Indian Economy News & Discussion - Nov 27 2017

Mollick.R · Post by **Mollick.R** » 25 Jan 2019 11:17

Supreme Court Upholds Insolvency And Bankruptcy Code In Its Entirety

https://www.bloombergquint.com/insolven ... s.zbk0FLF7

JayS · Post by **JayS** » 25 Jan 2019 15:24

Suraj wrote:Yes I agree and in general there's no need to be punitive in not permitting a prior promoter to bid on assets that were on the block and they did satisfy the requirements of clearing their prior dues by any means they arranged. Morality in the form of 'they have failed once and should not be allowed again' . It is still the creditors who make the decision and not the debtors, and the the promoters party in this case is not in charge of the decisionmaking either way.

Does the requirement include payment of the particular NPA account which is under consideration...?

JTull · Post by **JTull** » 25 Jan 2019 18:18

Mollick.R wrote:Supreme Court Upholds Insolvency And Bankruptcy Code In Its Entirety

https://www.bloombergquint.com/insolven ... s.zbk0FLF7

Great news!

Suraj · Post by **Suraj** » 25 Jan 2019 21:24

JayS wrote:
Suraj wrote:Yes I agree and in general there's no need to be punitive in not permitting a prior promoter to bid on assets that were on the block and they did satisfy the requirements of clearing their prior dues by any means they arranged. Morality in the form of 'they have failed once and should not be allowed again' . It is still the creditors who make the decision and not the debtors, and the the promoters party in this case is not in charge of the decisionmaking either way.
Does the requirement include payment of the particular NPA account which is under consideration...?

Any bidder - promoter or not - is bound to first clear any pending dues to the terms of the creditor of those dues. ArcelorMittal was obliged to clear unrelated dues in other business deals just for the privilege of bidding on Essar.

Vips · Post by **Vips** » 25 Jan 2019 21:38

JTull wrote:
Mollick.R wrote:Supreme Court Upholds Insolvency And Bankruptcy Code In Its Entirety

https://www.bloombergquint.com/insolven ... s.zbk0FLF7
Great news!

Yes but we have to hope that a review petition is again not filed for hearing before a 5 judge bench. The order was given by a 2 judge bench.

KL Dubey · Post by **KL Dubey** » 26 Jan 2019 00:12

Vikas wrote:Meanwhile Dhoot family has been playing the system for decades now.

You mean the "Dhoort" family

chetak · Post by **chetak** » 26 Jan 2019 01:15

Deleted.

Supratik · Post by **Supratik** » 27 Jan 2019 17:04

Extreme poverty in India falls below 50 million according to estimate.

https://timesofindia.indiatimes.com/ind ... 705787.cms

Supratik · Post by **Supratik** » 28 Jan 2019 00:39

India experiencing Adhaar-led technological revolution - Forbes.

https://www.forbes.com/sites/johnmauldi ... 333a872360

Katare · Post by **Katare** » 28 Jan 2019 07:00

Wow!!!

Neshant · Post by **Neshant** » 28 Jan 2019 08:41

Deleted

Supratik · Post by **Supratik** » 28 Jan 2019 18:27

You are not making any sense.

Singha · Post by **Singha** » 28 Jan 2019 23:51

According to the latest data published by the World Steel Association (Wordsteel), India has replaced Japan to become the second largest producer of steel in the world, behind only China.

“India’s crude steel production for 2018 was 106.5 Mt, up by 4.9 per cent on 2017, meaning India has replaced Japan as the world’s second largest steel producing country. Japan produced 104.3 Mt in 2018, down 0.3 per cent compared to 2017,” a 25 January report by Worldsteel said.

Suraj · Post by **Suraj** » 29 Jan 2019 00:09

Yep, it's been on the cards all year in 2018. I forgot to post the December stats update:
World Steel Dec 2018 stats
Note that all of CIS / USSR produced 101MT, to our 107MT. A matter of time before we overtake gross North America (US+Canada+Mexico) production (120MT) too, and the next to overtake is all of EU (168MT).

VenkataS · Post by **VenkataS** » 29 Jan 2019 07:13

Why are the Chinese producing (and perhaps consuming) more than 10 times as much steel as a similarly sized US economy (1.2 times US economy in PPP terms). Does it indicate the difference in manufacturing economies of the two countries or is it because of the scale of construction going on in China right now.

