RBI likely to cut rates despite high inflation
The Reserve Bank of India (RBI) is expected to cut interest rates on Monday in a bid to breathe fresh life into a sputtering economy even as inflation remains uncomfortably high.
After cutting its policy rate by 50 basis points to 8.00 % in April, the RBI had been widely expected to leave rates unchanged in June. But global and domestic economic conditions have deteriorated sharply since then.
India's March quarter economic growth of 5.3 % was far worse than expected and the weakest annual pace in nine years. The data sparked calls from industry for immediate action to lift an economy that Standard & Poor's says could be the first BRIC nation to lose its investment-level credit rating.
(Sources: Business Standard, Reuters India, Economic Times, IBNLive, NDTV)
Coal import to grow 28.3 pc this year: CMIE
With the current coal production failing to meet the growing demand, economic think tank Centre for Monitoring Indian Economy (CMIE) expects the import of the fuel to grow by over 28 % this fiscal.
Coal imports are expected to grow by 28.3 % at 127 million tonnes, it said in its monthly report.
In FY12, coal production remained subdued with a mere 1.2 % rise.
"Various reasons such as heavy rains and floods in mining areas, miners' strikes, the Telangana agitation and environmental issues had taken a toll on coal production."
(Sources: Times of India, Economic Times, NDTV, Indiatimes)
Govt says no to raising 49 pc FDI cap in aviation sector
The government on Sunday ruled out raising the 49 % foreign direct investment (FDI) cap in the Indian aviation sector.
India allows FDI in domestic airlines up to 49 % but had been disallowing foreign airlines from investing in the sector.
The government, however, is now planning to allow foreign airlines to pick 49 % stake in their Indian counterparts.
(Sources: Livemint, Economic Times, IBNLive, Hindu Business Line)
Hospitality industry to witness investment boom soon: FHRAI
The Federation of Hotel and Restaurant Association of India (FHRAI), an apex body in the hospitality industry, has said that the industry is set to see an investment of about $ 4.7 billion by 2017. The industry currently employs 24 million people and by 2017 it is expected to add another 44 million employees.
(Sources: Business Standard, Times of India, Indiatimes, Financial Services)
Congress urges Mamata Banerjee to support Pranab Mukherjee, says FDI in retail soon
The Congress Sunday urged Trinamool Congress chief Mamata Banerjee to support UPA presidential nominee Pranab Mukherjee and also said the government will shortly bring foreign equity in retail that she has blocked.
Congress general secretary Dig Vijay Singh told a news channel that Banerjee's efforts to prop up A.P.J. Abdul Kalam for another term were futile as the former president himself was not interested in contesting the elections.
(Sources: Times of India, Economic Times, NDTV, Indiatimes, India Today)
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