Indian Economy: News and Discussion

[Rahul92]

India raises interest rates for fifth time this year

India's central bank has raised interest rates by more than expected as it continues to battle high inflation.

The Reserve Bank of India increased its repo rate - the rate at which it lends to banks - to 6% from 5.75%.

It raised the reverse repo rate - the rate at which it borrows from banks - to 5% from 4.5%. Economists had expected a rise to 4.75%.

It is the fifth rate hike this year as India has faced double-digit inflation, although it fell to 8.5% in August.

The fall - from 9.8% the previous month - was partly due to changes in the way it is calculated to include a wider range of consumer goods.

High food prices have helped fuel inflation

Under the old system, August's inflation rate would have been 9.5%.

"Inflation remains the dominant concern," the central bank said.

"Essentially, inflation rates have reached a plateau, but are likely to remain at unacceptably high levels for some months."

Aggressive stance'

Despite the drop in August's inflation rate, the bank would like to see prices rising in line with historical norms of 5% to 5.5%.

It added that the measures taken should contain inflation without disrupting growth.

India's economy grew by 8.8% in the April-to-June quarter, its fastest pace for more than two years.

"The RBI has taken an aggressive stance, giving higher priority to fight inflation against robust growth and rising asset prices," commented Moses Harding, head of global markets at IndusInd Bank in Mumbai.

"This tough stance, despite maintaining tight liquidity and with the repo rate remaining operative, is indeed a hawkish stance."

Analysis
Nidhi Dutt BBC News, Mumbai

Food and fuel prices have been a galvanising issue for many months right across India.

The rising cost of basic, staple needs like grains, pulses, fruit and vegetables has been a subject that has caused economic as well as political tension.

In recent months several states have faced days of strike action by workers venting their frustrations. The shutdown of industries such as IT and banking has cost the country many millions of rupees.

However, the government is hopeful that a robust monsoon season will ease the pressure on India's agriculture and farming sectors, increase production and as a result, have a positive effect on the rate of inflation.

Finance Minister Pranab Mukherjee says that tackling inflation is his ministry's top priority, above and beyond the implementation of any other monetary policy.

 

[ajtr]

India lost over US$125 billion in illicit outflows between 2000-2008

India lost over US$125 billion in illicit outflows between 2000-2008​

New GFI Blog Post Explores Link between Corruption, Poverty, and Violence against Whistleblowers in India

September 13, 2010
Monique Perry Danziger, 202-293-0740

Post features advance look at numbers from upcoming GFI report on illicit financial flows from India; country lost over US$125 billion in illicit outflows between 2000-2008

WASHINGTON, DC - Following a Washington Post story published yesterday about recent violent crimes in India against whistleblowers, Global Financial Integrity published a post revealing new numbers from an upcoming GFI report on illicit financial flows (IFF) from India and explaining linkages between IFFs, poverty, corruption, and crime.

Written by GFI Junior Economist Karly Curcio, the blog states:

India's economic boom continues with an average growth rate of over eight percent between 2004 and 2009 by GFI calculations. As the money flows, however, the poor continue to stay poor. Corruption is rampant in India as it is in almost all developing countries. Both corrupt political and corporate officers manage to siphon off funds - intended to aid the people of India - off to political and private sector elite. Recent efforts in India to challenge this corrupt affront on humanity have been met with severe violence.

As India develops economically and builds better infrastructure, one would think that all Indian citizens would see an increased standard of living and that the income inequality levels would fall. However, the gini coefficient, which measures income inequality, has actually increased over the time period measured, 2000-2005, from 0.32 to 0.37 on a scale of 0 to 1, with 1 being the highest income inequality. We see in India - as in other currently developing countries - that as the economy grows, so do illicit flows. This positive correlation exhibits the increased incentives to conduct illicit flows, mostly because more money is flowing within the system to steal away and constant greed is tapping into that pool.

The full text of the blog post can be read here on the blog of the Task Force on Financial Integrity & Economic Development.

The report is due out later this year with embargoed copies to be made available to members of the press in advance. To request an embargoed copy, or submit any questions or comments on the India report or IFFs, contact Monique Perry Danziger, 202-293-0740.

