Indian Economy News & Discussion - Aug 26 2015

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 04 May 2016 20:00

Singha wrote:Mumbai port run rate for 2016....1.7 mil teu handled..not sure of capacity wiki claims 5 million
Cochin port run rate for 2016...500k teu

I think you are quoting Mumbai port separately from JNPT:
State-owned ports post 4.31% cargo growth in 2015-16
Jawaharlal Nehru (JN) port, India’s busiest container gateway located near Mumbai, loaded 4.49 million TEUs in the year to March. In fiscal 2015, JN port loaded 4.46 million TEUs.

JNPT is currently at almost its maximum 4.5 mTEU capacity. It is currently being expanded to 10 mTEU, with the new terminal due to open in 2017:
JNPT plans $480m expansion with support from DP World
India’s Jawaharlal Nehru Port Trust (JNPT) has announced plans to raise a reported $480 million in foreign loan capital to fund expansion of a six-lane shipping corridor over the next two years.

The plans aim to double capacity of the key evacuation corridor at the port to 12 lanes and dredge the channel to 15 metres to allow access for larger ships, according to reports from India’s Financial Chronicle.

“We are looking at foreign loans since we have a natural hedge in terms of dollar income and the rates are almost seven per cent lower than the domestic rate. This would be a huge saving on our investments,” Neeraj Bansal, deputy chairman of JNPT said.

The work is expected to increase capacity at the port by 5.8 million TEU and will be tied to expansion work at the port’s terminals by operators DP World and PSA. The former is also expected to be closely involved in the channel deepening project as it progresses on its own terminal expansion at the port.

“We expect DP World to start partial commissioning by May 15, 2015 which would add around 400,000-teu to our total capacity of 4.5-million TEU,” Bansal said, adding that a total of 800,000 TEU capacity will be added by the time the project is complete at the end of 2016.


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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 05 May 2016 04:44

This should drive steel production as well:
Odisha iron ore output hits 80MT, highest in 10 years
Iron ore production in Odisha touched an all-time high of 80.86 million tonne (mt) in 2015-16, the highest in last 10 years, recovering from a lowly 47 mt in FY15.

Production witnessed a spurt of nearly 50 per cent as the state government passed swift orders for reopening of many iron ore mines that were under shutdown because of the Supreme Court order. The state orders for extending validity of leases were prompted by the amended Mines and Minerals-Development & Regulation (MMDR) Act.

According to a report released by Religare on the status of mining in Odisha, the state's iron ore production has returned to the level of FY14 when production was 78 mt. Iron ore output in this financial year is expected to look up as the Supreme Court has asked the Odisha government to consider resumption of the balance 102 mining leases.

Moreover, the Odisha High Court, in a recent order, allowed Jindal Steel & Power Ltd (JSPL) to lift inventory (10 mt) from the Sarda Mines.

Cabinet approves flexible coal use policy, to save Rs.25,000cr, cut generation cost by 50p/unit
The Union Cabinet today approved a proposal to relax norms for utilisation of domestic coal aimed at bringing down cost of power generation.

The move, Goyal said, will help reduce cost of power generation by 40-50 paise per unit. He expects that this will lead to savings of Rs 25,000 crore per annum in 4-5 years.

Earlier, the government has allowed swapping of coal mines by users so that transportation cost can be reduced for generation of power.

The government has allowed coal swapping in 19 blocks which brought down the cost of power generation as users were able to source the dry fuel from mines located nearer to them.

Amendment to Atomic Energy Act to enable equity funding of nuclear power sector:
Rs 3,000 crore per annum plan to boost nuclear power sector
To increase investment in nuclear power generation, the government is preparing a comprehensive plan spanning over the next 15-20 years with a proposed budgetary allocation of Rs 3,000 crore per annum, Lok Sabha was informed on Wednesday.

A recent amendment to the Atomic Energy Act 1962 has created a provision enabling Nuclear Power Corporation of India to seek equity participation from other central PSUs for atomic power projects and this will help in infusing additional capital, Minister of State for the Department of Atomic Energy, Jitendra Singh, said in a written reply in Lok Sabha.

Govt saves Rs 21,000 crore in LPG subsidy
The government could save Rs 21,672 crore of liquefied petroleum gas (LPG) subsidy outgo in the past two financial years (2014-15 and 2015-16), thanks to the implementation of the Direct Benefit Transfer in LPG (DBTL) scheme that eliminated ghost or duplicate connections.

Oil ministry’s joint secretary Ashutosh Jindal, who was also present on the occasion, said the savings, thanks to DBTL, stood at Rs 7,000 crore in FY16, compared with Rs 14,672 crore in the previous financial year, due to a slump in crude oil prices.

Services PMI falls to 4-month low in April
Services PMI fell to 53.7 points in April from 54.3 in March as new business grew slower than previous months. A reading above 50 is expansion and the one below is contraction. PMI for services was at a 19-month high at 54.3 in January, which was maintained in March.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Austin » 05 May 2016 11:26

Much-anticipated monsoon may not solve India's drought crisis
http://edition.cnn.com/2016/05/05/asia/ ... index.html

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 06 May 2016 03:51

Lok Sabha clears bankruptcy code
Amid a surge in bad loans, the Lok Sabha on Thursday approved a Bill to overhaul century-old laws that regulate insolvency. The proposed Insolvency and Bankruptcy Code aims to slash the time it takes to wind up a company or recover dues from a defaulter. The Bill will become a law once the Rajya Sabha clears it.

