สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 3 กรกฎาคม 2555
Auctions not the only way to allocate natural resources: Government to SC
The government will tell the Supreme Court that auctions cannot be the only permissible method of allocation of natural resources and that courts cannot interfere with policy decisions 'only on the grounds' that another policy decision would have been better, a law ministry official told.
The Supreme Court on February 2 cancelled 122 licences issued by former telecom minister A Raja, and pronounced that the auction route should be followed for the allocation of all natural resources.
The SC's view on the presidential reference will be closely tracked as it will have wide ramifications on the allocation of all natural resources including airwaves, coal, minerals , oil and gas, forest land, to name a few.
(Sources: Economic Times, the Hindu, Indiatimes, Times of India)
Multi-brand FDI to hit kirana shops: Metro Cash & Carry
It is not just small traders and kirana stores who are worried over loss of business if foreign direct investment (FDI) in multi-brand retail is allowed. Even international chains such as German retailer Metro Cash & Carry believe that the reform move may impact local businesses.
The statement by the German company comes as a surprise especially after international chains have been waiting for the opening of FDI in the sector as they reason it would benefit smaller players by way of technological enhancements as well as creation of new jobs, besides giving them an opportunity to tap into the growing retail market in India.
(Sources: Times of India, Worldnews, Hindu Business Line, Economic Times)
India to launch $40 billion projects under Phase II of JnNURM: Kamal Nath
India will launch the $40 billion second phase of its urban renewal mission in about four months, Urban Development Minister Kamal Nath told delegates attending the World Cities Summit here in Singapore.
The Jawaharlal Nehru National Urban Renewal Mission (JnNURM) phase II would be carried out over the next five years as India works to cover its infrastructure deficit throughout the country and manage massive urbanisation programmes, he told the Summit's opening plenary session.
Minister highlighted water, sewage and transportation among the main challenges for India in building capacities in cities.
(Sources: Economic Times, Zeenews, Indian Express, Worldnews)
Exports, imports fall in May
Trade data for May showed the rate of growth fell 4.2 % to $25.7 billion, compared with $26.8 billion in the same month last year, due to a severe demand slowdown in the European and American markets for Indian goods.
Imports also came down 7.4 %, to $41.9 billion from $45.3 billion in May last year, reflecting slowing industrial activity.
Total exports so far in 2012-13 have reached $50.1 billion, down 0.7 % from $50.5 billion earlier. There has been shrinkage in the volume of exports to traditional markets, while growth in the newer markets has also failed to pick up, due to the global economic condition.
(Sources: Business Standard, Moneycontrol, Hindu Business Line, Exim news)
Key political risks to watch in India
India's economic growth has slowed sharply, sliding to 5.3 % in the first three months of this year compared to 9.2 % in the same quarter of 2011.
As much as the current global financial turbulence, investors blame a lack of significant policy reforms in the eight years of Singh's government, and its unwillingness to curb popular but costly subsidies, for the slowdown.
IKEA, the world's largest furniture maker, announced a 1.5 billion euro investment in India on June 22, sending a positive signal of investors' faith in the underlying India growth story.
(Sources: Business Standard, India Today, Reuters India, Economic Times)
Manufacturing growth at 4-mth high: PMI
India's manufacturing sector expanded at the fastest pace in four months in June as the country saw improvement in business conditions as well as hiring, an HSBC survey said.
The HSBC India Manufacturing Purchasing Managers' Index (PMI) - a measure of factory production - improved slightly to 55 in June, from 54.8 in May.
"Activity in the manufacturing sector kept up the pace in June with output, and employment expanding at a faster pace," HSBC Chief Economist for India and ASEAN Leif Eskesen said.
(Sources: Economic Times, Business Standard, Indian Express, Financial Express)
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