The government on Tuesday said the IMF had expressed concern about sustainability of India's fiscal situation and debt position.
Not only is the current US financial crisis not solved, the seeds are there for even more serious crises in the future, writes Deepak Lal.
In the last five years, price increases of global commodities, especially those of oil, metal and food, budget deficits widened and trade balances worsened. With this, the growth softened and inflation reached double digits.
A United Nations' body has called for greater public and private spending for upgrading critical areas of India's infrastructure, a key driver of the economy, and said a bulk of these investment need to be generated internally.
The government on Monday said the Budget 2006-07 allocated resources within fiscal deficit targets to boost agriculture and manufacturing.
In the second and concluding part of his interview, Gurumurthy outlines the two areas he believes the government should focus on.
Broad convergence on GST rollout in NDC meet.
The IPCC has blamed man-made emissions for warming of the globe and long term climate change. Limiting climate change, therefore, will require substantial and sustained reduction of greenhouse gas emissions. This is the message to politicians and policy makers of the world, says Dinesh C Sharma
Economist S Janakarajan, in an interview to Shobha Warrier/Rediff.com warns that without proper infrastructure, India will never be able to build a market economy.
While the Cauvery issue has brought life in Karnataka to a standstill on Saturday, the tussle will continue before the Supreme Court on Monday with both Karnataka and Tamil Nadu battling it out, reports Vicky Nanjappa.
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Q1 results indicate more pain ahead, as slowdown has spread to more sectors, pricing power has come down and rising interest cost is eating into profits.
Indian economy about to take-off
Pushing for reforms, the Economic Survey on Thursday said inflationary impact of foreign funds flow, a slowdown in the US, an appreciating rupee and sluggish infrastructure sector were major challenges before economy that is projected to slow down to 8.7 per cent in 2007-08.
Legislation on fiscal discipline will not help unless government is ready to bite the bullet.
India would remain among the fastest growing economies of the world in the medium-term as the country has posted a real GDP growth at 6.9 per cent in 2004-05, according to Reserve Bank of India.
The Budget has no reforms, no move to facilitate GST for next year introduced, too many exemptions given and hardly a few withdrawn.
The government response was key in overcoming the recent financial crisis, but the time is now ripe for credible fiscal consolidation.
Long-distance tariffs will crash from Tuesday with TRAI reducing the access deficit charge given to telecom operators Bharat Sanchar Nigam Ltd and Mahanagar Telecom Nigam Ltd by up to 62 per cent.
'There is no change in the overall story of economic recovery.'
Although exports of gold jewellery have increased from Rs 5,220 crore (Rs 52.20 billion) during FY 2001 to Rs 23,516 crore (Rs 235.16 billion) during FY 2007 (source: Icra industry monitor), the export business has been constrained by an inability to compete in global markets on basis of price and superior design capabilities.
Though the Budget this year is expected to be exceptionally austere, the corporate honchos have dished out their wishlist
Travelling allowance of Rs 800 a month is too little. And in education allowance of Rs 100 for each child, a parent can't even cover cost of books.
What a weaker dollar really does is to encourage American and international investors to invest in non-American markets. The more the dollar drops, the more global equities rise. Many Asian currencies are hitting record highs against the dollar.
NDA government has shunned populism.
The developing countries fear that the mysterious draft prepared by Denmark would be sprung upon hours before the high-level segment of climate talks begins, making it difficult for any world leader to oppose.
Parekh said divestment can unlock huge funds.
Latest data clearly showed that the current account deficit stood at a record level and the economic growth was stuck at a three year-low in the second quarter of the current financial year.
If the government were to give heed to its fiscal imprudence, cut down on its 'extravagant' and non-productive expenditures, inflation could be controlled
'India will succeed. I know this past year has caused a lot of concern, but this year is over and by elections we will achieve our ambitious economic agenda.'
The European Union on Thursday said India will surpass 7.0 per cent growth this year and the new United Progressive Alliance government is expected to continue with reforms, including reduction in fiscal deficit.
The problem with India's growth story has been its inability to reduce poverty to significant levels.
Growth is the only way poverty can be reduced, says JPMorgan Chase's Jahangir Aziz.
People from different sectors react to Budget 2013
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