Govt to push retail FDI hard to wary states
Commerce minister Anand Sharma plans to meet state chief ministers from next week on opening of multi-brand retail to foreign firms, marking fresh efforts by the government to push the stalled reform.
The government had proposed late last year to allow foreign direct investment in multi-brand retail, but had to backtrack due to widespread opposition from traders and political parties.
The Cabinet had approved infusion of up to 51% FDI in multi-brand retail in November, drawing cheer from global retailers such as Walmart and Carrefour, but the decision has not yet been implemented following opposition from small retailers, opposition parties and state governments, including those of Kerala, West Bengal and Bihar.
(Sources: Economic Times, Hindu Business Line, Worldnews, Zeenews)
Reliance Brands to bring in British fashion brand Superdry
British fashion brand Superdry, worn by celebrities such as David Beckham and Pippa Middleton, is coming to India through a tie-up with Reliance Brands. Reliance Brands, a unit of Mukesh Ambani-controlled Reliance Industries, has signed a 20-year licensee agreement the UK's SuperGroup, owners of the premium-to-luxury Superdry label.
Reliance Brands currently operates 53 stores for a dozen brands including Diesel, Hamleys, Ermenegildo Zegna, Kenneth Cole and Timberland. The company is on an expansion spree, aggressively signing new brands and having plans to open 40 stores this year. This calendar alone it has partnered over six companies including Iconix Brand Group and Brooks Brothers.
(Sources: Economic Times, Hindu Business Line, Worldnews, Indiatimes)
Indian tyre industry grows 5.3% in 2011-12: ICRA
The Indian tyre industry grew by 5.3% in terms of volumes despite economic slowdown and high input costs in 2011-12, according to rating agency ICRA.
The numbers reflect a decline in replacement demand in terms of volume, subdued OEM demand growth and a healthy export growth. Revenues of the tyre companies recorded a robust 28% growth largely on account of over 20% hike in realizations and the sharp depreciation in rupee which drove export revenues by 46%, said ICRA.
Inability to completely neutralise cost escalations resulted in contraction of operating margins of several players like MRF, Apollo, Goodyear and JK Tyres, by around 180 bps, according to ICRA.
(Sources: Economic Times, Indiatimes, Moneycontrol, Worldnews)
FDI inflows dip on gloomy global economic scenario
Along with poor trade numbers and an appreciating dollar, the rupee has seen one of its worst periods of decline and is down over 20% compared to a year ago.
During May, the latest month for which data is currently available, net FDI fell over 56% to $1.4 billion, from $3.2 billion a year ago as inflows into the country slumped amid a worsening global economic environment and the wary mood among the investing community on India.
Ever since the budget, Indian companies as well as international investors have been blaming the government for a series of steps that have hit the investors confidence.
(Sources: Economic Times, Indiatimes, Financial Express, Worldnews)
Government may raise diesel, cooking gas and kerosene prices after presidential polls
The government plans to raise diesel, cooking gas and kerosene prices after the presidential polls but petrol will remain stable this month, a senior oil ministry official said.
According to government officials, diesel prices could rise after presidential election on Jul 19 or after appointment of the new vice-president. Election for vice-president is on Aug 7.
The government controls retail prices of diesel, kerosene and cooking gas but petrol rates are theoretically market-determined because of oil ministry's tacit control over its pricing through state oil firms.
(Sources: Economic Times, IBNLive, Indiatimes, Daily Pioneer, Outlook)
Monsoon revives, drought fears diminish
India's monsoon rains were above average in the past week for the first time in the current season, the weather office said, as the downpours resumed after a worrying fortnight-long pause over the central part of the country.
The annual rains are crucial for farm output and economic growth as about 55% of the South Asian nation's arable land is rain-fed. The farm sector accounts for about 15% of a nearly $2-trillion economy, Asia's third-biggest.
(Sources: Business Standard, Reuters India, IBNLive, Worldnews)
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