Govt Promises Help To Deal With The Fall In Exports - June 04, 2009

The exports which fell 30 per cent in May extends the fall to eighth month in a row and in order to deal with this, the government yesterday reviewed the situation with top exporters promising them incentives. "We will be giving incentives so that Indian exports will become competitive," said Anand Sharma, the Commerce and Industry Minister after meeting the heads of different export organizations in New Delhi.

As per the quick estimates, given by Commerce Secretary G K Pillai, India''s exports plunged by 30 per cent in May. The final figures will be released on July 1. The exports in April 2009-10 fell the most in 14 years by 33.2 per cent to $10.74 billion from $16.08 billion a year ago.

Sharma said he would be meeting Finance Minister Pranab Mukherjee very soon and make sector-specific recommendations as well as policy measures.

Investment Flows May Possibly Double During Financial Year - June 04, 2009

Riding on an improved sentiment for the India'' economic growth, the capital flows to the country will almost double to $33.9 billion (Rs 1,59,003 crore) in the current fiscal as against an estimated $17.3 billion in 2008-09, says Morgan Stanley. "We expect improvement in capital flows to $33.9 billion in FY2010 and $41.3 billion in FY2011 compared to $17.3 billion (estimated) in FY2009," Morgan Stanley economist Chetan Ahya said in a report.

The report stated that clear decisive mandate for the Congress-led UPA has ignited the hopes that the new government would bring in reforms which may help boost the country''s economic growth.

The report also stated that in line with the deterioration in the global capital market environment, the capital inflows into the country fell during the December 2007 quarter, despite the attractive long-term investment story.

Exporters Demand Incentives From Investment Agency - June 04, 2009

Exporters today told Finance Minister Pranab Mukherjee that exports from the country could reach the $200-billion mark in 2010, if they will be provided a stimulus package covering tax breaks, market development incentives and cheaper credit. A Sakthivel, president of federation of Indian Export Organisations said after meeting finance minister "Our requirements need to be met so that competitiveness increases."

In the pre-Budget meeting, the exporters called for some demands include exemption from fringe benefit tax as well as faster refunds of service tax. Further they should be provided exports-related credit with an interest rate of 7%.

Moreover, exporters proposed a Rs 5,000-crore fund, which could be used to market Indian products in emerging overseas markets like East Europe, Latin America or Africa.

Government Clears 9 SEZs, By And Large IT - June 03, 2009

The government on Tuesday gave a green signal to the fresh proposals for setting up the special economic zones. However, most of the proposals related to IT and ITES followed by the bio-technology sector.

The Board of Approval in the Commerce Ministry gave its nod to Gulf Oil Corporation as well as L & T, Emaar MGF and MM Tech to set up IT/ITES tax-free enclave in Bangalore, Mumbai, and Chenagamanadu (Kerala), respectively. Moreover, the board also sanctioned three bio-technology SEZs for Bangalore, Anantpur (Andhra Pradesh) and Ratnagiri (Maharashtra).

However, two multi-product and multi-services SEZs would come up at Kotamandal in Andhra Pradesh and Nasik in Maharashtra.

Gold Cut Down Through 110 For Each Ten Grams - June 03, 2009

The gold prices fell by Rs 110 per ten grams to Rs 14,855 on the bullion market by snapping the four-day winning streak on Tuesday due to lack of demand at higher levels. Meanwhile, the silver also followed the same trend as its prices also reacted downwards after gaining by Rs 1,060 or 4.67 per cent per kilo in last four sessions on fresh stockists offerings.

The Gold in Europe edged higher as the dealers remained wary about the dollar outlook that hit its lowest level this year in the last session. In New York, the spot gold was quoted at $975.40 an ounce in early trade as against $973.95 an ounce late.

In the domestic arena, the standard gold (99.5 purity) dropped by Rs 110 per ten grams to Rs 14,855 as against Rs 14,965 the previous day.

Moreover, the pure gold (99.9 purity) also moved down by Rs 115 per ten grams to Rs 14,920 from Rs 15,035 yesterday. Silver ready (999 fineness) declined by Rs 120 per kilo to Rs 23,620 from Rs 23,740.

Rupee Stopped Up Weaker By The Side Of 47.01 And 02 - June 03, 2009

The rupee on Tuesday closed five paise cheaper at 47.01/02 against the US currency amid sustained capital inflows in bullish equity market. The dollar recovered smartly after hitting the year''s lowest level against the major currencies of the world, following the signs of recovery in the global economy.

In the last four days, the rupee had gained 96 paise or 2.0 per cent, taking advantage of the weakness in the US dollar. At the Interbank Foreign Exchange (forex) market, the rupee tumbled to a low of 47.24 a dollar as local stocks fell sharply in afternoon trade.

The domestic currency moved in a range of 46.91 and 47.24 during the day after resuming at 47.05/06 a dollar from its last close of 46.96/97 a dollar.

The rupee got the support from the expectations of heavy capital inflows as political stability is expected help the new government to push through speedy economic reforms.

Financial Firms Ups GDP Projections, Expect Another Stimulus - June 02, 2009

India''s economic growth forecast have revised upwards to 6.3 per cent this fiscal by the leading global financial firms on the back of possible fiscal stimulus in the Budget and more-than-expected investment in the country. Bank of America Securities-Merrill Lynch raised its growth forecast to 6.3 per cent as against 5.3 per cent for the current fiscal.

Moreover, BAS-ML has also revised the growth projection of the country to 7.3 per cent for the next fiscal as against 7.1 per cent earlier.

Besides this, it also said that the convincing re-election of the UPA has opened the door for disinvestment in public sector units to the tune of 0.5 per cent of GDP.

Moreover, Nomura also revised up the real GDP growth estimate for FY''10 to 6.3 y-o-y from 5.3 per cent.

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.

Macquarie Increase India Development Toward Anticipate - June 02, 2009

After a better than expected growth of the economy in the March quarter, Macquarie Research has raised its growth forecast for 2009/10 to 7 per cent and for 20010/11 to 7.5 per cent, it said in a recent note. Earlier, Macquarie had estimate growth of 5.5 per cent for 2009/10 and 6.5 per cent for 2010/11.

On Friday, the data showed the Indian economy grew 5.8 per cent from a year earlier in January-March, matching the upwardly revised rate in the previous quarter.

The growth for October-December was revised from 5.3 per cent. In the 2008/09 fiscal year to March 31, India''s economy grew 6.7 per cent, its weakest in six years and well below around 9 per cent of the previous three years.

The note also said that India''s low dependence on exports along with an aggressive double-barrelled fiscal and monetary response softened the blow to the economy from the global financing challenges.

Moreover it also said that the political risk is likely to decline and Prime Minister Manmohan Singh would be able to undertake more reforms than he did in his previous term.