India needs $93 billion to fund budget; financial markets tank

India plans to borrow $93 billion to fund its budget spending to aid the poor and finance road and power infrastructure.

India’s finance minister Pranab Mukherjee unveiled the federal budget for the year 2009/10 ending March 2010 on Monday. The minister said the country’s fiscal deficit may widen to a 16-year high of 6.8 percent of gross domestic product from a revised 6 percent.

Bonds, shares and currency fell as investors were disappointed without major asset sales announcements and concerns a ballooning budget deficit may lead to a credit-rating cut.

Indian shares fell about 6 percent the maximum intraday fall on a budget day after 2001, as the much-hyped budget failed to live up to expectations.

Bloomberg News writes Mukherjee, 73, provided for only 11.2 billion rupees this year from the sale of stakes in state-run companies. Advisors to the finance minister, in a report on July 2, estimated the government could raise as much as 250 billion rupees annually over the next five years from asset sales.

India’s credit rating has worsened in the last few months with agencies Standard & Poor’s and Fitch Ratings placing it at their lowest possible investment grade, while Moody’s have placed the country two levels below investment grade.

None of the agencies have taken an immediate call on credit rating as of now.
Economist Prime Minister Manmohan Singh, however, lauded the budget and ensured the plans aim to bring India back in the 9 percent growth track on a sustained basis.

India GDP growth fell to 6.7 percent in 2008/09 fiscal year ending March 31, down from a three-year-average at near 9 percent.

Mamta 'Didi' put Indian Railway on tracks

Mamata Banerjee, who rose from the status of a little known regional grass-root politician to the positions of a federal minister, after winning the recent national polls, presented her first railway budget on Friday.
The leader, who became famous amongst masses in Bengal and infamous among the industrial community after her agitation forced Tata Motors to shift their world’s cheapest ‘Nano’ car project, promised socially responsible railways in India in her budget speech. Didi, or elder sister, as she’s popularly known, didn’t increase passenger fares in an attempt to woo the 18 million Indians, who travel on 9,000 trains every day. Indian Railway is the world's largest commercial or utility employer, with more than 1.4 million employees and with a revenue of about $20 billion.
(The Cartoon is sourced from google images attributed to Satish Acharya)

MUMBAI'S NEW SEA-LINK

Mumbai, India's financial capital, is attracting big crowd these days with this new sea-link bridge between sub urban Bandra and commercial Worli. The government claims it is the first step to make Mumbai as adorable as Singapore, Shanghai or NewYork. Obviously most of us doubt, nevetheless we also joined the craze, and drove across the 5 km long bridge which took 10 years to build and cost $400 million. The bridge allows free passage till Monday, when the toll officers will charge more than a dollar to cross one side.

India's Tata unveils 'Nano', world's cheapest car

India's Tata motors, which owns Jaguar and Land Rover brands of automobiles today launched 'Nano', the world's cheapest car in Mumbai. Nano, the one lac-rupees (about $2,000)car is an ultimate dream for Indians, where about a quarter of the population live on $2 a day. , said the car was cheap enough to allow Indian families to trade in their motorbikes. Nano is inspired by the philosophy as Ratan Tata, the chairman of Tata Motors says "My fear for the safety of lower-middle-class families who ride four and five to a bike on India's dangerous roads, often with Sari-clad women sitting side-saddle while bouncing babies on their knees."

It is a stripped-down car for frugal times; the car measures 10.2 feet long, has one windshielf wiper, a tiny 624 cc engine capable of a top speed of just over 60 miles per hour, and no air bags or antilock brakes. Consumers seeking air conditioning, a radio, or power steering will have to pay extra.
The company also announced a State Bank of India-backed scheme which will allow poor buyers to drive home a Nano with an initial payment of around £40.

Mr Tata said he hoped the no-frills car would reach beyond India: the company plans to offer the Nano for sale in the UK and Europe by 2011.

Jai Ho Slumdog, Danny Boyle, secular India

Saudamini Acharya

India must hail Oscars for “Slumdog Millionaire” and Smile Pinki and its non-Indian director, producers. For some time before the Oscars these two films, especially Slumdog has been discussed as not being an Indian movie. It has been criticised as portraying India in a bad light by showing ist dirty underbelly. Majority of the critics come from Bollywood, the local film industry and are big names here. Let’s listen to some of their arguments. Amitabh Bachhan, India’s most adorable movie star said Oscar is not the ultimate destination for any film and had it not been for a British filmmaker, Slumdog wouldn’t have achieved such success. He may be true, but only partially. True, Slumdog exposes India’s poverty, inhuman living, and suffering children. But would one say this doesn’t happen in India. Yes it does and should be brought to global focus. This film is not a shame for the country rather is a tool which will eradicate some inequality in our society. True, Danny Boyle didn’t cast big Indian stars in the film, but he did something with real Indian stars, the kids of the Dharavi slums in Mumbai and the vulnerable strugglers Dev Patel and Freida Pinto. He chose one big name from India, Alla Rakha Rahman, who was needed for printing the emotion of Indian slums on a global scale.
Boyle made India proud by taking the service of Rahaman and Rasool Pookutty, two Indian Muslims for his film. Both of them shined and applauded by the billion plus Indians, of which more than 80 percent are Hindu. “This is a Shiv ratree (a Hindu religious festival) gift,” in after winning Oscars. Through this Boyle managed to tell the world about India’s secular fabric effectively. Boyle still did more he got the kids from the slum to walk the red carpet, which most Indian actors dream of. Jai Ho (two Hindi words which mean let’s hail) became the global entertainment anthem for 2009. What more do we need? India and we Indians dreamt of Oscar for years. We finally got it. We should be happy rather than cribbing. Jai Ho Danny Boyle.
(Saudamini Acharya is a Mumbai-based writer)

Woody Allen finds his new star in Slumdog's Freida Pinto

Freida Pinto , the nubile Indian actor, who's riding high on the Oscar success of her debut film Slumdog Millionaire , has been been spotted and lapped up by Hollywood oldie Woody Allen for his next flick.
In an interview to a U. S. morning news programme, the 24-year-old actor thanked director Danny Boyle for landing her a role in sex and comedy magician Allen's new venture.
"Yes, it''s up (begins) in July," the Daily Express quoted her as saying.
Allen's distinctive films, which run the gamut from dramas to screwball sex comedies, have made him one of the most respected living American directors.
Allen is also credited with romancing with young actors, whom he casts in his film.
Slumdog Millionaire swept the 81st Academy awards by winning 8 honours including the Best Film.

Oscar glory puts Mumbai slums among world's favourite tourist spots

Oscar to 'Slumdog Millionaire'has brought 'Dharavi', the slum town of Mumbai into global focus. Mumbai slums have been long depicted in Bollywood movies, but the Hollywood attention has attracted international celebrities, art lovers, journalists and filmmakers into the city.

India's Economic Times writes ancouver-based art dealer Richard Trout, Dharavi is an amazing tourist spot. He watched "Slumdog Millionaire" a month ago and is now in Mumbai for five days making his way through the dingy bylanes of the Asia's largest shantytown - 175-acre Dharavi, home to more than 600,000 people.

A global online tourism vendor, Expedia.com., which has unveiled a Oscar holiday destination package, is promoting Dharavi and the city of Mumbai as one of the hottest tourism destinations this spring and summer.