Nice report and I personally think Live Mint does a far better job in business journalism than the other papers.
Aha OK. But what a peculiar thing to put in a chart? Is this type of measure very common? From what little I know GDP numbers are always given in USD either in real dollar or PPP dollars for comparison purposes.Arjun wrote:Amit, that would be India GDP (PPP) as percentage of global GDP I presume.
7.4 Trillion / 108 Tr = 6.8%
The first two are probably the biggest ones that are nearly beyond redemption and need to be privatized. Rest all have some strategic or industrial significance and can be turned around with good management/pvt involvement.Supratik wrote:Some info on loss making PSUs
http://www.indiaspend.com/cover-story/s ... ign=buffer
Net Loss (in Rs crore) Net Loss of Loss-making CPSUs
Code:
7,019.8 Bharat Sanchar Nigam Ltd.
5,388.8 Air India Ltd.
1,560.6 Hindustan Photo Films Manufacturing Co. Ltd.
885.1 Hindustan Cables Ltd.
492.2 State Trading Corp of India Ltd.
380.5 Hindustan Fertilizer Corpn. Ltd.
352.5 STCL Ltd.
344.3 I T I Ltd.
303.9 Chennai Petroleum Corporation Ltd.
274.7 Shipping Corporation of India Ltd.
17,002.2 Total
20,055 Net loss of loss-making CPSUs
Code: Select all
d2thdr at the rate of dr dot comI have posted this before and will do so again, but the #1 problem with our savings rate is the public sector. The household and private sector is flying just about as high as they can but the public sector sector comes along and undoes all the good work. Compared to the money invested the returns they generate in profit and savings is minuscule. In fact if you use inflation they are probably in dis-savings territory...Supratik wrote:The actual govt losses will be higher if you add another $30 billion for state PSUs. This is massive wastage. Among the companies listed except for petroleum none are strategic. You will do better if you spend the money you loose on AI in buying strategic air lift capability.
number of procedures for starting a business - this is in govt's radar.Of the 114 indicators spread out over twelve pillars used in the index, India’s ranking was below 100 in the case of 29 indicators. The worst performing indicators were the ratio of women in the labour force ( ranked 132), government budget balance (131), number of procedures for starting a business (129), business costs of terrorism (126), trade tariff (124), number of mobile broadband subscriptions (124), flexibility of wage determination (120), organised crime (119), availability of international internet bandwidth (116), infant mortality rate (114), days to start a business (110), availability of latest technologies (108) and inflation (105).
Interestingly, there's a big gap between DIPP FDI data and what FT reported earlier:The Centre's efforts to unearth unaccounted money stashed abroad seems to have got a tepid response, with the declarations made under the three-month compliance window that ended on Wednesday turning out to be much lower than expected. The government ruled out an extension of the one-time relief window, saying it was not a measure to raise revenues but an opportunity for people with undeclared money to avoid prosecution under the unaccounted money legislation.
According to official sources, as of Wednesday evening, declarations of only about Rs 3,000 crore had been made during the three-month window. However, more disclosures might have come by the end of the day, given that these could also be made online.
According to news agency PTI, there was a rush on Wednesday to declare assets in New Delhi. A stream of people, including those from Rajasthan and Karnataka, walked into the only designated office before the closure of the one-time compliance window. "A huge number of declarations are expected to be made through the official e-filing website of the I-T department," PTI quoted an official as saying.
"We are not concerned about the response. The government did not stake its reputation on the compliance window at any stage. We made it clear it was not a revenue-raising measure like the voluntary disclosure scheme of 1997. It was an opportunity for people. From now we will start acting and prosecuting; they should not say a retrospective act has come in," said a government official in the know.
In fact, the government had collected far more money - close to Rs 10,000 crore - under its Voluntary Disclosure Scheme of 1997 to declare source of income.
This time, as part of its electoral promise to get back unaccounted money stashed abroad, the government had enforced the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, with stringent punitive provisions for evaders.
It might be interesting to GoI that what's visible to official sources is much less than what FT suggests is coming in, and where the rest might theoretically be making it's way through.Foreign investment inflows during January-June 2015 stood at $19.4 billion, compared to $14.94 billion in the year-ago period. This, however, is at variance with the foreign investment inflows of $31 billion as claimed in a report published in Financial Times.
