Trade deficit rises to $6.2 billion in October
New Delhi: Demand for imports in India is rising sharply as a result of which India's trade deficit increased to $6.20 billion in October, up sharply from $2.93 billion in October 2005.

The deficit during April-October 2006 touched $30.23 billion from $25.19 billion in the same period last year.

After a growth of 41.2 per cent in dollar terms in September 2006, India's exports slowed down to 19.03 per cent in October, though cumulative performance during April to October 2006 showed 34.96 per cent growth.

According to provisional figures compiled by the Directorate General of Commercial Intelligence & Statistics and released by the Department of Commerce here, the country's exports during October 2006 fetched $9.6 billion compared with $8.08 billion in October 2005.

If the provisionally revised figure for October 2005 is calculated, which is put at $8.64 billion the export growth slowed down further to 11.35 per cent.

Cumulatively, exports during the first seven months of the current fiscal at $69.5 billion, compared with $51.5 billion in the corresponding months of 2005-06 show that exports grew by 34.96 per cent.
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New income tax form draws ire from Parliament committee
New Delhi: The new income tax return form 2F, introduced by the finance ministry this year, has drawn criticism from the Parliamentary Standing Committee on Finance which has opined that the new tax return form was cumbersome and lengthy and has asked the government to stick to the previous one.

The committee remains unconvinced about the reason and justification for introducing the new Form 2F, particularly the need for a cash flow statement said the committee in its report tabled in Lok Sabha on Tuesday.

On the likelihood of the revenue department reconsidering the Form 2F, it has said it will take into account all suggestions received from all quarters, on the design of 2F when the form is renotified. The form will have to be renotified for assessment year 2007-08 as per provisions of the Income Tax Act.

The government had notified the new 4-paged form on June 1, 2006 which came into effect immediately but was not made mandatory. The assessees could file their returns on the Saral also for assessment year 2006-07.

The department said the new form had been brought to overcome difficulties in the earlier form like lack of space, requirement of attachment of annexures, inadequate explanatory instructions, difficulty in matching information collection through third party returns.
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FDI in higher education may go through
According to commerce and industries minister Kamal Nath a bill is being formulated that will look at allowing foreign investors in higher education after looking at the need for quality higher education institutes and necessary frameworks.

The minister said that the bill will be finalised within one month and the regulations for FDI will be formulated in consultation with all the stakeholders. The bill is likely to be tabled in the Budget session.

The minister speaking at the India Economic Summit and responding to a survey conducted with the delegates of the forum which listed education as the top choice for improving competitiveness said there was a consensus within the government for looking at the prospect of FDI in higher education given the level of brain drain in the country.

Nath said more than 1,30,000 people go abroad every year and if the country can even retain 60 per cent of the number the scarcity of skilled manpower would be addressed to some extent.

The minister added that the new institutes which will come into existence as a result of the bill will open up new opportunities in the sector underlining the need for urbanisation of the rural educated youth.
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Petrol, diesel price may be cut today
New Delhi: A reduction in the prices of petrol and diesel is likely to be announced in Parliament on Wednesday and there are indications that petrol may be cheaper by Rs2 per litre and diesel by Re1 per litre. This comes after Congress president Sonia Gandhi said the steep rise in the diesel and petrol prices has been causing hardship to the people.

Besides this, the government has also been under pressure from the Left parties to roll back the price increases that took place in June.

While petrol is currently being sold at a profit of Rs4 per litre, state-owned oil marketing companies are incurring a loss of 46 paise on sale of diesel. However, according to industry sources, it remains to be seen how the petroleum ministry works out the numbers.

The prices of petrol and diesel were last increased in June by Rs4 per litre and Rs2 per litre respectively. At that time, the Indian crude oil basket averaged at $67.29 a barrel in May and $67.15 a barrel in April. This price increase was also said to be not in line with the then prevailing international oil prices, but less.

Prices of domestic LPG and kerosene sold under public distribution system (PDS) remained untouched even then.

Even when the Indian basket touched a high of $75.20 a barrel on August 8, there was no increase in the retail prices. At the current prices of $57-58 a barrel, the oil marketing companies are still incurring under recoveries on diesel, kerosene and LPG.
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Steel prices may be cut in December
New Delhi: Steel prices in the domestic market are likely to fall in the range of Rs500 to Rs800 per tonne in December 2006.

Following the recent fall in international prices of steel the difference between the domestic and international price is currently around $30-40 per tonne. As a result the average landed cost of imported hot rolled steel is currently around Rs26,000, while the average domestic price is approximately Rs27,000.

Apart from this there is increased availability of steel in the domestic market as shortages are coming down in the global arena. The price of galvanised plated steel is expected to be reduced by around Rs500 and is likely to be effective from the beginning of the month.

For hot rolled steel, companies such as Steel Authority of India (SAIL), Tata Steel, Essar, Jindal and Ispat have deliberated among themselves and indications are that they will not make any announcements on the first day of the month.

Sources said that since private sector companies do not maintain inventories and produce as per order, they have decided to watch the order load during the first few days and then take a final call.
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Oilrises above $61 per barrel
Singapore: Oil increased to above $61 as colder weather in the U.S. Northeast is expected to increase demand for oil. US light crude rose 19 cents to $61.18 a barrel by 0248 GMT, after climbing 67 cents on Tuesday to take gains for the week towards $2. London Brent crude traded 16 cents higher at $61.37 a barrel, extending 77-cent gains on Tuesday.
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