Indian Economy News & Discussion - Nov 27 2017

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 23 Jul 2020 09:55

The coal based power plan has been rather poorly conceived - it has been a significant sink of forex because of the ongoing expenditure on coal as well as the expenditure on the supercritical boiler and associated gear that BHEL couldn’t produce in sufficient quantity . Everything from harbor gantry cranes to steam/heavy electrical gear to tunnel boring machines are things India needs to have its own local manufacturers dominating and then exporting to exploit their cost advantage.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Mort Walker » 23 Jul 2020 10:29

Suraj,

That may be, but coal power represents over 61% of India's electrical energy, and it represents over 198 GW out of 371 GW installed power. To decommission coal, even over a 2-3 year period would cause financial difficulty with the DISCOMS with another thermal source such as natural gas. There is no choice, but to ramp up domestic production and end imports.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 23 Jul 2020 10:40

I didn’t say anything about decommissioning coal . We’ve already another thread for that, and we’ve both been involved in that conversation . The point I’m making is that the economic construct of the drive for coal fired high capacity plants is faulty . A more comprehensive plan would focus on domestic fuel source and building enhanced domestic equipment capacity .

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Mort Walker » 23 Jul 2020 10:46

The previous article was suggesting just that I thought? What other domestic fuel source for thermal that wouldn't cost as much?
CIL claims it can meet coal requirements for central, west and south India.
https://energy.economictimes.indiatimes ... s/77101167

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 23 Jul 2020 11:01

I don’t want to rehash the coal vs RES discussion here though . I think that is well understood and has a thread for it , and we are both largely in agreement . My first post on the page is a different topic, but one suited to this thread .

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Mort Walker » 23 Jul 2020 11:11

OK. So you're saying recurring engineering and manufacturing costs of supercritical boilers and associated gear isn't readily available domestically? Besides BHEL aren't there other players like L&T, ABB, Crompton-Greaves, and Kirloskar among others who could easily do this?

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 23 Jul 2020 11:17

Data posted a few pages ago show a significant cost component involving these items in the import basket under manufacture and engineering goods imports , especially from PRC . Even during the heyday of UMPPs, BHEL order books were backlogged by up to 4-5 years . That’s a symptom of poor policy making. In comparison the Chinese assiduously built up domestic manufacturing capacity hand in hand with development .


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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 24 Jul 2020 00:28

The article argues that PLIs have been instrumental to the spate of new investments:
Modi’s incentive scheme that charmed iPhone makers set to woo manufacturers in other sectors too
As India strives to lure foreign investors to invest in India, the Modi government is likely to offer more production-linked incentive schemes, one of which has already been successful in attracting manufacturers of big brands such as Apple’s iPhones. The government is working on offering production-linked incentives for up to five sectors to boost domestic manufacturing, a top official at the Ministry of Finance said on Thursday. The incentives would be offered to push manufacturing and help struggling industries, Economic Affairs Secretary Tarun Bajaj said at a virtual conference. However, he did not specify the sectors.

Recently, Apple’s global contract manufacturers, Foxconn and Wistron, applied for the Modi government’s production-linked incentive (PLI) scheme to make India their next hub for production and exports of iPhones. Another such scheme was witnessed in the field of pharmaceuticals where the Ministry of Chemicals and Fertilizers announced a production linked incentive (PLI) scheme for the promotion and manufacturing of pharmaceutical raw materials in India.

Indian economy set for post-COVID-19 rebound as FDI remains buoyant: IHS Markit
The Indian economy is likely to rebound in the second half of 2020 as the impact of the COVID-19 pandemic recedes, and is projected to grow by 6.7 per cent in the next financial year, IHS Markit said on Thursday. The pandemic resulted in severe disruptions in industrial production and consumption spending in India during April and May.

“The severe negative impact is expected to result in a significant contraction in GDP in the April-June quarter of 2020, resulting in a recession in the 2020-21 financial year with GDP expected to contract by 6.3 per cent year-on-year,” it said in its outlook on the Indian economy.

However, as lockdown conditions have been progressively eased, early signs of recovery were evident in the most recent economic data. The IHS Markit Purchasing Managers’ surveys for India showed that economic momentum improved in June, reflecting the easing of COVID-19 related restrictions during May and June. India imposed a total lockdown beginning March 25 and restrictions were eased from May.

“IHS Markit forecast that the Indian economy will rebound as the impact of the pandemic recedes, with improving economic growth momentum in the second half of 2020 and positive GDP growth of 6.7 per cent in the 2021-22 financial year,” said Rajiv Biswas, Asia Pacific Chief Economist at IHS Markit.

