Indian Business News – Selected Extracts (31/05/08)

1. Inflation in India soars to 8.1%. Finance Minister delivers grim forecast. India records lowest food inflation. It is the lowest increase compared to 15 other developing countries.
2. India recorded 9% GDP growth rate for the third year in a row. Agriculture sector made up for the moderation in industrial sector growth in 2007-08. The per capita income at current prices works out to be Rs.33,299, an increase of 12.3%
3. The central government slashes central sales tax, a levy on inter-state sale of goods, to 2% from 3% from June 1.
4. In a significant development, state-owned telecom giant Bharat Sanchar Nigam (BSNL) may go public. The company is valued at US$100 billion. The dilution of just 10%equity can fetch over Rs.40,000 Cr.
5. The BSE ‘s 30-share sensex ended at 16,415, a rise of 99 points. In bullion market, gold closed at Rs.12,230/10gm and silver at Rs.23,620/kg.
6. Anil Ambani, the head of Reliance Communications may become the Chairman of the merged entity – RCom- MTN (South African telecom). He may have 35% stake in the merged entity.

Indian Business News – Selected Extracts (30/05/08)

1. Indian government is moving towards a moderate hike in fuel prices along with duty cuts to bail out cash strapped oil firms. Petrol could cost Rs.3-5 more per liter and diesel up to Rs.2 per liter. Mumbai city petrol pumps running low on fuel stocks.
2. Government liberalizes External Commercial Borrowing (ECB) norms to overcome tightening of liquidity condition in the domestic market. It has also increased FIIs investment limit in government securities and corporate bonds.
3. The BSE ‘s 30-share sensex ended at 16,316, a fall of 209 points. Even though the trading was slump, IT sector rallied on the back of rupee’s depreciation. In bullion market, gold closed at Rs.12,385/10gm and silver at Rs.24,140/kg.
4. Jubilant Organosys, an integrated pharmaceutical industry player has acquired Canada-based Draxis Speciality Pharmaceuticals for US$253 million. Draxis offers products in three categories: sterile products, non-sterile products and radio-pharmaceuticals.
5. Manufacturing and retail sectors have emerged as the largest employers in the country. Rural India records higher employment growth than urban areas.
6. The Reliance Industries chief Mukesh Ambani is the richest man in India. His personal worth is about 40 to 45 billion dollars. He is building himself the world’s most expensive home, worth Rs.2000 Cr. It will have approximately 40 floors and a total elevation of 550 feet.
It is said jokingly that in India, from the salary one pays 30% to the government as income tax and the rest 70% goes to Ambanis. It is likely to become true soon.

Indian Business News – Selected Extracts (29/05/08)

1. Tata Motors to raise Rs.9,000 Cr (US$2.10 billion) through a combination of rights issue and an overseas offering to fund its Jaguar-Land Rover buyout. Tata Motors is listed on the New York Stock Exchange through the depository route.
2. Tatas face tough EU emission norms on Jaguar and Land Rover. The new CO2 emission norms will be effective from 2012.
3. Indian oil companies to limit sale of motor fuels due to limit its losses.
4. Soaring oil prices force airlines to cut growth plans. Air traffic in April drops over last year.
5. Oil prices dropped below US$129 a barrel, falling sharply on a growing sense that soaring gas and oil prices have cut demand for fuel. Low demand concerns are weighing on the market.
6. The BSE ‘s 30-share sensex ended at 16,525, a rise of 250 points. In bullion market, gold closed at Rs.12,405/10gm and silver at Rs.24,170/kg.
7. Builders can not misuse society land. The High Court has said that builders have to make a “true and full disclosures” about housing projects while signing sale deeds.
8. In a bid to minimize the impact on inflation, the Prime Minister’s Economic Advisory Council has asked the Indian government to pay its employees in phased manner when implementing the Recommendations of the Sixth Pay Commission. The suggestion is to deposit part of the arrears of Rs.18,000Cr, in employee’s provident fund account.

