|
|
‘Yaswant taking
‘ostrich like’ stand’ CHENNAI, Oct 12: Former Finance Minister P Chidambaram today charged Union Finance Minister Yaswant Sinha with taking an ‘ostrich like’ attitude.....more Recession-hit
industrial NEW DELHI, Oct 12: Industrial growth slumped further to 1.8 per cent in August, from 5 per cent during the month last year, and averaged 2.2 per . ....more Industrial
growth NEW DELHI, Oct 12: Industrial growth slumped further to 1.8 per cent in August this year.....more Gems
give Afghan DESHITIQALA (AFGHANISTAN), Oct 11: How does Afghanistan’s ragtag opposition force fund its campaign against...more |
 |
FM confirms FII, FDI MUMBAI, Oct 12: The Union Finance Minister, Mr Yashwant Sinha, today clarified that the maximum upper limit of investments by both the foreign ......more Cutting
interest rate MUMBAI, Oct 12: While central banks of major world economies have already revised interest rates to cushion against the industrial sluggishness, ......more KOLKATA, Oct 12: With better demand prevailing in the CTC, orthodox and dust varieties, the tea market witnessed good enquiries from both the ...more FM
cautions PSU banks MUMBAI, Oct 12: The Union Finance Minister, Mr. Yashwant Sinha, today cautioned banks that the vast branch network of the public sector banks.....more |
 |
|
|
|
|
Recession-hit industrial growth dips to 1.8 pc in Aug, 2.2 pc in Apr-Aug NEW DELHI, Oct 12: Industrial growth slumped further to 1.8 per cent in August, from 5 per cent during the month last year, and averaged 2.2 per cent in April-August, mirroring the continued recessionary conditions of the economy. The growth in April-August last year was 5.6 per cent. Manufacturing, which has a heavy weightage in the Index of Industrial Production (IIP), had a growth rate of two per cent in August, down from 5.5 per cent, and 2.5 per cent in April-August, against 6.1 per cent during the corresponding period last year. The quick estimates IIP figures were released today by the Central Statistical Organisation. Electricity registered a positive growth of 1.9 per cent in august, against one per cent last year, but the April-August figure was down to 2.6 per cent from 3.8 per cent in the same period last year. Mining had a near nil growth rate at 0.1 per cent in August (four per cent in August 2000) and a negative growth of minus 0.7 per cent in April-August (3.4 per cent in Apr-Aug 2000). Nine of the 17 two-digit industry groups have shown positive growth during August as compared to the corresponding month last year. Following are the growth rates (in percentage) of various products in August 2001 and April-August 2001 respectively: food products 1.3 and one, beverages, tobacco and related products 19.1 and 11.6, cotton textiles minus 8.2 and minus 2.3, wool, silk and man-made fibre textiles two and 9.2, jute and other vegetable fibre textiles (except cotton) minus 7.1 and minus 7.2, textile products (including wearing apparel) minus 13.7 and minus 4.2, wood and wood products, furniture and fixtures minus 6.3 and minus 10.6, paper and paper products and printing, publishing and allied industries minus 3.3 and minus 0.4, leather and leather and fur products 23.5 and 13.6, basic chemicals and chemical products (except products of petroleum and coal) 2.8 and 4.0, rubber, plastic, petroleum and coal products 15.4 and 13.5, non-metallic mineral products minus 1.5 and 1.9, basic metal and alloy industries 6.4 and 3.2, metal products and parts (except machinery and equipment minus 19.6 and minus 15.2, macinery and equipment other than transport equipment 4.1 and 0.9, transport equipment and parts 7.0 and 3.6, other manufacturing industries minus 5.8 and 6.5. (UNI) |
|
Industrial growth dips further to 1.8 pc in August NEW DELHI, Oct 12: Industrial growth slumped further to 1.8 per cent in August this year compared to five per cent in the same month last year mainly due to poor performance of the manufacturing sector. According to quick estimates of Index of Industrial Production (IIP) released by Central Statistical Organisation (CSO), the manufacturing sector grew at a mere two per cent in august vis-a-vis 5.5 per cent last year. The cumulative growth in the first five months (April-August) of current financial year also remained subdued to 2.2 per cent as against 5.6 per cent in the corresponding period last year. In July this year, IIP had grown at 2.6 per cent. Mining sector registered a marginal growth of 0.1 per cent in august this year as against four per cent in the year-ago month. The cumulative growth declined to negative 0.7 per cent from 3.4 per cent in the April-August last fiscal. The electricity sector, however posted better performance in August registering a growth of 1.9 per cent compared to one per cent on the same month last year while the cumulative growth in April-August period declined to 2.6 per cent this year as against 3.8 per cent in the same period last year. (PTI) |
|
