The repo rate at which the RBI lends to the system has been retained at 7.25 percent, while the cash reserve ratio will continue to be 4 percent.

“The monetary policy stance has been informed by the evolving growth-inflation dynamics, the balance of risks as well as recent developments in the external sector,” RBI Governor D Subbarao said in the mid-quarter policy review.

He specifically cited the decision of the US Fed to trim the growth stimuli in a phased manner and articulated concern over risks coming “on account of uncertainty over policies of systemic central banks.”

The May 22 announcement has led to fund outflows from emerging markets, including India, and hence, depreciation in the rupee, which is already facing trouble over the high current account deficit, touching an alarming 6.7 percent in the December quarter.

To reduce the CAD to a sustainable level; the near term challenge is to finance it through stable flows,” the statement said.

Rupee has declined by 5.8 percent since January 1 and touched a record low of 58.96 to a dollar last week. It was trading at 57.84 during the morning trade.

In its guidance, the RBI, particularly, flagged risks on inflation saying, “it is only a durable receding of inflation that will open up the space for monetary policy to continue to address risks to growth.”

The status quo maintained by RBI has dashed hopes of interest rates cut which was widely expected by the market.

The Central Bank had reduced key policy rate (repo rate) by 0.75 percent during the last three monetary policy announcements.

Following policy announcement, 30-share BSE Sensex fell by 83 points to 19,095.

Though the headline inflation has come down, the RBI also sounded concerned over the persistently high food inflation, which has been hovering in the region close to ten per cent.

“Inflation has moderated as projected. However, upside pressures on the way forward from the pass-through of rupee depreciation, recent increases in administered prices and persisting imbalances, especially relating to food, pose risks of second-round effects,” it said.

“Future monetary policy stance will be determined by how growth and inflation trajectories and the balance of payments situation will evolve in the months ahead,” it added.

RBI Governor noted that since the May 3 Annual Policy statement, global economic activity has slowed and risks remain elevated, most recently on account of uncertainty over policies of globally important central banks.

As recent experience has shown, shifts in global market sentiment can trigger sudden stop and reversal of capital from a broad swath of emerging economies, swiftly amplifying risks to the outlook. India is not an exception, it said.

On the domestic front, it said, macroeconomic conditions remain weak, hamstrung by infrastructure bottlenecks, supply constraints, lacklustre domestic demand and subdued investment sentiment.

RBI has given many reasons forg keeping interest rate unchanged on concern over rupee, inflation,which it is hoped all banks in the country shall appreciate.

Mr. Chidambaram advised that there was no need for panic over declining value of rupee and the domestic currency would regain the losses suffered in last few days and stabilize.

“I am looking forward to more reforms… I expect a number of decision in the next few days and weeks… In June, you can expect number of decisions taken and implemented that will accelerate reforms and spur investments in critical sectors,” Chidambaram said.

He said: ” the decision shall be taken on coal and gas pricing, coal allocation to power plants, FDI limit in various sectors, including defence, and skill development. He said on the Sebi board that it will take a decision on K M Chandrasekhar committee report on rationalization of foreign investment norms on June 25.

The Minister was addressing media in the backdrop of steep decline in rupee which on Tuesday touched life-time low of 58.96 intra-day against the US dollar. Rupee, which touched 58.22 to a dollar in early trade, lost ground during the day, and is currently trading at 58.48 on Thursday.

“There is no reason for panic… Countries with large current account deficit have taken a hit on currencies. Rupee will find its level. We are concerned about volatility. Rupee will regain losses suffered in the last few days,” he said.

Expressing satisfaction over declining gold imports, Chidambaram appealed to the people to resist the temptation to buy gold saying it will dramatically change the CAD position.

Chidambaram said Prime Minister Manmohan Singh has called a meeting of the Finance Minister and other key advisers to discuss steps to revive investment and stalled projects.

The government must keep in mind the long-term interest while taking important decision relating to pricing of natural resources.

It is a serious affair because the PMO is reported to have confidentiality and refused to answer a Right to Information application related to the controversial land deals of businessman Robert Vadra.

Mr Vadra is the son-in-law of Congress president Sonia Gandhi, often described as the most powerful person in the country.

As per flashback given in the media, last year, Nutan Thakur had filed a Public Interest Litigation or PIL in Uttar Pradesh asking that Dr Manmohan Singh’s office order an investigation into whether Mr Vadra was given sweetheart land deals by real estate major DLF in the state of Haryana, where the Congress is in power.

