IMF offers recipe to get back 8% growth to India

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The multi-lateral agency IMF said that India will have to take some tough decisions on a lot of fronts which then, if, coupled with commitment to sustain the reforms momentum will deliver 8 per cent and more. “To go back to eight per cent (annual growth rate) you (India) need to see move on a lot of fronts and investment picking up very robustly

Govt pegs FY’13 GDP growth rate at 5%

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Indian government’s growth estimates for the current fiscal surprisingly took a U-turn on Thursday, with the statistics department pegging GDP growth for 2012-13 at 5 per cent, cooling off significantly from the earlier projections of near 6 per cent. The finance ministry had earlier projected the economy to grow at 5.7-5.9 per cent in the curre

Maintaining fiscal deficit target extremely important for the health of the economy: Montek Singh Ahluwalia

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Montek Singh Ahluwalia has his plate full of worries ahead of the Budget and he is focussed on his target- Fiscal Deficit. Speaking to the reporters on the sidelines of a meeting with State Planning Commission/Boards, Ahluwalia said, “We have said ourselves in the Plan, I think we should be very clear about that balancing deficit doesn't mea

Budget 2013: Govt may empower taxman to investigate overseas accounts

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In a bid to curb offshore banking practices linked to tax fraud, the government of India is mulling to change the law to give more power to income tax officials in dealing with cases of Indians with undisclosed, offshore bank accounts. Source close to the development revealed that taxman may soon get the authority to assess the evidence in deciding wh

Restrictions on gold imports in extreme conditions only: RBI

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India's central bank, the Reserve Bank of India (RBI) said it would think of imposing restrictions on gold imports by banks only under extreme conditions, which has led to widening of the current account deficit (CAD). The decision of government to hike customs duty on gold, which accounts for 60 per cent of country's imports of the yellow met

Cabinet approval sought for sugar decontrol: Report

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Soon after partially deregulating the diesel prices, the government now plans to take the reforms drive ahead with decontrol of sugar as food ministry seeks cabinet approval to lift controls on sweetener, in a first such attempt since the sector was brought under strict regulation 50 years ago. The move has come following the recommendations of a comm

Efforts would be made to collect revenue in a “just and fair manner”: P Chidambaram

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Stressing on the need for ending hostile relationship between officials and assesses, Finance Ministry said that efforts would be made to collect revenue in a “just and fair manner." While addressing officials of Central Board of Excise and Customs (CBEC) here, P Chidambaram said, “Once the tax payer is confident that the relationship

RBI rate cuts will not aid credit growth; deposits could gain momentum: BofA-ML

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Bank of America-Merrill Lynch (BofA-ML) said the rate cuts undertaken by RBI will not give much needed push to the lukewarm credit growth, but deposits will gain momentum from next month. In a note, BofA-ML pegged deposit growth picking up to 15-16 per cent by March on the CRR ( Cash Reserve Ratio) cuts/OMOs ( Open Market Operations) and base effects

Oil consumption responsible for India’s CAD, not gold import: HSBC

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HSBC Bank has hinted towards rising oil consumption as the main culprit, and not gold import, for driving India’s current account deficit to record highs. CAD had hit a record high of 5.4 per cent in second quarter. Speaking to the reporters, Hitendra Dave, HSBC head of global markets for India said, “The biggest risk to the exchange rate

Jan Services PMI at 12-month high

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India’s services sector grew at its strongest pace in twelve months during January as new orders came in at a faster rate, a survey showed on Tuesday. The HSBC services Purchasing Managers’ Index, a survey of around 400 companies, rose to 57.5 in January from December’s 55.6, signaling a bright outlook for Asia’s third largest

Odisha Govt resumes land acquisition for Posco amid protests

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The Odisha Government has resumed land acquisition for South Korean company Posco’s 12-million-tonne steel facility amid protests and the expectations that Land Acquisition Bill will put the acquisition process in a perplexity. The land acquisition for the company’s steel plant had come to a halt in November 2011 as clashes broke out over

Centre should allow states to collect central taxes: Mamata Banerjee

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After failing to clinch a three-year moratorium on interest payment on central loans from the Central Government, Mamata Banerjee, CM of West Bengal said the Centre should allow states to collect central taxes and use them for governance. Addressing a convention of the Trinamool Congress's student and youth wings at the Netaji Indoor stadium, Bane

