Indian Economy: News and Discussion (Jan 1 2010)

wig · Post by **wig** » 02 Dec 2010 09:16

IST Capital requirement of Public Sector Banks
The Cabinet today approved to provide an additional amount of Rs. 6000 crore, in addition to the Rs. 15000 crore already provided in the Budget 2010-11, to ensure Tier I CRAR (Capital to Risk Weighted Assets) of all Public Sector Banks (PSBs) at 7% and also to raise Government of India holding in all PSBs to 58%. It also approved that the exact amount, mode of capitalization and other terms and conditions would be decided in consultation with the banks at the time of infusion.

The proposed capital infusion would enhance the lending capacity of the PSBs to meet the credit requirement of the economy in order to maintain and accelerate the economic growth momentum.

This additional availability of capital is likely to benefit employment oriented sectors, especially agriculture, micro & small enterprises, export, entrepreneurs etc. in promotion of their economic activities which would, in turn, contribute substantially to the growth of the economy.

During the recent global financial crisis, the Public Sector Banks (PSBs) played a pivotal role in the economy by extending credit to all the productive sectors of the economy. The Government has always given ambitious targets to the PSBs ranging from credit disbursement, deposit mobilization, enhanced business and profitability indicators to financial inclusion. During 2008-09 the advances of PSBs increased by over 25% as against 10% by private sector banks and around 4% by foreign banks.

These banks, in this backdrop, would require capital commensurate with the increase in their Risk Weighted Assets (RWAs). Though the minimum regulatory requirement of Capital to Risk Weighted Assets (CRAR) for the banks is 9%, the Government has mandated a total CRAR of 12% with 8% Tier I Capital. Keeping, all other factors, the Finance Minister, in his Budget speech for the year 2010-11 announced that capital would be infused in the PSBs so that these are able to attain a minimum 8 percent Tier I Capital by 31st March, 2011 Subsequently, Union Cabinet too had approved a sum of Rs.15,000 crore in Tier I Capital Instruments of the PSBs for the year 2010-11.

There are many PSBs where the Government of India's holding is close to 51%. This implies that in case of need, these banks cannot access the capital market for raising additional capital by dilution of Government holding. The present capitalization process of the PSBs has presented an opportunity to the Government to raise its shareholding in the PSBs, specially in those PSBs where the Government's holding is close to 51%. This will enable the PSBs to raise additional capital from the market, in future, without depending upon the Government. An analysis shows that there are ten PSBs where the Government holding is less than 58%.

http://www.pib.nic.in/newsite/erelease.aspx?relid=0

Airavat · Post by **Airavat** » 03 Dec 2010 08:40

IIM Kozhikode to create Indian Business History museum

Vasu · Post by **Vasu** » 03 Dec 2010 11:31

oh, Nouriel Roubini is in New Delhi.

India's Economic Growth May Surpass China's in Next 10 Years, Roubini Says

“I’m very optimistic about India’s future growth” because the economy is driven by domestic demand while China relies more on exports, the New York University professor and chairman of Roubini Global Economics who predicted the global financial crisis said in New Delhi yesterday. “The challenge for India will be to sustain 9 percent growth and at the same time keep inflation under control.”

For the American media though, its all about letting Wal Mart in.

Theo_Fidel · Post by **Theo_Fidel** » 03 Dec 2010 11:40

If we wish to make this happen we must get our savings and investment number to above 40% of GDP.

It is good that MMS, Chidambaram and Mukarjee have kept their eye on this ball. Every thing else is meaningless. Wal-mart can't help us in this.

Not even the corruption, scams, etc. All else is maya.

Interesting video. Worth a full watch.

amit · Post by **amit** » 03 Dec 2010 13:29

A piece of good news:

L&T bags Rs 716 cr order from UAE

Infrastructure major Larsen & Toubro (L&T) said its construction division has bagged a Rs 716 crore order from Abu Dhabi for construction of Sheikh Khalifa Interchange.

The scope of work includes construction of four bridges to be completed in a time span of two years, L&T said in a filing to the Bombay Stock Exchange.

L&T's infrastructure operating company has obtained the order from the Department of Transport, Abu Dhabi after facing stiff international competition, it added.

With this order the company has made a major breakthrough in the international infrastructure segment.

Meanwhile, L&T scrip was trading at Rs 2,015, up 0.19 per cent from the previous close on the Bombay Stock Exchange.

