Indian Forex reserves at $ 287 billion

India's foreign exchange reserves rose to $287.356 billion as on August 6, from $284.183 billion in the previous week, the Reserve Bank of India (RBI).

Foreign exchange reserves include India's Reserve Tranche position in the International Monetary Fund (IMF), the RBI said.

14000 crores as subsidy to Oil Cos

The government will give Rs 14,000 crore in cash to Indian Oil, Bharat Petroleum and Hindustan Petroleum to make up for the losses incurred on selling fuel below cost in the first quarter of 2010-11 fiscal.

The Finance Ministry today sought parliamentary approval for additional spending of Rs 68,294.30 crore that included Rs 14,000 crore "for providing compensation to oil marketing companies towards estimated under-recoveries on account of sale of petroleum products."

Retailers IOC, BPCL and HPCL lost about Rs 20,275 crore on selling petrol, diesel, domestic LPG and kerosene below cost in the first quarter of this fiscal. Of these, losses of upstream firms like Oil and Natural Gas Corp (ONGC), made up for one-third or Rs 6,690.68 crore.

Key rates decision after analysing Inflation problem root - RBI

The Reserve Bank of India's (RBI) monetary stance will depend on whether it perceives inflation as stemming from excessive liquidity or due to supply constraints, the country's top civil servant said.

On Tuesday, Cabinet Secretary K.M. Chandrasekhar allayed concerns of persistently high prices, reiterating the government's forecast of headline inflation easing to 5-6 percent by the end of the year.

India's annual headline inflation stayed above 10 percent for the fifth straight month in June, cementing expectations the RBI will raise interest rates for a second time this month to contain price pressures.

A majority of economists expect the RBI to raise key interest rates by 25 basis points in its quarterly review on July 27 and tighten policy further in coming quarters, a new Reuters poll showed.

"A call will have to be taken by the Reserve Bank (RBI) on whether inflation is on account of high money supply or is it on account of certain sectoral reasons, some supply constraints," Chandrasekhar told a news conference.

Some analysts have pegged capacity constraints in the rapidly expanding economy as the main reason for a surge in non-food inflation, pointing out a slowdown in May industrial output, despite robust domestic consumer demand.

Further, expansion in the M3 money supply, the broadest measure of liquidity in the system, has just picked up after slowing down since the year began and lags credit expansion.

Exports to EU countries increases

According to latest report exports to EU union have increase YoY. So does it mean that EU is coming out of bad times...The answer might not be so easy currently, have to wait for another quarter for sure to analyse.

Details:

Exports from India to the 27-member EU increased by 18 percent to 10.7 billion euros in January-April 2010, compared to 9.1 billion euros in the corresponding period last year. and also Exports from the European Union (EU) to India shot up by 28 percent to 10.6 billion euros (about $13 billion) between January and April 2010, compared to 8.3 billion euros in the corresponding period last year,

Good Move - Rs 8000 crores for mid day meal scheme

This year the Centre has alloted rs 8000 crore for the mid day meal scheme , hence there would be more enrolment for schools for sure thus increasing the number of literates in country.

Flashing back to midday scheme: Mid-day meal scheme was first evolved by former Tamil Nadu chief minister K Kamaraj and now it has been taken as a role model for the entire country.

Pathetic - Gujarat Gov unable to collect Tax dues

The booming economy of Gujarat has a darker side too.. as their are many big companies which do not pay their taxes and Owe 4000 crores as taxes from 2006 onwards.

The biggest revenue churner for the state government — the commercial tax department that accounts for 60-70 per cent of the state government’s revenue — may have breathed down a small trader’s neck to recover dues. The department , however, find it difficult to explain why they have been unable to recover Rs 4,775 crore from 13 major units in the state since 2006. The amount includes Rs 1,264 crore in interest.

Indian Economy's GDP pegged at 5 perc for 2010-11

Indian Economy's fiscal deficit for year 2010-11 is predicted to be in line of 5 percent of GDP according to Nomura. Which means it is much less then the predicted.

The government is also looking at raising Rs 40,000 crore through disinvestment this fiscal. It has already raised over Rs 1.06 lakh crore from the sale of spectrum for 3G and Broadband Wireless Services (BWA) services.

The research firm also said that one-off expenses on pay arrears and fiscal stimulus are set to fade. Hence government would borrow 15000 crores less in this financial year.

I am waiting when India would see it's first budget with zero deficit, that day will be golden day for Indian Economy....cheers!!

Normal Monsoon brigtens hopes for decrease in prices :)

(posted under - Monsoon updates, Economy of India) -As the country is now completely witnessing normal monsoons all over, The monsoon is ahead of schedule by 9 days according to metrological department, The Inflation will surely come down in couple of months from now on..

The revival of monsoon rains, the main source of water for 60 per cent Indian farms, will lift soybean and groundnut crops in the world's top vegetable oils importer and help the cane crop in the Uttar Pradesh state, which produces half the cane in the world's top sugar consumer.

The weather office expects total June-September rainfall to be normal despite the June deficit.

Indian Economy booming - Direct tax collection up 15 percent

(posted under Direct tax collection, Indian economy updates) - collection of direct taxes during the first quarter of the current fiscal increased by over a full 15 per cent, driven mainly by higher realisation from the corporate sector.

The higher realisation of direct taxes, which mainly include corporate tax and income tax, went up to Rs 68,675 crore, as against Rs 59,465 crore during the corresponding period last fiscal.

According to the figures released by the Finance Ministry here today, corporate tax collection, which is a reflection on the performance of India Inc, soared 21.65 per cent to Rs 43,439 crore during the reporting period. The government expects to mop up Rs 4.3 lakh crore by way of direct taxes during the current fiscal, an increase of over 13 per cent over the year-ago period.