Posts
"As the global economy evolves and works its way through the present global financial and economic crisis, BRIC are a factor of stability and growth. This was already evident in our role during the G20 deliberations."
Also Read :
-Highest paid CEO's of world
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
The two-day conference, in which eminent experts from the four countries are participating, has been organised by the Observer Research Foundation, a New Delhi-headquartered public policy think tank. The preparatory meeting is expected to set the tone for the first BRIC summit to be held in Yekaterinburg next month.
Underlining that the world was on the cusp of a new type of multi-polarity, Menon said it was "becoming clearer and clearer that international decision-making on global economic issues must necessarily be democratised to reflect present realities".
Combined with our growing middle classes and the young populations that most of us enjoy, the BRIC can hope to be a factor of growth and stability in the world economy for decades to come, he said.
BRIC accounts for 40 percent of the world's population, 25.9 percent of its total geographic area, and 40 percent of global GDP. According to Goldman Sachs, BRIC can become collectively bigger than the G7 by 2035.
Menon also stressed on the need for BRIC to make more efforts to add value to their partnership and make their collective voice heard on important international issues. "What we see is a situation where the major powers simultaneously compete and cooperate with each other, each with all the others, to a greater or lesser degree."
Chinese Ambassador to India Zhang Yan and Deputy Chief of Mission of Brazil to India Jose Carlos Fonseca Jr were also present at the inauguration of the conference. "BRIC is a platform for four countries to build consensus and achieve win-win situation. Like any countries, four countries may have differences in their focus, objectives and even interests on various issues," the Chinese envoy said.
Also Read :
-Highest paid CEO's of world
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
"But interaction within the framework of BRIC can provide the four countries with opportunities to coordinate and cooperate with each other to build synergy between them," he said, while describing BRIC as "guardian of the interests of developing countries".
The Brazilian diplomat stressed on the need for the four countries to strengthen their bilateral relationships that will enable them to be more effectives collectively on the international stage.
Wednesday, May 13, 2009
BRIC nations providing stability to world economy
Monday, May 11, 2009
Industrial output down 0.5 percent yoy
India's industrial output likely shrunk in March from a year earlier, its third fall in four months, as the global economic slowdown hit exports and domestic demand remained soft, a poll showed.
Also Read :
-Highest paid CEO's of world
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
The median forecast in the poll of 13 analysts was for an annual decline of 0.5 in the index of industrial production (IIP) in March, the final month of the 2008/09 fiscal year.
Output fell an annual 1.2 per cent in February, according to provisional figures. Output rose 0.4 per cent in January and fell 0.6 per cent in December.
Also Read :
-Highest paid CEO's of world
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
"It's going to be flattish, near the trough. Exports remain weak and domestic demand is also subdued," said D.K. Joshi, principal economist at rating agency Crisil.
Some economists expect industrial output grew less than 4 per cent in India's fiscal year that just ended in March, less than half the 8.1 per cent growth rate of the previous year.
Economists expect output growth to improve in coming months as government stimulus measures and aggressive rates cuts by the central bank take hold, with demand for consumer goods, vehicles and building materials showing signs of picking up.
Macquarie Securities said industrial growth may reverse its weaker trend from April as motor vehicles, cement and steel are already showing signs of increased activity.
Also Read :
-Highest paid CEO's of world
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
A survey of purchasing managers showed expansion of manufacturing activities in April, its first uptick in five months.
Car sales, a gauge of consumer demand, rose 4.2 per cent in April from a year earlier, but sales of trucks and buses were down 11.3 per cent.
India's factory output sharply slowed last year as high borrowing costs and the global credit crunch forced firms to delay expansion plans and then cut output as demand for goods in overseas markets fell sharply.
Policymakers say the economy may have grown less than 7 per cent in 2008/09, slowing sharply from 9 per cent or more seen in previous three years. The central bank expects the growth rate to slow further to 6 per cent in 2009/10, which would be the weakest in seven years.
India grew 6.5 percent in FY09 , inflation to fall further - PM
India's economy grew an estimated 6.5 per cent in the just-ended 2008/09 fiscal year and consumer price inflation is expected to moderate in five to six months, Prime Minister Manmohan Singh said on Monday.
Also Read :
-Highest paid CEO's of world
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
A global economic slump and slowdown in domestic demand have weakened economic growth in Asia's third largest economy, but falls in commodity prices have helped moderate prices.
"The wholesale price inflation is already down to around 1 per cent and there is a time lag for the consumer price inflation to also fall," Singh told a news conference at Ludhiana. "But I am sure CPI inflation will moderate in five to six months," he said at the last lap of a month-long election campaign in the northern state of Punjab.
Also Read :
-Highest paid CEO's of world
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
India's wholesale price index rose 0.70 per cent in the 12 months to April 25, above the previous week's annual rise of 0.57 per cent.
