India is facing an "economic crisis" due to its huge oil imports, two local TV channels cited Transport Minister Nitin Gadkari as saying on Thursday, ahead of a meeting of key ministers to discuss the falling rupee and the nation's widening trade deficit.

India, the world's third-biggest oil importer, depends on overseas markets to meet 80 per cent of its oil needs.

The partially convertible rupee has lost about 13 per cent against the dollar since the beginning of the year, adding to the nation's oil import bill at a time when crude is hovering at around $85 a barrel.

India is facing an "economic crisis" due to its huge oil imports, two local TV channels cited Transport Minister Nitin Gadkari as saying on Thursday, ahead of a meeting of key ministers to discuss the falling rupee and the nation's widening trade deficit.

India is facing an "economic crisis" due to its huge oil imports, two local TV channels cited Transport Minister Nitin Gadkari as saying on Thursday, ahead of a meeting of key ministers to discuss the falling rupee and the nation's widening trade deficit. India, the world's third-biggest oil importer, depends on overseas markets to meet 80 per cent of its oil needs. The partially convertible rupee has lost about 13 per cent against the dollar since the beginning of the year, adding to the nation's oil import bill at a time when crude is hovering at around $85 a barrel.

India facing 'economic crisis' due to huge oil imports: Nitin Gadkari 

The Reserve Bank of India on Wednesday said it will relax external commercial borrowings (ECB) policy to allow state-run oil marketing companies to raise external debt for working capital purposes.

The RBI will permit oil marketing firms to raise overseas funds with minimum average maturity period of 3 or 5 years under the automatic route, it said in a statement. It lifted the individual borrowing limit set at $750 million under the ECB framework.

The move comes in light of the rupee's drop to a record low on Wednesday triggered by a sharp rise in global crude oil prices, prompting the central bank to quickly intervene to slow its fall.

The Reserve Bank of India on Wednesday said it will relax external commercial borrowings (ECB) policy to allow state-run oil marketing companies to raise external debt for working capital purposes.

The Reserve Bank of India on Wednesday said it will relax external commercial borrowings (ECB) policy to allow state-run oil marketing companies to raise external debt for working capital purposes. The RBI will permit oil marketing firms to raise overseas funds with minimum average maturity period of 3 or 5 years under the automatic route, it said in a statement. It lifted the individual borrowing limit set at $750 million under the ECB framework. The move comes in light of the rupee's drop to a record low on Wednesday triggered by a sharp rise in global crude oil prices, prompting the central bank to quickly intervene to slow its fall.

RBI eases overseas borrowing norms for state-run oil companies

The rupee Wednesday plunged by 43 paise to breach the historic low of 73 level as soaring crude oil prices fuelled worries over capital outflows and widening current account deficit.

The domestic currency closed at a record low of 73.34, down by 43 paise or 0.59 per cent at the interbank foreign exchange here.

In the day trade, the rupee crashed to its all-time low of 73.42 per dollar as crude oil prices breached the $85 per barrel mark, leading to huge outflows of cash.

Investors remained concerned over sustained foreign capital outflows and soaring crude oil prices, analysts said.

After breaching the US 85 per barrel level, the benchmark Brent crude stayed near four-year high levels at $84.86 per barrel.

According to the provisional exchange data, foreign investors withdrew Rs 1,550 crore on a net basis from capital markets on Wednesday.

Rising US interest rates and bond yields have encouraged investors to pull out funds from emerging markets to pocket better returns, analysts said.

"The rupee has made a new record low today on the back of consistent rise in the crude oil prices. A sharp rise in crude oil along with steep depreciation in the rupee might push inflation higher in coming months," Rushabh Maru - Research Analyst, Anand Rathi Shares and Stock Brokers.

The Reserve Bank refused to open a special window for oil marketing companies which affected market sentiments, VK Sharma, Head Private Client Group &amp; Capital Market Strategy at HDFC Securities.

Stocks also fell by more than 1.5 per cent due to the rupee falling to record low levels. The benchmark BSE Sensex plunged by 550 points or 1.51 per cent while the broader Nifty tanked 150 points or 1.38 per cent.

The rupee opened lower at 73.26 per dollar due to high crude oil prices against the last close of 72.91 per dollar. The currency pared some losses to touch a high of 72.90 per dollar on market speculation that RBI may open special dollar window for oil companies.

However, without any clear signals from the central bank, the rupee crashed to all-time lows before settling at 73.34.

Meanwhile, the FBIL set the reference rate for the dollar at 73.02 per dollar. The reference rate for euro was fixed at 84.57 against 84.37 previously and for the British pound at 94.98 against 94.88 on October 1.

The rupee Wednesday plunged by 43 paise to breach the historic low of 73 level as soaring crude oil prices fuelled worries over capital outflows and widening current account deficit.

The rupee Wednesday plunged by 43 paise to breach the historic low of 73 level as soaring crude oil prices fuelled worries over capital outflows and widening current account deficit. The domestic currency closed at a record low of 73.34, down by 43 paise or 0.59 per cent at the interbank foreign exchange here. In the day trade, the rupee crashed to its all-time low of 73.42 per dollar as crude oil prices breached the $85 per barrel mark, leading to huge outflows of cash. Investors remained concerned over sustained foreign capital outflows and soaring crude oil prices, analysts said. After breaching the US 85 per barrel level, the benchmark Brent crude stayed near four-year high levels at $84.86 per barrel. According to the provisional exchange data, foreign investors withdrew Rs 1,550 crore on a net basis from capital markets on Wednesday. Rising US interest rates and bond yields have encouraged investors to pull out funds from emerging markets to pocket better returns, analysts said. "The rupee has made a new record low today on the back of consistent rise in the crude oil prices. A sharp rise in crude oil along with steep depreciation in the rupee might push inflation higher in coming months," Rushabh Maru - Research Analyst, Anand Rathi Shares and Stock Brokers. The Reserve Bank refused to open a special window for oil marketing companies which affected market sentiments, VK Sharma, Head Private Client Group & Capital Market Strategy at HDFC Securities. Stocks also fell by more than 1.5 per cent due to the rupee falling to record low levels. The benchmark BSE Sensex plunged by 550 points or 1.51 per cent while the broader Nifty tanked 150 points or 1.38 per cent. The rupee opened lower at 73.26 per dollar due to high crude oil prices against the last close of 72.91 per dollar. The currency pared some losses to touch a high of 72.90 per dollar on market speculation that RBI may open special dollar window for oil companies. However, without any clear signals from the central bank, the rupee crashed to all-time lows before settling at 73.34. Meanwhile, the FBIL set the reference rate for the dollar at 73.02 per dollar. The reference rate for euro was fixed at 84.57 against 84.37 previously and for the British pound at 94.98 against 94.88 on October 1.

Rupee crashes below record 73 mark, ends lower by 43 amid oil price spike

India's move to take control of debt-laden Infrastructure Leasing and Financial Services (IL&amp;FS) will only succeed if lenders agree to take substantial losses, government sources familiar with the discussions told Reuters.

The federal government on Monday replaced the board of IL&amp;FS, a major infrastructure financing and construction firm, after its failure to honour debt obligations sent shockwaves through Indian financial markets.

The beleaguered company's debt pile had grown to more than 900 billion rupees ($12.33 billion) as it rode a lending boom among so-called non-bank financial companies (NBFCs), or the shadow banking sector, which manage an aggregate loan book of nearly $300 billion.

But IL&amp;FS had compromised on corporate governance and risk management norms, the government told the company law tribunal on Monday as it explained why it intended to take over the firm.

The new six-member IL&amp;FS board will prepare a revival plan, but it is becoming clear some of its lenders will need to suffer major losses, one finance ministry official said.

"It may be difficult to save it (IL&amp;FS) unless the lenders agree to take substantial haircuts," said the official, who declined to be identified due to the sensitivity of the matter.

The official added that there had been no discussions with the company's lenders, among them India's largest bank, the State Bank of India, and state-owned lenders, such as Bank of India and Punjab National Bank.

A second government source echoed those views, saying IL&amp;FS needed nearly 150 billion rupees ($2 billion) in financial support to avert a collapse and could only be saved if lenders agreed to take a big haircut.

The IL&amp;FS fallout has already roiled stock markets and the government has scrambled to contain the further damage that could undermine confidence in the financial sector.

A credit crunch in financial markets also does not bode well for Prime Minister Narendra Modi, who is already facing a growing backlash over rising fuel prices, a falling rupee currency and farmer protests over low crop prices months before he seeks a second term at an election due by next May.

The government has said IL&amp;FS was presenting a "rosy picture and camouflaging" its financial statements but still wants to ensure adequate liquidity for it to avoid further defaults.

One of the government sources, however, cautioned that more defaults cannot be ruled out, as IL&amp;FS needs to repay more than 250 billion rupees by March 2019.

India's parliamentary panel on finance on Wednesday decided to investigate the IL&amp;FS matter and its members will visit Mumbai this month to meet the new board, a source with direct knowledge of the deliberations said.

They will also talk to finance ministry officials, the source added.

Separately, India's Serious Fraud Investigation Office (SFIO) has launched an inquiry into alleged financial irregularities at IL&amp;FS, questioning its top management and searching its offices, the Economic Times newspaper said.

Reuters could not immediately reach SFIO officials to seek comment.

India's move to take control of debt-laden Infrastructure Leasing and Financial Services (IL&FS) will only succeed if lenders agree to take substantial losses, government sources familiar with the discussions told Reuters.

India's move to take control of debt-laden Infrastructure Leasing and Financial Services (IL&FS) will only succeed if lenders agree to take substantial losses, government sources familiar with the discussions told Reuters. The federal government on Monday replaced the board of IL&FS, a major infrastructure financing and construction firm, after its failure to honour debt obligations sent shockwaves through Indian financial markets. The beleaguered company's debt pile had grown to more than 900 billion rupees ($12.33 billion) as it rode a lending boom among so-called non-bank financial companies (NBFCs), or the shadow banking sector, which manage an aggregate loan book of nearly $300 billion. But IL&FS had compromised on corporate governance and risk management norms, the government told the company law tribunal on Monday as it explained why it intended to take over the firm. The new six-member IL&FS board will prepare a revival plan, but it is becoming clear some of its lenders will need to suffer major losses, one finance ministry official said. "It may be difficult to save it (IL&FS) unless the lenders agree to take substantial haircuts," said the official, who declined to be identified due to the sensitivity of the matter. The official added that there had been no discussions with the company's lenders, among them India's largest bank, the State Bank of India, and state-owned lenders, such as Bank of India and Punjab National Bank. A second government source echoed those views, saying IL&FS needed nearly 150 billion rupees ($2 billion) in financial support to avert a collapse and could only be saved if lenders agreed to take a big haircut. The IL&FS fallout has already roiled stock markets and the government has scrambled to contain the further damage that could undermine confidence in the financial sector. A credit crunch in financial markets also does not bode well for Prime Minister Narendra Modi, who is already facing a growing backlash over rising fuel prices, a falling rupee currency and farmer protests over low crop prices months before he seeks a second term at an election due by next May. The government has said IL&FS was presenting a "rosy picture and camouflaging" its financial statements but still wants to ensure adequate liquidity for it to avoid further defaults. One of the government sources, however, cautioned that more defaults cannot be ruled out, as IL&FS needs to repay more than 250 billion rupees by March 2019. India's parliamentary panel on finance on Wednesday decided to investigate the IL&FS matter and its members will visit Mumbai this month to meet the new board, a source with direct knowledge of the deliberations said. They will also talk to finance ministry officials, the source added. Separately, India's Serious Fraud Investigation Office (SFIO) has launched an inquiry into alleged financial irregularities at IL&FS, questioning its top management and searching its offices, the Economic Times newspaper said. Reuters could not immediately reach SFIO officials to seek comment.

India's rescue of debt-ridden IL&FS may spell major losses for lenders: Sources

Finance Minister Arun Jaitley Monday defended loan write-offs by public sector banks, saying they do not lead to loan waivers and the exercise helps lenders clean up their balance sheets and achieve taxation efficiency.

He said public sector banks have recovered Rs 36,551 crore of bad loans or NPAs during April-June quarter of the current financial year as compared to Rs 74,562 crore recoveries made in the full 2017-18 fiscal.

Commenting on reports that the country's 21 state-owned banks wrote-off Rs 3.16 lakh crore of loans in four years of the BJP government and made recoveries of Rs 44,900 crore of written off loans, Jaitley in a Facebook blog said "technical write-offs" are resorted to by banks as per the Reserve Bank of India (RBI) guidelines.

"This, however, does not lead to any loan waiver. Recovery of loans continues rigorously by banks," he said. "In fact, the defaulting management of most insolvent companies have been removed under the Insolvency and Bankruptcy Code (IBC)."

Congress President Rahul Gandhi used the report to attack the government, saying demonetisation converted black money into white and Rs 3.16 lakh crore of loans were written off.

"Modi's India - For Common Man: Notebandi-line up and put your money in banks. All your details into Aadhar. You can't use your own money. For Crony capitalists: Notebandi-convert all your black money to white. Let's write off 3.16 lakh crore using common man's money," Gandhi said in a tweet.

Finance Minister Arun Jaitley Monday defended loan write-offs by public sector banks, saying they do not lead to loan waivers and the exercise helps lenders clean up their balance sheets and achieve taxation efficiency.

Finance Minister Arun Jaitley Monday defended loan write-offs by public sector banks, saying they do not lead to loan waivers and the exercise helps lenders clean up their balance sheets and achieve taxation efficiency. He said public sector banks have recovered Rs 36,551 crore of bad loans or NPAs during April-June quarter of the current financial year as compared to Rs 74,562 crore recoveries made in the full 2017-18 fiscal. Commenting on reports that the country's 21 state-owned banks wrote-off Rs 3.16 lakh crore of loans in four years of the BJP government and made recoveries of Rs 44,900 crore of written off loans, Jaitley in a Facebook blog said "technical write-offs" are resorted to by banks as per the Reserve Bank of India (RBI) guidelines. "This, however, does not lead to any loan waiver. Recovery of loans continues rigorously by banks," he said. "In fact, the defaulting management of most insolvent companies have been removed under the Insolvency and Bankruptcy Code (IBC)." Congress President Rahul Gandhi used the report to attack the government, saying demonetisation converted black money into white and Rs 3.16 lakh crore of loans were written off. "Modi's India - For Common Man: Notebandi-line up and put your money in banks. All your details into Aadhar. You can't use your own money. For Crony capitalists: Notebandi-convert all your black money to white. Let's write off 3.16 lakh crore using common man's money," Gandhi said in a tweet.

Arun Jaitley defends loan write-offs; says they don't lead to waiver

India on Monday took control of Infrastructure Leasing and Financial Services (IL&amp;FS), in a rare move that it said was needed to protect the country's financial system and markets from potential collapse.