Despite the negative short-term shocks from the pandemic, total foreign direct investment into India has remained buoyant. Foreign direct investment by technology firms in the first seven months of 2020 has already reached around USD 17 billion, boosted by the USD 10 billion new investment announced by Google in mid-July.

Economy picking up? Electronic toll collection on highways rebounds to March levels in June: Crisil
Electronic toll collection on highways rebounded to March levels in June, and touched 75 per cent of February levels as economic activities across the country have started to pick up since the implementation of ‘unlock’, Crisil Research said. According to the agency, construction across national highways is also picking up, however, it is likely to see a 10-13 per cent decline this fiscal year as compared to FY2020.

“Electronic toll collection in June has rebounded to March levels and touched 75 per cent of February levels. For an idea of how hard the pandemic had slammed the brakes, toll collection had dropped off the cliff from Rs 11 crore in February 2020 to just Rs 1 crore in April,” the agency said.

The COVID-19 pandemic-induced lockdowns had virtually halted movement of people and goods in April and May, but curbs are being lifted slowly and the economy is beginning to crawl back.

The agency noted that national highway construction activities rebounded to 637 km in May from just 210 km in April. “But key construction months were lost in the lockdown and labour migration continues to pinch. Normalcy might return only after the monsoon. Overall, we are bracing for a 10-13 per cent decline in highway construction on-year this fiscal,” it said.

Meanwhile, the Ministry of Road Transport and Highways (MoRTH) spent Rs 18,700 crore in April-May, a 46x jump from Rs 400 crore in the same period last fiscal, it said.

“While this was mainly because milestone payments were made and to ease the cash flows of developers, it will have a trade-off constrained future spending by MoRTH,” Crisil said.

Project awarding also spurted three times in April-May on-year. But that was because of a backlog of already bid-out projects that were awaiting award following the lockdown.


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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Mollick.R » 25 Jul 2020 12:32

Suraj wrote:A couple of months ago I asked if posters would mind spending time on the commerce ministry site doing a breakdown of what our import basket is, both in terms of item and country of origin. There were several things there that were unusual, including high chemical and fertilizer imports from PRC, which we can almost entirely eliminate through domestic production. It's good to see that the government is doing this and that things are happening in the right direction



Traders’ body calls for boycott of 3,000 Chinese products over ‘continued’ border clashes
NEELAM PANDEY 16 June, 2020 9:07 pm IST
New Delhi: Cosmetics, bags, toys, furniture, footwear, watches — these are part of a list of 450 categories of products made in China that will be boycotted by the Confederation of All India Traders (CAIT) over “continued border skirmishes”.

Condemning China for its “military aggression” along the Line of Actual Control (LAC) in Ladakh, which led to the killing of three Indian soldiers Monday night, the CAIT said it has decided to aggressively step up its nationwide campaign to boycott Chinese goods. The traders’ body Tuesday released a list of over 450 broad categories of commodities, which have over 3,000 Chinese products.
https://theprint.in/india/traders-body-calls-for-boycott-of-3000-Chinese-products-over-continued-border-clashes/442885/


@Suraj saar, ref to highlighted part of your post. Above news was posted here before.

I was looking for exact product categories or full list of 3000 products that this article & CAIT was referring in their protest. CAIT website is of not much help, (I guess they need more professional website for better PR and information sharing). Anyways finally got part of it from Facebook page of a person associated with CAIT.

All products are mostly low tech , low capital mass consumption times. I guess Bat eater are able to export and capture our market due to infra (Land/SEZ, cheap electricity, water etc etc) as well as dumping export subsidy by their government. We have huge scope for employment generation, if our SME/ MSME sector is able to produce those items at the scale, quality & cost of {deleted}.

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Last edited by Suraj on 27 Jul 2020 07:28, edited 1 time in total.
Reason: Overzealous description of Chinese

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Mollick.R » 25 Jul 2020 13:14

Decriminalising payment dishonour to nullify cheques’ sanctity, CAIT tells Nirmala Sitharaman
By: PTI | Published: July 20, 2020 9:15 PM

Traders’ body CAIT on Monday urged the government not to decriminalise bouncing of cheques, saying the move will not only nullify the sanctity of cheques but also contradict Prime Minister Narendra Modi’s vision of a fair and trustworthy business environment in the country.

In a letter to Finance Minister Nirmala Sitharaman, the Confederation of All India Traders (CAIT) said the country’s business community has been perturbed by the proposal to decriminalise Section 138 of the Negotiable Instrument Act, 1881, (NI). The Section makes bouncing of cheques a criminal offence.

“Decriminalisation of this provision needs a serious thought as this would lead to a great problem in recovering legitimate business dues and private loans. Decriminalisation of Section 138 of this Act will prove as a deterrent to normal business instead of promoting it,” CAIT said in the letter.

