Economic Setback After NDA

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Bad news for UPA: India Inc not feeling good

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Inflation at 4-yr high
Inflation continued to climb, reaching a four-year high of 8.17 per cent for the week ended August 21.

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This is ridiculas, 1 ltr petrol costs 41.50 bucks <!--emo&<_<--><img src='style_emoticons/<#EMO_DIR#>/dry.gif' border='0' style='vertical-align:middle' alt='dry.gif' /><!--endemo--> <!--emo&:angry:--><img src='style_emoticons/<#EMO_DIR#>/mad.gif' border='0' style='vertical-align:middle' alt='mad.gif' /><!--endemo-->

[Guest]

Where?? In Mumbai?In Delhi it is about 38 bucks.

[Guest]

In chennai

[Bhootnath]

> In chennai

This is one issue non UT-ites must fight abt ( I am in delhi ), although transportation cost is veryt less in Mumbai ( no idea abt Chennai ) , inspite of this Mumbai pays more than Delhi.

[Guest]

The first chapters of a plan to destroy India economically and kill all the progress achieved by India in the last decade is being written by Sonia, Lallu and India-hating leftists. Let us collect all the Destroy India chapters as they write chapter by chapter into this post. Private Sector reservations is one of the chapters and that is a book by itself.
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Sonia put brakes on Suzuki deal

http://timesofindia.indiatimes.com/artic...862953.cms

<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Industry minister Santosh Mohan Deb's now famous sumo bout with the Suzuki samurai over their plan to set up new production units without talking to the government seems to have been backed by Sonia Gandhi.

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<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->There are indications that Deb has been backed by Sonia in his move to oppose Suzuki's initial plan to go about setting up the new plants without taking the government into confidence. The government is an 18% stakeholder in Maruti Udyog Ltd where Suzuki is the majority shareholder.
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Reminded of a cabinet decision during the NDA regime that the government should get out of business unless it involved strategic areas, Deb said that no such step was being considered.
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http://www.indianexpress.com/full_story....t_id=55912
Dead PSUs come alive on RJD, CPM turf

<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->The Heavy Industries Ministry is still to go to the Cabinet with the Reconstruction Board proposal to revive sick units and strengthen profit-making PSUs.
<b>It has identified 120 sick PSUs and its estimates show that a staggering Rs 30,000 crore will be needed for their revival.
Although the amount has to be culled from the exchequer over the next four years, the Government is not very clear where this money — it’s nearly half the Defence budget — will come from. </b>
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[Guest]

Keep forgetting to mention this. Few days ago, i talked to a friend who works in GEB (Guj Electricity Board). As I had mentioned earlier GEB privatisation was going fullsteam before the lok sabha elections. After the elections that has come to a screeching halt. The target date has been postponed by a year with possibility of even more.

Aam-aadmi jindabad..

[Guest]

Economic growth to dip a tad to 6.6% in 2004<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->The economic think-tank NCAER on Thursday revised downward marginally India's economic growth to 6.62 per cent due to deceleration in farm output this year even as fiscal deficit was slated to shrink to 4.52 per cent<!--QuoteEnd--><!--QuoteEEnd-->

[Guest]

It used to be 4% during NDA rule.
<b>Inflation skids to 7.10 % </b>
New Delhi
Inflation fell for the fourth consecutive week ended October nine marginally by 0.1 per cent to 7.10 per cent, mainly due to falling prices of mass consumption primary articles and manufactured items.

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<b>UPA renames PM-BJP to NHDP-III </b> <!--emo&:flush--><img src='style_emoticons/<#EMO_DIR#>/Flush.gif' border='0' style='vertical-align:middle' alt='Flush.gif' /><!--endemo-->

New Delhi
The UPA-Government has renamed the previous NDA-regime's <b>Pradhan Mantri Bharat Jodo Pariyojana </b>or PM-BJP as <b>National Highway Development Project Phase-III</b>, targeting its completion in the XIth Five Year Plan. Phase-III would comprise stretches of national highways carrying high volumes of traffic, connecting state capitals with the NHDP Phase-I and II networks and providing connectivity to places of economic, tourist and commercial importance.