Theo_Fidel · Post by **Theo_Fidel** » 03 Dec 2010 22:24

Sometimes we forget history. We don't remember what our ancestors went through and hence we imagine it was all a golden period. My grand father would tell me stories his great grandfather (lived to be 96) told him of the famines they had seen.

While we can fulminate on the british inefficiency the truth is we came this close to a famine in the 1960's but for PL480 which sent 25% of US food grain to India. Our prosperity and population growth in the modern world is built on our modern agricultural system. Is it perfect. No. Is it sustainable. Open to question.

But it is all we have. The past is too horrific to contemplate.

Last year we had a 35% shortfall in monsoon. Historically this would have meant a horrific famine. Yet none came. Why.

The Durga Devi famine around the 1400's lasted 12 years. When rainfall averaged about 10% below normal.

NSFW!

Remember them and what they went through. This was reality.

Take a look at this chart of monsoon rainfall. The long term 80 year monsoon cycle is clearly visible.
It is also clear that we are at the bottom of the trough right now. There has not been a good surplus monsoon in 25 years!
Three of the worst droughts have happened in the last 10 years. undoubtedly more are to come.

Technically we should be in the midst of a devastating famine by now. Similar to the 1870's famine that killed 1 million in TN alone.

Yet we are not. Thanks to modern agriculture and irrigation.

svinayak · Post by **svinayak** » 03 Dec 2010 23:14

Theo_Fidel wrote:
While we can fulminate on the british inefficiency the truth is we came this close to a famine in the 1960's but for PL480 which sent 25% of US food grain to India. Our prosperity and population growth in the modern world is built on our modern agricultural system. Is it perfect. No. Is it sustainable. Open to question.

The 1960s problem is due to the that generation of the Indian leadership which was western oriented. The national interest was not the primary goal and they wasted that 20 years after independence.
Our colonial subjugation has created Indian leadership/elite which looks at India in the same eyes.

Prem · Post by **Prem** » 04 Dec 2010 01:05

RTTNews) - India's private sector economy expanded to a fastest reading in four months, survey results from Markit Economics showed on Friday. The headline HSBC composite Purchasing Managers' Index rose to 61.3 in November from 58.4 in the previous month. A reading above 50 suggests expansion in the sector.The manufacturing and service sectors recorded a marked expansions in activity in November, the markit said. Manufacturers and services also indicated a sharp rise in new order volumes in the month. Thus, overall employment in the Indian economy increased to a second consecutive month in November."This was a strong showing for the Indian service sector, with activity picking up nicely in November and businesses more optimistic about the future. The pick-up in activity was led by new business and it led to increased hiring."Leif Eskesen, chief economist at HSBC said. "However, prices are going north, highlighting the need for a resumption of monetary policy tightening in early 2011." he added.

http://www.rttnews.com/Content/AllEcono ... Id=1496893

Rahul Mehta · Post by **Rahul Mehta** » 04 Dec 2010 22:21

Theo_Fidel wrote:Last year we had a 35% shortfall in monsoon. Historically this would have meant a horrific famine. Yet none came. Why. ..... Thanks to modern agriculture and irrigation.

Yes. Modern agriculture and irrigation are two imp reasons. But two equally imp reasons are

1. Public Distribution System (aka Ration Card System) created by British in 1940s
2. Procedure of Election (aka Vote Bank Politics)

Rahul M · Post by **Rahul M** » 04 Dec 2010 23:26

>> 1. Public Distribution System (aka Ration Card System) created by British in 1940s

so how come 30 lakh died in the bengal famine of 1943 ?

Sriman · Post by **Sriman** » 04 Dec 2010 23:44

Acharya wrote:
Theo_Fidel wrote:
While we can fulminate on the british inefficiency the truth is we came this close to a famine in the 1960's but for PL480 which sent 25% of US food grain to India. Our prosperity and population growth in the modern world is built on our modern agricultural system. Is it perfect. No. Is it sustainable. Open to question.
The 1960s problem is due to the that generation of the Indian leadership which was western oriented. The national interest was not the primary goal and they wasted that 20 years after independence.
Our colonial subjugation has created Indian leadership/elite which looks at India in the same eyes.

Any specific policies by that generation of the Indian leadership that you believe led to the precarious food situation in the early 60s? Thanks in advance.

PS: Suraj, let me know if such a discussion would be OT for this thread. Will delete my post.

