US economy slid at 6.1% in first quarter

(29/4/2009 - US Economy Updates) - The US economy contracted at a 6.1 percent annual pace in the first quarter of 2009, the government said Wednesday, signaling little improvement in a deep recession.

The Commerce Department's first estimate of gross domestic product (GDP) was a disappointment to forecasters expecting a 4.7 percent decline, and marked only a marginal improvement over the 6.3 percent drop in the fourth quarter of 2008.

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The decline marked the third consecutive quarter of contraction for the world's biggest economy, which had not occurred since 1974-1975.

The steep fall was the result of falling exports, declines in business and household investment and a weak housing market, offset in part by improved consumer spending.

Consumer spending rebounded in the quarter, growing 2.2 percent after falling 4.3 percent in the last quarter of 2008.

But even though consumer activity makes up the lion's share of activity, it was not enough to offset hefty declines in other segments of the economy.

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Investment in housing or residential structures fell 38 percent and spending on nonresidential business investment slumped 37.9 percent including a 33.8 percent drop in software and equipment.

Exports tumbled 30 percent and even government investment fell 4.0 percent.

posted under - US economy, economy of US, economic updates, US economic updates

Indian Inc's overseas investment slips 11 percent - RBI

(23/4 Indian Economy updates -the slowdown effect) - Facing the pangs of slowdown, India Inc appears to have restrained from overseas mergers and acquisitions as the country's foreign investment slipped by over 11 per cent during April-December 2008, says Reserve Bank.

"During the first nine months of 2008-09, 2,828 proposals amounting to $16,352 million were cleared for investments abroad in JVs (joint ventures) and WOSs (wholly owned subsidiaries), as against 1,595 proposals amounting to $18,437 million during the corresponding period of the previous year," the central bank said in its April Bulletin.

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Even though the number of proposals recorded an increase of 77.3 per cent, amount invested by India Inc on overseas ventures dipped by over 11 per cent during the period.

There were a total of 2,828 proposals during the first nine months of 2008-09 against 1,595 proposals in the corresponding period previous year.

"During the quarter, October-December 2008, proposals amounting to $7,409 million were cleared for investments abroad in JVs and WOSs, as against $7,882 million during October-December 2007, the RBI said.

posted under - RBI updates, economic updates, economy of india, indian economy slowdown, slowing economy, asian economies, indian rupee, economy of india

Rs v/s US$ daily updates - February 2009

Indian economy trends are very important for those who are into economic analysis in India, Indian National rupee popularly known as INR in international market is following a downward trend due to global financial turbulance. As volume of US dollars (USD) in international markets is on a decline so the value of US $ is growing up, well indian IT industrycan feel better to some extent and is the only industry which would be getting a plus from current market scenario.

The post would include (US$ v/$ rupee) daily trends the rate shown of Indian rupee would be as displayed at time of stock markets closure(mainly BSE and NSE) you can also see daily Stock market live rates and closing rates.

INR(Indian National rupee) v/s US$ November trends/updates are as follows:

format for display of rs v/s $ would be in following order:

(date | RS v/s $ rate Daily trends updates | Remarks with respect to US $)

6/2/2009 | 48.82 | Down(0.17) | Rupee (INR) fell weaker by 17 paise wrto US $

4/2/2009 | 48.80 | Down(0.21) | Rupee (INR) fell weaker by 21 paise wrto US $

2/2/2009 | 49.02 | Down(0.12) | Rupee (INR) fell weaker by 12 paise wrto US $

India not a trade friendly nation - World Economic Forum

Hong Kong and Singapore are the two economies most conducive to global trade, according to a ranking by the World Economic Forum released on Wednesday. The World Economic Forum's new Global Enabling Trade Index survey of 118 economies looked at ten factors impacting trade, such as tariffs, customs administration efficiency and availability of transport and communications infrastructure.

The forum ranked Hong Kong number one thanks to its "very open market" as well as a "secure and open business environment." Singapore's open business environment was also complemented by a "highly efficient and transparent border administration" and a well-developed transport and communications infrastructure.

Third and fourth places were taken by Sweden and Norway respectively, while Canada was ranked fifth. The world's largest economy United States, however, did not figure in the top ten, coming in at number 14, dragged down by its border administration, judged to be "lacking some efficiency." "Customs procedures (in the United States) are seen as comparatively burdensome (ranked 42nd) and there is a relatively high cost to import (ranked 65th)," said the WEF.

Export giant China fared even worse, ranked just 48th, reflecting "underlying weaknesses in its economy and its trading regime." "Above all, China is a fairly closed country. Although its economic success relies heavily on exports, imports are still severely inhibited by tariff and non-tariff barriers, despite the country's accession to the WTO," it said. Fellow Asian giant India ranked even further down the list, at 71st place, due to its market access, which is rated as "severely restricted." Brazil was not far behind India, at 80th place, as its markets remain "fairly closed, with tariffs... inhibiting goods imports."

India, China growth cannot offset global slowdown

Emerging economies such as China and India are growing faster than the rest of the world but still lack the firepower to offset weaker growth in the US and European Union, Fitch Ratings said Monday.

The main emerging markets commonly known as BRIC -- Brazil, Russia, India, and China -- remain very dependent on exports to the industrialised economies with a combined trade surplus of 500 billion US dollars, said James McCormack, head of sovereign ratings in Asia for Fitch.

"The trade flows do not support the emerging markets contributing to offset a recession in the US and weakness elsewhere," McCormack said at a Fitch conference in Singapore.

Many economists say the United States, the world's largest economy, is effectively in recession.

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Some analystts have seen the rapid economic expansion in India and China as reasons for optimism even if the US and other advanced economies weaken.

But Fitch Ratings argues otherwise. "They (BRIC economies) are running very large combined trade surpluses in the order of 500 billion dollars... so if there's weakness in the advanced economies, you are going to see weakness in the emerging markets," McCormack said.

"The trade flows are going the other way, so the conclusion that we reached is that strong growth in the emerging markets is not really going to help offset weakness in the advanced economies."

Both India and China still account for a relatively small portion of global imports which means their economies' influence on international growth is limited, the US ratings agency said.

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India only accounts for two percent of the world's gross domestic product, said McCormack.

"So in some sense, it doesn't matter how fast India grows and it's not a very open economy," he added.

"It's not really going to contribute to stronger growth in other markets. It doesn't import that much. It's just too small." - Fitch Ratings.

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Indian economy not likely to slowdown - Lehman Brothers

Anti-inflationary measures are unlikely to turn India into a slow growing economy, while other Asian nations could face the situation of rising prices and economic stagnation, a latest report says. "We do not believe that India would be affected significantly in a stagflation scenario and growth would remain strong in relative terms...," global research firm Lehman Brothers said in a recent research report.

However, even as the economic growth is projected to remain strong, interest-rate sensitive stocks could be adversely impacted during stagflation situation in Asia. Stagflation refers to a situation when inflation is rising and the economic growth is simultaneously slowing down. The negative impact is likely be felt by interest rate-sensitive stocks or by companies that are not in a position to pass on cost pressures to consumers, Lehman said.

Further, investment spending is unlikely to witness a substantial slowdown primarily on account of significant shortages in key sectors such as steel and power. The report pointed out that risks out of a stagflation scenario would be high for the banking sector, infrastructure, automobile and cement firms. "The risks are significant for part of the banking sector, companies with a high proportion of fixed-price contracts and companies with high energy usage without the ability to pass on increased costs," it said.

Lehman noted that in India inflation would remain on the higher side for some more time due to the base effect -- which relates to the inflation data of the corresponding week in the previous year. Given particular prices in the current week, inflation would turn out to be higher, if it was a small number in the previous year, but would be less, if it was high a year ago. In addition, the report said that inflationary headwinds would lead to increased fiscal deficit and negatively impact the country's expansion plans. "One of the major reasons for India's premium expansion has been the reduction in fiscal deficit, a process which could be derailed in the short term due to inflationary headwinds," it added.

The government has initiated fiscal and monetary measures to lessen the effects of inflation on consumers. However, according to the report, some of these measures does not reflect the "true market economics." "If the inflation period is prolonged, we expect the government to start passing on some of the suppressed price increases (especially those relating to crude oil and fertilisers) in small doses. However, we do not expect this anytime soon, given the proximity of the elections, the report pointed out.

