Indian Economy: News and Discussion (Apr 1 2011)

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AjitK
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by AjitK »

Marten wrote:Manappuram raising deposits illegally: RBI
The Reserve Bank of India (RBI) has issued a warning to the general public against placing deposits with Manappuram Finance or a group company. The central bank has said that acceptance of deposits either by Manappuram Finance or by Manappuram Agro Farms (MAGRO ) is punishable with imprisonment.

In a statement issued here, the central bank said that Manappuram Finance has been accepting deposits from the public in its branches and offices and has been issuing deposit receipts in the name of Manappuram Agro Farms (MAGRO), a sole proprietary concern of V P Nandakumar, who is the executive chairman of the company. "In terms of Section 45-S of the RBI Act, acceptance of deposits from the public by MAGRO, which is an unincorporated body, is also prohibited," said RBI.

Thrissur-based Manappuram is one of the largest 'gold loan' companies - a company which provides personal loans against the security of gold jewellery.
Any reports on how large the Gold Loan business has become in recent years?
Lining up to pawn the family gold

I'd like to read about the phenomenal growth of the two Kerala firms involved here:
Our number of branches grew from 644 in 14 states and Union territories as of March 2009 to 2,192 branches in 22 states and Union territories as of May 2011,” says the offer document of Manappuram Finance to float non-convertible debentures.

Muthoot Finance’s network has expanded from 373 branches on March 31, 2005, to 3,274 branches on September 30, 2011, comprising 589 branches in northern India, 2,114 branches in southern India, 422 branches in western India and 149 branches in eastern India covering 20 states, the national capital territory of Delhi and four Union territories.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by Gaurav_S »

chaanakya wrote:
Gaurav_S wrote:Seems like racket of fake currency is getting bigger and bigger day by day. This is the third time I have read some news in newspaper about an attempt to get fake currency in the market. Its really hurting.

3 nabbed with Rs 2L fake currency

This people had came from Malda, WB. This place seems very close to international border and seems to be hot bed for these activities.
http://www.deccanherald.com/content/221 ... -fake.html
Puducherry police alerts NIA on fake currency
The National Investigation Agency (NIA) and other key Central Agencies’ have been alerted and their assistance sought as a fake currency racket busted in neighbouring Puducherry, seems to have “international ramifications” and targeted at “destabilizing” the Indian economy.

Ismail, an accused arrested by the Puducherry UT Police while trying to “pump” the fake currency notes, hails from Jharkhand and had confessed to having picked up the wand of counterfeit notes from Malda in Bengal, Puducherry IGP J K Sharma told Deccan Herald on Saturday over phone.
Looks like Malda in one conduit point.
This place is well connected by train and it's economic to travel by train for this people. My bet is there are several hundred people in this ring. They are asked to board trains to various destinations and especially target tier 2 cities where they can rent a place. This place should be on IB, RAW radar by now.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by Prem »

Cisco Uses India To Impress Street
http://seekingalpha.com/article/355241- ... ess-street
lot of tub-thumping in 2009 brought it to a high of nearly $27 in April 2010, but you could get it for a little over $15 last summer.Investors, in other words, have seen previous false dawns with the networking company. What makes this different?India. After years watching Chinese rival Huawei power ahead thanks to low-cost Chinese engineering help, Cisco is now playing the same game, only in India.The company now has three development centers in India, and is building a fourth, which will employ 6,000 people. Most of its Indian research is done in Bangalore. Cassandra Mooshian, analyst at Technology Business Research (TBR), told ZDNet Asia "is looking to utilize low-cost resources to continue the development of solutions, as over 396 patents have been rewarded in India since 1998."So rather than look to Silicon Valley for an heir to aging CEO John Chambers, it might make more sense to look toward someone like Naresh B. Wadhwa (above, right), the company's India country manager. Wadhwa is going to be more important to profits than Chambers going forward in any case.In his own remarks on recent results Chambers is emphasizing cost-cutting, the elimination of products, price-cutting on popular products, and service provider customers.That's a very short-term way of looking at the company. The real news here, I believe, is Bangalore. If Cisco can drive innovation and the stock price, it will do so at the expense of becoming an Indian company. If it can't, it may be no company worth investing in at all.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by Singha »

looking at #patents as a example of engg contribution is a false metric. netz india is not a patent filing r&d ivory tower, but more engg/product/tac/mkting/customer proof of concept oriented place. has a lot of r2i types also at various levels ranging from VP down.

