สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 8 มกราคม 2557

Government likely to lift curb on gold imports

Planning Commission member Saumitra Chaudhuri has pitched for relaxation in curbs on gold imports citing improved current account deficit (CAD) and joining the growing clamour for easing restrictions on the yellow metal. "Government had imposed curbs on gold imports in May as a temporary measure. Since it has helped considerably in cutting down trade deficit, I think there will be an end to this either towards the end of this quarter or early next fiscal," Chaudhuri said on the sidelines of a CII event. Earlier in the day, economic affairs secretary Arvind Mayaram told PTI that the government should not tamper with the existing regime at least for this fiscal, notwithstanding an improvement in the CAD situation.  Recently, finance minister P Chidambaram too said that some curbs on gold imports should remain in force. However, Reserve Bank governor Raghuram Rajan favours doing away with the restrictions, which encourage smuggling, sharing the view of the commerce ministry. Gold imports fell to 19.3 tonnes in November from a high of 162 tonnes in May in the wake of a series of curbs by both the government and the RBI. These included raising Customs duty on standard gold to 10 per cent from 2 per cent to restrict imports that bloated the current account deficit to an all-time high of 4.8 per cent of gross domestic product, or $88 billion in 2012-13.  Besides, the RBI had in July introduced an 80:20 scheme - 20 per cent of the bullion imported had to be exported back. Imports were also not allowed if importers were unable to meet the 20 per cent norm. The government also banned trading of gold in special economic zones. The measures had the desired impact of slowing down gold and silver imports to $25.5 billion in the first eight months of the fiscal, from $33.5 billion in the year earlier. As per the RBI, the CAD is likely to be in the range of $56 billion against the lifetime high of $88.2 billion in the previous year.

(Source: Economic Times)

Gold import curbs at least till March: Mayaram

The restrictions on gold imports are likely to continue till at least March-end, despite an improvement in the current account deficit (CAD). “Our point is we need to keep the CAD low. And whatever is to be considered should be considered the next year after fully understanding how the CAD will look for the next year,” Economic Affairs Secretary Arvind Mayaram said. Recently, Finance Minister P Chidambaram, too, said some curbs on gold imports remain in force. However, Reserve Bank Governor Raghuram Rajan favours doing away with the restrictions, which encourage smuggling. The government had increased customs duty on gold to 10 per cent while the RBI linked imports of the metal to exports amid a widening CAD and depreciation of the rupee.

(Source: Business Standard)

Chidambaram reviews indirect taxes; revenue mobilisation top concern

Revenue mobilisation has become the biggest priority at the North Block as the finance ministry goes full gear into budget preparation. Finance minister P Chidambaram, who has repeatedly said the government will meet the fiscal deficit target , 4.8% of GDP in 2013-14, held one on one meeting with chief commissioners to review indirect tax collections. Indirect taxes, which include customs duty, excise duty and service tax, have borne the direct brunt of economic slowdown with collections growing just 5% during April-November. These first ever one-on-one review meetings have sent out a clear message that field officials should ensure that collections remain on course.

(Source: Economic Times)

‘Opening up e-commerce against spirit of FDI in multi-brand retail’

The department of industrial policy and promotion (DIPP) has said that allowing foreign direct investment (FDI) in e-commerce goes against the spirit of FDI in multi-brand retail even though it admits infrastructural development, transparency and efficient supply chain management as benefits from inflows. The department has raised concerns on the inventory-based model of e-commerce as it competes directly with MSMEs. Indian-owned companies like Flipkart, Snapdeal and eBay have started offering open marketplace models that provide a technology platform to help MSMEs reach across the country. There are two models of e-commerce: marketplace and inventory-based. The marketplace model works like an exchange for buyers and sellers wherein the ownership of the inventory vests with the number of enterprises that advertise their products on the website and are ultimate sellers of goods or services. On the other hand, in the inventory based model, the ownership of goods and services and marketplace vests with the same entity. FDI in the market place model is already present in the country. Listing out eight advantages and an equal number of disadvantages of allowing FDI in the e-commerce space, DIPP floated a discussion paper on Tuesday seeking comments of various stakeholders on issues such as entry routes and caps, if it be open for all products or only for non-food products, limit for minimum capitalisation and domestic sourcing by January 30. E-commerce in India is growing at a compounded annual growth rate of 34% and is expected to touch $13 billion by the end of 2013. Around 90% of the global e-commerce transactions are stated to be in the nature of business-to-business (B2B). Among the advantages, the paper says that FDI will lead to better work culture and customer service, empower consumers with information and data, help in better compliance of regulatory framework and reduce costs on marketing, distribution, travel, materials and supplies. Besides, it will lead to improved customer service by providing more responsive order-taking and after-sales service to customers, along with competitive pricing. Despite the benefits, FDI in e-commerce is feared to impair small-time trading of brick-and-mortar stores as shopkeepers are not highly qualified and unable to compete with the e-retail business format.

(Source: Financial Express)

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