Mar. 30 – American President Barack Obama and Indian Prime Minister Manmohan Singh will meet for the first time at the sidelines of the G20 summit in London on Thursday. The meeting will be the first for Obama and possibly the last for Singh whose political party is up for elections this May.
Mar. 27 – The finance ministry is mulling over locking in investments of FII’s for a certain time period in select industries such as aviation, telecom and banking. While the Indian government has been relaxing FDI and FII norms to attract investments into India, it is also trying to curb foreign fund volatility.
Mar. 26 – The Supreme Court of India has ruled that a foreign company registered and situated abroad is liable to deduct tax on salary paid in the home country to their employees working in India, the Economic Times reported. Until now, the ruling held that TDS provisions could not extend beyond borders.
Mar. 25 – In a new ruling the Foreign Investment Promotion Board has said that foreign investors in real estate cannot sell their stake to another foreign investor before termination of the lock in period of three years, the Economic Times reported.
Mar. 24 – Australia and Japan are both stepping up their investments in India. Viewed as a nation that will weather the economic storm and continue to grow at an average 6.5 percent to emerge as the third largest economy by 2025, India has become an FDI magnet in the region.
Mar. 23 – The year’s most awaited car will officially be launched today. Tata Motors jellybean sized 10.2 feet, US$2000 Tata Nano will make Indian automotive history. Due to its revolutionary price tag, the People’s car, or the Nano, is designed for India’s burgeoning middle class and is expected to sell 50,000 cars during the next year.
Mar. 20 – Within a span of just seven months India has moved from a 16 year high inflation rate of 12.91 percent to a 32 year low inflation rate of 0.44 percent. The situation however represents a cruel paradox for consumers as food prices continue to rise during the deflation – food prices rose roughly nine percent year on year.
Mar. 2 – The Indian rupee hit a record low nose-diving to almost Rs 52 against the dollar on Monday due to rising foreign fund outflows. The Indian rupee which has depreciated significantly over the last few months shed 2.7 percent last week and 4.7 percent in 2009. India’s currency fell 19.1 percent in 2008 as foreign fund outflows reached US$13 billion. The rupee is expected to remain low at approximately Rs 52 to the dollar during the next few months.
FDI inflows into India more than halved in the third quarter of this fiscal ending December to US$3.94 billion compared with US$10.07 billion in the quarter ended June 30, Junior Commerce and Industry Minister Ashwani Kumar told the Wall Street Journal.
“There’s a lot of pressure on the rupee as portfolio investments are falling amid the worsening global equity prospects,” Sanjay Arya, Mumbai-based treasurer at state- owned Bank of Maharashtra told Bloomberg. “A rating downgrade by S&P is feared. In addition, the outlook for exports looks quite bleak.”