Indian Economy News & Discussion - Nov 27 2017

The Technology & Economic Forum is a venue to discuss issues pertaining to Technological and Economic developments in India. We request members to kindly stay within the mandate of this forum and keep their exchanges of views, on a civilised level, however vehemently any disagreement may be felt. All feedback regarding forum usage may be sent to the moderators using the Feedback Form or by clicking the Report Post Icon in any objectionable post for proper action. Please note that the views expressed by the Members and Moderators on these discussion boards are that of the individuals only and do not reflect the official policy or view of the Bharat-Rakshak.com Website. Copyright Violation is strictly prohibited and may result in revocation of your posting rights - please read the FAQ for full details. Users must also abide by the Forum Guidelines at all times.
chola
BRF Oldie
Posts: 5136
Joined: 16 Dec 2002 12:31
Location: USA

Re: Indian Economy News & Discussion - Nov 27 2017

Postby chola » 08 Jul 2021 10:35

rsingh wrote:Why we have devalue again and again to increase exports. OECD countries do not do this. Does it mean that our exports are of low quality, we have to lower the Ruppee in order to maintain exports.


Not true. Japan has been doing this for decades. Same with South Korea. Hardly low quality producers.

It is a competitive edge that exporting powers always take advantage of.

rsingh
BRF Oldie
Posts: 3661
Joined: 19 Jan 2005 01:05
Location: Pindi
Contact:

Re: Indian Economy News & Discussion - Nov 27 2017

Postby rsingh » 08 Jul 2021 14:04

A bon. I know Yen is fluctuating between 105 and 120 . It goes up and down as compared to dollah. But we follow only one way. Govt has to promote exports of machines, chemical products and services.Handcraft products has a market but is not that people buy for quality. It because of their affection toward indiam culture. Most of the time I see very shoddy things. We really have to put quality control on export. Make the " Made in India" a big brand and not the cheap one. Most of the bresswork and wood carving work coming out of Syria , Morocco and Turkey is of very high quality and cheaper than that of India. Handcraft industry of India is not progressive. Every now and then some artist does better but his/her products are exclusive and only super rich can afford. For rich class these goods are copied. Mango man has to satisfy his needs with shoddy things or more durable plastics.

Ambar
BRF Oldie
Posts: 2332
Joined: 12 Jun 2010 09:56
Location: Weak meek unkil Sam!

Re: Indian Economy News & Discussion - Nov 27 2017

Postby Ambar » 08 Jul 2021 19:37

India's exports as a % of GDP is <20% and imports as a % of GDP is also ~20%, we are not a trade surplus nation , so to weaken the rupee when we are importing more than we are exporting makes no sense especially when we also suffer from a chronic high inflation.

nachiket
Forum Moderator
Posts: 8450
Joined: 02 Dec 2008 10:49

Re: Indian Economy News & Discussion - Nov 27 2017

Postby nachiket » 08 Jul 2021 23:06

Devaluation by itself is never enough to promote export growth. It has to go hand in hand with government policies promoting industrial growth, investment and incentives for exporters. We have seen that in the post 2009 recession era where the Rupee got devalued by a significant amount. This did not correspond to a rapid growth in exports which remained mostly flat.

Suraj
Forum Moderator
Posts: 14665
Joined: 20 Jan 2002 12:31

Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 08 Jul 2021 23:34

Exports aren't enhanced by the value of the currency. It's driven by stability in the value of the currency. A highly volatile exchange rate is not suitable to exporters trying to ensure stable transaction valuation. Japan and lately China have focused on keeping the exchange rate stable. Stability enables more accurate transaction cost estimation.

In any case, exports this fiscal year have been an absolute revelation. Every month between March and June has seen >$30 billion in merchandise exports. This has never occured before. In fact only one prior month in history has seen >$30 billion - March 2019. Now we have March, April, May, June 2021 all having >$30 billion. Right through the middle of the Covid 2nd wave we somehow managed an all-time record breaking export performance.

