Govt Imposed Anti Dumping Duty On CFL Imports - June 02, 2009

In order to prevent the domestic industry from cheap imports from China and Vietnam, the government has imposed anti- dumping duty of up to $1.90 per piece on the imports of compact fluorescent lamps (CFL), which would be levied with effect from November 21, 2008. The duty would be ranged between $0.36 per piece to $1.90 per piece, the finance ministry said in a notification.

The imports from China and Vietnam are taking place at dumped prices and have caused material injury to the domestic industry, the Directorate General of Anti-Dumping and Allied Duties (DGAD) had recommended anti-dumping duty on imports of CFL.

The government earlier had imposed duty on several other products including yarns as well as fabrics, colour picture tubes, some aluminum products and chemicals.

Govt To Move SC On Service Tax On Commercial Rent - April 24, 2009

The Delhi High Court has struck down the levy of service tax by the Centre on rented property for commercial use. The Court holds that renting the real estate for commercial use by itself is not a service and that''s why it cannot be taxed. This verdict will put an impact on similar cases filed in other high courts across the country.

The finance ministry has imposed service taxes on the rented property in order to add revenue. The move will give a major relief to realtors and all companies operating from rented space, particularly retailers and call centres. However, the Supreme Court will now look after this battle.

Nothwithstanding The Slow Down In Economic Growth - 30 Aug 08

Nothwithstanding the slow down in economic growth and high inflation, Finance Minister P Chidambaram on Friday said that the Fiscal Responsibility and Budget Management (FRBM) target of reducing fiscal deficit by 0.3 per cent will be met this fiscal. In Budget 2008-09, the Finance Minister has targeted to bring down the fiscal deficit to 2.5 per cent of GDP. Asked about the slowdown in GDP growth in the first quarter of this fiscal to 7.9 per cent, he said, last year, we expected 9 per cent GDP growth and got 9.1 per cent. This year, we expect it close to 8 per cent, the Finance Minister said at a programme.Chidambaram said that there were high degree of savings as well as high level of investment.

World Bank Projects 7% Economic Growth For India - June 11, 2008

The World Bank witnesses India''s economic growth to distinctly slow further to seven per cent in 2008, following an easing in its gross domestic product (GDP) growth to a still strong 8.7 per cent in 2007 from nine per cent in 2006. In its flagship annual publication Global Development Finance, 2008, released in Cape Town, South Africa on June 10, the Bank said beginning this year, inflationary pressures started to build in India with deceleration in industrial output to three per cent in April 2008, indicating growing signs of a cooling economy. But a falloff in growth in countries where migrants are employed, coupled with the sharp depreciation of the dollar, could lead to lower remittance inflows in local currency terms, the Bank said adding that this could lead to weaker consumer demand.

Volatile and declining equity prices in the region, particularly in India - just as ownership of stocks and other financial assets is beginning to take hold among the burgeoning middle-class could hamper both consumer and business outlays, while depressing overall confidence levels in the economy. It called upon countries particularly active in global interbank markets Brazil, China, Hungary, India, Kazakhstan, Russia, South Africa, Turkey and Ukraine to be concerned about the possibility that their domestic banks would face funding difficulties in international markets, should liquidity pressures in interbank markets remain at elevated levels.

PM optimistic on taming inflation

Prime Minister Manmohan Singh on May 8 promised that the United Progressive Alliance government led by the Congress would tame inflation in the coming months and roll back the inflation rate to reasonable levels.

Dr. Singh was addressing a citizens'' meet, comprising elite sections and important Congress leaders/workers organised by the Karnataka Pradesh Congress Committee.

He said inflation had an international dimension. Oil prices touched an all-time high and food grain and commodity prices rose substantially.

In spite of this adverse scenario, he said the government made strenuous efforts to shield the poor and the vulnerable sections. Kerosene and LPG prices were hardly hiked in four years and even petrol and diesel price rises were kept low. The Centre, he said, was bearing a huge cost on the Exchequer on account of this.

Foodgrain issue prices for BPL rice and wheat were not touched while wheat and rice support prices were doubled. This year, he said, the country had a bumper crop and procurement was excellent.

He said that in spite of inflation, the Centre ensured macro-economic stability and a climate conducive to enterprise and creativity. This had manifested in growth rates averaging almost nine per cent in the last few years benefiting every section and enabled in raising resources for development programmes.

Inflation To Hit Economic Growth

Inflation numbers continue to be a worry, but industrial data numbers may give some hope. The finance ministry''s biggest concern now is the fact that rising inflation will start eating into the economic growth numbers.

But on April 11, the fresh set of industrial growth numbers for the month of February does not support this fear. One big respite, for investors, policymakers and the government, as India''s industrial growth is back on track chugging along at nearly 9 per cent.

In February this year, industry grew 8.6 per cent against 5.8 per cent in the previous month. Not just this, even consumer non-durables that is mostly the FMCG market, has grown at a rapid clip of 11 per cent reflecting largely the consumption rate of masses and changes in lifestyle.But the big worry for the government is about the other big number. Inflation is high at 7.4 per cent for March 29 driven largely by vegetable prices and the prices of steel and other metals. So, expect the government''s drive to cool inflation to continue and perhaps some action soon from the RBI.