Singha · Post by **Singha** » 29 Jan 2019 07:55

Construction sector mostly
Also murican homes hardly use any steel mostly wood

uddu · Post by **uddu** » 29 Jan 2019 08:02

The Chinese steel is exported.
https://www.trade.gov/steel/countries/exports/china.asp

China exported 14.6 million metric tons of steel, a 28 percent decrease from 20.2 million metric tons in YTD 2017. China’s exports represented about 16 percent of all steel exported globally in 2017. The volume of China’s 2017 steel exports was almost double that of the world’s second-largest exporter, Japan, and more than double that of the third– and fourth-largest exporters, Russia and South Korea. In value terms, steel represented just 2.2 percent of the total amount of goods China exported in 2017.

China exports steel to more than 210 countries and territories. The 22 countries highlighted in the map below represent the top markets for China’s exports of steel, receiving more than 900 thousand metric tons each and accounting for 72 percent of China’s steel exports in 2017.

For most of the last decade, China has maintained a trade surplus in steel products. After a brief deficit in 2009, when exports fell due to the global recession, China’s exports have increased significantly, growing 288 percent between Q2 2009 and Q1 2018. Imports decreased by 43 percent over the same period. A decline in exports in 2017 caused the trade surplus to narrow by 36 percent to 59.5 million metric tons from 93.1 million metric tons in 2016. In YTD 2018, the trade balance continues this downward trend falling by 35 percent to 10.8 million metrics tons, down from 16.7 million metric tons in YTD 2017.

(We must be capturing those market of 210 countries.) Also Chinese Military modernization must have needed those steel including their ship building industry. They build everything from scratch. Along with that there will be a lot of Shanghai statistics added to it.

Suraj · Post by **Suraj** » 29 Jan 2019 09:03

This is the Indian economy thread . Please stay on topic .

Uttam · Post by **Uttam** » 30 Jan 2019 02:19

Though small, it is still an improvement. I'll take it!

India improves its ranking on global corruption index in 2018: Study

India has improved its ranking on a global corruption index in 2018, while its neighbour China lagged far behind, according to the annual index released by an anti-graft watchdog on Tuesday.

India rose by three points to 78 in the list of 180 countries in the world, while China ranked 87 and Pakistan 117 in 2018, the Transparency International said in its Corruption Perceptions Index (CPI) for 2018.
....................

Uttam · Post by **Uttam** » 31 Jan 2019 20:31

Good news. But it needs explanation. 0.5% change is too big to be ignored. Can somebody look at these numbers more carefully and explain why such a big revision.

Government revises FY18 GDP growth to 7.2% from 6.7% earlier

The government Thursday revised the economic growth rate upwards to 7.2 per cent for 2017-18 from the 6.7 per cent estimated earlier, mainly driven by performance of farm sector.

"Real GDP or GDP at constant (2011-12) prices for 2017-18 and 2016-17 stand at Rs 131.80 lakh crore and Rs 122.98 lakh crore, respectively, showing growth of 7.2 per cent during 2017-18 and 8.2 per cent during 2016-17 (from earlier estimate of 7.1 per cent)," the CSO said.

For the current fiscal, in May, the CSO in its advance estimate had projected a growth rate of 7.2 per cent.

The 2017-18 growth is lowest in four years. The previous low at 6.4 per cent was recorded in 2013-14.

"The First Revised Estimates for 2017-18 have been compiled using industry-wise/institution-wise detailed information instead of using the benchmark-indicator method employed at the time of release of Provisional Estimates on 31st May, 2018," said the Central Statistics Office (CSO).

The CSO has also released the Second Revised Estimates of National Income, Consumption Expenditure, Saving and Capital Formation for 2016-17.

The statistics office further said growth in the Gross Value Added (GVA) during 2017-18 was 6.9 per cent, down from 7.9 per cent in the previous fiscal.

During 2017-18, the GVA growth rates of primary (comprising agriculture, forestry, fishing and mining and quarrying), secondary (manufacturing, electricity, gas, water supply and other utility services, and construction) and tertiary (services) sectors have been estimated as 5 per cent, 6 per cent and 8.1 per cent as against a growth of 6.8 per cent, 7.5 per cent and 8.4 per cent, respectively, in the previous year.

As regards the per capita income, the CSO's first revised estimate said it was Rs 1,04,659 and Rs 1,14,958 for 2016-17 and 2017-18, respectively.

Gross Capital Formation (GCF), a barometer of investment activities, at current prices has been estimated at Rs 55.27 lakh crore for 2017-18, compared to Rs 47.41 lakh crore during 2016-17.

