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Foreign Direct investment in Telcom
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02. TRADE AND ECONOMY |
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Coal Mining to be opened
to Private Companies |
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Global
and Indian mining companies, will soon get exclusive rights
to mine and operate coal mines in India. The government's plan
to permit coal mining by standalone mining companies which have
tied up supply contracts with power, steel and cement companies
is set to become operational next month.
The law ministry has given its approval to the proposal. In
the latest communication to the coal ministry, it has said mining
companies having firm supply contracts with approved users -
power, cement and steel companies - can undertake mining coal
blocks reserved for captive users even without amending the
Coal Mines (Nationalisation) Act, 1973.
The government has already allowed 100% FDI for captive mining
in these sectors. The move would give fresh impetus to production
of coal and help to a large extent in meeting all the future
demand, officials said. The Planning Commission has estimated
that the coal demand-supply gap would be to the tune of over
60mt by '11-12. |
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FDI INFLOWS UP
BY RECORD 92%: KAMAL NATH |
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Inflows of foreign
direct investment (FDI) into India (equity capital components
only) during the first four months of the current financial
year 2006-07 (April-July), was US$2.9 billion compared
to US$1.5 billion in the same period of 2005-06, showing
a record increase of nearly 92%. FDI inflows (equity capital
components only) during the month of July 2006 surged
by a record 259%, having increased to US $ 1163 million
from US $ 324 million in July 2005. This was indicated
by Shri Kamal Nath, Union Minister of Commerce & Industry,
at a news briefing. |
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is significant is that FDI inflows into the manufacturing
sector and sectors impacting the manufacturing sector
continue to show a record growth. DI equity inflows
into manufacturing alone in April-July 2006-07 is
estimated at US $ 668.41 million, Shri Kamal Nath
said while pointing out that some of the services
sector like design and engineering, air / sea transport,
ports, construction activities etc. have a bearing
on the growth of the manufacturing sector. The FDI
policy rationalisation and liberalisation measures
have resulted in the increased inflows into such
sectors as well, he said. (NB: Manufacturing refers
to all industrial activities except power, water
supply and mining). |
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According
to the details available up to July 2006, the 10
sectors attracting highest FDI into India since
1991 are: electrical equipments (including computer
software & electronics); services sector (financial
& non-financial); telecommunications (radio paging,
cellular mobile, basic telephone services); transportation
industry; fuels (power + oil refinery); chemicals
(other than fertilisers); food processing industries;
drugs & pharmaceuticals; cement and gypsum products;
and metallurgical industries. The 10 top investing
countries are: Mauritius, USA, Japan, Netherlands,
UK, Germany, Singapore, France, South Korea and
Switzerland. The single largest inflow received
in the current financial year to the tune of US$380
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million
has been brought in by Barclays Bank PLC, Singapore
in the financial service sector. This has been received
in the month of July 2006. Other major investors
include Global Communication Services Holdings,
Mauritius in Aircel Ltd. (Telecom services); SIERO
Investment Holding, Mauritius in Orange Realty P
Ltd. (Real Estate); Flextronics (Computer Software);
Aspen Pharmacare Holdings Ltd., South Africa (Drugs
&Pharma). According to the Reserve Bank of India
(RBI)'s revised data as per international practices,
(i.e., including equity plus reinvested earnings
and other capital) cumulative total FDI inflows
into India from August 1991 to June 2006 were US$
50.1 billion. |
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Quick estimates of industrial
production |
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As per the Quick Estimates
of Industrial Production released by the Central Statistical
Organization, industrial production in India registered
a ten-year high of 12.4% in July 2006, as compared to
the level in the month of July 2005. Industrial growth
during the first 4 months (April 2006 to July 2006) of
the current financial year is up by 10.6% as compared
to 8.9% registered in the same period last year, Shri
Kamal Nath, Union Minister of Commerce & Industry, said
at a news briefing. |
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high in industrial production has been propelled
by the consistent high level of growth in the manufacturing
sector, the Minister said. The Manufacturing Sector
has shown a robust growth of 13.3% in July 2006.
It had grown by 13.4% in June 1996 and in the recent
past the closest high growth was registered in June
2005 at 13.2%. (NB: Manufacturing refers to |
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all
industrial activities except power, water supply
and mining). Besides manufacturing, the Mining and
Quarrying Sector has shown a growth of 6.0%, while
as the Electricity Sector has registered a growth
of 8.6% during July 2006 as compared to July 2005.
The industries that have performed well in July
2006 include 'Food Products' (26.8%), 'Wool, Silk
and man-made Fibre Textiles' (25%), 'Transport |
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Equipment
and Parts' (22.4%), 'Other Manufacturing Industries'
(21.3%), 'Basic Metal and Alloy Industries' (19.5%)
and 'Textile Products (including Wearing Apparel)'
(17.3%). Among the use-base economic sub-groups,
Consumer Goods have registered an impressive growth
of 17.9% during July 2006 over July 2005. The Capital
Goods have also recorded a high growth of 15.4%.
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India's manufacturing
growth up: Survey |
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According
to the Purchasing Managers' Index (PMI), compiled by British-based
NTC research and sponsored by ABN AMRO Bank, India's manufacturing
sector grew in October was at its fastest pace. The purchasing
managers' survey was introduced in April 2005 and it tracks
the changes in manufacturing business conditions by polling
500 companies each month on output, orders, employment
and prices.
The data published was collected before India's central
bank raised one short-term rate by 25 basis points to
7.25 per cent on Oct. 31 but left other key rates steady.
PMI readings above 50.0 signal an improvement in business
conditions while readings below 50.0 show a deterioration.
The output index rose to 64.6 in October from 63.8 in
September, driven by a rise in new orders. A number of
firms indicated increased sales to foreign firms contributed
to growth. The seasonally adjusted new export order index
rose to 59.2 in October from 57.7 in September--the sharpest
rise in 15 months. Latest government data shows exports
in September were up 22 per cent from a year earlier,
driven by demand from the United States and Europe. Strong
new order growth contributed to higher work in hand, with
the backlog index rising to 52.7 in October from 52.1
in September. The survey showed higher raw material and
fuel costs contributed to a robust rise in average input
costs. But, at 56.7, the input price index showed inflationary
pressures had eased since September's 61.2. |
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