Sunday, May 10, 2009
World's top 10 most valuable brands list
Top 10 brands of world - Here is the list of top 10 biggest and most valuable brands of the 21st century. and most of the technology companies are present in the top ten spots.
Ranked 1 :
Company: Google
Value: $101.4 billion
Ranked 2 :
Company: Microsoft
Value: $77.3 billion
Also Read :
-Highest paid CEO's of world
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
Ranked 3 :
Company: Coca Cola
Value: $68.5 billion
Ranked 4 :
Company: IBM
Value: $67.5 billion
Ranked 5 :
Company: McDonald's
Value: $67.3 billion
Ranked 6 :
Company: Apple Inc
Value: $63.9 billion
Ranked 7 :
Company: China Mobile
Value: $62.2 billion
Ranked 8 :
Company: Energy major GE
Value: $59.9 billion
Also Read :
-Highest paid CEO's of world
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
Ranked 9 :
Company: Vodafone
Vaule: $50.2 billion
Ranked 10 :
Company: Marlboro
Value: 50.1 billion
Cheer India - Tata's more reputed then Google and microsoft
(10/may/2009 Indian Cos updates) - Among Indian companies, Tatas are followed by SBI (29), Infosys (39), Larsen & Toubro (47) and Maruti Suzuki (49th). There are 22 other Indian companies on the list of 600 largest companies, ranked in terms of their reputation.
"Corporate India has the best reputed companies. Of the 27 Indian companies ranked among the 600 largest in the world, almost 90 per cent received scores above the global mean, with five ranking among the Top 50," the Reputation Institute said in its annual study for 2009.
Also Read :
-Highest paid CEO's of world
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
Only the US had more number of companies in the top-50 (17 companies), the report noted. In terms of overall presence also, the US had five times the number of companies in the list than India. The list is made on the basis of admiration, trust and good feeling that consumers have towards a company.
Other Indian companies on the list include, Hindustan Unilever (70th rank), ITC (96), Canara Bank (103), HPCL (112), Indian Oil (113), Wipro (117), Reliance Group (133), Mahindra & Mahindra (138), Bharti Airtel (164), Bank of Baroda (175), BPCL (176) and Punjab National Bank (178).
The report did not clarify whether the Reliance group means the Mukesh Ambani Group or Anil Ambani group of companies. The report revealed that corporate trust is higher in the emerging markets, while companies in industrialised markets are trusted less.
"Proportionally, the largest companies in Brazil, Russia, India and China (BRIC) enjoy a stronger emotional connection with consumers than the largest companies in the industrialized world," it added.
Out of the 289 companies from the US, Japan, the UK, France and Germany, 45 per cent have reputations below the global average, while only 34 per cent of the 142 companies from BRIC nations have below-average reputations, with Chinese companies dragging down the BRIC average substantially.
Industrial and Commercial Bank of China saw the largest gain in reputation, 16.38 points from 2008 to 2009, while AIG lost the most reputation capital with a drop of 27.52 points.
Also Read :
-Highest paid CEO's of world
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
Internet giant Google has been ranked at the 23rd position, while Microsoft grabbed the 30th rank and Walt Disney was at 21st place. Nokia is at 45th, PepsiCo is 46th and GE is ranked 50th. In 2008, Toyota and Google were number one and two, they now rank 59th and 23rd, respectively.
Wednesday, May 6, 2009
Inflation at 0.65 percent on April 25, 2009
(Inflation Updates - April 2009) - Annual inflation rate is expected to have risen for the third consecutive week in late April, because of a sustained increase in food, mineral and manufacturing prices, a poll showed on Wednesday.
The median forecast of 11 analysts was for 0.65 per cent rise in the wholesale price index in the 12 months to April 25, up from 0.57 per cent rise the previous week.
Also Read :
-Highest paid CEO's of world
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
"Inflation is expected to rise largely due to the general rise in food prices. Inflation falling below zero per cent has been postponed for a while now, may be until early June," said Deepali Bhargava, an economist with ING Vysya Bank said.
The index had been on a downward trend since last September, after a fall in global commodity prices, but steadied in March and has moved upward in the past two readings.
The weekly wholesale price index is more closely watched than the monthly consumer price index (CPI) because it includes more products and is published on a more frequent basis.
Tuesday, May 5, 2009
RBI moves $5.7 bn to Indian government
(5-5-09 - RBI news) - The Reserve Bank of India said today it had transferred 280 billion rupees ($5.7 billion) from its intervention bonds to the government, a move that would ease the pressure on record market borrowings planned for 2009/10.
Also Read :
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
The RBI has taken a series of steps to ensure the government's net borrowing plan of 3.09 trillion rupees in the fiscal year that began on April 1 would go through smoothly without disrupting markets and sending yields shooting up.
The government had borrowed a net 3.02 trillion rupees in 2008/09.
