India Pledges to Cut Emissions
The Wall Street Journal, 31 January 2010
India committed Sunday to reduce the intensity of its carbon emissions by 20% to 25% by 2020 from 2005 levels, meeting a deadline for developing countries to set voluntary carbon-curbing actions. More…
RBI signals inflation worries
Business Standard, 30 January 2010
The Reserve Bank of India today launched an assault on inflation by increasing the cash reserve ratio (CRR) 75 basis points to 5.75 per cent. While sounding upbeat on economic growth, the central bank has kept the door open for an increase in interest rates even before the annual policy statement in April. More…
Global investors bullish on India: Anand Sharma
The Hindu, 29 January 2010
Global investors are bullish on India, as recovery in the developed economies remain weak, Commerce and Industry Minister Anand Sharma said here. More…
Not just food, RBI wary of asset price spiral as well
The Economic Times, 30 January 2010
In addition to its concern about food inflation cascading into a wider increase in prices, the Reserve Bank of India is worried about burgeoning asset prices. The concerns have arisen as both capital markets and real estate prices are looking up. More…
RBI hikes CRR by 75 bps to 5.75%
The Economic Times, 29 January 2010
The RBI has increased cash reserve ratio by 75 bps to 5.75%, whereas key interest rates were unchanged in its third quarter review of the Monetary Policy. CRR hike would suck out Rs36,000 crore liquidity from the system. More…
RBI survey ups ’10-11 growth forecast
Business Standard, 29 January 2010
On the eve of the monetary policy review, the Reserve Bank of India sounded upbeat on growth but worried over inflation. In the Macroeconomic & Monetary Developments report released this evening, the central bank drew comfort from the forecasters’ survey — which estimated that the Indian economy would grow by 6.9 per cent this year — and improved business sentiments. More…
Food inflation rises to 17.4%
Business Line, 28 January 2010
Food inflation reared up again, with the annual wholesale price index-based inflation in primary food products inching up to 17.40 per cent for the week ended January 16 against the previous week’s annual rise of 16.81 per cent. More…
India scores big with NREGA
The Economic Times, 27 January 2010M
The United Progressive Alliance’s flagship scheme, National Rural Employment Guarantee Act (NREGA), could have saved the day for India when the world fought against rising job losses on account of century’s worst ever recession , says a report by the International Labour Organisation. More…
Fiscal bonus: Incentive for states going green
The Economic Times, 27 January 2010
The state governments that work towards protecting the country’s forest cover are expected to get a special bonus from the coming fiscal. In keeping with its mandate of promoting ecological conservation, the Thirteenth Finance Commission (TFC) has recommended a special fiscal incentive to states for promoting afforestation. More…
Govt weighs token increase in tax exemption limit
The Economic Times, 21 January 2010
The government is exploring an increase in the income-tax exemption limit for individuals to compensate for the high recent inflation, but revenue considerations and the fact that the limit was hiked sharply in 2008-09 could force it to maintain status quo or give just a token hike. More…
Govt to relax FDI norms
Business Standard, 21 January 2010
The government of India proposes to ease the norms for foreign direct investment (FDI) approval. At present, projects worth more than Rs 600 crore require the final approval of the Cabinet Committee on Economic Affairs (CCEA). More…
RBI may exit easy money policy: Barclays
Press Trust of India, 20 January 2010
The Reserve Bank of India is likely to announce a “gradual” exit from its easy money stance and may resort to raising key rates to squeeze out excess liquidity from markets in its forthcoming review meeting, investment banking firm Barclays Capital says. More…
GDP growth to accelerate in 2010: Anand Sharma
The Economic Times, 19 January 2010
India’s gross domestic product growth is expected to accelerate in 2010 from 2009, India’s Minister of Commerce and Industry, Anand Sharma, said on Tuesday. More…
Rural job generation to get PPP push
Business Standard, 19 January 2010
After the infrastructure sector, the public-private partnership (PPP) model will be extended to rural job generation as well. The initial success of the flagship National Rural Livelihood Mission (NRLM) has prompted the rural development ministry to seek a four-fold increase in Budget allocation for the project. More…
Pranab sees signs of turnaround
Business Line, 18 January 2010
The Finance Minister, Mr Pranab Mukherjee, said on Monday that the current macro-economic situation confirms signs of a turnaround in the economy. More…
Banks say no to uniform home loan rate cut
The Economic Times, 18 January 2010
Driven by angry mortgage borrowers, RBI has once again nudged top banks to charge lower home loan rates to old customers instead of just using the lower interest rates to pull new borrowers. But lenders continued to resist the proposal, citing cost mismatch. More…
Gross budgetary support may rise
The Times of India, 18 January 2010
Caught in a dilemma of adhering to fiscal prudence and ensuring funds for promised pro-aam aadmi schemes, UPA government is expected to go for a moderate hike in total gross budgetary support (GBS) by at least 15% for fiscal 2010-11, over current budgetary estimates. More…
Curbs likely on select FDI instruments
The Economic Times, 18 January 2010
The government is planning to tighten norms governing FDI through partly-paid shares, convertible warrants and units issued by venture capital funds (VCFs), as it looks to prevent misuse of these popular instruments. More…
Economists caution FM on stimulus roll-back
The Hindu, 15 January 2010
In the midst of an ongoing debate over the timing of even a partial withdrawal of the fiscal stimulus measures, economists on Friday sounded out a general caution against an early exit as the economic recovery was still fragile. More…
