India Economic News Consulate General of India April 2013 ... › adminpart › newsletterimages...HSBC : India expanded at a faster rate than China in February even as emerging market

Consulate General of India, Widenmayer Strasse 15,80538 Munich, Germany. Web: www.cgimunich.com

1

India Economic News Consulate General of IndiaApril 2013 Munich

Economy to return to robust growth path in 2-3 years: PM:

Cautioning the opposition against dampening the spirit of the economy, Prime Minister Manmohan Singh said government has taken a number of steps to return to the robust growth path in the next two to three years.

India to grow by 6%: World Bank Chief:

World Bank has said the Indian economy will soon get back to high growth path of 6% next year and more thereafter, backing the government's assessment presented in the budget. This opinion was voiced by World Bank President Jim Yong Kim.

India attractive destination for M&A activities: Ernst & Young:

Favourable demographics and growth opportunities keep India an "attractive" destination for merger and acquisition activities across diverse sectors including consumer goods and pharmaceuticals, according to global consultancy Ernst & Young.

Indian auto market size to triple to 9.3 mn units by 2020: JD Power:

The global marketing information services company JD Power believes that Car sales in India may be on a downslide at present but that the total automobile market size will triple to 9.3 million

http://www.cgimunich.com


2

units by 2020 since it estimates that, as the number of people with disposable income increases, the sector will grow at a compounded annual growth rate of 16 per cent during the period. Further, the infrastructure improvement in India will also play a role in the growth of the automobile market.

Worst may be over for India: Moody's Analytics:

As per a News report by Moody’s, Analytics said that the worst may be over for the Indian economy. It sees economic growth at around 7% from 2014 onwards in its India Outlook report titled The Worst May Be Over. At the same time, Moody's has cautioned the government against targeting double-digit GDP expansion saying any growth beyond 7% without reforms will fuel inflation that will result in "more painful" future adjustments.

Share of goods exports rises to 17.7% of GDP:

In a written reply to Parliament, Minister of State for Commerce and Industry D. Purandeswari said there

has been a continuous upward movement of percentage share of merchandise exports in the overall GDP of India which showed that it played an important role in the economic development of the country. Despite a slowdown in global demand for goods, the share of India’s merchandise exports has increased to 17.7 per cent in 2011-12 from 13.9 per centin 2009-10.

FIIs pump over Rs 1,400 cr in stocks in first week of March:

Overseas investors have pumped in more than Rs 1,400 crore ($254 million) in the Indian stock market in the first week of March. This takes their total investment tally to Rs 47,909 crore ($8.88 billion) in the country's equity market in calendar year 2013 so far.

FIPB to consider 26 FDI proposals:

The Finance Ministry will consider 26 proposals of foreign direct investment (FDI), including that of Punj Lloyd and Pipavav Defence and Offshore Engineering Company. The proposals are



3

listed on the agenda of the 189th meeting of Foreign Investment Promotion Board (FIPB). The meeting will be headed by the Department of Economic Affairs (DEA) Secretary Arvind Mayaram. Sectors which received large FDI inflows during the nine months of the current fiscal include hotel and tourism,Metallurgical, construction and automobiles. India received maximum FDI from Mauritius, followed by Japan, Singapore, the Netherlands and the UK. The government has been liberalising foreign investment Policy with an aim to attract maximum FDI in the country.

Saudi Arabia, AP to boost bilateral trade:

Andhra Pradesh Chief Minister N. Kiran Kumar Reddy assured a visiting Saudi delegation that the Government will extend all incentives and facilities to industrialists from Saudi Arabia. The Chief Ministersaid Andhra Pradesh provides immense opportunities in the areas of petro-chemicals, bulk drugs, pharmaceuticals, IT, BT, mining sectors for the Saudi investors and

industrialists. He said the State provides a number of investment incentives such as initial tax holiday, reimbursement of VAT, lowest power tariff and good infrastructure.

India is one of the top ten destinations for Italian investments according to Daniele Mancini:

Daniele Mancini, ambassador of Italy to India, has observed that according to National Exports Plan of Italy, a 150 billion-euro export market would be explored by the country and India is one of the top ten important destinations for Italian investments. He said that, Infrastructure being a thrust area, Italian investors are not only exploring the first class cities of India, but also looking at Tier II and III cities in this country. Various joint venture proposals have been sanctioned by the Italian government. He offered support of Italian experts to Indian SMEs for boosting skills and technology in India.



4

India, US to ink accord to strengthen aviation security:

According to Mr Anil Srivastava, Joint Secretary in the Ministry of Civil Aviation, India and the US will soon sign an information sharing agreement to strengthen aviation security in both the countries. Once the draft is approved by the Cabinet, the governments of India and the US would sign the secret security information sharing agreement.