TVS-Suzuki applies for an Indian patent VISAKHAPATNAM, Oct 12: The Indian two-wheeler major TVS-Suzuki Limited has applied for an Indian patent for the innovative mechanical process which resulted in developing "economy power mode" in its latest world class eco-friendly fuel efficient product variant "victor" motor cycle. The power mode gets attenuated from manual mode as the rider turns on the accelerator giving him more push, according to the TVS Suzuki’s Hosur Plant General Manager B Asish Kumar. Interacting with the media after launching the four-stroke 100 cc motor cycle version here today, he said the company would apply for international patent after securing the Indian patent. Stating that the bike adhered to 2005 emission norms, he said the company had planned to introduce two more variants of the vehicle by March next with market for motor cycles on the rise. The company, Mr Kumar said was confident of exceeding its current 20 per cent market share in the country even as export demand was on the rise. The company was awaiting the green signal of the centre for introducing other four-stroke models and mopeds which could run with LPG with the company already manufacturing the vehicles using indigenous technology, he added. TVS Suzuki, he said, was ready to market even the multi-mode fuel kits to the customers if the Government permitted to do so by suitably amending the transport regulations. The company had started increasing the production capacity from 400 to 600 per day in its Hosur manufacturing base in Karnataka to meet the increased demand. (UNI) |
|
FM confirms FII, FDI upper investment limit raised MUMBAI, Oct 12: The Union Finance Minister, Mr Yashwant Sinha, today clarified that the maximum upper limit of investments by both the foreign Financial Institutions (FIIs) and Foreign Direct Investment (FDI) together in banks and financial institutions is at 49 per cent as against a range of 20 to 26 per cent, earlier. Talking to mediapersons at the sidelines of a conference "Bancit" organised by Infosys here, Mr Sinha said, the upper ceiling has been raised even in the public sector banks and also in case of the State Bank of India (SBI). However, the bank-specific act like SBI Act and Board approvals could be enhance to the foreign investment ceiling. Mr Sinha also indicated that his Government borrowing programme would be limited to the budgetary estimates as the economy continued to be under strains, following difficult external situation. He informed that his Ministry had already announced various incentives including enlargement of duty drawback schemes to exporters, who are currently facing a severe adverse environment to boost their exports, particularly, after the imposition of high war time insurance premiums on shipping and aviation sectors. While the Government is continuously reviewing both domestic and external economic environment, he said, the Reserve Bank of India (RBI) would deal with the level of interest rate, currency valuation and other monetary matters at an appropriate time and he has nothing to say on this. Asked about the expected Gross Domestic Growth (GDP) growth rate for the current fiscal year, Mr Sinha said, he does not have any target and better relied on expert groups to predict the growth rate. However, even a growth rate of 4 per cent to 5 per cent is commendable, considering the prevailing business environment, he said. (UNI) |
|
Cutting interest rate a hard nut to crack for RBI MUMBAI, Oct 12: While central banks of major world economies have already revised interest rates to cushion against the industrial sluggishness, which was in a sharp downturn even before the terrorist strikes against the United States, the Reserve Bank of India is still evaluating the pros and cons of a similar exercise, due to its multidimensional fallout, argue economic analysts. The United States Federal Reserves recently effected a half point cut in interest rate, and it is the ninth cut announced by US fed in the current financial year. But India has neither followed US fed nor pruned interest rates in the past six months, Arvind Jolly, President of the Indian Merchants’ Chamber (IMC) told UNI. According to him, the cut in bank rate by RBI, would translate into a reduction in interest rates, which in turn might create an imbalance vis-a-vis interest on Government savings schemes as well as deposits. These being the only safe investment avenues with a reasonable return, the decision of a cut will surely hamper small investors’ interest, Mr Jolly argued. Meanwhile, expectations that the European Central Bank (ECB) would cut rates for the fourth time this year faded, as recent comments by ECB Council members have fuelled doubts that ECB would react again after already shedding 75 basis points in less than a month. Pointing out some positive aspects, Mr Jolly said, a bank rate cut would stimulate industrial growth in the country, by spurring investment and making debt servicing and inventory management less costly. But it may not lead to higher credit off-take in the economy because, other important factors, like industrial growth and bank credit delivery mechanism, do not meet expectation. Since Indian banks are already flush with funds, a reduction in interest rates may not cause any significant jump in credit off-take, a leading banker said. A cut in interest rate may affect the flow of foreign funds, particularly, NRI deposits. On the other hand, since the interest rate for export credits has already been reduced, continuing with the rate may not affect exports, the banker argued. The other benefit of interest rate reduction is that some funds may find route into equity markets. But in the wake of weak fundamentals and global recession, amid war like situation, the cut will not bring in much funds into the capital market, the a broker said. It may be recalled that the Union Finance Minister Yashwant Sinha recently advocated a cut in the interest rates. But he played safe by saying the timing and extent of the cut will be decided by RBI. Since the decision is a ticklish issue, because while a cut is likely to benefit industry, it may not help small investors, it should not take a political dimension, argue experts. The pros and cons of the decision must synchronise to effect an interest rate cut in order to draw maximum benefit. (UNI) |