The proposed uniform law will streamline the existing insolvency process which depends on 11 separate laws. Minister of State for Finance Jayant Sinha, while answering queries from fellow lawmakers, described the Code as "transformational" and said it would help India improve its ranking in the World Bank survey on 'ease of doing business'.

RBI proposes relaxation of bank licence requirements
The Reserve Bank of India (RBI) has issued proposals for the relaxation of requirements for banking licences in the latest effort to boost a sector struggling with $100 billion of stressed debt that is choking the financial system and hitting economic growth.

With only about half of India's population having access to financial services, particularly in rural areas, the RBI is keen to extend the sector's reach and the new proposals aim to encourage investment in new lenders.

The draft guidelines announced on Thursday include a move to allow large industrial companies to buy up to 10% stakes in new lenders.

The central bank also proposed a lowering of the minimum ownership level for companies or people setting up lenders under a financial holding structure to 51% from 100%.

The RBI emphasised, however, that it would remain cautious when granting licences.

Govt to build 1,000 km of expressways for Rs 16,680 crore
To ensure quicker connectivity, the government plans to build 1,000 km of expressways at an investment of Rs 16,680 crore under its NHDP programme, which include the Vadodara-Mumbai project.

"The central government has approved a plan for constructing 1,000 km of expressways under the National Highways Development Project (NHDP) phase-VI at a cost of Rs 16,680 crore on design, build, finance, operate and transfer (DBFOT) basis," Minister of State for Road Transport and Highways Pon Radhakrishnan told the Lok Sabha in a written reply.

The main criterion for the selection of expressway corridors is traffic volume, with the government approving the high-density corridor ie Vadodara-Mumbai (400 km) for feasibility study, he said.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Singha » 06 May 2016 18:47

Jayant Sinha ‏@jayantsinha 5h5 hours ago
In FY 2015-16, 94% IT returns were filed online. 2.1 cr refunds worth Rs 1.22 L cr given!
Using technology to increase taxpayer friendliness

Jayant Sinha ‏@jayantsinha 11h11 hours ago
For the first time, strict action taken against defaulting & nonperforming Revenue officials.
72 dismissed, 33 retired prematurely!

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Austin » 06 May 2016 19:49

Rupee At Big Risk If Raghuram Rajan's Term Not Renewed: CLSA

http://profit.ndtv.com/news/economy/art ... ome-latest

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 06 May 2016 23:33

India received $40.82 billion FDI till December in FY16: Government
Foreign Direct Investment (FDI) inflows stood at $40.82 billion till December in the fiscal 2015-16, Parliament was informed today. For 2014-15, FDI inflows were $44.29 billion, up 23 per cent as compared to the previous fiscal.

Giving details in Parliament about FDI investment in the last six years, Minister of State for Finance Jayant Sinha said foreign investment in most of the sectors is already under automatic route.

In 2013-14, FDI inflows were up 5 per cent at $36.05 billion. However, inflows dropped by 26 per cent in 2012-13 to $34.30 billion, after having grown by 34 per cent in 2011-12 to $46.56 billion.

But in 2010-11, the FDI inflows were down 8 per cent to $34.85 billion.

“Government approval is required for only few sectors which are listed in the consolidated FDI policy,” Sinha said in a written reply to Lok Sabha.

Government looking to create a fund for steel firms under NIIF
Government is looking at creating a fund under India’s first sovereign wealth fund, NIIF, which will address capital requirements of domestic steel companies.

The government in December created the Rs 40,000-crore National Investment and Infrastructure Fund (NIIF) as an investment vehicle for funding commercially viable greenfield, brownfield and stalled projects.

“Government is also working on operationalising National Infrastructure Fund, the sovereign fund, and that is envisaged as a mother fund and within that there will be specific sectoral funds.

Direct benefit transfer to be used for fertiliser subsidy: Government
Government today said it plans to extend the direct benefit transfer (DBT) scheme for health insurance, even as trials are on to use the programme for fertiliser subsidy to check leakage of funds.

Responding to queries in Lok Sabha during Question Hour, Minister of State for Finance Jayant Sinha said government intends to use the DBT scheme for health insurance and pensions in the coming days in collaboration with states.

For fertiliser subsidy, trials are on in some places to transfer funds through DBT to check leakages by bringing in restrictions, he said.

Modi govt to push big labour reforms, including hire & fire norms
The government is firm on achieving all it can on labour reforms despite political hurdles. In spite of protests from unions, it is unlikely to relent on the proposal to allow units employing up to 300 to lay off workers sans government approval. It is also in no mood to withdraw proposals to make it tougher to form trade unions and bar outsiders as union leaders.

Labour minister Bandaru Dattatreya told FE that two labour-related codes — one on wages and another on industrial relations — would be introduced for “discussion and passage” in the monsoon session of Parliament. When asked about the aforementioned contentious proposals, he said: “By and large the provisions will remain the same” as in earlier drafts, hinting that moves to give more labour flexibility to the industry are afoot.

