Focus On Fdis, Domestic Investments And Improve Exports Need Of Hour For India To Come Out Of Prevailing Economic Volatility

Deputy Governor, Reserve Bank of India, Mr. H R Khan prescribed a three pronged strategy for India to come out of prevailing economic volatility, uncertainty, ambiguity and complexity by laying its focus on attracting FDIs, domestic investments and improving on front of exports.

Declining to subscribe to the view that Indian economy is trapped in economic turmoil, the Deputy Governor said that economic turmoil was not the right expression to define the current economic stagnation, on the contrary the truth is India has been confronting with issues of economic volatility, uncertainty, ambiguity and complexity which her economy can come out of provided and additional attention is laid on to improving FDIs and domestic investment scenario with improved export focus on new and emerging markets.

Addressing a conference on Global Economic Turmoil - Impact on Indian Economy: Look Ahead under aegis of PHD Chamber of Commerce and Industry, Mr. Khan said that India's tax GDP and her expenditure GDP ratio needed to be enhanced which has fallen less to a respective levels of 5.4% and 6.4% with comparable economies.

The Deputy Governor thus called for maintaining a quality of fiscal deficit with suitable and proper corporate balance sheet, pointing out that India also needs to clear up its stressed assets scenario with three main approaches in mind which consist of a paradigm to resolving, restructuring and recovering these.

He concurred with the view that in the recent past portfolio investments have receded but India compensated the loss by accelerated FDIs and with deepening of debt market for which the RBI has taken measures to make it more broad base with a celebrated manner.

 

Source :.business-standard.com

Volkswagen Marks Five Years Of Made-In-India Exports

Volkswagen India is celebrating its five-year export journey in India with the shipment of over 185,000 cars made in India for global markets.

Exactly five years ago to the day, VW India’s first shipment to South Africa – its first single export market – from Volkswagen India reached its destination. Since then, the carmaker has expanded its shipments to over 35 countries across Asia, Africa, North America and South America. The carmaker began its export operations from India within two years of setting up its production plant in Pune in 2009.

In 2015, the company exported over 55% of its cars produced in Pune to over 35 countries across four continents while serving as the hub for parts and components to Malaysia. The range of cars being exported includes left-hand drive as well as right-hand drive Polo and Vento cars. Mexico has been the single largest export market for Volkswagen India where over 80% of the export volume was shipped in 2015.

Commenting on the export drive, Dr Andreas Lauermann, president and MD, Volkswagen India, said, “Volkswagen set up its Indian operations especially for the domestic Indian market and we still continue to focus primarily on our local customers and their demands. However, with fluctuations in the domestic demand and the currency exchange, it became necessary for us to establish a second strong leg of our operations here in India. Since a Volkswagen made anywhere in the world follows the same quality and engineering standards, we were able to impress several export markets and create a demand there with our cars built in India. The acceptance and rising demand from a variety of markets and consumers from Asia to America stands a testimony to the global standards and state-of-the-art manufacturing that we undertake here at the Pune Plant.”
 

 

Source :.autocarpro.in

Tea Exports To Pakistan Up 60% To Rs 161 Crore

NEW DELHI: India's tea exports to Pakistan rose by 60 per cent to Rs 160.82 crore in the first 10 months of the current fiscal.

The overall outward shipments of tea, on the other hand, surged by just 11 per cent to Rs 3,597.41 crore.

Tea exports to the neighboring nation stood at Rs 100.61 crore in the year-ago period.

India is the world's second biggest tea producer and also one of the largest consumers. The country exports CTC (crush- tear-curl) grade tea to countries like Egypt, the UK, and other traditional varieties to Iraq, Iran and Russia.

The overall tea shipments was at Rs 3,240.90 crore in the April-January period of the 2014-15 fiscal, according to the Tea Board data.

The per unit price at which tea was exported to Pakistan increased to Rs 97.58 per kg from Rs 84.05 per kg a year ago.

In volume terms, outward shipments from India to Pakistan increased to 16.48 million kg in the 10-month period of 2015-16, from 11.97 million kg in April-January period of 2014-15.

The total tea exported from India in the period under review rose to 186.63 million kg as against 164.88 million kg a year earlier.

The increase in tea exports was seen in major tea-importing countries such as the CIS countries, the UK, Germany, Poland, the UAE, Bangladesh and Sri Lanka.

Tea production has been low this fiscal mainly due to unfavorable weather conditions. Besides, wage-related issues also hit tea producers.

The tea sector has also been facing other issues including migration of laborers to other industries.

Tea plucking in India mainly starts between July and October.

Source :economictimes.indiatimes.com

Gold Jewellery Imports From Asean To Face 12.5% Countervailing Duty

NEW DELHI: After steel and metals, the government has moved to protect the local gold jewellery-making industry from imports that threaten the jobs in the sector.

Gold jewellery imports from the 10-member Association of South East Asian Nations (ASEAN) under the free-trade agreement, which have been under the scanner for some time, will face a 12.5% countervailing duty in lieu of 12.5% excise duty imposed in the budget. The duty will make imports more expensive and protect the local industry.

"Excise duty without credit is pegged at 1%, but CVD would be equivalent of 12.5%, the rate proposed with credit," said a government official.

The import of jewellery, especially under the India-ASEAN free-trade agreement after basic customs duty on gold was increased to 10%, has emerged as a big issue. The move to raise customs duty was aimed at discouraging the import of the yellow metal, which had contributed to a widening of India's current account deficit. However, inbound shipments under FTAs with Thailand and ASEAN increased because of lower rates of 1% and 2%, respectively.

Gold jewellery imports from ASEAN to face 12.5% countervailing duty


Imports from Thailand virtually stopped after the government raised the issue with customs authorities there against the violation of value addition norms and issued an alert against them. But these were soon substituted by imports from Malaysia and Indonesia.

As of now, customs insist on a bond of duty differential from these countries, which requires appropriate higher duty to be paid if there is any violation.

Finance minister Arun Jaitley had in his budget proposed 1% excise duty on jewellers with a turnover exceeding Rs 12 crore. The government is of the view that while large domestic manufacturers will only need to pay 1% excise duty - a move opposed by the industry, which has been on strike for the past 15 days - it would shield them from the onslaught of imported jewellery.

Imposition of duty would also ensure incentive for production in the country and the Make in India initiative. Replying to a debate in the Lok Sabha on the general budget, Jaitley rejected the demand for rolling back the levy, saying the move is in preparation for implementation of the goods and services tax.

The government has sought to allay the industry's apprehensions by promising an inspector raj-free regime without any hassle of fresh documentation. Excise authorities will accept value-added tax documents submitted to the state authorities.

 

Source:economictimes.indiatimes.com

India Contracted 1.3 Million Tonnes Of Sugar Exports So Far In 2015/16: Trade Body

MOSCOW: India has contracted 1.3 million tonnes of sugar for export so far in the 2015/16 marketing year, of which 1 million tonnes have already been exported, said Abinash Verma, director general of the Indian Sugar Mills Association.

India's sugar cane output in 2016/17 may fall compared with this year due to less rainfall in several regions, Verma told Reuters on the sidelines of an industry conference in Moscow on Thursday.

Source  :economictimes.indiatimes.com