Mumbai

Aviation Industry Won’t Face Turbulance for Too Long

July 24 – Even as major airlines across the world plan to cut air routes to low load destinations, in the face of rising fuel costs, Dinesh Keskar, Senior Vice-President – Sales, Boeing Commercial Airplanes, feel that after this turbulant time, India's aviation industry will see smooth sailing.

The current downturn in the Indian aviation industry would end in the next 10 to 12 months as the sector reduces flights and resolves overcapacity issues, said the US-based aircraft manufacturer Boeing told the Hindu Business Line.

India’s Diamond Traders Have Their Work Cut out For Them

July 14 – A little known fact states that India polishes about nine in every ten diamonds, mostly tiny stones less than a carat. None the less, the country's diamond traders have their eyes set on brighter tragets – the trade of rough diamonds.

"We're trying to make India the largest trading centre and manufacturing centre for diamonds," said Sanjay Kothari, the chairman of India's Gem & Jewellery Export Promotion Council (GJEPC) told Reuters. "Why should we go to Antwerp?"

A bullish confidence is common among Indian businessmen these days. Nonetheless, even if few see Antwerp being eclipsed any time soon, the ambition of Kothari and his colleagues is giving pause to at least some Antwerp traders.

Interest Rate Rises to 8.5 Percent

June 25 – The Reserve bank of India raised interest rates for the second time this month and asked lenders to set aside more money as reserves to cool inflation running at a 13- year high.

The repurchase rate was lifted to 8.5 percent from 8 percent, and the cash reserve ratio to 8.75 percent from 8.25 percent, India's central bank said. The increase was the biggest since 2000 and followed a quarter-point rise on June 11.

Governor Yaga Venugopal Reddy is under pressure from the finance ministry to tighten monetary policy after record oil prices drove inflation to 11.05 percent in the week ended June 7. That may further hurt consumer demand and threatens to derail India's record 8.8 percent annual economic growth since 2003, the fastest after China among the world's major economies, Bloomberg reported.

Revving up India’s auto Industry

Apr. 1 – Two of India's heavy weight auto makers seperately announced on Monday that they would be pumping in Rs 75 billion (US$1.9 billion) into India's already booming auto sector.

While Ratan Tata controlled Tata Motors pledged to invest Rs 60 billion (US$1.5 billion) into ramping up their existing manufactuing unit and building a vehicle testing facility over 4-5 years at Chakan, near Mumbai, Mahindra & Mahindra promised the Maharashtra government they would invest Rs 15 billion (US$375 million) in addition to to the Rs 25 billion (US$625 million) that they have already earmarked to make commercial vehicles at a greenfield site at Chakan. The total sum of Rs. 40 billion (US$1 billion) will be utilized towards the development and production of all vehicles slated to be rolled out from the proposed Greenfield.

The investment by Tata Motors is the single largest investment by the automobile sector in the state.

Sliding down the sensex

Mar. 18: The monsoon is still a few months away. But a different kind of deluge—bad news—dampened spirits on Dalal Street. On Tuesday the Times of India said fears of further losses to Indian banks, a slowdown in corporate growth and the fast-spreading contagion of turmoil in global financial markets took their toll on Monday.

The sensex lost 951 points to close at 14,809. This was its second steepest fall, wiping out Rs 3.2 lakh crore in investor wealth. Since January 10, when the sensex touched its peak of 21,206 points, more than Rs 25.1 lakh crore of investor wealth vanished into thin air.