Govt steps up efforts to attract Foreign Direct Investors (FDI)

(posted under - FDI updates - Economy updates) - Transport Minister Kamal Nath had said all impediments would be removed to get foreign investment in the roads and highways sector.

He added that the roads sector is expected to attract USD 10 billion of FDI in the next two years.

The government is also making efforts to bring in foreign investment in the textiles sector, the largest employer after agriculture in the country.

Textiles Minister Dayanidhi Maran had led a business delegation to Japan last month to woo foreign investors in the labour intensive sector.

FDI inflow in January-May period of 2009 was USD 10.58 billion compared to USD 19.56 billion in the same period previous year, a dip of 46 per cent.

The government also proposes to raise the FDI cap in private insurance firms from 26 to 49 per cent and a bill to give effect to the proposal is pending in the Rajya Sabha.

CRISIL Principal economist D K Joshi said by taking the steps government is building pipeline to attract FDI.

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.

Indian Forex reserves at USD 252 billion

(20/4/2009 Indian Economy updates) - India's foreign exchange reserves stood at USD 252 billion as of end-March, declining by USD 57.7 billion over the previous year, the Reserve Bank said on Monday.

The RBI said in its Macroeconomic and Monetary Developments in 2008-09 said, the overall approach to the management of India's foreign exchange reserves in recent years reflects the changing composition of the balance of payments and the 'liquidity risks' associated with different types of flows and other requirements.

Also Read :
-US institutions reluctant to end crises
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started

"Taking these factors into account, India's foreign exchange reserves continued to be at a level consistent with the rate of growth, the size of the external sector in the economy and the size of risk-adjusted capital flows," RBI said.

posted under - economy of india, indian economy updates, indian forex reserves, RBI updates, indian economy blog, economy of india updates, forex updates, india forex reserves

India ranks second in industrial production among developing countries

India ranks among the top five developing countries in production of six major industrial items, including textiles, motor vehicles, chemicals and basic metals, according to a UN agency UNIDO.

In four out of the six industrial products - textiles, chemicals and chemical products, basic metals and electrical machinery and apparatus - India figures at number two only behind China.

Also Read :
-US institutions reluctant to end crises
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started

India's annual growth rate of manufacturing value added (MVA) has risen from 6.9 per cent in the period 2000-2005 to 12.3 per cent between 2005 and 2007, according to the year book of the United Nations Industrial Development Organisation (UNIDO).

It found that the share of MVA in India's gross domestic product (GDP) has risen to 14.8 per cent in 2006 from 13.8 per cent in 2001.

UNIDO found that the developing countries now produced almost 30 per cent of the world MVA compared to 16 per cent in 1990.

Also Read :
-US institutions reluctant to end crises
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started

"The increasing share of developing world vis-a-vis industrialised countries is also explained by the shift of location of manufacturing, especially assembling of final products from industrialised countries to developing countries," the UNIDO said.

posted under - industrial production, indian economy, economy of india, indian industrial output, output updates, indian economy updates, economy of india

Manmohan Singh lures NRI's giving sops for investing in India

At the start of 7th Pravasi Bhartiya Divas (PBD) in Chennai on Thursday, Prime Minister Manmohan Singh announced a slew of policy measures for the benefit of overseas Indians. These included allowing overseas Indian citizenship (OCI) card holders to practise in India, launching a global Indian knowledge network as a virtual think tank, issuing smart card to all overseas Indian workers.

The prime minister said the overseas Indian citizenship scheme announced in 2006, got an overwhelming response. He also announced that OCI card holders — who are qualified professionals such as doctors, dentists, pharmacies, engineers, architects and chartered accountants — can practise unhindered in India. Further details to operationalise the benefits are being worked out.

Also Read :
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started
Dr Singh also launched a new initiative called “The global Indian knowledge network”. It will connect people of Indian origin from a variety of disciplines to users at the national, state and local levels in India. “My hope is that the network will facilitate transfer of knowledge and serve as a virtual think tank to generate new ideas on issues such as development, education and healthcare,” he said.

He also referred to the contributions of about five million Indian workers in the Gulf countries. “I have seen their contributions when I recently visited Oman and Qatar. I was amazed to see their grit, their determination and how they are contributing magnificently to processes of wealth creation in these countries,” he said.

He said: “We are there concerned at the rise of tensions in the region as a result of the attack in Gaza that has led to the needless loss of lives of many innocent men, women and children. India has strongly condemned these incidents and it is our hope that the international community would get together and help to restore peace in the region as soon as possible. I wish to reiterate our unstinted and unwavering support for the just Palestinian cause.”

Also Read :
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started

“We have put in place several measures for better protection and welfare of our workers overseas, including entering into inter-government agreements,” he added.

He also said India had launched a comprehensive e-governance project on migration. Under this project, every worker will be issued a ‘a smart card’ that will contain all details of the worker like his work contract, his employer, his insurance and the like.

The data will also be available to the government as well as its missions overseas. The objective is to transform emigration process into a simple, transparent, orderly and humane one.

posted under - Indian economic updates, 7th Pravasi Bhartiya Divas ,Pravasi Bhartiya Divas , PM updates, economy of india updates, indian rupee updates
source - economictimes.com

Indian Economy Updates for december 2008

Indian economy consistes of various sectors including finance sector, Agricultural sector, Policy sector(includes government policy updates), Foreign trade sector, Infrastructure updates. So i have tried to put all of the sectors together under particular date of the month of December in this post.

Following are the main economic updates for indian economy:
(click on the link to read full story)

What others are reading now:
-Plan for World Economy Revival
-Indian Economic Summit Updates
-Rs v/s US$ latest updates
-World's Strongest economies list
-Trouble in Indian Forex
-Indian Agricultural Updates
-Effect of Recession on Indian economy

December 2008 India Economic Updates :

Govt plans Rs 350-cr export package
PC, PM’s panel favour more interest rate cuts
Vaghela seeks sops for textile industry
Sharad Yadav meets PM, seeks Rs 14,800 crore package for Bihar
Bill to raise capital of LIC to Rs 100 crore introduced in LS
Rise in donations abroad raises fresh questions
Swinging Re adds to woes of slowdown-hit exporters
GCC suspends EU free-trade talks
Textiles exports may fall short of target
Tatas, GMR, L&T in race for 60 NHDP projects
Reliance Infra bags Haryana road projects
Farmers fancy blue berries, to grow fruit here
Foreign trade policy to continue beyond March 2009
WTO chief postpones meeting on global trade deal
Govt approves 21 road projects: Finance Ministry

December 8, 2008 India Economic updates :

Infra cos say more funds needed to boost growth
RBI may further cut repo rate by 150 bps: Goldman
Power gear bidding must be wired to global tenders
Govt announces package including tax cuts to boost economy
RBI rate cuts unlikely to stem slowdown - Citi
Govt's stimulus may not be effective: JPMorgan
Fiscal package positive for market sentiment
WTO releases revised blueprints for Doha free trade talks
Oct tea exports fall 5 pc as demand dips
Rs 2,000-cr boost fails to cheer exporters
Infra cos say more funds needed to boost growth
Proposals to set up industrial units worth Rs 90,480 crore
NHDP's road stretches likely to be built on annuity model
Agricultural scientist stresses need for food security
Govt weighs sops for cotton sector
Spending on agriculture up 80 percent: Government


For knowing previous month's Indian economic updates (click here)