Suraj · Post by **Suraj** » 04 Dec 2010 23:56

Just keep it to economy rather some general rona-dhona or vague conspiracy theories; data in particular - like Theo_Fidel provides - would be very nice

csharma · Post by **csharma** » 05 Dec 2010 00:38

The Economist World in 2011 shows India's GDP in excess of 1.8 trillion dollars. For some reason, IMF, WB, etc always have smaller numbers.

This also means that by 2012 India will a 2 trillion dollar economy.

http://www.economist.com/node/17510318

GDP growth: 8.2%
GDP: $1,832bn (PPP: $4,508bn)
Inflation: 5.8%
Population: 1,202.1m
GDP per head: $1,520 (PPP: $3,750)

Suraj · Post by **Suraj** » 05 Dec 2010 00:48

IMF and WB typically release their numbers in spring/summer, for the previous calendar year. Economist may be reporting data for the most recent 4 quarters.

Prem · Post by **Prem** » 05 Dec 2010 01:10

csharma wrote:The Economist World in 2011 shows India's GDP in excess of 1.8 trillion dollars. For some reason, IMF, WB, etc always have smaller numbers.This also means that by 2012 India will a 2 trillion dollar economy.
http://www.economist.com/node/17510318

As predicted here,right on the nose tip . Reckoning year is 2022 when the Royle Rumble start. Say hello to M3 ( Major 3)

svinayak · Post by **svinayak** » 05 Dec 2010 04:46

Sriman wrote:
Any specific policies by that generation of the Indian leadership that you believe led to the precarious food situation in the early 60s? Thanks in advance.

The 1960s was the decade of the wars starting from 1961 then 1962, 1965, 1967/68, 1971. They had planned it to de stabilize India and keep up the pressure on India to keep it down from progressing long term.
This kept the leadership under constant pre occupation and after 1964- leadership problem.
I dont have the links but if you compare the investment in agri, industry and the need for wartime expenses one can see the problem of allocation and demand for money more than the supply. All the responsibility is not just on the internal but the external wars was also a factor.

216.197.119.113/vikas/vikas-investment.pdf
crawford.anu.edu.au/acde/asarc/pdf/papers/2007/WP2007_03.pdf
http://www.jstor.org/pss/4359290
http://www.jstor.org/pss/4362796

JE Menon · Post by **JE Menon** » 05 Dec 2010 15:52

This is not the thread to continue this discussion. Strongly recommend following Suraj's advise above.

Claims must be backed up by data and the onus of providing that data is on the person who makes the claim.

Theo_Fidel · Post by **Theo_Fidel** » 06 Dec 2010 09:14

Puff piece, but lots of little nuggets of info there.

Interesting thought that at some point Panda too will have to try and make peace with us or lose the business opportunity.

http://timesofindia.indiatimes.com/home ... 045157.cms

India, last frontier for the West

With a GDP of $3.75 trillion (by purchasing power parity), India is already the world`s fourth largest economy after the United States, China and Japan. At an average annual growth rate of 9%, Indian GDP is expanding by around $350 billion every year —equal to Belgium`s entire GDP. By 2020, assuming the current annual growth rate, Indian GDP at $8 trillion will be the world`s third largest —and adding on $800 billion annually, equal to the entire economy of Australia.

Presidents Sarkozy and Medvedev know this. French and Russian think-tanks have given both leaders thick dossiers on the opportunity that is India, circa 2010. Corruption? It`s sometimes easier to deal with systemic bribing. Maoism and terrorism? Russia has Chechnya and France its riotous unions. Power cuts? A chance to sell nuclear energy technology. Terrible infrastructure? The perfect opportunity to get in on the ground floor of the India story. Poverty? The 800 million Indians living on Rs 40 a day will one day be 800 million middle-class consumers buying French and Russian products.

The infirmities Indians rightly fret about are opportunities for foreign firms. In chaos there lies gold —as Western frontiersmen discovered during the California gold rush of 1848 and those that followed in Australia in 1851 and South Africa in 1886. Many a Rothschild and de Beers fortune was built there.

India is different, of course. It has a population of 1.17 billion, parliamentary democracy, the rule of law, a strong culture of entrepreneurship, technology-driven industry and a young, consuming middle class. Most of Europe is ageing, its population shrinking. Russia`s population, for example, is projected to fall from 140 million to 129 million by 2040. Italy, Germany and Scandinavia will see similarly precipitous declines in population. To compound the problem, economic growth rates across Europe are likely to stagnate at an average of 1.5% a year.

