Indian Economy News & Discussion - Nov 27 2017

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby vijayk » 09 Feb 2021 21:54

https://timesofindia.indiatimes.com/bus ... 680179.cms

NEW DELHI: The government has mopped up nearly 80% more road and infrastructure cess levied on petrol and diesel compared to what it had estimated for 2020-21.



the receipts on this account increased to nearly Rs 2.3 lakh compared to 1.3 lakh crore


The entire allocation of Rs 50,000 crore for Jal Jeevan Mission comes from this

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Vips » 10 Feb 2021 00:16

Would'nt it be a good idea to have a small cess on Petrol and Diesel sale that would go towards a dedicated fund for BRO for firming up our Border Roads? With adequate funds and world class road construction machinery at its disposal the BRO can speed up efforts required for securing our border areas. It is not the so much the difficult terrain but insufficient funds which is hampering our Border roads building.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Ambar » 10 Feb 2021 02:08

No more increase in cess and taxes on fuel, there's already enough anger everywhere about the recent fuel price hikes. While no doubt the government is trying to make up for the lost revenue in 2020 and to fund other programs, the middle class is bearing the brunt. People did not benefit when the oil prices fell to $30 globally but now that it has moved in the opposite direction so have the domestic prices. The biggest challenge the govt has is with the enforcement against tax defaulters, although there's been an impressive increase in the number of people filing income tax in the last 6 yrs, it is still a very small % of the population, so the govt is forced to make up through regressive taxes.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Uttam » 10 Feb 2021 02:16

To add to that, cess and taxes on fuel have a significant impact on industry. These cess and taxes translate into increased transportation cost, in turn reducing competitiveness of our industry.

Thankfully, a lot of these cess and taxes are used to improve transportation infrastructure like road, port, etc. These will help in the long run.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 10 Feb 2021 02:48

The current fuel cess collection is already significantly more than budgeted:
Government mopped up 80% more from fuel cess than expected

Some governments are more inclined to cesses than others. The choice of what to impose a cess for, reflects priorities. A cess for something of nationwide need (e.g. Swachh Bharat cess) makes sense to the current administration. I don't see them imposing a cess with limited applicability, i.e. border roads. I'm not saying BRO isn't critical, but that they work in a small part of the country. Cesses typically target concerns of nationwide utility, e.g. sanitation, education, health.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Vips » 10 Feb 2021 03:12

If cesses typically target concerns of nationwide utility like sanitation, education, health then how do we quantify the importance of Border security?

If new cess cannot be imposed for BRO then the funds collected from the existing tax on sale of Petrol/Diesel should be first allocated to firming up our Border roads. It is ridiculous to build highways and expressways when our soldiers take 2-3 days to reach border outposts due to insufficient funds allocated for building border roads. There should be a holiday on the massive investments for a year on funds spent on expressways and funds diverted to building roads in the border area. This should be done on a mission mode.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 10 Feb 2021 03:45

Let's step back from offering solutions and actually spend time on the problem shall we ? The problem is not as simple as 'need more money for {insert cause}' . In the case of BRO, this is probably better in a suitable mil forum thread on border infrastructure.

Soldiers guarding borders need good infrastructure. Yes of course.
2-3 days to reach border is very bad. Yes of course.

Between the above and 'here's an idea - let's apply a cess for BRO' there is a lot of empty space missing a lot of detail. There's a significant amount of information missing as to the current BRO budget, any shortfall, stalling in construction of border roads due to shortfalls, and a lot more. So that's the point I'm making here. Take the effort to dig deeply into the problem and then the solutions come from that - not from a cursory overview of the matter.

I'm not trying to be harsh here - I'm trying to emphasize why rigour is important. For decades, Indian economic policy has been run using these kinds of shallow 'good idea' policies that were poorly conceived and executed, to an extent that until late 2010s between 65-85% of India didn't have access to basic things like sanitation, roads, water and other things. In comparison, the per-capita spending per solder far exceeds historical per-capita spending on these basics. The administrations actions show that they tried to change that. Therefore it's really important to focus on the detail of the problem first .

