สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 23 กรกฎาคม 2555
Pranab wins Prez poll by huge margin
Former finance minister Pranab Mukherjee on Sunday became India's President-elect, with a victory margin of 70 per cent, exceeding the ruling coalition's expectations. He will be sworn into office on Wednesday.
The government is waiting till Mukherjee's swearing-in to introduce important policy reform, including reducing the diesel subsidy, taking a view on FDI in multibrand retail and deciding on the universal provision of foodgrains as an entitlement for the poor.
(Sources: Business Standard, Moneycontrol, IBNLive, the Statesman, Zeenews)
Centre mulls renegotiating bilateral investment pacts
With Vodafone, Sistema and Loop Telecom, among others, serving notices on the Government of India for international arbitration on tax or licence disputes, the latter is considering renegotiating its Bilateral Investment Promotion & Protection Agreement (BIPA) with diverse countries, to introduce provisions barring investors from taking such recourse.
The proposed move is aimed at putting an end to the confusion on whether an international court can override the decisions taken by an Indian court, especially the Supreme Court. A favourable ruling for the investor in an international court can put the government in a fix.
(Sources: Business Standard, Times of India, Indiatimes, Worldnews)
Bajaj Auto expects 50 per cent of sales to come from exports in 3 years
Betting big on its international business, Bajaj Auto Ltd is expecting exports to account for 50 per cent of its total sales in the next three years, as it plans to enter new markets in Latin America such as Argentina and Chile.
The company exports to 35 countries with the African continent its largest market accounting for 41 per cent of the total overseas shipments. It is followed by Asia and West Asia at 40 per cent for both motorcycles and three-wheelers.
(Sources: Economic Times, Zeenews, Hindu Business Line, Financial Express)
Don't open multi-brand FDI in retail, PM told
The Samajwadi Party and the Left have urged Prime Minister Manmohan Singh not to let FDI in multi-brand retail sector, saying this will virtually destroy India's retail sector.
"Entry of MNC supermarket and hypermarket chains would cause severe displacement of small and unorganized shopkeepers and traders," a joint open letter to the prime minister said.
"The entry of the giant Wal-Mart supermarket chain would have a disastrous impact."
The letter quoted one estimate as saying that a Wal-Mart supermarket in India would displace over 1,300 small retail stores and render about 3,900 people jobless.
The letter pointed out that the Indian retail sector was the second largest employer in India after agriculture.
(Sources: Economic Times, Zeenews, NDTV, Yahoo, Asian Age)
FII inflow crosses $10 billion mark
Betting high on Indian equities again, foreign investors have poured in over USD 1.67 billion this month in the stock market, taking their total investments so far this year to more than USD 10 billion according to data available with the Securities and Exchange Board of India.
With Prime Minister Man Mohan Singh taking additional charge of the finance portfolio, investors are re-looking at the Indian equity market. Hopes are high that the government will initiate fresh reforms initiatives, market experts said.
Besides, investors hope that the government will initiate a few key reforms before the start of the Monsoon Session of Parliament on August 8.
(Sources: Indian Express, Financial Express, Worldnews, Times of India, Indiatimes)
Royal Thai Embassy