สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 29 พฤษภาคม 2555
Driving to Thailand from India could be a reality by 2016
As India sought to expedite its infrastructural projects in Myanmar, PM Manmohan Singh and President U Thein Sein for the first time set a deadline, 2016, for trilateral road connectivity which will make it possible to drive right up to Thailand from India via Myanmar.
Singh, who had a one-on-one with Thein Sein before the delegation talks, said India would undertake the repair of 71 bridges on the Tamu-Kalewa Friendship Road. India had earlier helped Myanmar build this road and the plan now is to link it with a place called Yargyi which will effectively link Moreh in India to Mae Sot in Thailand.
(Source: Economic Times, Times of India, Indiatimes)
Policy freeze derails $ 90.74 billion worth projects
The policy deep-freeze and land acquisition woes have resulted in over 500 projects, mostly power and steel, being shelved or put on hold during 2011-12, entailing a total investment of over $ 90.74 billion.
The core sectors, led by power and steel, bore the brunt of project cancellations during the fiscal, accounting for nearly 60 % of the value of the projects shelved in 2011-12.
10 of the top 20 projects have been put off because of land acquisition problems.
(Source: Indian Express, Worldnews, Financial Express)
Entry level bikes segment to grow at slower pace than two-wheeler industry
Volume growth of the entry segment bikes is expected to grow at a much slower pace than the overall two-wheeler industry. Growth is to be driven mainly by exports as per the latest ICRA report.
This is because the segment is no longer a key focus area of original equipment manufacturers (OEM)s due to limited scope for margin expansion and high interest rate sensitivity.
The premium segment is expected to remain the fastest growing over the medium term, given the strong growth in purchasing power in the hands of middle-class urbanites, especially in the age group of 20-30 years
The Indian two-wheeler industry recorded sales volumes of 13.4 million units in 2011-12, a growth of 14% over the previous year.
(Source: Economic Times, Moneycontrol, Worldnews)
Rupee not to hit India rating: Moody's
Global agency Moody's today said the sliding rupee will not impact India's sovereign ratings, but may hurt private sector companies with large overseas debts.
The rupee had dipped to a record low of 56.40 against a dollar last week on withdrawal of funds by foreign institutional investors and a widening current account deficit (CAD). The CAD went up to 4 % of GDP in December 2011, from 2.6 % in March 2011. Government foreign currency debt comprises only 7 % of total government debt and is pegged at 5 % of GDP.
It added that rupee fall will affect private sector firms without export revenues and with foreign debt obligations.
(Source: Financial Express, Times of India, Indian Express)
Economic Section
Royal Thai Embassy