While firms employing more than 100 people now require government’s prior approval for labour retrenchment, the minimum employee strength to set up a trade union is 10. The draft code on industrial relations proposes to bar outsiders from being leaders of trade unions in organised-sector units, in what could end the practice of professional trade union leaders, seen by many as detrimental to the interests of both industry and workers.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Austin » 07 May 2016 08:37

India knocks China from top of FDI league table

http://www.ft.com/cms/s/3/94351bda-0620 ... 2c284.html

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 07 May 2016 10:47

From the above report:

Code: Select all

Greenfield investment, 2015 — selected EMs*
Country   Capex, $bn**   Projects
India         63.0   697
China         56.6   789
Indonesia     38.5   166
Mexico        24.3   351
Brazil        17.3   268
Russia        11.6   179
Turkey        5.8    147
Egypt         14.5   59
Saudi Arabia   9.8   78

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Kakkaji » 08 May 2016 03:28

Crony capitalists' wealth in India shrinks, says The Economist

With the government taking several measures to clean up the system, the wealth of “crony capitalists” in the country has dipped, according to a study by The Economist.

The study claims that from its peak of 18 per cent of gross domestic product (GDP) in 2008, the crony capitalists’ wealth is now down to three per cent. Its index on crony capitalism across the world is based on work by Ruchir Sharma, the head of the emerging markets teams at Morgan Stanley Investment Management, and Aditi Gandhi and Michael Walton of Delhi’s Centre for Policy Research, among others.

The Economist said the crony index is the idea that some industries are prone to “rent seeking” — when the owners of an input of production, land, labour, machines, or capital, extract more profit than they would get in a competitive market. Cartels, monopolies and lobbying are common ways to extract rents. Industries that are vulnerable often involve a lot of interaction with the state, or are licensed by it: for example, telecoms, natural resources, real estate, and defence.

India Inc has successfully managed to stop foreign direct investment in several sectors, including insurance and defence, and later made huge capital gains by selling their stake to foreign companies once the sector was opened up.


So, the 'Cow + Marx' people have been able to release about 15% of GDP from the unproductive to the productive part of the economy. 8)

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Yagnasri » 08 May 2016 05:58

Austin wrote:Rupee At Big Risk If Raghuram Rajan's Term Not Renewed: CLSA

http://profit.ndtv.com/news/economy/art ... ome-latest


Very true. We dirty Indians need Gora educated green card holding Rajan to save our poor, starving and half-naked population from evil local bankers.

Efforts now on to keep Rajan in India. Am MMS in making? I am not sure. I will be bit surprised if he is allowed to continue.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby uddu » 08 May 2016 06:30

Nah..There is no dearth of talent in India. Even Avinash Chander did not get an extension.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Prem » 08 May 2016 08:54

Foreign Currency reserves Crosses 363 Billion. Unspoken target is 1 Trillion to be achieved.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby AbhiJ » 08 May 2016 09:14

Cut in coal imports may save Rs 40,000 crore this fiscal: Piyush Goyal

"Last year, the reduction in foreign exchange outgo because of import of thermal coal was Rs 28,000 crore and this year we are targetting Rs 40,000 crore," the minister said.

There is not a single coal-based power plant in the country which has critical coal stock position, Goyal said.

"The thermal power plants in the country have an average coal stock of 26-27 days. The target before us is that there should be no shortage of coal in any coal-based power plant," the minister added.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Yagnasri » 08 May 2016 09:18

At least there is one plant I know of in Chattshgarh, which is without coal. More due to the plant people stupidity I guess.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby hanumadu » 08 May 2016 13:45

Yagnasri wrote:At least there is one plant I know of in Chattshgarh, which is without coal. More due to the plant people stupidity I guess.

Is it PSU or private? Private companies are still facing fuel shortages.

Melwyn

Re: Indian Economy News & Discussion - Aug 26 2015

Postby Melwyn » 09 May 2016 06:53

Very good article summing up the good work of Modi government. Can't find the achievements thread.

Arvind Panagariya: The turnaround in infrastructure

I recently wrote that the policy changes the Narendra Modi government has been putting in place promise to return the economy to miracle growth in the near future. Today, I document the turnaround in one important area - infrastructure. More will follow soon.

Let us begin with roads. The government has achieved a breakthrough, unblocking previously stuck road projects, while also accelerating the initiation of new projects. Of the total number of stuck projects worth Rs 3.8 lakh crore, this government has already unblocked Rs 3.5 lakh crore worth of projects. Consequently, road construction has risen from 8.5 kilometres a day during the last two years of the previous government to 11.9 kilometres in 2014-15 and 16.5 kilometres in 2015-16. The construction of national highway projects awarded has risen from 3,500 kilometres in 2013-14 to 8,000 kilometres in 2014-15 and 10,000 kilometres in 2015-16.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 09 May 2016 08:46

Green shoots in more and more areas, this time corporate revenues:
Q4 corporate results show signs of recovery, fastest growth in 6 quarters
After a poor report card during the first nine months of financial year 2015-16, corporate results for the fourth quarter offer hope of a recovery.

The combined net sales of 350 companies, which have declared results so far, were up 5.6 per cent year-on-year (y-o-y) for the quarter ended March 31, 2016. This marked the fastest growth in the past six quarters.

Before this, these companies had reported a decline in revenue for four consecutive quarters.

The combined net profit (adjusted for exceptional gains and losses) was up 16.9 per cent y-o-y, growing at the fastest pace in the past six quarters. The reported net profit was, however, down 8.8 per cent y-o-y, resulting in a decline in companies' underlying earnings per share.

