Indian Economy-News & Updates

[Samudra Manthan]

https://twitter.com/x/status/653832709274337280

 

[kurup]

https://twitter.com/x/status/653832709274337280

If we can keep up with this % change , we can overtake both France and Japan by this year ....

 

[Ragnar]

https://twitter.com/x/status/656047216805580801

 

[Echo_419]

https://twitter.com/x/status/656047216805580801

China is a very critical partner in Make in India

 

[Samudra Manthan]

 

[Ragnar]

Thekkady, Kerala wins PATA CEO Challenge 2015 top destination award | NetIndian

Thekkady, the iconic attraction in Kerala that is popular with tourists from the world over for its jaw-dropping landscape splattered with rolling hills, dense forests and spice plantations, has been named as one of the two winners of the inaugural $ 1 million Pacific Asia Travel Association (PATA) CEO Challenge 2015 .

Thekkady won the award along with Albay in the Philippines, a press release from PATA said.

The destination in 'God's Own Country', which is home to the Periyar Wildlife Sanctuary, bagged the Top Destination award in the second and third-tier cities category, the only category for cities.

Albay, Philippines has been awarded the Top Destination Award in the category of Regions/States/Provinces.

The release said the two winning entries would work with PATA CEO Challenge 2015 partner TripAdvisor to develop and create digital marketing campaigns to showcase their destination to a global audience, valued at $500,000 each.

The awards will be presented at the PATA Aligned Advocacy Dinner in London on November 2 in the presence of UN World Tourism Organisation Secretary General Taleb Rifai, as well as other high-level dignitaries and senior executives from TripAdvisor.

“It was difficult to choose only two winners, as we received some excellent submissions from destinations both near and far. All the submissions had unique stories that every traveller should get to know and experience,” said PATA CEO Mario Hardy. “The two winning submissions had the most authentic, culturally diverse and innovative offerings but needed the most assistance in helping promote these assets.”

A dedicated team at TripAdvisor will work with both winners on creating marketing campaigns designed to ensure that they are effectively utilising the digital environment to encourage travellers to visit their destination. They will also benefit from TripAdvisor’s wealth of knowledge, experience and proven global digital penetration.

The company will also support the winners by helping small and local hospitality businesses to get listed on TripAdvisor.

Martin Verdon-Roe, VP Global Display Sales, TripAdvisor said, “As the world’s largest travel site, we take great pride in promoting wonderful travel destinations to our global travel community. Working with PATA on the PATA CEO Challenge, we are very pleased to be supporting the two winning destinations, Albay, Philippines and Thekkady, Kerala, India, who both have fantastic tourism offerings that we will now work together on to showcase their story to the world.”

The two winners will also receive other benefits including a complimentary pass to the PATA Annual Summit 2016 in Guam, USA on May 18-21, free stand space at PATA Travel Mart 2016 in Jakarta, Indonesia from September 7-9 and extensive international brand exposure through a variety of well-established PATA communications channels.

"It is a huge honour to be named world's top destination. It is a proud moment for our state," said Kerala Tourism Minister Shri A P Anilkumar.

"The award will only increase our commitment to work further towards the growth of tourism in Kerala and development of our communities and the livelihoods of our people while preserving our environment," Shri Anilkumar said.

The award will be presented at a gala ceremony on the occasion of the PATA Aligned Advocacy dinner in London on November 2, the opening day of the World Travel Mart in the British capital. A host of travel and tourism industry leaders will be present at the event where United Nations World Tourism Organisation (UNWTO) Secretary General Mr Taleb Rifai is scheduled to be the guest of honour.

"The top global tourism award is recognition of our pioneering efforts in creating a harmony between our distinguished visitors and our nature-endowed destinations," said Kerala Tourism Secretary G Kamala Vardhana Rao.

"While we develop our destinations like Thekkady with new tourism products to present a once-in-lifetime experience to the discerning global travellers, we also have to create a viable technological model for disseminating information worldwide," he said.

Kerala Tourism Director P I Sheik Pareeth said the award was the result of a fruitful partnership public-private partnership, involving the local communities. "Our new products like Village Life Experience will firmly establish our state as a global tourism leader," he said.

Thekkady, one of the few places in the world to easily spot a wild elephant, is one of the destinations in the state developed by Kerala Tourism as a model of Responsible Tourism.

