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The Mint Report for 06 July 2010

The Mint Report for 06 July 2010
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First Published: Tue, Jul 06 2010. 10 20 PM IST
Updated: Tue, Jul 06 2010. 10 21 PM IST
The department of industrial policy and promotion says multi-brand retail needs to be opened to more foreign investment. It released a so-called discussion paper on Tuesday that says FDI in organized retail will supply cash that can modernize back-end infrastructure.
The paper also says foreign investment will make India’s supply chains more efficient. What the paper doesn’t mention is just what percentage of foreign capital should be allowed. Currently, the government does not allow any foreign investment in multi-brand retailing. Single brand ones can get 51% FDI, while wholesale trading businesses can bring in 100% foreign capital.
Toyota is ramping up its investments in India. The company says it will spend Rs500 crore to set up a factory that will make parts for its small car, the Etios. Its factory will be built just outside Bangalore and will produce about 100,000 Etios engines a year, starting 2012. The plant will also make transmissions both for the Indian market and for export.
Indian stocks broke a three-day losing streak on Tuesday after the good news about the monsoon, and after the Standard and Poor’s statement on sovereign risk. The Sensex shot up one 173 to finish at 17,614. And the Nifty climbed 53 to wind up at 5,289.
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First Published: Tue, Jul 06 2010. 10 20 PM IST