While the soldiers' needs are important, and the spending on BRO has significantly increased, my position remains that the current administration will not impose a BRO cess unless there's a war. It's simply a reading of their priorities. They're not inclined to cesses to begin with, and when they do, they focus on spending with significant economic multipliers - something the FinMin repeatedly emphasized this budget. An additional cess with limited economic return for BRO is unlikely - any money's going to come out of budget.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby kit » 10 Feb 2021 04:38

https://timesofindia.indiatimes.com/business/india-business/india-to-be-largest-source-of-energy-demand-growth-to-2040-iea/articleshow/80763464.cms

Underpinned by "a rate of GDP growth that adds the equivalent of another Japan to the world economy by 2040", India will overtake the European Union by 2030 to move up to the third position, it said in the report.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 10 Feb 2021 13:13

Image
Business level almost fully recovered.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby chetak » 11 Feb 2021 01:34

a two judge bench overturned the ruling of a single judge who had found for amazon just last week.


Image

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 11 Feb 2021 08:40

Economy on the upswing: rail freight loading up to 119MT in January
This suggests a full year figure of 1.5 billion tonnes, which would bring India closer to #2 USA, which saw 1.7 billion tonnes in the most recent data. One year of DFCs should be enough to overtake the US .By 2025 traffic should hit 2-2.25 billion tonnes. China with 4.3 billion tonnes is the top ranked country.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Yagnasri » 11 Feb 2021 11:39

While good figure, in Bharat we move more by road. Road figures I am sure are also quite positive.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 11 Feb 2021 11:56

Posted in railway thread about the National Rail Plan described in the budget.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 12 Feb 2021 01:53

India to overtake EU as world’s third largest energy consumer by 2030: IEA
India will overtake the European Union as the world’s third-largest energy consumer by 2030, the International Energy Agency (IEA) said on Tuesday as it forecast India accounting for the biggest share of energy demand growth over the next two decades.

In its India Energy Outlook 2021, IEA saw primary energy consumption almost doubling to 1,123 million tonnes of oil equivalent as the Gross Domestic Product (GDP) expands to USD 8.6 trillion by 2040. India at present is the fourth-largest global energy consumer behind China, the United States and the European Union.

India will also overtake the combined EU in steel production within this decade. India already exceeds combined North America (US+Canada+Mexico) in steel production. Sometime soon - perhaps this month itself - India should hit the 10MT/month steel production mark. It ended 2020 with 9.8MT/month in December.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Kaivalya » 12 Feb 2021 21:51

Invariably Fuel price is seen as visible and disposable income. Even I keep going back to it thinking about what it is being spent on. I could not find the recent figures, I think the bulk of it seems to go to infrastructure building

First states get approximately 35-40% of excess

https://www.thehindu.com/data/data-for-every-rs-100-spent-on-petrol-by-indians-rs-63-goes-to-centre-and-state-as-tax-in-dec-2020/article33356223.ece

Centre invest its surplus like here in description/words. Shoddy table does not do a good job of explaining where the money is going or focuses only on CRIF

https://www.business-standard.com/article/economy-policy/govt-diverting-around-rs-17-000-crore-from-petrol-and-diesel-cess-kitty-119071600042_1.html

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby disha » 13 Feb 2021 02:00

In India several dense urban areas are evolving without a need for a personal vehicle. Put it this way, if you have access to metro (or public transport), in a very dense neighbourhood where the local grocery store and even the vegetable supplier provides you at the door service, the need for a personal transport, particularly with ola and other ride share companies evolving, is not necessary. Even going outstation is doable without a personal vehicle! If fuel prices are high compared to outside India, it is due to state and national taxes.

In that sense, the fuel price movement is not a factor. Since other costs far take away from the fuel price. For example, safety. Or comfort. Or experience.