This was largely because of Cairn India, which took an impairment charge of Rs 11,674 crore on account of lower crude oil prices and adverse long-term impact of revised cess on its Rajasthan assets.

Experts divided over plan to move Union Budget to December
When Prime Minister Narendra Modi directed the government's seniormost bureaucrats to present innovative ideas as part of a 'Transforming India' initiative, one was to advance the date of presentation of the Union Budget to December 31, from the last day of February.

Upside

Finance Bill, incorporating the Budget proposals, could be passed by February or March
Government departments, agencies and state-owned companies would know their allocations right from April 1
Would help the private sector to anticipate government procurement trends and evolve their business plans

Downside

Lack of comprehensive revenue and expenditure data
Planning depends on the monsoon forecasts for the coming year, making the whole exercise more difficult

States sell Rs 100,000 cr of electricity bonds in first 3 weeks: Goyal
Union Power Minister Piyush Goyal today said within a short span of three weeks the states could sell bonds worth Rs one lakh crore.

As per the schedule we will have another round of sale of state government bonds and discom bonds backed by state government guarantees this fiscal. We have already sold Rs one lakh crore worth of such bonds. The plan is all made out and from time to time these will be approved by the Reserve Bank as per a set procedure, Goyal said one the sidelines of the convocation of the Tata Institute of Social Sciences here.

On coal availability, he said there was sufficient quantity of stock to the extent that in the past four months the government had to regulate production.

He further said to ensure energy security, the government will cut down coal imports further this year and hope to save about Rs 40,000 crore from this.

So far, 10 states, including those with heavily indebted discoms like Uttar Pradesh, Haryana and Rajasthan, have signed up for the Uday scheme, launched last year to bail out the broke state electricity boards (SEBs). But highly broke SEBs like that of Tamil Nadu which has huge debt of Rs 80,000 crore, has refrained from embracing the scheme.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Sachin » 09 May 2016 12:30

The biggest ever fire sale of Indian corporate assets has begun, to tide over bad loans crisis
Mallya seems to be a baby when compared to the other stalwarts listed in this report. All of them are now trying to pay back the loans. Would that affect any of the bigger schemes launched by GoI, for which contracts were given to these big companies? For eg: Vizhinjam Port is to be built by Adaani group.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Austin » 09 May 2016 15:15

Union power minister Piyush Goyal on how he is reviving the ailing power sector

"I Am Confident That By 2019, We Will Be ­Saving $27 Billion Annually"

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 09 May 2016 21:01

Passenger car sales inch up 2% in April, total car+UV sales up 11%: SIAM
Domestic passenger car sales inched up by 1.87 per cent last month, industry data showed on Monday.

According to the data furnished by the Society of Indian Automobile Manufacturers (SIAM), passenger car sales during April stood at 162,566 units against 159,588 units in the corresponding period of last year.

However, sales of total passenger vehicle, which include cars, utility vehicles and vans surged by 11.04 per cent to 242,060 units from 217,989 units sold in April, 2015.

The total passenger car sales rose on the back of healthy demand for utility vehicles (UVs) and vans.

The utility vehicles sales rose by 42.83 per cent to 62,170 units, whereas the off-take of vans increased by 16.46 per cent to 17,324 units.

Rs 43,000 crore lies in inoperative EPF accounts: Govt
About Rs 43,000 crore is lying in inoperative Employees' Provident Fund accounts and interest would be credited to such accounts, government said on Monday.

Minister of State for Labour and Employment, Bandaru Dattatreya told Lok Sabha that 118.66 lakh claims were settled by the Employees' Provident Fund Organisation (EPFO) in 2015-16, adding that 98 per cent of them were settled within 20 days.

"There is around Rs 43,000 crore in inoperative (EPF) accounts," Dattatreya said during Question Hour.

Listing the steps taken, the Minister said it has been recently decided to credit interest to the inoperative accounts.

DBT reduces zero balance PMJDY accounts
With all government welfare schemes switching to the direct benefit transfer (DBT) regime soon, the Centre is hopeful that the high incidence of zero-balance accounts in the Pradhan Mantri Jan Dhan Yojana will come down substantially.

“With more people becoming beneficiaries under the DBT and receiving cash transfers, there should be a significant reduction in zero balance or no-activity accounts under the PMJDY,” said a senior government official.

Insurance cover under the Pradhan Mantri Jan Suraksha Yojana is also linked to these accounts and will improve the transaction status, the official added. The issue of zero balance accounts has dogged the government’s ambitious financial inclusion scheme that was launched in August 2014, with critics pointing out that bank accounts are not sufficient if there is no activity associated with them. Of the 21.68 crore bank accounts opened under the PMJDY scheme, a quarter or 26.39 per cent have zero balance. In the past one year, zero-balance accounts have substantially reduced from a level of 45 per cent in September 2015 with schemes such as DBT PAHAL or cash transfer for cooking gas kicking off.

Indirect tax collections grow 41% in April
Indirect tax collections witnessed an increase of 41 per cent to Rs. 64,394 crore mainly on the account of spurt in central excise realisation. Revenue Secretary Hasmukh Adhia said excise duty mop up in April spurt by 70 per cent to Rs. 28,252 crore as against Rs. 16,546 crore in the year-ago month.

