The Tribune, Chandigarh, India

	Exports clock 9.3 pc growth New Delhi, February 1 Recording the positive growth for the second month in a row, the exports grew by 9.3 per cent in December, 2009, suggesting that the country's trade is coming out of the economic blues. Imports, which are a reflection on the domestic economic activity as well as exports, too turned positive after recording long 11 months of negative growth, registering an impressive growth of 27.2 per cent in December. After falling for 13 straight months, in November, 2009, exports grew by 18.2 per cent-- for the first time since the global financial meltdown engulfed the world. On the increased trade activity, Rakesh Mohan Joshi of the Indian Institute of Foreign Trade said, "Imports turnaround is due to the revival in the country's industrial activities. We import inputs for exports." Exports in December increased to $14.6 billion from $ 13.36 billion a year ago, marking a reversal of declines that had set in since October, 2008, due to demand slump in the key global markets. December imports went up to $24.75 billion from $ 19.45 billion in December, 2008, leading to a narrowed trade gap of $10.14 billion during the month against $6.08 billion in the year-ago period. "The figures are clearly reflecting that the economy is coming on the track," Joshi said. However, he added, "We need to be cautious." FIEO president A Sakthivel said the growth in imports reflects the effect of double-digit growth in the manufacturing sector. However, for the April-December period, exports dropped by 20.3 per cent to $117.58 billion from $147.56 billion. "We expect there will be a 5 per cent decline in exports in 2009-10 over the last fiscal. In 2010-11, we can expect a 10 per cent growth as there will be recovery in the rest of the world," HDFC Bank economist Jyotinder Kaur said. Despite the positive growth, exports in the current fiscal are likely to remain much lower than the $185-billion worth of shipments last year, Sakthivel pointed out. Meanwhile, the country's oil imports also went up by 42.8 per cent, second month in a row, to $6.53 billion in December, 2009, compared to $4.57 billion a year ago. According to the data, oil imports during the first nine months of this fiscal was $56.91 billion against $81.10 billion April-December, 2008-09. Non-oil imports in the month grew by 22.4 per cent to $18.21 billion from $14.87 billion in December, 2008. Imports during April-December of this fiscal were $193.82 billion, 23.6 per cent lower than $253.80 billion in the year ago period. — PTI
	Maruti, Hyundai sales in top gear Tribune News Service & PTI New Delhi, February 1 Automobile sales in the country continued to zoom past their previous sales figures in January also reflecting the upsurge in the country’s economy. Maruti Maruti Suzuki India Ltd (MSIL) reported its highest monthly sales of 95,649 units for January, a jump of 33.3 per cent over the same month last year. The carmaker had sold 71,779 units in January 2009. This is the highest ever domestic as well as total sales for the company, MSIL said. Domestic sales witnessed a jump of 21 per cent at 81,087 units compared to 67,005 units in the same month year back. Sales of the A2 segment, comprising models Alto, Wagon R, Zen, Swift, A-Star and Ritz, were up 24.8 per cent. The A3 segment (Swift Dzire and SX4 sedans) sales grew by 36.5 per cent to 8,995 units. The company’s oldest model M800 sales declined from 55.2 per cent to 2,494. Hyundai In comparison, HMIL reported 41.60 per cent growth in sales at 52,635 units. The company had sold 37,171 units in January 2009. Domestic sales during the month rose by 40.85 per cent to 29,601 units compared to 21,016 units in the same month last year. In its A2 segment (Santro, i10, i20 and Getz Prime), the company sold 47,104 units, while in the A3 segment (Accent and Verna) sales were at 5,502 units. The A5 segment (Sonata Transform) of HMIL witnessed sales of 29 units, while its SUV Tucson had no takers during the month. General Motors General Motors India more than doubled its sales to 9,421 units in January, making it the highest-ever monthly sales in the over 13 years of its operations in the country. The company had sold 3,937 units in the same month last year, General Motors India said in a statement here today. The company sold 3,477 units of the hatchback Spark, 686 units of the newly-launched sedan Cruze, and 2,825 units of the latest compact car Beat in the reporting month, said a company statement. M&M Mahindra & Mahindra (M&M) also reported its highest ever-domestic monthly sales with 67.4 per cent increase at 28,988 units against 17,320 units in the same month last year. The company's total utility vehicle sales, comprising the Scorpio, Xylo and Bolero, in January stood at 20,332 units against 13,397 units in the same month last year, up 51.8 per cent. Tata Motors Tata Motors today reported 77.30 per cent jump in its total sales during January at 65,478 units. The company had sold 36,931 units during the same month last year, Tata Motors said in statement. The 'Indica' range reported sales of 11,448 units, the highest this fiscal, though flat over January last year. The 'Indigo' family, with a sales of 7,258 witnessed a growth of 83 per cent over the same month last year. Its small car Nano sold 4,001 units during January. Hero Honda Hero Honda has reported 23.57 per cent jump in its sales at 3,89,802 units. The figure registered during January is the highest-ever sales in the month, the company said. Besides, for the 13th consecutive time, the company has recorded more than three lakh dispatches in a single month.
