India's exports rose by 13.47 per cent to $27.27 billion (Rs 1.727 trillion) in October while imports dipped by 14.5 per cent, helping narrow the trade deficit. Imports stood at $37.8 billion (Rs 2.394 trillion), leaving a trade deficit of $10.56 billion (Rs 6,687 crore) as against $20.2 billion (Rs 1.279 trillion) in October 2012, official data showed. However, the trade gap was much higher compared to the two-and-a-half-year low the previous month, as overseas purchases of gold picked up ahead of the festival season."This is a consistent growth in exports...The US is doing extremely well and Europe is also doing well," Commerce Secretary S R Rao told reporters in New Delhi.Gold and silver imports in October dipped to $1.3 billion (Rs 8,232 crore) from $6.8 billion (Rs 43,060 crore) in the same period last year.The deficit for the month stood at $10.56 billion, compared with $6.7 billion (Rs 42,450 crore) in September, the trade ministry said.Merchandise exports rose 13.47 per cent year-on-year in October to $27.27 billion (Rs 1.728 trilion). Imports fell 14.5 per cent year-on-year to $37.83 billion (Rs 1.919 trillion).In April-October, exports grew by 6.32 per cent to $179.38 billion (Rs 11.379 trillion), while imports during the period contracted by 3.8 per cent to $270.06 billion (Rs 17.11 trillion).Rao expressed confidence that the country would achieve the $325 billion (Rs 20.59 trillion) target for the current fiscal.(Agencies)
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India's trade deficit jumped in October after having fallen to a two-and-a-half-year low the previous month, as overseas purchases of gold picked up ahead of the festival season, provisional government data showed on 11 November.The deficit for the month stood at $10.56 billion, compared with $6.7 billion in September, the trade ministry said.Merchandise exports rose 13.47 per cent year-on-year in October to $27.27 billion. Imports fell 14.5 per cent year-on-year to $37.83 billion.(Reuters)
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Prime Minister Manmohan Singh said on Monday, 11 November, that the government will look "seriously" and "promptly" into the legality of CBI in the wake of some questions being raised about the legitimacy of the investigation agency.Addressing a CBI conference on tackling corruption, he also asked probe agencies to tread cautiously when it was handling cases related to policy decisions.Against the backdrop of the Gauhati High Court verdict declaring the agency as "unconstitutional", Singh said, "Our Government will look into this seriously and promptly. The Government will do all that is necessary to establish the need for the CBI and its legitimacy, and protect its past and future work.""This is a matter that will undoubtedly have to be considered also by the highest court in the land," he said at XXth Conference of CBI and State Anti Corruption Bureaux on Common Strategies to Combat Corruption and Crime.Read Also: CBI's Constitutional CrisisThe Supreme Court on Saturday, 9 November, had stayed the High Court order, saying accused in "sensational cases" have sought halting of the criminal proceedings based on the judgement.Referring to public debate on corruption in the country, the Prime Minister said it is sometimes forgotten that economic growth also implies greater opportunity for corruption."To keep pace with the aspirations of the people...our government has taken several legal and administrative measures in the last nine years," he said.At the same time, he said, it is also important to ensure that the work of nation building goes on at a quick pace.Singh said investigations into cases of policy making and administration should be done with great care. The Prime Minister said investigating agencies must maintain utmost vigilance in preventing corruption and do their best in ensuring transparency, accountability and probity.Singh said the fight against corruption should not only be confined to investigation and prosecution of corruption related offences once they happen."It is important that we look at the issue of corruption in the correct perspective," he said.The Prime Minister said powerful forces of change that are instrumental in creating greater prosperity are also throwing up new areas of crime and corruption."This conference reflects the need that the fight against corruption should be a collective effort of diverse stakeholders," he said.Singh said there is a growing exchange of people, ideas, goods, services, capital and data across the country and across national boundaries.He also said economic reforms of the 1990s followed by periods of fast economic growth have brought about rapid changes in our country.(PTI)
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The rupee dropped by 83 paise to 63.30 against the American currency after a gap of nearly eight weeks on persistent dollar demand from importers and banks on the back of higher dollar overseas.The rupee resumed lower at 63.00 per dollar as against the last weekend's level of of 62.47 per dollar at the Interbank Foreign Exchange (Forex) Market and dropped further to 63.32 per dollar before quoting at 63.30 per dollar at 1040 hrs.It moved in a range of 62.94 per dollar and 63.32 per dollar during the morning deals.Sustained dollar demand from importers and banks in view of firm dollar overseas mainly affected the rupee value against the dollar, a forex dealer said.In New York, the American currency jumped last Friday after the US created twice as many jobs in October as Wall Street had expected, sparking yet another round of discussion about when the Federal Reserve could slow its bond buys.Meanwhile, the Indian benchmark Sensex dropped further by 129 points, or 0.62 per cent, to 20,537.37 at 1050 hrs. (PTI)