its probably one of the biggest and most successful dev centers for any foreign co here. :shock:

unlike cos like say nokia, SAP or LG/Samsung who have hardly any desis at the home units, american cos have the unique adv of having a lot of desis already there who can ease the cultural problems in managing offshore centers.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by Theo_Fidel »

High base spoils December IIP show

Image
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by Singha »

BANGALORE: Walmart Labs in India has poached Gunaranjan Pemmaraju of Amazon to head its new technology center in the country. Anand Rajaraman, senior vice-president of Walmart's Global eCommerce business, said in a blogpost on Thursday that Pemmaraju will hire a team to develop technologies that will "accelerate new generation of e-commerce for Walmart customers around the world."

The retail giant announced a few months ago that they will set up a technology center in India. "Since then, we've added several incredibly talented people to our Bangalore team in the areas of machine learning, social analytics and big data infrastructure," Rajaraman wrote.

Gunaranjan Pemmaraju was director of engineering, responsible for global payments at Amazon Bangalore. As reported by ET earlier, Walmart Labs, which is helping the world's largest retailer to adapt in a fastchanging world of social media, mobile and the Internet, will have nearly 100 people working from India.

The $422-billion company, which is primarily into traditional retail business, is trying to catch up with Amazon in e-commerce by aggressively pushing online sales.

Amazon, a $48-billion company, does not sell offline and is only one tenth of Walmart in revenues. But the company has been growing fast by selling goods online. Amazon has also been ramping up its India headcount in the past few months and last week announced its India foray as Junglee.com.

Walmart Labs presently employs about 70- 80 people in the United States. The team in India will be larger than that, Rajaraman had said in an interview with ET earlier. The lab, which will focus on combining social, mobile and retail to influence consumer behavior and generate online sales for Walmart, was started a few months ago after the retailer acquired Rajaraman's earlier company Kosmix.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by Prem »

India Factory Output Growth Slows
http://online.wsj.com/article/SB1000142 ... 55032.html
NEW DELHI -- India's industrial output growth slowed sharply in December as high interest rates and weaker global conditions continued to hurt the economy which is set to grow at its weakest pace in three years, but a rate cut by the central bank may still not be imminent as inflation remains high.
Factory output rose 1.8% from a year earlier in December, slowing from a 5.9% increase in November, government data showed Friday.The rise was significantly smaller than expectations
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by Prem »

