Indian Economy News & Discussion - Nov 27 2017

[fanne]

hmm very good point!!

[JTull]

All exporters hold lot of dollars, even if they don't export to US. These are then held in US treasuries, funding massive deficit run by consecutive administrations.

This is US' Achilles heel. If there are no buyers of US treasuries, yields and inflation will keep climbing. It is very easy to see what will follow if this goes on unhindered.

Eurozone solved their dollar dependence and border tariffs for their region. And also created a counter weight to USD with their large body of regulatory compliance overhead for countries trading with them from outside the bloc. Euro has its own problems with fiscal discipline.

If all major economies other than these start trading in other currencies (fiat or digital - note I'm not using the word crypto), then overnight Western institutions (Fed, ECB, BIS), and payment platforms (SWIFT, visa, MasterCard) will lose oversight. And they won't be able to finance their deficits.

Multilateralism is the way forward. For far too long West has been a leech and a preacher. The sermons have to be stopped. But they won't succumb so easily. This fight will take couple of decades.

[vijayk]

https://www.livemint.com/companies/news ... 91774.html
Bajaj Finance Q1 results: Net profit rises 159% to ₹2,596 cr, new loans booked soars 60%

[vijayk]

https://www.livemint.com/news/foxconn-g ... 27659.html
Vedanta Electronics and Foxconn delegation called on Maharashtra Chief Minister Eknath Shinde and Deputy CM Devendra Fadnavis to discuss the joint venture Vedanta semiconductor and display fabrication city project

[vijayk]

https://economictimes.indiatimes.com/te ... 145149.cms
The delay in appointing a chief executive for the Indian Semiconductor Mission (ISM) is having a ripple effect in processing applications for the IT ministry’s $10 billion incentive programme to jump-start the semiconductor ecosystem, people aware of the discussions between top executives of Israeli tech company Tower Semiconductor and ministry officials said on Monday.

[vijayk]

https://twitter.com/IndianTechGuide/sta ... 3452879872

Indian Tech & Infra @IndianTechGuide

Semiconductor revolution in India

1) Karnataka - $3 Billion investment by Israeli firm ISMC Analog.

2) Tamil Nadu - $3.2 Billion investment by Singapore firm IGSS Ventures.

3) Maharashtra - $22 Billion investment by Foxccon and India's Vedanta.

https://twitter.com/AbhishBanerj/status ... 9701423104

Vedanta-Foxconn finalizes $22 billion investment for semiconductor manufacturing in Maharashtra

This is HUGE

Semiconductor manufacturing is by far the most technically sophisticated kind of manufacture on earth

https://swarajyamag.com/business/mahara ... ate-report

Maharashtra Cabinet Set To Allot Land For $22 Billion Vedanta-Foxconn Semiconductor And Display Fab Project In State: Report


Hope this is happening

[AkshaySG]

https://twitter.com/IndianTechGuide/sta ... nNCrg&s=19

20.5 Billion $ investment to revive BSNL announced.


In a period of disinvestment from PSU's and getting rid of loss making lumbering enterprises this represents a massive investment in a public firm. Additionally BSNL's network will mostly focus on 4G and not be available in Mumbai and Delhi because the scheduled BSNL MTNL merger has been shelved

Wondering if anyone more in the know can shed some light on why this huge investment has been taken up

I understand the strategic importance of having a state player in the Telco spectrum but these are serious funds we're talking about for a company that has been a huge money pit in the past

[kit]

https://twitter.com/IndianTechGuide/sta ... nNCrg&s=19

20.5 Billion $ investment to revive BSNL announced.


In a period of disinvestment from PSU's and getting rid of loss making lumbering enterprises this represents a massive investment in a public firm. Additionally BSNL's network will mostly focus on 4G and not be available in Mumbai and Delhi because the scheduled BSNL MTNL merger has been shelved

Wondering if anyone more in the know can shed some light on why this huge investment has been taken up

I understand the strategic importance of having a state player in the Telco spectrum but these are serious funds we're talking about for a company that has been a huge money pit in the past

this is likely to use BSNLs vast infrastructure to provide 4G all through India especially the rural regions that likely won't be covered by 5G and poor coverage by private companies. A welcome development similar to rails and road infrastructure., every Indian should be able to access 4G upwards

[Bart S]

If that is the goal, BSNL is the absolute worst way to go about it.