|
|
KOLKATA, Oct 12: With better demand prevailing in the CTC, orthodox and dust varieties, the tea market witnessed good enquiries from both the internal and the foreign markets in the auction held this week. The CTC variety opened on good demand at easier rates. Few good Assam varieties were sold at lower levels and the medium ones irregularly lower in line with quality. Few dooars and cachar varieties were sold irregularly around last levels. Major blenders operated selectively for some good varieties. Other packeteers were selective in line with quality. The bolder varieties saw some enquiries from the CIS. The western India buyers operated for the good liquoring sorts. The other internal buyers maintained their normal standards. Packages weighing 44,941 kgs were involved in the sale. Meanwhile, the orthodox varieties showed fair demand. The tippy teas on offer sold well around last levels. There were selective enquiries from the CIS and the Middle East. North Indian markets were active for bolder whole leaf varieties. There were some interests from the local markets. Packages weighing 24,832 kgs were involved in the sale. Markets opened on fair demand and the good and better Assams were firm. However, at times the good and better Assams were dearer in line with quality. Few mediums and dooars sold at easier levels. The major blenders were selective in their approach. Western India operated for the liquoring sorts. The internal markets were selective in their approach and buying support. The quantity on offer was 18969 kgs. In the Silguri and Guwahati sale, the markets showed improvements following better demand. In the international markets, the better varieties maintained fair demand following better enquiries from the buyers. (UNI) |
|
FM cautions PSU banks against becoming large liability MUMBAI, Oct 12: The Union Finance Minister, Mr. Yashwant Sinha, today cautioned banks that the vast branch network of the public sector banks would soon be a large liability, unless they strive hard to modernise their branch operations through technology adoption. Inaugurating the premier banking technology conference "bancit" organised, for the first time in Mumbai, by Infosys Technologies Ltd., Mr. Sinha said, the strength of the large branch network would no more be a key factor for the growth of the banks, because the technology had led to a series of changes in the nature of financial services and products with respect to convenience of customers. In this context, he said that Citibank was able to garner an additional 1.5 lakhs new customers to its fold under one savings account product without opening any new branch in just one year. The customers of this account "suvidha" are offered all the services through ATMs and internet banking only. Besides technology, Mr. Sinha also expressed concern over the weak infrastructure of legal rules and practices and the absence of a strong regulatory and supervisory framework in the country. You cannot have a financial system in which there is no sanctity of contract, he observed. Mr. Sinha who was in Mumbai for a day to attend the board meeting of NABARD among others, said that the reduction of operating cost by the Indian banks became imperative because they would have to keep their profit line growing in the emerging competitive banking business. However, the pre-requisite for an efficient financial system is a strong infrastructure of legal rules and practices. We have a long way to go, particularly, in terms of development of market and for contract enforcement, he said. On regulatory and supervisory framework, the Finance Minister said, the greater liberalisation of financial markets must go along with deeper supervision and higher degree of regulation. This is because financial markets are volatile where herd mentality catches up fast and affect even those who are not in the financial markets. Mr Sinha also emphasised the need for individual banks to provide utmost importance to prudent business practices and institute an effective internal control system and also asset and liability management system to avoid term mismatches in portfolio. This needs stricter accounting and valuation norms on part of the banks. In this context, he said that his Ministry had already initiate action to take the Indian banking system to global standards in terms of practices and performances. This would ultimately contribute to the sustained growth of the real economy with price stability, he added.(UNI) |
|
|
