สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 30 ตุลาคม 2556
India’s Daily Economic News, 30th October 2013
RBI hikes interest rates to curb inflation
In a bid to battle the inflation and break the viscous circle of price rise so as to control the eradication of financial savings and strengthen the foundation of India’s growth, RBI Governor Raghu Ram on Tuesday raised the repo rate by 25 basis points to 7.75% .This move is meant to encourage banks to keep EMI’s unchanged for purchases of cars, houses and even education loans. This move would help keep high growth areas for bank solvents by providing for easy liquidity. The RBI Governor unveiled five pillars to strengthen the banking system, First pillar is strategy to expand financial inclusion, second one is to strengthen banking structure through new expansion and moving foreign banks into better regulated organizational forms. Third pillar is broadening and deepening of financial markets and increasing their liquidity and resistance so that they absorb the risks entailed in financing’s India\s growth. Fourth pillar is to encourage and expand finances to SMEs, the unorganized sector and the poor and remote areas. The last pillar is to improve the systems’s ability to deal with corporate and financial institutions distress by strengthening real and financial restructuring.
(Source; Financial Express, Indian Express)
India slips 3 spots to 134 in ease of doing business.
India has slipped down three places from 131st spot last year to the 134th (out of 189 economies) spot in the “Doing Business 2014: Understanding Regulations for small and Medium-size Enterprises” report according to the International Finance Corporation and the World Bank. The top 10 Countries in the report are starting from Rank 1: Singapore, Hong Kong, New Zealand, USA, Denmark, Malaysia, Korea Georgia, Norway and the UK. India has been ranked lower at 179 in terms of ease of starting a business in 2014 list when its government is making efforts to improve the business climate. The ranking is based on certain parameters including starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. But India is a much better place in terms of protecting investor interest and companies getting credit for their activities.
(Source; Business Standard)
Govt. may bring Direct Taxes Code bill this Winter Session
The Indian government is likely to introduce the much delayed DTC or Direct Taxes Code bill in the Parliament during the winter session in December. The Bill seeks to replace the income-tax Act of 1961 with a completely new legislation. Finance Minister Mr. P Chidambaram said that the DTC that is under consideration has retained income tax exemption limit at Rs. 200,000. It proposes to introduce a new 35% slab on annual income, income in excess of over Rs. 1,000,000,000. At present, income in excess of Rs. 100000 is taxed at 30% while those earning in excess of Rs. 1,000,000,000 have to pay a surcharge of 10%. The corporate tax rate is proposed to be retained at 30% and the securities transaction tax will continue.
(Source: Economic Times)
Big Drug Companies likely to gain from price cuts
Big pharmaceuticals companies’ profit margins may be under pressure because of government induced fall in prices of dozens of medicines, but they could end up with a larger share of the market at the expense of small and medium sized drug firms. Given the narrowed-down price differential between the price of their drugs and those of small and medium firms, big pharmaceutical companies’ are now focusing on their brand and strengthening their distribution set up.
(Source: Economic Times)