The 10-year bond yield briefly ticked 1 basis points lower to 6.25 percent on the announcement. It has dropped more than 100 basis points since hitting a four-month high of 7.37 percent in mid-March.
The Reserve Bank of India said the transfer, which was made on May 2, would form part of the government's borrowing plan for 2009/10. It aims to move a total of 330 billion rupees from the market stabilisation scheme (MSS) in this year.
Also Read :
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
The outstanding amount under the MSS account was 427.73 billion rupees on May 2, the RBI said. It has also bought back federal bonds in recent weeks to ensure adequate investor appetite for new auctions.
In early March, the central bank had given 120 billion rupees from the MSS account to the government to meet a sudden surge of borrowings in the closing weeks of the 2008/09 fiscal year.
Monday, May 4, 2009
RBI offers 600 bn rupees at special repo
The Reserve Bank of India said it would conduct a special repo auction for 600 billion rupees on Monday. The reversal of the auction will be on May 18, it said in a statement.
The special repo facility was introduced on Oct. 14, 2008 on a daily basis, offering 200 billion rupees to meet liquidity needs of mutual funds.
Also Read :
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
The central bank later increased the facility to 600 billion rupees to include liquidity needs of non-banking financial companies and housing finance companies. At its policy review on April 21, the central bank said the auction will be conducted on a weekly basis every Monday till March 2010.
posted under - RBI updates, indian economy updates, Reserve Bank of India, RBI,
Economy poised for a rebound
The worst is over and the economy looks set for a rebound. This may sound contra-intuitive after dire predictions of a long and deep
slowdown, but economists and investment bankers interviewed by TOI see a revival as early as September, or latest by December. All of them see growth riding on the back of domestic demand rather than overseas business but caution that some sectors such as IT may take a little longer.
Also Read :
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
The pace of rebound being projected ranges from an optimistic 8% of GDP to a cautious 6-7% in the last quarter. For the full fiscal, there's consensus on 6.5-7% except a CII forecast that pegged it at 6-6.5%. But a word of caution here will not be out of place. These figures could still go off the mark as the signs may be deceptive. This is just like when the specialists failed to see through the boom to see the bust coming.
"Green shoots of growth are showing in some sectors and we can certainly see a sustainable upward movement by the September-October busy season. Summer is lean period as activities usually slow down before picking up in September... or more in October," Ficci secretary-general Amit Mitra said.
Suresh Tendulkar, chairman of PM's Economic Advisory Council, was more optimistic and said recovery had started. "There have been some pressure on the bottomline and profit growth may not be as high as expected. But the way revenues have grown, it shows revival has started," he said.
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
All of them identified infrastructure as the engine, driving demand in steel, cement and other manufactured items. "Infrastructure will spur the drawdown on inventories. That's happened in cement and is starting to happen in steel," said the investment banker.
Mahajan sees agriculture in a support role. "It will prompt rural demand but since there's a rigidity in the sector, it is not like the farm sector will carry the economy as a whole. A good monsoon and a good crop will certainly help the economic revival but that will not be the sole driver. After all, you already have good rural demand."
Mitra said steel and cement signified some turnaround in producer side. "FMCG never suffered. Activities in small housing are coming back. All these can be sustained if interest rates come down... projects become viable, start getting off the ground and (with low interest) propel consumer side interest."
Thursday, April 30, 2009
Indian Cos Mergers and acquisitions at 4 year low
(Indian Economy Updates) - Mergers and acquisitions involving Indian firms in 2009 so far have been the lowest in four years for comparable periods, touching just $7.4 billions, thanks to the global economic slowdown.
M&A volume of $7.4 billion represents a massive 51 per cent decline from the corresponding period a year ago, global deal tracking firm Dealogic said.
Also Read :
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
Out of $7.4-billion M&A deals involving Indian firms, inbound deals amounted to $1.6 billion where foreign firms bought stake in Indian companies.
"Inbound cross-border M&A fell to $1.6 billion via 70 deals so far this year, down 77 per cent from last year. The US remained the biggest investor in Indian firms with $483 million via 21 deals," Dealogic added.
Outbound M&A activity fell drastically to just $334 million through 34 deals, a 96 per cent fall from the same period last year. The US was the most targeted nation as M&As worth $157 million were carried out through 10 deals, compared to $1.6 billion via 29 deals last year to date.
Also Read :
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
The oil and gas sector was the most active segment this year. The space cornered as many as six deals worth $2.1 billion. Besides the largest M&A transaction -- Reliance Industries' open offer to acquire the remaining 25 per cent of Reliance Petroleum for $1.7 billion also happened in this section.
The all-share merger deal valued at about Rs 8,500 crore between the two Mukesh Ambani group firms RIL and RPL has become probably the 10th-biggest ever for the country and the first billion-dollar deal this year.
