India’s expansion slowed in the fourth quarter, reflecting a poor monsoon rainfall that hurt farm output, underscoring the influence of agriculture in a nation aiming to become the world’s fastest growing economy.
GDP grew 6 percent from a year earlier after gaining 7.9 percent in the previous quarter, the Central Statistical Organization said in New Delhi yesterday. The government forecasts growth would quicken to 7.2 percent in the year to March.
The government yesterday also vowed to rein in its gaping public deficit with a new budget that counts on higher tax revenue and sales of stakes in state companies to sustain its flagship social spending.
Indian Finance Minister Pranab Mukherjee promised to cut the budget deficit, currently at a 16-year high of 6.9 percent, to 5.5 percent in the next fiscal year to March 2011.
“On the path of fiscal consolidation, I have given the correct signal,” Mukherjee said in a speech that also announced the reversal of some stimulus measures put in place during the global downturn to kickstart the economy.
Reducing the deficit was seen as a priority for the left-leaning government, which has promised to ensure that India’s rapid expansion benefits the nation’s hundreds of millions of desperately poor.
Mukherjee has said he will cut the deficit while increasing spending for education, jobs, agriculture, health and other sectors while cutting tax for consumers.
He is counting on a higher income from taxes generated by accelerating economic growth in Asia’s third-biggest economy, the fastest growing in the world after China.
Further revenues would be generated from an aggressive drive to sell stakes in state-owned companies and auctions of bandwidth for high-speed 3G mobile phone networks.
Mukherjee promised that the growth would be used to help fund the government’s huge social programs and infrastructure spending, seen as cornerstones of economic development.
He also hiked excise duties on non-petroleum products, crude and petroleum and on large cars and multi-utility vehicles —the first steps aimed at rolling back the giant government stimulus measures.
But he also put more money into consumer pockets, raising personal tax exemption limits.
“It is a growth-promoting budget, the stimulus withdrawal will not hurt growth stimulus and the tax concession will boost private consumption,” he said.
PROTECTIONISM: China hopes to help domestic chipmakers gain more market share while preparing local tech companies for the possibility of more US sanctions Beijing is stepping up pressure on Chinese companies to buy locally produced artificial intelligence (AI) chips instead of Nvidia Corp products, part of the nation’s effort to expand its semiconductor industry and counter US sanctions. Chinese regulators have been discouraging companies from purchasing Nvidia’s H20 chips, which are used to develop and run AI models, sources familiar with the matter said. The policy has taken the form of guidance rather than an outright ban, as Beijing wants to avoid handicapping its own AI start-ups and escalating tensions with the US, said the sources, who asked not to be identified because the
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
CHEMICAL FIRE: 10 Indian employees were injured by smoke inhalation at a Tata Electronics plant in Tamil Nadu state that produces components for Apple Inc At least 10 people received medical treatment, with two hospitalized after a major fire on Saturday disrupted production at a key Tata Electronics Pvt Ltd plant in southern India that makes Apple Inc’s iPhone components. The fire occurred at the plant in the city of Hosur in Tamil Nadu state that makes some iPhone components. It broke out near another building inside the Tata complex, which was to begin producing complete iPhones in the coming months. The fire was contained to one building and has been extinguished fully, top district administrative official K.M. Sarayu said. No decision has been made on when
RSS