Indian Economy

Union Budget Agriculture Analysis by Fairwealth Securities Ltd

AgricultureSoaring food prices that are denting the disposable income have been a major cause of concern for the government lately. Consequently the Agriculture sector acquired utmost importance in the Union Budget 2011-12. The Finance Minister said that production and distribution bottlenecks for items such as fruits and vegetables, milk, meat, poultry and fish would be the focus area in FY12. Various Agro Schemes such as Rashtriya Krishi Vikas Yojana, Accelerated Fodder Development Programme have witnessed considerable hike in allocations.

Union Budget GST & DTC Analysis by Fairwealth Securities Ltd

TaxFM has restated governments’ priority to implement GST and DTC by FY12, the most important reform in taxation policy. DTC Code is proposed to be effective from April 1, 2012 to allow taxpayers, practitioners and administrators to fully understand the legislation and adjust to the revised procedures. Unlike DTC, decisions on the GST have to be taken in concert with the States. As a step towards the roll-out of GST, FM proposed to introduce the Constitution Amendment Bill in this session of Parliament. Establishment of a strong IT infrastructure is essential to rollout GST successfully.

Union Budget 2011-12 Analysis by Fairwealth Securities Ltd

Union-BudgetThe Union Budget 2011-12 presented today by the Finance Minister seems balanced and growth oriented. Agriculture, Infrastructure and Social sector have been the focus areas. The budget has sought to promote growth with an inclusive agenda. Consequently, substantial plan outlay has been devoted to social and rural development. The Finance Minister expressed his concern over the problem of generation and circulation of black money in the Budget Session and announced the implementation of a Five Fold Strategy to deal with the problem.

India can be global economic leader in the 21st century: US

India can be global economic leader in the 21st century: USIndia could lead the world economy in this 21st century if it continues to take additional measures on economic reforms and opens up more sectors to the overseas players, according to the US commerce secretary Gary Locke. He also said that if India would further follow the road of reforming, and if it continues to become more open to the investments as well as the innovations of foreign companies, then it stands a much better chance of being the leader of the world economy in this century. Gary Locke was in Mumbai on Thursday when he said all this.

Trade deficit during April-January stood at $89 billion

Trade deficit during April-January stood at $89 billion

Export figures revealed by government on Saturday for January stood at $20.6 billion showing a hike of 32.5%. The hike in exports is due to strong growth in engineering, gems and jewellery and cotton yarn sectors.

For the first ten months of the year 2010-2011 ended on January, exports rose 29.4% to $184.6 billion whereas imports grew 17.6% to $273.6 billion, said by Commerce secretary Rahul Khullar. The trade deficit during April-January stood at $89 billion.

RBI reviews short term and long term parameters for Credit policy

The Reserve Bank of India (RBI) had scheduled a meeting for the review of the credit policy on January 25. Macroeconomic situation along with various other short-term and long-term parameters will be considered during the meeting.

Rise in the inflation in the past few weeks and higher interest rates grounds the slowness in industrial growth. Last meeting was organized in December in which RBI has taken few strict steps for controlling inflation and being moderate economic growth.   

As per banks and dealers like Morgan Stanley India Primary Dealer Pvt. and ICICI Securities Primary Dealership Ltd., RBI need to stop its buyback in two years as inflation is increasing at higher rate.

Expensive food items increase the inflation rates

Inflation according to the wholesale price index (WPI) has increased to 8.43% last month as against 7.48% of November due to a sudden spurt in the costs of fruits, vegetables and spices.

The resumed rise in headline inflation made the economists foretell that the Reserve Bank of India (RBI) will increase its interest rates by around 50 basis points at the time it shows its quarterly monetary policy review on 25th January.

According to the Finance Minister Pranab Mukherjee, restraining inflation is a tough thing to do and the RBI must take proper action according to the requirement and when it is needed.

Indian Currency Closes At 4 Month High Versus USD

Indian Currency Closes At 4 Month High Versus USDIndian rupee on Friday surged to a four-month peak at 45.83 versus the US currency, gaining 31 paise on the back of continued capital inflows from foreign funds.

Dealers at the Interbank Foreign Exchange (FOREX) made this declaration.

With this, the domestic unit has gained 60 paise during the three straight trading sessions.

Indian currency grew by 8 paise to 46.06 per US Dollar during the morning. The northward movement continued till the end of the session.

Finally, it marked its closure at 45.83 after surging 31 paise.

Indian Currency Closes Flat At 46.76 Vs Dollar

Indian Currency Closes Flat At 46.76 Vs DollarAfter the three-day slump, Indian currency ended the week on a steady note at 46.76 as against the US currency, on Friday, owing to gains in the stock market.

The Indian rupee bounced back by 13 paise to 46.63 versus the US Dollar during the morning session on intense selling of the greenback by exporters.

Finally, the Rupee marked its closure at 46.76 as against the American currency.

The Indian unit closed at a three-week low of Rs 46.76 on Friday (August 13).

Food Inflation Declines Further To 9.53%

Food Inflation Declines Further To 9.53%For the week ended July 24, the food price index declined further to 9.53% as against 9.67% registered in the last week.

This is the second successive week that the food inflation has stayed in single digits, giving a much required respite to the UPA administration that has been under attack from all quarters because of rising costs of vital goods and commodities.

