document.writeln("

Planning Commission's mid-term appraisal scales down GDP growth
New Delhi: The Cabinet has cleared the Planning Commission's mid-term appraisal (MTA) of the economy with all its recommendations. Following the Cabinet clearance the MTA would now be placed before the National Development Council next month.

"The Cabinet today approved the Mid-Term Appraisal of the Tenth Plan of Planning Commission. The MTA document will now go to the National Development Council," Finance Minister P Chidambaram said after the meeting.

The economic growth target has been scaled down from 8.1 to 7-8 per cent annually during 2002-07. Commenting on the projections the minister said, "the actual growth in the first three years has been less than what it was approved in 10th Plan."

"In first year itself (2002-03), growth was 4 per cent," he said. GDP grew by 8.5 per cent in 2003-04 and the growth rate is estimated to be 6.9 per cent in 2004-05. MTA pitched for sale of minority equity stakes in profit-making PSUs while retaining government holding at 51 per cent so as to yield substantial resources in the years ahead.
Back to News Review index page  

PM: India committed to open economy
Washington: In an op-ed article in 'The wall Street Journal' Prime Minister Manmohan Singh has said that India was committed to remaining an open economy. Singh said that ideas of "brain drain" have been replaced by "brain gain," in a new India.

If a commitment to remain an open society is one of the pillars of India's nationhood, the other is its commitment to remain an open economy, he said.

An open economy guarantees freedom of enterprise, respects individual creativity, and mobilizes public investment for social infrastructure, he added. The Prime Minister also noted that today there is a greater willingness internationally to work with India and to build relationships of mutual benefit.

The Prime Minister also noted that the Indian industry and Indian professionals have demonstrated their ability to step out with confidence from a highly protected environment into a mercilessly competitive one.
Back to News Review index page  

Agni III test flight slated for year end
Hyderabad: India has the technological capability to build long-range missiles of greater reach than the Agni-III, whose first test flight is slated for the end of 2005, according to Dr Ram Narain Agarwal, Programme Director of the Agni project as well as Director of the Hyderabad-based Advanced Systems Laboratory (ASL).

Agni-III, a long-range surface-to-surface missile, is configured for a range of 3,000-3,500 km. The missile would undergo a total of three test flights, including one with the user. It can carry a warhead, both conventional and nuclear, of 1-1.2 tonnes. The new system integrated Agni-III version should be ready for production and induction into the defence forces during 2007-08, Dr Agarwal said.

Speaking to newspersons on the occasion of being honoured with a lifetime achievement award by the Defence Research and Development Organisation (DRDO), Dr Agarwal expressed confidence that longer- range missiles beyond Agni-III could be built within 3-4 years, with the expertise already attained by scientists and industry under the country's missile programme.

Missile scientists have developed a host of critical technologies that include re-entry, guidance and control, mission sequencing, all carbon composite re-entry heat shield, mobile launch systems and modern launch complex. Agni class missiles fall in the Intermediate Range Ballistic Missiles class while the Inter Continental Ballistic Missiles are in the range of 4,500-10,000 km.

The ASL has already handed over Agni-I (range of 2,000 km) and Agni-II (shorter range version of 700-800 km) to the defence forces, which have inducted them as per their requirement, Dr Agarwal said.

The Agni missile system would cost anywhere between one sixth and one eighth of an equivalent system developed by advanced countries, he said.
Back to News Review index page  

Fitch affirms India's sovereign ratings
Mumbai: Rating agency Fitch has affirmed India's foreign and local currency ratings at 'BB+' with a stable rating outlook. However, it has warned that the high fiscal deficit prevented the country from achieving an investment-grade rating in the near term.

"Despite India's external strengths such as solid external liquidity and a declining external debt burden, its high fiscal deficit prevents the country from achieving an investment-grade rating in the near term," Fitch said in a release.

Future ratings would hinge upon the progress made by authorities to improve public finances.

"Swifter deficit reduction would place public debt on a stronger footing and encourage a virtuous cycle of lower interest rates, greater private investment and higher economic growth, all of which will be supportive of higher sovereign rating," senior director of Fitch's soverign rating team, Shelly Shetty said.

The rating agency said the general government debt stock of over 80 per cent of GDP is significantly higher than the 'BB' median and a further build-up in public debt would undermine the ability of the government to respond to shocks.

With rapid build-up in forex reserves that reached $137 billion at the end of 2004-05, India is estimated to have turned into a net external creditor, it said.
Back to News Review index page  

Ministry of Company Affairs to digitise company data
Hyderabad: The Ministry of Company Affairs (MCA) has initiated moves to digitise the vast data on companies, simplify procedures and help businesses by streamlining processes through electronic filing systems.

The MCA Secretary, Ms Komal Anand, has said that the Ministry has embarked on a process to digitise six-crore public documents and soon "we will have 55 front offices apart from 20 offices of the Registrar of Companies all over the country."

Speaking at an interactive session on `Simplified Exit Scheme (SES) - 2005', organised by the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) here, Ms Anand said the front offices are to be manned by Tata Consultancy Services for a contractual period of six years.

This is part of `Project MCA - 21', a programme to simplify procedures and do away with papers and usher in e-filing systems. "About 6.07-lakh companies were registered as of March 2005, but the Government needed to know how many were actually functioning and how many were not by taking stock.

About 40 per cent of companies were either not filing their balance-sheets and annual returns or delaying the process," she regretted.
Back to News Review index page  

IDC report: PC market grew 29 per cent in 2004-05
New Delhi: The Indian PC market has grown 29 per cent in 2004-05 with sales of over 3.6 million units, according to IDC India's quarterly PC tracker report, fuelled by strong demand from the notebook and consumer desktop markets.

"Consistent fall in notebook prices coupled with innovative schemes and promotions led to the growth. There were massive investments in the private educational sector that provided the momentum for growth in this market. For notebooks there was an increase in run rate business in the last month of the quarter," IDC said in a press statement.

Uncertainty about the implementation of VAT, anticipation of price drops post-WTO and fluctuations in the supply of components did not dampen the overall growth.

While the number of desktops sold was 33,57,424, the figure for notebooks was 2,21,390 and 67,093 for X-86 servers, totalling 36,45,907 units. HCL led the desktop market while HP led the notebook PC market. In the overall PC market, HP claimed the number one spot followed by HCL and IBM.

"On a base of three million unit shipments, a further growth of nearly 30 per cent is no mean achievement and the Indian PC industry needs to be complimented," IDC said.

The overall desktop segment, comprising consumer and commercial desktops grew 19 per cent in 2004-05. The consumer desktop market in India grew 22 per cent year-on-year in the first quarter of 2005. The commercial desktop segment grew 14 per cent year-on-year basis to total at 6,08,000 units during the first quarter.

Notebook sales grew 80 per cent during 2004-05, driven by corporate and government demand while X86 server shipments in India grew an 26 per cent year-on-year.
Back to News Review index page