Daily Economic News - 17 April 2014

12 Government ports see 2% rise in traffic growth

12 government-owned major ports registering a 1.78 per cent growth in traffic for the period between April 2013 and March 2014. This growth has come after two years of falling cargo volumes. This is an encouraging sign for ports and private operators to invest in building capacities. The country's total container capacity currently is over 11 million TEUs (twenty foot equal units)

(Source: Business Standard)

Inflows via P-notes shoot up

In February, investments through P-notes was at a three-month high and the number is set to grow further in March. FIIs invested about Rs 20,000 crore ($3.2 billion) in Indian equities, while total investment during the financial year was Rs 79,000 crore. The notional value of investment of P-notes was Rs 1.73 lakh crore in February, the most in three months. The portion of P-notes of the total foreign assets in the country was 11.7 per cent. India right now is a more attractive market than many others for the investment funds earmarked for emerging economies.

(Source: Business Standard)

Rupee sees worst fall since late Jan

The currency ended at 60.39, compared with the previous close of 60.23. The Sensex and the Nifty fell to their lowest close in two and-a-half weeks, as software stocks slumped on caution ahead of India's top information technology services provider Tata Consultancy Services' (TCS') earnings report later in the day. Foreign investors, the primary drivers behind the stock market gains, sold their investments which affected the rupee.

(Source: The Hindu)

Government raises import tariff value on gold, silver

The government hiked the import tariff value on gold and silver to $431 per 10g, $646 a kg, from $421 and 644 respectively, taking firm global cues. Gold is the second largest import item for India after petroleum and the government had taken several measures like raising the import duty to 10 per cent on the metal and also made it mandatory for traders to export 20 per cent of the imported gold, to curb gold shipments to address the high current account deficit.
However, the Commerce and Industry Ministry is pitching for easing of the gold import restrictions to boost gems and jewellery exports, which declined 8.82 per cent in 2013-14 to $39.52 billion.

(Source: Business Standard)

Chennai-Bangalore Industrial Corridor plan by March next

The comprehensive integrated master plan for development of Chennai-Bangalore Industrial Corridor (CBIC) will be ready by March 2015. the number of Japanese companies in India has increased by four times in recent times, of which 60 per cent pertained to manufacturing sector.

(Source: The Hindu)

Slump in automobile market claims 2 lakh jobs: SIAM

The Indian auto industry employs around 19 million direct and indirect workers. The industry is already falling behind its target on the job front as it was estimated to employ more than 25 million workers by 2016 under the 10-year Auto Mission Plan of the government. A consistent fall in demand and sales for the past two years is likely to create a huge employment gap. Car sales in India fell for the second consecutive fiscal ended March 2014 with a 4.65% drop as the auto industry continued to struggle in a sluggish economy. Besides the decade's steepest decline in car sales, heavy trucks and buses continued its negative sales streak for the past 25 months. 

(Source: The Economic Times)

Green norms for projects spread over 5 acres/ 20000 square metres may hit companies

In early 2013, the environment ministry had made it mandatory to obtain a prior environmental clearance for all investment projects involving a construction of over 20,000 square metres or five acres of land. This has already scuttled and delayed a few projects of auto and power sector majors, who have been told to get environmental nods for building or expanding industrial facilities like factories and warehouses — a process that takes at least 18 months in a best-case scenario.
Some industrial clusters where units are hit by this directive as well as major auto and power generation equipment makers have already approached environment ministry mandarins to set the record straight about the environmental impact assessment norms so that industrial investments can fructify sooner.

(Source: Financial Express)

India mulls legislation to meet technical roadblocks in trade

Despite the crucial role that standards play in facilitating transactions, India does not have a standards-driven culture. This has implications for both domestic and international sales. India is faced with strong barriers to trade, the commerce ministry is preparing itself to meet the various sanitary and phytosanitary measures (SPS) and technical barriers to trade (TBT) requirements of its various trading partners.
(Source: Financial Express)

Thaiindia.net Team

17 April 2014