Daily Economic News - 19 August 2014

Exports poised to cross $350 bn target this fiscal: FIEO
Federation of Indian Export Organisations (Fieo) today said the country's exports can surpass the USD 350-billion target this fiscal as growth in the manufacturing sector is expected to pick up pace. Global trade scenario is improving with positive development in the US, EU and emerging economies and in coming months exports should reflect these developments. In July, exports growth slipped to 7.33 percent at $27.72 billion on annual basis, which was slower than previous months, while imports rose 4.25 percent to $39.95 billion. Trade deficit marginally narrowed to $12.22 billion from $12.49 billion a year ago.
(Source: Economic Times)

FY15 trade deficit likely at $142 bn; current account deficit at $39.3 bn: Citi
India's trade deficit for this fiscal year is likely to be around $142 billion, and the current account deficit for this period is expected to be contained at $39.3 billion or 1.9 per cent of the GDP, a Citigroup research report says. Continued restrictions on gold imports and strong exports growth helped in keeping the monthly trade deficit of the country stable at an average of $11.6 billion during the April-July period. The country's trade deficit in the last fiscal (FY2014) declined to $138.6 billion from $190.3 billion in FY13.
(Source: Economic Times)

Gujarat proposal may pose hurdle to Centre’s GST rollout
The Gujarat government has asked for the right to collect central sales tax in perpetuity, potentially crippling the rollout of the nationwide Goods and Services Tax (GST). Gujarat has told the Centre that it should be allowed to deduct the 2 per cent tax levied on all goods that leave state borders to be sold elsewhere. For instance, cars manufactured at Maruti and Tata factories in Sanand, but sold in Delhi. Currently, the Centre collects this inter-state tax on behalf of all the states and distributes it among them. The GST structure which is being finalised is meant to abolish this origin-based tax for a destination-based tax. To make the switchover easy, all states are supposed to get a compensation amount over the next few years. In last year’s budget, the Centre had provided Rs 9,300 crore as compensation to states, though only Rs 1,940 crore was disbursed.
(Source: The Financial Express)

Sensex, Nifty hit fresh record highs for a second day
The 30-share bellwether BSE Sensex gained as much as 0.53%, or 139.71 points, to 26,530.67 points. The National Stock Exchange’s (NSE’s) 50-share Nifty rose as much as 0.56%, or 42.2 points, to 7,918.55 points. Markets extended gains on Tuesday for the sixth straight session after Prime Minister Narendra Modi’s Independence Day speech on Friday made all the right noises about hot-button issues such as jobs, manufacturing, and skills development.
All the sectoral indices were trading higher. The BSE metal and capital goods indices were the top sectoral gainers, up 1.3% each. The power, oil and gas and realty indices were up 0.9%, 0.8% and 0.7%, respectively. The consumer durable index was up 0.6%, while the Bankex and auto indices were up 0.4% each.
Since the beginning of this year, the Sensex has gained 25.03%, while foreign institutional investors have bought $12.29 billion from local equity markets.
(Source: Livemint)

Thaiindianet. Team

19 August 2014