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

Post by chola »

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: 4451
Joined: 19 Jan 2005 01:05
Location: Pindi
Contact:

Re: Indian Economy News & Discussion - Nov 27 2017

Post by rsingh »

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: 3173
Joined: 12 Jun 2010 09:56
Location: Weak meek unkil Sam!

Re: Indian Economy News & Discussion - Nov 27 2017

Post by Ambar »

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: 9097
Joined: 02 Dec 2008 10:49

Re: Indian Economy News & Discussion - Nov 27 2017

Post by nachiket »

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: 15043
Joined: 20 Jan 2002 12:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by Suraj »

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: 1353
Joined: 06 Sep 1999 11:31
Location: Ulan Bator, Mongolia

Re: Indian Economy News & Discussion - Nov 27 2017

Post by vsunder »

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: 15043
Joined: 20 Jan 2002 12:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by Suraj »

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: 9097
Joined: 02 Dec 2008 10:49

Re: Indian Economy News & Discussion - Nov 27 2017

Post by nachiket »

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: 15043
Joined: 20 Jan 2002 12:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by Suraj »

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
BRF Oldie
Posts: 5461
Joined: 28 Mar 2020 01:07

Re: Indian Economy News & Discussion - Nov 27 2017

Post by Cyrano »

Is there source that gives a break up of what India is exporting and what categories are driving export growth?
Suraj
Forum Moderator
Posts: 15043
Joined: 20 Jan 2002 12:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by Suraj »

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
BRF Oldie
Posts: 5461
Joined: 28 Mar 2020 01:07

Re: Indian Economy News & Discussion - Nov 27 2017

Post by Cyrano »

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: 9097
Joined: 02 Dec 2008 10:49

Re: Indian Economy News & Discussion - Nov 27 2017

Post by nachiket »

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
BRF Oldie
Posts: 5461
Joined: 28 Mar 2020 01:07

Re: Indian Economy News & Discussion - Nov 27 2017

Post by Cyrano »

This is even more work to make sense of the data, LoL ! Nice try Nachiket ji ;-)
manish
BRFite
Posts: 848
Joined: 29 Jan 2009 16:13

Re: Indian Economy News & Discussion - Nov 27 2017

Post by manish »

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: 8760
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

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: 8760
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »



Check at around 3:28 min regarding payment system in India
Kakkaji
BRF Oldie
Posts: 3866
Joined: 23 Oct 2002 11:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by Kakkaji »

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
BRF Oldie
Posts: 2494
Joined: 29 May 2002 11:31
Location: USA

Re: Indian Economy News & Discussion - Nov 27 2017

Post by yensoy »

^^^^ A LOT has to change for that to happen but hey one can dream.
williams
BRFite
Posts: 874
Joined: 21 Jun 2006 20:55

Re: Indian Economy News & Discussion - Nov 27 2017

Post by williams »

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: 4570
Joined: 11 Aug 2016 06:14

Re: Indian Economy News & Discussion - Nov 27 2017

Post by arshyam »

"One of the best states in South Asia", eh? Interesting choice of words, one thinks...
williams
BRFite
Posts: 874
Joined: 21 Jun 2006 20:55

Re: Indian Economy News & Discussion - Nov 27 2017

Post by williams »

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: 1136
Joined: 17 Apr 2008 11:47
Location: Some where near the equator

Re: Indian Economy News & Discussion - Nov 27 2017

Post by kvraghav »

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: 32224
Joined: 16 May 2008 12:00

Re: Indian Economy News & Discussion - Nov 27 2017

Post by chetak »

$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/busin ... rld-285648
kit
BRF Oldie
Posts: 6278
Joined: 13 Jul 2006 18:16

Re: Indian Economy News & Discussion - Nov 27 2017

Post by kit »

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/busin ... rld-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: 3173
Joined: 12 Jun 2010 09:56
Location: Weak meek unkil Sam!

