สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 30 สิงหาคม 2555
Consumption in rural India growing faster than urban India
Consumption in rural India is growing faster than in urban India for the first time since India's structural reforms in 1991, according a study by ratings firm Crisil.
Given the large size of India's rural population, the value of goods and services consumed has always been greater in rural India, but urban India had narrowed the differential during most of the last decade by growing at a faster pace, it said. Between 2009-10 and 2011- 12, additional spending by rural India was $ 67.47 billion, significantly higher than $ 53.86 billion by Urban Indians.
(Sources: Business Standard, Zeenews, Hindustan Times, Outlook India, Hindu Business Line)
India's rice output expected to fall 6 per cent: FAO
India's milled rice production is expected to decline 6 % to 98.5 million tonnes in the current kharif (summer sowing) season due to late onset of monsoon rains leading to deficit in key northern and southern growing areas, United Nation's body FAO said.
The Food and Agriculture Organisation said in its latest report that the delay and fall in sowing in the current season was on account of insufficient rains and shortages in irrigation facilities.
(Sources: Economic Times, Indiatimes, Hindu Business Line, Worldnews)
Govt approves $ 2.52 billion to promote hybrid, electric vehicles
To reduce dependence on fossil fuels, India will spend at least $4.05 billion in the next eight years to promote electric and hybrid vehicles, of which the government will provide some $ 2.33 - $ 2.52 billion. Auto makers and the government plan to put six million electric vehicles on road by 2020, according to a new policy approved on Wednesday.
The government will fund research and development, infrastructure and subsidies, S. Sundareshan, secretary, department of heavy industries, said after a meeting of ministers, officials and experts.
Some 130,000 electric vehicles were sold in India in 2011-12, according to lobby group Society of Manufacturers of Electric Vehicles.
(Sources: Livemint, India Today, Business Today, i4u, IBNLive)
Steel imports surge 40% in June-July
During June-July 2012, steel imports rose 40% to 1.471 million tones (mt) against imports of 1.01 mt in the same period last year. Flat steel products used in cars and consumer durables accounted for 63% of total imports.
Despite an average demand growth of 8-9% a year, low capacity addition in domestic steel sector, where a number of large projects remain stuck, seems to have led to the spike in imports. India, the world's 4th largest steel producer, is now a net importer of steel.
(Sources: Economic Times, Indiatimes, Hindu Business Line, Worldnews)
India shines in Asia on stable earnings, reform hopes
Despite a worsening macroeconomic scenario, overseas investors continue to prefer Indian shares over their emerging markets and Asian peers due to stable corporate earnings, expectations of government action and increasing probability of further global monetary easing.
Foreign institutional investors (FIIs) have poured in about $11.76 billion into Indian shares this year till August 27, Securities and Exchange Board of India (Sebi) data showed. This is the highest among Asian countries for which Bloomberg compiles data.
The Bombay Stock Exchange (BSE) benchmark, Sensex has gained 7.6 % in dollar terms, making India one of the best performing markets in Asia. Indian shares have also outperformed other emerging markets like China, Russia and Brazil during this period.
(Sources: Economic Times, Reuters, BBC News, Moneycontrol, IBNLive)
Auto parts maker Piolax starts ops at Sri City
Piolax India, a subsidiary of Japanese auto component manufacturer, Piolax, inaugurated its manufacturing facility at the Sri City industrial park in Andhra Pradesh on Wednesday.
The facility has been set up with an investment of around $ 6.8 million and produces products including coil springs, wire forms, and metal/plastic fasteners for the automotive and other sectors. It will be supplying these products to Nissan, joint ventures of Ashok Leyland-Nissan and Renault-Nissan, and Honda among others, a press release said.
Piolax Inc, is a manufacturer of automotive parts such as industrial fasteners and compact units. It has manufacturing facilities in the US, UK, China, Thailand and now in India. The company also caters to consumer, security and medical sectors.
(Sources: Business Standard, Hindu Business Line, i4u, Moneycontrol)
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