Indian Economy-News & Updates

[IndoCarib]

India Sept industrial production likely rose 2.8%

India's industrial production likely grew at a steady but slow annual pace in September, lifted by infrastructure output, in what is likely to be further evidence of a sluggish economy, a Reuters poll showed.

The index of industrial production (IIP), which measures the output at factories, mines and utilities, rose an annual 2.8 percent in September, the fastest since February, according to a survey of 25 economists.

That would be only slightly better than 2.7 percent in August, less than a third of the rates of over 9 percent clocked in 2010 and well off the double-digit growth seen during the boom times before the global financial crisis hit in 2008.

http://www.moneycontrol.com/news/economy/india-sept-industrial-production-likely-rose-28_780089.html

 

[IndoCarib]

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October car sales up 23.1 percent

NEW DELHI, Nov 9 (Reuters) - Car sales in India grew at their fastest pace in 22 months in October from a low base a year ago, helped by festive season demand that offset high ownership costs, but the industry remains cautious about the future.

UPDATE 1-India car sales growth at 22-month high, auto body cautious | Reuters

 

[laman12345]

India Sept industrial production likely rose 2.8%
[/B]

2.8% too bad.

China almost 10%

 

[kurup]

2.8% too bad.

China almost 10%

Sorry ........We don't give a $hit

 

[WS-10 Engine]

2.8% too bad.

China almost 10%

I'm suspicious about India's 2.8% figure.
I think it could be close to 0%. The numbers just don't add up.

We are definitely growing fast, it's wonderful we are growing 9.6%.
Wow really fast.
Our economy is DEFINITELY recovering from slight weakness earlier in the year.
But the Chinese economy is so dynamic and extremely resilient.

 

[Abingdonboy]

I'm suspicious about India's 2.8% figure.
I think it could be close to 0%. The numbers just don't add up.

We are definitely growing fast, it's wonderful we are growing 9.6%.
Wow really fast.
Our economy is DEFINITELY recovering from slight weakness earlier in the year.
But the Chinese economy is so dynamic and extremely resilient.

So India's figure is off but China's (who is known to fudge such figures) is 100% accurate! What an attitude!

 

[arp2041]

So India's figure is off but China's (who is known to fudge such figures) is 100% accurate! What an attitude!

abing don't respond to them, laman, kkacer, ws-10 are all one person with different account coming here only for $#!tting. some time he responds to his own post by another account

 

[laman12345]

abing don't respond to them, laman, kkacer, ws-10 are all one person with different account coming here only for $#!tting. some time he responds to his own post by another account

Are u dreaming, Ws-10 and Kkacer not me, I am from HK

We just tell u the real picture of Big Mouth India, wake up

 

[IndoUS]

abing don't respond to them, laman, kkacer, ws-10 are all one person with different account coming here only for $#!tting. some time he responds to his own post by another account

Wonder if the Chinese Government knows about it, it would be crime having three different account and getting paid the amount of three people.

 

[luckych]

Nokia to invest Rs 250 crore more in Chennai plant

Nokia is investing an additional Rs 250 crore in its largest mobile phone production facility in Chennai, indicating that the company is betting big on this plant even as it is cutting about 10,000 jobs globally. Company executives said that the global jobs cull will not impact its Chennai facility.

The Finnish cellphone maker's total cumulative investment in the Chennai plant will exceed $330 million (about Rs 1,800 crore) after the latest funds infusion, said a senior executive aware of the matter.

Nokia's plans to step up investments at its Chennai factory come on the heels of a recent global decision to shift core manufacturing lines to Asian factories where bulk of its component vendors are based.

The decision to migrate core manufacturing from Europe to Asia is also expected to help cut costs and enhance the company's competitive edge in growth markets.

"The company will invest Rs 250 crore in the immediate term to expand capacities at the Chennai plant as per the business requirements," said a Nokia India spokesman, adding that there would be no impact on employees working at the factory.

Regardless of the global headcount reduction plans, "direct staff-count in the Chennai factory remains at 9,000," said the company spokesman.

Nokia to invest Rs 250 crore more in Chennai plant - Economic Times

 

[kurup]

India-Brazil trade growing fast

New Delhi : Trade between India and Brazil, part of the BRICS group of the world's emerging economies, is growing at an amazing 35 percent per annum despite an economic slowdown in both the countries and the physical distance between them, Brazil's ambassador to India has said.