The government applied to the National Company Law Tribunal (NCLT) on Monday to remove the board of IL&amp;FS, warning that the continuance of the current directors in their jobs would be prejudicial and not in the interest of the public.

The NCLT approved the government's interim application to replace IL&amp;FS's board with six selected nominees, on Monday.

"The current IL&amp;FS crisis could have an adverse impact on the financial stability of the economy," Sanjay Shorey a lawyer for the government told the NCLT, a quasi-judicial body for corporate grievances, on Monday.

He said a collapse of IL&amp;FS, an Indian infrastructure financing and construction group, could threaten the stability of mutual funds and the non-banking financial services sector.

A string of defaults by IL&amp;FS in recent weeks has led to a series of credit rating downgrades on the company and its subsidiaries that hold some of its 910 billion rupees ($12.48 billion) debt pile. Its rapid fall from grace has spooked financial markets and sparked fears that its troubles could cause a crisis in the non-banking financial services sector.

ILFS's problems could threaten India's economic growth as lenders cut exposure to what are known as non-banking finance companies (NBFCs) in India or shadow banks.

These firms have played a major role in lending growth in India in the last two years, as Indian banks, saddled with some $150 billion of bad debt, slowed lending.

India has rarely stepped in to take control of a private company. The government's attempt to take control of debt-laden realty firm Unitech Ltd in late 2017 was stalled by the Supreme Court.

The government did take control of Satyam Computer Services in 2009 when an accounting scandal at the firm shook investor confidence in the information technology sector.

The new six-member IL&amp;FS board named by the NCLT includes the managing director of Kotak Mahindra Bank Uday Kotak as IL&amp;FS' non-executive chairman.

The NCLT ruled that IL&amp;FS must make its response to the tribunal by October 15. It set a follow-up hearing for October 31.

Restructuring plan&nbsp;

The government's intervention could cast doubt on IL&amp;FS' restructuring plan for which it has just secured shareholder support.

"The government decided to intervene ... could be disruptive at this stage," Shriram Subramanian, managing director at proxy advisory firm InGovern, said.

IL&amp;FS on Sunday said its shareholders had approved a plan to raise funds via debt and equity issuances. Earlier, the company had said its board would develop a "comprehensive" restructuring plan including asset sales and a rights issue.

India's Life Insurance Corp Ltd, which is IL&amp;FS' biggest shareholder with a more than 25 per cent stake, said last week it would participate in the rights issue.

The state-owned insurer has often stepped in to help bail out troubled entities. Earlier this year LIC agreed to acquire a 51 per cent stake in IDBI Bank.

IL&amp;FS's other large investors are Japan's ORIX Corp with a 23.54 per cent stake and Abu Dhabi Investment Authority (ADIA) with 12.56 per cent.

India's biggest lender by assets, State Bank of India (SBI), also owns a 6.42 per cent stake in IL&amp;FS.

LIC and Orix did not respond to requests for comment on the Indian government's move to seize control of IL&amp;FS on Monday.

SBI and ADIA declined to comment, while IL&amp;FS said it would not comment.

India on Monday took control of Infrastructure Leasing and Financial Services (IL&FS), in a rare move that it said was needed to protect the country's financial system and markets from potential collapse.

India on Monday took control of Infrastructure Leasing and Financial Services (IL&FS), in a rare move that it said was needed to protect the country's financial system and markets from potential collapse. The government applied to the National Company Law Tribunal (NCLT) on Monday to remove the board of IL&FS, warning that the continuance of the current directors in their jobs would be prejudicial and not in the interest of the public. The NCLT approved the government's interim application to replace IL&FS's board with six selected nominees, on Monday. "The current IL&FS crisis could have an adverse impact on the financial stability of the economy," Sanjay Shorey a lawyer for the government told the NCLT, a quasi-judicial body for corporate grievances, on Monday. He said a collapse of IL&FS, an Indian infrastructure financing and construction group, could threaten the stability of mutual funds and the non-banking financial services sector. A string of defaults by IL&FS in recent weeks has led to a series of credit rating downgrades on the company and its subsidiaries that hold some of its 910 billion rupees ($12.48 billion) debt pile. Its rapid fall from grace has spooked financial markets and sparked fears that its troubles could cause a crisis in the non-banking financial services sector. ILFS's problems could threaten India's economic growth as lenders cut exposure to what are known as non-banking finance companies (NBFCs) in India or shadow banks. These firms have played a major role in lending growth in India in the last two years, as Indian banks, saddled with some $150 billion of bad debt, slowed lending. India has rarely stepped in to take control of a private company. The government's attempt to take control of debt-laden realty firm Unitech Ltd in late 2017 was stalled by the Supreme Court. The government did take control of Satyam Computer Services in 2009 when an accounting scandal at the firm shook investor confidence in the information technology sector. The new six-member IL&FS board named by the NCLT includes the managing director of Kotak Mahindra Bank Uday Kotak as IL&FS' non-executive chairman. The NCLT ruled that IL&FS must make its response to the tribunal by October 15. It set a follow-up hearing for October 31. Restructuring plan The government's intervention could cast doubt on IL&FS' restructuring plan for which it has just secured shareholder support. "The government decided to intervene ... could be disruptive at this stage," Shriram Subramanian, managing director at proxy advisory firm InGovern, said. IL&FS on Sunday said its shareholders had approved a plan to raise funds via debt and equity issuances. Earlier, the company had said its board would develop a "comprehensive" restructuring plan including asset sales and a rights issue. India's Life Insurance Corp Ltd, which is IL&FS' biggest shareholder with a more than 25 per cent stake, said last week it would participate in the rights issue. The state-owned insurer has often stepped in to help bail out troubled entities. Earlier this year LIC agreed to acquire a 51 per cent stake in IDBI Bank. IL&FS's other large investors are Japan's ORIX Corp with a 23.54 per cent stake and Abu Dhabi Investment Authority (ADIA) with 12.56 per cent. India's biggest lender by assets, State Bank of India (SBI), also owns a 6.42 per cent stake in IL&FS. LIC and Orix did not respond to requests for comment on the Indian government's move to seize control of IL&FS on Monday. SBI and ADIA declined to comment, while IL&FS said it would not comment.

Government takes control of infrastructure group IL&FS to stem contagion

The Goods and Service Tax (GST) revenue for the month of September witnessed a marginal upward trend to touch Rs&nbsp;94,000 crore, up from Rs&nbsp;93,690 crore last month.

Of the total collection, central GST (CGST) mop-up was Rs&nbsp;15,318 crore, state GST (SGST) was Rs 21,061 crore, integrated GST was Rs 50,070 crore (including Rs&nbsp;25,308 crore collected on imports) and cess was Rs 7,993 crore (including Rs. 769 crore collected on imports).

"The total revenue earned by the central government and the state governments after settlement in the month of September 2018 is Rs&nbsp;30,574 crore for CGST and Rs&nbsp;35,015 crore for the SGST," a statement from the Finance Ministry read.GST revenue for August was the lowest in the five months so far in this fiscal.

In July, the collection was Rs 96,483 crore, in June it was Rs 95,610 crore, in May it was Rs 94,016 crore, while April saw a record-high collection of over Rs 1.03 lakh crore.&nbsp;

The Goods and Service Tax (GST) revenue for the month of September witnessed a marginal upward trend to touch Rs 94,000 crore, up from Rs 93,690 crore last month.

The Goods and Service Tax (GST) revenue for the month of September witnessed a marginal upward trend to touch Rs 94,000 crore, up from Rs 93,690 crore last month. Of the total collection, central GST (CGST) mop-up was Rs 15,318 crore, state GST (SGST) was Rs 21,061 crore, integrated GST was Rs 50,070 crore (including Rs 25,308 crore collected on imports) and cess was Rs 7,993 crore (including Rs. 769 crore collected on imports). "The total revenue earned by the central government and the state governments after settlement in the month of September 2018 is Rs 30,574 crore for CGST and Rs 35,015 crore for the SGST," a statement from the Finance Ministry read.GST revenue for August was the lowest in the five months so far in this fiscal. In July, the collection was Rs 96,483 crore, in June it was Rs 95,610 crore, in May it was Rs 94,016 crore, while April saw a record-high collection of over Rs 1.03 lakh crore.

GST collection surpasses Rs 94,000 crore in September

With a tougher round of US sanctions on Iran coming into effect from November 4, a top Trump administration official said Washington recognises India's need for significant oil imports and is having conversations to ensure there are alternative supplies of the fuel "so that our friend India's economy is not adversely affected".

Earlier this year, the US had withdrawn from the 2015 Iranian nuclear deal and reimposed a series of tough sanctions on Iran.&nbsp;

While the first phase of sanctions is already in place, the sanctions would come into full force on November 4 and the US expects all countries, including India, to bring down their import of Iranian oil to zero by then.

The US has made it clear that any country that continues to do business with Iran will be blocked from accessing the American banking and financial system.&nbsp;

However, the sanctions are not endorsed by the UN and it has been a traditional policy of India to enforce only UNSC-authorised sanctions.&nbsp;

Though India, one of the biggest importers of Iranian oil, has already reduced its import, it has indicated that it is unlikely to go down to zero given its massive energy needs.&nbsp;

"The United States is consulting with all of its friends and partners to discuss the implementation of the sanctions after the snapback... We recognise India has a need for significant oil imports. Part of the conversation is how to ensure that there are alternative supplies of oil so that our friend India's economy is not adversely affected,"&nbsp;Principal Deputy Assistant Secretary for the Bureau of South and Central Asia Region Alice Wells told PTI.

She said Indian private sector firms are exploring new suppliers of crude oil and the conversation between the US and Indian experts continues on the implementation of the sanctions, adding that America looks forward to continuing what is a very constructive dialogue.

When asked about the impact of the US sanctions on projects such as the Chabahar project, Wells said the issue of Chabahar is under close review.&nbsp; 
 
"We very much appreciate what India has done to provide both assistance to Afghanistan, including through using Chabahar Port for the delivery of wheat. We also very much appreciate what India has done to allow Afghanistan to diversify its trade relationships, and again Chabahar has played a role there. So those factors will certainly be taken under consideration," she said.&nbsp;&nbsp; &nbsp;

The Chabahar port is being considered a gateway to golden opportunities for trade by India, Iran and Afghanistan with central Asian countries besides ramping up trade among the three countries in the wake of Pakistan denying transit access to New Delhi.

In May 2016, India, Iran and Afghanistan had inked a pact which entailed the&nbsp;establishment of Transit and Transport Corridor among the three countries using Chabahar Port as one of the regional hubs for sea transportation in Iran, besides multi-modal transport of goods and passengers across the three nations.

With a tougher round of US sanctions on Iran coming into effect from November 4, a top Trump administration official said Washington recognises India's need for significant oil imports and is having conversations to ensure there are alternative supplies of the fuel "so that our friend India's economy is not adversely affected".

With a tougher round of US sanctions on Iran coming into effect from November 4, a top Trump administration official said Washington recognises India's need for significant oil imports and is having conversations to ensure there are alternative supplies of the fuel "so that our friend India's economy is not adversely affected". Earlier this year, the US had withdrawn from the 2015 Iranian nuclear deal and reimposed a series of tough sanctions on Iran. While the first phase of sanctions is already in place, the sanctions would come into full force on November 4 and the US expects all countries, including India, to bring down their import of Iranian oil to zero by then. The US has made it clear that any country that continues to do business with Iran will be blocked from accessing the American banking and financial system. However, the sanctions are not endorsed by the UN and it has been a traditional policy of India to enforce only UNSC-authorised sanctions. Though India, one of the biggest importers of Iranian oil, has already reduced its import, it has indicated that it is unlikely to go down to zero given its massive energy needs. "The United States is consulting with all of its friends and partners to discuss the implementation of the sanctions after the snapback... We recognise India has a need for significant oil imports. Part of the conversation is how to ensure that there are alternative supplies of oil so that our friend India's economy is not adversely affected," Principal Deputy Assistant Secretary for the Bureau of South and Central Asia Region Alice Wells told PTI. She said Indian private sector firms are exploring new suppliers of crude oil and the conversation between the US and Indian experts continues on the implementation of the sanctions, adding that America looks forward to continuing what is a very constructive dialogue. When asked about the impact of the US sanctions on projects such as the Chabahar project, Wells said the issue of Chabahar is under close review. "We very much appreciate what India has done to provide both assistance to Afghanistan, including through using Chabahar Port for the delivery of wheat. We also very much appreciate what India has done to allow Afghanistan to diversify its trade relationships, and again Chabahar has played a role there. So those factors will certainly be taken under consideration," she said. The Chabahar port is being considered a gateway to golden opportunities for trade by India, Iran and Afghanistan with central Asian countries besides ramping up trade among the three countries in the wake of Pakistan denying transit access to New Delhi. In May 2016, India, Iran and Afghanistan had inked a pact which entailed the establishment of Transit and Transport Corridor among the three countries using Chabahar Port as one of the regional hubs for sea transportation in Iran, besides multi-modal transport of goods and passengers across the three nations.

Exploring alternative oil supplies for 'our friend India's economy': US 

Indian markets on Tuesday opened in red, the benchmark BSE Sensex fell 79.02 points, or 0.22 per cent, to 36,226, news agency PTI reported. &nbsp;

Nifty was recorded at 10,969.95 in the first few minutes of the opening morning trade on Tuesday. Nifty50 was at 10,943.35, 24.05 points or 0.22 per cent lower.

On a net basis, foreign funds sold shares worth Rs 523.94 crore, while domestic institutional investors bought shares to the tune of Rs 1,527.67 crore Monday, provisional data showed.

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<a href="https://twitter.com/hashtag/Sensex?src=hash&amp;ref_src=twsrc%5Etfw">#Sensex</a> currently at 36,112.72; Nifty currently at 10,900.05 <a href="https://t.co/frtWMdzrsm">pic.twitter.com/frtWMdzrsm</a>
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Indian shares fell more than one per cent and ended lower for a fifth straight session on Monday.&nbsp;

The benchmark BSE index closed down 1.46 per cent at 36,305.02, its lowest close since July 11.

The broader NSE index ended 1.58 per cent lower at 10,967.4, its biggest single-day percentage loss since March 16, Reuters reported.&nbsp;

(With inputs from agencies)&nbsp;

 
&nbsp;

Indian markets on Tuesday opened in red, the benchmark BSE Sensex fell 79.02 points, or 0.22 per cent, to 36,226, news agency PTI reported. Nifty was recorded at 10,969.