It added that not only traders but people in general will also find it difficult to get any goods on equated-monthly instalments (EMI) as it is always supported by post-dated cheques, and no one will accept the cheques if its bouncing is decriminalised.

CAIT Secretary General Praveen Khandelwal said that if the person issuing the cheque knows that there is no criminal liability then it will give rise to the ease of being dishonest rather than promoting ease of doing business.

“The entire fundamentals of trade will be destroyed and traders will be left at the mercy of civil litigation that takes several years for justice. Even after the current stringent Section 138, more than 20 per cent of all pendency of cases across the country is only pertaining to cheque bounce. If it is decriminalised, there will be complete disarray and disturbance in trade dynamics,” he said.

The finance ministry has proposed to decriminalise a host of minor offences, including those related to cheque bounce and repayment of loans, in as many as 19 legislations to help businesses tide over the crisis caused by the coronavirus pandemic.

The 19 legislations include the Negotiable Instruments Act (cheque bounce); SARFAESI Act, 2002 (repayment of bank loans); Life Insurance Corporation Act, 1956; PFRDA Act, 2013; RBI Act, 1934; National Housing Bank Act, 1987; Banking Regulation Act, 1949; and Chit Funds Act, 1982.

“Actions taken for decriminalisation of minor offences are expected to go a long way in improving ease of doing business and helping unclog the court system and prisons,” the finance ministry said last month while inviting comments from stakeholders by June 23 on the 19 legislations. It would also be a significant step in the government’s objective of achieving ‘Sabka Saath, Sabka Vikas and Sabka Vishwas’, it noted.

Financial Express Link//

https://www.financialexpress.com/industry/decriminalising-payment-dishonour-to-nullify-cheques-sanctity-cait-tells-nirmala-sitharaman/2029966/

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Mollick.R » 25 Jul 2020 13:21

Govt's push for local manufacturing & exports is an opportunity for MSMEs: Expert
24/07/2020 03:17 pm

New Delhi, July 24 (KNN) Soon after the announcement for Eight more sector where India can become a supplier to the world, in addition to the 12 industry sectors already zeroed in, expert believed that government’s push for local manufacturing and exports is an opportunity for the Micro, Small and Medium Enterprises (MSMEs).

On Thursday, while speaking at a FICCI event, Commerce and Industry Minister Piyush Goyal, had said that there were 12 sectors earlier and now we have identified eight more sectors where India can become leaders to supply to the world.

''There is already a great demand in India due to its relatively young population for products like toys, plastic goods and sports gear and which will help us to become a supplier to the World,'' he avowed.
..........................Food processing, iron and steel, electronics, industrial machinery, furniture, auto parts, and leather and footwear, are among the 12 industry sectors identified earlier with potential for import substitution and boosting exports.


https://knnindia.co.in/news/newsdetails/sectors//govts-push-for-local-manufacturing-exports-is-an-opportunity-for-msmes-expert

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Mollick.R » 25 Jul 2020 16:02

This is big & have huge implications, no more cases dragging on for years & lenders in pain
Swift resolution to lenders and other stake holders in case of a failed business venture is one of the prime matrix of IBC & have equal importance on ease of doing business ranking.

Posting full article

NCLT allows liquidator to sell company stressed assets attached by agencies
By Saikat Das, ET Bureau Last Updated: Jul 24, 2020, 09:49 PM IST

MUMBAI:In a ruling that may have profound implications on many firms undergoing corporate insolvency process, a bankruptcy court has allowed the liquidator to sell the assets of a company that were attached by investigative agencies.

“The liquidator is permitted to sell the assets of the corporate debtor…which were attached by the Enforcement Directorate, subject to the right of the buyer to apply for detachment,” the Kolkata bench of the National Company Law Tribunal said in an order pronounced on July 22.

“It appears to us that the attachment and confiscation of properties of a CD (corporate debtor) undergoing CIRP (corporate insolvency resolution process) or liquidation become void under Section 32-A of the Code (Insolvency and Bankruptcy Code),” the court said in its order in the case of Varrsana Ispat, a firm promoted by REI Agro managing director Sandip Jhunjhunwala.

The ruling is expected to help speed up the insolvency process in similar cases where investigative agencies have attached assets of a corporate debtor.

“This order will unlock a lot of value in various assets owned by companies which are attached by any investigating agencies,” said Anil Goel who is the liquidator for Varrsana Ispat. “This order will become a landmark in the history of jurisprudence of insolvency law in India.”


Varrsana Ispat had come under the insolvency process in November 2017, and NCLT ordered winding up of the company on August 6 last year.

Goel was appointed as the liquidator to spearhead the winding up process. He later submitted to the court that liquidating the company as a ‘going concern’ had been hampered due to attachment of its properties by various agencies.

