|
Economic Notes |
 |
Inflation to be high for now: Rangarajan: Calling for a hike in fuel prices "at some particular point" in response to high global crude rates, the Prime Minister's economic advisory panel on Friday said inflation would remain high for another 3-4 months before cooling off to 5.5 per cent by end of this fiscal. "It (inflation) may even reach 5.5 per cent by end of this fiscal. As it stands now, for another 3-4 months, inflation rate will remain high, even though it would show a tendency to decline, the level will be high around six per cent," Prime Minister's Economic Advisory Council Chairman C Rangarajan said in New Delhi. Subsequently, inflationary expectations will dampen depending on the monsoon, and because of the "extremely good procurement", he told reporters on the sidelines of the seminar organised by the National Institute of Public Finance and Policy.
Forex reserves swell $1.4 bn: Foreign exchange reserves have risen by $1.4 billion during the week ended May 16. Term deposits posted a strong growth in the latest fortnight while banks witnessed a modest growth in non-food credit. According to the figures released in the weekly statistical supplement (WSS) by the Reserve Bank of India, total foreign exchange reserves, including gold, SDR rose $1381 million during the week ended May 16 to $314.08 billion. While foreign policy assets rose $1,342 million, the value of SDR dipped $7 million. The reserves with the IMF on the other hand rose $46 million during the week. Loans extended by commercial banks rose Rs 17,590 crore during the fortnight ended May 9, to touch Rs 23,46,656 crore. Both food and non-food credit rose during the fortnight by Rs 9,018 crore and Rs 8,572 crore respectively.
Aggregate deposits raised by commercial banks touched Rs 31,20,709 crore as on May 9, up Rs 28,607 crore over the previous fortnight’s levels. While demand deposits fell Rs 4,385 crore, term deposits rose Rs 33,462 crore. Investments in government and other approved securities touched Rs 10,13,948 crore as on May 9, down Rs 343 crore over the previous fortnight’s levels.
'India story intact; growth at 8.6% for next 5 yrs': Stating that India is not witnessing a slowdown in investment, Confederation of Indian Industry President K V Kamath said on Thursday the country would continue to grow at a healthy rate of 8.6 per cent for the next five years. "Personally, I think India would continue to grow at 10 per cent. But going by CII figures, India's growth rate would be 8.3 per cent to 8.6 per cent in the next five years," he said in Mumbai. Kamath, who heads India's second largest lender, ICICI Bank, said the economic fundamentals of the country are strong. "Our savings rate is 35 per cent and our investment rate is 36 per cent." He said there is no slowdown in investment in the country, one of the fastest-growing major economies which is currently focusing on controlling soaring inflation that has hit a four-year high. "About USD 700 billion is being invested in the country," Kamath pointed out.
Indirect tax collection target set at Rs 3.2 lakh cr in 2008-09: The Government has set Rs 3.2 lakh crore as the target for indirect tax collection during 2008-09, entailing mop-up of Rs 877 crore a day, said Mr P.C. Jha, Chairman, Central Board of Excise and Customs (CBEC), Ministry of Finance. Delivering the lecture ‘New Paradigm in Revenue Collection’ at a function organised by the All India Importers’ and Exporters’ Association, Mr Jha said indirect tax collection in 2008 exceeded the target by Rs 2,500 crore to touch Rs 2.79 lakh crore.
Volatile rupee falls below 43 a dollar: After plunging below the 43-level in intra-day trade, the rupee fell 12 paise to close at 42.95/96 a dollar on Thursday last as high crude oil prices boosted the demand for the US currency. Though the falling currency has brought cheers to exporters and IT companies, importers (mainly oil companies) are being badly hit. According to a dealer, public sector banks sold the dollar to prevent a major slide in the rupee. As a result, the rupee, which had hit the 43.20-level, staged partial recovery. Meanwhile, the government expressed concern over sharp fluctuations in rupee value, particularly against the US dollar, and feels that RBI should intervene to correct the trend.
Motorola gets $90 mn BSNL contract: Motorola Inc. has received a $90 million contract to supply GSM network equipment to the Bharat Sanchar Nigam Limited (BSNL). Under the contract, Motorola will ship GSM network equipment and provide a network services programme including software and hardware support, a company statement said.
