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

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India Economic News Consulate General of IndiaMay 2013 Munich

Indian Economy expected to grow at 6.4% in 2013-14:

The Indian economy is projected to grow at a much faster pace in 2013-14. According to Mr C Rangarajan, Chairman, Prime Minister's Economic Advisory Council (PMEAC), 6.4 per cent growth is projected in the current fiscal, as against 5 per cent in 2012-13. This growth will be on the back of improvement in the performance of agriculture and manufacturing sectors

India among top 20 global real estate investment markets:

According to Cushman & Wakefield's latest report International Investment

Atlas, India was (20th) among the top 20 real estate investment markets globally with investment volume of INR 190 billion (USD 3466 million) recorded in 2012. Majority of the investment in India were through institutional sales (67%) while remaining were through private equity (PE) investments (33%).

RBI eases norms for PSU investment in oil sector overseas:

The Reserve Bank of India announced that Navratna Public Sector Undertakings -ONGC Videsh Ltd (OVL) and Oil India Ltd (OIL) - will be allowed to make overseas investments in the incorporated Joint

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Ventures/Wholly Owned Subsidiaries in the oil sector.These investments for exploration and drilling for oil and natural gas by the Navratna PSUs, duly approved by the Government of India, will be without any limits under the automatic route, the RBI said in a notification.

India's semiconductor consumption to grow over 20% this year:

In contrast with the global trend, India’s semiconductor consumption rose 7.4 per cent to touch $8 billion in 2012 from that a year ago, according to a study by research and analysis firm Gartner. A relatively better domestic economic climate and growth in consumer spending helped semiconductor consumption growth in India. Of the three key electronic devices —mobile phones, PCs and LCD TVs, LCD TVs saw the biggest growth of nearly 45 per cent in terms of semiconductor consumption. Semiconductor consumption in India will reach $9.6 billion in 2013, an increase of 20 per cent over 2012, the report said.

21 Textile Parks Launched:

Mr Anand Sharma, Hon’ble Minister for Commerce, Industry and Textiles, Government of India launched 21 new Textile Parks taking the total number of Parks in the country to 61. With an estimated investment of Rs 27,562 crore (US$ 5.1 billion), these parks are expected to generate over 10 lakh jobs. Scheme for Integrated Textile Parks (SITPs) has been instrumental in the development of wide range of models for greenfield clusters, including 1,000 acre foreign direct investment (FDI) driven integrated clusters, 100-acre powerloom clusters and 20-acre handloom clusters.

India Inc's March abroad investment at $1.88 billion:

Indian companies invested $1.88 billion (around Rs 10,260 crore today) in other countriesin March, up from $1.65 billion in February, according to the Reserve Bank of India. Major companies that invested in foreign countries include Escorts Ltd, Videocon Industries Ltd, ILF&S Group

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and Glenmark Pharmaceuticals Ltd.

NRI deposits rise 37% on high domestic interest rates:

Non-resident Indians (NRIs) are keeping faith with the returns their banks back home are giving them. In the first eleven months of Financial Year 2012-13, NRI deposits in the banking system rose 37 per cent (by $13.379 billion against $9.733 billion in the year-ago period).

Infosys signs agreement with Renewable Energy Company:

Infosys signed a five-year agreement with RWE Supply and Trading (RWEST), a leading European energy trading house to provide technology services. RWEST is based out of Essen in Germany and has trading floors in London and Swindon as well as trading floors of subsidiaries and affiliates in Den Bosch, Geneva, Singapore and New York.

Honda cars to invest Rs 2,500 crore in Rajasthan plant:

Japanese car maker, Honda Cars India Limited (HCIL)

announced an investment of Rs 2,500 crore at its Tapukara plant in Rajasthan and five new models for the Indian market in the next three years.The new plant is expected to kick-start operation in 2014, and with this the total installed production capacity of HCIL will be doubled to 240,000 units per annum in 2014.

PCM Group acquires Germany based Railwayequipment company Rail.One GmbH:

West Bengal based PCM Group has acquired a Germany based, 118 years old company - Rail.One GmbH, a leading international manufacturer of concrete railroad ties, railroad systems and railway track at a cost of around 37 million euro according to Mr Kamal Kumar Mittal, Chairman, PCM Group.

KSIDC inks pact withKorean firm to produce solar equipment:

The Kerala State Industrial Development Corporation (KSIDC) has signed a memorandum of

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understanding with Jusung Engineering, a Korean company for setting up a solar cell and module manufacturing facility in the State. It has been proposed to manufacture solar cells and modules of 6-inch dimension and 20 per cent efficiency. The annual capacity in the first phase will be about 100 MW.The cost of the project is estimated at Rs 500 crore.

Govt announces fresh incentives for exporters, SEZs:

The Government announced a fresh package of incentives for exporters to boost shipments from the country. The main attractions of the Foreign

Trade Policy for 2013-14 include extension of zero duty Export Promotion Capital Goods (EPCG) scheme that allows duty free import of capital goods to all sectors, widening the interest subvention scheme for the engineering and textiles sector, allowing use of duty credit scrip beyond duty free imports, and permitting the transferability of status holder incentive scheme. More operational flexibility was also given to Special Economic Zones (SEZs) with the Government reducing the area requirement by half for all SEZs and doing away with the minimum area requirement for IT SEZs.

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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