I have yet to dig into this, but I believe the greater access to GJ ports through the WDFC is driving this. The current year target is $400 billion, or $100B per quarter. We're already almost within touching distance, having managed $95 billion in Q1. It needs just under $34 billion a month sustained, and this is something I think we will manage this year, especially as PLI facilities start coming onstream.

vsunder
BRFite
Posts: 1017
Joined: 06 Sep 1999 11:31
Location: Ulan Bator, Mongolia

Re: Indian Economy News & Discussion - Nov 27 2017

Postby vsunder » 09 Jul 2021 23:59

Suraj wrote:Exports aren't enhanced by the value of the currency. It's driven by stability in the value of the currency. A highly volatile exchange rate is not suitable to exporters trying to ensure stable transaction valuation. Japan and lately China have focused on keeping the exchange rate stable. Stability enables more accurate transaction cost estimation.

In any case, exports this fiscal year have been an absolute revelation. Every month between March and June has seen >$30 billion in merchandise exports. This has never occured before. In fact only one prior month in history has seen >$30 billion - March 2019. Now we have March, April, May, June 2021 all having >$30 billion. Right through the middle of the Covid 2nd wave we somehow managed an all-time record breaking export performance.

I have yet to dig into this, but I believe the greater access to GJ ports through the WDFC is driving this. The current year target is $400 billion, or $100B per quarter. We're already almost within touching distance, having managed $95 billion in Q1. It needs just under $34 billion a month sustained, and this is something I think we will manage this year, especially as PLI facilities start coming onstream.



This is completely incorrectly. WDFC is not operational upto Palanpur. Only trials using diesels taking place. Oscillation trials using RDSO sensors are taking place as of now at 100 kmph. OHE may not even be complete upto Palanpur. As of today New Kishangarh to Marwar Jn was tested with high rise panto at 100 kmph

https://mobile.twitter.com/RailMinIndia ... 0334632963

Doubling between Palanpur and Samikhiali and attendant RE is still not over that is on the lune connecting GJ ports to Palanpur. Also the rail over rail flyover that connects this Samikhiali line and hops over the Delhi to Ahmedabad line and then connects to WDFC at New Palanpur station is incomplete. So freight for the moment has to enter Palanpur yard and IR for a short distance. It will take until 7-8 months more for this to be resolved for seamless connectivity between GJ ports and WDFC. There is also lots of work left at Dadri, Y connector, spur line to ICD Internal Container Depot Dadri and the Dadri to Rewari link itself. So no WDFC yet

Suraj
Forum Moderator
Posts: 14665
Joined: 20 Jan 2002 12:31

Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 10 Jul 2021 00:06

Thanks for the update, vsunder! The export activity is unprecedented and it wasn't clear what's driving this much volume and valuation growth in the midst of the second wave.

nachiket
Forum Moderator
Posts: 8450
Joined: 02 Dec 2008 10:49

Re: Indian Economy News & Discussion - Nov 27 2017

Postby nachiket » 10 Jul 2021 00:11

Can it be a result of pent up demand which was subdued last year? We saw something similar in the local market for automobiles in India once people started buying again after staying home for months. This was late last year and was a temporary bump although a big one.

Suraj
Forum Moderator
Posts: 14665
Joined: 20 Jan 2002 12:31

Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 10 Jul 2021 00:14

This is a supply side improvement. We've never despite every effort and with lots of global growth driven demand, been able to sustain high $300B level annual exports. We've been treading water at the low/mid $300B level for years and all of a sudden in the middle of major pandemic crisis we manage to accelerate to ~$380B annualized rate - as we're seeing now.

Cyrano
BRFite
Posts: 1116
Joined: 28 Mar 2020 01:07

Re: Indian Economy News & Discussion - Nov 27 2017

Postby Cyrano » 10 Jul 2021 00:57

Is there source that gives a break up of what India is exporting and what categories are driving export growth?

Suraj
Forum Moderator
Posts: 14665
Joined: 20 Jan 2002 12:31

Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 10 Jul 2021 01:00

Cyrano wrote:Is there source that gives a break up of what India is exporting and what categories are driving export growth?

The person who asks that question gets to go dig up the data from commerce ministry website :)

Cyrano
BRFite
Posts: 1116
Joined: 28 Mar 2020 01:07

Re: Indian Economy News & Discussion - Nov 27 2017

Postby Cyrano » 10 Jul 2021 01:28

LoL ! Well, the commerce ministry has a dashboard website that takes quite some time to load and brings up a nice dashboard made using "R" or some such data visualisation s/w. There is probably lots of data one can play with, but the dashboard is very very slow, at least for me though I a have fiber internet connection.