- economic times

Weakening Indian Rupee -and Reason behind it

It has been noticed that indian national rupee(INR) is weakening and it is also clear that US dollar is weakening too!! so why is INR weakening????

This question might be arising in every economist mind and they might not be sure why there is decline in value of indian rupee??

Indian economy grew at nearly 10% last fiscal year but the growth rate of indian economy projected for this fiscal year would never be met and finance minister has to rethink about the growth rate percentage which he kept in mind while making the Union finance budget for year 2008-09 in february this year.

Last year the foreign direct investments(FDI) in India crossed every target and was in huge amounts, US $ was flowing into indian subcontinent as water due to which US $ was wandering at under 40 INR mark till february 2008. this was the time when USA was considering india as a potential country . Since at that time US $ was coming to india itself so the reserve bank of India(RBI) stopped purchasing the US $ to keep $ buffer (every country keeps US $ into it's buffer for controlling the economic conditions of that particular country.


When US companies felt that there were few countries in Asia and Africa which offered better oppurtunities then india so the companies which had invested in india started to take out their money for investing in other countries due to this action of the US companies the US$ inflow into india started declining and Indian rupee started weakening.


Now RBi had to come into action and had to purchase US $ on it's own for maintaining the buffer level of US $ in Indian subcontinent but this action of RBI can never match to the rate when US $ were being invested in Indian subcontinent by US companies directly so the INR started weakening as the reserve US $ in RBI's buffer declined and rupee weakened further.


Now indian rupee can become strong only in case the investment from US companies start pouring into india again at the same rate at which it was in previous fiscal years. Moreover tremendous increase in crude oil prices are also weakening the india rupee further as the oil import bill by indian companies has increased almost 50% and all are incurring losses.


We should also be prepared for huge rise in petrol and diesel retail prices in future , the rise in petrol would have been in order of INR 10/litre for the government if government passed whole burden onto the general population and similar increase would be there in case of prices of diesel. and it is evident that inflation would also increase further in coming future.

So government has increased commision on filling stations by INR 29/Kilolitre for petrol and INR 31/Kilolitre for diesel however retail prices has increased by INR 0.04 / litre so people have been effected to less extent with rise in petrol/diesel prices . However crude oil prices will touch $200 /barrel mark in this year itself so further rise in petrol and diesel prices is on the cards and inflation will rise further in near future.

Economy of India | Indian Economy Developments

A major factor that contributed to the second most-populous nation on the planet achieving this milestone, in April, was the sharp appreciation of the Indian rupee against the U.S. dollar. Whereas Indian currency has been gradually appreciating against the U.S. greenback over the last few years, what took many by surprise was the sudden and sharp appreciation during the months of March and April when the exchange rate came down drastically, from just under Rs 45 to the U.S. dollar to less than Rs 41 to the dollar or a change of roughly 8.5 percent in less than 40 working days.

By way of contrast, the rupee had appreciated by only 2.3 percent vis-a-vis the dollar between Apr. 1, 2006 and Mar. 31, 2007 (the Indian financial year). In this period, the Indian currency gained 2.7 percent against the Japanese yen but depreciated by 6.8 percent against the euro and by 9 percent against the British pound. The appreciation of the rupee has made Indian exports more expensive in markets where transactions are designated in U.S. dollars while making imports relatively inexpensive.

Analysts are of the view that the Reserve Bank of India (RBI), the country's central bank and apex monetary authority, has consciously allowed the rupee to strengthen as part of a package of policies aimed at controlling domestic inflation. In recent months, inflation in India, as measured by the official wholesale price index, had threatened to cross the 7 percent mark and is currently hovering in the region of 6 percent. The Indian economy is currently one of the fastest growing in the world --it has grown by an annual rate of over 9 percent for two successive years and by an average of over 8 percent over the last four years, both for the first time since the country became politically independent 60 years ago.

At the same time, this growth has not been inclusive because it has bypassed large sections of the population and swathes of territory, mainly in the east and the north. One out of four of the 1.1 billion citizens of India live on less than one U.S. dollar a day. "The reason why the RBI is not intervening in the currency markets to depreciate the value of the rupee is because it wishes to cushion the economy from the imported variety of inflation at a time when international prices of crude oil are in the region of 65 dollars a barrel," explains Amitendu Palit, visiting fellow at the Indian Council for Research on International Economic Relations, a New Delhi-based think tank. India currently imports roughly three-fourths of its requirement of crude oil.

Palit told IPS that part of the reason why the rupee has strengthened against the dollar is because the U.S. currency has itself steadily weakened against hard currencies like the yen, the euro and the pound. He said that if the RBI purchased more dollars to keep its price up, it would increase domestic money supply and add to inflationary pressures. Palit is of the view that a strong rupee would have a negative short-term impact on the growth of "price-elastic' exports such as computer software, IT-enabled services (or business process outsourcing), garments and textiles. During financial 2006-07, India's merchandise exports touched 125 billion dollars, implying an annual growth of nearly 23 percent. Imports grew at a faster 25 percent with crude oil accounting for close to one-third of the total value of imports during the year.

Exports have doubled over the last three years. India's share of world trade, however, still remains negligible, growing from 0.76 percent in 2003-04 to over one percent at present. During this period, inflows of foreign direct investment have jumped from 2.2 billion dollars to 16 billion dollars (and this amount excludes retained earnings that have been reinvested). "I expect the rupee to continue to appreciate gradually, not suddenly, over the next year or so and the dollar to go below the level of Rs 40," says Manoj Pant, professor of economics at New Delhi's prestigious Jawaharlal Nehru University. He told IPS in an interview that the government and the RBI wanted to "send a clear message to exporters that they could not expect to continue receiving preferential treatment".

While there is considerable concern among economists that the Indian economy is "over-heating" and that the benefits of economic growth have not been evenly distributed among all sections of the population, others are optimistic about the country's "growth story". A report prepared by Credit Suisse bank pointed out that over a year after their economies crossed the one trillion dollar mark, eight out of ten countries witnessed bullish trends in their stock markets.

The report added that the combined wealth of the estimated 20 million non-resident Indians is currently more than one trillion dollars, which is the gross domestic product of the entire Indian economy. The recent rise in the rate of growth of the Indian economy has been fuelled by a sharp rise in manufacturing output and the services sector. Among the services that have been growing very fast are IT-enabled services and computer software. These are the segments of the economy that are now likely to be adversely impacted by the appreciation of the rupee.

"Companies that were exporting software and IT-enabled services were shocked by the sudden rise in the value of the rupee vis-à-vis the dollar because the bulk of their business was designated in dollars," points out D.K. Joshi, director and principal economist, CRISIL Ltd. (earlier known as Credit Research and Investment Services of India Ltd.). In an interview with IPS, Joshi added that the "profit margins of companies exporting IT services would be squeezed and they would certainly fight back by increasing their billing rates in dollar terms." Even if the rate of growth of computer software and IT services exporting firms slows down, analysts IPS spoke with were reasonably optimistic that the deceleration brought about by the sudden strengthening of the rupee in relation to the dollar would be a passing phenomenon.

India's commerce minister Kamal Nath has set ambitious export targets of 160 billion dollars and 200 billion dollars respectively for the country over the next two years. He told journalists on Apr. 19 that the Indian government had taken into account the likely slowdown in the U.S. economy while setting these targets. India's trade basket, he said, was quite wide, claiming that the expected slowdown in the U.S. economy would not have a major impact on the country's exports.

Crude Price on all time high

Global crude oil prices are on a all time high of US $ 125 per barrel and is adversly effecting the balance sheet of indian economy, probably it is also a reason of depreciating value of indian rupee when compared with US $ .

Crude prices could reach higher levels over the next few months as the winter season in the northern hemisphere gets under way.
Although the price of the basket of crude relevant for India is ruling at a much lower level than $55, the effect of higher crude prices is bound to affect the profitability of a swathe of companies, especially in the manufacturing sector, as costs of energy, fuel and transportation could start to spiral.

