RBI seen cutting interest rates as growth stumbles
The Reserve Bank of India (RBI) is expected to cut its key policy rate on Tuesday for the second time in 2013 to help revive a faltering economy, taking comfort from moderating core price pressures and the government's commitment to trim the fiscal deficit.
The RBI reduced the repo rate by 25 basis points to 7.75 percent in January after holding it steady for nine months, and a recent Reuters poll forecast a further 25 bps cut.
However, a recent uptick in headline wholesale inflation, rising food price-driven consumer inflation and a record-high current account deficit are seen limiting the RBI's space for more aggressive monetary easing.
Central bank watchers expect Governor Duvvuri Subbarao to maintain a guarded stance on future rate cuts.
(Sources: Economic Times, Indiatimes, India Everyday, Reuters India, Worldnews, Moneycontrol)
Indian technology industry likely to grow to Rs.1.8 trillion by 2016
With the increasing technology requirements of Indian businesses and government along with increased consumerization, the Indian technology industry is expected to grow to Rs.1.8 trillion by 2016, a growth of 12% over 2012, said a report released on Monday by the Boston Consulting Group and the Confederation of Indian Industry.
According to the report, titled ‘IT for India—New Horizons, New Opportunities’, the contribution of the Internet economy to the country’s gross domestic product (GDP) is expected to increase from 4.1% in 2010 to 5.6% in 2016, to touch Rs.11 trillion, driven largely by the country’s demographic dividend. Also, the number of billion-dollar Indian companies will increase from 141 in fiscal year 2010 to more than 700 by 2020, and these firms will require extensive use of technology to remain competitive.
(Sources: Livemint, Economic Times, Indiatimes, Business Standard, Times of India, Moneycontrol)
Brazilian steelmaker Gerdau hunts for more buys in India
Brazilian steelmaker Gerdau SA said it is on the lookout for more acquisitions in India, even as it announced that it now had a 99%stake in its first JV in the country with Kalyani Steels.
Gerdau is upbeat on the sector's prospects in the long run, said its director of marketing, Ramaswamy Visweswaran.
Gerdau, which joined hands with Kalyani Steels in June 2007 with 45% equal stake with the Indian partner for the steel manufacturing facility at Tadipatry in Andhra Pradesh, now owns 99% in the joint venture.
(Sources: Economic Times, Indiatimes, India Everyday, News BCC, Moneycontrol)
Rise in customs duty on coal may increase power cost: CMIE
The government's move to increase customs duty on imported coal may increase the cost of power generation, a CMIE report has said.
Finance Minister P Chidambaram in the Union Budget, had announced a hike in import duty on coal. Besides, basic customs duty of two per cent was imposed on steam coal while countervailing duty (CVD) on imported coal was increased to two per cent from one per cent in the previous year.
However, improvement in domestic coal availability will enable thermal power plants to increase their output, it said.
During April 2012-January 2013, the country's coal production increased by 5.3 per cent against fall of 1.5 per cent reported in the corresponding period a year ago, it said.
(Sources: Economic Times, Indiatimes, NDTV, Daily India News, India Everyday, Moneycontrol)
Oberoi Delhi gets national award for best 5-star hotel
Hospitality chain the Oberoi group today said its property in the national capital, 'The Oberoi' has bagged the National Tourism Award in the Best Five Star Deluxe category.
Instituted by the Ministry of Tourism, Government of India, the National Tourism Awards are the most coveted awards in the travel and tourism industry in India and are presented annually, in various categories.
Earlier, The Oberoi Rajvilas, Jaipur was awarded with the National Tourism Award in 2010 - 2011.
(Sources: Economic Times, Indiatimes, Hindu Business Line, DNA India, Money Life, Moneycontrol)
$ 3.69 billion road projects set to get back on track
Work could soon begin in a clutch of stranded highway projects with likely combined investments of over $ 3.69 billion, as the Union environment ministry is set to give them approvals in one go. The ministry’s blanket approval is enabled by its decision to de-link the environment and forest clearances (EC and FC) for road projects, as per a recent Supreme Court directive.
The move comes in the wake of crucial meetings of the Cabinet Committee on Investment (CCI), aiming to remove the regulatory hurdles for infrastructure projects worth $ 9.24 billion by March 31.
The projects to be cleared by the environment ministry include the $ 1.42 billion Kishangarh-Udaipur-Ahmedabad project, the delay in clearance for which led to a stand-off between the concessionaire GMR Group and the National Highways Authority of India (NHAI). Other projects set to be given environmental clearance are Gwalior-Shivpuri, Patna-Buxar and Kota-Jhalwar road projects, among others.
(Sources: Financial Express, Indian Express, Business Standard, Hindu Business Line, Moneycontrol)
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