Indian Economy

**santosh tiwari** · 28 Sep 06, 18:41

NEW DELHI, SEPT 27: The country’s largest oil marketing and refining firm, Indian Oil Corporation (IOC) expects its daily losses on domestic sales of petrol, diesel, LPG and kerosene to come down to Rs 50 to 60 crore a day from October, compared with the present losses of around Rs 90 crore a day.

As the current LPG and kerosene prices are based on the average LPG price prevailing in the previous month, domestic lifting of LPG and kerosene by PSU oil companies from private refiners like Reliance is based on higher prices.

Although with the softening of international crude oil prices, from $78 a barrel to the current $60 levels, global LPG and kerosene prices have also dropped, the exact impact of this fall will be appropriated only once new LPG and kerosene prices are announced on October 1.

“If the existing trend in crude prices continues for the next fortnight, our under-recoveries would come down to around Rs 50 to 60 crore per day,” a senior IOC official said.

While under-recoveries of oil marketing firms including IOC, BPCL and HPCL will improve substantially following a $10 plus fall in the global crude oil prices, this will also mean a lower subsidy sharing by upstream firms like ONGC and OIL.

But will this have a negative impact on the profitability of firms like ONGC and OIL? ONGC CMD RS Sharma said, “Even when global crude oil prices touched new highs in June, the net realisation to ONGC was $45 a barrel as against the gross billings of $72 a barrel. There would be no negative impact on the company’s profits as the net realisations of $42 a barrel, which was the case last fiscal when crude oil averaged $59 a barrel, will not come down even this year.”

It may be noted here that contribution by ONGC and OIL is in the form of discounts on crude oil sales. While the discount by ONGC and OIL on crude oil sales to refiners stood at $17 a barrel for the last fiscal, this went up to $27 a barrel in the first quarter of the current fiscal after a sudden spike in international oil prices to $78 a barrel.

Therefore, if prices continue to fall, the contribution from upstream oil companies in sharing the losses of oil marketing firms will also come down. In addition, the proposed Rs 28,300 crore of oil bonds by the government as its support may also be reduced. Currently, the Cabinet has already approved issuance of Rs 14,000 crore of oil bonds to the state-owned oil marketing companies and around Rs 7,000 crore has already been disbursed so far.

The Indian basket of crude is currently ruling at $56.28 a barrel, down from historic highs of $74 a barrel in the last month.

Currently, while petrol is being sold at a profit of 90 paise a litre, the losses in diesel still stand at Rs 6 a litre.

The impact on kerosene and LPG will be clear next month as current prices are based on the previous month’s average, which was quiet high. The under-recovery on LPG and kerosene stand at Rs 200 a cylinder and Rs 16 a litre respectively.

http://www.financialexpress.com/fe_f...tent_id=141695

**santosh tiwari** · 28 Sep 06, 18:53

STRASBOURG, FRANCE, SEPTEMBER 27: The European Union and India, one of Asia's fastest growing economies, will signal next month their intention to negotiate a free trade agreement, the EU's Executive Commission said on Wednesday.

An Oct 13 summit in Helsinki will "recommend that both the European Union and India move towards negotiations for such an agreement," EU Trade Commissioner Peter Mandelson said in a statement to the European Parliament.

While the talks would not start immediately, 'we will launch positive signals at the summit that we are heading in that direction', said the statement read to lawmakers by Commissioner Joe Borg because Mandelson is in the United States.

The trade chief said earlier this month Brussels was hoping to negotiate free trade pacts with India, South Korea and countries in Southeast Asia.

He has insisted that regional and bilateral trade deals are no substitute for the World Trade Organisation's multilateral round of global trade negotiations, which stalled in July due to stubborn differences among key players.

European trade experts have increasingly focused on Asia where the EU has no regional or bilateral agreements while the United States and Japan have recently made inroads.

Mandelson said that before any talks are launched with New Delhi, the EU wants to deepen discussions on sensitive areas with India such as removing barriers to trade in services, intellectual property protection and public procurement.

http://www.financialexpress.com/late...tent_id=141685

**santosh tiwari** · 29 Sep 06, 10:26

NEW DELHI, SEPTEMBER 29: Indian economy grew by a robust 8.9 per cent in the first quarter this fiscal compared to 8.5 per cent in the corresponding period last fiscal, on the back of a strong growth in manufacturing and services sectors.

