In New Delhi, petrol is being sold 35 paise higher at Rs 81.63 per litre, while the price of diesel has been hiked by 24 paise to Rs 73.54 per litre.

Fuel prices have yet again witnessed a hike on Saturday, with petrol and diesel breaching earlier figures to touch new record highs.

In New Delhi, petrol is being sold 35 paise higher at Rs 81.63 per litre, while the price of diesel has been hiked by 24 paise to Rs 73.54 per litre.

Mumbai continues to be the worst affected by rising fuel prices, with petrol retailing at a staggering Rs 89.01 per litre and diesel at Rs 78.07 per litre.

The union government has been facing flak in the past few weeks for not implementing stringent measures to curb prices.

Earlier this week, the Congress Party and 21 other regional and national parties observed a ‘Bharat Bandh’ on account of the consistent rise in fuel prices and urged the government to take necessary steps to reduce citizens’ woes.

However, the Centre has maintained that external factors, including a rise in international crude oil prices, are influencing domestic fuel prices.

(PTI)

The Indian space agency expects to fly its first small rocket with a carrying capacity of about 500-700 kg sometime next year, according to a top official.

“The developmental work for our small rocket that can carry satellites weighing around 500 kg is on. The first flight of the small rocket is expected to happen sometime next year,” ISRO Chairman, K.Sivan told IANS.

He said the small rocket will be launched from the existing rocketport at Sriharikota in Andhra Pradesh.

In a recent interaction with IANS in Bengaluru, S.Rakesh, Chairman-cum- Managing Director, Antrix Corporation said the low-cost small rocket requires a dedicated launch pad with a simple vertical launch mechanism.

“Though SSLV will be initially launched from our rocketport at Sriharikota in Andhra Pradesh, we want to have a separate spaceport for it later,” Rakesh had said.

Queried about Rakesh’s views on the separate spaceport Sivan said initially the small rocket will be flown from Sriharikota. Antrix may have its own plans for the future.

Incidentally, Antrix is calling Indian nationals to apply for the post of `Head, Manufacturing & Marketing of Space Systems’. The job description being: “Preplanning activities of new Space Transport Systems which Antrix is envisaging to put into production. Establishment of production facilities in co-ordination with ISRO and Industries for Technology Transfer and production of the System.”

Sivan also said the Indian Space Research Organisation (ISRO) is evaluating the various proposals it has received for its lithium-ion battery technology and is expected to complete the process in a month’s time.

“In a month or so the first level of screen of the proposals will be over,” Sivan said.

Over 130 companies had shown interest in the Indian space agency’s lithium-ion cell technology.

In June this year, ISRO had announced its decision to transfer this technology to the Indian industry on a non-exclusive basis for usage in automobiles for Rs 1 crore.

The Vikram Sarabhai Space Centre located in Kerala, will transfer the technology to the successful Indian industries or start-ups on a non-exclusive basis to establish production facilities in the country that can produce cells of varying sizes, capacities, energy densities and power densities catering to the entire spectrum of power storage requirements, ISRO had said.

At present, the lithium ion battery is the most dominant battery system finding applications for a variety of societal needs including mobile phones, laptops, cameras and many other portable consumer gadgets apart from industrial applications and aerospace.

Recent advances in the battery technology have made it the preferred power source for electric and hybrid electric vehicles also.

Analysts partly attribute the fall of rupee to a global crisis and Trump’s ‘declaration of a trade war’.
The Indian rupee, which has fallen by more than 12 percent this year against the US dollar, is currently the worst performing currency in Asia.

A strong US dollar and high oil prices, coupled with investors dumping emerging markets’ currencies and a record high current account deficit – a measurement of a country’s trade where the value of its imports exceeds the value of its exports – are proving a toxic mix for the rupee.

On Wednesday, it hit a record low of 72.91 against the US dollar.

The slide has pushed up prices of imported items such as petroleum products, commodities, electronics and engineering equipment – and analysts warn the “worst is not yet over”.

India’s cash crunch persists as swap deadline passes
“In the medium term, India should brace for more rupee weakness, due to a further pickup of inflation. We expect the rupee to reach a steady rate of somewhere around 75 [against the US dollar],” said Hugo Erken, chief economist at the Dutch multinational RaboBank.

Late on Friday evening, the Indian government announced several immediate measures that it said are aimed at arresting the rupee fall.

Indian Finance Minister Arun Jaitley said on Friday that the government plans to take measures to cut down “non-necessary” imports, ease overseas borrowing norms for the manufacturing sector and relax rules around banks raising rupee-denominated overseas bonds.

The announcement was preceded by an economic review meeting chaired by Prime Minister Narendra Modi.

Further measures are expected to be announced on Saturday.

‘Global crisis’
A number of emerging economies – including Turkey and Argentina – have seen the value of their currencies drop against the US dollar in recent months amid rising trade tensions between the United States and China that have rattled international investors.

