Indian Economy-News & Updates

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Spanish train maker plans manufacturing unit in India

Spain’s Construcciones y Auxiliar de Ferrocarriles (CAF) plans to set up a manufacturing unit in India to tap the increasing demand for railway vehicles and equipment.

“There is a tremendous opportunity in India. Also, I think it can be the hub for the entire Asia. Our intention is to come up with a manufacturing plant in India. It is an important market for us and we need to become Indian to cater to the market,” said Juan Jose Garcia, international division director of CAF. The world’s fourth-largest train maker had formed a wholly owned subsidiary, CAF India Pvt Ltd, in 2010 to look after its operations in the country.

Garcia said the Spanish company had a “definite plan” for its India unit, but refused to share details. “I cannot comment on the exact geography, time or investment right now, as it is confidential. We are a listed company in Spain, I cannot share all the details. But by next year, we will be able to give a clear picture,” he said.
“Spain is one of the few countries where we have three different gauges. So, we have technologies to support both standard gauge cars like the ones in Delhi Metro or broad gauge cars as used in the Indian Railways’ Kolkata Metro,” he added.

The company recently bagged a Rs 780-crore order to manufacture 14 rakes (each rake consists of six coaches) for Kolkata Metro Railway Corporation Ltd (KMRCL). It is also bidding for all upcoming metro projects in the country.

“For the KMRCL order, we have started production of few trains in Spain. But we would like to make some of these Kolkata Metro rakes in India, too,” Vishal Khetarpaul, director, CAF India, said. KMRCL is expected to receive the 14 rakes from CAF by 2014-end.

“We are looking after the maintenance of the Delhi Airport link of DMRC (Delhi Metro Rail Corporation). We are bidding for projects across the country. In case of Jaipur Metro, we have qualified for bidding. For L&T Hyderabad Metro, we have made the financial offer for 171 cars. We have submitted the bids for Calcutta North South, which is also in the final stage of evaluation. Hopefully, we will manage to bag all the orders. The plan is to localise manufacturing in coming years,” he said.

 

[ramu]

$100 bn Delhi-Mumbai Industrial Corridor: FinMin OK's 26% Japan stake

In order to give a big thrust to manufacturing sector, the Finance Ministry has given green signal to the DIPP's proposal to give 26 per cent stake to the Japanese government in the USD 100-billion Delhi-Mumbai Industrial Corridor project.

"We have received comments from the Finance Ministry and they have supported the proposal. Soon we will move the final note for Cabinet Committee on Economic Affairs approval. We had moved the draft cabinet note in December 2011 itself," a commerce and industry ministry official said.

All the other concerned ministries including the labour ministry have already supported the proposal of the Department of Industrial Policy and Promotion (DIPP).

As per the draft cabinet note on the DMIC Development Corporation (DMICDC) re-structuring, 49 per cent stake will be held by the government, 26 per cent by the Japanese government and 25 per cent with state-run institutions - Life Insurance Corporation, HUDCO and India Infrastructure Finance Company.

The DMIC Development Corporation (DMICDC) is a special purpose vehicle for the implementation of the Delhi-Mumbai Industrial Corridor (DMIC) project. It will run the trust fund into which the government, multilateral agencies and Japanese entities will invest to finance the project.

The official said timely restructuring would help in fast-tracking the ambitious project.

The manufacturing sector, which constitutes over 75 per cent of the index of IIP, grew barely 0.1 per cent in April, as against 5.7 per cent in April 2011.

The Corporation will develop industrial enclaves along the Delhi-Mumbai rail corridor encompassing seven states - Delhi, Uttar Pradesh, Haryana, Rajasthan, Gujarat, Maharashtra and Madhya Pradesh.

The Cabinet had approved equity restructuring of DMICDC and an expenditure of Rs 18,500 crore on development of infrastructure in September 2011.

This plan will make DMICDC a deemed government company. Japan, which has expressed keen interest in the DMIC project, intends to invest USD 4.5 billion in the project, which will cover 1,483 km between Delhi and Mumbai, over the next five years.

The DMIC project, which was conceptualised in 2006, is being developed in collaboration with Japan as a manufacturing and trading hub, though Japanese participation did not involve equity holding till now.

The project aims to create globally competitive environment and latest infrastructure to activate local commerce, enhance foreign investment, create employment opportunities, enhance exports and attain sustainable development.

According to experts, the progress and implementation of projects would depend upon the availability of land.

$100 bn Delhi-Mumbai Industrial Corridor: FinMin OK's 26% Japan stake - Indian Express

 

[StingRoy]

Business Line : Markets / Stock Markets : Indian equity market Niftier than peers in Jan-June

BL RESEARCH BUREAU:
Despite all the bad news on economy, Indian stock indices have performed better than global peers such as the Dow Jones, S&P 500, Nasdaq, FTSE 100, Dax and Nikkei in the first half of 2012.

While the Sensex rose 12.8 per cent in the January-June 2012 period, the Dow Jones gained 5.4 per cent, the S&P 500 8.3 per cent, the Nasdaq 12.7 per cent, the DAX 8.8 per cent, and the Nikkei 6.5 per cent.