Will take lot of effort to summarise it into the kind of easy to understand pie charts and trend graphs one would find in an investment banking report.

nachiket
Forum Moderator
Posts: 8450
Joined: 02 Dec 2008 10:49

Re: Indian Economy News & Discussion - Nov 27 2017

Postby nachiket » 10 Jul 2021 01:47

Cyrano, use this: https://tradestat.commerce.gov.in/meidb/comq.asp?ie=e

You can list all commodity exports and sort on commodity value for each month. But they have data only till March 2021 in there.

Cyrano
BRFite
Posts: 1116
Joined: 28 Mar 2020 01:07

Re: Indian Economy News & Discussion - Nov 27 2017

Postby Cyrano » 10 Jul 2021 14:11

This is even more work to make sense of the data, LoL ! Nice try Nachiket ji ;-)

manish
BRFite
Posts: 847
Joined: 29 Jan 2009 16:13

Re: Indian Economy News & Discussion - Nov 27 2017

Postby manish » 10 Jul 2021 19:55

Suraj wrote:Thanks for the update, vsunder! The export activity is unprecedented and it wasn't clear what's driving this much volume and valuation growth in the midst of the second wave.

Suraj, I think there is an angle of short term opportunity that has opened up for India given constraints elsewhere, particularly among the export champions of Asia such as PRC, Vietnam etc on account of new COVID outbreaks, severe shortage of export capacity (air and sea both) on North/South East Asia-EU/NA trade routes. The price quotes for freight on those routes are eye watering, almost 10 to 15x in some cases in June 2021!

Asia-Europe spot rates head for $20,000 per feu as new China Covid crisis bites

By Mike Wackett 11/06/2021
Ocean carriers are rolling out more rate increases next week, with FAK rates from Asia to North Europe edging towards $20,000 per 40ft.

This represents an incredible 1,000% increase on the spot rate for the trade a year ago.

vijayk
BRF Oldie
Posts: 5727
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Nov 27 2017

Postby vijayk » 10 Jul 2021 22:18

manish wrote:
Suraj wrote:Thanks for the update, vsunder! The export activity is unprecedented and it wasn't clear what's driving this much volume and valuation growth in the midst of the second wave.

Suraj, I think there is an angle of short term opportunity that has opened up for India given constraints elsewhere, particularly among the export champions of Asia such as PRC, Vietnam etc on account of new COVID outbreaks, severe shortage of export capacity (air and sea both) on North/South East Asia-EU/NA trade routes. The price quotes for freight on those routes are eye watering, almost 10 to 15x in some cases in June 2021!

Asia-Europe spot rates head for $20,000 per feu as new China Covid crisis bites

By Mike Wackett 11/06/2021
Ocean carriers are rolling out more rate increases next week, with FAK rates from Asia to North Europe edging towards $20,000 per 40ft.

This represents an incredible 1,000% increase on the spot rate for the trade a year ago.





https://www.oneindia.com/india/india-s- ... 80806.html

Major commodity groups of export showing positive growth in June 2021 over June 2019 are: Other cereals (299.29%), Iron ore (134.46%), Organic and Inorganic Chemicals (62.41%), Cereal preparations and miscellaneous processed item (56.63%), Oil meals (53.99%), Cotton yarn/fabrics/made-ups, handloom products etc. (50.86%), Petroleum products (49.82%), Plastic and linoleum (46.84%), Rice (43.82%), Engineering goods (41.66%), Carpet (25.15%), Jute mfg. Including floor covering (23.97%), Man-made yarn/fabrics/made-ups etc. (23.66%), Mica, coal and other ores, minerals including process (22.43%), Ceramic products and glassware (21.81%), Marine products (20.71%), Fruits and vegetables (20.38%), Meat, dairy and poultry products (19.92%), Handicrafts excl. Hand-made carpet (18.83%), Coffee (15.73%), Tobacco (12.95%), Electronic Goods (11.89%), Drugs and pharmaceuticals (9.9%), Spices (8.7%), and Oil Seeds (1.24%).