While agriculture remained stagnant at 3.4 per cent during April-June 2006-07, manufacturing sector rose 11.3 per cent in the first three months of the current fiscal as against 10.7 per cent in the same period of 2005-06, according to government data released on Friday.

In services, trade, hotels, transport and communications sector showed the highest growth of 13.2 per cent in the first quarter compared to 11.7 per cent in the year-ago period.

Construction sector, however, slowed down to 9.5 per cent this year from 12.5 per cent, while growth in electricity, gas and water supply slipped to 5.4 per cent from 7.4 per cent in April-June 2005-06.

Mining sector registered a growth of 3.4 per cent this fiscal compared to 3.1 per cent. Financing, insurance, real estate and business services grew marginally higher at 8.9 per cent as against 8.8 per cent, and community, social and personal services rose by 7.4 per cent from 7.3 per cent in the corresponding period of last year.

In rupee terms, GDP at factor cost stood at Rs 6,56,064 crore in the first quarter this fiscal as against Rs 6,02,476 crore in April-June 2005-06.

http://www.financialexpress.com/late...tent_id=141890

**santosh tiwari** · 29 Sep 06, 12:39

PUNE (Reuters) - The Reserve Bank of India (RBI) deputy governor Rakesh Mohan said on Friday that oil prices were not too low even at current levels, and that there were considerable lags before monetary policy changes had an impact.

"Oil prices are volatile. They went up suddenly and came down suddenly. By no stretch of imagination, oil prices are not too low even at these levels," Mohan told reporters at a banking seminar in Pune.

A fall in global oil prices to six-month lows has sparked speculation the RBI may hold rates steady at its policy review in October.

Mohan also welcomed data on Friday showing the economy grew at a faster-than-expected annual rate of 8.9 percent in the April-June quarter, while the annual inflation rate moderated to 4.56 percent on Sept 16 from 4.61 percent a week earlier.

"GDP and inflation are very welcome numbers. The best thing that a central bank can want is high growth and low inflation," he said.

The central bank has raised its benchmark short-term interest rate three times so far this year, each time by 25 basis points to calm inflation pressures arising out of robust growth.

The benchmark rate is at 6.0 percent and the central bank holds its next review on Oct. 31.

"There are considerable lags in monetary policy actions," Mohan said, when asked about his view on interest rates.

http://in.today.reuters.com/news/new...archived=False

**santosh tiwari** · 30 Sep 06, 06:00

At 8.9%, Q1 growth highest since 2000-01.

A strong showing in services and manufacturing saw the Indian economy beat all forecasts with 8.9 per cent growth during the April-June quarter, its highest first-quarter growth rate since 2000-01.

Cheering the data, the BSE Sensex rose 73.68 points, or 0.60 per cent, to close at 12,454.42.

Even as Finance Minister P Chidambaram said a combination of reform and discipline could enable the economy to sustain growth rates of more than 8 per cent in the coming quarters, data released elsewhere suggest buoyant growth prospects for the economy, fears of a slowdown in the US next year notwithstanding.

The rate of inflation fell to 4.56 per cent for the week ended September 16 from 4.61 per cent in the previous week.

Chidambaram said his target was to drive it below 4 per cent, which could lead to easing of interest rates in the days to come.

The Reserve Bank of India (RBI), which raised its key short-term interest rate thrice during 2006 to cool the economy and check inflation pressures, next reviews policy on October 31. At its last review in July, the RBI increased rates by a quarter of a percentage point to 6 per cent.

Data released by the RBI show the current account deficit rose sharply to $6.1 billion in April-June from $3.55 billion in the same quarter of the previous year, though the spurt was mainly on account of the rising oil import bill.

A National Sample Survey report says there has been an improvement in the country’s overall employment rate, which increased to 42 per cent during July 2004-June 2005 from around 39 per cent during January-June 2004.

“I am confident the GDP will grow by at least 7.5 per cent every quarter now and even touch 8 per cent if we follow prudent policies and fiscal discipline,” Chidambaram said.

Economist Omkar Goswami said the data was a “wonderful example of how great economics and entrepreneurial opportunity can temporarily overcome non-existent governance”. He estimated growth for the full year at between 8 per cent and 8.2 per cent.