[AkshaySG]

this is likely to use BSNLs vast infrastructure to provide 4G all through India especially the rural regions that likely won't be covered by 5G and poor coverage by private companies. A welcome development similar to rails and road infrastructure., every Indian should be able to access 4G upwards

There are better ways to go about it imo...

Sell it off and include full coverage in every district as one of the clauses... Or give telcos a discount on 5G spectrum if they are agree to full coverage in rural India via 4G, Or some type of tax benefits etc etc

20 Billion $ is a massive amount and that in the hands of a company like BSNL which has previously squandered such opportunities and racked up huge debt is a very risky ploy.

They weren't even able to push through the VRS scheme to retire some of the underperforming employees in 2019 or the proposed merger with MTNL.

I hope BSNL turns it around but it's going to be very difficult for them to compete with the likes of Jio etc whose features and offerings are far better

[nandakumar]

For two years I was paying Rs 900 per month for BSNL copper wired 3G broad band access and got zero byte of data access in the heart of Chennai. Repeated service complaints would elicit a customer support phone call suggesting that I switch off and switch on the modem. When I tell them that I have done that and still the line is not on, they would promise to get back. But nothing happened. Last month I surrendered the data line but retained the voice connectivity. I am not hopeful of any turnaround on the part of BSNL though personally I would deeply wish for that to happen.

[uddu]

Its the same story everywhere expect for their Fiber internet which may be gaining some footholds in rural households. The installation seems outsourced and seems to work okay when it comes to timely installation. That will also vanish once 5G starts arriving. BSNL 5G could be the only hope that also after 2 years, will be there any market for them? Mostly who transition late from 4G to 5G.

[isubodh]

For two years I was paying Rs 900 per month for BSNL copper wired 3G broad band access and got zero byte of data access in the heart of Chennai. Repeated service complaints would elicit a customer support phone call suggesting that I switch off and switch on the modem. When I tell them that I have done that and still the line is not on, they would promise to get back. But nothing happened. Last month I surrendered the data line but retained the voice connectivity. I am not hopeful of any turnaround on the part of BSNL though personally I would deeply wish for that to happen.

This hope is costing us 1.64 Lakh crores ...many times over.
BSNL can't compete with commercial players, it should be mandated for remote areas only where no commercial service exists. That way it can focus on connecting and give up on race in towns that already have mature commercial infra ready.

[Bart S]

Its the same story everywhere expect for their Fiber internet which may be gaining some footholds in rural households. The installation seems outsourced and seems to work okay when it comes to timely installation. That will also vanish once 5G starts arriving. BSNL 5G could be the only hope that also after 2 years, will be there any market for them? Mostly who transition late from 4G to 5G.

I was a fiber customer, the connection maybe worked about 20% of the time, and returning the equipment to get a refund after cancellation required 2 visits to their exchange and dealing with arrogant disinterested govt employee types.

There is absolutely no chance that even 20 billion dollars of investment will result in any benefit to customers, as it is their management tiers were paid off by private players to sabotage their own setup and that is they haven't been able to even deploy 4G yet.

[vijayk]

Thought some of you may be interested ...

[vijayk]

https://www.cnbc.com/2022/07/25/indias- ... brate.html
India’s bold tax reforms 5 years on: Why it may be too soon to celebrate

India — the world’s fifth largest economy with more than $3 trillion in GDP — has managed to double its tax base since the introduction of GST in July 2017.

While collections have increased and compliance improved, analysts point out that it doesn’t necessarily lead to economic growth.