Only 5 major commodity groups of export showing negative growth in June 2021 over June 2019. These are: Cashew (-44.86%), Tea (-25.08%), Leather and leather manufactures (-21.0%), RMG of All Textiles (-18.76%), and Gems and Jewellery (-10.76%).

Major commodity groups of import showing positive growth in June 2021 over June 2019 are: Sulphur & Unroasted Iron Pyrites (270.96%), Medicinal& Pharmaceutical products (132.19%), Vegetable Oil (118.87%), Pulses (110.75%), Professional instrument, Optical goods, etc. (70.88%), Metaliferrous ores & other minerals (56.5%), Chemical material & products 56.48%), Fertilisers, Crude & manufactured (37.28%), Fruits & vegetables (30.35%), Organic & Inorganic Chemicals (30.09%), Non-ferrous metals (28.19%), Pearls, precious & Semi-precious stones (19.54%), Pulp and Waste paper (17.08%), Artificial resins, plastic materials, etc. (12.3%), Wood & Wood products (8.26%), Machine tools (6.87%), Dyeing/tanning/colouring materials (3.85%), Machinery, electrical & non-electrical (2.55%), and Iron & Steel (0.66%).

Major commodity groups of import showing negative growth in June 2021 over June 2019 are: Silver (-97.16%), Gold (-64.04%), Project Goods (-53.69%), Cotton Raw & Waste (-51.03%), Newsprint (-45.05%), Transport equipment (-22.47%), Leather & leather products (-18.43%), Coal, Coke & Briquettes, etc. (-12.56%), Textile yarn Fabric, made-up articles (-9.66%), Petroleum, Crude & products (-4.72%), and Electronic goods (-3.4%).


vijayk
BRF Oldie
Posts: 5727
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Nov 27 2017

Postby vijayk » 12 Jul 2021 22:54



Check at around 3:28 min regarding payment system in India

SBajwa
BRF Oldie
Posts: 5498
Joined: 10 Jan 2006 21:35
Location: Attari

Re: Indian Economy News & Discussion - Nov 27 2017

Postby SBajwa » 18 Jul 2021 19:09


Kakkaji
BRF Oldie
Posts: 3759
Joined: 23 Oct 2002 11:31

Re: Indian Economy News & Discussion - Nov 27 2017

Postby Kakkaji » 20 Jul 2021 22:34

Govt aim is to make Tamil Nadu a $1 trillion economy: Stalin

Tamil Nadu Chief Minister MK Stalin has set an ambitious target for the State to be a $1 trillion GDP economy by 2030. “We want Tamil Nadu to be one of the best States in South Asia. Our government's target is to make Tamil Nadu a $1 trillion economy,” “We want to ensure that there is a conducive business environment in the State,” he added.

Industry Secretary N Muruganandan speaking at the function said, the Chief Minister has set a target to bring in investment of ₹23 lakh crore and create 46 lakh new jobs by 2030.

General Electric has proposed to establish a Centre of Excellence to enhance production of aircrafts and aeronautical components for industries in the aerospace and defence sector using advanced manufacturing technologies. An MoU was signed between GE and Tidco at the Conclave.

The others MoUs signed include JSW Renew Energy Two Ltd’s ₹3,000 crore investment (employment of 1,600 persons) to set up a 450 MW wind power generation at Tuticorin, Tirunelveli, Dindigul and Tiruppur; Tata Consultancy Services’ Phase III project at Sipcot Siruseri at investment of ₹900 crore (employment for 15,000 persons) and Srivaru Motors setting up a facility in Coimbatore to manufacture electric vehicles (two wheeler) in Coimbatore by investing ₹1,000 crore (employment for 4,500), the release said.

Stalin laid the foundation stones for nine projects, including AG&P Pratham’s commissioning of ‘first daughter booster’ station at an investment of ₹1,700 crore (employment for 3,400 persons). He inaugurated five projects, including the ₹5,317 crore (employment for 4,738) of Vikram Solar at Oragadam, the release said.

yensoy
BRFite
Posts: 1925
Joined: 29 May 2002 11:31
Location: USA

Re: Indian Economy News & Discussion - Nov 27 2017

Postby yensoy » 21 Jul 2021 07:51

^^^^ A LOT has to change for that to happen but hey one can dream.

williams
BRFite
Posts: 543
Joined: 21 Jun 2006 20:55

Re: Indian Economy News & Discussion - Nov 27 2017

Postby williams » 21 Jul 2021 08:59

yensoy wrote:^^^^ A LOT has to change for that to happen but hey one can dream.