Ajit Ranade, chief economist, Aditya Birla Group, said the figures were slightly better than expected. Stating that growth in the latter half might be slightly lower, he estimated full year growth at around 7.5 per cent.

Chidambaram attributed the robust first quarter GDP growth to a 31 per cent rise in bank credit, a 36.2 per cent growth in commercial vehicle production, a 32.2 per cent increase in civil aviation passenger traffic and a 48.9 per cent increase in telephone connections.

The services sector grew by 10.6 per cent, while agriculture grew by a flat 3.4 per cent. Except for electricity and construction, which slowed down to 5.4 per cent and 9.5 per cent from 7.4 per cent and 12.4 per cent, respectively, every sector recorded an acceleration in growth.

For 2005-06, the country’s GDP grew by 8.4 per cent. The RBI has forecast a growth of 7.5-8 per cent for the current financial year.

The prime minister’s Economic Advisory Council has projected a 7.9 per cent growth rate, while the Asian Development Bank has estimated growth at 7.8 per cent for the year.

http://www.business-standard.com/com...Left=0&chkFlg=

**santosh tiwari** · 30 Sep 06, 07:23

Ashley Seager
September 30, 2006

THE world would have to give up only one year's economic growth over the next four decades to reduce carbon emissions enough to stave off the threat of global warming.

According to consultants at PricewaterhouseCoopers, a "green growth plus" strategy, combining energy efficiency, greater use of renewables and carbon capture could, by 2050, cut emissions by 60 per cent from the level they would reach if no action were taken. Nuclear energy could play a role, but would not be crucial.

But the PwC report warns its scenario, which involves little real sacrifice in economic growth, can only be achieved if embarked upon without delay.

"If countries adopt a business-as-usual approach, the result could be a more than doubling of global carbon emissions by 2050," said John Hawksworth, head of macro-economics at PwC. "Our analysis suggests that there are technologically feasible and relatively low-cost options for controlling carbon emissions to the atmosphere. Estimates suggest that the level of GDP might be reduced by no more than 2-3 per cent in 2050 if this strategy is followed."

PwC envisages the Group of Seven leading economies taking the initiative, cutting their emissions by about half by 2050, while the fast-growing E7, the emerging economies of China, India, Brazil, Russia, Mexico, Indonesia and Turkey, could still increase their emissions by 30 per cent by 2050.

"If this is to be achieved it will take further concerted action by governments, businesses and individuals over a broad range of measures to boost energy efficiency, adopt a greener fuel mix and introduce carbon capture and storage technologies in power plants and other major industrial facilities," Mr Hawksworth said.

The report says a combination of all these measures will be necessary to stabilise global CO2 levels at 450 parts per million, the figure scientific opinion judges broadly acceptable.

The PwC projections predict China will overtake the US as the world's biggest emitter of CO2 by 2010, while total E7 emissions would be more than double G7 emissions by 2050, with the "big three" — China, the US and India — accounting for just over half, up from 45 per cent now.

The European Union could cut its share of global emissions to less than 9 per cent by 2050 from 15 per cent now, it said.

Using a less carbon-intensive fuel mix would be enough to reduce carbon emissions by 25 per cent. PwC's view that renewables could do the job without nuclear could undermine British Prime Minister Tony Blair's argument that atomic power is crucial.

http://www.theage.com.au/news/busine...337341539.html

**santosh tiwari** · 30 Sep 06, 16:23

WASHINGTON, SEPTEMBER 30: China and India should be wooed into coordinating their investments in Africa in line with that of the broader donor community, development officials said on Friday, as calls for more coherent aid policies mount.

"We need to talk with China and India about their methods in Africa," the Organization for Economic Cooperation and Development Richard Manning told a group of policy-makers from public and private institutions.

"China's methods of doing business in Africa is causing concern. They make surprisingly little use of local actors in their investments there," he added.

Talk of more coordinated and coherent foreign aid has been growing in official and civil society circles in Washington. Earlier this year a book by former World Bank economist William Easterly asserted that much of the $2.3 trillion in aid over the last 50 years has been squandered.