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The rupee fell past 63 to the dollar to an over seven-week low in early trades on 11 November, tracking the dollar strength globally and ahead of key macroeconomic data later this week.The partially convertible rupee fell as much as 63.10 to the dollar versus its close of 62.475/485 on 8 November.Bond yields also rose tracking gains in US treasury yields. The 10-year benchmark yield rose 10 basis points to 9.09 per cent, a near three-month high.The US dollar gained against most currencies after an unexpected surge in jobs data, bolstering the case for the Federal Reserve to scale back stimulus as early as next month.(Reuters)
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In a huge relief to the Centre and the CBI, the Supreme Court on Saturday, 9 November, stayed the Gauhati High court verdict declaring the agency as "unconstitutional", saying accused in "sensational cases" have sought halting of the criminal proceedings based on that judgement. The apex court relief came on an urgent petition filed by the Department of Personnel and Training, the nodal ministry for CBI, from a bench headed by Chief Justice P Sathasivam, which heard the appeal at an extraordinary hearing in his residence. "In the meantime, there shall be a stay of operation of the final judgement and the impugned order dated November 6, 2013 passed by the Gauhati High Court," said the bench also comprising Justice Ranjana Prakash Desai. It rejected the objections raised by the counsel for Navendra Kumar, on whose petition the High Court had passed the verdict, that DoPT was not authorised to file the Special Leave Petition as it was not a party in the High Court. "Respondent 1 (Kumar) is permitted to raise all objections in his proposed reply," the bench said in its order asking his lawyer L S Chaudhary, who accepted the notice, to file it within two weeks after which the Centre will respond with its rejoinder. Posting the matter for hearing on December 6, the bench rejected the contention of Kumar's lawyer that the Centre's plea is a "collusive petition" as, instead of the CBI and the Ministry of Home Affairs, it has been filed by the DoPT which was not a party in the High Court. "The DoPT is an appropriate department. The CBI will file a separate appeal. We can't dismiss DoPT's appeal in limine," the bench said while taking note of the Attorney General G E Vahanvati's submission that CBI and the Ministry of Home will file their separate appeals. Questioning the findings of the High Court, the Attorney General said the judgement was based on wrong question and presumptions that led to a wrong conclusion. "You did not implead proper respondents before the high court," the bench told Kumar's lawyer. "We read in the newspapers that many people are seeking stay (of proceedings based on this judgement). We have to stay (high court's order). You have read that the two accused in two sensational cases (of CBI) have sought stay of the trial. "You file your objections. We will consider everything. Notice does not mean that we are rejecting your plea," it said. "We are concerned about all other cases (of CBI)," the bench observed. After a 10-minute-long hearing, the bench stayed the November 6 verdict of the High Court which virtually crippled the agency from performing its investigating and prosecuting functions in thousands of cases across the country. At the outset, Vahanvati said, "It is a serious matter with which the DoPT is concerned and the CBI will file its appeal later." He contended the division bench framed "wrong questions and proceeded on wrong presumption and arrived at a wrong conclusion". The AG questioned the High Court finding that CBI is not constituted under the law and created by Central government under the executive order. He also referred to the findings of the high court which quashed the 1963 Resolution as it does not refer to section 2 of the DSPE Act. At this point, the bench reminded the government's top law officer, "No follow up actions were taken after the Resolution." The Attorney General said "the reasoning given by the high court are unacceptable. It is a total misunderstanding of the principle of administrative law. "How does the concept of delegated legislation apply here? This shows complete misunderstanding of the concept of delegated legislation. There is a distinction between delegated legislation and conferment of executive powers." The bench said, "We will consider (the appeal of the Centre). We will have to go through it." The AG said the high court reasoning that the Delhi Special Police Establishment Act (DSPE) is not applicable to the CBI is a "convoluted logic". Vahanvati said thousands of cases are pending. "I am told there are 9,000 cases pending and there are 6,000 people in the CBI. The judgement came on November 6 and its copy came to us yesterday." The day witnessed hectic activities with the government first filing its appeal in the court registry and seeking an urgent hearing at CJI's residence. The rival side, which had filed the caveat in the matter, also rushed to CJI's residence. 5, Krishna Menon Marg, the CJI residence, was the centre of attention where media persons, including TV crew and photographers, were stationed since morning tracking the story. The announcement about the evening hearing was made by a staff member of CJI at 12.50 pm when he reached his residence after attending a conference. (PTI)
