Economic Growth Promising, SEZ Model Questioned (September, 05 2006)
In a positive sign, the Reserve Bank of India (RBI) said that “growth momentum of recent years is likely to continue during the year” but cautioned on the Special Economic Zones (SEZ) as a model for developing industries and generating jobs.<More> S

Israeli Drip Irrigation Technology (September, 05 2006)
Karnataka’s horticulture department is planning to adopt Israeli drip irrigation technology (DIS) to service 124 drought-prone areas in the state and is commissioning a pilot project in 10 taluks spanning 8 districts at a cost of Rs.5 crore (USD 1.08 million).<More>

Security Concerns Bar Chinese Investment (August 31, 2006)
After a year of internal discussions, India intelligence agencies rightly barred Chinese investments in ports and handling thus rejecting 14 port construction and management projects valued at Rs. 61,000 crore (USD 13.26 billion) citing security threats.<More>

India, EU Exploring CECA (August 30, 2006)
India and the EU have set up a high level group to study possibilities of a Comprehensive Economic Cooperation Agreement (CECA) that would cover trade in goods, services, and investments and submit a proposal during the Helsinki summit in October.  <More>

TN to Also Get a Mega Power Plant (August 30, 2006)
The Federal Minister for Power Sushil Kumar Shinde revealed that he has in concept agreed to grant one mega power project capable of producing 4000 megawatt (MW) to Tamil Nadu (TN) in addition to the other 7 states.<More>

No Ore Exports Say CMs (August 28, 2006)
The Chief Ministers (CMs) of Karnataka, Chhattisgarh, and West Bengal (WB), have written to Prime Minister Manmohan Singh opposing proposals to liberalize iron ore exports warning disastrous effects on the fast growing Steel industry.  <More>

Grid Synchronized with Power from Bhutan (August 28, 2006)
Power Grid Corporation of India Ltd (PGIL) announced that it has successfully synchronized the north, east, north-east, and western grids to allow free flow of electricity across one of the largest power grids in the world including carrying power from Bhutan. <More>

Corp Expansion despite Stalled Reforms (August 24, 2006)
Despite a stalled disinvestment process and halt to reforms, several positive factors in the Indian economy, perhaps not to the optimal level, have emerged encouraging targeted overseas mergers and acquisitions (M&A) by many Indian companies. <More>

ONGC Unveils Massive Investments (August 24, 2006)
To fund expected growth, Oil and Natural Gas Corporation (ONGC) unveiled plans to invest Rs. 130,000 crore (USD 28.2 billion) from 2007-2012 in oil and gas exploration, overseas acquisition of captive resource assets, and expansion of infrastructure. <More>

Japan Investment Bank Opens India Operations (August 23, 2006)
Japan’s leading global investment bank Daiwa Securities SMBC has started operations in India to market various investment banking products for prospective Indian investors and also as a vehicle for Indian companies to seek funding from Japan. <More>

No End to Wheat Shortages (August 22, 2006)
Delays in arrival of 3.5 million tons (mt) of imported wheat for the public distribution system in South India and the lack of traction from importers to import wheat at discounted 5% customs duty is resulting in higher prices in the open market. <More>

Govt Plans to Sell Residual Maruti Interest (August 22, 2006)
Faced with increasingly recalcitrant and belligerent opposition from communist allies to disinvestment plans, the Government is apparently proposing to sell all its residual 10.24% stake in Maruti Udyog Limited (MUL) to net Rs. 2500 crore (USD 543 million). <More>

Subsidy Cuts on the Cards (August 17, 2006)
Facing unending global fuel price increases and increasingly exposed to global economy, Prime Minister Manmohan Singh reminded the nation that Government cannot on indefinitely subsidize consumption as there were limits to budgets. <More>

Palm Oil Duty Cut (August 14, 2006)
Citing desire to control prices of palm oil, the Federal Government announced that it will cut customs duty on both crude and refined palms oil and plamolein by 10% to 70% that is estimated to cost the nation Rs. 650 crore (USD 141 million). <More>

China Trade Surplus Dismays Many (August 14, 2006)
Despite measures to arrest exports, trade outflows from China once again exceeded expectations at 40.6% above the previous month and net USD 14.6 billion with exports up 22.6% or USD 80.3 billion and imports up 19.7% at USD 65.7 billion. <More>

