The Indian economy is not heading towards deflation despite of inflation heading towards zero level, said Montek Singh Ahluwalia, Planning Commission Deputy Chairman The inflation rate dropped to 0.27 per cent for the week ended March 14 from 0.44 per cent for the week ended March 7.I don''t think we are heading towards deflation. It is true that inflation rate has come down...this is because at this time last year, there was a sharp increase in prices, Ahluwalia told. He also said that inflation can go to zero or may even be negative for a week or two. It has happened in the past...during 1970s the inflation rate became negative for a brief period. But I don''t expect that there would be deflation at all now.
Showing posts with label indian Economy. Show all posts
Showing posts with label indian Economy. Show all posts
Friday, March 27, 2009
Friday, March 20, 2009
Govt Brushes Aside Deflationary Concerns - March 20, 2009
The fears of Indian economy slipping onto a deflationary phase was brushed by the Government on March 19, stating that a sharp fall in inflation this month has more to do with the high base a year ago than any great decline in prices.
The Cabinet Secretary K M Chandrasekhar told I do not see any sign of deflation right now. Probably, decline in inflation is more due to higher base last year than any significant drop in prices. The inflation dipped more than three decade low of 0.44 per cent for the week ended March 7. The industrial production in India reported a contraction for the second month running in January by 0.5 per cent due to the impact of global economic crisis. The exports too have been shrinking by a wide margin of 12-21 per cent for five months in a row since October this fiscal.
The government sees sign of recovery in the select sectors due to stimulus packages between December and February. The automobile as well as cement, steel and infrastructure sectors are growing, Chandrasekhar said. He said the low inflation would certainly weigh on the mind of the central bank and it will be looking at these figures in having its own decisions, he said adding the private sector banks should also join public sectors peers in cutting the interest rates.
The Cabinet Secretary K M Chandrasekhar told I do not see any sign of deflation right now. Probably, decline in inflation is more due to higher base last year than any significant drop in prices. The inflation dipped more than three decade low of 0.44 per cent for the week ended March 7. The industrial production in India reported a contraction for the second month running in January by 0.5 per cent due to the impact of global economic crisis. The exports too have been shrinking by a wide margin of 12-21 per cent for five months in a row since October this fiscal.
The government sees sign of recovery in the select sectors due to stimulus packages between December and February. The automobile as well as cement, steel and infrastructure sectors are growing, Chandrasekhar said. He said the low inflation would certainly weigh on the mind of the central bank and it will be looking at these figures in having its own decisions, he said adding the private sector banks should also join public sectors peers in cutting the interest rates.
Wednesday, March 18, 2009
IMF Sees India''s Growth Rate Slowing Considerably - March 18, 2009
India''s economy is slowing considerably and uncertainty surrounding the outlook in unusually large, International Monetary Fund (IMF) said on Tuesday.
The IMF predicted the India''s gross domestic product growth may slow to 6.3 per cent in the fiscal year 2008-2009, ending in March, and to 5.3 per cent the following year. That would be lower than the 9 per cent growth rate in the 2007-2008 year.
The IMF cautioned that a big expansion of deficit may raise fears of fiscal sustainability as India''s debt as a percentage of GDP was already elevated.
The fund said, "Policy measures to stimulate the economy and a good harvest should support domestic demand."
"The uncertainty surrounding the forecast is unusually large, with significant downside risks. The main upside risk stems from a larger-than-anticipated impact of the stimulus measures that the authorities have already implemented."
The IMF predicted the India''s gross domestic product growth may slow to 6.3 per cent in the fiscal year 2008-2009, ending in March, and to 5.3 per cent the following year. That would be lower than the 9 per cent growth rate in the 2007-2008 year.
The IMF cautioned that a big expansion of deficit may raise fears of fiscal sustainability as India''s debt as a percentage of GDP was already elevated.
The fund said, "Policy measures to stimulate the economy and a good harvest should support domestic demand."
"The uncertainty surrounding the forecast is unusually large, with significant downside risks. The main upside risk stems from a larger-than-anticipated impact of the stimulus measures that the authorities have already implemented."
Wednesday, February 25, 2009
There Is No Sign Of Slowing Down Of Financial Crisis - Feb 25, 2009
There is no sign of slowing down of financial crisis in India''s economy, with government spending likely to continue. Finance Minister Pranab Mukherjee''s interim budget has confirmed the worst fears of economists that India''s fiscal deficit is expanding.