Indian markets on Tuesday opened in red, the benchmark BSE Sensex fell 79.02 points, or 0.22 per cent, to 36,226, news agency PTI reported. Nifty was recorded at 10,969.95 in the first few minutes of the opening morning trade on Tuesday. Nifty50 was at 10,943.35, 24.05 points or 0.22 per cent lower. On a net basis, foreign funds sold shares worth Rs 523.94 crore, while domestic institutional investors bought shares to the tune of Rs 1,527.67 crore Monday, provisional data showed. #Sensex currently at 36,112.72; Nifty currently at 10,900.05 pic.twitter.com/frtWMdzrsm — ANI (@ANI) September 25, 2018 × Indian shares fell more than one per cent and ended lower for a fifth straight session on Monday. The benchmark BSE index closed down 1.46 per cent at 36,305.02, its lowest close since July 11. The broader NSE index ended 1.58 per cent lower at 10,967.4, its biggest single-day percentage loss since March 16, Reuters reported. (With inputs from agencies)

Markets open in red, Sensex tumbles by over 50 points 

Shares of housing finance firms came crashing sharply Friday, with Dewan Housing Finance tumbling up to 60 per cent on massive selling.

The scrip of Dewan Housing Finance Corporation plummeted 59.67 per cent to Rs 246.25 -- its 52-week low -- on BSE.

Among others, Indiabulls Housing Finance nosedived 35 per cent, Gruh Finance tumbled 17.66 per cent, Can Fin Homes plunged 14.55 per cent, PNB Housing Finance tanked 9.23 per cent.

The broader market also witnessed huge sell-off, with the BSE benchmark index crashing over 1,100 points within a matter of minutes during the afternoon trade.&nbsp;

The index had plunged 1,127.58 points, or 3.03 per cent, to hit an intra-day low of 35,993.64. It, however, recovered nearly 900 points within minutes of the fall.&nbsp;

Shares of housing finance firms came crashing sharply Friday, with Dewan Housing Finance tumbling up to 60 per cent on massive selling. The scrip of Dewan Housing Finance Corporation plummeted 59.

Shares of housing finance firms came crashing sharply Friday, with Dewan Housing Finance tumbling up to 60 per cent on massive selling. The scrip of Dewan Housing Finance Corporation plummeted 59.67 per cent to Rs 246.25 -- its 52-week low -- on BSE. Among others, Indiabulls Housing Finance nosedived 35 per cent, Gruh Finance tumbled 17.66 per cent, Can Fin Homes plunged 14.55 per cent, PNB Housing Finance tanked 9.23 per cent. The broader market also witnessed huge sell-off, with the BSE benchmark index crashing over 1,100 points within a matter of minutes during the afternoon trade. The index had plunged 1,127.58 points, or 3.03 per cent, to hit an intra-day low of 35,993.64. It, however, recovered nearly 900 points within minutes of the fall.

Housing finance firms crash; DHFL nosedives 60%

The government is planning to ask state oil firms to lock in their crude futures purchase prices, a government source said on Thursday, anticipating a spike when US&nbsp;sanctions on Iran snap back again in November.

The move would be another step to tackle a slide in the rupee, as oil prices are putting pressure on India, which imports some 80 per cent of its crude demand. Its currency has fallen sharply this year against the US&nbsp;dollar, amid a wider sell-off in emerging markets.

"The futures should be locked in when the crude price is down," said the source, who is familiar with deliberations on the matter, adding the step should have been taken earlier.

The rupee, Asia's worst performing currency this year, has depreciated about 12 per cent year-to-date against the US&nbsp;dollar, closing at 72.39 on Wednesday, after a record low of 72.99 on Tuesday. Markets were closed on Thursday.

The government is expected to announce a set of measures to discourage non-essential imports to stem the slump in the currency.

Separately, a senior finance ministry official said there was a view that the rupee could weaken further in the next two months if proposed steps failed to kill "speculation in the rupee market".

"The gap between the announcement of steps and action is creating a space for speculation. We have to stop this," said the official.

Officials at oil companies said they were open to the idea of locking in futures if the government asked.

A senior official at Indian Oil Corp, a state-owned oil marketing company, said they were considering some options in terms of forwarding contracts. He declined to give details saying this was "market sensitive information".

An official at BPCL, another state-owned oil firm, said they were trying to hedge margins, under a policy reviewed every quarter.

BPCL is also studying a proposal to buy dollars directly from the Reserve Bank of India instead of the market, in a bid to quell strong dollar demand that is denting the rupee.

"Whenever there is sharp volatility in exchange rates, this dollar window is opened. We're studying the proposal," he said.

Another official at state-run HPCL said the government had not officially asked for it to examine forward contracts.

"In case it is needed, or the government wants us to, we will then look into it," the HPCL official said.

The officials declined to be named as the proposals are still under consideration.

Country's risk-averse state-owned refiners have in the past been reluctant to engage in futures trading or hedging strategies, fearing administrative blow-back if bets go wrong.

The refiners typically buy up to 70 per cent of their oil needs through term deals and the remainder through spot markets.

Unlike state refiners, private players Reliance Industries and Nayara Energy use hedging tools to lock in costs on the international market.

The government is planning to ask state oil firms to lock in their crude futures purchase prices, a government source said on Thursday, anticipating a spike when US sanctions on Iran snap back again in November.

The government is planning to ask state oil firms to lock in their crude futures purchase prices, a government source said on Thursday, anticipating a spike when US sanctions on Iran snap back again in November. The move would be another step to tackle a slide in the rupee, as oil prices are putting pressure on India, which imports some 80 per cent of its crude demand. Its currency has fallen sharply this year against the US dollar, amid a wider sell-off in emerging markets. "The futures should be locked in when the crude price is down," said the source, who is familiar with deliberations on the matter, adding the step should have been taken earlier. The rupee, Asia's worst performing currency this year, has depreciated about 12 per cent year-to-date against the US dollar, closing at 72.39 on Wednesday, after a record low of 72.99 on Tuesday. Markets were closed on Thursday. The government is expected to announce a set of measures to discourage non-essential imports to stem the slump in the currency. Separately, a senior finance ministry official said there was a view that the rupee could weaken further in the next two months if proposed steps failed to kill "speculation in the rupee market". "The gap between the announcement of steps and action is creating a space for speculation. We have to stop this," said the official. Officials at oil companies said they were open to the idea of locking in futures if the government asked. A senior official at Indian Oil Corp, a state-owned oil marketing company, said they were considering some options in terms of forwarding contracts. He declined to give details saying this was "market sensitive information". An official at BPCL, another state-owned oil firm, said they were trying to hedge margins, under a policy reviewed every quarter. BPCL is also studying a proposal to buy dollars directly from the Reserve Bank of India instead of the market, in a bid to quell strong dollar demand that is denting the rupee. "Whenever there is sharp volatility in exchange rates, this dollar window is opened. We're studying the proposal," he said. Another official at state-run HPCL said the government had not officially asked for it to examine forward contracts. "In case it is needed, or the government wants us to, we will then look into it," the HPCL official said. The officials declined to be named as the proposals are still under consideration. Country's risk-averse state-owned refiners have in the past been reluctant to engage in futures trading or hedging strategies, fearing administrative blow-back if bets go wrong. The refiners typically buy up to 70 per cent of their oil needs through term deals and the remainder through spot markets. Unlike state refiners, private players Reliance Industries and Nayara Energy use hedging tools to lock in costs on the international market.

India may look to lock in oil futures to stem rupee slide: Report

In present uncertain financial and political situation, it is certain that Pakistan Government will seek foreign aid and loans for survival.

According to informed sources in Islamabad, the government wants to acquire financial strength before the July 25 general elections.

Sources quoted economic pundits in the government as suggesting that the current account deficit can be stabilised by using rapidly dwindling foreign currency reserves.

There is growing speculation that the government will have to seek a loan package from the International Monetary Fund (IMF) following the elections, for the second time since 2013, amid fears of being faced with a balance of payments crisis.

Caretaker Finance Minister Shamshad Akhtar told a press conference in Islamabad on Tuesday that the government has to finance this trade deficit gap of USD 25 billion.

The announcement came hours after the State Bank of Pakistan devalued the rupee by 3.7 per cent, the third devaluation since December. It is also saddled with a heavy public debt - 70 per cent of GDP, according to Akhtar - along with a yawning fiscal deficit.

The economy grew by 5.8 per cent during 2017-18, missing a government target by two per cent, according to documents from the finance ministry. Plagued for years by a Taliban insurgency, it has been battling to get its shaky economy back on track and end the energy crisis crippling industry.

The growth in GDP comes amid structural reforms, an improved energy sector and China's ambitious multi-billion dollar infrastructure project - the China-Pakistan Economic Corridor - linking its western province of Xinjiang to the Arabian Sea via Pakistan. However, fears remain about Pakistan's ability to repay the Chinese loans, with much of their terms shrouded in secrecy.

The Pakistani rupee slumped 3.8 per cent against the dollar on Monday before slightly recovering in what appeared to be the third currency devaluation in seven months by the central bank amid a balance of payments crisis.

&nbsp;

The rupee drop threatens to squeeze consumers, coming just days before Eid-ul-Fitr and ahead of the July 25 general election.

The apparent devaluation shows signs of vulnerability in the country's nearly USD 300 billion economy, as dwindling foreign reserves and a widening current account deficit trigger speculation about going back to the International Monetary Fund for loans for the second time since 2013.

In December and March, the rupee was devalued, each time by about five percent by the central bank. Pakistan's economy is expected to expand by close to six percent this year, the fastest pace in more than a decade, but a widening of the current account deficit has brought new worries.

The current account deficit now stands at USD 14 billion, around 5.3 percent of gross domestic product, an SBP official said.

The economic outlook has been hurt by the fast depletion of foreign currency reserves, which now stand at just over USD 10 billion.

Pakistan is currently in discussions with China for loans to ease pressure on its foreign currency reserves. Over the weekend, the shortage of foreign currency widened the spread at which the rupee is traded in the open market and the interbank market to four rupees.

The Supreme Court on Monday summoned the governor of State Bank of Pakistan (SBP) and federal finance secretary to explain what steps were being taken for encouraging people to declare their foreign bank accounts and assets accumulated abroad.

Earlier, a three-judge bench headed by Chief Justice of Pakistan Mian Saqib Nisar expressed displeasure over the non-appearance of the SBP governor and the finance secretary.

The chief justice observed that the court was dealing with an important case and the SBP governor and the finance secretary did not bother to attend the proceedings.

Justice Umar Atta Bandial and Justice Ijazul Ahsan were the other members on the bench. Federal Board of Revenue (FBR) Chairman Tariq Pasha and a director of the SBP were present in the court.

Rejecting the suggested of an additional attorney general to postpone hearing for after the Eidul Fitr holidays, the bench sought appearance of both the SBP governor and finance secretary after two hours. Later, the bench adjourned hearing for Tuesday.

During Monday's hearing, Chief Justice Nisar regretted that every newborn in Pakistan was under huge loans due to wrong policies of the governments. "Dams are not being built, standard of education is going down, garbage is being disposed of into sea but people are allowed to take their money abroad unchecked," lamented the chief justice.

To a court query, the FBR chairman disclosed that Rs100 billion had been paid to tax filers under the head of sales tax return, however disbursement of Rs105 billion was still pending.

Chief Justice Nisar also expressed concern over decreasing exports and rampant smuggling in the country. FBR chief Pasha sought permission to give an in-camera briefing to the judges on the issue of smuggling, which was allowed by the chief justice.

The views expressed in the above article are that of Mr. M. Sarwar, Chief Editor, The Nation.

The government wants to acquire financial strength before the July 25 general elections

In present uncertain financial and political situation, it is certain that Pakistan Government will seek foreign aid and loans for survival. According to informed sources in Islamabad, the government wants to acquire financial strength before the July 25 general elections. Sources quoted economic pundits in the government as suggesting that the current account deficit can be stabilised by using rapidly dwindling foreign currency reserves. There is growing speculation that the government will have to seek a loan package from the International Monetary Fund (IMF) following the elections, for the second time since 2013, amid fears of being faced with a balance of payments crisis. Caretaker Finance Minister Shamshad Akhtar told a press conference in Islamabad on Tuesday that the government has to finance this trade deficit gap of USD 25 billion. The announcement came hours after the State Bank of Pakistan devalued the rupee by 3.7 per cent, the third devaluation since December. It is also saddled with a heavy public debt - 70 per cent of GDP, according to Akhtar - along with a yawning fiscal deficit. The economy grew by 5.8 per cent during 2017-18, missing a government target by two per cent, according to documents from the finance ministry. Plagued for years by a Taliban insurgency, it has been battling to get its shaky economy back on track and end the energy crisis crippling industry. The growth in GDP comes amid structural reforms, an improved energy sector and China's ambitious multi-billion dollar infrastructure project - the China-Pakistan Economic Corridor - linking its western province of Xinjiang to the Arabian Sea via Pakistan. However, fears remain about Pakistan's ability to repay the Chinese loans, with much of their terms shrouded in secrecy. The Pakistani rupee slumped 3.8 per cent against the dollar on Monday before slightly recovering in what appeared to be the third currency devaluation in seven months by the central bank amid a balance of payments crisis. The rupee drop threatens to squeeze consumers, coming just days before Eid-ul-Fitr and ahead of the July 25 general election. The apparent devaluation shows signs of vulnerability in the country's nearly USD 300 billion economy, as dwindling foreign reserves and a widening current account deficit trigger speculation about going back to the International Monetary Fund for loans for the second time since 2013. In December and March, the rupee was devalued, each time by about five percent by the central bank. Pakistan's economy is expected to expand by close to six percent this year, the fastest pace in more than a decade, but a widening of the current account deficit has brought new worries. The current account deficit now stands at USD 14 billion, around 5.3 percent of gross domestic product, an SBP official said. The economic outlook has been hurt by the fast depletion of foreign currency reserves, which now stand at just over USD 10 billion. Pakistan is currently in discussions with China for loans to ease pressure on its foreign currency reserves. Over the weekend, the shortage of foreign currency widened the spread at which the rupee is traded in the open market and the interbank market to four rupees. The Supreme Court on Monday summoned the governor of State Bank of Pakistan (SBP) and federal finance secretary to explain what steps were being taken for encouraging people to declare their foreign bank accounts and assets accumulated abroad. Earlier, a three-judge bench headed by Chief Justice of Pakistan Mian Saqib Nisar expressed displeasure over the non-appearance of the SBP governor and the finance secretary. The chief justice observed that the court was dealing with an important case and the SBP governor and the finance secretary did not bother to attend the proceedings. Justice Umar Atta Bandial and Justice Ijazul Ahsan were the other members on the bench. Federal Board of Revenue (FBR) Chairman Tariq Pasha and a director of the SBP were present in the court. Rejecting the suggested of an additional attorney general to postpone hearing for after the Eidul Fitr holidays, the bench sought appearance of both the SBP governor and finance secretary after two hours. Later, the bench adjourned hearing for Tuesday. During Monday's hearing, Chief Justice Nisar regretted that every newborn in Pakistan was under huge loans due to wrong policies of the governments. "Dams are not being built, standard of education is going down, garbage is being disposed of into sea but people are allowed to take their money abroad unchecked," lamented the chief justice. To a court query, the FBR chairman disclosed that Rs100 billion had been paid to tax filers under the head of sales tax return, however disbursement of Rs105 billion was still pending. Chief Justice Nisar also expressed concern over decreasing exports and rampant smuggling in the country. FBR chief Pasha sought permission to give an in-camera briefing to the judges on the issue of smuggling, which was allowed by the chief justice. The views expressed in the above article are that of Mr. M. Sarwar, Chief Editor, The Nation.

