Indian Economy News & Discussion - Nov 27 2017

A_Gupta · Post by **A_Gupta** » 02 Jul 2018 16:02

The Nikkei India Manufacturing PMI rose to a six-month high of 53.1 in June of 2018 from 51.2 in the preceding month and beating market consensus of 51.4.

This per trading economics.com.

suryag · Post by **suryag** » 02 Jul 2018 18:32

Swarajya interview with Modi ji Read it all here

https://swarajyamag.com/economy/swarajya-interviews-prime-minister-modi-the-state-of-indian-economy

James · Post by **James** » 02 Jul 2018 18:40

Aditya_V wrote:Looking at the Historical data of exhange rates from 2013 -2018, we see the Rupee CNY rate today is simlair and Rupee has actually appreciated against Malaysian Ringgit, Thai Baht, Rupiah, Aust Dollar, Can Dollar, Euro, GBP and almost every other currency. This fact is lost on the secular crowd.

While this may be true, it is of little practical value, as overwhelming majority of India's trade (and specifically imports) are designated in US dollars - even for trade with the mentioned countries (maybe with some exceptions for Euro and GBP). So for a net importing country like us, currency depreciation against USD will result in higher landed cost of imports, potentially increasing inflation as well.

Supratik · Post by **Supratik** » 02 Jul 2018 19:17

Dollar to rupee is still approximately where it was in 2016-17. What the hoo haa about exchange rate is that they are comparing to a temporary appreciation for a few months after that.

Suraj · Post by **Suraj** » 02 Jul 2018 20:25

From GST thread:

Vips wrote:A year since GST, Maharashtra govt’s coffers fuller by 28%

What made a number of traders quickly adopt GST was the realisation that if one buys goods and services from an unregistered dealer, then a registered dealer would have to pay the entire tax and they won’t get any credit for it. This resulted in big traders, manufactures and service providers insisting that vendors register for GST. Besides, in many cases transporters also refused to carry goods without proper e-way bills, which resulted in registration of a large number of vendors, thus widening the tax net.

THIS is why GST works. It is self enforcing, and more critically, it imposes a cost on those who do not participate. Previously, staying out of the formal taxation system was something one could do without being hurt. Not anymore. One HAS to participate in order benefit, otherwise you're penalized not just by the government, but by your network refusing to do business with you.

The article is technically incomplete - it's not merely tax revenues that grew 28%. It's the formal economy that's grown in size by over a third .

The MH data is just spectacular:
2016-17: Rs.90,525cr
2017-18: Rs.1,15,940cr (+28%)
2018-19: Rs.39,916cr (Q1 data only), or approx Rs.1,60,000cr for full year extrapolated.

The current fiscal year extrapolated figure is a 75% gain in tax revenues within two fiscals. It's a good barometer as to the size of the informal economy.

vijayk · Post by **vijayk** » 02 Jul 2018 23:28

This is really good. A lot of economy is becoming formal. That means illegal activities will have less cash. No incentive to build an eco-system of underground networks. Wish someone creates a nice video explaining how this web of trust increases trader compliance. Also reduces crime associated with fraud networks.

Who is really paying these extra taxes?
consumers or traders?

If it is consumers, how can we help them reduce other tax burden. Shouldn't Govt. consider it?

Gus · Post by **Gus** » 02 Jul 2018 23:47

Supratik wrote:Dollar to rupee is still approximately where it was in 2016-17. What the hoo haa about exchange rate is that they are comparing to a temporary appreciation for a few months after that.

one dude in my classmates group was going all aggro about that and I pointed out that exchange rate was 39 in 2007 and asked why MMS allowed it to go to 68. no answer.

Suraj · Post by **Suraj** » 02 Jul 2018 23:49

GST is an indirect tax and collected from traders and not consumers. All data from the article above is actual collections so far. There's potential for it to be passed through to consumer but that would show up as inflation. The earlier interview from PM Modi and others indicates this is not the case. Further, one needs to realize that it wasn't the case that there was no tax previously. Far from it - there was a greater cost of doing business in the form of a cascading set of state and local levies, as well as bribes at borders. All those were paid by consumers in the form of higher prices too. GST eliminates an entire set of invisible taxes and levies, and instead applies a simple and visible tax in its place.

