Economy

Berlin, PTI: Germany on Thursday pressed India to hike the foreign equity cap in the insurance sector and reduce tariffs on import of automobiles as a prelude to the much- awaited India-EU Free Trade Agreement even as the two countries signed six pacts including one under which a German loan of Euro one billion(Rs 7,000 crore) will be provided for a green energy corridor in India.

New Delhi, PTI: Indian Reserve Bank Deputy Governor H R Khan said the central bank is initiating action against ICICI Bank, HDFC Bank and Axis Bank in connection with allegations of money laundering by Cobrapost.

"Actions are on the way. Scrutiny has been done, actions is being taken both in respect of systemic level and at the individual banks," he said when asked if RBI has completed investigations on Cobrapost exposes.

Berlin, PTI: Prime Minister Manmohan Singh arrived here today on a three-day visit to promote India as a lucrative business destination as it continues to take steps to boost domestic investments, attract foreign investors and spur the economy back to its long term growth potential of 8 per cent.

Terming Germany as a "key partner" for India in areas like infrastructure, manufacturing, science, technology and clean and renewable energy, he said, "We expect to sign a number of agreements and Memorandums of Understanding in these areas".

New Delhi, PTI: Multilateral funding agency ADB today said India's growth rate will improve to 6 per cent in the current fiscal on the back of stronger external demand and progress on reforms.

Reforms are needed in India to facilitate the turnaround from growth deceleration due to structural bottlenecks, deteriorating investment and a worsening current account deficit, said 'Asian Development Outlook 2013' report.

New Delhi, PTI: Finance Minister P Chidambaram on Saturday said the government will amend the Income Tax Act once the over Rs 11,200 tax dispute with Vodafone is resolved.

The Minister said, however, that such an amendment was unlikely in the ongoing Budget Session.

"An amendment to the I-T act is necessary. The question is when do you move the amendment?

Bangalore, PTI: Dismissing fears of the country heading towards a 1991-type of economic crisis, RBI Governor D Subbarao today said India is "unlikely" to face a similar balance of payments situation even as the large current account deficit (CAD) is a matter of concern.

New Delhi, PTI: The Indian government on Thursday gave sugar mills freedom to sell in the open market and unshackled them from the obligation of supplying the sweetener at subsidised rates for ration shop -- a decision that will help the industry save about Rs 3,000 crore annually.

The government maintained that the decision will not lead to any rise in retail prices of sugar. However, it would double the government's subsidy burden to Rs 5,300 crore annually from about Rs 2,600 crore.

New Delhi, PTI: Giving a pep talk to boost investor confidence, Prime Minister Manmohan Singh promised further liberalisation of FDI regime and push ahead land reform measures expressing confidence that the economy can return to 8 per cent growth with decisive government action.

Addressing the business and corporate leaders, he termed the business mood in the country as unduly pessimistic and that the economy was facing only a temporary downturn.

New Delhi, PTI: Dragged down by natural gas and fertilisers sectors, the eight core industries shrank 2.5 per cent in February, a worst ever performance in decades, which is likely to result in muted overall factory output numbers.

The core industries -- coal, crude oil, natural gas, petroleum refinery products, fertilisers, steel, cement and electricity -- had grown by 7.7 per cent in February, 2012.

New Delhi, PTI: Jet fuel (ATF) prices were today cut by a steep 5.5 per cent, reversing the rising trend of past two months.

Aviation Turbine Fuel, or ATF, price at T3 terminal in Delhi was cut by about Rs 3,885 per kilolitre (kl), or 5.5 per cent, to Rs 66,196 per kl from today, according to Indian Oil Corp, the nation's largest fuel retailer.

The reduction comes on back of a 2 per cent (Rs 1,324.84 per kl) increase in price from February 1 and a 3.8 per cent (Rs 2,519.83 per kl) hike in rates from March 1.