Indian Economy-News & Updates

[Great Sachin]

hey this is India Econ thread. don't talk china please. anyway, China GDP is still over 8% and higher than gov target. it's just a great performance in Europe crisis. Don't worry about China. you should fix your country problems quickly.

1. India GDP sharly slowing & far below gov target
2. Very high trade deficit
3. Very high debt
4. Very high Inflation
5. Very high unemployment
6. Rupee historically record Low

Why should I worry for Indian Economy.....since you are here to worry for it....

 

[cloud_9]

Diesel subsidy is way too high in India

In the wake of the recent increase in petrol prices and India's looming fiscal deficit situation, it is important to understand why diesel prices should also be revised upwards.

For several decades, India has been subsidising the price of diesel. But in recent years, both the global environment and the Indian economic scene have undergone substantial changes.

Despite this, many economic policies, such as the heavy subsidy on diesel prices, have remained unaltered over the period; this needs serious reconsideration.

For instance, in the last six years, the average growth rate of crude oil prices (based on the Indian basket) has been at 13.5 per cent.

During the same period, however, the average value of diesel under-recoveries, as a percentage of fiscal deficit, stood at 14.6 per cent!

Similarly, between 2009 and 2010, when global oil prices fell by more than 21 percentage points, diesel under-recoveries as a percentage of fiscal deficit fell only by 13 percentage points.

What is wrong in subsidising diesel?

It is vital to understand that subsidies are associated with two important (negative) economic fallouts, besides many others.

WHY IT IS WRONG

First, a subsidy of any kind involves a disincentive to use the subsidised good or service efficiently as they have been obtained cheap.

Second, the government can finance a subsidy only by expanding its fiscal deficits. In the process, scarce resources are transferred from a private party (tax-payers) to the government.

It is well documented that owing to the absence of a profit motive in government spending, such resource transfers leads to decreased productivity.

ACKNOWLEDGING THE REALITY

Revision in diesel prices, no doubt, would entail temporary displeasure, and resistance from the pubic and political parties. But it would only help the country's cause to keep political interest aside, and focus on the economic benefits.

In the name of shielding the economy from fuel price volatility, the government is exposing future generations to tougher times. It is time people realise this fact.

The Government may also want to look back at the heavily resisted policy shifts in the 1990s that has created a slew of positive changes in the Indian economy.

 

[SpArK]

Jammu And Kashmir can earn Rs1 lakh crore on power generation’




Srinagar, May 26: Shakeel Qalander, former president Federation Chamber of Industries Kashmir (FCIK), today said that J&K has a potential to develop into a vibrant and self sustaining economy.

He said in spite of having a rich resource base “we have not been able to utilize it effectively and as a result our state is lagging behind other states of the country.”

Qalander said the state has huge potential of generating electricity and if utilized properly J&K can earn more than 1,00,000 crore annually from this resource.
He said that generating electricity can fuel socio-economic growth in the state by contributing greatly in the infrastructure development and industrialization.

Qalander highlighted the importance of Handicrafts and Tourism in Kashmir economy and added that the Kashmiri crafts are world renowned and if marketed properly can bring in prosperity at the grass root levels.
Qalandar was speaking at the valedictory function of a weeklong interaction programme between the students of US-based Syracuse University and Kashmir University’s Business School.
The programme was organized by the Business School in collaboration with Department of Students Welfare, University of Kashmir

During the programme students of Syracuse University were exposed to the heritage, Culture, History & Economy of Kashmir.
Qalandar emphasized that concrete steps need to be taken to exploit the mineral wealth of the state, as the state is rich in Lime, Marble, Granite and Sapphire.

While addressing the students Qalander advised them to think positively and seriously about the socio-economic development of the state and encouraged students to take up entrepreneurship as the state offers huge opportunities in the areas of Agriculture, Horticulture, Animal Husbandry etc.
Prof. Shabir A Bhat appreciated the role of Qalander for “tirelessly working for Industrial Fraternity and the Economic Development of the state.”K can earn Rs1 lakh crore on power generation’



JK can earn Rs1 lakh crore on power generation Lastupdate:- Sun, 27 May 2012 18:30:00 GMT GreaterKashmir.com

 

[SpArK]

Govt to take up 32 FDI proposals this week
​

New Delhi: The government is likely to decide this week on 32 foreign direct investment (FDI) proposals, including those of Sesa Goa and Mahindra and Mahindra.