Indian Business News – Selected Extracts (28/05/08)

1. The Vodafone CEO, Arun Sarin announced hid departure from the world’s largest mobile phone company. The exit stuns the market. He claims “accomplished what I set to achieve, particularly in developing and implementing a new strategy”. Aurn has done tremendous job as Chief Executive of Vodafone. The company’s current annual revenue is reported to be record US$35.5 billion.
2. Indian business titan Ratan Tata is named among the 30 world’s most influential business people in construction industry.
3. Indian Peter Scot wins 20-year legal battle to retain its name. The case was filed by Scotch Whisky Distillers Association for cancellation of the registered trade mark Peter Scot.
4. The trading in stock markets at Mumbai ended in red. The BSE ‘s 30-share sensex ended at 16,275, a loss of 73 points. The Indian rupee closed at Rs.42.96 against the US dollar. In bullion market, gold closed at Rs.12,835/10gm and silver at Rs.24,935/kg.
5. The Mumbai airport’s upgradation will open up about 132 acres of real estate in Kurla-Kalina area for retail, commercial and hospitality purposes.

Indian Business News – Selected Extracts (27/05/08)

1. It is reported that for the first time, the South African telco MTN has entered in to an exclusively agreement with MTN for merger negotiations with Reliance Communications.
2. Reliance Global-com, a subsidy of Reliance Communications is acquiring Vanco Group, a UK-based network service provider for Rs. 327Cr (US$76.9 million).
3. The stock markets at Mumbai succumbed to weak global trends. The BSE ‘s 30-share sensex ended at 16,348, a six week low, losing 301 points. Stock markets closed flat today. It is reported that the BJP’s win in Karnataka state elections also contributed to the slide. In bullion market, gold closed at Rs.12,800/10gm and silver at Rs.24,955/kg.
4. New gas connections to be costlier. The depost money for the cylinder to be raised from Rs.850 to Rs.1250.
5. Natural (fruit) wine (contains about 11% to 14% of alcohol) can be sold in supermarkets in Bangalore.
6. Stock market regulator, SEBI proposes dedicated stock exchanges for Small and Medium Enterprises (SMEs) with relaxed norms.
7. India joins 13-nation miracle economy club.
8. Indian inflation rate to be revised to10% from 7.82%. In India, the food accounts for about 60% of the total consumer price basket, unlike only 15% in the G7 countries. Thus, food pries weigh more heavily on inflation expectations.

Indian Business News – Selected Extracts (24/05/08)

1. India’s solar energy potential is great. Experts say that even if 2% of the land area were to be used to harvest energy from sunshine, the power generated will meet all the energy needs of the country. The government has formed an autonomous body called Solar Energy Commission with private and public sector participation, to launch country-wide programs to promote electricity generation using solar energy. Reliance Energy also has plans to draw power from the sun.
2. Inflation has gone up over 8% for the week ended May 10, 2008. The level is likely to go up if fuel rates are revised upwards. Crude oil price hit an all time high of US$133. In bullion market, gold closed at Rs.12,800/10gm and silver at Rs.24,980/kg.
3. The stock markets at Mumbai succumbed to weak global trends. The BSE ‘s 30-share sensex ended at 16,649, showing a steep fall of 257 points. The banking stocks took a beating. The BSE warned investors not to deal with stocks, which were either not being traded at all previously or had very thin volumes.
4. ITC’s net profit increases by 16% to Rs.3,120 Cr on non-cigarette business. The ITC has emerges as a bigger enterprise than FMCG giant Hindustan Unilever (HUL).
5. As per the WHO report, there are some 40 million Indians with hepatitis B carriers and about 1 million of the 25 million infants born each year in India will become infested with the virus.
6. The Government said that guidelines for 3G services will be issued next month and foreign players will be allowed to offer this service in the country.

