GDP growth at 5.5%, balance of payments surplus
New Delhi: The Central Statistical Organisation has said that India’s gross domestic product grew 5.5 per cent in the first quarter of 1999-2000. During the same period in the previous year, the growth rate was 3.6 per cent.

The manufacturing sector performed well during the current fiscal, though the electricity sector has lagged behind. For the current fiscal, the budget estimate for GDP growth is 6.5 per cent, though the department of statistics has projected a 5.8 per cent growth rate.

The balance of payments for the period April to June 1999 is a surplus figure of $1.5 billion compared to a $1.8 billion deficit in the year-earlier period. This is on account of the sharp increase in portfolio investments and flow of banking capital. The banking capital consists of assets, liabilities and non-resident Indian deposits of commercial banks.

By August 1999 the government's fiscal deficit rose more than 26 per cent to touch Rs.48,216 crore. The figure as on August 1998 was Rs.38,149 crore.
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SBI slashes forex brokerage rates
Mumbai: The State Bank of India has announced that from 1 October 1999 it would bring down brokerage rates on foreign exchange transactions. The rates will now be a maximum of Rs.1,000 per $1 million of spot transactions and Rs.1,250 per $1 million for long-swap deals.

The Foreign Exchange Dealers Association of India had earlier fixed these rates at Rs.1,500 and Rs.2,000 respectively. Under Reserve Bank of India instructions, Fedai freed the brokerage rates.

The State Bank of India accounts for about 40 per cent of the volumes in the forex market. The Foreign Exchange Brokers Association of India has said that it will keep the SBI rates as the ‘floor rate and will not accept deals below these rates.
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VSNL projects 20% fall in rates
Mumbai: S K Gupta, chairman and managing director, Videsh Sanchar Nigam Limited, has projected a decline in tariffs for international calls by about 20 per cent per annum for the next three to four years. He said that VSNL will benefit if the outgoing volumes from India increased.

VSNL is planning to enter into domestic long distance telephony, which will be privatised in the year 2000.
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ICICI asks IDFC for dividend
Mumbai: According to a report in The Economic Times, ICICI Ltd. has asked Infrastructure Development Finance Corporation to pay dividend to its shareholders. ICICI holds 6 per cent in IDFC’s Rs.1,000 crore equity. The RBI and the government together hold 35 per cent. There are 14 other domestic and foreign shareholders in IDFC.

The IDFC was set up to fund infrastructure projects. Since it has so far not funded any project and has kept all its funds in treasury bills, ICICI feels that the returns that IDFC is getting should be shared.
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Steel prices go up
Mumbai: The Steel Authority of India Ltd., Tata Steel, Essar Steel, Ispat, Lloyds and Jindal Iron and Steel have all raised their steel prices in the range of 3 to 5 per cent. The price increase works out to Rs.500 to Rs.750 per tonne.

In the year 1999-2000, this is the first major price hike by the steel industry. Global steel prices have risen about $70 per tonne during the last six months and are currently around $275.
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IDBI, Principal Group set to decide on shareholder agreement
Mumbai: The Industrial Development Bank of India’s top executives will visit the headquarters of the Principal Financial Group to finalise the shareholders agreement. The memorandum of understanding states that Principal and IDBI Investment Management Company will be joint venture partners. The final agreement should be signed within six months of the MoU.
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