Situated on the banks of the Periyar lake, Thekkady is one of the leading wildlife destinations in the country. Besides the Periyar Wildlife Sanctuary, famous for its dense evergreen tropical forests and grasslands, the destination is home to tiger, sambar, lion-tailed macaque and nilgiri langurs.

The Department of Tourism-run Kerala Institute of Tourism and Travel Studies (KITTS) is the nodal agency for Responsible Tourism drive in Thekkady.

 

[IndoCarib]

Mark Mobius Backs PM Modi, Makes Case for Buying Indian Stocks - NDTVProfit.com

 

[ranjeet]

 

[Nilgiri]

Let me expand on the above and also add Steel:

India's domestic coal boom halts import growth

India's domestic coal boom halts import growth - The Economic Times

-----------------

My notes:

==================================COAL============================

Indian coal production will stand at roughly 650 MT this year and its consumption is projected at around 900 MT.

India’s coal industry in flux as government sets ambitious coal production targets - Today in Energy - U.S. Energy Information Administration (EIA)

From what I have heard from some of my sources, there has been a decent turn around in Coal India. It has gone from being a nasty bureaucratic nightmare to a beast that is being tamed and made more lean and mean by shedding its bloated officer workforce, replacing bureaucrats with technocrats where needed and made to compete with private coal mining companies for allocation than be handed it on a sliver platter. Subsequently its production grew at 7% in the most recent fiscal year after relatively stagnating for the last 5 years.

The plan is to get production of around 1500 MT by 2020, about 900 MT from Coal India, the rest from Private Coal miners.

A lot depends on land acquisition but the good news is that many of the coal producing states are run by the BJP or are friendly to the BJP.

Combined with cleaner coal technology now making waves in the Indian thermal energy sector....the future looks bright for continued growth in total energy supply to feed India's growth in the years to come.


==============================STEEL===============================

India's Steel output continues to grow. This year we will surpass the US in steel output, a trend seen every month so far this year. We currently produce ~7.5MT a month. Japan (no. 2) produces 8.5-9MT a month. We should overtake them in a couple years time.

2015 YTD(Aug): 61MT (~91MT for full year at current rate)
2014: 83MT
2013: 81MT
2012: 77MT
2011: 72MT
2010: 68MT
2009: 64MT
2008: 58MT
2007: 54MT
2006: 50MT

All data from the World Steel Association Archive.

Next step is to address production of high quality niche steel for automobiles and shipbuilding which is often still imported.

We will however have to deal with Chinese overcapacity in the years to come and its effect of undercutting by putting in the appropriate import duties.

India records steel demand growth in difficult external environment | Business Standard News

"India, according to WSA, is one of the few countries to remain a "resilient" economy in the face of a "global slowdown" because of its commitment to "reforms". Indian steel demand in 2015 is to rise to 81.5 mt from 75.9 mt in 2014. WSA says its use will further improve by 7.6 per cent to 87.6 mt next year. Hopefully, the three-year high of 6.4 per cent rise in industrial growth in August, supported by good showing in manufacturing, mining and electricity, will be sustained to generate good demand for steel in the months ahead."

 

[MilSpec]

NEW DELHI: Global e-commerce giant Amazon continues to invest "very heavily" in the Indian market, encouraged by its strong sales numbers and expanding seller base, a top company executive has said.

Amazon Senior Vice President and CFO Brian T Olsavsky said the US-based company has seen sales quadruple during the festive season (pre-Diwali sales) compared to last year.

"We're really encouraged ..

Read more at:
htt ..

Read more at:
Amazon continues to invest 'very heavily' in India - The Economic Times

 

[Nilgiri]

Arun Jaitley to launch two initiatives of tax department

Arun Jaitley to launch two initiatives of tax department - The Times of India

NEW DELHI: Finance minister Arun Jaitley will tomorrow launch eSahyog and Pan camps, initiatives of the Income Tax Department to improve services.

Through eSahyog he will launch the paperless initiative of theCentral Board of Direct Taxes ( CBDT) under which notices to assesses would be sent to their emails.

The PAN camps are aimed at expanding the coverage of number of people through Permanent Account Number (PAN). Currently there are 23 crore people with PAN card.


The expansion of Number of PAN card holders would help the government implement the budget proposal of mandatory quoting of PAN for cash transaction of Rs 1 lakh.

The tax department has already started a pilot project of using e-mails for sending notices, getting replies as well as carrying out tax assessments in an attempt to make sure taxpayers don't have to visit I-T offices physically in smaller cases.

