Closing auction price discovery for eligible derivatives shares begins as monetary policy retains the repo rate and neutral stance. The Reserve Bank retained the repo rate with a neutral stance amid uncertainty over energy prices and supply disruptions. Stock exchanges introduced the Closing Auction Session in the equity cash segment for eligible shares with futures and options contracts. This auction-based mechanism determines closing prices of eligible stocks and aims to make price discovery more transparent and robust.
Services-sector growth slowed as weaker demand, competition and postponed orders moderated business activity, while employment improved modestly. Services-sector growth slowed as domestic and export orders moderated amid weaker demand, competitive pressures, softer market conditions and postponed orders. Output continued to expand, but at its weakest pace in more than four years. Employment growth improved modestly, while input costs rose and firms increased selling prices. Business confidence remained positive but declined, and the composite output indicator weakened due principally to the sharp slowdown in services activity.
Interim bail conditions require residence outside the state and trial attendance in alleged manpower commission corruption proceedings. Interim bail was granted to Anwar Dhebar in a matter involving alleged corruption and an illegal commission mechanism linked to a state marketing corporation. Conditions require him to remain outside Chhattisgarh, attend the trial court, and provide his residential address. The allegations concern manpower supply agencies allegedly being compelled to pay commissions for clearance of legitimate bills, with proceeds routed through intermediaries. The case was registered under the Indian Penal Code and the Prevention of Corruption Act.
Tax certainty measures revise fund-management safe harbours, electronic-payment charges, sectoral exemptions, business-trust treatment, and excess expenditure appropriation. The Taxation and Other Laws (Amendment) Bill, 2026 proposes to replace the Income-tax (Amendment) Ordinance, 2026 and amend payment-system and tax laws. It would prohibit charges on notified electronic payments, revise safe-harbour conditions for eligible investment funds and fund managers, and expand tax exemptions for Government securities, qualifying rough-diamond sales and bonded-warehouse component storage. It also modifies exemptions concerning electronic-goods contract manufacturing, data centres and business-trust dividends, while imposing a differentiated surcharge on qualifying special purpose vehicles. A separately included appropriation bill authorises excess expenditure from the Consolidated Fund of India.
Growth and inflation projections reflect resilient domestic activity while energy volatility, supply disruptions, and food prices sustain inflation risks. Monetary policy projections for fiscal 2026-27 revise real GDP growth upward to 6.7 per cent and Consumer Price Index inflation downward to 5 per cent. Domestic activity is described as resilient amid global uncertainty, but inflationary risks persist from rainfall disruption, energy-price volatility, supply-chain uncertainty, and second-round effects of higher food, fuel and input costs. Core inflation is projected at 4.3 per cent for the fiscal year.
Industry collaboration strengthens MSME competitiveness through shared resources, market linkages, capability building and inclusive support for women entrepreneurs. MSME development is linked to collaboration, knowledge-sharing, institutional support and capability building. Industry associations can provide networking, policy advocacy, business intelligence, skills programmes, shared infrastructure and market linkages, while collective procurement, shared logistics, digital commerce and export readiness may improve competitiveness. Women-led enterprises benefit from market-oriented capability development, mentorship, continuous learning, professional networks, capacity-building programmes and institutional support. The Development of Industry Associations initiative is intended to connect associations and facilitate the sharing of best practices.
Monetary policy rate maintenance continues under a neutral stance amid energy disruption, inflation concerns and sustained currency depreciation. Monetary policy rate maintenance was continued with the repo rate retained at 5.25 per cent under a neutral stance amid uncertainty over energy prices and supply disruptions associated with the West Asia crisis. The growth forecast was marginally increased and the inflation projection reduced. Sustained rupee depreciation against the dollar was attributed to costly oil, capital outflows, widening trade deficits and a strong US dollar.
Monetary policy rate pause maintains a neutral stance amid energy disruption, inflation concerns and sustained rupee depreciation pressures. Monetary policy rates were retained without change for a third consecutive review, with a neutral stance maintained amid uncertainty over energy prices and supply disruptions associated with the West Asia crisis. The policy assessment noted retail inflation above the medium-term target, alongside an upward revision to growth expectations and a downward revision to the inflation projection. Continued rupee depreciation was linked to higher oil prices, capital outflows, widening trade deficits and a stronger US dollar.
Foreign exchange market movement strengthens as lower crude prices and monetary policy signals influence the rupee's direction. Foreign exchange market movement saw the rupee appreciate against the US dollar in early trading, supported by lower crude oil prices, a softer dollar index, domestic equity gains and net foreign institutional investment. Market attention centred on the Reserve Bank of India's monetary policy decision, with expectations of an unchanged benchmark repo rate. Policy communication on inflation and developments in Hormuz-related talks were identified as factors that could influence the rupee's direction.