No one is willing to bid for the company in spite of several interested parties had approached him, Goel said.


Many agencies, including ED, Central Bureau of Investigation (CBI), Economic Offences Wing (EOW), Serious Fraud Investigation Office (SFIO), Central Economic Intelligence Bureau (CEIB), Central Bureau of Narcotics (CBN), and market regulator Sebi, had initiated criminal proceedings against the company or its promoters or associate concerns under various criminal offences. Most of it were in connection with an alleged bank fraud pegged at Rs 3,871.71 crore committed by REI Agro and its directors Sandip and Sanjay Jhunjhunwala and others.

After promulgation of the Insolvency and Bankruptcy Code (Amendment) Act, 2020, Section 32A has been inserted to the code by giving much clarity in regards the assets under attachment.

"A liquidator can proceed with the sale of the assets even if it is under attachment by the respondent, to continue the time-bound process of liquidation under the provisions of the Code," NCLT Kolkata said.

Economic Times Article Link//
https://economictimes.indiatimes.com/news/economy/policy/nclt-allows-liquidator-to-sell-company-stressed-assets-attached-by-agencies/articleshow/77153205.cms?utm_source=ETTopNews&utm_medium=HPTN&utm_campaign=AL1&utm_content=23

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby vijayk » 25 Jul 2020 18:57

https://swarajyamag.com/videos/post-cov ... a-to-india



I think disrupting this will be the next project for CON ITALIAN PARTY and COMMIES

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Mollick.R » 27 Jul 2020 02:40

With renewed focus on US, EU and UK, India looks to reset FTAs, exit fruitless deals
By Deepshikha Sikarwar, ET Bureau Last Updated: Jul 26, 2020, 11:08 PM IST

NEW DELHI: India is eyeing a major reset of its free trade agreements, including exiting those that have brought few tangible benefits to the country and have instead hurt domestic industry, government officials said.

“All options are on the table… There is a view that if any trade agreement has not worked out as expected, we should also look at exiting such a deal,” one official said, adding that a final call on the future strategy for such arrangements would be taken at the highest level.

Most trading arrangements have a clause for a review or exit.

There is renewed focus on trade deals with the US, the European Union and the UK, which are key markets for Indian exporters and are keen to diversify their sourcing.

India could seek a review of some trading agreements including renegotiating tariffs on some items and a tightening of provisions governing country-of-origin certification.

The government has set up four working groups to assess the trade agreements holistically and frame a fresh strategy for them, taking into account the geo-political changes following the Covid-19 outbreak, which will spur investments into the country and boost exports, another official told ET.

The move follows a recent high-level meeting chaired by Prime Minister Narendra Modi.


These inter-ministerial groups that include the finance, commerce & industry and external affairs ministries will chalk out a comprehensive plan.

There has been a growing view among policymakers that FTAs signed by India have not brought the expected tangible benefits and on the contrary, have hurt the country’s manufacturing sector due to liberal rules of origin.

A detailed assessment of FTAs in terms of goods, services and investment flows has been carried out both by the commerce department and the economic division of the finance ministry.


https://economictimes.indiatimes.com/news/economy/foreign-trade/with-renewed-focus-on-us-eu-and-uk-india-looks-to-reset-ftas-exit-fruitless-deals/articleshow/77186728.cms


Better late than never, der aaye durust aaye.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby vijayk » 27 Jul 2020 06:28

https://www.timesnownews.com/business-e ... nue/590043
Apple plans to shift 20% of production capacity from China to India, eying $40 billion export revenue

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 27 Jul 2020 07:27

vijayk wrote:https://www.timesnownews.com/business-economy/companies/article/apple-plans-to-shift-20-of-production-capacity-from-china-to-india-eying-40-billion-export-revenue/590043
Apple plans to shift 20% of production capacity from China to India, eying $40 billion export revenue

I think the datapoint that the total value of Chinese exports from just Apple is $220 billion, is interesting. $40 billion of that from India is a significant share indeed. The PLI scheme seems to have garnered some big names already.
Mollick.R wrote:@Suraj saar, ref to highlighted part of your post. Above news was posted here before.

I was looking for exact product categories or full list of 3000 products that this article & CAIT was referring in their protest. CAIT website is of not much help, (I guess they need more professional website for better PR and information sharing). Anyways finally got part of it from Facebook page of a person associated with CAIT.

All products are mostly low tech , low capital mass consumption times. I guess Bat eater are able to export and capture our market due to infra (Land/SEZ, cheap electricity, water etc etc) as well as dumping export subsidy by their government.

Thanks! Feel free to reach out to them and ask for more information they could provide online somehow . Let's keep out the kind of negative language referring to them out of this thread, though, shall we ?

