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The empowered group of ministers (EGoM) on fuel prices has decided to decontrol the prices of petrol while price of diesel has been increased by Rs 2. The prices of cooking fuels kerosene and LPG have been increased by Rs 3 per litre and Rs 35 per 14.2 kg cylinder.

The government may deregulate price of diesel at a later stage but those of cooking fuels will continued to be subsidised.

As per the decision taken by the EGoM, the prices of petrol will from now on be determined by the market forces. This would mean a

Here is HSBC’s Forecast for India. Wholesale price inflation probably peaked in March and will more than halve to 4% by year end, in our view. Key drivers of the WPI rate, including international food, metal and energy commodity price inflation, are now turning down, while a better monsoon will help drive food price inflation lower.

Expect GDP growth to average 8.8% in 2010/11, just beating consensus projections, which continue to move up, of 8.3%. Activity
will be supported by an impressive bounce back in agricultural output, as well as the lagged effects of the fiscal and monetary

At the time when the western world gripped in financial crisis is trying to put an end to tax Havens, the Indian Government in its new Direct Tax Code has encouraged Foreign Investors to route money through Tax Havens and enjoy Tax FREE Returns.

This is a step backwards from earlier draft of the Direct Tax Code. FIIs investing from tax haven were exposed to taxation on capital gains under the Old DTC as the Old DTC was supposed to OVERRIDE the Double Tax Treaties. The Revised DTC retains the tax incentives on capital gains for FIIs from tax havens (like Mauritius, etc). This in effect encourages

An FSI increase of 0.33x in suburban Mumbai was dismissed by the High Court. The negative impact of such an FSI increase on TDR prices would now be reversed.

The two-judge divisional bench of the Bombay High Court ruled in favor of the public interest litigation (PIL) filed, dismissing the increase in the FSI in suburban Mumbai (from 1 to 1.33) passed by the government of Maharashtra in Apr ’08. The reasons stated included the right to amend development plans, procedure followed by the government, no change in the development plan of the

Expect inflation to remain high and sticky through the year as the pressure on core inflation intensifies, even as the winter crop hits the market and eases food prices. Inflationary pressures from non-tradeable items are rising rapidly.

An analysis of the city level data proves that inflationary pressures are widespread across different tiers. In fact inflationary pressures are higher in small cities than in the main metros, indicating a broad-based growth process, and making the case for continued policy action even stronger.

The Indian Rating Agencies – CRISIL, ICRA, Fitch, Care have been asked by the Stock Market Regulator – SEBI to disclose the Rating Methodology and the Fees it collected from the client to assign the rating. This is a major move in our view to achieve transparency in financial transaction and clean up the Financial markets, a mess created by Capitalists’ greed.

SEBI’s DGM Prasanta Mahapatra who was looking into the issue of achieving Transparency in Indian Corporate Rating system after the Collapse of American European Financial System. In his order he said,

6.1 Rating Procedure

Read moreSEBI to Rating agencies – Disclose Methodology + Fees Collected