GST collections grew from around 7.2 trillion rupees, or $90 billion, in the fiscal year 2017-2018 to 14.8 trillion rupees in the fiscal year ending March 2022, government statistics show.

[A Deshmukh]

Not that I am justifying this decision, but wanted to add some points to factor:
Having a subsidized BSNL keeps rates down for other private players (Airtel, Jio, Idea/Vodaphone) and prevents a cabal.
Also, prior to 2019 elections there were rumors of Modi selling off BSNL and all the staff were pissed off and turned anti-govt.

[vijayk]

Not that I am justifying this decision, but wanted to add some points to factor:
Having a subsidized BSNL keeps rates down for other private players (Airtel, Jio, Idea/Vodaphone) and prevents a cabal.
Also, prior to 2019 elections there were rumors of Modi selling off BSNL and all the staff were pissed off and turned anti-govt.

This is general consensus ..

Govt is reviving BSNL to avoid monopoly of Reliance Jio and Adani entry in Telecom sector

Hope they improve the company

[KL Dubey]

Good article that explains the BSNL decision:

https://indianexpress.com/article/expla ... d-8056269/

My own take (not at variance with the article above):

1) The vast rural and remote swaths of Bharat can only be connected with some kind of government subsidized coverage. This is it.

2) There is strategic value in maintaining a goremint-controlled telecom network. Would also be a good testbed for indigenous platforms.

[Bart S]

Also, prior to 2019 elections there were rumors of Modi selling off BSNL and all the staff were pissed off and turned anti-govt.

They are unionized, completely uninterested in contributing to the national interest, and anti-govt anyway. How many of these people are there to make an actual difference in the elections, especially when compared with the benefits that $20B would bring to more deserving sections that actually vote for him?

[fanne]

Almost all that money will be invested through private contractors. BSNL will be the wrapper. This means lots of small and big players, efficiency, technological advancement etc. Not a bad goal. Yes, please do not bloat BSNL any further. Maybe the billing etc can also be outsourced, including customer support.

[shaun]

Cut off fixed line , a decade back . BB speed decent with no down time till date . Private contractors are managing and maintaining

[KL Dubey]

Also, prior to 2019 elections there were rumors of Modi selling off BSNL and all the staff were pissed off and turned anti-govt.

They are unionized, completely uninterested in contributing to the national interest, and anti-govt anyway. How many of these people are there to make an actual difference in the elections, especially when compared with the benefits that $20B would bring to more deserving sections that actually vote for him?

That's why they have a voluntary retirement scheme for BSNL, MTNL etc. It is worth something like $4 billion. Retire these deadwood employees and create new jobs. No union lafda.

[A Deshmukh]

few other factors:
- even retired folks may have to be given pension. Govt must have calculated the cost of closing down BSNL vs reviving it.
- any money going into BSNL would be staying in India. as fanne said money goes to small and medium contractors.
- bsnl offices must be sitting on real real estate assets.

[nandakumar]

On the subject of BSNL, the greatest advantage that it has is the statutory right to lay cable underground for the last mile. In my neighborhood there are at least six to seven DTH and telecom players having their cables strung from electric posts and tree tops. Every one of them is a sitting duck for the slightest variation in the weather. Then there is the phenomenon competitors indulging in sabotage by engaging local dadas to cut the cable of their rivals. ACT fibrenet is a frequent victim.

[Bart S]

On the subject of BSNL, the greatest advantage that it has is the statutory right to lay cable underground for the last mile. In my neighborhood there are at least six to seven DTH and telecom players having their cables strung from electric posts and tree tops. Every one of them is a sitting duck for the slightest variation in the weather. Then there is the phenomenon competitors indulging in sabotage by engaging local dadas to cut the cable of their rivals. ACT fibrenet is a frequent victim.

Sir, there is no such restriction on other providers either. Airtel and Jio have a lot of underground fiber, including at my location. It is a different matter that it doesn't necessarily make it more reliable (as it should), due to frequent JCB activity on the road outside my apartment complex. If some providers are running overhead cables they are basically being cheap or might not have wanted to pay off the municipality officials, rather than any monopoly by BSNL.