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Mollick.R » 27 Jul 2020 16:35

Suraj wrote:Thanks! Feel free to reach out to them and ask for more information they could provide online somehow . Let's keep out the kind of negative language referring to them out of this thread, though, shall we ?


Saar emotions are running high against China after seeing human life & employment opportunities getting destroyed due to ChinaVirus19 plus Galwan valley incident also occurred.

Anyways point noted, in future will keep in mind.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby yensoy » 27 Jul 2020 17:01

vijayk wrote:https://www.timesnownews.com/business-economy/companies/article/apple-plans-to-shift-20-of-production-capacity-from-china-to-india-eying-40-billion-export-revenue/590043
Apple plans to shift 20% of production capacity from China to India, eying $40 billion export revenue

Nice, every little bit helps, but let us be very clear that Apple will be importing every single input for their iPhones from overseas, even the little pins to push out the SIM (or are they fully into software SIM?). And being savvy tax planners, they will show that they are importing $39.9 billion worth.

The employment is welcome. The "Made in India" tag is welcome.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Vips » 28 Jul 2020 06:08

India reports best monsoon rainfall in 6 years; kharif sowing soars, promises better GDP.

India has reported the best monsoon rainfall in the last six years which has also led to a better kharif acreage in this season. As of 24th July 2020, India has reported rainfalls at 6% higher than above the long period average (LPA) and has also reported 800 lakh hectors area coverage under kharif crops, which is nearly 75% of the total normal kharif sowing area for the season. This has been 18.5% higher than the previous financial year 2019-20, a CARE Ratings report said on Monday. “Till 24th July 2020, the Kharif acreage has been higher in all major crops when compared with the same period last year,” the report said. As the country continues to face the headwinds of coronavirus pandemic, a better agricultural growth may also support GDP growth.

On an individual crops basis, pulses sowing has been 26% higher than last year, rice acreage has been 17% higher, oilseed sowing has soared by 25% of last year’s levels and cotton sowing has also been higher at 22.5% at 118 lakh hectares. Sugarcane and jute mesta sowing has also shown a nominal increase by 1% and 1.5% respectively. The July and August rainfall are crucial to the sowing of Kharif crops as farmers sow various crops in the season. Other than monsoon rainfall, water reservoir level is also a major contributor to the sowing activities. Apart from healthy monsoon rain, India has also reported higher reservoir levels this year as compared to previous year.

“The progress in the month of August too is critical. A good kharif harvest may be expected this year based on these trends which will provide a lot of support to the growth of GDP which will have to contend with negative growth in several other sectors,” the report said. Out of 36 Indian sub-divisions, nearly 80% have received excess to normal rainfalls during 1st June to 22nd July. 18 sub-divisions have witnessed normal rainfalls and only seven subdivisions have reported deficient rainfall as on 22nd July, 2020. The region which reported excess rainfall also got flooded.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby uskumar » 28 Jul 2020 19:18

Mollick.R wrote:With renewed focus on US, EU and UK, India looks to reset FTAs, exit fruitless deals

I will not be surprised if FTA with Asean will face the axe in next few months. What i noticed during RCEP negotiations what lax attitude from them. It seemed like they want to deliver Indian market to china in return for Chinese investment.They are anyway too disjointed in their response to China's aggression.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Vips » 29 Jul 2020 04:37

Railways freight loading back at year-ago level.

In a positive sign for the economy shrugging off a long period of lockdown and depressed growth due to the Covid-19 pandemic, the total freight loading on Monday was a little higher than the freight loaded a year ago.

The figures are good news for the national transporter, as passenger traffic remains low with people avoiding anything apart from essential
travel and the need for business-related commuting also down. Railway board chairman V K Yadav told reporters that the total freight loading was
3.13 million tonnes (MT) on Monday as compared to 3.12 MTs on July 27, 2019.

Details available on Raildrishti, railway ministry portal on live data, show there was only 6.6% less loading of freight during this month as compared to July 2019. The improved freight movement indicates that supply chains are moving even though movement of foodgrains under the Centre’s welfare schemes may account for part of the traffic.


Exports at 87% of year ago level.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 29 Jul 2020 05:34

Thanks for keeping up with the news on the economic front, Vips.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Vamsee » 30 Jul 2020 22:52

India puts imports of television sets on Restricted List
The Narendra Modi government on Thursday imposed import restrictions on television sets with an aim to cut inbound shipments of non-essential items.