According to Dealogic, Citi emerged as the top adviser on Indian M&A with $3.2 billion via three deals. Kotak Mahindra Bank followed suit with $2.3 billion through two deals and Morgan Stanley is in the third place with $2 billion via two transactions.
The top two India targeted deals were Reliance Industries' 25 per cent stake acquisition in Reliance Petroleum for $1,688 million and Quippo Telecom Infrastructure's 49 per cent stake acquisition in Wireless II Infoservices for $1296 million.
indian Exports to US fell 11.5 perc since recession news came in
(Indian Exports) - India's exports to the US, the single largest market for local exporters, dropped 11.5% during October'08-February'09, as per a study by industry chamber FICCI. The study also revealed that India has lagged behind other competing countries such as China, South Korea and Brazil, that export to the US.
This has come about even as US-bound exports from Ireland, Indonesia and Vietnam have grown in the range of 3-12% during the same five month period. Although exports from China, Korea and Brazil have also dropped, India has fared the worst, as per FICCI. But India outperformed Malaysia, Taiwan, Thailand, Russia and Singapore for the period.
Also Read :
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
In the first two months of 2009, Indian exports to the US dropped 23%, much more than the fourth quarter of 2008, indicating a worsening situation. In the previous quarter (July-September 2008) exports actually grew 14%.
The sectors worst affected by the decline in exports to US include gems & jewellery, textiles & apparel, pharmaceuticals, auto & auto components, marine products and non-ferrous metals. In contrast, chemicals, machinery, iron & steel, instruments, leather, plastics, agro-items and processed food saw higher exports.
Also Read :
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
India's exports of machinery & parts grew 19% to $1.2 billion against a 15.4% decline in US global imports of this category. Similarly chemicals export increased over 14% to $974 million even as US chemical imports from all countries put together declined 1.5% for the period. Exports of iron & steel from India matched the 14% rise in US global imports of the products.
The FICCI study observed that in two categories India has lost some share of US imports to competitor countries. In textiles & apparel, Bangladesh and Vietnam have expanded their exports 18% and 9% respectively when Indian exports fell 6.5%. Similarly, India's pharmaceuticals exports declined 37% at a time when such exports from China, Israel and South Korea moved up 27-41%.
Wednesday, April 29, 2009
US economy slid at 6.1% in first quarter
(29/4/2009 - US Economy Updates) - The US economy contracted at a 6.1 percent annual pace in the first quarter of 2009, the government said Wednesday, signaling little improvement in a deep recession.
The Commerce Department's first estimate of gross domestic product (GDP) was a disappointment to forecasters expecting a 4.7 percent decline, and marked only a marginal improvement over the 6.3 percent drop in the fourth quarter of 2008.
Also Read :
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
The decline marked the third consecutive quarter of contraction for the world's biggest economy, which had not occurred since 1974-1975.
The steep fall was the result of falling exports, declines in business and household investment and a weak housing market, offset in part by improved consumer spending.
Consumer spending rebounded in the quarter, growing 2.2 percent after falling 4.3 percent in the last quarter of 2008.
But even though consumer activity makes up the lion's share of activity, it was not enough to offset hefty declines in other segments of the economy.
Also Read :
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
Investment in housing or residential structures fell 38 percent and spending on nonresidential business investment slumped 37.9 percent including a 33.8 percent drop in software and equipment.
Exports tumbled 30 percent and even government investment fell 4.0 percent.
Indian economy to recover from mid-2009 - Macquaire
(29-4-2009 Indian economy updates) - Indian economy will begin to recover from the middle of this year, thanks to the fiscal and monetary measures taken up by the government, but the outcome of the ongoing general election remains a legitimate concern, global research firm Macquarie has said.
Also Read :
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
Macquarie said, "Our view remains that the largely domestically-driven Indian economy will begin to recover palpably from mid-year onwards."
The double-cylinder fiscal and monetary response has been aggressive and already paying dividend, the research firm said but added that "political uncertainty over the outcome for the ongoing general election remains a legitimate concern".
The other factors likely to contribute include that India is relatively less dependent on exports, its export profile is not heavily dependent on electronic or automotive shipments and the domestic fiscal and policy response has been aggressive and effective.
Also Read :
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
Macquarie further said the Reserve Bank of India appears to be approaching the end of the policy rate-cutting cycle, but banks have more room to cut their lending rates more aggressively, which in turn should boost economic activity.
"Indeed, the broader setting is evolving nicely to position the economy for a better second-half of FY'10. Currently, we forecast a full-year GDP growth of 5.5 per cent for FY'10 following an estimated 6.5 per cent in the last fiscal year," Macquarie said.
Tuesday, April 28, 2009
RBI extends concessional credit to exporters till Oct 31
(28/4/2009 - RBI news) - Providing relief to exporters hit by shrinking global demand, the Reserve Bank on Tuesday extended the concessional interest rate scheme by six months till October this year.
