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.

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"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."

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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

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.

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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

ग्रोथ ओवर ८ परसेंट सुस्तैनाब्ले - RBI

The Reserve Bank of India expects the economy's growth rate to bounce back above 8 per cent once the current global economic and financial turmoil passes, Deputy Governor Rakesh Mohan said today.

"Our overall assessment is still an 8 per cent-plus growth is sustainable in the medium term. We can expect to come back to 8 per cent-plus growth once this interregnum is over," Mohan told a news conference.

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The government expects the economy to grow about 7 per cent in the fiscal year that ends on March 31, well below rates of 9 per cent or more in the previous three fiscal years.

Mohan said India would be cautious in moving towards fuller capital account convertibility for the rupee currency.

"We have also looked at the fuller capital account convertibility and concluded its desirable, but we need to move with caution," he concluded.

posted under - RBI updates, Indian Economy updates, economy oeconomy, recession and indian economy, economy of india, india economy

Economic Crises leads to delay in Financial Reforms - Report

Pressure to support India's economy and drive growth during the global economic and financial crisis could impede efforts to put the country's fiscal house in order, a report by the government and central bank said on Monday.

"Given the current pressures to maintain growth at a reasonably high level it would not be possible to resume the fiscal correction path after the current financial turmoil," the report on the country's financial sector said.

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The report said that once the current turmoil had passed, fiscal discipline needed to be reasserted to support growth.

"For the growth momentum to be sustained, it is necessary to return to the path of fiscal prudence at both the central and state governments," the report said. The federal government's finances have suffered in the 2008/09 fiscal year that ends on March 31, after making solid gains over the past few years, as a slowing economy has hit revenues and increased spending.

The government expects the deficit to widen to 6 per cent of gross domestic product in 2008/09, more than double its initial estimate. Analysts say the country's combined deficit, including state deficits and off-budget items such as fuel subsidy costs, is around 10 per cent.

The six-volume report is a comprehensive review of the country's financial system. The committee that prepared it was formed by the government and central bank in 2006, and was headed by Reserve Bank of India Deputy Governor Rakesh Mohan.

posted under - Indian economy updates, Crises, Economy of india, Indian Economy, Economic reforms, Indian economy blog, india finance updates
source -www.economictimes.com