A RBI study says indian private companies will invest Rs. 1.73 trillion in fresh projects in 2008-09 a 30% decline from Rs.2.45 trillion in 2007-08.
The study is in August issue of RBI Bulletin.
Offshore borrowings were at Rs. 33,068 crore in 2007-08 against rs. 51,331 crore in 2006-07
Monday, August 25, 2008
Friday, April 4, 2008
Wholesale Price Index Week Wise India
Wholesale Price Index for the Year : 2008
Name of Commodity : ALL COMMODITIES
Type : Group Item
Weight : 100
Base Year : 1993-94 = 100
From http://eaindustry.nic.in/asp2/list_d.asp?Fcomm_code=1000000000&Fyear1=2007&Fopt_wmy=W
Date ----- Index------Index---increase
----------------------2007 ---%-------
05/01/2008 217.6
12/01/2008 217.8
19/01/2008 218.2
26/01/2008 219
02/02/2008 217.4
09/02/2008 218.1
16/02/2008 218.8
23/02/2008 219.5
01/03/2008 220
08/03/2008 221.8
15/03/2008 223.6
22/03/2008 224.8 ---210.1---7.00
29/03/2008
05/04/2008
12/04/2008
19/04/2008
26/04/2008
03/05/2008
10/05/2008
17/05/2008
24/05/2008
31/05/2008
07/06/2008
14/06/2008
21/06/2008
28/06/2008
05/07/2008
12/07/2008
19/07/2008
26/07/2008
02/08/2008
09/08/2008
16/08/2008
23/08/2008
30/08/2008
06/09/2008
13/09/2008
20/09/2008
27/09/2008
04/10/2008
11/10/2008
18/10/2008
25/10/2008
01/11/2008
08/11/2008
15/11/2008
22/11/2008
29/11/2008
06/12/2008
13/12/2008
20/12/2008
27/12/2008
06/01/2007 208.7
13/01/2007 208.7
20/01/2007 208.9
27/01/2007 209
03/02/2007 208.9
10/02/2007 209
17/02/2007 208.6
24/02/2007 209
03/03/2007 209.3
10/03/2007 209.4
17/03/2007 209.6
24/03/2007 210.1
31/03/2007 210.4
07/04/2007 211.5
14/04/2007 211.4
21/04/2007 211.5
28/04/2007 211.6
05/05/2007 212
12/05/2007 212.4
19/05/2007 212.4
26/05/2007 212.3
02/06/2007 212.5
09/06/2007 211.8
16/06/2007 211.9
23/06/2007 212.4
30/06/2007 212.8
07/07/2007 213.3
14/07/2007 213.6
21/07/2007 213.7
28/07/2007 213.9
04/08/2007 213.8
11/08/2007 213.7
18/08/2007 213.7
25/08/2007 213.9
01/09/2007 214.8
08/09/2007 215
15/09/2007 215
22/09/2007 215.2
29/09/2007 215.3
06/10/2007 215
13/10/2007 215
20/10/2007 215.3
27/10/2007 215.4
03/11/2007 216.1
10/11/2007 215.8
17/11/2007 216
24/11/2007 215.6
01/12/2007 216.3
08/12/2007 216.3
15/12/2007 216.4
22/12/2007 216.4
29/12/2007 216.7
Name of Commodity : ALL COMMODITIES
Type : Group Item
Weight : 100
Base Year : 1993-94 = 100
From http://eaindustry.nic.in/asp2/list_d.asp?Fcomm_code=1000000000&Fyear1=2007&Fopt_wmy=W
Date ----- Index------Index---increase
----------------------2007 ---%-------
05/01/2008 217.6
12/01/2008 217.8
19/01/2008 218.2
26/01/2008 219
02/02/2008 217.4
09/02/2008 218.1
16/02/2008 218.8
23/02/2008 219.5
01/03/2008 220
08/03/2008 221.8
15/03/2008 223.6
22/03/2008 224.8 ---210.1---7.00
29/03/2008
05/04/2008
12/04/2008
19/04/2008
26/04/2008
03/05/2008
10/05/2008
17/05/2008
24/05/2008
31/05/2008
07/06/2008
14/06/2008
21/06/2008
28/06/2008
05/07/2008
12/07/2008
19/07/2008
26/07/2008
02/08/2008
09/08/2008
16/08/2008
23/08/2008
30/08/2008
06/09/2008
13/09/2008
20/09/2008
27/09/2008
04/10/2008
11/10/2008
18/10/2008
25/10/2008
01/11/2008
08/11/2008
15/11/2008
22/11/2008
29/11/2008
06/12/2008
13/12/2008
20/12/2008
27/12/2008
06/01/2007 208.7
13/01/2007 208.7
20/01/2007 208.9
27/01/2007 209
03/02/2007 208.9
10/02/2007 209
17/02/2007 208.6
24/02/2007 209
03/03/2007 209.3
10/03/2007 209.4
17/03/2007 209.6
24/03/2007 210.1
31/03/2007 210.4
07/04/2007 211.5
14/04/2007 211.4
21/04/2007 211.5
28/04/2007 211.6
05/05/2007 212
12/05/2007 212.4
19/05/2007 212.4
26/05/2007 212.3
02/06/2007 212.5
09/06/2007 211.8
16/06/2007 211.9
23/06/2007 212.4
30/06/2007 212.8
07/07/2007 213.3
14/07/2007 213.6
21/07/2007 213.7
28/07/2007 213.9
04/08/2007 213.8
11/08/2007 213.7
18/08/2007 213.7
25/08/2007 213.9
01/09/2007 214.8
08/09/2007 215
15/09/2007 215
22/09/2007 215.2
