Call Rates Close Steady - Jan 16, 2009

The call rates closed at 4.20-4.30 per cent, as compared to the previous close of 4.20-4.25 per cent. In the one-day repo auction under the first liquidity adjustment facility (LAF), There were no bids. However, in reverse repo auction, the RBI received and accepted 5 bids for Rs 5,625 crore. In lin with this, under the second LAF, there were 2 bids for Rs 1,950 crore in the repo auction. There were 16 bids for Rs 17,200 crore in the one-day reverse repo auction. There was one bid for Rs 280 crore in the 14-day special repo auction scheme for mutual funds and NBFCs under the LAF.

IIP Recorded Positive Growth In November - Jan 13, 2009

The Index of Industrial Production numbers for November 2008, stood at 2.4% as compared to negative 0.4% of previous month. It was 4.9% during the corresponding month of previous year. Mining output is higher 0.5% as against 6.3% of previous year and manufacturing output is up 2.4% against 4.7% (YoY). Capital goods output is down 2.3% vs 24.2% (YoY) and consumer goods output is up 4.4% vs negative 2.9% for the corresponding month of previous year. In line with this, the growth in the consumer segment was lower than the average 6.2% YoY increase in the April-October months. However, monthly momentum in capital goods rose 3.5% mom versus a 9.3% mom fall in October.

In November, the monthly momentum grew 1.7% month on month versus a 3% MoM fall in October. In line with this, for the April-November months, IIP rose 3.9% YoY versus 9.3% YoY in the same period previous year.

M.P. Annual Plan Set At Rs 14,182.61 Cr

New Delhi: The annual Plan of Madhya Pradesh for 2008-09 has been set at Rs 14,182.61 crore, inclusive of one-time additional Central Assistance of Rs 150 crore for projects of special interest to the State. This was agreed on March 25 at a meeting between the Deputy Chairman, Planning Commission, Mr Montek Singh Ahluwalia, and the Madhya Pradesh Chief Minister, Mr Shivraj Singh Chouhan.

Mr Ahluwalia said the State needs to devote more attention on human development. Social sector needs priority and efforts should be aimed at improving human development index with policy initiatives for creating investor-friendly environment. He said the State Government should avail itself of benefits available under various social sector schemes. Mr Chouhan informed the Commission that thrust areas of development policy would be eliminating hunger, malnutrition and poverty. Livelihood opportunity would be created through generating economic activities based on natural resources. A number of new initiatives have been taken to improve social protection. These include Mukhya Mantri Mazdoor Suraksha Yojana, integrated livelihood programme and Din Dayal Antodya Upchar Yojana.

India Targets To Encourage Trade Volumes

Kolkata: India has set an aim to boost trade volumes with the ASEAN countries to $50 billion, up from the present $20 billion. The proposed free-trade agreement with the ASEAN countries will help this process by opening up market for many Indian products, especially auto-components. Many ASEAN countries such as Malaysia are interested sourcing auto components from India.

Long-Term Solution To Rising Prices Not In Sight

New Delhi: Soaring prices of vegetables and fruits are increasing the heat for the common man in the midst of the summers largely due to constrained supply, and the experts feel that a long-term solution is still elusive.

More than half the fruits and vegetables in the wholesale markets in Delhi have recorded rise of up to 100 per cent and the effect could be more when it comes to retail prices. According to data compiled by Delhi Agricultural and Marketing Board for 48 fruits and vegetables, coriander prices have more than doubled to Rs 800 per quintal during the month ended March 20, while sweet pumpkin was being sold at Rs 850 a quintal compared to Rs 325 a month ago. However, there was some respite for the common man with prices of potato dropping to Rs 250 from Rs 413 a quintal, while Tomato was being sold at Rs 560, down from Rs 720, at the Azadpur market.

Marketmen said the retail prices of vegetables are usually more than double the rate being charged in the wholesale market, but added that arrival of vegetables is sure to improve in the next few weeks and ease the pressure. The rates of milk and dairy products, pulses, cereals, foodgrain and edible oil have shown an upward trend, prompting the government policy makers to take some immediate decisions like cutting down import duty on edible oil and rice to increase the domestic availability.

"The recent measures announced by the government to augment food supply would bring an immediate relief. But the pressure would still remain," Mumbai-based rating agency Crisil Principal Economist D K Joshi said. The rate of inflation has reached a whopping 5.92 per cent, mainly due to rise in the prices of food articles. With the inflation racing to nearly a year''s high at about six per cent, the supply side management would hold the key to check prices, Joshi said, adding that the consumers may have to pay more for food items because prices would continue to rise, with global food stocks coming to a 20-year low. Commenting on the global situation, Agriculture Minister Sharad Pawar recently said that India imported wheat at about $100-110 a tonne last year but the international prices have now nearly quadrupled.

Economic Survey To Be Tabled Today

New Delhi: Finance Minister P Chidambaram will table in Parliament on Thursday the Economic Survey - a report card on the economy during this fiscal that will also show the direction of government policy in the year ahead.