"The 177th meeting of the Foreign Investment Promotion Board (FIPB) is scheduled to be held on Friday, June 1...," the Finance Ministry said.

As per the agenda paper of the meeting, 19 applications have fresh proposals including that of Sesa Goa, Pfizer and M&M. Three are those requests on which decisions were deferred in the earlier FIPB meetings and five are amended proposals.

FDI request of G4S Secure Solutions, decision on which have been deferred in the previous meetings of the FIPB, is also on the agenda.

India allows FDI in most of the sectors through automatic route, barring in certain sensitive segments like telecom and defence, where FIPB clearance is required.

The country received USD 8.1 billion in FDI in March, the highest ever monthly inflows. Cumulative FDI inflows for the fiscal 2011-12 amounted to USD 36.50 billion.

While inbound FDI is on the rise, Indian corporates too have been increasing their investments in foreign countries.

According to the latest RBI data, Indian companies invested USD 2.67 billion in different countries in April.

With an aim at increasing FDI inflows, the government has been easing and streamlining the procedure for foreign investment and also recently allowed FIIs to invest up to 23 percent in commodity exchanges through automatic route.

FIPB is headed by Economic Affairs Secretary R Gopalan.


Govt to take up 32 FDI proposals this week

 

[laman12345]

Big Loss, Strikes Air India faces possible shutdown

• The national carrier is operating on an unviable business model. It continues to stay in the air because it is being funded by taxpayer money.


Air India faces possible shutdown, says new report
Air India losing Rs 10 crore each day: Ajit Singh

 

[cloud_9]

Trade ties with India growing at steady pace: Indonesian Ambassador

The Indonesian Ambassador, Andi M. Ghalib said here on Saturday that the trade ties between his country and India were growing at a steady pace and could reach $45 billion mark by 2015.

“I hope that the volume of business between the two countries would reach $45 billion by 2015,” the Ambassador who had come here for an event told mediapersons.

The volume of trade between the two countries last year was about $14 billion.

Mr. Ghalib said that an indication of the warm ties between the two countries came when the Indonesian President was invited to be the chief guest at the Republic Day parade two years back.

He said a lot of work was done to encourage Hinduism in his country and pointed out that Indonesia’s national airline is known as Garuda Airlines.

The Ambassador said that more than 30 MoUs had been signed between India and Indonesia against only five to seven MoUs signed by other countries.

He said that the economic growth rate of both India and Indonesia was almost similar.

SAIL inks JV pact with Burn Standard

Steel Authority of India Limited (SAIL), on Friday, signed a joint venture agreement with Burn Standard Company Limited (BSCL), a unit under Indian Railways, for setting up a wagon components manufacturing facility at Jellingham in West Bengal's Purba Medinipore district.

SAIL Chairman C. S. Verma told reporters that the outlay on this unit would be about Rs.200 crore. Given the state's supportive and positive environment, SAIL, however, was keen to increase its investments here.

SPECIAL STEEL UNIT

It would like to set up a special steel unit in West Bengal, where it already has investments of over Rs.20,000 crore under implementation. The joint venture unit would have a capacity to produce 10,000 bogies and 10,000 couplers per annum.

The agreement for the new joint venture was signed in the presence of Chief Minister Mamata Banerjee, Railways Minister Mukul Roy, the SAIL Chairman and Railway Board Member (Mechanical) Keshav Chandra.

Ms. Banerjee urged that the joint venture's implementation schedule be advanced by a year to 2013, as it would lead to the area's overall development. She said that she had announced the project in her 2010 budget speech and Railways had assured annual offtake for 5,000 units.

“It is praiseworthy that SAIL is investing Rs. 21,000 crore in Durgapur and Burnpur”, she said.

She also said that all the RAIL projects announced for West Bengal were progressing well. “ This should silence the Doubting Thomases”, she said.

Mr. Chandra said that the project assumed special significance considering the fact that bogies and couplers were in short supply.