As for food, India has diverse pallete. If the price of rice goes up, people will shift to say raagi muddalu. Experience of Kellog, McDonald in Indian market reveals that. So much so that you can be in Tiruvannamalai and can order generally good quality pizza at home delivered under Rs. 150 (or $2) per person. If some food items get inflated, the consumer can rapidly change their food habits bringing overall food inflation in control. If there is local food inflation, it is supply uptake constraint (neither supply nor demand, but simply not able to send the supplies in time).

Point is, several urban areas in India is already at an inflection point where food and fuel, which are volatile are not needed to be factored in core inflation. The highest cost for most is health care, education, residences, safety, cleanliness and utilities.

There is a good reason why the NSO (India) tracks CPI and CFPI and breaks it down further into urban and rural category.

Looking at the January' 21 inflation http://mospi.nic.in/sites/default/files/press_release/CPI%20Press%20Release%20January%202021.pdf

1. Sharp drop in inflation in January '21 (compared to Jan 20). First column for Rural and second for Urban. Final column is combined.

Rural Urban Combined
CPI (General) 3.23 5.06 4.06
CFPI 1.11 3.36 1.89

2. If you look at Consumer Food Price Index, some food items might have seen negative inflation (that is deflation) to account for such low food inflation y-o-y coming out of post-pandemic for a major developing economy!

Correlate above with reports of food shortage in China and of course famous cake run in Pakistan.

My reasoning on item #1 and #2 is simple, any input in improving the supply side infrastructure is resulting in multiplied (2x-4x) outcome on supply efficiences.

What does this do? Government can do more borrowings to create the necessary social and capital infrastructure. And this will further bring the inflation down!

In my mind, Social infrastructure are things like toilets, utilities (water/electricity), primary education, primary health, primary care, clean and safe public and private places, efficient police and law.

And capital infrastructure is the ports, roads, rails, power generation & distribution, water ways, critical technologies (nuclear, space, medicine, high-end research) etc

GOI has the space to ramp up spending on both and I think that is what the GOI has signalled in the current budget.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 13 Feb 2021 02:59

Industrial output grows 1% in December
Industrial production grew by 1 per cent in December, entering the positive territory after a month gap, mainly due to better performance of the manufacturing sector, official data showed on Friday.

The manufacturing sector — which constitutes 77.63 per cent of the index of industrial production (IIP) — recorded a growth of 1.6 per cent in December 2020, as per the data released by the National Statistical Office (NSO).

Mining sector output declined by 4.8 per cent in December 2020. However, power generation grew by 5.1 per cent.

The index had grown by 0.4 per cent in December 2019.

A Budget to rebuild India: Baton handed over to private sector, now implementation awaits
The theorists were looking at a counter-cyclical response in terms of higher liquidity in the system. However, this budget, very wisely, has chosen to accelerate the reforms agenda, which has been a critical component of the government’s pandemic response. It has also put a higher focus on capital expenditure away from populist measures like increasing allocation to direct benefit schemes which will help build productive national assets. In addition, it has also kept the tax regime largely stable; a big signal to the investors, as it removes uncertainties.

The announcement has made a very bold move of privatisation of a couple of Banks and an Insurance company. This has been on the agenda for the past two decades. Privatisation would bring more capital and management expertise into these organisations and improve credit flow into the economy. The FDI cap for the Insurance sector has also been raised to 74%. These steps, coupled with efforts to deepen the Bond market, would reduce India’s risk perception. This will bring longer tenure capital and help lower interest rates. A single code for financial markets would make life easier for market participants, reduce volatility and reduce regulatory burden.

Reform announcements in the Energy sector have gone relatively unnoticed. Flexibility to a consumer to choose from a supplier other than the discom is again a bold measure. This has the prospect of effectively separating the distribution infrastructure from the power supply in the economic sense. It should lead to private capital in the power distribution sector. Similarly, the announcement of a comprehensive system operator for gas transmission should facilitate the smooth flow of natural gas across the country. With the development of commodity exchange for gas, one can expect that a functioning and economically viable gas system would be in place for the country. The budget has taken the right step, but energy sector reforms are difficult to implement. It calls for persistence; otherwise, investors may again be disappointed.