According to financial firm, Goldman Sachs, India''s combined fiscal deficit at around 11 per cent of GDP is now among the highest in the world. The deficit is unlikely to come down in the next few years. Also, global rating agencies like Moody''s, Fitch and S&P have warned that India''s rating may be downgraded.
In the meantime, policymakers insist the rising deficit is expected, given the government''s increased spending. Montek Singh Ahluwalia, Deputy Chairperson of Planning Commission, said, "I should say it''s a cause of congratulations. All of you who have been asking for a fiscal stimulus should congratulate the government that you have been given a fiscal stimulus. It''s impossible to have a fiscal stimulus and not increase in deficit."
According to financial firm, Goldman Sachs, India''s combined fiscal deficit at around 11 per cent of GDP is now among the highest in the world. The deficit is unlikely to come down in the next few years. Also, global rating agencies like Moody''s, Fitch and S&P have warned that India''s rating may be downgraded.
In the meantime, policymakers insist the rising deficit is expected, given the government''s increased spending. Montek Singh Ahluwalia, Deputy Chairperson of Planning Commission, said, "I should say it''s a cause of congratulations. All of you who have been asking for a fiscal stimulus should congratulate the government that you have been given a fiscal stimulus. It''s impossible to have a fiscal stimulus and not increase in deficit."
Tuesday, February 10, 2009
Growth Of Indian Economy To Slow Down - Feb 10, 2009
The government projected the growth of Indian economy to slow down to 7.1 per cent in the current fiscal as compared to 9 per cent in 2007-08.
The Central Statistical Organization (CSO) on 9 February 2009 said that the India''s projected GDP growth for the year ending March 2009 observed at 7.1%, which is the slowest in six years and below the previous year''s 9%. The CSO said manufacturing output growth was estimated at an annual 4.1%, half of the expansion in 2007/08 while farm output is seen at annual 2.6%, much lower than 14.9% growth in last year.
Along with this, the construction growth seen at 6.5% as compared to 10.1% of last year and mining growth at 4.7% as against 3.3% a year ago. However, the Financial along with the insurance, real estate and business services are set to grow by 8.6 per cent against 11.7 per cent. On the other hand, the category of trade as well as the hotels, transport and communication is projected to grow by 10.3 percent against 12.4 per cent and community, social and personal services by 9.3 per cent against 6.8 per cent.
The Central Statistical Organization (CSO) on 9 February 2009 said that the India''s projected GDP growth for the year ending March 2009 observed at 7.1%, which is the slowest in six years and below the previous year''s 9%. The CSO said manufacturing output growth was estimated at an annual 4.1%, half of the expansion in 2007/08 while farm output is seen at annual 2.6%, much lower than 14.9% growth in last year.
Along with this, the construction growth seen at 6.5% as compared to 10.1% of last year and mining growth at 4.7% as against 3.3% a year ago. However, the Financial along with the insurance, real estate and business services are set to grow by 8.6 per cent against 11.7 per cent. On the other hand, the category of trade as well as the hotels, transport and communication is projected to grow by 10.3 percent against 12.4 per cent and community, social and personal services by 9.3 per cent against 6.8 per cent.
Tuesday, January 20, 2009
Indian Economy Is Likely To Record A Growth Rate - Jan 20, 2009
The Indian economy is likely to record a growth rate of 7.4 per cent in the last quarter of the 2009 fiscal as well as in the entire fiscal, a report by CMIE, said.
"We expect the fourth-quarter to register a real GDP growth of 7.4 per cent. Fiscal 2008-09 will thus end with a growth of 7.4 per cent", the Centre for Monitoring Indian Economy (CMIE) said. It however, expects the GDP for the third quarter of FY''09 to stay at around 6.7 per cent, substantially lower than the 7.8 per cent reported during previous two quarters.
The Reserve Bank and Centre together over the past two months have partially repaired the damages caused by the break-down of the international financial markets, the report said. It also added that the "liquidity was pumped in and interest rates were reduced by the RBI". The report also said, global financial markets collapse in October dried up the international finance trade, leading to a fall in exports as well as the Index of Industrial Production (IIP) and cargo movement, the report said. The economy deterioration in the third quarter is almost entire and caused due to the global liquidity crisis, CMIE said.