It will be followed by the presentation of the Budget for 2008-09 on Feb 29. The industry, which is upbeat after the presentation of a populist Railway budget yesterday, expects the Finance Minister too to announce cut in income tax and excise duty on various commodities to sustain GDP growth - now under pressure due to a slowdown in the US economy.

The Survey, mainly authored by the Chief Economic Advisor Arvind Virmani, is expected to indicate the government''s priorities and thrust areas for the Budget 2008-09.After posting a scorching 9.6 per cent growth in 2006-07, the Indian growth story was seen slowing down in 2007-08. The Survey is expected to indicate policy measures to dampen inflation, which is ruling above the four per cent mark, reverse slowdown in export growth, tackle the impact of rising rupee and address the issue of spurt in global crude oil and food prices.

It is also expected to present a rosy picture of the economy and outline the achievements of the United Progressive Alliance government, besides high growth in tax collections.Savings and investment.

AP Economic Survey Shows Optimism

Hyderabad: The Andhra Pradesh Socio Economic Survey for 2007-08 shows all-round development with various economic sectors showing optimism. The State''s average industrial sector growth has increased by 8.9 per cent during 2004-08 as against 5.4 per cent during 2000-04, the agriculture sector annual production has increased to 161 tonnes (2004-08) from 138 tonnes (2000-04) and the economic growth was up 8.7 per cent during 2004-08 as against 6.17 per cent in 2000-04. The overall economic outcome reflects the policy framework of the State, which seeks to encourage development across various sectors of economy. The Gross State Domestic Product for Andhra Pradesh in 2007-08 is pegged at 10.37 per cent and is the highest seen in the last two decades. The State economy is moving towards employability and the annual employment growth rate during 2004-08 is 3.7 per cent. The State hopes to get full literacy by 2015.

India, Britain To Boost Trade Ties

The large presence of Indian diaspora in Britain and growing economic engagement strengthen the comprehensive strategic ties between India and Britain, said a joint statement issued by the two sides on Jan 21. The bilateral economic linkages are strengthening through increased trade and investment flows, said the statement issued after delegation-level talks between Prime Minister Manmohan Singh and his British counterpart Gordon Brown. The UK is the third largest cumulative investor in India. India has emerged as one of the largest investors in the UK, including several major acquisitions, reflecting the maturing nature of the bilateral economic partnership.

Brown, who was on a two-day visit in New Delhi with a large business delegation since Jan 20, said around $10 billion worth of projects were in the pipeline between Indian and British companies and hoped they would conclude soon. The two sides acknowledged the potential for greater collaboration in areas like IT, life sciences, nano-technology, advanced manufacturing, infrastructure, energy, healthcare, agriculture and higher education.

AP Govt Forecasts Economic Growth Exceeds National Trend

Hyderabad: The Andhra Pradesh Government has forecasted that the State''s economic growth at 9.83 per cent and per capita growth rate have exceeded national economic growth trends. Following a review meeting of the Chief Minister, Dr Y.S. Rajasekhara Reddy, with the Special Chief Secretary, Planning, Mr A.K. Goel, these numbers were released by the Chief Minister''s Office. The economic growth rate of the nation this year will be 8.5 per cent, while the growth rate during 2007-08, according to revised estimates, will be only 8.9 per cent. This is because of the shortage of essential commodities, fall in growth rate of trade, business, hotel, transport and communications, and comparative decline in agricultural growth rate. While the per capita growth in the three quarters this year for the nation is 7.3 per cent, Andhra Pradesh recorded 8.3 per cent growth.

The State is hopping a buoyant performance by agricultural and allied sectors. The cumulative quarterly Gross State Domestic Product (GSDP) from April to December 2007, at factor cost at constant (1999-2000) prices of 2007-08 is estimated at Rs 1,46,227 crore as against Rs 1,33,138 crore over corresponding period of previous fiscal of 2006-07, a growth rate of 9.83 per cent. The methodology followed in estimations of quarterly GSDP is as that of the Quarterly Gross Domestic Product (QGDP) compiled by Central Statistical Organisation. Directorate of Economic and Statistics estimates the Quarterly Gross State Domestic Product (QGSDP). The agriculture sector contribution during the cumulative third quarter of 2007-08 at constant (1999-2000) prices is estimated at Rs 26,539 crore as against Rs 23,660 crore in the corresponding period previous year, a growth of 12.17 per cent.

Brown To Visit India On A Likely Economic Agenda

The British Prime Minister Gordon Brown arrives in India later on Jan 20 with an eye on improving business ties and enhancing cooperation on climate change and counter-terrorism. The Indian economy is hoped to tread ahead this year with growth in Europe and the United States. The British government has had the visit to India on top of its agenda after Brown became the premier. He will also take part in a women''s empowerment event, an entrepreneurship summit and launch a sports initiative. The visit is clear indication of attracting and introducing British business to Asia''s economic giants. They are delighted when foreign companies come here and buy British companies because in the end we want those people to come and run these companies who are hungry and who want to bring in new ideas.