Mr. Verma said that SAIL was keen to explore the opportunity to set up a special steel unit in Kulti near Asansol in West Bengal which would make high-end applications.

MODERNISATION

SAIL will take its hot metal capacity to 19 million tonnes by March 2013 from 14 million tonnes, as its massive modernisation programme makes headway.

Mr. Verma said the Rs.72,000-crore modernisation programme was a unique one. He said orders had been placed for Rs.58,000 crore.

To a query on delays in the modernisation plan, he said, “It was a unique programme and expectations have been high”.

He said the implementation of the 2.5-million tonne greenfield project at Burnpur (the erstwhile Indian Iron and Steel Plant) had run into some delays but would now get implemented in an integrated manner by March 2013 (instead of June 2012), at an investment of Rs.16,000 crore. This is the timeline for the completion of the Rs.3,000 crore modernisation programme of Durgapur steel plant also.

 

[cloud_9]

India to pay $13 for gas through TAPI pipeline

India will pay $13 per unit for buying natural gas through the much-celebrated TAPI gas pipeline and will take indirect responsibility for safe transit of the fuel through high security risk areas in Afghanistan and Pakistan.

India on May 23 signed agreement to buy natural gas from Turkmenistan at a rate equivalent to 55 per cent of crude oil price which, at $100 a barrel, translates into $9.17 per million British thermal unit, sources privy to the development said.

After adding transit fee and transportation charges, the gas through Turkmenistan-Afghanistan-Pakistan-India (TAPI) line would cost $12.99 per mmBtu at Indian border, three times the price paid to ONGC and Reliance Industries for producing natural gas from domestic fields, they said.

The rate agreed to flies in the face of oil ministry which has been stonewalling any increase in price to be paid to domestic producers arguing that a higher gas price would lead to an increase in power tariff and cost of fertiliser, thereby entailing higher government subsidy outgo, they added.

Besides the higher price, India has also in the Gas Sales and Purchase Agreement (GSPA) signed in Caspian Sea resort of Avaza, Turkmenistan agreed to take delivery of natural gas at Turkmen-Aghan border.

GAIL India, which signed the GSPA, will then entrust the delivery of the gas to a consortium which will operate the TAPI pipeline, they said, adding that GAIL will be a prominent member of the consortium building and operating the 1,680-km line.

Sources said GAIL will pay Turkmengaz, the national oil company of Turkmenistan, on delivery of gas at Turkmen-Afghan border. Thereafter, the consortium which will have GAIL as partner, will take responsibility for transit of the gas through Afghanistan - one of the top high security risk countries in the world, and terrorism hotbed Pakistan.

PM's Myanmar visit: Deeper energy ties to top trade agenda

NEW DELHI, MAY 27: The Prime Minister, Dr Manmohan Singh, today said India and Myanmar would explore new initiatives and define a roadmap to further boost bilateral ties with focus on trade, investment and connectivity as he begins a three-day visit to that country.

Pointing out that India attaches the highest importance to its relations with Myanmar, a “close friend and neighbour”, Dr Singh said in a statement shortly before his departure for Nay Pyi Taw, Myanmar’s new capital, that “recent years have witnessed significant strengthening and expansion of our bilateral relations”.

He added that his coming visit “will provide an opportunity to review the progress in implementation of decisions” taken during the “highly successful visit” of Myanmar President, Mr Thein Sein, to India in October last year.

“We will also consider new initiatives and define a roadmap for the further development of our cooperation in the years ahead,” said Dr Singh who will be the first Indian Prime Minister to visit Myanmar in quarter of a century since Rajiv Gandhi’s trip to that country in December, 1987.

The Prime Minister, who will hold talks with Mr Sein tomorrow at Nay Pyi Taw, said that during his visit to Myanmar he hopes to focus on “stronger trade and investment links, development of border areas, improving connectivity between our two countries and building capacity and human resources“.

“We also hope to sign a number of agreements and MoUs to further strengthen our bilateral cooperation in these areas, besides promoting people—to—people contacts,” Dr Singh said.