Pakistan's economy in limbo ahead of general elections

U.S. President Donald Trump may have promised that North Korea will become "very rich" on the back of American investment if Pyongyang ditches nuclear weapons but economists and academics who have studied the isolated country say it is China not the U.S. that will be the engine of any transformation.

The nearest template would not be based on American-style capitalism, but China's state-controlled market economy first championed by Deng Xiaoping, who became China's leader in 1978, these experts said. China was just coming out of the turmoil of the 27-year reign of Mao Zedong, a period during which capitalism was banned and private businesses and property were seized by the state and placed under collective ownership.

Deng introduced wrenching reforms that are widely regarded as creating the foundations of China's economic miracle in the past 40 years. The changes were massive, the growth phenomenal, but most importantly the Chinese Communist Party has achieved all of this while not only retaining power but increasing its control over the country.

And in the run up to the unprecedented summit between Trump and North Korean leader Kim Jong Un on Tuesday in Singapore, it has been China that Pyongyang has been increasingly turning to.

Kim has made two visits to meet Xi since March, while a high-level delegation from his ruling Workers' Party toured China's industrial hubs in an 11-day visit in May that focused on China's high-tech urban transport and latest scientific breakthroughs.

That delegation went to China only weeks after Kim declared an end to nuclear and missile tests and vowed an all-out effort toward "socialist economic construction."

Chinese media labelled Kim's announcement North Korea's "opening and reform", shorthand for Deng's policies, sparking a flurry of investment in housing in Dandong, the Chinese border town.

"Kim is talking to Trump because he needs to get the United States to back off sanctions. After that, headlines will be all about Kim and Xi Jinping," said Jeon Kyong-man, an economist at the Institute for Korean Integration of Society, with reference to the Chinese president.

China is already North Korea's most important ally and biggest trade partner. And since Kim assumed power in 2011 the trade relationship has become even more important. China now represents more than 90 percent of Pyongyang's trade, making it just about North Korea's only economic lifeline.

Stagnating economic growth in China's northeastern rustbelt has also spurred interest in ramping up Chinese economic ties with North Korea, according to Adam Cathcart, an expert on China-North Korea relations at Leeds University in the United Kingdom.

China's model of shifting from a planned economy to a market economy is attractive for Pyongyang because it was achieved with political, economic and social stability, according to Zhang Anyuan, chief economist at Dongxing Securities in Beijing.

"Taking into consideration geographic location, economic system, market size, economic development stage, China-North Korean economic cooperation has advantages that are irreplaceable and hard to replicate," Zhang said.

But Cathcart said that progress on economic liberalisation would likely be slow because North Korea will want to be careful about the increased political risks that could come from relaxing restrictions on the currency and migration.

As well as China, North Korea may also look to other economies where tight top-down control has been kept, including Vietnam or even the 'chaebol' business structures of South Korea, which could allow something closer to "a capital dictatorship," according to Cathcart.

Xi, under intense pressure from Trump, started enforcing sanctions strictly in the second half of 2017. By March this year, China imported no iron ore, coal or lead from North Korea for a sixth month in a row, in line with U.N. Security Council sanctions.

That has hurt North Korea's coal-intensive heavy industries and manufacturing sectors. But more importantly, plunging trade with Beijing has been "killing the most thriving part of the economy" - unofficial markets where individuals and wholesalers buy and sell mostly Chinese-made consumer goods and agricultural products, Jeon said.

"More than anything, it was China's decision to enforce sanctions that squeezed the economy and made removing of the sanctions an urgent task for Kim," he said.

Even after sanctions are lifted, North Korea will likely pursue state-managed growth because loosening controls is potentially destabilising for the regime, says Kim Byung-yeon, an economics professor at Seoul National University. "It could leave Kim Jong Un with less than half the power he has now."

As part of efforts to maintain control, any opening could initially be limited to "special economic zones," where Pyongyang has sought to combine its cheap labour with China's financial firepower and technological know-how, according to BMI Research, a unit of Fitch Group.

The Wonsan Special Tourist Zone in the east coast, or the suspended inter-Korean factory park in the North's border city of Kaesong are some other examples Kim might pursue to maintain state controls over the economy, experts say.

In Wonsan, Kim has already built a ski resort and a new airport to turn the city of 360,000 people into a billion-dollar tourist hotspot.

"These are the sorts of projects that are most likely to get underway first if the sanctions are eased," BMI Research said.

Jeon says this is "mosquito-net style" reform - similar to Deng Xiaoping's model - with limited foreign investment and market liberalisation contained within firm strictures of state control.

Deng championed a string of special economic zones along China's east coast where unique local legislation encouraged foreign investment in manufacturing joint-ventures that sold to export markets, while protecting Chinese industries from going head-to-head with multinationals.

"Deng designated Shenzhen as a special economic zone and made that sleepy fishing village to a manufacturing hub of the world," Jeon said. "Kim will be eager for those, especially as he will want minimal changes to other parts of the economy."

Kim has made two visits to meet Xi since March, while a high-level delegation from his ruling Workers' Party toured China's industrial hubs in an 11-day visit in May that focused on China's high-tech urban transport and latest scientific breakthroughs

U.S. President Donald Trump may have promised that North Korea will become "very rich" on the back of American investment if Pyongyang ditches nuclear weapons but economists and academics who have studied the isolated country say it is China not the U.S. that will be the engine of any transformation. The nearest template would not be based on American-style capitalism, but China's state-controlled market economy first championed by Deng Xiaoping, who became China's leader in 1978, these experts said. China was just coming out of the turmoil of the 27-year reign of Mao Zedong, a period during which capitalism was banned and private businesses and property were seized by the state and placed under collective ownership. Deng introduced wrenching reforms that are widely regarded as creating the foundations of China's economic miracle in the past 40 years. The changes were massive, the growth phenomenal, but most importantly the Chinese Communist Party has achieved all of this while not only retaining power but increasing its control over the country. And in the run up to the unprecedented summit between Trump and North Korean leader Kim Jong Un on Tuesday in Singapore, it has been China that Pyongyang has been increasingly turning to. Kim has made two visits to meet Xi since March, while a high-level delegation from his ruling Workers' Party toured China's industrial hubs in an 11-day visit in May that focused on China's high-tech urban transport and latest scientific breakthroughs. That delegation went to China only weeks after Kim declared an end to nuclear and missile tests and vowed an all-out effort toward "socialist economic construction." Chinese media labelled Kim's announcement North Korea's "opening and reform", shorthand for Deng's policies, sparking a flurry of investment in housing in Dandong, the Chinese border town. "Kim is talking to Trump because he needs to get the United States to back off sanctions. After that, headlines will be all about Kim and Xi Jinping," said Jeon Kyong-man, an economist at the Institute for Korean Integration of Society, with reference to the Chinese president. China is already North Korea's most important ally and biggest trade partner. And since Kim assumed power in 2011 the trade relationship has become even more important. China now represents more than 90 percent of Pyongyang's trade, making it just about North Korea's only economic lifeline. Stagnating economic growth in China's northeastern rustbelt has also spurred interest in ramping up Chinese economic ties with North Korea, according to Adam Cathcart, an expert on China-North Korea relations at Leeds University in the United Kingdom. China's model of shifting from a planned economy to a market economy is attractive for Pyongyang because it was achieved with political, economic and social stability, according to Zhang Anyuan, chief economist at Dongxing Securities in Beijing. "Taking into consideration geographic location, economic system, market size, economic development stage, China-North Korean economic cooperation has advantages that are irreplaceable and hard to replicate," Zhang said. But Cathcart said that progress on economic liberalisation would likely be slow because North Korea will want to be careful about the increased political risks that could come from relaxing restrictions on the currency and migration. As well as China, North Korea may also look to other economies where tight top-down control has been kept, including Vietnam or even the 'chaebol' business structures of South Korea, which could allow something closer to "a capital dictatorship," according to Cathcart. Xi, under intense pressure from Trump, started enforcing sanctions strictly in the second half of 2017. By March this year, China imported no iron ore, coal or lead from North Korea for a sixth month in a row, in line with U.N. Security Council sanctions. That has hurt North Korea's coal-intensive heavy industries and manufacturing sectors. But more importantly, plunging trade with Beijing has been "killing the most thriving part of the economy" - unofficial markets where individuals and wholesalers buy and sell mostly Chinese-made consumer goods and agricultural products, Jeon said. "More than anything, it was China's decision to enforce sanctions that squeezed the economy and made removing of the sanctions an urgent task for Kim," he said. Even after sanctions are lifted, North Korea will likely pursue state-managed growth because loosening controls is potentially destabilising for the regime, says Kim Byung-yeon, an economics professor at Seoul National University. "It could leave Kim Jong Un with less than half the power he has now." As part of efforts to maintain control, any opening could initially be limited to "special economic zones," where Pyongyang has sought to combine its cheap labour with China's financial firepower and technological know-how, according to BMI Research, a unit of Fitch Group. The Wonsan Special Tourist Zone in the east coast, or the suspended inter-Korean factory park in the North's border city of Kaesong are some other examples Kim might pursue to maintain state controls over the economy, experts say. In Wonsan, Kim has already built a ski resort and a new airport to turn the city of 360,000 people into a billion-dollar tourist hotspot. "These are the sorts of projects that are most likely to get underway first if the sanctions are eased," BMI Research said. Jeon says this is "mosquito-net style" reform - similar to Deng Xiaoping's model - with limited foreign investment and market liberalisation contained within firm strictures of state control. Deng championed a string of special economic zones along China's east coast where unique local legislation encouraged foreign investment in manufacturing joint-ventures that sold to export markets, while protecting Chinese industries from going head-to-head with multinationals. "Deng designated Shenzhen as a special economic zone and made that sleepy fishing village to a manufacturing hub of the world," Jeon said. "Kim will be eager for those, especially as he will want minimal changes to other parts of the economy."

North Korea seen looking to China, not US, for help in any economic transformation

Benchmark Sensex declined by over 214 points in opening trade today, extending yesterday's fall, tracking a weak trend in global markets amid fresh concerns of a possible China-US trade war.

Unabated capital outflows by foreign funds and profit-booking by retail investors too dampened sentiments.

There was caution among investors ahead of the May month derivatives expiry tomorrow.

The 30-share index, which had lost 216.24 points in the previous session, drifted down by 214.13 points, or 0.61 per cent, to 34,735.11.

The NSE Nifty cracked below the 10,600-mark by falling 69.45 points, or 0.65 per cent, to 10,563.85.

All sectoral indices led by bank, oil & gas and capital goods were in the negative zone, slipping up to 1.02 per cent.

Brokers said sustained foreign funds outflows, weak trend at other Asian markets and overnight losses at the Wall Street, rattled by renewed concerns of a possible China-US trade war and political uncertainty in Italy, mainly triggered selling here.

Major losers included Hero MotoCorp, Tata Motors, ICICI Bank, Axis Bank, SBI, Bajaj Auto, Bharti Airtel, Adani Ports, Yes Bank, Dr Reddy's and HDFC Ltd, falling by up to 1.92 per cent.

Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net of Rs 407.33 crore, while domestic institutional investors (DIIs) bought shares worth Rs 578.38 crore yesterday, provisional data showed.

Globally, Hong Kong's Hang Seng index was down 1.62 per cent, while Japan's Nikkei shed 1.79 per cent in early trade today. Shanghai Composite too was down by 2.04 per cent.

The US Dow Jones ended 1.58 per cent lower in yesterday's trade.&nbsp

The NSE Nifty cracked below the 10,600-mark by falling 69.45 points, or 0.65 per cent, to 10,563.85

Benchmark Sensex declined by over 214 points in opening trade today, extending yesterday's fall, tracking a weak trend in global markets amid fresh concerns of a possible China-US trade war. Unabated capital outflows by foreign funds and profit-booking by retail investors too dampened sentiments. There was caution among investors ahead of the May month derivatives expiry tomorrow. The 30-share index, which had lost 216.24 points in the previous session, drifted down by 214.13 points, or 0.61 per cent, to 34,735.11. The NSE Nifty cracked below the 10,600-mark by falling 69.45 points, or 0.65 per cent, to 10,563.85. All sectoral indices led by bank, oil & gas and capital goods were in the negative zone, slipping up to 1.02 per cent. Brokers said sustained foreign funds outflows, weak trend at other Asian markets and overnight losses at the Wall Street, rattled by renewed concerns of a possible China-US trade war and political uncertainty in Italy, mainly triggered selling here. Major losers included Hero MotoCorp, Tata Motors, ICICI Bank, Axis Bank, SBI, Bajaj Auto, Bharti Airtel, Adani Ports, Yes Bank, Dr Reddy's and HDFC Ltd, falling by up to 1.92 per cent. Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net of Rs 407.33 crore, while domestic institutional investors (DIIs) bought shares worth Rs 578.38 crore yesterday, provisional data showed. Globally, Hong Kong's Hang Seng index was down 1.62 per cent, while Japan's Nikkei shed 1.79 per cent in early trade today. Shanghai Composite too was down by 2.04 per cent. The US Dow Jones ended 1.58 per cent lower in yesterday's trade.

Sensex suffers more losses, slides 214 points on global cues

The benchmark BSE Sensex reclaimed the 35,000-mark by surging over 150 points in early trade today on easing geopolitical concerns and a sharp correction in global crude prices.

An appreciating rupee, encouraging earnings by some more companies and easing concerns over US-North Korea summit too boosted investor sentiment.

The 30-share index, which had gained 579.96 points in the previous two sessions, added 156.67 points, or 0.44 per cent, at 35,081.54.

The rupee strengthened by 39 paise to 67.39 against the dollar at the interbank forex market in early trade today.

Counters such as oil and gas, PSU, healthcare, realty, infrastructure, metal and banking were trading in the positive territory.

The NSE Nifty too edged up by 53.70 points, or 0.50 per cent, to 10,658.85.

Sun Pharma shares rose 4.66 per cent to Rs 488.30 after the drug maker on Friday posted 6.96 per cent increase in its consolidated net profit at Rs 1,308.96 crore for the fourth quarter ended March 2018.

Other major gainers that supported the indices were Yes Bank, SBI, Tata Steel, Axis Bank, Coal India, ONGC, NTPC, Maruti Suzuki, Asian Paint, HDFC Bank, Bharti Airtel, Dr Reddy's, Bajaj Auto and ITC, rising by up to 1.59 per cent.

Traders said building of fresh long positions amid continued buying by domestic institutional investors (DIIs) and Brent crude falling by 1.88 per cent to USD 75 per barrel in global markets, kept the bullish sentiment intact.