Vips · Post by **Vips** » 03 Jul 2018 04:48

UPI’s second tranche of ₹1-lakh-cr deals done in just 3 months against 20 for first.

National Payment Corporation of India’s (NPCI’s) Unified Payment Interface (UPI) saw cashless transactions of ₹1.01-lakh crore during the first quarter of 2018-19. To hit the first ₹1-lakh-crore mark, it had taken almost 20 months.

UPI, which is a mobile-only digital payment ecosystem, was launched in August 2016. This ecosystem offers seamless movement of money using a two-factor authentication process. People can transfer money using either the mobile number or the virtual payment address.

Around ₹2.17-lakh crore has been transacted on the UPI ecosystem since its launch in August 2016. The first cumulative transaction amount of ₹1-lakh crore was crossed in March 2018 — around ₹1.16-lakh crore was handled from August 2016 to March 2018. The next ₹1.01-lakh crore was done between April and June of 2018.

UPI handled cashless transactions worth ₹40,834 crore in June 2018 alone against a mere ₹3.1 crore in August 2016.

The total volume of transactions (the number of transactions) on UPI stood at 155 crore from August 2016 to June 2018.

It had touched 26.43 crore in June alone, surpassing the previous high of 19 crore transactions in April 2018.

NPCI’s own mobile app on UPI platform — Bharat Interface for Money (BHIM) — had the major share of transaction in the UPI ecosystem in the initial months.

Now, major technology companies and financial technology start-ups are also using the UPI ecosystem for cashless transactions on their mobile apps. Many banks have their own UPI apps, too.

BHIM was launched in December 2016 after the note ban in November that year. Of the ₹2.17-lakh crore transacted on the UPI since its launch, the amount transacted via BHIM stands at ₹48,805 crore. And, of the total volume of 155 crore UPI transactions, BHIM’s share is 13.72 crore.

Vips · Post by **Vips** » 03 Jul 2018 04:58

Suraj wrote:GST is an indirect tax and collected from traders and not consumers. All data from the article above is actual collections so far. There's potential for it to be passed through to consumer but that would show up as inflation. The earlier interview from PM Modi and others indicates this is not the case. Further, one needs to realize that it wasn't the case that there was no tax previously. Far from it - there was a greater cost of doing business in the form of a cascading set of state and local levies, as well as bribes at borders. All those were paid by consumers in the form of higher prices too. GST eliminates an entire set of invisible taxes and levies, and instead applies a simple and visible tax in its place.

GOI has already declared that as the tax collections figure increase, the four tax rate slabs will be subsumed into 3 and later 2 with consumer items shifted to lower bands.

Shanmukh · Post by **Shanmukh** » 03 Jul 2018 05:26

Suraj wrote:From GST thread:
Vips wrote:A year since GST, Maharashtra govt’s coffers fuller by 28%

What made a number of traders quickly adopt GST was the realisation that if one buys goods and services from an unregistered dealer, then a registered dealer would have to pay the entire tax and they won’t get any credit for it. This resulted in big traders, manufactures and service providers insisting that vendors register for GST. Besides, in many cases transporters also refused to carry goods without proper e-way bills, which resulted in registration of a large number of vendors, thus widening the tax net.
THIS is why GST works. It is self enforcing, and more critically, it imposes a cost on those who do not participate. Previously, staying out of the formal taxation system was something one could do without being hurt. Not anymore. One HAS to participate in order benefit, otherwise you're penalized not just by the government, but by your network refusing to do business with you.

The article is technically incomplete - it's not merely tax revenues that grew 28%. It's the formal economy that's grown in size by over a third .

The MH data is just spectacular:
2016-17: Rs.90,525cr
2017-18: Rs.1,15,940cr (+28%)
2018-19: Rs.39,916cr (Q1 data only), or approx Rs.1,60,000cr for full year extrapolated.

The current fiscal year extrapolated figure is a 75% gain in tax revenues within two fiscals. It's a good barometer as to the size of the informal economy.