India May Face US Ire on WTO Failure (August 10, 2006)
In response to the collapse of World Trade Organization (WTO), US Trade Representative Susan Schwab hinted that her country may end a 32-year old program of trade benefits for 13 nations, including India, as retribution for hard-nosed negotiations. <More>

Forbes Calls “India is next Great Bull Market” (August 09, 2006)
Confirming other expert opinion, Forbes magazine says that “India has strong potential to be the next great bull market of the 21st century” clearly outpacing China as a better investment opportunity. <More>

SAIL to Invest in WB (August 09, 2006)
Government-owned Steel Authority of India ltd. (SAIL) reveal plans to invest over Rs. 10,300 cores (USD 2.2 billion) in 2 integrated steel plants in West Bengal for modernization and capacity expansion with recently-merged IISCO getting the most. <More>

Legal Jolt for Disinvestment (August 08, 2006)
Disinvestment in India, frozen for political reasons, may face further shocks with legal opinion that residual equity in public sector utilities (PSU) via a call option violated the rights of the shareholders under section 111 A of the Companies Act. <More>

India-Sino Trade Slows Down (August 08, 2006)
Despite hype by the two Governments, Indo-Sino trade seems to have slowed down to a mere 28% in the 1st half of this year which is only 1/3rd of growth rates seen the last 2 years. <More>

SAARC Concluded Amid Indo-Pak Trade Dispute (August 07, 2006)
India complained bitterly to the commerce ministers governing the South Asian Free Trade Agreement (SAFTA) that Islamabad has failed to implement key provisions of the agreement into force and not granting tariff reductions to its exports. <More>

Better than Estimated Tea Output (August 03, 2006)
According to the Tea Association, production in the first half of the year increased by about 11% beating earlier estimates of a loss of 20 million kilograms (mkgs) even as Kenya reported a decline of output due to drought by 19%. <More>

India to Export Sugar (August 02, 2006)
Expecting a large increase in sugar production, Minister for Agriculture Sharad Pawar told the Parliament that the Government is considering allowing its export but said that a review is required in October based on actual output.<More>

Fiscal Deficit Worsens (August 01, 2006)
Runaway unplanned expenditure far exceeding receipts has increased fiscal deficit to over 50% at Rs 77,740 crores (USD 16.9 billion) more than budget estimates of Rs. 148,686 crores (USD 32.3 billion) in the very first quarter. <More >

India Corporate Says No to Quota (July 31, 2006)
Senior members of the Indian industry met Prime Minister Manmohan Singh and conveyed their opposition to legislated cased-based quota regime but promised that will fund training programs, introduce ethical hiring codes, and adopt alternative solutions.<More>

ASEAN Suspends FTA (July 28, 2006)
Malaysia’s Trade Minister was quoted saying that the Association of Southeast Asian Nations (ASEAN) has suspended free-trade talks with India because New Delhi is demanding that 850 goods it imports from South East Asia to be excluded from the list.<More>

Growth Pace to Continue (July 28, 2006)
The Reserve Bank of India (RBI) reaffirmed growth forecast of 7.5%-8% citing strong corporate sector growth, continued investment inflow, strong orders, high capacity utilization, good export growth, stabilized inflation, and sufficient liquidity of banks.<More>

India to Raise Pak Trade Curbs at SAARC (July 28, 2006)
Commerce and Industry Minister Kamal Nath told the Parliament that he will raise the issue of import restrictions by Pakistan at the South Asian Association for Regional Cooperation (SAARC) summit early next month in Dhaka.<More>

WTO Stalled, Will Take Months to Revive (July 27, 2006)
Global talks on trade under the World Trade Organization (WTO) collapsed with developing nations led by India blaming the developed nations led by the US for intransigence in cutting back farm-subsidies in violation of the Honk Kong Agreement.<More>

No Implementation of Groundwater Bill (July 26, 2006)
Federal Water Resources Minister Saifuddin Soz announced a convention of Chief Ministers to coax adoption of a measures including making rainwater harvesting mandatory and stronger regulation of this dwindling resource.<More>

