Indian Economy News & Discussion - Aug 26 2015

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JohnTitor
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by JohnTitor »

I see. Is it just non-Indian entities that issue them?
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by James »

No, in fact it will typically be only Indian entities that issue them. It is one more source of raising funds for Indian corporates - other than equity, bank borrowings and domestic corporate bonds.

While masala bonds will typically be priced higher than bonds issued in USD, from the corporate's point of view, it will be cheaper than or at par with domestically issued debt. Plus the corporate does not bear the forex risk - this is particularly useful for those corporates which do not have forex earnings, which act as a natural hedge in case of USD borrowings. Most importantly, it diversifies a corporate's source of borrowings, so as to reduce dependencies on any one particular type of borrowing.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by SaraLax »

JohnTitor wrote:I see. Is it just non-Indian entities that issue them?
IIRC - the most recent entity that usedthis Masala Bonds route of raising money was HDFC Bank.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Singha »

Thiruvananthapuram: The southwest monsoon has hit Kerala and Northeast India, the India Meteorological Department (IMD) announced at 10:41am on Tuesday.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by James »

SaraLax wrote:
JohnTitor wrote:I see. Is it just non-Indian entities that issue them?
IIRC - the most recent entity that usedthis Masala Bonds route of raising money was HDFC Bank.
Not HDFC Bank but the mortgage lender HDFC Ltd.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Gus »

Singha wrote:Thiruvananthapuram: The southwest monsoon has hit Kerala and Northeast India, the India Meteorological Department (IMD) announced at 10:41am on Tuesday.
looks like normal season this time.

plus good rains in may itself in TN - very unusual.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Hari Seldon »

Hoping for bumper rains this year and the next couple of years too. Will help re-election bid of this govt.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by arshyam »

Gus wrote:plus good rains in may itself in TN - very unusual.
Everywhere except Chennai - my dad was complaining about the stifling heat and no breeze this week. Probably the cyclone induced a higher pressure area over northern TN.

Anyway, the southern states have taken a beating with poor rains over the last year or two. Hopefully some agricultural activity will resume this year. Though the north I understand has had a bumper crop this year so overall we are okay.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Gus »

follow Tamil Nadu Weatherman at FB / twitter for TN specific rain updates - he's really good and informative.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Suraj »

JohnTitor wrote:I see. Is it just non-Indian entities that issue them?
As James says, they're done by Indian corporates, issued on a foreign bond exchange, but in Rupees. They're like ECBs (external commercial borrowings), except there's no currency risk on the company's part, and the risk lies in the investors hands since the bonds are Rupee denominated but the investors are foreign entities buying them in their currency (which is exchanged to Rupees). Settlement is done in the foreign currency, but at the value corresponding to the prevailing exchange rate. A significant weakening in Rupee for example, would crimp the return or even register a loss to the investor, while the Indian company is unaffected.

This is the dry theory. The interesting thing here is that foreign investors are now willing to eat the currency risk to invest in India. This is a huge paradigm shift from before. There used to be a time when we had to eat the currency risk, i.e. our exchange rate management was not considered sufficiently good enough for anyone to bear the risk themselves. But now, it's foreigners who are willing to take on the risk themselves for a chance to invest in India. What's more, they're setting up funding mechanisms within their own exchanges in the form of masala bonds. This gives them a measure of regulatory familiarity since these bonds are issued under regulations in the foreign investors' own market. But they still bear the currency risk .

Separately, Indian government, state and corporate debt issued within India is also extremely popular with foreign investors, and yes all these are of course Rupee denominated, and also run according to RBI/SEBI norms. RBI has maintained a policy of slowly increasing the limit for the total foreign holdings of Indian debt issued in India by Indian entities (govt/private):
(March 2017 news) RBI increases FPI limits in govt bonds by Rs170 billion ($2.7 billion)
The Reserve Bank of India (RBI) on Friday increased foreign portfolio investors’ (FPI) limits on investment in government bonds by an aggregate Rs170 billion for the April- June period.