	‘India can surpass China in growth’ Davos, February 1 Planning Commission Deputy Chairman Montek Singh Ahluwalia today expressed confidence that in the years to come India could emerge the fastest growing economy in the world, beating China as the nation had yet to achieve its full growth potential. "We have accelerated ... not reached the full peak of our growth potential which could easily be 9 to 10 per cent. So, if India accelerates to say 10 per cent and China begins to decelerates, you could have a situation where India grows faster than China," he said at the conclusion of the five-day World Economic Forum meeting here. India has been growing by over 9 per cent till the global economic crisis hit the economy and pulled down the country's growth rate to 6.7 per cent during 2008-09. During the current fiscal, the economy is expected to expand by over 7.75 per cent, as indicated by Finance Minister Pranab Mukherjee in his Mid-Year Review of the Economy, which was tabled in Parliament in December. China clocked a growth of 10.7 per cent during the quarter ending December retaining its position as the fastest growing economy during 2009. India grew by 7.9 per cent during July-September 2009 quarter. Ahluwalia, who participated in several sessions during the 40th annual meeting of the WEF at Swiss Alpine resort, also emphasised that the impression about India had changed among the global investor community. Ahluwalia said, “ It is important to do things necessary to reach our full potential. We will be converting market of 1.1 billion, most of who are low income, to a market to 1.3 or 1.4 billion, most of whom would be middle class. That transformation is phenomenal”. Even if India fails to take over China, in terms of growth, it would continue to be the second most important market in the world, he said. — PTI
	ArcelorMittal ups stake in Uttam Galva New Delhi, February 1 ArcelorMittal has acquired 29 per cent stake in Uttam Galva for Rs 422 crore through open offer, taking its holding in the domestic firm to 34.42 per cent. ArcelorMittal, in October 2009, bought 5.6 per cent stake in Uttam Galva and two months later launched the open offer to buy additional 29 per cent stake in the Indian firm at Rs 120 a share. Billionaire L N Mittal-led steel maker has acquired 3.52 crore shares from the open market at a price of Rs 120 a piece, aggregating to Rs 422 crore, Uttam Galva said in a public announcement today. Pursuant to the closing of the offer, ArcelorMittals' shareholding in Uttam Galva has gone up to 34.42 per cent. The open offer by SBI Capital Markets, on behalf of ArcelorMittal Netherlands BV, began on December 19, 2009, closed on January 7, 2010. Last week Uttam Galva reported over three-fold jump in the net profit at Rs 17.25 crore for the quarter ended December, 2009. The total operating income of steel producer fell to Rs 1,091.68 crore during the three-month period ending December from Rs 1,102.50 crore of the same quarter last fiscal. — PTI
	WB pegs 8 pc growth for India in 2010 Aditi Tandon Tribune News Service New Delhi, February 1 India is expected to grow at 7.5 and 8 per cent in the calendar year 2010-11 respectively, above the 6.4 per cent average posted from 1995 to 2005. This comes at a time when the recovery in the world economy remains fragile and is further expected to slow down later this year as the impact of fiscal stimulus wanes, the World Bank today said. Global Economic Prospects 2010 - a WB analysis of the extent and impact of the recent financial crisis - says India’s growth would benefit from a firming in external demand, particularly by the resumption of growth in high-income countries, which represent about two-thirds of India’s export markets. Although FDI inflows to India declined considerably in 2009, estimated $35 billion compared to $41 billion the previous year, the country remains one of the top three developing country destinations for foreign investors. Along with rest of the developing world, where economies displayed incredible resilience, the Indian economy along with the Chinese, is contributing heavily to the recovery of global markets, the report observes. Releasing the report in the capital today, its author Hans Timmer, also Director of the World Bank Prospects Group, added that he would not be surprised if the Indian economy grew faster than what the WB had projected. “But for that to happen, India must consider permanent financial reforms and realise that the impact of the financial stimulus would only be limited. It must invest in infrastructure and power supplies,” Timmer said. On the whole, the report concludes that though the acute phase of the crisis is over, recoveries are too weak to undo the damage done in 2009. It adds that the developing countries might overcome the medium term impacts by strengthening their domestic financial markets, which remain inefficient despite impressive gains on trade and production fronts. About India in particular, the report says FDI flows would increase in 2010, as overall investment to developing countries recovers this year, and as India continues to improve its FDI policies by simplifying investment procedures and relaxing investment limits in some sectors. Looking ahead, a key challenge for the country, will be to reduce its large fiscal deficit, he added, advising change in financial policies to ensure that private sector is encouraged to drive production goals and thereby, take charge when the impact of stimulus passes over.