“Provisional revenue figures for indirect tax for April 2016 are Rs. 64,394 crore, a 41 per cent growth over April 2015 of Rs. 45,417 crore,” Adhia tweeted.

He further said that after discounting for the additional resource mobilisation measures taken in the Budget, the growth in indirect tax collection was 17 per cent in April.

As regards collection of customs duty, Adhia said there was 25 per cent increase to Rs. 17,945 crore in April, as against Rs. 14,286 crore in the same month a year ago.

Besides, service tax collections grew by 27 per cent to Rs. 18,647 crore in April 2016, as against Rs. 14,585 crore in the same month last fiscal.

FDI tide turns in India’s favour
Foreign direct investment (FDI) inflows into India are on the rise. According to the IMF, FDI refers to “an investment made to acquire lasting interest in enterprises operating outside of the economy of the investor.” FDI is considered one of the most stable forms of non-debt creating capital inflows, with significant positive effects on the economy.

In the case of India, FDI inflows have risen rapidly, from $24 billion in 2012 to $44.2 billion in 2015 — a seven-year high. This increase is also fairly broad-based. It is not just the e-commerce (trading) sector that has received more inflows; other sectors such as computer software and hardware, construction, services, autos and the telecom sectors also account for a large share of the increase.

Interestingly, even though China continues to attract larger FDI inflows than India in absolute terms, India has started to close the gap, when FDI is measured as a share of GDP. FDI inflows into China have moderated to 2.3 per cent of GDP in 2015, from 2.6 per cent in 2014. During the same period, FDI inflows into India rose to 2.1 per cent from 1.7 per cent.

Additionally, one could also argue that the quality of FDI inflow into India is much better. Over the last decade or more, China has accumulated a large stock of FDI. As a result, almost half of the FDI inflow into China includes retained earnings. In contrast, almost three-quarters of FDI inflows into India are fresh equity infusions.
The resurgence of FDI inflows into India can be traced to both domestic pull factors as well as global push factors. On the domestic front, India has emerged as one of the fastest-growing Asian economies, while China’s growth has stumbled due to large overcapacity and high leverage.

More importantly, ongoing economic reforms in India are likely attracting FDI flows. FDI limits have been increased in various sectors such as defence, railway infrastructure, insurance and construction (to name a few). Incremental reforms aimed at improving the ease of doing business and to improve public infrastructure have perhaps also encouraged long-term investors.

What may also have helped are pull factors such as rising labour costs in China. Rising costs in China have partly pushed multinational corporations (MNCs) into shifting production base to South-East Asia, such as Vietnam. India, belatedly, is possibly benefiting from production facilities moving out of China.

India has not been a part of the Asian supply chain in the past. Because of their widespread operations, MNCs have tended to segregate their production process into various stages, with different countries specialising in different stages based on their relative comparative advantage (vertical FDI). This led to a rapid rise in trade of components and parts across the supply chains located in various Asian countries. India could become a part of this supply chain in years ahead.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Prem » 11 May 2016 06:40

India Central Banker Rajan Says Unsure If Returning To Post
http://www.forbes.com/sites/kenrapoza/2 ... 8847b1299d

India’s central bank governor Raghuram Rajan could be back in September, but no one will know unless someone in Delhi asks him to stick around.The Reserve Bank of India (RBI) governor’s term ends in three short months. The Economic Times asked Rajan this weekend if he was coming back and he said, “First I have to be asked. ‘Do you want to continue’? That I can answer.” Only, he did not answer it. He only said that if he is not given another three years then he would work in academia and not in the markets.Rajan’s Plan A sounds like it’s remaining at the RBI. Others inside India have speculated that he might replace Arun Jaitley at Finance Minister.“That would be awesome,” says Vladimir Signorelli, founder of macro economic research firm Bretton Woods Research. “Jaitley has been kind of wet blanket.
“I’d like to see Rajan’s term get extended,” says Conrad Saldanha an emerging market fund manager with Neuberger Berman in New York. “Modi has been practical on Rajan but has yet to say whether or not he’s keeping him there. The decision belongs to him,” Saldanha says of Prime Minister Narendra Modi.Rajan was voted the world’s best central bank governor by Euromoney magazine in 2014. Having successfully controlled India’s inflation and fought back corporate demand for lower interest rates, Rajan quickly became a market favorite with a clear vision for monetary policy. The Wisdom Tree India (EPI) exchange traded fund rose 24% in the first three months of his tenure.Fund managers are also bullish for the time being. But that depends on Rajan and for Modi and Jaitley to pass key fiscal measures such as corporate tax cuts and the goods and services tax law. Both have been mentioned by the government for the past two years, but nothing concrete has come from it despite Modi’s efforts to convince rival politicians.“We are quite a bit overweight and building up recently,” says Saldahna. “We peeled back after the 2014 elections because of all the Modi euphoria and are now building up again.”.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Austin » 11 May 2016 08:52

India Has Trade Deficit With China, 26 Other Countries For Last 3 Years

http://profit.ndtv.com/news/economy/art ... rs-1404470

RBI Governor Rajan Says 'Helicopter Money' No Panacea

http://profit.ndtv.com/news/economy/art ... ea-1404886

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby gakakkad » 11 May 2016 17:20

Austin wrote:India Has Trade Deficit With China, 26 Other Countries For Last 3 Years

http://profit.ndtv.com/news/economy/art ... rs-1404470



i don't get what is new here..baring one or 2 years since independence India always had -ve balance of trade..what does rNDTV mean by trade deficit in last 3 years..

however further in the (f)article-
In 2015-16, India's trade deficit fell 14 per cent to $118.35 billion.

