UK Asks India To Set Up Financial, Legal Sectors

Chennai: The British Deputy High Commissioner in Southern India, Mr Micheal Connor, on Aug 4, made a pitch for opening up India''s financial and legal sectors. Lloyd''s of London is one of the largest and most successful insurance companies in the world, but is currently prevented from operating in India. Foreign joint venture partners are limited to 26 per cent in their shareholding. In banking, there are still regulatory barriers. Higher ceilings on foreign shareholding in banks would encourage transfer of expertise. Mr Connor dwelt in greater detail on the issue of FDI in legal services, mentioning at the outset that British lawyers have no intention of practising at Indian courts. Mr Connor said that the BPO companies of Standard Chartered Bank (SCOPE) and HSBC, both British companies, employed about 5,000 and 10,000 people respectively. Mr Connor also asked the retail sector to be opened up for FDI.

Israel Proposes Free Trade Pact With India

Israel is keen on forming a free trade agreement with India on the back of robust economic relations between the two countries that began in 1992. The Israeli asked to involve Israeli companies in infrastructure development in India for the forthcoming Commonwealth Games in 2010. Israel is keen on setting up a trade office in Bangalore apart from the one in Mumbai to address the growing demand for exporters from both countries. Israel was also keen on sharing India''s experience in inclusive growth on the upgradation and rationalisation of traditional industries in India as Israel has a large number of unemployed people.

Booming India creating jobs In US

In recent times a rapidly growing Indian economy has actually meant job opportunities for many in the US.In the past outsourcing has been a big political debate in the US.Those who opposed it argued that countries like India, a preferred outsourcing destination for US companies, were eating into the American job market. But that''s changing now. The President of Boeing commercial Scott Carson hosted a private party on a luxury yacht in Seattle’s lake Washington. A gesture for a very special guest of honour Air India. After ordering 68 planes estimated to be around $7 billion, Air India is now Boeing''s most valued customer. This is the biggest ever order by any airline to Boeing in the past few years, said V Thulasidas, Air India CMD. Air India is a special customer also because it will be one of the first to use the 787 Dreamliner, the most modern plane from the Boeing’s table.

Net Direct Tax Mop Up Grow 46% In April-July

The Centre''s net direct tax revenues collections in the first four months of the current fiscal reported a 45.6 per cent increase to Rs 53,397 crore. In April-July 2007, the growth in gross direct tax mop ups has also been robust at about 28 per cent to Rs 65,236 crore.

While net corporation tax collections recorded a 23.3 per cent increase to Rs 30,288 crore, the net personal income-tax collections rose by 39.3 per cent to Rs 20,066 crore.

Official sources said that fringe benefit tax collections stood at Rs 971 crore. While the securities transaction tax collections increased by 16.9 per cent to Rs 1,831 crore, banking cash transaction tax collections stood at Rs 201 crore. For fiscal 2007-08, the budget estimate for direct taxes has been pegged at Rs 2,67,400 crore. This is against the budget estimate of Rs 2,10,419 crore for fiscal 2006-07. The actual mop up in direct taxes in fiscal 2006-07 stood at Rs 2,29,181 crore.

Kerala Eyes Investment From Taiwan

As part of the efforts to provide support to its growing software industry, Kerala is trying to attract companies from Taiwan to invest in the electronic hardware sector in the State. A team of Government officials is leaving for Taiwan on Friday for showcasing the State''s ''inherent strengths'' in the electronics field at seminars and interactive sessions there over the next one week. A group of local entrepreneurs are also part of the team, according to officials in the Industries Department.

They pointed out that South India is a major hub of software industry in the world and Kerala has set in motion major policy initiatives to keep pace with other States in the region. However, the electronic hardware sector has yet to rise to the desired levels so as to complement the software industry''s growth.The officials said that Taiwan has emerged as the global leader in the manufacture of electronic hardware, especially computer chips, overtaking other countries such as Japan and China.

An inherent strength of Kerala in the electronics sector is that it was the first in the country to promote a State electronics development corporation (Keltron), a model that was later emulated by many other States.