29/09/2007 215.3
06/10/2007 215
13/10/2007 215
20/10/2007 215.3
27/10/2007 215.4
03/11/2007 216.1
10/11/2007 215.8
17/11/2007 216
24/11/2007 215.6
01/12/2007 216.3
08/12/2007 216.3
15/12/2007 216.4
22/12/2007 216.4
29/12/2007 216.7
Friday, March 28, 2008
Inflation rises to 6.68%
Inflation is on a high of 6.68% on 15th March 2008.
It was 5.11% on 1st March and 5.92% on 8th March.
Finance minister announced on the TV that inflation is to be contained and some growth has to be sacrificed in order to do it.
It was 5.11% on 1st March and 5.92% on 8th March.
Finance minister announced on the TV that inflation is to be contained and some growth has to be sacrificed in order to do it.
Monday, March 17, 2008
RBI unlikely to lower rates as inflation soars: India Inc
Sunday, March 16, 2008
RBI unlikely to lower rates as inflation soars: India Inc
Indian businessmen have voiced concern that the Reserve Bank of India (RBI) is unlikely lower interest rates as inflation rate soared to a nine-month high of 5.11 percent.
According to a survey by the Associated Chambers of Commerce and Industry of India (Assocham), though the economy started showing early signs of a possible slowdown, the RBI would abstain from cutting the interest rate.
'The government is confronted with the dilemma of keeping the inflation rate low and prevent further hardening of the interest rates, hence they are left with little elbow room,' said Venugopal N. Dhoot, Assocham president and chairman of Videocon Group.
In the week ending March 1, inflation reached a level of 5.11 percent, compared to 5.02 percent in the previous week, according to the data released by commerce and industry ministry.
This is for the second time that inflation breached the 5 percent benchmark, set by the central bank for 2007-08. The rise has been mainly due to high prices of wheat, rice, pulses and edible oil.
The prices of primary articles have increased by 6.9 percent over the corresponding week of the last month while fuel prices have risen by 5.4 percent as a result of increase in the retail prices of petrol and diesel, Assocham said.
Almost 67 percent of the 130 chief executive officers surveyed indicated that the government's foremost priority should now be to tame the spiralling inflation while keeping an eye in maintaining the growth rate of 9 percent.
Finance Minister P. Chidambaram proposed to reduce the CENVAT rate from 16 to 14 percent and lower excise duties of auto, pharma sectors and some items of mass consumption in the union budget for 2008-09.
Such measures, the survey showed, would do no good in checking the galloping inflation as some of the companies might not even pass the benefit to consumers to maintain their own profit margins.
With major players like the US, Europe and China also fighting intense inflationary pressures, it is extremely difficult for India to insulate itself from such happenings, the chamber said.
'The world over, inflation in the first nine months of current fiscal on account of increase in the petroleum prices has been 17 percent. The pressure on the energy prices is expected to further intensify as the crude oil prices have crossed $110 per barrel mark,' the industry body said.
India's industrial production in the month of January has grown by merely 5.3 percent as compared to 11.6 percent growth in previous year. The growth in manufacturing sector has halved to 5.9 percent in January of this fiscal compared to 12.3 percent growth in same month in 2006-07.
(indiaenews)
www.indiaenews.com
RBI unlikely to lower rates as inflation soars: India Inc
Indian businessmen have voiced concern that the Reserve Bank of India (RBI) is unlikely lower interest rates as inflation rate soared to a nine-month high of 5.11 percent.
