12th Plan GDP growth target likely to be lowered to 8.5%
The Planning Commission is likely to scale down the targets for average annual industrial and services growth, which, in turn is likely to yield 8.5 % overall economic expansion for the 12th Five-Year Plan (2012-13 to 2016-17), down from 9 % pegged in the approach paper.
The draft final document for the 12th Five-Year Plan has lowered the average annual industrial growth target to 9 % from 9.6 % and services sector to 9.5 % from 10 % estimated earlier.
However, farm growth is retained at 4 % a year on an average in the five-year period, beginning the current fiscal. The draft final document has been sent to the ministries for feedback.
(Sources: Business Standard, Zeenews, Hindu Business Line, Indian Express)
Retail price inflation down at 9.86%
In sync with its wholesale price counterpart, the retail-price inflation declined to 9.86 % in July from 9.93 % in June, on the back of easing of fuel and light inflation. However, food inflation ticked up further.
Nomura Financial Advisory and Securities (India) opined the moderation in July CPI inflation, like the fall in July WPI inflation, might not be sustainable. This is because food prices might rise because of poor rainfall and fuel inflation remaining suppressed due to an incomplete pass-through of fuel prices to end users, besides other factors.
(Sources: Business Standard, Times of India, IBNLive, Hindustan Times, Livemint)
IKEA will not be allowed any relaxation in FDI rules if it affects local industries: MSME Minister Vayalar Ravi
IKEA will not be allowed any relaxation in foreign direct investment (FDI) rules if it affects local small units, Minister for Micro, Small and Medium Enterprises (MSMEs), Vayalar Ravi, has warned.
IKEA has applied for setting up fully-owned entity in India with investment of an approximate $ 1.89 billion. But IKEA wants relaxation in the condition which stipulates that retail ventures in which foreign firms have more than 51% stake have to source at least 30% of merchandise from Indian MSMEs.
(Sources: Economic Times, Indiatimes, NDTV, Hindustan Times, Zeenews)
‘Gold imports seen down 40% in Sept-Dec’
India’s gold imports during peak demand season of September-December are likely to fall 40% year-on-year to 200 tonnes due to a weak monsoon, fewer wedding dates and near-record prices, the head of India’s leading trade body said.
India is facing its second drought in just four years, which can drive up food prices and erode spending power, crimping demand for goods from tractors to gold. Investment and jewellery demand from Indian consumers plummeted 38% to 181.3 tonnes in the second quarter of 2012. Buying was hit by a hike in import duties and record-high local prices due to a weak rupee.
(Sources: Livemint, Moneycontrol, Business Today, Economic Times)
'Probiotic market to grow at 11%'
The domestic probiotic market is expected to grow at 11 % till 2016, mainly on the back of awareness campaigns promoting its benefits, says an industry report.
"The domestic probiotic market, which is comparatively nascent now, valued at USD 12 million in 2011, is expected to witness a compound annual growth rate (CAGR) of 11 % by 2016," the research report by Frost & Sullivan said.
"The future of probiotic foods is bright, as Asian consumers perceive these products to be indispensable in nature, specifically for enhancing health and wellness," the report said. (Sources: Financial Express, Indian Express, Sahara Samay, IBNLive)
ONGC to spend $ 2.70 billion to drill 480 wells this fiscal
Oil and Natural Gas Corp. Ltd (ONGC) will spend about $ 2.70 billion to drill 480 wells in 2012-13, the most in the past 17 years, as India’s biggest oil and gas explorer battles concern over its production capabilities and diminishing yields at its ageing oil fields.
Improvement in ONGC’s production is crucial for the world’s fourth largest energy consuming nation, which imports as much as 80% of its crude oil and 25% of its natural gas requirements.
India’s energy demand is expected to more than double by 2035, from less than 700 million tonnes of oil equivalent today, to around 1,500 million tonnes, according to India’s oil ministry’s estimates.
(Sources: Livemint. Times of India, Indiatimes, IBNLive, Zeenews)
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