RBI cuts bank rate to 9%, allows differential rates on deposits
The Reserve Bank of India has slashed the bank rate to 9% and the fixed rate repo to 6% in its monetary and credit policy for the first half of 1998-99, announced on Wednesday, sending a clear signal that it wants banks to lower their lending rates. It also pared the pre-shipment export credit up to 180 days by one percentage point to 11%.
Govt plans to shift 300 more items to special import licence list
The government proposes to shift 300 more items from the restricted to the special import licence (SIL) list in the 1997-2002 export-import policy under the first phase of the plan for lifting the quantitative restrictions on imports. The transfer is in keeping with India's commitment to the World Trade Organisation (WTO) and represents the first year of the plan spanning three years from 1998-99.
Finance ministry sees industrial recovery
The Union finance ministry views the credit policy ushering an industrial recovery in the current fiscal. Shankar Acharya, chief economic adviser in the ministry of finance, said credit availability will improve further as a result of the measures announced. Lower interest rates should get industry out of the recessive phase, he added.
Investment limit for SSIs to be cut
Prime minister Atal Behari Vajpayee on Wednesday announced that the investment limit for small industry will be slashed to Rs 1 crore from Rs 3 crore and the process of dereservation of items stalled. Vajpayee added tha payments within a specified time frame from big companies to small units will be made mandatory.
Swamy snaps ties with BJP
Janata Party chief Subramanian Swamy has announced his break with the ruling BJP-led coalition and decided to work for a secular and patriotic front against BJP. He, however, said that he would not try to topple the Vajpayee government without "clearance" from AIADMK chief J Jayalalitha.
Infrastructure status for steel ruled out
Union minister of steel and mines Naveen Patnaik has ruled out grant of infrastructure status to steel industry. Stating this at the CII national conference and annual session, Patnaik pointed out that there would be no long-term gain in such a step.
