Business & Economy

Outlook stable: India's  currency rating up

What is India News Service, Thursday, 3 February 2005, 1800 hrs IST

Standard & Poor's (S&P), a leading international rating agency, on Wednesday raised India's foreign currency rating by one notch. This reflects India's improved external position and growth prospects. It also stated that the outlook for the country is stable. 

India moved up from the sovereign rating grade of `BB' to `BB+'. However, the upgrade keeps India one notch below the investment grade. 

"India's external balance sheet has strengthened markedly due to reserve accumulation and prudent debt management, which should lower the external liquidity risk from its fiscal vulnerability.

"The strong growth in export earnings, particularly from the service and manufacturing sectors, as well as non-debt foreign capital inflows should alleviate the impact of rising imports. India's external debt and debt service burden is expected to fall in the years ahead. Total external debt is likely to fall below 90 per cent of the current account receipts for the current fiscal year ending March 31, 2005, compared with over 200 per cent in the fiscal 1993. The net public external asset position is projected to increase to over 50 per cent of current account receipts by 2005, up from almost 20 per cent in 2002," it stated.

Telecom FDI hike may create stronger players: The telecom industry on Wednesday said that the decision to increase the foreign direct investment (FDI) cap would result in the emergence of stronger players, which will help the industry achieve its teledensity targets.

New FDI norms to take care of security aspects: The foreign direct investment (FDI) in the telecom sector to the extent of 74 per cent can come in directly or indirectly into the operating company or through a holding company so that the remaining 26 per cent equity stake.

Sensex tops 6,600, foreign inflows rise: The 30-share Bombay Stock Exchange index topped 6,600 points for the first time since Jan 5 on Thursday, as foreign investment inflows picked up after slowing for most of January.

Left restores EPF rate: Bowing to the wishes of the Left parties in an apparent trade off for FDI hike in telecom, the union government, following a high-level meeting chaired by Prime Minister Manmohan Singh on Wednesday night, restored the interest rate on EPF to 9.5 per cent for the year 2004-05. An interim measure had earlier slashed the interest rate to 8.5 per cent. The decision will benefit four crore subscribers.
 
Nasscom sees 25 p.c. growth in software sector: The domestic software market is expected to grow at an all-time high of about 25 per cent in the current financial year, according to the National Association of Software and Service Companies (Nasscom).

Finance panel report accepted: The Government has accepted "in toto" the 12th Finance Commission recommendations on sharing of tax revenue between the Centre and the states during 2005-2010, Finance Minister P Chidambaram said after a Cabinet meeting.
 
Concrete gains for ACC: Swiss giant Holcim's acquisition of ACC is a win-win deal for Gujarat Ambuja.
 
Bill for airport regulator soon: The Government proposes to table a bill in the Budget session for creation of an Airport Economic Regulatory Authority (AERA), Civil Aviation Secretary Ajay Prasad said on Wednesday. 

Rupee at 5-year peak: Buoyed by the upgradation of India's foreign currency rating by Standard & Poor's, the rupee today surged to an over five-year closing peak of 43.40/42.

Sensex drops 22 points in scrip-specific activity: Equities once again witnessed erratic movements after a firm start and the Sensex ended down by 22 points in scrip-specific activity despite the hike in foreign direct investment cap in telecom sector to 74 per cent.

States to get 30 pc share in Central taxes: State governments would be entitled to a 30.5 per cent share of the proceeds from all Central taxes and
duties with effect from the coming fiscal. 

Lodha seeks contempt proceedings against Birlas: Rajendra Lodha, claimant to the Rs. 5,000 crore assets of M. P. Birla group, today sought
initiation of suo motu contempt proceedings against the Birlas for allegedly trying to disrupt the proceedings of the probate matter.

NRL launches new-look petro retail outlet: Straining to look out of your car window to ensure that the petrol pump attendant is filling up right can
sometimes produce a crick in your neck. But not anymore if, that is, you are at Numaligarh Refinery Ltd (NRL) station.

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