According to a survey by the Associated Chambers of Commerce and Industry of India (Assocham), though the economy started showing early signs of a possible slowdown, the RBI would abstain from cutting the interest rate.
'The government is confronted with the dilemma of keeping the inflation rate low and prevent further hardening of the interest rates, hence they are left with little elbow room,' said Venugopal N. Dhoot, Assocham president and chairman of Videocon Group.
In the week ending March 1, inflation reached a level of 5.11 percent, compared to 5.02 percent in the previous week, according to the data released by commerce and industry ministry.
This is for the second time that inflation breached the 5 percent benchmark, set by the central bank for 2007-08. The rise has been mainly due to high prices of wheat, rice, pulses and edible oil.
The prices of primary articles have increased by 6.9 percent over the corresponding week of the last month while fuel prices have risen by 5.4 percent as a result of increase in the retail prices of petrol and diesel, Assocham said.
Almost 67 percent of the 130 chief executive officers surveyed indicated that the government's foremost priority should now be to tame the spiralling inflation while keeping an eye in maintaining the growth rate of 9 percent.
Finance Minister P. Chidambaram proposed to reduce the CENVAT rate from 16 to 14 percent and lower excise duties of auto, pharma sectors and some items of mass consumption in the union budget for 2008-09.
Such measures, the survey showed, would do no good in checking the galloping inflation as some of the companies might not even pass the benefit to consumers to maintain their own profit margins.
With major players like the US, Europe and China also fighting intense inflationary pressures, it is extremely difficult for India to insulate itself from such happenings, the chamber said.
'The world over, inflation in the first nine months of current fiscal on account of increase in the petroleum prices has been 17 percent. The pressure on the energy prices is expected to further intensify as the crude oil prices have crossed $110 per barrel mark,' the industry body said.
India's industrial production in the month of January has grown by merely 5.3 percent as compared to 11.6 percent growth in previous year. The growth in manufacturing sector has halved to 5.9 percent in January of this fiscal compared to 12.3 percent growth in same month in 2006-07.
(indiaenews)
www.indiaenews.com
Sunday, March 2, 2008
Sectoral Impact of Budget
Automobiles
Excise duty on two wheelers and three wheelers was reduced from 16% to 12%. If the benefit is passed on to customers, we may witness a increase in volumes from the current decreased volumes.
Excise rate for small passengers cars and for buses was lowered to 12% from 16%
Impact: positive
Companies: Two wheelers : Bajaj Auto, Hero HOnda, M&M and TVS Motor
Cars and Trucks: Maruti, Tata Motors, Ashok Leyland
Banking
Farm loan writeoff is good for banks if government contributes the entire amount as its share.
Financial conglomerates like Kotak Mahindra bank, ICICI Bank and State Bank get benefits from the provision of set-off of dividend distribution tax paid by subsidiaries toward DDT payable by parent company.
As the disposable income of people increases due to Income tax relief, savings will increase and it is als good for banking.
Overall positive impact
-----------
Cement
The excide duty on bulk cement (non-retail) is now higher of 14% ad-valorem or Rs 400/ton from Rs 400/ton earlier. This could result in higher excise of Rs. 5 to 6 per bag. Bulk cement sales are now 40% of cement sales. Cement producers have to recover this increase first before making any further increase in prices.
Impact negative
-------------
Engineering
Reduced excise duty on goods likely to boost demand.
Customs duty on project imports lowered
Impact positive
--------------
FMCG
Reduction in excise duty from 16% to 14% will help reduce prices by 1%. The reduction in income tax coupled with price decrease due to excise duty will provide a boost in volume growth for the sector.
In the case of cigarettes, due to increase of duty on nonfilter cigarette, consumer may upgrade to filter cigarette.
Reduction of excise duty on refrigeration equipment will encourage cold chain growth and thus help increase sales of processed food companies.
Reduction in excise on water purifiers will purifier companies.
Impact: positive
-----------------
Information Technology
Extension of STP scheme not granted.
On packaged software excise duty is increased from 8% to 12%.
IT education companies may benefit due to higher allocation in the budget for skill development
Impact: Neutral
--------------------
Infrastructure
The budget made allocations to infrastructure development programs
Bharat Nirman - Rs. 313 billion
J Nehru NURM - Rs. 69 billion
Acclerated irrigation benefit program Rs.200 billion
Rural infrastructure development fund Rs.140 billion
Continued thrust on infrastructure spending is good news.
