29/02/2016 World Business Report

Those are the latest headlines from BBC World News.

Now for the latest financial news with

What does the Indian government have up its sleeves to boost

-- It's budget day today - we'll be live in Dehli.

As Iran's first elections since the lifting of the embargo are over,

What did the G20 meeting really achieve? We will look into that too.

India is enjoying its economic status - it is the only so called

BRIC nation that is in good economic health and it's overtaking

China to become the world's fastest-growing major economy.

But that doesn't mean India hasn't got some serious

The Finance Minister is about to present the annual budget with many

hoping Arun Jaitley will do something to simplify the nation's

complex tax system, create jobs and make India more business-friendly.

The economy grew 7.3% in the last quarter of 2015

and the IMF predicts growth of 7.5% for this year to 2017.

But many economist doubt India will achieve that.

To reach growth targets, Mr Jaitley may abandon plans to cut

the budget deficit to 3.5% of GDP in the coming financial year.

Prime Minister Narendra Modi has struggled to get reforms on tax,

labour and land acquisition past the opposition - all vital to make India

And the government needs to do more to create jobs

for the 1 million young Indians who enter the workforce each month.

Yogita Limaye will be covering it for us throughout the day and she

joins us live from outside the Indian Parliament building in Delhi.

Nice to see you. Has he started to present his budget? No, we are

expecting that to start any minute now. Parliament has begun and we

should hear him making a speech soon. Behind me is the finance

ministry building where the budget document is prepared. While we wait

to listen to what is actually in that document I can tell you how it

is made. They are serious about keeping it secret. Finance ministry

officials are locked in for ten days until they finally make the budget

so no one goes home and so the document is not leaked. They cannot

leave at all. That is the spending plan that Arun Jaitley will present

in parliament today. Of course, the big challenge before him is how to

balance the expenses and revenues, where can India earn money to keep

spending and pushing back into the economy. And what are people saving

to due in the run-up to this, I know you've spoken to key business

leaders -- you. One of the key things leaders have told me is since

private investment is not really kicking off, they are not able to

make the investments here. What the economy needs is for the government

to spend more money on things like infrastructure for example, which

can then provide business opportunities, perhaps create jobs

and then there will be a trickle-down effect on the economy

but there are constraints on how much the government can reach into

their pockets because of a lot of expenses, they have to pay $16

billion, the cost of increasing salaries for government employees,

which has to be done once in a decade. And then there are other

expenses which have also gone up this year. They have promised extra

pensions to serving as well as former defence personnel, so it will

be about what ideas they have to earn more money so they can keep

spending more. That speech is expected to start any minute. It

will go on for... Last time it was 1.5 hours. Unlike the Oscars there

is no music to get him to wrap up. Over the next hour we will start to

see what is in it. Thank you so much. Good to speak to you. She is

with us for the duration. I will speak to her later on as the budget

is disclosed. Let's talk about oil now.

Iranians had a crude choice to make this weekend

when they voted in their first parliamentary election since

So, will the elections pose yet more turbulence to the oil market

Venezuelan officials confirmed on Friday that Russia,

Saudi Arabia and Qatar have agreed to meet next month.

Earlier this month, Saudi Arabia and Russia agreed to freeze oil

But there's scepticism over what they can achieve.

As Jeremy Howell explains, the industry is suffering.

Since June 2014 the oil price has fallen by 70%. 250,000 jobs in the

energy sector have been lost worldwide. In the United States

114,000 jobs have gone. America's shale oil drillers have laid off the

most asked. 42 of them went bankrupt last year. -- staff. The oil giants

have also been making cuts. Last year they cancelled 68 major

projects worth $380 billion. They ranged from deepwater drilling in

the Gulf of Mexico to the development of Canada's oil sands.

Shell, BP and Chevron between them are shedding 23,000 staff. It is

estimated that for every one job lost in the oil sector, 3.4 jobs are

lost in the rest of the economy. With me is the international oil

and energy consultant, Nice to see you and thank you for

coming in. Jeromy Miles talking about the situation we've become so

familiar with in terms of the oil market and what they are grappling

with but let's talk about Iran. All of the results aren't counted yet

but so far it looks like President Rouhani's reform programme and the

fact he is getting closer to the West has got the backing in Iran.

Within the Iranian political spectrum so to speak, the moderates

and reformists seem to be doing well but we have to see the final vote.

There are two elections, one for the assembly of experts who ultimately

choose the leader, and one for the parliament, the Islamic Assembly.

But in terms of the President's programme to push ahead with his

plans for increased investment into the economy, increased sort of

business going to and from the West, and what it means for the oil

markets, it looks like there will be no hurdles in the way of that. That

is right. For sure, those in favour of attracting foreign investment and

opening up the market, reducing these monopolies and so on, I think

they are winning, so this is a positive respect for the opening of

the Iranian market in general and of course oil is the major one, with

this new Iranian oil contract intended to attract foreign oil and

gas companies to come and invest both in exploration and in

Brownfield development, which is challenging. More oil coming into

the market but we don't have specific set. These investments will

mean long-term. Iran already has 1 million barrels per day production

capacity and that is not dependent on this. What does it mean for oil

prices? As we heard from Jeremy, the situation is still critical. And of

course we heard that Russia, Saudi Arabia, Qatar and Venezuela are

calling to come together to talk. Market fundamentals have not

changed. Since last year there is excess supply of continuing to come.

Freezing production levels in all oil countries at January levels will

still mean Texas oil is coming. Unless producers get together and

cut supply at earning anything will happen -- excess oil. I -- Iran can

come on with another extra 1 million barrels per day. They said they were

producing as much. So it is right to continue and to bring that on

stream. There is the potential for more oil from Iran. OK. Thank you

for getting up so early for us. It is good to see you on World Business

Report. We shall keep you up-to-date on BBC World News on the situation

in Iran as the votes are counted, as it were.

In other news: Industrial production in Japan has risen for

the first time in three months, according to government data just

out. It rose 3.7% in January but is expected to be a temporary rise.

Retail sales in January fell by 0.1%.

The faltering state of the world economy and turbulent markets

dominated discussion at the G20 summit in Shanghai this weekend.

But finance ministers and central bankers emerged with

few concrete measures, and declared on Saturday that they needed to

look beyond ultra-low interest rates and printing money to shake the

Let's look at the financial markets. A mixed picture emerging across the

board. If we can go to the second screen we can show you how the oil

prices are faring given the long conversation we just had about that.

At the moment the price of oil is up, Brent over $35, light crude is

up slightly as well. That is all for World Business Report. See you in a

moment as we look through the papers.

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