India’s GDP growth hits decade-low of 5% in 2012-13
New Delhi, March 31, 2013: India’s economy grew 5% in the year ended March, the
slowest pace in a decade, in line with the projection of the statistics
office. Growth in the fourth quarter slowed to 4.8% from 5.1% in the year ago.
During the year, agriculture grew at 1.9% compared with 3.6% a year ago,
manufacturing at 1% against 2.7%, the trade, communication sector at 6.4% compared with 7%, while
community services measuring government expenditure picked up to 6.6% from 6% a year ago, according to data
released by the Central Statitstics Office on Friday.
The per capita national income in real terms during 2012-13 is estimated
to have risen to Rs.39,168 from Rs.38,037 in 2011-12. The growth rate in
per capita income is estimated at 3% in 2012-13 as against 4.7% in 2011-12.
While private consumption expenditure as a percentage of GDP marginally
picked up to 59.6% in 2012-13 from 59.2% a year ago, gross fixed capital
formation, a proxy for investment demand, fell marginally to 33.2% from
33.7%. India’s economy is poised for a gradual recovery in 2013, driven by
large investment projects and foreign direct investment, after slumping
to its slowest pace of growth in a decade in the previous year, the Organisation for Economic Cooperation and Development (OECD) said in its
economic outlook on Wednesday.
“Among major emerging market economies, a moderate cyclical upturn is
getting under way in China, while a more hesitant pick-up in growth is
seen to take place in India,” the Paris- based organization said. Source: Agencies
Petrol price cut by Rs2 per litre, excluding local taxes
New Delhi, March 16, 2013 (PTI): The government on Friday announced that the petrol prices have been cut
by Rs2 per litre, excluding local taxes.
*Following are the revised prices of petrol in four metros after oil
firms cut rates, with effect from midnight 15th March 2013t.
State Current Price Revised Price
(All rates in Rs/litre)
The petrol price was hiked by Rs1.50 a litre on February 16 and by a further Rs1.40 per litre on March 2. It currently sells at Rs70.74 a
litre in Delhi. Since the last revision, international petrol prices have come down from
$131 to $120 per barrel.
Petrol prices hiked by Rs. 1.50 a litre, diesel by 45 paise
New Delhi, February 16, 2013: Prices of petrol and diesel have been hiked effective
midnight. While diesel prices have been increased by 45 paise per
litre, the price of petrol has been increased by Rs. 1.50 per litre. This hike does not take into account local sales tax or value added tax
(VAT), so the effective hike for consumers will actual work out to more
than the quantum announced. Petrol prices in Delhi will go up by almost
Rs. 1.80 per litre after taking into account a 19 per cent VAT. Diesel rates will go up by 51 paise.
The new price of petrol in Delhi will be Rs. 69.05 per litre, while a
litre of diesel will cost Rs. 48.16 in the capital. Before the hike, petrol cost Rs. 67.26 a litre in Delhi, Rs. 74.72 in
Kolkata, Rs. 74 in Mumbai and Rs. 70.26 in Chennai, according to the Indian Oil Corporation, while diesel cost Rs. 47.65 a litre in Delhi,
Rs. 51.51 in Kolkata, Rs. 53.71 in Mumbai and Rs. 50.68 in Chennai.
While the increase in the price of diesel is in line with the Oil
Minister Veerappa Moily's mandate to increase the price by 40-50 paise
per litre every month until the losses from selling the nation's most used fuel at subsidized rates have been completely wiped out, petrol
prices were increased to keep pace with the stubbornly high international crude prices which has risen to almost $110 per barrel.
The price hike is the 20th for petrol since the fuel was deregulated.
Under deregulation, oil firms are free to decide the quantum and the frequency of a price hike. Since petrol prices were decontrolled in June
2010, they have been revised 27 times (increased 19 times and decreased eight times).
The last revision in petrol and diesel prices happened on January 17
when the price of petrol was reduced by about 29 paisa per litre and that of diesel was hiked by about 50 paisa per litre. The Union Cabinet
earlier permitted the three public sector oil marketing firms -
IndianOil, Hindustan Petroleum and Bharat Petroleum - to revise diesel prices by a small quantum every month.
The oil firms lose about Rs. 450 crore every day from haviing to sell
diesel, cooking gas (LPG) and kerosene at subsidized rates. For the full
year, their total losses are estimated to be more than Rs. 1,50,000
crore. However, these oil firms get compensated for their losses from the Finance Ministry and their sister upstream PSUs such as Oil and
Natural Gas Corporation, GAIL and Oil India. In an effort to ease the burden of having to sell fuels at subsidized
rates, the Finance Ministry earlier this week sent letters of comfort to
IndianOil, BPCL and HPCL, detailing a payout of Rs.25,000 crore in compensation.
Of the total amount, IndianOil will get Rs. 13,474.56 crore, BPCL Rs.5,987.25 crore and HPCL Rs. 5,538.19 crore. The Finance Ministry
has already given Rs. 30,000 crore in subsidy to the companies in the first two quarters.
The actual disbursement, based on the comfort letter of the ministry,
will be made after Parliament has approved the supplementary demands for
grants in the forthcoming Budget session. India is largely dependent on imports for its fuel needs. It imports 80
per cent of the crude it refines, about 3.7 million barrels per day.
In order to minimize its dependency on imports by 2030, the Oil Ministry
has proposed to set up a committee under Vijay Kelkar, former advisor to
the Finance Ministry, which will submit a proposal in two months. Mr Kelkar also heads a committee on fiscal consolidation that had suggested
an increase in fuel prices and the deregulation of diesel. Source: NDTV Profit