 

[ajtr]

Corrupt have siphoned off $125 bn from India: Think tank​

Even as India's economic growth continues, the poor continue to stay poor with rampant corruption siphoning out over $125 billion in illicit capital flight between 2000-2008, says a Washington think tank. Noting that "much of the funds flowing out are generated at home within India and then sent


illegally abroad," an upcoming report from Global Financial Integrity (GFI) says, "So the growth of corruption and India's underground economy contributes significantly to illicit financial flows from the country."
"Corruption is rampant in India as it is in almost all developing countries. Both corrupt political and corporate officers manage to siphon off funds —intended to aid the people of India ...," research arm of Centre for International Policy said.

"Recent efforts in India to challenge this corrupt affront on humanity have been met with violence," Junior GFI Economist Karly Curcio said in a blog post on the report on illicit financial flows (IFF) from India and explaining links between IFFs, poverty, corruption, and crime.

"As India develops economically and builds better infrastructure, one would think that all Indian citizens would see an increased standard of living and that the income inequality levels would fall," says the blog post following a news report about recent crimes in India against whistleblowers.

"However, the gini coefficient, which measures income inequality, has actually increased over the time period measured, 2000-2005, from 0.32 to 0.37 on a scale of 0 to 1, with 1 being the highest income inequality," Curcio wrote.

Noting that "in India ... as the economy grows, so do illicit flows," she wrote: "This correlation exhibits the increased incentives to conduct illicit flows, because more money is flowing within the system to steal away...."

India ranks 84 out of 180 countries in Transparency International's 2009 Corruptions Perceptions Index ranking.

 

[ajtr]

Bridging the Bengaluru-Bareilly divide:Rural India growing at faster rate

Amar Ujala101 Markets: Bridging the Bengaluru-Bareilly divide​

Research has uncovered several myths and insights about the rural heartland. Shonali Ghosh from AC Nielsen threw light on a few of these at the event, 101 Markets, organised by afaqs! in Mumbai.
The size of the non-metro opportunity is enormous, as 89 per cent of India's population lives outside the metros. The market is evolving, said Shonali Ghosh, director, Client Solutions, The Nielsen Company, as she took the audience through statistics and findings from the non-metro markets, which are essential to know for marketers.


Explaining the potential of non-metro markets, Ghosh brought out some statistics. There has been an 11 per cent increase in the total value of FMCG sales across India in the last one year. Of this, 9 per cent came from urban India and 15 per cent from rural India. The categories under FMCG that have driven growth are impulse food products, baby care products, contraceptives, packaged groceries and personal care products, all of which indicate an evolving trend.

In the durables segment, small towns are embracing new technologies, such as frost-free refrigerators, split air-conditioners and fully automatic washing machines. The growth of durables in the urban market is 10 per cent per annum; while in the rural market, it is 25 per cent per annum.


The perception of rural India is deceptive; as its actual potential remains unexplored. While rural India is perceived to be poor, illiterate, isolated and dependent on agriculture for revenue; in reality, rural India is poised for change. Ghosh said that not only does rural India house a sizeable population (higher than the US, the UK, France, Japan, Italy and Germany put together); but also boasts of a considerable GDP, higher than Switzerland's. A report estimates that by 2012, two-thirds of rural income will be non-farm.

Among the reasons for growth, accessibility is most significant. The number of FMCG outlets in 2009 increased by 6 per cent over 2007 in urban markets; while in rural India, this figure was 27 per cent. Development on the infrastructure front - road connectivity, education and sanitation -- has also led growth. Corporate initiatives, such as ITC e-Choupal, HUL's Shakti and Tata Kisan Sansar, have all worked towards empowerment of rural consumers.

Media (penetration of television and cable and satellite) has played a pivotal role too. The new content of TV programmes has focused on social and contemporary issues, such as child marriage, caste dynamics or extra-marital affairs, becoming a window for the rural women into the outside world and empowering them.

Ghosh added that marketers need to understand the psyche of the rural consumer to design the product, price, communication and distribution mix. A mobile phone company, she cited, had to change its communication strategy after its simple and low-priced phone failed to create a stir in the rural markets. The reason was that though rural consumers prefer user-friendliness; they are not looking for simplicity in mobile phones. There was a need to position the phone as a flashy one.

In another research, it was found that while for an urban consumer, a fridge serves as a frozen cupboard; for a rural consumer, its usage is limited to storing milk, water and ice, as storing leftover food is taboo. Ghosh emphasised on the need to understand priorities and customise products accordingly.

She added that this did not mean that non-metro audiences needed to be treated completely differently, because the markets are converging. She classified the market into rural, peripheral rural, peripheral urban and urban. Peripheral rural comprises those who travel to urban areas for livelihood or education; and hence, have urban contact. Peripheral urban includes those who live primarily in urban areas, but retain their rural base. With increasing media exposure, she said, the lines would blur further.

