สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 21 สิงหาคม 2556
Rubber Drops as Oil Rally Stalls, Thailand in Recession
Rubber declined the most in three weeks as a drop in oil reduced the prospects for gains in competing synthetic products, and Thailand entered a recession for the first time since 2009.
Rubber for delivery in January on Tokyo Commodity Exchange fell 2.1% to settle at 260.8 yen a kilogram ($2,685 a tonne), the most for a most-active contract since July 29. Futures have declined 14% this year. West Texas Intermediate crude fell for the first time in seven days on Monday and extended declines on Tuesday. Asian stocks dropped for a fourth days as Thailand, the largest rubber producer, entered a recession and India's currency tumbled to a record low.
(Source: the Economic Times)
Economic Crisis will deepen: says business leaders
A poll of 20 respondents comprising leading CEOs, bankers, market players and economists paints quite a grim picture. An overwhelming majority of the respondents said the Indian economy was heading for an unprecedented crisis due to mismanagement, lack of reforms, weak political leadership and policy paralysis that had led to infrastructural bottlenecks and stalled projects.
On the rupee, a majority said it would weaken by more than 5% by the end of the year but interest rates would either fall or remain unchanged. The safe places to park money in these volatile times were specific stocks and bank fixed deposits, the poll showed.
(Source: Business Standard)
Gujarat Govt to award one farmer for each district from India to contribute to the farm sector
The Gujarat government for the first time has decided to award one farmer from each of the 671 districts at its global agricultural summit to be held next month, to recognize their contribution to farm sector.
The two-day 'Global Agriculture Summit' will begin from September 9 in Gandhinagar, would be an interactive platform for about 5,000 farmers from across the country of which more than 3,000 would be from outside the state. "One of the key highlights of the summit is the award ceremony. We are going to award each farmer from each district in the country for their contribution in achieving food security of the nation," Gujarat Principle Secretary for Agriculture and Cooperation Raj Kumar said.
There are about 671 districts in the country and the Gujarat government has sought help of other states in identifying the successful farmer for this award, he said, adding that a cash prize with citation would be given to them.Kumar said "kisan panchayats" will be held where farmers from other states will share their success stories and discuss wide range of issues related to production, productivity and value-addition in agriculture sector.
The summit main theme will bring India's agriculture growth at par with growth in other sector. "More than 50% of the country's population is dependent on agriculture but its contribution to the GDP is lower than other sectors. There is something wrong in our agricultural policies which this summit will try to find some answer," Kumar said. The average agriculture growth in Gujarat in the last one decade has been around 11%, he added.
(Source: Business Standard)
PM's US visit to be very substantive
Amid a perception that the India-US relationship has plateaued of late, both countries are banking on a "very successful" visit by Prime Minister Manmohan Singh to the US next month to take their ties to greater heights.
Manmohan Singh will be in US on September 27 for a very short working visit, but National Security Adviser Shivshankar Menon, who was in US to lay ground for the visit expressed confidence on Tuesday "in terms of substance it's going to be a good visit." As of now the plans include only a "very substantive" meeting with President Barack Obama followed by a lunch at the White House, he told Indian media after meetings with his counterpart Susan Rice, Defence Secretary Chuck Hagel and Deputy Secretary of State Bill Burns among others.
Manmohan Singh and Obama will have a very comprehensive agenda as they review the full spectrum of the relationship encompassing agriculture, industry and trade, science and technology, anti-terrorism, security aspects and a whole range of global issues.
(Source: the Economic Times)
India Inc losing Patience? Five of 20 Captains on PM Team Fail to Turn Up
Five of the 20 corporate leaders who constitute Prime Minister Manmohan Singh's Council on Trade and Industry didn't turn up for its meeting on July 29 to discuss ideas on how to revive growth, the Current Account Deficit (CAD) and the falling rupee. And several of the honchos who attended gave an earful to the government for weak implementation and questionable policy decisions.
Bharti Group chairman Sunil Bharti Mittal told the Council, which includes top ministers and officials that the recent Rs. 650-crore penalty levied on Bharti Airtel by the telecom department seemed unfair and would lead to more litigation between corporates and the government, which doesn't bode well for the sector that is already struggling.
Bajal Auto chairman Rahul Bajal asked the Prime Minister when the government will start protecting India's interests, referring to unfettered imports of consumer goods from countries like China that have weakened trade and current account balances and contributed to the hammering of the rupee in recent months.
(Source: the Economic Times)
Govt mulls currency swap to stabilize rupee
As the rupee tumbled to another historical low on Tuesday, policymakers taking stock of the situation discussed the possibility of currency swap deals with various countries among other things to salvage the situation. However, the government would wait for the result of the measures already announced to help the rupee stabilized before announcing further measures.
The rupee slumped to a record low of 64.13 to the dollar in early trade on Tuesday and bond yields hit another five-year high as Asia's third-largest economy bore the brunt of growing money flows out of emerging markets. "Whatever we could have done, we have done," said a senior source in the finance ministry, dismissing any further liquidity tightening steps the government or the Reserve Bank could take in the immediate future. "We now hope the rupee will find its sensible level."
The official added that currency swaps were being discussed with a number of nations, but these talks were part of normal business and not specifically targeted as a measure to appreciate the currency. However, he did not specify which nations India was talking to. India currently has a $15 billion currency swap with Japan.
During the day, finance minister P Chidambaram discussed the situation with Planning Commission deputy chairman Montek Singh Ahluwalia, Prime Minister's top economic advisor C Rangarajan, economic affairs secretary Arvind Mayaram and commerce secretary SR Rao. They also discussed the agenda for the G-20 Leaders Summit in Russia in September.
(Source: the Financial Express, the Economic Times)
Economic Section
Royal Thai Embassy
