Annual inflation at 0.48 per cent on May 23

(May 2009 inflation updates) Wholesale price index rose 0.48 per cent in the 12 months to May 23, lower than previous week's annual rise of 0.61 per cent, government data showed on Thursday.



It was below a median forecast of 0.56 per cent in a poll of analysts. The annual inflation rate was 8.90 per cent during the corresponding week of the previous year

$ v/s INR daily updates -June 2009

This post gives daily INR v/s US$ updates for the month of June 2009 the comparison is at closing of the indian stock markets. and enteries are in cronological order -


PS - the order of each daily entry is as follow:

Rs v/s US$ | price of 1 us$ in INR | change wrto previous day | remarks/analysis

Enteries in red color show INR weakening and green color entery shows stronger INR wrto $.

June 25/2009 - Rs v/s $ updates
RS v/s $ | 48.53 | 0.38 | Up^38 paise wrto $

June 19/2009 - Rs v/s $ updates
RS v/s $ | 48.06 | -0.15 | Down(-15) paise

June 18/2009 - Rs v/s $ updates
RS v/s $ | 47.91 | -0.15 | Down(-15) paise

June 8/2009 - Rs v/s $ updates
RS v/s $ | 47.08 | 0.08 | Up^8 paise wrto $

June 5/2009 - Rs v/s $ updates
RS v/s $ | 47.16 | -0.32 | Down(-32) paise

June 4/2009 - Rs v/s $ updates
RS v/s $ | 46.84 | -0.30 | Down(-30) paise

June 2/2009 - Rs v/s $ updates
RS v/s $ | 46.99 | 0.30 | Up^30 paise

No change in retail policy - FDI still not allowed

(2/6/09 Retail policy updates) - Ruling out any "review" of the foreign direct investment policy, Commerce and Industry Minister Anand Sharma has said there are in-built safeguards against FDI finding its way into multi-brand retail and breaching caps in broadcasting and defence production.

Sharma, who took charge of the nodal ministry for FDI on May 29, said there is no need for a relook at the policy amended in February by the Department of Industrial Policy and Promotion (DIPP).

"At this stage, we don't see that the time has come for any comprehensive review . it is too early in the day . we will see how the new policy is working," Sharma told in an interview.

There are safeguards against FDI in sensitive sectors like broadcasting and defence production, while the policy does not allow overseas investment in retail, he said. The "misunderstanding" on FDI being allowed indirectly in multi-brand retail "is not well placed at all", he said.

He said there were "effective, inbuilt safeguards when it comes to the sectoral caps, particularly in those sectors which have been sensitive, and (going) by the new policy those areas remain protected ..."

While the policy does not allow overseas inflow into this sector, the changes in February were perceived to be opening the sector to FDI up to 49 per cent in an Indian firm that has a downstream subsidiary firm in retailing.

inflation updates - Annual inflation at 0.61 percent

(28/5/09 - Inflation updates) - The wholesale price index rose 0.61 percent in the 12 months to May 16, matching the previous week's annual rise, government data showed today.

It was below a median forecast of 0.74 percent in a Reuters poll of analysts. The annual inflation rate was 8.66 percent during the corresponding week of the previous year.

It may be noted that 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.

Govt might put an end to Fringe benefit tax this budget

(27/5/09 - FBT updates) - The government is considering a proposal to put an end to fringe benefit tax (FBT) — the tax on all benefits and perks that companies provide to their employees introduced in the 2005-06 Finance Bill — in the coming Union budget, according to revenue officials familiar with the development.

FBT, at Rs 8,000 crore last year, accounted for just over 2% of the total direct tax collection of Rs 3.4 lakh. There is a view that collections from this unpopular tax is too minuscule to worth all the paperwork involved, officials said on condition of anonymity.

From Day One, corporates opposed FBT not just on account of adding to the tax burden, but because of the huge additional paperwork and accounting complications involved in estimating a company’s FBT outgo.

FBT is levied on perquisites provided by the employer to the employee in addition to the regular salary. This is a tax paid by the employer on the benefits or perks that the employee receives. It includes components like the employee’s accommodation, entertainment, travel expenses and phone calls. Later Esop too was brought under the FBT umbrella.

Rs v/s $ daily updates - may 09

This post gives daily INR v/s US$ updates for the month of may 2009 the comparison is at closing of the indian stock markets. and enteries are in cronological order -


PS - the order of each daily entry is as follow:

Rs v/s US$ | price of 1 us$ in INR | change wrto previous day | remarks/analysis

Enteries in red color show INR weakening and green color entery shows stronger INR wrto $

May 28/2009 - Rs v/s $ updates
RS v/s $ | 47.67 | -0.04 | Down(-0.04) paise

May 27/2009 - Rs v/s $ updates
RS v/s $ | 47.63 | -0.41 | Down(-0.41) paise

May 26/2009 - Rs v/s $ updates
RS v/s $ | 47.22 | -0.03 | Down(-0.03) paise

India's crude oil imports dip 12.1 percent

India's crude oil imports fell 12.1 per cent in April on lower buying by private refiners while the nation's fuel consumption was up only marginally despite hectic electioneering during the period.

