GDP expected to remain below 6% in 2012-13: CII
The country's economic growth in the current fiscal is expected to remain below 6 %, possibly due to low confidence levels in the industry, a survey today said.
"A majority of CEOs remain pessimistic about the outlook for the economy in the current year and expect only a moderate recovery in the forthcoming year," CII said in its survey.
The survey indicated that the GDP growth during 2012-13 is expected to remain below 6 %, it said.
Over half of the 75 CEOs who participated in the survey expect the average rate of inflation in this financial year to be in the range of 7-8 %.
About 75 % of the respondents do not expect economic reforms - introduction of GST, FDI in multi-brand retail and FDI cap in insurance and pension sectors - to move forward given that general elections are coming up in 2014.
(Sources: Business Standard, Hindustan Times, Hindu Business Line, the Tribune)
Economy slipping into jobless de-growth: FICCI
The government has been accused of ushering the economy into a period of jobless growth. A business chamber survey has painted a gloomier picture — one of “jobless de-growth”.
The survey found that employment opportunities have turned worse for the first time since the US financial services icon Lehman Brothers collapsed.
Most analysts had predicted the economy to perform worse sequentially. The survey said India Inc’s confidence has taken a beating for the first quarter of this fiscal.
The Business Confidence Index fell to a three-year low of 51.8 points for the quarter, way down from 60.3 in the previous quarter.
(Sources: Business Standard, Bloomberg, Moneycontrol, Indiatimes)
Manufacturing growth eases to nine-month low in August
Growth in India's manufacturing sector eased to a nine-month low in August as export orders fell for a second month, underscoring the risks to the wider economy from Europe's debt crisis, a business survey showed on Monday.
Sixteen states in northern India, home to almost half of the country's 1.2 billion people, fell into darkness last month as power grids collapsed, disrupting businesses and economic activity.
Any slowing in the manufacturing sector, which accounts for a little over 15% of India's gross domestic product, does not bode well for the overall economy, especially as this sector has been the biggest drag on growth.
The Indian economy grew 5.5% in the quarter to June, languishing near its slowest pace of growth in almost three years, data showed on Friday.
(Sources: BBC News, Hindustan Times, Moneycontrol, Hindu Business Line, Business Today)
M. Stanley cuts India growth forecast to 5.1 pct in FY13
Morgan Stanley cut India's economic growth forecast to 5.1 % on Monday, the lowest among most private forecasters for the 2012/13 fiscal year, citing a combination of weak external demand, low private investment and poor government finances.
Economists of Citi, CLSA, CRISIL have also scaled back India's GDP forecast last month. In July, RBI revised GDP growth projection to 6.5 percent for 2012/13 from 7.3 percent estimated in April.
(Sources: Business Standard, Reuters India, IBNLive, Worldnews)
Supreme Court lifts ban on 18 iron ore mines in Karnataka
The Supreme Court has allowed 18 mines to resume iron ore mining in Karnataka state, the country's second-largest supplier, after a suspension of over a year on environment concerns, Justice Aftab Alam and Justice Ranjana Prakash Desai said on Monday.
India used to produce about 200 million tonnes a year of iron ore and exported about half of that, but clamp downs on illegal mining and New Delhi's desire to keep supplies for domestic steel mills have slashed that figure.
The output from the re-started mines will be in addition to state-run NMDC's 1 million tonnes per month, which was cleared by the Supreme Court for production from August 6, 2011.
(Sources: Business Standard, Reuters, CNBC, Economic Times, IBNLive)
Diamond industry of Surat witnesses sudden spurt in demand
After a lull of almost two months, the diamond industry of Surat is witnessing a sudden spurt in demand. Importers from the US, UAE, China and Europe have started placing orders with the Indian diamond trade. The industry hopes that September will be a better month. But Gem and Jewellery Export Promotion Council (GJEPC) feels that even though there is a positive swing, diamond exports in the current fiscal will be less by 15-20 % compared to FY12.
(Sources: Economic Times, Indiatimes, Worldnews, Yahoo, IBNLive)
FDI implementation will be a welcome step: Kishore Biyani
With the government still not decided about allowing foreign direct investment (FDI) in multi-brand retail, Future Group founder and chief executive officer Kishore Biyani has said its implementation will be a welcome step, as it would provide much-needed capital.
The central government had last year allowed 51 % FDI in multi-brand retail, but the same could not be implemented in the face of strong opposition from UPA allies including Trinamool Congress, and several state governments.
Biyani further said that the Goods and Services Tax (GST), when implemented, will also be a major game changer for the industry.
Today small retailers have bigger advantage as the tax they pay is different.
(Sources: Economic Times, Indiatimes, the Hindu, Worldnews, Times of India)
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