If you look at the GDP growth of TN in the last 3 decades, A quick regression trend will tell you GDP could jump from current 290 billion USD to may be 700 billion USD in 2030. TN needs a lot more investment and cleanup to get to 1 trillion USD. They have the capacity to do it though.

arshyam
BRF Oldie
Posts: 4232
Joined: 11 Aug 2016 06:14

Re: Indian Economy News & Discussion - Nov 27 2017

Postby arshyam » 21 Jul 2021 10:02

"One of the best states in South Asia", eh? Interesting choice of words, one thinks...

williams
BRFite
Posts: 543
Joined: 21 Jun 2006 20:55

Re: Indian Economy News & Discussion - Nov 27 2017

Postby williams » 21 Jul 2021 12:28

arshyam wrote:"One of the best states in South Asia", eh? Interesting choice of words, one thinks...


To be fair that is not what he said. He said, when he was the minister for Industries (during the DMK govt), TN ranked the first state in India to attract FDI, now he wanted it to be the first state in SA.

https://youtu.be/b12OxHD2jDc

kvraghav
BRFite
Posts: 1066
Joined: 17 Apr 2008 11:47
Location: Some where near the equator

Re: Indian Economy News & Discussion - Nov 27 2017

Postby kvraghav » 21 Jul 2021 16:42

The problem is very few states in India have net positive industries which do not cater to local market but generate employment to rest of the people in India. Unfortunately TN is not one of them. Gujrat with textiles, petroleum, gems and gold industries, Karnataka and Telangana with Software are some of these states. No wonder Hosur is the new industrial hub for TN just to cater to Bangalore and Hyderabad.

chetak
BRF Oldie
Posts: 25694
Joined: 16 May 2008 12:00

Re: Indian Economy News & Discussion - Nov 27 2017

Postby chetak » 21 Jul 2021 20:36

$608.99 Billion!

India's forex reserve is 5th largest in the world.

The other four are China, Japan, Switzerland and Russia.





https://www.tribuneindia.com/news/business/at-608-99-billion-indias-forex-5th-highest-in-world-285648

kit
BRF Oldie
Posts: 4579
Joined: 13 Jul 2006 18:16

Re: Indian Economy News & Discussion - Nov 27 2017

Postby kit » 21 Jul 2021 21:27

chetak wrote:
$608.99 Billion!
India's forex reserve is 5th largest in the world.
The other four are China, Japan, Switzerland and Russia.

https://www.tribuneindia.com/news/business/at-608-99-billion-indias-forex-5th-highest-in-world-285648


Not so big , with a country as big a economy as India would go northward to 3 T to call it "adequate "

Ambar
BRF Oldie
Posts: 2332
Joined: 12 Jun 2010 09:56
Location: Weak meek unkil Sam!

Re: Indian Economy News & Discussion - Nov 27 2017

Postby Ambar » 21 Jul 2021 21:30

kvraghav wrote:The problem is very few states in India have net positive industries which do not cater to local market but generate employment to rest of the people in India. Unfortunately TN is not one of them. Gujrat with textiles, petroleum, gems and gold industries, Karnataka and Telangana with Software are some of these states. No wonder Hosur is the new industrial hub for TN just to cater to Bangalore and Hyderabad.


