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Inflation at 5.11 pc
‘Volatile stock markets to affect India, too’
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No ban on Blackberry services
Gold may touch Rs 15,000
Nod to 18 FDI proposals
No FDI in retail sector: Pawar
Farm debt waiver to be funded by tax revenues
Indian SMEs most optimistic in Asia: Survey
Orissa approves 3 ultra mega power projects
Sab Maya Hai
Bank of M’rashtra opens forex centre in Panipat
It’s recession: US economists
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Inflation at 5.11 pc
New Delhi, March 14 The annual inflation rate was 6.51 per cent during the corresponding week of the previous year. Attributing the rise to increase in prices of imported commodities, finance minister P. Chidambaram said the government was ready to take more fiscal steps to control it while trying to make the country self-sufficient. “Inflation is on the rise. It is a matter that causes worry to any government and all of us should be concerned,” said the finance minister. Citing examples of inflation, he said the international prices of crude oil, palm oil and rice and wheat, which India imports, have been on the rise contributing to inflation. The government has taken some fiscal steps to control the prices of such items like cutting imports and excise duties and added that there was no taxation on food items. In addition to this, he said interest rate is one of the effective steps that can contain inflation. He added that the Reserve Bank of India should be trusted to use the instrument. He said the Reserve Bank should be trusted to use the instrument and it is quite possible that the interest rates could be reduced. Analysts when asked about the RBI’s action to curb increasing inflation, he said the chances that apex bank would cut rates are very dim. The finance minister remarked that no large country like India can depend upon imports of food grains, and remarked that it was akin to importing inflation into the country. To solve the problem, the minister said the government has launched Krishi Vikas Yojana and National Food Mission with an aim of making the country self-sufficient in essential commodities like rice, wheat and pulses. |
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‘Volatile stock markets to affect India, too’
New Delhi, March 14 Finance minister P. Chidambaram, while replying to Parliament, stated that some volatility is to be expected in the bourses due to turbulence in global financial markets, as the stock market is not the sole indicator of India’s economy. The stock market is reflecting worldwide developments. In fact, it is really reflecting the developed as well as the Asian economies, the minister said in a reply in Lok Sabha. But some volatility is to be expected especially when there is turbulence in the international financial markets, the finance minister said. “The stock market is an important indicator, but we should not look at it as the sole indicator of India’s economy,” Chidambaram said. The minister said the Sensex only captures the share price movement of 30 stocks and the Nifty captures the share price movements of either 50 or 100 stocks. He stated that the country has a well-established regulatory system in place and it would ensure there is no excessive volatility in the market. The minister also answered the query as regards to the appreciation of the rupee and said that it is not solely attributable to US recession. “It is the result of a number of factors like our productivity gains in India -- both labour productivity and capital factor productivity,” Chidambaram said. The rupee has appreciated rather significantly against the US dollar, which he said is weakening for reasons that are relevant to the US. The rupee has not appreciated to the same extent against the euro or the yen, Chidambaram added. |
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No ban on Blackberry services
New Delhi, March 14 “We will discuss the issue in the Telecom Commission. The country’s security is of paramount importance,” telecom minister A. Raja told reporters on sidelines of a function. The government is in discussion with the cellular operators like Bharti Airtel, Vodafone Essar and Reliance Communications and the issue would be resolved soon. Telecom secretary Siddartha Behura said: “We are keen to resolve the issue at the earliest but there is no question of banning the Blackberry services.” The issue of Blackberry services came to light after Tata Teleservices was denied permission by the ministry of home affairs to launch services due to security concerns. Tatas had claimed that each value added service like Blackberry service has to be approved by the government before it was offered to subscribers. Even the state-owned BSNL is also in the process to launch Blackberry service provided regulatory issues were resolved, BSNL director (finance) S.D Saxena said. Developed by Canadian firm Research In Motion (RIM), Blackberry is a patented service that allows access to e-mails on mobile phones just like SMS on conventional mobile phones. “We are ready to launch the Blackberry service provided the regulatory issues are resolved. If the issues are resolved now, then we can launch our service in one month,” Saxena said. On the issue of spectrum, the minister said spectrum issues are expected to be resolved soon to the satisfaction and fairness of all concerned. “We will roll out the spectrum during the regime of the UPA government,” he added.