Indian Business News – Selected Extracts (22/05/08)

1. Petrol, diesel may be rationed. BPCL, which has the largest market share in Mumbai has adopted a Limited Supply system to the petrol pumps in the city. Mumbai consumes around 32,000 kilo-liters of petrol per month. International crude oil prices now stand at US$130 a barrel. The government has been refusing to raise the fuel prices. Indian Oil Corporation is seeking multilateral loans by mortgaging its assets to fight the rising crude cost.
2. Market Regulator, SEBI proposes a new payment process for public issues for the benefit of retail investor who need not block their money unless they are allotted shares.
3. According to a survey report, Indian consumers have increased (by 50%) their shopping frequency in modern trade retail stores.
4. Nuclear Power Corporation of India Limited (NPCIL) and L&T are likely to form a joint venture company to manufacture forging materials. Yet to finalize the details.
5. British Trade and Investment minister said that seventy Indian companies set up in Britain last year has created 5,000 more jobs. Trade between India and Britain grew by 9.1% last year.
6. The stock markets at Mumbai ended flat, with global worries over rising oil prices. The BSE sensex ended at 17,243, a mere rise of 13 points. In bullion market, gold price shot up to Rs.12,800/10gm and silver closed at Rs.24,710/kg. The Indian rupee fell to a fresh 13-months low of Rs.42.83 a dollar.

Indian Business News – Selected Extracts (21/05/08)

1. Gold demand dips 50% in the first quarter of 2008 as compared to the quarter in 2007. The quarterly world consumer’s demand for the yellow metal is 676 tonnes.
2. Suzlon Energy, the world’s fourth-largest wind turbine maker to trim Germany’s RE power stake. The company plans to double its capacity in China to 1200 megawatts by 2009/10.
3. The Bombay Stock Exchange sensex slips 205 points to close at 17,230. Consumer durables stocks were in demand. Oil price hits record of US$129.58 a barrel. In the bullion market, gold closed at Rs.12500/10gm and silver closed at Rs.23975/kg.
4. It is reported that the fresh WTO proposals for a global trade deal leave India and other developing countries with little policy space to protect their farmers and small industries.
5. RIL may sell gas from its eastern offshore KG-D6 block at price higher than $4.20 per million BTU to sectors other than power and fertilizer.
6. Global cancer drug market is growing fast and is expected to touch US$48 billion this year. Pharmaceutical spending is increasing in emerging economies like India.

Indian Business News – Selected Extracts (20/05/08)

1. State Bank of India freezes farm gear loans. It has put on-hold all future advances for farm equipment such as tractors, power tillers and combined harvesters. The non-performing assets under farm equipment segment are high at 17% of outstanding Rs.7,000 Cr.
2. Maruti Suzuki increased the car prices by 1,000 to 18,000 rupees across different car models to offset higher input costs.
3. Soaring oil prices and falling growth levels are forcing domestic airlines to increase the fuel surcharge.
4. Reliance retail is looking to rope in more international partners in its retail business. The Reliance Retail has 590 stores in 57 cities spanning 13 states. The company has stated aim of generation 1 million jobs.
5. Automobile maker Mercedes Benz India is targeting sales of 3,000 cars in India this year. Last year, the company had sold 2491 cars in the country.
6. As per the WHO report, India Inc could incur losses to the tune of US$54 billion by 2015 due to rise in lifestyle diseases like diabetes, stroke and cancer because of unhealthy workplaces.
7. Stock markets at Mumbai were closed yesterday. In bullion market, gold closed at a two-month high of Rs.12,515/10 gm and silver closed at Rs.24,030/kg.

Indian Business News – Selected Extracts (19/05/08)

