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Chidambaram strikes upbeat note on economic growth
Chennai: Union finance minister P Chidambaram has asserted that India's economic performance for the second quarter will be "as good" as the first quarter's 8.1 per cent. He also said that the economy was showing "enormous resilience" despite natural calamities.

The minister pointed out that while the country's exports were growing at 23 per cent in dollar terms, imports were growing at a faster rate of 37 per cent, which was the reason for the merchandise trade deficit of US$14-15bn in the first quarter. The minister however said that the Govt. was not worried. The Finance Minister was speaking at the 47th AGM of Capexil last night. He said that by the end of this year, the trade deficit would be US$50-55bn, which "India can stake in its stride today."

Chidambaram said though there were some concerns over the value of the rupee, the forex reserves would not come down. "We will add another $9 billion (in forex reserves) this year, compared to the end of last year," he added.
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IEG predicts 7 per cent GDP growth for the fiscal
New Delhi: According to the Institute of Economic Growth (IEG), the Indian economy will clock a growth rate of 7% for entire 2005-06 as against 6.9% last fiscal.

In its latest monthly monitor, the economic think-tank has said that inflationary expectations still persist in the economy, given the growing money supply and high world oil prices. It has also pointed out that though both the industry and services sectors are growing below the 2004-05 levels, it is still above the average growth.

Agriculture, which has shown a growth of 2% in Q1 and whose share in the total GDP fell below 20% for the first time, is expected to do better this year, particularly in the rabi season compared to last year, it said.

The institute predicted that wholesale prices-based inflation rate, which was 3.75% in mid-September, would stand at 4.15%, 4.4% and 4.8% for October, November and December, respectively.

Industry, which grew about 9.6% in Q1 will not be able to sustain the growth and end up growing at 7.2% during the current fiscal, IEG said.

The growth of index of industrial production (IIP) fell to 6.7 per cent in July, 2005 compared to 11.7 per cent in the previous month, it said. Negative growth in both mining and electricity sectors by 0.4 and 1.2% respectively has led to this fall in overall IIP growth.
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Chidambaram says Govt. will consider DEPB grievances
Chennai: The finance minister, P. Chidambaram, has hinted that the income tax on profits on sale of duty entitlements could be abolished.

"Your grievance about DEPB (Duty Entitlement Pass Book) will be addressed by a suitable amendment to the law," he told a gathering of exporters at the 47th Annual General Meeting of Capexil (formerly Chemicals and Allied Products Export Promotion Council).

DEPB is one of the export incentives, which gives exporters a tradeable entitlement to import goods duty free up to a prescribed value. The levy of income tax on profit on sale of DEPB has been a major concern because exporters have been facing notices from the tax authorities and old cases have reopened.

The Federation of Indian Export Organisation (FIEO) has said that exporters were being harassed on technical grounds and the huge demands raised by income tax authorities are forcing them to close their business. The profits earned through exports have already been ploughed back in the manufacturing units to expand and modernise them and none of the exporters have finances to pay for such unjustified demands.
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India begins pilot test of hydrogen use in vehicles
Faridabad: India has begun a pilot test in the use of hydrogen in vehicles, through a mix of hydrogen and CNG. Initially, five percent hydrogen will be mixed with CNG and the percentage would be gradually increased to reach the optimum level.

"This is a historic day. It is for the first time in the history of India that hydrogen has been mixed with CNG for running automobiles,'' petroleum minister Mani Shankar Aiyar said at a function held at Indian oil's R&D Centre here.

Presently, India imports 76 percent of its crude oil requirement and this is likely to rise to 85 percent in the next 20 years.

Aiyar said like the hydrogen-CNG mix vehicle, IOC was also pilot testing running vehicles on bio-diesel. Commercial use would begin once its economics were established, he said.

Indian Oil Corporation chairman Sarthak Behuria said the company will increase its expenditure on research and development to Rs1,136 crore in the 11th Plan period from Rs700 crore during the 10th plan period.
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Gold jewellery exports to cross US$5bn in 2005-06
New Delhi: Commerce minister Kamal Nath said on Sunday that the government was according "extreme focus" to the jewellery industry, even as India's exports of gold jewellery were likely to cross US$5bn this fiscal, up from US$3.8bn in 2004-05.

"Gold jewellery is an extreme focus product for the government. Utmost efforts have been made to increase exports of gold jewellery, both plain and studded," the minister said while inaugurating a seven-day gold exhibition here.

The minister said the sector had been neglected in the past and needed to move more towards exports, noting that a medium-term strategy evolved by the government for the gold jewellery industry had several components.

Among them was the hallmarking of jewellery to develop the Indian brand in the global jewellery market, integration of the supply chain, joint ventures with leading suppliers, and developing intelligence on key markets.

"Approximately three million artisans and goldsmiths are currently employed in the gold jewellery sector," the minister said, adding the sector accounts for around 18 percent of India's total gems and jewellery exports.
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Assocham study : Starting salary levels increase four-fold in five years
New Delhi: An Assocham Eco Pulse study has said that the starting salaries of fresh graduates has increased four-fold in the last five years going up from Rs2,500 in 2000 to Rs10,000 in 2004.

In case of BCA and BSc (information science) streams, salary levels have gone up to as much as Rs10,000-15,000 in last two academic years, it said.

Companies from new economy sectors like IT and ITES, certain revamped manufacturing sectors, banking and hospitality have started taking interest in campus recruitments, it said.

The study also found that firms were arranging educational programmes for their fresh recruits.
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