NIFTY BELOW 200 DMA : BUT FM HAS BEGUN FIRST STEP TOWARDS REFORMS

NIFTY BELOW 200 DMA:  WORST HAS BEGUN

LATE DECISION BUT THE LATEST REFORMS HAS BEGUN.

WILL IT CHANGE THE COURSE OF MARKET DIRECTION IN INDIA.

WATCH OUT BEARS............ THE FIRST STEP FROM FM HAS BEGUN...................

MANILA: The Indian government is committed to bringing down subsidies to below two percent of the country's gross domestic product (GDP) in the current fiscal and cut it further to 1.75 percent in the next three years, Finance Minister Pranab Mukherjee said here Saturday.

Addressing a press conference after taking over as chairman of the board of governors of the Asian Development Bank (ADB), Mukherjee said the government was taking measures to boost growth and curb fiscal deficit.

"On the fiscal front, we are committed to bring down the subsidy bill below two percent of GDP in 2012-13 and to 1.75 percent of GDP in next three years," he said.

 

 

ADB to provide $6.25 billion to India

PTI | May 5, 2012, 07.54PM IST

 

 

 

MANILA: The Asian Development Bank (ADB) will provide assistance of USD 6.25 billion to India over three years for various projects, including those in the energy and education sectors.

"ADB's three-year country operations business plan for India for 2012-2014 will provide lending assistance of USD 6.25 billion to support inclusive and environmentally sustainable growth," Secretary, ADB, Robert Dawson told PTI.

The lending support will go to key areas like transport, energy, urban development, agriculture natural resource management, finance and education.

Mukherjee said the loosening of monetary policy by the central bank will help revive private investments and boost business sentiments.

The Reserve Bank of India (RBI), in its annual monetary policy for 2012-13 announced April 17, lowered key policy rates by 0.50 percent. This was the first rate cut by the central bank in three years.

"I hope this will help in investment revival and contribute to strengthening of business sentiments," he said.

The finance minister said India's economic growth is likely to accelerate in the coming years with the government's efforts to revive investments.

"In the union budget for 2012-13, we have focused on strengthening domestic growth drivers, encouraging private investments to regain its pre-2008 crisis growth momentum and addressing supply constraints in infrastructure and agriculture sector," Mukherjee said.

India's economic growth is estimated to fall to 6.9 percent in 2011-12 as compared to 8.4 percent registered in the previous year.

The government has set a target of 7.6 percent growth for the current financial year that began April 1.

Mukherjee said crisis in the euro zone had negatively impacted Indian economy.

"The unfolding of the Euro zone crisis has impacted the Indian economy through lower growth, falling business sentiments, declining capital inflows and exchange rate and stock market volatility with attendant implication for investor confidence," he said.