"We expect the fourth-quarter to register a real GDP growth of 7.4 per cent. Fiscal 2008-09 will thus end with a growth of 7.4 per cent", the Centre for Monitoring Indian Economy (CMIE) said. It however, expects the GDP for the third quarter of FY''09 to stay at around 6.7 per cent, substantially lower than the 7.8 per cent reported during previous two quarters.
The Reserve Bank and Centre together over the past two months have partially repaired the damages caused by the break-down of the international financial markets, the report said. It also added that the "liquidity was pumped in and interest rates were reduced by the RBI". The report also said, global financial markets collapse in October dried up the international finance trade, leading to a fall in exports as well as the Index of Industrial Production (IIP) and cargo movement, the report said. The economy deterioration in the third quarter is almost entire and caused due to the global liquidity crisis, CMIE said.
Saturday, January 10, 2009
Inflation Rate Has Been Dropped - Jan 10, 2009
The Inflation for the week ended 27th December 2008, declines to ten months low of 5.91%. Inflation rate has been dropped for ninth consecutive weeks and stood at 6.38% in the previous week and 3.74% in the corresponding week of 2007. The primary articles group in the WPI declined by 50 basis points from the previous week while manufactured products group declined by 30 basis points.
However, the previous low was reported at 5.69% for the week ended 23 February 2008. The index of food articles group declined by 0.7% as prices of jowar fell by 5%, fruits and vegetables by 3%, eggs and bajra by 1% each.
In case of manufactured goods, imported edible oil became cheaper by 1% along with the polyester fibre by 2% and newsprint by 1%. During the week, the index of fuel remained unchanged and also there was no movement in the prices of cement and iron and steel.
However, the previous low was reported at 5.69% for the week ended 23 February 2008. The index of food articles group declined by 0.7% as prices of jowar fell by 5%, fruits and vegetables by 3%, eggs and bajra by 1% each.
In case of manufactured goods, imported edible oil became cheaper by 1% along with the polyester fibre by 2% and newsprint by 1%. During the week, the index of fuel remained unchanged and also there was no movement in the prices of cement and iron and steel.
Tuesday, June 24, 2008
Indian Rupee Gained Against Dollar - June 24,2008
The Indian rupee on June 23 gained three paise at 42.96/97 against the greenback on sustained capital outflows amid weak equity markets and some dollar selling by exporters. At the Interbank Foreign Exchange (Forex) market, the domestic currency moved in a very limited breadth of 42.95 and 42.98 a dollar before ending at 42.96/97 from previous close of 42.93/94 per dollar.
Forex dealers said intervention by the central bank to support the rupee helped the local unit to remain range bound through the day and closed at the opening level.Sustain offloading by Foreign Institutional Investors (FIIs) mainly weighed on the rupee sentiment, they said. FIIs sold shares worth $2.09 billion in the current month till June 23 and also pulled out a whopping nearly $5.9 billion in the current calender so far.
Forex dealers said intervention by the central bank to support the rupee helped the local unit to remain range bound through the day and closed at the opening level.Sustain offloading by Foreign Institutional Investors (FIIs) mainly weighed on the rupee sentiment, they said. FIIs sold shares worth $2.09 billion in the current month till June 23 and also pulled out a whopping nearly $5.9 billion in the current calender so far.
Tuesday, May 27, 2008
Indian Rupee Ended Slightly Cheaper
The Indian rupee ended slightly cheaper at 42.72/73 against the greenback today on month-end dollar demand by oil companies, amid continued weakness in Asian stocks. At the Interbank Foreign Exchange (forex) market, the local currency fluctuated in a wide range of 42.7950 and 42.53 during the day after resuming weak at 42.7900/7950 a dollar from its last close of 42.71/72 a dollar. Dealers said the rupee attempted a smart rally and touched the day''s high of 42.53 in early trade due to heavy dollar selling by foreign banks. However, it failed to retain gains as oil companies stepped in to make month-end dollar purchases, even as equity markets drifted lower with foreign funds heavily unwinding stocks positions.