Prem
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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Prem » 11 May 2016 21:07

gakakkad wrote:
Austin wrote:India Has Trade Deficit With China, 26 Other Countries For Last 3 Years
however further in the (f)article-
In 2015-16, India's trade deficit fell 14 per cent to $118.35 billion.

Where is 60+ Billion saving in Oil Import Bill?

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Austin » 11 May 2016 21:35

India to sue US over WTO rules violation

https://www.rt.com/business/342664-indi ... violation/

Delhi will file 16 cases against Washington for violating WTO treaties, local media report. India says some American programs in the renewable energy sector are “inconsistent” with global standards.

When asked whether Delhi is planning to “to file 16 cases against the US for violating WTO treaties," Commerce and Industry Minister Nirmala Sitharaman replied positively.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby M Joshi » 11 May 2016 23:13

Jhujar wrote:Where is 60+ Billion saving in Oil Import Bill?


Exports also fell due to lower value of processed crude oil products which are exported.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 12 May 2016 01:48

Rajya Sabha passes Bankruptcy Code
The Rajya Sabha on Wednesday passed the Insolvency and Bankruptcy Code Bill, enabling a single law to deal with distressed companies, their promoters, creditors, employees and other stakeholders for the first time in India.

The law - which will ensure a time-bound process of winding-up a company or limited liability entity, a 'Fresh Start' for debt-laden individuals under a certain threshold and temporary transfer of management of the troubled entity into the hands of resolution professionals - was passed by the Lok Sabha on Thursday.

The move was hailed by experts, dubbing it as an important reform measure of the Narendra Modi government.

"This law rebalances the equation between the debtor and the creditor and puts the power back in the hands of the creditor," said Cyril Shroff, managing partner at Cyril Amarchand Mangaldas.

"After GST (Goods and Services Tax), and land reforms, this is the most important regulation and the government deserves credit for this," said Varun Gupta, partner at Deal Advisory, KPMG. "It brings troubled companies into a common process. Earlier the promoter, creditors, shareholders, employees, everyone had to go through a separate process. That has been streamlined."

Banks to infuse more funds into stalled road projects
The highways ministry has reached an understanding with banks on infusing funds equivalent to government equity infusion in select stalled projects.


State Bank of India (SBI) and YES Bank are among a host of banks that have agreed in principle to handhold some of the troubled projects.

THE NDA STRATEGY
Around 83 highway projects have been identified as stranded. Barring 15-16 projects, issues concerning the others have been resolved. Following are the key features of the process:
Termination of contracts because of underperformance
Rescheduling contract deadlines
One-time funding by the govt
Infusion of matching bank equity
Harmonious substitution of operators

Union Transport Minister Nitin Gadkari has said all stranded highway projects will get off the ground by May 26. Over a dozen chronic projects were still stalled, a government official pointed out.

The Mauritius route has been amended. Andy Mukherjee at Bloomberg explains:
India's unthreatening Mauritius tax deal
India had managed to rejig a three-decade-old tax agreement with Mauritius, which foreign investors used to escape the short-term capital-gains tax of 15 percent that locals pay.NEW RATE FOR SHORT-TERM GAINS7.5%The changes mean that profits on shares bought after March 31 next year will be taxed for 24 months at half the domestic rate. From 2019, the advantage of investing via Mauritius will completely disappear. (The capital-gains tax is only on Indian shares or mutual funds held for less than a year.)

Foreign investors have about $283 billion in Indian equities, of which $57 billion is from Mauritius. Only the U.S. portion, at $97 billion, is bigger.
Upsetting the cozy relationship might sound like a bad idea, but it really isn't. For one thing, the new measures are far from draconian. Gains already accumulated won't be taxed, and a 7.5 percent levy for two years afterward will hardly be a showstopper. At worst, some venture-capital funds will have to tweak the way they control their stakes in Indian startups. Ditto for managers of existing structures that have been legitimately created to garner the tax benefit, such as JPMorgan's Copthall Mauritius Investment, which according to data compiled by Bloomberg owns $1.7 billion of Indian equities. Most such vehicles, however, are small. Deutsche Securities Mauritius, for example, has less than $62 million in Indian shares.

Besides, the logic of the tax increase is hard to fault. As long as it remains cheaper to invest in the Indian market from overseas, locals will have an incentive to move wealth out of the country illegally. Apart from abetting corruption, this round-tripping of capital adds to exchange-rate volatility. Closing the loophole is therefore a good start.

Restricting the discounted 7.5 percent rate to companies that spend at least $40,000 a year in Mauritius will curb sham operators, if not completely eliminate them. Investing in India via Singapore requires companies to spend $146,000 in 24 months for them to avoid the short-term capital-gains tax.What's more notable is that the Indian government managed to communicate its intention without causing a stock-market rout. That means one of two things: Either the plan really is an honest effort to flush dodgy money out of the stock market; or the devil is in the fine print, and nobody has quite grasped it yet. We'd all better hope it's the former.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby JTull » 12 May 2016 12:53

India needs better management of it's rivers

Ganges: India's dying mother

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Kakkaji » 12 May 2016 21:01

GST bill likely to be approved this year: Morgan Stanley

NEW DELHI: The Goods and Services Tax (GST) bill is likely to be passed in the coming months and is expected to be implemented sometime next year, says a Morgan Stanley report.