India, as France and Russia`s high-tech military establishments know, is now among the world`s biggest defence buyers with a $50 billion shopping budget for 2010-12. Indian companies are Britain`s second largest investors. Bilateral trade with France —$3.53 billion in the first six months of 2010 —is growing at 20% annually. Though visiting Chinese Premier Wen Jiabao will be closely questioned in the next fortnight on Pakistan-occupied Kashmir and Tibet, Beijing is keener to emphasize business ties, including Shanghai Electric`s agreement to sell Reliance Power 36 coal-fired plants for $8.29 billion. A study by the Confederation of Indian Industry (CII) estimates that India will soak up investment of $2.70 trillion over the next five years, including $1 trillion in infrastructure.

Ambar · Post by **Ambar** » 07 Dec 2010 10:12

Sort of generic question but pertaining to India : I just read on Bloomberg that GoI is buying back billions of rupees worth of government bonds.

a) Under what circumstances do governments buy back bonds?
b) Wouldn't such a move upset the bondholders?
c) India has a burgeoning current account deficit,so why this buy back?

Thanks.

abhischekcc · Post by **abhischekcc** » 07 Dec 2010 10:30

^IIRC my economic lessons, govt buyback of bonds is done when it wants to increase liquidity in the market. IOW, this is a stimulus package.

abhischekcc · Post by **abhischekcc** » 07 Dec 2010 10:35

Is this the article you are talking about: http://www.bloomberg.com/news/2010-12-0 ... tives.html

$176 million seems like a very small amount.

This article does not have any noteworthy news. Looks like the journo wrote it for the sake of meeting his quota

jamwal · Post by **jamwal** » 07 Dec 2010 11:06

PF interest rate hiked by 1 percentage point to 9.5%

In a bonanza for over five crore employees in the organised sector, the Employees Provident Fund Organisation (EPFO) on Wednesday decided to raise interest rate on their retirement savings by 1 percentage point to 9.5% for 2010-11. The EPF rate has been 8.5% since 2005-06.

The steep hike would give enough returns to cover for inflation that has been in double digits for the five months till July. The wholesale price index (WPI) based inflation fell to 8.5% in August.

Ambar · Post by **Ambar** » 07 Dec 2010 11:22

abhischekcc wrote:Is this the article you are talking about: http://www.bloomberg.com/news/2010-12-0 ... tives.html

$176 million seems like a very small amount.

This article does not have any noteworthy news. Looks like the journo wrote it for the sake of meeting his quota

Here : http://www.bloomberg.com/news/2010-12-0 ... -sale.html

and here : http://www.bloomberg.com/news/2010-10-2 ... -says.html

The target is to buy back 2.7 billion$ of bonds,which is a significant amount in my opinion.Monetization through one's own central bank is not a good sign or is it?

Suraj · Post by **Suraj** » 07 Dec 2010 11:41

It may also be a reflection of surplus cash on the part of GoI, thanks to successive quarters of ~9% GDP growth this fiscal (both quarters reporting growth above original estimates), in addition to continuing healthy disinvestment proceeds. There's an existing fiscal year borrowing target based on GoI's spending plan announced during Budget 2010. Perhaps they've just figured that the originally planned borrowing programme is unnecessary based on revenue/capital receipts, and therefore have chosen to resort to bond buybacks with an eye on further lowering the fiscal deficit.

disha · Post by **disha** » 07 Dec 2010 11:47

Ambar wrote:The target is to buy back 2.7 billion$ of bonds,which is a significant amount in my opinion.Monetization through one's own central bank is not a good sign or is it?

One effect will be to increase the savings rate since it is guaranteed that upto 2.7 billion $, government has put a floor on the rate and hence any rate for savings will be higher than that. Further, it mops up that much money from the market, reducing the money in circulation hopefully reducing the inflation.

disha · Post by **disha** » 07 Dec 2010 11:53

abhischekcc wrote:^IIRC my economic lessons, govt buyback of bonds is done when it wants to increase liquidity in the market. IOW, this is a stimulus package.

Depends upon which part of government issues the bonds and which part buys back. Let us say RBI mops up all that money and sends it to Indian mint to destroy it, there is net liquidity. As it is Indian mint depends upon the Pacquis to print the necessary cash

abhischekcc · Post by **abhischekcc** » 07 Dec 2010 12:22

From the above article:

The move is part of plans to buy back a combined 285.5 billion rupees of bonds maturing in 2010 and 2011, which was announced by the finance ministry earlier yesterday.

