2. Huge inflows help manage capital account deficit Indian Current account deficit (CAD) trebled to $13.7 b in April-June over the same period last year, due to larger imports after economic recovery and higher payments abroad for certain services. “Although CAD is high, but we do not see any financing problem. Capital inflows will bridge the high CAD and throughout the year capital flows is expected to remain healthy,” Yes Bank chief economist ShubhadaRao said.
3. Auto sector may achieve $12-b exports ahead of schedule’ At present, the industry exports $4.5 billion worth of automobiles including tractors, passenger vehicles and commercial vehicles. As per the industry body, auto exports will go up to $5.62 billion in the year ending March 2011 and grow to $17.64 billion in 2015-16. At present, India exports large number of cars to Europe with major carmakers like Maruti Suzuki and Hyundai shipping vehicles to UK, Italy and Germany, their key markets in the Continent
4. Finmin opposes plans to put curbs on FDI in pharma sector The proposed curbs were prompted by fears of large-scale take-over of Indian companies by foreigners. At present 100% FDI is allowed in the pharmaceuticals sector through the automatic route. DIPP suggesting to shift foreign investment in pharma to the government route
5. Exporters want RBI to step in With the rupee touching a record 6-month high of 44.38 against the dollar, the chorus from exporters demanding RBI’s intervention is getting stronger
6. Gems and jewellery exports may grow 30-35%: GJEPC India's gem and jewellery exports is expected to clock a 30-35% growth in FY11, a top industry official said on Wednesday The US is the biggest buyer with India exporting nearly 34% of gems and jewellery to that country and the rest to others.
7. Currency wars to dominate IMF, G7 meets HE risk of a full-blown global ‘currency war’, with the United States and China. Engage in competitive devaluation of their currencies to stimulate exports and the creation of jobs, has become a major concern in recent weeks. Last week, Japan and Brazil took steps to weaken their currencies
8. India, EU to host meet of G-23 on Doha round of talks India and the European Union will jointly host a brainstorming session of the Group of 23 countries on Wednesday to explore how the stalled Doha trade negotiations could be re-energized.