The government in the Budget had announced that quoting of PAN (Permanent Account Number) will be mandatory for any purchase or sale exceeding Rs 1 lakh. But concerns were raised about complying with this condition because not everyone, particularly in rural areas, possesses a PAN card.

To facilitate people to get PAN cards, the government plans to launch camps across the country.

=================================================================

Status of Village Electrification as on 31.05.2015

Status of Village Electrification as on 31.05.2015 | Open Government Data Platform India Blog

Of course no figure of reliability etc (very few places are 24/7 I would imagine)....but still very impressive feat given the overall figure was at 75 -80% just a few years back.

 

[Sky lord]

India Jumps 12 Spots in World Bank's Ease of Doing Business List

 

[ranjeet]

https://twitter.com/x/status/659340721376247808

 

[Ragnar]

How NDA govt pushed India up to 130 in ease of doing business ranking - Firstpost

Finally, there is some good news for the NDA government — which has of late drawn flak for slow-paced reforms — with India jumping up 4 spots to reach 130 in the ranking of countries based on ease of doing business. Last year, the rank stood at 142, which has been adjusted this year to 134.

The much-awaited World Bank ranking, which was released yesterday, has made some positive remarks about the initiatives undertaken by the NDA government in the last one year to ease up the processes of doing business.


Reuters

This comes as a major relief for Prime Minister Narendra Modiand Finance Minister Arun Jaitley, who have been battling a lot of criticism on the reforms front.

Moreover, the jump comes after the consistent slide the country has witnessed in the the World Bank ranking.

Though the rank is nowhere near PM Modi's target of 50, the improvement shows that his efforts are getting paid off well.

According to a PTI report, World Bank's chief economist and senior vice-president Kaushik Basu commented that the 12 spots jump by an economy of the size of India is a "remarkable achievement".

"It gives a good signal about the way things are moving in India," he has been quoted as saying in the report.

Here are the key takeaways from the World Bank report:

India scores in protection of minority investors: The World Bank has measured 10 parameteres to arrive at the ranking. Here is how India ranks in each of these: a) starting a business (India at 155); b) dealing with construction premits (183); c) getting electricity (70); d) registering property (138); e) getting credit (42); f) protecting minority investors (8); g) paying taxes (157); h) trading actross borders (133); i) enforcing contracts (178); and j) resolving insolvency (136). As is evident, India's ranking is the best in protecting minority investors. The other better ones in getting credit and getting electricity.

Days to start up down to just 29: According to the report, India stands out in South Asia in taking steps to put in place better and more efficient business regulation. Over the period of 11 years from 2004 to 2015, the country has reduced the days to start a business from 127 to just 29.

The report notes that in 2004, the country cut the time for obtaining a permanent account number for companies; in 2006, it sped up the process for obtaining a tax registration number; in 2010, it established an online system for value added tax registration and replaced the physical stamp previously required with an online version.

The NDA-2 steps: The biggest improvement in the processes happened in the past year. The report notes that India eliminated the paid-in minimum capital requirement to start a business and also streamlined the processes to start up.

The regulatory reform launched in 2014, aimed at making it easier to do business, "represents a great deal of effort to create a more business-friendly environment, particularly in Delhi and Mumbai," the report has said.

It makes a special mention of the amendments made to the Companies Act in May 2015 that eliminated the minimum capital requirement. "Now Indian entrepreneurs no longer need to deposit 100,000 Indian rupees ($1,629) — equivalent to 111 percent of income per capita — in order to start a local limited liability company," the report says.

The changes to the Act also ended the requirement to obtain a certificate to commence business operations, saving business founders an unnecessary step and five days, says the report.

Faster electricity connection: The government has also taken steps to make the process for getting a new electricity connection simpler and faster. "Toward that end the utility in Delhi eliminated an internal wiring inspection by the Electrical Inspectorate — and now instead of two inspections for the same purpose, there is only one. The utility also combined the external connection works and the final switching on of electricity in one procedure," it said.

The improvement in Mumbai seems to be more noteworthy than Delhi's. According to the report, the Mumbai SEB combined many procedures to cut the time taken to get an electricity connection for a business.

"The utility in Mumbai reduced the procedures and time for connecting to electricity by improving internal work processes and coordination. It combined several steps into one procedure — the inspection and installation of the meter, the external connection works and the final connection. Now companies can get connected to the grid, and get on with their business, 14 days sooner than before," the report has said.

Pre-registration processes simpler: The country also figures among those that simplified preregistration and registration formalities such as publication, notarisation, inspection and other requirements.

