PM says economic growth issue of national security
Politicians should treat India's economic growth as a national security issue, Prime Minister Manmohan Singh said on Wednesday, warning a lack of consensus is holding back Asia's third-largest economy as it tries to drag millions from poverty.
Singh was more optimistic on the economy than many private economists, predicting growth of more than 6.5 % this year, but he said more was needed to improve livelihoods.
India is struggling with a slump in foreign investment and industrial output, gaping fiscal and current account deficits, high inflation and weakness in the rupee currency. These problems have been made worse by a drought.
(Sources: Reuters India, the Hindu, Times of India, NDTV, Zeenews)
India's diesel price dilemma - making the rich pay more
With petrol costing on average 42 % more than diesel, there has been a jump in the share of cars powered by the subsidised fuel, while in the countryside only wealthy farmers who can afford a tractor or water pump benefit from the government's openhandedness.
Government data shows diesel accounts for nearly 44 % of fuel consumption in Asia's third-largest oil importer compared with 35 % nine years ago.
While trucks and buses still consume the bulk of diesel, analysts estimate that consumption by cars, generating sets, industry and mobile telecom towers has gone up to about 40 % from 30 % in 2008/09, according to estimates by a government panel.
Diesel cars make up about 40 % of new sales in India, from less than 20 % a few years ago, data from an industry body shows.
(Sources: Reuters India, Moneycontrol, NASDAQ, NDTV, IBNLive)
‘India can attract more FDI with stability, predictability’
India will be able to attract much larger volumes of foreign direct investment (FDI) if conditions in the country are stable and predictable, Joao Cravinho, European Union’s ambassador to India, said on Tuesday.
Speaking to Indian industrialists on the crisis in the euro zone and its impact on investments in India, Cravinho noted that despite the fiscal problems affecting some members of the European Union, the inflow of money into India had not gone down.
(Sources: Livemint, Economic Times, Zeenews, Hindu Business Line)
Hotels may be hit by bad monsoon, rising costs, economic uncertainty
The Indian hospitality sector is bracing for a tough season with the slump in economic growth and a poor monsoon raising costs, while travellers are cutting budgets, said analysts and industry veterans.
With costs and low occupancy having eroded hotel profitability in the three months ended June; the dampening effect is likely to persist into the current quarter (July-Sep) and next quarter (Oct-Dec) period, traditionally the busy season for the Indian hotel business.
(Sources: Livemint, Economic Times, Indiatimes, Zeenews, Hindu Business Line)
Sales growth plunges to single-digit across sectors
India Inc’s fastest growing sectors have finally succumbed to a single-minded focus on inflation and the economic slowdown in China, Europe and America. Sales growth rates have plunged to a multi-quarter low for key sectors such as refineries, capital goods, cement, chemicals, construction, consumer durables, fertilisers, infrastructure, metals, power, realty, steel and telecom.
Forex borrowings, hedging of exports and rupee depreciation have hurt sectors such as agro chemicals, automobile ancillaries, automobiles, oil marketing companies, refineries, metals, pharmaceuticals, power, steel and telecom.
(Sources: Business Standard, Worldnews, Moneycontrol, Hindu Business Line)
Lack of politico-administrative support hurts FDI flow in power: NTPC
Country's largest electricity producer NTPC has cited absence of "politico-administrative support" in containing commercial losses as a factor for foreign investors' lack of confidence in Indian power sector.
Fragile financial health of state utilities, uncertainty of fuel availability, capped regulatory returns on equity coupled with delays in land, forest and environmental clearances which lead to cost escalation are also impacting FDI (Foreign Direct Investment) into the sector.
The share of power sector in FDI as compared to other sectors is quite low, inspite of the fact that 100 % foreign equity is permitted in generation, transmission, distribution and trading.
During April 2000 - March 2012 period, power sector attracted FDI equity inflow of just about 4 %, according to the report. At the same time, service sector attracted 19 % FDI inflows.
(Sources: Economic Times, Indiatimes, Hindustan Times, Financial Express)
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