Just thinking openly here. @Suraj - could this spawn a complete network of unregistered dealers? A vertical integration of unregistered dealers/traders? Of course, this would be hard for a very big manufacturing concern. But on small & medium levels, can it be done? And if it is done, will it spawn another smuggling network as during the rice smuggling across state border days?

Suraj · Post by **Suraj** » 03 Jul 2018 05:31

Shanmukh, I suggest you read the original article to understand why it's not worth their time to do so.

Aditya_V · Post by **Aditya_V** » 03 Jul 2018 10:24

James wrote:
Aditya_V wrote:Looking at the Historical data of exhange rates from 2013 -2018, we see the Rupee CNY rate today is simlair and Rupee has actually appreciated against Malaysian Ringgit, Thai Baht, Rupiah, Aust Dollar, Can Dollar, Euro, GBP and almost every other currency. This fact is lost on the secular crowd.
While this may be true, it is of little practical value, as overwhelming majority of India's trade (and specifically imports) are designated in US dollars - even for trade with the mentioned countries (maybe with some exceptions for Euro and GBP). So for a net importing country like us, currency depreciation against USD will result in higher landed cost of imports, potentially increasing inflation as well.

While international trade is through dollar, the dollar price is fixed based on local currencies. SO if Dollar gains against Euro and Rupee the European supplier will have more leaway to cut the dollar price and thats what the Indian buyer trackign exhange prices will negotiate for. SImilarly for CHinese , South east Asian countries etc.

When the Rupee collapses against all currencies like in 2013, it means the Indian currency is screwed.

A_Gupta · Post by **A_Gupta** » 03 Jul 2018 14:53

India's infrastructure output rose 3.6 percent year-on-year in May 2018, following a downwardly revised 4.6 percent increase in April. Production growth slowed for steel (0.5 percent vs 3.8 percent), coal (12.1 percent vs 16.0 percent) and cement (5.2 percent vs 16.5 percent), while output fell for crude oil (-2.9 percent vs -0.8 percent) and natural gas (-1.4 percent vs 5.8 percent). In contrast, production rose at a faster pace for refinery products (4.9 percent vs 2.7 percent), electricity (3.5 percent vs 2.1 percent) and fertilizers (8.4 percent vs 4.6 percent).

Via trading economics.com

Suraj · Post by **Suraj** » 04 Jul 2018 01:09

This is a good move. The government needed to account for the rapid formalization of the economy post DeMo and GST:
GDP, retail inflation base years to be changed to 2017-18 and 2018

The government will change the base year for calculation of GDP and retail inflation to 2017-18 and 2018 respectively, which is likely to come to effect by 2019-20.

The last base year for GDP, IIP and consumer price index was revised to 2011-12 and 2012 (for inflation), Minister of Statistics and Programme Implementation Sadananda Gowda said on Tuesday.

"The revisions facilitated more accurate assessment of the progress of the economy and the society. Steps are being initiated for the next round of revision also, for GDP we would like to revise the base year to 2017-18 and base year for consumer retail inflation to 2018," Gowda told reporters.

Govt shuns bad bank, opts for AMC route; 5-pronged strategy to resolve NPAs

In its much-awaited recommendations, a panel of public sector bankers has suggested against setting up a bad bank and instead came up with a five-pronged strategy to resolve non-performing assets (NPAs), depending on the amount of stressed assets.

The strategy to deal with NPAs included banks setting up a dedicated vertical to deal with smaller stressed assets of less than Rs 500 million, inter-creditor agreements to deal with loans between Rs 500 million and Rs 5 billion, and setting up asset management companies (AMCs) for loans above Rs 5 billion, with money raised through alternative investment funds (AIFs).

It also suggested resolving bad debts under the Insolvency and Bankruptcy Code (IBC) and setting up a trading platform for assets.

Experts found the strategy incremental, but said efforts were being made to create a market for assets first, which is commendable.

The recommendations have been accepted by the government, Union Finance Minister Piyush Goyal told reporters.

