สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 4 มีนาคม 2557

Government notifies raw sugar export subsidy

The government notified export subsidy of Rs 3,300 a tonne on raw sugar shipments undertaken during the February-March period. The Cabinet Committee on Economic Affairs had approved a proposal in this regard in February to help the cash-starved industry to pay arrears to sugarcane farmers. “The incentive shall be at the rate of Rs 3,300 a tonne for February and March, and thereafter, be recalculated every two months after taking into account the average exchange rate of rupee vis-a-vis the dollar,” the notification said. There would be, however, a quantitative limit of 4 million tonnes for subsidy. Raw sugar produced and exported during 2013-14 and 2014-15 marketing years (October-September) are eligible for subsidy. Sugar mills, which produce raw sugar and undertake export of the same either themselves or through exporters are eligible for incentive. The date of shipment would be the basis for determining the incentives.  India, the world's second-biggest sugar producer, is sitting on huge stock of the sweetener. This year, output is likely to be 25 million tonne, higher than the domestic demand of 23.5 million tonnes. It has been made mandatory for mills to register their export contracts priorly with the Director General of Foreign Trade (DGFT) for direct export of raw sugar or of deemed export of supplies against invalidation to advance authorisation holders. The incentive will be reviewed before the commencement of the next sugar marketing year, the notification added. Arrears to cane farmers have mounted to about Rs 10,000 crore from about Rs 3,000 crore at the start of the current marketing year in October 2013. In December, Centre had approved a Rs 6,600 crore interest-free loan to the sugar industry to help make payments to sugarcane farmers.

(Source: Business Standard)

India tightens checks to curb gold smuggling

India has started to make physical checks of gold stocks held by wholesalers to ensure inventories match the amount imported by banks and state-run traders, an industry association said, as the country steps up efforts to halt smuggling. The move could aggravate shortages in the physical market as authorities seize gold without a valid provenance, boosting premiums, which rallied to a record of $160 an ounce on London prices late last year. "Government agencies are raiding and seizing gold at various places and asking to reconcile the (gold bar) number with the imported gold," said India Bullion and Jewellers Association (IBJA) general secretary Surendra Mehta. Gold was being seized if numbers do not match up, said Mehta, whose 1,200 bullion dealers and jewellery retailers plan to close their shops on March 10 in protest at the spot checks and import curbs.  To tackle a widening trade deficit, India - the world's second-biggest gold consumer behind China - has put in place measures to dissuade gold buying, including a 10 percent import tax. Imports have fallen sharply, leading to shortages and triggering smuggling. India imported about 750 tonnes of gold in 2013, while up to another 200 tonnes was believed to have been smuggled into the country, according to the World Gold Council.  

(Source: Reuters India)

Manufacturing activity posts strongest growth in a year

Manufacturing activity in the country gathered pace in February on the back of new domestic and overseas orders to post the fastest expansion in nearly a year, a survey showed on Monday. The HSBC India Purchasing Managers' Index (PMI) rose to 52.5 in February, up from 51.4 in the previous month, signalling robust improvement in business conditions across the sector. Production growth accelerated due to an increase in new work. New orders increased for the fourth month running and the fastest since February 2013, the survey showed. "Manufacturing activity picked up further in February. New order flows have firmed, with the improvement in external demand and the reduction in macroeconomic uncertainty since last summer," said Leif Esekesen, chief economist for India & Asean at HSBC. "However, the recovery in activity is still likely to prove protracted, given the lingering structural constraints. Moreover, underlying inflation pressures remain potent, which was evident from the jump in the input price component of the PMI survey. This will keep Reserve Bank of India (RBI) hawkish and likely compel it to raise rates a bit further," Eskesen said. The country's manufacturing sector has been under intense pressure and has been a drag on the overall growth, which is expected to slow to 4.9% in the fiscal year ending March 2013. High interest rates, stubborn inflation, slowing investment and a global economic slowdown have hurt the manufacturing sector, while policy and regulatory delays have acted as a major hurdle.

(Source: Times of India)

Cabinet note on FDI in rail, construction cleared: Sharma

Union Commerce and Industry Minister Anand Sharma today said the cabinet note on allowing foreign direct investment (FDI) in the railway and construction sectors has been cleared. " Sharma was in town to sign MoUs with the state government and other stakeholders for the Delhi Mumbai Industrial Corridor project. "As far as my ministry, the nodal ministries and others are concerned, we have completed all the processes. The proposal will take a final shape soon," he added. The Department of Industrial Policy and Promotion had proposed relaxation of FDI norms in the construction sector and 100 percent FDI in the railway sector. "We hope liberalisation of FDI in both the sectors will be a major step," Sharma said.

(Source: Money Control)

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