The limits for investment by FPIs in central government securities have been increased by Rs110 billion, while the same for State development loans (SDLs) are up by Rs60 billion, the RBI said in a notification.

On the central government securities, the cap on general category has been increased to Rs1,565 billion from the Rs1,520 billion, while for long term investors, the limit has been upped to Rs745 billion from Rs680 billion earlier.

This takes the total increase in the investment caps for FPIs in g-secs up to Rs2,310 billion ($36 billion) from Rs2,200 billion. On the SDLs, the cap on investments by FPIs, including the long term ones, has been moved up to Rs270 billion from the earlier Rs210 billion earlier.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Singha »

monsoon predicted to reach upper north india by june30.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Suraj »

GDP growth slows to 6.1% in Q4, 7.1% in FY17
Annual gross domestic product (GDP) growth for the January-March period in the financial year (FY) 2016-17 came in at 6.1 per cent, compared with a provisional 7.0 per cent in the previous quarter, government data showed on Wednesday.

The expansion was much slower than the 7.1 per cent forecast by economists in a Reuters poll. For FY17 ending in March, New Delhi reported GDP growth of 7.1 per cent, slower than an 8 per cent expansion a year ago.
April core sector growth slows to three-month low of 2.5%
The growth of eight core sectors declined to 2.5 per cent in April mainly because of lower coal, crude oil and cement productions.

The growth rate of eight infrastructure sectors — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity — was 8.7 per cent in April last year.

According to the government data released on Wednesday, coal, crude oil and cement production recorded negative growth of 3.8 per cent, 0.6 per cent and 3.7 per cent, respectively.


Slow growth in key sectors would also have implications on the Index of Industrial Production (IIP) number as these segments account for about 38 per cent to the total factory output.

Growth in refinery products and electricity output slowed down by 0.2 per cent and 4.7 per cent in April as against 19.1 per cent and 14.5 per cent, respectively in the same period last year.
CSO Official GDP Report
Part of the problem here is that in January, data from 2011-12 onwards were all revised upward because the base year for WPI and IIP were changed from 2004-05 to 2011-12, to match the GDP series. Therefore GDP growth for the past two years has accelerated. It was 7.5% (not 7.2%) in 2014-15, and 8% (not 7.9%) in 2015-16 . The current year figure of 7.1% will also be revised soon.
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Re: Indian Economic Growth Slows To Lowest In More Than 2 Years: 10 PointsEconomy News & Discussion - Aug 26 2015

Post by Austin »

Economic Growth Slows To Lowest In More Than 2 Years: 10 Points

http://www.ndtv.com/india-news/economic ... eststories
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Supratik »

NDTV should throw an early Halloween party. This slowdown was predicted soon after demonetisation. It is temporary and will bounce back.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Suraj »

Part of the 'slowdown' is statistical because the year prior data was revised up significantly . Q4 2015-16 data was originally 7.9% and was subsequently revised up to above 8%, with the full year 2015-16 GDP growth raised from 7.6% to 8% now .

In fact all the last four years' worth of data was scaled up, but it's not clear if Q4 data for 2016-17 was also scaled up to the new base year .

Funnily enough the mainstream press has studiously avoided listing either the Q4 2015-16 data that was revised up, or mentioning that full year growth for 2015-16 has been revised up to 8% now . But that is to be expected from them :-)
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by srin »

One thing for sure - this GDP rate won't be called "faked" :evil:
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Supratik »

Austin
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Austin »

INDIA GUEST COUNTRY AT SPIEF 2O17

http://www.makeinindia.com/spief

#SPIEFIndia


https://twitter.com/hashtag/SPIEFIndia
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Supratik »

Where does India get all the remittances from? Here is the latest diaspora update from MEA. There are now 30 million Indians abroad - the largest diaspora. NRI is non-resident Indian, while PIO are people of Indian origin i.e. those who are permanent residents or citizens. USA now has nearly 4.5 million Indians, followed by Saudi Arabia.

http://mea.gov.in/images/attach/NRIs-and-PIOs_1.pdf
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Vips »

OT here but seems a lot of POI's in the French Reunion Island. 280,000 POI's is a large number.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Vips »

Next GDP series may use FY 2017-18 as base.

