Govt. may cut spend, raise NRI deposit rates to boost economy

June 24, 2012
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New Delhi, June 24: The steps to be announced on Monday by the government and the Reserve Bank of India may include raising the interest for deposits of Non-Resident Indians, cutting down wasteful expenditures and unveiling a bond issue for overseas investors to improve capital inflows in the wake of the rout in rupee.

Economic growth has fallen to a nine-year low of 6.5 per cent in 2011-12 and industrial output continues to be sluggish with a mere 0.1 per cent growth in April. Inflation too remained at an elevated level of 7.55 per cent in May 2012.

“Private investment in India is constrained by lack of availability of funds. Government might announce some measures for attracting investments and also steps to cut down wasteful expenditures,” said Y.K. Alagh, chairman, Institute of Rural Management.

Hit by a weak global sentiment and subdued local macroeconomic performance, the rupee has lost over 25 per cent in the last one year. It also breached the 57 level against the dollar on June 22, 2012.

Market analysts expect RBI to announce an increase in interest rates for NRI deposits. They also expect government to announce a bond issue to attract inflows.

“RBI may increase the interest rate on FCNR(B) deposit further and announce the issuance of bonds for Non-Resident Indians to address the issues in the short-term” Crisil Chief Economist D.K. Joshi said.

Experts also see steps being taken to reduce the twin deficits. CNI Research Head Kishor Ostwal said, “It might take steps to tame fiscal and current account deficits.”

Finance Minister Pranab Mukherjee had on Saturday announced that the government and the RBI would take steps to arrest the declining rupee and improve market conditions.

“The steps we have taken... And we will be able to take certain measures to be announced on Monday which will improve market condition,” he had said.

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April 12,2024

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New Delhi, Apr 12: India on Friday asked its citizens not to travel to Iran or Israel amid escalating tensions between the two countries following a strike on the Iranian consulate in Syria 11 days ago.

Iran blamed Israel for the strike and there have been fears that Tehran may launch an attack on Israel soon.

In an advisory, the Ministry of External Affairs (MEA) also urged the Indians residing in Iran and Israel to exercise utmost precautions about their safety and restrict their movements to minimum.

“In view of the prevailing situation in the region, all Indians are advised not to travel to Iran or Israel till further notice,” it said.

“All those who are currently residing in Iran or Israel are requested to get in touch with Indian Embassies there and register themselves,” the MEA said.

“They are also requested to observe utmost precautions about their safety and restrict their movements to the minimum,” it added. 

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April 16,2024

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New Delhi:  Twenty-nine Maoists, including a senior rebel leader - Shankar Rao, who had a bounty of ₹ 25 lakh on his head - were killed by security forces during an encounter in Chhattisgarh's Kanker district on Tuesday afternoon. A huge quantity of weapons, including Ak-47 and INSAS rifles, were recovered. 

Three security personnel were injured in the gunfight, which took place in forests near the village of Binagunda after a joint team of District Reserve Guard and Border Security Force were attacked.

Two of the three injured are from the BSF. Their condition is stable but the third - from the DRG - is in critical care. All three received treatment at a local hospital and are to be shifted to a larger facility.

Sources said the fighting began at around 2 PM, when a joint DRG-BSF team was conducting an anti-Maoist operation. The DRG was set up in in 2008 to combat Maoist activities in the state, and the Border Security Force has been deployed extensively in the area to for counter-insurgency ops.

There was another encounter in the district last month, in which two people - a Maoist and a cop - were killed, and security forces recovered a gun, some explosives, and other incriminating materials.

Personnel from the DRG and Bastar Fighters, both units of the state police force, with the Border Security Force, were involved in that operation, officials told news agency PTI. The patrolling team was cordoning off a forested area when fired on indiscriminately, leading to the gun battle.

In November last year, while the state was voting in the first phase of an Assembly election, a gunfight broke out between security forces and Maoist rebels in the same district.

An Ak-47 rifle was recovered from the encounter site.

On the same day, while polling was taking place, Maoists fired at DRG personnel deployed near a polling station in Banda in Dantewada district.

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April 22,2024

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The BJP has opened its account in the ongoing Lok Sabha elections. The party's candidate from Gujarat's Surat constituency, Mukesh Dalal, has won the polls as all his opponents are now out of the fray.

BJP's Mukesh Dalal elected unopposed from the Surat Lok Sabha seat after all other candidates withdrew from the contest, the party's Gujarat unit chief CR Paatil said today. Today was the deadline for withdrawing nominations.

The nominations of the Congress party's Surat candidate and his substitute were rejected by the returning officer over alleged discrepancies in paperwork, a development that the Congress called an attempt at "match-fixing".

"Surat has presented the first lotus to Prime Minister Narendra Modi. I congratulate our candidate for Surat Lok Sabha seat Mukesh Dalal for getting elected unopposed," Mr Paatil posted on the microblogging website X, referring to the BJP's election symbol.

Eight candidates - seven of them independents - and Pyarelal Bharti of the Bahujan Samaj Party (BSP) withdrew their papers.

The nomination papers of the Congress's Surat candidate Nilesh Kumbhani was rejected on Sunday after the district returning officer Saurabh Parghi found discrepancies in the signatures of the proposers.

The nomination form of Suresh Padsala, the Congress's substitute candidate from Surat, was also found invalid.

The returning officer had said the four nomination forms submitted by the two Congress candidates did not appear genuine. The proposers, in their affidavits, had said they had not signed the forms themselves, the returning officer said in the order.

Congress lawyer Babu Mangukiya said the party will approach the high court and the Supreme Court for relief.

Congress leader Jairam Ramesh in a post on X said the Surat developments indicate "democracy is under threat". "Our elections, our democracy, Babasaheb Ambedkar's Constitution - all are under a generational threat. This is the most important election of our lifetime," Mr Ramesh said.

Mr Ramesh alleged the "distress" of micro, small and medium enterprise (MSME) owners and the business community in PM Modi's "Anyay Kaal" and their anger have "spooked the BJP so badly that they are attempting to match-fix the Surat Lok Sabha polls, which they have won consistently since the 1984 Lok Sabha elections."

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