FM likely to start pre-budget consultation next week

Election are over, UPA formed the government and the cabinet expansion went a s well. Now it is the time for the UPA government to back to business. The Finance Minister Pranab Mukherjee will present the Union Budget 2009-10 in the Parliament in the month of July.

The Finance Minister is likely to start the pre-budget consultation with industry body and leaders by next week. The industrialists will have high expectations from the budget as they are going through a tough time of global slowdown.

This time the government might have allocation for industries in the forthcoming budget. The Finance Minister had presented the interim budget 2009-10 in the month of February. And in the full budget 2009-10 the finance minister may keep many options open of the industries. The major concern for would be to check fiscal deficit in the budget.

Four Nominee Directors of Tech Mahindra join Satyam Board

Tech Mahindra's four nominee directors and the Chief Executive Officer Vineet Nayyar have joined the board of Satyam Computer on Wednesday. The CEO of Tech Mahindra, Vineet Nayyar will be whole time director of Satyam computer with effect from Thursday.

The CEO of Tech Mahindra has team of three directors those joined Satyam Board are - CP Gurnani, Sanjay Kalra and Ulhas N Yargop. The Government of India earlier appointed six directors for Satyam after the scam came to light.

Now the strength of Staym Board reaches to ten members, which induction of four by Tech Mahindra. Tech Mahindra has acquired 31% stake through preferential allotment.

HCL gets 240 crore BSNL project for 7 years

HCL Infosystems has announced that of getting Rs 240 crore project from state-run telecom operator Bharat Sanchar Nigam (BSNL). The project will continue till 7 years and the project involves the implementation of over 60,000 enterprise resource planning (ERP) licences for BSNL.

Under the project HCL would provide service to BSNL - including business process re-engineering, hardware, networking, operations & maintenance customisation, training to BSNL employees and program management.

It is expected that the BSNL's finance, commissioning and operation functions would be shifted to single ERP system by HCL under the contract. Main data centre and data recovery centre would be set up in Hyderabad and Kolkata respectively.

Stimulus Packages are important to check impact of global recession

The global economy has been going through a tough time of global recession. Major economies in the world have been arranging the fiscal stimulus to check the impact of the global recession their economy.

The impact of the global recession on Indian economy is lower than other countries. The Reserve Bank of India Governor Dr Duvvuri Subbarao believes that the stimulus packages will have great role to play in checking the impact of the global recession, he was addressing function.

It is time to introspect the progress of the stimulus packages on the impact of the global recession on Indian economy. The economy has been reeling under the pressure of the global slowdown for last eight months. The factors like high demand and strong banking can protect the economy from further shrinking into the global recession.

The world's major economy will recover from the global recession including Indian economy. The current fiscal would be tough time for many countries as the impact of the global recession is high.

Inflation rises to 0.61per cent from 0.48 per cent

The inflation rises to 0.61 per cent for the week ended May 9 from 0.48 per cent recorded in the previous week. The rise in the inflation is due to the prices of the essential goods and services in India.

The Reserve Bank of India may go for further measures to check the liqudity crisis in the market and the inflation is no weighing high on the economy. The price of the food items is the major concern for the people and they spend a major portion of their household budget on food items.

The rise in the inflation however is good indication for the economy at this juncture. The impact of the global slowdown is there and affected the household budget. It is expected there will a marginal rise in the inflation in current fiscal. The inflation rate in 2008-09 was at around 8 per cent and the current rate is around 0.1 per cent.

Will demand for gold rise in India?

The gold market of India is considered as the biggest market in the world. According to the World Gold Council, there was decline in the demand for gold in India in this quarter. WGC says in a published reports that there market traded 17.7 tonnes of gold in this quarter in 2009.

In this quarter there is decline in the gold trade in India by 83 per cent as comparison to previous years tradings. The gold selling hit high despite high price during the festival times and particularly on the Akshaya Tritiya.

Despite the marriage season in India, the demand for gold is bit low due to the high prices. The traders and business men of gold trade had anticipated that there would more demand for the the gold. The global factors have been influencing the gold market in India. Any decrease in the gold price would boost its sales in Indian market, which will help Indian gold market.

UPA to form government, will there be more economic reforms?

The Congress led United Progressive Alliance (UPA) gets the mend ate from the people of the largest democracy of the world. The election results were stunning for the BJP and Left party in India. UPA will back to power and carry on the business.