Looks routine to me

Vasu · Post by **Vasu** » 07 Dec 2010 13:18

Whats not routine is Mr. Subbarao's comments that India's banks are operating at very high NIM's. All banks are taking a hit at the bourses. Basically whats happened is that the banks have raised the deposit rates, and have been asked to keep the lending rates the same, effectively increasing savings and hence lending. Banks valuations will go down considerably.

Theo_Fidel · Post by **Theo_Fidel** » 07 Dec 2010 13:28

disha wrote: As it is Indian mint depends upon the Pacquis to print the necessary cash

I realize it is sarcasm but lets not undermine confidence in our currency so casually. No need for own goals.

In the mean time...

http://www.alsosprachanalyst.com/econom ... inese.html

Is the 21st century really Chinese?

If working population do not grow, the only way for the economy to growth, all else being equal, is increase in productivity by technological advances. It is perhaps still good enough for China to play a catch-up in technological front, but 10 or 20 years later, if China gets as technologically advanced as the United States, both countries have to innovate to increase increase productivity. Well, we know China is good at, put it bluntly, copying others’ technology and produce something which would be sold at one tenth of the price in, say, United States (think about fake iphone). When it comes to innovation on their own, perhaps we have not seen much talents on that front.

This is the key question. But it is the one thing panda seems to think is very easy and is not.

wig · Post by **wig** » 07 Dec 2010 17:17

buoyancy in direct tax collections is an indicator of generation of wealth

17.85% Increase in Direct Tax Collections During April-November Crosses 50% of be Target of Rs.4,30,000 Crore for Current Fiscal
During the period April-November 2010, net direct tax collections stood at Rs.2,16,628 crore, up from Rs.1,83,822 crore during the same period last fiscal, registering a growth of 17.85 percent and crossing 50 percent of the BE target of Rs.4,30,000 crore for fiscal 2010-11.

Growth in Corporate Income Tax was 22.30 percent (Rs.1,38,461 crore as against Rs.1,13,210 crore), while growth in Personal Income Tax (including STT, and residual FBT / BCTT) was 10.66 percent (Rs.77,768 crore as against Rs.70,278 crore).

Growth of Securities Transaction Tax turned positive for the first time during the fiscal at 0.55 percent (Rs.4,373 crore against Rs.4,349 crore).

http://www.pib.nic.in/newsite/erelease.aspx?relid=0

Rahul Mehta · Post by **Rahul Mehta** » 07 Dec 2010 18:31

buoyancy in direct tax collections is an indicator of generation of wealth
17.85% Increase in Direct Tax Collections During April-November Crosses 50% of be Target of Rs.4,30,000 Crore for Current Fiscal

During the period April-November 2010, net direct tax collections stood at Rs.2,16,628 crore, up from Rs.1,83,822 crore during the same period last fiscal, registering a growth of 17.85 percent and crossing 50 percent of the BE target of Rs.4,30,000 crore for fiscal 2010-11.

Growth in Corporate Income Tax was 22.30 percent (Rs.1,38,461 crore as against Rs.1,13,210 crore), while growth in Personal Income Tax (including STT, and residual FBT / BCTT) was 10.66 percent (Rs.77,768 crore as against Rs.70,278 crore).

Growth of Securities Transaction Tax turned positive for the first time during the fiscal at 0.55 percent (Rs.4,373 crore against Rs.4,349 crore).

Tax collection will increase automatically as rupee supply (m3) increases due to rupee manufacturing, even if there is no growth.

csharma · Post by **csharma** » 08 Dec 2010 10:27

From Economist World in 2011, India's GDP size appears to be at no 9. This seems to be the highest ever on that list. As I was saying earlier, some of the WB, IMF, CIA numbers on Wiki show India at 12th. For example I have a hard time believing that Russian economy was bigger than Indian economy in 2009.

Another key takeaway is that the India's economy in PPP will overtake that of Japan in 2011 and become the third largest economy in PPP terms. In $terms India is certain to overtake Italy by 2012. India has already overtaken Canada a G7 country and will overtake Italy another G7 country. Brazil also seems to be doing well.

All numbers in trillon dollars

US: 14.9
China: 6.46
Japan : 5.62
Germany: 3.127
France: 2.49
UK: 2.4
Brazil: 2.052
Italy: 1.888
India : 1.832
Russia : 1.737
Canada : 1.616

Suraj · Post by **Suraj** » 08 Dec 2010 11:13

I look forward to the day we overtake UK in absolute GDP. It will put an end to a 120-year historical aberration; the only part of us they ought to see on that table is our rear end from far behind

Theo_Fidel · Post by **Theo_Fidel** » 08 Dec 2010 12:19

Little bit of a data dump so bear with me. Still digesting some of this info.

