The Tribune, Chandigarh, India

India, Pakistan aim for preferential trade pact
Tribune News Service

New Delhi, November 14
The crucial trade talks between India and Pakistan on “most favoured nation” (MFN) status got under way on Monday with expectations that some concrete results on enhancing trade between the two neighbours would be achieved.

India’s commerce secretary Rahul Khullar and his Pakistani counterpart, Zafar Mahmood, began the two- day talks for ensuring normal bilateral trade.

Khullar said India was open to preparing a roadmap with Pakistan for preferential trading arrangements under the SAFTA process. “Our goal should be to reach peak tariff levels of no more than 5 per cent for all major traded and tradable commodities. We hope to positively engage and jointly work to put such preferential trade arrangements in place at the very earliest”, he said.

Mahmood set the tone in his opening remarks. "I want to assure you that please have trust and faith in the process (normalization of trade). Times have changed. The world is coming closer," he stated.

Mahmood, who is having a second round of talks with his Indian counterpart in the last six months said, he is looking forward to the official level discussions "in a spirit of mutual cooperation and confidence". “In Pakistan,the political leadership, besides common people and businessmen, want normalization of bilateral trade”, he added.

While welcoming Pakistan's decision to grant MFN status to India, Khullar said: "Expectations from these talks are running high...as the people including business communities and politicians want a breakthrough and lay a foundation for preferential trading arrangements”.

Referring to the recent meeting between the prime ministers of the two countries at the SAARC summit in Maldives, Khullar said: "Barely a few days ago our prime ministers met and trade figured prominently in their agenda. Our political leaders have given us clear directives on where we have to go. With such clear political vision, we’re now obliged to walk the talk”.

India granted MFN status to Pakistan way back in 1996. Islamabad had announced the crucial WTO- compliant regime woould be granted for New Delhi on November 2. However, there has been some confusion on the MFN status.

Touching on the important issues between the two countries, Khullar said that the visa issue is a significant barrier and said that both sides have reached a broad agreement to put in place reciprocal arrangements which shall substantially liberalize the visa provisions for business persons. “We are hopeful that an agreement shall be finalized during the next round of home secretary level talks, slated for December, 2011”, he said.

Some issues where discussions has taken place earlier include upgrade of infrastructure at the Attari Wagah customs station, liberalization of trading arrangements through the land border and close customs coordination.

US tells China to behave like ‘grown up’ economy

Honolulu, Hawaii, Nov 14
President Barack Obama told China on Sunday that the United States was fed up with its trade and currency practices, as he turned up the heat on America's biggest economic rival at an Asia Pacific summit.

"Enough's enough," Obama said bluntly at a closing news conference at the annual Asia-Pacific Economic Cooperation meeting where he scored a significant breakthrough in his push to create a pan-Pacific free trade zone.

‘All major economies face slowdown’
None of the world's major economies will escape a slowdown, the Organization for Economic Cooperation and Development said on Monday, highlighting increasing signs that growth momentum is dwindling across the board. The Paris-based OECD's composite leading indicator (CLI) for its members fell for the seventh straight month to 100.4 in September, down from 100.9 in August and hitting the lowest reading since December 2009.

Using some of his toughest language yet against China, Obama - a day after face-to-face talks with President Hu Jintao - demanded that China stop "gaming" the international economic system and create a level playing field for U.S. and other foreign businesses.

"We're going to continue to be firm that China operate by the same rules as everyone else," Obama said. "We don't want them taking advantage of the United States."

There was no immediate response from China, which has in the past shrugged off U.S. demands that it allow its currency to float freely and take steps to reduce its huge trade surplus.

And it was unclear how much of Obama's tough rhetoric was, at least in part, political posturing aimed at economically weary U.S. voters who will decide next November whether to give him a second term. — Reuters

BSNL ties up with Bharat Berry to offer push email service
Tribune News Service

New Delhi, November 14
In an effort to boost its fledgling subscriber base, the public sector telecom operator Bharat Sanchar Nigam Ltd has tied up with Bharat Berry Technologies Pvt. Ltd, which provides the indigenous version of BlackBerry smartphone, to provide push- email” services for all its mobile subscribers across the country.

