สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 2 เมษายน 2557

ADB pegs India GDP growth at 5.5% in 2014-15

The Asian Development Bank (ADB) said on Tuesday that the Indian economy India Growth

is expected to grow 5.5% in 2014-15 on the back of improved performance in industry and services and will inch up to 6% in 2015-16 as external demand improves due to the strength in advanced economies. The 5.5% estimate is slightly lower than its previous forecast of 5.7% growth. The projection was same as the mean of RBI's range of growth projection — 5-6 per — for 2014-15.

This is a result of the government opening up some of the structural bottlenecks that have impeded industry and investment. However, it cautioned that economic recovery would be a long haul and ADB wants the government to clear projects quickly and boost manufacturing, beside structural reforms. For 2015-16, it projects growth at six per cent.

(Source: Times of India)

Carmakers like Hyundai, Mahindra & Mahindra, Tata, post muted sales despite duty cuts

Car sales in India declined for the second straight year, with March sales also ending in the negative zone. Two factors impacted the passenger car sales last year. One, the growth of the per capita disposable income over growth of inflation was negligible or negative. Two, high inflation, resulting in a drop in domestic saving rate.

Hyundai Motor India, Mahindra & Mahindra (M&M), Tata Motors, Toyota and Volkswagen India posted muted sales. The notable exceptions were Honda Car India, Nissan Motor and Ford Motors, which posted higher growth on the back of their new launches — the Amaze sedan, Go hatchback and EcoSport SUV, respectively.

The cut in excise duty by the government, which was expected to revive the industry, didn't work. Auto company executives said that customers stayed away on high borrowing cost and inflationary pressures, as car sales dropped in the range of 5% in FY14.

(Source: Economic Times, Business Standard)

Steelmakers set to lower prices as rupee gains

Domestic primary steel producers have begun cutting prices, with the lead taken by JSW and Essar. This is taking place after the appreciation of the rupee, which has made the cost of imported raw material, especially coking coal and iron ore, fall and the threat of import of cheap steels from China emerge due to depreciation of the yuan.

JSW and Essar have cut prices of select products. Tata Steel has decided to raise those for rebars. State-owned Steel Authority of India (SAIL) has kept these unchanged. But the price cuts will only affect mainly commodity-grade steel products and not value-added ones. At Delhi-based Jindal Steel and Power, a decision is still awaited. Rashtriya Ispat Nigam could not be asked.

Steel producers have been raising prices for three months, citing rising input costs. In February, they justified their stance by saying the price levels after revision were the same as in 2012.

(Source: Business Standard, Economic Times)

Centre seeks proposals for mega food parks from Odisha

Following the amendment of guidelines of Mega Food Park Scheme, Union Ministry of Food Processing Industries (MoFPI) has asked the Odisha government to send proposals for developing new mega food parks in the state.

MoFPI has approved a total of 40 mega food park projects in as many as 23 states which are in various stages of implementation. Under the revised guidelines, the state governments/state government entities/cooperatives have been allowed to take up mega food park projects without the requirement of forming a Special Purpose Vehicle (SPV) and are exempted from setting up a processing unit in the park.

In the state, two mega food parks - Huma Coastal Mega Food Park in Ganjam district and MITS Mega Food Park at Rayagada were approved by the ministry.

(Source: Business Standard)

Thaiindia.net team

2 April 2014