Indian Economy-News & Updates

[Holmes]

India courts investments from Brazil

NEW DELHI: India has invited companies from Brazil to invest in the national infrastructure and manufacturing Special Economic Zones and the food processing sector.

Commerce, industry and textiles minister Anand Sharma, who is leading a large business delegation from India, met his Brazilian counterpart Fernando Pimentel and other senior ministers and officials to deepen bilateral economic and trade linkages between the two key BRIC nations.

Indian policymakers are exploring ways to attract foreign investment and increase capital flows. Large investments are needed in the infrastructure sector and projects such as the manufacturing Special Economic Zones. India and Brazil play key roles in the group of 20 nations.

A government statement said both sides agreed that infrastructure was one area in which lot of opportunities existed on both sides for companies to participate. India has plans for $1 trillion investment in the infrastructure sector over the next five years to build roads, ports, airports and highways.

During the recent visit of Brazilian President Dilma Rousseff to India in March, the President had invited the minister to visit Brazil for advancing bilateral economic and commercial relations. She also sought India's assistance to address the larger issue of making essential drugs available at affordable prices.

Sharma's delegation comprises representatives from 15 top Indian companies coordinated by Pharmexil. During the ministerial dialogue, both sides agreed that the setting up of a working group on pharmaceuticals and life sciences would be a welcome step towards furthering the cooperation between India and Brazil in this crucial area.

Brazil expressed keen interest in collaboration with India in joint production of essential drugs for fighting HIV Aids, malaria, and other diseases.

Both sides stressed the importance of re-launching the India-Brazil CEOs Forum, a decision taken in the form of declaration at the Summit level talks held in March 2012. They also agreed that the proposed meeting of the two co-chairs of CEOs Forum would be a positive step in taking this initiative forward.

The Indian side also sought for an early meeting of the existing Joint Working Group on Hydrocarbon sector to move this area of bilateral cooperation on faster track.

A memorandum of understanding between the Council of Scientific and Industrial Research (CSIR), through National Physical Laboratory (NPL) and the National Institute of Metrology (INMETRO), Brazil was also signed for scientific and technological cooperation in chemistry, physics, engineering measurement sciences, development of certified reference materials for thermo physics properties, nanometrology, analysis of surface and thin films, biofuels, and biotechnology.

The purpose of this memorandum is to provide a framework for the exchange of scientific and technological knowledge services and the enhancement of scientific and technical capabilities of the two sides in the areas of chemistry, physics, and engineering measurement sciences.

India courts investments from Brazil - The Times of India

 

[IndoCarib]

Indian handicraft sector sees vast potential in China

There is huge growth potential for Indian handicraft items in the Chinese market. In fact, Indian handicraft exports to Chin have grown manifold during the last few years.

Exports of handicraft items from India to China were worth Rs. 470 million in 2008-09 and the figure increased to Rs. 730 million in 2009-10. The figure further surged to Rs. 5 billion in 2010-11, according to data from the Export Promotion Council for Handicrafts (EPCH).

India : Indian handicraft sector sees vast potential in China - Textile News India

 

[kurup]

 

[kkacer]

What Happens if India Is Downgraded to ‘Junk’?

June 13, 2012, 11:47 AM

A rating downgrade to junk status would mean that there would be in increase in the overseas borrowing costs for Indian companies and the country’s ability to attract foreign investment would be considerably diminished.

“This could have a major impact on overall fund flows, which rely heavily on international ratings,” said Dipen Shah, who leads fundamental research at Kotak Securities. “While the overall international debt is not so alarming as a proportion of the G.D.P., India needs a lot of capital flows to cover up its balance of payment deficit.”

While the cost of borrowing will increase, India’s borrowing capability will also be materially reduced, as certain investors who only invest in investment-grade paper will shun India.

What Happens if India Is Downgraded to 'Junk'? - NYTimes.com

 

[cloud_9]

Mitsubishi may buy stake in L&T Shipbuilding

MUMBAI: Japanese engineering major, Mitsubishi Heavy industries may consider buying a stake in Larsen and Toubro's subsidiary, L&T Shipbuilding, as it looks to set up its first shipbuilding base outside Japan.

"Mitsubishi Heavy Industries plans to acquire a stake in L&T Shipbuilding within a few years to secure its first shipbuilding base overseas," Hisashi Hara, head of shipbuilding and ocean development of Mitsubishi was quoted as saying by Japanese media while presenting the company's business plan on Wednesday.

L&T Shipbuilding, a subsidiary of domestic infrastructure major, Larsen and Toubro signed an agreement in December last year with Mitsubishi for technological assistance, ranging from design drawings to quality control.

MV Kotwal, president, heavy engineering at L&T said that the company has not had any discussions with Mitsubishi on the issue, but added that the company will take an appropriate call on the matter if it comes up for discussion. "We have also heard that about the same, but we have not had any discussions on the same. If and when it comes up, we will look into the matter. But so far, we have not had any discussions," Kotwal told ET.

