GDP growth expected at 9.2 per cent in FY08: CII
New Delhi: According to industry body the Confederation of Indian Industry the Indian economy is expected to show a marginal decline in GDP growth to 9.2 per cent in the current fiscal from 9.4 per cent in 2006-07 with services sector and industry maintaining the momentum.

According to the chamber, the agriculture sector would show a moderate 3 per cent growth, against 2.7 per cent in 2006-07.

The industry and services sector are expected to grow at 9.4 per cent and 11.2 per cent respectively during 2007-08.

On the whole, CII expects the GDP growth to be 9.2 per cent during 2007-08, with agriculture growing at 3 per cent, industry at 9.4 per cent and services at 11.2 per cent the chamber said in its 'state of the economy' report.
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Demand for cement zooms
Chennai: Despite operating at full capacity most cement plants across the country are unable able to meet market demand.

Keeping in mind that the monsoons have started under normal circumstances, most manufacturers would have gone in for maintenance shutdown of the plants either just before the onset of the southwest monsoon or after the rains have started. They would build up stocks to meet the demand after the monsoon. The heavy demand this year has changed all that.

According to manufacturers, prices will continue to be high mainly because of the huge and growing gap between demand and supply. Despatches are higher in the first three months of this year over the same period last year (see table). Data available shows that all the major manufacturers have operated their plants at between 92 per cent and 130 per cent capacity in April and May 2007.

This, say the manufacturers, shows that the cement companies are doing their best to meet demand and there is no question of slowing down production to artificially push up prices.
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CPI criticizes UPA's retail policies
New Delhi: The Communist Party of India, (CPI) ahs criticised UPA's economic policies warning against the entry of big business in retail, as it would render a huge population jobless.

The CPI meet has issued a strong indictment of the UPA government's policies including the flag-ship legislation - the NREGA (National Rural Employment Guarantee Act). "NREGA's implementation is disappointing. It has failed to tackle unemployment," the party resolution said.

The party has sought a sincere mid-term review by the UPA government on all its policies that has bearing on price rise, employment, livelihood, SEZ, and farmers. Though the party says it is not going to withdraw support to the UPA government on these issues, but along with other Left partners, it would press for a mid-term correction in the government's policies and also review our relationship with UPA in the context.

CPI has also accused the Congress party of reversing land reforms by allowing big businesses to divest farmers of their land through contract farming. The party has threatened a country-wide agitation to protest against UPA's failure to change the economic conditions of farmers.
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Global 3G auction may take place
New Delhi: New Communications Minister A Raja says he may opt for a global auction of third generation technology (3G) licences, a move that will allow virtually any global operator to bid for offering this service in India.

According to sources familiar with developments, the global auction is aimed at attracting more foreign companies and sizeable investments to the market.

An auction will also fetch billions of dollars in the form of licence fees, especially now that India allows 74 per cent foreign direct investment in telecom services, which was not the case when the current set of mobile licences was awarded.

On the issue of additional fees for existing operators, the sources added that when global system for mobile (GSM) communication licences were issued in the mid- and late-'90s, the government had charged a one-time fee and allowed operators to use 4.4 MHz of spectrum (radio frequencies that make wireless communication possible and, therefore, the most valuable resource for mobile networks).

Operators have been allotted additional spectrum from time to time because of the huge growth in subscriber numbers since then. This was subject to operators fulfilling certain criteria like minimum number of subscribers as well as paying a spectrum use fee as a percentage of revenues.

Both measures — a global auction of 3G licences and an additional levy on existing 2G operators — will need discussion and agreement with the regulator, the Telecom Regulatory Authority of India. The sources added that the ministry was keen to take the regulator on board on all such issues.
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