Matthias's Feed
Sep 14, 2012

Govt allows FDI multi-brand retail, aviation in bold reform push

NEW DELHI (Reuters) – After months of dithering on the economy, India’s beleaguered government roared back to life in dramatic fashion on Friday, announcing big bang reforms as part of package of measures aimed at reviving growth and staving off a ratings downgrade.

A day after sharply increasing the price of heavily subsidized diesel, the government said it was opening up its supermarket sector to foreign chains and would allow more foreign investment in airlines and broadcasters. It also approved the sale of stakes in four state-run industries.

Sep 14, 2012

After months of inertia, India unveils big bang reforms

NEW DELHI, Sept 14 (Reuters) – After months of dithering on
the economy, India’s beleaguered government roared back to life
in dramatic fashion on Friday, announcing big bang reforms as
part of package of measures aimed at reviving growth and staving
off a ratings downgrade.

A day after sharply increasing the price of heavily
subsidized diesel, the government said it was opening up its
supermarket sector to foreign chains and would allow more
foreign investment in airlines and broadcasters. It also
approved the sale of stakes in four state-run industries.

Aug 1, 2012

Media barbs puncture India anti-corruption campaign

NEW DELHI (Reuters) – A renewed push by India’s anti-corruption crusader Anna Hazare has been overshadowed by a row with the increasingly powerful media, which could weaken the veteran activist’s position as he prepares for another showdown with the government.

Hazare began another public hunger strike in New Delhi on Sunday to put pressure on Prime Minister Manmohan Singh’s government to pass a long-delayed bill to create an anti-graft ombudsman during the parliament session that starts next week.

Aug 1, 2012

Media barbs puncture Anna Hazare anti-corruption campaign

NEW DELHI (Reuters) – A renewed push by anti-corruption crusader Anna Hazare has been overshadowed by a row with the increasingly powerful media, which could weaken the veteran activist’s position as he prepares for another showdown with the government.

Hazare began another public hunger strike in New Delhi on Sunday to put pressure on Prime Minister Manmohan Singh’s government to pass a long-delayed bill to create an anti-graft ombudsman during the parliament session that starts next week.

Jul 19, 2012

India seen relaxing retail rules to keep IKEA from packing up

NEW DELHI/MUMBAI, July 19 (Reuters) – India’s government
appears set to relax heavily criticised sourcing rules for
retailers, anxious not to scare off IKEA — one of the few big
name firms that has said it will invest in the country — or any
others willing to follow.

India kicked open the door to foreign retailers in January
when it removed an investment cap for single brand chains to set
up shop but then shot itself in the foot by imposing a
requirement that companies had to source 30 percent from small
local firms.

Jul 13, 2012

June exports fall 5.5 pct, but trade deficit narrows

NEW DELHI (Reuters) – India’s exports fell nearly 5.5 percent in June due to weak demand from Europe and the United States, a trade ministry official said, adding pressure on Asia’s third-largest economy.

Imports also fell sharply, however, thanks in part to lower global oil prices, and narrowing the trade deficit to $10.3 billion compared to the previous month, something of a silver lining that may help assuage concerns about India’s balance of payments.

Jul 13, 2012

India’s June exports fall 5.5 pct, but trade deficit narrows

NEW DELHI, July 13 (Reuters) – India’s exports fell nearly
5.5 percent in June due to weak demand from Europe and the
United States, a trade ministry official said, adding pressure
on Asia’s third-largest economy.

Imports also fell sharply, however, thanks in part to lower
global oil prices, and narrowing the trade deficit to $10.3
billion compared to the previous month, something of a silver
lining that may help assuage concerns about India’s balance of
payments.

Jul 6, 2012

IKEA hits snag with India venture

NEW DELHI/STOCKHOLM (Reuters) – India has rebuffed a request by IKEA IKEA.UL to relax rules on buying goods locally, a government source said on Friday, raising the prospect of a delay in the world’s largest furniture maker entering the Indian retail market,

IKEA, famous for its self-build flatpacks and huge stores, said last month it would invest 1.5 billion euros ($1.86 billion) and open 25 outlets, throwing a lifeline to the government in India where economic growth has slowed sharply.

Jul 2, 2012

Key political risks to watch in India

NEW DELHI (Reuters) – India is going through its worst patch of economic growth in nine years, which has seen the rupee slide to record lows against the dollar and investors clamouring for greater policy action from Prime Minister Manmohan Singh’s government.

Amid the slowdown comes a change of guard at the finance ministry, with Pranab Mukherjee resigning on June 26 to run for president. Singh has taken charge of the portfolio, raising investor hopes he will push through long-pending reforms to prop up India’s flagging economy.

Jun 27, 2012

India PM wants to “restart growth story”

NEW DELHI, June 27 (Reuters) – Prime Minister Manmohan Singh
summoned officials on Wednesday to formulate an economic revival
plan in part addressing problems in tax policy and said he also
wanted to revive the “animal spirit” of Indian economic growth.

Seeking to overcome pessimism about Asia’s third-largest
economy, Singh, in remarks released by his office, stressed that
improving investor sentiment was a top priority.