Even if the Government decides to limit the price increases by seeking recourse to further cuts in excise and customs duties, and requiring oil companies to bear an even greater part of the burden, profitability and growth rates could be affected as growth rate of the global and the Indian economy slows down. Market sentiment could also be influenced in a negative manner if liquidity in global markets dries up and a flight to safe assets and safer currencies set in.
Investors as such should consider adopting a cautious approach to buying equities, by staggering investments over a period of time, and partial profit booking on deep-in-the-money positions, may be appropriate. This could mitigate any downside risk that could envelop the markets due to the bullish trend in crude prices that is driven by a combination of robust demand and speculative activity.

The positive aspect of the crude prices story is the likely boom in construction activity in the Gulf countries. This could be an opportunity for companies such as Larsen & Toubro and Voltas, which have executed several projects in the region that could serve as a reference point for bagging more orders, and Gujarat Ambuja Cements, which appears well set to capitalise on the sharp spurt in cement prices in export markets.

The latter's earnings numbers for the July-September quarter have been buoyant with a fillip from exports as well as higher domestic prices, and there could be a further scaling up over the next few quarters. There are others that could benefit from the anticipated construction boom.
For now, we prefer the stocks of these companies, which have an established presence, higher efficiency levels that could compensate partially for rise in input costs and limited downside risks as large-cap stocks. Stock-specific recommendations of Business Line, however, will take precedence over this broad-investment strategy.
- Hindu Business line

Economy of India Growth Pattern - Latest Updates

It has been predicted that by 2035 there would be three major economies of world - US economy, Indian Rupee, Chinese Economy. and the growth rate of indian economy for makin this prediction correct has somewhat slowed down in this fiscal year due to global economic woes. Indian economy is a diversified economy with agriculture sector still the greatest job provider.

Indian INC's are making global impact and every second day we can listen news
about indian company's acqisition of some other company. Global Acquisitions by Indian companies are making the impact of indian economy on a global scale.

India's economy is on the fulcrum of an ever increasing growth curve. With positive indicators such as a stable 8-9 per cent annual growth, rising foreign exchange reserves, a booming capital market and a rapidly expanding FDI inflows, India has emerged as the second fastest growing major economy in the world.

The economy has been growing at an average growth rate of 8.8 per cent in the last four fiscal years (2003-04 to 2006-07), with the 2006-07 growth rate of 9.6 per cent being the highest in the last 18 years. Significantly, the industrial and service sectors have been contributing a major part of this growth, suggesting the structural transformation underway in the Indian economy.

For example, industrial and services sectors have logged in a 10.63 and 11.18 per cent growth rate in 2006-07 respectively, against 8.02 per and 11.01 cent in 2005-06. Similarly, manufacturing grew by 8.98 per cent and 12 per cent in 2005-06 and 2006-07 and transport, storage and communication recorded a growth of 14.65 and per cent 16.64 per cent, respectively.

Another significant feature of the growth process has been the consistently increasing savings and investment rate. While the gross saving rate as a proportion of GDP has increased from 23.5 per cent in 2001-02 to 34.8 per cent in 2006-07, the investment rate-reflected as the gross capital formation as a proportion of GDP-has increased from 22.8 per cent in 2001-02 to 35.9 per cent in 2006-07.

The growth pattern for this year has been robust with every sector's growth seen in green colour. some of the details about sectoral growth patterns is as follows :

The process continues in the current fiscal year. On the back of 9.9 per cent growth in the first half of 2006-07, GDP grew by 9.1 per cent during April-September 2007.

* While overall industrial production grew by 9 per cent during April-December 2007, importantly capital goods production rose by 20.2 per cent compared to 18.6 per cent during same period in 2006.
* Services grew by 10.5 per cent in April-September 2007, on the back of 11.6 per cent during the corresponding period in 2006-07.
* Manufacturing grew by 9.6 per cent during April-December 2007, on the back of 12.2 per cent growth during same period in 2006-07.
* Core infrastructure sector continued its growth rate recording 6 per cent growth in April-November 2007.
* While exports grew by 21.76 per cent during April-December 2007, imports increased by 25.97 per cent in the same period.
* Money Supply (M3) has grown by a robust 22.8 per cent growth (year-on-year) as of December 21, 2007 compared to 19.3 per cent last year.
* The annual inflation rate in terms of WPI was 3.5 per cent for the week ended December 29, 2007 as compared to 5.89 per cent a year ago.
* Fiscal and revenue deficit decreased by 11 per cent and 17.2 per cent, respectively, during April-November 2007-08 over corresponding period last year.

With such a robust growth rates, the advance estimates of the Central Statistical Organisation (CSO) expects the economy to grow by 8.7 per cent in 2007-08.

Highlights of Indian economy for present fiscal year are as follows :

Reflecting the favourable prospect of growth rate of Indian economy, the orders received Indian companies have increased by a whopping 68.6 per cent to US$ 32.48 billion during January-October 2007 compared to US$ 19.26 billion in the same period last year.

* India is among the five countries sharing 50 per cent of the world production (or GDP).
* FDI inflows have jumped by almost three times to US$ 15.7 billion in 2006-07 as against US$ 5.5 billion in 2005-06.
* The aggregate income of the top 500 companies rose by 28.4 per cent in 2006-07 to total US$ 469.51 billion.
* India's National Stock Exchange (NSE) ranks first in the stock futures and second in index futures trade in the world.
* Twenty Indian firms have made it to the list of Boston Consulting Group's 100 New Global Challenger Giants list.
* According to a study by the McKinsey Global Institute (MGI), India's consumer market will be the world's fifth largest (from twelfth) in the world by 2025.
* The number of companies incorporated has increased at an annual average of 55,000 companies in the last two years to 865,000, from 712,000 companies at the end of 2005.
* Four Indians and seven Indian microfinance companies make it to the Forbes list of Top10 world's wealthiest CEOs World's Top 50 Microfinance Institutions, respectively.
* India has the most number of private equity (PE) funds operating amongst the BRIC markets.
* Mumbai has been ranked tenth among the world's biggest centres of commerce in terms of the financial flow volumes by a survey compiled by MasterCard Worldwide.

Another significant aspect has been the broad-based nature of the growth process. While new economy industries like Information Technology and biotechnology have been growing around 30 per cent, significantly old economy sectors like steel have also been major contributors in the Indian growth process. For example, India has moved up two places to become the fifth largest steel producer in the world.

And with its manufacturing and service sectors on a searing growth path, Lehman Brothers Asia estimates India to grow by as much as 10 per cent every year in the next decade.

It is seen that the per capita income of india is on a rise the following report sums up the per capita income growth trends:

Along this significant acceleration in the growth rate of Indian economy, India's per capita income has increased at a rapid pace, exceeding an earlier forecast made by Goldman Sachs BRIC report which estimated India's per capita to touch US$ 800 by 2010 and US$ 1149 by 2015.

Per capita income has increased from US$ 460 in 2000-01 to almost double to US$ 797 by the end of 2006-07. In 2007-08, India's per capita income is estimated to be over US$ 825.07, according to the advance estimates of the Central Statistical Organisation (CSO). Further, India's per capita income is expected to increase to US$ 2000 by 2016-17 and US$ 4000 by 2025. This growth rate will, consequently, propel India into the middle-income category.

Global Acquisitions by indian firms puts India firmly on major economies

Tata Motors came into global limelight as an automobile major in early 2007 or even earlier when news of the cheapest world car was out of the tata's stable, Launch of tata nano (the $ 2500 car) turned all heds towards the tata motors and every major auto maker now want to replicate the same model but will never able to make a car even cheaper then the Tata's nano due to the cheapest input cost of nano, and the advantage with tata's is that they can use their own homemade steel for making the chasis of their vehicles which other companies have to purchase from other steel companies.
The launch of Tata Nano was much hyped so that the whole world notices the nano and Tata as a global automobile major with a surprise to come later in the year. the world never knew that the year 2007 was year of Tata Motors's brand acquisitions of the JAGUAR and LAND ROVER the iconic british car brands famous through out the world for their excellent cars in luxury car market.

Some still think that tats'a have played much bigger then they can by acquiring JAGUAR and ROVER car companies which were owned by the ford motor company of United states of America.

It may also be recalled that in 2007 the Toyota Motor Corporation surpassed General Motors to become World's number 1 automobile company. Now every car maker want to replicate the Toyota model to make their car company's revenue much larger and Tata's are no exception.

It took 3 decades for the japanese auto maker to enter into the luxury car market .

