Judging the impact of a junk-rated India: not as bad as it looks
As India faces the prospect of being the first BRICS country to lose its investment-grade credit rating, investors have already delivered their verdict: to them, the country already trades at "junk", which should temper any ensuing market reaction.
Credit default swaps suggest India is already a bigger investment risk than emerging markets such as Vietnam and more than double the risk of fellow BRICS Brazil, Russia, China, and South Africa.
The key concern is the fiscal deficit, which overshot a target of 4.6 % of GDP by 1.2 % points in 2011/12 and is expected to swell to 6 % of GDP in the current year to March 2013.
(Sources: Reuters India, Business Standard, NDTV, Moneycontrol, CNBC)
Decision on FDI in retail & aviation soon, says Anand Sharma
Commerce and industry minister Anand Sharma indicated on Thursday that the government may announce some decisions on FDI in multi-brand retail and civil aviation, saying all consultations are over and an announcement is likely soon.
The government decided to defer its decision allowing 51% FDI in multi-brand retail after widespread protests and resentment among some allies in the UPA. A decision on 49% investment in Indian carriers by foreign airlines is also stuck because of opposition from Trinamool Congress.
(Sources: Economic Times, Indiatimes, Financial Express, NDTV, Moneycontrol)
Government to soon announce steps to boost investments: Anand Sharma
The government is likely to announce major decisions in the next three weeks to boost investments and revive economic growth, Commerce and Industry Minister Anand Sharma said today.
He was speaking to reporters after holding a meeting with industry leaders from CII and FICCI.
Sharma said the industry has raised issues related to cost of credit, reduction in capacity addition and matters related with foreign direct investment.
Worsening economic situation has pulled down the index of industrial production by 1.8 % in June, third fall in four months. The Minister said the industry has also raised problems related with land acquisition.
(Sources: Economic Times, Business Standard, Zeenews, Moneycontrol, the Hindu)
Electrosteel Steels to market its products from September12
Electrosteel Steels Limited (ESL), which has set up a greenfield steel and plant in Jharkhand, plans to sell finished products like pig iron (steel and foundry grade) and TMT bars in the market from September, 2012. Initially, ESL plans to focus on the eastern region for marketing its products and gradually increase its marketing base all across the country.
(Sources: Economic Times, Hindu Business Line, NDTV, Indiatimes)
Assocham wants GAAR deferred by another 5 years
The chorus is growing within the India Inc seeking further deferment of the controversial General Anti Avoidance Rules. Industry body Assocham has also asked the government to postpone implementation of these rules by five years and withdraw the retrospective amendment in tax laws making overseas indirect transfers taxable in India.
Industry body CII has already asked the government to defer GAAR to 2018.
This is the time to restore the fading industrial confidence and encourage larger investments both by the foreign entrepreneurs and domestic business houses, said by Rajkumar Dhoot, President of Assocham.
(Sources: Economic Times, Zeenews, Times of India, Indiatimes, Hindu Business Line)
Maharashtra power distribution co to raise tariffs
The Maharashtra State Electricity Distribution Company will raise power tariffs in the state by 16.48 % due to high costs and rising fuel prices, the state's electricity commission said on Thursday.
The revised tariffs will come into effect retroactively from August 1.
Maharashtra joins a growing number of state distributors including those in Tamil Nadu, Delhi and Punjab, that raised tariffs in 2012.
The current increase has been approved only for the Maharashtra State Electricity Distribution Company, which distributes power to most of the state, excluding Mumbai city.
(Sources: Reuters India, IBNLive, Moneycontrol, Hindu Business Line, Economic Times)
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