Strengthening Iran-India trade ties a great opportunity for both

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Iran’s Ambassador to India Gholamreza Ansari at the inaugural session of the United Economic Forum’s Trade Summit 2015 in Chennai on Saturday.

Iran’s Ambassador to India Gholamreza Ansari at the inaugural session of the United Economic Forum’s Trade Summit 2015 in Chennai on Saturday.

India is on top of Iran’s list of partners with which it plans to strengthen economic ties in the region, according to Ghulam Raza Ansari, Ambassador of Iran to India.

Ansari, who just returned from Iran after participating in a seminar on its economic direction post-sanctions, said that the countries in the region had been Iran’s biggest asset in tiding over a three-decade long sanction imposed by the West.

Iran had managed the sanctions and achieved its rights through diplomacy and cooperation. It will first focus on growing trade relations in the region and India is a top priority. There is a great opportunity for both countries to increase economic relations across a wide range of sectors such as oil and gas including transmission, metal, food and agriculture.

Tamil Nadu particularly was first destination of Iran’s investments when it invested in 1960s in petrochemicals and refinery, he said, addressing the inaugural function of a two-day trade summit organised by the United Economic Forum, a platform for the socio-economic development of muslims.

Mufti Mohammad Sayeed, Chief Minister, Jammu and Kashmir, said education is the key to the development of the community.

The Sachar Committee, which had been appointed by the previous Central Government to go into socio economic status of Muslims and make recommendations for their development, had pointed out that educational backwardness was the reason for economic backwardness.

The Committee’s recommendations such as starting quality government schools in areas where there are Muslims, schools for girls and skill development facilities need to be implemented. Degrees awarded by traditional institutions such as the Madarasas must be recognised in mainstream education and competitive exams, he said.

Ahmed AR Buhari, President, UEF, said India is a bright spot in the globe in terms of economic development. The forum is actively participating in the ‘Make in India’ campaign launched by the Prime Minister, Narendra Modi.

UEF has set a target of garnering ₹ 10,000 crore in investments during the two-day summit and has tied up investments of over ₹ 2,000 crore on the first day across a range of sectors including tourism, hospitality, real estate and logistics.

Source: http://www.thehindubusinessline.com/economy/strengthening-iranindia-trade-ties-a-great-opportunity-for-both/article7877117.ece

 

 

Optimistic About India Growth Prospects: IMF

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IMF

Confident that the Indian economy is increasingly on a stable footing, the International Monetary Fund (IMF) on Sunday said further progress is required on the long-standing supply bottlenecks and for achieving faster and more inclusive growth.

“We are optimistic about India’s prospects and view the economy being on an increasingly stable footing,” said Kalpana Kochhar, deputy director of the IMF’s Asia and Pacific department.

“Inflation has declined, the current account deficit is in check, international reserves are ample and economic growth is picking up,” she added.

Listing out various positive developments, Ms Kochhar said a number of important economic and structural reforms have also been initiated.

These include diesel price deregulation, steps to create more flexible labour markets (particularly at the state level), coal sector reforms, adoption of the flexible inflation targeting framework by the Reserve Bank of India (RBI), increasing infrastructure spending, and enhancing financial inclusion, Ms Kochhar told PTI in an interview.

“But further progress is needed to relax long-standing supply bottlenecks (especially in the energy, mining and power sectors) and achieve faster and more inclusive growth,” she said.

The IMF has often said that India is among the few bright spots in an otherwise gloomier world economy.

In a recent report published ahead of the G20 Summit, which began in Turkey on Sunday, the Washington-based multilateral institution said India’s growth will benefit from recent policy reforms, a consequent pickup in investment and lower commodity prices.

It also projected a 7.5 per cent growth rate for India in 2016, as against China’s 6.3 per cent.

However, for the current 2015 year, the IMF has projected 7.3 per cent growth rate, which is 0.2 per cent less than its projection made for the year in July.

“Growth in China is expected to decline as excesses in real estate, credit, and investment continue to unwind. India’s growth will benefit from recent policy reforms, a consequent pickup in investment, and lower commodity prices,” the report said.

Source: http://profit.ndtv.com/news/economy/article-optimistic-about-india-growth-prospects-imf-1243581

Modi government announces FDI (Foreign Direct Investment) reforms in 15 sectors

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Giving the much needed reforms impetus to the economy, Prime Minister Narendra Modi-led NDA government on Tuesday announced Foreign Direct Investment (FDI) reforms in as many as 15 sectors.

According to the government’s release, “The crux of these reforms is to further ease, rationalise and simplify the process of foreign investments in the country and to put more and more FDI proposals on automatic route instead of government route where time and energy of the investors is wasted.”