Imports of TV stood at about $1 billion during 2018-19. China ($535 million in 2018-19) is the largest exporter of TV sets in India. It was followed by countries like Vietnam ($327 million), Malaysia ($109 million), Hong Kong ($10.52 million, Korea, Indonesia, Thailand, and Germany.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby darshan » 30 Jul 2020 22:54

All smart TVs can be stopped today on the grounds of national security. They all call back and collect data. ISPs should be ordered to block all calling back server destinations.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 01 Aug 2020 02:20

It was mere weeks ago that forex reserves touched $500 billion, and now it's almost $525 billion:
Forex reserves rise almost $5 billion to new all-time high of $522.6 billion

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Vamsee » 01 Aug 2020 04:36

Apple vendors, Samsung propose Rs 11 trn mobile phone production in India

"In the next five years, mobile phones worth about Rs 9 trillion in the category of above Rs 15,000 per unit are expected to be produced as per the proposals submitted by the companies. Mobile phones worth about Rs 2 trillion are expected to be produced in the sub-Rs 15,000 category," the source said.

Export demand of about Rs 7 trillion is expected to be met from the proposed production capacities.


Meanwhile, around 8-10 companies have filed applications for component manufacturing which include motherboard maker AT&S, Ascent Circuits, Sahasra and Vitesco.

"They are expected to produce components of over Rs 40,000 crore over the period of next five years under the scheme," an industry source said.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 01 Aug 2020 05:16

Rs.9 trillion / lakh crore is quite a large figure indeed. That's $120 billion in cumulative production over that period just of mobile phones. A good start, and I hope the actual figure is higher.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Mollick.R » 02 Aug 2020 00:28

July 2020 GST collection figures are out. Its 87422 Cr.
or say 86% on YoY basis. GST collection figure for July 2019 was 102K cr.
With lockdown in several parts of major cities, large & mid size organized retail trade chains shut in June, Aviation, Hotel, Automobiles sales out of bound , achieving 86% of last year's figure is not bad.

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Mollick.R
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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Mollick.R » 02 Aug 2020 00:31

GST collection fell 14% to Rs 87,422 crore in July: Govt
Updated: Aug 01, 2020 20:12 IST

The Goods and Services Tax (GST) collection in the month of July fell 3.8% at Rs 87,422 crore compared to Rs 90,917 crore collected in the previous month, while the revenue mop up in July this year saw a 14.3% year-on-year decline due to the coronavirus pandemic that has had a devastating impact on the economy.

“The revenues for the last month [June 2020] were higher than the current month. However, it is important to note that during the previous month, a large number of taxpayers also paid taxes pertaining to February, March and April 2020 on account of the relief provided due to Covid-19,” a finance ministry statement said on Saturday. The taxpayers with turnover less than Rs 5 core still enjoy relaxation in filing of returns till September 2020, it added.

Experts said the GST collection, which is a weathervane of economic health, is increasingly improving and the trend is positive.
Pratik Jain, partner and leader, indirect tax at consultancy firm PwC India said, “June and July data reveal that broadly the collections are stabilising between 85-90% of corresponding period last year. This is also corroborated with number of E-way bills being generated on a daily basis, which indicates that supply chain is getting back to normal.”
GST collection was badly hit in the current financial year due to the 68-day nationwide lockdown since March 25 to check the spread of Covid-19. The collection in April 2020 plunged 72% at Rs 32,172 crore compared to the same month last year. It fell 38% in May 2020 at Rs 62,151 crore due to over same month previous year. The year-on-year fall in June this year had come down to 9%.

The gross GST revenue collected in the month of July, 2020 is Rs 87,422 crore of which the central GST (CGST) is Rs 16,147crore, the state GST (SGST) is Rs 21,418 crore and integrated GST (IGST) is Rs 42,592 crore. The cess collection in the month is Rs 7,265 crore, the finance ministry statement said.

“The government has settled Rs 23,320 crore to CGST and Rs 18,838 crore to SGST from IGST as regular settlement. The total revenue earned by Central Government and the State Governments after regular settlement in the month of July,2020 is Rs 39,467 crore for CGST and Rs 40,256 crore for the SGST,” it added.

Jain said, “This augurs well for the government and collections are likely to improve further as lockdown is eased progressively. Industry can perhaps hope for some more GST relief, particularly in form of liquidity support as they navigate through the slowdown.”

“While the overall GST collections for the month is heartening , the collections in many of the major states coming close to last year’s collections indicates that the recovery process has slowly started with the unlockdown process underway in these states,” MS Mani, partner at consultancy firm Deloitte India said.

“The progressive unlockdown steps taken by various states in June are reflected in the improvement in GST collections for July although the figures also include some transactions in respect of earlier months,” Mani added.