The government has started work on the next base revision of the gross domestic product (GDP) series that can most likely take fiscal year 2017-­18 as the base, chief statistician TCA Anant has said. The new series of national accounts, with revised base year of 2011-­12 from the earlier base of 2004­-05, began in January 2015. Before that, the base year of national accounts was revised in January 2010.

“We have already started work for the next base revision for GDP,” Anant told ET in an interview. An expert committee is looking at fixing the new base year for GDP, which could probably be 2017­-18, he said.

Emphasising that GDP revision should happen every five years, Anant said: “We will look for all new data sources that have become available since the last revision to see how the GDP can be improved.” One such source is the goods and services tax as the new tax regime would help capture more transactions, especially in the government.“

It would have its own data structures. In the next revision, we hope to take advantage of this to better compute GDP,” he said. Apart from getting data from a single agency, the government is hopeful of also capturing data not available in the past. However, Anant said only research would tell if the statistics office would be able to completely make use of the data provided by the GST Network.

Terming India’s growth consistent with revised production and inflation data, Anant said he was satisfied with the numbers but called the decline in growth a consequence of long­term processes such as demonetisation and behaviour of commodity prices.

“I’m satisfied with the numbers because they bear up to my assessment. What I have seen with the data so far and what I had seen when we revised IIP and WPI…the numbers are broadly consistent with those,” he said.

Global commodity prices collapsed in 2014-15 due to which the wholesale inflation was negative for nearly 14 months. “This long-term trend is a result of something that has been happening over the last two years. This price behaviour has an effect on GDP in constant prices,” he said.

On Wednesday, data released by the statistics office showed India’s growth slowing to a two-year low in FY17 at 7.1% and the fourth-quarter growth slowed to 6.1% with which the country ceded its ranking as the world’s fastest-growing economy back to China in the March quarter. “I was not happy with the tag in the first place. Comparing the pace of economic growth without having a careful correction for the size of the economy is comparing apples to oranges,” Anant said.

He corroborated experts’ view on the need for India to grow at 9­-10% for long term to create jobs and for growth to be felt on the ground. “If you want to see a major structural transformation of the economy, you would like to see growth of 10% or more for a decade,” he said. Though India has seen high growth it has not yet broken into that threshold for a long enough time span to make major structural transformation, Anant said.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by A_Gupta »

Supratik wrote:More explanations from Jaggi.

https://swarajyamag.com/economy/not-jus ... h-slowdown

I hope Jaggi is wrong about "growth will not revive too soon".
The pincer of bad loans and corporate deleveraging, coupled with the attack on black money, tax evasion and benami transactions, and the final assault on cash-based transaction with demonetisation points in only one direction: India Inc does not have the profit or cash leeway to invest in growth. Growth will not revive too soon.

The price for having a cleaner economy, with more taxpayers, less evasion and less corruption, is being paid in terms of postponed investments and growth.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by disha »

^^ Jaggi is wrong.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by KL Dubey »

Supratik wrote:Where does India get all the remittances from? Here is the latest diaspora update from MEA. There are now 30 million Indians abroad - the largest diaspora. NRI is non-resident Indian, while PIO are people of Indian origin i.e. those who are permanent residents or citizens. USA now has nearly 4.5 million Indians, followed by Saudi Arabia.

http://mea.gov.in/images/attach/NRIs-and-PIOs_1.pdf
Uhhh....this seems to be your own definition, since I did not see any such definition in the MEA report.

Correct definitions:

NRI = Any Indian citizen living overseas (including those who are permanent residents of other countries)

PIO = People who qualify as "Indian origin" according to the GOI definition, but who are NOT Indian citizens.

OCI = A PIO who has got an OCI card.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Amber G. »

^^^ I believe PIO (Person of Indian Origin) classification is, at least officially, going out starting this June or so....(NO more PIO cards will be issued after June 2017)
Officially OCI (Overseas Citizen of India) card for any one whose parent/grandparent/great_grandparent ( or is spouse of such person) who was at one time citizen of India (or held a OCI card) and ready to take an oath that neither him/her of any of his/her relatives (3 generations) ever even dreamed of thinking about living in Pakistan..