The Asia's third largest energy consumer imported 9.7 million tonnes of crude oil in April as Essar Oil shut its Vadinar refinery for maintenance, according to the data available from oil ministry. India had imported 11.04 million tonnes of crude oil in April 2008.

Fuel consumption rose 1 per cent to 11.58 million tonnes against 11.47 million tonnes a year ago. Diesel, the most consumed fuel, saw a moderate 4.8 per cent rise to 4.72 million tonnes while petrol sales jumped 7.8 per cent to 1.01 million tonnes.

LPG, naphtha and aviation turbine fuel demand fell. ATF sales was down 3.2 per cent to 3,77,400 tonnes.

Cheaper natural gas replaced naphtha, which saw 39 per cent fall in demand to 292,100 tonnes. Oil product imports was down 11 per cent to 2.17 million tonnes.

Petroleum product exports dipped 37.8 per cent to 1.78 million tonnes in April. Diesel exports was down 26.6 per cent to 781,000 tonnes.

source - pti

Govt finds Rs 1,200 crore in frozen demat accounts

The I-T department has found over Rs 1,200 crore lying unaccounted in lakhs of frozen demat accounts across the country and has sought a detailed probe on the possibility of their use for illegal transaction and tax evasion.
The department has now sent the reports of such accounts to the respective Chief Commissioners of Income Tax (CCITs) in various parts of the country to check the veracity of such accounts in their regions.

More than 6.5 lakh frozen demat accounts were taken under scanner and investigated by the Income Tax Department in December last year on the suspicion of huge evasion of taxes and 'benami' transactions.

According to official sources, the CCITs have been asked to serve notices to all the account holders and report unclaimed accounts so that such accounts can be seized.

All the I-T Commissioners have also been asked to prepare "detailed reports" on the transactions of these accounts.

Official sources said that distinction between claimed and unclaimed accounts will help the authorities to proceed with further probe or seizure procedures respectively, as these accounts could lead to links to further cases of tax evasions and unreported economic transactions.

FM meets senior officials to discuss Budget 2009-10

Finance Minister Pranab Mukherjee is understood to have held an informal meeting with the senior officials in the ministry and discussed issues relating to preparation of the Union Budget.

Finance Secretary Ashok Chawla and Chief Economic Advisor Arvind Virmani met Mukherjee at his residence today. Mukherjee is likely to take over the charge tomorrow.

According to official sources, Mukherjee has convened a meeting of senior finance ministry officials tomorrow immediately after assuming office.

Yesterday, after the first meeting of the new Cabinet, Mukherjee had expressed hope that the government would be able to present the Union Budget for the year 2009-10 in due time to avoid uncertainties.

Commenting on the economic scenario, he had said, "Indian economy is resilient, strong and we shall have to build up and come back to the growth track as early as possible. We will be able to, I hope, present the budget in due time so that uncertainties can be avoided and time of spending can be renewed."

Mukherjee, who was given additional charge as Finance Minister earlier this year in the previous UPA government, had presented an interim budget in February and had sought approval from the Parliament for withdrawal of money from the consolidated fund only till July 31.

Pranab Mukherjee keen to lift economy

Finance Minister Pranab Mukherjee on Saturday promised every effort to lift the Indian economy out of the current slowdown and said the regular budget will be presented in due course.

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"The Indian economy remains resilient," the veteran Congress leader told reporters at his residence, soon after a Rashtrapati Bhavan communique named him finance minister.

"All economic issues will be addressed. My priority is to put the economy back on track. Various efforts will be made to insulate the Indian economy from the adverse impact of the financial meltdown," he said.

Mukherjee, however, declined comment on whether he intended to present a vote-on-account first. "I hope to present the budget in due course."

The industry chambers were happy with Mukherjee being given the finance portfolio. He held additional charge of the ministry since January as Prime Minister Manmohan Singh had to undergo a heart surgery.

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"Pranab Mukherjee as finance minister will do full justice to his job and come up to the expectations of the people of India and its industry," said the Associated Chambers of Commerce and Industry (Assocham).

The Federation of Indian Chambers of Commerce and Industry (FICCI) said the Congress leader combines a rare sense of economic and political judgement that would stand the test of time.

Rs 10,000-cr package for shipping industry likely

The Centre is considering a Rs 10,000-crore package for the shipping industry to help it tide over the global economic crisis, a senior government official said.