Ms Thakur’s appeal was rejected by an Allahabad court after the Prime Minister’s Office (PMO) said it could not order a probe in business dealings between two private entities. The PMO’s response was listed in an affidavit to court.

The court observed that her petition was based solely on media reports and was not backed by direct evidence.

Ms Thakur then filed a Right to Information application, asking for details of documents and notings that were used to prepare the PMO’s affidavit. She also asked for details of what action did the PMO take – whether it involved other ministries, for example – after she filed her petition in court seeking an investigation against Mr Vadra.

In its response to her, the PMO has said that while the Right to Information Act aims at creating transparency to contain corruption and increase accountability, it also seeks to “ensure that revelation of information, in actual practice, does not harm or adversely affect other important public interests which include efficient functioning of the governments, optimum use of limited fiscal resources, and preservation of confidentiality of sensitive information.”

Time looks to be running against Mr. Robert Vadra, the answer of the PMO on the RTI shows that certain issues are important for public interest, which can’t be withheld for a long time.

The police alleges Kundra had bet on his own team. His close friend Umesh Goenka is said to have supplied proper data for placing the bets.

Raj Kundra has not admitted what the police alleges.He said, in that case, he would have placed bets on his own team and made money out of it.

The Delhi police is probing in this angle of betting by the owner. If the police finds some evidence, Kundra could be arrested.

Raj Kundra’s passport has been seized by Delhi Police which questioned him for about 10 hours in connection with the IPL spot-fixing scandal and allegations that he was into betting.

Police have asked Kundra not to leave the country.
Police sources claimed that Kundra was into betting but not into fixing.

Despite continuous questioning for over 12 hours Mr. Kundra has not confessed any guilt as alleged by the police.

She was allegedly raped last night by two persons who had given her lift in a tipper on her way back to Manali, the police said. In her complaint, she alleged that she was raped by two persons and the accused also took away her iPhone away along with the currency that she had carried with her.

The accused youth, who committed this heinous crime were in the age group of 18 to 25, who fled away after committing the crime, as per ASP R Jamwal .

As per police information given by P, Kullu, Vinod Dhawan, police has been successful in getting the proper clue about the vehicle which was used during the crime.

The criminals shall soon be arrested and taken to task, as per police.

Though the Memorandum of Understanding for generic drugs has been cancelled, both the companies will explore partnerships in other related areas, said a statement issued by DRL.

DRL and Fujifilm signed an MoU on July 28, 2011 and the duo had conducted detailed studies on the establishment of a joint venture for developing and manufacturing generic drugs in Japan.

However, as Fujifilm realigns its long-term growth strategy for the pharmaceutical business, both companies have come to a mutual agreement to terminate the MoU, the statement added.

GV Prasad, Chairman and CEO, DRL said, “Unfortunately, we will not be able to partner with Fujifilm specifically for generic formulations business in Japan. However, I want to reinforce our commitment towards a planned entry into Japan to bring affordable and innovative drugs to more patients worldwide.”

The two companies will continue to explore partnership/alliance opportunities in other pharmaceutical businesses such as API (active pharmaceutical ingredient) development and manufacturing, contract research and development and marketing of super-generics, the release added.

Takatoshi Ishikawa, Director Corporate Vice President and General Manager of Pharmaceutical Products Division of Fujifilm said, in long-term, the Japanese company will be focusing more on priority fields such as new drugs in cancer field.

He said the company will also focus on more value-added super generic, and bio-related business by using core technologies, analysis technologies, original nanotechnology, and high reliability and high quality manufacturing technologies.

Ishikawa said they shall continue future collaboration with Dr. Reddy’s in other fields.

Though Mr. IS Bindra claimed that he did but no notice of such a demand was taken in the meeting. He is reported to have however questioned the validity of the meeting being called in one day. Mr. Rajiv Shukla clarified that the same oouldc be ratified by the next WC meeting.

A senior office-bearer of the BCCI categorically stated, “None of the members of the BCCI demanded resignation from Mr Srinivasan and he has been assured that he can resume functioning if he is cleared by the inquiry commission.”

Some of the chronological events are given as under how those happened in the Chennai meeting:

President N Srinivasan gave a resume of issues of domestic and others which were pending with ICC. He specifically underlined two incidents involving three players allegedly involved in spot-fixing and the Gurunath Meiyappan betting issue.

Srinivasan then intimated that that Sanjay Jagdale and Ajay Shirke are special invitees in the WC committee meeting.

Mr. N Srinivasan then mentioned about their resignations and said the same are not accepted.