BSNL, with more than 60 million subscribers in the country, launched the service on Monday. Announcing the launch Bharat Berry said the mobile communication service works with most of the mobile phones and provides a more advanced “push mail” with over the air back- up of the user’s contacts, tasks, calendar and notes. Moreover, it can also sync with MS Outlook on the user’s computer.

BSNL in alliance with Bharat Berry is targeting this service for all range of handsets carrying Blackberry, Symbian, Android, Windows Mobile and J2ME that will cover all major mobile handsets.

BSNL chairman & MD R.K. Upadhyay said: “This BSNL and Bharat Berry partnership will provide its customers with an easy to use, cost effective solution for their mobile push e-mail requirements. As the mobile data connectivity is improving and data usage is growing, more and more customers are looking for push e-mail solution on their mobile handsets as a productivity tool and as a means to remain connected”.

BSNL has provided a dedicated SMS number 51123 for those subscribing for the Bharat Berry services. Any existing BSNL GSM Mobile subscriber can just send an SMS with “SUB BB” on 51123 and follow few basic steps to activate this service.

For enabling access to all services including e mails and PIM sync users will be charged a nominal fee of Rs 80 per month for the combo pack, while the individual services will be available for Rs 50 each per month. The service will be available for both the pre-paid and post-paid GSM Mobile subscribers.

As a launch offer one month free trial for Bharat Berry services will be available for all BSNL cellular customers.

Ajay Data, founder and CEO, Bharat Berry, said, “Bharat Berry in an India complete solution that follows industry standard non propriety encryption.

Higher food prices push inflation to 9.73%

New Delhi, November 14
Headline inflation hovered stubbornly near the double-digit mark in October, rising marginally to 9.73 per cent as prices of food products, fuel and manufactured goods put more pressure on the common man's pocket and major sectors of the economy.

Inflation, as measured by the Wholesale Price Index (WPI), stood at 9.72 per cent in September. The rate of price stood at 9.08 per cent in October, 2010.

On an annual basis, food items became 11.06 per cent more expensive year-on-year during the month under review. Food inflation was recorded at 9.23 per cent in September.

Vegetables grew 21.76 per cent costlier on an annual basis, while fruit prices were up by 11.96 per cent and milk by 11.12 per cent during the month. Eggs, meat and fish witnessed 12.59 per cent inflation during October, 2011.

Inflation in overall primary articles stood at 11.40 per cent in October, compared to 11.84 per cent in September.

Non-food primary articles, which include fibres, oil seeds and minerals, grew dearer by 7.71 per cent in October, as compared to a 14.82 per cent rise in the previous month.

Prices of manufactured products, which have a weight of around 65 per cent in the WPI basket, went up by 7.66 per cent year-on-year in October, as against 7.69 per cent in September.

Inflation in manufactured items has been high since February this year, when it crossed the 6 per cent-mark.

Experts said stubborn inflation will put pressure on the government and the RBI at a time when the latest data shows growth in industrial output plunged to a two-year low of 1.9 per cent in September.

Among manufactured items, iron and semis grew dearer by 21.67 per cent, edible oil prices rose by 13.09 per cent, the cost of tobacco products moved up by 12.53 per cent and cotton textiles became 10.80 per cent more expensive. — PTI

RBI rejects proposal on leasing mortgaged land
Tribune News Service

Chandigarh, November 14
The Reserve Bank of India has rejected the Haryana government’s proposal for banks to manage land under lease arrangement in case of default in loan repayment. The scheme, forwarded by the Haryana state level bankers committee to the central bank, has been rejected by the latter on the grounds that “it would neither be feasible nor viable, and would vitiate the credit atmosphere in the state”.

This was disclosed during the state level bankers committee (SLBC) meeting for Haryana held here Monday. The representatives of the state government and other public, private and cooperative banks were informed by the convener bank, Punjab National Bank, that the RBI’s central office had declined to go ahead with the scheme on the grounds it might entail legal complications for banks and credit to the farm sector would be affected. “Such a scheme would cause banks’ resources to be diverted from their core activities without making any substantial gain on the recovery front,” said the RBI communication.

