RISING INTEREST RATES

July 25 - July 31, 2005 
ISSUE # 30 

The government is keen to accelerate the GDP growth rate and has set a target of 7 percent for the current financial year.
The strategy for achieving growth rate target is aimed at creating job opportunities, improving quality of manufactured goods, achieving higher exportable surplus and above all enhancing purchasing power of the people in the country. To achieve the cherished goals set by the government, the interest rates are essentially required to be made attractive both for the end-users. The government does not wish to see slow down of the ongoing creation of new productive facilities and upgrading of the existing facilities.

 

 

EPB AND TRADE BODIES
The communication gap between various trade bodies, especially the export-oriented players, and the Export Promotion Bureau has been identified as one of the major obstacles that is hindering the realisation of full export potential of the country. This communication gap could, however, be bridged by developing a cordial culture in the government bodies which have yet to come out from the legacy of bureaucratic arrogance, a usual wedge between private and public sectors in our society.

PREMIUM ON NEW CARS
Premiums on newly assembled cars are reaching out to its new altitudes following the late delivery of cars by the assemblers with new models thronging the market. The dealers remarked that the late delivery has been infusing a renewed buying passion among customers. Market players and even assemblers think that the menace of premium on new models is likely to dominate the market in the current year with the same tendency since the demand and supply gap is still widening. Premium on Toyota Corolla is being charged at Rs 150,000- 160,000 as compared to Rs125,000 two weeks back, while premium on new automatic Daihatsu Cuore is being demanded at Rs 75,000.