Mohan Guruswamy, former economic adviser to the Indian government, said the international instability has added to the rupee’s woes.

“The crisis is ongoing. The rupee fall is partly a global crisis as well, all thanks to [US President Donald] Trump and his declaration of a trade war which is adding to the pressure and the uncertainty,” Guruswamy told Al Jazeera.

India’s policymakers have long blamed offshore traders for aggravating falls in the rupee with speculative bets in currency-based contracts traded in financial centres such as Singapore.

WATCH: Millions of Indians are lining up to exchange obsolete bank notes
“The short-term sell-off that we have seen is worrying,” said Erken, citing a combination of factors contributing to it.

“Global tensions over trade, stubbornly high oil price and, of course, country-specific turmoil in Turkey (central bank independency and inflation), Brazil (elections), South Africa (deteriorating institutional quality) and Argentina (low reserves, high inflation, high foreign currency debt),” he said.

Impact of rupee slide
Higher oil prices pose significant risks to the economy of India, which imports more than two-thirds of its fuel needs.

Burgeoning oil import bills could put further downward pressure on the rupee and widen the country’s trade deficit – according to official figures, India’s imports last month stood at $45bn while exports were almost $28bn.

“If you have persistent trade imbalances, persistent current account deficit, the rupee would keep on falling. There is a greater demand for dollars as the rupee weakens,” said Guruswamy.

In such a situation, more people tend to sell rupees to buy dollars, or any other foreign currency that they require.

The weaker currency is also sparking foreign sales of bonds and stocks, which in turn is further pressuring the rupee.

“Money is flowing back to America amid a stronger dollar and incentives for people to keep their money in the US,” said Guruswamy.

He added that the steady slump in the Indian currency has a negative impact on Indian consumers “as petrol and diesel prices are going up” but provides exporters with a “short-term” gain “by making them more competitive”.

Checking the fall
The rupee’s defence in recent years has largely rested on a strategy from the central bank, the Reserve Bank of India (RBI), to drain cash from domestic money markets and raise short-term interest rates.

On Tuesday, the central bank sold dollars in the market to stem the rupee’s weakness.

But Guruswamy warned, “There’s a limit to how much the central bank can defend” the rupee. “In the past few weeks, they have sold over $20bn. We cannot deplete our foreign reserves.”

According to estimates, India’s foreign reserves currently stand at $400bn, down from a record high of $426bn in April.

On Friday, the rupee strengthened by 50 paisa to 71.68 against the dollar in early trade in the foreign exchange market, on the back of a government assurance that all steps would be taken to ensure the domestic currency does not depreciate to “unreasonable levels”.

However, analysts such as Erken, of RaboBank, warn against over-intervention.

“[The government] has to tread carefully. Large-scale currency interventions have the same effect as raising rates and the RBI certainly would not want to derail the current economic growth momentum,” Erken said.

Silver lining
India’s ruling Bharatiya Janata Party acknowledges that the currency’s fall is a matter of concern, but dismisses doomsayers’ predictions for the economy.

It insists the economic fundamentals remain sound, with some saying the rupee’s depreciation will help make exports more competitive and reduce imports.

“Rupee is not weakening, rather it is the dollar strengthening against all other currencies,” ruling party spokesperson Zafar Islam told Al Jazeera.

“In fact, India is in a much better position than other countries like Turkey and Argentina who have huge external debt and hence much more exposed to currency risk than us,” he added.

“The fall in the value of the rupee has also helped our exports. This month’s export figures are stronger than expectations.”

According to the ruling party, the rupee was still performing better than some other currencies and the country had sufficient foreign exchange reserves.

Analysts such as Erken say India is experiencing a “Goldilocks moment” which is reasonably low inflation and high growth, clocking an 8.2 percent gross domestic product (GDP) growth in the three months through June.

What lies ahead?
“From a policy perspective, the government has been pushing hard to implement key reforms and shape a more business-friendly environment,” he said.

But others argue policymakers cannot deflect blame for the lack of investment in the economy or policies that have allowed the current account deficit to reach unsustainable levels.

There’s no quick fix to the crisis, warned Guruswamy.

“Trade imbalances have to be dealt with, current account gap has to be bridged. You have to shore up confidence among the investor community. There’s a serious trust deficit in the government. People who are investors, who deal with money, builders of the economy have no trust in the government,” he said.

Global financial firm Nomura warns of further turbulence for the rupee as India gears up for a general election by May next year.

“The key risks [to the rupee] stem from the government turning more populist ahead of the 2019 general elections [worsening domestic fundamentals] and a sharper-than-expected domestic growth slowdown [triggering equity outflows],” a company statement released on 10 September said.

For his part, Erken said India should brace itself for the effect of further US punitive measures against China.

“Another spoiler would be further protectionist announcements by the Trump administration. We expect another $200bn of Chinese imports to be levied before the [US] midterm elections,” he said.

“This would fuel anxiety among investors, and we can expect another round of emerging market currency sell-offs.”

(Aljazeera)