Over 7 per cent inflation could prompt RBI to tighten money supply
The Economic Times, 15 January 2010
The Reserve Bank may squeeze the money supply to tame inflation, which jumped to over seven per cent in December on surging food prices, economists said ahead of the RBI’s monetary review later this month. More…
Inflation seen at 10 pct in March: HSBC
The Financial Express, 14 January 2010
India’s WPI index is expected to peak at 10 per cent in March 2010, from an earlier forecast of 8 per cent for the period, HSBC said in a note on Thursday. More…
Uneven recovery tops RBI agenda
Business Standard, 13 January 2010
Though the index of industrial production expanded 11.7 per cent in November, the Reserve Bank of India (RBI) sees the recovery still skewed and says the uneven recovery would dominate the central bank’s thinking. More…
IIP grows by robust 11.7 pct in November
Indian Express, 12 January 2010
India’s industrial output rose at a faster-than-expected 11.7 per cent in November from a year earlier, helped by stimulus measures that boosted domestic demand, data showed on Tuesday. The median forecast in a Reuters poll was for an annual rise of 10 per cent. More…
Govt plans single FDI document by March 31
The Financial Express, 11 January 2010
The government plans to introduce a single FDI document, which will help to simplify the foreign direct investment process, by end-fiscal and is currently discussing the various modalities, Commerce and Industry minister Anand Sharma said. More…
Government may hike FY-11 budget support by 15%
The Economic Times, 12 January 2010
Caught in a dilemma of adhering to fiscal prudence and ensuring funds for promised pro-aam aadmi schemes, the UPA government is expected to go for a moderate hike in total gross budgetary support (GBS) by at least 15% for fiscal 2010-11, over current budgetary estimates. More…
Exports rise 9% in December
Business Standard, 12 January 2010
The government today said exports rose for the second successive month in December. The statement came a day before the government unveils a package of incentives for exporters in sectors that continue to face pressure. More…
PM wants Plan panel to make difference to outcomes
Business Standard, 11 January 2010
Even as questions are being raised regarding the relevance of India’s apex planning body, Prime Minister Manmohan Singh believes that the Planning Commission had never lost relevance though he does wish to see it evolve and restructure itself. More…
India Inc to post double digit growth in profit in Q3
Business Standard, 11 January 2010
India Inc is likely to post 15-20 per cent growth in net profit in the third quarter, thanks to a low base year and a promising show from automobiles, capital goods, construction, metals, pharmaceuticals and sugar companies. The telecom sector, for the first time after several quarters of strong performance, is expected to show decline in net profit on the back of decline in revenue per phone. More…
Govt to pass Right to Food Act: FM
The Financial Express, 10 January 2010
Finance Minister Pranab Mukherjee said the government will pass the Right to Food Act to promote inclusive growth, a concept that has been pursued by the Congress since Independence. More…
Power Min seeks 56% raise in outlay
Business Standard, 6 January 2010
With states speeding up distribution reforms in the power sector, the requirement for Central funds has gone up by over a half in the next financial year.The power ministry is seeking an over 56 per cent increase in the gross Budgetary support (GBS) for its planned outlay, at Rs 14,430 crore, for 2010-11. More…
Rate hike not needed now – PM adviser
Reuters, 5 January 2010
An adjustment in policy interest rates is not warranted for now but liquidity tightening may be needed, the prime minister’s economic adviser said ahead of a Reserve Bank policy meeting later this month. More…
RBI may need to drain cash: PMEAC
Livemint.com, 5 January 2010
The Reserve Bank of India may stay short of increasing policy rates now but may have to drain out some excess cash to tame inflation pressures, the chairman of the prime minister’s economic advisory committee said. More…
Finmin opposes FDI maths, wants review
The Economic Times, 5 January 2010
NEW DELHI: The finance ministry, upset with the new rules for calculating foreign direct investment (FDI) in Indian companies, has sought to overhaul the entire policy to shut ‘loopholes’ that allow investors to breach sectoral FDI caps through investments via offshoots. More…
Food inflation to ease next month: Montek
The Hindu, 4 January 2010
Planning Commission Deputy Chairman Montek Singh Ahluwalia on Monday said food inflation will come down next month from a more than a decade’s high of around 20 per cent, as apprehensions about adverse effect of drought were easing. More…
India to host 11th COP on biodiversity in 2012
Business Standard, 5 January 2010
As a mark of its commitment to biodiversity conservation, India will host the eleventh Conference of Parties (COP) to the Convention on Biological Diversity (CBD) in October 2012. Called ‘Rio + 20’ CBD Conference, the COP, to be held in New Delhi, will also commemorate the twentieth anniversary of the Rio Earth Summit, held in 1992 in Rio de Janeiro. More…
Oil imports rise first time in over a year
Business Standard, 02 January 2010
For the first time in 13 months, the country’s oil import bill registered a positive growth rate of 7.3 per cent, though the overall import continued to fall at $22.88 billion (Rs 1,06,640 crore) in November compared to $23.48 billion (Rs 1,09,440 crore) in the same month last year. More…
World Bank offers additional $ 500 mn funds for SSA
The Hindu, 01 January 2010
With government’s flagship Sarva Siksha Abhiyan (SSA) scheme showing encouraging results in expansion of elementary education, the World Bank has come forward with an offer to provide additional funding of $ 500 million for the programme. More…
Nov exports up 18.2 pc yr/yr : govt
The Economic Times, 01 January 2010
India’s exports rose an annual 18.2 per cent in November to $13.2 billion, the first rise after 13 straight months of decline, the government said on Friday. More…