http://www.itnewsonline.com/showstory.p ... 8&contid=1
IBM Opens Smarter Commerce Center of Excellence in Bangalore
IBM has opened a Smarter Commerce Center of Excellence (CoE) at the India Software Lab, Bangalore. The
CoE will consist of a team of 25 technical experts selected from the B2B and Commerce Enterprise Marketing Management teams from India Software Lab.By bringing together a powerful combination of technical expertise, domain knowledge, and best practices from IBM’s extensive global engagements, the CoE will offer innovative solutions to automate and accelerate the purchasing, marketing, sales and customer service functions to organizations across India, South Asia and Asia Pacific.Dr. Gopalakrishnan, Vice-President, India Software Lab, said, "The Center of Excellence for Smarter Commerce, the first of its kind in India, will work closely with the business teams on customizing Smarter Commerce solutions for companies. These solutions, across different technology platforms, will integrate and more effectively manage the value chain across buying, marketing, selling and service processes for different sectors."
Recently IBM researchers surveyed more than 500 economists worldwide and estimated that our planet’s system of systems carries inefficiencies totaling nearly $15 trillion, or 28% of worldwide GDP. Much of this waste is found in our systems of commerce - in inventory backlogs, failed product launches, wasted materials and ineffective marketing campaigns. An IBM Institute for Business Value (IBV) study, New Rules for a New Decade, surveyed more than 650 procurement and supply chain executives and found that companies are putting a priority on visibility, integration with partners and other capabilities that can enable smarter commerce approaches.Dulles Krishnan, Director - Commerce Solutions, IBM Growth Markets, said, "Empowered customers are reshaping business, compressing margins and changing paradigms. Customers today expect to engage with companies when and how they want, in person, online and on the go. And they want these methods to tie together seamlessly. Smarter Commerce channelizes marketing efforts to build trust and recognition, leading to greater customer loyalty, revenue and profit margin growth, and agility."IBM Smarter Commerce Solutions have enabled customers like ING to increase average campaign response rates and expects to reduce its direct marketing costs by 35% a year. Crocs, a large retail company, has achieved near-100% fill rates on Internet orders through planning and reserving all inventory by channel. True Value, one of the world’s largest retailer-owned hardware cooperatives, serving 54 countries with more than 5,000 stores and 12 regional distribution centers, decreased lead-time variability, increased fill rates and reduced lost sales with enhanced supply chain visibility.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by vina »

its probably one of the biggest and most successful dev centers for any foreign co here
Netz better get its act together fast. Huawei is getting ultra aggressive . For eg, the only Telepresence product I have seen was of Netz . I dont travel much, but was in Mumbai last week and at the domestic terminal , Huawei has put up a stand, with a full telepresence demo/showcase, with specs sheet that will go head to head with Netz for video and also has Fruit Comapie's codec for voice. So, one more Netz product / billion dollar business where there is head on competition on price.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by Prem »

Neumag line for India
http://www.sustainablenonwovens.net/ind ... &Itemid=12
There is certainly a growing demand for performance nonwovens. The promise of providing better protection through cleaner air and access to better quality water to millions of people is exciting India’s growing number of nonwovens companies, while India’s government is planning many significant infrastructure projects where geotextiles will be critical.In the latest development in this respect, Oerlikon Neumag reports that it is to supply a new Inline plant with 12 spinning positions for the production of staple fibres for geotextiles to an unnamed Indian company. The order comprises the complete machine equipment from spinning to baling, including engineering and services of supervision for erection and commissioning. Start-up will be at the end of 2012.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by SBajwa »

Vina! great story. I try to ascertain these measures every time I visit India (Haryana/Punjab)

1. Kacha vs. Pacca houses (mud vs brick houses) in villages? (what %age are still mud).
2. Primary school enrollment percentage of the children in an average village?
3. Expenses on health, nutrition and entertainment as compare to 10-20 years ago.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by Aditya_V »

Cross posting, what do you guys think will be impact of Petrol price increases after the UP elections. I suspect this is the first of many.


Petrol prices may rise by Rs 3 soon after UP assembly elections
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by Yogi_G »

Aditya_V wrote:Cross posting, what do you guys think will be impact of Petrol price increases after the UP elections. I suspect this is the first of many.


Petrol prices may rise by Rs 3 soon after UP assembly elections
This concept of sops and sudden spikes will definitely hurt the economy. In TN, Aditya ji, you will remember, right before the elections the bus fares were decreased drastically and an already close-to-bankrupt MTC took further hits. The MTC targets 5.6 KMPL for its fuel efficiency but the real numbers are way less than that due to obsoloscence, over-crowding and a host of other factors. 5.6 KMPL is in itself very less given modern diesel engine technology but there are no funds for fleet expansion and new routes are being added by the day resulting in buses plying on existing routes to be re-allocated leading to further over-crowding.

