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Mar 14, 2013

Raghuram Rajan: financial crisis prophet to RBI chief?

NEW DELHI (Reuters) – The man widely expected to be the next Reserve Bank of India (RBI) governor favours clipping the autocratic power of the role and giving more say to a monetary policy committee.

Raghuram Rajan, who in 2005 predicted the global financial crisis, also believes that inflation of around 5 percent is “reasonable” in a developing economy, rejecting the notion of a “new normal” for India of 7-8 percent.

Mar 14, 2013

From financial crisis prophet to next India central bank chief?

NEW DELHI (Reuters) – The man widely expected to be India’s next central bank chief favours clipping the autocratic power of the role and giving more say to a monetary policy committee.

Raghuram Rajan, who in 2005 predicted the global financial crisis, also believes that inflation of around 5 percent is “reasonable” in a developing economy, rejecting the notion of a “new normal” for India of 7-8 percent.

Mar 7, 2013

Key political risks to watch in India

NEW DELHI (Reuters) – India’s slowest economic growth in a decade could be even worse than anticipated, as preliminary data released in February showed the economy appears to have grown 5.0 percent in the fiscal year that ends this month – lower than both the RBI and finance minister’s forecasts – underscoring the urgent need for reforms to boost growth.

RATINGS (Unchanged unless stated):

S&P: BBB-

MOODY’S: Baa3

FITCH: BBB-

Following is a summary of key political risks in India:

ELECTIONS AND ECONOMY

In his budget at the end of February, Finance Minister P. Chidambaram defied market expectations of spending cuts by promising a bigger outlay for the coming fiscal year, which falls just before an election.

Feb 28, 2013

Budget 2013: Chidambaram increases spending, taxes the rich

NEW DELHI (Reuters) – India unveiled higher-than-expected spending for fiscal 2013/14 on Thursday, aiming to fund it with higher revenues – including new taxes on the rich and large companies – in a budget aimed at reviving growth amid the country’s worst slowdown in a decade.

The budget caps an intensive campaign by Finance Minister P. Chidambaram since he was appointed last August to turn around the fortunes of Asia’s third-largest economy after years of policy drift and global economic turmoil.

Feb 28, 2013

India budget increases spending, taxes the rich

NEW DELHI (Reuters) – India unveiled higher-than-expected spending for fiscal 2013/14 on Thursday, aiming to fund it with higher revenues – including new taxes on the rich and large companies – in a budget aimed at reviving growth amid the country’s worst slowdown in a decade.

The budget caps an intensive campaign by Finance Minister P. Chidambaram since he was appointed last August to turn around the fortunes of Asia’s third-largest economy after years of policy drift and global economic turmoil.

Feb 28, 2013

India budget calls for tough choices but lifts spending

NEW DELHI (Reuters) – India unveiled higher-than-expected spending for fiscal 2013/14 on Thursday, aiming to fund it with higher revenues – including new taxes on the rich and large companies – in a budget aimed at reviving growth amid the country’s worst slowdown in a decade.

The budget caps an intensive campaign by Finance Minister P. Chidambaram since he was appointed last August to turn around the fortunes of Asia’s third-largest economy after years of policy drift and global economic turmoil.

Feb 18, 2013

“Nothing to hide” in helicopter deal, India’s PM says

NEW DELHI, Feb 18 (Reuters) – India’s Prime Minister
Manmohan Singh said on Monday his government had nothing to hide
in a $750 million deal for AgustaWestland helicopters that the
defence ministry is threatening to cancel over allegations of
kickbacks.

The ministry has asked AgustaWestland, owned by Italy’s
Finmeccanica, to show by Friday that no bribes were
paid in the deal or face cancellation of the order.

Feb 18, 2013

“Nothing to hide” in helicopter deal, India’s prime minister says

NEW DELHI (Reuters) – India’s Prime Minister Manmohan Singh said on Monday the government had nothing to hide in a $750 million deal for AgustaWestland helicopters that has been suspended by the Defence Ministry over allegations of kickbacks.

The ministry has asked AgustaWestland, owned by Italy’s Finmeccanica, to show by Friday that no bribes were paid in the deal and says it is ready to cancel the purchase outright. The helicopter company says it will comply with the request.

Feb 18, 2013

“Nothing to hide” in helicopter deal, PM says

NEW DELHI (Reuters) – Prime Minister Manmohan Singh said on Monday the government had nothing to hide in a $750 million deal for AgustaWestland helicopters that has been suspended by the Defence Ministry over allegations of kickbacks.

The ministry has asked AgustaWestland, owned by Italy’s Finmeccanica, to show by Friday that no bribes were paid in the deal and says it is ready to cancel the purchase outright. The helicopter company says it will comply with the request.

Feb 15, 2013

India says seeks to cancel Finmeccanica helicopter deal

NEW DELHI (Reuters) – India is seeking to cancel a $750 million order for a dozen helicopters from Italian defense group Finmeccanica, the defense ministry said on Friday, responding to growing pressure over kickback allegations.

India has frozen payments for the AgustaWestland helicopters pending an inquiry after Italian police earlier this week arrested the head of Finmeccanica (SIFI.MI: Quote, Profile, Research, Stock Buzz), Giuseppe Orsi, in connection with the case.