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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.

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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.

Feb 10, 2013

Protests and sand, but no steel: POSCO’s fading India dream

GOBINDPUR, India, Feb 10 (Reuters) – A few weather-beaten
shipping containers, a swathe of sand and a bitterly divided
village: that is all South Korea’s POSCO has to show seven years
after it announced plans for a $12 billion steel mill on a
fertile strip of India’s east coast.

Last week, the project took a step forward as land was taken
over from farmers for the first time since 2011, and yet Posco
is still a long way from its goal of forging steel there.

Feb 5, 2013

Young Indian rape suspect held alone for own safety, says innocent

NEW DELHI (Reuters) – Behind a barbed wire-topped wall by a busy New Delhi highway a teenager sits alone in a locked room, accused of taking part in a gang rape that first sparked nationwide protests and now a debate over whether Indian law is too lenient on juveniles.

Police allege the youth and five men lured a 23-year-old trainee physiotherapist and her male friend onto a bus where they repeatedly raped her and beat her with a metal bar before tossing the bleeding couple onto a road. The woman died of internal injuries two weeks later.