India prevents EU's attempt for WTO probe
New Delhi: India has prevented an attempt by the European Union (EU) for a WTO investigation into the additional customs duties on imported liquor imposed by the country.

EU has been saying that additional import duties imposed by India on foreign liquor are not compliant with WTO norms and had asked for the formation of a panel in WTO's Dispute Settlement Board. The United States is also likely to ask for similar proceedings.

However now, WTO will automatically launch an investigation, once the EU repeats its request for dispute settlement.

Indian officials said the finance ministry is likely to introduce a legislation soon to scrap the additional customs duty on foreign wines and spirits. The legislation would allow states to charge extra duty on imported wines and spirits.

As per India's commitments to WTO, basic customs duty on imported wines is 100 per cent while for spirits like whiskey and vodka, it is 150 per cent. Additional customs duty in the form of countervailing duty on imported spirits and wines was imposed in 2001 to create a level playing field between domestic and foreign liquor companies as states cannot levy duties on foreign made liquor.

Additional customs duty in foreign spirits ranges from 25 per cent to 150 per cent while on imported wines, the duty is 20 per cent to 75 per cent . But due to a combination of customs and the additional duties, the effective import duty goes up to a huge 264 pc for wines and 550 per cent for whiskies, depending on the brand.
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Petrol dealers announce strike on 13 April
Dealer-operated petrol stations across the country have announced a strike on April 13 as part of a token strike to voice their demand for higher commission.

The dealers are demanding that they be given five per cent margin on invoice value among other things and warned that failure to meet them would prompt the Federation to launch an indefinite nationwide "no purchase and no sale" stir from 28 April, the release added.

The federation has said that no penal action should be taken against dealers who report higher losses beyond current permissible limits pending the submission of report by Indian Institute of Petroleum, Dehradun.
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Indian economy to slow down: IMF
Washington: The Indian economy will slow down to 7.8 per cent in 2008 according to the International Monetary Fund (IMF).

"Emerging markets and developing countries are expected to continue to grow strongly, albeit at a somewhat slower pace than in 2006," IMF said in its World Economic Outlook (WEO) report said.

In India, rising revenues are expected to lead to a more than 1 percent of GDP decline in the deficit (to 6.3 per cent of GDP) in FY2007, but with a public debt ratio of 80 per cent of GDP, further consolidation remains a priority.

Inflationary pressures across the region remain generally well contained, although rapid credit growth poses a challenge in a number of countries.

The Economic Outlook points to a global economy that expanded vigorously in 2006, growing by 5.4 per cent while the economy of the United States has slowed in the face of headwinds from a sharp downturn in the housing market.

The report said that a decline in oil prices since August have helped to sustain consumer spending.

In India, upward inflationary pressures and rapid credit growth have prompted the Reserve Bank of India to raise policy rates and the cash reserve requirement for banks.
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Pak to export wheat to India
Karachi: Pakistan exporters have sold up to 4,000 tonnes of wheat to India, the first such sale in history between the two former enemy states industry officials said.

Pakistani officials described the sale as a breakthrough and said they hoped to ship more cargoes to India.

The wheat sale comes after Pakistan's government lifted a two-and-a-half-year ban on all wheat exports in January, on expectations of a bumper harvest of 23 million tonnes this year.

The discharge port for the wheat shipment would be Mumbai and was due May or June priced between $219 and $222 per tonne.

Pakistani exporters are said to be getting orders from India and the Middle East because of the superior quality of Pakistani wheat.
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