Daily Economic News - 7 May 2014

India acts to repair reputation as drugs exporter

New Delhi has invited global regulators - including the US Food and Drug Administration (FDA) - to visit Indian production units to get first-hand evidence of measures taken to ensure the quality of locally manufactured generics. The move seeks to address U.S. quality concerns that have prompted the FDA to slap a slew of sanctions on Indian generics, choking off growth in drug exports. Worries about quality control in India's $15 billion drug industry have come to the fore in the past year as plants run by Ranbaxy Laboratories Ltd and rival Wockhardt Ltd have been barred from sending drugs to the United States after falling short of the FDA's "good manufacturing practices". Exports grew by just 2.6 percent in the 2013/14 fiscal year ending in March to $15.04 billion. Two years ago, the growth rate was 23 percent. Curbs by the FDA have encouraged even regulators from Kenya and Ghana to seek plant audits.

(Source: The Financial Express)

Govt may pump Rs 20k cr into PSBs

The Union government might infuse about Rs 20,000 crore in public sector banks (PSBs) in the current financial year, against Rs 11,200 crore provided in the interim Budget.PSBs will need Rs 8 lakh crore over the next five years to fully meet the Basel-III norms-the global standard to improve regulation, supervision and risk management - by March 2019. The capital will be needed to expand the loan book and provide for NPAs, which rose to 5.17 per cent (gross) of their advances at end-December 2013, against 4.18 per cent a year before, and were expected to be around 12 per cent including the restructured assets.

(Source: Business Standard)

Gujarat land acquisition model is the best: Commerce min

The report on “Best Practices to Improve the Business Environment Across States/UTs in India”, prepared by consultancy firm Accenture on behalf of the Department of Industrial Policy and Promotion, also talks about the best practices in Karnataka and Maharashtra on issues related to labour management and trade and investment facilitation system.

Most investors cite difficulty in doing business as the biggest concern in India. The country slipped three positions to 134th in the World Bank's Ease of Doing Business index in 2013. Maharashtra tops in providing single-window clearances for industries while Karnataka has the best practice in managing indirect taxes. In 2009, it used to take 42 days to transfer a property title alone and another 45-50 days to get building permit approval. 

(Source: Business Standard)

GDP could recover to 5.7% in 2015, says OECD

 India's economy is expected to gather momentum as investments pick up owing to the combined impact of push by the Cabinet Committee on Investment (CCI) and end of political uncertainty after the ongoing general elections, the Organization for Economic Cooperation and Development (OECD) said. On the negative side, failure to halt the rise in non-performing loans could derail the pickup in investment," the report said.  The report said fiscal consolidation would help improve business environment while rising incomes and lower inflation should boost private consumption, but added that India's exports were facing stiff competition. 

(Source: The Economic Times)

After 4 months of buying, FIIs turn net sellers in Indian debt market

Foreign institutional investors turned net sellers in the Indian debt market in April, snapping four months of buying spree as they hold back to reinvest funds once the new government assumes power. FIIs sold debt instruments worth Rs 9,184 crore in April.

In its first bi-monthly policy on April 1, the Reserve Bank of India had barred FIIs from buying in Treasury bills, short-term government debt securities, usually with 91-182-364 days' maturities, a move primarily aimed at reducing the country's dependence on hot money.

(Source: The Economic Times)

 
Thaiindianet. Team

7 May 2014