Dearness allowance arrears must be cleared promptly, while the government examines legal remedies and continues its structured liquidation plan. Pending dearness allowance arrears of government employees and pensioners are to be cleared within a fortnight, with restraint on unproductive expenditure until admissible dues are paid. The government states that it will pay constitutionally and legally valid dues while examining the judgment, precedents and possible legal remedies. It attributes the arrears to delayed pay commission implementation and frozen dearness allowance, and states that a structured liquidation plan has been prepared and partly implemented.
Money-laundering investigation examines alleged fraudulent industrial plot allotments, benami holdings and diversion of plots to residential use. A money-laundering investigation under the Prevention of Money Laundering Act examines alleged irregularities in industrial-plot allotments involving corporation officials, private persons, property dealers and alleged benamidars. The inquiry concerns alleged use of fictitious firms and false addresses to obtain plots, allotments to relatives and associates, and alleged diversion or change of land use from industrial to residential purposes. These activities are alleged to have generated private gains while causing loss to the public exchequer.
Rupee exchange-rate movement gains support from capital inflows, while oil prices, dollar strength and monetary policy shape sentiment. Rupee exchange-rate movement was supported by foreign capital inflows and improved global risk sentiment, while elevated crude-oil prices and a stronger US dollar constrained gains. Market attention shifted to monetary policy, overseas dollar-deposit incentives and easier foreign access to government bonds, which were reported to support capital inflows and India's external position. A cautious approach to the benchmark repo rate was expected amid assessment of the West Asia conflict.
Interim bilateral trade agreement negotiations continue as both sides work to finalise unresolved issues in the proposed arrangement. Interim bilateral trade agreement negotiations between India and the United States are continuing. Both sides have undertaken substantial work, while certain issues remain to be finalised before completion of the proposed interim trade arrangement. A United States Trade Representative delegation visited India to advance discussions. The text records the status of negotiations and identifies no concluded agreement or operative customs measure.
Fuel-price volatility mitigation will combine fiscal measures, consumer protection, energy security and fiscal sustainability during external energy shocks. Fuel-price volatility is to be mitigated through fiscal and administrative measures that protect consumers while maintaining fiscal sustainability. The approach includes monitoring revenue and expenditure, reprioritising spending, and using fiscal measures when economic conditions require. Reduced central excise duty on petrol and diesel moderated the impact of elevated international crude prices and partly offset under-recoveries of public-sector oil marketing companies. Longer-term measures include revenue mobilisation, import diversification, Strategic Petroleum Reserves, cleaner fuels and energy efficiency.
Tax policy certainty reforms propose easier fund management, data-centre access, electronics incentives and revised electronic-payment charging rules. The proposed Bill seeks to simplify conditions for foreign investment funds using fund managers in India without being treated as carrying on business in India, while retaining safeguards against misuse and round-tripping. It proposes removal of approval requirements for foreign cloud companies using Indian data centres and permits leased operation of Indian data centres. It also extends tax support for foreign companies participating in electronics contract manufacturing and component warehousing, preserves tax-free dividends for REIT and InvIT investors in specified circumstances, and removes the prohibition on Merchant Discount Rate charges for notified electronic payment modes.
Responsible precious-metals recycling supports recycled-gold products, organised buyback channels and a more self-reliant domestic supply chain. Responsible precious-metals recycling is promoted through a commemorative recycled-gold coin intended to support domestic recycling, responsible sourcing and a self-reliant supply chain. The product is described as having certified purity authentication, tamper-proof packaging, a unique identification number and an assayer-certified minted card. The initiative seeks to reduce dependence on imported gold and expand organised, transparent recycling infrastructure. An organised silver buyback programme is also described as supporting secure consumer sales and a circular economy for precious metals.
Broad-based growth strategy links tax reforms, trade resilience, industrial support and services development to medium-term economic expansion. The growth strategy combines agricultural productivity, manufacturing, MSME support, infrastructure, logistics, ease of doing business, streamlined income-tax and GST reforms, innovation, digitalisation, human-capital development, energy security, public capital expenditure, foreign direct investment liberalisation, export promotion, fiscal prudence and price stability. Trade resilience is to be strengthened through expanded trade agreements, while manufacturing, services, agriculture and strategic sectors receive targeted policy support. The material also reports secured-asset enforcement cases and recoveries by banks under the SARFAESI framework during FY25.
Co-operative bank governance and financial disclosure support digital transformation, risk management, priority-sector lending and sustainable member-focused growth. Co-operative bank governance and financial disclosure were addressed at the annual general meeting, where the member-notice agenda was transacted and audited financial statements were presented. The bank reported growth in business, deposits and advances, together with net profit, asset quality, provisioning coverage and capital adequacy indicators. Its operational priorities include digital transformation, risk management, selective network expansion, customer service and operational discipline. Future priorities include retail and priority-sector lending, MSMEs, affordable housing and institutional deposits.