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Snapping a three-day rising trend, gold prices fell by Rs 150 to Rs 31,250 per ten gram in the national capital on Saturday on stockists selling against drying up of demand on ending of festival season, amid a weak global trend. Silver declined further by Rs 200 to Rs 48,900 per kg on reduced offtake by industrial units and coin makers. Traders said stockists selling on fall in demand following ending of festivals like Diwali mainly influenced the sentiment. Weak global trend where gold dropped as payrolls in the US rose more than forecast in October and increasing speculation that the Federal Reserve may start reducing economic stimulus by the end of this year, reduced demand for precious metals as a safe haven, they said. Gold in New York, which normally set price trend on the domestic front, declined 1.8 per cent to $1,284.60 an ounce and silver by 1.6 per cent to $21.31 an ounce. On the domestic front, gold of 99.9 and 99.5 per cent purity fell by Rs 150 each to Rs 31,250 and Rs 31,050 per ten gram, respectively. It had gained Rs 300 in last three trade. Sovereign lost Rs 100 to Rs 25,100 per piece of eight gram. In line with a general weak trend, silver ready fell by Rs 200 to Rs 48,900 per kg and weekly-based by Rs 400 to Rs 48,150 per kg. The metal had lost Rs 215 yesterday. Silver coins also tumbled by Rs 1,000 to Rs 86,000 for buying and Rs 87,000 for selling of 100 pieces on falling demand. (PTI)
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Union Finance Minister P Chidambaram on Saturday, 9 November, said government would 'very closely' focus on sectors prone to chronic service tax evasion like consultancy, IT and real estate. He said he had noticed chronic tax evasion in various cities (like Chennai) in contract service, maintenance and repair service and sectors like consultancy, IT, real estate, mining, transport operators, advertisement, storage and warehouse, manpower and recruitment and security services. The minister said he believed this was true all over the country. There was no reason to believe that if one sector was not paying the tax in Kolkata, that sector would be more compliant in Chennai, he said. "Those who are in these sectors must remember that the (Finance) Department will have a closer look. These are the tax evasion prone sectors. We are going to look at these sectors very, very closely", he said. The minister was speaking at an interactive meet on Trade and Industry, Service Associations and Chambers of Commerce and Industry on Voluntary Compliance Encouragement Scheme (VCES). Referring to the scheme, he said it was one of the most generous and fair packages offered by the Government. "I am assuming everyone is a honest citizen.You are honest in most actions. When you make a vow before your favourite deity, you are honest. You go and carry out the vow. You are honest while you are dealing with your spouse, children. Why should you be not honest with the tax department?", he asked. Urging members to pay the taxes, he said non payment might be out of ignorance or financial pressure. Taxes may have been paid over a period of time or completely stopped. "All that is being washed away by this scheme. The past will be completely closed". "No questions will be asked. You should file your declaration, pay taxes in the current period and you will not be obliged to pay any interest, any penalty or face any prosecution", he said. VCES had been introduced with effect from May 10, 2013 as a one time amnesty scheme for paying service tax dues for the period October 1, 2007 to December 31, 2012 without interest and penalty.(PTI)
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Indian factories increased production in September at the fastest pace since March ahead of an expected surge in demand during the country's festive season, according to a Reuters poll.Coal, electricity and cement production in particular, along with an uptick in demand for India's products abroad, are also expected to have contributed to overall factory output growth in September.Production at factories, mines and utilities in India likely rose 3.5 per cent annually in September, much faster than August's 0.6 per cent growth, a poll of 24 economists showed.Good factory growth in September would be welcome news for the struggling Indian economy, but some economists say momentum is unlikely to be sustained."The expectations are that overall, in order to meet the festive related demand, production would have been ramped up," said Upasna Bhardwaj, an economist at ING Vysya Bank.India's festive season usually begins in October and is characterised by increased spending on products ranging from sugar to gold to bigger items such as cars and electronic appliances.Production in the core sectors - also known as infrastructure output, which includes coal, electricity, cement, crude oil and steel factories - clocked a much higher growth rate in September.Output in those industries, which account for well more than one-third of overall factory production, rose 8.0 per cent annually that month versus 3.7 per cent in August, data released last week showed.Stronger demand from India's export destinations also led to an increase in production, with exports growing 11.15 per cent annually during September.Rising loan rates are one reason economists doubt September's numbers can be repeated."The banking sector is slowly increasing interest rates. The costs of funding are likely to put some amount of hit on the production side," said Golaka Nath, senior vice president of economic research at CCIL.The Reserve Bank of India raised its key interest rate for the second time in as many months in October to combat rising inflation.Bhardwaj of ING Vysya also warned that industrial production might not grow at as quick a pace in the months ahead."On an average, 2-2.5 per cent growth can be expected in the second half of this fiscal year," she said.(Reuters)
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The rupee is trading at 62.68/69 versus its close of 62.41/42, tracking the dollar's strength versus other Asian currencies and weakness in domestic shares.The BSE Sensex trading down 0.38 per cent.Most Asian currencies trading weaker compared with the dollar.The euro struggled in early Asian trade after the ECB's surprise interest rate cut sent the single currency plunging to near eight-week lows, but the dollar's gains were tempered ahead of the key US payrolls report later on 8 November.(Reuters)
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