New Delhi, April 3
With a slowdown in exports and the current account deficit rising, Commerce Minister Anand Sharma said Wednesday that several sops will form part of the foreign trade policy to be announced on April 18. “A forward looking pragmatic foreign trade policy will be announced on April 18,” he said while addressing the CII AGM in the capital.

Sharma has already held detailed consultations with the Finance Minister P. Chidambaram on contours of the package to boost exports, to be announced as part of the foreign trade policy.

It is expected that the annual supplement to the policy would address both the immediate and medium term concerns of exports and to give a fillip to India’s exports.

Chidambaram in his FY2014 budget speech had assured that full support will be provided for exports in the backdrop of growing current account deficit. Sharma has held a series of consultations with FICCI, CII, export promotion councils and FIEO and a meeting of the Board of Trade was convened.

Thereafter, detailed consultations have been held between the commerce and finance ministries on drawing the contours of a package to be announced as part of the foreign trade policy.

During the 2012-13 fiscal, India's exports are unlikely to reach even the 2011-12 level of about $306 billion, and the trade deficit is likely to widen between $193 billion and $196 billion in the last fiscal. In April-February 2012-13, exports declined by 4% to US $265.95 billion.

Sectors like engineering and textiles are registering negative growth. These segments are likely to get some sops in the new policy.

According to sources, exporters are likely to get benefits under focus product and focus market scheme. special economic zones, which contribute about 30 per cent of the country’s overall exports, are also expected to get incentives.

PTI adds: The incentives will help in boosting exports and bridging the widening trade deficit, which has touched $182.1 billion in the 11-month period of the last fiscal. Last time, in December 2012, the government had announced incentives for exporters that include extension of 2% interest subsidy for one more year till March 2014.

On a query related to implementation of goods and service tax, Sharma said the finance minister is seized of the matter and sufficient progress has been made on this front. He added he would push for a higher foreign direct investment cap in the defence sector beyond the current 26 per cent.

Mumbai, April 3
With gold prices falling to a ten-month low, buyers of jewellery are rushing to stock up on ornaments with the wedding season just a few days away.

According to traders at the city’s Zaveri Bazaar, the hub of the country's gold trade, a sharp fall in the prices of the yellow metal on Wednesday has resulted in good demand from retail buyers.

"People expect gold prices to rise during the wedding season, but the fall over the last two days has caused demand to go up," said Amritlal Jhaveri, a jewellery store owner in downtown Mumbai.

Gold prices in Mumbai's spot market touched Rs 29,460 per ten grams while on the MCX gold for June delivery fell to Rs 29,357 before closing at Wednesday's spot rates.

Traders in Mumbai say demand for gold is expected to be robust till mid-June when the current wedding season ends.

However, traders say buyers are timing their purchases to coincide with falling prices. "People are tracking gold prices on television and the Internet and come to buy when the prices fall suddenly. If it is considered inauspicious to buy gold, they deposit money and collect the jewellery when it suits them," said Hasmukhbhai Mehta, another jeweller.

The government has been trying to curb demand for gold in order to bring down its current account deficit. Apart from direct curbs like an increase in import duty to 6 per cent, the authorities have made it mandatory for buyers to declare the PAN number issued by the income tax department in order to purchase jewellery above Rs 50,000 in value.

According to analysts, gold prices will also depend on the value of the rupee against the dollar. A rising rupee will bring down the cost of gold further, it is felt.

PTI adds: Gold prices dropped to the lowest level in more than three weeks in global markets as investors cut holdings after the dollar gained and data showed an improving US economy.

Gold in global markets, which normally set price trend on the domestic front, fell 0.8% to US $1,563.68 an ounce, a lowest since March 8 and silver by 0.9% to $27.02 an ounce, cheapest since August 2 in Singapore. Selling by stockists came in at a time when the the market is passing through an off wedding season and the government has hiked tariff value on importing gold.

The tariff value, the base price on which the customs duty is determined, has been raised to $521 from $516 per ten grams. On the domestic front, gold of 99.9% and 99.5% purity tumbled by Rs 500 each to Rs 29,600 and Rs 29,400 per ten grams, respectively. 

Bangalore, April 3
The Larsen & Toubro construction firm has won an order valued at US $257 million (Rs.1,398 crore) from Abu Dhabi Airports Co to build a midfield terminal complex in the United Arab Emirates, the company said here Wednesday.

"Work on the midfield terminal complex is part of the major expansion programme of Abu Dhabi International Airport to serve as the new gateway to the city," the company said in a statement.

The order envisages building concrete hardstands for aircraft parking around the new terminal, including contact and remote stands. The airside works include taxi lanes along the apron parking stands and link taxiway connections to the existing infrastructure with a tunnel on the airside.

"The project has also an aircraft fuel hydrant system, storm and portable water distribution line, chilled water distribution system, medium voltage distribution sub-stations, communication network and fire main distribution system on the major utility segments," the statement said.

The project will commence this month with a construction timeline of 28 months. The new airport terminal complex is expected to be commissioned by 2017.

The $13.5-billion L&T is a technology, engineering, construction, manufacturing and financial services conglomerate, with global operations. — IANS

London, April 3
Royal Bank of Scotland shareholders have filed a 4 billion pound (US $6 billion) lawsuit against the company, claiming they were misled into thinking the bank was healthy just before its collapse.

A group representing 12,000 investors says the bank didn't include vital information in the prospectus for a 12 billion-pound share sale that took place just a few months before RBS was bailed out by the government.

The bailout diluted the holdings of existing shareholders and the stock plunged, slashing the value of their holdings. The bank is now 82% owned by the British government.

