New Delhi, October 25
Indian industry is hoping that US President Obama’s visit to the country early next month will facilitate key business policy decisions, including easing of export control regulations. CII and Ficci came out with statements today on Obama’s visit. Obama will address a meeting of representatives of Indian and American industry on November 6.

CII hopes that the visit will facilitate key business policy decisions and strengthen corporate linkages between Indian and the US companies. India-US bilateral trade and investment, though still relatively small, has been growing.

“The US has always been one of the leading investors in India. In recent years, Indian FDI in the US has been growing at a much higher rate than the US FDI in India. Indian companies are investing immensely in the US, creating jobs, running training programs, engaging in M&A activity, undertaking R&D projects, and increasing contribution across multiple sectors,” said Chandrajit Banerjee, director general, CII.

CII is hopeful that this interaction will result in concrete decisions and actions, including joint collaborative work in agriculture, energy, education and infrastructure. Enhanced cooperation in high-technology fields is also expected though bilateral agreements in aviation, space, defence and biotechnology.

CII is also optimistic that there will be movement in easing export control regulations, early conclusion of the proposed Totalisation Agreement, as well speedy negotiation of the Bilateral Investment Treaty.

Ficci said that the 4-day visit and that it is disconnected with his future visit to Pakistan are two strong signals that define the nature of Indo-US relationship.

“Ficci looks forward to a significant relaxation in the export control regime of the US for dual usage technologies, with particular reference to the 16 segments of controls. It notes that India was being denied 10 of the 16 nomenclatures, including chemicals and biological materials (for fear of weaponisation ), technologies which fall under ‘non-proliferation’, under ‘national security’, under ‘missile technologies’, and under ‘crime control”, said Amit Mitra, secretary general, Ficci.

Mitra added that ‘during this visit four Indian companies, under the ‘entities list’ now would be freed’.

Bangalore: Infosys mentor N R Narayana Murthy today said there was no need for Indian IT industry to be apolgetic or shy about US outsourcing curbs during President Barack Obama's visit to the country next month.

Instead, Murthy said, Obama would an honoured guest and be treated in the typical Indian tradition and philosophy of "athithi devo bhavo" (a guest is like God), without any expectations from him.

"Indian IT corporations have made work in the US much more efficient by enhancing their productivity and quality of work. We have helped to add sufficient value to the corporations in the US. Therefore, there is no need to be apologetic, when Obama visits India. There is no need for us to be shy either".

On persistent questions from reporters on whether the IT industry would raise the outsourcing issue during Obama's visit, Murthy said, "There is no doubt at all that we are adding significant value to the corporate sector all over the world, including the US." The US has recently increased the fee for H1-B and L1 visas and Obama had stepped up campaign against outsourcing causing major concerns in the Indian IT industry, whose earnings are heavily dependent on the American market.

Murthy said, "Obama is a guest and in India when a guest comes we treat them with respect, we are happy that they have come and you don't expect anything from them.

On whether there was any disappointment over the US President skipping Bangalore on his itenary, he said, "I understand he is a world figure. He only has so much time.. we understand that.” — PTI

New Delhi, October 25
India's trade deficit sharply narrowed in September to a six-month low, figures released by the trade secretary on Monday showed, but experts cautioned against reading too much into the data.

Asia's third-largest economy's trade deficit in September stood at $9.12 billion, Rahul Khullar told reporters, compared with August's $13.06 billion, which was a 23-month high. It was the narrowest deficit since March's $7.83 billion figure.

"This is an aberration. If you see in the medium term, there is a pressure on the rupee to appreciate," said N.R. Bhanumurthy, an economist with New Delhi-based think-tank National Institute of Public Finance and Policy.

"The trend will be around $14 billion to $15 billion deficit (each month)," Bhanumurthy said.

A rise in the local unit tends to shrink exports as they become less competitive and increase imports as the country's purchasing power rises, widening the trade deficit.

The rupee has appreciated close to 5 per cent since the beginning of the year, part of a broad rise in emerging economy currencies as investors seek better returns in these markets.

"We don't see that we have reached a stage where the rupee can be termed as volatile," Trade Minister Anand Sharma told reporters at a separate event.

Last month, Khullar had said India's trade deficit could touch $135 billion for the year to end-March 2011, higher than his earlier forecast for $120 billion.

Exports in September rose an annual 23.2 percent to $18.02 billion, while imports for the month grew 26.1 per cent on the year to $27.14 billion, Khullar said.

Sharma said the country is on track to meet its 2010-11 export growth target of close to 15 per cent.

Exports had dropped 4.7 per cent in the previous fiscal year as the global financial crisis-led slowdown crimped demand. — Reuters

New Delhi, October 25
Profits of major telecom operators in the country are expected to dip for the quarter ended September 30, on account of the expenditure incurred on 3G spectrum and on purchase of equipment.

Increased competition from start-up firms looking to poach subscribers would also have put pressure on margins.

Bharti Airtel, Reliance Communications and Vodafone have spent upwards of Rs 10,000 crore on 3G spectrum.

Bharti spent Rs 12,295 crore to get the 3G licence in 13 circles, RCom spent over Rs 11,000 crore.