Meanwhile, on Friday, DIIs bought shares worth a net of Rs 887.76 crore, while foreign portfolio investors (FPIs) sold shares worth a net Rs 768.29 crore, provisional data showed.

Among other Asian markets, Hong Kong's Hang Seng was up 0.47 per cent, Japan's Nikkei up 0.15 per cent in early trade today. Shanghai Composite Index rose 0.18 per cent

The US Dow Jones Industrial Average ended 0.24 per cent lower in Friday's trade.

The US Dow Jones Industrial Average ended 0.24 per cent lower in Friday's trade

The benchmark BSE Sensex reclaimed the 35,000-mark by surging over 150 points in early trade today on easing geopolitical concerns and a sharp correction in global crude prices. An appreciating rupee, encouraging earnings by some more companies and easing concerns over US-North Korea summit too boosted investor sentiment. The 30-share index, which had gained 579.96 points in the previous two sessions, added 156.67 points, or 0.44 per cent, at 35,081.54. The rupee strengthened by 39 paise to 67.39 against the dollar at the interbank forex market in early trade today. Counters such as oil and gas, PSU, healthcare, realty, infrastructure, metal and banking were trading in the positive territory. The NSE Nifty too edged up by 53.70 points, or 0.50 per cent, to 10,658.85. Sun Pharma shares rose 4.66 per cent to Rs 488.30 after the drug maker on Friday posted 6.96 per cent increase in its consolidated net profit at Rs 1,308.96 crore for the fourth quarter ended March 2018. Other major gainers that supported the indices were Yes Bank, SBI, Tata Steel, Axis Bank, Coal India, ONGC, NTPC, Maruti Suzuki, Asian Paint, HDFC Bank, Bharti Airtel, Dr Reddy's, Bajaj Auto and ITC, rising by up to 1.59 per cent. Traders said building of fresh long positions amid continued buying by domestic institutional investors (DIIs) and Brent crude falling by 1.88 per cent to USD 75 per barrel in global markets, kept the bullish sentiment intact. Meanwhile, on Friday, DIIs bought shares worth a net of Rs 887.76 crore, while foreign portfolio investors (FPIs) sold shares worth a net Rs 768.29 crore, provisional data showed. Among other Asian markets, Hong Kong's Hang Seng was up 0.47 per cent, Japan's Nikkei up 0.15 per cent in early trade today. Shanghai Composite Index rose 0.18 per cent The US Dow Jones Industrial Average ended 0.24 per cent lower in Friday's trade.

Sensex reclaims 35 thousand mark, rises over 150 points

The BSE Sensex rose over 187 points in early trade today, extending yesterday's rally on robust buying in IT, energy and banking stocks amid unabated purchases by domestic institutional investors.

Asian shares were mixed after US President Donald Trump cancelled a planned meeting with North Korean leader Kim Jong Un.

The 30-share index jumped 187.14 points, or 0.54 per cent, to 34,850.25 with sectoral indices led by IT, teck, power, realty, infrastructure, capital goods, banking and auto trading in the positive zone, rising up to 1.38 per cent.

The gauge had gained 318.20 points in the previous session.

The NSE Nifty too climbed 48.70 points, or 0.46 per cent, to 10,562.55.

Major gainers were TCS, Infosys, Tata Steel, NTPC, HDFC Bank, Yes Bank, M&M, HDFC Ltd, Coal India, Bharti Airtel, Axis Bank, Dr Reddy's, RIL and Maruti Suzuki, rising up to 1.83 per cent.

State-owned oil companies IOC, OIL and BPCL recovered after a sharp decline yesterday.

Meanwhile, domestic institutional investors (DIIs) bought shares worth a net Rs 1,480.51, while foreign portfolio investors (FPIs) sold shares worth Rs 701.93 crore yesterday, as per provisional data.

In Asia, Japan's Nikkei rose 0.09 per cent, while Shanghai Composite Index fell 0.24 per cent. Hong Kong's Hang Seng was down 0.49 cent in early trade today.

The Dow Jones Industrial Average ended 0.30 per cent lower in yesterday's trade on a sharp decline in energy-related shares.

State-owned oil companies IOC, OIL and BPCL recovered after a sharp decline yesterday

The BSE Sensex rose over 187 points in early trade today, extending yesterday's rally on robust buying in IT, energy and banking stocks amid unabated purchases by domestic institutional investors. Asian shares were mixed after US President Donald Trump cancelled a planned meeting with North Korean leader Kim Jong Un. The 30-share index jumped 187.14 points, or 0.54 per cent, to 34,850.25 with sectoral indices led by IT, teck, power, realty, infrastructure, capital goods, banking and auto trading in the positive zone, rising up to 1.38 per cent. The gauge had gained 318.20 points in the previous session. The NSE Nifty too climbed 48.70 points, or 0.46 per cent, to 10,562.55. Major gainers were TCS, Infosys, Tata Steel, NTPC, HDFC Bank, Yes Bank, M&M, HDFC Ltd, Coal India, Bharti Airtel, Axis Bank, Dr Reddy's, RIL and Maruti Suzuki, rising up to 1.83 per cent. State-owned oil companies IOC, OIL and BPCL recovered after a sharp decline yesterday. Meanwhile, domestic institutional investors (DIIs) bought shares worth a net Rs 1,480.51, while foreign portfolio investors (FPIs) sold shares worth Rs 701.93 crore yesterday, as per provisional data. In Asia, Japan's Nikkei rose 0.09 per cent, while Shanghai Composite Index fell 0.24 per cent. Hong Kong's Hang Seng was down 0.49 cent in early trade today. The Dow Jones Industrial Average ended 0.30 per cent lower in yesterday's trade on a sharp decline in energy-related shares.

Sensex builds on gains, up 187 points in early trade

The BSE Sensex rebounded about 153 points in opening trade today on fresh buying in IT, teck, capital goods and healthcare counters amid mixed overseas cues.

Buying by domestic institutional investors and strengthening rupee also supported the recovery, brokers said.

Asian stocks traded mixed amid caution over US-China trade relations.

US stocks closed higher yesterday after minutes from the Federal Reserve's meeting reassured investors that the central bank will not be too aggressive with raising interest rates.

The 30-share Sensex rose 152.81 points, or 0.44 per cent, to 34,497.72, with sectoral indices IT, teck, capital goods, healthcare, power, consumer durables, bankex and realty advancing by up to 1.77 per cent.

The gauge had lost 306.33 points in the previous session.

The NSE Nifty also moved up by 38.15 points, or 0.36 per cent, to 10,468.50.

Major gainers were Infosys, Tata Steel, TCS, HDFC Ltd, Bharti Airtel, Coal India, Sun Pharma, Wipro, Yes Bank, Power Grid, Axis Bank and RIL, gaining up to 2.38 per cent

State-run lender SBI also extended its gaining streak for the third straight session, inching up 0.32 per cent to Rs 264.05.

However, Tata Motors plunged 4.41 per cent after the company yesterday reported a 49.82 per cent decline in consolidated net profit at Rs 2,176.16 crore for the March quarter with its British arm JLR continuing to face challenges in the UK and

Europe, in addition to one time impairment charge.

Meanwhile, domestic institutional investors (DIIs) bought shares worth a net Rs 789.78 crore, while foreign portfolio investors (FPIs) sold shares worth Rs 311.11 crore yesterday, as per provisional data.

Elsewhere in Asia, Hong Kong's Hang Seng rose 0.32 per cent while Shanghai Composite index was up 0.04 per cent in early trade today. However, Japan's Nikkei fell 1.10 per cent.

The Dow Jones Industrial Average ended 0.21 per cent higher in yesterday's trade but geopolitical and trade concerns continued to dent investor sentiment.&nbsp

Meanwhile, domestic institutional investors (DIIs) bought shares worth a net Rs 789.78 crore

The BSE Sensex rebounded about 153 points in opening trade today on fresh buying in IT, teck, capital goods and healthcare counters amid mixed overseas cues. Buying by domestic institutional investors and strengthening rupee also supported the recovery, brokers said. Asian stocks traded mixed amid caution over US-China trade relations. US stocks closed higher yesterday after minutes from the Federal Reserve's meeting reassured investors that the central bank will not be too aggressive with raising interest rates. The 30-share Sensex rose 152.81 points, or 0.44 per cent, to 34,497.72, with sectoral indices IT, teck, capital goods, healthcare, power, consumer durables, bankex and realty advancing by up to 1.77 per cent. The gauge had lost 306.33 points in the previous session. The NSE Nifty also moved up by 38.15 points, or 0.36 per cent, to 10,468.50. Major gainers were Infosys, Tata Steel, TCS, HDFC Ltd, Bharti Airtel, Coal India, Sun Pharma, Wipro, Yes Bank, Power Grid, Axis Bank and RIL, gaining up to 2.38 per cent State-run lender SBI also extended its gaining streak for the third straight session, inching up 0.32 per cent to Rs 264.05. However, Tata Motors plunged 4.41 per cent after the company yesterday reported a 49.82 per cent decline in consolidated net profit at Rs 2,176.16 crore for the March quarter with its British arm JLR continuing to face challenges in the UK and Europe, in addition to one time impairment charge. Meanwhile, domestic institutional investors (DIIs) bought shares worth a net Rs 789.78 crore, while foreign portfolio investors (FPIs) sold shares worth Rs 311.11 crore yesterday, as per provisional data. Elsewhere in Asia, Hong Kong's Hang Seng rose 0.32 per cent while Shanghai Composite index was up 0.04 per cent in early trade today. However, Japan's Nikkei fell 1.10 per cent. The Dow Jones Industrial Average ended 0.21 per cent higher in yesterday's trade but geopolitical and trade concerns continued to dent investor sentiment.

Sensex recoups 153 points on global cues

South Korea held a meeting on Friday to discuss on reducing the impact of the United States' decision to exit the 2015 nuclear deal with 
Iran on local economic affairs.

As reported by the Yonhap news agency on Saturday, a session was hosted Deputy Foreign Minister for economic affairs Yun Kang-Hyeon where they discussed strategies to deal with changing dynamics of the nuclear deal and its impact on their country.

Following exit from the nuclear deal, the United States had announced the imposition of sanctions on Tehran with firms given 90-day or 180-day grace periods, depending on their business sector.

Such economic measures are bound to impact Iran's trade relation with other countries including South Korea.

Meanwhile, South Korea is planning to meet relevant agencies in the United States to ensure wavering of the sanctions on Iran.

"The government will make constant efforts based on close cooperation among relevant authorities to minimize effects from future U.S. steps to the South Korean economy and firms with business ties with Iran," the ministry said.

Iran said Saturday it would wait to see whether Europe produces tangible results in overcoming US sanctions before deciding whether to stay in the nuclear deal, as a top EU official visited Tehran to present plans to maintain trade ties.

"The ball is in the court of the EU. They have presented different proposals, we will see if they materialise," Iran's Atomic Energy Organisation head Ali Akbar Salehi told reporters.

Iran has threatened to resume industrial uranium enrichment "without limit" unless its interests are preserved.

Salehi said the Iranian people had lost trust in the nuclear agreement, and if trade benefits were not protected "they will lose more confidence... and we will be forced to leave."

European leaders have outlined measures to protect EU firms from US sanctions.

But several of their companies -- including France's Total and Holland's Maersk -- have already said it will be impossible to stay in Iran once US sanctions are reimposed unless they receive explicit exemptions from Washington.

Following exit from the nuclear deal, the United States had announced the imposition of sanctions on Tehran with firms given 90-day or 180-day grace periods, depending on their business sector

South Korea held a meeting on Friday to discuss on reducing the impact of the United States' decision to exit the 2015 nuclear deal with Iran on local economic affairs. As reported by the Yonhap news agency on Saturday, a session was hosted Deputy Foreign Minister for economic affairs Yun Kang-Hyeon where they discussed strategies to deal with changing dynamics of the nuclear deal and its impact on their country. Following exit from the nuclear deal, the United States had announced the imposition of sanctions on Tehran with firms given 90-day or 180-day grace periods, depending on their business sector. Such economic measures are bound to impact Iran's trade relation with other countries including South Korea. Meanwhile, South Korea is planning to meet relevant agencies in the United States to ensure wavering of the sanctions on Iran. "The government will make constant efforts based on close cooperation among relevant authorities to minimize effects from future U.S. steps to the South Korean economy and firms with business ties with Iran," the ministry said. Iran said Saturday it would wait to see whether Europe produces tangible results in overcoming US sanctions before deciding whether to stay in the nuclear deal, as a top EU official visited Tehran to present plans to maintain trade ties. "The ball is in the court of the EU. They have presented different proposals, we will see if they materialise," Iran's Atomic Energy Organisation head Ali Akbar Salehi told reporters. Iran has threatened to resume industrial uranium enrichment "without limit" unless its interests are preserved. Salehi said the Iranian people had lost trust in the nuclear agreement, and if trade benefits were not protected "they will lose more confidence... and we will be forced to leave." European leaders have outlined measures to protect EU firms from US sanctions. But several of their companies -- including France's Total and Holland's Maersk -- have already said it will be impossible to stay in Iran once US sanctions are reimposed unless they receive explicit exemptions from Washington.

US exit from Iran deal to impact South Korean economy

Sri Lanka is headed for a debt crisis, the finance ministry warned Sunday, blaming a series of costly projects commissioned by the previous government for record-high repayments.

Finance Minister Mangala Samaraweera said payments of capital and interest would reach $2.84 billion this year, mostly to repay loans for extravagant projects under former president Mahinda Rajapakse.

"The crisis will further worsen next year," Samaraweera said in a statement, adding repayments are expected to soar to $4.28 in 2019.

"Repayments will go to pay the debts that were obtained during the Rajapakse regime for the waste, fraud and corruption committed by the oligarchies of the Rajapakses," he added.

Foreign reserves totalled $9.9 billion at the end of April, the central bank says.

Samaraweera said Rajapakse's administration secured two high-interest loans worth $1.5 billion in the final year of its decade-long rule.

Officials say Rajapakse relied heavily on China to finance his grand infrastructure projects but many ended up becoming a burden on Sri Lanka's $87 billion economy.

The government which ousted Rajapakse in 2015 was forced to lease to China a loss-making port commissioned by and named after the strongman leader in his home constituency of Hambantota in the south.

An international airport built in Rajapakse's name met the same fate, with revenue insufficient to meet the salary bill.&nbsp

Only one airline operates out of Rajapakse International and attempts to privatise the airport have not progressed.

Sri Lanka is currently drawing down a three-year $1.5 billion bailout package negotiated with the International Monetary Fund in June 2016 after facing a balance of payments crisis.

The government sharply raised domestic fuel prices earlier this month following pressure from the IMF and its central bank to reduce the burden of heavy subsidies on its struggling economy.

The IMF has said it will only release the next tranche of its bailout if the country adjusts fuel prices based on the cost of production.

The economy has been on the mend since the IMF bailout was approved but the 3.1 per cent growth figure for 2017 was slower than expected.