1. Indian firm, Anil Ambani’s Reliance Big Entertainment (RBE) has signed deals to provide development funds to eight leading creative forces in Hollywood. The production houses include Jim Carrey’s JC 23 Entertainment, Chris Columbus’s 1492 Pictures, Brad Pitt’s Plan B Entertainment, etc.
2. Cobra Beer may be put on block. The Beer empire began in 1989 and has significant market share in UK and India. The company’s revenue is expected to be 44.4 million pounds and is expected to touch 100 million pounds by 2009.
3. HSBC Holdings plans to buy 73.2% of IL&FS Investsmart, a Indian brokerage firm for US$235million. India presents a huge scope for its large savings to be invested in equities, debt and commodities.
4. Bureau of Indian Standards (BIS) hallmark to set diamond purity grade for polished diamonds. The BIS has established Indian Standards (IS-15766) on grading of the polished diamonds.
5. Reliance Communications announced the roadmap for Direct-to-home (DTH) services across 4,000 towns in the next few weeks. Unlike the other service providers, Rel Comm is deploying stat-of-the-art Mpeg4 technology.
6. The Global Voluntary Carbon market (VERs) has tripled in size to US$331million in 2007. Asia’s share of carbon projects increased to 39% in 2007 from 22% in 2006.
7. Bharti Airtel is set to launch mobile services in Sri Lanka this year.
8. Reliance Industries Limited (RIL) plans to supply CNG for automobiles and households. RIL recently closed its petro retail outlets all over the country.
9. Software piracy cost Indian software industry US$2 billion of revenue in 2007.

Indian Business News – Selected Extracts (17/05/08)

1. Sensex in Bombay Stock Exchange (BSE) gained 81 points to close at 17,435. Buying was strong in banking stocks. Crude oil price rose above US$127 a barrel. In the bullion market, gold prices rallied on persistent buying and closed higher at Rs.12,225/10gm and silver closed at Rs.23,760/kg.
2. Inflation shoots to a 44-month high of 7.83%. Finance Minister warned more of administrative steps to contain the inflation.
3. Faced with a whopping revenue loss on fuel sales, state-run oil companies have decided not to issue new domestic LPG connections.
4. Hyundai plans to launch US$3,500 car in India by 2012.
5. Tata Teleservices is selling 49% stake in Wireless Tata Telecom Infra (13,500 towers) to Quippo Telecom Infra, an independent tower company.
6. Vodafone to acquire Danish firm ZYB, which operates a social networking site focused on mobile phone users for about 31.5 million Euros.

Indian Business News – Selected Extracts (16/05/08)

1. Sensex in Bombay Stock Exchange (BSE) gains 375 points to close at 17,354. The gains were in capital goods, realty and oil & gas stocks. Hindalco was the top gainer, moving up by 6.1%. Crude oil price remained at US$124 a barrel. In the bullion market, gold price closed higher at Rs.11,915/10gm and silver closed at Rs.23,470/kg.
2. Bharti may settle for 51% stake in MTN, while the MTN’s management wants Bharti to buy out the 100% stake.
3. Indian Core Infrastructure industries grew by a healthy 9.6% in March 2008. The overall industry growth remained at only 3% in the same month.
4. Reserve Bank of India relaxed the norms for housing loans to facilitate banks to provide loans for purchase of residential properties.
5. Insurance companies calculate “running age” instead of completed age for premium calculations. This move is not in the interest of senior citizens.
6. Ranbaxy gets US FDA’s approval for selling Cyclobenzaprine Hydrochloride tablets in the US markets. Similarly, Cadila received the approval to market anti-depressant drug – Escitalopram Oxalate tablets.

Indian Business News – Selected Extracts (15/05/08)

1. Sensex in Bombay Stock Exchange (BSE) rallied and many technology stocks were in demand raising the sensex to 16,978, 225 points higher. Rupee depreciated further in comparison to dollar and fell to Rs.42.67, 13 months low. Crude oil price rose to US$127 a barrel. In the bullion market, gold prices declined due to lack of demand at higher levels and closed at Rs.11,870/10gm and silver closed at Rs.23,555/kg.
2. India’s largest power generation company, NTPC is looking to borrow over Rs.1,05,000 Cr from domestic and overseas markets in the next 4-5 years to meet its ambitious target of adding 22,430 MW electricity generation capacity by 2012.
3. The Exim Bank of US is willing to extend up to US$10 billion of loans to Indian companies through financial institutions for infrastructure projects.
4. Aviation industry is slowing down due to the high fares resulting in decrease in the air traffic growth. April 2008 saw only 8.65% growth in passenger traffic over the same month last year. The expected growth is around 11%. In domestic operations, in April 2008, Jet (+JetLite) - 29.6%; Kingfisher and Deccan together accounts for 27.9% of the traffic and Indian Airlines only 15.1%. Domestic passenger traffic in April 2008 was 38.92 lakh, while the numbers for April 2007 was 35.82 lakh.
5. Lafarge, the French cement major, has acquired Larsen & Toubro’s concrete business. The deal was worth US$349 million.

