Government considering fiscal measures to contain inflation
Pune: The Government is considering using fiscal measures to ease pressure on the prices of non-food articles, just like it did for petrol and diesel and may also go for higher imports of food products such as pulses for the purpose.

Inflation for the week ended November 18 has touched a high of 5.45 pc just short of the outerband of 5-5.5 pc inflation projected by the Reserve Bank of India for this fiscal.

Finance minister P Chidambaram said price increases in non-food articles can be addressed by fiscal steps though the real issue was a supply side one and that inflation is driven by scarcity of primary articles, particularly pulses and wheat. He said the only durable way to contain inflation was to accelerate the domestic agricultural production to keep pace with the growing consumer demand.
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Morgan sees slowdown in IT, telecom earnings growth
New Delhi: A slowdown in the IT and telecom sectors may lead to a slowdown in India Inc's robust earnings in the second half of the year making it difficult to match the growth forecast for the entire fiscal, according to global equity research firm J P Morgan.

The expectation that corporate India will grow at 34 pc for the financial year 2007 is stretched as incremental risks are emerging for key sectors, including IT services and telecom according to J P Morgan's latest Asia Pacific Equity Research report.

The major contributors towards the 31 pc growth witnessed in the first half of the current fiscal, were - IT, telecom and building materials. The earnings growth momentum in building materials is expected to continue unabated into the second half, however, risks are emerging for IT and telecom sectors the report said.
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India wants to resolve EU alcohol row through dialogue
New Delhi: India is seeking to resolve a trade dispute with the European Union over high import tariffs through dialogue, commerce minister Kamal Nath said on Monday after a meeting with his visiting French counterpart.

Last month, the European Commission said it was taking India to the World Trade Organisation (WTO) in a dispute over New Delhi's high duties and taxes on wine and spirit imports.

Consultations at the WTO can last for 60 days but if no agreement is reached, Europe's complaint could eventually lead to retaliatory tariffs being imposed by the EU on Indian exports.

A European Commission report this year, prompted by European producers of whisky and other spirits and wines, found "clear violations of WTO provisions" in some Indian states where duties and taxes combined amounted to as much as 550 percent on imported spirits and 264 percent on imported wines.

In Tamil Nadu only Indian-made spirits and wines may be sold through shops and other retail outlets, it said.

Indian trade officials have said the issue is difficult to resolve quickly because state governments are responsible for excise duties on alcohol under the country's federal set-up.
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