New Delhi, January 7
Restrictions on gold imports are likely to continue until at least March-end, notwithstanding an improvement in the current account deficit situation.

"Our point is that we need to keep the CAD (current account deficit) low. We cannot afford to let it go and therefore, at least for this fiscal, we should not tamper with what the regime is.

"...and whatever is to be considered should be considered in the next year after fully understanding how the CAD will look for the next year," Economic Affairs Secretary Arvind Mayaram said.

He said his ministry gets various kinds of advice and one view is to open up gold imports as demand has been compressed significantly.

Recently, Finance Minister P Chidambaram too said some curbs on gold imports should remain in force. However, RBI Governor Raghuram Rajan favours doing away with the restrictions, which encourage smuggling.

Gold imports fell to 19.3 tonnes in November from a high of 162 tonnes in May in the wake of a series of curbs by both the government and the RBI.

The government had increased customs duty on gold to 10%while the RBI linked imports of the metal to exports amid a widening CAD and depreciation of the rupee.

Asked if the restrictions had led to smuggling, Mayaram said there was no "conclusive evidence" to support the argument.

"What is the total compression in gold we are looking at? About 100-150 tonnes. What are the total seizures you get? It is minuscule.

"So, if you look at the trade off, we need to increase vigilance and surveillance to be able to check any rise in smuggling. But at the same time, we cannot afford to allow CAD numbers to become weak because it has a bearing on how the rupee behaves," the Secretary added.

As per the RBI, the CAD in this financial year is likely to be in the range of $56 billion as against the lifetime high of $88.2 billion in the previous year. — PTI

Chandigarh, January 7
IT major Microsoft is scouting for fresh ideas and innovations in India and looking at increasing the reach of Microsoft Innovation Centres across the country. It is also looking at expanding the reach of its mentoring vertical across the nation.

Having established these two platforms in the southern states, the company is now targeting the innovators and startup companies in northern states. For this, the company set up the first Microsoft Innovation Centre (MIC) in North India at Chandigarh University in Gharuan, near here, today.

Joseph Landes, general manager, DPE-Microsoft, India, said the company has so far set up 25 MICs in educational institutes, mainly in the southern states. “This is simply because universities there were keen on setting up these centres, which serve as a platform to bring together academicians, government agencies and software economy, thus helping drive the ideas that come out from students. Since Chandigarh University was willing to bear the costs involved in setting up the innovation centre, we have established it here,” he said.

MIC is a worldwide concept, and was started in India last year. The infrastructure at these centres is put up by the university authorities, which also provides faculty to run the programme. Microsoft provides software that helps student developers create better products along with a platform to showcase the idea. Microsoft also ropes in all stakeholders in the area and provides a brand name and platform. The focus of the programme is on science, technology, engineering and management.

Landes said the company was working with startups through another platform called Microsoft Ventures. “We work with startups at every stage of maturity to provide tools, resources and expertise they need to succeed. The initiative is broad-based and includes a community programme, accelerators and a seed fund. Our approach helps startups scale their business, bring innovative services to market and reach new customers. The fourth batch of the programme is on and we are looking at startups from all parts of the country to participate in this,” he said. 

We work with startups at every stage of maturity to provide tools, resources and expertise they need to succeed and reach new customers
—Joseph Landes, gm, microsoft india

Washington, January 7
Janet Yellen was today confirmed as the chairwoman of the US Federal Reserve by the Senate, making her the first woman to lead the the world's most powerful central bank in its 100-year history.

Yellen, 67, currently the Fed's vice chair, has been an influential proponent of the Fed's extraordinary measures to revive the battered American economy, even though interest rates are already close to zero.

When Yellen succeeds Ben Bernanke, whose second four-year term as Fed chairman ends on January 31, she will become the first woman to run the Fed in its 100-year history.

Senators voted 56 to 26 in her favour, with many missing the vote because of inclement weather. Eleven Republicans broke party ranks, voting to support Yellen, described by President Barack Obama as one of America's most respected economists.

"With the bipartisan confirmation of Janet Yellen as the next Chair of the Federal Reserve, the American people will have a fierce champion who understands that the ultimate goal of economic and financial policymaking is to improve the lives, jobs and standard of living of American workers and their families," Obama said, soon after Yellen's confirmation.

"As one of our nation's most respected economists and a leading voice at the Fed for more than a decade and Vice Chair for the past three years, Janet helped pull our economy out of recession and put us on the path of steady growth," he said. — PTI

New Delhi, January 7
With the issue of job creation being debated hotly, a study by Crisil Research estimates that non-farm employment will decrease more than 25% to 38 million in financial year 2013-19 compared with 52 million seen in financial year 2005-12.

This is because fewer jobs are being created with the economy treading a lower-growth path and labour intensity is declining across industry and services. As a consequence, an additional 12 million people will be redirected to the farms in FY 2013-19. During FY 2005-12, there was a decline of 37 million in agriculture employment, the study says.

Mukesh Agarwal, president, Crisil Research, says “The old trend of migration from agriculture will reverse with fewer non-farm job opportunities coming in the way of achieving this.”

The ability of relatively labour-intensive sectors such as manufacturing to absorb labour has diminished considerably in the face of rising automation and complicated labour laws.

In this context it may be pointed out that technology while driving efficiency and transparency is also leading to less labour requirement especially in the services sector. Intermediation of any kind in services is gradually being driven by direct technological interface in sectors like financial services and travel, among others.

The study says appropriate policies will have to complement high growth for facilitating the required job creation in the manufacturing and services. 

New Delhi, January 7
Japanese automobile maker Honda today brought in all-new version of its City sedan, including the first diesel variant of the car, in an effort to strengthen its position in the country and recapture its market share which it lost to its rivals in the wake of increase in the sale of diesel engine cars.

Having discontinued the third-generation model of the car in November, Honda has priced the new City between Rs 7.42 lakh and Rs 11.1 lakh (ex-showroom Delhi).

The fourth generation of the sedan was unveiled globally on November 25.

Diesel variants of the new City will retail from Rs 8.62 lakh to Rs 11.1 lakh, while petrol versions are priced between Rs 7.42 lakh and Rs 10.98 lakh (Delhi).

"With the best of both petrol and diesel technologies available in Honda City, we are confident about the success of the model, which will significantly contribute to our business growth in India," Honda Cars India Ltd (HCIL) President and CEO Hironori Kanayama said.

The petrol variant comes with the existing 1.5 litre iVTEC engine, while the diesel version sports the recently launched 1.5 iDTEC diesel motor.