สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 5 พฤศจิกายน 2556
Govt. discusses possibility of having more FTAs
With the economy facing bad times, government today explored the possibility of having more free trade agreements with various countries at a meeting chaired by Prime Minister Manmohan Singh here. The meeting of the Trade and Economic Relations Committee, attended among others by Commerce and Industry Minister Anand Sharma, held discussions with the aim of giving a boost to the economy, sources said. The meeting also reviewed progress of various free trade agreements (FTAs) under negotiations, they added. The discussions included the possibility of having more commerce-opening FTAs with various countries in Europe and Pacific, sources said. India is negotiating several FTAs with various countries, including Australia, Canada, and New Zealand besides the European Union. Recently, various external agencies had lowered their India growth projections for this financial year. The World Bank had slashed its India growth projection to 4.7 per cent, while IMG lowered its India growth estimate to 3.75 per cent for 2013-14.
(Source: Economic Times)
Economic integration key to foreign policy, says PM
Prime Minister Manmohan Singh on Monday said economic integration had become a crucial element in the country’s evolving foreign policy. He said developmental aspects have come to govern India’s strategic relationship with other countries. “Recognition that India’s relations with the world — both major powers and our Asian neighbors — are increasingly shaped by our developmental priorities. The single most important objective of Indian foreign policy has to be to create a global environment conducive to the well-being of our great country,” Singh said in New Delhi, while addressing the Annual Conclave of Indian Ambassadors and High Commissioners. “We are prepared to work with the international community to create a global economic and security environment beneficial to all nations.” Highlighting five fundamental principles of India’s foreign policy, he said greater collaboration and establishment of bilateral ties based on economic aspirations will benefit India in the long run, thereby unleashing the creative potential of its citizens. Singh stressed that in order to achieve the full potential of global dynamics and successfully integrating it with India’s relationship with other countries, it is important to strengthen regional institutional capability and capacity which can be achieved only by investing in connectivity.
(Source: Business Standard)
Gems, jewellery export may rise for 3rd straight month in October
Gems and gold jewellery exports from India are expected to rise for a third straight month for October on easing of supply pressures, industry body GJEPC (Gems and Jewellery Export Promotion Council) said today. In order to curb current account deficit, the government has taken several steps to contain gold imports. It has raised import duty to 10 per cent on the yellow metal and also made it mandatory for traders to export 20 per cent of the imported gold, thereby creating supply crunch in the domestic market. More shipments could be dispatched after the clarity on gold supply norms for export purpose, he said, adding that increased Christmas demand also boosted exports. Maximum shipments of gems and jewellery were dispatched to countries like the US, Europe, the UAE and Hong Kong. Asked about the overall exports during the 2013-14 fiscal, Shah said: "With shipments expected to gain momentum in the coming months, we hope to see total gems and jewellery exports to remain flat at last year's level of USD 39 billion (Rs 2,12,638 crore)." Gold jewellery constitutes half of the total exports, while the rest include diamonds and other colored gems and precious stones. Gems and jewellery exports sector which employs 1.5 million people constitute 17 per cent of India's total exports.
(Source: Economic Times)
Commerce ministry pushes for steps to help small exporters
To help small exporters, the commerce ministry has asked its export credit insurance arm to draw up a mechanism for these firms to be paid a significant part of their shipment dues while they await payments from their overseas buyers. Typically, exporters ship their products after taking insurance from the state-owned Export Credit Guarantee Corp. of India Ltd (ECGC) and wait for the money to arrive. ECGC guarantees payment if the importers end up not paying their credit dues. But until then, the exporters, especially the small ones, are squeezed for working capital. The government has been pushing for measures to boost exports from the SME sector. As part of this, a committee headed by finance secretary R.S. Gujral recommended in July for a differential corporate tax regime and tax deduction for export turnover for the SME exporters for a limited period of five years. The government has also asked RBI to finalize certain modalities based on the recommendations of the Padmanabhan committee, such as to provide additional interest subsidies of 2% for exporters who repay in time; provide dollar credit at a cheaper rate; relax RBI’s external commercial borrowings limit for the MSME sector; and have banks aim for at least 40% export credit to MSMEs. The recommendations of the committee are currently going through inter-ministerial consultations.
(Source: Live Mint)
