สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 11 พฤษภาคม 2555
RBI steps in to arrest rupee fall
The Reserve Bank of India (RBI) intervened on Thursday to stem the continued fall of the rupee, and announced measures to curb speculation and increase liquidity in the currency market.
The central bank directed exporters to convert 50% of their foreign currency holding with banks into rupee balances within a fortnight.
The order to exporters to convert half their foreign currency holdings into rupees is expected to infuse at least $2.5 billion into the market, lending support to the rupee.
(Source: Reuters India, Livemint, Economic Times, Business Standard)
UP zeroing in on investment zones of DMIC
Uttar Pradesh is zeroing in on investment zones in the state, which would integrate with the Delhi Mumbai Industrial Corridor (DMIC) and Dedicated Freight Corridor (DFC).
DMIC is a mega infrastructure project estimated at $90 billion with financial & technical aid from Japan and spanning 1,483 km between Delhi and Mumbai.
DMIC would comprise seven investment and 13 industrial zones along its route, of which one each investment and industrial zone would fall in UP viz. Greater Noida and Meerut-Muzaffarnagar. A dedicated freight corridor spanning 150-200 km on either side of the investment zone is to be identified.
DMIC and DFC are touted among the biggest industrial development projects in India, which is likely to boost public and private sector investment in UP. Being strategically located between both the western and eastern DFCs, UP has the potential to attract large investments.
(Source: Hindu Business Line, Business Standard)
Exports hit demand barrier in Apr, imports remain muted
India’s trade deficit remained stagnant at about $13 billion in April, compared to the year-ago period, after touching a record high of $185 billion, or 10 % of the gross domestic product (GDP), in 2011-12. If this trend persists, the current account deficit, which had touched 4 % of GDP in the first nine months of the previous financial year, may be narrowed.
Exports rose just 3.2 % to $24.5 billion and imports by 3.8 % to $37.9 billion in April.
Petroleum products imports rose just 7 % to $13.9 billion due to falling global crude oil prices, pearls and precious stones and gold and silver imports contracted. Trade deficit rose to $13.4 billion, against 13 billion in April, 2011.
(Source: India News, World News, Hindu Business Line, Business Standard)
High excise duty dents medium, heavy commercial vehicle sales
Hit by a hike in excise duty, the sales of medium and heavy commercial vehicles (M&HCVs) declined by 11.60 % last month to 19,914 units.
Overall, volume in the CV segment increased by a moderate 4.37 % in April driven by demand for light commercial vehicles (LCVs) which account for two-thirds of overall commercial vehicle sales.
The government had increased excise duty by 2 % in the Budget.
Finance Minister Pranab Mukherjee also announced levying a special duty of 3 % on vehicles whose bodies are installed outside a manufacturer’s factory (by local vendors).
CV sales, a key indicator of economic activity, had grown by 18 % last financial year, but they are expected to just touch double-digit growth rate in 2012-13.
Passenger car sales in India witnessed its slowest growth during April in 10 years at 3.4 %, as customer sentiment remained low due to post-Budget price hikes and high interest rates.
(Source: India News, World News, Hindu Business Line, Business Standard)
VW group to invest $379 million in India
Volkswagen AG, the world’s third largest car maker, plans to invest at least $379 million in India to boost its share in Asia’s second fastest growing car market, according to a commerce ministry statement. Volkswagen can produce 1.6 million units a year in India at its two plants in Maharashtra.
Trade minister Anand Sharma, who is in Germany to celebrate the 60th anniversary of establishment of diplomatic ties between India and Germany, said in a note that about 600 Indo-German joint ventures operate in India. “FDI (foreign direct investments) inflows from Germany into India are around $4.55 billion and it ranks eighth among investors in India,” he said.
(Source: Livemint, Economic Times, Hindu Business Line, Business Standard)
World Economic Forum drops Confederation of Indian Industry, to go it alone for India summit
From this year, international non-profit body, the World Economic Forum (WEF) would hold its annual Indian summit on its own without the active collaboration of its partner for 27 years, the Confederation of Indian Industry (CII).
WEF's 2012 India summit would also see a significant re-branding, with its name changing from the traditional India Economic Forum to the World Economic Forum on India.
Apart from its dissociation with long-time partner CII, WEF has also decided to move the summit out of New Delhi's Taj Palace Hotel, where it was usually held, to Gurgaon The theme for this year's WEF on India summit, scheduled from November 6 to 8, is 'From Deliberation to Transformation.'
The WEF has also decided to establish a permanent office in India this year, similar to its offices in Beijing, New York and Tokyo.
(Source: Economic Times, Indiatimes, Hindu Business Line, Ministry of Commerce)
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