Higher interest rates, oil prices may slow India's economic growth: World Bank
New Delhi: Higher interest rates and oil prices could result in slowing India's economic growth in the next few years and the country should speed up reforms to maintain the momentum said Michael Carter, the World Bank's country director for India, at a release of a development policy review.

This week the Reserve Bank of India raised its benchmark interest rate by 25 basis points to 6 percent, the highest in four years, to contain inflation.

India grew 8.4 percent in 2005/06 and the central bank forecasts it will expand between 7.5 to 8.0 percent this financial year to the end of March 2007.

World Bank lead socio-economist for south Asia, Lant Pritchett, said India must improve its infrastructure and cut its fiscal deficits to continue on a higher growth trajectory. Author of the development policy review, Lant said India's labour laws needed changing to spur employment and it must speed up financial sector reforms and raise farm productivity.
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SEZ exports grow by 30 per cent
New Delhi: Exports from Special Economic Zones (SEZs) grew by 30 per cent to Rs22,000 crore in 2005-06, according to Commerce Minister, Kamal Nath. He said exports from SEZs grew from Rs18,309 crore in 2004-05 to Rs22,000 crore in 2005-06, the growth rate being more than the rate of growth in overall exports. At present, 28 SEZs are operating in the country with Tamil Nadu having the highest number at seven. Gujarat has five while West Bengal and Andhra Pradesh have three each.
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Government approves 12 infrastructure projects under PPP
New Delhi: The Government has approved 12 projects worth Rs2,643 crore under support to 'Public Private Partnerships (PPP) scheme for infrastructure. The total investment for these projects is estimated at Rs2,643 crore. Approximately Rs529.78 crore is to be provided as viability gap funding (VGF) support by the Government, an official release said.

The exact VGF support to be given would, however, be decided on the basis of competitive bidding. The projects will be constructed, maintained and operated by private partners who will fund the remaining amount of Rs2,063.31 crore. All the 12 projects a re in the road sector in the states of Gujarat, Madhya Pradesh, Maharashtra and Rajasthan, the release said.

So far, 21 projects envisaging a total investment of Rs8,814.99 crore have been received under the scheme with a request for VGF support amounting to Rs1,936.39 crore. The private investment component is expected to be approximately Rs6,878.60 crore.

The Empowered Institution constituted by the Government to accelerate and increase PPPs in infrastructure accorded the approvals.
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