Indian Economy-News & Updates

[SpArK]

October manufacturing at 9.6% versus -1.5% in September |

Electricity growth at 5.5% versus 3.9% |

Is 8.2% growth higher than last year?

DUNNO...

 

[Abingdonboy]

BBC News - India factory output boosted by festive season demand

 

[kawaraj]

Interest rate cut hopes fade as inflation sniffs double-digits - Hindustan Times

 

[Azazel]

Hitachi, Panasonic to make India base to access Africa, Middle East; plan Rs 5,700-cr investments

KOLKATA: HitachiBSE 1.12 % and Panasonic, Japan's two biggest corporations, plan to invest more than Rs 5,700 crore in India as they have identified the country as one of their biggest bets for growth and a base to expand in Africa and Middle East markets.

Hitachi, which held its first board of directors meeting outside Japan in its 102-year history in New Delhi on Thursday, announced Rs 4,700-crore expansion plans that include building 5 manufacturing plants.

Japan's largest industrial power and electronics conglomerate has formulated a 'India business strategy 2015' plan to make the country one of its top markets and targets a three-fold jump in its India revenues to Rs 20,000 crore by 2015-16.

"With its market, human resources and business partnerships, India is an important strategic base for Hitachi," its global president Hiroaki Nakanishi said.

Panasonic too has lined up more than Rs 1,000 crore investment in a new plant at Haryana and targets Rs 20,000-crore revenues by 2014-15, a year earlier than Hitachi.

Yorihisa Shiokawa, Panasonic's managing executive officer and chief of the Asia Pacific, Middle East and African operations, said the firm wants to set up more such plants and become the country's largest appliances maker by 2018.

"Localisation will be the key for Panasonic's growth in India and the main objective has been that the products...should be specially conceptualised and customised for the Indian consumers, keeping the local needs in mind," Shiokawa said.

The development is in line with Japanese electronic companies' increasing dependence on India as one of their highest growth-potential markets at a time when sales in the US and Europe are slowing. In end-August, Sony Corp President and CEO Kazuo Hirai came to India within months of taking charge and announced plans to increase investment in the market and expand sales by more than 30% from last year's $1.1-billion revenue (Rs 5,500 crore) to make India its fifth largest market.

Both HitachiBSE 1.12 % and Panasonic said they will make India their base to expand their business in Africa and the Middle East.

Hitachi on Thursday named Hitachi India as its regional headquarters, making India a separate management area outside Japan. The other such areas are China, Southeast Asia, Europe, and the Americas.

Hitachi has a wide range of businesses interest in India, including power and industrial systems, components and equipment, air conditioning and television. It recorded Rs 6,700 crore revenue last fiscal.

Both Hitachi and Panasonic said they will pursue growth in India by localising development and production of their businesses and products, and focus on developing Indian talent. Hitachi plans to double the number of its employees in India to 13,000 by 2015, while Panasonic plans to add 3,500 more to its over 12,500 people on the rolls.

Panasonic's Shiokawa said the company is committed to be an Indian company here instead of being a Japanese company operating in India.

He said the company plans to enter into several new product categories such as health, energy-related products and LED lights in India.

Panasonic's big plans for India comes at a time when globally it looks at selling or shutting down several of its factories and assets. The company is staring at a second consecutive year of record loss, with a forecast of around $9.4 billion (Rs 51,200 crore) net loss for the year ending March 2013.

Credit rating agency Moody's last month cut Panasonic's long-term credit rating to one level above junk. Shiokawa, however, said the company is committed with its investment in India. "India has been one of the most important countries and potential growth market for Panasonic. The Indian operations has potential to be ranked amongst the top in the Asia Pacific region in terms of revenue contribution," he said.

Panasonic India last year clocked Rs 5,500-crore sales and targets to almost double it to Rs 10,000 crore this fiscal.

Hitachi, Panasonic to make India base to access Africa, Middle East; plan Rs 5,700-cr investments - The Economic Times

 

[Jamaal Yelmaaz]

India population is gonna to surpass of China population in the near future due to high birth ratio...But india has less land, natural resource and less educated pop.

If India population continue to growth at that rate what will be negative its consequences?

I just wonder, Is India need a birth control policy or not..?

a Birth control policy will be useful for economic grow and welfare of India in the future?...

 

[Abingdonboy]

BBC News - India's inflation rate slows further in November





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India population is gonna to surpass of China population in the near future due to high birth ratio...But india has less land, natural resource and less educated pop.

If India population continue to growth at that rate what will be negative its consequences?

I just wonder, Is India need a birth control policy or not..?

a Birth control policy will be useful for economic grow and welfare of India in the future?...

Hardly, China's "one child policy" is potentially going to come round and bite them in the rear vefore long. As the saying goes "China will get old before it gets rich."

 

[Azazel]

India population is gonna to surpass of China population in the near future due to high birth ratio...But india has less land, natural resource and less educated pop.

If India population continue to growth at that rate what will be negative its consequences?

I just wonder, Is India need a birth control policy or not..?

a Birth control policy will be useful for economic grow and welfare of India in the future?...