Toyota is the gold standard that aspiring auto-makers look to. Synonymous with Japanese quality, Toyota got to its premier position in the world auto stakes by a combination of production efficiency, high quality and delivering unsurpassed value to the customer. Toyota fans call a Honda, “a fake Toyota”, seemingly referring to Honda following in Toyota’s footprints and achieving similar status in terms of quality and value. Similarly while a growing company like Hyundai benchmarks its cars against Toyota competitors, a relatively “old-world” company like Volkswagen re-designed its production process based on inputs from Toyota engineers.

Still Toyota did not move beyond its economy and hence cheap image in the Western world till the introduction of its luxury brand, the Lexus. The strategy was such a success that other Japanese auto makers quickly jumped onto the bandwagon. The Lexus strategy had a curious side-effect on the overall Toyota bouquet of products. Unlike how the European companies built their luxury cars, Toyota continued to use the production line using strict quality control to drive efficiency. As a result the luxury cars did not cost significantly more than the regular line-up. While this revolutionized the luxury car market, it also worked wonders for its non-luxury line-up as the superior styling and finish of the luxury models began to rub-off on the rest of the portfolio.

Tata Motors has only taken baby steps towards becoming a global automaker. But the newly-acquired the availability of true luxury brands within the stable allows the company to learn what it takes to give its cars the aspirational value they need to succeed in the Western markets.

In addition to taking design lessons, Tata Motors can also benefit from the world-class R&D facilities, and an established global marketing network. Also while the Jaguar-Land Rover brand image will work wonders for Tata Motors’ own image, there is a danger that it would dilute the value of the British brands. So if the Tatas make it clear that they will treat the new companies as prized possessions that they will take pains to nourish and grow, while also using them as a huge opportunity to learn, then that should allay fears of brand dilution, while keeping the existing jobs and helping the Tatas as they build up their portfolio of vehicles to fill the gap between the SUVs and the luxury vehicles, in terms of both products and aspirational value.

So keep your fingers crossed and wait 2-3 years to see the technology of jaguar and rover brand embedded into indian made tata cars.

Indian Economy Updates | Latest agriculture / trade News

April 2008 Indian Economic Updates :

Agriculture April 2008 Latest Updates :

• Mizoram govt distributes paddy seeds to farmers free of cost - (18/4/2008)
• Govt pressed to compensate farmers - (17/4/2008)
• Karuturi Global to buy Dutch firm Florinex - (17/4/2008)
• Rs 25kcr plan to boost farm output: Pawar - (16/4/2008)
• Poll-bound states likely to put stock limits on wheat - (16/4/2008)
• Rain & hail may set wheat prices on fire - (15/4/2008)
• Agriculture needs investments to handle supply issues: IDBI - (15/4/2008)
• Govt may meet wheat target as pvt players shy away from buying - (14/4/2008)
• 20 farm suicides in three days in Vidarbha - (13/4/2008)
• Need to raise loan waiver upto 10 hectares farm land:Coop body - (13/4/2008)
• Potato farmers struck by distress sale - (13/4/2008)
• Expert expects potato prices to stabilise at Rs 5-6 a kg - (13/4/2008)
• Maharashtra's sugar output to dip by 6%, export up by 42% - (13/4/2008)
• Efforts being made to get more rice from central pool, AP - (12/4/2008)
• Haryana to launch campaign for seed treatment - (12/4/2008)
• Cashew corp to launch health drink, soup - (12/4/2008)
• Govt may allow premium non-basmati exports: Exporters - (11/4/2008)
• Country needs higher pulses imports in FYO9: Trader - (11/4/2008)
• Basmati seen steady in tight market - (11/4/2008)
• World sugar prices seen at 12-15 cents/lb: ISO - (11/4/2008)
• Big cos may prefer MP, Rajasthan to Punjab for wheat lifting - (10/4/2008)
• NABARD gears up to start farmers' loan waivers by June - (9/4/2008)
• Rs 393.33 cr in crops lost due to Kerala rains - (8/4/2008)
• 2008 wheat output to top 75 mn tonnes - (8/4/2008)
• Govt not to raise wheat procurement price: Pawar - (7/4/2008)
• Orissa govt to soon declare new agriculture policy - (7/4/2008)
• Untimely rains may hit mango production, price rise likely - (6/4/2008)
• Wheat crop under threat as widespread rain lashes region - (6/4/2008)
• FAO predicts increased rice production in Asian countries - (3/4/2008)
• Soaring food prices to help farmers - (2/4/2008)
• Non-basmati export ban decision hasty: Exporters - (2/4/2008)
• Higher wheat crop globally to check prices - (2/4/2008)
• Changing food habits fuelling demand for wheat: Pawar - (1/4/2008)
• MNRE submits draft composition for National Biofuel Dev Board - (1/4/2008)
• Punjab govt announces Rs 16.35 crore relief for farmers - (1/4/2008)
• Mango production to go up 12 pc this year- (31/3/2008)

April 2008 Trade with Foreign Updates :

• India wants better connectivity with Bangladesh - (20/4/2008)
• Trilateral alliance not aimed at creating power bloc: India - (19/4/2008)
• Canada calls for stronger economic ties with India - (19/4/2008)
• India wants two-way trade with US: Ronen Sen - (19/4/2008)
• US small business agency to promote exports to India - (19/4/2008)
• US housing slump hits India's furniture exports - (19/4/2008)
• India to import 80 lakh tons of urea this year: Paswan - (18/4/2008)
• India, Mexico sign agreements in civil aviation, energy - (18/4/2008)
• WTO ministerial on May 19 to help wrap up Doha talks - (18/4/2008)
• India questions US legislation on scanning all imports - (17/4/2008)
• Indo-US business unaffected by rupee rise, sub-prime crisis - (10/4/2008)
• Indo-Malaysia trade opportunities galore - (10/4/2008)
• Schemes to be launched for promoting ornamental fish export - (9/4/2008)
• India, UK SMEs eye tie-ups ahead of Commonwealth, Olympics - (9/4/2008)
• Russia seeks enhanced economic ties with India - (9/4/2008)
• India to export about 2.1 mlnT of corn by May '08 - (9/4/2008)
• Oilmeals export earning jumps 65% to Rs 7,109 cr in FY'08 - (8/4/2008)
• India, Kazakhstan to get into projects-specific mode in oil sector - (8/4/2008)
• There's tremedous potential for growth of US-India trade: US - (8/4/2008)
• India's ties with Africa distinct from others - (7/4/2008)
• EU, US renew pressure on India's import ban on animal products - (7/4/2008)
• India-Africa trade can touch $50 billion by 2012: FICCI survey - (7/4/2008)
• Govt to facilitate cement import from Pakistan - (7/4/2008)
• Cross-border Indo-Pak trade along LOC on the anvil - (7/4/2008)
• Exporters should change biz models,cut dependence on govt: Survey - (6/4/2008)
• Seafood exports from India registers 12 pc fall - (5/4/2008)
• WTO calls off Doha trade meeting planned for April - (5/4/2008)
• Qureshi hints at reassessing no-Indian investment policy - (4/4/2008)
• CSEZ achieves 70 per cent growth in exports - (4/4/2008)
• 'India-Africa summit will boost South-South cooperation' - (4/4/2008)
• Govt withdraws sop on basmati rice export to check inflation - (4/4/2008)
• India, Myanmar inks double taxation avoidance treaty - (3/4/2008)
• US embarking on global energy ties with India - (3/4/2008)
• India agrees to supply rice to crisis ridden Sri Lanka - (3/4/2008)
• India asks developed nations to end protectionism - (3/4/2008)
• India sugar exports to fall in next crop year: LMC - (3/4/2008)
• India-Australia tie-up on cards for flexible GI shield - (3/4/2008)
• Sugar exports to dominate trade conference - 1/4/08

Indian Economy - Rupee v/s US $ daily trends - April 2008

Daily rupee trends against US $ date wise for april 2008 (at stock market closing time):

24/4/2008 : (Rs v/s US $) - 39.95 - Down(-0.01)

19/4/2008 : (Rs v/s US $) - 39.96 - Down(-0.17)

17/4/2008 : (Rs v/s US $) - 39.79 - Up^0.16

16/4/2008 : (Rs v/s US $) - 39.95 - Down(-0.11)