L&T also said that the company is open to partnerships that add long term value to any of their businesses. "We can neither confirm nor deny any speculation on a stake sale to Mitsubishi. While not commenting on equity infusion in this specific case, we are always open to partnerships that add long term value to any of our businesses," the statement added.

Mitsubishi's plans come when Indian shipyards including Pipavav Defence, Bharati Shipyard and ABG shipyard have been struggling to receive orders from domestic and international shipping companies.

While Indian shipyards only contribute 0.1% of the global shipbuilding industry, shipyards in China, Japan and South Korea produce more than 75 % of the vessels manufactured globally. This has forced the domestic companies to woo the local defence sector."The only logical reason why L&T will look to sell some stake to Mitsubishi is to help the company while bidding for defence projects," said an analyst with a local brokerage who did not want to be quoted as he is not authorised to speak with the media.

Having a strong partner, like in the case of Pipavav, can help L&T when they bid for defence projects, he added. Mitsubishi would have also seen a strong potential in the domestic defence space," said an analyst with a leading domestic brokerage who did not want to be quoted as he is not authorised to speak with the media.

In 2011, the government agreed to allow public private partnerships in the defence sector and Mazagon Dock was the first to get off the block. At stake are defence contracts worth thousands of crores of rupees to build the Indian Navy's requirement of warships in the coming years.

Another financial analyst said that the shipbuilding business of L&T has not been performing well and the company made too many errors in executing their projects. "With their shipbuilding underperforming, they are probably looking to exit the business or invite a partner to infuse some money into the company," he added.

L&T shipbuilding has established shipbuilding facilities at Hazira in Gujarat and is also developing a shipyard at Kattupalli, near Chennai in Tamil Nadu. L&T and Mitsubishi also operate two joint ventures to manufacture power-related equipment, including super-critical boilers, and steam turbines and generators, which they signed in 2007.

 

[kkacer]

Inflation rises to 7.55% in May, highest in a year

Jun 14, 2012 2:33 PM

Indian inflation quickened more than estimated in May, an acceleration that may fail to prevent an interest-rate cut next week to prop up slowing growth.

Overall food inflation rose to 10.74 percent in May, from 10.49 percent in the previous month. Indian economic expansion weakened to a near-decade low last quarter, the nation struggles with the fastest inflation among the biggest emerging markets.

India Inflation Rate Exceeds Estimates; Rate-Cut Pressure Stays - Bloomberg

Bad News

 

[kkacer]

Inflation accelerates to 7.55 percent, food prices surge

New Delhi, June 14 — India's inflation moved up to 7.55 percent in May as compared to 7.23 percent in the previous month, mainly driven by a sharp increase in the price of food items, adding to the woes of policy makers as the economic growth remains under pressure, government data showed Thursday.

The monthly inflation based on wholesale price index (WPI) was 9.56 percent during the corresponding month of previous year.

Food inflation surged into double-digits. Food inflation rose to 10.74 percent in May as compared to 8.25 percent in the previous month as vegetables, pulses, milk, egg, meat and fish became costlier, pinching the pockets of common people.

Inflation rises to 7.55 percent, food prices surge - NY Daily News

 

[kkacer]

Inflation at 7.55% when India is growing only at 5.3% implies NEGATIVE GROWTH of -2.25%

India real GDP = -2.25%

 

[IndoCarib]

Inflation at 7.55% when India is growing only at 5.3% implies NEGATIVE GROWTH of -2.25%

India real GDP = -2.25%

Can I copy paste this in 'stupid & funny' section ? This is really hilarious. Do you know that inflation is taken into account in gdp growth rate ??

 

[Maritimer]

Inflation at 7.55% when India is growing only at 5.3% implies NEGATIVE GROWTH of -2.25%

India real GDP = -2.25%

No, India real GDP for Jan-Mar quarter was 5.3%, inflation for that period was 6.7%, current prices GDP was 5.3 + 6.7 = 12%

Source: http://mospi.nic.in/Mospi_New/upload/NAD_Press_Note_31may12.pdf

 

[kkacer]

Can I copy paste this in 'stupid & funny' section ? This is really hilarious. Do you know that inflation is taken into account in gdp growth rate ??

Nominal GDP = u talking Nominal GDP

Real GDP = Real GDP is also known as constant-price GDP and inflation-corrected GDP

do u know what is the differences betweem Nominal GDP & Real GDP?

 

[IndoCarib]

Nominal GDP = u talking Nominal GDP

Real GDP = Real GDP is also known as constant-price GDP and inflation-corrected GDP

do u know what is the differences betweem Nominal GDP & Real GDP?

Nominal GDP is GDP evaluated at current market prices. Therefore, nominal GDP will include all of the changes in market prices that have occurred during the current year due to inflation or deflation.


In order to abstract from changes in the overall price level, another measure of GDP called real GDP is often used. Real GDP is GDP evaluated at the market prices of some base year.

Real GDP = nominal GDP / price index (in hundredths).