Its not gonna grow at present rate indefinitely.It is slowing down considerably.Presently its only 1.34% per year compared to Turkeys 1.24%.Artificially slowing down population growth(like China) will only harm our future growth prospects.

 

[Type 055]

China is looking to scrap the population control policy. It was designed to stop overpopulation and we did it. India has a worse problem that ageing, that is massive overpopulation. It will drain your resources trying to satisfy such a large population with limited resources and only 1/3 of the land area of China.

 

[Azazel]

China is looking to scrap the population control policy. It was designed to stop overpopulation and we did it. India has a worse problem that ageing, that is massive overpopulation. It will drain your resources trying to satisfy such a large population with limited resources and only 1/3 of the land area of China.

Most important resource for a developing economy is Human resources.Of all the people in the world you should know it better.

 

[MandarK]

Govt lowers growth projection for current fiscal to 5.7% in 2012-13 - The Times of India

NEW DELHI: The government on Monday lowered the growth projection for the current financial year to 5.7-5.9 per cent from 7.6 per cent estimated earlier, while pitching for supportive monetary and fiscal policies to improve investor confidence.

"Given ...an emerging scenario, it should be possible for the economy to improve the overall growth rate of GDP to around 5.7 per cent to 5.9 per cent for the year 2012-13", said the mid-year economic analysis tabled in Parliament.

The economy, it added, would have to record a growth rate of 6 per cent in second half of the current financial year to reach the desired growth rate. It grew by 5.4 per cent during April-September 2012-13. The Economic Survey had pegged the growth rate at 7.6 per cent for this fiscal.

To achieve 5.7-5.9 per cent growth, the analysis said, "both fiscal and monetary policy, however, would need to be supportive to sustain investor confidence. The government will also have to address the concerns relating to structural supply side bottlenecks".

The economic growth rate during 2011-12 had slipped to the nine-year low of 6.5 per cent due to both domestic and global factors. Earlier RBI had lowered the growth rate to 5.8 per cent for 2012-13.

Referring to inflation, it said, further moderation in price rise is likely to commence from the fourth quarter of the fiscal.

"Inflation at the end of March 2013 is expected to moderate to 6.8-7 per cent level", it said.

As regards fiscal deficit, the analysis said, the government would endeavour to restrict it to 5.3 per cent of GDP as against 5.1 per cent envisaged in the budget.
The analysis said there "are reasons to believe" that the slowdown has bottomed out and the economy is headed towards higher growth in the second half of the fiscal. It said agriculture is expected to improve because of better prospects with rabi crops benefiting from greater moisture content in the soil and dominance of irrigated wheat and rice crops.

The document further said that most services, particularly the trade, transport, communication and financial services, being largely driven by the performance of real sectors will also have a better growth.

The Parliament was informed that a fiscal consolidation road map announced by the government on October 29 has "considerably improved business expectations and perception of the domestic and global investors".

Referring to trade deficit, the document said it is expected that the gap in the current year would not be significantly higher than what it was last year. "Consequently, it is reasonable to expect that the current account deficit as a ratio of GDP would be lower than what it was in 2011-12," the analysis added.

 

[Azazel]

Standard and Poor's expects India's economic growth at 6.5% in 2013

NEW DELHI: Global rating agency Standard and Poor's (S&P) has said it expects India to grow by 6.5 per cent during 2013, amidst the possibility of global economic recovery continuing during the year.

For China, S&P expects the growth rate to move back to eight per cent level in 2013, after it slipped to 7.4 per cent in the third quarter of 2012.

In a report on global credit outlook for 2013, S&P said that "the ball is in the policymakers' court" to sustain the recovery in global economy.

Noting that there is "not much room for error in the global economy" in 2013, the S&P economists said it has been through a very challenging period in the recent years.

This included "the near total collapse of the financial system in 2008 and the very deep global recession that followed at the end of 2008 and the first half of 2009."

"The global economy started recovering in mid-2009, and that recovery at a global level has pretty much continued. We expect it to continue into 2013, but it is a fairly precarious situation.

"Precarious because the recovery process--the healing, deleveraging, balance sheet recovery, and economic recovery--is still working its way through the system," Standard & Poor's chief global economist Paul Sheard said.

Sheard said that S&P expects a "soft landing" in China, while its forecast for India is a 6.5 per cent growth in 2013.

"We have one major economy continuing to recover in our base case scenario. We see China going through a so-called soft landing. What it means is that China was growing at a very rapid pace--sometimes too rapid--after the financial crisis.

"Average year-on-year growth since the third quarter of 2008 has been 8.9 per cent though it's ticked down a bit this year. Chinese policymakers needed to rein in an overheating economy," Sheard said.

During the process, the growth has decelerated from 12 per cent at one point to 7.4 per cent in the third quarter of this year, he said adding deceleration of the Chinese economy is probably bottoming out and growth will probably move back closer toward 8 per cent entering 2013.

S&P said that it expects rating stability and even some positive trends in the emerging world, while the global growth will also be positive next year at little under 3 per cent.

The rating agency said that many emerging Asian economies are using their growth productively to strengthen their infrastructure --- and thereby increase long-term growth potential -- while still maintaining manageable debt burdens.