— PTI |
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Gold may touch Rs 15,000
Mumbai, March 14 Gold prices could touch Rs 15,000 mark this year, a top bullion industry official said. The standard gold opened at Rs 13,035 in the Mumbai bullion market and Rs 13,160 in the Kolkata bullion markets. The yellow metal hit an all-time high of USD 1,000 an ounce in the US. “The gold price has scaled to a new high in both national and international markets. Prices may react in the near future to Rs 12,500, but overall the bullish trend may continue and its price may touch $1,200 per ounce and Rs 15,000 per 10 grams in 2008," Riddhisiddhi Bullion director Prithviraj Kothari said. “Gold demand has come down drastically and revival in demand may start only when the price reacts. The price may come down to Rs 12,700 per 10 grams in the near future and may scale up to Rs 13,500 by March-end," Bombay Bullion Association president Suresh Hundia said.
— PTI |
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Nod to 18 FDI proposals
New Delhi, March 14 Among the approved proposals, Essar Capital would invest Rs 560 crore to acquire the status of holding company for downstream investments. Cyprus-based Melbrook would bring in an FDI of Rs 125 crore for changing its status from operating company to operating-cum-holding company. Redington India Limited would bring in Rs 195 crore by way of foreign equity by holding company, while Ortel Communications would affect a compulsory convertible for Rs 60 crore. JSW Energy would induct FDI of Rs 63.23 crore in a holding company through a public issue. The government has, however, rejected four FDI proposals. These were from Red Fort India Realty Fund, Azorim International Holdings Ltd, Wadhwa Associates Realtors and Xcel Telecom Pvt Ltd. Seven proposals have been deferred, including those from Singapore-based Singtel Australia Pvt Ltd, and KNOX Holding Pvt Ltd. Besides, two FDI proposals have been recommended for consideration of the CCEA.
— PTI |
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No FDI in retail sector: Pawar
New Delhi, March 14 The minister clarified that the government was not considering any proposal to allow FDI in retail sector. He said: “There is no proposal to allow FDI in retail (and) the government is not thinking of it because it wants to protect the interests of the retailers.” The government has appointed International Council for Research on International Economic Relations (ICRIER) to submit its report on impact, if any, of domestic organised retailing on unorganised sector. The minister said the report would be submitted by May-end. ICRIER was to submit its report in July 2007 but the schedule was changed to enable additional survey. The study on ‘Impact of organised retailing on the unorganised retail sector’ was commissioned in March 2007. The report would study the effect of organised retailing on small retailers and vendors in the unorganised sector keeping in mid the likely growth in the overall market and effect on employment, the minister stated. The recommendations and findings of the study would help the government take a view on the need to have a policy on the issue, the minister clarified. Since retail is a state subject, allowing or disallowing setting up of retail establishments cannot be regulated by the
Centre. |
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Farm debt waiver to be funded by tax revenues New Delhi, March 14 The minister said he was happy to announce that the farmers’ accounts will be cleaned up by June 30, 2008. As the package is spread over three agricultural years, Rs 25,000 crore will be reimbursed to lending institutions between July 1, 2008 and June 30, 2009. The government will disburse the next tranche of Rs 15,000 crore by August 2009-10, thereby completing two-thirds of the relief package in just 14 months. The government has already made a provision of Rs 10,000 crore in the first year of announcement due to tax buoyancy. “I propose to release — in cash the debt waiver loan to the farmers,” said the minister, adding, “We will frontload the package in favour of cooperative institutions and RRBs (regional rural banks), which are typically more liquidity, constrained than scheduled commercial banks.” Chidambaram said the farmers who would benefit from the debt waiver will become eligible for fresh credit immediately after the accounts have been summarised by the RRBs and cooperative banks.
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Indian SMEs most optimistic in Asia: Survey
Chennai, March 14 “The majority (58 per cent) expect local economic growth to increase, 38 per cent expect the economy to maintain the same pace in the next six months as in 2007 and a mere 4 per cent expect a slowdown,” HSBC head (SME) Bhuvnesh Khanna told reporters here. The HSBC (Asia-Pacific) Small Business Confidence Survey, which covered 2,736 SMEs across nine Asia Pacific countries including India, also found that 68 per cent of Indian SMEs planned to increase their capital investment, 38 per cent planned to maintain it at the same level as last year and two per cent were likely to reduce it. The Indian SMEs expected cross border trade to increase significantly this year, the survey found. SMEs in India and Vietnam were the most optimistic about trade growth with China and the rest of Asia, it said. The respondents were asked about their local economic outlook for the next six months, their plans to reduce or increase capital investment and staffing levels, their expectation about trade volumes with China, the rest of Asia and the rest of the world.