The third-largest operator, Vodafone also paid over Rs 11,000 crore to acquire a licence in 10 circles. It also spent about $450 million to procure necessary 3G equipment.

Estimates suggest Bharti Airtel, with 143 million users, is expected to post 19 per cent drop in profit for the second quarter. In the first quarter it also acquired African operations of the Kuwaiti telecom operator Zain.

Airtel has been on a spending spree in almost all the 15 African nations where it acquired the assets, in a bid to turn around the loss making operations.

RCom is expected to report 45 per cent drop in profit, but a nearly two-thirds jump from its June quarter earnings, when it reported its worst ever profit fall.

RCom is also looking for a strategic buyer for an up to 26 per cent stake to cut its bruising debt load. Its agreement to hive off its towers business into a venture with India 's GTL Infra, that would have cut more than half of its debt, fell apart last month.

Experts suggest the situation may not improve even in the next year. With low internet penetration in the country and high costs of 3G services, the operators would find to difficult to improve profitability.

Mumbai, October 25
The Securities and Exchange Board of India (Sebi) has increased the limit for retail investors in Initial Public Offerings and Follow-Up Public Offers to Rs 2 lakh from Rs 1 lakh now, Sebi Chairman Chandrashekhar Bhave told reporters today.

Retail investors can apply for shares worth up to Rs 2 lakh in several forthcoming stock offerings without having to take circuitous routes like applying in the names of relatives and benami holders, analysts said.

Currently, anyone who buys shares worth more than Rs 1 lakh is immediately classified as a High Net Worth Individual and his application is not processed under the quota for retail investors. Bhave added that the quota reserved for retail investors will be left unchanged for the moment.

Sebi which was in the process of formulating a new take-over code for Indian companies, has postponed the decision. Bhave told reporters that the watchdog body needed more time to decide on the new takeover code.

The body has also tightened disclosure norms for life insurance companies, Bhave said. Details would be put in the public domain in the coming days.

Sebi is also in the process of formulating rules for foreign companies listing in the Indian markets by way of Indian Depository Reciept (IDR). "Currently we have framework for rights issue made by Indian companies but not for foreign companies. We need to make framework for rights issue by Indian Depositary Receipt (IDR) listed companies as well," Bhave said.

Hyderabad, October 25
Reminiscent of sub-prime mortgage crisis that shook American economy, rural Andhra Pradesh is passing through severe distress due to dubious practices of micro finance institutions like imposing exorbitant interest rates and coercive loan-recovery methods.

As many as 35 debt-ridden people committed suicide in three months.

AP has emerged as a hub of microfinance activity, accounting for one-third of the total lending in the country with over 65 lakh borrowers. Of the 44 leading MFIs in the country, 23, including the largest firm SKS Microfinance, Spandana, Basix and Share Microfin are operating in the state. They have a cumulative annual turnover of more than Rs 10,000 crore.

To rein in the MFIs, the state government recently issued an ordinance aimed at curbing unlawful activities and enforcing discipline in lending. The ordinance says that the total interest payments should not exceed the principal loan amount. It also envisages stringent punishment including imprisonment up to 3 years for using coercing methods. The registration of MFIs has been made compulsory and annual renewal will depend on their track record.

The Microfinance Institutions Network (MFIN), an industry body of the MFIs, has denied charges of any irregularities or coercive practices. It also challenged the AP ordinance, saying it would severely disrupt business.

Chandigarh, October 25
After selling 50 kg of gold coins in Delhi in a day, Punjab & Sind Bank today launched the sale of gold coins of 99.99% purity in Chandigarh. This product has been named as ‘PSB Swaran Mudra’. To start with, coins of 5 gm, 8 gm and 10 gm will be sold by the bank through its designated branches. The bank hopes to sell 100 kg of gold in the tri-city.

PK Anand, ED, Punjab and Sind Bank, said, “With gold becoming an important asset class in people’s investment portfolio, our Bank has unveiled PSB Swaran Mudra on the eve of the festival season. We expect an overwhelming response from customers due to our predominant market position in Delhi, Punjab and Haryana, our impeccable product and service standards as well as our competitive rates. Our Bank is very upbeat on this gold coin launch and we are positive of attracting more customers.”

The new product rates offered shall be highly competitive vis-à-vis other banks. The bank is also offering quantity discount on a single purchase of 10 coins or more during this festival season.

The bank has also launched a Double Festival Bonanza Scheme for depositors as well as the borrowers under the scheme. The Bank has offered Housing Loan @ 8.50% per annnum and Auto Loans at 9.75 per annum its potential customers. It has also hiked Interest rate on Deposits across the Board. Senior Citizens have been offered higher interest rate of 0.65% against 0.50% offered earlier over its normal Card Rates. 

New Delhi, 25 October
Hindustan Unilever Ltd (HUL) today announced its September 2010 quarter results, with net profit up 32 per cent to Rs 566 crore. It posted a volume growth of 14 per cent and net sales grew 10.7 per cent.It said growth was broad-based across home and personal care category and food.

Exceptional gains of Rs 40 crore in the current period, compared to exceptional costs of Rs 135 crores in the previous year, led to 32.1% growth in net profit.The Board of Directors have declared an interim dividend of Rs 3 per share for the accounting year ending March 31, 2011.