Govt clears Amazons $500-mn FDI proposal in food retail
The Dollar Business Bureau In a move to attract major foreign investment, the Government on Monday approved an investment of around $500 million proposed by e-commerce giant Amazon for opening retail food stores in India. This is the first proposal for foreign direct investment (FDI) in food retail that got the government’s approval. This is also the first FDI case that gets an in-principle approval after the recent shut down of the Foreign Investment Promotion Board (FIPB). This proposal was pending with the FIPB. Therefore, the Department of Industrial Policy and Promotion (DIPP) has given its nod to the proposal. According to the proposal, the American ecommerce major will open a fully-owned arm in India for carrying out the business of storing food products and sell them online. Presently, the Government allows 100% ...
Retail inflation falls to 2.99% in April on lower food prices
The Dollar Business Bureau The country’s retail inflation declined sharply to 2.99% in April against the 3.89% in March, on account of lower prices of food items such as vegetables and pulses that recorded a deflationary trend. In April 2016, the consumer price index (CPI) inflation was at 5.47%. Pulses and products prices witnessed a sharp decline in April, with a deflation of 15.94%, whereas prices of vegetables fell by 8.59%. In March, the two items recorded a deflation of 12.42 and 7.24%. The fuel and light segment recorded an inflation of 6.13% in April, higher as compared to 5.56% in March. Fruit prices grew at 3.78% in April, lower than 9.35% in the previous month, according to the Ministry of Statistics and Programme Implementation ...
Q3 GDP numbers surprise at 7%
By Abin Daya It has been over 19 months since the tumult over India’s GDP began. Many economists have questioned the government’s method of calculation since it was implemented in 2015. The latest announcement by the Indian government has placed the GDP at 7% which is a sudden increase from 4.7% as per growth estimates released in May 2013-14. The data released by the Central Statistics Office predict the GDP of Q3 FY17 at 7%. Let us look at the drivers behind it by breaking them up into components and comparing them with the previous figures. India’s GDP for Q3 of FY17 grew by 7% y-o-y, lower than the 7.4% (revised) growth of Q2 FY17 and higher than 6.9% of Q3 FY16 This has ...
Tata Capital ties up with LKP Securities to boost retail loans
The Dollar Business Bureau Tata Group’s financial services subsidiary Tata Capital has tied-up with securities brokerage house LKP Securities to distribute its retail loan products through the channels of LKP Securities, the company said in a statement on Thursday. With this partnership, Tata Capital’s retail loans such as home loans, car loans, personal loans and business loans will be distributed through LKP Securities’ network of more than 3,000 sub-brokers. This will benefit the Tata Group firm in reaching wide customer base across the country, the company said. LKP Securities has associated with Tata Capital to take a step forward in becoming a one-stop destination for all the investment solutions. Both the companies will benefit from the collaboration because of their individual qualities of ...
Private banks loan book likely to grow at 24% till FY'19
The Dollar Business Bureau Advances of Indian private banks are expected to grow at a compound annual growth rate (CAGR) of 24% till FY19, almost double than the projected growth rate of public sector banks over the same period, a study has said. According to ASSOCHAM-Crisil study, credit growth of the Indian banking sector is expected to remain subdued at about 11% in the current fiscal due to demand slump from the corporate sector. But, private banks are expected to play an important role in banking sector’s growth over the medium term, “given their strong balance sheet, large presence in the retail segment and strong, low-cost liability franchise”. The near-term growth for the private sector banks will be driven by ...
Wipro wins five-year IT contract from Norwegian firm
The Dollar Business Bureau Indian IT major Wipro has won a five-year contract from Norwegian retailer giant Coop Norge Handel AS to upgrade the latter’s infrastructure and operating model. The IT engagement is expected to transform the supply chain and distribution operations, software landscape and data centric infrastructure of the Norwegian company, which has a market share of 33%, spread over 1,500 stores. “We believe the Wipro’s strong retails domain expertise, along with expertise in integrated infrastructure, will transform Coop Norge’s IT landscape, in line with the company’s business objectives,” said Srini Pallia, Chief Executive, Retail, Consumer Goods, and Transportation & Govt Business Unit, Wipro Limited. “This partnership reiterates our continued focus and investments in the Nordic region and Continental Europe,” ...
Allow 100% FDI in retail through public private partnership, industry body tells govt
The Dollar Business Bureau The government should allow Foreign Direct Investment (FDI) in multi-brand retail through Public-Private Partnership (PPP) while providing level-playing field for domestic retailers, the Associated Chamber of Commerce and Industry (ASSOCHAM) said. “It is important to allow the entry of FDI into this sector in a properly regulated fashion. We must guard against the risk of these new corporations becoming monopolistic and charging high price. FDI in retail may also help bring in technical knowhow to set up efficient supply chains which could act as models of development,” the industry body said in a study. Highlighting the positive impact of opening 100% FDI in retail, the ASSOCHAM said that the move will lead to the creation of a ...
Legal framework, consumer protection must for FDI in e-commerce, say states
The Dollar Business Bureau Expressing concern over legal and tax related issues related to e-commerce, state governments said that small retailers and consumers must be protected before allowing 100% foreign direct investment (FDI) in the sector. Union Minister of State for Commerce and Industry Nirmala Sitharaman met trade ministers of all the states on Wednesday to discuss the matter. The Union Minister said that the government will decide on allowing 100% FDI in e-commerce after proper consultation with all stake holders. The minister asked state governments to give their views on the matter in two weeks. At Wednesday's meeting, Chhattisgarh Commerce and Industry Minister Amar Agrawal said that the country must have a comprehensive law to deal with issues related to ...