What is also disappointing with this plan though is that they plan to roll out 4G when they can just leapfrog and deploy 5G (most of which is SDR based and can support 4G as well in terms of compatibility).

[nandakumar]

Bart S
I do recall a law passed by TN government during Jayalalitha's time that State owned Arasu Cables alone will have monopoly on underground cable for DTH/ telecom operations. Of course this was targeted at the DMK controlled Sun TV's DTH operation which wanted to deliver content through cable rather than dish antennas on roof top. As a rule, digging the earth requires legal permission from an authority of the State. This springs from the notion that State owns all wealth under the ground. But you may be right. It is perhaps be more due to cost considerations rather than lack of statutory permission that prompts operators to go for overhead last mile connectivity.

[vijayk]

https://twitter.com/ssudhirkumar/status ... 1169847296


The HINDU projects consumer confidence good news with negative tone

CONSUMER confidence WEAKER in rural areas






A whopping 94% Urban and 88% Rural people have said that that their "current financial situation these days is better or about the same" compared to last year.


ability to meet regular monthly expenses as compared to an year ago" has either improved and remained about the same for a whopping 84% Urban and 81% Rural folks!


A whopping 96% Urban and 94% Rural folks are very confident that their situation will either be better or remain about the same one year from now.

[vijayk]

https://swarajyamag.com/ideas/real-esta ... ed-by-tech

Real Estate, With Huge Jobs Potential, Is Going To Be Energised And Eviscerated By Tech

Early this month, Larsen & Toubro (L&T) constructed a 12-storey house under the PM Awas Yojana’s mass housing scheme in just over three months (96 days to be exact) in Navi Mumbai. The job was executed for Cidco, the Maharashtra government’s mass housing and satellite cities developer. Ninety-six tenements were built by producing nearly 2,000 precast elements of the superstructure and architectural finishes in factory-controlled conditions. This included mechanical, electrical and plumbing works over a 64,000 feet built-up area.

In December 2020, L&T built its first 3D-technology-driven two-storey home in 106 hours at its factory in Kanchipuram, Tamil Nadu; and a few months ago, it delivered a seven-storey flight control system integrator centre for the Defence Research and Development Organisation in 45 days.

Technology does not always destroy jobs; what it does is polarise skill requirements, with demand for high skills raising wages at the top end, while low-end jobs proliferate at lower wages because technology now makes every job easier to do.

For example, once upon a time, we needed highly skilled carpenters to do our furniture. Today, a lot of the furniture is designed on computers and mass produced in computer-controlled factories, where engineers and software developers rule the roost. At the delivery end, you only need people who can screw wood and metal parts together to assemble furniture, a low-skill requirement that can be learnt in weeks. The furniture business has been IKEA-ised just as the mobility business has been Uber-ised.

[vijayk]

https://swarajyamag.com/business/india- ... oy-in-fy22
India Rising As Preferred FDI Shore For Manufacturing, Equity Flows Surge 76 Per Cent YoY In FY22

Battling the ongoing pandemic and global developments, India received the highest annual FDI inflows of $84.83 billion in FY 2021-22 overtaking the previous fiscal’s FDI of $81.97 billion and $74.39 billion received in FY 2019-20, as per Commerce and Industry Ministry data released on Thursday (28 July).

Singapore and USA lead the pecking order as India’s two highest sourcing nations in total FDI equity flows in FY 2021-22, with the former accounting for 27.01 per cent of the FDI and the USA 17.94 per cent, followed by Mauritius with a share of 15.98 per cent of the FDI, Netherland with 7.86 per cent and Switzerland 7.31 per cent, according to the data.

The latest trends also capture trends from more countries during FY 2021-22 with the FDI data being reported from 101 countries as compared to the 97 countries during the previous financial year.

Prior government approval or security clearance from MHA remains the norm for investments in sensitive sectors such as defence, media, telecommunication, satellites, private security agencies, civil aviation and mining, besides any investment from Pakistan and Bangladesh.

