Economy and Business  

Commerce ministry pegs export 
growth target at 17 per cent

What is India News Service, 03 July 2004, 1700 hrs

The net investment of foreign institutional investors (FIIs) fell in the Indian stock market. The commerce ministry has fixed the export growth target for the current year at 16 per cent. The government brought relief to the crisis-ridden coffee growing industry by postponing interest payment on its special coffee term loan. IBM India broke tradition and appointed an outsider as managing director.


The net investment of FIIs fell in the Indian stock market by Rs 285 crore in June 2004. This is attributed to their withdrawal of investments from the debt portfolio. In June while their investments in equity went up by Rs 505 crore, their exposure in debt instruments fell by Rs 790 crore.

The commerce ministry has fixed the export growth target for the current year at 16 per cent. This is in response to the export boom of over 17 percent in the last two fiscals and the 24.8 per cent expansion in he first two months this fiscal. The 16 per cent target reflects India's new found "export optimism", officials said. They said it was also a part of their strategy to increase exports to 150 billion in five years', from the last fiscal's Rs 60 billion.

The government brought relief to the crisis-ridden coffee growing Industry by postponing interest payment on the special coffee term loan (SCTL). There is also a possibility of the government exempting small growers from the purview of section 7B of the Income Tax rules, which states that 25 per cent of the income from the sales of coffee grown and cured by growers will be computed as derived from business and therefore taxed according to central income tax rates.

IBM India has broken convention to appoint a non-IBM professional to head its operations in the country. It has appointed Shaker Annaswamy as managing director. Annaswamy comes from GE Medical Systems (GEMS) where he served as president. He was CEO for GEMS South Asia and also managing director of Wipro-GEMS.

Overall:

Foreign Institutional Investments fell: FIIs have been withdrawing from their debt portfolio.

Government fixed export growth rate: The commerce ministry has fixed the target for the current year at 16 per cent.

Coffee interest payments postponed: The government deferred collection of interest on the special coffee term loan (SCTL).

IBM India appointed outsider MD: It has broken convention to appoint a non-IBM professional to head operations in the country.