Rajat Bose, partner at law firm Shardul Amarchand Mangaldas and Co said, “While the collections in July are less than the collections in June, however, one must keep in mind that collections in June also included collections for the month of March, April and May. Hopefully, this trend should continue in the coming months, especially since festive season has started in the country.”



https://www.hindustantimes.com/india-news/gst-collection-fell-14-to-rs-87-422-crore-in-july-govt/story-UDytToCGQgGkbVJps1zu8J.html

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby uskumar » 02 Aug 2020 12:21

uskumar wrote:I will not be surprised if FTA with Asean will face the axe in next few months.............

It seems I was correct in my prediction.

India reviews continuation of trade pact with Asean

It seems to me India hasn't gained anything political or economic from this FTA and FTA with South Korea. These are pure Mercantile nations who will compromise and bend over backwards for China when threatened militarily.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Mollick.R » 03 Aug 2020 19:16

Suraj wrote:Rs.9 trillion / lakh crore is quite a large figure indeed. That's $120 billion in cumulative production over that period just of mobile phones. A good start, and I hope the actual figure is higher.


@Suraj saar, I think we should have a thred something like "Post Galwan Indian Actions on Economic front Against China" (suggest a better title for the thread).

This thread should have all news items, actions taken/proposed etc by India against China on economic front post Galwan Incident.

In this proposed thread one can get comprehensive information about all such actions/ decisions like App Bans , cancellation of Tenders to Chinese companies etc. Like "Achievement tracking of NDA-3 Modi Govt thread" preferably this thread should also be no or minimum discussion thread.

I'm not sure if i can create a new thread.

If proposal is good to go , please create it (& suggest a better name too).

Suraj
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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Suraj » 03 Aug 2020 20:18

You can create it in the strat forum, as a new only one please. There are existing threads for discussion . I suggest posting content as a timeline.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby SRoy » 03 Aug 2020 20:33

India puts imports of television sets on Restricted List
The Narendra Modi government on Thursday imposed import restrictions on television sets with an aim to cut inbound shipments of non-essential items.

Imports of TV stood at about $1 billion during 2018-19. China ($535 million in 2018-19) is the largest exporter of TV sets in India. It was followed by countries like Vietnam ($327 million), Malaysia ($109 million), Hong Kong ($10.52 million, Korea, Indonesia, Thailand, and Germany.


There nothing smart about a "smart TV".
It is a pretty low tech stuff by contemporary state of electronics industry.

We need real techies in the govt. to handle these. They can very well ask some of PSU to manufacture smart TVs.
And then follow up with buying these for govt. and PSU offices.

There are a handful of local companies that do manufacture.
What we miss here is fit and finish, after sales support, product range, availability on e-commerce platforms.
Way to go, but doable in couple of years (get rid of imports).

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby Mollick.R » 03 Aug 2020 21:07

Building Atmanirbhar Bharat: Licences likely for furniture, toys and sports gear imports
By Kirtika Suneja & Gulveen Aulakh, ET Bureau Last Updated: Aug 03, 2020, 08:12 AM IST

NEW DELHI: Imports of furniture, toys and sports goods are likely to require licences soon, a measure the government hopes will reduce imports and encourage domestic production, said people with knowledge of the matter. India has already imposed licensing requirements for tyres and colour TV imports, a big percentage of which comes from China.

The government may also raise import duties for certain products to their bound rates to make imports costlier. Bound tariffs are the ceiling rates specified at the WTO beyond which countries cannot raise duties.
.
.
.
...............
Consultations on with industry
These include standard and special furniture, air-conditioners, leather, footwear, agro-chemicals, ready-to-eat food, steel, aluminium, copper, textiles, electric vehicles, auto components, TV set-top boxes, CCTVs, sports goods, ethanol & bio-fuels, and toys.
.
...................

Industry backs move
Industry has sought transition time and the issuance of ad hoc licences for tyres and TVs to facilitate traders, as goods worth several crores of rupees are in transit or advance payments have been made or orders have been placed. Televisions worth Rs 600-700 crore are imported into India every month,
Industry sources also added that imports worth nearly $400 million were coming from Vietnam, followed by over $300 million from China, prompting another look at the free trade agreement India has with the Southeast Asian nation and whether it's being misused.


https://economictimes.indiatimes.com/news/economy/foreign-trade/building-atmanirbhar-bharat-licences-likely-for-furniture-toys-and-sports-gear-imports/articleshow/77324296.cms

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby hnair » 03 Aug 2020 21:11

SRoy wrote:We need real techies in the govt. to handle these. They can very well ask some of PSU to manufacture smart TVs.
And then follow up with buying these for govt. and PSU offices.


Concur on this.

I was peripherally (Cant say anything more for fear of being called Auric Goldfinger by many nowadays in Kerala :lol: ) involved in a project for assembling laptops in Trivandrum under a new brand called Coconics *.

