สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 11 มีนาคม 2556
Government plans to ease, scrap FDI sectoral limits
The government is likely to either increase or scrap the foreign direct investment (FDI) limit in sectors where it is set at less than 100 %, in an ambitious reform to encourage foreign investors to loosen their purse strings.
A comprehensive revamp of the FDI regime was debated in the run-up to the budget in the wake of mounting concerns over record-high current account deficit. In his budget speech, the finance minister had referred to the challenge of financing a current account deficit of $75 billion, and pointed out the need for foreign investment.
Current account deficit was 4.6 % of GDP in April-September 2012, well above the comfort level of Indian policymakers, and could be as high as 5 % for the year ended March 31, 2013.
(Sources: Economic Times, Indiatimes, Times of India, Business Standard, Daily India News)
The $90 bn Delhi Mumbai Industrial corridor project now underway
The $90-billion Delhi Mumbai Industrial Corridor (DMIC) project is now underway. In his budget speech, finance minister P Chidambaram announced that this project will soon build seven new cities including two smart cities, one at Dholera in Gujarat and the other at ShendraBidkin in Maharashtra.
Two additional corridors are being planned, one between Bangalore and Chennai and the other between Bangalore and Mumbai. DMIC is developing rail and bus transport systems in phase I, and light rail in the later phases. Renewable energy is expected to power a substantial portion of the new cities, with far more decentralisation than is being done in Indian cities now.
(Sources: Economic Times, Indiatimes, India Everyday, Moneycontrol, IBNLive)
Retail baron Kishore Biyani ties up with Hong Kong’s Li & Fung to float wholesale JV
Retail baron Kishore Biyani plans to launch a wholesale cash-and-carry chain in tie-up with Hong Kong-based global trading firm Li & Fung, which already holds a 26 % stake in Future Group's logistics business Future Supply Chains.
Fung Capital, a private equity firm of the Fung family, will hold a 26 % stake in the joint venture while Biyani and his family will hold the rest, Rajesh Ranavat, managing director of mergers and acquisition at Fung Management Singapore Pte Ltd, said.
Biyani confirmed the development and said the venture will open its first cash-andcarry store in Bangalore in the next three months.
(Sources: Economic Times, Indiatimes, Legal Pro News, i4u, India Retail News, Business Standard)
Mixed signals for upturn in manufacturing growth in Q4: Ficci
Giving mixed signals for upturn in the manufacturing growth, a Ficci survey today said the sector is expected to get a boost during the fourth quarter of the fiscal from steps taken by the government in the last few months, including those announced in the Budget.
It said that the number of respondents reporting higher levels of production in the fourth quarter of 2012-13 has dropped to 36%, from over 40 % in previous few quarters.
Some upturn is evident in sectors like leather, textiles, food products and cement. But some major sectors like automotive and capital goods are expected to witness sluggish growth in the current quarter.
(Sources: Business Standard, Telegraph India, DDI News, News BCC, Yahoo News)
India Inc deal value drops 80 per cent to $3 billion in February
Total Value of deals involving Indian companies plunged 80 % year-on-year in February, although experts said the momentum will gather pace soon spurred mainly by aviation, media, retail and pharma sectors.
According to leading assurance, tax and advisory firm Grant Thornton, there were 70 transactions worth $3 billion, of which merger and acquisition (M&A) deals were worth $2.7 billion, while private equity transaction amounted to $0.3 billion, in February.
This represents a drastic decline of nearly 80.58 % from the year ago period, when the deal tally stood at a whopping $15.45 billion.
(Sources: Economic Times, Indiatimes, Times of India, Worldnews, Smart Investors, Moneycontrol)
India is one of the top ten destinations for Italian investments: Daniele Mancini
Daniele Mancini, ambassador of Italy to India, has observed that according to National Exports Plan of Italy, a 150 billion-euro export market would be explored by the country and India is one of the top ten important destinations for Italian investments. While speaking about Indo-Italian trade prospects at Bharat Chamber of Commerce in Kolkata recently, Mancini stated that by 2015, trade volume with India will increase to 15 billion euros.
Infrastructure being a thrust area, Italian investors is not only exploring the first class cities of India, but also looking at Tier II and III cities in this country.
Various joint venture proposals have been sanctioned by the Italian government which aims to promote business in both India and Italy, with regular exchanges of delegations.
(Sources: Economic Times, Indiatimes, EXIM News, News Whip, Yahoo News, Worldnews)
FDI inflows dip 34 per cent to $22.7 billion in 2012
India has attracted foreign direct investment (FDI) of $22.78 billion in 2012, a decline of 34 % over the previous year due to global economic uncertainties.
The country had attracted FDI of $34.62 billion in 2011, according to the Department of Industrial Policy and Promotion data.
In 2012, the country received the highest FDI of $4.67 billion in September followed by $2.21 billion in February and $2 billion in January 2012.
Foreign investments are important for India, which needs around $1 trillion in the next five years to overhaul its infrastructure sector such as ports, airports and highways to boost growth.
Decline in foreign investments will put pressure on the country's balance of payments and could also impact the value of rupee.
(Sources: Economic Times, Indiatimes, Zeenews, Times of India, World News Report)
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