This playing-to-gallery of janta democracy we have is not conducive to economic growth. In India, growth happens in spite of the kind of democracy we have in play. It is like that onleee.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by Theo_Fidel »

http://articles.economictimes.indiatime ... ports-rise
January exports rise 10.1%; $300 bn full-year target not far
--------------------------------------------------

http://www.bloomberg.com/news/2012-02-1 ... vance.html
Indian inflation eased to the lowest level in more than two years in January, adding to the central bank’s case to cut interest rates as economic growth weakens. Bonds and stocks climbed.

The benchmark wholesale-price index rose 6.55 percent from a year earlier, the commerce ministry said in a statement in New Delhi today, compared with 7.47 percent in December. The median of 25 estimates in a Bloomberg News survey was 6.7 percent.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by SBajwa »

http://www.tribuneindia.com/2012/20120214/punjab.htm#3

Sharma, Fahim inspect international checkpost
Perneet Singh
Tribune News Service

Commerce Minister Anand Sharma and his Pakistani counterpart at the Zero Line.
Commerce Minister Anand Sharma and his Pakistani counterpart at the Zero Line. Photo: Vishal Kumar

Attari (Amritsar), February 13
When Union Minister Anand Sharma crossed over to Pakistan via the Attari-Wagah route today, he became the first Indian Commerce Minister to visit Pakistan in three decades.

Sharma and his Pakistani counterpart Makhdoom Amin Fahim inspected the newly constructed Integrated Check Post (ICP) in Attari as they stood at the Zero Line.

Sharma had stated last evening that he would take stock of the work at the ICP and announce when it would become operational.

In a brief interaction with the media while inspecting the ICP, Fahim claimed that Pakistan had infrastructure that matched India’s and the trade between the two countries would witness a manifold increase once the dedicated gates for trade were opened and the ICP became operational. He sounded confident that the bonhomie between India and Pakistan would translate into sound business partnership.

Sharma, along with a 120-member delegation, reached the border at 11 am. Talking to the media before stepping into Pakistan, he said the two sides were looking forward to taking bilateral ties to a new level based on trust. He was hopeful that parleys with his Pakistani counterpart would prove beneficial for the economies of both the countries.

Admitting delay in the execution of works on the ICP, he said it would become functional by April-end. On the most favoured nation (MFN) status to India, he said the two countries were moving towards it in a sequential manner.

“ We are already holding discussions on all such issues that are integral to our economic ties. Our visit will further deepen and diversify these ties.”

Admitting that there were high expectations on both sides of the border, he said their aim was to boost people-to-people contact and increase trade between the two neighbours. On Pakistan’s strategic ties with China, he said these had no impact on the India-Pakistan ties.

FICCI president RV Kanoria was hopeful that the announcement of ‘negative list’ by Pakistan for doing trade with India would help give the right impetus to bilateral trade between the two nations.

He said the two governments should ease visa restrictions, besides allowing traders multiple visa facility. From Lahore, the delegation will head for Karachi, Pakistan’s commercial capital, for interaction with the trading community there. The delegation will then leave for Islamabad on Wednesday .

One step too many

While inspecting the International Check Post from the Zero Line, Pakistan Commerce Minister Makhdoom Amin Fahim stepped out into the Indian territory. Though watchful Pakistani officials accompanying him were seen gesturing him about the faux pas, he seemed too engrossed in the inspection to take note of it.

Open trade ‘boon’ for Amritsar

Amritsar: The CII Zonal Council Chairman, Suneet Kochhar, said open trade with Pakistan would immensely benefit local traders. “Lahore is merely 40 km from Amritsar and traders will find sending goods to Lahore more economically viable than transporting these to Delhi. It will be a boon for Amritsar,” he said.

Being a border area, the city could never become a favoured destination for the industry. But an open trade with Pakistan would certainly boost the trading activity, he said, adding that it would also generate employment opportunities and push up real estate prices. He demanded that the ICP be connected to the dedicated freight corridor.

