Mumbai’s Metro to hit tracks in September this year: Chavan

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Chief minister Prithviraj Chavan, on Maharashtra Day, gave a green signal to the trial run of state’s first Metro Railway, on a 3-km stretch from Versova to Azad Nagar in Andheri. Trial runs are needed for obtaining safety certificate from authorities. Chavan said first phase from Versova to Airport Road will start around September this year. Th

SC says “Consumer is the king”, clears barriers for FDI in retail

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The Supreme Court has cleared the barriers for the execution of FDI in multi-brand retail sector saying that the “consumer is king and if that is the philosophy working behind the policy then what is wrong.” “Consumer is the king and if that is the philosophy working behind the policy what is wrong. The policy is to free the economy

India Inc wants RBI to cut rates to promote growth

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The Reserve Bank of India (RBI) is likely to cut repo rate and Cash Reserve Ratio (CRR) by about 0.25 per cent each to spur demand and boost industrial output to improve growth. The possibility of rate cut at the annual credit policy to be unveiled by RBI Governor D Subbarao on May 3 has gone up with the inflation falling to 5.96 per cent. "...t

India to grow at 5.8% in 2013-14: IMF

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Projecting 5.8 per cent economic growth for India in FY14, IMF said the pace of investment in infrastructure should increase to get back to 8 per cent expansion level. IMF Deputy Managing Director Naoyuki Shinohara said, “We are forecasting India to grow at about 5.8 per cent this fiscal (2013-14) and 6.3 per cent in 2014-15. This compares to a

World Bank cuts India’s FY’14 growth forecast to 6.1%

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World Bank on Tuesday slashed India’s growth forecast for the current fiscal to 6.1 per cent from 7 per cent it had pegged earlier, citing slower than expected growth in agriculture sector despite normal monsoon projection. The multi-lateral funding agency said agriculture sector is expected to grow at 2 per cent during 2013-14 against the prev

FinMin calls for rate cut ahead of RBI’s policy review on May 3

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Finance Ministry on Tuesday said a further cut in interest rates by the Reserve Bank of India (RBI) on May 3 would help would be a welcoming step towards economic growth. “We would be happy if RBI continues the trend of softening the rates” said Arvind Mayaram, secretary, department of economic affairs on the sidelines of FICCI- Asian Dev

Half-a-trillion-dollar investment needed from pvt sector to achieve 8% growth: Montek

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The planning commission deputy chairman Montek Singh Ahluwalia on Monday said India could not achieve 8 per cent average annual growth in the ongoing 12th five year plan until private sector contributed at least half of a trillion dollars required for infrastructure funding during the period. “In the 12th Plan period, no less than 50 per cent of

Real interest rate likely to rise this year: Deutsche Bank

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A report by Deutsche Bank has said that the real interest rate is likely to rise in the current year due to the falling inflation and steep correction in gold prices, prompting investors to park money in bank deposits. The reports said, “Real interest rate has begun to turn positive. Looking ahead, we believe there is a substantial downside to i

Direct cash transfer with Aadhaar will save 0.5% of GDP for India: IMF

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Aadhaar and direct cash transfer scheme, said International Monetary Fund (IMF), will together help save 0.5 per cent of the GDP for India. In a report, IMF said, “... the total savings could be substantial: if the combination of direct cash transfer and Aadhaar eliminates the estimated 15 per cent leakage cited above for the programmes being in

FIIs may pull plug on Indian equities as UPA’s ambitious reforms hit political hurdles

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With stock markets witnessing immense volatility amid global economic uncertainties, chances are high that Foreign Institutional Investors (FIIs) may pull the plug on domestic equities as UPA government’s ambitious reforms agenda hit political hurdles yet again in parliament. The ongoing ruckus in parliament over alleged scam in telecom and coal

Gold price correction may not help India narrow CAD: HSBC

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Pouring cold water over the expectations of dip in India’s Current Account Deficit (CAD) with sharp correction in gold prices during past few weeks, the global investment bank HSBC on Monday said significant rise in volumes will offset the effect of drop in prices. “The recent drop in gold prices is likely to have no impact on the CA defic

India, China need to improve their economic institutions as they face stagflation: IMF

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The International Monetary Fund (IMF) on Monday said Asian economies like India, China needed to guard against asset bubbles and improve their economic institutions, if the aim is to reach the level of developed economies. "While the external risk of severe economic fallout from an acute euro area crisis has diminished, regional risks are coming