Iran Gas Deal is “Difficult” (July 26, 2006)
India’s grand plans to source gas from Iran to meet its energy needs has been shattered with Iran’s Foreign Minister Manouchehr Mottaki saying there were “difficulties” in honoring the USD 22 billion contract to see Liquefied Natural Gas (LNG).<More>

Wheat Import Shows Falling Agri Self-Sufficiency (July 25, 2006)
The import of wheat after 6 years has raised serious doubts about the processes in place to achieve the key goal of food self-sufficiency and a preeminent think tank has called for a revamp of agriculture products procurement, storing, and public distribution processes. <More>

Panel Recommends Revamp of Venture Fund Regulations (July 24, 2006)
A Planning Commission sub-Committee has suggested a slew of fiscal incentives to encourage more domestic venture capital funds (VCF) and has included a proposal to set up an Early Stage Venture Fund (ESVF) through public-private partnership. <More>

Increased Food grain Output Likely (July 24, 2006)
The Federal Agriculture Ministry (AM) said that food grain production is expected to be 5.01% higher at 208.3 million tons (mt) in 2005-2006 versus 198.36 mt a year ago because of better output from rice and oilseeds but wheat production is only marginally higher. <More>

Inadequate Response to NMCC Recommendations (July 24, 2006)
National Manufacturing Competitiveness Council (NMCC) has recommended that a new National Manufacturing Initiative to further 20 key labor-intensive sectors that net USD 10 billion from domestic markets alone to facilitate a quantum jump in the near future. <More>

Pawar Says There is No Wheat Problem (July 20, 2006)
Sending more confusing signals to the people, vendors, and analysts, Food and Agriculture Minister Sharad Pawar said that there was no possibility of a steep price in wheat as prices “are now stable” and that there is “no problem of stock availability.” <More>

India Flexible on Industry not Agriculture at WTO (July 18, 2006)
Iran rejected India’s demand for international long-term contracts gas price parity insisting that it will sell for at least USD 7.2 per British thermal unit (mbtu) price while the international long-term gas price is USD 4.2 mbtu for the Iran-Pakistan-India pipeline.<More>

India will see Iron Ore Shortage in Near Future (July 18, 2006)
A high level committee set up by the Planning Commission has warned that at “the current rate of growth of 20% of iron ore production, India’s Hematite reserves will last for only 25 years” which will cause India’s steel industry its competitive advantage.<More>

Iran Rejects Indian Price Offer for Gas (July 17, 2006)
Iran rejected India’s demand for international long-term contracts gas price parity insisting that it will sell for at least USD 7.2 per British thermal unit (mbtu) price while the international long-term gas price is USD 4.2 mbtu for the Iran-Pakistan-India pipeline.<More>

RTAs to be More Transparent (July 14, 2006)
Countries like India that have been excluded from Regional Trading Agreements (RTAs) for political reasons will benefit from new Negotiating Group on Rules that require transparency mechanisms of World Trade Organization (WTO) be implemented in RTAs.<More>

Govt Clarifications on Farm Sector FDI (July 14, 2006)
The Department of Industrial Policy and Promotion in the Ministry of Commerce and Industry clarified that it will allow 100% foreign direct investment (FDI) under the automatic route for certain activities in the agriculture and plantation sector.<More>

US to review dumping duty on Indian shrimps (July 13, 2006)
Trying to stem growing differences in trade, the US Department of Commerce chose three Indian shrimp exporting companies to review their export statistic and performance to formulate a anti-dumping duty structure for Indian shrimp.<More>

Manufacturing Boosts Industrial Growth to 9.8% (July 13, 2006)
The Central Statistical Organization (CSO) reported that industrial output grew to 9.8% from 9.5% in April-May due to a strong 10.9% growth (from 10.3% last year) in the manufacturing sector but no reasons were provided for the growth. <More>

Need for greater Indo-Japanese economic ties (July 13, 2006)
Speaking at a Confederation of Indian Industry (CII) seminar, Leader of a delegation of Member of the House of Representatives of Japan Hideaki Ohmura said there was an urgent need to for India and Japan to negotiate and bring trade levels to its full potential. <More>