Economy News Notes: 1st, 2nd and 3rd Nov, 2011

Exports grew 36.3 per cent on an annual basis at $24.82 billion in September, demonstrating impressive year-on-year expansion despite a slowdown in the U.S. and Europe.
trade deficit of $9.77 billion

The names of persons involved in stashing away black money in tax havens, even as the Income Tax Department has started sending notices to them based on information received from abroad
As and when the information [is received], investigation starts, prosecution takes place [and the] matter comes to court, then, as per the existing treaty terms, we can reveal the names in cases of prosecution by the Income Tax Department.

Oil marketing companies are mulling a Rs.1.50 per litre hike in the price of petrol, the fourth this year, thanks to a falling rupee that has increased the cost of imported crude oil.
State-owned oil marketing companies (OMCs) — Indian Oil, Bharat Petroleum and Hindustan Petroleum Corporation Limited (HPCL) — increased petrol price by Rs.3.14 a litre (including taxes) when the rupee was trading at around 48 against a U.S. dollar. However, in recent weeks, the rupee has further depreciated to 49 a dollar, putting exchange rate pressure on import of crude oil.
Since the government deregulated petrol price in June 2010, the OMCs “informally” seek clearance from the Centre before announcing a hike.

India was ‘seriously considering' to hike the 51 per cent foreign direct investment (FDI) cap in single brand retail that would allow global retail giants to set shop in the country.
Notably, several Italy-based global fashion labels are seeking hike in FDI so that they could invest more in India to tap the growing market.
At present, these global fashion brands need a domestic joint venture partner to set up units

Around 80 per cent of the population was excluded in the life insurance category and similarly 90 per cent of population was kept out of non-life insurance category
one segment of the population that needs to be targeted was those living Below Poverty Line. This segment was highly vulnerable to financial shocks and insurance is a must to support them in time of crises, particularly in the aftermath of natural calamities and financial burden due to health problems.
the Indian economy is on a growth trajectory and its spinoff benefits would reach the general insurance sector. The industry has been growing at a rapid pace and during the current year it was growing at a rate of 26 per cent. The size of the industry has been estimated to be around Rs.44, 153 crore during 2010-11
Talking about non-life insurance sector, Mr. Srinivasan said the penetration of the sector in the country remains near constant for the last nine years at around 0.7 per cent of the Gross Domestic Product.
In the general insurance, motor vehicle portfolio share was over 40 per cent in the last six months during the current fiscal and it was growing at a rate of 32 per cent.
It was followed by the health sector, which accounted for 25 per cent of the business and was growing at around 25 per cent.

The Reserve Bank of India on Wednesday allowed authorised money changers (AMCs), including banks, to open additional branches in metros without adhering to the old criteria of maintaining a ratio in the number of branches in metro and non-metro cities.
As per the old rules, applications from AMCs for additional offices in metropolitan cities were considered only if the applicant had one non-metropolitan office for every office in a metro.
The RBI, however, added that the new rules should not hinder the process of diversification and financial inclusion.
- Other than banks and financial institutions some other firms, hotels and organizations are also permitted to deal in foreign currency transactions in notes, coins and traveler’s cheques from the Reserve Bank. These organizations and firms are called as “Authorized Money Changers”.
- An authorized money changer may be a “full-fledged money changer” or a “restricted money changer”.
- The Money Changer who undertakes both purchase of foreign exchange and sale transactions with the public for private and business visits abroad is known as full-fledged money changer
- Urban co-operative banks, departments of posts and others are recognized as full-fledged moneychangers.
- A restricted money changer is authorized only to purchase foreign currency notes, coins and traveler’s cheques. The system of approval of restricted moneychangers by Reserve Bank has been discontinued.