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"We know that the shipping industry in the country is facing difficulties. We are actively considering a package of Rs 10,000-crore to help the industry," Shipping Joint Director-General C B S Venkataramana told reporters here.

He was speaking at a seminar on logistics park organised by industry body CII here on Friday.

India's forex reserves down by $1.734 billion

India's foreign exchange reserves declined by $1.734 billion to $254.207 billion for the week ended May 15 from $255.941 billion in the previous week.

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In the week under review, foreign currency assets fell by $1.747 billion to $243.754 billion as against $245.501 billion in the previous week, RBI said in its weekly report.

FCAs, expressed in US dollar terms, include the effect of appreciation or depreciation of non-US currencies (such as Euro, Sterling, Yen) held in reserves, RBI said.

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The gold and Special Drawing Rights remained unchanged at $9.231 billion and $1 million for the week, the central bank said.

India's reserve position in International Monetary Fund increased by $13 million to $1.221 billion in the week compared to $1.208-billion in the previous week.

Economists up their economy forecast to 7 percent

Upbeat at formation of new UPA government headed by Prime Minister Manmohan Singh, economists on Friday said that continuity in policies would push economic growth to over seven per cent in the current fiscal.

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"A very good government.it will provide support to growth. My projection for GDP growth rate is around 7 per cent and this government can realise it," said noted economist Saumitra Chaudhuri, who till recently was a member of the Prime Minister's Economic Advisory Council.

The new government, however, will have to address issues in infrastructure and education sectors, he added.

"I see a lot of continuity and stability as these Cabinet ministers have already worked for five years," said Nitin Desai, former Chief Economic Adviser.

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"The growth is already on the path of recovery. The new cabinet should help in continuation of economic reforms", he said, adding the main challenge before the government would be to provide good governance.

Manmohan Singh was today sworn-in as Prime Minister for a second consecutive term at the head of a 20-member team in the first installment of government formation truncated by the deadlock over portfolios for DMK members.

Annual Inflation at 0.61 percent

India's wholesale price index rose 0.61 percent in the 12 months to May 9, above the previous week's annual rise of 0.48 percent, government data showed on Thursday.

It matched a median forecast of 0.61 percent in a Reuters poll of analysts. The annual inflation rate was 8.57 percent during the corresponding week of the previous year.

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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.

Indian Inc wants Montek S Ahluwalia as Finance Minister

(17/5/09 Indian Inc) - Montek Singh Ahluwalia is the favourite of Indian industry to become finance minister and it wished for P Chidambaram to stay as home minister, while seeking a Cabinet berth for Rahul Gandhi.

Industry captains were, however, not clear what role Rahul should play in the next Cabinet.

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Capital market expert Prithvi Haldea said the finance ministry should go to Montek Singh Ahluwalia and Chidambaram should continue as home minister. Real estate leader DLF clearly favoured Montek to move to North Block on Raisina Hill that houses the finance ministry.

However, the views are split when it came to sectoral representatives with most of the players giving their wishlist without wanting to be named.

A large corporate house wanted Murli Deora to be back as the petroleum minister, or to be replaced by his son Milind. Kamal Nath also found favour for a second term as the commerce and industry minister, although a section felt that Jairam Ramesh could be given the charge.

For telecom ministry, CDMA operators favoured DMK leader A Raja to continue, while GSM lobby wanted the Congress to keep this portfolio with itself, so that it can go ahead with reform process without any hindrances.

UN official-turned-politician Shashi Tharoor, who is making debut in the Lok Sabha shortly after losing the race for the UN Secretary Generalship, also figured in the wish- list of industrialists for a place in the Union Cabinet.

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"We hope to see Rahul Gandhi in the Cabinet," Ispat Industries' vice-chairman and managing director Vinod Mittal said, adding that age was not a criteria to be a dynamic leader and minister.

A cross section of investors, industrialists and analysts also felt that younger politicians, including Jitin Prasad, Sachin Pilot, Naveen Jindal and Jyotiraditya Scindia, should be given ministerial responsibilities.

Many of them felt that P Chidambaram should be given the responsibility of the home ministry, but few rooted for him to get back to the finance minsitry.

Brokerage firm SMC Capital's Equity Head Jaganaddham Thunuguntla said: "It will be good to have him (Rahul) in the Cabinet to give him exposure."

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Essar Steel Business Group CEO J Mehra said, "Congress has many dynamic options and Montek Singh Ahluwalia is one of them (for the finance ministry)." He, however, quickly added that it would not be wise at this point of time to name possible ministers without knowing who all are in the fray.

Taurus Mutual Fund's managing director R K Gupta said the UPA has much better scope for change this time as now it would not have to seek help from the Left parties for forming the government.

source economictimes