Taking serious note of a Parliamentary Standing Committee report on functioning of Central Drugs Standard Control Organisation (CDSCO), Health and Family Welfare Minister Ghulam Nabi Azad today constituted a panel of experts to look into irregularities in passing new drugs.

The three-member Committee of experts comprising Director General ICMR V M Katoch, President of National Brain Research Centre, Department of Biotechnology, Manesar P N Tandon and former Director of Sanjay Gandhi Postgraduate Institute of Medical Sciences, Lucknow, S S Aggarwal, has been asked to submit its report within two months.

The Committee has been asked to examine the validity of the scientific and statutory basis adopted for approval of new drugs without conducting clinical trials, outline appropriate measures to bring about systemic improvements in processing and grant of statutory approvals and suggest steps to institutionalise improvements in other procedural aspects of functioning of the CDSCO.

The report has pointed out serious irregularities and serious lapses in clearing new drugs in the grant of approval to new drugs without conducting clinical trials in India.

It also pointed out to a collusive nexus between drug manufacturers, officials of Drugs Control Organisation and medical experts in granting approvals to new drugs and said drugs banned, discarded or withdrawn in developed countries are in circulation in India.

The Parliamentary Standing Committee Report has made recommendations and observations on various aspects such as organisational structure and strength of CDSCO, approval of new drugs, banning of drugs, approval of fixed dose combinations, pharmacovigilance and spurious/sub-standard drugs.

Source : http://tiny.cc/7a64dw

A sharp contraction in India’s industrial output in March reinforces the slowdown trend in the country, a deputy RBI said on Friday.

The moderating inflation was a result of the growth slowdown, Subir Gokarn said.

India’s industrial output unexpectedly contracted 3.5% in March from a year earlier, government data showed on Friday.

Annual economic growth probably dropped from a near 8.5% to sub-7% in the 2011/12 fiscal year, which many consider to be the new trend growth rate for Asia’s third-largest economy.

Source : http://tiny.cc/k854dw

J.P.Morgan says India’s liquidity deficit to worsen, hitting 1.5 lakh crore in June, as government spending remains tepid.

Core liquidity deficit could hit 1 lakh crore by the end of June, bank says.

The deficit would only come down if there are more cuts in the cash reserve ratio or more open market operations, J.P.Morgan argues.

The RBI needs to purchase Rs 35,000 crore in bonds via OMOs by June if they want to bring down core liquidity deficit to their comfort band, J.P.Morgan says.

Recommends investors continue to receive 5-year OIS as weak rupee likely to induce greater intervention by the RBI, and thus sterilisation via OMOs, which will push down bond yields.

Source : http://tiny.cc/dx54dw

US President Barack Obama said on Thursday that Europe was still in a difficult place economically in part because it did not take some of the steps the United States did.

Addressing about 70 people at a fundraiser in Seattle, Obama said Europe’s troubles were among the factors that could affect US growth, also mentioning high gasoline prices as a potential economic drag.

“We’ve still got headwinds. Europe is still … in a difficult state, partly because they didn’t take some of the decisive steps that we took early on in this recession,” Obama said at the event, which was held in a private home.

“Gas prices are still pinching a lot of folks,” he said, referring to the US economy. The housing market is still very weak across the country. But the good news is that we have weathered the storm.”

The health of the US economy could be decisive for Obama’s re-election prospects on November 6. His likely Republican opponent, Mitt Romney, has accused the Democrat of lacking the business acumen to steer the United States out of recession and bring down the unemployment rate.

Obama did not specify which economic steps Europe ought to have followed. But a senior administration official said some examples included the United States’ early stress tests on banks, requirements that banks bolster their capital cushions and an aggressive early response by the Federal Reserve, the US central bank.

Source : http://tiny.cc/vt54dw

Claiming that the US economy is getting stronger, President Barack Obama has said it is time that businesses move back their manufacturing from China, as he hits the campaign trail this week.

“The economy is getting stronger and businesses are starting to invest again. In fact, you’re starting to see companies that had moved to places like China recognising why would we abandon the largest market in the world?” Obama said at a campaign event in Seattle, yesterday.

“Wages are going up in China and workers are getting more productive here — let’s start bringing companies and businesses back,” Obama said, adding the country is still got headwinds.

“Europe is still in a difficult state — partly because they didn’t take some of the decisive steps that we took early on in this recession. Gas prices are still pinching a lot of folks. The housing market is still very weak all across the country.

But the good news is that we have weathered the storm and are in a position now to make sure that the 21st century is the American Century just like the 20th century was,” said the US President, who is seeking re-election in November presidential elections.

“But in order to do that, we’ve got to make good choices. And when I ran in 2008, I did not run just to get the country back to where it was before the crisis — because there had been problems that had been building for decades,” he said.

Source : http://tiny.cc/9g54dw

Planning Commission deputy chairman Montek Singh Ahluwalia today expressed confidence that the country can finance a current account deficit (CAD) of 3%.

CAD touched 4.3% of GDP during the last quarter 2011-12.

“We are seen as a fast growing economy and it has that potential. As long as that message is conveyed and people recognise that we welcome foreign investment and portfolio investment, I don’t think it would be difficult to finance it (a 3% CAD),” Ahluwalia said.