 

[SinoChallenger]

Nominal GDP is GDP evaluated at current market prices. Therefore, nominal GDP will include all of the changes in market prices that have occurred during the current year due to inflation or deflation.


In order to abstract from changes in the overall price level, another measure of GDP called real GDP is often used. Real GDP is GDP evaluated at the market prices of some base year.

Real GDP = nominal GDP / price index (in hundredths).

LOL at indian ignorance. The GDP growth rate quoted by india is firstly fake and secondly nominal. To adjust for inflation, you need to look at the US dollar denominated GDP (not growth rate). You would notice that indian GDP in 2011 is smaller than indian GDP in 2010 because of rupee collapse (even while rupee denominated GDP grows). The collapsing currency is due to inflation.

What Happens if India Is Downgraded to ‘Junk’?

June 13, 2012, 11:47 AM

A rating downgrade to junk status would mean that there would be in increase in the overseas borrowing costs for Indian companies and the country’s ability to attract foreign investment would be considerably diminished.

“This could have a major impact on overall fund flows, which rely heavily on international ratings,” said Dipen Shah, who leads fundamental research at Kotak Securities. “While the overall international debt is not so alarming as a proportion of the G.D.P., India needs a lot of capital flows to cover up its balance of payment deficit.”

While the cost of borrowing will increase, India’s borrowing capability will also be materially reduced, as certain investors who only invest in investment-grade paper will shun India.

What Happens if India Is Downgraded to 'Junk'? - NYTimes.com

The invisible hand of Adam Smith's free market is fisting india.

 

[Ammyy]

Mahindra XUV500 now in Australia

New Delhi: After a successful launch in India, Mahindra has now launched its high on demand sports utility vehicle XUV500 in Australia.

Reportedly, the XUV500 launched in the land down under comes with some credibility through four-star safety ratings from ANCAP (Australian New Car Assessment Program). Unlike in India, only W8 versions will be offered in Australia.

The front-wheel drive model is priced at 29,900 Australian dollars (approx Rs 16.58 lakh) and AWD for 32,900 (Rs 18.24 lakh), making it the cheapest seven-seater SUV on the Aussie shore.

The SUV’s mechanicals aren’t any different from its Indian counterpart. The vehicle is powered by the same 2.2-litre four-cylinder diesel engine with 140PS of power and 330 Nm of torque.

The SUV’s interiors has features like touch screen-enabled satellite-navigation with LCD, Italian leather upholstery, headlamps with LEDs, Bluetooth-ready audio system, tire pressure monitor and chrome-plated twin exhaust tips.

Back home, XUV500 was initially available in only 5 Indian cities - Pune, Chennai, Mumbai, Delhi and Bangalore. But due to its heavy demand from across the country, the company has launched the vehicle in Jaipur and Indore recently.

Ever since its launch in India, the car has created a huge storm in the Indian auto industry. The company has managed to keep bookings open for a period of just 20 days.

Mahindra XUV500 now in Australia

 

[IndoCarib]

Help me!!!!!!!!!!!!!!!!!!!!!!!!!

India Where 900M Don’t Eat Enough

Jun 14, 2012 2:30 AM

he death certificate for 3-year-old Rashid Ahmed hides more than it reveals.

It lists his name, misspells his mother’s and says he died of malaria. What it doesn’t say is how little he weighed when he was brought to hospital with the disease in New Delhi one August night, how his ribs jutted from his chest, or how helpless his doctor, 28-year-old Gyvi Gaurav, was in trying to save him.

Mohamed Hafiz Khan, left, eats lunch along with his wife, middle bottom, and four children in their rented home iin the Dharavi slum area of Mumbai, India. Photographer: Dhiraj Singh/Bloomberg


June 14 (Bloomberg) -- Gyvi Gaurav, a doctor at St. Stephen's Hospital in New Delhi, talks about the case of a 3 year-old patient that died of malnutrition, which left him unable to fight off a case of malaria. In the 2005 National Family Health Survey, when India last measured its children for signs of hunger, it found 46 percent, or 31 million, weighed too little for their ages. That's almost an entire Canada of malnourished under-three-year-olds. (Source: Bloomberg)

Attachment: India's Growing GDP Comes With Falling Calories

For Rashid’s mother, Nazia, the three-decade road from her birth to the death of her son ran alongside a slow collapse in India’s elemental struggle to feed its people. More than three- quarters of the 1.2 billion population eat less than minimum targets set by the government, up from about two-thirds, or 472 million people, in 1983. India’s failure to feed its people came as the economy accelerated, with gross domestic product per capita almost doubling in the past decade.

“I cry every night,” Nazia said on May 15, speaking through sobs after being told her child may have lived had he eaten better. “For my wasted life, for my dead child, for the hunger in my stomach. What could I give him? I had nothing, nothing to sell.”

Nice way of hiding ignorance by posting the unrelated

Real GDP growth

India 2010 :9.6
2011: 6.9
2012 : 6.6


http://web.worldbank.org/external/d...ontentMDK=20370107&menuPK=659160&piPK=2470429

spread your ignorance now !!