Govt plans more incentives for small investors in National Pension Scheme

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Looking to ease the withdrawal rules and provide more tax incentives, the government is planning to make National Pension Scheme (NPS) more attractive for small investors, said a media report. The Pension Fund Regulatory and Development Authority (PFRDA) plans to change the current rule of NPS where a subscriber can only withdraw a maximum of 60 per

Analysts see RBI easing key rates by 25 bps on May 3

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With the headline inflation falling to over three-year low in March, analysts and economists have turned so optimist that they expect Reserve Bank of India (RBI) to cut key rates by 25 basis points on May 3, even as it had earlier cautioned that room for monetary policy easing was limited. Analysts said that falling inflation coupled with recent corr

Q4 earnings season so far indicates robust profit growth despite muted revenues: Report

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The ongoing March quarter earnings season was highly expected to guide investors about the health of Indian economy and with the results announced so far, it appears that while slowdown is not over, India Inc has managed to arrest the decline in profit margins with cost cutting efforts, said a media report. A leading media agency’s research said

FIIs invests $11 billion in equity market in 2013 so far

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Foreign institutional investors (FIIs) pumped USD 823 million (about Rs 4,450 crore) into the stock markets in the month of April, taking the total investment tally to over USD 11 billion (Rs 60,072 crore) in less than four months of 2013 so far. FIIs had pumped in USD 1.2 billion (Rs 6,532 crore) during March, USD 4.57 billion (Rs 24,440 crore) in Fe

Robust Rabi crop will pave way for RBI to cut rates: Raghuram Rajan

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Adding to the growing optimism over rate cut next month, Chief Economic Advisor Raghuram Rajan on Friday said the likely robust Rabi crop season will help bring down inflation and pave way for the Reserve Bank of India (RBI) to cut rates. “The Rabi crop is likely to be good one. That will help bring inflation down. So as inflation comes down, t

Bihar likely to sign MoU with GAIL for natural gas supply

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Bihar is likely to ink Memorandum of Understanding (MoU) with Gas Authority of India Limited (GAIL) to use natural gas from the Jagdishpur-Haldia gas pipeline which will pass through four districts of Bihar Gaya, Aurangabad, Rohtas and Kaimur. “Branch pipeline would pass through 10 districts of Bihar, covering a distance of 621km. The commission

Rangarajan committee’s gas pricing formula meets opposition from different ministries

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The finance, power and fertilizers ministries have refused to accept the gas pricing formula of Rangarajan committee which recommended rise in base price to USD 8.8 a million British thermal unit (mBtu) from the USD 4.2 currently applicable for gas produced from Reliance Industries’ KG-D6 and a host of other fields. The formula has been rejected

FinMin plans to revise FDI norms again

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The finance ministry once again plans to tweak the Foreign Direct Investment (FDI) norms, after opening up sectors like retail, aviation, power, broadcast, during last September, said a media report. As per the reports, the ministry wants to minimize the layers of caps, clearly define the FDI break-up and foreign institutional investment (FII) sub-li

Govt starts probe into Saradha Group fraud; other chit funds too come under the lens

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The corporate affairs ministry on Thursday started enquiry into the alleged chit fund fraud by Saradha Group and also ordered investigation into businesses of 57 such similar deposit-taking companies, most of which are based in West Bengal. Earlier the ministry had refused to enquire the matter saying that chit funds were regulated by states and the

Parliament panel recommends abolition of STT

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Pitching voice for abolishing of the Securities Transaction Tax (STT), a standing committee of Parliament has urged the department of finance to conduct a study on the impact of Commodities Transaction Tax (CTT) on food inflation over a period of one year. This is for second time that the standing committee has recommended abolition of the STT after

Economic growth to return to 8% in next couple of years: Pranab Mukherjee

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Expressing confidence over economic growth, President Pranab Mukherjee said that growth rate would return to 8 per cent in next couple of years. “I am confident that with the measures being taken and through our collective effort it would be possible to return to the path of higher GDP growth around 8 per cent in next couple of years”, Mu

Govt urges S&P to upgrade India’s credit rating

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Armed with concrete plans to bring down the fiscal deficit of India, the government recently met representatives from rating agency Standard & Poor’s (S&P) to highlight the reforms undertaken and urge it to upgrade the credit rating of the country, said a media report. The government had earlier met representatives of Fitch Ratings for

Govt identifies 1.2 cr multiple LPG connections through KYC

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The public sector oil marketing companies have blocked approximately 1.2 crore multiple LPG connections in the last six months through the Know Your Customer (KYC) scheme. According to the statement, as an April 1, OMCs has identified approximately 75 per cent of such customers. This scheme was initiated to help the OMCs in identifying those who had m