Implementation of an air services agreement between the two is expected to bridge that distance and give a shot to the trade dynamism, a seminar here was told.

"There is a dynamism in trade that reflects the potentialities of both the countries," Carloa Duarte said at a seminar here Thursday on doing business with Brazil organised by the Indo-Brazil Chamber of Commerce along with state-run Federation of Indian Export Organisations (FIEO).

The volume of bilateral trade crossed $10 billion in 2011-12, a 34 percent increase over the previous year. The balance is tilted in India's favour, Deepak Bhojwani, a consultant on Latin America and a former Indian consul general in Sao Paulo, noted.

During Brazilian President Dilma Rousseff's visit to India earlier this year, a bilateral trade target of $15 billion by 2015 was set after her talks with Prime Minister Manmohan Singh.

"Brazil and India have come together in a gigantic embrace," said Bhojwani in a reference to the largest nation in Latin America, which along with India, China, Russia and South Africa, is a member of the BRICS group.

The Indian consciousness, however, is still to grasp Brazil owing mainly to the enormous physical distance between the two, Bhojwani added.

"To remedy distance issues, an air services agreement between the two countries is being rapidly implemented," he said.

According to the agreement, signed last year, India and Brazil would be able to designate as many airlines as they wish to operate between the two countries.

"The two countries share many similarities, great commonalities and the common aspirations of becoming more important on the international scene," Duarte said, adding Brazil is rich in natural resources and many offshore oil discoveries have recently been made.

Brazilian majors are already in collaboration with Indian firms, like Reliance with Brazilian oil company Petrobras and Tata with Brazilian firm Marco Polo. Various Brazilian companies, like electricals company WEG and Stefanini in the IT sector, have invested in India.

The bilateral trade is weighted in favour of primary products with crude from Brazil making up almost half the trade volume. In turn, diesel is a major Brazilian import from India.

Indian exports to Brazil are of the value addition variety. "Given the current trade composition there is a big scope for diversifying trade and adding aggregate value to the trade," Duarte said.

He also invited Indian companies to take advantage of the investment opportunities opened up in Brazil, particularly in the infrastructure, mining, auto, oil and gas and chemicals sectors.

Duarte said that under Brazil's Growth Acceleration Programme investment worth upwards of $500 billion is envisaged up to 2014 and Indian companies could put in their bids.

Indian Defence News - India-Brazil trade growing fast

 

[cirr]

Slump in exports widens trade deficit with China

Ananth Krishnan

October figures have underscored the recent troubles in a once-blossoming trade relationship

A steep decline in Indian exports to China in October has widened the trade imbalance between both countries to $23 billion according to trade figures released on Saturday, with bilateral trade in 2012 set to fall below last year’s record figure.

October’s trade figures have underscored the recent troubles in the trade relationship, which has, in recent years, emerged as the biggest positive in bilateral ties.

While officials say Indian demand for sourcing in China is still strong, a sharp fall in iron ore exports and continuing uncertainties in the power and telecom sectors — where the imports of Chinese equipment have emerged as a key driver of trade — have left an uncertain future for the trade relationship, and cast doubt on whether a $100 billion target set for 2015 will be met.

Iron ore

Officials attributed the decline to a close to 50 per cent fall in Chinese purchases of iron ore, the biggest Indian export to China. Saturday’s trade figures, officials said, underscored the need for both countries to find a replacement for ores as a new driver of trade. One reason for the fall in exports is an oversupply of stock in China and a slowdown in the steel sector here. But with mining bans in India and increasing domestic demand, exports are unlikely to recover fully.

India’s exports to China after ten months of this year amounted to $16.34 billion, a 13.3 per cent decline from the same period last year, according to figures released on Saturday by the Chinese General Administration of Customs (GAC). Overall bilateral trade reached $55.68 billion as of October, down 8.1 per cent from last year.

While trade figures usually record an increase in the last two months of the year, overall trade is set to fall below the record $73.9 billion figure of last year, when China became India’s biggest trading partner.

Chinese exports to India have also fallen this year, down 5.7 per cent after 10 months this year. Indian purchases of power and telecom equipment have been the biggest component of Chinese exports, but troubles in both sectors have seen a slump in trade. Officials said the falling rupee, which discouraged Indian companies from entering into debt arrangements to fund purchases, was another reason behind the slump.

