INDIA INTELLIGENCE REPORT
 

News Analysis - Economy

 

 

Economy

  • 1. Germany, Singapore Take Stake in BSE (March 13, 2007)
    Deutsche Börse and Singapore Exchange Ltd. (SGX) have negotiated minor stakes in Bombay Stock Exchange Ltd. (BSE) that is seen as positioning the nation better in a global-economy.<More>

  • 2. Is the Economic Growth Sustainable? (February 07, 2007)
    If economic reforms keep pace, in the next several years, the Indian economy is expected to pass Italy, France, and the UK and become the fifth largest in the world spurred by more efficient industries competing with the global system.<More>

  • 3. RBI Squeezes Money Supply (February 06, 2007)
    The Reserve Bank of India (RBI) hiked the Repo Rate to control money supply making loans more expensive and also limiting risky credit exposure in sensitive areas-this key rate is the rate at which banks lend against government bonds.<More>

  • 4. India Bullish on Growth (January 23, 2007)
    A recent survey of 200 business houses found that business confidence index for October 2006-March 2007 was higher by 2.5 points at 71.8 from the previous 6 months and 85% of the respondents revealed plans for increased investments.<More>

  • 5. Economic Outlook for 2006-2007 (January 16, 2007)
    Prime Minister Manmohan Singh’s high-powered economic advisory council (EAC) presented their economic outlook projecting current account deficit (CAD) of 1.5%, foreign direct investment inflow of USD 9 billion, and reserve buildup of USD 22.6 billion.<More>

  • 6. Sustainable 9% GDP Growth (December 21, 2006)
    Led by strong manufacturing growth, the economy grew at a robust 9.1% in the first half of fiscal year with exports clocking 34.9% prompting the government to claim that the growth pattern “reflected the ability of Indian manufacturers to meet international standards.”<More>

  • 7. Growth 9%, Deficit Contained (December 01, 2006)
    The economy grew an astounding 9% in the first half of fiscal year (at 9.2% in Q2) due to impressive manufacturing sector performance and despite slowdown in the farm sector, inflation concerns, and ballooning fiscal deficit.<More>

  • 8. Oct Exports Down (November 30, 2006)
    Indian export growth which have been growing at breakneck speed in the first half of fiscal year, decelerated to 18.51% valued at USD 9.6 billion (from USD 8.1 billion last year) raising fears that overall cumulative growth for the year may be impacted.<More>

  • 9. India Offers ICT to Brunei (November 22, 2006)
    India told a visiting delegation from Burnei Darussalam that it is prepared to shared its expertise Information Communication Technology (ICT) to further that nation’s plans in e-governance, IT education, IT parks, and cyber security to protect critical infrastructure.<More>

  • 10. Manufacturing, Agri, Power Key to GDP Growth (November 09, 2006)
    While the Gross Domestic Product (GDP) growth in Tenth Financial Plan ending March 2007 is the highest growth ever achieved in a 5 year period, the rate of growth is expected to be lower than the projected 8% at 7.2% because of slowdown in manufacturing sector.<More>

  • 11. 10% Growth Can Remove Poverty (October 30, 2006)
    Prime Minister Manmohan Singh said he hoped that the Indian economy will grow at 10% in the “near future" and that this “rapid growth” will in “10 to 20 years” will “remove the ancient scourge of poverty, illiteracy, and unemployment.”<More>

  • 12. Y-on-Y Industrial Growth Higher (October 13, 2006)
    An upsurge in manufacturing took cumulative industrial production from April-August to 10.6 compared to 8.7 last year and August saw a 9.7% rise compared to 7.6% but lower than July’s growth of 12.7% but analysts say that consumer demand has not slacked.<More>

  • 13. India Disagrees with IMF Quotas  (September 19, 2006)
    India, Brazil, Argentina, and Egypt vociferously objected to International Monetary Fund’s (IMF) “quota calculation formula” as it “is opaque and flawed” and “reforms are possible only if” the “final outcome” is defined “followed by genuine consultations.”.<More>

  • 14. Industrial Growth Fastest in Decade (September 18, 2006)
    The Central Statistical Organization announced that the index of industrial production (IIP) showed that industrial production grew the fastest in a decade at 12.4% in July, output in all sectors including manufacturing showed impressive growth.<More>

  • 15. Fiscal, Revenue Deficit Up Dangerously (September 08, 2006)
    The Controller General of Accounts (CAG) revealed that India ’s revenue and fiscal deficit within the 1st four months amounted to 92.3% and 58.1% of the budget estimate for the entire fiscal raising questions on the nation’s ability to meet deficit targets.<More>

  • 16. S&P Says Asian Banks Have Staying Power (September, 07 2006)
    A recent report from Standard & Poor’s (S&P) Ratings Services said that a financial crisis similar to the one that affected several Asian countries’ currency values and stock markets in 1997 is unlikely and that the banking system is “in a better position.<More>

  • 17. 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>

  • 18. 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>

  • 19. India is 3rd Largest Investor in UK (July 07, 2006)
    British High Commissioner to India Michael Arthur said “With Indian businesses investing £1.02 billion into the UK, India now ranks as the third largest foreign investor in the UK globally, and the second largest from the Asia-Pacific region.”<More>