Sri Lanka is headed for a debt crisis, the finance ministry warned Sunday, blaming a series of costly projects commissioned by the previous government for record-high repayments

Sri Lanka is headed for a debt crisis, the finance ministry warned Sunday, blaming a series of costly projects commissioned by the previous government for record-high repayments. Finance Minister Mangala Samaraweera said payments of capital and interest would reach $2.84 billion this year, mostly to repay loans for extravagant projects under former president Mahinda Rajapakse. "The crisis will further worsen next year," Samaraweera said in a statement, adding repayments are expected to soar to $4.28 in 2019. "Repayments will go to pay the debts that were obtained during the Rajapakse regime for the waste, fraud and corruption committed by the oligarchies of the Rajapakses," he added. Foreign reserves totalled $9.9 billion at the end of April, the central bank says. Samaraweera said Rajapakse's administration secured two high-interest loans worth $1.5 billion in the final year of its decade-long rule. Officials say Rajapakse relied heavily on China to finance his grand infrastructure projects but many ended up becoming a burden on Sri Lanka's $87 billion economy. The government which ousted Rajapakse in 2015 was forced to lease to China a loss-making port commissioned by and named after the strongman leader in his home constituency of Hambantota in the south. An international airport built in Rajapakse's name met the same fate, with revenue insufficient to meet the salary bill. Only one airline operates out of Rajapakse International and attempts to privatise the airport have not progressed. Sri Lanka is currently drawing down a three-year $1.5 billion bailout package negotiated with the International Monetary Fund in June 2016 after facing a balance of payments crisis. The government sharply raised domestic fuel prices earlier this month following pressure from the IMF and its central bank to reduce the burden of heavy subsidies on its struggling economy. The IMF has said it will only release the next tranche of its bailout if the country adjusts fuel prices based on the cost of production. The economy has been on the mend since the IMF bailout was approved but the 3.1 per cent growth figure for 2017 was slower than expected.

Sri Lanka warns of looming foreign debt crisis

Annual retail inflation accelerated in April to 4.58 per cent, after easing for three straight months, government data showed on Monday, mainly driven by faster increases in fuel prices.

Analysts polled by Reuters had forecast April's CPI inflation at 4.42 per cent, up from March's 4.28 per cent.

April was the sixth straight month in which inflation was higher than the Reserve Bank of India's medium-term target of 4 per cent.&nbsp;

The Reserve Bank of India's medium-term target is 4 per cent.&nbsp;

Earlier on Monday, the government said that the wholesale price inflation (WPI) in April increased to 3.18 per cent, compared with the poll's forecast of 2.86 per cent and March`s level of 2.47 per cent.&nbsp;

The Reserve Bank of India's medium-term target is 4 per cent

Annual retail inflation accelerated in April to 4.58 per cent, after easing for three straight months, government data showed on Monday, mainly driven by faster increases in fuel prices. Analysts polled by Reuters had forecast April's CPI inflation at 4.42 per cent, up from March's 4.28 per cent. April was the sixth straight month in which inflation was higher than the Reserve Bank of India's medium-term target of 4 per cent. The Reserve Bank of India's medium-term target is 4 per cent. Earlier on Monday, the government said that the wholesale price inflation (WPI) in April increased to 3.18 per cent, compared with the poll's forecast of 2.86 per cent and March`s level of 2.47 per cent.

Retail inflation inches up for first time in four months

India's industrial output growth slowed to a five-month low of 4.4 percent in March, dragged down by smaller increases in mining, but the central bank is expected to hold interest rates in its next policy meeting amid growing inflation concerns.

Economists surveyed by Reuters had forecast 5.9 percent growth in output compared with a downward revised 7.0 percent annual increase in February.

Annual output growth was 4.3 percent during the fiscal year that ended in March 2018, lower than 4.6 percent in the previous year, data released on Friday by the Ministry of Statistics shows.

Manufacturing, which contributes 78 percent of industrial output, grew 4.5 percent last fiscal year, up from 4.4 percent a year ago, as big companies adjust following teething troubles with a national Goods and Services Tax launched last year.

The Reserve Bank of India, which is due to hold its next policy meeting on June 6, is widely expected to hold rates after having kept policy rates unchanged for the fourth straight meeting in April.

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The biggest risk that Asia's third-largest economy faces is rising crude oil prices, which hit $78 a barrel on Thursday, their highest since November 2014 following prospects of new US&nbsp;sanctions on Iran.

India meets 80 percent of its oil needs from imports.

Analysts said companies with significant transport costs could trim expansion plans as subdued rural demand hits economic growth. But foreign investors still have faith in India's growth prospects.

Prime Minister Narendra Modi, who is expected to try for a second term in general elections next year, has taken several steps to attract investments.

On Wednesday, Walmart Inc announced plans to acquire a majority stake in India's e-commerce firm Flipkart by paying $16 billion, the US&nbsp;retailer's largest-ever deal, a sign of confidence among investors in India's growth story.

Modi plans to spend 5.97 trillion rupees ($89.7 billion) on infrastructure in the 2018/19 fiscal year, more than three times what was allocated in 2014/15.

The government expects the $2.5-trillion economy could grow more than 7 percent in the current fiscal year that began in April, up from an estimated 6.6 percent the previous year.

Annual output growth was 4.3 percent during the fiscal year that ended in March 2018, lower than 4.6 percent in the previous year

India's industrial output growth slowed to a five-month low of 4.4 percent in March, dragged down by smaller increases in mining, but the central bank is expected to hold interest rates in its next policy meeting amid growing inflation concerns. Economists surveyed by Reuters had forecast 5.9 percent growth in output compared with a downward revised 7.0 percent annual increase in February. Annual output growth was 4.3 percent during the fiscal year that ended in March 2018, lower than 4.6 percent in the previous year, data released on Friday by the Ministry of Statistics shows. Manufacturing, which contributes 78 percent of industrial output, grew 4.5 percent last fiscal year, up from 4.4 percent a year ago, as big companies adjust following teething troubles with a national Goods and Services Tax launched last year. The Reserve Bank of India, which is due to hold its next policy meeting on June 6, is widely expected to hold rates after having kept policy rates unchanged for the fourth straight meeting in April. Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 for the month of March 2018 have been released. The General Index for the month of March 2018 stands at 139.0, which is 4.4 percent higher as compared to the level in the month of March 2017 — ANI (@ANI) May 11, 2018 × The biggest risk that Asia's third-largest economy faces is rising crude oil prices, which hit $78 a barrel on Thursday, their highest since November 2014 following prospects of new US sanctions on Iran. India meets 80 percent of its oil needs from imports. Analysts said companies with significant transport costs could trim expansion plans as subdued rural demand hits economic growth. But foreign investors still have faith in India's growth prospects. Prime Minister Narendra Modi, who is expected to try for a second term in general elections next year, has taken several steps to attract investments. On Wednesday, Walmart Inc announced plans to acquire a majority stake in India's e-commerce firm Flipkart by paying $16 billion, the US retailer's largest-ever deal, a sign of confidence among investors in India's growth story. Modi plans to spend 5.97 trillion rupees ($89.7 billion) on infrastructure in the 2018/19 fiscal year, more than three times what was allocated in 2014/15. The government expects the $2.5-trillion economy could grow more than 7 percent in the current fiscal year that began in April, up from an estimated 6.6 percent the previous year.

India's industrial growth slows to five-month low in March

Asian markets built on the past week's gains Friday following another rally in New York as traders welcomed a below-forecast US inflation read that dampened expectations for a sharp lift in interest rates.

While geopolitical tensions continue to linger after Donald Trump pulled out of the Iran nuclear pact this week, dealers were buoyed by the prospect of cheaper borrowing after data showed consumer prices edged up only slightly in April.

News that Trump and Kim Jong Un had agreed to meet on June 12 in Singapore -- the first US-North Korean summit in history -- lifted optimism and fuelled hopes for peace on the Korean peninsula.

The inflation data provided some relief to trading floors, which have fluctuated over recent months on worries that an improving US economy and an expected surge in inflation will force the Federal Reserve to tighten monetary policy.

"The market is breathing a sigh of relief that there was not an upside surprise to the inflation stats," Peter Boockvar, the chief investment officer of Bleakley Financial Group, wrote in an email to clients.

The news lifted all three main indexes on Wall Street and those gains extended into Asia.

Hong Kong rose one per cent, marking a fifth-straight gain, while Tokyo ended 1.2 per cent higher.

Singapore climbed 0.8 per cent and Seoul added 0.6 per cent, while Wellington, Jakarta and Taipei also posted healthy gains.

Manila was 2.3 per cent higher a day after data showed the economy expanded at a strong pace in the first three months of the year, and despite a central bank interest rate hike.

However, Sydney finished marginally lower and Shanghai lost 0.4 per cent.

Oil rally sputters

Greg McKenna, chief market strategist at AxiTrader, offered a word of caution, warning: "Sure, (consumer price) inflation didn't surprise on the upside.

"But that doesn't mean the Fed isn't still going to raise rates two or three more times this year and it doesn't mean quantitative tightening isn't going to continue."

Still, lower expectations for US rates hurt the dollar on Thursday and it struggled to recover in Asia with high-yielding currencies such as the Australian dollar, Mexican peso, Indonesian rupiah and South Korean won gaining ground.

Even the pound held its own despite the Bank of England slashing its economic growth and inflation outlook.

Movements in the crude market were tepid after recent surges that came on the back of Trump's Iran decision and data showing US demand for the commodity appeared to be picking up.

However, both main contracts remain around highs not seen since November 2014 and there is still talk of further rises to around $80 a barrel.

An exchange of rockets between Israel and Iran was also keeping traders wary of a flare-up in the volatile Middle East, with the Syria crisis still raging.

In early European trade London and Frankfurt each rose 0.1 per cent but Paris shed 0.2 per cent.

Singapore climbed 0.8 per cent and Seoul added 0.6 per cent, while Wellington, Jakarta and Taipei also posted healthy gains

Asian markets built on the past week's gains Friday following another rally in New York as traders welcomed a below-forecast US inflation read that dampened expectations for a sharp lift in interest rates. While geopolitical tensions continue to linger after Donald Trump pulled out of the Iran nuclear pact this week, dealers were buoyed by the prospect of cheaper borrowing after data showed consumer prices edged up only slightly in April. News that Trump and Kim Jong Un had agreed to meet on June 12 in Singapore -- the first US-North Korean summit in history -- lifted optimism and fuelled hopes for peace on the Korean peninsula. The inflation data provided some relief to trading floors, which have fluctuated over recent months on worries that an improving US economy and an expected surge in inflation will force the Federal Reserve to tighten monetary policy. "The market is breathing a sigh of relief that there was not an upside surprise to the inflation stats," Peter Boockvar, the chief investment officer of Bleakley Financial Group, wrote in an email to clients. The news lifted all three main indexes on Wall Street and those gains extended into Asia. Hong Kong rose one per cent, marking a fifth-straight gain, while Tokyo ended 1.2 per cent higher. Singapore climbed 0.8 per cent and Seoul added 0.6 per cent, while Wellington, Jakarta and Taipei also posted healthy gains. Manila was 2.3 per cent higher a day after data showed the economy expanded at a strong pace in the first three months of the year, and despite a central bank interest rate hike. However, Sydney finished marginally lower and Shanghai lost 0.4 per cent. Oil rally sputters Greg McKenna, chief market strategist at AxiTrader, offered a word of caution, warning: "Sure, (consumer price) inflation didn't surprise on the upside. "But that doesn't mean the Fed isn't still going to raise rates two or three more times this year and it doesn't mean quantitative tightening isn't going to continue." Still, lower expectations for US rates hurt the dollar on Thursday and it struggled to recover in Asia with high-yielding currencies such as the Australian dollar, Mexican peso, Indonesian rupiah and South Korean won gaining ground. Even the pound held its own despite the Bank of England slashing its economic growth and inflation outlook. Movements in the crude market were tepid after recent surges that came on the back of Trump's Iran decision and data showing US demand for the commodity appeared to be picking up. However, both main contracts remain around highs not seen since November 2014 and there is still talk of further rises to around $80 a barrel. An exchange of rockets between Israel and Iran was also keeping traders wary of a flare-up in the volatile Middle East, with the Syria crisis still raging. In early European trade London and Frankfurt each rose 0.1 per cent but Paris shed 0.2 per cent.

Most Asian markets end healthy week on a positive note

Former prime minister Manmohan Singh today launched a scathing attack on the Modi government for its "disastrous policies" and "economic mismanagement", and said the country was facing crises that were avoidable.

Singh attacked the government over a series of banking sector frauds, saying the money swindled almost quadrupled from Rs 28,416 crore in September 2013 to Rs 1.11 lakh crore in September 2017.

"Perpetrators of these frauds meanwhile escape with impunity. The economic mismanagement of the Modi government, and I say this with great care and responsibility, is slowly eroding the trust of the general public in the banking sector," he said.

"Our nation today is experiencing difficult times. Our farmers are facing an acute crisis, our aspirational youth are not finding opportunities, and the economy is growing below its potential," Singh told reporters here.

He said the "unfortunate truth" was that each of these crises was "entirely avoidable".

"It pains me to see how rather than standing up to all these challenges, the governments response has been to stifle dissent when deficiencies are pointed out," he said.

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Noting that economic policy has a significant impact on the lives of people, he said it was essential that those tasked with decision making pay careful attention to policies and programmes and not act on mere whims and fancies.

"India is a complex and diverse country and no one person can be the repository of all wisdom," he said in an apparent dig at Modi.

He said every time an answer was sought for any of the "disastrous policies" of the BJP government, "all we hear is that the intentions are virtuous".

Singh said the intentions of the Modi government which it claimed were good, had resulted in "massive" losses for the country.

"Its lack of reasoning and analysis is costing India and our collective future."

The former prime minister said under the UPA governments the growth rate averaged 7 per cent. It was 8 per cent at one point of time despite turbulent global conditions, he said.

The NDA government, he said, clocked inferior growth rate despite a favourable international climate and low oil prices. In fact, growth rate under the NDA is lower in spite of the change in the methodology to determine it "which paints a rosier picture than reality", Singh said. 
According to Singh, two "major avoidable blunders" of the Modi government had been demonetisation and hasty implementation of GST.

He said the losses the economy suffered due to these blunders had severely hurt the micro, small and medium enterprises and resulted in the loss of tens of thousands of jobs. 
Besides, exports as a share of the GDP plunged to a 14 year low at a time when the global economy was reviving and exports of other Asian nations like Vietnam were growing substantially, he said.

Singh said petrol and diesel prices were at a "historic high" despite a fall in international crude oil prices because the Modi government had chosen to levy "excessive" excise duty.