Indian Business News – Selected Extracts (14/05/08)

1. Trading in the Bombay Stock Exchange (BSE) was volatile, and at the last hour of trade, the sensex gave up a 200-plus point gain and closed at 16,753, 108 points lower. Oil and gas stocks were big losers. In the bullion market, gold prices declined due to lack of demand at higher levels and closed at Rs.11,955/10gm and silver closed at Rs.23,790/kg.
2. Hewlett-Packard Co has struck a deal o buy Electronic Data Systems (EDS) Corporation for US$12.6 billion, seeking to boost its technology services business to better compete against market leader IBM. The merger may also turn heat on Indian IT industry.
3. Market regulator SEBI approves alternative payment method for IPOs (public and right issues) that will keep an applicant’s money in his bank account till allotment of shares.
4. Ford India begins production of diesel engines at its assembly plant in Chennai. The plant has an annual capacity of 60,000 units and US$26 million has been invested on it.
5. Hundreds of Crores of rupees are invested in the Indian Premier League cricket teams. It is business unusual. Sport is treated as corporate investment! Players were bought by industrial tycoons and film personalities in auctions and companies have paid massive amounts to contract players and cricket officials.

Indian Business News – Selected Extracts (13/05/08)

1. Trading in the Bombay Stock Exchange (BSE) was volatile, and the sensex rose by 125 points to close at 16,861. As the rupee weakened sharply, 42 rupees a dollar, there was buying support for IT stocks. Among sensex stocks, Ranbaxy was the top gainer, over 5%. In the bullion market, due to demand, gold prices bounced back to close at Rs.11,995/10gm and silver closed at Rs.23,415/kg.
2. The sluggish industrial growth of 3% (a six-year low) in March will compound the government’s problem of fighting inflation, which is hovering above 7.5%.
3. Bajaj Auto Limited, the country’s second largest two-wheeler maker has announced a joint venture with Renault-Nissan to produce a US$2500-car by 2011 that will compete with Nano from Tata Motors.
4. China has become a world leader in the carbon credit business with a market share of 73% in volume of credits traded in 2007 as compared to India’s 6% - as per a World Bank report.
5. Fertilizer paucity to hit south Indian states. The deficit of fertilizers is projected at 20 lakh tonnes in AP, TN and Karnataka states. Industry sources blame the centre’s fertilizer pricing policy for the current situation. The MRP has not been revised by the centre since 2002.
6. Indian government has plans to spend US$34 billion on power, to increase transmission capacity to 37,700megawatts by 2012 from 17,000 megawatts.

Clean air technology

Public Sector power companies are eying to grab a larger pie of Carbon Credit Market. Some of the coal-burning thermal power plants run by the National Thermal Power Corporation (NTPC) are the major contributors for the greenhouse gas emissions and deterioration of air quality. It is reported that the NTPC is the largest contributor to greenhouse gas (GHG) emissions in Indian power sector.

A new technology (Integrated Gasification Combined Cycle, IGCC) developed by the power equipment manufacturer (BHEL), cuts greenhouse gases by 40%, leads to lower solid waste production and operating efficiency of around 40%. It also offers a technical pathway to cost-effective separation of the greenhouse gas carbon dioxide and co-production of hydrogen.

It should be made mandatory to all the power plants based on coal or gas that the GHG emissions should be prevented keeping global warming considerations in mind. Cost of electricity generated from coal-based plants used to be cheap. However, with the adoption of the new technology, the cost per unit electricity generated through route is likely to go up and may be comparable to other technologies such as nuclear or solar, where the initial project cost makes them costlier as compared to earlier coal and gas based plants.