"So we could see some upgrades in parts of the emerging world," it said, without naming the countries.

Standard and Poor's expects India's economic growth at 6.5% in 2013 - The Times of India

 

[Abingdonboy]

Standard and Poor's expects India's economic growth at 6.5% in 2013

NEW DELHI: Global rating agency Standard and Poor's (S&P) has said it expects India to grow by 6.5 per cent during 2013, amidst the possibility of global economic recovery continuing during the year.

For China, S&P expects the growth rate to move back to eight per cent level in 2013, after it slipped to 7.4 per cent in the third quarter of 2012.

In a report on global credit outlook for 2013, S&P said that "the ball is in the policymakers' court" to sustain the recovery in global economy.

Noting that there is "not much room for error in the global economy" in 2013, the S&P economists said it has been through a very challenging period in the recent years.

This included "the near total collapse of the financial system in 2008 and the very deep global recession that followed at the end of 2008 and the first half of 2009."

"The global economy started recovering in mid-2009, and that recovery at a global level has pretty much continued. We expect it to continue into 2013, but it is a fairly precarious situation.

"Precarious because the recovery process--the healing, deleveraging, balance sheet recovery, and economic recovery--is still working its way through the system," Standard & Poor's chief global economist Paul Sheard said.

Sheard said that S&P expects a "soft landing" in China, while its forecast for India is a 6.5 per cent growth in 2013.

"We have one major economy continuing to recover in our base case scenario. We see China going through a so-called soft landing. What it means is that China was growing at a very rapid pace--sometimes too rapid--after the financial crisis.

"Average year-on-year growth since the third quarter of 2008 has been 8.9 per cent though it's ticked down a bit this year. Chinese policymakers needed to rein in an overheating economy," Sheard said.

During the process, the growth has decelerated from 12 per cent at one point to 7.4 per cent in the third quarter of this year, he said adding deceleration of the Chinese economy is probably bottoming out and growth will probably move back closer toward 8 per cent entering 2013.

S&P said that it expects rating stability and even some positive trends in the emerging world, while the global growth will also be positive next year at little under 3 per cent.

The rating agency said that many emerging Asian economies are using their growth productively to strengthen their infrastructure --- and thereby increase long-term growth potential -- while still maintaining manageable debt burdens.

"So we could see some upgrades in parts of the emerging world," it said, without naming the countries.

Standard and Poor's expects India's economic growth at 6.5% in 2013 - The Times of India

Anything above 6% would be good tbh. From 2014 we should see a return to 7-8% growth for sure.

 

[RoYaL~GuJJaR]

Anything above 6% would be good tbh. From 2014 we should see a return to 7-8% growth for sure.

We will and indications of getting back on track are already all over. Just check the recent stats.

The Indian economy is likely to grow at 7.2 percent in 2014, compared with 5.4 percent in 2012

:::Reuters:::

Forex Reserves Surge To $297 billion.

-------------------------------
Btw....Another such indication

FDI inflows rise 65% in October

PTI | Dec 22, 2012, 07.33AM IST

NEW DELHI: India's foreign direct investment (FDI) inflows grew by over 65% yearon-year to $1.9 billion in October , according to the Department of Industrial Policy and Promotion (DIPP). In October 2011, the country had attracted FDI worth $1.2 billion.

For the April-October period of this fiscal, however, FDI inflows have declined by about 27% to $14.8 billion, from $20.3 billion in the year-ago period as overseas investment inflows were small in the initial months.

Sectors which received large FDI inflows in September include services ($3.6 billion), hotel and tourism ($3.1 billion), metallurgical ($1.2 billion), construction ($691 million) and automobile ($743 million).

For the first seven months of the fiscal, India received maximum FDI from Mauritius ($6.8 billion ), Japan ($1.5 billion), Singapore ($1.2 billion) the Netherlands ($1.1 billion) and the UK ($611 million), the DIPP said.

The October figure is lower than the previous month when the country received highest FDI for a month in this fiscal. FDI inflows had more than doubled to $4.7 billion in September .

The inflows had aggregated to $36.5 billion in 2011-12 against $19.4 billion in 2010-11 and $25.8 billion in 2009-10 . Foreign investments are important for India , which needs around $1 trillion in the next five years to overhaul its infrastructure sector such as ports, airports and highways to boost growth.

Decline in foreign investments will put pressure on the country's balance of payments (BoP) and could also impact the rupee.

http://timesofindia.indiatimes.com/business/india-business/FDI-inflows-rise-65-in-October/articleshow/17715621.cms

 

[The A-5]

Hellos sirs,

Our economy right now is some 1.8 trillion USD as of 2012 - how much could it be by 2020 at the
current growth rate?

And how much if the 7-8% growth anticipated for 2014 occurs?

 

[itaskol]

Hellos sirs,

Our economy right now is some 1.8 trillion USD as of 2012 - how much could it be by 2020 at the
current growth rate?

And how much if the 7-8% growth anticipated for 2014 occurs?

india GDP growth doesn't reach 7-8%.
6% max.
India Economic Report - December 2012 » TheCityUK