As per the data released from the Department of Industrial Policy and Promotion (DIPP) on 15 July 2013, Foreign Direct Investment (FDI) into India increased 25 percent year-on-year to 2.32 billion US dollars in April 2013, the highest level in the past six months. In April 2012, the country had received FDI worth USD 1.85 billion US dollars, according to data from the Department of Industrial Policy and Promotion (DIPP).
In September, 2012, foreign inflows were 4.67 billion US dollars. The sectors that received large FDI inflows during the month include hotel and tourism (2.32 billion US dollars), pharmaceuticals (987 million US dollars), services (238 million US dollars), chemicals (51 million US dollars) and construction (32 million US dollars), according to the data.The most FDI in April came from Singapore (1.29 billion US dollars), followed by Mauritius (355 million US dollars), the Netherlands (173 million US dollars) and the US (149 million US dollars). The steps taken by the government are helping to boost FDI flows. Since September 2012, several reform initiatives have been taken, including liberalizing FDI norms in civil aviation, retail and power exchanges.
FDI inflows in 2012-13 aggregated 22.42 billion US dollars, a decline from 36.50 billion US dollars in 2011-12. Following the decisions taken in September 2012, the government is also expected to further liberalise the FDI regime in sectors such as telecom and defence. The finance ministry has proposed changes in FDI caps for sectors, including tea, media, petroleum and natural gas.
India needs about 1 trillion US dollars from 2012-13 to 2016-17 to fund infrastructure such as ports, airports and highways to boost growth. An increase in FDI will help support the rupee, which depreciated to a record low of 61.21 against the US dollar on 8 July 2013.
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Walter Wasser-India and Singapore Reaffirmed their Strong Defence Ties
India and Singapore on 3 June 2013 reaffirmed their strong and long-standing defence ties as they renewed a bilateral agreement for the conduct of joint army training and exercises. The agreement was signed after visiting Defence Minister A K Antony held bilateral talks with his Singapore counterpart Ng Eng Hen.
The Agreement for the Conduct of Joint Army Training and Exercises was first established on 12 August 2008. Its renewal allows the Singapore Army to train and exercise with the Indian Army in India for another five years.
The armies of India and Singapore jointly conducted bilateral armour and artillery exercises, codenamed Ex Bold Kurukshetra and Ex Agni Warrior respectively. The bilateral exercise was successfully conducted in March 2013 and a combined artillery live-firing was carried out in December 2012.
Walter Wasser- European Union tightened up Bank Lending Rules and Bonuses
European Parliament approved new rules on bankers’ bonuses and the amount of capital that banks must hold as a buffer by a big majority. The new rules called CRD 4 (Capital Requirements Directive) will be effective from 1 January 2014. The EU plans to cap bonuses at 100% of a banker’s annual salary, or 200% if shareholders approve. The objective behind the planning is to curb the sort of high-risk lending that contributed to the financial crash in 2008. CRD 4 brings the EU into line with Basel III rules on banking standards, which set new capital requirements for banks.
Under CRD 4,
• Banks will have to provide more data about their profits and taxes, on a country-by-country basis.
• CRD4 will oblige banks to increase the portion of best-quality core capital to 4.5 percent, from the present 2 percent.
• They have to hold a minimum total capital of 8% of risk-weighted assets – that is, capital held to back the loans that they make.
• The credit crunch was a liquidity crisis, so in future, banks will have to be able to meet their liabilities for a period of at least 30 days during financial stress.
Walter Wasser-IMF recognized Somalia’s New Government after a 22-Year Break
The International Monetary Fund announced on 12 April 2013 that it recognised Somalia’s new government after a 22-year gap in relations with the country. This step is a part of a general push by the United States, United Nations and the West toward encouraging rehabilitation there. It will allow the IMF to offer Somalia technical assistance and policy advice. However, Somalia will not be able to borrow IMF funds until it repays its 352 million US dollars in arrears that it owes the agency.
The U.S. formally recognized Somalia’s new government in January 2013, the first time the U.S. had recognized a Somali government since 1991, when warlords overthrew dictator, Siad Barre.
The U.N. Security Council in March 2013 voted unanimously to partially suspend an arms embargo on Somalia for 12 months for military equipment. This was done with the objective of developing somalia’s security forces and providing security for its people.
Earlier this month, President Barack Obama cleared the way for the U.S. to arm and train Somali forces. The Somali government of President Hassan Sheikh Mohamud, came into power in September 2012.
Walter Wasser-General Elections in Malaysia scheduled to be held on 5 May 2013
The Malaysian Election Commission in Kuala Lumpur on 10 April 2013 announced that the general election in Malaysia is to be held on 5 May 2013. The election chairman of Malaysia, Abdul Aziz Yusof declared 20 April 2013 as the day to start former campaign for the general elections.
The scheduled election will decide the fate of the ruling coalition of Prime Minister Najib Razak (National Front), as the governing party has enjoyed a tenure of 56 years (since independence) uninterrupted governance in the country. For the first time, the National Front lost two-third majority in the parliament in 2008 general elections.
The coalition government of Malaysia is composed of three parties and they define themselves on three different racial lines namely, one is the Malays, the other one is of the Indians and the third is of the Chinese.
The ruling coalition Government led by Najib Razak will be challenged by the leader of opposition on the former Deputy Prime Minister Anwar Ibrahim from the Peoples’ Alliance. In 2008 elections his party won 5 of 13 states of Malaysia.
Walter Wasser 