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Indian Economy This Week

(24th Jan 2005 to 30th Jan 2005)


GOVT TO EXPEDITE DISINVESTMENTS PROCESS
Heavy Industries Minister Santosh Mohan Dev will meet Finance Minister P Chidambaram on January 25 to work out the modalities for disinvestment in Maruti and Bhel. Government is likely to sell 10 per cent of Bhel shares and five per cent of Maruti's equity, sources close to the disinvestment process said. The sale of 10 per cent of Bhel shares is likely to fetch about Rs 2,000 crore while Maruti's five per cent stake sale will mop up close to Rs 700 crore.

INDIA, CHINA SET TO RULE THE WORLD.
In a far-reaching projection, the CIA-Commissioned study said that 21st century belongs to these two Asian Giants. So far ahead, the report says, that the elephant is stumbling behind in most measures such as overall GDP, amount of foreign investment, and per capita income. In recent years, India's growth rate has lagged China's by as much as about 20 per cent. Nevertheless, some experts believe that India might overtake China as the fastest growing is probably more at risk than is India's; should China's growth slow by several percentage points, India could emerge as the world's fastest-growing economy as we head towards economy in the world, the report says. India would be hard-pressed to accelerate growth rates to levels above those reached by China in the past decade. But China's ability to sustain its current pace 2020.

INFLATION DIPS TO 5.42% - LOWEST IN 33 WEEKS
The overhead inflation rate has continued to move southward, for the latest reported week, touching a 33-week low of 5.42% from 5.6% in the previous week.

The inflation rate for the week ended January 15, shows that the drop was mainly due to lower prices of essential items like vegetables, fruits, tea and edible oils, though the index for manufactured products has risen by 0.1%. Prices have risen for some key industrial items like cement, furnace oil, steel sheets, copper wires and electric motors.

KAMAL NATH TO ATTEND WTO MINI-MINISTERIAL MEET
India will press for greater market access for developing countries in the servcies sector besides highlighting concerns in agriculture and industrial goods negotiations at the WTO mini-ministerial on Saturday, 29 January 2005, at Davos, Switzerland.

The mini-Ministerial, being held on the sidelines of World Economic Forum Summit at Davos in Switzerland, is aimed at giving a new impetus to the ongoing multilateral trade talks.

The meeting also assumes significance in the backdrop of the race for WTO director general hotting up. Former EU trade commissioner Pascal Lamy and three other canditates are in fray. The candidates in the fray to succeed Supachai Panitchpakdi of Thailand are: Luiz-Felipe de Seixas Correa of Brazil, Lamy of France, Jayen Cuttaree of Mauritius and Carlos Perez del Castillo of Uruguay.

Commerce Minister Kamal Nath will spearhead developing countries views for greater market access in services and industrial goods sectors after the July Framework laid down the roadmap for negotiations in farm sector