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India: Commies vs. Capitalists

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PM a hostage to the Commies

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<b>India's economy slows in July-Sept quarter</b>

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BHEL issue in cold storage: Cong
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->The Congress has made it clear that the issue of 10 percent disinvestment of the Bharat Heavy Electricals Limited has been <b>put in cold storage due to a lack of consensus on the issue between it and the Left parties</b>.

Addressing a news conference in New Delhi, Jairam Ramesh, spokesperson for the Congress, claimed that though the government of India had taken major steps to give more autonomy to the public sector companies and revive the sick public sector companies, the BHEL issue had become the central issue.
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India to import wheat for first time in six years

<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->The United States has estimated that India would import about one million tonne of wheat for the first time in six years because of low stocks, Minister of State for Commerce and Industry EVKS Elangovan said on Wednesday.<!--QuoteEnd--><!--QuoteEEnd-->

[Guest]

<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>*India** toys with wheat imports as stocks dwindle*</b>
AFP, NEW DELHI

Oct 10, 2005: India, a wheat exporter in recent years, could require
imports for the first time in six ears amid falling stocks of the grain and
a firming up of prices, traders and analysts said yesterday.

The likelihood of having to import wheat appeared to be growing, though the
government might monitor the stocks position for some time before taking a
decision, they said.

The government has so far maintained that wheat and rice stocks were
comfortable and rejected predictions that the country could turn to imports
for the first time since 1999. Farm Minister Sharad Pawar reiterated that
position on Friday.

The farm ministry has pegged 2005 wheat production at 72.1 million tonnes,
close to the output a year ago. The next crop will be planted in November
and harvested after mid-March.

Analysts said a prolonged delay in a decision on imports could lead to a
flaring up of prices. India levies a 60 percent customs duty on wheat,
making it unviable for private traders to import, and the industry has been
speculating that the government might ease the tariffs.

The Food Ministry said as of Sept. 1, India had 11.3 million tonnes of
wheat and 7.07 million tonnes of rice. Indians tend to consume about
1.5million tonnes of wheat a month but consumption increases in the
north in the winter months, beginning November.

Food Ministry officials say the government has already started replacing
wheat with rice to meet food-for-work programmes in southern and eastern
India, were more rice is consumed.

"The government will take a call on imports after mid- November, depending
on the area under wheat plantings, soil moisture and prevailing wheat
prices," said G. Chandrasekhar, a Bombay-based commodities analyst.

Traders said wheat prices had climbed by about 10 percent in the last year
but could rise faster as stocks are depleted.

Wheat futures are now about 800 to 810 rupees per 100 kg at the country's
major exchanges.

http://independent-bangladesh.com/news/oct...02005bs.htm#A25

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<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Say no to Left </b>
The Pioneer Edit Desk
If in the past it was fashionable to snigger at the Left for coming up with the most absurd suggestions that fly in the face of good economics and practical politics, it is no longer so. The time has come to sound the alarm. The latest "alternative" model being crafted by the Left, whose authors are the leading commissars of the CPI(M), for the UPA Government to mobilise resources is bound to run the country into irretrievable ruination.

Rather than allow the Government to go ahead with limited divestment of shares in profit-making public sector units, which is perfectly in keeping with the provisions of the Common Minimum Programme and makes eminent sense, for raising additional resources to fund programmes, the Left wants new taxes to be introduced. If the Left were to have its way, we would have to pay taxes to enter shopping malls, eat out, buy a watch and anything else that comes under the definition of 'conspicuous spending'.

Instead of entering a new tax regime that ensures voluntary compliance and better collection, India would go back in time to an era when people were scared to earn money because they would have to hand over their income to Government. Mrs Indira Gandhi tried to do what the Left is now pushing for and came a cropper, facilitating the creation of a grotesque black economy and killing both enterprise and growth.

