The foreign exchange reserve of India continues to decline in the month of October. It fell by $1.83 billion for the week ended December 5 and currently stands at $245.86 billion. The dip is caused following measures taken by Reserve Bank of India to stop further depreciation of rupee. Revaluation in foreign currencies and large scale pullout by foreign institutional investors also contributed in the fall of foreign reserve.

Government can lift ban on the futures trading in wheat, rice, urad and tur in a couple of days. The ban was imposed in 2007 to control the ever increasing prices. Inflation rate is slightly declining, paving the way for lifting the ban. The Forward Markets Commission (FMC) has sent a detailed report on futures trading to the government and the decision is likely to come very soon.

Union Home Minister, P Chidambaram said that there is no need to worry about the fiscal deficit. The government is more concerned about the stability of the economy and had taken various measures to mitigate the impact of the slowdown on Indian economy.

He said, while addressing members of parliament, "If fiscal deficit crosses 3 per cent of GDP, it is not a cause for concern. We had brought down the fiscal deficit to 2.5 per cent from 4.5 per cent."

Mr. Chidambaram performed two roles in the parliament and gave answers on security as well as finance issues. PM Dr. Manmohan Singh, who is also holding the finance portfolio, has already sought permission of the Lok Saba Speaker to get Chidambaram's help for finance matters.

New Delhi  - India's industrial output fell for the first time since 1993 as the effects of the global economic slowdown on the country deepened, media reports said Friday.

Industrial production shrank by 0.4 per cent in October, after expanding by 12.2 per cent in the same month last year, the NDTV network reported, citing data from the state-run Central Statistical Organization.

The decline was unexpected as industrial production had grown by 5.45 per cent in September and economists had projected an increase of over 2 per cent. India had last recorded a decline in output in April 1993, the report said.

The union government may announce a second financial package to boost the economic growth rate amid global slowdown. It was revealed by the Union Commerce and Industry Minister, Kamal Nath at the sidelines of a function, organized by the Spanish Institute of Foreign Trade.

During the week ended November 29, the headline inflation, while continuing its southward journey, fell further to 8% from 8.4%.

Earlier it was displayed by a poll that the annual inflation rate was expected to have fallen to its lowest in eight months in late November, following a decline in the prices of manufactured products and lower fuel prices.

As compared with 8.4 per cent a week before, the median forecast of 11 economists was for an 8.0 per cent rise in the wholesale price index in the 12 months to November 29.