Pacts may cover energy, IT

High on Dr Singh’s agenda of talks with the Myanmar President, a former army general heading a quasi-civilian government, will be deepening ties in energy, security, connectivity, trade and information technology.

The high-points among the slew of agreements will be the ones relating to an offshore gas block awarded to private Indian company Jubilant Energy in global competition and a passenger bus service between Imphal and Mandalay, Myanmar's second largest city after Yangon.

India will be flagging its interests in getting more opportunities in both offshore and onshore energy sources in Myanmar. GAIL and OVL already have minority stakes in energy sector from where the gas is being transported to China.

India expects that the visit of the Prime Minister, who will be accompanied by his wife Ms Gursharan Kaur and the External Affairs Minister, Mr S.M. Krishna, will take bilateral relations to a “new level” given the new political environment in Myanmar which has seen remarkable political reforms that have seen that country emerging from decades of diplomatic isolation.

The Prime Minister’s engagements include a public address on “India and Myanmar: A Partnership for Progress and Regional Development” where the leading think—tanks of Myanmar and the business captains of the two countries will be present.

Reflecting the importance of the economic content of the bilateral relations, a group of captains Indian business and industries representing energy, telecom, IT, steel and agriculture sectors will be in Myanmar during Singh’s visit.

As the gateway to South East Asia, Myanmar has been of considerable strategic significance to India and central to its Look East policy, given its energy reserves, and 1,640 km border with insurgency—hit four northeastern states —— Mizoram, Nagaland, Manipur and Arunachal Pradesh.

Hey guys what is this pinged thingy

 

[laman12345]

India Record FDI outflows ring alarm bells

Compared to FDI repatriation (also termed as FDI debit) of a few million dollars between 2000 and 2008, this figure jumped to $3.1 billion in 2009 and further to $10.7 billion in 2011, a report by global financial powerhouse Nomura said.

Outward flows are bad news for a country that this week saw its rupee currency hit a new record low as investors worry about its hefty fiscal and current account shortfalls, slowing economic growth and policy gridlock

Foreign cos pulling more money out of India - Nomura | Reuters


(FDI debit) Total inflows - Total outflows = -$10.7 billions in 2011

 

[Ignited Mind]

Centre eyes Bihar CM Nitish's free bicycle scheme​

Rampur: The daily trip to high school was expensive, long and eventually, too much for Indian teenager Nahid Farzana, who decided she was going to drop out. Then, the state government gave her a bicycle.
Two years later, she is about to graduate from high school and wants to be a teacher.
Bihar has been so successful at keeping teenage girls in school, the bike giveaways have spread to neighboring states. Now the Indian government wants to expand it across the country in hopes it might help improve female literacy.

