News & Events
| Apparel exports down 2% in Dec After growing 24 per cent in November, India's apparel exports entered the negative zone by registering a decline of about 2 per cent to $1.14 billion in December due to fall in demand in western markets like the EU and the US. The exports stood at $1.16 billion in December 2010, according to the data provided by the Apparel Export Promotion Council (AEPC). ?There is a demand slowdown in major markets like the US and Europe due to fragile economic growth,? an AEPC official said. 04 Feb 2012 00:00:00 GMT Dairy sector seeks duty cuts to spur growth, demand In a bid to promote the processing and packaging of milk in the country, the dairy sector has sought exemption of excise duty and value added tax (VAT) on equipment and machinery in the upcoming Union Budget. Besides, the industry has also sought a uniform VAT rate on all milk products at 4 per cent, which could help drive consumption of such products. The Indian Dairy Association believes that duty exemption on equipment and machinery would encourage more investments in processing and packaging of milk and milk products. Only 15 per cent of the milk produced in India is processed and packed, thereby leaving scope for adulteration, unhygienic handling and distribution. About 46 per cent of the milk produced in India is in liquid form. 04 Feb 2012 00:00:00 GMT Tyre-makers seek duty-free import of natural rubber Under margin pressure due to the rising prices of natural rubber, the end-user industries have asked the Government for duty-free import of two lakh tonnes of rubber through a Government agency, besides a ban on exports. The user-industry hopes that with more natural rubber earmarked for domestic use, the prices would drop or at least stabilise. Mainly consisting of tyre companies, besides small enterprises making products like shoes and household items, the user industries have also asked for a ban on futures trading in rubber, besides a lowering of the import duty to 10 per cent from 20 per cent and an increase in the import duty for finished products. The joint appeal of the Automotive Tyre Manufacturers' Association (ATMA), All India Rubber Industries Association (AIRIA) and Indian Cycle and Rickshaw Tyres Manufacturing Association has been sent to the Finance and Commerce Ministries. The delegation has also approached the Planning Commission after it met the Prime Minister, Dr Manmohan Singh, in February this year. 04 Feb 2012 00:00:00 GMT NMDC eyes four more overseas buys each in Russia, Brazil, Mozambique and Australia India's largest iron ore producer NMDC, which has acquired a 50% stake in the Australian iron ore firm Legacy Iron Ore recently, is set to begin due diligence process to acquire four more overseas mines, one each in Russia, Brazil, Mozambique and Australia. "The four mines include one coking coal mine each in Russia, Mozambique and Australia and an iron ore mine in Brazil. Along with the rock phosphate mine of Minemakers in Australia for which negotiations have already began, we are currently pursuing five foreign acquisitions," the NMDC CMD NK Nanda told ET. Refusing to identify the overseas coal and iron ore firms that NMDC is looking to acquire, Nanda said, "We have signed non-disclosure agreements with these companies and the due diligence process is going to begin shortly." 04 Feb 2012 00:00:00 GMT Services grow fastest in 6 months, giving hope The worst of the slowdown may be behind us. Services activity in the country grew at its fastest pace in six months in January, driving up the HSBC India Composite Index ? which covers both the manufacturing and services sectors ? to a high 59.6 from 54.7 in December. The jump signalled the sharpest increase in nine months.According to HSBC's India Purchasing Managers? Index, the services sector activity accelerated to 58.0 in January from 54.2 in December, led by hotels & restaurants and financial intermediation, while manufacturing PMI rose to 57.5 in January from 54.2 in December. A reading above 50 indicates growth. 04 Feb 2012 00:00:00 GMT Grain production to touch record high of 250 mt this year India's grain production will reach an all-time high of 250.42 million tonne this crop year, according to official data released on Friday, which could assist the the government's effort to implement the food security law and keep open market supplies steady to curb inflation. The record production is driven by a bumper harvest of rice and wheat, which account for three-fourths of the total grain output. The farm ministry data are the latest statistics to bear out the economy's resilience. While industrial output picked up in November, credit flows to the manufacturing industry too rose in the month by 1 percentage point, apart from a speeding up in the manufacturing and services sectors. 04 Feb 2012 00:00:00 GMT Cancellation-hit telcos won't pull their punches There's still plenty of fight left in the telecom companies hit by the cancellation of 122 licences issued in January 2008. Uninor, Sistema Shyam, Etisalat DB and others are ready to dig in their heels and take legal action. Telenor, Unitech's joint venture partner in Uninor, has gone to the extent of saying it may exit India. It is writing off about Rs 3,500 crore from its books related to its Indian investment following the licence cancellation. Sistema is expected to file a review petition against the Supreme Court order, while sources in S Tel say it may also take legal recourse. Etisalat DB is exploring all the legal options available. Videocon group chairman Venugopal Dhoot declined to comment on the future course of action. But, company insiders confirmed its lawyers would advise on the issue soon. Telenor CEO Jon Fredrik Baksaas, when asked in an interview with news agency Reuters in Oslo whether the company should heed calls by several investors and analysts to quit the Indian market and cut its losses, said, ?That is one alternative that is on the table... the ruling is a very serious attack on our investments, (which are) based on the licence framework that was spelt out in 2008.? 04 Feb 2012 00:00:00 GMT Dilute stakes in PSUs, keep corporate tax rate unchanged: India Inc India Inc on Friday urged the government to continue with fiscal stimulus by retaining excise and service tax at the current level, while keeping the corporate tax rate unchanged. It suggested that fiscal consolidation could be brought about by the government diluting its stake in state-run companies rather than increasing the industry's tax burden. Top Indian corporates raised these points during their meeting with finance minister Pranab Mukherjee as part of the customary pre-Budget meetings. Against the expectation of a full house, the meeting turned out to be damp squib with a slew of big corporate leaders giving it a slip. Speaking to media after the meeting, Ficci president RV Kanoria said central excise and service tax rate should be maintained at 10% and corporate tax at 30%. "We have talked about disinvestment and the government could evolve measures like privatising coal mines," he said. 04 Feb 2012 00:00:00 GMT |