สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 28 มิถุนายน 2556

Thailand woos Indian investors; opens overseas office in Mumbai

Thailand Board of Investment (BOI), the government organisation responsible for promoting overseas investment into Thailand, opened its overseas office in Mumbai today to promote investment opportunities among Indian investors.

"The Thailand Board of Investment today opened its Mumbai office in a bid to strengthen investment and trade ties between Thailand and India," Thailand Industry Minister Prasert Boonchaisuk said at a FICCI organised a 'Thailand-India Investment Cooperation Seminar' here.

BOI investment promotion services in Mumbai will not only convince investors to invest in Thailand, but also encourage potential Thai investors to do business in India. India has various industries that match Thailand's investment promotion goals such as auto parts, software, chemicals and pharmaceuticals.

Several Indian corporates like Tata Motors, Aditya Birla Chemicals, Apollo Tyres, NTS Steel, Polyplex, Indorama Holdings, Bharat Hotels have presence in Thailand.

(Source: Economic Times)

Current account deficit falls to 3.6 % of GDP, but fails to lift rupee

The current account deficit, the excess of spending overseas than earnings, fell to 3.6% of the gross domestic product in the March quarter, showed data from the Reserve Bank of India. That's lower than the revised 6.5% in the December quarter, limiting the fiscal year deficit at 4.8% of the GDP.

The battered rupee rose to Rs 60.15 to the US dollar, from a record low of Rs 60.76 on Wednesday. The currency slide is due to the exit of some international investors who see better opportunities in the US, where yield on benchmark treasury has climbed a percentage point recently and stocks are at record highs.

The CAD at $18.1 billion is much lower than the consensus estimate of $21 billion and the previous quarters' $31 billion. Unlike in the past, net invisibles largely comprising service incomes and remittances by Indians abroad declined 7.7% from a gain of 27.5% a year ago.

(Source: Economic Times, Rediff News, India Everyday)

Macroeconomic risks to economy rising: RBI

The Reserve Bank today said the macroeconomic risks to the Indian economy have increased over the last six months due to the fall in growth, external sector developments and subdued performance of the corporate sector.

"The macroeconomic risks to the economy have increased over the past six months, mainly on the dimensions of domestic growth, external sector and corporate sector performance," the apex bank said in its biannual Financial Stability Report (FSR) released this evening.

The report said financing the high current account deficit (CAD), which hit an all-time high of 4.8 % of GDP in FY13 - a key concern on the external front - is a "stress point" for the economy as evident from the recent rupee depreciation on global cues.

India's growth dipped to a near-decadal low of 5 % in FY13 due to project delays and lack of decision-making at the government level apart from external factors like a slowdown in the global economy.

(Source: Economic Times, the Hindu, Zeenews, Indian Express, NDTV, Business Standard)

Bangladesh woos India Inc, eyes $5-billion investment in 3 years

Bangladesh, a part of the eight- member SAARC grouping, expects investment from Indian corporates to double to $ 5 billion in the next three years on the back of an improvement in investment climate.

"Indian investment in Bangladesh currently stands at $ 2.5 billion. However, we expect this to grow two-fold and touch $ 5 billion in the next three years," Indo-Bangladesh Chamber of Commerce and Industry president Matloob Ahmed told reporters here at a Bangladesh-India partnership summit organised by industry body CII.

(Source: Economic Times)

Government likely to review FDI norms in multi-brand retail sector

The government on Thursday promised foreign retailers that it will review the stringent investment conditions imposed on foreign investment in the multi-brand retail sector after its much- hyped opening up of sector failed to enthuse them.

"The objective of the policy is to encourage investments, job creation, benefit to the farmers and benefit to the consumers. Therefore, we have sufficient space to address those concerns, bring in the clarity, and an early and appropriate view will be taken so that the guidelines can accordingly be given out," Commerce and Industry Minister Anand Sharma told reporters after a two-hour long meeting with the retail industry.

As per current FDI policy in the retail sector, 30 % of products sold by single brand retailers, where 100 per FDI is allowed, are to be "preferably" sourced from small and medium enterprises (SMEs). On the other hand, in multi-brand segment, where only 51 % FDI is allowed, it is "mandatory" for the company to procure 30 % from SMEs.

(Source: Economic Times, Indiatimes, Rediff News)

Tarun Gogoi woos foreign investors to Assam supports FDI in retail

Making a strong pitch to attract foreign investments to the state, Assam Chief Minister Tarun Gogoi today said the recent decision to relax FDI norms in retail will help India emerge as an economic power.

"If India has to emerge as an economic power, then it must allow Foreign Direct Investment (FDI) in the retail sector in a big way," Gogoi said at the Chatham House conference on 'India: Regionalisation, Reform and Investment' in London.

According to an official release, the Chief Minister also appealed to foreign investors to put money in various sectors in the state.

(Source: Economic Times)

 Economic Section

Royal Thai Embassy