India Business News

Villages in India to get broaband connection by 2012?

2009-07-11T15:16:00.002+05:30

The Minister of State for Communications and IT Gurudas Kamat said that the all villages in India will be connected to broadband by 2012. It seems that government would focus on the e-governance and the application of e-governance would be a bless for six lakh Indian villages.

The broadband connection for each and every village would be a big revolution in the Information and Technology in India. The usage of the Internet and various the service providers will increase and those application will create more jobs in the IT.

The usage of Internet will connect all the village globally and the flow of information might help checking the social-economic problems. The usage of the e-governance would make all the government projects to achieve projected goals. The connectivity of Internet needs the proper infrastructure and the electricity. In order to connect all the villages with Internet, the government need to focus on the availability of electricity.

The villagers can used the Internet in various development work and schools and collages would be connected globally with higher educational intuitions. The connection of Internet in all villages will transform those village into global villages.

Crude Oil price drops below $60

2009-07-11T15:01:00.002+05:30

The price of crude oil has been dropped below $60 this week, it is the biggest drop since January this year. The international market is little volatile and the fall in the crude price is the biggest ever since January. However the price of the petrol and diesel back home increased by the UPA government.

Last year, the price of the crude touched the highest of $140 and more. It was anticipated that the price of the crude might reach to the mark of $200 per barrel. But the price of crude in the international market was dropped significantly. The decision of OPEC to check supply of crude price made the stabilized for few months.

Again the volatile price of crude in the international market would have impact on the prices of petrol and diesel in India. However, the price of petrol and diesel might change but the interest of the oil companies profit and loss will be taken into consideration.

Indian economy to grow by 8 per cent by 2010: World Bank

2009-06-23T19:20:00.003+05:30

Indian economy may growth faster than China according the recent projection by the World Bank. The apex financial institution of the world, World bank projects Indian economy will grow by 8 per cent by 2010. However, the bank projected seven per cent growth rate for China, according to media reports.

It is clear that the Indian economy is recovering from the clutches of the world economic crisis. The stock market has been getting best response from both domestic and foreign investors. The stable government after the general election, was the major factor that led the stock market in positive note.

The Index of Industrial Production(IIP) was in negative rate last year, now it over come from the negative growth rate. It is the impact of the bailout packages that the government had declared to check the impact of the global financial crisis on Indian economy and industrial sector.

The projection by the World Bank will help the stock market to check the foreign sentiments in the trade. By 2010, the economy would be in it full strength and attract huge capital inflow. The capital generation was the biggest challenge for major economies during the financial crisis. But Indian economy will recover from the impact of the global economic crisis as World Bank's projects states.

PC sales rise by 7 per cent in the first quarter

2009-06-16T10:00:00.000+05:30

India is one of the biggest market in the world for Personal Computer (PC) and its peripheral sales. The sale of PCs is increase by 7 per cent in the first three months of the year or in the first quarter of the year. This is a good indication for the Indian PC market.

According to IDC report, HP captured 18.2% of the India PC market in terms of unit shipments in the January-March period. In this period, 16.70 lakh units of desktop and laptops were sold in India.

The first quarter sales results were quite satisfactory for the companies producing desktops and laptops in India. The high sales in the first quarter indicates the performance of the companies and the economy is recovering from the clutches of the economic slowdown.

The market is slowly gearing up despite the impact of the global slowdown in India. And it is expected that the markets will grow rapid in the next quarter. Whereas, experts believe that by the end of this year the impact of the global slowdown will weaken and the companies would back on track again.

Textile sector may get proper attention in the Bugdet

2009-06-15T10:10:00.000+05:30

There is impact of the global slowdown and major economies of the world have been feeling the heat. The impact of the global slowdown is high on Indian economy and its sectors including textile. The demand for Indian textile products are decreased due to the economic crisis in the foreign countries. As a result the export of textile product from India is affected.

The government will bring the full budget and may give proper attention to boost the textile sector. Under this the government many declare many measures that would help the textile sector in India. Experts believe that the lowering interesting rates by the banks would boost the textile exports in India.

The textile export covers around 12 per cent of the total export from India. But due to the global slowdown, it fell to around 2 per cent. US and Europe are the major markets for India textiles facing the global economic crisis. The government may come up with more and more policies and allocations in the budget to help the textile industry and to boost the textile export.

Industrial Production rises, economy recovering from slowdown

2009-06-13T20:12:00.003+05:30

After two months of continues slope in the industrial production is rising. A rise in the industrial product was recorded in the month of April 2009. The manufacturing sector however set a marginal growth but the overall Industrial production index was in growth.

In October 2008, the Index of Industrial Production (IIP) was in negative figures and many experts had predicted that this quarter the IIP might not recover from the negative slope, as there is impact of the economic crisis.

