Economy & Business   

Good agro prospects: credit rating agency raises growth estimates  

What is India News Service, July 20, 2004, 1700 hrs IST

The Investment Credit and Rating Agency (ICRA) has marginally raised its growth estimates for India. R S Lodha, beneficiary of the Birla widow's largesse, moved the court to register the controversial will. Finance minister P Chidambaram ruled out the total withdrawal of transaction tax. The sensex index slumped following weakness in old and new economy stocks.

The Investment Credit and Rating Agency (ICRA) has marginally raised its growth estimates for the current fiscal from 6.4 to 6.6 per cent. It said 7 per cent growth during 2004-05 would be an "extraordinary achievement". In the last fiscal 2003-04, the economy recorded a robust growth of 8.2 per cent, mainly on account of a 9.1 per cent increase in agriculture. In making its projections, ICRA has said despite the doubts about the south-west monsoon, the agriculture sector would grow, given the government's initiative in pushing credit for purchase of inputs. 

The controversial will of Priyamvada Birla became a registered document on Monday, following the filing of a petition for grant of probate by Rajendra Singh Lodha. The Birla family announced its decision to contest the grant of probate. The Birla family, in a press statement, said that the family remained committed and united in its resolve to protect and secure the estate of the late M P Birla and Priyamvada Birla for charity.  

The finance minister on Monday ruled out the total withdrawal of the transaction tax on securities. He said the tax would help eliminate tax avoidance. He pointed out that market capitalisation of shares traded amounted to Rs 3,00,000 crore.

After a flat opening, the index slumped to an early low of 4,937 following weakness in old and new economy stocks. While the markets moved in a range-bound mode between 4,640 and 4,960 till late morning trades, the index bounced back into the green in early noon deals on selective buying to touch an intra-day high of 4,982.The sensex, however, soon drifted back before weak trends in tech, auto, select heavyweight and PSUs saw it snap the three-day winning streak with a loss of 17 points at 4,958.


Overall:

Credit rating got better: The Investment and Credit Rating Agency says prospects of the agriculture sector look bright this year.

Will was registered: Lodha got the court's stamp of approval for the controversial Birla will.

Transaction tax will remain: The finance minister ruled out the possibility of withdrawing transaction tax completely, but has indicated he might modify it.