According to the Department of Industrial Promotion & Policy (DIPP), during the six-month period, foreign investment inflows showed a fluctuating trend. The highest foreign direct investment (FDI) received in January was $4.48 billion, compared to $2.18 billion in the same month a year ago. FDI inflows also grew in February to $3.28 billion compared to $2.01 billion. However, the month of March saw a dip and reached $2.11 billion against $3.53 billion in the same month a year ago.
Irrelevent noise...Indians need to learn that that the only statistic that matters is how we perform in comparison to the rest of the world. If the rest of the world is tanking, 26% growth in FDI in India is fabulous. If the rest of the world is booming - 49% growth in FDI is poor.A_Gupta wrote:Some discussion of FDI numbers: good, but not as good as claimed by the government.
http://www.business-standard.com/articl ... 447_1.html
There could be a mismatch between what has been remitted into an account that constitues an outbound investment for a foreign investor and the ministry figure which kicks in only after an investment is approved where such investments are subject to specific approval. It could even be investments that were approved earlier and so becomes a statistic for Govt data purposes. So it is all a timing difference.Supratik wrote:We need clarity on those FDI numbers. Where is FT or TOI getting their numbers from? Why the mismatch?
August core sector growth picks up to 2.6%India's equity mutual fund managers have broken all previous records when it comes to pumping in money in stocks. In the first half of the current financial year, put together, they made a net investment of nearly Rs 50,000 crore - much higher than what they did in the whole previous financial year.
Further, it has also surpassed the overall net investment they made during the previous bull run between FY04 and FY08.
In FY15, total net investments stood at Rs 40,722 crore. Prior to that, fund managers had been net sellers of equities for five years in a row and sold shares worth Rs 75,000 crore due to intense redemption pressure from investors. On the other hand, between FY04 and FY08, they had bought shares worth Rs 41,426 crore as markets rose to historical 21,000 mark.
However, over the last one-and-a-half years, situation has dramatically changed. On the back of robust inflows from Indian retail investors, fund managers are in top gear buying equities. What is interesting is the fact that despite markets are trading about 15 per cent below their recent peaks, there is no dearth of fresh money flowing. This is only strengthening fund managers' hand to buy shares at every fall.
Growth in eight core sectors — coal, crude oil, natural gas, refinery products, fertiliser, steel, cement, and electricity — increased to 2.6 per cent in August after a slower 1.1 per cent in July. However, the 2.2 per cent cumulative growth in April to August of FY16 still remains less than the corresponding figure previous year, which was 5.6 per cent, according to data released by the Union ministry of commerce and industry on Wednesday.
In March and April this year, the eight sectors, which have a weightage of nearly 38 per cent on the Index of Industrial Production (IIP), had witnessed contractions of 0.1 per cent and 0.4 per cent, respectively. However, in May and June, the core sector expanded 4.4 per cent and three per cent, respectively. Madan Sabnavis, chief economist at CARE Ratings, said though month-on-month figures show growth in all sectors other than steel, the cumulative figures for the April-August period, showing lukewarm growth in most sectors, should be kept in mind.
All sectors posted growth other than steel, which continued to contract 5.9 per cent. Last month, it had started falling 2.6 per cent. Its cumulative index during April-August in 2015-16 showed no growth over the corresponding period of the previous year when it grew 6.6 per cent. Generally indicative of the infrastructure growth in the country, steel figures hint at stagnant growth in the sector.
The Nikkei manufacturing purchasing managers index (PMI) fell to a seven month low in September reaffirming concerns about the durability of the nascent economy recovery. The PMI fell to 51.2 in September, down from 52.3 in August. A reading above 50 indicates an expansion in manufacturing activity.
New order and output increased at a slower pace, with the latest data pointing to the weakest rise in production since May last year. The slowdown the report notes was across all three broad areas of the manufacturing sector. New business from abroad expanded at the slowest pace in the current 24-month sequence of growth, which suggests that export growth is likely to come under pressure.
Last week, Finance Minister Arun Jaitley said that it had already advanced over Rs 24,000 crore to over 3.7 million micro enterprises and he expected advances to cross Rs 1.2 lakh crore by the end of the current financial year, with over 12.5 million borrowers. By the yardsticks of even the most efficient organisations, this is a phenomenal achievement; by the standards of India's public institutions, even the well-run ones, this seems to be a creditable record, matching the pace at which bank accounts were opened under the Prime Minister's Jan Dhan Yojana.