	Decision on freeing fuel prices this week New Delhi, February 1 The government may decide on freeing petrol and diesel prices after an expert committee on fuel pricing submits its report this week, Petroleum Minister Murli Deora said today. Finance Minister Pranab Mukherjee is believed to be in favour of giving state-run oil firms freedom to fix price of petrol and diesel in step with cost, as he feels the current moderate global oil rates may be the last window India has to deregulate fuel pricing. "We are trying our best to see that prices are not raised," Deora told reporters here. But a rate hike may become inevitable as the government's limited financial resources are not enough to meet the revenue lost on selling petrol, diesel, LPG and kerosene below cost. "The Cabinet had in July, 2009, decided that the government would meet all of the under-recovery (revenue loss) on domestic LPG and kerosene either through bonds or in cash and the same on petrol and diesel was to be met by upstream companies like ONGC," he said. While Oil and Natural Gas Corp, Oil India and GAIL borne the entire Rs 8,364 crore under-recovery on petrol and diesel in first three quarters of current fiscal, the government has agreed to give only Rs 12,000 crore in cash against the Rs 20,989 crore revenue loss on cooking fuel in April-December. "We will be meeting Finance Minister tomorrow to see how this under-recovery is to be met," Deora said, adding that a decision on fuel pricing was likely only after the Kirit Parikh committee submits its report this week. — PTI
	Spice Tele to merge with Spice Mobiles Mumbai, February 1 B K Modi-led Spice Mobiles will merge Spice Televentures (STPL) with itself as part of efforts to consolidate the group's telecom businesses. The board of directors of Spice Mobiles has approved the merger of STPL, the holding company for the group's telecom businesses, with the company from January 1, 2010, Spice Mobiles said. The chartered accountants BSR & Co has valued the listed Spice Mobiles at Rs 109 per equity share and the unlisted STPL at Rs 862 a piece, it added. In the opening trade on BSE, shares of Spice Mobiles surged 4.98 per cent, the maximum permissible gain in a single day, to Rs 35.85. The board has approved a swap ratio of 7.91 shares of Spice Mobiles for every share held in STPL. Pursuant to shareholder approval, the company will issue 16.34 crore equities to the shareholders of STPL, it added. The equity capital of Spice Mobiles post-completion of this merger will be 19.09 crore equity shares of Rs 3 each. For the third quarter ended December 31, 2009, Spice Mobiles reported a net profit of Rs 22.4 crore. It had a loss of Rs 3.4 crore in the year-ago period. The revenue during the quarter stood at Rs 299.8 crore, up from Rs 121 crore in the previous fiscal. — PTI
	Final status on new emission norms by mid-Feb New Delhi, February 1 A clear picture on the modalities of implementing a new vehicle emission norms in the country is expected by the middle of this month when the government is likely to come out with a final plan. "As of now, we don't have a final word (from the government) yet we will get it by February 15," Society of Indian Automobile Manufacturers (SIAM) president Pawan Goenka told PTI. He said meetings were held, including with the Petroleum & Natural Gas and Transport Ministries to chart out plans for the implementation of the new norms scheduled to be effective April 1, and sort out the problems related to upgraded fuel supply across the country. — PTI
	Samsung develops 30-nano DRAM chip Seoul, February 1 Samsung Electronics Company today said it had developed the world's first 30-nanometre dynamic random access memory (DRAM) chip. "Our 30nm-class process technology will provide the most advanced low-power DDR3 available today and therein the most efficient DRAM solutions anywhere for the introduction of consumer electronics devices and server systems," said Cho Soo-in, president of the memory division at Samsung Electronics. The company expects the new product will lower power consumption to 85 per cent of existing 40-nanometre DRAM chips. A nanometre is one-billionth of a metre. — Yonhap