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Journalism of Courage
CALCUTTA, APR 17: Duff & Phelps Credit Rating (DCR) India today released the monthly Economy Update, a research report highlighting and analysing the performance of the key industry segments, rationalisation of domestic oil prices, money and banking and Exim policy.
The Indian industry is definitely on its way to recovery. Despite a fall in the crude oil production, six core sectors have recorded an aggregate growth of 8.3 per cent during April-February 1999-00 as compared to a meagre 2.8 per cent growth for the same period last year. Both the cement and steel industries have shown strong growth trends. The automobile sector has also witnessed a recovery in financial year 2000.
Surging global oil prices has led to a ballooning of India’s oil pooldeficit. The deficit is likely to touch Rs 63 billion as on March 2000 from Rs 34 billion in March 1999. This has prompted the Petroleum Ministry to raise the prices of Kerosene, diesel and ATF. On the positive side, the recent OPEC move to increase the production quota of the allied countries has seen some softening of global crude prices. However, with Iran, the cartel’s second largest producer, opting out of the agreement, cracks within OPEC became visible. A divided OPEC might not be able to maintain as strict a control on prices in the long run, feels DCR India.
The visit of the US President Bill Clinton has proved to be a significant event in the context of Indo-US relationship, feels DCR India. The driving force has been the economic interest of both the countries. During the visit, deals worth US $2 billion were signed. However, some contentious issues like the timetable for removal of US restrictions on quantities of textiles and garments exported by India, US curb on dual-purpose technology etc. have not been dealt with.