Gunbir Singh, member, CII National Council on Public Policy, said the face of Attari had already changed with the coming up of the ICP. He said trade between the two countries through Wagah stood at $2 billion and could be increased to $10 billion. He described the Commerce Minister’s visit to Pakistan as a giant leap forward. “Earlier, traders would visit the two countries on a chamber-to-chamber level. But this is the first such effort at the government level,”he said.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by member_21708 »

Selling critical national assets to raise money and stash it in foreign banks

Govt to move ahead with ONGC stake sale, BHEL in next fiscal
Running against time to raise Rs 40,000 crore from disinvestment by March-end, the government is planning to move ahead with 5 per cent stake sale in the oil major ONGC through the auction route in the current fiscal.

BHEL disinvestment, however, has been pushed to the next fiscal as the stock market conditions are not appropriate, sources said after a meeting of the Empowered Group of Ministers (EGoM) which was chaired by Finance Minister Pranab Mukherjee.
http://ibnlive.in.com/generalnewsfeed/n ... 63865.html
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by krisna »

In blow to China, Govt set to OK 19% duty on power equipment imports
The government is all set to impose up to 19 per cent tariff on imported power equipment with a clear aim to benefit domestic manufacturers who have lost out to cheaper Chinese equipment over the last few years. Also, a mandatory domestic procurement provision will be inserted in all future tenders for ultra mega power plants (UMPPs).
This move is bound to land a telling blow to imports from China because power equipment account for 25 per cent of these imports.

In fact, the other 25 per cent of the imports are in Telecom sector, where again the ministry is preparing a Cabinet note to insert a mandatory domestic procurement clause in all its tenders. As a result, the government is hoping for some correction in trade imbalance affecting bilateral trade at the moment.
The Planning Commission Secretary also voiced concerns about the quality of imported power plants and the lack of remedial action in case an equipment is faulty or damaged.
The issue of imposing duties on power equipment imports has been under consideration for the past two years after the EGOM on UMPPs suggested forming a group under the Panning Commission to look into the matter. This group, led by Arun Maira, Member, Planning Commission had suggested up to 22 per cent duty which was later brought down to 14 per cent. The Finance Ministry had, however, not agreed to imposing this duty until the PMO gave it fresh momentum.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by Singha »

ADAG will be hit by this - they have been utilising vendor financing extended by china exim banks to build their entire power and telecom infra using chinese eqpt from the likes of zte.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by vina »

ADAG will be hit by this - they have been utilising vendor financing extended by china exim banks to build their entire power and telecom infra using chinese eqpt from the likes of zte.
Not just that, but also the metro that is getting built by ADAG in Mumbai with Chinese rakes and equipment (god save us if the singalling and safety is the stolen IP, name branded by Chipanda like the HSR systems).

This Chipanda strategy of leveraging the country's balance sheet and currency manipulation by pushing ultra cheap vendor financing and incredbly low prices with terrible quality and totally shot safety is harmful, while good for financially stressed companies like ADAG that would love such vendor financing and leverage on someone else's balance sheet.

Good that finally the govt is putting a stop to that.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by Yogi_G »

Just to give an idea of the scale of growth of economy,

Indian Overseas Bank

1st one lakh crore -- 70 years
2nd one lakh crore -- 3 years
3rd one lakh crore -- 9 months

Used to be a 10,000 crores total business bank in the 90s. Its size is now 3 lakh crores (~60 billion $)
Theo_Fidel

Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by Theo_Fidel »

Yogi,

That is good data. It is a sign of our having graduated into a middle middle income country. Next up is High middle income country when we hit a GDP of $3-$4 Trillion. Once countries enter Middle income territory a lot of disposable wealth, read resources are available to divert into upgrading the living environment. Looking at more than just bare survival. We need to focus on keeping our saving rate up at a high 35% of GDP.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by gunjur »