The impact of calibrated reduction of taxes through staggered reforms after liberalisation of the Indian economy is there for all to see: The corporate sector is performing better, there has been phenomenal growth of personal income and wealth creation is no longer a distant dream for most Indians. Simultaneously, there has been tremendous improvement in tax compliance.

That India could perform so well and emerge as an economic powerhouse, posing a serious challenge to China, has understandably upset our Leftists who would rather see this country wallow in poverty. Their vision of 'workers paradise' is one where everybody is impoverished barring the state and its chosen few. They hate to see millions of individuals prosper and acquire wealth through hard work. They are stupefied by the power of information technology and the communication revolution.

They are unhappy to see a visible improvement in the quality of life in our cities and villages. In brief, they are worried that India could soon rid itself of its unhappy Socialist past and become an Asian power. Hence, the Leftists are itching to spoil it all. Nothing else explains why they should exert to pull the country back and spike its growth potential. It would, however, be unfair to blame the Left alone. The UPA Government, for reasons that remain unknown, continues to concede ground to the Left and accept its ideological perversity as policy.

The Prime Minister, who waxes eloquent about his Government's commitment to rapid liberalisation and globalisation of the economy whenever he addresses a foreign audience, tamely accepts the Left's poisonous prescription. The UPA is accountable to the people; the Left is not.

Hence, the Government cannot continue to capitulate before the Left's political blackmail. If the Prime Minister means what he says, then he should take a stand and tell the Left where it gets off. If this leads to a breach between the Government and its Leftist allies, so be it. India's future is far too important to be sacrificed on the altar of political expediency.
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[Guest]

posted by Suraj on BR. worth a read.

http://www.business-standard.com/common/st...ct=0&leftindx=5

[Guest]

<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>India Inc gives poor rating to UPA Govt </b>
Pioneer News Service | New Delhi
The frown on the brows of Prime Minister Manmohan Singh could get deeper.

After the concerns over aam admi sensitivities over price rise of essential commodities, corporate India has given poor rating to the UPA Government.

Federation of Indian Chambers of Commerce and Industry (FICCI) in its quarterly survey released on Thursday said corporate India's business confidence is waning.

Inflation due to rising fuel price and hike in interest rates "have dented the overall business confidence," the survey said. The Business Confidence Survey rings warning bells as high oil prices and hardening of domestic interest rates squeeze profit margins and investments plans come under pressure, the survey said. Corporate India is clearly concerned about its near-term performance. Corporate India's business confidence, which rode high in the four successive quarters of the fiscal 2005-06, is waning.

All the three confidence indices computed by FICCI in the current survey have dropped in comparison to the last round.

While the Current Conditions Index and the Overall Business Confidence Index have been relegated to the 'moderately optimistic' zone, the Expectations Index continues to remain in the 'significantly optimistic' zone.

The results of the present round of FICCI Business Confidence Survey, conducted during the month of July-August 2006, show that there has been a strong moderation in the views of the Indian industry with regard to economy, industry and firm level performance. The small and medium enterprises are worst hit as the cost of borrowing goes up, the survey reveals.

<b>For the third quarter in a row, 70 per cent of the companies have reported rising cost of raw materials as a constraining factor. Rising fuel prices have further limited the operational manoeuvrability of the companies</b>.

Further, <b>with the majority 57 per cent reporting no likely change in selling prices in the next six months, profit margins have come under increasing pressure. Fewer companies have reported higher selling prices this quarter and more have reported lower profits. Nearly 20 per cent of the firms reported lower profitability in the past six months. </b>

<b>Added to this, cost of credit has increased with the hike in interest rates leading to 36 per cent of the companies reporting high cost of credit as a constraining factor to their business performance.</b>

Recent rounds of FICCI's Business Confidence Surveys identified rising input prices as a key constraint for Corporate India. Further, rising fuel prices due to political uncertainties in West Asia accentuated supply side pressures.

Inflationary pressures were persistent globally and economies such as the EU and US reacted by tightening interest rates - a measure that would impact global growth in the current year. Above all, the July-end increase in interest rates in India, have combined to create anxiety about the future.
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