Let me try to rephrase it. The FT article could be based on investment intentions while official figures reflect documented inflows. For instance, an investment might not be recognised as FDI until a piece of paper lands in the Department of Industrial Policy and Promotion (DIPP)showing that the money has landed and the project is covered under 'automatic approval' route. Similarly, it is not counted as FDI unless the DIPP has specifically cleared the investment proposal because the project needs specific approval and money has actually been received. Even if the FT article is based on actual remittance into India, there could be a lead time for all this to get reflected in official figures. FT is a paid content service. I have only a limited access. So if someone could actually post it (if it is not a copyright violation) may be there would be better clarity.Supratik wrote:Still not clear. In that case shouldn't you be reporting the actual investment made?
The country is set to add more than 4 GW of solar power by March 2016, the largest annual addition of capacity in the solar sector, according to a document of the Ministry of New and Renewable Energy (MNRE).
By the end of the current fiscal, the solar energy sector is expected to commission 4,345 MW of new capacity. Of this, 3,775 MW of capacity will be added under the state governments’ policies category, while about 570 MW of capacity is to be added under Central government schemes.
Tamil Nadu tops the list with about 1,214 MW capacity set to be commissioned, while Telengana is likely to add about 1,166 MW. Madhya Pradesh and Andhra Pradesh are expected to add 432 MW and 350 MW respectively. Eight other states will contribute the rest of the capacity increases.
Under the central government category, about 330 MW will be added through the viability gap funding scheme (phase II and Batch I of National Solar Mission), while 240 MW will be added through rooftop programmes.
As of September 18, India has added a cumulative grid-connected solar capacity of 4,262 MW. Among the states, Rajasthan tops the table in solar capacity addition with the state contributing 1,175 MW capacity. Gujarat is ranked number two with a contribution of 1,000 MW. Madhya Pradesh, Maharashtra and Andhra Pradesh have contributed 649 MW, 379 MW and 279 MW respectively. During the first half of this fiscal, 518 MW of capacity has been commissioned.
The MNRE document also indicates that 10,859 MW of solar capacity is expected to be commissioned during 2016-17 by public sector undertakings (PSUs), states and the rooftop sector. PSUs and the rooftop segment are projected to add a combined capacity of 9,244 MW.
Meanwhile, the tariff for solar power declined as low as Rs.5 per kWh. The weighted average tariff for solar fell to Rs.5.65 per kWh, quoted in solar projects in Punjab, in September from Rs.12.16 per kWh quoted in NSM Batch 1 during December 2010, data in the report showed.
FT is getting it from their data service, fDI Markets.Supratik wrote:We need clarity on those FDI numbers. Where is FT or TOI getting their numbers from? Why the mismatch?
The Reserve Bank of India definition is different:What is classified as a FDI project?
fDi Markets tracks crossborder investment in a new physical project or expansion of an existing investment which creates new jobs and capital investment.
Joint ventures are only included where they lead to a new physical operation. Mergers & acquisitions (M&A) and other equity investments are not tracked.
There is no minimum size for a project to be included.
How often is data collected and updated?
Data is collected real time as announced by a company and provided as a daily e-mail newswire and live updates online. Data goes through a rigorous quality control process, before being published at the end of each month to Trends Analysis and reporting tools.
Does fDi Markets track investment and jobs?
fDi Markets tracks information on capital investment and direct jobs associated with an FDI project.
As companies do not always release information on investment amount or job creation, a proprietary econometric model estimates the jobs and investment where the actual value is not known.
Customers have the option on fDi Markets to include or exclude these estimates.
Compare with the FT's "fDi Markets tracks crossborder investment in a new physical project or expansion of an existing investment which creates new jobs and capital investment."Foreign investment is reckoned as FDI only if the investment is made in equity shares, fully and mandatorily convertible preference shares and fully and mandatorily convertible debentures with the pricing being decided upfront as a figure or based on the formula that is decided upfront.
The Department of Industrial Policy and Promotion (DIPP) compiles FDI data. The data is collected and reported by the Reserve Bank of India (RBI) as unit records of various FDI inflow transactions. These unit records provide information about the name of the Indian company, name of the foreign investor, amount of foreign direct investment, route of inflow and the receiving sector. DIPP processes these unit records into a usable form and presents them in different ways. In general, FDI inflows are presented by route (RBI Automatic, FIPB and acquisition of shares), by country of origin and by sector
The OECD will in 2016 come out with a multilateral convention aimed at preventing treaty abuse. India will have the option to become a signatory and if Mauritius also signs it then the provisions will overtake the bilateral or renegotiate the bilateral treaty on the basis of the convention.