Re: Indian Economy News & Discussion - Nov 27 2017

Post by Ambar »

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: 1136
Joined: 17 Apr 2008 11:47
Location: Some where near the equator

Re: Indian Economy News & Discussion - Nov 27 2017

Post by kvraghav »

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: 32224
Joined: 16 May 2008 12:00

Re: Indian Economy News & Discussion - Nov 27 2017

Post by chetak »

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: 9097
Joined: 02 Dec 2008 10:49

Re: Indian Economy News & Discussion - Nov 27 2017

Post by nachiket »

Take the political discussions to the Politics thread. No more of that here.
Ambar
BRF Oldie
Posts: 3173
Joined: 12 Jun 2010 09:56
Location: Weak meek unkil Sam!

Re: Indian Economy News & Discussion - Nov 27 2017

Post by Ambar »

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: 15043
Joined: 20 Jan 2002 12:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by Suraj »

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: 1136
Joined: 17 Apr 2008 11:47
Location: Some where near the equator

Re: Indian Economy News & Discussion - Nov 27 2017

Post by kvraghav »

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.
chetak
BRF Oldie
Posts: 32224
Joined: 16 May 2008 12:00

Re: Indian Economy News & Discussion - Nov 27 2017

Post by chetak »

x posted from the political thread

This has the potential to bring about a drastic change in the now convoluted process of land acquisition for infrastructure and industrial uses. The LARR was maliciously implemented by the congis as advised by that BIF contaminated body and the mafia queen controlled NAC.

It was a landmine that was strategically placed by the BIF to stymie industrial and infrastructure growth by the incoming BJP's Modi govt.

It looks like some enterprising and acquisitive political parties have found innovative ways to get around the congi created logjam.

If used sensibly, this has the potential to speed up economic growth by freeing up crucial land assets for industrial and infrastructure development. Land acquisition issues have badly affected many of the ongoing projects of the railways as well as road building programs



In Crucial Verdict, Supreme Court Allows TN to Acquire Land Using State Laws, Not LARR


In Crucial Verdict, Supreme Court Allows TN to Acquire Land Using State Laws, Not LARR





The decision could set a precedent for other state to bypass the landmark Land Acquisition Act of 2013 by using state legislations instead.


Nihar Gokhale,
24/JUL/2021

The Supreme Court on June 29 has stamped its approval on Tamil Nadu’s decision to revive three state laws and retrospectively bypass the 2013 land acquisition and rehabilitation law to acquire private property.

The apex court’s verdict opens the doors for other states to follow suit.

The 2013 law, the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act or simply LARR, replaced the 100-year old colonial Land Acquisition Act. The colonial legal regime had allowed forceful acquisition of lands and arbitrary compensation payouts, sparking decades of land conflicts between the state and people. The LARR, passed by the erstwhile UPA government and with support from the Bhartiya Janta Party (then in opposition), came with more favourable provisions for those losing their lands, such as social impact assessments, a fixed range of compensation and need for public consent before acquisitions.

When it came to office, the BJP government amended the law to weaken it. It later withdrew these changes in the face of protests. But subsequently it allowed a number of state governments (across the political spectrum) to make similar amendments at their level.

Tamil Nadu went a step further. It tried to bypass the LARR altogether. It amended the LARR to exempt its application to three old state land acquisition laws that were similar to the colonial Land Acquisition Act. Maharashtra and Karnataka followed suit.

The Madras high court struck down this move in 2019, saying the old laws stood invalidated after the LARR was enacted. The Tamil Nadu government then passed a state law that revalidated the laws. Landowners filed a petition against this revival in the Supreme Court. The court has now pronounced that the revival of the laws was a “legitimate legislative exercise”.

It was “beyond debate that a legislature can validate an invalidated law by removing the cause for such invalidity through a legislative exercise,” the judgement read.

The court also held that Article 254 (2) of the Constitution allows states to deviate from the LARR as long as they have the consent of the president of India. The president, acting under the advice of the BJP-led Union government, has consented to all LARR amendments by states.

