สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 24 พฤษภาคม 2555
Despite stalled reforms, FDI inflows rise 34% in 2011-12
While the government reels under severe criticism for not taking adequate measures to open a few sectors to foreign direct investment (FDI), hurting the sentiment of foreign investors, the inflow into the country in the last financial year belies these comments.
In 2011-12, FDI rose 34.4 % to $46.84 billion, compared with $34.84 billion in 2010-11 and $37.74 billion in 2009-10, according to data from the Department of Industrial Policy and Promotion.
Experts say the rise in FDI inflows is due to the fact that India remains a preferred investment destination, but this trend may not continue for long and moderation may take place this financial year.
(Source: Business Standard, Times of India, Rediff, Indiatimes)
Auto industry fumes over petrol price hike
The automobile industry has hit out at the petrol price hike saying the increase will hurt the sector which is already reeling under a slump.
In the short-term, sales will be further impacted while in the long term a negative consumer sentiment will be created which can hurt the growth of the industry.
Passenger car sales in India witnessed the 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, affecting the entry-level segment most.
In the fiscal 2011-12, car sales in India grew by just 2.19 % which was the slowest since 2008-09.
(Source: Economic Times, IBNLive, NDTV, Business Standard, Worldnews)
Rupee sinks to new low of 56.18 despite RBI 'intervention'
The rupee sank to an all-time low against the dollar for the sixth straight day Wednesday, breaching 56 for the first time despite likely intervention by the RBI.
Domestic problems, including India's widening trade and current account deficits and declining foreign fund inflows, have depressed the rupee, analysts say.
The rupee, also weighed down by global risk aversion, is among several emerging market currencies which are depreciating against the dollar.
The Indian currency has now fallen nearly ten percent in the new financial year started April.
Foreign investors have also been turned off India due to recent regulatory moves by the government, which has stalled on a pro-growth reform agenda.
(Source: Economic Times, Business Standard, Indiatimes)
28 power stations battling coal crunch
Grim fuel stock position has affected country's thermal power projects, with almost 28 stations battling less than seven days of coal supplies during the past three weeks.
Various power generation companies have refused to sign Fuel Supply Agreement (FSA) with Coal India as they felt that the minimum penalty clause was too less and would not serve the purpose.
Of the 28 stations, 14 on an average suffered acute coal shortage of less than four days on account of either less receipt of fuel or inadequate coal allocation.
Power generation is calculated keeping all the sources -- coal, gas, hydro, wind etc -- in mind. The situation at the thermal plants, which account for majority of electricity produced in India, is likely to stay the same during the current month as well.
(Source: Economic Times, Hindu Business Line, Worldnews, Zeenews)
Karnataka to seek more foreign investment
The Karnataka government will seek more foreign investments in infrastructure and energy projects at the Global Investors Meet (GIM) on 7-8 June, as well as in the state’s mainstay, information technology (IT).
This time, government officials expect moderate activity in iron and steel and are priming other sectors for investments. Urban infrastructure and energy are tipped to be the most important sectors this year, said Karnataka’s commissioner for industrial development M. Maheshwar Rao.
Of the 200 projects that involve acquisition of land by the government, 149 are undergoing proceedings. Of the 73 projects that involve acquisition of land from landowners by consent, 49 are under implementation.
(Source: Livemint, the Hindu, Indianews24)
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