India's Forex reserves drop by about $560 million Wk o wk

India's foreign exchange reserves fell to $263.917 billion as on July 10, from $264.477 billion a week earlier. The main reason for decline was mainly because of Changes in foreign currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of other currencies held in its reserves such as the euro, pound sterling and yen

16 FDI proposels given green signal by Government

Government of India cleared total of 16 Foreign Direct Investment Proposals(FDI) totalling to INR 825 crores including on hydro power project in state of sikkim.

The Government, however, revoked all foreign collaboration approvals for ByCell Telecom on concerns over the Switzerland registered company's funding sources.

Among cleared proposals, Teesta Urja will bring in Rs 547.20 crore for developing 1,200-MW hydro power project in Sikkim.

The Government also allowed IL&FS Trust Company to hold two per cent stake in Multi Commodity Exchange of India, that will bring in Rs 108 crore of FDI.

Govt would require to borrow 120 billion rupees per week

The Government official said today that the borrowing in the closing weeks of September could be 110 billion rupees or less.

Earlier, a central bank deputy governor said the government would borrow an additional 1.1 trillion rupees ($22.6 billion), taking the total to 2.99 trillion between April and September, a central bank deputy said on Thursday.

The additional borrowing excludes 120 billion rupees of bond sale scheduled for Friday.

Wholesale price index Weekly Inflation at (-1.21 %) - July 4/09

Weekly whole price index rose from -1.55% to -1.21 % for week ended july 4 as government increased the price of fuel in corresponding week which led to increase in whole sale price index or inflation.

Following the government decision to raise fuel prices effective July 1, prices of naphtha rose 15 per cent, furnace oil 11 per cent, petrol 10 per cent, high-speed diesel 7 per cent and light diesel oil by 4 per cent.

However consumer price index is still alarming high

Finance Minister assures about Economic Reforms pace

Finance Minister Pranab Mukherjee replied to opposition questions "...there is no question of diluting the process of economic reforms. Reform is a continuing process, whichever government comes they continue to do so," Finance Minister Pranab Mukherjee told Rajya Sabha in reply to debate on the Budget 2009-10.

He said disinvestment is not the only indicator of economic reforms. It is part of the government programmes.

If he has not given the list of public sector companies to be disinvested, some believe heavens have fallen. "I do not subscribe to this view", the minister said.

Top 10 economies of world in trade - friendliness

Indian economy is growing by over 6 percent from last 3-4 years so has our economy become more trade friendly, well if I compare it with era before 1990`s then the answer to this question is `yes`, After the liberalisation of Indian economy in the 90`s thanks to the present Prime Minister for bringing the reforms. Still I think a lot of work needs to be done as our Indian economy is still not the most trade friendly economy of the world, as i saw the list of top 10 economies in their trade friendliness and Indian Economy doesn`t feature in the list.

Following is the list of top 10 economies (country) of the world :

Rank 1 - SINGAPORE

Rank 2 - HONG KONG

Rank 3 - SWITZERLAND

Rank 4 - DENMARK

Rank 5 - SWEDEN

Rank 6 - CANADA

Rank 7 - NORWAY

Rank 8 - FINLAND

Rank 9 - AUSTRIA

Rank 10 - NETHERLANDS

3837 crores lies unclaimed in EPFO and is unusable

Government of India's Employees Provident Fund Organization (EPFO) which has
accumulated to the tune of Rs 3,837 crore, even as EPFO is making efforts to trace those who have not taken their dues.

"As the money, lying in the inoperative accounts belongs to the members or their heirs, and is payable at any time when claims are received. It cannot be utilised for any other purpose," Minister of State for Employment Harish Rawat said in the Lok Sabha. He said that as of March 31, 2008, money to the tune of Rs 3,837 was lying unclaimed in the inoperative accounts of Employees Provident Fund.

In a written reply in the House he said instructions have been issued to all field officers of EPFO to scrutinise the claims of the inoperative account holders and release the amounts only to the rightful claimants.

EPFO on its part is also making efforts to trace out the beneficiaries through advertisements in newspapers and inviting those who have not preferred their claims for more than three years after leaving their job.

Indian Government not to monetise debt

The Government on Tuesday categorically said that it has "no intention" to monetise its debt, which implies that it will not directly borrow from the Reserve Bank of India.

"Government has no intentions of monetising its debt," Finance Minister Pranab Mukherjee told Lok Sabha in his reply to the debate on Union Budget (read budget highlights).

He said during the first half of 2009-10, the Government plans to borrow Rs 2.41 lakh crore from the market and RBI is supporting it through its Open Market Operations (OMO), through which the central bank releases or sucks money from the market against government securities.

"OMO should not be confused with monetisation of debt," Mukherjee said. Monetisation of the Government debt would be when RBI directly subscribes to the Government paper.
(read budget highlights).
As fiscal deficit is projected to be at 6.8 per cent of GDP this fiscal and the Government has pegged its market borrowings at around Rs 4 lakh crore for 2009-10.

Mukherjee also dispelled fears that higher government borrowings would leave little resources for the private sector and would increase cost of borrowings, as also apprehensions that the private sector will be elbowed out due to this.

Govt rules out possibility of banning of meat export

The government on Monday ruled out banning the export of meat and said doing so would not be in the interest of the livestock sector.(read budget highlights).

"Considering the overall development of livestock sector, the government is not in favour of ban on the export of meat," Minister of State for Commerce and Industry Jyotiraditya Scindia said in a written reply to Lok Sabha.

Scindia said representations were received from Maharaja Kumarapal Jeevadaya Trust, Munoth House and Dhahraj Baid Jain College for imposing ban on the export of meat.

"However, export of cow and veal meat from India is banned," he said.

According to official data, in April-January 2009, India exported about Rs 2.86 crore meat and meat products, against Rs 2.65 crore in the corresponding period last year.

The country, on June 5, banned import of live stock and its products for a period of six months in the wake of Swine flu.(read budget highlights).

courtesy - economictimes.com