Ghosh said that the future would see rural markets growing, and marketing budgets also going up. As employment and income grow in small towns, so would the demand for products and services.

 

[Rage]

India didn't follow mindless liberalisation: Joseph Stiglitz

A very important video, in my opinion:

 

[plugwater]

 

[plugwater]

India's rich club swells to 1.26 lakh

The story of the rich Indian continues, with India adding around 50 per cent more High Networth Individuals (HNIs) to its population in year 2009.

According to a 2010 Asia-Pacific Wealth report released by Merrill Lynch Global Wealth Management and Capgemini, the total number of HNIs in India at the end of 2009 was 1,26,700 with a total networth of $477 billion.

HNIs, in the report, are defined as individuals with at least $1 million in investable assets excluding their primary residence, collectibles, consumables, and consumer durables.

"The strong economic resurgence in India has been boosted primarily by India's stock market capitalisation, which more than doubled in 2009 after dropping 64.1 per cent in 2008" said Mr Pradeep Dokania, Chairman, Merrill Lynch Wealth Management.

Year 2009 saw Hong Kong and India recording the highest growth in terms of their HNI population and wealth, despite the huge decline in the same that both experienced in 2008.

The HNI population in Hong Kong experienced a massive growth of 104 per cent this year, while the HNI population in the Asia-Pacific region grew by 25.8 per cent to touch 3 million, up from 2.4 million in 2008.

The overall increase in Asia-Pacific HNI wealth was 30.9 per cent at $9.7 trillion. For the first time, the total wealth of HNIs in the Asia-Pacific region crossed that of Europe — $9.5 billion.

Total investments

The report also noted that Indian HNIs invested as much as 82 per cent of their total investments in their home-region. The reason cited for this is the non-convertibility of Indian currency in the US market. "There is restriction for Indians investing in foreign securities. An Indian can only invest about $2,00,000 a year, which is not the case for countries such as Japan that have total currency convertibility," said Mr Atul Singh, Managing Director, Head - Global Wealth & Investment Management, India, DSP Merrill Lynch.

However, Indian HNIs did display signs of risk aversion as they increased their investment in fixed income instruments to 25 per cent from 21 per cent in 2008. Investments in equities remained the same at 32 per cent in spite of the markets rallying in 2009. HNIs also decreased their investments in the real-estate sector.

"In 2009, Indian HNIs became wary of the real-estate bubble as the premium property prices didn't correct much despite the liquidity crisis and dropped their allocation by 3 percentage points to 22 per cent," explained Mr Singh.

Allocation in alternative investments remained the same at 8 per cent, although it was three percentage points higher than the Asia-Pacific average. Alternative investments include instruments such as hedge funds, commodities, structured products, etc.

"We expect faster economic growth, coupled with improving business conditions, which should fuel expansion in the HNI segment as business ownership and income account for 73 per cent of all HNI wealth in Asia-Pacific, excluding Japan. Moving forward, China and India will lead the way in the region with economic expansion and HNI growth likely to keep outpacing more developed economies," Mr Dokania concluded.

The Hindu Business Line : India's rich club swells to 1.26 lakh

 

[plugwater]

India to grow 8.7% in 2011: ADB

Growth across Asia and the Pacific will be the fastest this year since 2007 as the region recovers strongly from the global crisis, but will moderate in 2011, the Asian Development Bank said on Tuesday.

Developing Asia, a diverse group of 45 economies including China, India, Tajikistan, Samoa, and Indonesia, would grow 8.2% in 2010 and 7.3% in 2011, the ADB said in its update of its 2010 Asian Development Outlook.

The 2010 growth forecast has been revised up from 7.5% in April and a forecast of 6.4% a year ago; the 2011 forecast is unchanged from April.

The return of investors risk appetite for emerging market assets and the strong economic recovery have combined to bring a surge in capital flows to developing Asia," the ADB said.

Those flows -- both portfolio and direct investment -- reflected strong fundamentals and confidence in long-term reforms and growth potential, but also carried risks such as potentially destabilising markets and complicating policy setting.

"The prospect of reversal of inflows remains a possibility in the medium term as monetary tightening in the U.S. and the eurozone narrow the interest rate differentials with developing Asia," the bank said.

"Asian authorities should therefore consider appropriate policy measures to manage a surge in capital inflows and to encourage stable long-term capital flows."