"Instead of passing on the benefits of low prices to the people, the Modi government has punished the people," he said.&nbsp;

'Our farmers are facing an acute crisis, our aspirational youth are not finding opportunities, and the economy is growing below its potential,' Singh said

Former prime minister Manmohan Singh today launched a scathing attack on the Modi government for its "disastrous policies" and "economic mismanagement", and said the country was facing crises that were avoidable. Singh attacked the government over a series of banking sector frauds, saying the money swindled almost quadrupled from Rs 28,416 crore in September 2013 to Rs 1.11 lakh crore in September 2017. "Perpetrators of these frauds meanwhile escape with impunity. The economic mismanagement of the Modi government, and I say this with great care and responsibility, is slowly eroding the trust of the general public in the banking sector," he said. "Our nation today is experiencing difficult times. Our farmers are facing an acute crisis, our aspirational youth are not finding opportunities, and the economy is growing below its potential," Singh told reporters here. He said the "unfortunate truth" was that each of these crises was "entirely avoidable". "It pains me to see how rather than standing up to all these challenges, the governments response has been to stifle dissent when deficiencies are pointed out," he said. It pains me to see how rather than standing up to all these challenges, the governments response has been to stifle dissent when deficiencies are pointed out' × Noting that economic policy has a significant impact on the lives of people, he said it was essential that those tasked with decision making pay careful attention to policies and programmes and not act on mere whims and fancies. "India is a complex and diverse country and no one person can be the repository of all wisdom," he said in an apparent dig at Modi. He said every time an answer was sought for any of the "disastrous policies" of the BJP government, "all we hear is that the intentions are virtuous". Singh said the intentions of the Modi government which it claimed were good, had resulted in "massive" losses for the country. "Its lack of reasoning and analysis is costing India and our collective future." The former prime minister said under the UPA governments the growth rate averaged 7 per cent. It was 8 per cent at one point of time despite turbulent global conditions, he said. The NDA government, he said, clocked inferior growth rate despite a favourable international climate and low oil prices. In fact, growth rate under the NDA is lower in spite of the change in the methodology to determine it "which paints a rosier picture than reality", Singh said. According to Singh, two "major avoidable blunders" of the Modi government had been demonetisation and hasty implementation of GST. He said the losses the economy suffered due to these blunders had severely hurt the micro, small and medium enterprises and resulted in the loss of tens of thousands of jobs. Besides, exports as a share of the GDP plunged to a 14 year low at a time when the global economy was reviving and exports of other Asian nations like Vietnam were growing substantially, he said. Singh said petrol and diesel prices were at a "historic high" despite a fall in international crude oil prices because the Modi government had chosen to levy "excessive" excise duty. "Instead of passing on the benefits of low prices to the people, the Modi government has punished the people," he said.

Our nation today is experiencing difficult times: Manmohan Singh

After starting on a positive note, the benchmark BSE Sensex fell over 100 points today on weak global cues as investors eyed the outcome of US-China trade talks, ahead of the US jobs report.

The 30-share index, after opening 103.41 points higher, turned negative on profit-booking to quote 118.75 points, or 0.34 per cent, lower at 34,984.39.

The gauge had lost 73.28 points in the previous session.

The 50-share NSE Nifty also turned negative and shed 33.06 points, or 0.31 per cent, to 10,646.05 after a higher opening at 10,700.45.

Top laggards were Asian Paints, Infosys, Wipro, Sun Pharma, Coal India, Bajaj Auto, RIL, NTPC, Axis Bank, Maruti Suzuki, ICICI Bank, Kotak Bank, Tata Steel and HDFC, falling up to 2 per cent.

Top gainers included Bharti Airtel, Adani Ports, HUL, ONGC, IndusInd Bank, Dr Reddy's, HDFC Bank, Yes Bank, SBI, TCS and L&T, rising up to 2.45 per cent.

Brokers said, a weak trend in other Asian bourses as investors watched the outcome of trade talks between the US and China, ahead of the April employment data, to be released later in the day, influenced sentiments here.

Market participants booked profits at higher levels in opening trade, they added.&nbsp

Meanwhile, on a net basis, foreign institutional investors (FIIs) sold shares worth Rs 148.42 crore and domestic institutional investors (DIIs) sold shares worth Rs 578.92 crore in yesterday's trade, provisional data showed.

Among other Asian markets, Hong Kong's Hang Seng shed 0.74 per cent, while Shanghai Composite Index lost 0.26 per cent in early trade today. Financial markets in Japan are closed for a four-day holiday weekend.

The US Dow Jones Industrial Average closed 0.02 per cent higher in yesterday's trade.

The 50-share NSE Nifty also turned negative and shed 33.06 points

After starting on a positive note, the benchmark BSE Sensex fell over 100 points today on weak global cues as investors eyed the outcome of US-China trade talks, ahead of the US jobs report. The 30-share index, after opening 103.41 points higher, turned negative on profit-booking to quote 118.75 points, or 0.34 per cent, lower at 34,984.39. The gauge had lost 73.28 points in the previous session. The 50-share NSE Nifty also turned negative and shed 33.06 points, or 0.31 per cent, to 10,646.05 after a higher opening at 10,700.45. Top laggards were Asian Paints, Infosys, Wipro, Sun Pharma, Coal India, Bajaj Auto, RIL, NTPC, Axis Bank, Maruti Suzuki, ICICI Bank, Kotak Bank, Tata Steel and HDFC, falling up to 2 per cent. Top gainers included Bharti Airtel, Adani Ports, HUL, ONGC, IndusInd Bank, Dr Reddy's, HDFC Bank, Yes Bank, SBI, TCS and L&T, rising up to 2.45 per cent. Brokers said, a weak trend in other Asian bourses as investors watched the outcome of trade talks between the US and China, ahead of the April employment data, to be released later in the day, influenced sentiments here. Market participants booked profits at higher levels in opening trade, they added. Meanwhile, on a net basis, foreign institutional investors (FIIs) sold shares worth Rs 148.42 crore and domestic institutional investors (DIIs) sold shares worth Rs 578.92 crore in yesterday's trade, provisional data showed. Among other Asian markets, Hong Kong's Hang Seng shed 0.74 per cent, while Shanghai Composite Index lost 0.26 per cent in early trade today. Financial markets in Japan are closed for a four-day holiday weekend. The US Dow Jones Industrial Average closed 0.02 per cent higher in yesterday's trade.

Sensex falls over 100 points on weak global cues

The Sensex rallied about 180 points to 34,893.20 in early session today, maintaining its positive form for the second straight day as the May derivatives series took off on a strong footing amid encouraging earnings and positive Asian cues.

Unabated buying by domestic institutional fulled the uptrend, brokers said.

The 30-share Sensex, which gained 212.33 points in the previous session, added 179.60 points, or 0.51 per cent, at 34,893.20.

All sectoral indices of BSE led by realty, banking and metal were in the positive zone, rising by up to 1.07 per cent.

The NSE Nifty jumped 60 points, or 0.56 per cent, to 10,677.80.

Shares of Reliance Industries and Maruti Suzuki were higher by 2.66 per cent and 1.28 per cent ahead of earnings, to be announced later in the day.

Other gainers include Axis Bank, Yes Bank, ICICI Bank, Adani Bank, Tata Steel, L&T, Tata Motors, SBI, Dr Reddy's, Sun Pharma and Bajaj Auto, rising up to 3.66 per cent.

Brokers said investors were busy in creating new positions following the beginning of the May futures and options (F&O) series that led to the rally in the market.

Moreover, encouraging quarterly corporate earnings so far and data showing that domestic institutional investors continued their buying activity, buoyed sentiment.

A firming trend in the rest of Asia following overnight positive leads from the Wall Street on solid earnings and a rebound in technology stocks as the US bond yields pulled back, accelerated buying activity, they added.

Meanwhile, on a net basis, domestic institutional investors (DIIs) bought shares worth Rs 684.11 crore, while foreign portfolio investors (FPIs) sold shares worth Rs 1,056.34 crore yesterday, provisional data showed.

Japan's Nikkei quoted 0.42 per cent higher while Hong Kong's Hang Seng gained 0.31 per cent in the early part but China's Shanghai Composite Index shed 0.22 per cent.

The US market ended 0.99 per cent higher yesterday.&nbsp

The US market ended 0.99 per cent higher yesterday

The Sensex rallied about 180 points to 34,893.20 in early session today, maintaining its positive form for the second straight day as the May derivatives series took off on a strong footing amid encouraging earnings and positive Asian cues. Unabated buying by domestic institutional fulled the uptrend, brokers said. The 30-share Sensex, which gained 212.33 points in the previous session, added 179.60 points, or 0.51 per cent, at 34,893.20. All sectoral indices of BSE led by realty, banking and metal were in the positive zone, rising by up to 1.07 per cent. The NSE Nifty jumped 60 points, or 0.56 per cent, to 10,677.80. Shares of Reliance Industries and Maruti Suzuki were higher by 2.66 per cent and 1.28 per cent ahead of earnings, to be announced later in the day. Other gainers include Axis Bank, Yes Bank, ICICI Bank, Adani Bank, Tata Steel, L&T, Tata Motors, SBI, Dr Reddy's, Sun Pharma and Bajaj Auto, rising up to 3.66 per cent. Brokers said investors were busy in creating new positions following the beginning of the May futures and options (F&O) series that led to the rally in the market. Moreover, encouraging quarterly corporate earnings so far and data showing that domestic institutional investors continued their buying activity, buoyed sentiment. A firming trend in the rest of Asia following overnight positive leads from the Wall Street on solid earnings and a rebound in technology stocks as the US bond yields pulled back, accelerated buying activity, they added. Meanwhile, on a net basis, domestic institutional investors (DIIs) bought shares worth Rs 684.11 crore, while foreign portfolio investors (FPIs) sold shares worth Rs 1,056.34 crore yesterday, provisional data showed. Japan's Nikkei quoted 0.42 per cent higher while Hong Kong's Hang Seng gained 0.31 per cent in the early part but China's Shanghai Composite Index shed 0.22 per cent. The US market ended 0.99 per cent higher yesterday.

Sensex soars 180 points, Nifty jumped up 60

Traffic congestion doesn't only cause inconvenience, other than contributing to the dipping air quality, traffic jams also cost the economy. Boston Consultancy Group, a global consultancy firm has come up with a report stating that traffic congestion in top Indian cities -- Delhi, Mumbai, Bengaluru and Kolkata -- cost nearly Rs. 1.5 lakh crore annually to the economy.&nbsp;

According to the report, commuters usually end up spending almost one-and-a-half time longer to travel the usual distance during peak hours -- 7 to 9 am and 6 to 8 pm.&nbsp;

Kolkata was rated the worst city when it came to traffic congestion followed by Bengaluru. The report suggested Delhiites to still have a better experience with traffic congestions over commuters in cities like Bengaluru, Mumbai and Kolkata, owing to a better road network.&nbsp;

The report surveyed almost 300 people from each city and studied the top modes of transportation used by the public. Delhi, for instance, had most people commuting via private cards while for Mumbaikars public transport like the local train was the top choice of transportation.&nbsp;

The report also suggested Bengaluru to be in a pressing need of better road network.&nbsp;

According to a report, commuters usually end up spending almost one-and-a-half time longer to travel the usual distance during peak hours

Traffic congestion doesn't only cause inconvenience, other than contributing to the dipping air quality, traffic jams also cost the economy. Boston Consultancy Group, a global consultancy firm has come up with a report stating that traffic congestion in top Indian cities -- Delhi, Mumbai, Bengaluru and Kolkata -- cost nearly Rs. 1.5 lakh crore annually to the economy. According to the report, commuters usually end up spending almost one-and-a-half time longer to travel the usual distance during peak hours -- 7 to 9 am and 6 to 8 pm. Kolkata was rated the worst city when it came to traffic congestion followed by Bengaluru. The report suggested Delhiites to still have a better experience with traffic congestions over commuters in cities like Bengaluru, Mumbai and Kolkata, owing to a better road network. The report surveyed almost 300 people from each city and studied the top modes of transportation used by the public. Delhi, for instance, had most people commuting via private cards while for Mumbaikars public transport like the local train was the top choice of transportation. The report also suggested Bengaluru to be in a pressing need of better road network.

Traffic congestion in 4 top Indian cities costs economy nearly Rs 1.5 lakh crore: Report

Having speeded up printing presses to refill banks' empty ATMs in some parts of the country, the Reserve Bank of India released data on Wednesday showing that people were still hoarding cash as withdrawals outpaced spending.

Typically, economists say, cash withdrawn from banks takes a few months to re-enter circulation as people spend. Because of these lags, the weekly reserve money figures don't tell exactly how much people have hoarded, but the data does give a strong sense of the trend.

The incremental increase in currency in circulation, a component of the data, shows how much people are withdrawing every week and the amount of new money the RBI is supplying to banks.

During the week to April 20, they took 163.4 billion rupees ($2.44 billion) out of the banks, bringing the total for the first three weeks of the month to 595.2 billion rupees, the RBI data showed. In the previous three weeks, withdrawals totalled 164.7 billion rupees.

Currency withdrawals in the January-March quarter stood at 1.4 trillion rupees, about 27 per cent more than in the same quarter of 2016.

Overall, the currency in circulation stood at 18.9 trillion rupees as of April 20, 18.9 per cent up since the beginning of last October when withdrawals began to gather pace.

Alarm bells only rang this month when cash dispensers began running dry in several states, including Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh and Bihar.

Neither the central bank nor commercial bankers appear to have a clear idea about this sudden pick up in withdrawals.

The RBI did not elaborate on Wednesday's reserve money data but in a circular last week it had said the shortage could be due to a delay in getting cash to the ATMs and that it has ramped up note printing.

But there is concern that Modi's audacious decision to take high-value banknotes out of circulation in late 2016 may be suffering a blowback, as Indians revert to old habits of keeping cash out of the banks, and out of sight of the taxman.

Rupa Rege Nitsure, a group chief economist at L&T Finance Holdings, suspected the spike in withdrawals could be a belated reaction after the government's so-called "demonetisation" move.

"Post demonetisation, there is a fear among people over the availability of cash and there could be a tendency of small businesses withdrawing money and hoarding cash given that bank credit is not easily available to them," she said.

Returning to normal

The government had wanted to push people toward making more transactions electronically, rather than rely on cash.

But the recent shortages of the new 2000 rupee bank notes has left analysts wondering if mattresses are being re-stuffed.

Analysts reckon a number of factors are behind the hoarding, including concerns over the health of Indian banks, avoidance of a new goods and services tax, preparations for campaign spending ahead of an election in the southern state Karnataka, and farmers withdrawing money during the harvest season of January to March.

Some analysts also say that, as economic growth managed to outpace the recovery in money supply after the 'demonetisation', there was always going to be a squeeze on demand for cash.

Afterall, it took until March for currency in circulation to rise above 17.98 trillion rupees level posted before the 2016 demonetisation.

"The currency supply by RBI has not kept pace with the growth in the economy and that is the reason the demand for cash has increased," said State Bank of India's chief economist Soumya Kanti Ghosh.