A closer look at the FDI data shows computer software and hardware industry leading the top 5 sectors in receiving the highest FDI equity inflow during FY 2021-22 with a share of 24.60 per cent and the automobile industry at the third place with 11.89 per cent of the FDI.

The services sector led by financial, banking, insurance, non financial/business, outsourcing, R&D, courier, technology testing and analysis and others accounts for 12.13 per cent share, trading 7.72 per cent and construction including infrastructure activities received 5.52 per cent FDI equity flows.

The performance of the R&D business also stands out with India catching $34.36 billion FDI equity inflow in this sector during calendar year 2021 which is 516 per cent higher on a yoy basis from $55.77 million in CY 2020, according to Commerce Ministry figures.

It indicates a robust and growing R&D sector which would benefit the economy by driving innovation and increasing productivity with the government making way for FDI under 100 per cent automatic route subject to applicable laws/regulations, security and other conditionalities

[vijayk]

https://swarajyamag.com/news-brief/ntpc ... ts-in-cuba
NTPC Seeks Bid For Over 1 GW Of Solar And Storage Projects In Cuba

NTPC Ltd, India’s largest integrated energy producer has launched a request for qualification (RfQ) to select developers to set up 1150 MW Solar PV projects with 150 MW/150 MWhr BESS in the Republic of Cuba.

The Project involves installation of 1,150 MW of solar power generating capacity at 175 locations across all 15 provinces of Cuba along with 150 MW/150 MWh of battery energy storage systems (BESS) at three locations.

These sites have been identified by the local government for the purpose of developing renewable energies in order to displace the large amounts of imported fossil fuels used for conventional power generation.

NTPC, under ISA Program-6, shall be supporting state-owned Union Electrica de Cuba (UNE) and Ministry of Energy and Mines (MINEM) of the Government of Cuba in this selection process, signing of project agreements and overseeing project implementation till commissioning.

[vijayk]

[vijayk]

Sidhant Sibal @sidhant
National Payments Corporation of India (NPCI) is engaged with more than 30 countries for RuPay card and UPI acceptance: MEA in Parliament

[kit]

[vijayk]

[Cyrano]

video

Fantastic work across India.

In my last trip to Bharat, mostly in and around Hyd city in May-June, I could see that Swacch Bharat is mostly forgotten, streets, public places and water bodies were as full of litter as ever, actually a lot more litter now since increasing prosperity automatically leads people to generate more waste.

People's littering behaviour has not changed one bit, irrespective of social class. And Govt waste collection continues to be non existent for most of the time - even in rural areas. No one cares, no one complains to local bodies unless it reaches gigantic proportions. Dustbins are rarely to be found, and where they exist they are rarely emptied, overflowing all around. of course there are few posh roads and localities that are quite clean but thats less than 0.0001% of the habitat.

My heart sinks and immense sadness engulfs me every time I see the squalor, the filth that almost no one around me finds unacceptable. I stubbornly carry my trash with me all day until I find a dustbin or return home and get mostly uncomplimentary comments.

This has to change. We can't claim to be a self respecting nation or a civilisation unless we really change this. Everywhere, irrespective of social class.

[vijayk]

Why can't we scale up or make this work in all places?

[vijayk]

https://www.business-standard.com/artic ... 422_1.html
GST collection jumps 28% YoY in July to second highest ever at Rs 1.49T (highest ever non-April reading). Run rate very fast approaching $20B per month.


For five months in a row more than Rs 1.4T

Revenue grown 35 per cent year-on-year (YoY) till July.

[vijayk]

https://blogs.imf.org/2022/07/26/global ... n-outlook/
Global Economic Growth Slows Amid Gloomy and More Uncertain Outlook

[ritesh]

Cut off fixed line , a decade back . BB speed decent with no down time till date . Private contractors are managing and maintaining

That is true for most operators, around 80-90% field staff is outsourced and rest are company employees.