Return to 9% growth may not be easy: Crisil

NEW DELHI: Political parties may be promising a return to high growth rate over the next five years, but ratings agencyCrisil has said that it may not be easy to return to 9% growth during 2014-2019 and instead settle for an average 6.5% growth, provided there is a stable government at the Centre.

The forecast is lower than the average for previous five years (April 2009 to March 2014), estimated at 6.7%, although significantly higher than the 4.9% projected for 2013-14. The position is in contrast to what political parties are promising during the election campaign. Although the BJP has not provided any number in its manifesto, its leaders are talking about reversing the slow growth phase. Congress has said that it will take the economy back to 8% growth rate in three years.

"There is a 50% chance growth will average 6.5% over this period, provided we get a decisive mandate in the ensuing general elections, which will hopefully speed up decision making, and improve the investment climate and competitive efficiencies," the agency said in a report released on Sunday. At the same time, it warned of adverse impact of a fractured mandate as decision making will be hampered and said there is 30% chance of the economy expanding at the current pace of a little under 5%.

KFC creates a veg menu for India

KFC, the Kentucky-based fast-food chain known for its "finger-lickin' good" range of chicken fillets and burgers, has finally given in to India's penchant for vegetarianism. In what appears to be a first across all KFC franchises globally, KFC India has unveiled a segregated vegetarian menu along with a strong message about its newfound bias for vegetarian offerings.

Paneer Zinger and Veg Twister, in addition to the hot-selling Potato Krisper Burger, Veg Strips, Veg Rockin' Burger and Veg Rice Bowl will now vie for consumer mind space along with their popular non-veg counterparts. The company has not only introduced new products under its veg range, it has also tweaked its global tagline "So good" to "So veg, so good" to show its commitment towards the category.

Executives at the company say the new menu will help them satiate high local demand for vegetarian options. "We recognized an opportunity to deliver a significant vegetarian range for the Indian consumer, and to reach out to a broader target audience," says Dhruv Kaul, director of marketing at KFC India.

Foreign institutional investors pump in Rs 4,900 crore in Indian stocks

Foreign investors poured in almost Rs 4,900 crore in the Indian stock market last week primarily on hopes of a strong reformist government after elections.The total investment by foreign institutional investors (FIIs) in equities so far in 2014 has risen to Rs 27,088 crore ($ 4.46 billion).

Market analysts say FIIs are bullish on India on expectations a strong reformist government would come to power after the Lok Sabha elections, scheduled from April 7 to May 12. Analysts are of the view that a positive bias towards the Indian equity market would continue in the coming weeks.

FIIs were gross buyers of shares worth Rs 22,194 crore and sellers of stocks to the tune of Rs 17,302 crore in the week to April 4, resulting in a net inflow of Rs 4,892 crore ($ 815 million), according to data with the Securities and Exchange Board of India. FIIs invested Rs 258 crore in the debt market during the week. 
 Last month, overseas investors had invested Rs 20,077 crore in Indian stocks compared with Rs 1,404 crore in February and Rs 714 crore in January.As of April 4, there were 1,714 registered FIIs in the country and 6,359 sub-accounts.

 

Affluent Wine Buyers in Asia Find Their Confidence

HONG KONG — Six bottles of 1990 Romanée-Conti Burgundy sold to an Asian buyer at a Christie’s auction in Hong Kong last month for 980,000 Hong Kong dollars ($126,345). A case of wine from the Cros Parantoux vineyard in Burgundy, France, fetched $82,333 in a sale held by the American auction house Acker Merrall & Condit at a restaurant overlooking Hong Kong’s harbor.

Fine wine comes at a price in Asia, but there are plenty of buyers. Asian consumers have become a major factor in the global wine market, with China overtaking France and Italy last year as the biggest consumer of red wine. Now, customers in the region are getting more sophisticated, educated and diverse in their wine choices.

“There are a lot more wine lovers in Asia, and they are enjoying a lot more wines,” Simon Tam, head of wine at Christie’s China, said about the auction house’s recent sale. “The market is maturing very, very rapidly.”

Asians have traditionally been drinkers of whiskey, brandy and local spirits like baijiu, a liquor distilled from grain, rather than wine. But rising wealth, a penchant for giving gifts and a constant search for new types of investment have turned affluent Asians into avid buyers of top wines and other luxury items in recent years.

Photo

Visitors from mainland China shopping for wine in Hong Kong, where taxes on wine were abolished in 2008. CreditDean C.K. Cox for The New York Times

Hong Kong, which was barely featured on the international wine scene a decade ago, has become a major hub for wine trading since taxes on wine were abolished here in 2008. Dozens of merchants have opened operations, including famous players like the British company Berry Brothers & Rudd, which traces its roots to 1698, and niche establishments like La Cabane, which sells natural wines from small vineyards in France.

Even in Singapore, where taxes add considerably to the price of a bottle of wine, CWT, a logistics company, is spending 200 million Singapore dollars ($158 million) on a high-end wine storage facility that will be able to store 10 million bottles in air-conditioned and humidity- and light-controlled conditions.

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Raghuram Rajan says rupee at 45-50 a dollar would hit exports

Reserve Bank of India (RBI) Governor Raghuram Rajan has said a"substantial" strengthening in the rupee to 45 or 50 per dollar could hit exports, although he added the central bank was fine with "a certain amount of leeway" in the currency.

In an interview to CNBC-TV18, Rajan also said the RBI does not want to declare victory on inflation yet, despite keeping interest rates on hold on Tuesday as widely expected.

RBI would rethink its stance if there is a "substantial" change of inflation, up or down, he said.