สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 8 ตุลาคม 2555
FDI restriction on e-commerce to stay: Report
The government's decision to allow foreign supermarket chains such as Walmart and Tesco into the country does not extend to non-store formats such as teleshopping and mail order.
Such chains will not be allowed to sell products through e-commerce, the official in the department of industrial policy & promotion told ET on the condition of anonymity. The clarification comes amid confusion over the full implications of the government's decision last month to allow 51% foreign direct investment in multi-brand retail.
(Sources: Economic Times, Indiatimes, Livemint, Hindu Business Line)
Decision on FDI taken by consensus, says Anand Sharma
With several states strongly opposed to FDI in multi-brand retail sector, the Centre today made it clear the decision was taken by consensus and no state could decide for another or deprive them if they chose to go ahead with the reform measure.
Noting that there are states which have reservations over FDI, Commerce, Industry and Textiles Minister Anand Sharma said that implementation of the decision has been left entirely to them.
He said government had taken a considered view after consulting all stakeholders and looking at ground realities.
(Sources: Economic Times, Indiatimes, the Hindu, Tribune India, i4u)
Retail chains, investors chase law firms ahead of FDI deals
Leading corporate lawyers and accounting firms have swung into action to interpret the grey areas in the multi-brand retail FDI policy and suggest follow-up action to clients before they start striking deals.
The political opposition to FDI in retail and states' free hand to say 'yes' or 'no' to foreign chains have made pre-deal negotiations tougher, translating into an exciting business opportunity for law firms and advisors.
Knowing the game is big - the Indian retail sector is roughly estimated at over $500 billion and most of it is unorganised - everybody wants to grab a piece of the pie at a time when merger and acquisition deals have dried up.
(Sources: Business Standard, Hindu Business Line, Business Today, Rediff)
India growth likely to pick up pace in rest of fiscal year: Chidambaram
India's economic growth is likely to accelerate from the current level of 5.5 % for the remaining quarters of the fiscal year, Finance Minister P. Chidambaram said on Monday.
India's quarterly GDP grew 5.5 %, driven by a rebound in construction and financial services, provisional government data showed in August, just above the 5.3 % posted in the three months ended in March. The current fiscal year ends in March 2013.
(Sources: Reuters India, CNBC, Moneycontrol, IBNLive, the Hindu, i4u)
US hotel chain Wyndham to open 70 hotels here by 2016
The US-based Wyndham Hotel Group is set to expand to 70 properties in India by 2016, from 16 under various brands at present.
Targeting mostly the mid and mid-premium market, Wyndham will bring in globally established brands like Howard Johnson and Hawthorn Suits to India over the next five years, said Wyndham’s managing director (APAC), Frank Trampert. Wyndham owns 15 hotel brands and runs 7,000 hotels worldwide.
(Sources: Reuters India, Economic Times, Indiatimes, Livemint, Moneycontrol, Business Time)
Blackstone invests $100 mn in International Tractors Ltd
The Blackstone Group today announced that its affiliate Blackstone Capital Partners (Singapore) has signed an agreement to acquire 12.5% of International Tractors Limited (ITL) in a structured transaction for up to USD 100 million. The flagship company of the Sonalika Group, ITL is a leading manufacturer of tractors under the brand name 'Sonalika'.
(Sources: Reuters, Economic Times, Indiatimes, Financial Express, Indian Express, Livemint)
Foreign farm equipment companies eye Indian market
Foreign farm equipment manufacturers are taking a closer look at the Indian market at a time when rural economy is thriving and farmhands are difficult to get while use of technology is very limited. Lemken, the German farm equipment manufacturer, will inaugurate its first manufacturing facility outside Europe at Nagpur this month. Italian farm equipment manufacturer Maschio Gaspardo recently set up its manufacturing unit at Ranjangaon near Pune.
Industry sources say that at least two to three foreign companies are likely to set up manufacturing units in India in the next three to four years, bringing in an investment of about $ 134 million. The $ 576 million Indian farm equipment sector is largely concentrated in the unorganised sector.
(Sources: Hindustan Times, Economic Times, Indiatimes, CNBC, Worldnews)
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