— PTI |
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Orissa approves 3 ultra mega power projects
New Delhi, March 14 Besides, there is also a “strong” possibility for a fourth such project in Orissa and a new one in Gujarat as well, which would take the total number of UMPPs to 14 in the country. “Orissa has just agreed for three ultra mega power projects that could be structured through special purpose vehicle, promoted by Power Finance Corporation,” power secretary Anil Razdan said. He said the projects would be set up in a way so that the host state would be the major beneficiary. “The process to locate sites and potential purchasers (of electricity) will begin soon.,” Razdan said on the sidelines of a seminar organised by industry body CII today.
— PTI |
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Sab Maya Hai
New Delhi, March 14 “There was much hype over the list of billionaires that India has thrown up... (but) this is a deceptive distraction,” head of the coutry’s most valued corporate group said while referring to the Forbes’ worldwide billionaire list that included 53 Indians. “...It is like Maya (illusion) of our Indian philosophy. It veils your vision and we should be beware of this titillating illusion,” Ambani said while speaking at the India Today Conclave here. In its list published on March 5, Forbes magazine had ranked Mukesh as the richest resident Indian with a wealth of $43 billion. Among all the Indians residing across the world, Mukesh was ranked second after NRI steel tycoon Lakshmi Mittal, whose wealth was put at $45 billion. In the global list, Mukesh Ambani was ranked as fifth richest in the world after legendary investor Warren Buffett, Mexican telecom baron Carlos Slim Helu, software czar Bill Gates and ArcelorMittal CEO Lakshmi Mittal. The magazine said Mukesh Ambani was the second biggest gainer adding $22.9 billion to a wealth of $20.1 billion reported in the Forbes Billionaire list for August 2007. Last year, Ambani had been placed at the 14th position in world. — PTI |
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Bank of M’rashtra opens forex centre in Panipat
Panipat, March 14 After inaugurating the branch in Panipat, Rajiv Madhok, executive director of the bank, said the financial institute would commission 26 more branches in North India in the next financial year. He revealed that the bank would launch the insurance service from June this year with a share of 15 per cent. He said Chennai-based Shri Ram Group and Sanlam Company of South Africa would own 59 per cent and 26 per cent stake in the joint venture, respectively. He said keeping in view the demand of the Panipat industrial market, the Pune-based bank had decided to float its maiden foreign exchange counter here. With the opening of two more branches in Gurgaon in the coming months, the bank would jump to the number to 21 branches in the state. Madhok said of the total clientele, nearly 43 per cent were low cost investors. With an annual business of nearly Rs 71,000 crore, the bank had witnessed a growth of 25 per cent. |
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It’s recession: US economists
New York, March 14 Following months of specualtion about the dreaded ‘R’ word, the new survey shows a “precipitous shift” toward pessimism from the previous one conducted five weeks earlier and is reinforced by new data showing a sharp drop in retail sales last month, the paper says. Thirty-six of 51 respondents, more than 70 per cent, said in a survey conducted March 7-11 that the economy is in recession. The declines, the Journal says, reflect a sharp slowdown in consumer spending, which accounts for more than 70 per cent of US economic activity, as Americans grapple with high gasoline and food costs and declines in home values and other asset prices. The economists, it said, now expect non-farm payrolls to grow by an average of just 9,000 jobs a month for the next one year - down from a previously expected 48,500. Although the classic definition of recession is two consecutive quarters of declines in the gross domestic product, Stephen Stanley of RBS Greenwich Capital was quoted as saying the National Bureau of Economic Research, the nonpartisan organisation that is the official arbiter of recessions, does not always strictly follow that definition. “If you go back to the 2001 recession, there was only one negative GDP quarter, and there might not even be one negative quarter in this recession,” he said. Almost half the economists surveyed said a recession this year could be worse than the 2001 and 1990-91 downturns. Amid the rising concerns, respondents expect more action from policy makers.
— PTI |
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