Indian Economy-News & Updates

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India Inc's business sentiment improves despite economic woes: Survey

NEW DELHI: Corporate India's confidence level has shown signs of improvement in the March quarter even as the domestic economy is witnessing high inflation and a likely slump in growth rate, says a survey.

According to the NCAER MasterCard Worldwide Index of Business Confidence, the confidence of India Inc increased by 7.7 per cent over the previous quarter to 134.9 points in the March quarter from 125.2 points in January 2012.

Confidence level in doing business rose for the first time since January 2011, irrespective of the fact that there is a global slump and high inflation rates.

The change in business sentiments comes on the back of a number of developments that have taken place on both domestic and global front during the last quarter of FY12, the survey said.

While moderation in economic growth rates persisted, inflation rate also moderated and the foodgrain harvest in 2011-12 has been at a record level, the study said.

"The index shows some significant changes in the economy during the quarter ending March 2012. After a dip in the year 2011, the index showed positive business sentiments during this time period.
"In light of the current challenging economic environment, the next quarter index will be worth watching," T V Seshadri, Division President, South Asia and Country President India said.

"It's encouraging to see how the economy is recovering from the slump. The investors are regaining confidence and there is a positive outlook which has impacted this quarters result," NCAER Senior Research Counselor Shashanka Bhide said.

The survey measures business confidence on four indicators -- overall economic conditions, financial position of firms, investment climate and level of current capacity utilisation.

Overall, the survey reflects improved business sentiments in all regions except South where although the present situation has improved, firms are still not sure about changes in the short run future, according to survey that was conducted in March 2012 and received 528 responses.

The survey also has a special section on expectations and evaluation of Union Budget 2012-13, which suggested that the business sector was expecting measures to boost investment and demand more directly and these may not have been realised.

Meanwhile, the ratings of political management of the economic issues have declined compared to the previous quarter.

Region-wise results suggest that Political Confidence Index (PCI) declined for two regions North & South and improved for the other two regions East & West over the previous round.

 

[laman12345]

India Huge Trade deficit widens as April export growth slows

2-6-2012

Exports grew a mere 3.2 per cent in April to $24.45 billion over $23.69 billion in corresponding period last year. In rupee terms, the growth stood at 20.54 per cent. Imports in April were up 3.8 per cent at $37.8 billion, resulting in a higher trade deficit of $13.48 billion.

Trade deficit widens as April export growth slows to 3.2%

India's Trade Deficit Hits Record $185 Billion

India’s trade deficit soared to $185 billion in fiscal 2011-12. “This is the highest ever trade deficit and is a serious concern,” Commerce Secretary Rahul Khullar said in New Delhi, releasing the latest provisional trade figures.

 

[India defense]

For Chinese to troll...

Not all gloom and doom for Indian economy;improvement likely: Survey - The Times of India

 

[laman12345]

Hard Landing of Indian Economy

GDP growth for 2011-12 stands at 6.5%, lower than the 6.8% growth in 2008-09, the year of the Lehman crisis. The surprise is that while world GDP growth in 2011 was much higher than during the year of the Lehman collapse, growth in India is lower.

Hard landing of Indian economy - Money Matters - livemint.com


Indian growth weakest in nine years

New Delhi—India’s economic growth slumped to its lowest level in nine years in the first three months of 2012, marking a dramatic slide in the fortunes of a country whose economy boasted nearly double-digit growth before the global recession.

“Urgent and bold steps are immediately needed to prevent the economy from descending into a full blown crisis. This must be averted at all costs,” . The GDP data showed that the manufacturing sector shrank 0.3 percent compared with a year earlier. The farm sector grew just 1.7 percent.

Indian growth weakest in nine years

 

[Hulk]

Hard Landing of Indian Economy

GDP growth for 2011-12 stands at 6.5%, lower than the 6.8% growth in 2008-09, the year of the Lehman crisis. The surprise is that while world GDP growth in 2011 was much higher than during the year of the Lehman collapse, growth in India is lower.

Hard landing of Indian economy - Money Matters - livemint.com


Indian growth weakest in nine years

New Delhi—India’s economic growth slumped to its lowest level in nine years in the first three months of 2012, marking a dramatic slide in the fortunes of a country whose economy boasted nearly double-digit growth before the global recession.

“Urgent and bold steps are immediately needed to prevent the economy from descending into a full blown crisis. This must be averted at all costs,” . The GDP data showed that the manufacturing sector shrank 0.3 percent compared with a year earlier. The farm sector grew just 1.7 percent.

Indian growth weakest in nine years

Cannot have a better news than this, this news will help speed up the pending reforms.

 

[Martian2]

For Chinese to troll...