More key reforms under way: Apart from these steps taken there are more reform in the pipeline. The govenrment is developing a single application form for new companies and introducing online registration for tax identification numbers.

In the key area of construction permits too, the government has initiated reforms by starting work on setting up a single-window system in Mumbai. Once implemented, this is expected to reduce the beuraucratic burden.

Moreover, online systems for filing and paying taxes are being further improved to simplify tax compliance, the report notes.

As Lopez Claros, director of the Global Indicators Group World Bank, said India is in the middle of what appears to be an ambitious process of reforms.

"My expectation, therefore, is that if this process continues, if it is sustained, and the authorities show the degree of determination which has been in evidence in the last year, then we could see substantial improvements in coming year," he has been quoted as saying in the PTI report.



X---------------------------------------X------------------------------------------------------------X




India's ranking on Enforcement of Contracts is still pretty bad, but there is movement on that front..

Govt clears two ordinances for speedy settlement of commercial disputes | The Indian Express

The government on Wednesday cleared two ordinances for speedy settlement of commercial disputes in the country, giving a fresh impetus to ease of doing business.

The Union Cabinet, chaired by Prime Minister Narendra Modi, cleared ordinances to amend the Arbitration and Conciliation Act and bring into force the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Bill, 2015 pending before a Parliamentary standing committee, official sources said.

The Cabinet had in December last year given a nod to an ordinance to amend the Arbitration Act but it was never sent to the President for approval.

For speedy settlement of commercial disputes, the Cabinet had in August cleared a bill to amend the Arbitration Act to fix a timeline for arbitrators to resolve cases. The bill was not introduced in Parliament.

Under the proposed amendments to the Arbitration and Conciliation Act, 1996, an arbitrator will have to settle a case within 18 months.

However, after the completion of 12 months, certain restrictions will be put in place to ensure that the arbitration case does not linger on, the sources said.

In the initial ordinance approved by the Cabinet in December last year, the timeline was fixed at nine months.

The formulation was changed after inter-ministerial discussions.

The amendments to the law come amidst keenness of the government to attract the greater foreign investment.

Certain foreign companies were said to be hesitant to do business in India because of the long-drawn litigations.

Another amendment to the law puts a cap on the fee of an arbitrator.

The arbitrator will now also have to spell out if there is a conflict of interest in a case he or she is taking up.

The Prime Minister has been stressing on steps to promote ease of doing business in India.

In its report submitted last year, the Law Commission had also supported amendment to the arbitration law to help India become a favoured destination, after Singapore and London, for international arbitration.

The Cabinet Committee on Parliamentary Affairs, which also met today, decided to take a call on convening the Winter Session of Parliament on October 26. Once the session, likely to commence after November 19, starts, the government will have to seek Parliament’s approval for the ordinances within 42 days/six weeks or else these will lapse.

The department related standing committee on Law and Personnel was to table its report in Parliament on the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Bill, 2015 by end of July. But it was granted a month’s extension till August 30. The panel has sought a fresh extension till November 30.

The Bill has been pending. After being referred to a Rajya Sabha Select Committee during UPA’s tenure, it was sent to the Law Commission. Based on the law panel’s recommendations, the NDA government re-drafted the bill as part of its ease of doing business.

The government will now have to take a call on bringing into force a law which will allow the Delhi High Court to transfer thousands of cases, mostly related to property disputes, to the district courts of the capital. The law will enhance the pecuniary jurisdiction of civil courts from the existing Rs 20 lakh to Rs 2 crore.

The Delhi High Court (Amendment) Act, 2015, has received the approval of the President but is yet to be brought into force.

Pecuniary jurisdiction refers to the jurisdiction of a court over a suit based on the amount or value of its subject matter. According to an estimate put before the Parliamentary committee which examined the bill, there are over 12,000 cases which will stand transferred to the lower courts.

 

[Nilgiri]

According to a PTI report, World Bank's chief economist and senior vice-president Kaushik Basu commented that the 12 spots jump by an economy of the size of India is a "remarkable achievement".

I remember Basu was always somewhat of a Modi-skeptic in a number of his opinions/articles (he was a CEA to UPA admin iirc for some years). So this comment is actually quite quality praise coming Modi's way.

It is an ok start by Modi administration, it could have been even better but given what he had to juggle in first year...I am not going to be overly harsh on this front.

The real proof of the pudding will now come as the improvements gather steam and we see massive consolidation over the next few years in business environment/friendliness.