The judgement “opens the door for similar legislations by other states” and comes at a time when the LARR is facing several setbacks and reversals, said Madhuresh Kumar of the National Alliance of People’s Movements, which is a petitioner in a Supreme Court challenge to the dilutions to the LARR. “The 2013 law came about after a lot of struggle. It was not the best law, but it was better than the 1894 law as it recognised certain principles like seeking people’s consent and conducting social impact assessment. We thought we would build upon those principles. But instead states have circumvented the law and courts have also not stood for the rights of the people,” he said, citing the recent verdict and the March 2020 judgement interpreting Section 24 of the law.

Tamil Nadu’s revival of laws was with effect from 2013, so the Supreme Court judgement now regularises all the acquisitions done since then under state laws, which were put on hold by the high court. These include acquisition for the Chennai Metro Rail that has been opposed by affected people.

But this may not be the final word on the issue. The Supreme Court said it will now hear another challenge from a group of landowners in the state. They have argued that the validity of state laws along with the LARR would violate their right to equality under Article 14 of the Constitution.

Supreme Court’s decision

After the LARR came into force on January 1, 2014, many states diluted the 2013 law as it applied to their territories. Under the Constitution, land acquisition is a ‘concurrent list’ subject over which both the state and union government can make laws.

Most states, including Gujarat, Jharkhand and Telangana, amended the LARR to exempt some of its provisions from applying to certain types of projects. For instance, Gujarat exempted acquisitions for infrastructure projects from doing a social impact assessment.

But Tamil Nadu mounted a more ambitious challenge to the LARR. It decided to exempt the LARR entirely from acquisitions for certain categories of projects, including industrial and infrastructure projects. The state revived three outdated laws (here, here and here) that were largely used for acquiring land for such projects. In fact, two of the laws – on land acquisition for industrial purposes and highways – account for a majority of land acquisitions in the state. The laws are similar to the repealed colonial land acquisition law and allow forceful acquisition of land without social impact assessments, consent or other provisions of the LARR.

The state’s attempts were struck down by the Madras high court in 2019 in a petition filed by landowners affected by acquisition for highways and projects like the Chennai Metro Rail. The court said that the state laws were inconsistent with the LARR and were hence rendered void on the day the LARR became law. Two weeks later, the state government nullified the court’s verdict through a state legislation, which again revived the three laws. Now, the Supreme Court has upheld this nullification of the high court verdict.


The legal arguments over Tamil Nadu’s actions centre around interpretations of Article 254 of the Constitution, which governs inconsistencies between state and Union laws on the same subject. Article 254 (2) says a state law inconsistent with a Union law can remain in force only if it is assented to by the president. Otherwise, it is rendered void.

The Supreme Court’s judgement, delivered by a bench comprising Justices A.M. Khanwilkar and Dinesh Maheshwari, holds that when a state law is rendered void due to Article 254, the state legislature can still revive the law through an amendment “substantively changing the basis of voidness”. And it can do this retrospectively.

The court held also that once the requirements of Article 254 (2) were followed by the state legislature, any inconsistency between state and central laws becomes “inconsequential” and is “said to have been Constitutionalised.”

Consequently, the court held that there was no point in analysing whether the Tamil Nadu state laws were inconsistent with the LARR. In its words, “the whole exercise of pointing out any repugnancy after a validating Act has obtained the assent of the President is otiose”.

The court also said the Tamil Nadu legislature had followed the lawful procedure in nullifying the high court judgement.

Tamil Nadu, which was represented by Attorney General K.K. Venugopal, had argued that it enacted the 2019 law reviving the state laws “keeping in mind the State interest, public interest and land owners’ interest”.

According to the judgement, the state government’s letter to the president seeking his assent to the 2019 Act had said that the saving and revival of state laws would have a “strong bearing on the public exchequer”.

Article 14 interpretation still open

The court may still put an end to state land acquisition laws. Its decision concerns only the legality of Tamil Nadu’s revival of laws and nullification of the high court judgement in 2019.

