สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 14 มกราคม 2557

AAP says no to FDI in multi-brand retail in Delhi

The government's initiative to allow foreign retailers access to Indian markets has received a serious setback. The Aam Aadmi Party (AAP) government has withdrawn the permission given to foreign retailers to open stores in Delhi. In a letter to the Department of Industrial Policy and Promotion (DIPP), the newly-formed state government AAP has asked the Centre to remove Delhi from the list of states which have conveyed their agreement to the policy of FDI in multi-brand retail trading. "The DIPP has received the letter in this regard from the Delhi government and is looking into it," an official said. Former state Chief Minister Sheila Dikshit had agreed to implement the policy in the national capital. Last year, the central government permitted 51 per cent FDI in the multi-brand retail trading and left its implementation on the states. The DIPP, sources say, is now processing that application. The FDI policy is silent on withdrawal of any such permission that was given by state government. Rajasthan, which is now being led by the BJP, is also expected to take a view on the policy on which the earlier government had given its consent. "The DIPP is keeping its fingers crossed with regard to Rajasthan as the BJP had been opposing the policy strongly," the official added. As many as 12 states, mostly Congress-led, including Delhi had agreed to allow global retailers to open super market chains. The other states include Maharashtra, Karnataka and Andhra Pradesh. Delhi has become the first state to withdraw permission for FDI in retail sector. The Aam Aadmi Party (AAP) in the party manifesto had expressed its opposition to the policy of FDI in multi-brand retail. "The Walmart experience shows that farmers in the US were not benefited, but deprived besides being a very bad employer," Arvind Kejriwal, party's founder and now Delhi Chief Minister, had said earlier. On the national level, the FDI in multi-brand retail had not evoked the expected response from the global retailers. Till now only one proposal of UK-based Tesco has been cleared by the central government.

(Source: MoneyControl)

Retail inflation down to 9.87% in Dec

Annual consumer price inflation hit a three-month low of 9.87% in December from 11.16% in November on easing vegetable prices, showed the official data on Monday. Analysts forecast some moderation in wholesale price inflation data for December as well, expected to be released on Wednesday, from 7.5% in November due to a possible drop in vegetable prices. Retail inflation in food and beverages rose 12.16% from a year earlier, compared with 14.72% in November, as the price rise in vegetables slowed to 38.76% last month from 61.6% in November. Economists had earlier said inflation based on the consumer price index (CPI) would come to a more manageable 8.2% for November, discounting the sharp price rise in vegetables. After staying below 6% for five months, wholesale price inflation remained at or above 7% since July — mainly because the price rise in vegetables remained at a highly elevated range of 46-95% until November. The analysts, however, said although the RBI will take a positive note of easing inflationary pressures in food items at its next monetary policy review meeting on January 28, it could still choose to wait for signs of a sustained moderation in both the WPI and the CPI for a cut in the benchmark lending rate. Industry chambers have already renewed calls for a sharp rate cut to spur investment and boost economic growth after industrial production data for November showed a 2.1% contraction, shaper than the 1.6% drop a month before. Monday’s CPI data showed that the provisional retail inflation rates for rural arrears was higher at 10.49%, compared with 9.11% for urban areas. Retail inflation in fuel and light segment rose 6.98% in December from a year before, while clothing, bedding and footware saw inflation at 9.25% last month.

(Source: Financial Express)

Include social work in CSR spend: India Inc

India Inc has asked corporate affairs minister Sachin Pilot to include the value of pro bono work done by their employees for social causes and non-governmental organisations in their statutory corporate social responsibility (CSR) spending under the new Companies Act. The proposal is in line with the practice in the United States, where a value is assigned to such voluntary work done by professionals without charging a fee. Pro bono work in the US was valued at $187 billion in 2010. Pilot is learnt to have agreed in principle to consider pro bono work as part of companies' mandatory CSR spending, set at 2% of profits under the 2013 Companies Law, as long as their boards ratify such an activity as meeting their societal needs.

(Source: Economic Times)

RBI allows forward contract in all transactions

Providing operational flexibility in external sector, the Reserve Bank today allowed forward contracts in all current and capital account transactions up to one year. The decision, it said, has been taken in view of the evolving market conditions and with a view to providing operational flexibility in respect of current and capital account transactions.As far as the exposure of the FIIs/QFIs/other portfolio investors is concerned, forward contracts booked by these investors, once cancelled, can be rebooked up to the extent of 10 per cent of the value of the contracts cancelled, it said. The forward contracts booked by these investors may, however, be rolled over on or before maturity, it said. As per the existing guidelines, exporters are allowed to cancel and rebook forward contracts to the extent of 50 per cent of the contracts booked in a financial year for hedging their contracted export exposures. At the same time, importers are allowed to cancel and rebook forward contracts to the extent of 25 per cent of the contracts booked in a financial year for hedging their contracted import exposures.

(Source: Economic Times)

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