Tuesday, April 29, 2008
Indian Rupee At 40.16/17 Per Dollar
The Indian rupee on April 28 weakened by four paise to end at 40.16/17 per dollar on sustained demand for the greenback by oil refiners amid a fresh surge in global crude oil prices. Dealers said the market was cautious ahead of April 29''s announcement of annual credit policy by the Reserve Bank and the meeting of the US Federal Reserve on April 29-30. The domestic unit moved in a wide range of 40.1 and 40.2150 during the day after resuming on a promising note at 40.10/12 a dollar from its last close of 40.12/13.
Wednesday, March 12, 2008
Indian Exporters May Get Additional Concessions
New Delhi: Indian exporters likely to get additional concessions in this year''s annual supplement to the foreign trade policy 2004-09 so as to offset the impact of the rising rupee. The supplement is scheduled to be released in the first half of April this year.
Exporters were disappointed with Budget 2008-09 as it does not propose any specific measures to help them tide over the situation. In the April-January period of 2007-08, exports stood at $124.19 billion, an increase of 21.62 per cent from $102.12 billion during the year-ago period.
Exporters were disappointed with Budget 2008-09 as it does not propose any specific measures to help them tide over the situation. In the April-January period of 2007-08, exports stood at $124.19 billion, an increase of 21.62 per cent from $102.12 billion during the year-ago period.
Tuesday, February 5, 2008
Indian Economy To Grow At 8.75% This Fiscal: IMF
The International Monetary Fund has projected the Indian economy to grow at a rate 8.75 per cent this fiscal on the back of rising productivity and investment. Though the country''s favourable outlook attracts huge capital flows which help finance investment, it also poses a challenge to find a balance between exchange rate stability and financial openness, IMF Executive Directors said in their summary note. The IMF estimate comes in the wake of India revising upwards its growth estimates for the last fiscal to 9.6 per cent from earlier calculation of 9.4 per cent a few days ago and Finance Minister P Chidambaram exuding the confidence that the economy will grow close to nine per cent for the current fiscal. On the other hand, the Reserve Bank of India in its quarterly review of monetary policy has retained its estimate of at 8.5 per cent this fiscal, true to the conservative style of most central banks. The apex bank also maintained a status quo policy rates against market expectation of a reduction in key rates.
Saturday, February 2, 2008
Exports Up 16% In Dec'07; Meagre 2% Growth
NEW DELHI: India's exports grew by a healthy 16.04% in December 2007 in dollar terms but managed a paltry improvement of 2.54% in rupee terms, impacted by a strong domestic currency against the US dollar.
Exports went up to $12.31 billion in December 2007 amid exporters' concerns over slowdown in the US economy and appreciation in rupee against the dollar.
In rupee terms, exports were valued at Rs 48,569.64 crore, growing by just 2.54% in December 2007.
Imports during the month were valued at $17.68 billion, up 18.06%, from $14.97 billion in December 2006. In rupee terms, imports increased by 4.31% to Rs 69,731.56 crore in December.
For the April-December period of 2007-08, India's exports stood at $111.04 billion, registering an encouraging growth of 21.76% from $91.2 billion in the corresponding period of the previous fiscal.
India's trade deficit for April-December period of the current fiscal widened by about 35% to $57.82 billion from $42.85 billion in the year-ago period.
"The export figures are encouraging. The next three months - peak period for exporters - are likely to see exports in the range of $40 billion," Federation of Indian Export Organisations Director General said.
He said at the current rate, exports would be in the range of $145-150 billion for 2007-08, falling short of the $160 billion target set by the government.
Commerce Secretary Gopal Pillai maintained that India will be able to achieve exports worth $150 billion despite the US slowdown and rupee impact.
Sahai, however, said cut in the US interest rates would lead to further appreciation of the rupee which would impact exporters' margins.
The rupee has appreciated by about 15% against the dollar in the last one year impacting export growth, particularly of labour intensive sectors such as textiles, leather, marine products and handicrafts.
Imports for the April-December period of current fiscal grew 25.97% to $168.87 billion, compared to 134.05 billion in the year-ago period, according to official data released on Friday.
In rupee terms, exports grew by 7.74% in April-December 2007, while imports were up by 11.54%.
Oil imports during December 2007 were valued at $5.96 billion, up 23.78% from $4.81 billion in 2006. For the nine-month period of the current fiscal, oil imports were to the tune of $49.31 billion, 11.68% higher than $44.15 billion in the corresponding period of previous fiscal.
