Indian economy grew by 9.4 per cent in 2006-07 against 9 per cent in the previous year as robust growth in manufacturing and services sector more than made up for a slowdown in agriculture and construction sector.However, gross domestic product growth slowed down to 9.1 per cent in the fourth quarter (Jan-March) of 2006-07 against 10 per cent in the same quarter of the previous fiscal, pulled down by slow agriculture, construction, financial and social services growth.GDP growth during the fourth quarter was, however, higher sequentially as it was 8.7 per cent in the previous quarter of 2006-07.Manufacturing grew by 12.3 per cent in 2006-07 against 9.1 per cent in the previous year, while trade, hotels, transport and communication grew by 13 per cent against 10.4 per cent.Agriculture and allied sector's growth, however, slowed down to 2.7 per cent against six per cent and construction to 10.7 per cent against 14.2 per cent.
source:PTI
Thursday, May 31, 2007
Tuesday, May 29, 2007
Poor show in power sector will trip economic growth, says PM
NEW DELHI: PM Manmohan Singh on Monday called for a "crash programme (course)" on raising India's generation capacity, saying the dismal pace of reforms in the power sector will trip overall economic growth and called upon states to check electricity theft that was bleeding the system. "There is general agreement on the need to rapidly reduce transmission and distribution losses...If we expect the economy to keep growing at 9-10% per annum, we need a commensurate growth in the power supply...I request all chief ministers to launch a campaign against theft in their states," Singh told a CMs' conference on power sector. For good measure, PM added, "In fact, time is running out, and unless we are able to arrest the growing shortages, the effect on our economy may well prove disastrous." "We have not been able to make a decisive breakthrough in ensuring high and sustainable rates of growth of this sector and improving its financial health...The current level of losses in transmission and distribution, ranging between 30-45% in many states, threatens the financial health of the sector. A large proportion of these losses are due to theft. Theft is the cancer of the power sector." Concerned over the slow pace of capacity addition, given that only half of the 41,000 mw target could be achieved in the 10th Plan, the PM announced setting up of a dedicated, professionally-managed National Power Project Management Board to keep track of 11th Plan projects. Singh also announced setting up of a task force to develop hydel projects and look into issues of rehabilitation and resettlement of affected persons. The PM said states and the Centre had every right to intervene decisively in case the sector regulators did not take measures strictly in consonance with public interest. "After all, the law is quite clear on this. Regulators should regulate — but not over-regulate. They should not become parking places for retired bureaucrats." The conference resolved to set up a standing group of power ministers, on the lines of a grouping of state finance ministers on VAT, to look at issues affecting the power sector. With over Rs 600,000 crore investment needed during the 11th Plan, Singh also announced setting up a sub-committee of the standing group to look at financing issues, particularly for upgrading transmission networks. While the standing group would be headed by power minister Sushilkumar Shinde, the sub-group would be chaired by FM P Chidambaram and include deputy chairman of plan panel Montek Singh Ahluwalia. "I expect this sub-committee to finish its work in three months," he said. Singh said the sector required a "crash programme" for capacity addition to eliminate shortages by 2012 and pegged the investment needs at over Rs 600,000 crore during the 11th Plan period. He said the sector's inability to attract private players on a big scale was a serious issue.
source:29 May, 2007 -TIMES NEWS NETWORK
source:29 May, 2007 -TIMES NEWS NETWORK
BSE market cap crosses $1 trillion
MUMBAI: Thanks to the meteoric rise of the rupee in the last two months, the combined wealth of the Indian investors is a trillion dollar now. In Monday's intra-day trade as the rupee hit a new nine-year high against the US dollar, at 40.50, and a strong rally took BSE's market capitalisation to over the Rs 40.50 lakh crore mark, India joined an elite club of countries that boast of $1-trillion market capitalisation. With the country's GDP too at over $1 trillion now, India is among the 10 countries in the world which has a trillion-dollar GDP and market capitalisation at the same time. Both these milestones were achieved due to the appreciation of the rupee, which was hovering around 44.50 during the beginning of 2007. At that exchange rate, India's GDP as well as BSE's market cap would now be about $921 billion. In the last year, investor wealth in rupee terms has jumped 37% to Rs 40.40 lakh crore; in dollar terms, it has shot up 56% to $1 trillion. During the same period, Sensex has gained 36% to its current close at 14,398. While market players said this milestone for India is more psychological in nature, they believe that joining this elite club would also attract greater international attention. ‘‘India is already the fourth largest market in Asia (behind Tokyo, Hong Kong and Shanghai) and the country's GDP growth rate has been second fastest in the world. And now achieving this important milestone would definitely be important when it comes to FII investment,'' said Amitabh Chakraborty, president-equities, Religare Securities.
Source:29 May, 2007 -TIMES NEWS NETWORK
Sunday, May 27, 2007
RBI allows foreign companies to open escrow accounts for Indian acquisitions
Mumbai: The Reserve Bank of India (RBI) has allowed foreign companies to open escrow or special accounts in authorised banks for buying shares in Indian companies - a move that gives them more flexibility in acquiring local companies.
Authorised banks may open escrow or special accounts on behalf of non-residents for the purpose of open offers, delisting offers and exit offers subject to SEBI regulations, RBI said in a notification.
These banks will not require prior approval of the Reserve Bank to open such accounts and these could be operated by persons appointed by the firms, the RBI said.
