สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 19 ธันวาคม 2555
New FTA with Asean ready
India has concluded discussions on a free trade agreement (FTA) in services and investments with the 10-member Association of Southeast Asian Nations (Asean) and a formal announcement is to be made on Thursday.
Besides, the free trade pact with ASEAN, India is negotiating market opening pacts bilaterally with members of the bloc. An FTA has already been implemented with Singapore and Malaysia and one is being negotiated with Indonesia. Srirat Rastapana, director-general of the Thai government’s department of international trade promotion, said the ongoing talks between India and Thailand for such a pact might conclude next month. "We are at the last leg of negotiations. (The) FTA will help to drive the economic relationship,” he said.
(Sources: Business Standard, Times of India, Indiatimes, the Hindu, Hindu Business Line)
Coal to approach oil as top energy source by 2017: IEA
Global coal demand will rise 2.6 % annually in the next six years and challenge oil as the top energy source, according to the International Energy Agency (IEA).
Coal consumption will climb to 4.32 billion tonnes of oil equivalent by 2017, compared with about 4.4 billion for oil, the Paris-based agency said on Tuesday in its first Medium-Term Coal Market Report. Usage will rise in all regions except the US, where cheap natural gas has damped demand, the IEA said.
(Sources: Bloomberg, Infraline, the Tribune, i4u, Zeenews, IBNLive)
Natural gas sector growth hit by pricing, mktg policies: Report
India's natural gas sector growth has been constrained by curbs imposed by pricing and marketing policies of the government, a FICCI-PWC report said today.
"The gas sector in India holds tremendous potential. However, its growth is constrained due to pricing and marketing policies of the government with respect to gas produced domestically," the joint paper titled 'Rising above the sub-optimal Exploring ways to find energy solutions' said.
The government not just fixes the price of domestically produced gas but also determines who it should be sold to.
Gas produced by PSUs and Reliance Industries is priced at USD 4.2 per million metric British thermal units (mmbtu), whereas gas produced from some of the blocks has been allowed to be sold at slightly higher rate.
(Sources: Economic Times, Indiatimes, Financial Express, Moneycontrol, India Everyday)
Inflation at 5-6 per cent not too high: Kaushik Basu
World Bank Chief Economist Kaushik Basu is of the view that inflation of 5-6 % for India is "not too high" during high growth trajectory.
However, Basu did not see inflation going down to 2-3 % as tried earlier. At present, India's inflation is around 7 %.
Overlooking demands of the industry and the bankers, the RBI yesterday in its monetary policy review had left the short-term lending (repo) rate and the Cash Reserve Ratio (CRR) unchanged at 8 % and 4.25 %, respectively.
RBI has not cut interest rate since April 2012 citing concerns over high inflation.
Basu believed India's high growth of nine per cent if the reforms continued for the next two years.
(Sources: Economic Times, Indiatimes, Business Standard, Moneycontrol, SME India, PTI)
RBI ready for policy gear shift to enter growth lane
Despite the slowdown in the economy and moderating inflation, the Reserve Bank of India (RBI) on Tuesday chose to leave the key repo rate unchanged at 8% and the cash reserve ratio (CRR) at 4.25%. However, there were strong hints that the policy rate might be lowered in January. The central bank also reassured the money market that it would ensure enough liquidity, ostensibly through open market operations (OMO).
(Sources: Economic Times, Indiatimes, Financial Express, Indian Express, Business Today)
Economic Section
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