The first Monday after the General Elections was proved good for the stock market and gain the confidence of the all sort of investors including the global financial investors. In 2004, after the election and mandate to UPA, the markets had responded in the similarly way.

The people of India will have one big question in their mind, whether the UPA government will go for more and more economic reforms as it did to tackle the impact of the global financial crisis. Now the approach for economic reforms would be every easy for the UPA government as the Left will not be there in Government.

The UPA government without Left parties obstacles over the economic policies would expect to function very well. Industry body and the corporate world expect big economic reforms from the new government of India.

Last year has been tough time for the government due to the global financial crisis. And there will be more responsibilities on to be Finance Minister of India. The forthcoming budget will give the highlights of the government's possible performance.

It can be expected that the government of India would go for more and more economic reforms in the forthcoming years. The priority of the government will be to check the impact of the global crisis.

SBI decreases rate of interest on deposits by 50 bps

The State Bank of India has declared cut in the deposit rates by 50 basis points on various types of deposits.

The new rate will be effective from May 18, according to media reports. However, the bank did not change the rate of interest for the deposits over 5 years and below 10 years of term.

As per the new rates, the rate of interest for the the deposits upto 180 days is 5.5 per cent and 3.25 per cent for the deposits of 15 to 45 days. This is the third time the bank cut the rate of interest, earlier the bank cut on April 13 and May 2.

Hyundai plans to shift i20 production to Europe from Chennai

The second largest car maker in India, Hundai Motors India Ltd plans to shift the production of i20 model to Europe from Chennai. i20 is one of the popular car in Indian market which costs around 5 lakhs.

It is reported that the i20 car would be the entry level car in Europe market. The company might be planning for best sales in Europe market. The company will however provide the number of units required in Indian market.

The selling of the small cars have been getting better response in India. Many other companies have also planning to introduce small cars in India.

Hot summer gives boost to refrigerator sales

It is summer in India, tough time for the people to set out in the morning to their work and other places. But the summer hots in India have proved good result for the refrigerator making companies in India.

There is a rise in the sales of refrigerators in India. It was expected the sales of these cooling product might not get proper response in the market as the world is reeling under the pressure of global financial crisis.

Some major companies have registered huge sales in the products and some companies have introduced varied products to lure the customers. Despite the slowdown, customer have turned on to spend money on refrigerators.

Keeping the initial boost companies have been planning to introduce more and more products to get highest sales in the summer. The boost in the sales in the summer will cover the loss in the business due to the slowdown. The companies have got good cool business from hot summer in India, even impact of the global slowdown is faded for those companies in India.

Inflation rises - a concern for Indian economy?

The inflation rises to 0.71 per cent for the weekended at 25 April. The inflation has been rising since last three to four weeks in India. The high political campaign and polling in the biggest democracy of the world, the inflation was said to be core issue. But other issues marginalize the inflation as a cores issue in India politics.

The inflation was once seen at around dual digit in the month of August last year and significantly came down to zero this year. Thanks to the fiscal policies were adopted by the Government of India and the Reserve Bank of India.

Even during the high inflation rate it was too difficult for the middle class people to handle the daily budget and family expenses. The rise in the essential goods is the biggest concern of the people. The inflation however may be at around zero but there is no respite in the price for the people.

The political leaders might forget the inflation rates and its impact on Aam Admi with the ending of fifth phase polling in the country. But the people will ever remembers the high price they have been paying due to the high inflation rate.

It seems that price mechanism is only in theoretical aspect in India. In practical, there might be any impact of the price mechanism. Market bottleneck may be the best way for retailers or wholesalers to grab more profit. In the case of onion shortage in year four year ago was the brightest example of market bottleneck in India.

Whatever the impact of the inflation on Indian election but the people are the soft target, those ought to pay the high price. It does not matter whether elections are there or not. Inflation will change your household budget.

Swine Flu hits travel and aviation business

With the out break of Swine Flu in many countries the travel industry is like to suffer further. The industry was affected due to the global slowdown and now the flu is a burden on this sector. There were many reports of death caused by the flu in many countries.

The outbreak of flu will have adverse impact on many sectors including the travel and aviation. Precautionary measure are being adopted by people in many countries. Before it could take a shape of epidemic, it is expected to have any solutions from the medical experts.