Chinese officials are due in Europe later this year to consult on best practices in foreign aid and Shanghai will host the African Development Bank's annual meeting next year. Both venues will offer opportunities for the West to share its hard-learned lessons, Manning said.

"Africa is unusually unindebted, but still very poor. We need to go forward with grants," said Manning, who chairs the OECD's development assistance committee. "The danger is Africa will be offered concessional loans and will find itself in the same debt situation as before in 10 years from now."

The International Monetary Fund and World Bank have written off more than $40 billion in debt for dozens of the world's poorest countries in the past year, most of them in Africa.

"Donors really have to get their act together and coordinate their activities," Manning added. "Africans themselves want to see a much bigger emphasis on infrastructure."

Billionaire philanthropists like Bill Gates and Warren Buffet have joined the donor community this year, just as China and India grow as development investors, and are consulting Washington-based multilateral lenders on how best to proceed.

"Now there are new groups of private donors and we need to coordinate with them too," said James Smith, a senior official at the US Agency for International Development.

The World Bank's internal watchdog agency earlier this month warned that donors too often rush in to rebuild post-conflict countries, overwhelm them with an array of unprioritized reforms and misjudge how much cash to offer.

"You need discipline in the donor community to coordinate what you are doing," Smith said. "I'm a big fan of sector-wide approaches, but it's not easy."

http://www.financialexpress.com/late...tent_id=141996

**kams** · 02 Oct 06, 15:47

Oct. 2 (Bloomberg) -- If the women and temples of India were to sell every ounce of the 15,000 tons of gold they collectively possess, they could buy Citigroup Inc. at a 17 percent premium to the bank's market value.

Of course, it won't happen, and not just because selling 10 percent of the world's above-ground stock of yellow metal would depress the price so much that the sale proceeds wouldn't be enough to buy the world's biggest financial-services company.

The reason that the idle wealth of India isn't put to a productive use is a combination of economics, demographics, inheritance laws and a deeply rooted cultural affinity for gold.

With the onset last week of the annual Hindu festival season, a busy period for jewelry purchases, bullion prices have started climbing, increasing the cost of what is already a colossally wasteful national habit.

Financial innovation is needed, not to prompt Indian families to sell their grandmothers' bracelets -- they will only do that to make a new pair of earrings -- but to make better use of the money that's coming into precious metals either to speculate or to hedge against a drop in the value of paper money.

Indian Prime Minister Manmohan Singh wants $150 billion of overseas investment in roads, ports and power stations. With the government last week announcing 8.9 percent economic growth in the quarter ended June 30, bankers are forecasting industrial credit requirement at $175 billion over the next three years.

Immune to Prices

Most of this money -- $290 billion at the current gold price of more than $600 an ounce -- is already in India, lying in bank safe-deposit boxes, earning nothing. But far from channeling the gold into the financial system, households are spending more of their current incomes on adding to their hoard.

India is the world's largest consumer of gold by volume, with average annual demand of 676 tons during the past decade, three times more than in China. Gold futures rose 3 percent in New York over the past two weeks as Indian jewelers began stocking up.

Price alone doesn't deter Indian buyers.

As the World Gold Council's recent research shows, when the precious metal became steadily more expensive from 2002 to 2005, Indians bought more of it. Demand for the yellow metal in India ebbs only when the price fluctuates too wildly, as it did in the first half of this year.

``The value of gold sales is often quite price inelastic,'' says Natalie Dempster, a researcher at the council. ``What does seem to adversely impact on demand is a pickup in the pace of daily price fluctuations or volatility. Consumers are wary about purchasing when the price is volatile for fear that they buy and then find the price falls.''

Gold Funds

An exchange-traded gold fund, such as San Francisco-based Barclays Global Investors' 21-month-old Ishares Comex Gold Trust, may be a good way to monetize investment demand for the metal.

In January 2006, after several years of hand-wringing, the Indian regulator allowed exchange-traded funds, or ETFs, with gold as the underlying security, to be set up in the country.

UTI Mutual Fund, the nation's second-biggest money manager, and Benchmark Mutual Fund, which specializes in index-tracking investment pools, are awaiting regulatory clearance to launch exchange-traded gold funds, which would buy physical gold from market makers -- called authorized participants -- in return for shares that can be bought and sold on a stock exchange.