A.P Govt keen on promoting micro, small units:

Andhra Pradesh Government is keen on promoting micro, small and medium enterprises (MSMEs), according to Minister of Major Industries J. Geetha Reddy. She said Government would consider allotment of land to such clusters on a proactive basis. There were about 1.8 lakh SMEs in the State employing a capital of Rs 33,900 crore and providing jobs to close to two lakh people.

Cotton textile exports to growto $9.56 bn in FY13 Texprocil:

According to Manikam Ramaswami, Chairman of Cotton Textiles Export Promotion Council (Texprocil), Cotton textile exports are expected to grow by 9 per cent at USD 9.56 billion in the current fiscal as against USD 8.42 billion in the previous year despite adverse market conditions in key markets of the US and European Union.

IT-ITES exports up 23% at Rs 4 lakh cr in FY13:

In a written reply to the Lok Sabha, Minister of State for Communications and IT Milind Deora said India's IT-ITES exports are estimated to have risen by 23.4% at about Rs 4.11 lakh crore in the current fiscal. India's IT-Information Technology Enabled Services (IT-ITES) exports stood at about Rs 3.32 lakh crore in the 2011-12 fiscal. In dollar terms, exports are estimated to be up 10.2%, to about $75.8 billion in 2012-13, from about $68.8 billion in 2011-12.



5

Indian economy expands more than China in February: HSBC :

India expanded at a faster rate than China in February even as emerging market economies witnessed a moderation in economic growth, as per a survey of HSBC. During February, the HSBC composite index for India, which maps both manufacturing and services sectors, stood at 54.8, whereas for China it was 51.4.

India's Jan industrial output up 2.4%, analysts views:

India's industrial output grew a faster-than expected at 2.4 per cent in January from a year earlier, government data showed. Analysts had expected the output to grow 1.2 per cent annually. Manufacturing, which constitutes about 76 per cent of industrial production, grew 2.7 per cent from a year earlier.

India Inc invests $1.65 bn in February in foreign countries:

The Reserve Bank of India (RBI) said that Indian

companies invested $1.65 billion abroad in February. Companies committed the money by the way of equity, loans and issuing guarantees to their wholly-owned subsidiaries (WOS) and joint ventures (JVs) in foreign countries. Major companies which invested in foreign countries included Escorts Heart Institute, Crompton Greaves and Punj Lloyd.

Considering relaxing FDI cap in various sectors: P Chidambaram:

Finance Minister P Chidambaram assured continuing the reform push. He informed that the government is considering further liberalising foreign investment cap in various sectors. The government had in September last year liberalised Foreign Direct Investment (FDI) norms for various sectors, including retail and aviation. While in multi-brand retail it is 51 per cent, in telecom and banking it is 74 per cent. While the Cabinet has approved hiking FDI limit in insurance and pension sector to 49 per cent, a bill to that effect is pending in Parliament.



6

India, Africa revise 2015 trade target upwards to $100 bn:

Notwithstanding the gloomy global economic environment, India and Africa revised upwards their bilateral trade target for 2015 to USD 100 billion. The decision to revise the target by USD 10 was taken at the India-Africa Ministers Round Table conference chaired by Commerce, Industry & Textiles Anand Sharma. Trade between India and Africa totalled USD 70 billion in 2011-12.

Domestic pharma sales grow 7.7% in February:

After a recovery in January, drug sales to retailers rose by a modest 7.7 per cent in February, according to a data compiled by market research firm AIOCD AWACS. This was probably due to a high base given the strong performance last year and higher substitution of branded drugs with their unbranded equivalents. While 59 out of the top 150 companies managed to grow faster than

the industry average, 51 companies reported year-on-year decline in sales during the month.

SME market growing at 4.53%: Zinnov:

India which is home to about 4.88 crore small and medium business (SMB) units is all set to become the largest SME nation globally, a study by market research firm Zinnov has said. According to the report, the SME sector in India has given employment to around 8.11 crore people. Today 1.5 million SMBs export their products or services outside India which is a sign of the sector’s rapid evolution,” Praveen Bhadada, Director — Market Expansion, Zinnov said. The Indian SME space today is largely dominated by micro scale businesses, contributing 95 per cent of the SME landscape, followed by small scale businesses contributing 4.8 per cent and the rest 0.2 per cent by medium scale businesses.



7

DISCLAIMER

This newsletter is a compilation of news articlesfrom various business e-newspapers and in no

way is an endorsement or reflection ofviews of Consulate General of India, Munich.

For queries contact:

Mr. VSDL Surendra, Consul (PIC), Consulate General of India, Widenmayer Strasse 15, 80538 Munich, Germany.

Email: [email protected] , Web: www.cgimunich.com


mailto:[email protected]


Documents

India Economic News Consulate General of India April 2013 ... › adminpart › newsletterimages...HSBC : India expanded at a faster rate than China in February even as emerging market