghanistan, Bangladesh, Bhutan, India, Maldives, Sri Lanka, Pakistan and Nepal. Finance minister P Chidambaram was reported to have raised concern over India's rising imports with the FTA partners and warned against hasty signing of FTAs. Commerce and industry minister Anand Sharma, however, defended his ministry saying that India's exports had seen a substantial jump due to the free trade pacts. As far as SAFTA was concerned, Sharma said, India had a trade surplus of about $12 billion while in the case of ASEAN (Association of Southeast Asian Nations), exports have more than doubled after signing of the Indo-ASEAN Trade in Goods Agreement in 2009.

(Source: Economic Times)

PM stresses on manufacturing base development in electronics and telecom

Prime Minister Manmohan Singh on Thursday said a strong domestic manufacturing base in electronics and telecommunications will mitigate burden of growing imports for the sector. He said by 2020, it is estimated India will be importing electronics products worth about 300 billion dollars, which will be more than the value of the country's imports of petroleum products. "We need to act now to avoid a situation where we face difficulties in financing these huge imports. India should have manufacturing facilities which result in a balanced trade in electronics products and are a part of global supply chains," Singh said. Taking about policies in the telecom sector, Singh said National Telecom Policy 2012 has brought clarity on number of issues in the sector.

(Source: Economic Times)

Economic Survey unlikely in February

After some dilly-dallying over the presentation of the Economic Survey with the interim Budget in February, the finance ministry has finally decided to table it just before the full Budget in July. P Chidambaram’s opinion on the matter and it was decided that keeping up with tradition, the Survey for 2013-14 should be tabled in July by the new government along with Budget 2014-15.  Also, the Budget session in February is likely to be a short one, allowing the government time to clear only the essential agenda like seeking Parliament authorisation to spend money through the Appropriation Bill till a full Budget is passed by the new government in July. However, the finance ministry has started the basic preparatory work on the Budget as well as the Survey. The preparations will help it quickly come up with the documents after the formation of the next government. The Revised Estimates for this year and the Budget Estimates for next year are being worked out, which will be unveiled in the interim Budget and later updated for the full Budget. As far as the Economic Survey is concerned, the background work will be done and kept ready.

(Source: Business Standard)  

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