Indian Business News – Selected Extracts (10/05/08)

1. The Bombay Stock Exchange (BSE) sensex slid below 17,000 mark to close at 16,737, dropping 343 points. Poor global cues, rising inflationary, weak rupee and record high crude oil prices seem to be main factors for the slide in sensex. In the bullion market, due to demand, gold prices allied on fresh buying to close higher at Rs.11,940/10gm and silver closed at Rs.23,475/kg.
2. Inflation up at 3-year high of 7.61%. The government is taking administrative steps for price control. Oil price topped US$126 a barrel, may reach $150 – 200 a barrel over the next 6 to 24 months period.
3. Czech auto giant Skoda plans 5 new launches in India, including its global small car next year.
4. Citi CEO said that the Citigroup planned to sell about $400 billion in assets in the next 2-3 years. The group expected revenue growth of 10% a year from its core units. Overhauling Citigroup will be a long slog and challenging.
5. World’s luxury brands are at India’s door steps. The global luxury goods market was worth 75 billion pounds in 2006. The growth in India is expected to rise at the rate of 28% in the next 3 years.
6. Japan has committed to give India Rs.8,582 Cr as assistance for developing none infrastructure projects. The phase – II of the Delhi Metro Project will also be funded by Japan.

Indian Business News – Selected Extracts (09/05/08)

1. The Bombay Stock Exchange (BSE) sensex slid 259 points to close at 17,081. Inflationary concerns continued to worry the markets. In the bullion market, due to festive demand, gold closed higher at Rs.11,750/10gm and silver closed at Rs.23,120/kg.
2. Endorsing the government’s concern over steel prices contributing to inflation, cement companies decided to lower prices by about Rs.10 – 20 a bag from the current price of Rs.220 per 50 kg bag. Rupee falls to lowest level, Rs.41.76 against the US dollar, in over a year. Oil prices steady after jumping to a record near US$124 a barrel.
3. HSBC has admitted to losing a computer server with the transaction data of 159,000 account holders in Hong Kong. The server is protected by multiple layers of security and hence the risk of data leakage is deemed to be low.
4. Auto sector reports higher sales in the first month of new financial year, according to the figures released by the Society of Indian Automobile Manufacturers.
5. India is the key to emerging world order by 2022, says C.K. Prahalad, a distinguished University of Michigan Professor. This can achieved through its economic strength, technological vitality and moral leadership.
6. Revenues from mobile messaging are likely to grow to US$165 billion by 2011 across the world.

Indian Business News – Selected Extracts (08/05/08)

1. The Bombay Stock Exchange (BSE) sensex was flat to close at 17,339, down by 34 points. In the bullion market, gold closed at Rs.11,655/10gm and silver closed at Rs.23,020/kg.
2. Endorsing the government’s concern over steel prices contributing to inflation, steel manufacturers decided to reduce prices of flat products by Rs.4000 per tonne and those of rebars and structural steel by Rs.2000 per tonne. Indian rupee slips to Rs.41.36 a dollar on rising US dollar and oil demand. Crude oil closed at US$122 per barrel.
3. Bharti and global telecom industry leaders signed a formal construction and maintenance agreement to build the first direct, high-band width optical-fiber submarine cable system from UK to India.
4. 5-star hotels across India have started reducing rates of foreign liquor by about 30%.
5. India to have over 4lakh dollar millionaires in 10 years as per the report by the Economist Intelligence Unit on behalf of Barclays Wealth.
6. Global carbon market doubles in 2007 to US$64billion. Climate change policies which limit the production of greenhouse gases in rich countries are driving booming global demand for emissions permits.