Debt waiver for farmers hiked to Rs 71,680 cr: The government on Friday hiked the provisions for debt waiver for farmers by a hefty about 20 per cent to Rs 71,680 crore, a move that would enlarge the scope for relief for peasants. The decision to increase the debt waiver amount from Rs 60,000 crore, announced in the Union Budget for 2008-09, was taken at the meeting of the Cabinet presided over by Prime Minister Manmohan Singh. Congress General Secretary Rahul Gandhi has been suggesting enlargement of the scheme to include more farmers.
Ranbaxy starts operations in Yemen: Ranbaxy Laboratories commenced its operations in Yemen, introducing its products to around 350 doctors. The company has tied up with Pharma (Natco) as business partners for its Yemen operations, says a release.
India Fair in Bangkok to boost trade prospects: The growing economic corporation between India and Thailand will get another boost at the ITPO-sponsored India Fair, 2008 at Bangkok to provide an ideal platform for domestic Companies to explore potential for their products in Thailand as well as in the ASEAN market. "The four-day event, beginning on July 24, has been programmed in light of the bilateral relations between India and Thailand, which got a boost with rise in economic and commercial links, high level visits on both sides and dialogue partnership with ASEAN," General Manager, ITPO, N K Sehgal said.
Pointing out that today Thailand is India's fourth largest trade partner in the ASEAN, Sehgal said the fair would facilitate our Companies to explore the market in the whole of ASEAN region, with special emphasis on Vietnam, Malayasia and Singapore. "Besides projecting scientific and technological advancement in different spheres, the fair would showcase potential for trade, technology transfer, joint ventures investments and R&D activities on both sides," he added.
India ranks above China in social welfare: India has fared better in providing social security like health care, education and child welfare to its people than China and Malaysia, as per a new index brought out by the Asian Development Bank. In a list of 31 Asia-Pacific countries, India ranked at 10th place, above China and Malaysia, but below Uzbekistan, Mongolia, South Korea and Japan, which topped the ADB's Social Protection Index (SPI). Apart from China and Malaysia, the countries which are ranked below India include Philippines, Nepal, Indonesia and Bangladesh. Pakistan was ranked at the bottom, next only to Papua New Guinea.
India's first 'real estate' TV channel: Real Estate TV (RETV), a round the clock channel dedicated to infrastructure and realty said on Wednesday that it has appointed Prem Kumar Menon as its CEO. Menon brings with him 27 years of rich media and marketing experience and before joining Real Estate TV, he was working as COO of a media group in Chennai. Besides Menon, Anil Nair has also joined the group as its News Head. Prior to this appointment Anil Nair was working as business journalist in the Indian Express Group. Real Estate TV is the first channel in the country extensively engaged in tracking developments in real estate and infrastructure.
India blames WB, IMF for food crisis: Firmly rejecting the contention that rising consumption in developing nations was responsible for the soaring food and fuel prices, India has blamed the policies of World Bank and IMF and "excessive and unsustainable" demand in developed countries for the crisis. "This consumption trend has existed for more than a decade," said Indian UN Ambassador Nirupam Sen, pointing out that over last two years, the demand for oil has gone up one per cent but prices in dollar terms have risen by 90 per cent. Addressing a special meeting of the United Nations Economic and Social Council to consider the issue of rising food prices, he held financial crisis leading to weakening dollar and diversion of grains to production of bio-fuels among the major causes. Sen also blamed the policies followed by the Bretton Woods Institutions (BWI) responsible and severely criticised their advice to countries to shift from food crops for domestic population to cash crops for exports.
Indo-US trade set to grow 50%, says Consul General: According to Mr Henry Jardine, the US Consul General in Kolkata, the Indo-US bilateral trade relationship is projected to grow at about 50 per cent at $60 billion during 2008-09, against about $40 billion in 2007-08. “I recall when I arrived we spoke of a bilateral trade relationship valued at about $20 billion and now in the coming year, we are projecting possibly $60 billion in bilateral trade,” Mr Jardine said. The Consul-General, who is leaving the city in July, was sharing his experiences about Bengal and the business prospects in the near future.
The US investments so far have been focused on petrochemicals, information technology, financial services, engineering and infrastructure. “With recent agreements signed between India and the US, other areas of opportunities, such as agro-business, science and technology, are set to offer good potential,” Mr Jardine said.
|