Non-oil imports during December 2007 were $11.71 billion, up 15.34% from $10.15 billion in December 2006. During April-December 2007, non-oil imports grew 32.99% to $119.55 billion as compared to $89.89 billion in the same period of previous fiscal.
Exports went up to $12.31 billion in December 2007 amid exporters' concerns over slowdown in the US economy and appreciation in rupee against the dollar.
In rupee terms, exports were valued at Rs 48,569.64 crore, growing by just 2.54% in December 2007.
Imports during the month were valued at $17.68 billion, up 18.06%, from $14.97 billion in December 2006. In rupee terms, imports increased by 4.31% to Rs 69,731.56 crore in December.
For the April-December period of 2007-08, India's exports stood at $111.04 billion, registering an encouraging growth of 21.76% from $91.2 billion in the corresponding period of the previous fiscal.
India's trade deficit for April-December period of the current fiscal widened by about 35% to $57.82 billion from $42.85 billion in the year-ago period.
"The export figures are encouraging. The next three months - peak period for exporters - are likely to see exports in the range of $40 billion," Federation of Indian Export Organisations Director General said.
He said at the current rate, exports would be in the range of $145-150 billion for 2007-08, falling short of the $160 billion target set by the government.
Commerce Secretary Gopal Pillai maintained that India will be able to achieve exports worth $150 billion despite the US slowdown and rupee impact.
Sahai, however, said cut in the US interest rates would lead to further appreciation of the rupee which would impact exporters' margins.
The rupee has appreciated by about 15% against the dollar in the last one year impacting export growth, particularly of labour intensive sectors such as textiles, leather, marine products and handicrafts.
Imports for the April-December period of current fiscal grew 25.97% to $168.87 billion, compared to 134.05 billion in the year-ago period, according to official data released on Friday.
In rupee terms, exports grew by 7.74% in April-December 2007, while imports were up by 11.54%.
Oil imports during December 2007 were valued at $5.96 billion, up 23.78% from $4.81 billion in 2006. For the nine-month period of the current fiscal, oil imports were to the tune of $49.31 billion, 11.68% higher than $44.15 billion in the corresponding period of previous fiscal.
Non-oil imports during December 2007 were $11.71 billion, up 15.34% from $10.15 billion in December 2006. During April-December 2007, non-oil imports grew 32.99% to $119.55 billion as compared to $89.89 billion in the same period of previous fiscal.
Thursday, January 31, 2008
India Hopes To Add $100 Bn To Forex Reserve In FY''08
New Delhi: At a time when managing capital flows is becoming a challenge for the authorities, the government on Jan 30 said it hopes to put in $100 billion to the forex reserves in the current financial year. Overall, India''s forex reserves stands at $284.8 billion for the week ended January 19.
Govt To Carry On Project Tiger In 11th Plan; Allots Rs 600 Crore
New Delhi: The government will continue with a central scheme called ''Project Tiger'' during the current 11th Plan and okayed an estimated Rs 600 crore for the purpose. According to Finance Minister P Chidambaram, the money would be used to rehabilitate people living in core area or critical tiger habitat and implement safeguard and retrofitting measures in the interest of wildlife conservation. He said the scheme would also rehabilitate and resettling denotified tribes involved in traditional hunting, and mainstreaming livelihood and wildlife concerns in forests outside tiger reserves.
The money would also be spent on establishing eight new tiger reserves in states like Tamil Nadu, Karnataka, Chhattisgarh and Assam, Chidambaram said. The government would also foster corridor conservation through restorative strategy to arrest fragmentation of habitats. The project also seeks to provide basic infrastructure for strengthening the National Tiger Conservation Authority and establishing a monitoring lab in the Wildlife Institute of India. A part of the outlay would go toward ensuring allowance to ministerial staff working in tiger reserves as well as to promote eco tourism.
The money would also be spent on establishing eight new tiger reserves in states like Tamil Nadu, Karnataka, Chhattisgarh and Assam, Chidambaram said. The government would also foster corridor conservation through restorative strategy to arrest fragmentation of habitats. The project also seeks to provide basic infrastructure for strengthening the National Tiger Conservation Authority and establishing a monitoring lab in the Wildlife Institute of India. A part of the outlay would go toward ensuring allowance to ministerial staff working in tiger reserves as well as to promote eco tourism.