Indian Business News – Selected Extracts (07/05/08)

1. US blame India and China for high oil prices. Earlier, it was said that higher standards of living in the developing countries resulted in increased demand for food which is the driver of higher prices across the world. However, the US with its 300 million population, consumes about 20 million barrels of oil per day, seven to ten times more than India with its billion-plus population.
2. Bharti Airtel has made an offer of US$19 billion for acquiring a 51% stake in Johannesburg-listed telecom firm MTN.
3. National Highway development projects are likely to suffer if adequate steps are not taken to control the prices of steel and cement.
4. The Bombay Stock Exchange, sensex fell 118 points to close at 17,373. IT and FMCG stocks were the top gainers. In bullion market, the gold closed at Rs.11,600/10gm and silver at Rs.22955/kg.
5. Reliance Industries has shut all of its 1,432 petrol pumps in the country after drop in the sales due to its inability to match the subsidized price offered by public sector companies. The company owned less than 3% of the 36,936 petrol pumps in the country.
6. Mumbai is the world’s 7th largest billionaire city, says Forbes business magazine.
7. Machine parts roll into Tata’s Nano factory at Singur, West Bengal.
8. Cartosat-2A satellite, which India put into orbit last week, has begun beaming pictures. This is expected to revolutionize the land market.

Indian Business News - Selected Extracts (05/05/08

1. The Bombay Stock Exchange sensex rose by 312 points to close at 17,600. Banking stocks were in demand. SBI showed better than expected results, net profit up by 26%. REL was the top gainer (7%). In the bullion market, gold tumbled down to an over three-months low of Rs.11,255/10gm and silver closed at Rs.22,330/kg.
2. Due to soaring fuel prices, buyers flock to small and more fuel efficient cars in US.
3. Skoda launches the petrol version of Fabia, priced between Rs.4.87 to 5.80 lakh (ex showroom price).
4. In line with its plan to focus on core business like properties, FMCG, durables, office furniture, the Godrej Group is exiting from BPO business.

Inflation in uncontrollable levels

The economic Advisory Council Chairman to the Prime Minister of India says that the inflation is likely to reduce to 6% from the present uncomfortable level of over 7.5%. The Indian economy is expected to grow at 8-8.5% despite global turbulence. Several fiscal and monetary measures are taken to contain inflation.

Indian Prime Minister says: Inflation is a tax on the poor. Corrupt politicians and bureaucrats do not allow the benefits of existing safety nets such as rural employment schemes and public distribution systems (PDS) to reach the poor. In many states, less than 50% of the subsidized food grain reached the PDS target group. The question is how long it will take to show the results? After the forthcoming general elections?

Indian Business News - Selected Extracts (02/05/2008)

1. Flat prices are going to remain steady till Diwali. Despite slack in the market, builders are not willing to lower rates. High bank interest rates for housing loans do not make investment in property worth the money.
2. Thailand mobilizes south east Asian nations to set up OPEC like body to trade rice in the world market. Thailand is the world’s largest rice exporter and the other partners for the rice cartel are: Vietnam, Cambodia, Myanmar and Laos. The largest rice growing countries, China and India consume their rice production internally.
3. Soaring global crude oil prices have resulted in widening of India’s trade deficit by over 61% in March.
4. Auto sales are back on growth track. Maruti reported a growth rate of 22.4% in sales and Hyundai 36.7% rice.
5. India’s exports grew by 23% to US$155.5 billion in the fiscal year ended March, 2008, missing the $160 billion target.

Indian Business News – Selected Extracts (01/05/08)

1. Essar Steel Holdings is set to buyout US-based steel maker Esmark for about US$669 million.
Reliance Industries (RIL) picks up 90% of Block-141 in Peru from Pan Andean Resources, a south-America-focused oil and gas explorer.
2. Reliance Communications on Wednesday reported a net profit of Rs.5401 Cr for the year ended March 31, up by 70.8%.
3. The Bombay Stock Exchange, sensex fell marginally by 91 points to 17,287. In bullion market, the gold closed at Rs.11,400/10gm and silver at Rs.22715/kg.
4. Thanks to high global crude oil prices, Indian oil companies have hiked the price of jet fuel by about 10%.
5. The Finance Minister announces measures to make cement, steel cheaper, and RBI chief hikes CRR by 0.25% to 8.25% to suck out over Rs.9000 Cr liquidity.
6. Lok Sabha passes the Finance Bill 2008-09. The Bill will now go to Rajya Sabha for consideration and then on to the President of India for her assent.
7. India’s fast growing Aviation Industry will need an estimated 6,000 more pilots in the next 5 years.