Monday, 27 August 2012

INDIA BUSINESS THIS WEEK (Aug 19 -25, 2012)


SUMMARY


The prime minister is hopeful of doing better than last year ( when it clocked the growth of 6.5%) on the economic front . According to him, India has among the highest savings & investment rates in the world.
There are concerns in the cases of other countries too; there is a contraction in China’s GDP, Eurozone in a state of siege, & unemployment in the US high at 8%.

Allocation of coal blocks for captive mining without any competitive bidding process resulted in financial gains of Rs 1.86 lac cr to private parties.. The real scam is in mining happening only in 28 out of 86 coal blocks since the allotment is made several cases only to ostensible end-users.

Over the long weekend, ministers have accused the Comptroller Auditor General  (CAG) of India of 'sensationalism', 'adding zeroes' to notional loss figures and 'crossing its constitutional mandate' after three separate audit reports accused the UPA of giving away national assets at a loss of Rs 3.8 lakh crore.While industry captains admit that the audit findings will further dent an already waning investor confidence about the Indian growth story, they believe the government could use the reports to push through necessary reforms like creating independent regulators and using transparent processes.


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