According to a note from SBI issued on April 18 the RBI still had to print an additional 700 billion rupees ($10.54 billion) to bridge the gap between demand and supply.

Neeraj Vyas, SBI's chief operating officer, told Reuters, that the downtime for ATMs out of money had reduced, but the situation should return to normal in "maybe another 5-7 days".

Currency withdrawals in the January-March quarter stood at 1.4 trillion rupees, about 27 percent more than in the same quarter of 2016

Having speeded up printing presses to refill banks' empty ATMs in some parts of the country, the Reserve Bank of India released data on Wednesday showing that people were still hoarding cash as withdrawals outpaced spending. Typically, economists say, cash withdrawn from banks takes a few months to re-enter circulation as people spend. Because of these lags, the weekly reserve money figures don't tell exactly how much people have hoarded, but the data does give a strong sense of the trend. The incremental increase in currency in circulation, a component of the data, shows how much people are withdrawing every week and the amount of new money the RBI is supplying to banks. During the week to April 20, they took 163.4 billion rupees ($2.44 billion) out of the banks, bringing the total for the first three weeks of the month to 595.2 billion rupees, the RBI data showed. In the previous three weeks, withdrawals totalled 164.7 billion rupees. Currency withdrawals in the January-March quarter stood at 1.4 trillion rupees, about 27 per cent more than in the same quarter of 2016. Overall, the currency in circulation stood at 18.9 trillion rupees as of April 20, 18.9 per cent up since the beginning of last October when withdrawals began to gather pace. Alarm bells only rang this month when cash dispensers began running dry in several states, including Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh and Bihar. Neither the central bank nor commercial bankers appear to have a clear idea about this sudden pick up in withdrawals. The RBI did not elaborate on Wednesday's reserve money data but in a circular last week it had said the shortage could be due to a delay in getting cash to the ATMs and that it has ramped up note printing. But there is concern that Modi's audacious decision to take high-value banknotes out of circulation in late 2016 may be suffering a blowback, as Indians revert to old habits of keeping cash out of the banks, and out of sight of the taxman. Rupa Rege Nitsure, a group chief economist at L&T Finance Holdings, suspected the spike in withdrawals could be a belated reaction after the government's so-called "demonetisation" move. "Post demonetisation, there is a fear among people over the availability of cash and there could be a tendency of small businesses withdrawing money and hoarding cash given that bank credit is not easily available to them," she said. Returning to normal The government had wanted to push people toward making more transactions electronically, rather than rely on cash. But the recent shortages of the new 2000 rupee bank notes has left analysts wondering if mattresses are being re-stuffed. Analysts reckon a number of factors are behind the hoarding, including concerns over the health of Indian banks, avoidance of a new goods and services tax, preparations for campaign spending ahead of an election in the southern state Karnataka, and farmers withdrawing money during the harvest season of January to March. Some analysts also say that, as economic growth managed to outpace the recovery in money supply after the 'demonetisation', there was always going to be a squeeze on demand for cash. Afterall, it took until March for currency in circulation to rise above 17.98 trillion rupees level posted before the 2016 demonetisation. "The currency supply by RBI has not kept pace with the growth in the economy and that is the reason the demand for cash has increased," said State Bank of India's chief economist Soumya Kanti Ghosh. According to a note from SBI issued on April 18 the RBI still had to print an additional 700 billion rupees ($10.54 billion) to bridge the gap between demand and supply. Neeraj Vyas, SBI's chief operating officer, told Reuters, that the downtime for ATMs out of money had reduced, but the situation should return to normal in "maybe another 5-7 days".

RBI data suggests Indians may have gone back to hoarding cash

Businesses should welcome Turkey's state of emergency because it guards against terrorism and prevents workers from going out on strike, President Tayyip Erdogan said on Saturday.

Parliament this week voted to extend the state of emergency, introduced following a failed coup in July 2016, for a further three months. It is the seventh such extension of emergency rule, which lets Erdogan and the government bypass parliament in passing new laws and allows them to suspend rights and freedoms.&nbsp

The extensions have been roundly criticised by human rights groups and Turkey's Western allies. The country's main business lobby, TUSIAD, this week renewed its call for a swift end to emergency rule.

"The state of emergency only affects terrorists. Now it's preventing labour strikes, such as the Bursa strike, which we stopped right away. It's a struggle against terrorism," Erdogan said in a speech to the DEIK business lobby, which represents Turkey's private sector overseas.

"When our business people say the state of emergency should be lifted, it upsets us... We will continue extending it for the peace of our country, yes we will, for the 10th time if necessary."

Earlier this year authorities stopped workers in the northwestern city of Bursa, home to the auto industry and a hub for textile manufacturing, from going out on strike.&nbsp

Under emergency rule, strikes, protests and displays of civil disobedience can be shut down on security grounds.

Erdogan this week set snap presidential and parliamentary elections for June, bringing them forward by more than a year in a shock move that may have left the opposition ill-prepared to credibly challenge him.

The United States this week said it had concerns about Turkey's ability to hold free and fair elections under emergency rule, comments that Ankara dismissed.

The United Nations last month called for an end to the state of emergency, saying it had led to "massive and serious" human rights violations in largely Kurdish southeastern Turkey, including killings and torture.

Turkey slammed that report as rife with unfounded allegations. Ankara says its measures are necessary, given the severity of the security threats it faces.

More than 160,000 people have been detained since the failed coup and a similar number of civil servants sacked from their jobs, the United Nations has said. Scores of media outlets have been shut and journalists and activists have been detained.

 
&nbsp

Erdogan this week set snap presidential and parliamentary elections for June

Businesses should welcome Turkey's state of emergency because it guards against terrorism and prevents workers from going out on strike, President Tayyip Erdogan said on Saturday. Parliament this week voted to extend the state of emergency, introduced following a failed coup in July 2016, for a further three months. It is the seventh such extension of emergency rule, which lets Erdogan and the government bypass parliament in passing new laws and allows them to suspend rights and freedoms. The extensions have been roundly criticised by human rights groups and Turkey's Western allies. The country's main business lobby, TUSIAD, this week renewed its call for a swift end to emergency rule. "The state of emergency only affects terrorists. Now it's preventing labour strikes, such as the Bursa strike, which we stopped right away. It's a struggle against terrorism," Erdogan said in a speech to the DEIK business lobby, which represents Turkey's private sector overseas. "When our business people say the state of emergency should be lifted, it upsets us... We will continue extending it for the peace of our country, yes we will, for the 10th time if necessary." Earlier this year authorities stopped workers in the northwestern city of Bursa, home to the auto industry and a hub for textile manufacturing, from going out on strike. Under emergency rule, strikes, protests and displays of civil disobedience can be shut down on security grounds. Erdogan this week set snap presidential and parliamentary elections for June, bringing them forward by more than a year in a shock move that may have left the opposition ill-prepared to credibly challenge him. The United States this week said it had concerns about Turkey's ability to hold free and fair elections under emergency rule, comments that Ankara dismissed. The United Nations last month called for an end to the state of emergency, saying it had led to "massive and serious" human rights violations in largely Kurdish southeastern Turkey, including killings and torture. Turkey slammed that report as rife with unfounded allegations. Ankara says its measures are necessary, given the severity of the security threats it faces. More than 160,000 people have been detained since the failed coup and a similar number of civil servants sacked from their jobs, the United Nations has said. Scores of media outlets have been shut and journalists and activists have been detained.

Turkey's Erdogan says emergency rule good for economy as stops terrorism, strikes

Former finance minister P Chidambaram today said the "ghost" of demonetisation has come back to haunt the government and alleged that the Rs 2,000 notes were printed only to help hoarders.

In the wake of a cash crunch in some parts of the country, he also said there was a possibility that people have lost confidence in the banking system due to the "bank scams" and they were not putting their surplus money into the banks.

"The ghost of demonetisation has come back to haunt the Govt/RBI. Why are ATMs still being re-calibrated even 17 months after demonetisation?

"After demonetising 500 and 1000 rupee notes, Govt printed Rs 2000 notes! Now, Govt is complaining that Rs 2000 notes are being hoarded!! We always knew that Rs 2000 notes were printed only to help hoarders," he said in a series of tweets.

Dismissing the statement of the Reserve Bank of India that there was no shortage of currency in the system as "unsatisfactory", the senior Congress leader said if the RBI has printed and supplied sufficient cash, it must explain why there is a cash shortage.

"I also suspect that RBI seriously miscalculated demand for cash in the post-harvest season. Is it correct that currency in circulation has increased by only 2.75 percent since demonetisation? If so, I maintain that Govt/RBI are not allowing money supply to grow at the same rate as the nominal GDP," he said.

Chidambaram said he suspected ordinary people were withdrawing cash but not putting back into the banks their surplus cash.

"It is possible that there is some loss of confidence in the banking system, thanks to the bank scams," he said.

He said he supported the digitisation, but the government cannot force the pace of digitisation or arbitrarily reduce the supply of cash.

According to officials, cash position across the country is improving fast with over 80 percent of 2.2 lakh ATMs operating normally today.

Unusual spurt in demand for currency had led to many ATMs and banks running out of cash in Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, Telengana and poll-bound Karnataka and some other states yesterday even as the government and the RBI assured the public that there was no currency shortage.

In the wake of cash crunch in some parts of the country, he also said there was a possibility that people have lost confidence in the banking system due to the "bank scams" and they were not putting their surplus money into the banks.

Former finance minister P Chidambaram today said the "ghost" of demonetisation has come back to haunt the government and alleged that the Rs 2,000 notes were printed only to help hoarders. In the wake of a cash crunch in some parts of the country, he also said there was a possibility that people have lost confidence in the banking system due to the "bank scams" and they were not putting their surplus money into the banks. "The ghost of demonetisation has come back to haunt the Govt/RBI. Why are ATMs still being re-calibrated even 17 months after demonetisation? "After demonetising 500 and 1000 rupee notes, Govt printed Rs 2000 notes! Now, Govt is complaining that Rs 2000 notes are being hoarded!! We always knew that Rs 2000 notes were printed only to help hoarders," he said in a series of tweets. Dismissing the statement of the Reserve Bank of India that there was no shortage of currency in the system as "unsatisfactory", the senior Congress leader said if the RBI has printed and supplied sufficient cash, it must explain why there is a cash shortage. "I also suspect that RBI seriously miscalculated demand for cash in the post-harvest season. Is it correct that currency in circulation has increased by only 2.75 percent since demonetisation? If so, I maintain that Govt/RBI are not allowing money supply to grow at the same rate as the nominal GDP," he said. Chidambaram said he suspected ordinary people were withdrawing cash but not putting back into the banks their surplus cash. "It is possible that there is some loss of confidence in the banking system, thanks to the bank scams," he said. He said he supported the digitisation, but the government cannot force the pace of digitisation or arbitrarily reduce the supply of cash. According to officials, cash position across the country is improving fast with over 80 percent of 2.2 lakh ATMs operating normally today. Unusual spurt in demand for currency had led to many ATMs and banks running out of cash in Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, Telengana and poll-bound Karnataka and some other states yesterday even as the government and the RBI assured the public that there was no currency shortage.

'Ghost' of demonetisation has returned to haunt government: P Chidambaram

China has various contingency plans and policy reserves to deal with trade frictions started by the United States, the country's top economic planner said on Wednesday.

The impact from trade frictions between China and the United States on China's macro economy is limited and manageable, Yan Pengcheng, spokesman for the National Development and Reform Commission, told a news conference.

Trade tensions have been escalating between the world's top two economies, leading to worries that Washington and Beijing may engage in a full-scale trade war that could damage global growth and roil markets.

The impact from trade frictions between China and the United States on China's macro economy is limited and manageable, Yan Pengcheng, spokesman for the National Development and Reform Commission, told a news conference

China has various contingency plans and policy reserves to deal with trade frictions started by the United States, the country's top economic planner said on Wednesday. The impact from trade frictions between China and the United States on China's macro economy is limited and manageable, Yan Pengcheng, spokesman for the National Development and Reform Commission, told a news conference. Trade tensions have been escalating between the world's top two economies, leading to worries that Washington and Beijing may engage in a full-scale trade war that could damage global growth and roil markets.

China has contingency plans to deal with US trade frictions: Top economic planner

India will have to create and nurture a very healthy and supportive macro-economic environment to become USD 10 trillion economy by 2030, Economic Affairs Secretary Subhash Chandra Garg today said here.

Garg further said the Modi government has taken many reform measures since 2014, including GST (Goods and Service Tax) and IBC (Insolvency and Bankruptcy Code).

"We are USD 2.5 trillion economy... growing reasonably well... By 2030, to become USD 10 trillion economy, we will have to create and nurture very healthy and supportive macro-economic environment," he said while participating in panel discussion organised by industry body CII.

Garg also said the government is working on an overseas investment policy with an aim to provide support to Indian businesses which will invest abroad.

Speaking at the event, Department of Industrial Policy & Promotion (DIPP) Secretary Ramesh Abhishek said India should not be only in top 50 in ease of doing business rank, but the country should do even better.

Abhishek pointed out that India is the most open economy as far as FDI is concerned.

C K Mishra, Secretary, Ministry of Environment, Forest and Climate Change, said in 2014, it used to take 600 days to get environment clearance, now it takes 121 days to get environment clearances.

"By August, it will come down to 100 days," Mishra added.

K P Krishnan, Secretary, Ministry of Skill Development and Entrepreneurship, said India requires 10 times the number of skilled force that the country is currently producing. 
&nbsp

Speaking at the event, Department of Industrial Policy & Promotion (DIPP) Secretary Ramesh Abhishek said India should not be only in top 50 in ease of doing business rank, but the country should do even better.

India will have to create and nurture a very healthy and supportive macro-economic environment to become USD 10 trillion economy by 2030, Economic Affairs Secretary Subhash Chandra Garg today said here. Garg further said the Modi government has taken many reform measures since 2014, including GST (Goods and Service Tax) and IBC (Insolvency and Bankruptcy Code). "We are USD 2.5 trillion economy... growing reasonably well... By 2030, to become USD 10 trillion economy, we will have to create and nurture very healthy and supportive macro-economic environment," he said while participating in panel discussion organised by industry body CII. Garg also said the government is working on an overseas investment policy with an aim to provide support to Indian businesses which will invest abroad. Speaking at the event, Department of Industrial Policy & Promotion (DIPP) Secretary Ramesh Abhishek said India should not be only in top 50 in ease of doing business rank, but the country should do even better. Abhishek pointed out that India is the most open economy as far as FDI is concerned. C K Mishra, Secretary, Ministry of Environment, Forest and Climate Change, said in 2014, it used to take 600 days to get environment clearance, now it takes 121 days to get environment clearances. "By August, it will come down to 100 days," Mishra added. K P Krishnan, Secretary, Ministry of Skill Development and Entrepreneurship, said India requires 10 times the number of skilled force that the country is currently producing.

'India needs healthy macro-economic environment to become $10 trillion economy'

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