The ceiling of interest rate on pre-shipment rupee export credit up to 270 days and post-shipment credit up to 180 days at BPLR minus 2.5 per cent was to expire on April 30, 2009.
Also Read :
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
"It has been decided to extend the validity ... up to October 31, 2009," the RBI said in a circular to the scheduled commercial banks.
Since these are ceiling rates, banks would not be able to charge exporters interest rates above the benchmark prime lending rate (BPLR) minus 2.5 per cent.
The Federation of Indian Export Organisations has been demanding that exporters should be given credit at 7 per cent without linking with the prime lending rate.
The exporters has been hit by recession in major markets of the US, Europe and the Middle East, which together accounts to over 70 per cent of India's overseas sales.
Monday, April 27, 2009
Direct tax collection Rs 3.37 lakh crore
(27/4/2009 - Indian Direct tax updates) - The direct tax collection during the last fiscal year 2008-09 was to the tune of Rs 3.37 lakh crore against Rs 3.12 lakh crore in financial year of 2007-08, a top revenue official said on Monday.
"The tax collection was, however, short of budgetary estimates of Rs.3.45 lakh crore. Similarly, the indirect tax collection was Rs 2.65 lakh crore as against Rs 2.81 lakh crore in previous year, Secretary, Department of Revenue, New Delhi, P V Bhide told reporters.
Also Read :
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
Bhide, who was here to attend the passing out of 61st batch of Indian Revenue Service (IRS) at the National Academy of Direct Taxes (NADT), said the cut in duty taxes reduced the indirect tax collection.
Speaking at the valedictory function of induction course of 61st batch, Bhide called upon the young officers to be honest and strive for tax administration while their primary responsiblity is tax collection.
Treat the income tax assessee as a client and not a criminal, he advised. The new tax code was being readied and would be brought in soon, he said.
Japanese economy to shrink 3.3 per in 2009 - Japan Govt
(Japanese economy updates) - Japan's economy is likely to shrink 3.3 percent this fiscal year, its worst contraction since World War II, the Cabinet announced Monday as it submitted a massive supplementary budget to finance a new stimulus package.
Exports and production are falling drastically, while employment conditions are rapidly worsening. Financing for businesses is also severe, and it is correct to say that Japan is in the middle of a financial crisis, Finance Minister Kaoru Yosano said in an address to the parliament.
Also Read :
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
Yosano asked lawmakers to quickly pass the extra budget, which calls for a record 15 trillion yen ($155 billion) in government spending to finance a new stimulus package. The package is equivalent to about 3 percent of Japan's gross domestic product.
His remarks came after the Cabinet downgraded its forecast for Japan's GDP to a contraction of 3.3 percent for the current fiscal year through March 2010. It had previously predicted GDP would be flat for the period.
It also said the world's second-largest economy is likely to have shrunk 3.1 percent in the fiscal year that ended last month, worse than the previous estimate of a 0.8 percent contraction.
With the latest estimates, Tokyo now expects the two-year period to be the worst for the economy in the country's postwar history. The largest previous GDP contraction was 1.5 percent in 1998.
Also Read :
-US institutions reluctant to end crises
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
In a statement released early Monday, the Cabinet said the stagnant global economy was hurting Japan's mainstay exports. But it said its economic measures would prevent Japan from getting caught in a downward spiral.
The Finance Ministry last week said Japan recorded its first annual trade deficit in 28 years in the just-ended fiscal year.
Japan has heavily relied on foreign sales of its cars and gadgets to drive economic growth, and is reeling from the collapse in global demand sparked last year by the U.S. financial crisis. Its economy shrank an alarming annual 12.1 percent in the October-December quarter, marking the steepest contraction since the oil shock of 1974.
The administration says the newest stimulus package will help protect the economy from slipping further while laying the foundation for future growth. It also provides support for the unemployed and small businesses.
The spending will also add to Japan's expanding public debt. Since Prime Minister Taro Aso took office in September, lawmakers have already approved two stimulus packages worth 12 trillion yen in fiscal spending.
source - www.economictimes.com
Thursday, April 23, 2009
Indian Inc's overseas investment slips 11 percent - RBI
(23/4 Indian Economy updates -the slowdown effect) - Facing the pangs of slowdown, India Inc appears to have restrained from overseas mergers and acquisitions as the country's foreign investment slipped by over 11 per cent during April-December 2008, says Reserve Bank.
"During the first nine months of 2008-09, 2,828 proposals amounting to $16,352 million were cleared for investments abroad in JVs (joint ventures) and WOSs (wholly owned subsidiaries), as against 1,595 proposals amounting to $18,437 million during the corresponding period of the previous year," the central bank said in its April Bulletin.
