ADB sees Indian economy slowing down to 7.6 per cent in 2006
Hong Kong: The Asian Development Bank has said that the Indian economy may slow down a little to 7.6 per cent in 2006 and 7.8 per cent in 2007 as consumption and investment get affected by higher inflation. To achieve over 9 per cent economic growth, India has to step up investment and raise capital productivity along with determined reform efforts, the bank said in its annual Asian development outlook report.

The bank said growth, particularly in consumption and investment, will be held back by the fuel price adjustment process to reduce domestic petroleum subsidies, which would boost inflation. Rising interest rates will have some modest negative effects on investment, it said. India's growth has averaged more than 8 per cent over the past three years driven by broad-based domestic demand and expensive business dynamics.

ADB said India faces two key policy challenges as it continues its structural transformation. First, India must maintain consolidation of its fiscal position, while ensuring spending on infrastructure improvements to support industry and services development, and investment to advance rural productivity and human development.
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Exports of oil meals up by 64 per cent in 2005-06
New Delhi: Oil meals export increased by 64 per cent at 44, 23,025 tonnes during 2005-06 as compared to 26, 90, 201 tonnes last year. During March, oil meals export went up by 224 per cent to touch 8,09,925 tonnes as against 2,50,352 tonnes in the corresponding month last year, according to the latest data compiled by the Solvent Extractors' Association of India (SEA).

During the last quarter of the fiscal 2005-06, oil meals export recorded an increase of 173 per cent to touch 20,20,900 tonnes as against 7,39,394 tonnes in the year-ago period.

SEA said in the first quarter of 2005-06 the oil meals export dipped by 34 per cent as compared to last year on account of lower production and crushing margin.

However, with the improvement in crushing margin, the production stepped up leading to revival of export. Besides, the target plus scheme announced by the ministry of commerce to promote export also pushed the export at record level during the last quart er, it added.

Vietnam is among the highest importers of oil meals at 8,85,475 tonnes in last fiscal, followed by South Korea, Japan, China and Indonesia. In terms of growth, exports to China jumped by 311 per cent to reach 6,77,875 tonnes as against 1,64,950 tonnes in a year-ago period.
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India should become outsourcing hub for manufacturing: Murthy
Bangalore: Infosys chief mentor N R Narayana Murthy said India should now look at becoming the world's preferred manufacturing destination as this would create millions of jobs in rural areas.

He added that, "In India, when one talks about outsourcing and offshoring, one only thinks in terms of software." He added, "Frankly, I believe we have to go beyond that and include manufacturing in that definition as China has done."

He said 26 per cent of the GDP of India is produced by a whopping 65 per cent of the people in rural areas by way of agriculture. "It means...you are looking at $320 (per person per capita GDP) for 65 per cent of people. What it means is less than a dollar a day," he said.
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Govt. to introduce integrated food law soon: Kamal Nath
New Delhi: The Government plans to introduce an integrated food law to help meet requirements of international trade and make Indian farm products globally competitive, commerce minister Kamal Nath.

"The proposed legislation intends to set up a single line if command from the present multi-level control," he said at an award function of Agricultural and Processed Food Products Export Development Authority (APEDA) here. According to him total agri-exports during 2004-05, including plantations and marine items, grew by seven per cent. However, India's share in global trade of agro products at 1.4 per cent is far below potential, he was quoted as saying in an official release.
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Government extends capital subsidy scheme for textile processing
Mumbai: The Government has extended the 10 per cent subsidy given to textiles processing industry for one year to strengthen the sector. Textile commissioner, J N Singh said, "Processing is the weakest link in the textile value chain. It is also largely a fragmented industry. Hence, to strengthen this sector, the Central Government decided to extend the 10 per cent capital subsidy scheme meant for the sector by one year till 31 March 2007."
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Bihar Electricity Board in financial straits
Patna: The Bihar Electricity Board is in dire financial straits as it is spending Rs 118 crore for buying power every month against an income of just Rs 75 crore. According to a white paper brought out by the NDA government, the establishment costs of Rs 51.71 crore per month combined with monthly deficit of Rs 107 crore makes it tough for BSEB despite the State government's monthly grant of Rs 34.37 crore to meet the resource gap. Hence, each unit sold at current tariff results in loss of Rs 1.8 per kwh to the board.

Added to this, the State government has securities (the responsibility of discharging old energy purchase dues) of NTPC worth Rs 1,593 crore for 2003-04 and Rs 482 crore for 2005-06. The state government is also servicing loans taken from Rural Electrification Corporation, it said.

The white paper said that the BSEB has made little effort to improve revenue collection and reduce establishment costs, the document said. Transmission and distribution losses stand at 38 per cent though aggregate technical and commercial losses, including revenue collection inefficiencies, are over 60 per cent.
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