The finance minister has increased allocation to capital expenditure by 34.5% to Rs 5.54 lakh crores. Since autonomous organisations, such as NHAI also raise their own finances, total Capex this year is likely to be upwards of Rs. 11 lakh crore. Platform available in the form of National Infrastructure Pipeline (NIP) should help to channelise this resolve.

FM has also laid lots of emphasis on REITS and INVITs. With the removal of TDS on dividends, a viable tax structure is in place for them. Given global uncertainties, it’s unlikely that private investment would flow into greenfield infrastructure projects. Asset monetisation offers an excellent opportunity to access this capital, as cash flows in these projects are relatively stable. With the framework, in place, it should be easy to monetise completed projects. However, one would like to see greater deal flow.

Capex spending of over Rs.11 lakh cr is huge - around $160 billion.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Zynda » 13 Feb 2021 11:06

Ambar wrote:No more increase in cess and taxes on fuel, there's already enough anger everywhere about the recent fuel price hikes.

I think there was another round of hike in fuel prices yesterday...fifth one so far :)

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby A Nandy » 13 Feb 2021 13:32

Really pushing for 100% electrification of Indian Roads now :)

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby vera_k » 13 Feb 2021 23:39

The Shadow of England in India’s Farm Protests

Where is it cheaper to buy rice? At a village market in India, a country where 377 million people live below the poverty line? Or on the trading screens of the Chicago Mercantile Exchange?

Shockingly, it’s often the latter.


Britain’s landed gentry sought to protect its wealth and prerogatives by demanding high tariffs and bans on grain imports, resulting in the Corn Laws imposed from 1815 to 1846. Those laws got repealed only after manufacturing-led urban interest groups became powerful in their own right, helping tilt the balance.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby dsreedhar » 14 Feb 2021 10:54

Seems govt approved privatization of Steel plant. There is uproar in Andhra over the privatization of the steel plant in Vizag.
On one of the popular Telugu TV channels in debate between JaiPrakash Narayan and Prof Nageshwar Rao on the topic, Prof complained about very lowball valuation of the plant in RFP. The professor is left leaning. Just looking for info regarding it of what is the actual facts and details.

https://www.youtube.com/watch?v=SrNiyC4SQSU
At timeline 20:00 min

Moderator - Edited the post to better fit the forum. (Hope)
Last edited by dsreedhar on 14 Feb 2021 12:57, edited 1 time in total.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 14 Feb 2021 11:56

Please don’t post rumors and ask others to confirm all the details for you. That is not courteous forum behavior.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby bharathp » 14 Feb 2021 12:27

https://government.economictimes.indiat ... l/80685536

the Narendra Modi government at the Centre has finalized the privatisation of Rashtriya Ispat Nigam Ltd (RINL), the public sector corporate entity of Vizag Steel Plant (VSP).


Notably, despite its commercial activity on par with any of its private competition, VSP had incurred heavy losses in 2017 and 2018, but recovered with a net profit of ₹96.71 crore in 2019. The PUS made consistent profits between 2002 and 2015.


The losses were majorly due to the lack of captive mines due to which the RINL is procuring the iron ore supplies at market price, resulting in a loss of at least ₹5,000 on every ton produced.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby A Nandy » 15 Feb 2021 00:54

https://swarajyamag.com/insta/siemenswi ... al-devices

Siemens Healthcare, Sahajanand Medical Technologies, Nipro India Corporation and Wipro GE Healthcare are among the companies selected under the Production Linked Incentive (PLI) scheme for the promotion of domestic manufacturing of medical devices.

In a bid to boost domestic manufacturing and attract large investment in domestic manufacturing of medical Device Sector, the Department of Pharmaceuticals had launched a Production Linked Incentive (PLI) Scheme with a total financial outlay of Rs.3,420 cr. for the period 2020-21 to 2027-28.

