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India Economic News Consulate General of IndiaFebruary 2013 Munich

India to be among 3 largest economies by 2050, PwC:

Emerging economies are set to grow faster than the developed economies over the next four decades and India is likely to become one of the three largest economies by 2050, says a PwC report. By the year 2050, China, the US and India are likely to be the three largest economies in that order, while Brazil could overtake Japan to be the fourth largest economy.

Manufacturing PMI in December jumps to 54.7, highest in six months:

The country's manufacturing activity surged to a six-month high in December, boosted by strong factory output and a spike in new orders, both of

which hit their highest levels since June, a business survey showed. The HSBC Markit India Manufacturing PMI,which gauges the business activity of India's factories but not its utilities, jumped to 54.7 in December from 53.7 in November, its biggestmonthly rise since January 2012. The PMI index has now stayed above the 50 mark that separates growth fromcontraction.

IMF says India to grow at 5.9% in 2013:

The International Monetary Fund (IMF) pegged India's economic growth rate in 2013 at 5.9 per cent and projected a higher growth of 6.4 per cent next year in line with the gradual strengthening of

Consulate General of India, Widenmayer Strasse 15,80538 Munich, Germany. Web: www.cgimunich.com

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global expansion. IMF in its update to the World economic Outlook (WEO) also said the global growth is expected to reach 3.5 per cent this year, higher than the estimated 3.2 per cent.

India-EU FTA to create jobs, boost trade: IEBF:

Implementation of the free-trade agreement between India and EU will help in creating lakhs of jobs besides boosting two-way trade, aLondon-based non-profit organisation has said. Indo-European Business Forum (IEBF), a nongovernmentorganisation involved in promoting trade between the two sides, said that both theregions are facing problems related with unemployment."When the free trade pact will come into force, it will help in creation of lakhs of jobs both in India and in the European Union (EU) nations," IEBF's India Head Sunil Kumar Gupta told. India and the 27-nation EU are negotiating thefree trade agreement, officially dubbed as Bilateral Trade and Investment Agreement(BTIA), since June 2007 and are aiming to conclude negotiations soon.

Delhi NCR, Maharashtra attract over 50 per cent of FDI in India:

Maharashtra and National Capital Region have cornered over 50 per cent of the foreign direct investment inflows into the country since April 2000, according to the industry ministry data. Maharashtra attracted maximum foreigninflows at $61.13 billion, about 33 per cent of total FDI inflows during April 2000-October 2012. Delhi's National Capital Region (NCR) including parts of Uttar Pradesh and Haryana, received $35.4 billion foreign direct investment during the period. NCR accounted for 19 per cent of the country's total FDI. During the period, India received $185.7 billion foreign inflows.

India's steel production grows at fastest Pace:

India outpaced all major steel producing nations, including China in terms growth rate tillNovember last year, but its position in the world order may still remain at number four. India had produced 70.115 million tonne (MT)steel till November 2012,

Consulate General of India, Widenmayer Strasse 15,80538 Munich, Germany. Web: www.cgimunich.com

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clocking 4.2% growth over the first 11 months of the last year

Forex reserves up at $296.25 bn on January 11: RBI:

Foreign exchange reserves were at $296.25 billion as of Jan 11, compared with $294.99 billion the previous week, reviving the business sentiment and the industrial activity in the medium to long term”, according to an RBI report.

Indian M&A deal tally touches $36.3 bn in 2012: Report:

The aggregate value of the merger and acquisition (M&A) transactions involving Indian entities was $ 36.3 billion last year, up 22.6 per cent over the 2011 tally, global deal tracking firm mergermarket said. In terms of numbers, 2012 saw as many as 268 deals -- up 7.6 per cent from the 249 deals registered during 2011. Outbound M&As hit $ 11.2 billion last year. In contrast, inbound M&As slowed in 2012 as the aggregate inbound deal value for the year stood at $ 17.4 billion, down 30.1 per cent than the corresponding period

a year ago. A sector-wise analysis shows that energy, mining and utilities commanded 31.9 per cent of the total M&A value in 2012. Industrials & chemicals continued to dominate M&A deal volumes, along with the pharma, medical & biotech and business services sectors.