The ADB said Asia would also benefit from greater coordination to overcome fears of losing export competitiveness through unilateral currency strength.

"While price stability must remain the overriding objective of monetary policy, the global crisis highlights the need to prevent asset price bubbles through improved coordination between financial regulation and monetary policy to the region."

China steady, Asean up

The ADB maintained a forecast of 9.6% growth in China this year, supported by exports and domestic demand, and expected it to ease slightly to 9.1% in 2011.

Indian growth was expected to pick up slightly to 8.7% in 2011 from 8.5% this year, driven by domestic demand, company profits and favourable financing conditions.

Forecast growth for the 10 economies of Southeast Asia has been revised up to 7.4% in 2010 -- the fastest since 1996, before the Asian Financial Crisis -- from 5.1 percent.

"The world economy is experiencing considerable uncertainty, though, and there are signs that economic activity across Southeast Asia is starting to decelerate," the ADB said, forecasting regional growth in 2011 at 5.4%.

Central Asian economies were benefitting from buoyant oil and metal prices, and remittance inflows, but the ADB said there were exceptions to the regional improvement.

"Country-specific circumstances, such as devastating floods in Pakistan, the ongoing political impasse in Nepal, and political unrest in the Kyrgyz Republic will weigh on future growth," the bank said.

India to grow 8.7% in 2011: ADB - Reuters -

 

[Rahul92]

US to focus on business in tier II, III cities in India

With Indo-US bilateral trade poised to touch the $50-billion mark, the United States is keen to tap business opportunities emanating from Tier II and III cities which are not yet on the world radar, a senior US government official said.

"Business people from all over the world come to Mumbai, Delhi and other important cities throughout India. But we want American business to be the first to come to Pune, Nagpur and any other city that is not on the world radar yet," US under secretary of commerce for International Trade, Francisco J Sanchez, told reporters here today.

Sanchez is here on a three-day trade policy trip and will inaugurate the Growth in Emerging Metropolitan Sectors (GEMS) conference in Pune tomorrow. This visit is ahead of US President Barack Obama's visit to India in November.

The International Trade Administration's new GEMS will focus on building commercial ties between the US and India's emerging cities.

"In implementing President Obama's National Export initiative, we hope that India and the US will reap the rewards of increased trade and investment in terms of job creation and an improved standard of living," Sanchez said.

While there is an immense opportunity for the US across sectors, Sanchez said that infrastructure and energy provided a tremendous business potential.

"Infrastructure provides tremendous business opportunity as the US has great expertise, products and services. The second area which provides good opportunity is the energy sector and within energy, the alternative energy segment has a tremendous potential for growth," he said.

When asked the US' take on India's plan to introduce a civil liability clause in the nuclear bill, he said the US government and business community is pleased that the sub-continent is focused on the civil liability issue.

"However, there are concerns on how it is structured and it provides too much uncertainty for many parts of our civil nuclear sector. I think we would like see more work done on the issue to provide certainty for the civil nuclear sector," he said, adding "uncertainty here means when there is concern about unlimited liability."

Asked about visa restrictions (H1 visa) imposed by America, Sanchez said in any important mature relationship there will be disagreement and conflict. "How we manage these tensions is very important," he said.

 

[sandeepdg]

India's billionaire club swells to record 69 members Read more: India's billionaire

NEW DELHI: Concerns over infrastructural bottlenecks notwithstanding, Indian business tycoons continue to build upon their sizeable cash piles, with a record 69 billionaires featuring in Forbes India's Rich List for 2010.

"Amid further disenchantment with national infrastructure undertakings, such as the botched preparation for the Commonwealth Games, Indian tycoons continue to flourish, sometimes off those same public projects," Forbes India magazine said.

The 8.5 per cent GDP growth of the Indian economy and bullish stock markets have pushed up the net worth of the tycoons in the top 100 list, making as many as 69 of them billionaires.

The wealth of Indian billionaires suffered a huge correction in 2008, when there were only 27 billionaires. The number of members in India's Richie-Rich club has increased since then and touched 52 in the year 2009, before increasing over two-fold to 69 this year.

"This year's list signals a second wave of Indian capitalists accumulating fantastic fortunes, after an initial slew earlier in the decade," Forbes India said, adding that, "In between, Indian wealth suffered a huge correction in 2008, when only 27 were billionaires."

