Daily Economic News - 22 April 2014

TCS and Mitsubishi to merge Japanese IT subsidiaries
Tata Consultancy Services (TCS), on Monday, announced that it signed definitive agreements with Mitsubishi Corporation (MC) to merge its subsidiary TCS Japan with MC’s 100 per cent IT subsidiary IT Frontier Corporation (ITF) and Nippon TCS Solution Centre to create a new single entity. While TCS will hold 51 per cent stake in the entity, Mitsubishi will hold 49 per cent. The entity will be operational from July, 2014.
Japan is the world’s second largest IT services market. TCS Japan’s revenues are around $100 million, and it set up a 60:40 partnership with Mitsubishi for an onsite development centre two years ago.
(Source: The Hindu)

Liquidity infusion measures hit by currency leakages
The RBI's liquidity accommodation to banks through various routes has been an unprecedented R1.5-2 lakh crore over the last four years even as money market rates have hardened. RBI data show that currency with the public grew 9.4% in 2013-14 to R13 lakh crore. This is on the back of a growth of 11.6% in the previous year and 12.2% in 2011-12. During this year, RBI, on an average, has been pumping in R60,000 crore into banks through its daily repo auctions. Over and above these, the central bank infused R16,000 crore through bond purchases and provided nearly R1 lakh crore through term repos of various tenures.
As on April 11, the currency with the public had grown 9% year-on-year. The high double-digit retail inflation over the past years has led to an increase in currency holdings by the public. As investments in financial assets, especially bank deposits, fell, those in physical assets such as real estate and gold that traditionally have a high cash component rose.

(Source: The Financial Express)

India may drag US to WTO in case of unilateral IPR action
India will drag the US to the WTO if Washington decides to put New Delhi in the Priority Foreign Country list for intellectual property rights (IPR), which could lead to trade curbs on domestic firms. US industry, particularly the pharmaceuticals sector, and trade lobbies have been putting pressure on their government to place India under the Priority Foreign Country list for IPR.
Under the US Trade Act, a Priority Foreign Country is the worst classification given to those that deny adequate and effective protection of IPR or fair and equitable market access to US entities relying on IPR protection. The US Trade Representative is scheduled to come out with a report on April 30 on Special 301, which also talks about the priority foreign country list.
(Source: The Financial Express)

                                                                                       Thaiindianet. Team

22 April 2014