􀂄Finance Minister P. Chidambaram said the government has told India’s 27
state-run banks to let their boards consider changes in interest rates.
(Bloomberg, August 4)
􀂄 Finance Minister Chidambaram said the government does not plan to raise
interest rates on the employee pension plan and small savings plan.
(Bloomberg, August 1)
􀂄 Fitch raised India’s rating by one notch to investment grade BBB- with a
stable outlook, citing better government finances. (Bloomberg, August 1)
􀂄 The government may scrap the 5% import duty on wheat imported by nonstate
companies in an effort to lower domestic prices of the commodity and
inflationary pressures. (Economic Times, August 7)
􀂄 The World Bank’s country director for India said rising interest rates and high
global prices will affect the country’s economic growth very much in the next
few years. (Press Trust of India, July 27)
􀂄 Commerce Minister Kamal Nath said annual exports totaling $15bn will likely
be achieved well before the target date of 2009, increasing India’s share in
global trade to at least 1%. (Press Information Bureau, July 27)
􀂄 The National Council of Applied Economic Research said its quarterly
Business Confidence Index for April-June fell 8% compared to the previous
review to 141 – the lowest since January 2005. (Business Line, July 26)
􀂄 Commerce Minister Kamal Nath said that the India-Asean free trade deal
hasn’t yet been formalized due to differences on goods that India doesn’t
want to import from the Asean nations. (Hindu, August 2)
􀂄 The Electronics and Computer Software Export Promotion Council said
India’s exports of software and information technology-related services rose
32.3% YoY in 1QFY07 to $6.6bn. (Associated Press, August 5)
􀂄 The government’s 11th five-year plan will likely highlight India’s obsolete labor
laws so that this crucial area of reform is addressed during the 2007-2012
plan period. (The Economic Times, July 26)
􀂄 The Committee on Fuller Capital Account Convertibility submitted its report to
the RBI. However, Indian business group, the Associated Chambers of
Commerce and Industry, said restrictions on rupee trading should stay until
the government cuts its budget deficit and more foreign investment flows in.
(Bloomberg, July 31)
􀂄 Prime Minister Manmohan Singh said India’s crude oil imports may rise as
much as four times by 2030 to around 300 to 400 million tons as the
economy’s energy needs accelerate. (Bloomberg, July 26)
􀂄 A joint report by the UN and NCAER said that an HIV/AIDS epidemic in India
will cut nearly one percentage point a year from economic growth over the
next decade as higher health spending eats into investment and workers fall
sick. (Reuters, July 20)