Before starting the program in 2007, officials in Bihar, one of India's poorest and least developed states, despaired over how to educate the state's females, whose literacy rate of 53 per cent is more than 20 points below that of its males.
"We found that the high school dropout rate soared when girls reached the ninth grade. This was primarily because there are fewer high schools and girls had to travel longer distances to get to school," said Anjani Kumar Singh, Bihar's principal secretary overseeing education.
Poor families could not spare the money for transport, or were reluctant to let girls travel so far away, fearing for their safety.
The programme was an instant success, with the number of girls registered in the ninth grade in Bihar's state schools more than tripling in four years, from 175,000 to 600,000.
"The results are remarkable. The school dropout rate for girls has plunged," says Singh.
In her crisply starched blue tunic uniform and white scarf, Farzana appears a carefree teenager, proud to have made it into the tenth grade. But she almost did not make it.
Her daily bus fare of Rs 15 to the new high school 6 kilometers from their home in Rampur Singhara village was an additional burden her father, a car mechanic, could not afford.
"I wouldn't have been able to keep Farzana in school for long," said Mohammed Shiraz Ahmad, her father.
A teacher told them about the free bicycles, and Farzana applied for the 2,500 rupee ($50) grant to buy the bike.
"The bicycle has changed everything," Ahmad said.
In remote villages, along dusty potholed lanes surrounded by sheaves of waving wheat, gaggles of school girls can be seen jauntily cycling to school.
The programme has also raised the status of girls, who are often seen as a burden in son-obsessed India, where parents have to pay such hefty dowries to marry off their daughters that the family is often indebted for decades.
Now, girls are bringing an asset to the family, Singh said.
Mohammed Jalaluddin, who runs a tea stall in Rampur Singhara, says his daughter's bike is used by the entire family.
Nizhat Parveen, his 16-year-old daughter, drops her brother at his school on the way to hers. When she returns, the family uses the bicycle for chores, from shopping for groceries to making food deliveries from the tea shop.
Bihar is also giving free school uniforms to girls to keep them in school. The bike grant money is put into a joint bank account in the names of the student and her parents, and school administrators monitor whether the girls buy bicycles and use them, or if the bike is sold and the girl ends up leaving school, Singh said. But mostly, the program operates on the honor system.
While corruption and fraudulent use of state money is rife in India, the Bihar government reports misuse of the bicycle funds is 1 percent.
The results from Bihar were so encouraging that the program has been adopted by the neighboring states of Madhya Pradesh and Chhattisgarh. Rajasthan, another state with low female literacy rates, has launched a free bicycle program for girls in secondary and high school.
The federal government is exploring a plan to give bicycles to Muslim girls as their dropout rate is worse than that of other communities.
The bicycle program "has worked very well," says Syeda Hameed, a member of India's powerful Planning Commission body.
Hameed said the body is also looking at other factors that affect school attendance by girls in the higher classes, such as the lack of toilets in schools.
In poor families, older girls also leave school to take care of younger siblings while parents work. "This is a persistent problem which tends to push up dropout rates and is a matter of concern," Hameed said.
But with the bicycle program gaining in popularity, authorities are tightening conditions, demanding students have 75 percent attendance to "earn" their uniforms and the bicycle.
For high school student Parveen, her proudest possession, the free bicycle, has allowed her to dream of even greater things.
"Even college doesn't seem far away now," she says.
(For updates you can share with your friends, follow IBNLive on Facebook, Twitter, Google+ and Pinterest)

Centre eyes Bihar CM Nitish's free bicycle scheme - India News - IBNLive

 

[Holmes]

India`s exports rise 3.23% in April

India Exports during April, 2012 were valued at USD 24,455.38 million which was 3.23% higher in Dollar terms (20.54% higher in Rupee terms) than the level of USD 23,690.37 million during April, 2011.

India`s Imports during April, 2012 were valued at USD 37,941.70 million representing a growth of 3.83% in Dollar terms (21.25% in Rupee terms) over the level of imports valued at USD 36,540.75 million in April, 2011.

Oil imports during April, 2012 were valued at USD 13,909.2 million which was 6.96% higher than oil imports valued at USD 13,004 million in the corresponding period last year.

Non-oil imports during April, 2012 were estimated at USD 24,032.5 million which was 2.11% higher than non-oil imports of USD 23,536.7 million in April, 2011.

The trade deficit for April, 2012 was estimated at USD 13,486.32 million which was higher than the deficit of USD 12,850.38 million during April, 2011.
http://www.myiris.com/newsCentre/storyShow.php?fileR=20120601134753717&dir=2012/06/01

 

[russellpeters]

well some good news...

 

[IndoCarib]

On June 1, a group of wealthy Indians and one (very) wealthy American will meet in Bangalore to discuss how philanthropy can be scaled up in India. The private gathering, to be held in a Bangalore hotel and to which no media has been invited, is being co-hosted by Bill Gates, tech tycoon Azim Premji of Wipro and industrialist Ratan Tata, chairman of the Tata conglomerate.

The invitation for this meeting, no doubt extended only to a select group, has been sent out by Premji in his personal capacity and not as chairman of Wipro. Often referred to as India’s Bill Gates for the riches he’s earned from software, Premji, whose net worth is estimated at $15.75 billion, has lately emerged as one of Asia’s top philanthropists. He has committed over $2 billion to date to his Azim Premji Foundation which focuses on education and has set up a university in Bangalore.

