No case for lowering India's credit rating: C Rangarajan, PMEAC
Prime Minister's key economic advisor has said that there is no case for lowering India's credit rating and the global agencies need to look at the international scenario before taking any rating action.
Credit rating agencies like Standard & Poor's have threatened to lower India's credit rating in 24 months to 'junk' grade, if it failed to carry out requisite economic reforms.
In the past few weeks, the government has taken a slew of reform measures, including opening up the retail, insurance, pension, information and broadcasting sector to foreign investment.
(Sources: Economic Times, Business Standard, Hindustan Times, NDTV, Worldnews)
Chidambaram sees 2012 GDP growth of 5.5-6.0 pct
India's economy should expand by 5.5 % to 6.0 % this year and return to 7 % growth in 2013, Finance Minister P. Chidambaram told Reuters on Sunday, although he said inflation was at an "unacceptable" level.
The International Monetary Fund last month slashed its 2012 economic growth forecast for India to 4.9 % from 6.1 % previously. But Chidambaram was more optimistic and said India had the wherewithal to reach its economic potential.
(Sources: Reuters India, Livemint, Business Standard, Yahoo News, i4u)
Dabur to spin off retail business
Fast moving consumer goods (FMCG) major Dabur India will look for strategic investors for its retail subsidiary, H&B Stores, which operates New U stores across India.
There are 50 New U stores across the country, and Dabur plans to double it to 100 over the next three years. Domestic business contributes about 70 % of the company’s total business.
New U is a retail chain that sells cosmetics, skin care, hair care, fragrances, herbal care, beauty implements and accessories, men and children toiletries, health foods and ayurvedic products of Dabur’s own private labels and other domestic and international brands. It also sells products online.
(Sources: Business Standard, Livemint, the Financial Herald, i4u, Zeenews)
Scooter sales jump 21%, companies line up $ 110 million expansion
Scooters have defied a slowdown in the Indian market. One of the smallest segments in two wheelers, its robust growth has given a fresh impetus to two-wheeler companies.
Scooter sales in the domestic market grew 21% in the first six months of the fiscal even as motorcycles declined 0.79%.
The strong demand, boosted by the growing urban infrastructure and rising number of women owning scooters, has encouraged companies to hike capacities to tap this growth which has been rare across the Indian automotive market.
(Sources: Economic Times, Indiatimes, Worldnews, Moneycontrol, Hindu Business Line)
Welspun Energy to invest $ 184 million on 100 MW solar project in Chhattisgarh
Welspun Energy today said it will invest $ 184 million in setting up a 100 mega-watt solar power project in Chhattisgarh.
The state government will facilitate the approvals, land acquisition, registration and clearances for the project. Welspun is developing more than 250 MW solar and 800 MW wind capacity in Rajasthan, Madhya Pradesh and Karnataka. It plans to commission 1.7 GW of solar and wind power projects within the next three years.
(Sources: Economic Times, Indiatimes, Financial Express, Zeenews, Indian Express)
Services growth weakens to a 6-month low in October
India’s services sector grew at its slowest pace in six months during October as weakness in the United States and Europe hurt orders and forced firms to hire fewer workers, a survey showed on Monday, suggesting the worst of the economic slump is not over yet.
Services make up nearly 60% of India’s economic output and any sign of deceleration darkens the outlook for Asia’s third-largest economy, as the sector has been the lone bright spot through the downturn.
The HSBC Purchasing Managers’ Index for the services sector, based on a survey of around 400 companies, fell to 53.8 in October from September’s seven-month high of 55.8.
(Sources: Economic Times, Indiatimes, Reuters India, Moneycontrol, IBNLive)
Economic Section
Royal Thai Embassy