The Mint Report for 11 February 2010

The Mint Report for 11 February 2010

New Delhi: The government on Thursday doubled the limit of foreign direct investment proposals from Rs600 crores to Rs1,200 crores. This means proposals with total foreign equity inflow of Rs1,200 crores and below will be considered by the finance minister for approval. Earlier, foreign investment of up to Rs600 crores was approved by the finance minister and anything more than that was sent to the Cabinet Committee of Economic Affairs (CCEA).

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And there was a spike in food inflation again - for the third consecutive week. Wholesale price-based food inflation rose to almost 18% for the week ended the 30 January compared to 17.56% in the previous week. Potato prices jumped to 40.57% from last year while pulses increased to 41.24%. Inflation for primary articles, which include food and non-food items increased to 15.75% during the week from 14.56% a week earlier. Last week, Prime Minister Manmohan Singh said the worst of food inflation was over and that the situation would ease soon.

Trade minister Anand Sharma on Thursday announced an increase in India’s exports and foreign direct investment. Exports rose 11.5% to $14.3 billion in January versus $12.9 billion a year ago. Foreign direct investment advanced an annual 13% to $1.5 billion in December.

Markets closed higher on Thursday helped by positive global cues. The Sensex closed up 230 points to close trade at 16,153 and the Nifty ended the day 70 points higher to end the day at 4,827.