U.S.-traded gold ETFs have returned 28 percent over the past year. In India, they would offer Hindu temples a good way to earn a high return on their devotees' affection.

Gold ETFs will have a much better chance of success than a government plan seven years ago to get families to melt their jewelry and deposit the gold in a bank account for a paltry 3.5 percent per annum. No wonder the plan bombed.

Property Rights

As part of her bridal trousseau, or as a gift from her husband, gold is a Hindu woman's property.

If a husband or a son borrows the jewelry and fails to return it with interest, he's guilty of criminal breach of trust.

By contrast, the Hindu Succession Act of 1956 gave a man the right to will away his wealth. This clause was flagrantly abused to disinherit married daughters from paternal property.

This inequity in inheritance laws enhanced the ancient religious appeal of the metal. But after an amendment last year, daughters have won the same legal rights as sons to reside in and claim a share of their parental homes.

Their birthright in a family's joint property can no longer be willed away by the father.

It might take a decade or two, but this legal change and an inevitable lifting of restrictions on taking money out of India will surely take some shine off gold.

In the interim, jewelry demand may keep increasing as the economy and disposable incomes grow rapidly.

Gold may also benefit from India's youth bulge. With two- fifths of the current population -- or more than 450 million people -- aged 19 years or younger, there won't be a dearth of marriages over the next couple of decades.

Besides, don't expect any bride to ever be willing to take shares in an ETF.

Shiny Gold

Approximately 20 years back, National Geographic Magazine carried a major article on Gold/Silver and their influence on civilization. A major part of the article focused on India and its traditions. Most of the things what they said then, still holds true today.

**santosh tiwari** · 07 Oct 06, 12:49

India seems to be on track to attracting $12 billion of foreign direct investment in 2006-07, with inflows during July touching $1.16 billion, an increase of over 255 per cent from $0.32 billion last July.

During the first four-month period (April-July), inflows reached $2.9 billion, against $1.5 billion last year, an increase of over 90 per cent.

Stating this, Commerce and Industry Minister Kamal Nath said the government was hoping to attract $12 billion of FDI in the current fiscal, which is over 44 per cent higher than the previous financial year’s inflows of $8.3 billion. FDI equity inflows into manufacturing alone during April-July are estimated at $668 million.

Nath said the huge increase in July inflows was due to investments of $380 million by Barclays Bank in AAA Global Ventures Pvt Ltd and $377 million by TH Holdings in Mphasis BFL Ltd.

Other major investments during the month included those of Global Communication Service Holdings, Mauritius, in Aircel Ltd, Flextronics and Aspen Pharmacare Holdings Ltd.

Ministry officials said some of the investments in the pipeline included German company Thyssen’s.

The 10 sectors attracting the highest FDI into India include electrical equipment, services, telecommunications, transportation, fuels, chemicals, food processing industries, drugs and pharmaceuticals, and cement and gypsum products.

Asked about the stalemate on the FDI in telecommunications, Nath said: “The matter is not stuck. We are looking into it. The regulatory structure being thought about is not India-specific. Countries like the US have it. We are building a regulatory framework not different from theirs.”

Nath said there was no difference of opinion between the government and the Left regarding investment.
http://www.business-standard.com/com...260987&chkFlg=

**santosh tiwari** · 07 Oct 06, 12:54

NEW DELHI, OCTOBER 7:

India's economy, Asia fourth largest, expanded more than 8 per cent in the July-September quarter, Finance Minister Palaniappan Chidambaram said on Saturday.

Chidambaram added India needed $363 billion over next five years to boost infrastructure to maintain growth at 8 percent levels.

http://financialexpress.com/latest_f...tent_id=142700

**santosh tiwari** · 07 Oct 06, 13:06

NEW DELHI, OCTOBER 7: Pegging a massive resource requirement of 363 billion dollars over the next five years for development of infrastructure in India, Finance Minister P Chidambaram invited private sector to pitch in with the support of the government in this crucial area for ensuring over 8 per cent growth in economy.

"Economy is exected to grow at 8 per cent or more in the 11th plan. Unless investment grows at the same pace, it will not be possible sustain the economic growth," he said addressing the day-long summit on infrastructure convened by the Planning Commission.