Singha wrote:ADAG will be hit by this
But as long as they can rely on their networks in govt (be it be of any party) as in this case. R-Power got Rs 24k cr govt favour: CAG They need not worry much.The links cultivated over decades across party lines and across ministerial departments will always be put to use.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by Prem »

http://www.bloomberg.com/news/2012-02-2 ... rkets.html
Coal to India Beating China on Singh Diktat
India is poised to surpass China as the world’s biggest thermal coal importer as Prime Minister Manhoman Singh seeks supplies for power makers that have halted plans for $36 billion of new plants because of a fuel shortage. Purchases from abroad may exceed 118 million metric tons this year in India, compared with China’s 102 million tons, said Daniel Hynes, a director of commodity research at Citigroup Inc. in Sydney. Imports may rise after the government ordered state- run Coal India Ltd. (COAL) to plug a local shortfall with foreign supplies, according to analysts at Sanford C. Bernstein & Co. India’s forecast emergence as the world’s biggest coal buyer underscores a dearth of domestic fuel that prompted companies from billionaire Anil Ambani’s Reliance Power Ltd. (RPWR) to Adani Power Ltd. (ADANI) to mothball planned expansion of electricity capacity. India’s $1.7 trillion economy grew at the slowest pace in two years from July to September as power and factory output slowed. For its part, China is adding twice as much coal- production capacity this year as in 2011, according to the National Energy Administration, reducing its import needs. “Coal shipments to China will get diverted to India,” Michael Parker, a Hong Kong-based analyst at Bernstein, said in an interview. In China, “power consumption growth rates will continue to decline and coal production and transport capacity growth are rapidly improving.” The deficit between the demand and supply of domestic coal in India may rise as high as 150 million tons by 2014 if the country fails to increase local supplies by 6 percent this year, according to Hynes. The nation is seeking to improve infrastructure to achieve an average economic growth rate of 9 percent in the five years starting April 1.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by Yogi_G »

You really can say how the Indian economy is doing by the activity on this thread eh? Quite a lull now.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by Gus »

well..so is the PRC thread ;)
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by Anurag »

X-Posting from the India-US thread

Indo-US bilateral trade expected to cross $100 bn this year
http://www.hindustantimes.com/business- ... 08315.aspx

Can someone tell me how they plan to make this happen within a year. According to the US Census Bureau the bilateral trade was roughly $58 Billion for 2011.

http://www.census.gov/foreign-trade/balance/c5330.html
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by Suraj »

Yogi_G wrote:You really can say how the Indian economy is doing by the activity on this thread eh? Quite a lull now.
Talk about the economy on this thread usually picks up around a major milestone ($1T, soon $2T economy, $300B exports etc). Until then it's not easy to keep track of news on a daily basis like I used to at one time. We need more posters willing to trawl Business Standard, Fin Express, Hindu Businessline and assorted other desi/videsi press sources and post interesting articles, as well as data from other sources.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by nawabs »

PM's advisers see current a/c deficit worse than in 1991
Want govt to raise excise duty and service tax rates, cut subsidies


http://www.business-standard.com/india/ ... 91/465556/
The Prime Minister’s economic think tank on Wednesday painted a disappointing twin deficit picture for the economy and wrote a hard prescription. It wants the Centre to raise excise duty and service tax rates by two percentage points, decontrol diesel prices and prune subsidies to cut the fiscal deficit. The PM’s Economic Advisory Council (PMEAC) has asked the government to narrow the current account deficit (CAD) in the range of 2-2.5 per cent of GDP from a level worse than during the 1991 BoP (balance of payments) crisis.

As exporters face an adverse external environment, the PMEAC has pegged the CAD at 3.6 per cent of GDP for the current financial year, worse than three per cent at the time of the 1991 crisis. Even for the next financial year, the PMEAC in its review of the economy for 2012-13 projected the CAD to come down to three per cent of GDP.
In the backdrop of the government struggling to raise revenues from disinvestment and direct taxes, PMEAC Chairman C Rangarajan said the fiscal deficit would cross 4.6 per cent of GDP estimated in the Budget for the current financial year, but did not give any precise figure.
In the first nine months of 2011-12, the fiscal deficit touched 93 per cent of the Budget estimates.