Impact positive
------------------------
Media
Ministry and broadcasting has an allocation of Rs.1,910 cr (Rs.1,610 cr last year). Government has removed customs duty on specified parts of set top boxes and its components from the current rate of 16%
Expect cheaper set top boxes and growth of direct to home operators
impact positive
------------------------
Oil and Gas
Withdrawal of customs duty on naphtha for petrochem production marginally negative for Reliance
impact neutral
Excise duty on two wheelers and three wheelers was reduced from 16% to 12%. If the benefit is passed on to customers, we may witness a increase in volumes from the current decreased volumes.
Excise rate for small passengers cars and for buses was lowered to 12% from 16%
Impact: positive
Companies: Two wheelers : Bajaj Auto, Hero HOnda, M&M and TVS Motor
Cars and Trucks: Maruti, Tata Motors, Ashok Leyland
Banking
Farm loan writeoff is good for banks if government contributes the entire amount as its share.
Financial conglomerates like Kotak Mahindra bank, ICICI Bank and State Bank get benefits from the provision of set-off of dividend distribution tax paid by subsidiaries toward DDT payable by parent company.
As the disposable income of people increases due to Income tax relief, savings will increase and it is als good for banking.
Overall positive impact
-----------
Cement
The excide duty on bulk cement (non-retail) is now higher of 14% ad-valorem or Rs 400/ton from Rs 400/ton earlier. This could result in higher excise of Rs. 5 to 6 per bag. Bulk cement sales are now 40% of cement sales. Cement producers have to recover this increase first before making any further increase in prices.
Impact negative
-------------
Engineering
Reduced excise duty on goods likely to boost demand.
Customs duty on project imports lowered
Impact positive
--------------
FMCG
Reduction in excise duty from 16% to 14% will help reduce prices by 1%. The reduction in income tax coupled with price decrease due to excise duty will provide a boost in volume growth for the sector.
In the case of cigarettes, due to increase of duty on nonfilter cigarette, consumer may upgrade to filter cigarette.
Reduction of excise duty on refrigeration equipment will encourage cold chain growth and thus help increase sales of processed food companies.
Reduction in excise on water purifiers will purifier companies.
Impact: positive
-----------------
Information Technology
Extension of STP scheme not granted.
On packaged software excise duty is increased from 8% to 12%.
IT education companies may benefit due to higher allocation in the budget for skill development
Impact: Neutral
--------------------
Infrastructure
The budget made allocations to infrastructure development programs
Bharat Nirman - Rs. 313 billion
J Nehru NURM - Rs. 69 billion
Acclerated irrigation benefit program Rs.200 billion
Rural infrastructure development fund Rs.140 billion
Continued thrust on infrastructure spending is good news.
Impact positive
------------------------
Media
Ministry and broadcasting has an allocation of Rs.1,910 cr (Rs.1,610 cr last year). Government has removed customs duty on specified parts of set top boxes and its components from the current rate of 16%
Expect cheaper set top boxes and growth of direct to home operators
impact positive
------------------------
Oil and Gas
Withdrawal of customs duty on naphtha for petrochem production marginally negative for Reliance
impact neutral
Budget 2008-09 Critical Comments by Independent Observers
Budget 2008-09 Critical Comments by Independent Observers/Experts
N. Chandra Mohan
Hindustan Times 1 March 2008, page 20
Missed the woods and trees
A fast growing Indian economy provided a golden opportunity to tackle fiscal challenges decisively. But the opportunity was let off by the FM and the government.
---------------
---------------
Narendra Jadhav
Vice Chancellor of Pune University
HT, 1 March 2008, page 6
The waiver is necessary but not sufficient. If there is no comprehensive package of reforms in the farm sector, then history may repeat itself.
---------------
Means government has not shown imagination in coming out with an integrated plan to provide relief to the needy and provide a framework that would help in improving the economics of agricultural activity.
N. Chandra Mohan
Hindustan Times 1 March 2008, page 20
Missed the woods and trees
A fast growing Indian economy provided a golden opportunity to tackle fiscal challenges decisively. But the opportunity was let off by the FM and the government.
---------------
---------------
Narendra Jadhav
Vice Chancellor of Pune University
HT, 1 March 2008, page 6
The waiver is necessary but not sufficient. If there is no comprehensive package of reforms in the farm sector, then history may repeat itself.
---------------
Means government has not shown imagination in coming out with an integrated plan to provide relief to the needy and provide a framework that would help in improving the economics of agricultural activity.
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