FIIs invest over Rs 13,000 cr so far in 2013:

FII investment in Indian equities so far this month has touched a staggering over Rs 13,000 crore (about USD 2.5 billion) on the back of postponement of the controversial GAAR (General Anti Avoidance Rules) by two years and partial deregulation in diesel prices. From January 1-18, foreign institutional investors (FIIs) were gross buyers of shares worth Rs 42,926 crore, while they sold equities amounting to Rs 29,525 crore translating into a net inflow of Rs 13,401 crore (USD 2.5 billion), according to Sebi data. In 2012, FIIs had made net investment of Rs 1.28 lakh crore (USD 24.4 billion) in Indian equities, making it the second best year for the market after record

Consulate General of India, Widenmayer Strasse 15,80538 Munich, Germany. Web: www.cgimunich.com

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inflow of Rs 1.33 lakh crore (USD 29 billion) in 2010.

India set to emerge favoured destination for global defence sector players:

India is poised to become a favourite destination for global defence sector players with the total offset opportunity for the commercial segment in the country set to cross the $10-billion mark in 2013. With the Government expected to raise the foreign investment limit in the defence sector to 49 per cent from 26 per cent this year, the country is likely to witness a rush of investments, according to a recent study by Deloitte. According to the Deloitte Aerospace and Defence Outlook 2013, while the global defence industry is expected to shrink, growth in the Indian defence sector is on the surge. “India continues to be one of the promising aerospace and defence (A&D) markets due to the increasing demand for A&D equipment.

FIPB clears IKEA's Rs 10,000 crore investment proposal:

The Foreign Investment Promotion Board (FIPB) has

given its nod to Swedish home furnishings retailer IKEA's revised 10,500-crore investment proposal that will allow the company to set up retail stores along with its popular cafes in India and also sell more categories of products. The proposal will now go to Cabinet Committee on Economic Affairs for final endorsement as the board can clear investments of up to 1,200 crore only.

Indo-US ties making world more secure:

Greeting people of India on the occasion of its Republic Day, US Secretary of State Hillary Clinton has said that her three trips to the country as the top American diplomat reinforced her “unyielding belief” that the Indo USstrategic partnership is making the world “more united, prosperous and secure’’. “The United Statesand India share an unwavering commitment to democratic government. Our shared values are the foundation for the innovative, entrepreneurial drive that is allowing more and more of our 1.5 billion people to

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realise their potential,” Clinton said in a statement.

Indian packaging industry likely to touch $44 bn by 2016:

The sales turnover of Indian packaging industry is likely to touch USD 43.7 billion by 2016, according to Indian Institute of Packaging (IIP). "The total turnover of the packaging industry in India at present is USD 27.6 billion and expected to grow to around USD 43.7 billion by 2016, whereas the global turnover is about USD 550 billion", said the Indian Institute of Packaging (IIP) Chairman S K Ray. He said the packaging industry was growing at 12 per cent per annum in India as against the global growth rate of 5 per cent.

India 4th largest in steel output, logs highest growth in 2012:

India's rank in the world order of steel production remained unchanged at fourth slot with an output of 76.7 million tonnes, despite logging the highest growth of

4.2 per cent among major producing nations in 2012. There was no change in the top three steel producing nations with China, Japan and the US retaining their slots in the respective order in 2012, World Steel Association (WSA) data revealed.

Guidelines for notifying Brownfield Electronics Manufacturing:

The Department of Electronics and Information Technology has Issued guidelines for notifying Brownfield Electronics Manufacturing Clusters (EMCs). Brownfield EMCs are Locations with existing electronics manufacturing activity. The Government has notified Modified Special Incentive Package Scheme (M-SIPS) wherein upto 25% subsidy is available to eligibleElectronics Manufacturing units located in EMCs. The current Guidelines are consequential to the said policy Pronouncement and enables identification of Brownfield EMCs wherein the M-SIPS benefit would be available.

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DISCLAIMER

This newsletter is a compilation of news articlesfrom various business e-newspapers and in no

way is an endorsement or reflection ofviews of Consulate General of India, Munich.

For queries contact:

Mr. VSDL Surendra, Consul (PIC), Consulate General of India, Widenmayer Strasse 15, 80538 Munich, Germany.

Email: cpic@cgimunich.com , Web: www.cgimunich.com