BEIJING, Feb 20: China’s foreign direct investment inflows fell 7.3 percent in January from a year earlier, extending 2012’s series of consecutive year-on-year declines that highlights still sluggish global economic conditions.
The Commerce Ministry said on Wednesday that China drew $9.27 billion in foreign direct investment in January, down from December’s $11.7 billion. Investment inflows from key Asian economies and the U.S. Were down in the latest period.
FDI is an important gauge of the external economy to which China’s vast factory sector is oriented, though it is a small contributor to China’s overall capital inflows compared with exports, which were worth about $2 trillion in 2012.
The FDI data followed stronger-than-expected trade figures in January, which pointed to a solid recovery in domestic and external demand that signals the world’s second-largest economy is gaining momentum after growth in 2012 eased to a 13-year low – albeit at a 7.8 percent clip that is the envy of the world’s major economies.
A report earlier on Wednesday from ratings agency, Moody’s, said China’s economy was on track to deliver growth of 7.5-8.5 percent in 2013, with relatively easy monetary conditions and targeted fiscal spending likely to sustain the recovery.
‘The favorable growth outlook is supported by policy easing and credit extension, particularly by the non-banking sectors, and should continue in 2014,’ Moody’s said.
China attracted a total of $111.7 billion in FDI in 2012, just shy of 2011’s record $116 billion and marking the first annual fall in three years.
Beijing has said it wants to bring in $120 billion worth
Of FDI each year between 2012 and 2015.
China joined the World Trade Organisation in November 2001 and FDI inflows have soared since. OECD data shows China rivals the United States as the world’s top FDI destination.
Commerce ministry data showed investment inflows from the European Union rose 81.8 percent in January from year ago to $820 million, while investment by U.S. Firms fell 20.0 percent during the same period to $270 million.
FDI from 10 top Asian economies, including Hong Kong, Japan and Singapore, fell 9.0 percent year on year in January, to $7.8 billion the ministry said.
Service sector inflows last month were $4.0 billion, down 9.8 percent on a year ago.
Manufacturing sector inflows totaled $4.43 billion in January, down 5.8 percent versus a year earlier.
China’s outbound direct investment from non-financial firms in January totaled $4.9 billion, up 12.3 percent from a year ago, the commerce ministry said. (agencies)

NEW DELHI, Feb 20: Vodafone today said it has filed a petition in Delhi High Court challenging Telecom Department’s move to put its 900 MHz spectrum to auction despite its applications for licence extension pending with the Department.
“Vodafone has filed a petition in the Delhi High Court challenging DoT’s action of putting its 900MHz spectrum to auction even when Vodafone’s applications for licence extension are pending with DoT,” the company said in a statement.
Vodafone had in December last year sought extension of its licence period for Delhi, Mumbai and Kolkata circles, which are coming up for renewal in November 2014.
The telecom operator has sought the extension under clause 4.1 of the licence agreement under which the government can extend the period of licence by 10 years at one time if the request is made by the operator during the 19th year of the licence period.
Vodafone said it is entitled to a fair and reasonable extension of its licence as per mutually agreeable terms.
“Both the policy and licence provide for continuity and this action of DoT to arbitrarily withdraw the 900MHz spectrum is not only against the provisions of policy and licence but also disruptive and against public interest,” the statement added.
The second round of spectrum sale will start from March 11, wherein government will put on auction the unsold GSM spectrum in 1800 Mhz band and airwaves held by telecom licences in 900 Mhz band that is coming for renewal starting 2014 onwards.
Government will auction spectrum in 900 MHz band for Delhi, Mumbai and Kolkata circles.
The existing GSM operators will be allowed to retain 2.5 Mhz in each circle in the same band even after expiry of their licences after paying a market-determined price.
Vodafone has around 24 MHz spectrum in 900 MHz band in these three circles.
The operator said it has invested more than Rs 50,000 crore in India and remains committed to providing quality and affordable telecom solutions to its almost 150 million customers across the country. (PTI)

NEW DELHI, Feb 20: Coriander futures prices fell by Rs 84 to Rs 6,950 per quintal in futures trade today as speculators reduced their positions on the back of sluggish demand in the spot market.
At the Multi Commodity Exchange, coriander for delivery in May fell by Rs 84, or 1.19 per cent, to Rs 6,950 per quintal with an open interest of 13,140 lots.
The spice for April delivery declined by Rs 80, or 1.15 per cent to Rs 6,836 per quintal with open interest of 31,850 lots.
Market analysts said besides profit-booking by speculators at existing higher levels, sluggish demand in the spot market led to the fall in coriander futures prices. (PTI)

NEW DELHI, Feb 20: Chana prices fell by Rs 17 to Rs 3,424 per quintal in futures market today, as speculators booked profits, driven by a weak trend at the spot markets.
Expectations of higher output this season and expanded area of cultivation mainly affected the prices.
At the National Commodity and Derivative Exchange, chana for delivery in April fell by Rs 17, or 0.49 per cent, to Rs 3,424 per quintal, with an open interest of 74,280 lots.
Similarly, the commodity for delivery in May declined Rs 15, or 0.43 per cent, to Rs 3,474 per quintal, with open interest of 24,240 lots.
Traders said profit-booking by speculators following subdued demand in the spot market mainly led to the fall in chana prices at futures trade.
They said, as supplies from the new season crop and expectations of a rise in output also weighed on sentiment. (PTI)