Not all gloom and doom for Indian economy;improvement likely: Survey - The Times of India

Why the anti-Chinese hostility? I just wrote a pro-India post (see below). You are making it harder to achieve Sino-Indian friendship.

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India is 2nd-strongest BRIC in machine tool production and consumption

At $875 million, India edged out Brazil for the distinction of second-strongest BRIC country in machine tool production!

Though India has a smaller GDP than Brazil or Russia, the greater Indian consumption of machine tools seems to indicate a larger Indian manufacturing sector.

Reference: 2012 World Machine Tool Output & Consumption Survey - Producers

 

[laman12345]

ALARM: India Inc's debt rises over 50%

The alarming rise in India Inc's debt , estimated to have risen by over 50-60 per cent from a year ago, is a serious cause of worry and efforts are on by the companies to pare their long-term loans by selling off assets.

India Inc's debt rises over 50 per cent; infra, real estate sectors lead - Business Today

 

[Koovie]

Why the anti-Chinese hostility? I just wrote a pro-India post (see below). You are making it harder to achieve Sino-Indian friendship.

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Dont care about that, there are trolls on both sides...

 

[laman12345]

Dont care about that, there are trolls on both sides...

wrong, Chinese only tell the truth

 

[Shardul.....the lion]

HSBC India Services PMI jumps to 3-month high of 54.7 in May

NEW DELHI: India's services sector grew at the fastest pace in the last three months during May, driven by robust growth in new orders and optimistic business outlook, says a HSBC survey.

The HSBC India ServicesPurchasing Managers Index (PMI) -- an index of Indian services sector activity -- bounced to a three-month high of 54.7 in May from 52.8 in April.

A reading above 50 shows that the sector is growing, while, below 50 indicates that the segment is contracting.



The May services PMI data showed a marked increase in the volume of work in-hand (but not yet completed) held at Indian service providers' units and a continued expansion of India's services sector workforce, HSBC said.

"Following last week's release of the weaker than expected Q1 GDP number, the May PMI reading for the services sector was more encouraging," HSBC Chief Economist for India and ASEAN Leif Eskesen said.

India's economic growth rate slowed to a 9-year low in March quarter at 5.3 per cent, and 6.5 per cent for the entire 2011-12 fiscal.

At 6.5 per cent, the GDP growth in 2011-12 was lower than 6.7 per cent seen in 2008--09 amid the global financial crisis.

Meanwhile, input price inflation in the Indian services sector accelerated to a strong rate amid reports of higher prices paid for energy, fuel and raw materials, which was passed on to clients, as output prices also rose sharply.

"The inflation readings for input and output prices accelerated again and remain high by historical standards," Eskesen said.

The survey further noted that Indian service providers were optimistic regarding the one-year business outlook in May. The degree of confidence was strong, and the most marked in 15 months driven by of new business wins and better economic conditions.

"While the more backward-looking GDP numbers suggest rising growth risks and pressures on the RBI to cut rates, these numbers suggest the case may not necessarily be that clear-cut and, certainly, that there is no room for aggressive monetary policy easing over the near term," Eskesen said.

However, RBI Deputy Governor Subir Gokarn on Monday said below-trend growth and falling crude prices offer the central bank a window to ease monetary policy.

The Reserve Bank is scheduled to announce mid-quarter credit policy on June 18.

Meanwhile, the HSBC India Manufacturing Purchasing Managers' Index (PMI) -- a measure of factory production -- slipped slightly to 54.8 in May, from 54.9 in April.

Consequently, the HSBC Composite Output Index (covering manufacturing and services) posted 55.3 in May, up from 53.8 in April.

HSBC India Services PMI jumps to 3-month high of 54.7 in May - The Times of India

 

[laman12345]

Need to control inflation, high fiscal deficit, says Pranab

5-6-2012

Finance Minister Pranab Mukherjee on Monday said the government has to address the high fiscal deficit, which has been projected at 5.1 per cent of gross domestic product for the financial year ending March 2013, or about Rs5.2 lakh crore.

The Reserve Bank of India, whose primary mandate is to keep inflation under check, has resorted to a high-interest regime to keep liquidity tight and prices low. However, headline inflation, continues to be outside of the central bank's comfort level -- in the month of Apri, it rose to an alarming 7.23 per cent, well above expectations.

Mr. Mukherjee also said that the country needs to return to a high growth path. India’s GDP growth rate was 8.4 per cent in fiscal 2011 but slipped to 6.5 per cent in fiscal 2012. The GDP growth rate for the last quarter of 2012 was a dismal 5.3 per cent, well below the 6.1 per cent that experts had been expecting.