Wednesday, January 30, 2008
RBI Keeps Rates Unchanged
The Reserve Bank of India has kept rates unchanged in its Credit Policy review on Tuesday. Cash Reserve Ratio (CRR) remains unchanged at 7.5 per cent, while the repo rate, the rate at which the RBI borrows from the banks, is held steady at 7.75 per cent. The bank rate and the reverse repo rates have also been held steady.
Announcing the Policy, RBI Governor Dr Y V Reddy stated that the policy endeavor would be to contain inflation close to five per cent in 2007-08. He also stated that liquidity management would assume priority in the conduct of monetary policy through appropriate and timely action. The policy review that seeks to condition inflationary expectations in the range of 4 - 4.5 per cent comes within days of Finance Minister P Chidambaram''s statement that he would be sunk in case there was a high inflation, along wit
h high economic growth.
Announcing the Policy, RBI Governor Dr Y V Reddy stated that the policy endeavor would be to contain inflation close to five per cent in 2007-08. He also stated that liquidity management would assume priority in the conduct of monetary policy through appropriate and timely action. The policy review that seeks to condition inflationary expectations in the range of 4 - 4.5 per cent comes within days of Finance Minister P Chidambaram''s statement that he would be sunk in case there was a high inflation, along wit
h high economic growth.Gold Scales New Peak Of Rs 11,920 In Delhi
Gold prices zoomed to a record high of Rs 11,920 per 10 gram in the bullion market in New Delhi on Tuesday on heavy buying influenced by strong global trend amid volatile stock markets. This is for the fifth day in a row that the prices of precious metal in the bullion in New Delhi are soaring. Traders said as the equity markets turned volatile, some of the investors shifted their funds toward bullion, considered a safe haven at the time of crises.
However, strong global trends remained the major driving force behind the current rally. Market watchers said stockists and jewellery fabricators rushed to buy the metal even at its current high levels as they feared prices might go up further and make their purchases in the marriage season tougher.
Standard gold and ornaments surged by Rs 80 each at Rs 11,920 and Rs 11,770 per 10 gram respectively. Sovereign was also higher by Rs.25 at at Rs.9300 per piece of eight gram, a level never seen before. Silver ready spurted by Rs 200 at Rs 20,800 per kilo and weekly-based delivery by Rs 210 at Rs 21,440 per kilo. Silver coins also rose by Rs 200 at Rs 25,700 for buying and Rs 25,800 for selling of 100 pieces.
In other Asian markets, gold and platinum traded at near records on speculation that Federal Reserve might cut its benchmark lending rate. Production getting hampered in South African mines also boosted gold sentiments. Silver was close to a 27-year high. The precious metal in global markets surge to record high of 929.84 an ounce stimulated trading sentiment in the region and helped the prices to go up in domestic markets.
However, strong global trends remained the major driving force behind the current rally. Market watchers said stockists and jewellery fabricators rushed to buy the metal even at its current high levels as they feared prices might go up further and make their purchases in the marriage season tougher.
Standard gold and ornaments surged by Rs 80 each at Rs 11,920 and Rs 11,770 per 10 gram respectively. Sovereign was also higher by Rs.25 at at Rs.9300 per piece of eight gram, a level never seen before. Silver ready spurted by Rs 200 at Rs 20,800 per kilo and weekly-based delivery by Rs 210 at Rs 21,440 per kilo. Silver coins also rose by Rs 200 at Rs 25,700 for buying and Rs 25,800 for selling of 100 pieces.
In other Asian markets, gold and platinum traded at near records on speculation that Federal Reserve might cut its benchmark lending rate. Production getting hampered in South African mines also boosted gold sentiments. Silver was close to a 27-year high. The precious metal in global markets surge to record high of 929.84 an ounce stimulated trading sentiment in the region and helped the prices to go up in domestic markets.
Friday, January 25, 2008
Indian Economy To Grow At 8.5%: FM
The Indian economy is set to grow at a rate of 8.5 per cent during 2008-09 after factoring in the volatility of the current global financial turbulence, Finance Minister P Chidambaram said at the World Economic Forum on Jan 24. Chidambaram, who is leading the Indian delegation to the annual event, said that India expected the turbulence to continue for a few months but added that the country was not in favour of imposing capital controls to dampen capital inflows. The move by the US government to lower interest rates will increase the differential with the Indian rate, which could see greater capital inflows into the Indian market, he said.