Domestic medical devices market in India is heavily dependent on imports which contribute to more than 85% of the market. India’s domestic medical devices market in 2019-20 was estimated to be ₹75,611 crore of which imports were worth ₹41,412 crore. While electronics and equipment accounted for 56 per cent of imports, followed by consumables and disposables which accounted for 18 per cent and surgical equipment which constituted 10 per cent of total medical devices import.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 15 Feb 2021 04:42

FPIs invest Rs.20593 cr ($2.8 billion) in Indian equities since budget
Foreign portfolio investments (FPI), which have touched record highs amid the pandemic, have continued to pour into the Indian equity market post the Union Budget for FY22.

Net FPI inflow into equities in the month of February has been Rs 20,593 crore, as per NSDL data.

Since January, FPIs have invested over Rs 39,000 crore.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby A Nandy » 15 Feb 2021 14:02

https://www.pib.gov.in/PressReleasePage ... ID=1698073

Maps and accurate geospatial data are crucial for national infrastructure projects such as linkages of rivers, creation of industrial corridors and deploying smart power systems.Emerging vibrant technologies like Digital India, Smart Cities, eCommerce, autonomous drones, delivery, logistics and urban transport require a leap forward in mapping with greater depth, resolution and precision. In every economic endeavor, spanning agriculture, finance, construction, mining and local enterprise, India’s farmers, small businesses and corporations alike stand to gain tremendously from the application of innovative technologies based on modern geospatial data technologies and mapping services.

The Hon’ble Prime Minister observed however, that the existing regime imposed significant restrictions on the mapping industry - from creation to dissemination of maps, requiring Indian companies to seek licenses, follow a cumbersome system of pre-approvals and permissions. Compliance with these regulatory restrictions has subjected startups in India to unnecessary red tape, hindering Indian innovation in map technologies for decades.

To realise India's vision of Atmanirbhar Bharat and the goal of a 5 trillion-dollar economy, the regulations that apply to geospatial data and maps henceforth stand radically liberalised. The Department of Science and Technology is announcing sweeping changes to India’s mapping policy, specifically for Indian companies. What is readily available globally does not need to be restricted in India and therefore geospatial data that used to be restricted will now be freely available in India. Furthermore,our corporations and innovators are no longer subject to restrictions nor do they require prior approvals before they collect, generate, prepare, disseminate, store, publish, update digital Geospatial Data and Maps within the territory of India.

Our startups and mapping innovators will be trusted to self-certify, apply good judgement and be reliedupon to demonstrate adherence to guidelines. In addition, measures to promote the development of Indian geospatial innovations that take advantage of the latest map-making technologies are proposed. With the next generation of mapping technology just about coming into its own around the world, this policy will enable Indian innovators to create substantial advances in mapping ultimately making our lives easier and empowering small businesses. We look forward to India emerging as a mapping power, creating next generation indigenous maps of India and taking these new technologies to the rest of the world.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby nam » 15 Feb 2021 15:17

Zynda wrote:
Ambar wrote:No more increase in cess and taxes on fuel, there's already enough anger everywhere about the recent fuel price hikes.

I think there was another round of hike in fuel prices yesterday...fifth one so far :)


The cess is the only way for the governments to get some much needed revenue. People in our country want 0% Income tax, 0% GST, 20Rs for petrol, government pension, government health insurance, subsidized education, life long government employment, write off farmer loans. To top it up wonderful roads, trains, garbage being cleaned on time by the local government.

To top it, people also want government to regulate air fare :roll:

Subh khu muft me

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Uttam » 15 Feb 2021 21:07

India's exports up 6.16 percent in January



Some more details here:

The country's exports grew by 6.16 percent to $27.45 billion in January 2021 as compared to $25.85 billion in the same period last year. This was attributed to growth in pharmaceuticals, iron ore and engineering sectors.


Top five commodity groups of export, which recorded positive growth during January 2021 vis-a-vis January 2020, were other cereals (343.57 percent), oil meals (257.50 percent), iron ore (108.84 percent), cereal preparations and the miscellaneous processed item (44.88 percent), and jute manufacturing including floor covering (27.68 percent).

