Page 70 - Video Gallery

Meltdown adds to credit card woes

With a large number of people struggling to make credit card payments that has dampened the spirit of the banks to rope in new customers, the credit card business is at an all time low in Chennai. People are restricting unnecessary spending owing to the economic slowdown and consumer demand has gone down drastically. And as a result, credit card business has come down.

RBI to cut key rates

India's central bank RBI slashed its two key short-term interest rates on Wednesday in a bid to boost a weakening economy amid the slowest third-quarter growth in six years. The Reserve Bank of India reduced its key short-term lending rate for commercial banks, the repo, by 50 basis points to 5 percent, with the aim of encouraging banks to provide credit and maintaining liquidity.

Service tax, excise duty reduced

India cut factory gate duties and service taxes on Tuesday in an effort to boost demand and revive growth in Asia's third-largest economy as it reels under the impact of the global economic crisis. Warning of tough times ahead, the government, which is heading towards a parliamentary election due by mid May, cut the rate of central excise duty by 2 percentage points to 8 percent.

Mixed reactions to excise, service tax cut

Industrialists in IT hub Bangalore on Tuesday gave mixed reactions to central government's decision to cut factory gate duties and service taxes in a bid to boost demand and revive economic growth. Many welcomed the step saying it would help in fighting the current recessionary trend. On the other hand others said that the step was just a political gimmick ahead of general elections.

Gold touches record highs

Gold continued its record-breaking spree in India on Thursday as investor¿s poured money into the safe haven asset due to deepening global recession. But gold buyers stayed on the sidelines, as prices at record highs continued to hurt demand. Customers said social obligations forced them to buy gold or otherwise they would have postponed buying. Gold futures on the continuous charts was 0.70 percent higher at 15,670 rupees per 10 grams, after hitting a record of 15,706 rupees earlier in the session.

Mixed reactions to India's interim budget

Financial institutions in India give mixed reactions to interim budget 2009/ 10 presented on Monday. According to the Director General of Federation of Indian Chambers of Commerce tax rates should come down. Likewise Harsh Pati Singhania, the president of FICCI feels that the interim budget has set the direction for the next government and gives a clear message on what steps are necessary in the months following the general election.

Sunil Jain: A copybook Budget

Sunil Jain: A copybook Budget

Mukherjee presents sixth Interim budget

Presenting the sixth budget of the UPA government, acting finance minister Pranab Mukherjee, said the agenda of the Manmohan Singh government was of change and every effort has been made by the government to deliver on the commitment. He said the economy grew at 9 per cent for three straight years.

Interim budget; focus on farm, defence

Indian government paraded its economic achievements on Monday and promised help for the rural sector as it tried to shield the economy from a global credit crunch and stem job losses with elections just weeks away.Acting Finance Minister Pranab Mukherjee began charting spending plans for the 2009-10 fiscal year from April to July, a stop-gap measure to take care of essential spending during and in the immediate aftermath of general elections.

FICCI places growth projection at 7%

India's Apex business Chamber, the Federation of Indian Chambers of Commerce & Industry or FICCI on Friday placed India's growth projection for 2008-09 at 7% rejecting the 5% rate projected by the International Monetary Fund. The IMF had projected a 5% growth for India in 2009 on the plea that world growth rate would be falling to its lowest level since the Second World War.

PM Panel sees 7.1% growth

The Chairman of Prime Minister¿s Advisory Panel on Friday said that India is likely to grow close to 7 percent in 2008-09. It may also expand at a slightly faster pace next fiscal but would depend on an improvement in the global economy. The Reserve Bank Of India has cut its key ¿ lending rate by 350 basis points since October, while the government has cut duties on manufactured products by 4 percentage points and pledged higher spending even at the cost of a wider fiscal deficit.

Next fiscal 'very difficult': Ahluwalia

India's deputy chairman of the Planning commission on Friday asserted that all indications for the next fiscal year point to a 'very difficult year' globally. He also added that the Government of India would take more steps to shore up the nation's economy. Further announcing a second round of policy measures intended to boost the slowing Indian economy, he noted that there would be no further fiscal stimulus measures in the current fiscal year that ends on March 31.

India is nowhere near recession

India is nowhere near recession said P Chidambaram India's former finance minister. While addressing the members of Rajya Sabha, on Tuesday he said that India is only affected by global growth. Chidambaram further added that very sharp rise in international commodity prices especially crude and metals caused the upward trend in inflation that was witnessed since the month of April.

Economic outlook uncertain: Subbarao

The Governor of Reserve Bank of India or RBI on Thursday said that the near-term outlook for the Indian economy remains uncertain, and the RBI is ready to follow up last weekend's aggressive rate cuts if needed to boost the economy. Asia's third-largest economy is struggling to fend off damage from the global credit crisis. Last weekend, government unveiled a fiscal package including 4 billion dollar of extra spending.

Recession hits IT sector

Global recession trends and weak dollar has hit India's IT industry with many companies resorting to cost cutting measures. The key challenges faced by the industry now are inflation and the psychological impact of the U.S. crisis, leading the companies to hit the panic button. Bonuses, perks and many other benefits have gone missing as companies look to cut cost. However, many feel, that the cost cutting is not being done in a democratic manner.

Volatile oil prices put aviation industry in a fix

The sharp rise in fuel prices has pushed global aviation industry in crisis with 5.2 billion losses this year and the forecast of 4.1 billion next year. Bisignani called for urgent action to help Indian carriers to weather away the storm of high costs and falling demand. The global crisis resulting from high oil prices is hitting India hard.

Aviation growth touches new low

India¿s air traffic reported the sharpest fall in air passengers in the four years since aviation boom started in summer 2004. With constant fare hikes, air passenger demand measured by passengers flown in August shrunk to 17.42 percent compared with 2007. Only 29.22 lakh people took to the sky in August. In entire 2007 and this year so far, this figure remained over 3 million, except last December and this May when over 4 million people flew within the country.

RBI hikes repo rate by 50bps

This is the first time since October 2000 that repo has touched 9 per cent while CRR touched 9 per cent for the first time since late November 1999. Banks are likely to respond to the RBI action over the next few days though bankers indicated the possibility of fresh increase in lending and deposit rates.

Less rain may hit economy

Storm clouds of a different kind are gathering on the macro-economic horizon and they have nothing to do with surging global crude oil prices. The monsoon has played truant across large parts of India, with western and southern India reeling under the impact of deficient and scanty rainfall. As of July 23, crucial crop-growing regions like Maharashtra, north interior Karnataka and Saurashtra and Kutch in Gujarat, among others, are bearing the brunt of deficient rainfall.

Inflation stable at 11.89%

The wholesale price index based annual rate of inflation stood at 11.89 per cent for the week ended July 12, marginally lower than the 11.91 per cent reported in the previous week. The annual inflation rate was 4.76 percent during the corresponding week last year. Inflation for the week ended May 19 was revised upwards to 8.66 per cent, up from 8.10 per cent reported earlier.