Thursday, January 17, 2008
Karnataka To Mobilize $200 Mn Loan For Road Projects
Chennai/ Bangalore: The Karnataka government is planning to mop up $200 million from the Japanese Development Bank to improve them with the condition of roads in the state, particularly in the interior areas, deteriorating for lack of maintenance.
The state has a network of 37,000 km of major district roads (MDRs) which need maintenance immediate. Most of these roads fall under the purview of the respective district administrations and the public works department. The roads could not be improved for lack of funds all these years though they were supposed to be maintained every year. On the progress of Karnataka State Highways Development programme, Krishna said the state had successfully completed the first phase utilising the Rs 1,000 crore loan sanctioned by the World Bank. The project will be implemented in three phases by the state. Krishna also announced the launch of electronic payment system for contractors and agencies involved in the National Highways road construction projects.
The state has a network of 37,000 km of major district roads (MDRs) which need maintenance immediate. Most of these roads fall under the purview of the respective district administrations and the public works department. The roads could not be improved for lack of funds all these years though they were supposed to be maintained every year. On the progress of Karnataka State Highways Development programme, Krishna said the state had successfully completed the first phase utilising the Rs 1,000 crore loan sanctioned by the World Bank. The project will be implemented in three phases by the state. Krishna also announced the launch of electronic payment system for contractors and agencies involved in the National Highways road construction projects.
Rupee Weakens Against US Dollar
The rupee weakened against the US currency and ended at 39.29/30, cheaper by three paisa from the close of 39.26/27 on Jan 15, following the central bank''s intervention to mitigate the currency''s surge. The local currency, however, put up a strong resistance and eased slightly against dollar due to heavy capital inflow in the ongoing mega public offer of Reliance Power Ltd.
In quiet trade at the Interbank Foreign Exchange (forex) market, the Indian unit remained trapped in a small range of 39.2450 and 39.3000 during the day after resuming barely changed at 39.28/29 a dollar. The Reserve Bank of India (RBI) aggresively bought dollars to offset any positive impact on the rupee of strong portfolio inflows into primary market, forex dealers said. The central bank was keen to block the rupee''s surge on the back of inflows into the Asia''s fast-growing economy.
A world-wide stocks plunge, however, weighed on the rupee sentiment. Indian benchmark Sensex ended 383 points or about 2.0 per cent down on growing worries about the US recession while Asian indices fell in a range of 3.4 to 5.4 per cent. The dollar remained weak against major world currencies in overseas markets.
The RBI, however, fixed the reference rate for the US currency at Rs 39.27 per dollar and for the single European unit at Rs 58.29 per euro. The rupee premiums on forward dollar ended lower due to fresh receiving by exporters.The benchmark six-month forward dollar premiums payable in June ended at 35 - 37 paise, down from 39 - 41 paise on Tuesday and the far-forward maturing in December ended weak at 66 - 68 paise from 68 - 70 paise previously.
In quiet trade at the Interbank Foreign Exchange (forex) market, the Indian unit remained trapped in a small range of 39.2450 and 39.3000 during the day after resuming barely changed at 39.28/29 a dollar. The Reserve Bank of India (RBI) aggresively bought dollars to offset any positive impact on the rupee of strong portfolio inflows into primary market, forex dealers said. The central bank was keen to block the rupee''s surge on the back of inflows into the Asia''s fast-growing economy.
A world-wide stocks plunge, however, weighed on the rupee sentiment. Indian benchmark Sensex ended 383 points or about 2.0 per cent down on growing worries about the US recession while Asian indices fell in a range of 3.4 to 5.4 per cent. The dollar remained weak against major world currencies in overseas markets.
The RBI, however, fixed the reference rate for the US currency at Rs 39.27 per dollar and for the single European unit at Rs 58.29 per euro. The rupee premiums on forward dollar ended lower due to fresh receiving by exporters.The benchmark six-month forward dollar premiums payable in June ended at 35 - 37 paise, down from 39 - 41 paise on Tuesday and the far-forward maturing in December ended weak at 66 - 68 paise from 68 - 70 paise previously.
Subscribe to:
Posts (Atom)