Five-pronged strategy to resolve NPAs
* Accounts with non-performing assets (NPAs) up to Rs 500 million: Banks should devise templated resolution approaches for different types of assets. Resolution should be completed within 90 days
* Accounts with NPAs between Rs 500 million and Rs 5 billion: Inter-creditor agreement to authorise the lead bank to implement a resolution plan in 180 days
* NPAs with above Rs 5 billion: Asset management company/alternative investment fund approach
* NCLT/Insolvency and Bankruptcy Code process
* Asset trading platform for both performing and NPAs

chetak · Post by **chetak** » 04 Jul 2018 13:27

Looks like sterlite is moving fast to protect its economic interests. India just cannot afford to lose a huge chunk of its strategic copper production facilities in such a surgical strike by vested off shore interests.

Everything in TN err, dravida nadu is now "left wing radical" influenced. And where the question of separatist tendencies comes in, the rolers and the ropers are never far behind.

It is however very interesting that the fightback has taken such a beguiling turn.

Instigated By Left Wing Radical Organisation : Tuticorin Villagers Say In Their Petition

Instigated By Left Wing Radical Organisation : Tuticorin Villagers Say In Their Petition

by Swarajya Staff - Jul 02 2018,

The Sterlite plant in Thoothukudi.

A Tamil separatist left-wing group called 'Makkal Athikaram' (People Power) had infiltrated protests in Thoothukudi demanding closure of Vedanta Resources Sterlite Copper plant and was actively brainwashing a section of people, according to a testimony by coastal villagers. Robert, head of the association for traditional catamaran fishermen of Thoothukudi and local fishermen association head Isakimuthu along with men and women from the coastal villages gave a detailed petition to the Thoothukudi District Legal Services Authority, reported Deccan Chronicle.

They said that originally, the local people had decided only to conduct an attention-demanding civil protest at a school campus on the day the tragic shooting event took place. From April onwards, there seemed to have been systematic infiltration by the fringe group among the youths and women in selected coastal villages.

On 23 April , these groups first organised a rally of the people to the pollution control board to petition against Sterlite. This rally was without incidents but it also marked the shift of leadership - subtly ousting of the local leaders and ‘Makkal Athikaram’ taking over.

Then in specific areas like area of the Mary Church, Cruz-puram and Fatima Nagar were targeted. Lawyers of the above organisation instigated the youths and women of this area that they should agitate against police oppression. So while most people believed that 22 May rally would be as peaceful as April rally, the ‘sudden instigators’ disappeared.

The petitioners further pointed out that none of these 'sudden leaders’ got even a scratch on them and they completely disappeared after the tragedy.

These revelations from the coastal villagers on a specific anti-Indian left wing radical organisation and their methodology points to how in Tamil Nadu the agitations are aimed to create human tragedies which in turn can be used to perpetuate more agitations and recruitment among the unemployed state youth for the secessionist cause

A_Gupta · Post by **A_Gupta** » 04 Jul 2018 16:43

The Nikkei India services Purchasing Managers' Index, or PMI, rebounded to 52.6 in June from 49.6 in May, marking the sharpest rate of expansion in a year.

https://asia.nikkei.com/Business/Market ... ly-in-June

Suraj · Post by **Suraj** » 04 Jul 2018 22:23

Rs 3.8 trillion from 70 accounts need NCLT resolution by September: Report

Nearly 70 large accounts with exposure worth Rs 3.8 trillion will require resolution under the Reserve Bank's revised framework by September, warns a report.

These accounts are mainly from the power, engineering, procurement, and construction (EPC) and telecom sectors.

The report also said state-run banks are estimated to report pre-tax loss of Rs 419-1016 billion in the current fiscal depending on the haircuts they may have to undertake on stressed assets undergoing resolution.

In FY18, PSBs reported a loss before tax of Rs 1.30 trillion.

"We estimate an additional Rs 3.8 trillion of exposure across 70 large accounts to require resolution by September 1," rating agency Icra's head for financial sector ratings Anil Gupta said today.

Of these, 34 accounts total 41,000 mw of power generation capacity with total debt of Rs 2 trillion. This accounts will require a resolution under the revised resolution framework.

Of the Rs 3.8-trillion exposure, the agency estimates that nearly 92 per cent is already classified as NPAs by the lenders.

