Manoj's Feed
Oct 3, 2013

Exclusive: Slowing economy may force Chidambaram to wield budget knife

NEW DELHI (Reuters) – The finance minister may have to slice at least 200 billion rupees from government spending to prevent a budget blow-out, which could threaten to send the country’s credit rating into “junk” status, two ministry officials said.

P. Chidambaram will make a final decision on whether to go ahead with the cuts at the end of October, when he gets an update on revenue collections, the officials, who have direct knowledge of the process, said.

Oct 3, 2013

Exclusive: Slowing Indian economy may force Chidambaram to wield budget knife

NEW DELHI (Reuters) – India’s finance minister may have to slice at least 200 billion rupees ($3.2 billion) from government spending to prevent a budget blow-out, which could threaten to send the country’s credit rating into “junk” status, two ministry officials said.

P. Chidambaram will make a final decision on whether to go ahead with the cuts at the end of October, when he gets an update on revenue collections, the officials, who have direct knowledge of the process, said.

Oct 3, 2013

Slowing Indian economy may force Chidambaram to wield budget knife

NEW DELHI, Oct 3 (Reuters) – India’s finance minister may
have to slice at least 200 billion rupees ($3.2 billion) from
government spending to prevent a budget blow-out, which could
threaten to send the country’s credit rating into “junk” status,
two ministry officials said.

P. Chidambaram will make a final decision on whether to go
ahead with the cuts at the end of October, when he gets an
update on revenue collections, the officials, who have direct
knowledge of the process, said.

Sep 18, 2013

Government to back up insurance for refiners processing Iranian crude

NEW DELHI (Reuters) – The government will provide a 10 billion rupee sovereign guarantee to back local insurance for refineries using Iranian oil, two government sources said, as it tries to boost imports paid for in local currency to ease pressure on the rupee.

India’s crude imports from Iran slumped 75 percent in July from June to just 35,500 barrels per day (bpd) because of problems over insurance for crude from Iran caused by western sanctions which aim to curb its nuclear ambitions.

Sep 18, 2013

India to back up insurance for refiners processing Iranian crude

NEW DELHI, Sept 18 (Reuters) – India will provide a 10
billion rupee ($158 million) sovereign guarantee to back local
insurance for refineries using Iranian oil, two government
sources said, as it tries to boost imports paid for in local
currency to ease pressure on the rupee.

India’s crude imports from Iran slumped 75 percent in July
from June to just 35,500 barrels per day (bpd) because of
problems over insurance for crude from Iran caused by western
sanctions which aim to curb its nuclear ambitions.

Sep 9, 2013

Insight: Killing the goose: Why Indian exports need more than a cheap rupee

NEW DELHI (Reuters) – The upside of the Indian rupee’s slump is an export boom that sets the economy straight, right? Wrong.

Prime Minister Manmohan Singh echoed classical economic theory when he told parliament last month that the plunging rupee, which has lost 18 percent against the dollar since selling pressure picked up in May, would spur exports and discourage imports.

Sep 9, 2013

Killing the goose: Why Indian exports need more than a cheap rupee

NEW DELHI, Sept 10 (Reuters) – The upside of the Indian
rupee’s slump is an export boom that sets the economy straight,
right? Wrong.

Prime Minister Manmohan Singh echoed classical economic
theory when he told parliament last month that the
plunging rupee, which has lost 18 percent against the dollar
since selling pressure picked up in May, would spur exports and
discourage imports.

Sep 1, 2013

Speedier clearances no magic wand for India’s infrastructure logjam

NEW DELHI, Sept 2 (Reuters) – Scrambling for remedies as
investors’ faith in India sagged, the government said last week
it fast-tracked approval for a slew of infrastructure projects
worth $28 billion: but the stroke of a pen in New Delhi will not
be enough.

The government hopes that speeding up the launch of hundreds
of new power plants, highways and oil exploration blocks will
breathe new life into an economy that has fallen off its perch
as an emerging market high-flier.

Aug 30, 2013

Exclusive: India pushes for joint FX intervention; action unclear at this time

NEW DELHI (Reuters) – India is seeking support from other emerging market countries for coordinated intervention in offshore foreign exchange markets after a currency rout the past three months, but at least one critical partner, Brazil, said it is not involved in such planning at this time.

Mexico and Russia, two other key developing nations, had no comment on such a plan.

Aug 30, 2013

PM tries to quell crisis fears, growth skids to 4-year low

NEW DELHI (Reuters) – Prime Minister Manmohan Singh sought to quell fears of a currency crisis on Friday as economic growth fell to a four-year low, while New Delhi raised prospects of joint intervention with other countries following the rupee’s crash to record lows.

The Finance Ministry’s principal economic adviser, Dipak Dasgupta, told Reuters that India was liaising with governments in other emerging-market countries to co-ordinate intervention in offshore currency markets. Dasgupta predicted action soon, but he declined to share specific details of the discussions.