"The government should take such measures as necessary to raise the tax-GDP ratio, and act on some subsidies,” Rangarajan said, adding diesel prices could be decontrolled in phases and other oil and fertilizer subsidies curtailed.He said an improvement in the tax-GDP ratio had to come from plugging loopholes in tax administration and raising excise duty and the service tax rate close to the pre-2008-09 level.

PMEAC member and noted fiscal expert Govinda Rao said if the excise duty and service tax rates were raised to 12 per cent, on a rough calculation an extra Rs 35,000 crore could be added to the exchequer. He also prescribed the introduction of a negative list for service tax and bringing tax provisions to plug loopholes such as the ones that gave rise to the Vodafone tax dispute. On the BoP front, of which CAD is a part, Rangarajan said, "For 2011-12, the BoP situation cannot be regarded as satisfactory." The falling export growth and a continued rise in import growth would widen the trade deficit in 2011-12 to a staggering $175 billion, 9.3 per cent of GDP. That would also widen CAD despite the trade surplus in services likely to come to its aid.

Bank of Baroda chief economist Rupa R Nitsure said, "Our dependence on oil is so high and now with the Iran crisis the price of crude has risen again. So, all the fundamentals face adverse conditions." Rangarajan wants the government to have a clear focus on facilitating capital inflows, especially equity. His comments assume importance in the backdrop of the government stalling its own decision to open multi-brand retail to 51 per cent FDI.

Rangarajan said a conducive external situation was required to make the economy grow nine per cent. The council pegged economic growth at 7.5-8 per cent for 2012-13. It pegged wholesale price-based inflation at 5-6 per cent for the same period.
http://zeenews.india.com/business/econo ... 42685.html
A day after Prime Minister's economic advisory panel expressed concern about rising current account deficit (CAD), Finance Minister Pranab Mukherjee exuded confidence that the government will manage it by stepping up exports.

"CAD is a matter of concern. I think we will be able to manage CAD because our export basket and destinations are getting diversified ... with the introduction of new manufacturing policy I do hope exports should get a boost," he told reporters.

Releasing the economic review for 2011-12 Wednesday, chairman of Prime Minister's Economic Advisory Council (PMEAC) C Rangarajan had said, "the persistence of a large CAD in 2012-13 seems likely, even as it is not desirable. There is a need to take measures to ensure that the CAD is stabilised at a lower level of around 2-2.5 percent of GDP."

The CAD, which is a reflection of gap between foreign exchange inflows and outflows, is estimated to be 3.6 percent of the gross domestic product (GDP). It was also 3.6 percent during April-September 2011-12.

The CAD could be as high as 3 percent in 2012-13 unless efforts are made to bring down the deficit, the PMEAC said.
Singha
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by Singha »

SBI stock dropped 8% yesterday when it was revealed their exposure to KF and talks of another bailout.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by neel »

Anurag wrote:X-Posting from the India-US thread

Indo-US bilateral trade expected to cross $100 bn this year
http://www.hindustantimes.com/business- ... 08315.aspx

Can someone tell me how they plan to make this happen within a year. According to the US Census Bureau the bilateral trade was roughly $58 Billion for 2011.

http://www.census.gov/foreign-trade/balance/c5330.html
$58B is the trade in goods. $100B is the total trade (i.e. trade in goods + trade in services).
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by neel »

We finally have an accurate number for the y-o-y inflation rate:
Provisional annual inflation rate based on all India general CPI
(Combined) for January 2012 on point to point basis (January 2012 over January
2011) is 7.65 percent. The corresponding inflation rates for rural and urban
areas are 7.38 percent and 8.25 percent respectively. Inflation for specified
categories is indicated at Annex II.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by member_21708 »

Praful Patel has done his job of destroying Air India from within. Kingfisher will be either sold by Mallya or economically destroyed. This will pave way for Dawood Ibrahim controlled Jet airways to takeover Indian skies. Manmohan looked the other way when dawood ibrahim puppet balwa was given telecom license, now also he is silent to this serious threat to national security.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by Yogi_G »

Budget, 2012: MPs push for tax exemption limit of Rs 3 lakh

With the increase in tax deduction limit (80c etc), we should definitely see our national saving rate shoot up.