A CAD of 3% is sustainable and can be financed by a steady inflow of FDI and institutional investment through portfolio flows, he said while addressing students of the Tata Institute of Social Sciences on their convocation day here.

The CAD represents the difference between exports and imports after considering cash remittances and payments.

On the back of record rise in imports, the country was left with a trade deficit of $185 billion last fiscal, despite exports also overshooting its target by a few billion dollars at $303 billion.

This had a debilitating impact on the CAD position which nearly doubled to 4.3% of GDP in Q4 of the last fiscal against 2.7% for the entire FY11.

“I personally feel that we should be able to finance the CAD at 3% of GDP provided we are seen as a country that is growing rapidly, that’s the critical thing. We have to address many issues like power, fuel subsidies, etc (to give out that message),” he said.

He reiterated his call to deregulate oil prices as also allowing FDI in aviation and multi-brand retail, saying energy prices have to be aligned with economic realities as otherwise one will never see energy efficiency being pursued.

On the growth prospects, he said even without any fresh dose of reforms, the economy can grow at 9% or more. “I believe with the structure that we have, it is possible to grow at 9%, even if no new reforms are done immediately. (But the) most important thing is to take care of these executive decision-making issues,” he said.

Source : http://tiny.cc/2tb3dw

An angry remark by Finance Minister Pranab Mukherjee in the midst of uproar over a spate of issues, including demand for jute bags for wheat, led to adjournment of the Lok Sabha for over an hour this afternoon.

As BJP members stormed the Well to press their demand for availability of jute bags, an agitated Mukherjee tried to respond, but when they continued with the protest he made a certain remark angering the entire BJP.

AIADMK members too trooped into the Well seeking to have a say in the Aircel-Maxis deal that took place in 2006. The issue was raised by BJP leader Yashwant Sinha targeting the then Finance Minister, alleging that his son was involved.

Home Minister P Chidambaram was the Finance Minister at that time.

Amid cries of ‘shame, shame’ by the opposition members, Sinha alleged that the son of the former Finance Minister got a 5 per cent shares from Maxis.

“Prima facie what happened was a big scam and government should not hush it up,” Sinha said, demanding a statement from Mukherjee, who is the Leader of the House, as also the Finance Minister.

A few minutes later, BJP members, especially those from Madhya Pradesh, stormed the Well to press for their demand for jute bags for wheat. They returned to their seats when Mukherjee tried to placate them with a response. He, however, appeared visibly angry saying they have raised the issue for the second consecutive day.

Some remarks from him worsened the situation with agitated BJP members rushing back into the Well and the Speaker adjourning the House till 2 pm amid sharp reaction from the Opposition.

Source : http://tiny.cc/erb3dw

Exporters will need to convert about $2.5-$3 billion dollars into rupees from their foreign exchange accounts following the Reserve Bank of India’s (RBI) directive on Thursday.

The RBI asked exporters to convert half of their balances in the exchange earner’s foreign currency (EEFC) account to rupees, a measure to prop up the battered rupee.

“The amount that will come into the market is not too large. But it is important that exporters follow the letter and spirit of the facilities given in the EEFC account and not keep buying dollars from the market despite having dollars in these accounts,” said a senior RBI official.

Source : http://tiny.cc/qob3dw

Following are some of the expert comments after the Reserve Bank of India (RBI) made a dramatic move to prop up its battered currency today, requiring exporters to sell half the foreign currency in their accounts, which helped to strengthen the rupee in morning trade.

Subramanian Sharma, Director, Greenback Forex, Mumbai

“RBI’s move to make exporters convert 50% of their existing foreign currency earnings into rupee balances is a significant move, will result in large near-term inflows.

“However, pent up dollar demand exists and the USD/INR will trade in 52-53.80 band in near term.”

Radhika Rao, economist, Forecast PTE, Singapore

“Steps to force exporters to convert at least half of the earnings into rupee accounts will improve dollar supply at home and ease downward pressure on rupee.

“The RBI is not alone in taking such measures, as we recollect that Indonesia had imposed similar regulations last year, forcing exporters to retain earnings onshore.

Source : http://tiny.cc/qlb3dw

The Reserve Bank of India said exporters will be required to convert 50% of their foreign exchange holdings into rupees, in a move that traders say could boost the sagging local currency.

Exporters will also be allowed to buy foreign currency only after utilising all the foreign currency holdings in their accounts.

The rupee had hit an all-time low of 53.83 to the dollar  on Wednesday and even RBI intervention wasn’t enough to stem the currency’s decline.

The political upheaval in Greece continued to hurt the sentiment across the world, as political parties haggled over chances of renegotiating the terms of a bailout. The weekend elections in France and Greece had seen voters reject harsh austerity measures.

Banks on today sold dollars on behalf of the RBI when the rupee hit the 53.80 levels, which helped the currency recover to 53.70.

However, last-minute demand from importers hurt the currency further. The previous closing low was recorded at 53.72 on December 14, 2011. The currency has depreciated two per cent since the start of this month and 5.8% since April 1.

Source : http://tiny.cc/djb3dw