40% of India's manufacturing comes from automobiles and auto ancillaries sector, it directly contributes 7% to India's GDP. TN is the largest hub for auto and auto ancillary manufacturing , this head start in automobiles has also helped TN nurture manufacturing in other capital goods and chemicals making it the one of the top industrialized state in the country. It generates employment for not just those in TN but for rest of India as well, and its products cater to domestic market and exports. In the late 80s and early 90s, except for small pockets in NCR,GJ and Pune,MH, no place in India had SEZs the size TN did.

kvraghav
BRFite
Posts: 1066
Joined: 17 Apr 2008 11:47
Location: Some where near the equator

Re: Indian Economy News & Discussion - Nov 27 2017

Postby kvraghav » 21 Jul 2021 22:31

Ambar wrote:
kvraghav wrote:The problem is very few states in India have net positive industries which do not cater to local market but generate employment to rest of the people in India. Unfortunately TN is not one of them. Gujrat with textiles, petroleum, gems and gold industries, Karnataka and Telangana with Software are some of these states. No wonder Hosur is the new industrial hub for TN just to cater to Bangalore and Hyderabad.


40% of India's manufacturing comes from automobiles and auto ancillaries sector, it directly contributes 7% to India's GDP. TN is the largest hub for auto and auto ancillary manufacturing , this head start in automobiles has also helped TN nurture manufacturing in other capital goods and chemicals making it the one of the top industrialized state in the country. It generates employment for not just those in TN but for rest of India as well, and its products cater to domestic market and exports. In the late 80s and early 90s, except for small pockets in NCR,GJ and Pune,MH, no place in India had SEZs the size TN did.

The TN manufactured Automobiles which are exported is not even 10% of the total production capacity and that too because the manufacturing has some dead capacity. If Indian market for automobiles falls, the export orders simply go to Vietnam or Thailand. Honda already does that and ford is in the process of doing that. TN is a net receiver of business from India, in that it does not bring any significant independent export revenues. The day IT will fall in Bangalore, Hyderabad and Pune, TN manufacturing will go down. 80s is different. Most of the industries were garnered by TN. The export oriented industries are now come up in BLR, HYD and other places and Tn is relegated to supplying them.

chetak
BRF Oldie
Posts: 25694
Joined: 16 May 2008 12:00

Re: Indian Economy News & Discussion - Nov 27 2017

Postby chetak » 21 Jul 2021 23:03

Ambar wrote:
kvraghav wrote:The problem is very few states in India have net positive industries which do not cater to local market but generate employment to rest of the people in India. Unfortunately TN is not one of them. Gujrat with textiles, petroleum, gems and gold industries, Karnataka and Telangana with Software are some of these states. No wonder Hosur is the new industrial hub for TN just to cater to Bangalore and Hyderabad.


40% of India's manufacturing comes from automobiles and auto ancillaries sector, it directly contributes 7% to India's GDP. TN is the largest hub for auto and auto ancillary manufacturing , this head start in automobiles has also helped TN nurture manufacturing in other capital goods and chemicals making it the one of the top industrialized state in the country. It generates employment for not just those in TN but for rest of India as well, and its products cater to domestic market and exports. In the late 80s and early 90s, except for small pockets in NCR,GJ and Pune,MH, no place in India had SEZs the size TN did.


things are getting messed up in TN once again.

kitex, the 3500 cr investing KER company has gone to telangana, whereas the natural choice should have been TN, somewhere in the tirupur region perhaps, and therein lies a story of "demands" being raised by the DMK goons.

even the auto sector investments are slowing down.

the labor is not militant but the dravidian govts are notoriously corrupt to the point of extortion. It's also easy for the dravidians to gather mobs funded by the BIF and instigate the minorities to do what was maliciously done to sterlite.

they could not do much in the case of the nuke reactors at kudankulam which were also opposed because the might of the center descended on the BIF funded NGOs and these NGOs saw, for the first time perhaps, the raw power the center could unleash if they so desired. Suffice it to say that intelligence agencies were among the many resources deployed to cut these guys off at the knees. the slimy sardar was actually that pissed off and he gave the central agencies carte blanche to quell the unwarranted interference. The state resources were actually compromised and complicit and so they were allowed only a marginal role in the subsequent proceedings.

By the end of their term, these dravidian guys would have damaged much of the industrial and social infrastructure because personal greed has always been central to their political creed.

Hosur is dependent on TN power and any shortages of power in TN will reflect immediately in the industrial ecosystem even though power in plenty may be available just a few kilometers away in KAR. I remember hosur going through 18 hour power cuts just some years ago
Last edited by chetak on 21 Jul 2021 23:19, edited 1 time in total.

nachiket
Forum Moderator
Posts: 8450
Joined: 02 Dec 2008 10:49

Re: Indian Economy News & Discussion - Nov 27 2017

Postby nachiket » 21 Jul 2021 23:14

Take the political discussions to the Politics thread. No more of that here.

