Economy to grow by around 7 pc in FY'09, hopes FM

NEW DELHI: Revival in steel and cement sectors and ample funds available with states for spending on Saturday gave the centre the confidence that the country will grow by around 7 per cent in the current fiscal.

For the first nine months of this fiscal, the economy grew by 6.9 per cent and the government's advance estimates pegged the growth at 7.1 per cent for the entire 2008-09.

Replying to a question on economic growth, Mukherjee said, "All these are estimates and of course between 6.9 and 7.1 (there is) not much difference, but I do hope when the final figures come out it would be around seven per cent."

The economy grew by 5.3 per cent in the third quarter of current fiscal.

To a query whether market is losing confidence due to slackening growth, he said, "I don't agree with your (interviewer's) contention." He said exact numbers could be known only after it becomes clear how will economy respond to stimulus packages.

"All these things...have to be seen for example slow revival of steel and cement industry has started, housing industry have been made adequate allocations, states have been provided funds, they themselves have good cash reserves of about Rs 91,000 crore, quite a few of them would like to spend a substantial quantum of money this year... all this would be available after March 31," he added.

Soruce:http://timesofindia.indiatimes.com/Business/Economy-to-grow-by-around-7-in-09/articleshow/4203968.cms

India rubbishes Pak navy's claims on sea route

NEW DELHI: India on Friday rubbished Pakistan navy's claims that Ajmal Kasab and other terrorists didn't use sea route to reach Mumbai.

Home Minister P Chidambaram took a dig at Pakistan on Friday for its flip-flops on Mumbai terror attacks.

"New Delhi is very clear regarding where the attackers came from,” Minister of State for External Affairs Anand Sharma said.

“Several countries too have supported our findings on 26/11 probe. Pakistan government too had accepted them. Now their navy is belying its own government’s claims,” Sharma added.

Meanwhile, Indian naval forces told Times Now, "We have enough proof of the fact that the terrorists came from Pakistan via sea. We have their boats and satellite phones."

Earlier, in a stunning denial Pakistan navy on Friday claimed that Ajmal Kasab, the lone surviving terrorist of the Mumbai attacks, and others didn’t sea route to land in Mumbai.

Pak Admiral Norman Bashir on Friday told reporters, "There is no proof behind Indian claims that Kasab landed in Mumbai to carry out attacks using sea route from Pakistan."

“Mumbai terror attacks reflect a complete failure of Indian navy,” Bashir added.

At the same time, he admitted that patrolling the waters on the Pakistani side of the international border off the Gujarat coast was "difficult" due to the dispute over the Sir Creek, IANS reported.

The latest statement by Pakistan navy is in complete contrast to the findings of the interior ministry in the 26/11 terror probe.

According to IANS, Bashir also sought to discount suggestions that Pakistan was engaged in an arms race with India.

Source:http://timesofindia.indiatimes.com/

Slowdown pulls down India's growth to 5.3%

NEW DELHI: Impacted by the global economic meltdown, the Indian economy has clocked slowest quarterly growth in over five years, at 5.3 per cent, in October-December of this fiscal as agriculture and manufacturing contracted, despite a stimulus package.

Against the whopping 8.9 per cent growth in the same period a year ago, economists said it is now the Reserve Bank's turn to provide stimulus to the economy by cutting rates, as inflation is already down to 3.36 per cent.

While the fall in manufacturing, by 0.2 per cent, in the third quarter was expected, as was evident in negative industrial production numbers for October and December, contraction in farm output by 2.2 per cent was a bit surprising.

"What has come as a surprise is agriculture. There is a turnaround but we can be optimistic that the figures will improve," Chief Statistician Pronab Sen said.

For the nine months of this fiscal, the economy grew by 6.9 per cent against nine per cent a year ago, which may make it difficult to attain the 7.1 per cent growth this fiscal, as was pegged officially.

The Government put up a brave front, saying the third quarterly growth is not much off the mark.

"We had maintained seven per cent with a downward bias. That much has been said, but (there is) still a quarter to go. Even with 5.3 per cent, it still comes around seven per cent, maybe a shade below that," Minister of State for Finance P K Bansal said here.

However, others are not as sure about the possibility of attaining 7.1 per cent growth this fiscal. "It is unlikely that the growth is going to be 7.1 per cent (for the entire 2008-09)," Sen said.

In December, the Government provided the first stimulus package, cutting excise duty by four per cent across the board and increasing planned expenditure by Rs 20,000 crore among other things.

However, stimulus packages, also provided in January, and then the interim Budget, would take some time to work their way through the system, economists said.

"(The) Government will not be able to achieve over 7 per cent growth. The stimulus packages will take 6-8 months (to lift the economy) and (it will take) 8-9 months to get about 7 per cent (growth)," Crisil Principal Economist D K Joshi said.

It was only services that provided a sliver lining to the otherwise gloomy situation on the growth front.

Source:http://timesofindia.indiatimes.com/Business/India-Business/Sensex-Nifty-end-in-red/articleshow/4201061.cms

BSNL launches 3G services in 11 cities

DELHI: Bharat Sanchar Nigam Ltd (BSNL), said on Friday it had launched third-generation (3G) services in 11 cities and planned to expand Smartphones services to other areas in the country.

BSNL said in a statement it had invested Rs 2,700 crore ($530 million) on rolling out 3G infrastructure and would cover all district headquarters and important commercial towns.

India will hold an auction of 3G spectrum later this year, but state-run firms have already been given one slot in each service area, and will have to match the highest bid from private operators.

Third-generation services give users a chance to enjoy fast Internet access, games and a host of multimedia content from maps to music on their cellphones.

BSNL provides telecoms services across the country except in the major cities of New Delhi and Mumbai, which are covered by another state-run firm, Mahanagar Telephone Nigam.

Soruce:http://timesofindia.indiatimes.com/Business/Rupee-hits-record-low-against-dollar/articleshow/4198725.cms

Sensex up further by 52 pts on fall in inflation

Mumbai, Feb 26: On the back of fag-end buying amid short-coverings mainly in auto, refinery and IT counters due to a fall in inflation as well as firm European cues, the benchmark Sensex reversed its initial weak trends and ended up by another 52 points, despite sustained capital outflows.

Brokers attributed the recovery in share values mainly to the covering of short positions on the last day of the February derivatives contract today.

The Bombay Stock Exchange 30-share Sensex initially touched a low of 8,788.32 but rebounded sharply to settle the day at 8,954.86, a rise of 52.30 points or 0.59 per cent over its previous close. Yesterday it was up by over 80 points.

The 50-share Nifty of the National Stock Exchange too rose by 23.15 points or 0.84 per cent to 2,785.65 from its last close.

Asian indices, however, gave a mixed performance with a downward bias due to fall on Wall Street yesterday on warning given by the US government about the financial institutions.
However, a smart rally in European markets at the opening also helped the late recovery in the index.