Giving reasons for variations in growth figures between provisional estimates (released in May 2018) and first revised estimates of GVA, CSO said it is based on updated figures on new data related to crop production and financial data.

Supratik · Post by **Supratik** » 31 Jan 2019 20:57

Revision of past GDP numbers is routine. Sometimes up, sometimes down.

Suraj · Post by **Suraj** » 31 Jan 2019 21:00

0.5% is not a big difference when it comes to GDP revisions . That is fairly routine . There’s an actual calendar of GDP estimates for every fiscal year - in February of the same year, the end of May in the following year and a final estimate one year later in end Jan . This was the last one .

Karthik S · Post by **Karthik S** » 31 Jan 2019 21:14

What's the contradictory claims that unemployment is at 45 year high but EPFO says opposite. I know people who switch jobs mostly withdraw their PF hence new PF account has to be created, but still both claims can't be this polar opposite.

Supratik · Post by **Supratik** » 31 Jan 2019 21:20

Both data may be right. Formal versus informal.

Supratik · Post by **Supratik** » 31 Jan 2019 21:24

To clarify. Some informal jobs may have disappeared due to formalization of economy through demo and GST. The change will be brutal for some people at the margins. How much is the question as it will also have an effect on elections.

Supratik · Post by **Supratik** » 31 Jan 2019 22:19

GST collection in Jan 19 has crossed one lakh crores. It is time for further rationalization.

Suraj · Post by **Suraj** » 31 Jan 2019 22:59

Karthik S wrote:What's the contradictory claims that unemployment is at 45 year high but EPFO says opposite. I know people who switch jobs mostly withdraw their PF hence new PF account has to be created, but still both claims can't be this polar opposite.

Please don't make posts like this that offer no reference to who/where such claims are being made. Please add links to both cases.

Supratik · Post by **Supratik** » 31 Jan 2019 23:17

He is talking about this

https://www.businesstoday.in/current/ec ... 15420.html

and this (latest available from google but Jan data is similar)

https://www.businesstoday.in/top-story/ ... 03012.html

shaun · Post by **shaun** » 31 Jan 2019 23:28

Opinion | In NSSO jobs data row, an apples to oranges comparison

https://www.google.co.in/amp/s/m.hindus ... tml?espv=1

VKumar · Post by **VKumar** » 01 Feb 2019 00:07

Increasing proportion of youth in population. Increased farm mechanisation leaving youth to search for non agri jobs. Increasing participation of women in kobs, crowding out men.
Increasing educational levels making rural youth migrate for urban jobs.
Better health increasing man-days available.
Manufacturing suffering from archaic labor laws, high interest rates.

And so on, all contribute to increase in PERCENTAGE of unemployed.

VKumar · Post by **VKumar** » 01 Feb 2019 00:10

Not to forget that thanks to reservation and cheating in exams, large numbers of educated youth are unemployable

Suraj · Post by **Suraj** » 01 Feb 2019 11:23

Official CSO Revised Estimate for FY2017-18 (PDF)

hanumadu · Post by **hanumadu** » 01 Feb 2019 11:43

Farmers having less than 2 hectares of land to get 6000 Rs / year as DBT costing 75,000 cr/year and benefiting 12 cr farmers. I guess this is in addition to the existing subsidies on fertilizers etc. The existing subsidies will not be affected.

Rupesh · Post by **Rupesh** » 01 Feb 2019 12:09

Defense budget increased by 1%. Doesn't even beat inflation.

arshyam · Post by **arshyam** » 01 Feb 2019 12:20

Looks like nothing for the salaried class this year - screwed again?

Rupesh · Post by **Rupesh** » 01 Feb 2019 12:28

^^
Only platitudes for salaried class. This is the second consecutive disappointing budget .

arshyam · Post by **arshyam** » 01 Feb 2019 12:31

2004 redux is playing out, India Shining in reverse.

Chidu for PM? Shudder!

Rupesh · Post by **Rupesh** » 01 Feb 2019 12:46

Full tax rebate up to 5 lakh.

Standard deduction increased to 50k and interest income 40k exempted, earlier it was 10k.

nash · Post by **nash** » 01 Feb 2019 12:54

Rupesh wrote:^^
Only platitudes for salaried class. This is the second consecutive disappointing budget .

Rupesh wrote:Full tax rebate up to 5 lakh.
Standard deduction increased to 50k and interest income 40k exempted, earlier it was 10k.

NOM but this type of reaction is everywhere in social media ...

Gus · Post by **Gus** » 01 Feb 2019 12:54

Arshyam...

Trust modi and keep calm.