Ambar
BRF Oldie
Posts: 2332
Joined: 12 Jun 2010 09:56
Location: Weak meek unkil Sam!

Re: Indian Economy News & Discussion - Nov 27 2017

Postby Ambar » 22 Jul 2021 02:45

kvraghav wrote:
Ambar wrote:
40% of India's manufacturing comes from automobiles and auto ancillaries sector, it directly contributes 7% to India's GDP. TN is the largest hub for auto and auto ancillary manufacturing , this head start in automobiles has also helped TN nurture manufacturing in other capital goods and chemicals making it the one of the top industrialized state in the country. It generates employment for not just those in TN but for rest of India as well, and its products cater to domestic market and exports. In the late 80s and early 90s, except for small pockets in NCR,GJ and Pune,MH, no place in India had SEZs the size TN did.

The TN manufactured Automobiles which are exported is not even 10% of the total production capacity and that too because the manufacturing has some dead capacity. If Indian market for automobiles falls, the export orders simply go to Vietnam or Thailand. Honda already does that and ford is in the process of doing that. TN is a net receiver of business from India, in that it does not bring any significant independent export revenues. The day IT will fall in Bangalore, Hyderabad and Pune, TN manufacturing will go down. 80s is different. Most of the industries were garnered by TN. The export oriented industries are now come up in BLR, HYD and other places and Tn is relegated to supplying them.


In the automobile industry it is not unusual for most of the capacity to be utilized by the local market. That said, TN ranks no.3 in the country for exports and no.4 in the country for intra-state exports. Nearly 1 in 2 dollars India earns from auto exports is generated by TN, and in terms of overall exports only GJ and MH tops it.

https://www.business-standard.com/artic ... 831_1.html

The below numbers are from 2018, since then TN has surpassed KAR in exports.

Image

Intra state commerce data -

Image

So, yes, TN does export a lot of what it produces, and given its matured manufacturing ecosystem and many finished goods which requires high skills it employs people from all over India.

Suraj
Forum Moderator
Posts: 14665
Joined: 20 Jan 2002 12:31

Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 22 Jul 2021 03:22

21 Jul 2021
Image

Crossed 41% coverage now. up over 1% in just 3 weeks, resuming its speed after the slowdown during the Covid Wave 2. The rate has been abour 1.2-1.5% increment each month, which may accelerate since initial work in setting up backbone infrastructure enables a lot of villages to then be connected.

Here is the live dashboard.

Prior statuses:
30 Jun 2021
26 Apr 2021
18 Mar 2021
21 Feb 2021
15 Jan 2021
18 Dec 2020
15 Nov 2020
15 Oct 2020
20 Sep 2020
15 Aug 2020

kvraghav
BRFite
Posts: 1066
Joined: 17 Apr 2008 11:47
Location: Some where near the equator

Re: Indian Economy News & Discussion - Nov 27 2017

Postby kvraghav » 22 Jul 2021 21:16

Ambar wrote:So, yes, TN does export a lot of what it produces, and given its matured manufacturing ecosystem and many finished goods which requires high skills it employs people from all over India.

Checked the data that you posted and the TN is ranking third in export preparedness and not in actual export. It is still 4th. If you see the top 4 states there, 3 are coastal ones and there is a reason for that. Chennai and Mumbai has the unique advantage of having ports which cater to exports. So the exports in these places is mainly due to this. Gujrat has now started to move up the ladder due to Mundra and will surpass Maharashtra very soon. The goods from Gujrat used to be routed to Mumbai earlier. This is the reason for lot of people from Gujrat in Mumbai. The only exception in this list is Karnataka because they do not want Ports for their exports. In this pandemic era, Karnataka would have easily surpassed TN. Will try to get the report and paste. Bangalore is a cosmopolitan and Chennai is not. While Bangalores population has grown 2 times in the last decade, Chennai had only 50% growth.


Return to “Technology & Economic Forum”

Who is online

Users browsing this forum: No registered users and 5 guests