According to country-wise trade data released by the GAC, the 8.1 per cent decline in trade with India was the second-lowest figure recorded between China and all of its major trading partners. Only trade with Italy fared worse, falling 19.9 per cent.

China’s export data to other countries indicated a strong recovery in the domestic export sector, with overall exports rising 11.6 per cent in October, up from 9.9 per cent in the previous month.

Trade surplus

China’s trade surplus in October grew to the highest in almost four years, in another indication — following this week’s positive factory data — of signs of the start of a turnaround in the Chinese economy, officials said.

“Signs of stabilisation in the economy were getting more obvious in October,” Zhang Ping, the head of the National Development and Reform Commission (NDRC), the top planning body, told reporters in a briefing.

“We are fully confident that we can achieve the economic growth target for this year,” he said.

Commerce Minister Chen Deming struck a more cautious note, telling reporters China was unlikely to meet its annual target of 10 per cent growth in foreign trade. Foreign trade volume had grown 6.3 per cent in the first 10 months. “The trade situation will be relatively grim in the next few months,” Mr. Chen said, “and there will be many difficulties next year”.

Keywords: China exports, trade deficit, slum in exports, National Development and Reform Commission, bilateral trade

The Hindu : Business / Industry : Slump in exports widens trade deficit with China

 

[shuttler]

Gold Imports by India Seen Climbing First Time in Six Quarters

By Swansy Afonso on October 19, 2012

businessweek

Gold imports by India, the world’s largest buyer, are set to climb for the first time in six quarters as a decline in domestic bullion prices stokes jewelry and investment demand ahead of major festivals.

Overseas purchases may jump to as much as 200 metric tons this quarter, said Bachhraj Bamalwa, chairman of the All India Gems & Jewellery Trade Federation. That compares with the 157 tons in the fourth quarter of 2011, according to World Gold Council data. Purchases in the quarter ended September probably fell to as low as 170 tons from 205 tons a year earlier, Bamalwa said. The council is yet to release data for the third quarter.

A rebound in Indian imports may help sustain an 11 percent rally in global prices, headed for a 12th consecutive year of gains. Bullion in India has fallen about 3 percent since climbing to a record last month after the rupee posted the biggest monthly gain against the dollar since January.

“The appreciation in the rupee has caused the gold price to correct from the record levels and this correction is seen as an opportunity by many to get into gold,” said Chirag Mehta, a fund manager at Quantum Asset Management Co. “With the festival season and marriage season starting now, demand will gain further momentum.”

Spot gold fell 0.2 percent to $1,737.65 an ounce at 8:14 a.m. in Mumbai. The contract for delivery in December rose 0.8 percent to 31,375 rupees ($585) per 10 grams on the Multi Commodity Exchange of India Ltd. yesterday. The rupee rallied 5.1 percent in September, data compiled by Bloomberg show.

‘Latent Demand’
Demand has picked up in the last 10 to 15 days and buying may be better this festival season than a year earlier, Bamalwa said. “In the last three to four months, there was practically no demand for gold because of the high prices. There is a lot of latent demand, and we expect this festive season to be better.”

Imports plunged 42 percent to 340 tons in the first half of this year as an increase in import tax and a strike by jewelers hurt demand, according to the World Gold Council. Purchases may decline for the first time in three years to 600 tons this year from a record of 969 tons in 2011, Bamalwa said.

“India should be a better buyer over the next two weeks from a seasonal perspective, but this remains highly contingent on the behavior of the rupee gold price,” Edel Tully, an analyst at UBS AG in London, said in a report yesterday. “Indian imports are already 40 percent less than they were last year, and we understand inventories are generally light. Therefore, if the rupee behaves, fresh demand will also prompt restocking.”

Buying gold is considered auspicious during the religious festivals in India. The festival season starts this year with Dussehra on Oct. 24 and ends in November with Diwali, which is followed by the traditional wedding season.

 

[ramu]

The amount of Gold in the hands of Indian women and men is often mistaken as consumption and rarely looked at as an investment. If in the current account deficit, we subtract the Gold we import, we are looking at a much better credit situation. All the Gold we have in the hands of people is not consumed but is saved for generations as assets. The sooner we realize this, the better we can make use of this asset. Govt. should encourage banking/ loans against gold and tap the inert gold investment to drive a positive business cycle.

 

[laman12345]

India Sept industrial production is -0.4%