Indian economy to post lower growth rate

India’s economy will post lower than expected growth rate in the fiscal year to March 2001, an independent private think tank said in New Delhi recently.

"The real GDP (gross domestic product) growth in 2000-2001 is expected to decline to 5.8 percent from our earlier projection of 7.0 percent and the 6.4 percent growth achieved in 1999-2000." The Centre for Monitoring Indian Economy (CMIE) said.

CMIE attributed the lower growth to a slowdown in the services sector and the adverse impact of the poor monsoon on agriculture and industry.

CII TIES UP WITH ABB TO SET UP TECHNOLOGY CENTRE

The Confederation of India Industry (CII) in association with Asea Brown Boveri is setting up a centre of technological excellence in Bangalore at an initial investment of Rs 2.5 crore. CII has already acquired 4.5 acres of land (in Herohally near Bangalore). The first phase of the project is expected to be ready within a year, entirely sponsored by ABB.

According to CII deputy director general Mr N Srinivasan, the institute would focus on the entire South Asian region. The institute would have a permanent small-core faculty besides an administration team with an accent on networking and partnerships.

The centre would also have faculties including leading CEOs, academicians, non-governmental organisation staff and known personalities. The institute would house a digital liberary and video conferencing facility.

Mr Srinivasan said ABB would sponsor the first phase of construction pumping in Rs. 2.5 crore. The second phase would be completed at an investment of Rs 2 crore, he said.

According to Mr Srinivasan, the institute would offer a wide range of courses including crash/short courses, diploma programmes and long- time courses.

CII sets-up quality institute in Bangalore

The Confederation of Indian Industry (CII) is setting up its first Institute of Quality Centre of Excellence in Bangalore.

While this represents the need to address quality issues nationally in the wider perspective and not just in manufacturing industry, the TQM division of CII is also shifting its quality summit and headquarters to India’s Silicon Valley. This shift out of the capital is a move towards decentralisation.

Bangladesh's economy to grow by 5.5%

Bangladesh achieved 5.5 percent gross domestic product (GDP) growth during the fiscal year to June 2000, up from 4.9 percent the previous year, the central bank said.

"Increased agricultural production and exports had mainly contributed to the rise in the country’s economic growth," Bangladesh Bank governor Mohammed Farashuddin told reporters while releasing the annual report.

He said growth in agricultural production rose 5.5 percent during the year from 3.3 percent the previous year.

Pakistan, China sign agreement

Pakistan and China signed an agreement in Islamabad recently to implement 40 projects in Pakistan in areas ranging from biotechnology, agriculture, and fisheries to water resources.

An official statement said the agreement was finalised during the meeting of a joint committee set up by the two countries to promote cooperation in science and technology.

In the past China has helped Pakistan set up several industrial units, including heavy mechanical and electrical factories.

Pakistan’s growth rate down

Pakistan’s central bank recently warned economic growth could fall below the government’s target of 5.0 percent in the year to July, with higher interest and import bills widening the fiscal deficit.

In its annual report, the State Bank of Pakistan (SBP) said the government’s targeted gross domestic product (GDP) growth of 5.0 percent may already be out of reach just one quarter into the 2000-2001 year.

"Preliminary projections for (the financial year) indicate that GDP growth will be around 4.5 percent the central bank said, while commending the government for higher the expected growth of 4.8 percent in the previous year.

It said growth would be affected by shortages of water, low credit supply to the private sector, a higher-than expected oil import bill and the rupee’s recent depreciation.

The government’s budgeted fiscal deficit of 4.6 percent of gross domestic product in 2000-2001 was also ambitious due to mounting debt servicing and import bills, it said.

Sri Lanka in tea exports set for record high

Sri Lanka is set to maintain its status as the world’s largest tea exporter in the year 2000, with production poised to touch an all time high of 320 million kg, much of which may be directed to big potential buyers like India and China.

With the increase in production, exports too are expected to hir the 300 million kg mark for the first time, with domestic consumption usually not exceeding 25 million kg. In 1999, production had reached a new high of 283 million kg of which 263 million kg was exported.

Russia will buy another 20 million kg of tea. In 1999, Russia was the second biggest buyer with a share of 38 million kg, after United Arab Emirates (UAE) topped the list with 41 million kg.

Sri Lanka has identified China and India as two potential big buyers. While china is yet to make large purchases, India has granted duty concessions for 15 million kg of Sri Lankan tea under the Indo Sri Lanka Free Trade Agreement that came into effect this year.