Foreign-exchange market conditions weakened the rupee as oil prices, domestic equities and dollar strength shaped near-term currency expectations. The rupee weakened against the US dollar amid elevated crude oil prices, weaker domestic equities and a stronger dollar index, while foreign fund inflows moderated the decline. Attention shifted to the central bank's monetary policy meeting, with continuation of the existing benchmark policy rate anticipated. Earlier measures encouraging overseas dollar deposits and facilitating foreign participation in government bonds were reported to support capital inflows and India's external position.
Huge Untapped Potential for Investment and Trade Between India and South Africa: Anand Sharma – Addresses India Business Forum – Meets South African President
January 11, 2011
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Shri Anand Sharma, Union Minister of Commerce & Industry, while addressing the India Business Forum, in Johannesburg last evening, said that there are huge untapped potential exists in the area of investment and bilateral trade between India and South Africa. Interacting with the captains of industry from both sides, Shri Sharma said that for Indian businessmen, Africa is an untested but potential huge trade and investment market for the future. South Africa could provide the key to unlocking this market. While it is hardly possible to see any better partner for Africa than India. He further added that India has become an important destination for investment and we are inviting foreign capital to fulfill our development requirements, at the same time many of our companies are expanding across the world and have earned a name for themselves as global challengers. "There is also a need to move into other sectors. Besides the business areas mentioned above, South Africa also offers enormous opportunities for Indian firms, especially in sectors like construction and engineering, mining, renewable energy and space science", the Minister said.
Speaking on the occasion, Shri Sharma said that Indian investment in South Africa has been substantially rising, at the same time there is a growing trend of South African investments in India. "India's involvement with Africa is and has been focused on helping African countries develop their own potential for human resource development. This has been an evolving process and India has, over the years, extended cooperation not just in IT, but also in agriculture, SMEs, transportation, infrastructure, health and education", he added.
During his visit, Shri Sharma participated in the commemorative celebrations of 150 years of arrival of Indians in South Africa. In his meeting with the President of South Africa, Mr. Jacob Zuma, Shri Sharma congratulated President Zuma on South Africa joining BRIC. He also conveyed India's desire to work together with South Africa in BRIC even as both the countries continue to deepen their partnership in the IBSA framework.
As regards India-SACU PTA, Shri Sharma said that India is now hoping for early conclusion of India - SACU Preferential Trade Agreement and added that this should provide an enormous boost to ongoing levels of bilateral trade—especially in products such as pharmaceuticals, machinery, automobiles, where India enjoys a competitive advantage.
Inaugurating the first-ever MMTC Office in Johannesburg, Shri Sharma said that this will allow us to enhance our direct purchases of key commodities from South Africa including gold and other metals and minerals. The Minister mentioned that MMTC would like to use this office for exploring vast opportunities for sourcing ferrous and non-ferrous metals i.e. nickel, aluminum, copper, tin, zinc, silicon, magnesium, titanium and cobalt from South Africa. The office of MMTC in South Africa could look at business opportunities in the entire African continent and would facilitate greater cooperation. Sourcing of Rough Diamonds and cooperation in the field of Precious Stones could be focus areas for both the countries. MMTC is looking for import of coal and joint ventures for coal exploration with African companies with a committed buy-back arrangement.
India is South Africa's largest trading partner in South and South-East Asia and one of South Africa's top-ten trading partners globally. Total trade has more than doubled since 2004-05 to cross $7.5 billion. The bilateral trade, has grown from US $ 3.18 billion in 2004-05 to US $ 7.73 billion in 2009-10. In the year 2009-10, India's exports to South Africa were US $ 2,058 million and imports from South Africa were US $ 5,674 million. Bilateral trade during this period (April-Sep. 2010) was to the tune of US $ 5,393 mn, up from US $ 3,757 mn in the corresponding 6-month period of April-Sep. 2009. Exports from India to South Africa during the 6-month period of April, 2010 to September, 2010 were US $ 2,267 mn, registering a growth of 118 % over the corresponding 6-month period of April-Sep. 2009. Imports from South Africa to India during the 6-month period of April, 2010 to September, 2010 were US $ 3,125 mn, registering a growth of 15% over the corresponding 6-month period of April-Sep. 2009.
India's exports to South Africa comprises mineral fuels, automobiles, iron & steel, machinery and instruments, organic and inorganic chemicals, drugs and pharmaceuticals, cotton yarn and fabrics and rice and other cereals. India's imports from South Africa were gold, aluminium, phosphoric acid, coal, pulp and waste paper, precious stones including diamonds, etc.
Investment and trade potential between India and South Africa urged to be unlocked, with PTA and sectoral cooperation driving growth.
Huge untapped investment and trade potential exists between India and South Africa, with calls to diversify sectoral engagement into construction, mining, renewable energy and space science. The note urges early conclusion of an India-SACU Preferential Trade Agreement to boost trade in pharmaceuticals, machinery and automobiles, and highlights MMTC's new Johannesburg office to strengthen direct sourcing of metals, minerals, rough diamonds and coal, including joint exploration ventures and pan African business outreach.
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