FDI may be allowed in multi brand retailing
New Delhi: The government is mulling allowing foreign investment in multi-brand retailing in sectors like electronics and sports goods. In the revised FDI guidelines to be announced by July, the Centre may open up areas such as household appliances, professional goods and sports goods for foreign investment.

Sources said at a recent Congress party meeting chaired by Sonia Gandhi, a case was made for allowing 51 pc FDI in multi-brand lifestyle retail like sports goods, apparel and gems, & jewellery.

The government allows 51 pc FDI in single-brand retail, and 100 pc FDI in wholesale cash & carry. However, it has not yet been able to get political support for allowing FDI for multi-brand retailing in any sector. In fact, the Left parties have suggested that retail trade by organised sector in the domestic market, too, needs to be regulated through a licensing system.
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Inflation comes down to 5.06 pc
New Delhi: Inflation has fallen to 5.06 pc the lowest in seven months, on the back of falling food prices taking pressure off the government and Reserve Bank to tighten fiscal and monetary policies.

This was the first time in many months that the inflation rate -- at 5.06 pc for the week ended May 19 -- moved close to the year ago level of 5.05 pc.

Inflation declined despite rising of all the major indices, mainly due to a high base effect. In fact, the aggregate Wholesale Price Index went up 0.1 pc to 211.9 points during the week from 211.7 points a week ago. The inflation seems to have fallen because price movements are compared with those of corresponding period last year. And on a high inflation base of 5.05 pc last year, even rising prices resulted in inflation of 5.06 pc for the week under review.

At specific levels, food articles group index rose 0.1 pc non-food articles group index 0.3 pc minerals index 0.1 pc, fuel, power, light and lubricants index 0.1 pc and manufactured products index 0.1 pc.

Prices of some food articles declined -- cereals 0.2 pc, pulses 0.4 pc, processed tea by 9 pc, khandsari 4 pc, sugar 2 pc, butter and gur 1 pc each.

Vegetables prices however rose by 1.1 pc and fruits by 0.5 pc.
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UP government cancels sugar policy
New Delhi: The UP government has cancelled the state's Sugar Industry Promotion Policy, 2004 with immediate effect and says it will replace it with a new one in 15 days. The new policy will be in consultation with the stakeholders and will take into account the investments that were made under the previous policy.

The 2004 sugar policy announced by the Mulayam Singh government included incentives like 10 per cent capital subsidy on investments; remission of stamp duty and registration charges on land purchase; reimbursement of transport cost from factory up to a distance of 600 km from the state's border, and, reimbursement of additional cost of cane transport from out-centres to factory gates.

These sops were to be given for a five-year period to any company investing a minimum of Rs350 crore and for 10 years in case the investment is of Rs500 crore or more.

Companies like Bajaj Hindusthan, Balrampur Chini Mills, Triveni Engineering and Industries, among others, had made investments worth Rs5,000 crore in UP to set up 28 sugar mills under the 2004 policy.

According to sources, the scrapping of the 2004 policy is a blow to the business houses which enjoyed proximity to the Mulayam Singh Yadav-led government. The earlier sugar policy was, allegedly, to favour Bajaj Hindusthan Sugar mills.
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Govt to encourage imports to control price rise
New Delhi: The government is planning to encourage more imports in order to control price rise.

Commerce Minister Kamal Nath told the press on the sidelines of an award function organised by the Engineering Export Promotion Council (EEPC) here, "To deal with supply side constraints, adequate capacities will have to be created. Wherever this is not possible, we will have to resort to imports."

Nath said the government was in the process of formulating a scheme to provide relief to exporters and would incorporate valid suggestions from exporters.
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Exports up 23 pc to $10.6bn in April 07
New Delhi: According to the latest trade data figures exports for April 2007 grew 23.06 pc to $10.57 billion as compared to $ 8.59 billion in the corresponding month of the previous year.

Imports during April also witnessed a sharp hike of 40 pc and stood at $ 17.63 billion as against $12.53 billion during April, 2006. Oil imports stood at $4.42 billion, an 11.4 pc increase over $3.97 billion in the year ago month. Non-oil imports during April 2007 stood at $13.21 billion over $8.56 billion, a rise of 54.29 pc.

The trade deficit for April 2007 stood at $7.06 billion against $3.94 billion in the corresponding month of the previous year, an increase of 79.18 pc.

K T Chacko, director of Indian Institute of Foreign Trade and former director general of Foreign Trade, said the figures in the April, 2007 export data may not be exclusively from the month. "Export data is recorded when the shipping bill is submitted by an exporter to the directorate general of Commercial Intelligence and Statistics. During the months of February and March, export activity increases and hence many shipping bills get submitted late," he said. He further added that the real impact of the rupee appreciation on exports could only be assessed in the coming months as the current exports are a result of contracts signed at least six months back.
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