India may end the financial year with a seven per cent GDP growth rate, as the economic deceleration is expected to continue in the third quarter, said Montek Singh Ahluwalia, deputy chairman of the Planning Commission.
According to Planning Commission Deputy Chairman Montek Singh Ahluwalia, more than the anticipated growth in the farm sector will make up for the shortfall in the industrial output.
Deficient monsoon is likely to pull down the economic growth in the current fiscal to about six per cent, from 6.5 per cent a year ago, the Planning Commission said on Friday.
India will set up a high-level committee to identify areas for expanding economic ties with the United States, from where it expects an estimated investment of $250-300 billion in infrastructure space.
Planning Commission echoed Prime Minister Manmohan Singh's concern that corporate salaries were excessive but said there was no proposed move to impose any cap on their salaries.
The chairman and CEO of Dow Chemicals Andrew Liveris will not attend the Indo-US CEO Business Forum meeting scheduled to be held in Washington.
Finance Minister Pranab Mukherjee is leading a high-powered team of policymakers, including Commerce Minister Anand Sharma and Planning Commission Deputy Chairman Montek Singh Ahluwalia at the India-US CEOs Forum.
Commerce Minister Anand Sharma and Planning Commission Deputy chairman Montek Singh Ahluwalia will also participate in the India-US Business CEOs Forum Meeting.
Prime Minister Manmohan Singh last month had said inflation would moderate to 5-6 per cent by the end of the calender year.
Defending the government's decision to open up the multi-brand retail sector to foreign investment, Plan panel deputy chief Montek Singh Ahluwalia on Friday said it would help farmers as well as consumers.
Planning Commission on Friday said there is no case for providing stimulus to the industry to arrest moderating growth as the fiscal deficit is high and may exceed the Budget estimate of 4.6 per cent by about one percentage point.
Former managing director of McKinsey & Co, Rajat Gupta, has stepped down as chairperson of the Public Health Foundation of India (PHFI). Gupta's resignation comes days before the PHFI executive was to discuss his exit.
The Planning Commission has pitched for linking of domestic fuel prices with those in the international market saying it is necessary for country's global "economic reputation".
"I don't think that it is government's view that the present inflation cannot be brought under control without FDI in multi-brand retail. We can bring inflation under control," Planning Commission Deputy Chairman Montek Singh Ahluwalia said.
Reliance Industries is facing penalty for falling gas output from its KG-D6 fields.
The Planning Commission deputy chairman Montek Singh Ahluwalia said on Wednesday objections to the disinvestment progammes of the government can be sorted out through discussions. Although the government has expressed its commitment to offload equity in state-owned companies while retaining 51 per cent share, the supporting Dravida Munnetra Kazhagam had raised objections to it.
Replying to a question related to the possibility of additional fiscal stimulus measures in the forthcoming Budget, Planning Commission Deputy Chairman Montek Singh Ahluwalia said: "We have started some discussion with the finance ministry. This is related to what should be an appropriate size for planned expenditure for 2009-10." In the interim Budget announced in February this year, the planned expenditure for 2009-10 was budgeted at Rs 2,85,149 crore.
Besides Parikh, Singh sent letters of appreciation to V L Chopra, B Mungekar and Anwarul Hoda indicating that they may not find a place in the reconstituted body.
The Reserve Bank of India has already raised its key short-term rates by 25 basis points to cool inflation and many experts believe that it will make money dearer to tame inflation in its April 20 annual monetary policy announcement.
In an interview with Karan Thapar on the CNN-IBN channel's Devil's Advocate programme, Planning Commission Deputy Chairman Montek Singh Ahluwalia explains why he faults the controversial report of the Comptroller and Auditor General on 2G telecom spectrum allocation. Edited excerpts:
"Yes it is true that milk and vegetable prices are high. You know some of this is a reflection of economic prosperity and purchasing power," Commission Deputy Chairman Montek Singh Ahluwalia said.
Ahluwalia said India is also interested in stepping up cooperation with China on railways development.
Congress president Sonia Gandhi and Prime Minister Manmohan Singh will not be able to attend the annual World Economic Forum meeting to be held at Davos from January 24-28 next year.
The plan panel on Thursday termed the housing finance racket, involving the chief of LIC Housing Finance and several other officials of PSU banks, as a "very small" incident as far as banking system as a whole was concerned.
Power distribution companies in the country are estimated to have incurred a staggering loss of about Rs 70,000 crore (Rs 700 billion) in the last fiscal and the amount is expected to be as much as Rs 1,16,000 crore (Rs 1,160 billion) by 2014-15.
Against the all-state average of Rs 3,049 per capita development expenditure, Bihar registered Rs 1,446 during 2005-06. Similarly agaisnt all-state average of Rs 3,826 and Rs 4,208, Bihar recorded per capita development expenditure of Rs 2,123 and Rs 2,184 during 2006-07 and 2007-08 respectively.
Inflation, as measured by the Wholesale Price Index, had stood at 7.47 per cent in December 2011.
The process of preparing approach paper to the 12th Plan has already been started and the panel wants that besides its experts and committees on different areas, the general people particularly youngsters share their views about how should the country should go about the next Five-Year Plan.
The data further revealed that GDP growth rate was 9.4 per cent in the last quarter of 2009-10 and 8.3 per cent in the third quarter of 2010-11.
According to the IMF sources, the 27-member European Union bloc had asked the Chinese for support for Lagarde.
"Attempts should be made to curtail growth of subsidies to achieve nine per cent growth. We are trying to achieve nine per cent growth. Though there are major challenges like global slowdown, we will achieve the target," Singh said.
Will sell onions at Rs 49/kg, almost Rs 31 less than market rate
The Plan panel on Wednesday said it has appointed civil rights activist Binayak Sen, convicted for sedition, on the board of one of its steering committees to give input for 12th Plan (2012-17) on health related issues.
The nation's highest policymaking body, the National Development Council, will focus on five key areas, including the Naxal menace, power reforms and water crisis, at its meeting on Saturday.
Freight corridor project slipping, needs supervision revamp, says Plan panel.
"In China's 12th Plan, exports do not hold the same place. Besides, the Chinese will be vacating the lower end of value spectrum like textiles and leather...So who will replace them? Are we going to step in or will it be Vietnam or Turkey or Indonesia," Planning Commission Deputy Chairman Montek Singh Ahluwalia said.
Ahead of the July 24 National Development Council (NDC) meeting, the Planning Commission will come out with a report on the problems in the Naxal-hit areas and the issues being faced by tribals.
Government and the Planning Commission had earlier projected a growth rate of 9 per cent during 2011-12, up from 8.6 per cent in the previous fiscal.
The government will come out with details of a new scheme for farm sector projects by states in the next 4-6 weeks to implement the Rs 25,000 crore (Rs 250 billion) plan announced by Prime Minister Manmohan Singh last month.