Also Read :
-US institutions reluctant to end crises
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
Even though the number of proposals recorded an increase of 77.3 per cent, amount invested by India Inc on overseas ventures dipped by over 11 per cent during the period.
There were a total of 2,828 proposals during the first nine months of 2008-09 against 1,595 proposals in the corresponding period previous year.
"During the quarter, October-December 2008, proposals amounting to $7,409 million were cleared for investments abroad in JVs and WOSs, as against $7,882 million during October-December 2007, the RBI said.
Inflation rises to 0.26 percent - April 11
Indian inflation Updates April 2009 - Annual Inflation consisting Wholesale price index rose 0.26 per cent in the 12 months to April 11, above the previous week's annual rise of 0.18 per cent.
It was above a median forecast of 0.09 per cent in a poll of analysts. The annual inflation rate was 7.95 per cent during the corresponding week of the previous year.
Also Read :
-US institutions reluctant to end crises
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is released weekly.
Hmm so despite slowdown everywhere indian economy is showing growth signs as growth in inflation percent nearly shows that consumer spending has not been hit amid global economic crises , One reason for growth of indian economy is (according to me) is the black economy which runs in parallel in india but is not shown in the audit books of the firms, so atleast some advantage of black money in these crucial crises times.....
wait for the next post dedicated to "parallel black economy of india"
posted under - inflation 2009, indian inflation, inflation in april, april inflation updates, economy of india, indian economy updates
Monday, April 20, 2009
Indian Forex reserves at USD 252 billion
(20/4/2009 Indian Economy updates) - India's foreign exchange reserves stood at USD 252 billion as of end-March, declining by USD 57.7 billion over the previous year, the Reserve Bank said on Monday.
The RBI said in its Macroeconomic and Monetary Developments in 2008-09 said, the overall approach to the management of India's foreign exchange reserves in recent years reflects the changing composition of the balance of payments and the 'liquidity risks' associated with different types of flows and other requirements.
Also Read :
-US institutions reluctant to end crises
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
"Taking these factors into account, India's foreign exchange reserves continued to be at a level consistent with the rate of growth, the size of the external sector in the economy and the size of risk-adjusted capital flows," RBI said.
posted under - economy of india, indian economy updates, indian forex reserves, RBI updates, indian economy blog, economy of india updates, forex updates, india forex reserves
Economic growth drivers moderating - RBI
Major drivers of growth in India are witnessing moderation and various surveys of economic activity point towards less-than-optimistic
sentiment for the economy in coming months, the Reserve Bank of India (RBI) said on Monday.
The survey of professional forecasters conducted by the Reserve Bank of India cut gross domestic product estimates for the 2009/10 fiscal year to 5.7 percent from 6.0 percent, it said in a review of the economy.
Also Read :
-US institutions reluctant to end crises
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
The central bank said the slew of measures taken by it and the government would help tame the moderation in growth and revive consumption and investment demand.
Thursday, April 9, 2009
Inflation lowers but food items prices skyrocket
Annual inflation fell to a three- decade low of 0.26 per cent, although prices of essential food items rose by up to 17 per cent, shows data released just days ahead of the country going to general elections.
Wholesale prices-based inflation declined by 0.05 percentage points for the week ended March 28 from 0.31 per cent in the previous week.
Also Read :
-US institutions reluctant to end crises
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
Even as the point-to-point inflation is near zero level, the average rate of price rise works out to be 8.4 per cent for the fiscal 2008-09 against 4.7 per cent in 2007-08.
Edible items like salt, sugar, milk, cereals, pulses, manufactured food products, spices and fruits were selling at higher rates for the week under review than a year ago.
In the backdrop of fall in sugarcane production, sugar prices soared by 17 per cent leaving a bitter taste. Inflation has become a key election issue, with political parties promising cheap rations for the poor.
Salt prices too went up by 10.68 per cent, milk by 6.22 per cent, cereals by 9.61 per cent, pulses 8.46 per cent and fruits by 8.02 per cent. However, drop in prices of minerals, metals, fuel, power and lubricants helped pull down the over all inflation to a three decade low.
Also Read :
-US institutions reluctant to end crises
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
With the inflation dropping to such a low, analysts feel that the Reserve Bank of India may signal further cut in interest rates. RBI Governor D Subbarao reviewed the interest rate scenario with the heads of commercial banks in Mumbai yesterday.
"Inflation is low due to crisis in demand and crisis of confidence. It is low (also) due to base effect," said economic research body, RIS' Director-General Nagesh Kumar.
The Finance Ministry described the year-on-year price rise as "stable". It said the inflation of primary articles declined for the week ended March 28, 2009 from the previous week.