More on June services PMI - the gains are primarily due to new orders, despite an uptick in inflation:
June services activity sees sharpest rise in a yr due to jump in new orders

A spurt in new clients even as orders from existing buyers surged meant that services sector activity in June expanded at the fastest pace in a year, showed the widely tracked Nikkei India Services Purchasing Managers’ Index (PMI).

Services PMI for June climbed to 52.6, recovering from the marginal contraction of 49.6 in May. The 50-point mark separates expansion from contraction. Despite the June data showing sustained growth in key parameters, the sector has remained volatile. In the 12 months to June, the sector contracted five times in the PMI measure.

Service activity had contracted in May for the first time in three months as rising price pressure led to a decline in new business orders. But in June, new orders boosted by strong underlying demand contributed to new client wins at the fastest pace in 12 months, according to the report by IHS Markit, compiler of the PMI survey.

In June, existing clients raised their share of orders at the fastest pace in 12 months even as the level of new business received by manufacturing companies rose at the fastest rate since last December in June. This sequence of uninterrupted growth over the last eight months has been attributed to strong market demand.

The momentum of the business investment cycle is clearly heading up:
SMEs raise Rs.8.25 billion through IPOs in Q1 2018-19, more than 2x growth from previous fiscal

Small and medium enterprises (SMEs) raised a staggering Rs 8.25 billion through initial public offerings in the first quarter of 2018-19, more than a two-fold jump from the preceding financial year.

Funds raised through initial public offers (IPOs) were meant for business expansion plans, working capital requirements and other general corporate purposes, according to offer documents.

A total of 47 companies got listed with initial shares-sale offers worth Rs 8.25 billion during April-June quarter of 2018-19 as compared to 24 firms which tapped the IPO route to garner Rs 3.1 billion in the same period of the previous year, as per the data provided by merchant banker.

This reflects a significant rise in the amount raised through SME platforms of BSE and NSE.

Further, average issue size also increased to over Rs 170 million during the period under review from Rs 130 million in the first quarter of 2017-18.

MSP hike could stoke inflation, prompt RBI to raise interest rates: Experts

India on Wednesday raised the government-mandated price for summer-sown crops such as rice and cotton by the most since Prime Minister Narendra Modi came to power in 2014, as he looks to woo millions of poor farmers ahead of a general election next year.

The country announces support prices for more than a dozen crops each year to set a benchmark. But analysts say the median hike this year was 25 per cent compared with 3-4 percent in the last three years, which could hit government finances and stoke inflation.

"The government is committed to realising the vision of doubling farmers' income by 2022, towards which it is working on a comprehensive strategy," Radha Mohan Singh, the minister for agriculture and farmers' welfare, said in a statement after a meeting of Modi's cabinet.

Rural India voted overwhelmingly for Modi's Bharatiya Janata Party four years ago to hand him the biggest mandate in 30 years. But a crash in commodity prices has meant his immense popularity in the countryside has waned over the past few months.

The government, however, said on Wednesday the latest hike in the so-called minimum support prices (MSPs) would help farmers increase their income and boost the economy.

The total cost to the government would be Rs 150 billion (Rs.15000 crore, $2.18 billion), interior minister Rajnath Singh, himself a farmer, told reporters, adding that it would be wrong to say inflation would increase due to the hike.

A_Gupta · Post by **A_Gupta** » 06 Jul 2018 17:13

Bank loan growth YoY was above 12% for the last reporting period (upto 22 June).
Via tradingeconomics.com (notice the y-axis begins at 4%):

We can hope this is sound investment unlike the earlier highs that created the NPA crisis.

A_Gupta · Post by **A_Gupta** » 06 Jul 2018 18:12

Does anyone have the numbers for India gross capital formation as a fraction of GDP, post 2016?
Note: I have these figures for before and upto 2016.
Note: I have recent gross capital formation absolute numbers in nominal rupees upto the first quarter of 2018. The problem with simply taking the ratio with GDP in nominal rupees is that I think the deflator for capital is different than deflator for the GDP as a whole.