Meanwhile, the top 5 commodity groups of import which declined in January 2021 vis-a-vis January 2020 were petroleum, crude & products (-27.72 percent), transport equipment (25.26 percent), fertiliser, crude and manufactured (11.57 percent), metaliferrous ores and other minerals (4.57 percent) and machinery, electrical and non-electrical (1.37 percent).

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Uttam » 15 Feb 2021 21:23


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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Uttam » 17 Feb 2021 01:35

NHAI plans to monetise projects worth Rs 3 lakh crore

The authority plans to raise Rs 20,000-25,000 crore through the SPV model, and Rs 10,000 crore through the toll-operate-transfer model in 2021-22, the official said. A second infrastructure investment trust (InvIT) worth around Rs 6,000 crore is also in the pipeline for the next financial year.


NHAI has been keen on special purpose vehicle (SPV) as a model for monetisation. The SPV shall raise debt on its balance sheet, while NHAI will retain the operational control during construction and operation and maintenance periods. The toll on the projects housed in SPV shall be collected by NHAI and SPV shall get the annuity payments without any construction and tolling risks.


I am not sure if I understood how the SPVs will help in deleveraging NHAI's balance sheet or raising capital. If the SPV is not taking any tolling risk, and NHAI is committed to making annuity payments, then this arrangement is no different from the debt raised by NHAI on its own. Any insight will be greatly appreciated.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 17 Feb 2021 02:18

One of the goals here as I understand it, is to decouple construction and tolling risk from funding risk. Previously, the construction companies took on huge loans as part of their projects. E.g. Lanco and others accumulated several billions of dollars in debt in the form of bank loans. This in turn stressed the banking system. Using an SPV or InvIT (like a REIT, but for infrastructure) , the funding source is this entity, not a bank. The construction company gets paid out of this SPV and the toll operator pays into it. By monetizing the asset, they raise capital beyond conventional bank loans. This doesn't mean there can't be bad projects, but it decouples risk and isolates the impact of one bad project from impacting the viability of others. Presumably they'll have each such entity being independently risk rated by CARE/CRISIL/other rating agency.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby kit » 17 Feb 2021 02:41

India is set to become the world’s fifth (fourth ?) largest economy by 2024, with nominal GDP of USD 3.7 trillion, overtaking both France and the UK.

https://www.focus-economics.com/blog/the-largest-economies-in-the-world

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Uttam » 17 Feb 2021 02:52

The decoupling of construction and tolling risk from funding risk has been happening because most projects are awarded under EPC route. Gone are the days of BOT, and politicians issuing all kinds of tolls waivers. I agree that SPVs help isolate project-specific risk and not affect the entire organization.

I think there is another advantage of InvIT and SPVs. There are tax-sheltered funding sources. That should help bring more sources of capital. Here is what I found:

tax exemption was allowed on dividends distributed by the SPVs which were neither subject to a dividend distribution tax (DDT) in the hands of the SPVs (subject to conditions) nor any tax in the hands of the business trust and unitholders.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 17 Feb 2021 03:10

Yes I forgot - the budget described tax benefits of the InvITs but it was mentioned in passing and I didn't recall it until you quoted it - thanks for looking that up.

This kind of patient effort to develop a workable infrastructure funding approach is a sign of the government's willingness to learn from real world observations. For example, Make In India hasn't quite immediately driven manufacturing due to other constraints in the way, but the government has demonstrated its continued resolve, reorienting it as Atmanirbhar Bharat, and then coming up with the PLI, which has been a success in spurring interest.

Developing scalable funding strategies will be critical going forward, for capex in road , rail and other infrastructure. The current budget has scaled up spending on rail to $30 billion/year. That's a pretty big number, but for scale, at the peak of Chinese HSR construction, they were spending $100-110 billion a year on rail construction. Correspondingly large numbers for road and other infrastructure. We're going to have to scale up our rail capex figures to $70-100 billion a year by 2025 or so, too. That requires interesting new funding paths, it can't all come from budgetary allocations.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Uttam » 17 Feb 2021 04:42

