New Delhi, June 12
Indicating healthy signs for the economy, which seems to have bottomed out, factory output grew to 13-month high of 3.4% in April after contracting for two months in a row . The previous high of 3.5% was recorded in March, 2013.

The other lead indicator, retail inflation, hit a three-month low of 8.28% in May.

Signalling the return of industrial recovery, Index of Industrial Production saw improved performance of manufacturing, mining and power sectors and higher output of capital goods.

Industry said the return of industrial growth to the positive terrain is noteworthy and has rekindled the hope of industrial recovery which is critical to lift the economy and mark a return to the path of growth.

CII said in a statement that what is encouraging is that all three major segments of industry, namely mining, manufacturing and electricity, have posted positive growth. The double-digit growth of capital goods could mark a beginning of an upturn in investments backed by an improvement in business sentiments and fast clearances of stalled projects.

Indranil Pan, chief economist, Kotak Mahindra Bank, said, "The growth trends look relatively better and confirm our belief that the economy has bottomed out. However, the sharp jump could have been due to robust growth in the capital goods segment. The rest of the year should see growth picking up moderately as we expect the government to provide the right dose of policy to boost investments".

There was good news on the inflation front too as subdued prices of vegetables, cereals and dairy products pushed down retail inflation to a three-month low of 8.28% in May.

The retail inflation was 8.59% in April. As per the data released by government today, food inflation also fell slightly to 9.56% in May against 9.66% in April.

During the month, vegetable prices were down by 15.27% as against 17.5% in April. Prices of cereals and its products came cheaper with rate of price rise at 8.81% as against 9.67% a month ago.

However, analysts have cautioned on the effect of a poor monsoon. Aditi Nayar, senior economist, ICRA, said: "Notwithstanding the recent easing in food inflation, stable core inflation and a favourable base effect in the coming months, a cautious monetary policy stance is warranted as monsoon-related concerns have started to crystalise with a delayed onset and low precipitation so far."

Nayar said in the immediate term, a judicious mix of policy measures such as appropriate setting of MSPs, encouraging relatively less water-intensive varieties of crops and ensuring adequate availability of power/diesel at subsidised costs to ensure irrigation through groundwater could help mitigate the impact of a sub-par monsoon.

New Delhi, June 12
Industry has asked Commerce and Industry Minister Nirmala Sitharaman to take steps to improve the competitiveness of Indian industry and review Free Trade Agreements (FTA).

Sitharaman today met delegations from industry chambers, Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (FICCI) in separate meetings.

The FICCI delegation made the point that government's support in enhancing competitiveness, scale and gaining global market access can inspire enterprises to invest, expand and create jobs. "We need an integrated vision to achieve competitiveness", said Sidharth Birla, president, FICCI.

Emphasising the need to improve ease of doing business, Birla said to create an encouraging environment for investors, the procedural reforms must be accelerated. FICCI outlined key areas for improvement in public governance and procedures across major states.

"We firmly believe that states should be given freedom and flexibility in matters related to land, labour and environment and critical factors for industrial competitiveness", Birla added.

FICCI said there is an urgent need to review existing FTAs and its impact on manufacturing. India's domestic industry must be made competitive simultaneously by implementing reform agenda.

Alluding to some of the points made during the meeting, CII president Ajay Shriram said there is a need to balance the need for fiscal prudence and stimulating growth in the forthcoming Budget.

CII members also urged the government to review FTAs and analyse benefits to India vis-a-vis other countries as there seems to be a sense that India has not benefitted as much as those who wished to enter India.

Members also urged the government to relook at the land acquisition process which is lengthy, difficult and impeding large investments.

It was pointed out that there are 67 sick PSUs, whose winding up or rehabilitation proposals are with the BRPSE, and their assets need to be unlocked to strengthen the country's fiscal situation.

The CII delegation opined that if manufacturing has to reach the stated target of 25% of GDP by 2022, several measures must be taken now to kickstart it through demand creation, attract investments and making exports competitive.