I expect that Gross Capital Formation as a fraction of GDP should be pretty much on a curve like the bank loan growth above.
Note: the bank loan growth is faster than GDP growth, so as a fraction of GDP it is improving.

Suraj · Post by **Suraj** » 06 Jul 2018 19:45

You will have to find the CSO official GDP report for each fiscal year, released on May 31 after that year, eg for 2017-18 was released May 31 2018 .

Austin · Post by **Austin** » 08 Jul 2018 15:42

How will Anil Ambani-led Reliance Group look like in future?

The total market value of the Anil Ambani's Reliance Group companies comes to less than Rs 50,000 crore now, compared to aggregate peak values of over Rs 4 lakh crore.

Amidst debt worries, the Anil Ambani -led Reliance Group is on an exit spree - 2G services, telecom towers, spectrum, real estate, Mumbai power distribution, DTH among others. But while it is exiting from many parts of the telecom business, it has tied up with a slew of global defence majors for starting production in India and, recently, commenced construction of a manufacturing facility of Dassault Reliance Aerospace (DRAL) in Nagpur.

How are all these developments changing the group?

The big change is that its flagship telecom business Reliance Communications (RCom) will shrink in size and scale while its management control goes to lenders. The company has now offered 51 per cent stake in the entity to lenders for the debt they hold. The company will repay over Rs 27,000 crore debt-- raising Rs 17,000 crore through monetisation of spectrum, towers, fibre network and media convergence nodes. Another Rs 10,000 crore will be through the sale of real estate assets across eight major cities. Post repayments and debt to equity conversion, the debt will come down to Rs 6,000 crore from Rs 44,000 crore now.

The market valuation of Reliance Naval & Engineering (RNE), the erstwhile Pipavav Shipyard which was acquired by Reliance Infrastructure in 2015, is now close to that of RCom today. RCom which had a peak market cap of Rs 1.69 lakh crore on January 9, 2008, is now valued at Rs 3,907 crore. Compared to the January 2016 market value, the RNE valuation has fallen 42 per cent now.

Reliance Power, which had a Rs 11,700 crore IPO in 2008, is now valued at Rs 11,472 crore, lower than the capital it raised from IPO. The peak valuation of Reliance Power was over a lakh crore in February 2008. The IPO power of Anil Ambani's group hasn't faded yet as the Rs 1,540-crore IPO of Reliance Nippon Life Asset Management (RNAM) got overall subscribed 81.49 times at the end of last week.

Reliance Capital is the largest company in the group considering the valuation in the market, though the company's value is one fifth of its peak. The engineering, procurement and construction (EPC) firm, Reliance Infrastructure is the second largest in the group according to the market capitalisation. The total market value of the Anil Ambani's Reliance Group companies comes to less than Rs 50,000 crore now, compared to aggregate peak values of over Rs 4 lakh crore. For a comparison, his elder brother Mukesh Ambani's Reliance Industries is valued Rs 5.95 lakh crore in the market.

With the exit of 2G, Mumbai power distribution and DTH businesses, Reliance Group's B2C size will be drastically reduced. In parallel, the defence and infrastructure businesses will demand larger consolidation -- especially the consolidation of engineering and manufacturing activities. The group may look like a mini-L&T, except a few businesses outside, say some industry experts.

Austin · Post by **Austin** » 08 Jul 2018 15:44

From 4 lakh crore to less than 50K crore this is a big down for Anil Ambani group . which Mukesh group is valued at ~ 6 lakh crore

Kashi · Post by **Kashi** » 08 Jul 2018 18:15

Time will tell whether his fortunes will bounce back, but I don wonder if Chhota bhai must be thinking that he was better off being a junior partner to Mota bhai instead of charting out on his own.

souravB · Post by **souravB** » 08 Jul 2018 21:07

Very Informative video on Indian city's slum woes and land problem.
a great quote was

slums in Mumbai is not as much poverty problem than it is a space problem

Karthik S · Post by **Karthik S** » 08 Jul 2018 21:20

This has always baffled me. Hoped with new govt. these idiotic rules would be relaxed. Also, so many buildings are stuck because of lack of approvals from civil aviation etc. Not only we have lowest FSI, but also such bureaucratic hurdles. As mentioned in the video, if FSI is raised, houses will become more affordable.

nandakumar · Post by **nandakumar** » 08 Jul 2018 22:35

Karthik S wrote:This has always baffled me. Hoped with new govt. these idiotic rules would be relaxed. Also, so many buildings are stuck because of lack of approvals from civil aviation etc. Not only we have lowest FSI, but also such bureaucratic hurdles. As mentioned in the video, if FSI is raised, houses will become more affordable.