The Haryana government had mooted a proposal last year that a farmer’s land held as collateral should not be auctioned by the bank. Rather, the bank should manage the land under lease arrangement, under which 50% income may be used to realize the dues of the bank and remaining 50% should go to the farmer.

In fact, this scheme is already being implemented in Haryana State Cooperative Apex Bank and the Haryana State Cooperative Agriculture and Rural Development Bank.

Coke, partners to invest $2 bn in India over 5 yrs

Gurgaon, November 14
In one of its single biggest investments, beverage major Coca-Cola and its partners will invest $2 billion (around Rs 10,000 crore) over the next five years to enhance its operations in India and set up a new plant.

"Along with our partners, we will invest $2 billion in India in the next five years. Apart from China and the US in the past, this is one of our single largest investment in a country," Coca-Cola Eurasia & Africa group president Ahmet C Bozer told reporters here.

India is one of the most important growth markets for Coca-Cola and the investment is being made as a part of the company's 2020 vision of doubling system revenues globally, he said.

Since its reentry into India in 1993, Coca Cola has pumped over $2 billion into the country. — PTI

Gold hits new high at Rs 29,295

New Delhi, November 14
Gold touched a new all-time high level today by rising by Rs 30 to Rs 29,295 per 10 grams, driven by sustained buying by stockists and jewellers to meet the demand for the ongoing marriage season, amid a firming global trend.

Silver followed suit and gained Rs 150 to Rs 58,000 per kg on increased offtake by industrial units and jewellery makers.

Trading sentiments bolstered on heavy purchases by stockists and retailers for the ongoing marriage season and investor shifting their funds from weakening stocks to rising bullion.

The uptrend further supported by firming global trend after gold advance as a decline in the dollar after the appointment of new governments in Greece and Italy boosted demand for the metal as an alternative asset. — PTI

US carriers oppose subsidy for AI's Boeing buy

New York, November 14
Calling Air India "one of the most poorly-run airlines in the world", American carriers have opposed the US Exim Bank's $3.4 billion support to it to buy Boeing 787 Dreamliners.

The Air Transport Association (ATA), a trade group representing America's biggest carriers, has shot off a letter to US Export-Import Bank Chairman Fred Hochberg opposing the decision, saying Air India's financial ill-health should disqualify it from getting American help.

The US Exim Bank had last month decided to give loan guarantees of $1.3 billion to support Air India's fleet acquisition from Boeing and another $2.1 billion preliminary commitment to support future deliveries of the US aerospace company's planes to the Indian national carrier. — PTI

M&M Q2 net dips marginally

Mumbai, November 14
Auto major Mahindra & Mahindra on Monday reported a 3.18% rise in its consolidated profit after tax for the quarter ended September 30 at Rs 761.5 crore on account of contributions from its subsidiary — Mahindra Vehicle Manufacturers Ltd.

The company had posted PAT of Rs 738 crore in the same period last fiscal.

Consolidated total revenue during Q2 of fiscal 12 also rose 33.86% to Rs 8,298.8 crore from Rs 6,199.6 crore in the year-ago period.

Standalone PAT, however, declined by 2.78% to Rs 737.4 crore in the July-September quarter, from Rs 758.5 crore in the same period last year, the company said.

The total standalone revenue in the September quarter went up by 33.15% to Rs 8,198.7 crore from Rs 6,157.3 crore in the same period last fiscal. — PTI

Tata Motors Q2 net dips 16%

New Delhi, November 14
Tata Motors on Monday said profit for the quarter to end-September fell 16% to Rs 18.77 billion from Rs 22.23 billion a year ago, lagging market estimates hit by higher costs and foreign exchange losses. evenue was rose 26% to Rs 359.4 billion.

The firm’s margins in Q2 were hit by lower volumes, higher marketing spend and increasing input costs for the car business. — Reuters

Govt mulls 10% stake sale in OIL

NEW DELHI: India is considering a 10% stake sale in state-run explorer OIL India, likely in the next fiscal that begins in April, a company source told reporters on Monday. "It has to be at least 10% and our share sale will happen once ONGC's FPO is completed," it added. — Reuters