15/4/2008 : (Rs v/s US $) - 39.84 - (No change)

14/4/2008 : (Rs v/s US $) - 39.84 - Up^0.10

11/4/2008 : (Rs v/s US $) - 39.94 - Down(-0.10)

10/4/2008 : (Rs v/s US $) - 39.84 - Up^0.18

9/4/2008 : (Rs v/s US $) - 40.02 - Up^0.09

8/4/2008 : (Rs v/s US $) - 40.11 - Down(-0.14)

7/4/2008 : (Rs v/s US $) - 39.97 - Up^0.06 (wrt 6/4/08 rates)

4/4/2008 : (Rs v/s US $) - 39.97 - Up^0.11

3/4/2008 : (Rs v/s US $) - 40.08 - Down(-0.09)

2/4/2008 : (Rs v/s US $) - 39.99 - Down(-0.02)

1/4/2008 : (Rs v/s US $) - 39.97 - Up^0.14

Indian Business | Energy Sector latest Updates

Energy sector is very important sector of indian economy as it includes some of the heavy weights of indian industry like ONGC, Hindustan Petroleum, Indian Oil, Bharat Petroleum, Reliance group, Suzlon etc. Updates in energy sector have a lasting impact on indian economy. also update yourself with latest updates from Auto Sector Updates , Jobs Sector Updates , Energy Sector Updates , Media sector Updates , Entertainment Sector Updates , Telecom Sector Updates , Banking Sector Updates , Finance Sector Updates , Healthcare Sector Updates , Biotech Sector Updates , Pharmaceuticals Sector Updates - and get the comprehensive news about growth of indian economy.

Energy Sector consists of both power and Oil and Gas sector which includes many heavyweights of indian industry.

Latest Updates of Energy Sector:

April 2008 Energy Sector Updates :

Power Sector Updates:

• Chinese cos power into equipment market here - (21/4/2008)
• R-ADAG puts Rosa project on fast track - (20/4/2008)
• Haryana to strengthen power generation - (20/4/2008)
• ADB lends $113 mn to India wind power projects - (20/4/2008)
• L&T-MHI set to bag Rs 48,000-cr equipment order - (19/4/2008)
• CLP India to invest Rs 500 crore in Samana power project - (18/4/2008)
• Himachal to provide 2000 MW power to northern states: Dhumal - (18/4/2008)
• DVC poised to become 2nd largest power producer: Ramesh - (18/4/2008)
• Suzlon Energy bags orders for wind farm projects in China - (18/4/2008)
• Power ministry sends new name for NTPC top slot - (18/4/2008)
• GMR buys 5% in S African mine co - (18/4/2008)
• R-ADAG’s Rosa power plant ahead of schedule - (18/4/2008)
• GMR Energy acquires 5 pc stake in South African co - (17/4/2008)
• PGCIL seeks loan from World Bank, ADB - (17/4/2008)
• Power Grid plans Rs 8,040 crore FY-09 capex - (17/4/2008)
• KLG Systel to invest Rs 1.25 bn in power unit - (17/4/2008)
• BHEL may bag NTPC deals at set price - (17/4/2008)
• PFC to issue proposal for Tilaiya UMPP by May 30 - (16/4/2008)
• Bidding process on for UMPP in Jharkhand - (16/4/2008)
• Reliance Power to complete $2 bn ECB issue next month - (15/4/2008)
• BHEL-led consortium may sell Rs 55k-cr equipment to NTPC - (15/4/2008)
• No holds, bar: Reliance Power gets nod for $2-b ECB float - (15/4/2008)
• GVK Power may hive off energy arm - (14/4/2008)
• NHPC to form JV with J&K’s power utility - (14/4/2008)
• Don't ride Re power for overseas M&As: KPMG - (14/4/2008)
• Centre to increase Delhi's electricity quota by 10% - (13/4/2008)
• PM says no to bio-fuel production out of foodgrains - (13/4/2008)
• Haryana to add 5,000 MW of power generation capacity - (12/4/2008)
• TN taking steps to make state power surplus - (12/4/2008)
• Maharashtra sugar co-ops to produce 1,000MW surplus power - (11/4/2008)
• Haryana to spend Rs. 722 crore on strengthening electric transmission - (10/4/2008)
• NTPC to double coal imports in 2008/09:chief - (10/4/2008)
• Govt to slap pre-condition on foreign power equipment cos - (10/4/2008)
• Areva sees robust growth, plans to increase headcount - (10/4/2008)
• Areva T&D targets to double turnover; to invest Rs 700 crore - (9/4/2008)
• No interim relief to Reliance Power in UP land acquisition case - (9/4/2008)
• DHBVN to set up 59 sub-stations of 33 kv - (9/4/2008)
• IFC to lend Rs 1,800 crore to Tata's power project - (9/4/2008)
• Areva T&D India sees sales doubling by 2010 - (9/4/2008)
• World Bank approves $450 mn for Tata Mundra project - (9/4/2008)
• Give power to the people or hang head in shame: Jairam - (9/4/2008)
• Tata to set up 30 mw power unit in Haldia - (9/4/2008)
• Areva T&D bags Rs 418 crore order from Essar Constructions - (8/4/2008)
• RIL, Bhel consider JV for solar fab units - (8/4/2008)
• Four companies shortlisted for solar power projects in Punjab - (7/4/2008)
• APTEL rejects PGCIL plea on outages due to maintenance - (7/4/2008)
• NED Energy completes Gulf Powerbeat buy - (7/4/2008)
• India seeks energy cooperation with Kazakhstan - (7/4/2008)
• Domestic JV to power BHEL overseas buys - (7/4/2008)
• Lanco to invest Rs 18,000 cr for hydro power by 2015 - (7/4/2008)
• BHEL, NPCIL to float N-power equipment JV
• REL's plea on nod to PPA between Tata Power and BEST adjourned
• BHEL bags Rs 50,000 cr order to supply critical equipments
• BHEL, NPCL floats JV for nuclear power projects
• Indiabulls Power receives LoI for Chattisgarh power plant
• BHEL, NPCIL to sign JV agreement on Friday
• NLC achieves all time high performance in lignite production
• PTC India ventures into wind energy sector
• NTPC, UP govt enter JV to set up power plant
• Suzlon Energy's US arm bags 200 MW order
• ADB to give $600 million loan to Power Grid Corp
• PFC floats consultancy arm

Oil and Gas Sector Updates:

• Assam Company for more aggressive in Nelp VII, to raise $ 250-300mn - (21/4/2008)
• Refining margins may pump up RIL net by 35% - (21/4/2008)
• SMEs hit legal hurdles at various stages of growth - (21/4/2008)
• Hong Kong's CLP seeks more natural gas for its project - (20/4/2008)
• Saudi welcomes Indian cos to invest in its energy sector - (20/4/2008)
• India wants to participate in Saudi oil exploration - (20/4/2008)
• ONGC launches redevelopment work on Mumbai High South field - (19/4/2008)
• India Oil wants to market aviation fuel in Sri Lanka - (19/4/2008)
• Govt postpones bidding date for 57 oil & gas blocks - (18/4/2008)
• No need to reveal basis for cheap petrol through cards: CIC - (18/4/2008)
• Govt likely to postpone NELP-VII bid date to May 9 - (17/4/2008)
• IOC refinery to lose tax rebate benefits under proposed Clause - (17/4/2008)
• Asian Naphtha: ONGC offers 35,000 T for May - (17/4/2008)
• Oil at $115 record as dollar, US fuel stocks fall - (17/4/2008)
• Jamnagar refinery ahead of schedule - (17/4/2008)
• Reliance pipeline co files SLP against Andhra HC stay - (17/4/2008)
• OIL, IOC signs pact for oil exploration in Yemen - (16/4/2008)
• RPL to complete Jamnagar refinery project ahead of Dec - (16/4/2008)
• India imports 38% more crude oil in 11 months of FY'08 - (16/4/2008)
• Oil regulator asks IGL to halt setting up new stations - (16/4/2008)
• Venezuela approves law taxing foreign oil companies' windfall profits - (16/4/2008)
• Shell may offer $6.7 bn for 30% stake in RIL's D-6 block - (16/4/2008)
• Tax rejig for gas firms may hurt RIL - (16/4/2008)
• IGL expansion plans put on hold - (15/4/2008)
• Oil scarcity hits Mizoram as tanker drivers agitates - (15/4/2008)
• China Gas, Gail to tie-up for Coal Bed Methane blocks - (15/4/2008)
• GAIL, Arrow may join coal gas project: China Gas - (15/4/2008)
• Aban Offshore gets contract worth about $34 mn - (15/4/2008)
• IOC to import 36 million tonnes crude in '08/09 - (15/4/2008)
• India to take up IPI project with Pak - (15/4/2008)
• RIL sees Saudi dreams in Jizan oil refinery - (15/4/2008)
• OVL qualifies for oil and gas contracts in Iraq - (15/4/2008)
• OMEL to partner Total in Nigeria - (15/4/2008)
• Musharraf wants involvement of China in IPI project - (14/4/2008)
• OVL qualifies for oil, gas contracts in Iraq - (14/4/2008)
• India to meet Pak on Apr 25 on IPI gas pipeline - (14/4/2008)
• Petronet to buy 15 more spot LNG lots this fiscal - (14/4/2008)
• RIL in talks with BG, Chevron, Exxon for stake sale - (14/4/2008)
• IOC losing Rs 320 cr per day on fuel sales - (14/4/2008)
• IOC fiscal '08-09 capex seen at Rs 75 bn - (14/4/2008)
• IOC wants fair share of KG gas - (14/4/2008)
• IOC, Petronet in joint talks with Exxon for LNG supply - (14/4/2008)
• Nelp-VII may fade into the distance - (14/4/2008)
• Government asks oil producers to rethink policy - (13/4/2008)
• LPG cylinders containing half of the specified gas: Haroon Yusuf - (13/4/2008)
• Borrowings going up every month, says IOC chief - (12/4/2008)
• Indian Oil takes LNG to doorsteps of companies - (12/4/2008)
• Govt for lifting RIL gas sale stay - (12/4/2008)
• Govt a party to RIL-RNRL case - (11/4/2008)
• OVL may get to dig 2 more blocks in Venezuela - (11/4/2008)
• RIL to sell up to 10% in KG basin - (11/4/2008)
• NTPC in talks with oil firms for blocks bid - (10/4/2008)
• RIL in talks with foreign firms to sell 10% stake in KG Basin D6 block - (10/4/2008)
• Reliance in talks with foreign firms on D6 block - (10/4/2008)
• L&T eyes new Cairn oil pipeline contract - (9/4/2008)
• India keen to partner IPI gas project: Iran - (9/4/2008)
• ONGC Videsh, Petroleos to develop oil field in Venezuela - (9/4/2008)
• BG to sell LNG in India later this year - (9/4/2008)
• Venezuela to supply 150,000 bpd of oil to Reliance - (9/4/2008)
• India, Venezuela sign gas and oil agreement - (9/4/2008)
• Energy tribunal APTEL raps petroleum sector regulator on lack of guidelines - (8/4/2008)
• IOC seeks June sweet crude - (8/4/2008)
• RIL team strikes oil in Yemen - (8/4/2008)
• OVL to sign pact for 40% stake in Venezuelan field
• RIL to make rigs, invest $2.5 bn in gasification project
• Green Power International eyes Rs 400-cr turnover by 2011
• Deora to meet Pak, Iran officials on gas pipeline issue
• OVL to invest $450 mn in Venezuela
• India, Turkmenistan ink MoU on cooperation in oil sector
• US to provide technical assistance to HPCL
• Jindal Drilling buys 49 pc in Singapore firm
• Deora asks PM to cut customs duty on crude oil
• HPCL awards May-Oct term naphtha; plus $15/tonne
• Natural gas regulator lays down retail rules
• Reliance strikes new gas find in Krishna basin
• GAIL signs contract for PMT gas
• 'Pak committed to IPI project'
• Gujarat Gas signs supply pact with GAIL India
• Reliance says finds more gas off east coast
• GAIL India to buy 17.3 mmscmd PMT gas
• OVL makes $1 bn offer for three blocks in Angola
• Oil regulator lays down criteria for city gas projects
• GAIL signs contracts to takeover PMT gas marketing
• RPL eyes $500 million for Jamnagar SEZ refinery

March 2008 Energy Sector Updates:

Power Sector:

- PFC floats consultancy arm

- Inverters, generators demand in NCR to grow by 30 pc

- NTPC gets investment cap waiver

- Power in Punjab cheap by 3.5 pc from April 1

- NHPC commissions all 3 units of Teesta-V

- HPDC to launch awakening campaign

- Three hydel projects of Narmada Valley to be assigned to NHEDC

- Rel Energy arm wins Rs 1,200-cr Rel Power deal

- Power Grid signs for $1.2 bn loan from ADB, World Bank

- PGCIL aims Rs 5,400 crore turnover in FY09

- ONGC to fuel NEEPCO's power plant in Tripura

- Nigeria invites Indian firms to invest in power sector

- GEI Industrial bags Rs 30 cr contract from Essar

- Reliance Power to seek shareholders nod for bonus issue

- Jyoti Structures bags Rs 253 cr contracts from Uganda Electricity Transmission

- XL Telecom bags Rs l53.9 cr order to supply solar panels

- Morgan Stanley buys 3.85% in Sujana Towers

- Reliance Power speeds up Sasan plan

- With level playing field you can't compete with NTPC: CMD

- Delhi will have surplus power by 2010

- New power project coming up in Kashmir

- Tatas, RPower submit RFQ for Rajpura Thermal Power Project

- Larsen & Toubro to add thermal power equipment capacity

- World Bank approves $600 million loan to Power Grid Corporation of India

Oil & Gas Sector latest Updates:

- GAIL signs contracts to takeover PMT gas marketing

- RPL eyes $500 million for Jamnagar SEZ refinery

- IOC to focus on cleaner fuels in FY'09

- Rajasthan asset costs at $1.8 bn: Cairn India

- BPCL files DRHP for JV setting up refinery in MP

- Oil prices below $105 in Asian trade

- Reliance, BG refuse to sign Panna/Mukta gas deal

- Govt in a fix over Reliance's decision to close petrol pumps

- India likely to sign deal for Iran projects in April: ONGC

- Bhagawati Gases enters into MOU with Russian co

- Gail to transmit 81.5 mmscmd of gas a day in 2008-09

- Australian construction co bags $720 mn contract from ONGC

- Reliance Industries to shut its retail petrol pumps

- BP may enter into pact with Cals for refinery at Kolkata

- HC notice to Centre, IOC on shortage of cooking gas

- IOC bags Petrofed's 'Oil & Gas Corporate of the Year' award

- GAIL awarded Oil & Gas Pipeline Transportation Co of the year

- MRPL to shut 120,000 bpd crude unit in March

Banking / Finance Sector Latest Updates

Banking and finance sector are very crucial sectors of indian economy and alight downtrend in these sectors can see a slowdown in Indian economy as well. also update yourself with latest updates from Auto Sector Updates Jobs Sector Updates Energy Sector Updates Media sector Updates Entertainment Sector Updates Telecom Sector Updates Banking Sector Updates Finance Sector Updates Healthcare Sector Updates Biotech Sector Updates Pharmaceuticals Sector Updates - and get the comprehensive news about growth of indian economy.