Well if you are a politician whose wealth is stashed away in urban land holdings would you do anything (such as hiking FSI) that undermines your wealth?

Supratik · Post by **Supratik** » 09 Jul 2018 19:24

The Sikkim growth story.

https://swarajyamag.com/politics/how-ch ... owth-story

Mukesh.Kumar · Post by **Mukesh.Kumar** » 09 Jul 2018 22:37

Largest mobile manufacturing facility globally setting up in India

Slowly, step by step we are moving in right direction.

nam · Post by **nam** » 09 Jul 2018 23:19

This is going to span the crucial Electronics ecosystem, based on which the Chini have dominated the export market. Hope more Indian state compete and grab the share of electronic manufacturing.

Slowly need to tweak the custom rules to make it economically nonviable to import component and start manufacturing here.A** K*** of Taiwan, SK & Japan is what is required.

Next step is force the Boeing and Airbus to open assembly and parts manufacturing here given the large orders we place. If Trump babu can put tariffs on Indian goods, I am sure GoI can roll out some tariffs on Boeing...

Suraj · Post by **Suraj** » 09 Jul 2018 23:33

Even more signs of growing economic momentum:
India Inc to post 12.8% revenue growth in Q1; highest in three years

India Inc will deliver the highest quarterly revenue growth in three years at 12.8 per cent in the April-June period, but high oil prices will narrow profit margins by 0.20 per cent, a report said on Monday.

This would be the third consecutive quarter of double digit growth, but the jump in performance in the earlier two quarters could have been attributed to a low base on account of demonetisation and GST implementation slump, the research arm of domestic rating agency Crisil said.

Crisil Research's senior director Prasad Koparkar said 15 of the 21 key sectors will report a double-digit growth for Q1FY19 and volume pick-ups are expected both from both the consumption and commodity-linked sectors.

Volume growth will lead to automobiles, retail and airline services to log a revenue growth in excess of 15 per cent, it said.

Automobiles, steel products and pharmaceuticals are expected to log improvement in operating margins, but the margins for airline services, cement, natural gas, sugar and telecom services will be impacted by higher commodity prices, its director Hetal Gandhi said.

Hiring activity up 9% in June; auto sector sees highest growth: Report

Hiring activity increased by nine per cent in June 2018, on a year-on-year basis, according to a jobs site which tracks the numbers.

The Naukri JobSpeak Index for June 2018 was at 2,047, marking a nine per cent increase in hiring activity from June 2017. The index was at 1,885 in June 2017.

According to naukri.com, the index has been calculated based on job listings added to the site month-on-month. July 2008 has been taken as the base month with a score of 1,000.

The auto and ancillary sector witnessed the highest growth of 26 per cent in hiring, followed by telecom industry where recruitment grew by 23 per cent in June, said a statement from the site.

Samsung plant will enhance economy, boost India-Korea ties: PM Modi

Prime Minister Narendra Modi said on Monday the new Samsung mobile factory in Noida will further strengthen the bilateral relations between India and South Korea and enhance India's economy, adding that it will not only generate more jobs but also make India a global export hub.

Inaugurating the new facility, spread over 129,000 sq metres at Sector 81, Modi said Samsung will export 30 per cent of the handsets made at the factory to other markets.

The inauguration ceremony was also attended by Uttar Pradesh Chief Minister Yogi Adityanath and senior Samsung officials including Vice Chairman Jay Y Lee.

"India is currently second in terms of phone manufacturing. Out of 120 mobile factories, 50 are in Noida only. Altogether, over 400,000 people are working in those units and Samsung is spearheading this with a workforce of 70,000 people," Modi said.