All courtesy of the RBI.

Investment & ICOR. That 8% ICOR blip in 1993 is confusing. You can see the tight correlation between investment & GDP.

Agriculture vs drought. Incredible after allied stuff is added in agriculture grew marginally last year! Take that you professional complainers about Indian agriculture.

But then we come back to earth with our yield figures. Holy cow! look at how low Karnataka and even Gujarat are. Our yield is staggeringly low compared to the world which means we are farming way more land than necessary. It is pretty obvious that we have some very very bad farming practices. That wheat number is skewed as our climate allows double crops in many areas.

Except for 2008 Manufacturing is looking so strong.

Capital goods is soaring. Not sure what this means.

Service. Self explanatory.

Suraj, that savings blip in 2008 was from PSU's. Not sure why.

M3 allocation. Most is going into bank fixed deposits. It has doubled in 4 years to about $200 Billion!

Most money continues to go to industry.

Chart on Imports/Exports. Self explanatory.

Nice chart on invisibles. first I've seen.

Suraj · Post by **Suraj** » 08 Dec 2010 12:24

Theo_Fidel wrote:Suraj, that savings blip in 2008 was from PSU's. Not sure why.

My guess would be losses accruing from refined petroleum product subsidisation when crude oil peaked at ~$150/bbl then.

Theo_Fidel · Post by **Theo_Fidel** » 08 Dec 2010 12:38

Suraj wrote:I look forward to the day we overtake UK in absolute GDP. It will put an end to a 120-year historical aberration; the only part of us they ought to see on that table is our rear end from far behind

In many ways esp PPP we already do. But let me point out two.

Electricity

1947. UK ~ 100,000 MW. India ~ 6,000 MW. Yes that is right. I didn't miss any zero's.
2010. UK ~ 65,000 MW. India ~ 185,000 MW.

Steel production.

1947. UK ~ 25 Million tonnes. India ~ 1 Million Tonnes. Again that is correct.
2010. UK ~ 10 Million tonnes. India ~ 65 Million Tonnes.

wrdos · Post by **wrdos** » 08 Dec 2010 13:02

The UK Electricity in 2010 is less than it in 1947?

Theo_Fidel wrote:
Suraj wrote:I look forward to the day we overtake UK in absolute GDP. It will put an end to a 120-year historical aberration; the only part of us they ought to see on that table is our rear end from far behind
In many ways esp PPP we already do. But let me point out two.

Electricity

1947. UK ~ 100,000 MW. India ~ 6,000 MW. Yes that is right. I didn't miss any zero's.
2010. UK ~ 65,000 MW. India ~ 185,000 MW.

Steel production.

1947. UK ~ 25 Million tonnes. India ~ 1 Million Tonnes. Again that is correct.
2010. UK ~ 10 Million tonnes. India ~ 65 Million Tonnes.

Rishirishi · Post by **Rishirishi** » 08 Dec 2010 14:52

Sounds a bit strange, but could be possible. Most of UK manufacturing has gone. Textiles, steel, products etc.

Theo_Fidel · Post by **Theo_Fidel** » 08 Dec 2010 18:31

Rishi that is not all. Though a bit OT.

Coal.

1947 UK ~ 250 million tonnes. India ~ 20 Million tonnes.

Rail network.

1947 UK ~ 35,000 km. India ~ 45,000 km. both of many gauges. Yes that is right.

Uttam · Post by **Uttam** » 08 Dec 2010 20:19

For once Exports increased faster than Imports, decreasing the rate of increase in trade deficit. Is this happening for the first time? (It may have happened before at smaller base or when there were too many restrictions on imports). If YES, then Is this a turning point for Indian Economy?

Your thoughts please....

November exports up 26.8%

India's exports in November rose an annual 26.8 per cent to $18.9 billion, while imports for the month grew 11.2 per cent on the year to $27.8 billion, provisional data released by Trade Secretary Rahul Khullar showed on Wednesday.

Khullar said the figures could be revised upwards.
India's trade deficit in November stood at $8.9 billion compared with $9.7 billion in October.

India's trade deficit in August had widened to a 23-month high of $13.06 billion and Khullar had said the deficit could touch $135 billion in the current fiscal year to end-March 2011, higher than his earlier forecast for $120 billion.

Asia's third-largest economy is targeting close to 15 per cent export growth in the current fiscal.