NCAER: Business confidence at highest level since Nov '94
New Delhi: The Business Confidence Index (BCI) has touched the highest point in the first quarter of 2006 (January-March)- at 154 - since November 1994, the National Council of Applied Economic Research (NCAER) said here.

Although, the BCI is reflecting an increasing trend from October 2001, its growth momentum from April last year is petering out, the Council said.

It added that increase in business sentiments and retardation in pace of growth of the BCI is more or less in line with the growth trend of industrial production and manufacturing sector GDP.

The rating for macro indicators — overall economic conditions and the investment climate — rose by 2.5 percentage points and 2.2 percentage points respectively.

Increasing industrial production, buoyant exports and more than 8 per cent GDP growth in 2005-06 are some of the reasons for positive macro sentiments.

But impact of rising interest and commodity prices in the form of oil prices is being reflected on the future financial position of firms.
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Dep. of Posts to invest in the stock market from Sept. 2006
New Delhi: The ministry of finance has cleared the way for the Department of Posts (DoP) to invest up to Rs10,000 crore from its life insurance schemes in the stock markets.

Starting September, as per the decision, the DoP can take a maximum of Rs10,000 crore from the Rs14,000 crore assured by its rural insurance customers to the stock market.

According to DoP officials, it is necessary to create a 'level playing field' in the life insurance business, and the decision has to been seen in that particular light. The DoP has engaged international consultant A. F. Fergusson to explore ways to make the DoP's market foray a safe bet.

At present, the DoP has one life insurance scheme for the rural areas and another for government employees. After September 2006, the finance ministry will hold back the special depository rates (SDR) on investments in both these schemes.
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EGoM on SEZ to meet next week
New Delhi: The empowered group of ministers (EgoM) which will study the minimum area required for special economic zones is likely to take up the issue at its first meeting next week.

The EGoM, headed by defence minister Pranab Mukherjee, set up to review the land size issue meets barely over a month after the commerce ministry notified the SEZ Act and the SEZ rules.

The ministerial group will shortly take a decision on the size of SEZs.
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Pharma sector to register 11 per cent growth: Assocham study
New Delhi: The pharmaceutical industry is expected to register a growth of 11 per cent, enhancing its size to Rs60,000 crore by 2007-08 as against Rs43,290 crore in 2004-05, according to the findings of a study undertaken by Assocham.

According to the study, the industry will substantially enlarge its exports to the regulated generic drug markets of the US and Europe, where $65 billion worth of drugs are expected to go off patent soon.

The study says the Indian pharmaceutical exports have tremendous potential to grow at around 18 per cent by 2007-08, and take its total export volume to about Rs30,000 crore, as against Rs18,290 crore in 2004-05.

Although official figures for the pharma industry and its exports are yet to be obtained by Assocham for 2005-06, the chamber estimated that the size of the industry would grow at over Rs48,015 crore, with export volume likely to exceed Rs21,582 crore.
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