But what about the raise in exemption to 3 lakhs if it does materialize? Will we recover in the savings what we lose in the decreased tax base? I just fear that this is not one of those populist measures which ends up spiking the fiscal deficit like the FSB or MNREGA.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by nawabs »

Modi presents revenue surplus budget for Bihar

http://www.thehindu.com/news/states/oth ... 928689.ece
A revenue surplus budget of Rs 78,686.83 crore for 2012-13 for Bihar with thrust on agriculture and education, increasing taxes on Works contract, vehicle tax, VAT on tobacco products and brick-kilns was on Friday presented by Deputy Chief Minister S.K. Modi, who is also the finance minister.

Mr. Modi presented the budget in both the houses of the state legislature here this afternoon.
Later talking to reporters, Mr. Modi said for 2012-13 the revenue surplus is Rs 7088.59 crore and will be used for investment in physical infrastructure, generating productive capital assets like roads, buildings, power, schools, health centres and irrigation schemes.

The fiscal deficit for 2012-13 is Rs 7569.43 crore, which is 2.87 per cent of the GSDP. The fiscal deficit to GSDP has been limited to three per cent as per FRBM Act.The net borrowing for 2012-13 has been limited at Rs 7916 crore by the Government of India and the GSDP estimate arrived at for the year is in accordance with 13th Finance Commission recommendations.The public debt is estimated to be Rs 59,732.81 crore which is 22.64 per cent of GSDP, he said.

The department-wise allocation for the state plan for 2012-13 is Rs 3670.26 crore for education, Rs 3613.63 crore for road construction, Rs 2192.47 crore for water resources, Rs 2118.40 crore for social welfare, Rs 2001.75 crore for energy, Rs 8663.37 crore for planning and development, Rs 1661.78 crore for rural works, Rs 1574.84 crore for rural development, Rs 1200 crore for agriculture, Rs 1186.00 crore for panchayati raj and Rs 6917.50 crore for others.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by sanjaykumar »

We finally have an accurate number for the y-o-y inflation rate:



I am sorry but any official figures of a country's inflation that gives two decimal places (significant figures) betrays a deep illiteracy.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by neel »

sanjaykumar wrote:We finally have an accurate number for the y-o-y inflation rate:



I am sorry but any official figures of a country's inflation that gives two decimal places (significant figures) betrays a deep illiteracy.
If we are discussing significant figures, keep in mind that the price index has 5 sig figs, so the ratio of 2 price index time-points should also have 5 sig figs (e.g. 1.0825). They did it correctly. As to what I think you might have wanted to (but did not) say regarding the accuracy of the price index, I would actually encourage you to read the entire documentation of the methodology for gathering the data before deriding it.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by paramu »

nawabs wrote:PM's advisers see current a/c deficit worse than in 1991
Want govt to raise excise duty and service tax rates, cut subsidies
Very misleading title. Current account deficit is different from raising excise and service taxes. The title gives an impression that the solution suggested for BoP issue is raising excise taxes, which is only counter productive.
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by sanjaykumar »

Precision and accuracy are two different parameters of a measurement. I am not even sure what a price index to five decimal places in a country as large as India means. I mean that quite literally. is the price of onions the same in Himachal as Manipur, is the onion even the same?!
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Re: Indian Economy: News and Discussion (Apr 1 2011)

Post by Anurag »

neel wrote:
Anurag wrote:X-Posting from the India-US thread

Indo-US bilateral trade expected to cross $100 bn this year
http://www.hindustantimes.com/business- ... 08315.aspx

Can someone tell me how they plan to make this happen within a year. According to the US Census Bureau the bilateral trade was roughly $58 Billion for 2011.

http://www.census.gov/foreign-trade/balance/c5330.html
$58B is the trade in goods. $100B is the total trade (i.e. trade in goods + trade in services).
Ah, got it. Thanks!
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