Mr. VP Jaitley thereafter expressed his concern about the credibility of the Board being affected due to three players and Gurunath and suggested to Mr. Srinivasan, better keep aloof temporarily to enable the inquiry to be conducted in the free and fair atmosphere.

Mr. N. Srinivasan agreed to Jaitley’s proposal to step aside during the pendency of the probe.

Jaitley informs the WC committee that he had told Srinivasan to step aside in Kolkata last Sunday for which Mr. Srinivasan had agreed in principle.

WC committee requested Jagdale and Shirke to reconsider their decision and given them 24 hours to review their own resignations

Others who placed views included Jagmohan Dalmiya (CAB), Ravi Savant (MCA), Anil Kumble (KSCA), Ganga Raju (Andhra CA) , Niranjan Shah (VP), Sudhir Dabir (VP).

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PM’s words to the effect:

“There have been discussions with Japan and this visit marked a formal move in that direction. I am confident we shall soon be able to put our signatures to a civil nuclear energy agreement with Japan as well.

A joint statement was issued at the end of exhaustive talks between Singh and his Japanese counterpart Shinzo Abe this week, had said the two leaders reiterated the importance of civil nuclear cooperation between both the countries.

At the same time, the emphasis was made on nuclear safety by Japan, perhaps due to Fukushima nuclear disaster in March, 2011, which priority India fully appreciates and recognizes, which is important for both governments to pre-study.

The Prime Minister said, his words to the effect:

“In this context, Japan directed their officials to accelerate the negotiations of an Agreement for Cooperation in the Peaceful Uses of Nuclear Energy towards an early conclusion.

Negotiations for the bilateral civil nuclear cooperation agreement have, however, not made much headway, might be due to fear of Fukushima nuclear disaster in March, 2011.

Touching the East Policy, Prime Minister said, it is not a new policy towards East, it has a long route when Narsimha Rao was PM and he was Finance Minister:

“I am hopeful that Look East policy of India is paying rich dividends and the results are going to improve as we move forward”.

During Prime Minister’s visit, India and Japan signed the Exchange of Notes for yen loan totalling USD 424 billion.

This includes USD 71 billion for the Mumbai Metro Line-III project as well as the yen loan of the fiscal year 2012 for USD 353.106 billion for eight projects.

Prime Minister’s visit has been very successful for developing close relations with the East and South East Countries.

This announcement may go against the UPA Govt. and the Opposition may pick up this point during the general elections.

As per release by Agence France-Presse,in the fourth quarter to the end of March, gross domestic product grew by 4.8% year-on-year, slightly higher than the previous quarter when it expanded by 4.5%, according to the data from the statistics ministry.

Despite government efforts to take up the economy after a burst of pro-market reforms at the end of last year, most independent analysts see continuing slack demand and few quick fixes.

“Business activity is still sluggish,” Rupa Rege Nitsure, chief economist with state-run Bank of Baroda told AFP ahead of the release of the data.

The economy had grown by 6.2 percent in 2011/12.

Global ratings agency Standard and Poor’s warned earlier this month that India faces at least “a one-in-three” chance of losing its prized sovereign grade rating amid new threats to economic growth and reforms.

India’s BBB-minus investment rating is already the lowest among its BRICS peers Brazil, Russia, China and South Africa and cutting it to “junk status” would raise the country’s hefty borrowing costs.

The Organization for Economic Cooperation and Development (OECD) this week lowered its projection of India’s GDP to 5.3% in 2013, from 5.9% earlier.

“The government needs to go all-out to turn around investment sentiment,” said Yes Bank chief economist Shubhada Rao.

The UPA government had to face many cases of corrupt scandals during its 2nd term and also suffered normal working of Parliament.

“The President looks forward to discussing global and regional security concerns with the Secretary General to include ending the war in Afghanistan while building an enduring partnership with the Afghan government, sustaining and improving allied defence capabilities and transatlantic burden sharing and further enhancing NATO’s network of capable partners.”

President Obama shall meet Rasmussen at the White House on May 31. “As the most successful alliance in history, NATO lies at the heart of the transatlantic relationship, serving as the bedrock for building shared approaches to the security challenges we share with our 27 NATO allies,” the White House said.

Meeting between the two leaders comes ahead of NATO Defence Ministers meet in Brussels next month. “The Secretary General’s visit underscores the vital importance the United States places on the North Atlantic Alliance and our relationship with Europe and commitment to tackle challenges from Afghanistan to the Balkans to the Indian Ocean together,” the White House said.

President Obama’s meeting with Rasmussen is counted to be highly significant in terms of US relationship on NAA, Europe and commitments from Afghanistan to Balkans and Indian Ocean.