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Investment Opportunities
Jul
2
Indian Government shares Economic Survey of India 2008-2009
Filed Under Banking, India Business, Indian Government, Infrastructure, Insurance, Regulations, Training & Education | Leave a Comment
The Indian Government today presented the Economic Survey of India 2008-2009 in the Indian parliament. The FY 2009-2010 budget session commenced today with Finance Minister Pranab Mukherjee tabling the Economic Survey of India for the year 2008-09. The railway budget 2009 will be presented tomorrow by the railway minister Mamta Banerjee.
Here are some highlights:
* In the 11th “Five-Year Plan” period from 2007-12, the Govt is expecting to create 58 million jobs in the country. This is great news.
* The next phase of economic stimulus will include both govt expenditure and tax cuts, while keeping the macro economic fundamentals like interest rates, exchange rates and growth rates in mind.
* For the current fiscal 2009-10, the economic survey has projected a fiscal deficit of 5.5% of the GDP. The target for the Govt is to bring down the fiscal deficit to about 3% of the GDP.
* Recommends raising the FDI cap in Insurance sector from 26% to 49%
* Recommends raising the FDI limits in defence sector from 26% to 49%
* Suggests removing the cess, fringe benefit tax, different surcharges on taxes and bring in many different reforms in petrol pricing and the financial sector.
* India could grow at an average rate of 7% in FY 2009-10, and achieve growth rates of 8-9% in medium term if all reforms being planned are implemented.
May
1
World Bank $400m to India for Small Business Loans Financing
Filed Under Banking, India Business, Indian Companies | Leave a Comment
Good news for Small Business Loans in Indian. The World Bank has approved 400 million dollar additional financing loan to the Small Industries Development Bank of India (SIDBI), to improve access to finance for Small and Medium Enterprises (SMEs).
World Bank country director for India, Roberto Zagha, said: The project is part of a larger program of support in response to India’s request for funding in light of the financial crisis. It is targeted particularly at SMEs, to help address the credit slowdown that has resulted from the financial crisis.
This will help scale up the fully disbursed original project which had been approved by the World Bank on November 30, 2004, the bank said in a statement.
We believe this is happening at the right time (hopefully its not too late). The small businesses in India have been under great pressure in the last 6 months, and the export oriented units have been the worst hit.