(After current President and status in US.. every single one of my relatives in US (even sixth cousin fifth removed who never even been outside US) applied and got the card .. just in case .... get them while you can :))
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Muns »

Finance Minister Arun Jaitley: GST to lift economy: After humbling GDP figures.

http://www.india-aware.com/finance-mini ... p-figures/

Mr Jaitley said the planned July 1 launch of GST would boost economic growth and the government was “in a state of preparedness” for the rollout.

However, some analysts say the launch might hurt near-term growth as businesses could delay production until they have clarity on GST’s impact on existing stock.

Mr Jaitley dismissed those concerns as erroneous.

He lauded the economy’s performance in the fiscal year that ended in March. GDP growth was 7.1 per cent, slower than the previous year’s 8.0 per cent.

Given global conditions, “7-8 per cent growth, which at the moment is the Indian normal, is fairly reasonable and by global standards very good”, Jaitley said.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Singha »

RERA has also come into effect from 1st june.

mainly 70% of funds given by clients of a project have to be deposited into a escrow a/c by builder. it can be withdrawn only for that project construction and delivery and each withdrawal has to be signed off by their civil engr and CA and a paper trail maintained. the lending banks are supposed to keep an eye on this for their own benefit.

this will hopefully curb the common practice of using the funds for one project to launch the next project while leaving current clients hanging for years with no recourse. there are people i know who invested in greater noida in projects of jaypee whose money all got sucked in with no delivery many many years later. i think dlf and ansals also pulled the same trick.

new residential construction projects might see a slowdown as builders adjust to this new way and shed bad habits.

commercial projects are funded by big investors with enough legal stick on their side, so even earlier builders worked very honestly and 3 shifts onlee to complete ahead of time. maybe there are bonuses for on-time delivery but there is a huge diff between the ferocious pace of 'big slab' SEZ office construction in blr and even the swiftest residential projects. one works like a toyota factory and the other like hahib sitara plant.

in the end clean growth lower than dirty growth is still better because its sustainable, rather than building a overhang of bad stuff it did in UPA regime. clean growth via better compliance will generate similar taxes for govt via a leaky high dirty growth.

only area where it might not be so good is job generation.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by A_Gupta »

https://www.bloomberg.com/news/articles ... gher-sales
Indian Stocks Rise to Record as Automakers Post Higher Sales
India’s equity benchmark rose to a fresh record as shares in automakers advanced.

The S&P BSE Sensex rose 0.4 percent to 31,273.29 at the close in Mumbai. The NSE Nifty 50 also closed at an all-time high. Hero MotoCorp Ltd. and TVS Motor Co. gained after each posted an increase in sales for the month of May.
India’s stock market, the world’s 10th largest, has broken multiple records this year, drawing in more money from both local and foreign investors. More than half the companies in the Nifty reported earnings this season that beat or matched estimates.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Gus »

the RERA is a badly needed set of regulations....mindboggling that we have been running along so far with huge numbers involved without even basic protections and regulations
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Austin »

India plans by 2022 to increase the amount of generation of "green" energy to 175 GW

http://tass.ru/pmef-2017/articles/4307933
According to the country, the exploitation of the Prime Minister of the Environment - is a crime, so India is committed to nature conservation

MOSCOW, June 2. / TASS /. India plans by 2022 to increase production of renewable energy in the country to 175 gigawatts. This was stated at the plenary session of the St. Petersburg International Economic Forum (SPIEF) Prime Minister Narendra Modi.

"As for the sources of traditional energy, we work more in the field of renewable energy sources, 175 gigawatts we want to implement until 2022. I do not mean nuclear power and solar energy, biomass. This is a great invitation to the world, we want to work responsibly in regard to the environment ", - said Modi.