The IIP was at 0.72 per cent in February 09 and rose to 0.75 in the March 09. But the IIP set a growth of 1.42 per cent in April 2009. As per the statistics in April 2009, the mining sector set a growth of 3.8 per cent and manufacturing sector set growth of 0.7 per cent. The IIP growth rate was not expected.

It indicates that the economy is recovering from the impact of the global slowdown. It can the impact of the stimulus packages approved by the government of India and Reserve Bank of India. The Indian economy will recover from the impact of the global slowdown very soon, lets hope for the best.

Montek becomes the Depty Chief of Planning Commission

2009-06-05T21:41:00.004+05:30

The UPA government at the centre has restructured the Planning Commission and Motek Sigh Ahluwalia will continue as the Deputy Chairman, according to media reports. The other members - Narendra Jadhav, honorary vice-chancellor of Pune University and Mihir Shah, Secretary of Samaj Pragati Sahayog will also be joining the Planning Commission.

The UPA government has also retained other key members of the Planning Commission, however the Primer Minister Manmohan Singh will be the Chairman. The UPA Government has set 100 days agenda and would try to achieve the set goals. It would be interesting to see that budget policy by the Finance Minister Pranab Mukherjee, whether the budget will be for aam admi - the common men or will try to protect the industries from the impact of the global slowdown.

India's forex reserves touches to $262.306 billion

2009-06-05T21:39:00.000+05:30

Indian economy has been recovering from the clutches of the global slowdown as the India’s forex reserves rose by $1.667 billion for the week ended May 29. The total forex reserves of India touched to the tune of $262.306 billion.

There has been fluctuation in the forex reserves of India due the global slowdown. Experts believe that the appreciation and depreciation of the US dollar will have impact on the forex reserves of India. India’s gold reserves went up to $9.604 billion for the week ended May 29, while it was at $9.231 billion in the previous week.

Finance Minister meets exporters

2009-06-02T19:54:00.002+05:30

The Finance Minister Pranab Mukherjee met the exports of India on Tuesday. The impact of the global slowdown is high on the export sector in India. The exporters of India have many expectations from the budget.

Exporter believe that there will be boom again in the sector and the economy will recover from the global slowdown. The meeting was attended by heads of eight export promotion councils (EPCs) and the Federation of Indian Export Organisations (FIEO).

The members put their demands in the meeting. It can be expected that there may be any special allocation in the union budget to protect the interest of the exporters.

FM likely to start pre-budget consultation next week

2009-05-28T20:24:00.004+05:30

Election are over, UPA formed the government and the cabinet expansion went a s well. Now it is the time for the UPA government to back to business. The Finance Minister Pranab Mukherjee will present the Union Budget 2009-10 in the Parliament in the month of July.

The Finance Minister is likely to start the pre-budget consultation with industry body and leaders by next week. The industrialists will have high expectations from the budget as they are going through a tough time of global slowdown.

This time the government might have allocation for industries in the forthcoming budget. The Finance Minister had presented the interim budget 2009-10 in the month of February. And in the full budget 2009-10 the finance minister may keep many options open of the industries. The major concern for would be to check fiscal deficit in the budget.

Four Nominee Directors of Tech Mahindra join Satyam Board

2009-05-27T20:00:00.003+05:30

Tech Mahindra's four nominee directors and the Chief Executive Officer Vineet Nayyar have joined the board of Satyam Computer on Wednesday. The CEO of Tech Mahindra, Vineet Nayyar will be whole time director of Satyam computer with effect from Thursday.

The CEO of Tech Mahindra has team of three directors those joined Satyam Board are - CP Gurnani, Sanjay Kalra and Ulhas N Yargop. The Government of India earlier appointed six directors for Satyam after the scam came to light.

Now the strength of Staym Board reaches to ten members, which induction of four by Tech Mahindra. Tech Mahindra has acquired 31% stake through preferential allotment.

HCL gets 240 crore BSNL project for 7 years

2009-05-25T19:40:00.002+05:30

HCL Infosystems has announced that of getting Rs 240 crore project from state-run telecom operator Bharat Sanchar Nigam (BSNL). The project will continue till 7 years and the project involves the implementation of over 60,000 enterprise resource planning (ERP) licences for BSNL.

Under the project HCL would provide service to BSNL - including business process re-engineering, hardware, networking, operations & maintenance customisation, training to BSNL employees and program management.

It is expected that the BSNL's finance, commissioning and operation functions would be shifted to single ERP system by HCL under the contract. Main data centre and data recovery centre would be set up in Hyderabad and Kolkata respectively.

Stimulus Packages are important to check impact of global recession

2009-05-22T15:16:00.003+05:30

The global economy has been going through a tough time of global recession. Major economies in the world have been arranging the fiscal stimulus to check the impact of the global recession their economy.