What was surprising was the alacrity shown by Intel, a minority share holder via its Acceleron and USTechnologies (a Trivandrum based IT major and the majority shareholder in this venture), to join hands with state government's KELTRON. The reason for the interest was simple: Kerala Govt promised they will absorb most of the production for its departments and for all government run schools of Kerala for next five years, even if prices are higher than cheeni-assembled regular brands. The cheeni laptop assembly is ultra-cheap due to their scale, so much that any new brand assembling anywhere outside the cheeni-PLA eco-system will face a high-entry barrier of dirt cheap pricing and nano-margins. But even there, the risk for the private players was minimized a lot by the state govt buyback

As usual, Keltron was the drag in this partnership trio - they were told by Intel and other industry folks to stay off anything technical, as they have zero domain expertise, but will still get 26% due to government angle and the defunct facility they provided at a good location. But still the lazy-assed KELTRON employee union made a fuss, until Intel said "dont waste our time" to Kerala government as an ultimatum. As is the wont, when commies are ruling, they squish their own unions without fuss if a project under their watch is getting affected and same happened here. The project is on and the first batch was supposed to be out etc

But if GoI goes for this model of buybacks for reducing risks, I am sure we can easily build up Indian globally recognized brands of at-least two each in laptop brands, competitive TV manufacturers, white goods etc. The Coconics saga was before Xi decided to whip out his mijjile and disgust the world, if that happened today, more western tech brands would line up to partner, if GoI is willing.

___________
* I had suggested Cacaphonix, to honor a certain loutish KELTRON union leader, surprisingly a large number of babudom found that funny as there seem to be some fan following for Goscinny and Underzo!
Last edited by hnair on 03 Aug 2020 21:50, edited 1 time in total.
Reason: Edited to correct author of Asterix!

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby SRoy » 03 Aug 2020 21:47

^^
Exactly, same with laptops as you have pointed out.

GoI can even sign deals with some of the local/Indian manufacturers. Way to do this is to specify quality benchmarks, define baseline feature sets and ask for certification requirements. I'm confident even these small players will commit to additional spending if volume is ensured. In turn we ordinary people will get world class products out of this.

Otherwise, it is difficult to beat the Chinese.

I had recent bad experience with laptops. My workplace handles embedded software for IoT Edge devices. We prefer to have workstations that runs same OS, builds tools with peripheral/sensor connectivity options as our Edge devices. So, that''s usually Linux.

When we tried to scout for laptops that the vendors can provide us with required customization, we found that only Lenovo was willing to provide us the same within our acceptable price point.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby nam » 03 Aug 2020 22:03

hnair wrote:
What was surprising was the alacrity shown by Intel, a minority share holder via its Acceleron and USTechnologies (a Trivandrum based IT major and the majority shareholder in this venture), to join hands with state government's KELTRON. The reason for the interest was simple: Kerala Govt promised they will absorb most of the production for its departments and for all government run schools of Kerala for next five years, even if prices are higher than cheeni-assembled regular brands. The cheeni laptop assembly is ultra-cheap due to their scale, so much that any new brand assembling anywhere outside the cheeni-PLA eco-system will face a high-entry barrier of dirt cheap pricing and nano-margins. But even there, the risk for the private players was minimized a lot by the state govt buyback


I suggested this one of the earlier pages. All GoI needs to do is announce a order for 2-3B (or more) worth of tablets, that it intents to give to school kids. The rule being it should be produced by a Indian company which can do the maximum percentage of component production in India. As simple as that.

Even a foreign company will be fine, as long as they are producing components locally.

Demand is what will drive local production. Large scale order is what is required.
Last edited by nam on 03 Aug 2020 22:07, edited 1 time in total.

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Re: Indian Economy News & Discussion - Nov 27 2017

Postby nandakumar » 03 Aug 2020 22:05

SRoy wrote:^^
Exactly, same with laptops as you have pointed out.

GoI can even sign deals with some of the local/Indian manufacturers. Way to do this is to specify quality benchmarks, define baseline feature sets and ask for certification requirements. I'm confident even these small players will commit to additional spending if volume is ensured. In turn we ordinary people will get world class products out of this.

Otherwise, it is difficult to beat the Chinese.

I had recent bad experience with laptops. My workplace handles embedded software for IoT Edge devices. We prefer to have workstations that runs same OS, builds tools with peripheral/sensor connectivity options as our Edge devices. So, that''s usually Linux.

When we tried to scout for laptops that the vendors can provide us with required customization, we found that only Lenovo was willing to provide us the same within our acceptable price point.

And Lenovo was a product that IBM developed. Couldn't make money on it despite the deep pockets they had. Sold it off in frustration. The Chinese bought it. And ow they have a decent market share in PCs.


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