สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 9 สิงหาคม 2555
Land acquisition bill conditions eased, made more industry-friendly
The government has made key changes to the proposed legislation for land acquisition, making it more attractive for industry by easing some of the stringent conditions. The changes are aimed at boosting industrial growth, which had suffered considerably because of the enormity of challenges associated with acquiring land.
Since the ministry has dropped the plan to apply the proposed legislation retrospectively, the ongoing projects, for which the acquisition is on but land has not been awarded, will not have to start the process afresh. This has been one of industry's main demands.
(Sources: Economic Times, Zeenews, Worldnews, Indiatimes, IBNLive)
India needs improvement in power infrastructure: S&P
According to the report, India's aggressive economic growth targets for the next five years will add to the already high demand for power. This calls for a significant increase in funds to the sector. Power capacity has increased about 41% over the past decade. But, while the government has increased funding allocations to the power sector in its recent five-year plans, it has consistently failed to meet its planned capacity expansions.
Standard & Poor's believes that the Indian government isn't placing enough focus on improving the country's inadequate transmission and distribution infrastructure, particularly at the state level, despite the large increase in installed power capacity.
(Sources: Economic Times, Rediff, Reuters India, Financial Express, Worldnews)
FDI in multi-brand retail: Only four states including Delhi, Manipur indicate support
Only four states and Union Territory (UTs) have so far indicated their support for allowing FDI in multi-brand retail, a development which will further delay entry of global chains like Walmart and Carrefour in India.
Minister of State for Commerce and Industry Jyotiraditya Scindia said that the government has not taken any decision on the two proposals for 100 % FDI in the single brand retail. While Swedish furniture major IKEA proposes to invest $ 1.9 billion, UK-based footwear major Pavers wants to invest additional $ 18.15 million in the Indian market.
Till May, the total FDI equity inflows in the single brand retail trade are meager $ 37 million.
(Sources: Economic Times, Zeenews, Business Standard, IBNLive)
Manufacturing sector may record lower growth in Q2: Survey
The manufacturing sector is expected to register lower growth during July-September quarter compared to previous quarters, mainly due to the rupee depreciation and slowdown in demand, a survey by industry body FICCI said today.
Rupee depreciation has presumably affected the sector's competitiveness severely over the last few months, the FICCI's quarterly survey on manufacturing said.
The manufacturing sector which constitutes over 75 % of the factory output did not perform well as it grew a meager 2.5 %, as against 6.3 % in May, 2011. Sectors which have been affected more by the depreciation are automotive, electronics, capital goods, chemicals and textiles.
(Sources: Business Standard, Moneycontrol, Economic Times, Zeenews)
Launching electric cars in India a major challenge: Volkswagen
German car maker Volkswagen today said launching electric cars in India is a major challenge as it requires big infrastructure.
Volkswagen Group Service Director Dietmar Hildebrandt also said India being a great market; the company would gear up to launch vehicles, including electric cars.
Hildebrandt, who was here to inaugurate the Volkswagen Group Technical Education programme, to train technicians, said the company has over 200 dealers at present in the country, and has plans to double it by another five years or at least by 2015.
(Sources: Economic Times, Moneycontrol, Indian Express, Financial Express)
Government calibrating economic policies to deal with euro-zone crisis
The government today said it is adjusting its economic policies to deal with the impact of euro-zone crisis. India's economic growth rate has slowed to a nine year low of 5.3 % in the January-March quarter of 2011-12, from a 9.2 % growth in the Q4 of 2010-11 fiscal.
The global factors include the crisis in the Eurozone and the near recessionary conditions prevailing in Europe, sluggish growth in several industrialised economies, hardening of international prices of crude oil.
The Wholesale price based inflation stood at 7.25 %, the retail inflation was at 10.02 % and the food inflation in June stood at 10.78 %.
(Sources: Economic Times, Zeenews, the Hindu, Indiatimes, i4u)
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