Latest Updates from Banking and Finance Sector:

April 2008 Banking Sector Updates:

• SBI's clients may take a Rs 700-cr derivatives hit - (24/4/2008)
• BoJ may drop call for higher rates as growth slows - (24/4/2008)
• JWT Bangalore bags ING Vysya Bank's creative account - (23/4/2008)
• State Bank to provision $10 million for subprime - (23/4/2008)
• HDFC Bank plans mobile banks for microfinance - (23/4/2008)
• Banks see lower credit growth in FY09 - (23/4/2008)
• SBBJ to focus on retail segment - (22/4/2008)
• HDFC bank to start mobile banking ATM - (22/4/2008)
• ICICI Bank to scale down promotions, increments - (22/4/2008)
• PNB Gilts records 4-fold jump in PBT - (22/4/2008)
• South Indian, City Union save Dhanalakshmi's rights issue - (22/4/2008)
• RBI rejects IFC plan to invest in Karnataka Bank - (22/4/2008)
• Axis Bank net jumps 71% in Q4 - (22/4/2008)
• Punjab National Bank to start Bhutan JV by year-end - (20/4/2008)
• Deutsche to invest Rs 685-cr for its NBFC business - (20/4/2008)
• IOB to take over assets & liabilities of Shree Suvarna - (19/4/2008)
• SBI wants to move to global IFRS a/c standards, invites bids - (19/4/2008)
• CRR hike to impact profitability: Kamath - (19/4/2008)
• Citigroup posts $5.1 bn loss, to cut 9,000 jobs - (19/4/2008)
• No hike in interest rates at least till Apr 29: Bankers - (18/4/2008)
• CRR hike to affect profitability of banks: Kamath - (18/4/2008)
• Banks cancel undrawn loan limits to firms - (18/4/2008)
• PSU banks retain lead play in bank credit - (18/4/2008)
• RBI wants deposit taking limited to banks - (18/4/2008)
• ICICI Bank to offer Visa eMarketplace - (17/4/2008)
• PSU banks may post poor result in Q4; pvt sector may do better - (17/4/2008)
• PNB sees loan growth of 20 pc - (17/4/2008)
• Corporation Bank launches reverse mortgage loan scheme - (17/4/2008)
• Interest rate decision only after RBI policy: K V Kamath - (17/4/2008)
• ICICI Bank not in hurry to list broking arm - (17/4/2008)
• Bank of Baroda launches new health scheme in Oman - (17/4/2008)
• SBI, Macquarie line up $1-bn fund for core play - (17/4/2008)
• ICICI a/cs must’ve Rs 10k min balance - (17/4/2008)
• StanChart pumps in $250-mn fresh funds - (17/4/2008)
• Corp Bank launches NEFT through ATMs - (16/4/2008)
• Stanchart keen to spread wings in rural India - (16/4/2008)
• Bank of India sees 25 pc credit growth in Apr-Jun - (16/4/2008)
• Volatility to sustain for few months: Peter Sands - (16/4/2008)
• Axis Bank opens branch in Madurai - (16/4/2008)
• State Bank, Macquarie plan India infrastructure fund - (16/4/2008)
• ICICI Bank invests more in ICICI Prudential - (16/4/2008)
• India Inc should focus on corporate governance standards: Kotak - (16/4/2008)
• HDFC Bank inks pact with two carbon-credit firms - (15/4/2008)
• Kotak Mahindra Bank rolls out credit cards - (15/4/2008)
• SBI to launch mobile banking service soon - (15/4/2008)
• Grievances against private banks rise 33% - (15/4/2008)
• Smart cards enter rural, urban poor big time - (15/4/2008)
• Banks open wallets as IIM aspirants fret over fee hikes - (15/4/2008)
• Bankers say lending rates may go up post credit policy - (14/4/2008)
• PNB expects 20 pc rise in net profit during 2008-09 - (14/4/2008)
• Yes Bank mulling QIP to raise $300 mn by December - (14/4/2008)
• JKSCB aims disbursing Rs 100-cr loans this fiscal - (13/4/2008)
• HDFC Bank to enter Bahrain by the middle of the year - (13/4/2008)
• Bank of Rajasthan's business crosses Rs 21,000 crore - (11/4/2008)
• RBI bought $3.88 billion in February - (11/4/2008)
• Yes Bank eyes two private sector banks for acquisition - (11/4/2008)
• Germany's Dresdner Bank to open branch in India in 2009 - (10/4/2008)
• Vijaya Bank signs pact with Fitch Ratings - (10/4/2008)
• Vijaya Bank signs MoU with FITCH Ratings - (10/4/2008)
• No immediate plans for merger: DCB - (10/4/2008)
• Development Credit Bank plans asset management foray - (10/4/2008)
• ICICI Bank expects SME business to grow by 50% in FY'09 - (9/4/2008)
• TCI Cyprus Holdings buys 3.45 per cent in IOB - (9/4/2008)
• Banks can't take stocks as security - (9/4/2008)
• Born-again IndusInd to focus on core growth - (8/4/2008)
• Open up banking sector
• PNB to enter credit card business on its own by Sept
• BoM scouting for partner in general insurance JV
• UBI offers reverse mortgage at 10%
• ICICI awaits RBI move on rates: Kamath
• ICICI Bank to focus more on wealth management, mobile banking
• Union Bank launches Reverse Mortgage scheme
• NABARD credit to West Bengal touches Rs 1,309 cr
• RBI delay forces PNB to go solo in credit cards
• RBI seeks fresh bank loan exposure data
• NABARD extended Rs 3,871 crore in credit support to AP
• Govt rules out diluting stake in public sector banks
• PNB revises interest rates on non-resident deposits
• Citi woos expatriates in India to expand customer base
• Bank of Canada injects C$835 million into market
• ICRA inks MoU with State Bank of Indore for rating services
• Citibank launches services for expatriate Indians
• BoB revises foreign currency deposit rates
• Bank deposits in Gujarat rise 5% in third quarter
• UBS' India plan seen intact despite global writedown
• J&K Co-operative Bank posts business of Rs 2,000 cr in FY08
• Banks' hopes of treasury gains vanish as bond prices decline
• Citigroup rejigs global operations on geographical lines
• Barclays to set up private bank in India
• Firms revisit derivative bets to clean books

April 2008 Finance Sector Updates:

• UTI Ventures exits Excelsoft, earns 50 times its investment - (24/4/2008)
• Morgan Stanley has a May 1 date with private equity play - (24/4/2008)
• Oriental Insurance to provide cover to Mundra project - (23/4/2008)
• IDFC raising $700 million India infrastructure fund - (23/4/2008)
• IFCI stake sale not imminent-source - (23/4/2008)
• Short-term debt yields rise as RBI dislike for 'surplus grows - (23/4/2008)
• PEs invest $4 bn in first quarter of 2008 - (23/4/2008)
• Central undertakings told to stopinviting bids for bulk deposits - (22/4/2008)
• Bajaj FinServ eyes asset management - (22/4/2008)
• Premji launches $1 bn PE fund - (19/4/2008)
• RBI to encourage microfinance to curb money-lenders - (16/4/2008)
• DHFL opens representative office in London - (16/4/2008)
• Vision Global plans $200-million distressed debt fund - (16/4/2008)
• SBI weighs merger of GTF with SBI Factors - (16/4/2008)
• Private equity activity strongest in October-December quarter - (16/4/2008)
• Singapore fund kicks off India ops with i-Flapp Tech - (16/4/2008)
• ICRA assigns high rating to L&T Infrastructure - (15/4/2008)
• Bidders see less value in GE units - (15/4/2008)
• Unitech Realty to float 2 funds of $650 million - (14/4/2008)
• Cramped for room, small brokerages look for exit - (14/4/2008)
• Modern India in talks with PEs to dilute promoters' stake - (14/4/2008)
• PE deals hit the road again, but M&As dry up - (14/4/2008)
• HC asks Axis not to enforce Rajshree Sugars contract - (12/4/2008)
• IDBI not to cut prime lending rate following inflation spiral - (11/4/2008)
• Canara Robeco to merge equity funds - (12/4/2008)
• Chidambaram to inaugurate British branch of IIFC - (10/4/2008)
• Religare to buy UK's oldest broking firm Hichens Harrison - (9/4/2008)
• Broadening finance access - (9/4/2008)
• $1 billion infrastructure fund on anvil - (8/4/2008)
• BankAm trader moves to JPMorgan in India - (7/4/2008)
• Citi Venture, AIG scrap Akruti investment plan
• Reliance Money plans 20,000 outlets by fiscal end
• IDFC PE invests Rs 40 cr in Emergent Ventures
• Ask plans PE fund with initial corpus of $100 mn
• UK fund manager ties up with Tata for India equity fund
• Reliance Money launches loyalty card for customers
• SREI Infrastructure enters JV with BNP Paribas
• RBI appeals not to deface currency notes
• Darby Asia Mezzanine Fund invests in Coffee Day
• Reliance Money brings Canadian partner in broking biz

MArch 2008 Banking / Finance Sector Updates:
- SREI Infrastructure enters JV with BNP Paribas

