INDIA BUSINESS UPDATE - Economic Survey Pegs FY12 GDP Growth At 8.75-9.25%; Mamata Banerjee Presents No-Hike-In-Fares Budget; Sensex Up 68 Pts

Friday, Feb 25, 2011 SPECIAL LEAD Click here for India Business Update Mobile Version ECO SURVEY PEGS FY12 GDP GROWTH AT 8.75-9.25% The Economic Survey pointed out that slowdown in FDI as well as tepid growth in developed countries could hit India's exports and strain its balance of payments. It said that the government needed policies to help reverse a fall in FDI inflows which was at $19 bn in the fiscal year to November 2010, while FDI totaled $33.1 bn in the 2009-2010 fiscal. Food inflation, higher commodity prices and volatility in global commodity markets have been a cause of concern too. Also, there has been no significant capacity expansion in core industries. Also See Highlights. read more LEAD STORIES MAMATA UNVEILS POPULIST RAIL BUDGET, DUCKS REFORMS For the third successive year, the Railway Budget for 2011-12 spared the passengers of any increase in fares and proposed no hike in freight rates. read more SENSEX SNAPS 3-DAY FALL AS OIL PRICE JITTERS EASE Sensex closed 68.50 points up at 17,700.91, on strong GDP growth prediction and easing concerns over oil. Nifty ended at 5,303.55, up 40.85 points. read more MARAN TWEAKED NORMS FOR SOME OPERATORS: SHOURIE Arun Shourie has told CBI that his successor Dayanidhi Maran had tweaked the TRAI guidelines in 2005 to benefit some operators. read more TOP STORIES • NALCO CMD, wife arrested in alleged bribery case • I-T Dept slaps Rs 450 cr demand on Infosys • NPPA realised just 9% of Rs 2.3K cr overpricing notices • Captive port policy to be out in 15 days: Shipping Secy • Rail Budget: Lowers annual wagon orders, stocks fall • Eco Survey: Farm sector growth to rebound to 5.4% • Eco Survey: Turnaround time at ports rise to 4.38 days • Eco Survey: Services sector growth slower at 9.6% • Eco Survey: Banking licences for industrial houses • Eco Survey: Gujarat tops labour unrest chart • Red Fort to buy 26% in Rs 200 cr Ansal project • Fortis to up stake in Aussie's Dental Corp to 58.6% • MphasiS stock falls 27% on weak Q3 • FDI buzz lifts airline stocks on BSE • No plans to list Jaguar Land Rover: Tata Motors • AI to operate 2 flights to Tripoli from Mumbai, Delhi • Oil off highs, Saudi pumps more amid Libyan outage • Obama calls world leaders to discuss Libya • AIG's swings to profit of $11.17 bn in Dec quarter • The biggest company you never heard of more stories TOP VIDEOS Mamata Banerjee Presents The Railway Budget In Parliament See No Real Concern On FII Inflows: Kaushik Basu, Chief Economic Advisior We Are Going To Face Huge Escalations In Commodity Prices And The Impact Of That On The Manufacturing Sector: Baba Kalyani, Chairman & MD, Bharat Forge As A Critique, Yes, Fiscal Consolidation Is Okay But Not Squeezing Out The Growth Potential: Amit Mitra, Secretary General, FICCI Every $10 Increase In Crude Is Roughly 50 Bps Hit To The Current Account Deficit: Parul Saini, ED, RBS Asia Securities AT A GLANCE BSE 17700.91 +68.5 NSE 5303.55 +40.85 TURNOVER Rs. 124,217 cr BSE CASH Rs. 3,310 cr NSE CASH Rs. 13,446 cr NSE F&O Rs. 107,460 cr BULLION GOLD 20900 -196 SILVER 49490 -544 CRUDE WTI 97.41 +0.13 BRENT 5072.42 -130.91 FOREX $ / Re 45.32 +0.2 £ / Re 72.906 -0.2 € / Re 62.338 -0.28 HIGHLIGHTS ECONOMIC SURVEY Monsoon, Crude Prices Pose Risk To Economic Growth Apr-Dec Average Inflation Of 9.4% Highest In 10 Years FY11 Fiscal Deficit To Be Lower At 4.8% 6 Core Industries Growing But Not At Full Steam PFRDA Bill Must Be Passed To Usher Pension Reforms Savings & Investment Rates Likely To Be Raised Further 59% Rise In Net Bank Credit DTC Proposed To Be Launched In April 2012 RAILWAY BUDGET Highest Ever Plan Outlay Of Rs 57,630 Cr Market Borrowing At Rs 20,594 Cr Expected Operating Ratio Is 91:1 To Introduce 56 New Trains To Raise Rs 10,000 Cr Via Tax Free Bonds 12,000 Acre For Dedicated Freight Corridor 18,000 Wagons To Be Procured Aiming 700-Km Of Line Addition Every Year Introduce Trolleys At Railway Stations 16,000 Ex-Servicemen To Be Inducted By March 2011 Online Booking Of Tickets To Be Cheaper EXPERT VIEWS "We find the Economic Survey 2010-11 very encouraging, but any aggressive move to reduce fiscal deficit will impact growth and employment generation. We hope to see something concrete in the forthcoming Budget for innovation and skill development, which is important for the country's economy growth." Amit Mitra Secretary General, FICCI "... She (Mamata Banerjee) has played tricks with figures and has cunningly juggled with statistics. Railway should have grown at around 12% to maintain the country's growth rate of 8-9%, but sadly the growth rate of the PSU is a mere 3% at present. Despite Railways' strength and sound economic fundamentals, they (the Government) have done the unthinkable of turning Railways bankrupt." Sitaram Yechury CPI-M Leader "If this (Railway Budget) is pro-people let it be populist. When they know they cannot fight they make all such allegations. We have given projects to entire country including Jammu & Kashmir, Manipur and Assam. Bengal is not outside India." Mamata Banerjee Railway Minister WATCH OUT Union Budget 2011 CNBC-TV18 will present exclusive and comprehensive LIVE budget coverage through the day from multiple locations, showcasing reactions from the leading names in India Inc. and policy making, the nation's biggest market experts and fund managers, tax specialists and views of India's flagship industry bodies. SHOW TIMINGS Monday 8 am onwards