These non-interest bearing accounts could be opened in Indian currency jointly for the purpose. However, banks will not be allowed to provide any facilities against balance in these accounts, the notification added.
The RBI is expected to notify necessary amendments in the foreign exchange management regulations shortly in this regard. Meanwhile, as part of measures to boost oil and gas exploration in the country, the RBI eased norms for field consortium members to make payments to the operator.
RBI, in a notification, allowed banks to make payment towards cash calls to the operator for oil exploration in India either in foreign currency or in Indian rupee.
Cash call is the expenditure incurred by oilfield operators, which is reimbursed by the consortium as per the production sharing agreement.
The RBI has asked banks to ensure that the demand made by the operator for payment toward cash calls is as per the production sharing agreement. It, however, asked banks to obtain a no-objection certificate from the income tax department before making any such payments.
Authorised banks may open escrow or special accounts on behalf of non-residents for the purpose of open offers, delisting offers and exit offers subject to SEBI regulations, RBI said in a notification.
These banks will not require prior approval of the Reserve Bank to open such accounts and these could be operated by persons appointed by the firms, the RBI said.
These non-interest bearing accounts could be opened in Indian currency jointly for the purpose. However, banks will not be allowed to provide any facilities against balance in these accounts, the notification added.
The RBI is expected to notify necessary amendments in the foreign exchange management regulations shortly in this regard. Meanwhile, as part of measures to boost oil and gas exploration in the country, the RBI eased norms for field consortium members to make payments to the operator.
RBI, in a notification, allowed banks to make payment towards cash calls to the operator for oil exploration in India either in foreign currency or in Indian rupee.
Cash call is the expenditure incurred by oilfield operators, which is reimbursed by the consortium as per the production sharing agreement.
The RBI has asked banks to ensure that the demand made by the operator for payment toward cash calls is as per the production sharing agreement. It, however, asked banks to obtain a no-objection certificate from the income tax department before making any such payments.
Financial services has larger share of GDP in India than in UK
Mumbai: Financial services accounted for 9.7 per cent of India's GDP in 2005-06, which was 1.2 per cent more than the share of financial services in the GDP of the UK, global consulting firm KPMG says in its latest study.
India has also outpaced the UK in hiring financial service professionals, with hiring in the sector crossing 5,000 people in 2006, despite a severe crunch of appropriate skills required, the report said.
Despite, increase in the recruitment figures, the report indicates that 58 per cent of the Indian organisations experience difficulties in recruiting the right people with the right skills. This is mainly because, most Indian companies hire people directly for sales operations as opposed to the backend work, where the chances of learning on the job skills are higher. This recruitment pattern, therefore, calls for the education institutions in India to improve their job related skills, it said.
"During 2006, recruitment activity in India was higher than in the UK, with many of the participating organisations recruiting over 5,000 employees, including both graduates and experienced hires," the KPMG report released in association with the UK-India education and research initiative (Ukieri) said.
India, with one of the world's largest labour pools, however, is experiencing high competition and low supply versus low availability of appropriate skills as a serious constraint on the organisations, the report revealed.
The report titled 'Global Skills for Graduates in Financial Services' has been launched to encourage quality training within graduate professionals.
Financial services organizations both in India and the UK that operate on a global basis are increasingly using competency frameworks during their recruitment practices, which are tailored locally to reflect the market they are recruiting in, the report said.
"The recruitment of the right talent into the financial services industry is a big issue in cities like London and Mumbai. Our report shows that graduates gain theoretical knowledge, but lack practical job related skills," KPMG UK chairman new and emerging markets Ian Gomes said.
There is a 'soft skills gap', which needs immediate attention. The findings of our report would be used to inform joint curriculum projects in the UK and India to help institutions address this issue, he added.
India has also outpaced the UK in hiring financial service professionals, with hiring in the sector crossing 5,000 people in 2006, despite a severe crunch of appropriate skills required, the report said.
Despite, increase in the recruitment figures, the report indicates that 58 per cent of the Indian organisations experience difficulties in recruiting the right people with the right skills. This is mainly because, most Indian companies hire people directly for sales operations as opposed to the backend work, where the chances of learning on the job skills are higher. This recruitment pattern, therefore, calls for the education institutions in India to improve their job related skills, it said.
"During 2006, recruitment activity in India was higher than in the UK, with many of the participating organisations recruiting over 5,000 employees, including both graduates and experienced hires," the KPMG report released in association with the UK-India education and research initiative (Ukieri) said.
India, with one of the world's largest labour pools, however, is experiencing high competition and low supply versus low availability of appropriate skills as a serious constraint on the organisations, the report revealed.
The report titled 'Global Skills for Graduates in Financial Services' has been launched to encourage quality training within graduate professionals.
Financial services organizations both in India and the UK that operate on a global basis are increasingly using competency frameworks during their recruitment practices, which are tailored locally to reflect the market they are recruiting in, the report said.
"The recruitment of the right talent into the financial services industry is a big issue in cities like London and Mumbai. Our report shows that graduates gain theoretical knowledge, but lack practical job related skills," KPMG UK chairman new and emerging markets Ian Gomes said.
There is a 'soft skills gap', which needs immediate attention. The findings of our report would be used to inform joint curriculum projects in the UK and India to help institutions address this issue, he added.
Subscribe to:
Posts (Atom)