The court has not yet heard a clutch of related petitions from landowners arguing that reviving state land acquisition laws violates citizens’ right to equality before the law under Article 14 of the Constitution. The court had said it would take up these petitions after deciding the legality of the 2019 revival.

The Article 14 question stems from how state laws apply only to specific kinds of projects. Acquisition for other projects would still be done using the LARR.

So, a landowner having their land acquired for an industrial estate would face the harsh provisions of the state law, but a landowner facing acquisition for, say, an educational institute would be entitled to all benefits of the LARR.
SaraLax
BRFite
Posts: 527
Joined: 01 Nov 2005 21:15
Location: redemption land

Re: Indian Economy News & Discussion - Nov 27 2017

Post by SaraLax »

kvraghav wrote:
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.
kvraghav wrote:
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.
kvraghav Sir - i remember you showing a lot of dislike towards TN a few years before in this same forum when numerous Tamilnadu based companies/restaurants/logistics/trucks were being attacked by folks in Bengaluru because the SC pronounced a Cauvery water sharing verdict that did not go in favour of Karnataka. The then Sleeping Beauty CM Mr.Siddharamiah had to enforce Section 144 in Bengaluru and media all around the world focused on the riots in India's Silicon Valley - which had to be controlled via Local Police having to patrol on the roads & resort to shooting at its own people to quell the violence. I agree that this can only mean that Bengaluru is Cosmopolitan and Chennai is nowhere near a cosmopolitan city. Is Bengaluru a safer, less crime prone city (especially for women) than Chennai ?. Never mind - who cares. Chennai is not Cosmopolitan but Bengaluru is Cosmopolitan.

Just like how TN strategically marketed Hosur (nearby Bengaluru) as an ideal destination for Companies to setup their Industries, Andhra too marketed Sri City, nearby Tada as an ideal Destination for Companies wishing to setup their manufacturing plants nearby Chennai. Both TN & Andhra had made gains by adopting this strategy using the presence of a nearby Mega City of neighbouring State. Just look at Andhra and see how many Ports it also has built for enabling exports for the Industries running in its state. I mean - which sensible Indian State with a coast line will decide that they do not wish to provide quality port for companies which manufacture products in their region and wish to export them.

Inspite of being a Coastal state - how many Quality ports does Karnataka have when compared to TN (Chennai Port Trust, Ennore Kamarajar Port, Adani Kattupalli Port, Tuticorin Port) ?. No wonder that even Toyota which builds its Cars in Karnataka (aka KA) exports them from Ennore Port in TN !.

Compared to TN - How many 2Ws, Cars, Tractors, Buses, Trucks, Trains does Karnataka produce ?. How many of them get exported (German, French, Japanese, Korean & American a'la TN) to outside of India ?. Let us not even go into the topic of the huge swath of TN Origin 2W/3W/Tractor/Truck/Tyre Manufacturing companies in TN like TVS, Royal Enfield, TAFE, Ashok Leyland, MRF & etc.

Does KA produce any Electric Car (like Hyundai's Kona EV Car) ?
Does KA produce Electric 2Ws when compared to the scale in which TN produces (like Ampere, Ather - which actually originated from IIT Madras, OLA, TVS) ?
Does KA produce any Solar Cells (like how Vikram solar produces) ?

Does KA conceive, produce Train (like Train-18 or so) for our country & also export them ?

Does KA have any Home Grown World Class Textile Production Equipment MNC (i.e. exporter) or World Class Pneumatic Equipments/Compressor solutions MNC (i.e. exporter) like how TN does ?

Does KA state government own majority stake in a Blue Chip, Large Cap Indian Luxury products company like how TN state govt owns in Titan (where TATA group is 2nd biggest stake holder only) ?. FYI - TN state government's stake in Titan alone is worth nearly 42K Crore INR. An interesting Trivia - The Current RBI Governor belongs to TN IAS Cadre and used to sit on the board of Titan when he was working for TN State.