NEW DELHI, Feb 20: Fair trade regulator CCI has closed the case against textile machine maker Lakshmi Machine for alleged abuse of dominant position in the market for “sale of spinning machinery for textiles”.
“… Despite the fact that the opposite party (Lakshmi Machine Works) was a dominant player in the relevant market, mere increase in prices by the opposite party for valid economic reasons for all of its customers cannot amount to imposing of unfair or discriminatory conditions in purchase or sale of goods or services,” Competition Commission of India (CCI) said in its order dated February 15.
In a complaint filed by Shahi Exports, it was alleged that Lakshmi Machine Works had increased price of textile machineries it had ordered.
As per the order, during the arbitration proceedings with the complainant, Lakshmi Machine Works had submitted that the increase in the price was due to increase in cost of inputs like raw materials, labours among others.
CCI noted that Lakshmi Machine Works had been “increasing the price of his products after regular intervals and it was not discriminating with any of its customers but had increased the prices for all of its customers alike”. (PTI)

NEW DELHI, Feb 20: Jeera prices fell by Rs 140 to Rs 13,290 per quintal in futures trade today as speculators booked profits at existing levels.
Increased supply from the producing regions and decline in the export demand pulled down the prices.
At the National Commodity and Derivatives Exchange, jeera for delivery in March fell by Rs 140, or 1.04 per cent to Rs 13,290 per quintal with an open interest of 9,912 lots.
Likewise, the spice for delivery in April lost Rs 135, or 1.00 per cent to Rs 13,337.50 per quintal in 8,175 lots.
Analysts said profit-booking by speculators on expectations of higher output and supplies of the new crop, mainly influenced the jeera futures prices. (PTI)

NEW DELHI, Feb 20: Indian Infrastructure debt funds are expected to attract huge investor interest in overseas markets, given a marked improvement in economic sentiments here and a low-interest rate environment abroad, ICICI Bank chief Chanda Kochhar has said.
Besides, the evolution of newly-created infrastructure debt funds (IDFs) as key financing vehicles for infrastructure sector is also expected to ease the pressure on banking system, Kochhar told PTI in an interview.
“The improvement in sentiment during the last few months and the continued FII flows in both debt and equity lead us to believe that the IDFs will be successful in raising offshore funds,” said the ICICI Bank Managing Director and CEO, who was here yesterday for the launch of India Infradebt Ltd, the country’s first IDF under NBFC model.
Infradebt has been set up with an equity capital of Rs 300 crore (about USD 55 million) with four major financial institutions as its promoters. While, ICICI group holds the highest 31 per cent stake, other promoters are Bank of Baroda (30 per cent), Citi (29 per cent) and LIC (10 per cent).
The Fund can provide funding to the tune of up to USD 2 billion after roping in debt investors from India and abroad.
On the expected contribution from domestic and foreign investors in the overall targeted size of USD 2 billion, Kochhar said: “Infradebt is looking to raise half the liabilities from the domestic market and the other half from foreign sources”.
Asked whether she was optimistic of foreign investors’ interest in Infradebt and other such funds despite concerns over the country’s widening trade deficit and continuing FDI barriers, Kochhar exuded confidence in success of IDFs in raising offshore funds.
“Further, since the IDF would be lending to projects which have completed one year of operations after the implementation, the risk profile will be substantially lower, thereby attracting huge investor interest in IDF.
“Also, the continued low interest environment in the offshore markets coupled with the ample global liquidity will also support fund raising by IDFs,” she said.
India has set a target of USD one trillion towards infrastructure spending during the 12th five-year plan period (2012-17).
Of this, 50 per cent of the amount is proposed to be invested by the private sector and an estimated USD 350 billion is expected to come through debt contribution.
“While the target (USD 1 trillion) may appear large, we should remember that a few years ago we would have thought that spending USD 500 billion would be impossible and we have substantially achieved that level in the 11th plan period.
“So I think we need to set aspirational targets and work towards achieving them with the right policy and administrative measures,” Kochhar said. (PTI)

NEW DELHI, Feb 20: Crude palm oil prices rose by Rs 3.20 to Rs 469.90 per 10 kg in futures trade today as speculators created fresh positions on expectations of a rise in spot market demand.
A firming trend in the overseas markets also influenced the crude palm oil futures prices.
On the Multi Commodity Exchange, crude palm oil for March delivery rose by Rs 3.20, or 0.68 per cent, to Rs 469.90 per kg, with a trading volume of 463 lots.
Similarly, the oil for delivery in February moved up by Rs 2.60, or 0.56 per cent, to Rs 460 per 10 kg, with a business turnover of 399 lots.
Meanwhile, palm oil climbed 0.70 per cent to USD 835 a tonne on the Malaysia Derivatives Exchange. (PTI)

NEW DELHI, Feb 20: Potato futures prices fell by Rs 7.50 to Rs 816.50 per quintal today as speculators offloaded their positions, driven by weak trend in the spot market.
At the Multi Commodity Exchange, potato for April delivery fell by Rs 7.50, or 0.91 per cent, to Rs 816.50 per quintal, with a business volume of 18 lots.
For delivery in March, potato traded lower by Rs 4.10, or 0.48 per cent, to Rs 838.60 per quintal, with a trade volume of 28 lots.
Marketmen said fall in potato prices was mostly due to offloading of positions by speculators, driven by subdued demand in the spot market.
They said increased supplies in the physical market, following persistent arrivals from producing region further pulled down the prices. (PTI)

NEW DELHI, Feb 20: Cardamom prices rose by Rs 8 to Rs 991.80 per kg in futures trade today as speculators created fresh positions, tracking a firm spot market demand.
Less arrivals from producing regions also supported the uptrend in cardamom futures.
At the Multi Commodity Exchange, cardamom for delivery in April rose Rs 8, or 0.81 per cent, to Rs 991.80 per kg, with a business turnover of 153 lots.
Similarly, the spice for delivery in March jumped by Rs 6.60, or 0.69 per cent, to Rs 959 per kg, with trading volume of 822 lots.
Traders said rising demand in the spot market against less arrivals from producing regions mainly led to an upsurge in cardamom futures prices. (PTI)