The financial crisis, which a year ago seemed to be localised in one part of the financial system in the US, has exploded into a systemic crisis
Nobel Laureate Joseph E Stiglitz had predicted the global financial crisis and talked about its impact on emerging economies like India and China three years ago. In an interview with Business Standard at his Manhattan residence, Stiglitz says the crisis will last a couple of years.
The issues concerning growth and Mid-Term Review of the 11th Plan came up for discussion at the first meeting of the newly constituted Planning Commission. The 11th Plan had set an average economic growth target of 9 per cent for 2007-12. Although the economy during 2007-08 expanded by 9 per cent, growth plummeted to 6.7 per cent during 2008-09 on account of the impact of the global crisis.
Prime Minister Manmohan Singh is slated to meet United States President Barack Obama in London on April 2 on the sidelines of the G-20 summit.
Outgoing United States Ambassador to India, David Mulford, believes that India can help stimulate the world economy in the wake of the global economic meltdown.Mulford observed that "Developing countries have tended to be recipients during times of difficulty, but this time, some of them may be stimulators and producers. That is an important thought to bear in mind when you are in the condition that the United States is today."
The average size of IPOs rose by nearly half in 2008 over 2007, though the financial meltdown may have scared away many from the primary capital market, bringing down the number of IPOs to about one-third, the Economic Survey said.
The Tyre Industry is one of the industries that have been majorly affected by the global economic meltdown.
An interview with BMR partners and media specialists Nitin Atroley and Vivek Gupta
Tata Consultancy Services (TCS) is likely to delay its Rajarhat campus in West Bengal, as part of a string of cost-management initiatives to cope with the pangs of the global meltdown.
Though affected by the current global economic meltdown, India has fared much better than other countries of the world, Minister of State for External Affairs Preneet Kaur said on Friday.
"We will continue to hire people as our growing business demands manpower," CMD Kiran Mazumdar Shaw told reporters while announcing the company's half-yearly results.
The United Progressive Alliance government will have to face a tough time during the extended session of Parliament beginning Friday with the Left parties determined to take it on for "dispensing with the Winter session to cater to its political needs and failure on fronts of communal violence, terrorism and uncontrolled price rise."
The ministry has provided bank-wise non-performing assets in housing, commercial real estate , personal loans, among others and has sought corrective action where the bad loans are high. Sources said that last month, the government swung into action and asked for data on delinquency rates from the public sector players which account for two-thirds of the banking business in the country.
The global meltdown has significantly brought down the number of visitors from abroad to God's own country, prompting the government to now focus more on the domestic market.
Revival hopes of the diamond industry have been dashed as gems and jewellery manufacturers feel that little help has been provided to them in the Interim Budget for 2009-10.
JLR sees job cut if the situation does not improve.
The Reserve Bank of India has said its inspection of ICICI Bank and its UK subsidiary has not revealed anything to cause alarm.
The American Immigration Lawyers Association, which had earlier opposed the measure, described it on Friday as 'disappointing'. It argued that this would prove to be counterproductive as it prevents the US companies to hire the best available global talent. The H-1B has mostly benefitted Indian techies.
The global financial meltdown may take a toll on gifting companies, with corporates likely to tighten their belts around their gifting spend on employees this ensuing festive season.
As a result, they are still groping for answers. Should they downsize? But won't they be left without hands if the economy recovers in a couple of quarters? Should they focus on market share or cash management? How can shareholders' wealth be salvaged?
"Since our savings rate is as high as 35 per cent. If all work together, we can achieve a growth rate of 8 to 9 per cent, even if the world economy does not improve," he said while winding up the debate on Motion of Thanks to the President's address to joint sitting of Parliament.
The government does not expect the stock markets to fall below the levels witnessed on Monday, which saw benchmark Sensex plunging by nearly 700 points during the intra-day trade.
Here are some tried and tested methods to reduce the ambiguity in three specific question types.
Highly placed sources, who are closely monitoring the US situation, admitted that passing of the 123 Agreement by the US Congress could be hampered by the financial crisis or alternatively, it could lead to the process being passed with ease. Senior officials, however, made it clear that even if the 123 agreement was passed, it would not be signed by the prime minister during his Washington meeting with President Bush.
The inflow of Non-Resident Indian deposits shot up to $3.99 billion at the end 2008-09 as against mere $179 million at the close of the previous year, according to Reserve Bank of India data.
Out of the proposed 74 malls in key eight cities at the beginning of 2008, only 34 were delivered through the year, the study showed. Developers in the National Capital Region lagged the most with a supply of 4.7 million sq ft compared with the earlier target of 7.1 million sq ft. Developers may continue to restrict their supply, or go slow on retail space by a similar amount in 2009 across key major cities, the study showed.
If you are an entrepreneur and apprehensive that the global market meltdown will strain your fund-raising plans, fear not. India-focused private equity and venture capital funds raised $7 billion (Rs 27,958 crore) in 2007, excluding real estate, last year. They had garnered a similar amount in the corresponding previous year, according to data from Venture Intelligence, a venture capital research company.
It was not all that bright on the industry front in Tamil Nadu, one of the major industrial hubs in the country, towards 2008-end in the wake of the global meltdown, though the state government's pro-active actions fetched it Rs 37,000-crore (Rs 370 billion) investment commitments in the year.
Filmmaker Oliver Stone has been signed on to helm the sequel to his 1987 hit film Wall Street starring Michael Douglas. Douglas, who won an Oscar for the original film, is set to reprise his Gordon Gekko's role.
Volatility in lending and deposit rates witnessed during the year is expected to end in 2009 with interest rates seen to be going down, due primarily to an easy monetary stance being pursued by the Reserve Bank of India to push growth.
Volatility in lending and deposit rates witnessed during the year is expected to end in 2009 with interest rates seen to be going down, due primarily to an easy monetary stance being pursued by the Reserve Bank of India to push growth.
Speaking on the current economic meltdown, RPG said that the global meldown would help India emerge to be a much stronger economy.
A Jet Airways spokesperson confirmed the pay cuts but said that the move was only temporary and once the situation improved, it would do a revision. The salary cuts range from 5 to 25 per cent and include the top management. In addition, other perks like car facilities and car maintenance allowances have also been withdrawn from May onwards, the source said.
The total number of M&A deals announced till December 15 stood at 445 and its combined value was $30.72 billion, according to global consultancy firm Grant Thornton said. It hardly a match to last year's 676 deals worth $51.11 billion.
Manic Monday, Tragic Tuesday, Black Friday. We are not short of monikers to describe the current financial market meltdown that has dragged the world into recession. But everyone is suffering from a short-to-medium term memory loss and a failure to learn from past mistakes.
As the global economic crisis unfolds, India expects further moderation in foreign capital flows and exports leading to slowdown in economy, minister of state for finance P K Bansal told the Rajya Sabha on Tuesday. Referring to the impact of crisis on the country, Bansal, to another query said, "Industrial activity, particularly in the manufacturing and infrastructure sectors, is decelerating."
The impact of the global meltdown has forced India's second largest IT bellwether Infosys Technologies to freeze wage hikes and hiring in new fiscal 2009-10.
Industrialist Mudit Jain says companies need to cut costs and halt expansion plans to tide over the economic crisis.
The average pay of a chief executive at an American company fell by 6.8 per cent in 2008, as entities made steep cuts in bonuses in the wake of the financial meltdown.
Telecom Italia is targeting to reduce the debt significantly over the period 2009-2011. It plans to reduce net debt to earnings before by interest, tax and depreciation and amortisation ratio to 2.3 at the end of 2011 from over 3 at present.
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