สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 24 มกราคม 2557

National Advisory Council calls for easing curbs on gold imports as current-account deficit looks up

The National Advisory Council headed by Sonia Gandhi has asked the government to look into the policy on gold imports following complaints of an alarming increase in its smuggling, a development that could lead authorities to ease the curbs imposed on the yellow metal.  The finance ministry has also been reviewing the restrictions imposed on gold imports following a dramatic improvement in the country's current-account deficit, which Finance Minister P Chidambaram said could shrink to $45 billion this fiscal year from $88 billion last year. To discourage gold imports, the government had increased the import tax and put requirements such as compulsory exports of a portion of the metal that is imported. While this has reduced gold imports through legal channels, smugglers took advantage of the big price difference between local and international prices. In the initial 10 months of last year, gold smuggling almost doubled to Rs 208 crore from the previous year. Many importers stopped purchases as they weren't sure how to meet this rule. The government had also banned trading of gold in special economic zones. These curbs had reduced imports and "broken the backbone" of the industry with a short and erratic supply of gold, the federation's letter said.

(Source: Economic Times)

Commerce Ministry to hold 14 India shows in CIS countries

In a bid to recoup significant trade ground in 12 key CIS (Commonwealth of Independent States) members, the Commerce Ministry has launched an aggressive strategy to promote India's commercial engagement with the former member states of the erstwhile USSR. Addressing the India-CIS Business Forum, Joint Secretary in the Ministry Ravi Capoor said India's trade with these countries as members of the erstwhile USSR used to account for 26 per cent of the country's total trade which has now been reduced to less than 1 per cent. However, the Ministry of Commerce is now encouraging Indian businessmen to re-enter this part of the world which is among the 4 fastest growing regions of the world. These are: the ASEAN, Latin America, Africa and CIS. He said that the CIS members, also known as the Eurasian countries, are quite rich in natural resources like oil, natural gas, metals & minerals. They are also a useful source of several other raw materials which are of considerable importance to India's manufacturing industry. While the Indian Ministry of Commerce is trying to overcome the language barrier with the help of Indian students studying in different CIS countries, the Ministry of External Affairs is taking up the issue of visa delays with these countries. Among the 12 CIS countries, the biggest potential lies with Russia, Kazakhstan, Turkmenistan and Azerbaijan.

(Source: Economic Times)

Walmart seeks more clarity on FDI rules for multi-brand entry

Eyeing India as a long-term growth market, US-based retail giant Walmart says it is currently focussing on expanding its wholesale retail business in the country and would wait for further clarity on rules for entering the multi-brand retail business. When asked about registering a new company in India earlier this month, he said that Walmart is positioning itself for the future, but the focus for the moment remains on Best Price cash and carry format. The retailer has registered a new company called 'Wal-Mart India Private Ltd' in the country.  Asked about possible timeline for multi brand entry, Walmart President and CEO Doug McMillon said it is not possible as of now to predict any timeline as it would depend on the decision taken by the "people of India and the government of India with regard to the regulations for foreign direct investment."  After parting ways with Bharti group in October last year, Walmart had said it was studying the feasibility of India's foreign direct investment (FDI) policy in multi-brand retail before finalising plans to enter the segment. In December 2013, Walmart received the green signal from the Competition Commission of India (CCI) to purchase Bharti group's almost 50 per cent stake in their Indian joint venture for wholesale stores business. The joint venture -- Bharti Walmart Private Ltd -- was set up to operate wholesale stores under the Best Price Modern Wholesale brand. It was not catering directly to retail consumers in the country. Walmart has been lobbying with American lawmakers since 2008 for facilitating its entry into the Indian market, according to lobbying disclosure reports filed by the company in the US. A probe ordered by the Indian government in December 2012, into lobbying activities undertaken by Walmart to enter Indian retail market remained inconclusive. In its Action Taken Report on Walmart probe, the government had said it would initiate fresh action against Walmart if an ongoing 'foreign corrupt practices' probe by US authorities reveals any violation in India by the retail giant.

(Source: Economic Times)

RBI must retain goal of boosting growth, says FM

The Reserve Bank of India (RBI) must retain the objective of supporting economic growth as it battles price rises, Finance Minister P Chidambaram said, signalling challenges in implementing a proposed shift to target inflation. This comes in the backdrop of RBI's Urjit Patel committee that recommended setting a four per cent annual cap for Consumer Price Index(CPI)-based inflation by 2016 as part of the most sweeping changes in the central bank's 78-year history. Prime Minister Manmohan Singh has seen policies to boost rural wages and distribute cheap food that contributed to CPI-based inflation of more than nine per cent for about two years. The slowest economic expansion in a decade has sapped support for the ruling Congress , which is trailing in opinion polls ahead of general elections due in May. Chidambaram said the government would continue curbing gold imports into the next financial year. The government would meet its fiscal deficit target of 4.8 per cent of gross domestic product in the financial year ending March 31, he said. The rupee, which fell about 13 per cent last year, pared losses after Chidambaram's comments on gold imports.

(Source: Business Standard)

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