India’s chances of rating downgrade has decreased: S&P

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Rating agency Standard & Poor’s said that the possibility of India’s rating downgrade is less than it was in April, 2012. According to the reports, India still has a one in a three chance of a downgrade. But the likelihood of it is less than before. S&P also acknowledged the steps taken by the government but said that their impleme

FM meets financial regulators ahead of budget 2013-14

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Finance Minister P. Chidambaram met up with the financial sector regulators to discuss the issue related to the regulatory environment and mooted the possible steps that need to be taken for the Budget. Speaking to the reporters after the meeting, D Subbarao said, “We gave suggestions for Budget from our respective point of view.

The

India’s fiscal deficit stands at Rs 4.07 trillion for April-Dec period

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The fiscal deficit of India during the April-December period was Rs 407,000 crore or 78.8 per cent of the budgeted full fiscal year 2012-13 target. During the same period in the previous fiscal year, the deficit was 92.3 per cent of the budgetary target. Net tax receipts for April-December stood at Rs 4.84 trillion while total expenditure was Rs 9.91

Worsening global financial situation will have severe consequences for emerging economies like India: ADB

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Cautioning India and China, Asian Development Bank (ADB) said that the worsening global financial situation will have severe consequences for emerging economies. Speaking at the FICCI seminar, Haruhiko Kuroda, President ADB said” This global slump (in US, Euro area and Japan) will have a serious slump on the region's major economies, particu

Ratings in structured finance space to remain stable in 2013: India Ratings

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India Ratings has said that the ratings in the structured finance space are expected to remain stable in 2013 despite rising stress on the asset quality in the segments like commercial vehicle loans. In a report, India Ratings said, “Ratings in the structured finance space will remain stable this year. While there is a likelihood of pressure on

CCI’s maiden meet ends with little surprises; no breakthrough decision for boosting investments

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The first ever meeting of the Prime Minister Manmohan Singh led Cabinet Committee on Investment (CCI), which was expected to clear all the hurdles in way of 47 stalled oil exploration projects on Wednesday, ended at a disappointing note as it told oil and defence ministries to discuss the issue in detail and formulate solutions within one month to res

MSME Minister recommends improved lending & loan assistance in N-E India

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Union Minister of State for Micro, Small and Medium Enterprises (MSME), K H Muniyappa has asked the banks to improve their lending to the sector and provide loan assistance in Northeastern parts of India. Post the high level meeting with Chief Minister Tarun Gogoi of Assam, Muniyappa said, “Banks have been instructed to advance the loan without

India’s merchandise exports to fall further on European crisis

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Minister of state for commerce and industry D. Purandeswari said India's merchandise exports, will continue to fall further owing to the crisis the European economies are currently facing. “Reasons for exports de-growth can be many. Largely, we know for the fact between 2008 and 2009 there was a global slowdown that had impacted us. Now, the

No more rate cut until current account deficit comes down, says D Subbarao

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The Reserve Bank of India (RBI) governor D Subbarao has said that current account deficit continues to poses hurdles on any further easing of monetary policy. Subbarao said that the widening of the current account deficit (CAD) to historically high levels, especially in the context of a large fiscal deficit and slowing growth, has exposed the economy

Diluted GST rollout likely soon as Centre accepts key demands of states

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Soon after allaying the concerns of compensation for reduction in central sales tax rates, the Centre has now reached a broad consensus with state governments on the structure of proposed Goods and Services Tax (GST), raising hopes that much-awaited indirect tax reform could be reality from next fiscal. Media reports said that UPA government has agree

CCI meet today to remove hurdles in infra projects

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Soon after RBI did its bit to boost the growth by lowering lending rates, government now plans to take the action ahead by clearing unwanted roadblocks in way of the infrastructure projects at a maiden meeting of Cabinet Committee on Investment (CCI) on Wednesday. Media reports said that the panel led by Prime Minister Manmohan Singh will meet today

Challenge for banks to pass on the benefits of rate cut: IOB Chairman

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Indian Overseas Bank (IOB) said it would be difficult for the banks to pass on the benefits of the rate cut to encourage growth owing to conservative rate cuts executed by RBI. M Narendra, IOB Chairman and Managing Director said. “....RBI has guardedly reduced the policy rates by 25 basis points. Growth-inflation dynamics in the current quarter

Budget 2013 will be "responsible": P Chidambaram

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Finance Minister promised to present a “responsible” budget next month, focussing on the general elections which are merely 15 months away.