The impact of the global recession on Indian economy is lower than other countries. The Reserve Bank of India Governor Dr Duvvuri Subbarao believes that the stimulus packages will have great role to play in checking the impact of the global recession, he was addressing function.

It is time to introspect the progress of the stimulus packages on the impact of the global recession on Indian economy. The economy has been reeling under the pressure of the global slowdown for last eight months. The factors like high demand and strong banking can protect the economy from further shrinking into the global recession.

The world's major economy will recover from the global recession including Indian economy. The current fiscal would be tough time for many countries as the impact of the global recession is high.

Inflation rises to 0.61per cent from 0.48 per cent

2009-05-21T19:13:00.004+05:30

The inflation rises to 0.61 per cent for the week ended May 9 from 0.48 per cent recorded in the previous week. The rise in the inflation is due to the prices of the essential goods and services in India.

The Reserve Bank of India may go for further measures to check the liqudity crisis in the market and the inflation is no weighing high on the economy. The price of the food items is the major concern for the people and they spend a major portion of their household budget on food items.

The rise in the inflation however is good indication for the economy at this juncture. The impact of the global slowdown is there and affected the household budget. It is expected there will a marginal rise in the inflation in current fiscal. The inflation rate in 2008-09 was at around 8 per cent and the current rate is around 0.1 per cent.

Will demand for gold rise in India?

2009-05-20T20:08:00.003+05:30

The gold market of India is considered as the biggest market in the world. According to the World Gold Council, there was decline in the demand for gold in India in this quarter. WGC says in a published reports that there market traded 17.7 tonnes of gold in this quarter in 2009.

In this quarter there is decline in the gold trade in India by 83 per cent as comparison to previous years tradings. The gold selling hit high despite high price during the festival times and particularly on the Akshaya Tritiya.

Despite the marriage season in India, the demand for gold is bit low due to the high prices. The traders and business men of gold trade had anticipated that there would more demand for the the gold. The global factors have been influencing the gold market in India. Any decrease in the gold price would boost its sales in Indian market, which will help Indian gold market.

UPA to form government, will there be more economic reforms?

2009-05-18T21:06:00.004+05:30

The Congress led United Progressive Alliance (UPA) gets the mend ate from the people of the largest democracy of the world. The election results were stunning for the BJP and Left party in India. UPA will back to power and carry on the business.

The first Monday after the General Elections was proved good for the stock market and gain the confidence of the all sort of investors including the global financial investors. In 2004, after the election and mandate to UPA, the markets had responded in the similarly way.

The people of India will have one big question in their mind, whether the UPA government will go for more and more economic reforms as it did to tackle the impact of the global financial crisis. Now the approach for economic reforms would be every easy for the UPA government as the Left will not be there in Government.

The UPA government without Left parties obstacles over the economic policies would expect to function very well. Industry body and the corporate world expect big economic reforms from the new government of India.

Last year has been tough time for the government due to the global financial crisis. And there will be more responsibilities on to be Finance Minister of India. The forthcoming budget will give the highlights of the government's possible performance.

It can be expected that the government of India would go for more and more economic reforms in the forthcoming years. The priority of the government will be to check the impact of the global crisis.

SBI decreases rate of interest on deposits by 50 bps

2009-05-13T19:47:00.006+05:30

The State Bank of India has declared cut in the deposit rates by 50 basis points on various types of deposits.

The new rate will be effective from May 18, according to media reports. However, the bank did not change the rate of interest for the deposits over 5 years and below 10 years of term.

As per the new rates, the rate of interest for the the deposits upto 180 days is 5.5 per cent and 3.25 per cent for the deposits of 15 to 45 days. This is the third time the bank cut the rate of interest, earlier the bank cut on April 13 and May 2.

Hyundai plans to shift i20 production to Europe from Chennai

2009-05-09T19:08:00.002+05:30

The second largest car maker in India, Hundai Motors India Ltd plans to shift the production of i20 model to Europe from Chennai. i20 is one of the popular car in Indian market which costs around 5 lakhs.

It is reported that the i20 car would be the entry level car in Europe market. The company might be planning for best sales in Europe market. The company will however provide the number of units required in Indian market.

The selling of the small cars have been getting better response in India. Many other companies have also planning to introduce small cars in India.

Hot summer gives boost to refrigerator sales

2009-05-08T18:56:00.002+05:30

It is summer in India, tough time for the people to set out in the morning to their work and other places. But the summer hots in India have proved good result for the refrigerator making companies in India.

There is a rise in the sales of refrigerators in India. It was expected the sales of these cooling product might not get proper response in the market as the world is reeling under the pressure of global financial crisis.

Some major companies have registered huge sales in the products and some companies have introduced varied products to lure the customers. Despite the slowdown, customer have turned on to spend money on refrigerators.