Bangalore, June 12
Breaking into Indian domestic aviation space, AirAsia India today launched its operations with a flight from here to Goa in a foray that is expected to intensify the fare war among the no-frills airlines in the loss-hit sector.

"Our long-term goal is to offer air travel at affordable rates and provide an opportunity to every Indian to fly. Our competition is with the Indian Railways and not with other airlines in the country," AirAsia India CEO Mittu Chandilya said.

He said, "Our fares will be 35% lower than the market rates. At this rate, we believe we can sustain... We intend to bring down the tariff further as we are sure that we could make revenues with stable operations." Malaysia-based AirAsia currently operates international routes into Bangalore, Chennai, Kochi, Kolkata and Trichy. — PTI

New Delhi, June 12
Essel Group, Reliance Jio, Fortis and 17 others today signed initial pacts to invest over Rs 39,000 crore in Uttar Pradesh, with Chief Minister Akhilesh Yadav promising the investors all possible support.

At an Investors’ Conclave here, Subhash Chandra-led Essel Group signed an MoU to invest Rs 20,000 crore in areas such as urban development and distribution of power; Mukesh Ambani’s Reliance Jio pledged Rs 5,000 crore outlay for implementation of 4G network.

FMCG major ITC plans to invest Rs 2,100 crore in various sectors; Fortis Healthcare promised Rs 800 crore outlay for setting up three 250-bed hospitals each at Kanpur, Lucknow and Noida.

Amity Group pledged Rs 2,000 crore investment for setting up an educational complex in Kanpur. Uflex promised Rs 4,000 crore for setting up a 300 MW solar park in Bundelkhand region.

Investment of Rs 2,200 crore was committed by JVL Agro Industries in agro and food processing sectors. River Engineering plans to set up an air taxi base for Rs 350 crore. Sonalika plans Rs 200 crore investment for setting up a base. — PTI

BRIEFLY

SpiceJet to add new flights on four sectors
New Delhi: SpiceJet on Thursday announced new flights on four high-density sectors, including Delhi-Lucknow and Bangalore-Hyderabad, from Sunday following growing demand. The new flights would add capacity on the Bangalore-Mangalore, Chennai-Madurai, Bangalore-Hyderabad and Delhi-Lucknow sectors. — PTI

Idea to raise Rs 750 crore through preferential issue
New Delhi: Idea Cellular has said it will raise Rs 750 crore by issuing equity shares on preferential basis to its shareholder, Malaysia-based Axiata. It said the securities allotment committee of the Board has approved issuance of 5.18 crore shares at a price of Rs 144.68 per equity share to Axiata Investments 2 (India) Ltd. — PTI

Revenue from telecom services up at Rs 57,378 cr
New Delhi: The gross revenue of telecom service companies increased 5.7% to Rs 57,378 crore in the Q4 of 2013-14 from a year earlier, according to data from the telecom regulator TRAI. The gross revenue of telecom service providers was Rs 54,283.78 crore in the same period a year ago. — PTI

Mozilla to bring smartphones at Rs 1,500 in India
New Delhi: Mozilla has tied up with handset makers Intex and Spice to bring smartphones priced at Rs 1,500 to India in the next few months, a move that may redefine the "ultra-affordable" mobile phone market in the country. The Firefox operating system devices will compete with phones using Google's Android and Microsoft's Windows platforms. — PTI

Pumpkart.com launches online store for pumps
Chandigarh: Pumpkart.com, an e-commerce portal, has pioneered a new concept in the form of an online megastore for selling domestic and agricultural pumps. It provides an easy one-step checkout process, multiple payment options, including online payment, cash on delivery and EMI options. KS Bhatia, founder and CEO, Pumpkart.com, said they have tied up with Bosch, Oswal, Crompton Greaves, V-Guard, Shakti, Polar and Khaitan for this venture. — TNS