These FDI reforms are set to benefit sectors such as agriculture and animal husbandry, plantation, defence, broadcasting, civil aviation and manufacturing. “Further refining of foreign investments in key sectors like construction where 50 million houses for poor are to be built. Opening up the manufacturing Sector for wholesale, retail and e-Commerce so that the industries are motivated to Make In India and sell it to the customers here instead of importing from other countries,” the release added..

The proposed reforms also enhance the limit of Foreign Investment Promotion Board (FIPB) from current Rs 3,000 crore to Rs 5,000 crore. The proposal also contains many other long pending corrections including those being felt by the limited liability partnerships as well as NRI owned companies who seem motivated to invest in India. Few other proposals seek to enhance the sectoral caps so that foreign investors don’t have to face fragmented ownership issues and get motivated to deploy resources and technology with full force.

India got FDI of $19.39 billion in the April-June period, according to government data, up 29.5% over the year earlier. The Modi government has been pushing hard to drum up overseas investment, easing FDI regulations in various sectors including the railways, medical devices, insurance, pension, construction and defence.

Last week, ET had reported that the government plans to launch a series of policy reforms, signalling its intent to get moving again on economic changes and putting the Opposition on notice before Parliament convenes for the winter session.

Key to the Narendra Modi government’s renewed development push will be power, labour and infrastructure, three senior government officials had told ET. Among the highlights are a revival package for power distribution companies, freeing up labour rules and a possible push for the railways, ET had said in its report.

The road map for the phasing out of corporate tax exemptions and reduction in the tax rate to 25% is being drawn up. Besides this, the Startup India, Standup India plan and the rollout of the National Investment and Infrastructure Fund (NIIF) are also being worked on.

A simpler foreign direct investment (FDI) policy, further easing of the external commercial borrowing (ECB) regime and changes in the public-private partnership (PPP) framework to attract more private investment could also announced.

Source: http://economictimes.indiatimes.com/articleshow/49735873.cms

 

India, UK strike 3.2 bn pound deal on energy, climate change

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The package encompasses 3.2 billion pounds of commercial agreements and initiatives to share technical, scientific, and financial and policy expertise.

Ahead of the Paris climate summit, India and Britain have agreed on a comprehensive package of collaboration on energy and climate change which includes commercial deals worth 3.2 billion pounds.

During Prime Minister Narendra Modi’s ongoing UK visit, the two countries reaffirmed the importance of addressing climate change and promoting secure, affordable and sustainable supplies of energy that will support economic growth, energy security and energy access.

“The UK and India’s partnership on energy is going from strength to strength. We share world-class expertise in research and innovation. The UK’s experience in green finance and technology in particular makes us well-placed to work together to promote secure, affordable and sustainable supplies of energy and address climate change,” said UK energy and climate change secretary Amber Rudd.

“The upcoming talks in Paris will be a crucial moment in the fight against climate change and I am pleased to be able to work closely with India to ensure that the deal we secure helps to keep the below 2 degree limit on global warming within reach,” she added.

The package encompasses 3.2 billion pounds of commercial agreements, joint research programmes and initiatives to share technical, scientific, and financial and policy expertise.

This is aimed at encouraging the research, development and eventual deployment of clean technology, renewables, gas and nuclear.

As part of the package, Britain also announced the UK Climate Investments joint venture with the Green Investment Bank. This will invest up to 200 million pounds in renewable energy and energy efficiency in India and Africa.

The two countries also agreed on the need for an ambitious and comprehensive global agreement to tackle climate change in Paris later this month and that the agreement should signal to investors and innovators the long term commitment of governments to clean and more sustainable economies.

Modi and his UK counterpart David Cameron also welcomed the completion of negotiations for a Nuclear Cooperation Agreement and the signing of a Memorandum of Understanding (MoU) related to closer civil nuclear collaboration between the UK and India.

 

Source: http://economictimes.indiatimes.com/articleshow/49768488.cms

 

PM Narendra Modi world’s 9th most powerful person in Forbes list. Putin on the Top.

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Prime Minister Narendra Modi has been ranked as the world’s ninth most powerful person by Forbes magazine in a 2015 list which is topped by Russian President Vladimir Putin.Modi was placed 14th in the 2014 Forbes list of world’s powerful people.

Forbes while releasing the list today at the same time said governing 1.2 billion people in India requires more than “shaking hands” and that Modi must pass his party BJP’s reform agenda and keep “fractious opposition” under control.

German Chancellor Angela Merkel is at the second spot followed by US President Barack Obama (third) and Pope Francis (fourth) and Chinese President Xi Jinping (fifth).

Apart from Modi who is at the ninth position, others in the top ten are Microsoft Founder Bill Gates at the sixth place, US Federal Reserve Chairperson Janet Yellen (7), UK Prime Minister David Cameron (8) and Google’s Larry Page(10)

About Modi, the magazine said that India’s “populist” Prime Minister presided over 7.4 per cent GDP growth in his first year in office, and “raised his profile” as a global leader during official visits with Barack Obama and Xi Jinping.