  • 20. Govt to Maintain Borrowing Levels (June 30, 2006)
    Federal Finance Minister P. Chidambaram has said that the overall size of borrowing for the current fiscal year will remain at Rs. 152,856 (USD 33 billion).<More>

  • 21. CII Predicts Slower GDP Growth (June 26, 2006)
    The Confederation of Indian Industry (CII) predicted slower Gross Domestic Product (GDP) growth in the current year bucking last year’s 8.4% growth propped up by 3.9% growth in Agriculture but insisted that growth will remain impressive at the 8% level.<More>

  • 22. Business confidence index up 8%, says CII  (June 22, 2006)
    Belying stock market reverses, a Confederation of Indian Industry (CII) outlook survey says that compared to six months ago, significant increase in business confidence has hiked growth expectations for the current financial year by over 8%.<More>

  • 23. India, China Still Favorite Investment Destinations (June 22, 2006)
    A poll of 400 expatriate investors suggested that waning fears of corporate governance in China and fewer investment hurdles in India make these countries their most favored investment destinations.<More>

  • 24. Govt Revenues up (June 21, 2006)
    India’s customs collections during the 1st two months of current financial year have grown by 30% to Rs. 12,633 crores (USD 2.7 billion) and this revenue has been attributed to an increase in non-oil imports or 16% of annual target of Rs. 77,066 crores.<More>

  • 25. Exports Up, So is Deficit (June 20, 2006)
    According to the provisional trade data released by the commerce ministry, India’s merchandise export in May was 35.31% higher than previous year’s even as imports increased by 27.04%.<More>

  • 26. Bringing Economic Focus to Indo-Japan Ties (June 19, 2006)
    With Indo-Japan relations not growing at the right pace, both countries have signed an accord that will “meet the needs of Japanese investors” and “address India’s needs” to ensure “strategic importance of both countries” are met.<More>

  • 27. Higher Savings Needed for Higher Economic Growth (June 16, 2006)
    The Planning Commission has warned that the present savings rate of 28-29% could merely ensure a GDP growth rate of about 7.5 per cent and higher savings and foreign direct investment (FDI) is necessary to get a growth of 8-9% in the 11th financial plan.<More>

  • 28. Indo-Japan Plan CECA by year-end (June 15, 2006)
    India said that it anticipates a Comprehensive Economic Cooperation Agreement (CECA) to expand trade with Japan and enhance bilateral cooperation in pharmaceutical and manufacturing to ensure doubling bilateral trade to $10 billion in three years.<More>

  • 29. India Gets Largest Remittance (June 14, 2006)
    A JP Morgan study says that India gets the most inward remittance from its Diaspora world over estimates it to be around USD 21 billion (an increase of 150% since 1995).<More>

  • 30. Economic Census Says Rural Sectors Growing Faster (June 13, 2006)
    In the first sign that economic reforms are working, the “Economic Census 2005” has shown that 61.3% of rural enterprises to be growing faster than their urban peers and a lot of fast-paced development is happening in the neglected North-East.<More>

  • 31. Indian Corp Raises USD 17B in Debt (June 12, 2006)
    Indian companies topped all expectations to raise USD 17.13 billion last year in debt and capital market issues including USD 5.21 billion through foreign currency convertible bonds (FCCB).<More>

  • 32. Indian Outward Investment Growth to EU is more (June 12, 2006)
    Indian investments to the European Union (EU) have grown from €25 million in 1999 to €598 million in 2003 while EU investments in India have remained stagnant at €800 million since 1999.<More>

  • 33. India is 4th Attractive Investment Destination (June 08, 2006)
    A global survey has ranked India as the 4th most attractive investment country and while it showed a diminishing interest in call centers in India without suggesting reasons for the decline, it was still the most preferred location for call centre and back office activities..<More>

  • 34. Strong Interest from Foreign Funds (June 06, 2006)
    Encouraged by the great economic promise, improved relations with the West, and tremendous strides in industry, major foreign funds disclosed plans to enter the Indian mutual fund industry.<More>

  • 35. Out of Control Revenue Deficit (June 02, 2006)
    In worrying signs for the economy, the latest revenue expenditure statement released by the Government, revenue deficit ballooned in April and was 21.5% of the estimated deficit in the budget compared to 18.8% last year.<More>

  • 36. GDP Performs Above Expectation (June 01, 2006)
    Better Agriculture, Manufacturing, and Services sector performance saw the Gross Domestic Product (GDP) going up to 8.4% compared to 7.5% the previous year; the stock market actually collapsed despite the good news citing global concerns.<More>

  • 37. US Wants More Economic Reforms (April 28, 2006)
    US Treasury Under Secretary Timothy Adams said that more economic structural reforms are necessary for billions of dollars to flood the India and create unprecedented opportunities for the nation. <More>

  • 38. FII Exposure valued at USD 80 billion (April 24, 2006)
    With an estimated 8% Gross Domestic Product (GDP) growth rate, India continues to attract Foreign Institutional Investors (FII) whose numbers have grown from 685 to 898 in a year and valued at USD 80 billion driven up by the 180 A-group companies. <More>

  • 39. Indian Exports crosses USD 100 billion  (April 12, 2006)
    As reported , Indian exports crossed the psychological threshold of USD 100 billion and while trade deficit remains at USD 39 billion most of that is because of oil imports resulting in a non-oil net trade surplus.<More>

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