Rupee Up 4 Paise Against Dollar

Mumbai: The rupee appreciated by about four paise on August 2 on modest gain in domestic stock markets. The home currency opened at 40.41/43 and saw an intra-day low of 40.47/48 and a high of 40.39 before ending the day at 40.41/42, up from the previous close of 40.45/46. Market participants expect the rupee to appreciate further. In forwards, the six-month premia closed at 1.95 per cent (1.89 per cent) and the 12-month at 1.91 per cent (1.84 per cent).

FII Money To Stay Despite Volatility

Global markets are reeling under selling pressure on subprime woes and yen carry trade unwinding. Despite this uncertainty, confidence on Dalal Street has not been shaken.

On an exclusive NDTV brokerage poll, 86 per cent of the brokerages say that this is an opportune time to take fresh position in stock markets. However, 14 per cent has a word of caution.

Foreign institutional investors including hedge funds have unwound massive position in past few trading sessions. However, 54 per cent of the brokerages believe FII money is to stay in India on its robust economic growth story.The Sensex has broken a very important psychological level of 15,000 mark. However, 87 per cent of the brokerages believe that there won''t be any major correction from current levels.

But 92 per cent of the brokerages say that the volatility in the markets will stay in absence of any clear direction.

The million-dollar question now be, should one buy into equities? About 63 per cent of the brokerages are recommending to their clients for a buy and the value they are seeing post correction is in mid-caps.

There are brave-hearts on Dalal Street, brokerages are sticking their neck out in giving year-end targets. Around 93 per cent of the brokerages believe that by year-end Sensex should touch 16,000 mark on corporate earnings growth and India growth story.

June Export Growth Slows Down To 14%

Hit hard by the appreciating rupee, India''s export growth is tapering off and stood at 14.05 per cent in June 2007, considerably down from the 23.06 per cent growth rate at the start of the fiscal in April.The export growth rate was down in May at 18.07 per cent, slowing further to 14.06 per cent in June, when exports stood at $11.87 billion against $10.40 billion in the year-ago period.

This has brought down the overall increase in exports in the first quarter of April-June to 18.11 per cent, which is much below the 28 per cent growth targeted for the current financial year. In 2007-08, the government has targeted exports of $160 billion against $125 billion in the previous fiscal.

Impact in July

Exports for the April-June period grew by 18.11 per cent to $34.3 billion compared to $29 billion in the corresponding period of last fiscal. Imports during June grew 36.68 per cent to $19.19 billion compared to $14.04 billion in the same month in 2006.

For the April-June period of 2007-08, imports stood at $54.9 billion, a growth of 34.3 per cent from $40.8 billion in the year ago period.

India''s trade deficit for June 2007 has more than doubled to $7.3 billion from $3.6 billion in the same month of 2006. Trade deficit for April-June widened to $20.60 billion from $11.84 billion in the corresponding quarter of 2006-07.

Oil imports during June stood at $5.66 billion, up 9.85 per cent from the $5.15 billion in the same month of the previous fiscal. For April-June 2007, oil imports were valued at $14.83 billion, up 4.21 per cent from the corresponding period last fiscal.Non-oil imports during the month are valued at $13.53 billion, which is 52.25 per cent higher than the $8.88 billion imports in June 2006. During the quarter, non-oil imports grew 50.36 per cent to $40.07 billion.

India''s Trade Deficit Widens In June As Imports Surge

India''s trade deficit in June widened to $7.33 billion, data showed on Wednesday, and an analyst said growing demand for imports, including oil, in a fast-growing economy could lead it higher in the months ahead. Imports surged an annual 36.7 percent to $19.2 billion in June, while exports rose by a slower 14 percent from a year earlier to $11.87 billion, hit by a rising rupee.

The economy is growing at a fast pace and industry is doing well -- that means more imports. Exports have not performed well, mainly due to currency appreciation, said D.K. Joshi, an economist with domestic rating agency Crisil.With the rise in oil prices, the trade deficit may widen in the coming months, he said, adding buoyant services exports would maintain a favourable balance of payments.The deficit was $20.61 billion in the first quarter of the fiscal year that began in April, wider than $11.84 billion in the year-ago period. It was $3.64 billion in June a year ago.

During April-June, exports rose by 18.11 percent to $34.3 billion as the rupee gained about 6.75 percent against the dollar and squeezed the margins of exporters.

Last month, the Indian government announced a $320 million relief package for exporters hit by currency appreciation, including a cut in bank lending rates and an increase in duty refund rates.