CII's Survey projects growth of 6-7 % for present fiscal year

(posted under - Indian economy news) - Out of 134 respondents participated in the CII Northern Region Business Outlook Survey, more than half said that India's economic growth is likely to be in the range of 6-7 per cent in the current fiscal.

"Global economic instability followed by slackening consumer demand are the two most important concern areas," it said.

The survey also said that the overall outlook for business is better for the current six months (October-March 2009-10) compared to the previous six months.

Over 50 per cent of the respondents expects an increase in investments during the current six months.

On exports, it said that the outward shipment seems to be much better for October-March. "Fifty-one per cent of the respondents expected an increase in volume of exports," it added.

India's exports are on downslide since October 2008 due to the global slump in demand.

Government of India approves FDI's worth over 1150 crore

(posted under - FDI's in india) - The government of india has approved 17 foreign direct investment (FDI) proposals worth Rs 1,158.78 crore.

Among the major proposals which were approved today are the FDI applications of the world's largest steelmaker ArcelorMittal and ductile iron pipe maker Electrosteel Castings, a government statement said.

ArcelorMittal, with an FDI of Rs 503.37 crore, plans to infuse foreign equity into a company engaged in manufacturing cold-rolled semi-finished iron and steel products.

The Kolkata-based Electrosteel Castings plans to issue and allot eligible securities including equity shares and/ or non-convertible debt instruments along with warrants on a private placement basis bringing in FDI worth Rs 600 crore.

Meanwhile, the government deferred a decision on 12 FDI proposals and rejected five on the recommendations of the Foreign Investment Promotion Board (FIPB).

The proposal to infuse 100 per cent foreign equity by Jaipur IPL Cricket Pvt Ltd (the promoters of the Rajasthan Royals which won the 2008 IPL), has been rejected by the government.

The government referred the proposals of Jet Airways to bring in Rs 2,000 crore FDI and the Mauritius-based investment fund Indium IV to bring in Rs 2,500 crore FDI, to the Cabinet Committee on Economic Affairs (CCEA) as the proposals are of value above Rs 600 crore.

Cheers - Indian economy to be worth $ 2 trillion by fiscal year 2014-15

India will be a $2-trillion economy in the next five years as its GDP growth is likely to average at 12 per cent in nominal terms powered by a huge consumption demand, Enam Securities has said.

"India's GDP is likely to grow at (an) average 12 per cent in nominal terms. Hence, India will be a $2-trillion economy by 2014-15," Enam Securities Head-Research, Nandan Chakraborty, and economist Sachchidanand Shukla said in a report titled 'India Strategy' released today.

This growth will be led by the huge consumption demand in sectors like FMCG, power, auto (small car hub), IT and pharma, it added.

The brokerage firm said insurance companies, financial services and equity markets will flourish as the country's annual savings pool grows to $700 billion from $400 billion at present.

"More than half of this ($700 billion) could flow into financial savings. With favourable demographics and average seven per cent real growth, India can sustain more than 30 per cent savings rate akin to the Asian tigers, or China and Japan. This will transform the domestic financial services space," Enam said.

Life insurance penetration in India, which is already a USD one-trillion economy, is estimated to reach a level of 4.4 per cent over the next two years as insurance companies focus on expanding into rural India, the report said.

source - economictimes