Economy News Notes:

Even as a cautious Reserve Bank of India kept the key rates unchanged, it is becoming increasingly clear that the economy has indeed hit the speed-breaker.
The ugly row that erupted in the wake of the Cabinet decision to allow up to 51 per cent FDI (foreign direct investment) in multi-brand retail saw Parliament go dysfunctional. In the wake of fierce opposition, the government had to backtrack and put the issue on backburner.
The entire episode, however, had put a big question mark over the UPA Government's ability to push through the pending reform initiatives. This has already sent out negative signals to the global investing community.
Early this month, the government had to trim its growth forecast to 7.5 per cent for the fiscal. The Economic Survey, presented in February this year, had forecast a 9 per cent GDP growth.
It was only after the rupee breached the 53-mark that the RBI stepped in to announce strong measures to curb speculations in forward contracts.
As 2011 is slowing moving into the pages of history, the country appears to be headed for uncertain phase in the coming year.

The Union Government is looking at giving more financial powers to Maharatna public sector undertakings (PSUs) by allowing them make investments up to Rs.5,000 crore without taking approval from the Cabinet or their respective administrative ministries.
At present, these PSUs need to take clearance from the government before making any investment decision.