Thailand eyes investment from India
Thailand, which gets the highest number of tourists from India, is now eyeing the country for greenfield investment by offering manufacturers hefty tax sops and other incentives.
Teams from Thailand's Board of Investment (BOI) are touring the country to call on industrialists, and this agency will be opening an office in Mumbai in the coming months. This will be the 13th overseas office of BOI.
The team, including director of BOI Kanakporn Chotipal, was in Nagpur on a two-day visit to find prospects for investment in agro-processing industries from this region. It met promoters of Spacewood Furniture, a city-based firm engaged in making modular kitchens.
A visit to Indo Rama Synthetics unit at Butibori is also planned. One of this company's promoters already has a sizeable presence in Thailand. The country is looking for two-way investment, said Nageen Arora, Indian consultant for the Thai government.
(Sources: Times of India, i4u, IBNLive, Business Standard, Financial Express)
India at high risk from European economic crisis: Maplecroft
India and other key emerging markets have been categorised as having high exposure to Europe's economic woes by a risk analysis firm, Maplecroft.
The index includes 169 countries outside of the euro zone and measures trade and foreign direct investment with the euro area; bank claims of euro-zone countries; and domestic economic indicators such as fiscal balance, public debt, inflation and foreign reserves.
Maplecroft concludes that the economic difficulties in the euro zone have highlighted the disadvantages of high levels of integration for member countries, and also for those economies that are integrated with one or more members, which are facing a wider exposure risk.
(Sources: Economic Times, Rediff, Yahoo, Indian Express, Financial Express)
Hero MotoCorp to invest $ 28.62 million in the Global Parts Centre in Rajasthan
Hero MotoCorp, the world's largest two wheeler manufacturer has announced setting up of Global Parts Centre (GPC) at Neemrana, Rajasthan.
Over 125 top component supplier of Hero MotoCorp from India, China, Thailand, Japan and Europe participated in the three day global conference held in Russia.
The Global Parts Centre is expected to be operational by Q3 of FY-14 and will initially employ 400 personnel.
(Sources: Economic Times, Hindu Business Line, Indiatimes, Business Standard)
India-bound FDI inflows plunge in May
Foreign direct investment (FDI) in India declined sharply for the second month in a row in May with inflows slipping to USD 1.32 billion from USD 4.66 billion in the year-ago period, reflecting the impact of slowing global economy.
Contraction in FDI will keep the balance of payments under pressure and could also impact the rupee. If the prices of commodity and oil increase globally, a weaker domestic currency will add to inflationary pressures.
The sectors which received large FDI inflows in May include services (USD 754 million), pharmaceuticals (USD 401 million), construction (USD 181 million) and power (USD 100 million).
(Sources: Indian Express, Zeenews, Worldnews, Express India, Financial Express)
Revenue growth for auto components industry to slowdown: ICRA
Revenue growth for the Indian auto components industry is expected to slowdown in 2012-13, said ICRA the rating company.
Domestic demand recovery/ sustenance will be the primary variable that will govern the automobile industry's revenue growth and profitability prospects over the short term, said ICRA.
The year 2011-12 was a mélange of events and disparate outcomes for the constituent companies in the Rs1, 600 billion Indian auto components industry.
(Sources: Economic Times, Indiatimes, Zeenews, IBNLive, Hindu Business Line)
Economic Section
Royal Thai Embassy