ADB sees India economic growth picking up to 6 percent
Domestic consumption could boost India's slowing economy to 6 percent growth this year, but the country may still fail to reach that level if it does not follow through on reforms to encourage investment, the Asian Development Bank (ADB) said Tuesday.
High Inflation, a key concern that is hampering India's scope to jump start the economy with lower interest rates, is forecast to ease to 7.2 percent this year from 7.5 percent last year, the ADB's Asian Development Outlook said.
The growth forecast is an improvement over disappointing numbers last year but still far short of what Asia's third-largest economy needs to create enough jobs for its huge, youthful population.
(Sources: Indian Express, Financial Express, Huffington Post, One News Page, NDTV)
India, developing nations threaten veto on trade facilitation pact
The government has decided to go along with an agreement on trade facilitation at the World Trade Organisation talks later this year in Bali, Indonesia, only if there is an accord on subsidies to poor farmers.
There is considerable progress on the said agreement but India, China, Philippines and Indonesia are among the developing countries which have demanded a "balanced outcome". This is important, as the ministerial meet in Bali during December 3-6 is seen by many as a turning point in the global trade talks.
An agreement on trade facilitation basically means a reduction in red tape and an enhancing of customs cooperation. For the first time since the talks began in 2001, there is likely to be an agreement. According to WTO director general Pascal Lamy, there is "considerable progress" happening and a deal on this might result in a $1 trillion boost to the world economy.
(Sources: Economic Times, Indiatimes, Business Standard, India Everyday, News Hour 24)
CII chief meets PM on improving business confidence
S Gopalakrishnan, the newly elected president of the Confederation of Indian Industry (CII) and Infosys CEO, on Monday called on Prime Minister Manmohan Singh and discussed issues relating to the macro-economy, lifting business confidence and ease of doing business in India.
In his speech to CII, the Prime Minister had laid stress on greater investments in the economy to accelerate annual GDP growth to eight per cent in the medium term from the estimated decade low growth of five per cent in 2012-13.
The investment rate in the economy used to be 38.1 per cent of GDP in the pre-crisis period of 2007-08. It declined to 34.3 per cent in 2008-09. In 2012-13, investment rate was projected to be 35.3 per cent, higher than the crisis period, but way below the 2007-08 level.
India stood at 132 among 185 countries in terms of ease of doing business ranking, by International Finance Corporation, the private sector lending arm of the World Bank.
(Sources: Business Standard, Smart Investors, Hindu Business Line, Yahoo News, IBNLive)
Cairn India makes new oil discovery in Rajasthan block
Cairn India today said it has made the 26th oil discovery in its prolofic Rajasthan block.
The discovery follows allowing the company to explore for oil on block well after expiry of the exploration phase.
"Cairn India has made its latest oil discovery, the 26th discovery so far in the RJ-ON-90/1 block, following recent policy clarity by Government of India (GoI) to conduct exploration activity in development blocks," the company said in a statement here.
Cairn Chief Executive Officer P Elango said the discovery in the block "reaffirms our belief that an aggressive exploration drilling programme will help harness the full potential of the Barmer Basin in Rajasthan."
(Sources: Economic Times, Indiatimes, the Hindu, Hindu Business Line, IBNLive, Business Today)
Cairn keen on city gas distribution in Rajasthan
Cairn India, the country's largest private-sector oil producer, is keen to start city gas distribution in Rajasthan as it sees a huge natural gas potential in its block.
The company, which has discovered huge oil reserves in the Barmer region of the state, is keen to partner Rajasthan State Petroleum Corporation's (RSPCL) joint venture with Gail India for the new business, while the state government is supportive of the plan. A government official said a decision would be taken shortly.
Last November, RSPCL and Gail agreed to form a joint venture, Rajasthan State Gail Gas Company, where RSPCL is the nodal agency and facilitates Gail in acquiring land for city gas infrastructure. In the joint venture, Gail has a 26% stake while RSPCL has a 24%.
(Sources: Economic Times, Indiatimes, Infraline, Smart Investors, Zeenews, News Hour 24)
Steel consumption grew by 3.3 per cent in FY'13 to 73.3 million tonnes
India's steel consumption grew by just 3.3 per cent in 2012-13 fiscal to 73.3 million tonnes as demand remained subdued almost throughout the year due to slackening economy and high interest rates.
The dip in consumption growth is the lowest for at least three years. It grew by 5.5 per cent in 2011-12 over 2010-11 and 9.9 per cent in 2010-11 over 2009-10, according to data complied by Joint Plant Committee, a body under the Steel Ministry.
The latest data showed India's consumption of steel, used mainly in construction and consumer durables, grew by 2.3 million tonnes from 71 million tonnes a year ago.
(Sources: Economic Times, Indiatimes, Business Standard, Hindu Business Line, India Everyday)
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