Union Steel Secretary, RS Pandey said "there are proposals under considersations. we have asked them to get back with their proposals"
Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts
Wednesday, April 2, 2008
Govt will cut steel prices within 30 days: Steel Secy
In a bid to contain steel prices, the government has just met with leading iron ore producers in the capital. The rationale is that lower iron ore prices will mean lower steel prices, and thus a control on inflation. But the steel secretary has said there is no proposal to ban iron-ore exports to keep prices in check. There is also no proposal to levy ad valorem duty on exports either. The government will meet primary, secondary steel producers over next two days.
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Sunday, March 30, 2008
Indian economy to slow to 8.1% in 2008-09
India's economic growth is expected to slow more than previously expected in 2008/09, undermined by moderating consumer demand, higher inflation and a swelling trade deficit, a Reuters poll shows.
The quarterly poll projects 2008/09 growth at 8.1 percent, down from a forecast of 8.3 percent in a similar poll in December and below the average growth of 8.75 percent in the last four years.
High interest rate, rising rupee to moderate Indian economy in 2008
India will continue to tread on high growth trajectory in the year 2008, albeit at slower pace with high interest rates and appreciating rupee expected to moderate the pace of economic expansion, leading global financial services information firms say.
The economy would record high growth rates as the service sector, which accounts for more than 50 per cent of the country's GDP, is expected to be robust with double-digit growth rates, besides agricultural output also benefited from good monsoon, Germany-based Allianz Dresdner Economic Research said in its latest report on Economy and Markets.
However, on the other hand, high interest rates affected the industrial production and dampened the manufacturing sector and private consumption expenditure, financial services information provider Dun & Bradstreet says in its study.
The cumulative industrial growth from April-October period was marginally down to 9.7 per cent, from 10.1 per cent during the corresponding period last year.
The 11.8 per cent growth rate in IIP during October this year is attributable to the low base of the previous year, and a reversal of this phenomena is expected for November 2007 March 2008 period, global business information provider Dun & Bradstreet India said.
Dresdner Bank predicts that the overall GDP growth would be of a good 8 per cent for both this year as well as 2008, while as per Dun & Bradstreet India GDP growth, is expected to moderate during second half of FY 08 and average at around 8.7 per cent during the current fiscal.
"Given current elevated interest rates, a strong rupee, widening trade deficits, and the base effect, we expect growth in IIP to moderate and stand at an average of about 9.5 per cent in financial year 2008," D&B India COO Kaushal Sampat said.
Earlier, Finance Minister P Chidambaram had attributed the slower 8.9 per cent economic growth in the second quarter this fiscal, partly to tight monetary stance of the Reserve Bank. But he expected the growth rate to touch close to nine per cent this fiscal.
Economic growth slowed down to 8.9 per cent in the July- September quarter from 10.2 per cent in the corresponding period last year. It was at 9.1t per cent in the first half of this fiscal.
The growth momentum of the Indian economy is expected to continue despite various dampeners because at this moment, as capital is literally flooding the Indian market. Besides the recent 25 bps reduction in the US Fed rate would further lead to strong inflows, Allianz Dresdner Economic Research said in its latest report on Economy and Markets.
Currency reserves ballooned this year by more than 80 billion dollars to 260 billion dollars. In the first ten months, net funds to the tune of over 25-billion dollar foreign portfolio investment and around 10-billion dollar direct investment flowed into India, the bank added.
The influx of funds was also boosted by the higher amounts being borrowed by Indian firms abroad and the rise in deposits at Indian banks of Indians living abroad.
India would continue to attract foreign funds due to high economic growth and buoyant capital markets despite various measures taken by the Reserve Bank to tighten money supply and market regulator SEBI's decision to impose curbs on Participatory Notes, the report said.
A report publish in
economictimes.com
The economy would record high growth rates as the service sector, which accounts for more than 50 per cent of the country's GDP, is expected to be robust with double-digit growth rates, besides agricultural output also benefited from good monsoon, Germany-based Allianz Dresdner Economic Research said in its latest report on Economy and Markets.
However, on the other hand, high interest rates affected the industrial production and dampened the manufacturing sector and private consumption expenditure, financial services information provider Dun & Bradstreet says in its study.
The cumulative industrial growth from April-October period was marginally down to 9.7 per cent, from 10.1 per cent during the corresponding period last year.
The 11.8 per cent growth rate in IIP during October this year is attributable to the low base of the previous year, and a reversal of this phenomena is expected for November 2007 March 2008 period, global business information provider Dun & Bradstreet India said.
Dresdner Bank predicts that the overall GDP growth would be of a good 8 per cent for both this year as well as 2008, while as per Dun & Bradstreet India GDP growth, is expected to moderate during second half of FY 08 and average at around 8.7 per cent during the current fiscal.
"Given current elevated interest rates, a strong rupee, widening trade deficits, and the base effect, we expect growth in IIP to moderate and stand at an average of about 9.5 per cent in financial year 2008," D&B India COO Kaushal Sampat said.
Earlier, Finance Minister P Chidambaram had attributed the slower 8.9 per cent economic growth in the second quarter this fiscal, partly to tight monetary stance of the Reserve Bank. But he expected the growth rate to touch close to nine per cent this fiscal.
Economic growth slowed down to 8.9 per cent in the July- September quarter from 10.2 per cent in the corresponding period last year. It was at 9.1t per cent in the first half of this fiscal.
The growth momentum of the Indian economy is expected to continue despite various dampeners because at this moment, as capital is literally flooding the Indian market. Besides the recent 25 bps reduction in the US Fed rate would further lead to strong inflows, Allianz Dresdner Economic Research said in its latest report on Economy and Markets.
