สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 30 มกราคม 2557

FDI flows into India up 17 per cent to $ 28 billion in 2013: UN report

FDI flows into India grew 17 per cent in 2013 to $ 28 billion despite unexpected capital outflows in the middle of the year, according to a United Nations report. It also said foreign direct investment across the world rose to levels not seen since the start of the global economic crisis in 2008. India ranked 16th among the top 20 global economies receiving the most FDI, witnessing a 17 per cent growth to $ 28 billion. Global FDI increased by 11 per cent in 2013 to an estimated $ 1.46 trillion, with the lion's share going to developing countries, according to the UN Conference on Trade and Development (UNCTAD) report. UNCTAD forecasts that FDI flows will rise gradually in 2014 and 2015, to $ 1.6 trillion and $ 1.8 trillion, respectively. As global economic growth gains momentum, this may prompt investors to turn their cash holdings into new investments, it said. However, uneven levels of growth, fragility and unpredictability in a number of economies and risks related to the tapering of quantitative easing could dampen the FDI recovery. FDI flows to developing economies reached a new high of 759 billion dollars, accounting for 52 per cent, during the year. Developed countries, however, remained at an historical low (39 per cent) for the second consecutive year. FDI inflows to developed countries increased by 12 per cent to $ 576 billion, with such investment to the European Union increasing, while flows to the United States continued their decline. The US received $ 159 billion in FDI flows last year. The BRICS - Brazil, Russian Federation, India, China and South Africa - continued to be strong performers in attracting FDI. Their current share of global FDI flows at 22 per cent is twice that of their pre-crisis level. In late 2012, the 10 ASEAN member states and their six FTA partners — Australia, China, India, the Republic of Korea, Japan and New Zealand — launched the negotiation of the Regional Comprehensive Economic Partnership (RCEP). The region have combined FDI flows of $326 billion, accounting for more than 20% of global FDI flows in recent years.

(Source: Economic Times, Financial Express)

India most popular among global cos to expand ops

India has pipped China to emerge as the most popular destination for global corporates looking to expand their operations, said a survey by property consultant CBRE. “India has emerged as the most popular expansion market,” said CBRE’s Annual European Occupier Survey, which studies the latest occupier real estate trends. This year, over 70 corporate occupiers responded to the survey. They represented leading corporations, with banking and finance and technology and telecommunications sub-sets forming the largest groups. “When asked to identify where they intended to expand their operations, about 48 per cent named India (double of 24% in 2012-13), and 42% named China (down from 60% in 2012-13),” CBRE said. There is a significant rise in the number of corporates intending to expand into Africa, identified by a third of respondents against a fifth in 2012-13. The survey found out that rapid population and economic growth, coupled with increasing transparency and improving infrastructure, is removing many of the traditional barriers to entry to the Indian market.

(Source: Financial Express)

Protecting patents: India worst in world

Despite the current decade being called India’s “decade of innovation”, the country has been ranked at the bottom of the list of 25 countries in terms of its intellectual property (IP) environment. According to the 2014 International Intellectual Property (IP) Index by the US Chamber of Commerce’s Global Intellectual Property Center (GIPC), India’s percentage score has fallen from 25 per cent in 2012 to 23 per cent. “The continued use of compulsory licences, patent revocations, and weak legislative and enforcement mechanisms raise serious concerns about India’s commitment to promote innovation and protect creators,” the report said. The US is the highest-ranking country, followed by the UK and France. The five BRICS economies — Brazil, Russia, India, China, and South Africa — continue to face serious challenges. According to the report, several factors led to the deterioration of the IP environment in India. For instance, in the biopharmaceutical sector, “Indian policy continued to breach international standards of the protection of innovation and patent rights, revoking patents generally accepted around the world and announcing that other patented medicines are being considered for compulsory licences.” The report also mentions the Supreme Court’s April 2013 ruling on the patentability of the anti-cancer drug, Glivec, that the drug does not meet patentability standards imposed by the Indian Patent Act. India scored poorly in the areas of patents, copyrights, enforcement, membership and ratification of international treaties (in which it scores zero), among others.

(Source; Business Standard)

Understanding consumer price inflation,that guided RBI's latest rates hike

The Reserve Bank of India on Tuesday unexpectedly raised interest rates, repeatedly citing high consumer price inflation. The central bank has clearly indicated that it will be guided by the Consumer Price Inflation as opposed to the Wholesale Price Index (WPI) that had been the benchmark gauge of inflation.

(Source: Economic Times)

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