Keeping the initial boost companies have been planning to introduce more and more products to get highest sales in the summer. The boost in the sales in the summer will cover the loss in the business due to the slowdown. The companies have got good cool business from hot summer in India, even impact of the global slowdown is faded for those companies in India.

Inflation rises - a concern for Indian economy?

2009-05-08T18:38:00.006+05:30

The inflation rises to 0.71 per cent for the weekended at 25 April. The inflation has been rising since last three to four weeks in India. The high political campaign and polling in the biggest democracy of the world, the inflation was said to be core issue. But other issues marginalize the inflation as a cores issue in India politics.

The inflation was once seen at around dual digit in the month of August last year and significantly came down to zero this year. Thanks to the fiscal policies were adopted by the Government of India and the Reserve Bank of India.

Even during the high inflation rate it was too difficult for the middle class people to handle the daily budget and family expenses. The rise in the essential goods is the biggest concern of the people. The inflation however may be at around zero but there is no respite in the price for the people.

The political leaders might forget the inflation rates and its impact on Aam Admi with the ending of fifth phase polling in the country. But the people will ever remembers the high price they have been paying due to the high inflation rate.

It seems that price mechanism is only in theoretical aspect in India. In practical, there might be any impact of the price mechanism. Market bottleneck may be the best way for retailers or wholesalers to grab more profit. In the case of onion shortage in year four year ago was the brightest example of market bottleneck in India.

Whatever the impact of the inflation on Indian election but the people are the soft target, those ought to pay the high price. It does not matter whether elections are there or not. Inflation will change your household budget.

Swine Flu hits travel and aviation business

2009-05-01T15:02:00.005+05:30

With the out break of Swine Flu in many countries the travel industry is like to suffer further. The industry was affected due to the global slowdown and now the flu is a burden on this sector. There were many reports of death caused by the flu in many countries.

The outbreak of flu will have adverse impact on many sectors including the travel and aviation. Precautionary measure are being adopted by people in many countries. Before it could take a shape of epidemic, it is expected to have any solutions from the medical experts.

Akshaya Tritiya - the Golden Day for Gold Business

2009-04-27T20:41:00.002+05:30

Akshaya Tritiya is considered as asupicious day in India. Most of the people buy the yellow metal - Gold on this day. Despite the high price of the gold, there were reports of good sale of gold in India.

It has been tradition in India and this day is considers a the golden day for the people associated with gold business. It was expected that due to the high gold price, people might be interested. But the speculation were proved wrong.

The demand for the gold on Akshaya Tritiya rose in the north Indian cities including metros of Delhi and Mumbai. The gold market was down for long time and India did not import gold for last two months. But the festival of Akshaya Tritiya brought cheers to the gold market in India. It is speculated that the demand of gold would continue for few days.

Rupees is at 50.26 against US dollar

2009-04-27T20:22:00.003+05:30

The value of rupees ended at 50.26 against US dollar. On the first day week, the market was seen in little volatile and proved mixed bag for most of the indices. The value of rupees against the US dollar was ended at 49.81 on Friday.

The strong dollar in the beginning of the week at the stock market might disappointed the domestic players. But the BSE sensex ended in green signal at 11371 points. This was just 42 points lead on Monday.

It is expected that the market would do well in the coming days of the week. There would be good option for the investors as the market in seen in green in the first day. While it was day for many of companies those ended at high note.

Honda's small car Jazz to hit Indian market by June

2009-04-23T20:06:00.003+05:30

Honda Siel Cars (HSCI) to launch its small car Jazz by June in India. The small car Jazz would cost around Rs. 5.5 lakh and the company aims to have good business from India car market.

Indian car market seems to be in boom after the launch of small and cheapest car - Nano by Tata motors. Honda's Jazz the small car will have 1.2 litre engine and developed exclusively for Indian market.

Jazz also called Fit in certain markets, is the only small car in Honda's global portfolio. Indian can get the small car from Honda by June this year. The media reports quote that Honda could also launch a diesel variant of Jazz in the next few years.

Inflation rises to 0.26 per cent from 0.18 per cent

2009-04-23T19:29:00.002+05:30

The inflation in India rises to 0.26 per cent for the weekended on April 11. For the two consecutive week the inflation rate recorded a fall. The rise in inflation is would be a good sign for the economy as its values around zero for around a month.

Despite fall in the inflation rate there is no major fall in the wholesale price index in India. The fall in marginal and the concern of the people about the market price they have been paying for the essential goods.

Considering the lower inflation rate in India, the Reserve Bank of India has been approaching banks to lower interest rates. The big question is that the government has pumped huge money into the system through various stimulus packages and the velocity of the money supply might be a concern in future.

If the inflation rises further and the supply of money in the system need to be checked. While the government would exercise various fiscal measures to check the inflation and its impact on the economy.