However, there was 3.46 per cent point-to-point annualised price rise for these articles. Further disaggregation of food articles shows that several items were selling at higher prices.
posted under - Inflation, Indian inflation updates, April inflation updates, Inflation at all time low, indian economy updates, economy of india, india and inflation
source - www.economictimes.com
Wednesday, April 8, 2009
Oil export earnings rise 17 per in 2009
April 8/09 - Despite facing a downturn in demand and consequently in prices since October 2008, India’s earning from oilmeal exports increased 17% to Rs 8,341 crore in 2008-09 even on a lower export volume. A firm trend in global markets during the first half of the FY09 has helped India beat the impact of recession on oilmeal exports.
Riding on substantial gains in price realisation in the first half of 2008-09, oilmeal continues to remain the highest export earner in the agri-commodity segment. During the year, it fetched about Rs 8,341 crore on an export volume of 5,421,607 tonne compared to Rs 7,109 crore against a volume export of 5,442,132 tonne in 2007-08.
Also Read :
-US institutions reluctant to end crises
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
According to the Solvent Extractors’ Association of India (SEA), oilmeal exports in the first two quarters of 2008-09 jumped due to excellent demand and higher realisation of FOB prices. However, it stagnated in the third quarter. Exports declined heavily in the fourth quarter faced with a decline in meat and poultry production in its prime markets in South-east Asia, which happened due to dip in consumer demand for livestock products in the recession-hit countries.
posted under - Oilmeal earnings, oil exports, indian economy updates, economy of india, indian oil exports news, indian economy news, oilmeal in india, oilmeal exports
Economy Updates - Exports down 18% to $12 bn in March 2009
April 7/09(India Economy Updates) - The country seems all set to miss the pared down export target for 2008-09 with exports recording a fall in March 2009, for the sixth time in a row. Quick estimates made by the commerce department reveal that exports fell by 18% in March 2009 to $12 billion.
The aggregate export figure for the entire fiscal is, therefore, at $168.59 billion, which is more than a billion dollar short of the lower range of the revised target of $170-175 billion set by the government. The unofficial quick estimates, however, are sometimes quite different from the revised estimates officially issued at the end of the month.
Also Read :
-US institutions reluctant to end crises
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
While desegregated figures are not available, a government official said that sectors such as textiles, handicrafts, carpets, leather, gems & jewellery and marine products continued to do badly. While demand for some of these products, especially textiles, has started picking up slightly in the EU market, demand from the US continues to be sluggish, the official added.
India exported goods worth $162 billion in 2008-09 registering a healthy growth over the previous fiscal. The 2008-09 fiscal began on a robust note with exports growing by more than 30% in the first six months. While the effects of the global demand slowdown started appearing in September with export growth slowing down to 10% in September 2008, the downslide started in October 2008 with exports entering the negative territory with a fall of 12.8% over October 2007.
Exports have not managed to get out of the negative zone ever since. Commerce and industry minister Kamal Nath, who had initially fixed the export target for 2008-2009 at $200 billion, brought it down to $170 billion-$175 billion in the last quarter of the fiscal year.
Also Read :
-US institutions reluctant to end crises
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
With demand in key markets including the US, the EU and Japan slowing down, exports in most countries have been hit.
posted under - Exports , indian export news, Indian exports updates, economy of india, indian economy updates, indian economic news, economic news of india
Tuesday, April 7, 2009
India ranks second in industrial production among developing countries
India ranks among the top five developing countries in production of six major industrial items, including textiles, motor vehicles, chemicals and basic metals, according to a UN agency UNIDO.
In four out of the six industrial products - textiles, chemicals and chemical products, basic metals and electrical machinery and apparatus - India figures at number two only behind China.
Also Read :
-US institutions reluctant to end crises
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
India's annual growth rate of manufacturing value added (MVA) has risen from 6.9 per cent in the period 2000-2005 to 12.3 per cent between 2005 and 2007, according to the year book of the United Nations Industrial Development Organisation (UNIDO).
It found that the share of MVA in India's gross domestic product (GDP) has risen to 14.8 per cent in 2006 from 13.8 per cent in 2001.
UNIDO found that the developing countries now produced almost 30 per cent of the world MVA compared to 16 per cent in 1990.
Also Read :
-US institutions reluctant to end crises
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
"The increasing share of developing world vis-a-vis industrialised countries is also explained by the shift of location of manufacturing, especially assembling of final products from industrialised countries to developing countries," the UNIDO said.
posted under - industrial production, indian economy, economy of india, indian industrial output, output updates, indian economy updates, economy of india
Monday, April 6, 2009
FDI to remain robust - Goldman Sachs
The global economic slowdown will not affect the foreign direct investment (FDI) flow to India as the domestic demand remains "resilient", investment banker Goldman sachs said on Monday.
"FDI is showing positive signals," Tushar Poddar, an economist with Goldman Sachs said, adding: "We expect FDI inflows to remain significant in 2009-10, given India's relatively resilient domestic demand momentum."