Currency reserves ballooned this year by more than 80 billion dollars to 260 billion dollars. In the first ten months, net funds to the tune of over 25-billion dollar foreign portfolio investment and around 10-billion dollar direct investment flowed into India, the bank added.
The influx of funds was also boosted by the higher amounts being borrowed by Indian firms abroad and the rise in deposits at Indian banks of Indians living abroad.
India would continue to attract foreign funds due to high economic growth and buoyant capital markets despite various measures taken by the Reserve Bank to tighten money supply and market regulator SEBI's decision to impose curbs on Participatory Notes, the report said.
A report publish in
economictimes.com
Global warming may melt Indian economy
MUMBAI: India may be a long way from melting polar ice caps, but its economy will be among the worst affect on account of climate change. According to a report by Lehman Brothers India’s GDP would dip by 5% for every two degree temperature rise.
Speaking to ET, John Llewellyn Lehman Brothers global economist, said, climate changes are likely to effect India in a host of ways. Both India and Bangladesh would face problems because of rising sea levels. Agricultural productivity would also be affected as monsoons will be short with intense bursts. Water supply would also suffer because of lesser snowfall in the Himalayas, which provide water for 40% of the world’s population.
The effect on GDP will be non-linear. Initially, every 2 degree rise in temperature would result in a 3% dip in global GDP. The next 2 degrees would do even more damage to the economy. However for India the effects are likely to be much more harmful. For every 2 degree rise in temperature the effect on GDP is 5% and for the next 6 degrees it would be 15-16%. He feels that India may lag China and be amongst the last of the major emitters to enact policy that seriously bears down on greenhouse gas emissions. According to Mr Llewellyn, there is both a direct and indirect effect due to climate changes and this differs from sector to sector and country to country.
Incidentally the largest developers of clean development mechanism (CDM) projects are in China, while India hosts the largest number of these projects. According to Mr Llewellyn these projects represents revenue transfers for countries like India. India will continue to reap the benefit for the next 5-10 years. At present, the carbon emitters in Europe pay up to e20 a tonne for their emissions.
As per the Kyoto Protocol on global warming, countries will have to pay for high carbon emissions and can also trade with deficient countries. While, the developed world, led by USA and Europe are among the high polluters, India, China, along with most developing countries are among the deficient countries who can earn revenues from trading in these emissions.
However, the US is still not signed the protocol which means it has still not started paying for its emissions. In its latest report “The Business of Climate Change II’, a sequel to its earlier report on climate change, Lehman Brothers has said the the US, the European Union, Japan and Russia are estimated to have accounted jointly for nearly 70% of the build-up of fossil-fuel CO2 between 1850 and 2004.
The report points that there are arguments on who should foot the climate change bill. India and other developing countries argue that developed countries grew rich through a fossil-fuel burning economic model of growth, and that it would be inequitable to seek to prevent them from following a similar path. However, many developed countries (particularly US) are unlikely to agree to be the only ones to pay for future abatement.
They argue that future emissions, and thereby the future stock of atmospheric greenhouse gases, stand increasingly to be the result of today’s developing countries, especially China and India, and that these countries’ industrial production is growing fast not only for export but also to serve their domestic demand.
But Mr Mr Llewellyn, said that some sort of a system could be in place for the US 2009-10, which will have some indications on the US stand on the issue, largely on account of competitive pressures.
Details
Speaking to ET, John Llewellyn Lehman Brothers global economist, said, climate changes are likely to effect India in a host of ways. Both India and Bangladesh would face problems because of rising sea levels. Agricultural productivity would also be affected as monsoons will be short with intense bursts. Water supply would also suffer because of lesser snowfall in the Himalayas, which provide water for 40% of the world’s population.
The effect on GDP will be non-linear. Initially, every 2 degree rise in temperature would result in a 3% dip in global GDP. The next 2 degrees would do even more damage to the economy. However for India the effects are likely to be much more harmful. For every 2 degree rise in temperature the effect on GDP is 5% and for the next 6 degrees it would be 15-16%. He feels that India may lag China and be amongst the last of the major emitters to enact policy that seriously bears down on greenhouse gas emissions. According to Mr Llewellyn, there is both a direct and indirect effect due to climate changes and this differs from sector to sector and country to country.
Incidentally the largest developers of clean development mechanism (CDM) projects are in China, while India hosts the largest number of these projects. According to Mr Llewellyn these projects represents revenue transfers for countries like India. India will continue to reap the benefit for the next 5-10 years. At present, the carbon emitters in Europe pay up to e20 a tonne for their emissions.
As per the Kyoto Protocol on global warming, countries will have to pay for high carbon emissions and can also trade with deficient countries. While, the developed world, led by USA and Europe are among the high polluters, India, China, along with most developing countries are among the deficient countries who can earn revenues from trading in these emissions.
However, the US is still not signed the protocol which means it has still not started paying for its emissions. In its latest report “The Business of Climate Change II’, a sequel to its earlier report on climate change, Lehman Brothers has said the the US, the European Union, Japan and Russia are estimated to have accounted jointly for nearly 70% of the build-up of fossil-fuel CO2 between 1850 and 2004.
The report points that there are arguments on who should foot the climate change bill. India and other developing countries argue that developed countries grew rich through a fossil-fuel burning economic model of growth, and that it would be inequitable to seek to prevent them from following a similar path. However, many developed countries (particularly US) are unlikely to agree to be the only ones to pay for future abatement.
They argue that future emissions, and thereby the future stock of atmospheric greenhouse gases, stand increasingly to be the result of today’s developing countries, especially China and India, and that these countries’ industrial production is growing fast not only for export but also to serve their domestic demand.
But Mr Mr Llewellyn, said that some sort of a system could be in place for the US 2009-10, which will have some indications on the US stand on the issue, largely on account of competitive pressures.
Details
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