India's Defense Research Development Organisation (DRDO) has successfully developed an indigenously developed interceptor missile that is designed to destroy enemy ballistic missiles.

The missile was test fired at DRDO's Integrated Test Range (ITR) in Odisha. The test has made the country join only an elite list of countries with such defense capabilities. The scientist first launched a modified Prithvi missile, acting as a hostile target ballistic missile at 10.10am from ITR at Chandipur.

The authorities in Pakistan have expressed concern over delays in removing non-tariff barriers by India, ahead of an important ministerial meeting in the coming week.

The Indian government officials have responded by saying that the delay is only due to procedural reason and the other side's concerns will be addressed. India's Commerce minister Anand Sharma is expected to meet his Pakistani counterpart, Makhdoom Amin Fahim, in Islamabad next week.

According to estimates, the country's trade deficit might widen this year as impots continue to outgrow exports in recent months.

The country's current account deficit might increase to the level of 3.5% of GDP in the fiscal year. However, India is on target to achieve the target of $300 billion in exports in the year. According to official data, exports from India in the previous year were $246 billion. On the other hand, imports to India continued to out grow exports. The country's trade deficit in the month of January was recorded at $14.7 billion.

A parliamentary standing committee on finance headed by Yashwant Sinha is expected to finalise a report on the Code Bill that is expected to replace the income tax law.

The new draft proposal of the regulation suggests increasing the income tax exemption limit to Rs 3 lakh a year against Rs 2 lakh proposed in the Bill. However, The central government is likely to offer some relief to the individual tax payers and might raise the exemption limit to Rs 2 lakh within the Direct Taxes Code (DTC) and hike slabs for different tax brackets in the upcoming Budget 2012-13.

According to senior government officials, the country's current account deficit might increase to the level of 3.5% of GDP in the fiscal year.

The level is the worst in eight years as exports from the country are struggling to maintain growth due to continuing global economic uncertainties. The exports grew in April to September period but exporters are finding it difficult to maintain growth due to low demand.

The Chairman of the Central Board of Direct Taxes (CBDT) said asked tax officials from around the country to improve tax collections in order to close the widening fiscal deficit.

Finance Minister Pranab Mukherjee has expressed concern over the widening fiscal deficit, huge subsidy bills as well as lower-than-targeted direct tax collections. Mr. Das wrote to top IT officials on February 1 that the Rs. 5.32 lakh crore direct tax target must be achieved.

The finance minister of Greece has reached Brussels on Thursday is aiming to reach a new aid deal with its European partners.

The move comes after talks in the Greek government failed over the issue of reduction in pension benefits demanded by international creditors.

An Empowered Group of Ministers (EGoM) of the central government has relaxed the norms governing the export of rice from the country. The ministers agreed to allow export of non-basmati rice up to four million tones from India and also agreed on reducing the minimum export price of basmati rice to $ 700 a tonne from $ 900 a tonne.

The relaxing of norms have been welcome by the industry firms, which believe that it will boost exports from the country. Allowing firms in the country to become suppliers again after years of regularity restrictions will boost the country's profile as a major export hub for the commodity.

Standard and Poor's (S&P) has said that the risk factors for India's sovereign credit rating could become negative this year.

S&P said that the rating might move to negative due to the issues faced by the country on domestic and global fronts. The rating agency pointed out that it is unlikely to or revise its `stable' outlook on the investment grade `BBB-' long-term sovereign credit rating for the country in the near future.

New Delhi, Feb 7 - The Indian economy is expected to grow by 6.9 percent in the current fiscal, the slowest in three years, the government said in a statement Tuesday.

Fragile global economic conditions, high interest rates and the government's inability to push through key reforms has stifled growth.

India's Union Finance Minister Pranab Mukherjee has said that that country might have to settle for GDP growth of 7 per cent this year.

He said while speaking toa television channel that the country's GDP growth ahs been 7.3 per cent and the two quarters are unlikely to have substantial improvement and thus the GDP growth for the year is expected to be around 7 per cent.

The Minister of State in the Prime Minister's Office V Narayanasamy has clrified that the central government has decided to scrap the agreement between the Antrix Corporation and Devas Multimedia due to security reasons and not because of the alleged loss of revenue to the government.

Narayanasamy also said that the government is not discriminating between the scientists from the space sector and Indian Administrative Service (IAS) officials and will take appropriate punitive actions against those responsible for wrongdoing.

The Indian rupee has strengthened by 9 paise to the level of 48.60 against the US dollar in the early morning trade this morning in the on the Interbank Foreign Exchange market.

The increase was mainly due to increased inflows of foreign funds as well as the strengthening of the Euro against the US dollar in international markets, according to the foreign exchange dealers.

India's Union Finance Minister Pranab Mukherjee has said that the upcoming national budged for the year will focus on higher growth and also aim to keep inflation, fiscal and revenue deficits at manageable levels.

Mr. Mukherjee has appealed to the corporate leaders in the country to help revive the growth in the country. The industry has urged the finance minister to take steps to boost investment in the country and put forward new reform measures.

The power generating companies and coal traders in the country are seeking clarification on the move by Coal India Limited (CIL) involving withdrawal of the price rise in coal as well as on how the gross calorific value (GCV) mechanism would prove to be cost neutral to them.

Coal India had proposed a new pricing mechanism that involved linking the prices to the quality of coal. According to estimates, the new pricing policy brought in by the coal monopoly would have resulted in the coal to be become dearer by 12-15 % for the state-owned and private power utilities in the country.

British Prime Minister David Cameron has said that he would be ready to do 'everything he can' to encourage the Indian government to reconsider its decision to buy 126 Rafale fighter jets after defeating UK-backed Eurofighter Typhoon aircraft.

The Indian authorities have finalized the Rafale fighter of Dassault Aviation for its $10.4 billion medium multi-role combat aircraft (MMRCA) deal, according to the French company.

The Prime Minister's Office has intervened to bring an end to the standoff between the Custom department and the special economic zone (SEZ) authorities for carrying out inspections of cargo at the International Container Transshipment Terminal (ICTT) at Vallarpadam.

The intervention is expected to offer a solution to the problem and bring an end to the conflict. The two have been in disagreement ever since the ICTT was commissioned. The Customs argues that it should be given the right to inspect transshipment cargo that is not acceptable to the SEZ.

According to some reports, the oil companies in India have reduced the price of aviation turbine fuel (ATF) by as much as Rs. 1,974 per kilolitre or 3.02 per cent to the level of Rs 62,908 per kl, bringing some relief to the cash-strapped aviation firms in the country.

C Rangarajan, the chairman of the Prime Minister's Economic Advisory Council (PMEAC) has said that the central government is not likely to achieve its 4.6% fiscal deficit target for the financial year.

While deceiving a lecture on 'The Indian Economy: Concerns and Prospects' on the ASSOCHAM Foundation Day, he said that it might be difficult to achieve. He added that the it is important that deficit remains close to this level to maintain credibility.

India’s HSBC Markit Purchasing Manager’s Index (PMI) grew to57.5, growing at its fastest pace in eight months in January.

The Index that is widely followed indicator of manufacturing activity in an economy, grew mainly due to increased demand from the domestic as well as foreign markets. Leif Eskesen, economist at HSBC said that the manufacturing activity in the country rebounded in January backed by higher demand and this indicates a recovery in sentiment in recent months.