The recent sharp depreciation of the rupee against the US dollar had raised fears that the Indian market will become unattractive to foreign investors.

However, during the first half of this calendar, the Sensex returns in dollar terms at 8 per cent bettered the Dow Jones. FIIs pumped $8.5 billion into Indian stocks in the first six months of the year.
....

 

[Zeeshan360]

^^ This ..
I have been barking for long ..

Even though we are performing bad compared to ourselves last year but we are performing much better than the other developming countries

Russian and Brazilian currency has fallen even more than the Indian rupee .. No one takes this into consideration
Everyone is busy trolling even though rupee falls by a cent .. Lol

 

[Splurgenxs]

^^That is no reason for us to slack off ....China is better off isn't it? Reason enough fr me.

However, during the first half of this calendar, the Sensex returns in dollar terms at 8 per cent bettered the Dow Jones. FIIs pumped $8.5 billion into Indian stocks in the first six months of the year

Our $$ outflows are still higher than Inflows ,hence the Depreciation..Blame Crude, or our Trade deficits we need to seriously limit our spending on unnecessary stuff. and take strong Austerity measures .

 

[laman12345]

Rainfall was either scanty or deficient in 82 per cent of Indian land mass.

“The situation is gloomy.

June 30

The Indian Meteorological Department said on Friday that there was a hiatus in monsoon's advancement last week, leading to further downfall in rain. The shortage was 27 per cent for the country and 67 per cent for north west India. For central and southern India, the deficiency was 38 and 28 per cent respectively.

here will not be much action next week and monsoon may revive in central India after two weeks. At the moment, dry westerlies are driving away the moisture,” said the scientist.

Kharif crop causes furrow in govt brow

India has highest debt to GDP among BRIC nations

Jun 30, 2012

Even as the economic growth is slowing down considerably, the country is saddled with another problem—high debt to GDP (gross domestic product) compared to emerging economy peers. India has the highest debt to GDP ratio among BRIC (Brazil, Russia, India, China) nations. India's debt to GDP ratio stands at 68%.

Spain, which is facing the risk of leaving the Euro zone, is overburdened with debt to GDP ratio touching 65%.

 

[Matrixx]

^^^^ Yes...the situation is very gloomy....One Chinese company investing $2B in India....Coca Cola investing $5B and IKEA is investing $1B in India....still situation is very gloomy...India is doomed

 

[Abingdonboy]

Rainfall was either scanty or deficient in 82 per cent of Indian land mass.

“The situation is gloomy.

June 30

The Indian Meteorological Department said on Friday that there was a hiatus in monsoon's advancement last week, leading to further downfall in rain. The shortage was 27 per cent for the country and 67 per cent for north west India. For central and southern India, the deficiency was 38 and 28 per cent respectively.

here will not be much action next week and monsoon may revive in central India after two weeks. At the moment, dry westerlies are driving away the moisture,” said the scientist.

Kharif crop causes furrow in govt brow

India has highest debt to GDP among BRIC nations

Jun 30, 2012

Even as the economic growth is slowing down considerably, the country is saddled with another problem—high debt to GDP (gross domestic product) compared to emerging economy peers. India has the highest debt to GDP ratio among BRIC (Brazil, Russia, India, China) nations. India's debt to GDP ratio stands at 68%.

Spain, which is facing the risk of leaving the Euro zone, is overburdened with debt to GDP ratio touching 65%.

And??? The issue is that these, so called, PIIGS have hive dept to GDP ratios but this is alarming because in all cases they have either stopped growing or are in recession. India still remains the second fastest growing large economy on EARTH with foreign reserves easily large enough to back up all debt so the problem in India cannot-despite however hard you try by posting numoirus articles on the subject, be compared to Europe. India also has one of the smallest external dept to GDP ratios on the planet of around 2% and retains its BBB+ credit rating.

 

[Koovie]

Rainfall was either scanty or deficient in 82 per cent of Indian land mass.

“The situation is gloomy.

June 30

The Indian Meteorological Department said on Friday that there was a hiatus in monsoon's advancement last week, leading to further downfall in rain. The shortage was 27 per cent for the country and 67 per cent for north west India. For central and southern India, the deficiency was 38 and 28 per cent respectively.

here will not be much action next week and monsoon may revive in central India after two weeks. At the moment, dry westerlies are driving away the moisture,” said the scientist.

Kharif crop causes furrow in govt brow

India has highest debt to GDP among BRIC nations

Jun 30, 2012

Even as the economic growth is slowing down considerably, the country is saddled with another problem—high debt to GDP (gross domestic product) compared to emerging economy peers. India has the highest debt to GDP ratio among BRIC (Brazil, Russia, India, China) nations. India's debt to GDP ratio stands at 68%.

Spain, which is facing the risk of leaving the Euro zone, is overburdened with debt to GDP ratio touching 65%.

How many times do you have to post this?