India needs to commit to reform & meet fiscal deficit targets: Fitch Ratings

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Putting pressure on Indian government to retain investment grade ratings, Fitch Ratings has said India needs to commit to its recent reform measures and meet its fiscal deficit targets. Despite praising recent policy steps and Finance Minister P. Chidambaram's assurances on deficits, Fitch said the country needed to do more, including bringing out

India to end payments for Iranian imports through Turkish banks from Feb 6

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India will stop paying for Iranian imports through an 18-month old arrangement with Turkish banks from this week as a new set of US sanctions against the Islamic nation comes into force from February 6 which bars banks from transferring Iran’s oil revenues. An oil ministry official was quoted as saying, “For sure we will have to end paying

India Inc investments shrink in 2011-12: RBI

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The reports of falling investments in the economy amid high interest rates and policy inaction during 2011-12 have now become official as Reserve Bank of India (RBI) released its survey showing that capital formation by private sector companies fell 12.79 per cent at Rs 7.08 lakh crore from Rs 8.12 lakh crore in the previous year. The data also showed

Govt may withdraw tax benefits available to infra sector under section 80-IA: Reports

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Companies engaged in infrastructure sector and enjoying tax holiday for 10-20 years in a row under Section 80-IA may soon end up losing such profit-based incentives as finance ministry plans to replace them investment-based incentives, said a media report. The government had, in the previous fiscal, lost around Rs 15,000 crore in revenues due to vario

Central Bank reduces lending, deposit rates following RBI’s rate cut decision

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Following the RBI’s decision to reduce its short-term lending rates and cash reserve requirements of banks by 0.25 per cent, the state-run Central Bank of India has reduced its base rate or the minimum lending rate by 0.25 per cent to 10.25 per cent. "We have revised downwards our base rate by 25 basis points (0.25 per cent) from 10.50 per

Aadhaar is not an identity card: Montek Singh Ahluwalia

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Planning Commission, Deputy Chairman, Montek Singh Ahluwalia rested the controversy over Aadhaar on Saturday by stating that Aadhaar is a number and not an identity card. "The Aadhaar is actually a number, linked to that number is a biometric record which is centrally stored. The (Aadhaar) number comes in a form of card. But that card is not an i

CII asks govt to align transfer pricing practices with OECD guidelines

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The Confederation of Indian Industry (CII) has said domestic transfer pricing practices should be brought in line with the Organisation for Economic Co-operation and Development (OECD) guidelines in the Budget to remove uncertainties and instill confidence among investors. Chandrajit Banerjee, General of the Confederation of Indian Industry (CII) said

Finance Ministry to form online data bank to check black money & tax evasion

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Finance Ministry has decided to set up an online data bank, named ‘Virtual Office’, to check black money and tax evasion, and effectively coordinate and circulate inputs related to illegal funds. The system would help in monitoring of Suspicious Transaction Reports (STRs) generated by Financial Intelligence Unit-India, an agency tasked wit

India’s saving rate set to fall to 27%: Nomura

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Japanese brokerage firm Nomura has estimated that India’s savings rate would fall to a 10-year low of 27 per cent this fiscal. Nomura India, in a note said, “Based on the available investment data, we estimate that savings will plunge even further to a 10-year low of 27 per cent of GDP in FY13.” The domestic saving rate,

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Growth slowdown not commensurate with inflation control: RBI

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The Reserve Bank of India (RBI) has said that growth slowdown has not been commensurate with inflation control. “Interest rate is a blunt instrument. It first slows growth and then inflation. But the growth slowdown has not been commensurate with inflation control,” said Deepak Mohanty, RBI’s executive director. Mohanty said that RBI

More reforms on way to boost investor confidence, growth: FM

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The finance minister P Chidambaram on Friday said government has been making efforts to further boost investors’ confidence and revert to high growth path while staying on course with the fiscal consolidation roadmap. “Efforts (are) being made to turn the economy around and create a more investor-friendly climate,” Chidambaram said d

Jan Manufacturing PMI at 3-month low

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India’s manufacturing sector growth fell to a three-month low in January as new export orders lost momentum while inadequate power continued to pose hurdles in production, said a survey released by HSBC Markit on Friday. The HSBC Markit manufacturing Purchasing Managers' Index (PMI), which gauges business activity in India's factories, f

PM urges for transparent regimes to ensure sustainable development

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The Prime Minister Manmohan Singh on Thursday urged that there is need to bring transparency in regulatory regimes to ensure that environmental and economic objectives were pursued in tandem. Speaking at the inauguration of the Delhi Sustainable Development Summit (DSDS) in New Delhi, PM asserted that resource efficiency was a necessary condition for