According to him, the exploitation of the environment - is a crime, so India is committed to the principle of environmental protection. "We do not want to just milked nature I am referring to our production process has no impact on the environment, would be protection of the environment, in this direction we are moving.", - he explained.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by KL Dubey »

Monsoon rayne tracka: A lotta different kinda maps/info.

http://www.imd.gov.in/pages/monsoon_main.php

She lookin' good so far! Dat sweet necta already raynin' down on KL and TN.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Prem »

http://www.business-standard.com/articl ... 368_1.html

Finance ministry, RBI split out in the open
The finance ministry reacted sharply to the RBI’s decision not to cut rates, with Chief Economic Advisor Arvind Subramanian telling reporters that “in recent times, seldom have economic conditions and the outlook warranted substantial monetary policy easing.”Subramanian said that non just headline prices, core inflation had declined as well and indicated that the RBI’s “inflation forecast errors have been large and systematically one-sided in overstating inflation.”The CEA also said that real economic growth had seriously decelerated as suggested by indicators such as gross value added, index of industrial production, capital formation and capacity utilisation. Even consumption had been coming down as shown by personal loan growth data, the CEA said.Subramanian’s statements, and the views of other senior policymakers in North Block, who spoke to Business Standard after the MPC’s decision on Wednesday, clearly show that all is not well between the ministry and the RBI.“There is absolutely no economic basis for the MPC’s decision to hold rates today. It is more an issue of the governor’s ego,” said an official. “There will be no better time to cut interest rates,” the person said. Patel’s public comments on the supposed meeting between MPC members and finance ministry representatives was dubbed “uncalled for” by another official.Traditionally, the RBI Governor visits the Finance Minister ahead of each monetary policy meeting. He also meets the finance secretary, economic affairs secretary and the chief economic advisor. It is at such meetings that the government presents its views to the RBI.However, since the formation of MPC last September, the view in the ministry has been that there needs to be a forum for the government to express its views to all the MPC members. An informal three-member group was formed consisting of the then Economic Affairs Secretary Shaktikanta Das, Principal Economic Advisor Sanjeev Sanyal and the CEA. This group was scheduled to meet the three independent members of MPC – Pami Dua, Chetan Ghate, and Ravindra Dholakia, on June 1 in New Delhi, and Governor Patel, RBI Deputy Governor Viral Acharya, and executive director Michael Patra in Mumbai on June 2. These were to be the first set of meetings under this new mechanism.In an interview with Business Standard last month, Subramanian justified the need for the three-member finance ministry panel. “The act (Finance Act 2016) very clearly says that the government should be allowed to provide inputs to the monetary policy committee. This group is just consistent with that… Remember, these are inputs, we don’t pressurise them. They are free to take our views into consideration or not. We will meet them before monetary policy meetings to present our opinions,” he had said.Das retired on May 31, and Sanyal was out of the country on official work. It is understood that Das’ replacement, Corporate Affairs Secretary Tapan Ray, who has additional charge of the department of economic affairs, was still new to the job. Hence it fell upon Subramanian to hold these meetings.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Suraj »

Home loans set to get cheaper as RBI cuts provisions, risk weights
Home loans are about to become cheaper with the Reserve Bank of India (RBI) relaxing provisions for individual housing loans. It will not only bring down housing loan rates, but also intensify competition among lenders to acquire existing loans from each other.

State Bank of India Chairman Arundhati Bhattacharya said, “The large cut in inflation projection by the RBI in the monetary policy is in consonance with ground realities and is likely to create room for rate cuts in the latter half of the year. The decision to reduce the risk weights for home loans over the Rs 30-lakh category will release capital for the banking industry and is a positive move.”

The RBI has relaxed risk weight requirements as against the loan-to-value (LTV) ratio for loans above Rs 30 lakh. For loans above Rs 30 lakh and up to Rs 75 lakh, the risk weight has been brought down to 35 per cent with LTV ratio up to 80 per cent. For loans above Rs 75 lakh, with LTV ratio up to 75 per cent, risk weight has been reduced from 75 per cent to 50 per cent.
Essentially RBI is surprised CPI data is low and wants a couple of more months' data to confirm their plan to cut rates:
RBI keeps door open to cut rates, is watchful of incoming data
The six-member monetary policy committee (MPC) of the Reserve Bank of India (RBI) on Wednesday voted five-to-one to keep interest rates unchanged, preferring to remain watchful of incoming data.