Chidambaram said infrastructure has long remained in the domain of public sector which resulted in inadequate development. Hence, there was a need for participation for the private players who are flush with funds to invest in the sector.

He said in the 10th Five Year Plan Rs 11 lakh crore investments were required to be invested in infrastructure and by 2012 Rs 2,20,000 crore needed to be invested in national highways, Rs 40,000 crore on airports and Rs 50,000 crore in ports.

Chidambaram highlighted that in the first 20 months of the UPA government the economy grew by an average of 8.5 per cent and expressed confidence that it would grow at more than 8 per cent in the second quarter of this fiscal.

He, however, said the rapid pace of growth has exposed the infrastructure deficiencies in the country in particularly obvious congested highways, ports and airports.

http://financialexpress.com/latest_f...tent_id=142701

**santosh tiwari** · 07 Oct 06, 13:10

NEW DELHI, OCTOBER 7: India, Asia's fourth largest economy, needs to grow in the 9-10 per cent range to cut poverty and provide employment to millions, Prime Minister Manmohan Singh said on Saturday.

"If we have to make a decisive impact on poverty, we must accelerate the pace of growth to 10 per cent," Singh told a conference on infrastructure.

http://financialexpress.com/latest_f...tent_id=142698

**santosh tiwari** · 07 Oct 06, 13:19

NEW DELHI: India's foreign direct investment inflows have nearly doubled to $2.9 billion during April-July 2006, compared with $1.5 billion during the corresponding four-month period last year.

While Barclays Bank's $380 million investment in a financial leasing company and technology major MphasiS'$377 million investment have shored up inflows during July, the interest in India is evident with a host of international majors including Mitsui and Nissan-Suzuki finalising investment plans.

And there was also an investment of $15.35 million from Navigate Mauritius for acquiring shares in Nirulas Corner House Pvt Ltd, the popular fast food joint in the capital. The 93% growth in the first four months of the fiscal received a major push from the high inflows in July 2006, which were estiamted at $1.16 billion, as against $324 illion in July last year — representing a growth of 259%.

According to Reserve Bank of India's estimates, India has received $50.1 billion since 1991, of which $16 billion — or 32% — has come since April 2004, reflecting the rising interest in the country.

Though commerce and industry minister Kamal Nath sounded upbeat on the prospects of meeting the $12 billion FDI inflow target for the fiscal, as against $8.3 billion in 2005-06, he called for easing of restrictions to sustain the momentum.

"There is competition not just from China but also from others like Thailand, Malaysia and Bangladesh. We have seen the Tata group go to Bangladesh since it is getting gas. We can't lose focus on attracting investment since we can't get inflows by giving lectures but work on ways to get investors,"he said.

Along with high inflows, Indian companies are also emerging as MNCs and showing keen interest in investing abroad.

According to a Crisil study, Indian companies have invested $2.8 billion during April-August 2006 and amount could go up significantly if Tata Steel manages to acquire a stake in global steel giant Corus for an estimated $8-9 billion.

"It's a trend that is bound to catch on as companies look to foreign markets for synergies and to cater to markets overseas,"Nath said.

Asked if government's intention to open up sectors like retail and financial sector to foreign competition, which had not fructified due to Left's opposition, could hit inflows, he said government was hopeful of a solution.

"The Congress and the Left have a common objective to raise growth rate and ensure balanced growth, so I am hopeful of reaching a consensus."

The minister's excitement over higher FDI inflows so far was also on account of bulk inflows flowing into the manufacturing sector, a critical element of the government's plan to push up the sector's share in the economy from 17% to 25%

http://timesofindia.indiatimes.com/a...ow/2110335.cms

**santosh tiwari** · 07 Oct 06, 13:24

NEW DELHI, OCT 6: Industrial production posted its highest growth in a decade at 12.4% in July, further buttressing that the economy is on a roll. The record growth in the index of industrial production (IIP) is propelled by the consistent high growth in the manufacturing sector output, which rose by 13.3% in July.

Manufacturing output had grown by 13.4% in June and the previous closest high growth in the recent past was seen in June 2005 when the output rose by 13.2%.

The data on industrial production has come on the heels of Indian economy displaying robust growth of 8.9% in the first quarter of the current fiscal.

On a cumulative basis, IIP increased by 10.6% in April-July 2006-07 as against 8.9% in the same period last fiscal, according to the quick estimates of Central Statistical Organisation.