The yearly rate of inflation, calculated on point to point basis, was 14.36% for the week ended July 24 as against 14.50% for the previous week and 7.89% in the same period of 2009.

Indian Currency Strengthens To A Month's High At 46.40 Vs US Currency

Indian Currency Strengthens To A Month's High At 46.40 Vs US CurrencyThe Indian currency climbed to a month's high on Friday after surging 13 paise to 46.40 as compared to the US currency on selling of the American currency by exporters.

The rupee declined eight paise during the opening trade to 46.61 per US dollar as against its previous closure at 46.53 per USD on continued buying support from bankers.

At last, the Indian unit closed the day on a positive note at 46.40 against the Dollar.

Hike In Key Rates To Relieve Inflation: Pranab Mukherjee

Hike In Key Rates To Relieve Inflation: Pranab MukherjeeIndian Finance Minister Pranab Mukherjee announced that the increase in key rates will relieve inflation, besides keeping financial growth on the right track.

The country's central banking institution (RBI), today lifted the repo rate by 25 basis points to 5.75% and reverse repo rate by 50 basis points to 4.50%.

The Reserve Bank of India has kept cash reserve ratio (CRR) unaltered at six per cent.

At present, the food inflation is looming over 12% and the overall inflation rate is higher than 10 per cent.

Rupee Strengthens By 18 Paise At 46.94 Vs US Currency

Rupee Strengthens By 18 Paise At 46.94 Vs US CurrencyThe Indian currency rallied for the third consecutive day on Friday by 18 paise to end the day firmer at 46.94 versus the US currency on heavy offloading of the greenback by local operators and strong equity prices.

The rupee resumed on a higher rate at 47.08 against the dollar on weak demand for dollars by local traders.

Afterward, it fluctuated in wide range between 46.90 and 47.06 in intra day trade.

Food Price Index Surges 12.47%

Food Price Index Surges 12.47%For the week ended July 10, the food price index grew by 12.47% as against 12.81% registered in same period of last year.

The index for fuel, power, light and lubricants group remained at their previous week's level of 14.27%, whilst it was minus 10.05% in the same week of 2009.

The twelve-monthly rate of inflation with regard to primary articles stood at 16.48% during the period under review as compared to 16.25% during the previous week and 6.45% during the same week of 2009.

Indian Currency Ends Lower By 16 Paise Versus US Currency

Indian Currency Ends Lower By 16 Paise Versus US CurrencyIndian currency on Friday declined by 16 paise to end the week at 46.77 versus the US currency, as compared to its last previous closure at 46.61 on account of continued demand from bankers.

Traders at the Interbank Foreign Exchange (FOREX) made this announcement.

The Indian unit lost nine paise during the opening trade following a mixed trend in Asian currencies.

However, benefits in domestic equity stocks prevented its sharp decline, they added.

Influence to debut by 2011 in India

Influence to debut by 2011 in IndiaThe French auto major Renault has decided that it will not like to be considered as an underdog in the Indian market and has firmed up bullish plans for the future in the domestic circuit.

A top company official recently said that the company will be launching its much-popular, Influence in the Indian market by 2011.

Renault India Country General Manager and Managing Director Marc Nassif recently confirmed the development by saying that the company will introduce the first sedan Influence by 2011 and a SUV Koleos by 2012-13 in the Indian market.

Prices to come down by December and growth could exceed 8.5pc Says Montek

Prices to come down by December and growth could exceed 8.5pc Says MontekThe prospective good monsoons this year has brought along with it a host of other enthusiastic hopes. A bumper harvest is expected owing to the heavy rains, and as a result the much troubling inflation is expected to decrease, along with the prices of various goods.

Country's Outward FDI Decline 36.5% In 2009-10: RBI

Country's Outward FDI Decline 36.5% In 2009-10: RBIDuring the last financial year (2010-11), Indian Investment Abroad in Joint Ventures and Wholly Owned Subsidiaries came down by 36.5% to $10.3 billion.

According to the latest statement from the central bank (RBI) in the year investments financed through loans recorded an increase over the previous year whilst investment financed through equity declined sharply.

For the three month period ended March 2010, the country's outward investment stood at $1.9 billion, showing a fall of 52.7% over the corresponding quarter of the previous year.

Production Increase Required To Attain Food Security: Pranab Mukherjee

Pranab-MukherjeeUnion Finance Minister Pranab Mukherjee stated that the Central administration will pass a legislation to offer up subsidized wheat and rice to the poorer sections of society, adding that its success would depend on strengthening the delivery system and boosting production.

At a conference on extending Green Revolution to the eastern parts of the country, Mukherjee said, "We are committed to ensure Food Security Act and to make successful, we need to produce more, procure more and strengthen delivery mechanism for making accessible and affordable."

Indian Currency Gains 21 Paise To 46.66 Vs Dollar

Indian Currency Gains 21 Paise To 46.66 Vs DollarIndian currency gained 21 paise to 46.66 against the US currency on Friday on continued selling pressure on the American currency by foreign funds and sturdy equity prices.

Traders at the Interbank Foreign Exchange (FOREX) made this declaration.

The Rupee belled the day strongly by 11 paise to 46.74 as compared to the dollar and afterward it fluctuated in a broad range between 46.64 and 46.80 in intra day trade.




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