Buoyed by over 17 per cent of industrial growth in April,the highest for 2010 so far, Planning Commission on Friday said the government's policies were "working" and that it should continue with gradual withdrawal of stimulus.
Sitharaman exhorted the states to work together with the Centre, stating that while the Union government sets the direction of economic growth, it is for the states to ensure effective implementation on the ground.
Barclays further said there is increased momentum in announcements of equity offerings in public sector units, 'which suggests upside risks to our estimate of fiscal divestment proceeds of Rs 25000 crore in the next fiscal,
We need good, accessible, inexpensive broadband.
Finance minister Pranab Mukherjee on Wednesday ruled out an immediate withdrawal of the stimulus packages, but cautioned that too much delay in the exit would widen the fiscal deficit.
'If we want real democracy, the economy itself will need to be democratised.'
Federation of Indian Chambers of Commerce and Industry said the Reserve Bank's step may make availability of funds through external commercial borrowing route more expensive.
China is considering a gradual rollback of its last year's $586 billion stimulus package, as the economy sets its sights at over eight per cent growth this year.
You have to really bungle to produce 5.7 per cent growth under the conditions this government is currently facing, says Mihir S Sharma.
The government is expected to announce the second stimulus package in the next three days.
The commerce and industry ministry may withdraw incentives offered to certain export-oriented industries and reallocate these to the sectors that are struggling for survival after a review in April.
The deficit for the first five months of the year stood at 96 per cent of the full-year target of Rs 5.46 lakh crore despite cut in capital expenditure in August.
Amid speculation of partial withdrawal of stimulus in the upcoming Union Budget, Textiles Minister Dayanidhi Maran on Tuesday pitched for continuation of these measures for the textile sector for some more time as it is yet to recover fully.
India will seek continuance of the stimulus package that was devised to get the global economy out of the worst crisis since the Great Depression of the 1930s at the G-20 Summit in Pittsburgh on Friday pitching at the same time strongly against any attempts at protectionism and advocating reforms of the international financial institutions.
The former Governor of RBI said India would see 'definite signs of recovery' in the second half of 2009-10. On growth forecast, he said this fiscal will see a rate of 6 and 6.5 per cent, but it will be higher next fiscal.
Echoing the position articulated by Prime Minister Manmohan Singh, China and Russia on Thursday warned that imminent withdrawal of fiscal stimulus by the US could have an adverse impact on the global economy and cautioned the Obama administration against it.
India today asked the World Trade Organization (WTO) chief to explain how he arrived at the figure of $150 billion as "being the Doha Round's contribution to the global stimulus", a demand that was supported by the United States.
"I just have a fundamental disagreement with this package. When it was originally proposed, it was talked about as target tax cuts as well as infrastructure investment," said Jindal. He has even turned down $ 100 million of federal money saying he would have to permanently change the state law for this temporary benefit. Jindal also accused Obama of not having a bi-partisan approach on the stimulus bill.
Secretaries' panel fails to arrive at a decision. Sources told Business Standard the commerce ministry felt that the delay would add to the cost for the government as more and more factories could shut shop.
A fiscal deficit of 6.8 per cent of GDP, up from 5.5 per cent postulated in February's Interim Budget, means an additional stimulus of nearly Rs 80,000 crore (Rs 800 billion).
Several questions arise on the appropriateness of the measure in the already strained fiscal scenario, says M Govinda Rao.
Finance Minister Pranab Mukherjee on Tuesday announced a stimulus package for the economy, the third this financial year, cutting excise duty and service tax two percentage points each, effective midnight, and extending previous excise cuts beyond March 31, 2009.
Labour Minister Oscar Fernandes on Friday lashed out at the Communists for being 'unfair' in accusing the government of coming out with economy stimulus packages only to bail out the corporate sector without paying any heed to the fate of the retrenched workers.
The Indian business community seems unenthusiastic about the new plan, but it's unclear how much more the government can do
In a statement criticising the levy, the IATA said on Thursday that the ADF came at a time when the industry was badly in need of a stimulus package to boost demand.
"China and India will certainly see a recovery in H2-09, but high-income nations will take longer to recover from the current downturn," Jeffrey told PTI on the sidelines of Mobile World Congress in Barcelona. Noting that mobile telephony is the single most powerful transformational tool in the development, Sachs said that it is one of the fastest growing sectors currently in the world.
Fraudulent and corrupt practices are expected to swallow a whopping $500 billion out of $5 trillion stimulus funding by governments worldwide, a global report has said.
Tech Mahindra was the top laggard in the Sensex pack, cracking over 5 per cent, followed by Infosys, HDFC, IndusInd Bank, Reliance Industries and NTPC. On the other hand, Hero MotoCorp, L&T, Maruti, UltraTech Cement and Sun Pharma led the gainers' chart.
Planning Commission Deputy Chairman Montek Singh Ahluwalia today said the fiscal stimulus package unveiled by the government was "adequate" and the next package should aim at creating productive investments in infrastructure.
IndusInd Bank was the top gainer in the Sensex pack, rallying up to 46 per cent. Other winners were Bharti Airtel, L&T, Bajaj Finance, Kotak Mahindra, Bajaj Auto, HUL and HDFC -- rising up to 10 per cent. On the other hand, Maruti Suzuki, Tech Mahindra, Sun Pharma and Reliance Industries closed with losses. NSE Nifty finished 323.60 points, or 3.89 per cent, up at 8,641.45.
Of the Rs 20-lakh-crore package that Prime Minister Narendra Modi announced to defend the economy against coronavirus disruptions, fresh support may be only around 60 per cent of the offer as it counts the first financial stimulus and liquidity support that Reserve Bank has given already, and will overburden the bond market, says a report.
Car makers fear that when car prices go up and loans become expensive, running a car will also cost more. Thus a stimulus-pullback will act as the straw that broke the camel's back, says Bhupesh Bhandari.
The UN Trade and Development Report 2010, released this week, has said the fundamental causes of the economic crisis have not been addressed and 'remain a toxic threat to stable and inclusive growth and the sustainability of the recovery'.
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President Pranab Mukherjee has sought to counter criticism against the economic stimulus provided when he was the Finance Minister in 2009 and maintained that economy under him registered high growth rates.
The truth about the deficit is that it is designed to serve political objectives, not economic ones.
An understanding in this regard was reached during the economic dialogue being held between Chinese vice-premier Wang Qishan and US Secretary of Treasury Timothy Geithner.
Bernanke's remarks about the possibility of scaling back of stimulus with improvement in economic conditions sent the global stock markets including that of India into tizzy.
Driven by high growth of 8.9 per cent of the manufacturing sector, the economic growth in the current fiscal is likely to be 7.2 per cent, the CSO said in its advance estimates for the national income released on Monday.
Projecting over seven per cent economic growth in Asia this year, the International Monetary Fund on Wednesday said countries in the region will be able to exit stimulus measures earlier than the advanced economies.
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