The group said in a statement today that the lawsuit names former CEO Fred Goodwin and three other directors, as well as the bank itself, as defendants. RBS declined to comment.

RBS announced the share sale in April 2008 and issued a prospectus that month. By October, it needed a government bailout and reported a £28 billion net loss for the year. — AP

Bangalore, April 3
Growth in India's services sector eased last month to its slowest since October 2011 as order books filled at a slower pace, a business survey showed on Wednesday, compounding problems for the economy after earlier data showed manufacturing activity was also losing momentum.

The HSBC services Purchasing Managers' Index, based on a survey of around 400 companies, fell to a 17-month low of 51.4 in March from 54.2 in February.

While the headline PMI fell for the second straight month, it has held above the 50 mark that separates growth from contraction since late 2011.

Services make up nearly 60 percent of India's output and were the lone bright spot in an otherwise sluggish economy that likely grew at its slowest pace in more than a decade in the fiscal year that ended in March.

The new business index, which rose an 18-month high in January, also fell for its second straight month to its lowest since November 2011.

"Growth in services sector activity slowed notably due to a deceleration in new business flows. Even so, businesses remained confident about the future," said Leif Eskesen, economist at survey sponsor HSBC.

Strong overseas demand for Indian services has taken a hit from renewed fears over the eurozone debt crisis, which could add to exporters' problems and slow new outsourcing deals for Indian software companies.

Still, firms were more optimistic about the future in March, with the business expectations index rising a touch to 70.1 from 69.4.

A similar manufacturing survey on Monday showed that cooling domestic and foreign demand dragged on growth at Indian factories in March, with the sector expanding at its slowest pace since November 2011.

The PMI services survey also showed costs rose at a slower pace during March. Coupled with easing price growth, for factories the survey suggests inflation will likely ease further.

Wholesale prices, India's main inflation gauge, rose to 6.84% in February and although it has generally declined in recent months, it is still above the central bank's perceived comfort level of around five percent.

The Reserve Bank of India, facing intense pressure from industry and government to loosen monetary conditions to arrest the worst economic slowdown in a decade, has cut its key lending rate twice so far this year by 25 basis points each time, lowering the rate to 7.50% after leaving it on hold for nine months.

However, the central bank warned the prospect of further monetary easing is limited.

The recent uptick in headline inflation and a record-high current account deficit limit the RBI's space for monetary easing, despite pressure from a government facing elections in 2014. — Reuters

Chandigarh, April 3
Canara Bank is on a major expansion spree. The bank will be opening over 1,000 odd branches in India and nine overseas branches and representative offices during the next two years. Besides, the bank also plans to open ten all-women bank branches across the country.

The thrust for Canara Bank will be on the retail sector and the SMEs (small and medium enterprises) sector, which will help the bank propel towards a high growth rate.

The state-owned bank is targeting a growth of 15 per cent during this financial year and is hoping to clock a total business of Rs 700,000 crore by March 2014.

Canara Bank managing director R.K. Dubey said this year, with the Basel III capital regulation norms being mandatory by the Reserve Bank of India, the bank will be working towards maintaining its capital adequacy ratio.

“Even now, our capital adequacy ratio is 12.7 per cent. We’ll continue to maintain profitability of the bank and for this, we have ensured a very efficient risk management system,” he added.

With the Basel III capital regulation, banks will have to maintain their capital adequacy ratio at 9 per cent as against the minimum recommended requirement of 8 per cent. Under the Basel III accord, banks have to maintain tier I capital (equity and reserves) at 7 per cent of risk weighted assets (RWA) and a capital conservation bugger of 2.5 per cent of RWA.

Dubey said Canara Bank will be focused on improving its business in the retail, SME, and priority sector lending to agriculture.

“Our exposure to the retail sector is 12%, which we are targeting to increase to 20% in next two years. Similarly, by 2015, we will increase our exposure in the small and medium enterprises sector from 20% to 30% of the total business. The thrust is on all sectors where the margin is good and the delinquency in loan repayment is low.

“The bank will also be having a more focused approach in real estate lending and in education loans, by having tieups with the builders and the educational institutions for financing housing loans and education loans. Through these tieups we can advance loans faster and tracking of loans also become easier for the bank,” he said.

Dubey stated Canara Bank will be opening over a thousand bank branches across the country in the next two years, taking the total branch strength to 5,000.

He added the bank also plans to open new overseas branches and representative offices in New York City, Tokyo, Johannesburg, Germany, Jeddah, Qatar, Brazil, Brunei and Tanzania. 

Detroit, Michigan, April 3
Hyundai Motor Corp and its Kia Motors affiliate are recalling more than 1.8 million cars and SUVs in the United States to address a potentially faulty switch and a loose headliner, according to U.S. safety regulators.

Hyundai is recalling 1,059,824 cars and SUVs and Kia 623,658 vehicles from model years 2007 through 2011 to replace a switch that could malfunction and increase the risk of a crash, according to documents filed with U.S. National Highway Traffic Safety Administration.

A Kia spokesman in the United States said the company was not aware of any accidents or injuries related to the issue and did not have any information on whether the recall was being done in other countries. A Hyundai spokesman in the United States said there had been no reports of accident or injuries.

In addition, Hyundai is recalling 186,254 Elantra cars from model years 2011 through 2013 to apply adhesive strips to prevent the headliner from becoming displaced during a side curtain airbag deployment, the NHTSA said. The Hyundai spokesman said there was one report of a minor injury, a cut ear, related to the issue.

The Korean automakers are notifying owners. — Reuters