Despite the rising stock markets and booming economy, the fortunes of some tycoons, like property baron Kushal Pal Singh, the owner of debt-laden DLF, Hero Honda's Brijmohan Lall Munjal, wind energy entrepreneur Tulsi Tanti and slum re-developer Rakesh Wadhawan, plummeted significantly.

"Property baron Kushal Pal Singh, owner of debt-laden DLF, lost nearly one-third of his wealth despite a real estate rebound," Forbes India said.

Meanwhile, Pravin Kumar Tayal, who sold Bank of Rajasthan to ICICI Bank fell off the list.

The four richest Indians are worth a combined USD 86 billion, well short of the USD 180 billion record they set three years ago.

Though the fortunes of both Mukesh Ambani and steel magnate Lakshmi Mittal have dipped in comparison to the previous year, they still retain the top two positions, with Mukesh Ambani holding on to his numero uno rank for the third straight year.

Infotech tycoon Azim Premji has moved up to third place, displacing younger Ambani sibling Anil Ambani, who "despite making peace with his brother", has dropped to the sixth position.

The biggest gainer in percentage terms was media baron Kalanithi Maran, whose net worth jumped 74 per cent after he purchased a big stake in low-cost airline SpiceJet.

The latest Forbes India list features more pharma and property titans than business tycoons from traditional industries like IT, steel and energy.

India's billionaire club swells to record 69 members - The Times of India

 

[Daredevil]

I will be more interested in poverty shrinking rates rather than billionaires increase rates. That will be true reflection of the Indian growth.

 

[sandeepdg]

Well, I will be interested if both go hand in hand, what say !

 

[navida]

It shows something is fundamentally wrong with our system and why naxalites are born.

 

[badguy2000]

guy, is it a piece of good news or a bad news to India?

 

[nitesh]

Research - The Dragon & the Elephant: Five myths about China versus India

Myth 1: China's authoritarian system sacrifices rights for social order

In fact, there is far more chaos and unrest in China than there is in India. According to the latest available official figures, there were 124,000 instances of 'mass unrest' (defined as 15 or more people protesting against officials) in 2008 in China. India has fewer than 5,000 such instances. Beijing spends more on 'internal security,' which does not include the normal police forces, than it does on the People's Liberation Army.

Myth 2: India enjoys more freedom but at the price of economic inequality

In fact, using the commonly accepted standard of the GINI coefficient, China's score is around 0.55–0.60, while India's is around 0.33–0.36 ('0' is perfect income equality and '1' is perfect income inequality. This makes China the most unequal society in all of Asia and the trend is worsening.

Myth 3: Given China's spectacular rise, its private sector multinationals are due to dominate Asia, and then the world

True, there are 34 Chinese companies in the Fortune 500 list – all state-controlled except for one – compared to India's eight. Size is one thing. But by 'return on assets' (to measure profitability) and 'number of patents filed' (to assess innovation), Indian firms do significantly better. Tellingly, the Indian firms spend about 5% of revenues on R&D on average while Chinese firms spend about 1% of revenue.

Myth 4: China is leaving India behind in the urbanisation stakes

China is definitely ahead of India: about 48% versus 35%. But the rate of urbanisation in India is actually neck-and-neck with China at about 1.5% per year.

Myth 5: China and India are making Western models of political-economy obsolete

There is a saying in both countries about their own respective developmental approach: Western knowhow with Chinese/Indian essence. But even Beijing and New Delhi admit that they are still speculating what this actually means. China and India are still outside the world's top 100 for GDP per capita. The jury is well and truly still out on this one.

 

[sandeepdg]

It shows something is fundamentally wrong with our system and why naxalites are born.

What do naxalites have to do with billionaires ?? It is their hard work that has taken them there. Naxalites are born due to government apathy and lack of foresight in government departments regarding all round development of the tribal population.

guy, is it a piece of good news or a bad news to India?

Badguy, most people in India just don't know how to appreciate something good and see the larger picture !

 

[Rage]

India's direct-to-home market will soon be the world's largest

India will replace the US as the world's largest direct-to-home (DTH) market in the next six months, hitting over 32 million subscribers within the first quarter of the next calendar year. In 2009, there were 130 million DTH subscribers across the globe and the number grew by 14 per cent, according to international studies.

Also, the high-definition DTH revolution will explode in India much earlier than what most pundits had predicted. Operators say by 2014, more than 10 per cent of the 50 million subscribers of DTH in India will be on high-definition DTH.