Also Read :
-US institutions reluctant to end crises
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
According to the bank, the FDI flow to India during September-January - the months when the credit crisis was at its peak - amounted to $9.2 billion, higher than $7.9 billion in the corresponding period last year.
Pranjul Bhandari, another economist at Goldman, said: "India's balance of payments (BOP) may have had its worst quarter in October-December 2009, when it showed a deficit of $18 billion."
"NRI deposits showed an uptick last fiscal, but we expect it to remain flat in 2009-10. We expect NRI deposits coming due in the next year ($32 billion) to get rolled over to a large extent, but do not expect large fresh inflows," he added.
Also Read :
-US institutions reluctant to end crises
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
External commercial borrowings (ECBs) are expected to moderate in in the current fiscal. Although ECBs have slowed to $9.1 billion during September-February from $11.8 billion in the previous six months.
"In 2009-10, we expect ECBs to remain positive due to higher growth and yields in India, notwithstanding the $7 billion of outstanding commercial loans coming due," Bhandari said.
Private remittances from Indians working abroad slowed to $4.3 billion in the October-December quarter from $7.9 billion in the July-September quarter.
"We expect this to remain weak, but do not expect much further weakness from current levels," she said.
Bhandari added that the merchandise trade deficit had fallen to $5 billion in February from a peak of $14 billion in August.
Posted under - FDI in india, indian economy updates, economy of india, recession and indian economy, Indian FDI, foreign direct investment in india, India FDI, FDI updates
source - www.economictimes.com
Thursday, April 2, 2009
G20 Nations agree to trilion dollar financial plan for lifting global economy
G20 summit updates April 2009- World leaders agreed a trillion-dollar deal on Thursday to combat the deepest economic downturn since the Great Depression.
At a G20 summit, they also signed off on plans to commission blacklists of tax havens and tighten financial rules to bring hedge funds and credit rating agencies under closer supervision.
Also Read :
-US institutions reluctant to end crises
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
"This is the day that the world came together, to fight back against the global recession. Not with words but a plan for global recovery and for reform and with a clear timetable," British Prime Minister Gordon Brown, the summit host, said.
World markets reacted positively. The index of top European shares was up 5 percent after Japan's Nikkei gained 4.4 percent. On Wall Street, the Nasdaq was up 4 percent and the Dow Jones 3.6 percent.
Brown said that while there were "no quick fixes," the decisions meant that "we can shorten the recession and we can save jobs."
Also Read :
-US institutions reluctant to end crises
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
French President Nicolas Sarkozy said the results were beyond what could have been imagined.
Addressing a key demand from France and Germany, Brown said the leaders agreed "there will be an end to tax havens that do not transfer information on request. The banking secrecy of the past must come to an end."
He said leaders agreed to commit new resources of 1 trillion dollars that are available to the world economy through the International Monetary Fund and other institutions.
This included 250 billion dollars of IMF reserve units called Special Drawing Rights. "This is available to all IMF members," Brown said. In addition, the IMF would see its own resources tripled, with up to $500 billion of new funds.
The G20 also agreed a trade finance package worth $250 billion over two years to support global trade flows.
posted under - G20 updates, G20 2009, G20 summit updates, economic recession updates, economic crises updates, world economies updates, G20 meeting
India's Apr-Feb 2008-09 exports at $156 bn
India's exports in the April to February period reached $156 billion and are expected to touch $170-175 billion in fiscal 2009/10, Commerce Secretary G.K. Pillai said on Friday.
"We will be lucky if we touch the $170 billion target (this fiscal year)," Pillai said referring to the slowdown in exports due to the global economic crisis.
Govt released the trade data for february yesterday.
posted under - exports of india, indian exports, export data from india, Indian economy updates, economy of india, effect of recession, indian exports
Wednesday, April 1, 2009
India Economy Updates - Govt introduces LLP business structure
India today introduced a new kind of business structure, Limited Liability Partnership (LLP), a form of entity where the partners' liability is limited to the extent of their stake which will specially benefit the services sector.
The LLP Act, was passed by the Parliament and given assent by the President Pratibha Patil, was notified today after being approved by the Election Commission to do so, sources in the Ministry of Corporate Affairs told PTI.
Also Read :
-US institutions reluctant to end crises
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
Rules under the Act were also notified today. The Act will specially benefit the service sector by providing a platform to professionals like chartered accountants and company secretaries to come together to form an LLP and provide a single-window shop to all people wanting to avail professional services.
The LLP is a hybrid of partnership firms and companies. It is a separate legal entity and the partners have the advantage of being liable to the extent of their shareholding in the entity. The software, a part of the government's e-governance programme MCA 21, for incorporating and formation of the company has been prepared and the new LLPs will register online, sources added.
posted under - LLP act, LLP, indian LLP act , LLP act 2009, Limited Liability Partenership, LLP in india, Indian Economy updates, economy of india