As for Tata, while he hails from the storied Tata clan and is among India’s most respected business leaders, he, curiously enough, doesn’t feature among the country’s super-rich. The Tata family has a long tradition of philanthropy, dating back to group founder Jamsetji Tata who pledged half his personal wealth to create a science institute in 1898. The current chairman’s ancestors bequeathed their holdings to a clutch of charitable trusts which together own nearly a two-third stake in Tata Sons, the group holding company. Therefore, Pallonji Mistry whose family acquired a stake inTata Sons is the single biggest shareholder rather than Tata himself; Mistry, an Irish citizen, derives a chunk of his $9.7 billion fortune from that holding.


Billionaire Premji together with Tata now seem to be taking it upon themselves to create the Indian version of the Giving Pledge that isn’t overtly seeking pledges from the rich to part with their fortunes but is more in the nature of a Givers’ Club. While this initiative, launched by Gates and Warren Buffett two years ago, has notched up 81 signatories in their home country, it has so far met with a tepid response in Asia, notably China.

Newly-rich Indians who are criticized for being tight-fisted in their charity, haven’t rushed to embrace it. When Gates and Buffett visited India last year to spread their mantra on philanthropy, they were not rebuffed as they were in China. Indeed, several Indian tycoons flocked to meet them. But there were notable absentees:Reliance Industries’ Mukesh Ambani, the country’s richest resident who some months ago finally moved into his $1 billion, 27-storey sky-palace, turned down their invitation to watch a cricket match. But lately a new wind is even blowing in the house of Reliance; Ambani’s wife Nita features in a recent TV commercial touting the charitable activities of the Reliance Foundation, presumably to counter criticism that the Ambanis do not give enough.

Hence, in this instance, the Bangalore invitation emphasizes that “There will be no request made for anyone to pledge or donate funds.” In an accompanying note, Premji makes the point that the discussion is aimed at bringing together like-minded people to exchange ideas on raising “ the scale of philanthropy & social service in India, and also to make it more effective. “

The guest list includes the more generous among India’s wealthy such as Bangalore residents Kiran Mazumdar-Shaw who parts with half her dividends every year and has built a cancer hospital; S. Gopalakrishnan, co-chairman of Infosys (Wipro’s rival) whose family donates to various causes ; Infosys co-founder Nandan Nilekani and his wife Rohini who are active philanthropists. From Mumbai, investor Rakesh Jhunjhunwala who has pledged to give away a quarter of all his assets and Rajashree Birla, mother of billionaire Kumar Birla, who oversees the Aditya Birla Group’s considerable philanthropic efforts. Cyrus Poonawalla, founder of leading vaccine-maker Serum Institute and son Adar Poonawalla; Anu Aga, director of engineering firm Thermax who stepped down as chairman to devote herself to social causes and was recently nominated member of parliament will come from Pune.

Despite the high-profile guest list, the meet has so far been kept under wraps. A Wipro spokesman denied any knowledge of the upcoming event, directing Forbes query to the foundation. Anurag Behar, co-chief executive of the Azim Premji Foundation confirmed that the philanthropy meet is taking place but said that it is the ” private initiative of three people and has nothing to with the foundation.”

Among those who have been invited but aren’t going due to other commitments, are billionaire Adi Godrej whose family has a long tradition of charity and tractor tycoon Anand Mahindra, a big donor to Harvard University, his alma mater. Says one invitee who plans to be there, “ The people who have been invited are already philanthropy-minded but every effort counts. “

Bill Gates, Azim Premji, Ratan Tata To Host Bangalore Philanthropy Meet - Forbes

The stingy Ambani brothers also need to get on board and donate generously

 

[rashtriya.rifles]

^ those scumbags and thiefs would never donate.. the entire breaking of Reliance was a hogwash to evade taxes..

 

[IndoCarib]

^ those scumbags and thiefs would never donate.. the entire breaking of Reliance was a hogwash to evade taxes..

And also Mukesh is a darling in The Congress party inner circles

 

[rashtriya.rifles]

And also Mukesh is a darling in The Congress party circles

what do you think the petrol prices are being 'rationalized' (sic) for ? Govt. cant subsidize private crude importers... instead they are bending backwards to bring RIL in a level playing field with the Oil PSUs..

Have u seen a single RIL petrol pump being sold after RIL decided to stop the sale of petrol etc ?? NO. They were left defunct waiting to be activated at the opportune moment..