INSIDE THIS ISSUE
   
   
   
  01 MAIN
   
   
  02 TRADE & ECONOMY
   
   
  03 INVESTMENT UPDATE
   
   
  04 NEWSMAKERS
   
   
  05 INFOTECH
   
   
  06 CULTURE
   
   
  07 TRAVEL
   
   
  08 CALENDAR
   

   
  HIGHLIGHTS
   
  8 percent GDP growth: CII
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  SEZs: Simplifying Investment
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  Kazirangi National Park
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  02. TRADE AND ECONOMY
   
 
  8 percent GDP growth: CII
  The Confederation of Indian Industry (CII)'s forecast of over 8 per cent GDP growth is in line with the quick estimates released by the Central Statistical Organisation (CSO).
 
         



"A higher growth in GDP this year is expected mainly due to a good monsoon, impressive growth of manufacturing and services sectors and a higher share of services sector in the GDP (from 53 per cent last fiscal to 54 per cent in the current year)," the CII stated.

 

In its latest State of the Economy (SOE) report, CII has reported 7.8 per cent growth rate in industrial production during April-December 2005 while stressing the need for propelling growth in mining and electricity.

While the capital goods sector has sustained its high growth momentum recording 15.7 per cent growth during the first three quarters of 2005-06, consumer goods production has also recorded a healthy growth.

Focusing on the challenges being faced by the Indian textiles industry in its sector watch, the report underlines the need for several policy measures to help the country double its share in global textiles trade from the current 4.0 per cent to 8.0 per cent by 2010 - as envisaged by the national textile policy (2000).

  The measures suggested by CII includes introducing flexibility in labour laws, encouraging large-scale production, reducing delays in shipment of finished goods and greater availability of credit at lower rates of interest among others. On the revenue front, the report notes that in the April-December period of 2005, indirect tax revenue was slightly more than expected whereas the same from direct tax has been less than expected.

Revenue and fiscal deficits during this period are higher than the corresponding figures of the last year and are likely to exceed the budget targets, CII has noted.

The growth in exports as well as imports registered a decline during the first three quarters of the current fiscal.

 
   
  India Budget 2006-2007
The following are the highlights of the central budget for fiscal 2006-07 presented by Finance
Minister P. Chidambaram in parliament.
             
  • Tax revenues in 2005-06 up by 21 percent.

• Revenue deficit placed at Rs.84,727 crore.

Taxation proposals follow:

• Peak customs duties for non-agricultural products reduced to 12.5 percent.

• Duty on alloy steel reduced to seven percent.

• Duty on plastics reduced to five percent.

• Duty on 10 anti-AIDS and 14 anti-cancer drugs reduced to five percent.

• Armed forces to get Rs.89,000 crore, including Rs.37,458 crore for capital expenditure.

• Universities of Mumbai, Kolkata and Madras to get Rs.100 crore each in two lots of Rs.50 crore each on their 150th anniversaries.

• Rs.10 crore for preparatory activities to celebrate 150th anniversary of first War of Independence.

• NABARD to get Rs.1,000 crore.

• India aims at 10 percent growth in coming years. 		 

• Study to be conducted for deepwater port in West Bengal.

• Barring mining, all sectors performing satisfactorily.

• Government to fund disaster rehabilitation.

• National Rural Health Mission to get Rs.8,207 crore.

• One thousand new residential schools to be set up in 2006-07 for girls of Scheduled caste and Scheduled Tribe categories.

• Polio to be eradicated by December 2007.

• Mumbai Metro project under active consideration.

• Power generation to be augmented by 34,000 MW during the 10th Five Year Plan.


• Budget will go extra mile for farmers. Farmers will get short-term credit at seven percent.

• Farm credit to be doubled in three years.

• Gross budgetary support to plan schemes up by 20.4 percent.

• Hyderabad Metro may be brought under National Urban Renewal Mission.

   • College of Horticulture to be established in Nagaland.
* Rural employment outlay at Rs.14,300 crore.

• Education gets Rs.24,115 crore.

• Old age pension raised to Rs.200 per month.

• Rural health spending at Rs.8,207 crore.
• Gender budgeting on in 32 ministries.

• Bharat Nirman projects to get an allocation of Rs.18,696 crore.

• Northeastern region to get Rs.12,041 crore.

• Sarva Siksha Abhiyan to get Rs.10,041 crore.

• Mid-day meal scheme allocated Rs.4,813 crore.

• Golden Quadrilateral to be completed by 2008.

• Savings up 21.9 percent of GDP in 2005-06.

• Gross capital formation up 30 percent in the current financial year.

• Foodgrain output in the year 209.5 million tonnes.

• Non-food credit is growing by 25 percent. 		 
             
   

MAIN I TRADE & ECONOMY I INVESTMENT UPDATE I INFOTECH I CULTURE I TRAVEL I CALENDAR

     
 
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