Food products industry grew at the fastest rate of 26.8%, followed by wool, silk and man-made fibre textiles at 25%. Transport equipment sector has shown a growth of 22.4%, basic metal and alloy industries by 19.5% and textile products at 17.3%.

As per the use-based economic sub-groups, consumer goods sector grew by 17.9% during July 2006, while the capital goods sector registered a growth of 15.4%. “The growth in July is the highest in 10 years. The record growth has been propelled by the manufacturing sector, which rose by 13.3%,” commerce minister Kamal Nath said. “We are not only growing at a fast rate, but the growth has been in the right areas as well, which will boost the country’s GDP growth,” Nath said.

During July 2006, mining and quarrying sector rose by 6.0%, while electricity sector registered a growth of 8.6% compared with the same month last fiscal.

The July IIP figures indicate that the economy is likely to continue its robust growth in the second quarter as well.

Finance minister P Chidambaram recently said that besides big industrial houses, other players including small and medium enterprises should also chip in to make India a manufacturing hub at least in 12 activities.

The finance minister had also said that increased industrial production would not put pressure on interest rates as liquidity in the economy is ample.

http://www.financialexpress.com/fe_f...tent_id=142640

**santosh tiwari** · 07 Oct 06, 14:08

NEW DELHI, OCT 6: Germany’s 42-billion euro steel and technology major, ThyssenKrupp AG, will soon announce a multi-billion dollar investment in India. It is believed that the world’s 11th largest steel maker proposed to set up a large steel plant. Gerhard Cromme, ThyssenKrupp’s chairman of the supervising board, discussed the details of the proposed investments with commerce and industries minister Kamal Nath on Friday.

After emerging from the discussions, Cromme said he mainly discussed world affairs and the investment climate in India.

However, ministry officials insisted Cromme proposed a mega investment in a big-ticket project. “We are bullish about India,” is all Cromme was willing to divulge when FE sought details of his talks.

Asked about the sector in which ThyssenKrupp was planning new investments in India, he said the company had interests in several areas. He also refused to disclose the size of possible investments or the region, saying it was too early to discuss those issues.

A large investment in steel would pit ThyssenKrupp against South Korea’s Posco, the world’s fifth largest steel maker, which has already proposed investments of Rs 53,000 crore (US$11.5bn), the single largest foreign investment in India so far.

Associated with India since 1860, ThyssenKrupp has five subsidiaries in the country. ThyssenKrupp Industries India makes sugar plants, cement plants, machinery and equipment for open cast mining and bulk material handling. The group claims 20% of cement sold in India is produced from plants supplied by ThyssenKrupp Industries India.

Uhde India specialises in plant design and engineering for the chemicals and petroleum sectors.

ThyssenKrupp Elevator, which entered India in October 2002, acquired Mumbai’s Kare Elevator & Engineering Co in January 2005.

ThyssenKrupp JBM near Chennai makes automotive components, while ThyssenKrupp Electrical Steel India

Private Ltd at Nashik makes steel.

India is the third largest market for ThyssenKrupp in Asia-Pacific, which currently generated revenues of 3 billion euros in 2005. Asia-Pacific represents 7% of total sales and 11% of foreign sales.

Globally, ThyssenKrupp is into elevators, escalators, carbon and stainless steel, automobile components and related systems, industrial services as well as materials trading and services. The group employs 1.84 lakh people worldwide.

http://www.financialexpress.com/fe_f...tent_id=142680

Thread: Indian Economy

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Fall in global crude prices to ease oil losses at home

EU, India to seek free trade pact

Growth gung ho, up by 8.9%

RBI says oil not too low, welcomes GDP data

Scorching quarter may lift GDP trajectory

We must act now to save the planet, says PwC

China, India deals in Africa cause concern

How India Can Open $290 Billion Treasure Chest: Andy Mukherjee

FDI inflow on course to $12 billion target

GDP grew over 8% in the July-September quarter: Chidambaram

Invest in infrastructure: FM to pvt sector

Grow @9-10% to fight poverty

Indian companies emerging as MNCs

Industrial output up 12.4% in July; highest in a decade

Thyssen sounds out Centre on big-ticket FDI

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