However, it could take 3 years before operators are out of the red, given the large investments in infrastructure and tariff wars.

India's direct-to-home market will soon be the world's largest

 

[Rage]

India's Adani eyes bid for Australian port - report

 

[Pintu]

India will soon start to outpace China: Economist - The Times of India

India will soon start to outpace China: Economist
IANS, Oct 5, 2010, 01.07pm IST

WASHINGTON: India will soon start to outpace China, thanks to a young and growing workforce and its "much-derided democracy" says The Economist.

The cover story on "How India's growth will outpace China's" in its latest issue attributes "India's surprising economic miracle" largely to its private sector saying, "the country's state may be weak, but its private companies are strong."

Despite the poor headlines generated in the run up to the Commonwealth games, "India is doing rather well," the internationally regarded magazine said noting, "Its economy is expected to expand by 8.5 percent this year."

"It has a long way to go before it is as rich as China - the Chinese economy is four times bigger- but its growth rate could overtake China's by 2013, if not before.

"Some economists think India will grow faster than any other large country over the next 25 years. Rapid growth in a country of 1.2 billion people is exciting, to put it mildly," it said.

Citing demography as one of the two reasons why India will soon start to outpace China, the magazine noted "China's workforce will shortly start ageing; in a few years' time, it will start shrinking."

"That's because of its one-child policy - an oppressive measure that no Indian government would get away with."

"India is now blessed with a young and growing workforce. Its dependency ratio - the proportion of children and old people to working-age adults - is one of the best in the world and will remain so for a generation," it said.

India's economy will benefit from this "demographic dividend", which has powered many of Asia's economic miracles.

"The second reason for optimism is India's much-derided democracy," said The Economist noting, "Indian capitalism is driven by millions of entrepreneurs all furiously doing their own thing.

"Since the early 1990s, when India dismantled the "licence raj" and opened up to foreign trade, Indian business has boomed."

"Ideas flow easily around India, since it lacks China's culture of secrecy and censorship. That, plus China's rampant piracy, is why knowledge-based industries such as software love India but shun the Middle Kingdom,"

"Given the choice between doing business in China or India, most foreign investors would probably pick China, The Economist said.

 

[Pintu]

Rupee at 25-month high vs dollar on strong capital inflows - The Times of India

Rupee at 25-month high vs dollar on strong capital inflows
PTI, Oct 7, 2010, 06.26pm IST

MUMBAI: The rupee on Thursday strengthened by 30 paise to close at a 25-month high against the US currency on selling of dollar by banks and exporters in view of sustained capital inflows into the equity markets.

Banks and exporters preferred to reduce their dollar position at the current stage in view of weakness of dollar in the global market, dealers said.

Persistent capital inflow by foreign funds into equity markets also affected the dollar value, they added.

At the Interbank foreign exchange ( forex) market, the rupee closed 30 paise higher at 44.19/20. The rupee was last traded at 44.12 on September 8, 2008.

The rupee opened higher at 44.37/38 per dollar as against the Wednesday's closing level of 44.49/50 per dollar.

Foreign funds continued their buying as they bought net worth Rs 1,842.44 crore on Wednesday as per the provisional data issued by the stock exchanges.

Net equity inflow in 2010 now stands at a record USD 20.52 billion, above last year's USD 17.45 billion, as per data from the Securities & Exchange Board of India (Sebi). The Sebi data includes FII inflow through primary and secondary market route.

In London, the dollar hit a 15-year low against the yen and fell across the board on Thursday as it was pummelled on growing speculation that the Federal Reserve may implement more monetary easing as early as next month.

Meanwhile, global crude oil was trading near USD 84 a barrel in London on Thursday.

The rupee premium for the forward dollar finished lower on sustained receivings by exporters. The benchmark six-month forward dollar premium payable in March ended lower at 129-131 paise from 132-1/2-134-1/2 paise on Wednesday and far-forward maturing in September also close down at 242-244 paise from 247-249 paise previously.

The Reserve Bank of India has fixed the reference rate for the dollar at Rs 44.28 and the euro at Rs 61.70.

In cross-currency trade, the domestic unit declined against the pound sterling, the euro and the Japanese yen.

The rupee eased to Rs 70.70/72 against the pound sterling from Wednesday's close of Rs 70.67/69 and dropped to Rs 61.79/81 per euro from Rs 61.48/50 previously.

It also reacted downwards against the yen to Rs 53.71/73 per 100 yen from its last close of Rs 53.56/58.