Whenever I read your comments I usally have this song playing in my head

 

[laman12345]

India's external debt rises to $345.8 billion

30-06-2012

The country's external debt rose by 13 per cent to $345.8 billion in the 2011-12 fiscal on account of higher commercial borrowings and trade credit.At the end of March 2011, the external debt stood at $305.9 billion, the Reserve Bank said in a statement on Friday.

"India's external debt, as at end-March 2012, was placed at $345.8 billion recording an increase of $39.9 billion or 13.0 per cent over the end-March 2011 level.

http://www.4-traders.com/news/India-s-External-Debt-$345-8-Billion-as-of-March-31-Up-13-0-on-Year--14393128/

 

[Zeeshan360]

Rain is quite normal in Maharashtra

It seems North India is getting low rainfall

 

[cloud_9]

India's June factory activity ticks up, hiring expands: HSBC PMI

BANGALORE: Indian factories in June stepped up production and hired workers at the fastest rate in more than two years, but sagging demand abroad took a toll on growth in new export orders, a survey showed on Monday.

The HSBC manufacturing Purchasing Managers' Index (PMI) rose to 55.0 in June, a four-month high, from 54.8 in May. It has kept above the 50 mark that divides growth and contraction for more than three years.

Still, the survey raised some concerns. High prices continue to weigh on manufacturers, with both input and output costs rising sharply from May. That underscored expectations the central bank is unlikely to cut key interest rates soon.

Asia's third-largest economy is grappling with slowing economic growth but high inflation at a time when the health of the global economy is deteriorating. A slump in factory activity in China and Japan deepened in June.

"Activity in the manufacturing sector kept up the pace in June with output and employment expanding at a faster pace," said Leif Eskesen, economist at HSBC.

The employment sub-index was at 52.4 in June, the highest level since May 2010.

While the PMI suggested domestic demand was holding up, signs from abroad looked more ominous.

New export orders grew at their slowest pace since November 2011, with demand weakening in top trading partners Europe and the United States.

"New order growth decelerated slightly led by export orders while stock levels rose, suggesting a slight moderation in output growth going ahead," HSBC's Eskesen said.

Meagre first quarter growth and low consumer confidence in the United States, along with equally dismal sentiment data coming out of the euro zone in the past week, do not bode well for India's factories in the months ahead.

Hindalco Industries planning to raise Rs 9,000 crore for Odisha greenfield project

MUMBAI: Hindalco Industries, AdityaBirla Group's flagship firm, is on an aggressive drive to raise funds for its biggest greenfield project in Odisha. The country's largest non-ferrous metals producer plans to tap about Rs 9,000 crore for the project, which is being re-configured mirroring the ambitions of its peer, Anil Agarwal's Vedanta Aluminium.
"We are planning to raise up to Rs 9,000 crore for the Odisha project, but are yet to decide on the route, whether it will be a bank term borrowing or any other instrument," said one of the company officials directly involved in the exercise.

Hindalco senior executives are scheduled to announce their plans at an investor meet scheduled later this week.

If completed, this proposed exercise would also make the current fiscal year one of the most hectic fund raising year for Hindalco as the company completed a Rs 1,500-crore bond issue last week, in addition to raising Rs 3,000 crore through a similar instrument in April.

The fund-raising plan may affirm talk that Hindalco has revamped the project size to compete with Vedanta Aluminium, which already operates a 1 million tonne alumina refinery and a 0.5 mt smelter in Odisha and has recently made efforts to acquire a bauxite mine in the state.

 

[laman12345]

India New export orders grew at slowest pace since November 2011


2/7/2012

New export orders grew at their slowest pace since November 2011, with demand weakening in top trading partners Europe and the United States. Still, the survey raised some concerns. High prices continue to weigh on manufacturers, with both input and output costs rising sharply from May.

Only last Wednesday, India's biggest commercial vehicle maker, Tata Motors (TAMO.NS), said it would halt production at one of its factories for three days last week in yet another sign of slowing growth.

 

[Android]

Rupee gains for 3rd day; foreign banks sell dollars

MUMBAI:Rupee strengthened for the third straight session on Monday on the back of dollar sales by investors, following some clarity on certain taxation rules, as also by others looking to bid at the auction for government debt limits.

Investors are growing more hopeful of meaningful policy reforms at home after PM Manmohan Singh, a former central bank governor, took charge of the finance ministry.


The rupee settled at 55.43/44 as per the State Bank of India closing levels, versus 55.6050/6150 at previous close.


"The key underlying assumptions include the initiation of some domestic policy measures to revive growth, no further worsening of our expectation of growth and inflation and an easing of current account deficit due to softening of crude and commodity prices," the analysts at CRISIL wrote.

"Some improvement in the euro zone situation in the first quarter of 2013 is also accounted for, which will stimulate return of capital flows into Indian markets," the note said.

Indian factories in June stepped up production and hired workers at the fastest rate in more than two years, but sagging demand abroad took a toll on growth in new export orders, a survey showed on Monday.

In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange, the United Stock Exchange and the MCX-SX all ended at 55.6850. The total volume was at $4.5 billion.

Rupee gains for 3rd day; foreign banks sell dollars - The Times of India

 

[Matrixx]

Crisil sees rupee regaining 50 by March - The Times of India