document.writeln("

Producer price index to replace WPI next fiscal
New Delhi: The government is planning to replace the wholesale price index (WPI) by the producer price index (PPI) by next fiscal. The wholesale price index , currently used to measure changes in the average price level at the wholesale and retail levels of transactions in the country.

The government indicated that the WPI would not be dismantled all together and would be restructured and would continue side by side.

In due course of time, the services sector would also be added to the PPI.

The government says that as a preliminary move, the indexing of all transactions in the case of manufacturing and agriculture would be at the point of first sale. Due to non-availability of authentic and quality data, the PPI may exclude some inputs from agricultural and services sectors.

Exports and imports would also be redefined; any import where the point of sale is not in India would not enter PPI.

Collecting price data for the services sector has turned out to be a challenging task for the government. The Reserve Bank of India and the Economic Advisory Committee have already begun the exercise to measure price index for certain types of services.
Back to News Review index page  

India behind China as FDI hot spot: UNCTAD
New Delhi: Transnational corporations find India the most attractive global business destination after China, according to the World Investment Report 2005 released by Unctad.

85 per cent of the experts and 87 per cent of the corporations covered by the UNCTAD survey on FDI prospects for 2005-06, among 81 of the world's largest transnational corporations and 74 investment experts, found China to be the most attractive location.

India was ranked the third most attractive global destination by 42 per cent of the experts and the second most attractive location by 51 per cent of the corporations.

The United States, Brazil, Russia, the United Kingdom and Germany are some of the other countries that figure among the top 10 business destinations in the survey.

In India FDI flows registered an increase of 2 per cent in 2004. Of this, inflows to the developing countries have increased by 40 per cent to $233 billion.

The report also noted that proportion of growth in outward FDI would be from Chinese, Indian and South Korean firms, including through large-scale overseas mergers and acquisitions.
Back to News Review index page  

Railways extend freight rebate
New Delhi: The Indian Railways has extended the lean season rebate of 15 per cent till November 30.

The Railway also said the 20 per cent discount given for booking goods on wagons, which usually run empty, would be made a permanent feature.

Road transporters are expected to announce a major hike in freight rates in view of the sharp rise in cost of diesel. The measures are being taken to increase volumes and reduce the cost of carrying the freight.

The 15-per cent concession scheme, which came into effect on July one and was to end tomorrow, would now continue till November 30 for incremental traffic.

The Railway was providing a 20-per cent discount on 'empty flow direction' for the last three months but has made it a permanent feature as customers were unwilling to shift from their regular road transporters for such a short period, the official said.
Back to News Review index page  

Strike cripples normal life in WB
New Delhi: The day-long strike by Left trade unions crippled work in public sector banks and insurance companies and government undertakings to protest the UPA Government's economic policies.

In left ruled West Bengal life almost came to a standstill with public transport, including train services, remaining paralysed. Only two flights - one each from Delhi and Mumbai - landed at Netaji Subhas Chandra Bose International Airport which was the worst-hit by the Airport Authority of India Employees' protest against privatisation of Delhi and Mumbai airports.

An estimated 35 to 40 per cent flights were cancelled due the strike, mainly by the ground staff, in which the air traffic controllers did not take part.

Apart from Kolkata, Delhi and Mumbai, the hub of the country's air operations, were badly affected by the strike.

However, in Chennai, Thiruvananthapuram and Kochi airports flight services remained unaffected while there was some impact in Bangalore and Hyderabad where nine and 11 flights, mostly Kolkata-bound, were cancelled. In Ahmedabad all 20 flights operated normally.

The central government said that operations at the airports throughout the country, including Kolkata, remained unaffected during the dawn-to-dusk strike.

While private sector banks operated as usual, state-owned banks and insurance companies were almost completely paralysed by the strike putting people and business into severe discomfort in view of the fact on Friday also there will be no public transactions because of "closing".

ATM operations came to the rescue of a harried public.
Back to News Review index page  

Committee formed for regulating TV channels content
Mumbai: The government has formed a committee, comprising representatives from the industry and social organisations, that would lay down a widely debated policy for regulating content on television channels and films. The committee would give its recommendations by this year-end.

The 30-member committee would have ten representatives each from the entertainment industry, social organisations and government said SK Arora SK Arora Information and Broadcasting Secretary.

The I&B Secretary, who heads the committee, said against the exhaustive guidelines laid down by international regulators like Ofcom in the UK and Federal Communications Commission in the US, India just had about 2-3 page guidelines.
Back to News Review index page  

Cabinet approves accession to Kyoto convention on customs
New Delhi: The government has approved accession to the 'protocol of amendment to international convention on simplification and harmonisation of customs procedures' adopted by World Customs Organisation in 1999.

This would improve India's image in so far as facilitating international trade is concerned, an official release after the Cabinet meeting said.

Accession formalities would be completed this year while the standards and transitional standards of 'general annex' would be implemented within three and five years respectively, after the convention comes into force.
Back to News Review index page  

Free sale sugar quota for Oct-Dec released
New Delhi: The government has released 37-lakh tonne sugar as quota for indigenous free sale for the quarter, October-December, 2005.

The total availability of sugar during the quarter now stands at 44.02 lakh tonnes, which includes 2.16-lakh tonne levy quota for each of these three months and festival quota of 54,155 tonne, an official release said.
Back to News Review index page