India's 8% industrial growth for August predicted

The Institute of Economic Growth (IEG) has predicted industrial growth of 7.9.7.5 and 8 percent in June, July and August, respectively.

In its July monitor, the IEG has received growth in the Index of Industrial Production (IIP) in April from 12.2 percent to 5.7 percent. The IIP for May was also revised downward to 5.5 percent. "This trend in IIP is due to the recent change in the deflator adopted in the calculation." This follows changes made in the wholesale price index.

Though manufacturing sector performed well in April and May. the capital goods and transport sectors disappointed, says the IEG monthly monitor. However, this may be a "temporary phenomenon."

The recent tight monetary policy of the RBI would reduce the liquidity and increase the interest rate, making the borrowing costlier for industry says the IEG monitor. "This may discouraged the investment and have a negative impact on the production in the future".

Based on the new WPI date up to June 2000, the IEG has forecast the inflation rate for July, August and September to be 6.2.6.01 and 6.32. respectively. "The volative world petroleum prices and the rising trend in international commodity prices are expected to put fur there upward pressure on the price."

As per the IEG's calculations, the consumer prices index is expected to grow by 6.08, 7.35 and 7.63 percent, respectively, in June, July and August.

India's Trade deficit rise to $3bn in April-June

The country exports displayed an impressive performance by notching up a 27.55 cent growth in June this year over the same month last year. The growth was fuelled by all major sectors, barring plantations. The cumulative growth during April-June this year also registered a growth of 27.65 percent over the same period last year. However, trade deficity during the same period shot up to nearly $three billion, largely due to the 27.25 percent growth in imports.

The exports achieved a high growth rate for the third month of the current fiscal in succession, through it was lower than the 30.04 percent increase posted in April and the 30.23 percent recorded in May over the same months last year. The growth recorded in June 1999 over June 1998 was only 11.14 percent.

The exports in June 2000 were valued at $ 3325.71 million against $2607.36 million in June 1999, according to provisional foreign trade data released by the commerce ministry on Tuesday.

The data shows the exports during April June 2000 were estimated at $ 10194.34 million against $7986.28 million during April-June 1999. The imports during June 2000 at 4124.05 million were 13.27 percent higher than the $3640,78 million in June last year.

Pakistan earns $ 250m exporting carpet

Hand-woven Pakistan carpets have earned 250 million dollars in vital export sales in the past 10 months with a marked upsurge in demand, a report said recently.

Officials said export sales soared 31 percent amid booming demand in the main markets of the United States, Japan, Germany and England, the state run Associated Press of Pakistan reported. They attributed the product's popularity to innovative new designs and the use of vegetable based colours.

A four by six metre (13x20 foot) carpet can be woven in three to for months and fetches up to 400 rupees (eight dollars) per square foot.

Cash-strapped Pakistan has launched a tax collection and privatisation drive in a bid to boost revenues and slash its fiscal deficit from about six percent of gross domestic product.

Pakistani economy grew at 4.9%

Pakistan's economy grew at 4.9 percent instead of 4.5 percent in the year to June 30 and target to achieve ambitious export growth targets, Finance Minister Shaukat Aziz said recently.

He said gross domestic product (GDP) growth was stronger than expected thanks to bumper crops such as wheat and cotton, the ministries of the Pakistani economy.

"The outstanding performance of the agriculture sector has pushed GDP finally to 4.9 percent," he said while addressing a South Asian Federation of Exchanges conference.

"Exports rose by 11 percent to 8.6 billion dollars and all economic indicators are encouraging, which will help to achieve our 10 billion dollar export target for the year ending June 30, 2001."

Pakistan's GDP dropped to 3.1 percent last year when the military ousted the Sharif government for alleged corruption and bad economic management.

The conference of nine regional stock exchanges was held to discuss cross-border listing of stock and to enhance economic corporation.

Sri Lankan tea launched

MJF Teas Pvt. Ltd. Sri Lanka and Maruti Trading Pvt. Ltd. Nepal jointly launched Dilmah Tea in the Nepalese market amid a function in Kathmandu recently.

The Sri Lankan tea is currently distributed in 86 countries arond the globe. Launching the brand. Malik Fernando. Director of MJF Teas Private Ltd. expressed his hope that consumers of the Himalayan Kingdom will find the tea with distinctively different taste and flavour.

"Our vision is to offer consumers around the world with the finest from Ceylon," said Malik.

According to a press release issued on the occasion, the tea enjoys 12 percent market share in Sri Lanka, 16 percent in New Zealand, 5 percent in Russia, 12 percent in Ukraine, 15 percent in Baltic States and has strong presence in Poland, Central Asian Republics, Moldavia, Armenia and other CIS countries.

Bangladeshi taka devaluation to trigger inflation

International Monetary Fund (IMF) representative to Bangladesh warned in Dhaka that the recent devaluation of taka may trigger higher inflation unless more prudent fiscal, monetary and trade policies are taken to boost export. The Daily Star reported in Dhaka recently.

"The outcome of the recent devaluation may only lead to higher inflation without lasting benefits for competitiveness and external performance, unless the action is quickly complemented by prudent fiscal and monetary policies," said Ronald P. Hicks, IMF's Resident Representative in Dhaka recently.