"The new facility with give direct jobs to 1,000 people, taking the existing workforce at this plant to 6,000. The best part is that the company will export 30 per cent of the handsets made here to other markets," he said.

Launched in the presence of Modi and South Korean President Moon Jae-in who took the Metro to reach the facility, the plant will help Samsung India double its annual mobile production capacity to 120 million units by 2020.

The PM added the number of manufacturing factories in mobiles had gone up to 120 from just two since 2014.

All Samsung mobile phones, including the flagship Galaxy S9, S9+ and Galaxy Note 8, are being manufactured at the Noida plant.

hanumadu · Post by **hanumadu** » 10 Jul 2018 03:52

Mukesh.Kumar wrote:Largest mobile manufacturing facility globally setting up in India

Slowly, step by step we are moving in right direction.

To go with it, we should have had some semi conductor companies by now. Chips are one of the most expensive parts of a mobile phone and home made chips would have helped a lot in achieving net zero imports in electronics by 2022 as planned.

Having a domestic semi conductor industry will also give a push to developing semi conductor technologies in India. Asian semi conductor companies invest a lot in new semi conductor technologies. A country with the size of India and the technical man power it has would have been very advantageous to develop future semi conductor technologies and achieve complete independence from the west.

suryag · Post by **suryag** » 10 Jul 2018 08:53

Saar pardon me but chips are not that expensive as you make out to be, it is 7-10 cents/sq.mm and most chips that support basic 4G are about 50-70 sq.mm. The BOM is generally pushed up by the LCD an indication of the break up can be found here for iphoneX

https://technology.ihs.com/596781/iphon ... wn-reveals

yensoy · Post by **yensoy** » 10 Jul 2018 09:50

Apart from the strategic requirement, Fabs are useless to have. Fabs are environmental disasters - consume huge amounts of land & water and provide miniscule number of jobs. It's better to have the chip design houses in India - local and MNCs.

Even for strategic needs, most chips can be acquired commercially and stockpiled at much lower costs than trying to build them from scratch. Where we do need expertise and local production is in key technologies like GaAs/GaN for lasers and RF parts. No point trying to build flash memory or microprocessors in-house (at least for the time being), all that is a solved problem. Older generation microprocessors/controllers can be bought for pennies.

chetak · Post by **chetak** » 10 Jul 2018 10:55

Mukesh.Kumar wrote:Largest mobile manufacturing facility globally setting up in India

Slowly, step by step we are moving in right direction.

Is it mere screw driver technology or is there a significant locally sourced parts content to this phone manufacturing facility??.

hanumadu · Post by **hanumadu** » 10 Jul 2018 11:11

suryag wrote:Saar pardon me but chips are not that expensive as you make out to be, it is 7-10 cents/sq.mm and most chips that support basic 4G are about 50-70 sq.mm. The BOM is generally pushed up by the LCD an indication of the break up can be found here for iphoneX

https://technology.ihs.com/596781/iphon ... wn-reveals

Considering that most chips are quad core now, the cheapest processor would be around $25. Not a small amount and perhaps will match the LCD price for the kind of cheap phones which use that processor.

Suraj · Post by **Suraj** » 10 Jul 2018 16:56

chetak wrote:
Mukesh.Kumar wrote:Largest mobile manufacturing facility globally setting up in India
Slowly, step by step we are moving in right direction.
Is it mere screw driver technology or is there a significant locally sourced parts content to this phone manufacturing facility??.

Don’t derail this thread with Banditji-level questions like this.

A_Gupta · Post by **A_Gupta** » 10 Jul 2018 17:19

The Samsung India press release: https://news.samsung.com/in/make-for-in ... da-factory

IBEF (India Brand Equity Foundation) brief on Samsung India (PDF file)
https://www.ibef.org/download/Samsung.pdf

Supratik · Post by **Supratik** » 10 Jul 2018 21:04

You need the whole ecosystem to become an innovator from just a manufacturer. My guess will happen within the next five years with some govt push.

Supratik · Post by **Supratik** » 10 Jul 2018 23:56

RE sales up.

https://ultra.news/t-t/40779/indian-rea ... n-3-months