Economy Update – Inflation

Moderation in Wholesale Price Index (WPI) Inflation Provides Some Cheer

– Wholesale price inflation moderated further to 4.7 per cent in May 2013 as compared to 4.9 per cent in the month before. The moderation was driven mainly by a softening in manufacturing and fuel inflation. Primary articles inflation, meanwhile, accelerated as food prices remained high. 

UK Trade body in Midlands offers permanent exhibition space to CII for SME promotion and linkages in the Midlands, UK

In a bid to promote SME exchanges between India and UK, the Leicestershire Asian Business Association (LABA) announced permanent space for CII at its trade center in midlands, for showcasing products and technology by the CII members companies, interested in finding business partners in the Midlands.

The Announcement comes soon after the Confederation of Indian Industry’s annual CEOs delegation to UK, led by Mr S Gopalakrishna, President CII and Executive Vice Chairman Infosys, visited UK on a three day bilateral trade and investment promotion agenda.

Growth of SME’s is key to the economic development of both India and UK and discussions to support SMEs on both sides was key to all discussions held during the visit.

In the last three years, CII has taken a number of SME delegations to the UK with each one of them travelling to midlands the house of manufacturing industries in the UK, with the objectives of finding business partners and technology and R&D in advanced manufacturing.

The announcement made by Mr Uday Dholakia, Chairman LABA is a step in right direction and comes at a time when governments in both countries are also working closely to take business partnerships and economic partnerships between India and UK to the next level.

Uday Dholakia is also the President of recently launched National Asian Business Association, an umbrella organization for all Asian Business networks in the UK, supported by the UK government.

The Confederation of Indian Industry has welcomed LABA’s offer saying it reiterates strong partnerships that CII and its member companies have with the midlands in UK.

Leaders Must Not Lose Sight of Family Traditions

Dr Annelie Karlsson, Executive Director, FBN Sweden , shares her views on the emerging trends in Indian family business.

You have been visiting India for past many years. Have you seen any visible change in the approach of Indian family business?
Indian family business owners are becoming ambassadors and mentors. They are getting less involved in day-to-day operations and management of business, a trend very much seen in the West. However, I would urge the Indian family business owners to develop their own mentorship and management styles that resonate with the Indian culture and traditions. 

RBI decides to hold policy rates on status quo

The decision of the RBI to hold policy rates on status quo is disappointing. 

At a time when both growth and inflation dynamics call for an accommodative monetary policy, the RBI has taken a cautious approach of attending to the prospect of a possible resurgence in inflation over reviving growth in the economy. 

The quarterly GDP figures point towards a poor health of the economy even while industrial slowdown has not bottomed out and sluggish private and government capital expenditure is hurting investment in industry and economy. In such a situation, the CII is looking at the RBI for interventions which would improve the cost and availability of credit to industry.