- RBI appeals not to deface currency notes

- Subprime fallout: RBI wants lenders to play counsellor

- RBI delay forces PNB to go solo in credit cards

- RBI seeks fresh bank loan exposure data

- NABARD extended Rs 3,871 crore in credit support to AP

- Govt rules out diluting stake in public sector banks

- PNB revises interest rates on non-resident deposits

- Citi woos expatriates in India to expand customer base

- Bank of Canada injects C$835 million into market

- Banks' hopes of treasury gains vanish as bond prices decline

- Citigroup rejigs global operations on geographical lines

- Barclays to set up private bank in India

- Firms revisit derivative bets to clean books

- ICRA signs MoU with State Bank of Indore to rate loans

- Vijaya Bank exceeds business target for 2007-08

- Oriental Bank to review interest rates in next 10 days

- Union Bank ties-up with Alankit to provide services

- Canara Bank inaugurates Retail Asset hub

- Bank of Maharashtra to merge 2 regional rural banks

- JM Financial unit to buy out ASK Sec's stake in JV

- Reliance Money gets approval to operate in Oman

- IDBI puts key rate cut decision on hold

- Indian Overseas Bank to take over Pune bank

- Mumbai accounts for 80 pc of bank deposits in Maharashtra

- Syndicate Bank releases Rs 1010 cr annual credit plan

- Canara Bank launches basket of products

- Federal Bank reaching out to NRIs

- RBI lets 2 Singapore banks open account in India

- State Bank of India gets Singapore full bank license

- Demand draft's bounce on stop payment order

- Axis Bank opens two new branches

- Banks may gain from bond holdings as yields plunge

- HSBC arm raises stake in Yes Bank by 4%

- Bank of India to roll out mobile phone banking

- Singapore's DBS bank to expand in India

- Union Bank sees lower FY08 credit growth

- State Bank of India buys 91% in factoring firm

- Federal Bank to open its 600th branch on 26/3/2008

- ICICI, Jaypee Infra ink Rs 1,150-cr deal

- Banks twist RBI's rules to sell leveraged products to corporate clients

- Bank credit slowdown reflects fading growth

- Bank of India plans to open full-fledged branch in Beijing

- SBI looking at alternate channels for rural penetration

- Religare to acquire UK broking co for $100 million

- Cholamandalam DBS to raise Rs 4,500 cr through private placement

- Fidelity plans Indian securities fund

Indian Economy Updates Rs v/s $ daily trends - March 2008

Daily rupee trends against US $ month wise (at stock market closing time):

31/3/2008:(Rs v/s US $) 40.11 - (Up^0.04) - with respect to 28/3/2008 rate

28/3/2008:(Rs v/s US $) 40.15 - (Down -0.08)

27/3/2008:(Rs v/s US $) 40.07 - (Up^0.05)

26/3/2008:(Rs v/s US $) 40.12 - (Up^0.22)

25/3/2008:( Rs v/s US $) 40.34 - (Down -0.05)

24/3/2008:( Rs v/s US $) 40.29 - (Up^0.16)

19/3/2008:( Rs v/s US $) 40.62 - (Up^0.15)

18/3/2008:( Rs v/s US $) 40.77 - (Down -0.32)

17/3/2008:( Rs v/s US $) 40.45 - (Up^0.01)

Indian Budget Projections shattered by US economic recession

Indian budget projections are likely to be shattered by the slowdown in US economy or probably it's recession and government has to make new projections keeping the condition of US economic changes in mind becoz indian economy is governed more or less by US economy, CPI(M) on Saturday demanded immediate halt to futures trading in all essential commodities to contain inflation and corrective measures for the stability of the rupee.

"In order to check speculation and inflation, futures trading must be stopped in all essential commodities though the government has removed pulses, wheat and rice from the purview of forward market due to our pressure," CPI-M Politburo member Sitaram Yechury described.

Stating that the US has officially admitted that its economy was going through rough times, he said, recession, falling value of Dollar and growing unemployment in America would have adverse impact on India and the government must initiate corrective measures to tackle the situation.

Observing that Rupee has appreciated by 13 per cent during the past one year, he said decline in exports and manufacturing sector coupled with badly hit IT and textile sectors would cause considerable loss of jobs.

He said that such a situation has put the projections in the union budget into uncertainties.

It may also be noticed that CPI(M) are also against the nuclear deal and want the indian government to abundan it, they are organising a meeting to discuss the Indo-American nuclear deal on 17th of this month in delhi with government officials.

Annual India Economy Update (January 2007-January 2008)

Annual India Economy Update: well all the readers of this post would be surprised about the time duration of this annual India Economy Update as it is not based on Financial year which starts in India in March every year but rather it is based on the US financial year which begins in January and ends in december every year on the new year and is according to the Earth's revolutions around sun.

Economy of India in past 1 year has grown at around 8.7% this year which is very healthy rate but is behind the economy growth rate of China which stands at around 11% for same period.

India Economy's growth rate in 2007 remained lower when compared to the growth rate of the previous year but the stock markets remained in constant bull run through out the year with both sensex and Nifty touching new highs. Bombay Stock Exchange managed to rank itself in top 10 stock markets of world in market capitalisation.

Foreign Investors showed a lot of trust in Indian rupee and hence the foreign direct investments reached a new record this year and the trend would continue for next couple of years too.

Indian rupee grew at around 5% in 2007 and hence a lot of exporters were affected as they did not do proper hedging of dollar for minimising the impact of the deteriorating dollar.

Slowdown in US Economy V/S Boom in India Economy

From past couple of years their has been a gradual slowdown in the economy of US. There are certain reasons for the slowdown of US Economy. With the growth of economies of Asian countries like China and India .Economy of US has a serious threat as these two asian countries have grown at a decent pace in past four to five years while at the same time the economy of US has shown a slowdown. The subprime mortagage crises occuring in US has made several mortagage companies bankrupt and hence looking into the matter the president of US Mr. George W Bush has recently decreased the rate of interest for mortagage facilities available to the people of US. It's now clearly evident that the government of US has started feeling the heat of the slowdown in it's economy. Recently a mortagage services client of indian company Infosys declared itself short of funde i.e bankrupt and had no money to pay to Infosys for the period of time . There were around 250 customer executives working for the mortagage services company in Infosys found there client bankrupt and hence they all had to be shifted to other process hence the subprime crises of US mortagage companies has started affecting the job oppurunities not only in US but also in countries like india where the processes of these banks have been outsourced. hence Slowdown in the economy of US have forced many software companies of US to outsource more and more work outside US in countries like India.

Software jobs in US are also on a decline due to the stagnation in economy. Many US based software companies have all ready opened their development centers in India as carrying business for them in US itself has become less profitable while in India their profit margins are decent and they further can outsource their projects to Indian companies. Boom in Indian Economy has helped India in reducing it's import bills drastically. with the present rate of US dollar equivalent to ~ 39.50 INR and still decreasing further. Time is not far when the economy of Indian would become major Economy of World.

Economists have predicted that if Indian Economy Grows at the Same pace as of today then it would surely surpass the net value of France, Japan by the year 2020, and would become a superpower by year 2025 and India Economy would be third largest economy of world . world would be goverened by three economies of US, China and India, by the year 2035 india economy would surpass the economies of Germany, UK and indian rupee would be used for transactions all over the world.

US market is now dependent on the imports from asian countries like china and India and the volumes of Import from India and China are on a steady rise from the past couple of years. However India economy is still net an importer economy i.e. the imports are still more then the exports but the scenario is soon going to change and India would ultimately become an export economy in coming 10 years. Boom in India Economy is clear from the amount of Foreign Direct Investments being made in India by none other then companies of US since they want higher profits for their further expansions which are not possible while carrying their businesses in US as the profit percentages in US are on a decrease and future looks no better. So these companies have shown their tremandous interest in India and India Economy which is hence on a boom.

India does not have resources of it's own and hence for development it is using the Foreign Direct Investments for it's growth conservatively which is clear as the indian rupee is getting firm day by day . Foreign players have shown tremendous interest in Indian Stock Markets and both of the indian stock exchanges The Bombay Stock Exchange and National Stock Exchange have already crossed the magical mark of 20,000 and 6,000 respectively and are still showing promising signs.

Government of India has also taken promising steps for bringing in more foreign currency to India as investment . The Incredible India campaign is an example and government has many plans to attract foreign tourists on Indian Festivals by providing certain package to the tourists.