Assuring the investors, who expressed pessimism over governments ability to continue on the reformist path, Chidambaram said, “I assured them that the polls are 15 months away and that

FinMin mulls to change petrol, diesel pricing methodology

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The Finance Ministry is mulling to change the price mechanism for diesel and petrol in a way that would exclude the element of import duties. This would save about Rs 18,000 crore in subsidy bills, said the sources. As per the sources, the Finance Ministry has intimidated the Petroleum Ministry about the need given indication of removing the 2.5 per c

RBI delivers double bonanza; cuts repo rate, CRR by 25 bps

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After a gap of almost ten months, the Reserve Bank of India (RBI) slashed repo rate----the rate at which it lends to banks-- by 25 basis points to 7.75 per cent, a move that will reduce the cost of home, auto and corporate loans and boost the growth of Asia’s third largest economy headed for its slowest growth in a decade. The RBI also unexpecte

FinMin to ease tax residency certificate rules to woo foreign investors

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Soon after deferring the controversial tax law GAAR by two years, the finance ministry now plans to make it easier for foreign investors to get tax residency certificate required for claiming the benefits under bilateral tax treaties, said a media report. Tax residency certificate (TRC), made mandatory in 2012-13 for claiming benefits under double-tax

RBI lowers GDP forecast, but raises rate cut hopes

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The Reserve Bank of India (RBI), on Monday, lowered the GDP growth forecast for the current fiscal year to 5.5 per cent from 5.7 per cent forecasted earlier and added that the policy reforms announced by government in past few months were yet to reflect in the growth due to which revival might take some more time. “Growth in 2012-13 is likely to

Sustained reforms key for improving business sentiment in India: RBI

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According to the Reserve Bank of India (RBI), sustained reforms hold the key for improving the business sentiment and achieving sustained growth in India. RBI, in its report on Macro-economic and Monetary Policy Developments ahead of the third quarter monetary policy review, said, “The key to demand revival lies in improving the investment clima

Now, Chidambaram to sell India’s growth story in Europe

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The finance minister P Chidambaram will launch a roadshow in Europe on Monday to woo the investors towards Asia’s third largest economy which has been struggling to revive GDP growth and rein in twin deficits. The roadshow, to be hosted by Deutsche Bank and Barclays Bank in Germany's financial centre, will see FM holding discussions with leading representati

Banking sector has huge potential going ahead: Chanda Kochhar tells media

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ICICI Bank’s CEO and Managing Director Chanda Kochhar said that Indian banks have got huge growth potential going ahead and the concerns of high corporate debt leverage will also vanish once companies start generating cash flows. Kochhar, talking to a media, said that companies have been in investment phase currently due to which leveraging appe

India’s economic growth tipped to accelerate next fiscal: DSP BlackRock says

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India’s economy is tipped to expand at a faster rate next fiscal underpinned by a pickup in domestic consumption and a revival of investment amid the stellar reforms announced by the Indian government. Asia’s third biggest economy is estimated to expand by 6.5 per cent in the fiscal year 2013-14, said DSP BlackRock Mutual Fund in a report on Sunday. In the

Service sector sees a dip in FDI inflows

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India’s service sector has witnessed a dip in Foreign Direct Investment (FDI) inflows as global risk aversion heightened amid Europe’s lingering debt saga and US budget woes, effecting FDI inflows into fast emerging markets. FDI inflows in the service sector fell by nearly 14 per cent to USD 3.63 billion in the April- November 2012 period

FIIs raise stake in Sensex companies in Q3 amid economic growth optimism

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Riding high on hopes that the Indian government’s recent reform push may fast track growth in Asia’s third biggest economy, Foreign Institutional Investors (FIIs) hiked their exposure in Indian equities last quarter. FIIs raised their equity stake in 29 of the 30 Sensex companies including HDFC, Mahindra & Mahindra and auto maker Marut

India hoping for FDI revival in 2013

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The Indian government is hoping that 2013 turns out to be a better year as far as generating the interest of foreign investors is concerned as the UPA government hopes that a slew of economic reforms may help spark a revival in foreign direct investment (FDI) in Asia’s third biggest economy. FDI in India fell by 13.5 per cent in 2012 as a global

RBI likely to cut interest rates in near-term, Chanda Kochhar says

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With inflationary pressures on the wane, the Reserve Bank of India (RBI) is likely to press the easing button in the near-term to help fast track growth in Asia’s third biggest economy. The central bank may cut interest rates in the coming months, said Chanda Kochhar, the MD and CEO of ICICI Bank, India’s largest private sector bank. &ldqu