Dr. S. A. Dave, Chairman of Unit Trust of India (UTI), has suggested that mutual funds should also be allowed to set up institutions. He said the policy that no institution could start anything new unless it had a capital had created obstacles in the path of diversification of UTI. Despite having more than Rs. 50,000 crores as assets and fewer bad loans than most others, UTI could not build other institutions because technically, it had no capital. The same problem was faced when UTI started a bank, Dr. Dave said.

Inflation rate ll.09%

Continuing its zig-zag trend, the inflation rate went up marginally to 11.09 per cent during the week ended May 21 from 10.97 per cent in the previous week. However, the inflation rate during the corresponding week last year was 6.12 per cent. Substantial price rise in ragi, rice bran oil, rapeseed oil, mustard seed oil and coconut oil fuelled the latest uptrend. The inflation rate for nine successive weeks has however, been erratic though it has been in the double-digit zone.

Ficci puts GATT benefit at $ 2b

The Federation of Indian Chambers of Commerce and Industry (Ficci) has estimated that the benefit to India from the liberalised world trade regime within the initial two years has been between $1.5 billions to $.2 billions. The chamber has estimated the country could gain as much as $4.55 billions by the rum of the century. In a study titled ‘Impact of GATT on Indian economy,’ Ficci states the expected increase in trade is likely to occur from tariff reduction on a number of agricultural and industrial products which will have ‘trade creation effect.’

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