"GST has the potential to benefit large companies as their warehousing costs decline and tax liabilities level off with unorganised players," the report said adding that investors are focused on the new GST law, so its clearance could be important to equities.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 12 May 2016 23:11

New home launches up 27% in January-March qtr at 31,200 units
Launches of new homes increased by 27 per cent to 31,200 units in eight major cities with developers betting on the affordable segment to boost their sluggish sales, property consultant Cushman & Wakefield said.

“The residential market, which saw a slump in launches in 2015, saw a remarkable comeback in the first quarter, backed by a six-fold rise in launches in the affordable housing segment…,” C&W said in a statement.

As many as 10,952 units were launched during Q1 2016 in the affordable segment in the top eight cities of the country as developers foresee greater demand in this highly price- sensitive segment, it added.

Mumbai witnessed the maximum drop in launch price of about 35 per cent during January-March quarter compared with the year-ago period. The other cities include Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Ahmedabad and Pune.

The affordable housing segment accounted for about 35 per cent of total launches during Q1 2016. The segment contributed 22 per cent of total unit launches seen in 2015, up from its share of 17 per cent in 2014.

March Index of Industrial Production growth slows to 0.1%
The Index of Industrial Production for the month of March 2016 at 198.2, was 0.1 percent higher as compared to the level in March 2015. The cumulative growth for the period April-March 2015-16 over the corresponding period of the previous year stands at 2.4 percent.

In terms of industries, 12 out of the 22 industry groups in the manufacturing sector have shown positive growth during March 2016 as compared to the corresponding month of the previous year.

Retail inflation accelerates to 5.39 per cent in April
India’s annual consumer price inflation accelerated to 5.39 percent in April, bucking a recent slowing trend, government data showed on Thursday.

Economists surveyed by Reuters had forecast retail inflation to inch up to 5.0 percent in April from 4.83 percent in March.

Food inflation picked up to 6.32 percent in April from 5.21 percent in the previous month.

India’s gold demand falls 39% in Q1-2016 to 116.5 tonnes
Gold demand in India declined by 39 per cent during the first quarter of this year at 116.5 tonnes due to jewellers’ strike over re-introduction of excise duty that affected the wedding purchase segment, says a report.

According to the World Gold Council’s ‘Gold Demand Trends’ report, the total gold demand stood at 191.7 tonnes in the January-March quarter of 2015.

In terms of value, the demand fell by 36 per cent to Rs 29,900 crore in the first quarter of 2016 from Rs 46,730 crore in the year-ago period, it said.

Recycling in India also fell by 22 per cent to 14 tonnes against 18 tonnes in the corresponding period of 2015, according to the report.

“Recycling will go up subject to what happens to the Gold Monetisation Scheme, which is yet to pick up. There is a lot of pent-up demand for coins. Instead of discouraging (people from buying coins), the government through positive policy decisions can make the Gold Monetisation Scheme popular, thus, increasing recycling in the country,” Somasundaram said.

Monsoon may hit Kerala by May-end: Skymet
The southwest monsoon (June-September) is likely to reach the Kerala coast at least a few days ahead of usual schedule of June 1, private weather forecaster Skymet said on Wednesday. “Monsoon is likely to reach over Andaman and Nicobar Islands between May 18 and May 20. Thereafter, southwest monsoon is likely to arrive over Kerala between May 28 and May 30, simultaneously covering some parts of northeast India,” Skymet said in a statement.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Austin » 13 May 2016 09:26

India's Bad Loans Could Be Bigger Than New Zealand's $170 Billion Economy

http://profit.ndtv.com/news/economy/art ... ome-latest

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Austin » 13 May 2016 09:40

India's foreign exchange reserves rise to $363 billion

CHENNAI: India's foreign exchange reserves increased by $1.52 billion to $363.12 billion as on April 29, 2016, the Reserve Bank of India (RBI) said.According to the RBI's forex data, the reserves stood at $363.12 billion as on April 29 against $361.60 billion for the week ended April 22, 2016.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 13 May 2016 09:58

Five Year Plans cancelled, Fifteen Year Vision Documents planned
The National Democratic Alliance government at the Centre, led by Prime Minister Narendra Modi, has decided to get rid of the Nehruvian five-year plans, and replace them with 15-year vision documents.

These will be framed keeping in mind the country's social goals and the sustainable development agenda. According to a senior official, the issue was discussed at length and a decision was taken at the highest level.

The NITI Aayog has been directed to prepare a vision document at the earliest.

The current 12th Five-Year Plan will be terminated in the current financial year, 2016-17.

Services of entities getting money via Mauritius to be taxed
The recently signed India-Mauritius tax treaty has expanded the definition of permanent establishment (PE) to bring various services offered by entities getting investments through the island country in the tax net.

With the introduction of the Service Permanent Establishment clause in the treaty, a foreign company in India will be taxable if its employees spent 90 days in India in the past 12 months, according to the text of the Protocol of the India-Mauritius Double Taxation Avoidance Convention (DTAC) signed on Tuesday.

After the amendment, such companies' business income in India will be taxable at 40 per cent, which is the corporate tax for foreign entities.

