Category: Finance News
Analysis of latest finance news
Finance Minister Mr. Pranabh Mukherjee says he will stick to the 8.5 percent growth for the current fiscal despite IMF forecasting a higher 9.5% growth for the countries economy.
Finance Minister was speaking at a conference hosted by industry body CII in New Delhi. Mr Mukherjee also said that the effect of Eurozone crisis will have very less impact on the country and he appreciated Indian banking sector for its descipline and maintaining a stable financial environment.
India has made clear that it preferrs better regulatory mechanism instead of imposing levy on banks for future bail outs.
Finance Minister Pranabh Mukherjee conveyed India's stand to the chairman of the presidential committee for the G-20 meeting on Friday.
While US, Britain and many European countries are supporting a levy on banks and other financial institutions, countries like India, Canada and Australia are opposed to the idea.
Reserve bank of India (RBI) today hiked the short-term lending and borrowing rates and the portion of money banks deposit with it by 25 basis points each.
The repurchase rate (repo), reverse repurchase rate (reverse repo) to 5.25 per cent and 3.75 per cent, respectively. It also set the Cash Reserve Ratio (CRR) to 6 per cent.
In preparation of the Union budget 2010-2011, Minister of Finance Mr Pranabh Mukherjee will meet Industry leaders today. He will be meeting leading industrialists and also representatives of Ficci, CII and Assocham.
The Union budget for year 2010-2011 will be presented on February.
Finance Minister Pranabh Mukherjee has indicated that controlling inflation is the highest priority for the Government. While answering questions from MPs in the Parliament, Mr. Mukherjee said "Government is monitoring the price situation on regular basis"
Previously the government had indicated its willingness to import essential commodities in order to contain the price rise.
The Indian food prices have touched a ten-year high.
Finance minister Mr. Pranabh Mukherjee on Saturday assured that the Dubai debt crisis will not have any major impact on Indian economy.
Finance minister said that the involvement of Indian banks in Dubai is very minimal to have a great impact. He also informed that the Government is closely watching the situation, specially the impact it will have on the expatriate population.
It is estimated that more than 40 per cent of Dubai population are Indians.
Talking to conference in New Delhi Prime minister Manmohan Singh has stressed the importance of economic reforms to his government. While targeting a 9-10 percent annual growth, he also stressed the need to increase investment in rural education, health and infrastructure.
Singh told the conference - "We need to push forward the reform process, and we will do so". He also said that the primary challenge for India in the next decade will be to sustain high growth that is equitable.
Finance Minister Pranab Mukherjee will be presenting the General Budget 2009-10 in the Lok Sabha on July 6.
The expectations on the current buget is to maintain the reform agenda and also to continue with spending in social sector.
It would be tough job for the finance minister considering the current world economic condition.
Rashtrapati Bhawan announced the portfolios on Saturday and it is now confirmed that Pranabh Mukherjee would continue as Minister of Finance under the Manmohan Singh government.
Mukherjee was the Finance minister under the previous UPA government and presented the interim budget for the outgoing government. He was also the Finance Minister between 1982 and 1984.
His first priority after assuming office would be to present the Union budget.
Mr Manmohan Singh has sworn in as India's Prime Minister for a second time. This follows UPAs clear victory in the General Elections.
Prime minister is expected to expand his cabinet on Tuesday May 22, 2009. Manmohan Singh has promised a "responsive" and "efficient" government at the centre.