Even as the central bank’s official policy stance continued to remain "neutral", the language used by RBI officials gave the impression to the market that the central bank had embraced an accommodative stance once again. The central bank kept the possibility of a future rate cut open as a “premature action at this stage risks disruptive policy reversals later and the loss of credibility”.

Retail inflation at 2.99 per cent in April “surprised on the downside and imparted high uncertainty to the (RBI inflation) outlook,” Urjit Patel, RBI governor, said in his opening remarks at the policy press conference.
There's been a record jump in FDI to $61,724 bn from $34,487 bn: PM Modi
The Foreign Direct Investment (FDI) has seen a huge jump from $34,487 billion to $61,724 billion since 2013, Prime Minister Narendra Modi said on Wednesday.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Hari Seldon »

Suraj wrote:There's been a record jump in FDI to $61,724 bn from $34,487 bn: PM Modi
The Foreign Direct Investment (FDI) has seen a huge jump from $34,487 billion to $61,724 billion since 2013, Prime Minister Narendra Modi said on Wednesday.
Typo. Should be million, not billion. DDM s usual.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Marten »

https://www.bloombergquint.com/opinion/ ... oan-waiver
More than three-quarters of the Union government’s revenues are from tax collections, split roughly equally between direct and indirect taxes. HowIndiaLives, a big-data analytics startup, unearthed an answer provided by the Ministry of Finance in the Upper House of Parliament on July 22, 2014, providing details of state-wise personal income tax collection for the financial year 2012-13 (FY13). Using this unique dataset for personal income taxes, our own estimates for state-wise corporate tax collections and Income Tax Department data for indirect taxes, we estimate the state-wise contribution of all taxes to the Union government’s kitty for FY15. This is not based on zone-wise corporate tax data that has an inherent skew. Please find the detailed methodology here for calculation of state wise contribution to personal income tax, corporate tax, excise, customs and service taxes.
Link to their methodology.
Image
Maharashtra alone contributes a quarter (25 percent) of all of the Union government’s tax revenues. To put that in a global context, the largest state in the United States, California, accounts for just 12 of all tax revenues of the federal government. Four large states (Maharashtra, TN, Gujarat, and Karnataka) account for more than half of all tax collections of the Union government. On a per capita basis, the average Maharashtra resident (individual and corporate) contributes nearly Rs.33,000 per year to the Centre’s tax kitty. The average Gujarati, Kannadiga, and Tamilian contribute roughly Rs 20,000 each, per year. Contrast that with the average UPite who contributes just Rs 7000, roughly one-third of the average Tamilian.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Karthik S »

Kashmir valley is missing there.
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by JTull »

Karthik S wrote:Kashmir valley is missing there.
Why just Kashmir Valley, and not Leh and Jammu?

I'd like to know breakdown of these tax numbers, and whether it includes state taxes. Bihar, Jharkhand, etc are resource rich states. Central govt gets lots of royalties and indirect taxes from those operations. Also, with high population of Bihar/UP/etc, GST should distribute this ratio more evenly in future.
prahaar
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by prahaar »

Thanks for the report. Some comments: AP (current AP + Telengana) share seems much lower than I expected. I thought, AP+KA+TN+MH would be top four. Gujarat above Karnataka in spite of a Bangalore is surprising. Just a matching increase of GDP share to match its population share would jump up India's GDP (especially UP and Bihar). Poor consumption of central funds in UP also suggests inability to utilize central funds, on that aspect Bihar is performing much better.
saip
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by saip »

Karthik S wrote:Kashmir valley is missing there.
Probably because it (J&K) is off the chart.
Karthik S
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Re: Indian Economy News & Discussion - Aug 26 2015

Post by Karthik S »

Our govt gives crores to J&K, most of which ends up in the valley, just wanted to check those stats.
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