INDIA TO BE PART OF CORE WORLD BANK TEAM
For decades a borrower, India will soon sit in the core management team of the International Development Association (IDA) of the World Bank. Axel Van Trotsenburg, vice-president, development finance at the Bank, Told “India will be one of the IDA deputies, the 14-member group of donor nations which run the key negotiations with member countries”. The institution would weigh costs to consider Indian markets for raising bonds — as the institution will for the first time tap international markets to raise money — to finance low-cost aid programmes. Set up in September 1960, IDA was at one time the biggest source of aid for India. For IDA, too, India happened to be the largest aid recipient among its 173 member-countries.
FOOD INFLATION FELL TO 6.3 PER CENT
Wholesale price inflation (WPI) edged down for the second consecutive month to 3.4 per cent in October, from 3.6 per cent in September. Food inflation continued to trend down, falling by 120 basis points (bps), while core inflation remained stagnant and fuel inflation rose further in October. Core inflation as measured by the CRISIL core inflation indicator (CCII) stood at 3.1 per cent versus 3.3 per cent in September. Food inflation (primary plus manufactured food) fell to 6.3 per cent, from 7.5 per cent in September because of a fall in primary articles inflation, especially in fruits, vegetables, and spices. Inflation in food products (at 10.5 per cent), though moderated marginally in October, remained above 10 per cent, result of rising inflation in dairy products and high inflation in sugar. Overall inflation in manufactured products inched up to 2.7 per cent in October on the back of rising basic metals, non-metallic mineral products, leather and rubber inflation. In the fuel and power category, inflation rose to 6.2 per cent in October, from 5.6 per cent in September. This was led by rise in prices of petrol, high speed diesel, kerosene, and furnace oil.
Amid reports of hardships caused by demonetisation in crop sowing and marriages, the government on Thursday eased restrictions on cash withdrawal by farmers and families with upcoming weddings, but more than halved the limit of exchange of notes at Rs 2,000. Economic Affairs Secretary Shaktikanta Das said now families preparing for a wedding can withdraw up to Rs 2.50 lakhs from bank account, citing PAN details and self declaration. However, from Friday, individuals can exchange old Rs 500 and Rs 1,000 notes up to Rs 2,000 only, as against Rs 4,500 earlier. Select bank branches across metro cities have already started applying indelible ink on the right hand index finger of people who are exchanging notes. Besides, farmers who have taken crop loan or have kisan credit card can withdraw Rs 25,000 per week. Also, those who have got payments through RTGS or cheque deposit in KYC compliant bank account can withdraw an additional Rs 25,000 a week. This takes the total cash withdrawal limit for farmers from KYC complaint bank accounts to Rs 50,000 per week.
BHARAT FORGE ACQUIRES US-BASED WALKER FORGE TENNESSEE FOR $14MN
World’s largest forging company Bharat Forge, Group Company from Kalyani Group announced the acquisition of US-based Walker Forge Tennessee for a value of $14 million. The acquisition highlights the need for the company to diversify its portfolio in the US. This proposed acquisition is focused establishing its manufacturing footprint in North America and on increasing product offering into the passenger Car and Commercial Vehicle segments as well into industrial sectors such as Construction & Mining and allied industries. This will also enable them to expand their presence in North America. The company in a press statement said that the acquisition gives the company a strong manufacturing presence in North America, “The acquisition of Walker Forge Tennessee creates a strategic manufacturing footprint in North America to leverage our existing customer relationships while simultaneously enabling the company to address new end market segments and broaden the product portfolio.”