สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 19 สิงหาคม 2556
Air Asia might delay the launch plans
Air Asia India, the airline joint venture between Malaysian low-cost carrier AirAsia and India's Tata Group that was expected to launch operations before Diwali (November 3) this year, may postpone its take-off due to delays in regulatory clearances.
The company, which has so far recruited 200 staff, is expected to have around 470 employees by the time it starts the first phase of operations, said Mittu Chandilya, chief executive of Air Asia (India) Pvt Ltd.
The company is now waiting for the no objection certificate (NOC) from the ministries of home affairs and civil aviation, after which it has to get the air operator's permit from the Director General of Civil Aviation (DGCA), which is the flying license.
(Source: Business Standard, the Financial Express)
The worst is over in Europe: Ficci survey
According to a Federation of Indian Chambers of Commerce and industry (Ficci) survey, Indian companies think business prospects in Europe would improve in a couple of years.
Despite the gloomy economic scenario in Greece, Spain, Italy and France, Indian companies for the first time in three years have overwhelmingly expressed confidence while engaging with the region commercially, the survey titled 'Is the worst phase over for Indian companies doing business in Europe?', noted.
Last year, 75% of companies had responded that the ongoing crisis had resulted in their business prospects in the region being adversely impacted. This year, however, a little over 50% noted that even when the markets slowed, they were able to register growth in their product category.
Half the surveyed companies expected the current economic situation to improve over the next two years. About 30% expressed optimism that the economic situation in the European Union (EU) would begin to look up in a year. To keep their balance sheets stable, 50% of the companies surveyed had already begun to diversify their markets within Europe. Last year, 40% of these companies initiated efforts to make inroads into the Central and East European markets.
(Source: Business Standard)
Reducing gold imports to help bridge the current account deficit
Planning Commission member B K Chaturvedi revealed that a reduction in coal imports by increasing domestic production would help in bridging the current account deficit. Despite the country having substantial coal reserves, demand for the dry fuel is much higher than domestic production resulting in increased imports.
According to Chaturvedi, the domestic production of coal has to be increased to meet the demand of various segments, especially power sector. Current Account Deficit (CAD), which indicates imports of goods services and transfer are higher than their exports, touched 4.8% (or USD 88.2 billion) of country's Gross Domestic Product (GDP) in 2012-13 period. In the current fiscal, the government is making efforts to contain the CAD at 3.7% (or USD 70 billion) of GDP.
(Source: the Financial Express)
Govt clears infra projects worth Rs.1.1 lakh crore investments
Big-ticket investment projects worth Rs. 1.1 lakh crore, stuck for years for want of myriad government clearances, have finally got the green signal to start operations.
The Centre has unravelled last-mile hurdles holding up 28 such projects at a time Prime Minister Manmohan Singh has identified the government's primary task as reinvigorating confidence in the Indian economy, with domestic players having virtually abandoned fresh investments.
The clearances would come as a relief for investors in 18 power projects with a generation capacity of 15,500 mw, four highway projects worth Rs.4,400 crore, and a Rs.1,200-crore steel plant in Odisha. Further, the coal ministry has agreed to sign fuel supply agreements for all these projects by August 31. Three critical railway lines in poorly connected states such as Chhattisgarh, Mizoram and Assam, with an investment outlay of over Rs.7,100 crore, have secured the requisite clearances to finish construction.
(Source: the Economic Times, the Financial Express)
India pins Rs. 219,628 cr industrial investment proposals in 2012-2013
India received industrial investment proposals worth Rs. 219,628 crore from some 1149 industrial undertakings in this calendar year till May, according to the data from the ministry of commerce and industry till May 2013.
Gujarat cornered almost 25% of the total investment proposals this year, while as many as 18 states individually accounted for less than one per cent of the total investments, pointing rising disparity among states in terms of industrialization.
In 2012, India received industrial investment proposals worth Rs. 567,868 crore for the full year. Like this year, Gujarat, Chhattisgarh and Maharsahtra were the top three states in terms of investment proposals from industrial undertakings. The data under consideration covers Industrial Entrepreneurs Memorandum (IEM) filed, Letters of Intent (LoI)/ Direct Industrial Licenses (DILs) issued by DIPP.
(Source: Business Standard)
FM seeks 10-points action for reviving economy
Finance minister P Chidambaram has asked each of the secretaries in his ministry to present a 10-point action plan on Monday that could help draw up an agenda to kick-start a wider set of measures to revive the economy and improve business sentiment.
Chidambaram has asked all the four departments to come up with ideas that could be implemented or prioritized over the next few months. This will also send out a signal that the government was for the time done with steps to stabilize the rupee and wants to move on to other pressing issues.
The action points could be anything that can help revive growth and boost sentiment, the official said pointing to a shift in the mood in the North Block that had been fire-fighting the rupee depreciation.
(Source: the Economic Times)
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