Inverted duty structure is making Indian manufactured goods uncompetitive against finished product imports in the domestic market, says a survey

'Inverted customs duty making Indian mfg goods uncompetitive'

Press Trust of India

India has for long been caught in the diplomatic crossfire between the United States and Iran, so today's meeting between US Secretary of State John Kerry and his Iranian counterpart, on the sidelines of the UN General Assembly in New York, is being keenly watched for signs of a potential thaw between the two adversaries. This is one of the highest level diplomatic initiatives between Iran and the US in a 34 year standoff that began after the revolution of 1979.

India, US and Iran: Three to tango

Business Standard

In probably one of the few sensible moves in the recent past, the petroleum ministry is planning allotment of shale gas blocks to public sector companies in the initial stages.

Is there a case to keep shale gas out of the reach of private players?

Will he taper or won't he? This is the big question that financial markets world over are pondering on. Tapering is easing of the bond buying program which resulted in surge of liquidity in the global markets. Federal Reserve is presently, through its third round of quantitative easing (QE3) pushing in $85 billion every month. Reduction of this flow, if at all it happens, is what is keeping markets nervous. Expectations range from a postponement of tapering to a reduced tapering of $20 billion or more every month.

US bond tapering - Time to wear our seat belts

Raghuram Rajan managed to successfully stem the rupee's fall through a series of measures announced on the day he took over as RBI Governor.

Two financial instruments that saved the rupee

Nobody can doubt that Raghuram Rajan, now governor of the Reserve Bank of India, is a very smart man indeed. But if there is one article of faith shared by most economists in North America, and by extension the world, it is that Lawrence J Summers, once US Treasury Secretary and more lately Barack Obama's chief economic advisor, is the smartest man in the business. But, it seems, Summers is no longer the perceived frontrunner in the race to be Rajan's American counterpart; he's ruled himself out of the race.

What Rajan had that Summers didn't

Pictorially, the idea of a model State Electricity Distribution Management Bill, 2013 can be described as a bulb being lit up on the head of the power ministry, except that the bulb itself is a fused one.

New power distribution bill lacks the power to bring change

Gas sector, it seems, will receive another boost with the recent announcement made by the US Department of Energy where it said that conditional authorization for export of domestically produced liquefied natural gas (LNG) has been allowed. US allowed LNG exports only to countries where it has a Free Trade Agreement (FTA).

Opening of US gas exports unlikely to benefit India

The power sector has seen several positive headwinds blow in the past few days. Coal India (CIL) has signed 140 of the 173 fuel supply pacts (FSAs) it was expected to, for a capacity of 60,000 MW, in effect committing 80% assured fuel supply to power plants. 65% of this requirement will be met through domestic production while 15% will be imported. Reports suggest the PSU will begin imports by the end of September.

Poor infra to pushback positive headwinds in Power

Barely a year ago, there was talk about China's economy making a hard landing. Around the same time, there was also chatter about a revival in the Indian economy with P Chidambaram back at the helm in North Block. But fast forward to 12 months later, and it's astounding how this narrative has done a volte-face.

India vs China: A tale of two contrasting economies

It seems that Raghuram Rajan is the good omen the economy was waiting for. Even the IIP seems to have suddenly improved way beyond market expectations, though the reported figure is before Rajan assumed office.

Capital Goods and export sectors help pull IIP higher

Two of UPA II's biggest election planks - the Food Security Bill & the direct cash transfers mechanism may not necessarily end up becoming electoral game-changers.

UPA's social agenda: Too much too late?

The UPA government seems to be competing with sprinter,Usain Bolt when it comes to issuing clearance to infra projects. The government cleared 28 projects worth Rs 1.1 lakh crores over the week-end after sitting on it for years.

Govt sprinting on project clearances but are the investors listening?

The scene seems right out of a B grade Bollywood movie, where the doctors are trying their best to revive the patient through thumping the chest and electric shocks but the pulse rate continue to slide. Outside the operation theatre, friends and family are frantically praying for a miracle to bring the patient back to life. Indian rupee is the patient in this case with the FM and the Governor as the doctors.

Rupee fall: Ben Bernanke can do what the FM & RBI failed to achieve

It's difficult to tame inflation in India. Sometimes it's too much rain that drives prices up and other times it's the lack of it. After falling for several months, the Wholesale Price Index (WPI) print for the month of July has come in at 5.8%, way ahead of consensus estimate of five%. The WPI index was at 4.86% in June and 7.52% in July, 2012.

Price rise set to gain momentum in coming months

Finance Minister's attempt to pacify the markets by announcing a series of measures to control the declining rupee has failed to have any impact.

Cosmetic measures to stem the rupee fall fail to impress markets

India's trade deficit has remained stable at $12.3 billion in July and is only marginally higher than the $12.2 billion seen in June. Undoubtedly, it's is good news that trade deficit in July has come off from the elevated levels of $20 billion seen in October and November of 2013 to $12 billion, but India's current account deficit is expected to be between 4.25 to 4.5% of GDP.

Economists expect CAD to be between 4.25-4.55% of GDP in FY14

Government is battling gold imports with a vengeance. It seems to be winning small battles but there is no way it can win the war. Within a month of introducing curbs, RBI withdrew the circular banning consignment imports for domestic use and 100% cash margin.These measures were considered too harsh which led to a sharp drop in imports.Gold imports fell by 80% of their May imports after imposition of these measures.

RBI's gold imports restrictions: Back to 'Once upon a time in Mumbai'

Indian Wind Power Association (IWPA), Chennai-based wind energy-focused industry body, has asked the government to re-introduce two fiscal incentives to help companies invest in the clean energy sector. The twin incentives, Accelerated Depreciation (AD) and Generation-Based Incentive, were rolled back by the government in April last year.

Wind power industry body asks govt to re-introduce fiscal incentives

Keeping a dwindling economy in mind, the government on Tuesday finally unbridled a plethora of sectors by allowing foreign direct investment (FDI) in those ranging from telecom to oil and gas. However, it remains to be seen how much of the move enthuse the foreign investors who are closely watching the developments as some of the key sectors remained out of the loop such as multi-brand retail trade (MBRT) and civil aviation.

Govt unbundles FDI reforms to woo investors, concerns remain

The Indian rupee is touching new lows and the trend is unlikely to be reversed in the coming months. Since May, the rupee has depreciated nearly 13% against the dollar and is currently the worst performing currency in Asia. So while a depreciating rupee is expected to hit you directly with rising inflation, here are 5 ways a falling rupee makes you poorer.

5 ways a falling rupee makes you poorer

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