Does KA State government have a State PSU like TNPL (largest Indian exporter of Fine Paper products to > 30 countries, self-sufficient in its raw material input and one of the most eco-friendly manufacturer of paper products) ?

Does KA have a single equivalent for TN's Tiruppur (this city in TN alone exports more than 3 Billion USD worth Garments to rest of the world) ?

Do you think TN does not export anything other than Automobiles ?. Think about Software, Heavy Electrical Engineering products, Mobile phones, Telecommunication & Networking equipments (including 5G), Wind Turbines/Wind Mills, Laptops, PCs, Tablets, Motors, Pumps, Excavation, Construction & Mining Equipments, Speciality Chemicals, Pharma products, High end white capital goods and many more Value added products in numerous industries.

Let us not waste our time in this forum by providing illogical and baseless information (which btw reminds me of Lawhore).
nachiket
Forum Moderator
Posts: 9097
Joined: 02 Dec 2008 10:49

Re: Indian Economy News & Discussion - Nov 27 2017

Post by nachiket »

Mod Note: This is the final warning. Any more political posts here especially parochial bickering will invite instant warnings and/or bans. We have a separate thread for political discussions. Please move your discussion there. This thread is strictly for economic issues and updates.
kit
BRF Oldie
Posts: 6278
Joined: 13 Jul 2006 18:16

Re: Indian Economy News & Discussion - Nov 27 2017

Post by kit »

https://worldview.stratfor.com/article/ ... omy-growth

Vietnam is emerging as an economic powerhouse next door along with Bangladesh., its time India ramps up its efforts in attracting investment and an alternative for China based supply chains in consumer items and electronics
vijayk
BRF Oldie
Posts: 8760
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

Hi there,


On page 149 of the State Of Venture Report, you’ll notice something peculiar.


While every major venture market detailed in the report was up big in Q2 2021, China saw its 2nd straight quarterly decline in venture funding.


Yup — while the US, LatAm, Canada, Europe, India, etc. were all climbing, China was falling.

Full Report download link
https://cbinsights.us1.list-manage.com/ ... fe58cdc476



Image
vijayk
BRF Oldie
Posts: 8760
Joined: 22 Jun 1999 11:31

Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

https://www.financialexpress.com/indust ... 1/2301963/
PSU banks mobilise record fund of Rs 58,700 crore from markets in FY21

In addition, 12 PSBs raised funds from Tier I and Tier II bonds taking the total fund mobilisation to Rs 58,697 crore, highest amount garnered in any financial year.

Various reforms undertaken by the government including recognition, resolution and recapitalisation resulted in progressive decline in non-performing assets (NPAs) and subsequent rise in profit.

NPAs of PSBs had declined to Rs 7,39,541 crore as on March 31, 2019, Rs 6,78,317 crore on March 31, 2020 and further to Rs 6,16,616 crore as on March 31, 2021 (provisional data). Provision Coverage Ratio (PCR) at the same time increased sequentially to a high of 84 per cent.

As a result, PSBs in aggregate recorded a profit of Rs 31,816 crore, highest in five years, despite 7.3 per cent contraction in economy in 2020-21 due to COVID-19 pandemic.

The primary reason for PSBs to post such a Rs 57,832-crore turnaround — from a loss of Rs 26,015 crore in 2019-20 to a combined profit of Rs 31,816 crore — was the end of their legacy bad loan problem.

At the same time, comprehensive steps were taken to control and to effect recovery in NPAs, which enabled PSBs to recover Rs 5,01,479 crore over the last six financial years.

Overall credit growth of Scheduled Commercial Banks (SCBs) has remained positive for 2020-21 despite contraction in GDP (-7.3 per cent) due to the COVID-19 pandemic.

As per the RBI data, gross Loans and Advances of SCBs increased from Rs 109.19 lakh crore as of March 31, 2020 to Rs 113.99 lakh crore as of March 31, 2021.
Post Reply