“A barnstorming tour of Silicon Valley reinforced his nation’s massive importance in tech. But governing 1.2 billion people requires more than shaking hands: Now Modi must pass his party’s reform agenda and keep fractious opposition under control,” it said.

To compile the list of world’s most powerful people, the magazine said it considered hundreds of candidates from various walks of life all around the globe, and measured their power along four dimensions. They are whether the candidate has power over lots of people, financial resources controlled by each person, whether the candidate is powerful in multiple spheres and whether the candidates actively used their power.

The only other Indian in the most powerful people’s list is Reliance Industries Chairman Mukesh Ambani who is ranked at the 36th position.

Among Indian-origin people, steel tycoon Lakshmi Mittal is at the 55th spot while Microsoft CEO Satya Nadella is ranked 61st.

About Putin, the magazine said he “continues to prove he’s one of the few men in the world powerful enough to do what he wants — and get away with it”.

“International sanctions set in place after he seized Crimea and waged war-by-proxy in the Ukraine have kneecapped the Ruble and driven Russia into deepening recession, but haven’t hurt Putin one bit: In June his approval ratings reached an all-time high of 89 per cent,” it noted.

The magazine said that German Chancellor Angela Merkel continues her reign as the most powerful woman on the planet for 10 years running.

About Obama, Forbes said there is no doubt that the US remains the world’s greatest economic, cultural, diplomatic, technological and military power.

“But as Obama enters the final year of his presidency, it’s clear his influence is shrinking, and it’s a bigger struggle than ever to get things done.

“At home, his approval ratings are perpetually stuck under 50 per cent; abroad, he’s outshined by Angela Merkel in Europe, and outmaneuvered by Putin in the Middle East,” it added.

Source: http://economictimes.indiatimes.com/articleshow/49663215.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

RBI allows foreign currency-rupee swap transactions

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RBI said that such swap transactions could be undertaken by the MFI/IFI concerned on a back-to-back basis with an authorised dealers (AD) Category-I bank in India

The Reserve Bank of India (RBI) on Thursday allowed residents having a long-term foreign currency liability to enter into foreign currency-rupee swaps with multilateral or international financial institutions (MFI/IFI) in which the government of India is a shareholding member, subject to certain conditions.

RBI said that such swap transactions could be undertaken by the MFI/IFI concerned on a back-to-back basis with an authorised dealers (AD) Category-I bank in India. The tenure of such swaps should be at least three years, according to a notification issued by the central bank.

In the event of a default by the resident borrower on its swap obligations, the MFI/IFI concerned will have to bring in foreign currency funds to meet its corresponding liabilities to the counter-party AD Cat-I bank in India, the central bank said.

The AD Cat-I bank will have to report the FCY-INR swaps transactions entered into with the MFIs/IFIs on a back-to-back basis to CCIL reporting platform, including the details of the foreign currency borrower. Furthermore, the banks will have to bring the contents of this circular to the notice of their constituents and customers concerned.

Services sector growth hits 8-month high in October

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India’s services sector activity touched an eight-month high in October driven by a significant rise in new business orders even as growth in manufacturing output eased, a Nikkei survey said.

The Nikkei Business Activity index climbed to 53.2 in October, from 51.3 in September, as fresh orders expanded at a solid pace and were most pronounced since February.

“Services companies saw a faster rise in new businesses than their manufacturing counterparts,” said Pollyanna De Lima, economist at Markit, which compiled the survey.

Meanwhile, the seasonally adjusted Nikkei India Composite PMI Output index, which maps manufacturing and services sectors, rose to 52.6 in October from 51.5 in September helped by new businesses.

A reading of 50 divides growth and contraction.

“India’s economic growth shifted into higher gear in October driven by the services sector. Although manufacturing production continued to expand, the growth eased and was sluggish by historical standards,” Lima added.

Lima noted that “the upward trend in private sector output reflected stronger inflows of incoming new works, one that was most marked since March”.

Going forward, services business sentiment regarding the 12-month business outlook remained positive in October.

Notwithstanding the growth in services activity, October data indicated that services sector employment remained unchanged. Around 98 per cent of respondents reported no change in payroll numbers since the preceding month.

“Private sector firms remained wary of costs and payroll numbers, once again, were unchanged,” Lima said.

On the prices front, the Nikkei survey said average input costs rose in both services and manufacturing sectors, albeit at a slower pace.

Reserve Bank Governor Raghuram Rajan on September 29 effected a more-than-expected interest rate cut of half a per cent to spur the economy.

Moreover, RBI has also lowered its economic growth forecast for the current fiscal to 7.4 per cent, from its previous projection of 7.6 per cent.

The April-June quarter GDP slipped to 7 per cent, from 7.5 per cent in the preceding quarter.

Source:http://economictimes.indiatimes.com/articleshow/49654978.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst