สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 31 สิงหาคม 2555

Economic growth seen around three-year low

India's GDP growth likely languished around its lowest in three years in the quarter that ended in June, offering no respite for Prime Minister Man Mohan Singh as he struggles to escape from a series of political scandals that have paralysed his economic agenda.

Weak demand in the West has hit exports, but the heaviest toll on the economy is from overspending and a lack of reforms at home - a point made by both the Reserve Bank of India and ratings agencies Fitch and Standard & Poor's, who threaten to downgrade India's sovereign ratings to junk.

A Reuter’s poll of 38 economists produced a median forecast of 5.3 % year-on-year GDP growth for the April-June quarter, unchanged from January-March, which was the slowest growth rate since the same quarter of 2009. The data is due to be released at 0530 GMT on Friday.

(Sources: Reuters India, Business Standard, Economic Times, IBNLive)

After sharp GDP revision, data reliability under scrutiny

India has sharply revised its GDP data to show a much worse economic performance than originally thought in the aftermath of the global financial crisis, putting renewed scrutiny on the reliability of government data.

Questions over the reliability of Indian data are not new. Economists have previously challenged the accuracy of other indicators such as industrial production and exports. Faulty data makes it potentially trickier for policymakers to take decisions on matters like interest rates.

Globally, economic data is revised on a regular basis. India, for example, revises inflation data every month. But the sharp revision - and the time gap from when the data was first collected - raised eyebrows.

(Sources: Reuters India, Business World, Yahoo, IBNLive)

Ministerial panel to decide fate of 17 blocks

An inter-ministerial panel under the coal ministry will decide the fate of allocation of 17 captive coal blocks allotted to big corporate houses, next week. This is on the back of severe delays in their development. This comes close on the heels of the Central Bureau of Investigation (CBI) investigating the alleged corruption in allocation of blocks.

The coal ministry had recently issued show cause notices to the companies, which own the mining rights of the 17 blocks allocated between 2006 and 2009. Through the notices, the ministry had threatened the companies of cancelling their allotments and sought justifications for the delay. The 17 blocks are among the 57 blocks, where delays were identified by a review committee earlier this year.

(Sources: Business Standard, India Today, Worldnews, Economic Times)

India to see 30K MW renewable capacity addition in 12th plan

India is expected to see renewable energy capacity addition of 30,000 MW, with significant contribution from wind power, over the next five years.

India has renewable generation capacity of about 25,000 MW. Amid severe power shortage in the country there is increased focus on generating electricity from renewable sources like wind, solar and hydro to bring down the demand supply gap.

(Sources: Economic Times, Hindu Business Line, Worldnews, Zeenews)

Government won't relax ownership clause in FDI policy on single-brand retail

The department of industrial policy and promotion (DIPP), the nodal agency for foreign direct investments, has decided not to relax the requirement that the investor company must also own the brand to invest in single-brand retail.

India in January allowed 100 % foreign investment in single-brand retail, doing away with the earlier 51 % cap, but introduced riders such as the brand ownership clause and that at least 30 % produce must be sourced from small and medium enterprises in the country.

Foreign investors have been seeking some dilution in these conditions, particularly in the ownership clause because most global retailers make investments through a subsidiary.

(Sources: Economic Times, Livemint, Worldnews, Moneycontrol, IBNLive)

9% GDP growth difficult: Planning Commission

Plan panel today said that it will be difficult to set 9 % annual average economic growth target in the 12th Five Year Plan (2012-17) in view of the impact of uncertain global economic situation on India. "The global economic situation continues to be uncertain. It will therefore be difficult to stay with the earlier target of 9 % average annual GDP growth rate during the 12th Plan, "Minister of State for Planning, Ashwani Kumar said in written reply to Rajya Sabha.

(Sources: Financial Express, Indian Express, Express India, Livemint, IBNLive)

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