Steel min seeks similar freight for iron ore, coal
The steel ministry has asked the railway ministry to charge similar haulage rates for iron ore and coal.

The steel ministry said the iron ore rate was almost 14 per cent more than that for coal. According to the railways' website, a company needs to pay Rs 213 to transport a tonne of coal 125 km (kilometre) and Rs 241 for a tonne of iron ore.

"The steel ministry has been taking this matter up at the Railway Board level since August. However, it has not received a response yet," said a senior government official.

"Iron ore is classified under freight class 165. We want it under freight class 145, the same as coal," said a steel ministry official.

The railway ministry earlier this week abolished a policy where the haulage rate for iron ore meant for export was higher than the one meant for local use.

With the steel industry going through a severe downturn, Union junior steel minister Vishnu Deo Sai said a demand for a comprehensive package had been referred to the department of financial services.

Trade deficit narrows for fourth straight month in April
A plunge in oil and gold imports has trimmed India's trade deficit to its lowest level in more than five years, bolstering the outlook for its balance of payments.

The trade shortfall narrowed for the fourth straight month in April to $4.84 billion, its lowest level since March 2011, from $5.07 billion in the previous month, government data showed on Friday.

Tumbling global crude prices drove down the oil import bill by 24% from a year earlier to $5.66 billion last month. Overall, India's imports shrank by an annual 23.10% to $25.41 billion.

India's balance of payments swung to a surplus in the October-December quarter.

Exports, meanwhile, posted their 17th straight fall, contracting by an annual 6.74% to $20.57 billion.

Coal imports decline by 15% to 15.9 MT in April
Country's coal imports fell by 15% to 15.9 million tonnes (MT) in April this year.

The imports stood at 18.7 MT in the same month last year.

"Provisional coal import figures: Reduction from 18.7 MT in April 2015 to 15.9 MT in April 2016. In value terms, from Rs 8,942 crore to Rs 6,023 crore (32%)," Coal Secretary Anil Swarup said in a tweet.

He further said reduction in imports during last fiscal led to a saving of an estimated Rs 24,000 crore in foreign exchange.

The government had earlier said in view of the rising production of the dry fuel, India plans to completely stop thermal coal imports in 2-3 years that would result in an annual saving of Rs 40,000 crore.

However, Coal and Power Minister Piyush Goyal is of the view that coking coal needs to be imported and his Ministry was ready to tie up with shipping companies for this purpose.

Coal India Ltd (CIL) produced 37.5 MT of the dry fuel in April as against the target of 37.6 MT.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Austin » 14 May 2016 11:37

Five PSU Banks Led By Bank of Baroda Post Rs 6,751 Crore Loss

http://profit.ndtv.com/news/earnings/ar ... ome-latest

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Austin » 14 May 2016 11:38

Hope Rajan gets a 2nd Term Extension

Raghuram Rajan Indicates Interest In Second Term, Says 'More To Do'

http://profit.ndtv.com/news/banking-fin ... ome-latest

Suraj
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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 14 May 2016 20:20

SwarajyaMag has a great article on the Mauritius route and its implications towards black money. Abstract quoted. Read in entirety on their site and give them traffic:
The Mauritius Loophole: The Story Of Its Origin And How India Finally Managed To Shut It
Between 2001 and 2011 nearly 40% of all FDI that came to India came from Mauritius - thanks to a loophole that exempted such investments from capital gains tax.

India and Mauritius have recently agreed to amend a 1982 treaty between the two countries that would effectively seal this loophole.

Here is the story of how (and why) the loophole came into existence.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Ashokk » 14 May 2016 23:22

Will go for voting on GST if Congress doesn't come around: FM Arun Jaitley
NEW DELHI: Finance Minister Arun Jaitley today said government may seek voting on GST Constitution amendment bill in Rajya Sabha in the Monsoon session in case Congress continues to oppose the long-pending indirect tax law.

"Only one political party, the Congress, and that is a political opposition. That is not an ideological opposition. I am trying my best to talk to them, so that they can come around. And if they don't, then, we'll have no option but to put it to vote," Jaitley said in a interview to All India Radio.

Jaitley said the bill will be put to vote in next Parliament session even if Congress continues to oppose it, the AIR said in a release.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Kakkaji » 15 May 2016 07:19

Land, green clearances behind Coal India's success

When Union coal and power minister Piyush Goyal set a target of providing affordable round-the-clock electricity to all by 2019, it seemed overambitious to some. However, one public sector enterprise went into an overdrive to turn this dream into a reality.

During 2015-16, domestic coal availability at thermal power plants was record 28 days, with no plant facing fuel scarcity. This, in turn, kept a check on India's forex outflows as demand for imported coal remained under control. India's power sector heavily depends on coal as over 80 per cent of the country's electricity is generated by thermal plants.

Coal India achieved a staggering production of 536.51 million tonnes (mt) during the financial year ended March 31, 2016.

But how did Coal India, which faced one of its gravest production crisis during 2010-11 with nearly no production growth, manage a turnaround to live up to its reputation of being the world's largest coal miner? The answer lies in a combination of policy-related reforms, state-Centre partnership, swift execution and close monitoring by the ministry.

"There was a paradigm shift in the resolution of the issues while taking the states along" said Anil Swarup, secretary, ministry of coal. The coal ministry used a three-pronged approach - increasing land availability, fast environmental clearance and efficient evacuation, he added.


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