Electronic tolling will also be of great help. Asset monetization depends on investors being able to recover their investments with a healthy ROI through tolls. Without electronic tolling, there was a tremendous amount of theft. With universal electronic tolling, the risk to investors is really low. Given the very low interest rates globally and every central bank printing money by tonnes, this is a perfect time for India to go all-in for asset monetization. NHAI can perfect model of - Acquire Land -> EPC construction -> Monetization -> Repeat.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Vamsee » 17 Feb 2021 06:11

Amazon, Foxconn to start device manufacturing in India

US e-commerce giant Amazon on Tuesday announced commencement of its first manufacturing line in India for making its Fire TV Stick devices in the country. It will partner contract manufacturer Cloud Network Technology, a subsidiary of Foxconn, and production will start later this year from Chennai.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Mollick.R » 17 Feb 2021 17:50

PLI scheme for telecom equipment to lead to local production worth Rs 2.4 lakh crore: Cabinet
ET Bureau Last Updated: Feb 17, 2021, 03:50 PM IST

The Cabinet detailed out that the production linked incentive scheme (PLI) in telecom equipment manufacturing will have an outlay of Rs 12,195 crore and over five years will lead to production of Rs 2.4 lakh crores. This scheme will lead to exports of about Rs 2 lakh crore and will bring investment of more than Rs 3,000 crore and generate huge direct and indirect employment and taxes both.

read Full Report at// ET Link..............
https://economictimes.indiatimes.com/industry/telecom/telecom-news/pli-scheme-for-telecom-equipment-to-lead-to-local-production-worth-rs-2-4-lakh-crore-cabinet/articleshow/81053215.cms?utm_source=ETTopNews&utm_medium=HP&utm_campaign=TN&utm_content=23

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Mollick.R » 17 Feb 2021 17:51

New mapping data policy: What it means and why it's good news for Indian companies
Gadgets Now Bureau 16 Feb, 2021, 12:44AM IST


Read The Slide show from //Gadgets Now Link.......
https://www.gadgetsnow.com/slideshows/new-geospatial-data-policy-what-it-means-and-why-its-good-news-for-indian-companies/photolist/80960591.cms

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Mollick.R » 17 Feb 2021 17:58

20 projects worth Rs 363.4 crore sanctioned for infrastructure and expansion of food processing
ET Bureau Last Updated: Feb 17, 2021, 02:19 PM IST


New Delhi: Twenty projects leveraging an investment of Rs 363.40 crore supported with a grant of Rs 102.81 crore under the scheme for creation for infrastructure for agro-processing cluster (APC) and the scheme for creation and expansion of food processing and preservation capacities (CEFPPC) under pradhan mantri kisan sampada yojana (PMKSY) were sanctioned by the Inter Ministerial Approval Committee (IMAC) chaired by Food Processing minister Narendra Singh Tomar. The projects are likely to generate employment for nearly 11,960 people and benefit 42,800 farmers.

Read Full Report at// ET Link..............
https://economictimes.indiatimes.com/news/economy/agriculture/centre-clears-20-food-processing-projects-worth-rs-363-4-cr/articleshow/81046371.cms?utm_source=ETTopNews&utm_medium=HP&utm_campaign=TN&utm_content=23

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 17 Feb 2021 23:40

Modi Govt Approves Rs 12,000 Crore ($1.6 billion) PLI Scheme In Telecom Equipment Sector, Eyes Production Worth Rs 2 Lakh Crore ($28 billion)
The Union Cabinet chaired by PM Narendra Modi has approved a Production Linked Incentive (PLI) Scheme for Telecom and Networking Products with a budgetary outlay of Rs 12,195 crore, said the Ministry of Communications in a statement.

The scheme encourages export of telecom and networking products which are 'Made in India'.

Globally the telecom and networking products represent a USD 100 billion export opportunity which can be exploited by India.

There will be a minimum investment threshold of Rs 10 crore for MSMEs with incentives from four to seven per cent and Rs 100 crore for others with incentives from four to six per cent over five year above the Base Year.

With this scheme, an incremental production of around Rs two lakh crores is expected to be achieved over five years. Thus India could improve its competitiveness in manufacturing with increased value addition.


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