Summary : The Finance Minister of India held pre-budget consultations with trade union groups to discuss measures for safeguarding workers' interests. The meeting addressed economic challenges such as inflation, the euro-zone crisis, and a current account deficit. Trade union representatives suggested aligning contract labor wages with regular labor, amending company laws for profit sharing, revising personal income tax ceilings, and improving the MGNREGA scheme. They also emphasized tackling issues like child malnutrition, child labor, and farmers' suicides, and proposed assured pensions for all workers. The consultation aimed to incorporate these suggestions into the 2012-13 budget to enhance worker welfare.
Summary : The Government of India announced the re-issue of three government stocks through price-based auctions: 7.83% Government Stock 2018 for Rs.4,000 crore, 8.79% Government Stock 2021 for Rs.7,000 crore, and 8.83% Government Stock 2041 for Rs.3,000 crore. The Reserve Bank of India will conduct the auctions on January 20, 2012, using a uniform price method. Up to 5% of the stocks will be reserved for eligible individuals and institutions under a non-competitive bidding scheme. Bids must be submitted electronically, with results announced the same day and payments due by January 23, 2012.
Summary : The Finance Minister expressed confidence that inflation moderation would persist in the coming months, predicting headline inflation to range between 6% and 7% by March 2012. The decline in December 2011's inflation rate to 7.47% from November's 9.11% was attributed to reduced inflation in primary articles, particularly food. Although manufactured goods' price softening might be gradual, overall macro-economic conditions showed improvement in late 2011. Despite marginal declines in manufactured and power group item inflation, these areas remain concerning. The annual inflation rate for December 2011 decreased to 7.4% from 9.11% in November and 9.45% in December 2010.
Summary : The Ministry of Corporate Affairs in India plans to establish the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT), replacing the Company Law Board and other financial reconstruction boards. These tribunals were initially included in the Companies (Second Amendment) Act, 2002, but faced legal challenges in the Madras High Court. The Supreme Court resolved the matter in a judgment dated May 11, 2010. The revised Companies Bill, 2011, introduced in Parliament, incorporates the Supreme Court's guidelines from this judgment.
Summary : Abu Dhabi Investment Authority (ADIA) is exploring investment opportunities in India, with a focus on infrastructure projects. A meeting between ADIA's Managing Director and India's Minister of Commerce discussed forming a Joint Working Group to expedite investment processes. India plans to invest $1 trillion in infrastructure over the next five years, presenting lucrative opportunities, particularly in the Delhi Mumbai Industrial Corridor. Both parties emphasized diversifying investments into sectors like pharmaceuticals, services, and agro-processing. They also discussed enhancing trade relations and the potential for a Free Trade Agreement between India and the Gulf Cooperation Council. Bilateral trade has significantly increased, yet remains underexploited.
Summary : India's exports from April to December 2011 grew by 25.8%, reaching $217.6 billion, according to the Commerce Secretary. During this period, imports totaled $350.9 billion, marking a 30.4% increase, resulting in a trade deficit of $133.3 billion. In December 2011, exports were $25 billion, while imports were $37.8 billion, leading to a $12.8 billion trade deficit for the month. Key export sectors included engineering, petroleum products, gems and jewelry, and pharmaceuticals. Significant import growth was seen in petroleum, gold and silver, machinery, electronics, fertilizers, and coal. The figures are preliminary and may be revised.
Summary : The Wholesale Price Index (WPI) for all commodities in India for December 2011 remained at 156.9, unchanged from the previous month. The annual inflation rate based on the WPI was 7.47%, down from 9.11% in November 2011. Primary articles saw a decline of 1.6%, with food articles dropping by 3.1%. The fuel and power index increased by 0.6%, while manufactured products rose by 0.6%. Notable price changes included decreases in fruits and vegetables and increases in non-food articles and minerals. The inflation rate for the financial year to date was 4.95%, compared to 7.12% the previous year.