Need to control inflation, high fiscal deficit, says Pranab

 

[Koovie]

India launches 7-point strategy to boost export

Amid global economic problems, the government on Tuesday unveiled a seven-point strategy to boost exports which include
extension of interest subsidy scheme by one year till March 31, 2013.

“We have now decided to extend the scheme (interest subvention) for another year till March 31, 2013 and expand its coverage to include other labour-intensive sectors namely toys, sports goods, processed agricultural products and ready made garments”, Commerce Minister Anand Sharma said while releasing annual supplement to the Foreign Trade Policy here.

“The underline philosophy of this year’s supplement is based on seven broad principles”, he said, adding these would include added thrust on employment-intensive industry and continuation of market diversification strategy.

The Minister also exuded confidence that India would be able to sustain 20 per cent export growth in the current fiscal.

“It is our expectation that with these measures, we shall be able to sustain an annual export growth of 20 per cent this fiscal”, he said.

India’s exports grew by 21 per cent in 2011-12 to touch USD 303 billion.

To encourage exports, the government came out with an interest subvention scheme under which two per cent interest subsidy was given to handlooms, handicrafts, carpets and SME sector.

The scheme, which has been extended by a year, was to end on March 31, 2012.

Highlights

Government aiming 20 per cent export growth in 2012-13

Two per cent interest subsidy scheme extended till March 2013

Zero per cent duty EPCG scheme for technology upgradation extended till March’13

Incentives for exports from north-eastern states

Shipments from Delhi, Mumbai through post, courier or e-commerce to get export benefits

Single revolving bank guarantee for different export deals

Seven new markets added to Focus Market Scheme

Market linked focus product scheme extended till March’13 for apparel export to USA and EU

Ahmedabad, Kolhapur and Shaharanpur new Towns of Export Excellence

Govt to come out with new guidelines to promote SEZs

Focus on market diversification to continue

Steps announced to reduce transaction cost of exports

Foreign Trade Policy document made more user friendly

Thirteen shows abroad to promote Brand India

The Hindu : Business / Industry : India launches 7-point strategy to boost export

 

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Australia halts approval process for GVK's $10 bn coal mine

SYDNEY: In a setback to the Indian infrastructure conglomerate GVK, the Australian government announced halting the environment clearances granted to GVK's $10b coal mine by the Queensland government last week.

In a disagreement with the Queensland government over the issue, Australia's federal minister for sustainability and environment Tony Burke announced halting the approvals granted to GVK's project.

While the conservative Queensland government that was elected in March is on a move to clear the backlog of mine projects worth over A$50b, the federal government is acting tough on projects that could impact the environment.

HPCL keen on oil refinery at Barmer in Rajasthan

NEW DELHI: With ONGC deterring from building a refinery in Rajasthan, state-owned Hindustan Petroleum (HPCL) has expressed interest in setting up a 9 million tonne unit at the site of the massive oil find at Barmer district.

HPCL, which owns a refinery at Mumbai and Visakhapatnam in Andhra Pradesh and is equal partner in the just commissioned Bhatinda refinery in Punjab, is keen to take up the project, sources privy to the development said.

Oil and Natural Gas Corp (ONGC), which owns 30 per cent interest in the Barmer oilfields of Cairn India, had in 2005 committed to building the refinery but later started soft- peddling the project.

ONGC may bid for $5 bn ConocoPhillips Canadian oil sands assets: Source

KUALA LUMPUR: Oil and Natural Gas Corp, India's biggest state-owned energy explorer, is considering bidding for part of ConocoPhillips Canadian oil sands holdings worth around $5 billion, a source with direct knowledge of the situation told Reuters on Tuesday.

The Houston-based company has been looking to sell assets in a number of countries including Nigeria as part of a global restructuring. ConocoPhillips recently completed the spin-off of its refining activities into Phillips 66, a newly created independent U.S. company.

ConocoPhillips said in January that it is selling a stake in six Alberta properties that produce 12,000 barrels of oil a day from an estimated 30 billion barrels of bitumen.

Highlights of Annual Supplement 2012-13 to Foreign Trade Policy 2009 -14

 

[laman12345]

The Indian Rupee is falling like a rock.

At an exchange rate of 54.51 rupees to the U.S. dollar, India's 2011 economy is $1.4 trillion and smaller than Australia's.

 

[Nakki Nair]

The Indian Rupee is falling like a rock.

At an exchange rate of 54.51 rupees to the U.S. dollar, India's 2011 economy is $1.4 trillion and smaller than Australia's.

Is the movement from 56 to 54.5 called 'falling like a rock'? If so, I would like the rupee to fall like a rock forever.