Inflation for week inches Up - due to trucker's strike

Breaking the 10-week down ward streak, whole sale price inflation for the week ended January 10 inched up to 5.6% on the back of firmer food prices. The inflation for food items has touched a 10-year high of 11.64% as the trucker's strike, which went on from January 5 to 12, made food items costlier. Wholesale price inflation was at 5.24% in the week before and was at 4.36 % in corresponding week last year.

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Economists dismissed the spike in inflation as a blip in the easing trajectory of inflation. More than 5 million Indian truckers have gone on strike from January 5 to 12 creating a shortage for food items and making it costlier over the week. Vegetables became costlier by almost 19% over the week while the prices of fruits and cereals also moved up. Inflation for food items moved up by one and a half percentage points from the previous week’s levels.

The 10-year benchmark bond yields closed at 5.84 %, after inflation came slightly above market expectations. The yields have touched a high of 6% in the morning trade. The 10-year bond yields is a percentage point above record low of 4.86% of January 5, following rate cuts by the central bank.The yields of ten year papers closed at 5.89% on Wednesday.

posted under - Indian inflation updates, inflation january 2009, inflation in india, Indian inflation updates, indian economy blog, inflation updates

No Change in Tax Structure - MS Ahluwalia

Planning Commission deputy chairman Montek Singh Ahluwalia on Tuesday ruled out the possibility of any further change in the tax structure in the current fiscal(2008-09). "The government has already taken enough fiscal measures to boost the domestic economy," Mr MS Ahluwalia said.

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"We feel whatever has been done is sufficient and have not proposed another stimulus package for this financial year. Whatever has been done so far is sufficient and should be implemented," Mr Ahluwalia said in a conference organised by industry body FICCI.


Posted under - Tax structure , india economy updates, indian economy blog, MS Ahluwalia, Planning commision updates

Economy Updates - India's investment in Sri Lanka dips by $1.33 mn

India's investment in Sri Lanka has declined by $ 1.33 million to $ 6.93 million in the last fiscal, despite big domestic companies investing in the island nation.

"The approved Indian investments in Sri Lanka were $ 8.26 million in 2006-07 and $ 6.93 million during 2007-08," Commerce Minister Kamal Nath said at a meeting with Sri Lankan Minister of Export Development and International Trade G L Peiris, here today.The trade between the countries stood at USD 3.45 billion in 2007-08 as against $ 2.72 billion in the previous year, up by 27 per cent.

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In another meeting with Tanzanian Industry Minister Mary Nagu, Nath said there is a need for greater trade ties between the countries and investors could avail the opportunities of the favourable investment climate in India, particularly in the sectors like telecommunication, fibre-optics, tourism and infrastructure development.

The trade between India and Tanzania stood at $752 million during 2007-08. India exports fine chemicals, electronic goods and transport equipment to Tanzania.


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Meanwhile, the trade between India and Bhutan has grown significantly from a level of USD 141.86 million in 2003-2004 to $ 281.17 million in 2007-2008.India's import from Bhutan is valued at $194.48 million.The major items of exports from Bhutan to India, include , cement, timber and wood products, minerals.

posted under - Indian Economy, economy of india, indian economy blog, india economy updates