Indian Economy-News & Updates

[RPK]

The Hindu : News / International : India


Trade between India and Sri Lanka surged by more than 70 per cent in 2011 over the previous year, touching an all-time high of $5 billion, Indian High Commissioner Ashok K. Kantha has said.

Speaking at a function to mark the Republic Day at the India House here on Thursday, he said Indian companies had invested more than $100 million in Sri Lanka.

He highlighted the vast growth in India's development assistance and the growing recognition that Indian projects were being completed in a timely and efficient manner.

Referring to the memorandum of understanding signed for the construction and repair of 49,000 houses under a grant assistance of $260 million, Mr. Kantha said this was perhaps one of the largest projects of its kind undertaken by India in a foreign country.

Special train

He said the Indian Railways would launch a special train, ‘Damba Diwa Vandana,' to take Sri Lankan pilgrims from Chennai to all major Buddhist sites in India.

The train would operate from next month.

He also announced the launch of the High Commission's Facebook page (High Commission of India, Colombo | Facebook) to provide an interactive platform for its various activities. Mr. Kantha and other officials of the High Commission paid homage to the fallen soldiers of the Indian Peace Keeping Force (IPKF) at a ceremony held at the IPKF memorial here.

To commemorate the Republic Day, danseuse Aditi Mangaldas and her troupe presented ‘Rhythm and Sound,' a contemporary Kathak performance. Sponsored by the Indian Council of Cultural Relations, the troupe has already performed at Galle and Kandy and will perform in Jaffna later this week.

 

[Shaurya]

^^^ and what are we getting from lankans?? nariyal pani

 

[Nakki Nair]

^^ नारियल पानी को लेके joke नहीं huh!

 

[lepziboy]

Rupee hits fresh 10-week high of 49.31 against dollar

Mumbai: The rupee on Friday zoomed by 77 paise to close at a near 12-week high of 49.31/32, driven by strong capital inflows into rising local stock markets.

Forex dealers said sustained dollar selling by exporters amid weakness in the US currency's value overseas also boosted the rupee sentiment.

The local unit moved between 50.08/09 and 49.82 at the Interbank Foreign Exchange (Forex) market, before settling at 49.31/32, or 77 paise higher. It had last touched 49.10/11 on November 4, 2011.

According to SEBI data, foreign institutional investors (FIIs) have pumped in a total nearly USD 1.79 billion in equities and USD 3.2 billion in debt markets till January 25, which mainly supported rupee to breach the sub-50-mark.

Meanwhile, BSE benchmark index Sensex also spurred by 156.80 points to close at an 11-week high of 17,234.

The dollar index, a gauge of six major rivals, was down by nearly 0.3 percent in European market on Friday.

The rupee premium for the forward dollar finished higher on fresh paying pressure from banks and corporates.

The benchmark six-month forward dollar premium payable in July closed better at 187-1/2-189-1/2 paise from Wednesday's close of 185-1/2-187-1/2 paise and far-forward contracts maturing in December also rose to 284-286 paise from 275-1/2-277-1/2 paise.

The RBI has fixed the reference rate for the US dollar at 49.6480 and for the euro at 65.0492.

The rupee recovered against the pound sterling to end at Rs 77.48/50 from previous close of Rs 78.03/05 while improved further slightly to Rs 64.80/82 per euro from Rs 64.86/88.

It gained further against the Japanese yen to Rs 64.08/10 per 100 yen from last close of Rs Rs 64.15/17.

 

[Raje amar]

good to see the recovery of Indian Rupee.
will surly ease the pressur on the GOI.

 

[Bobby]

India is now a $1.883 trillion economy in nominal terms and will cross the $2trillion barrier in 2012.

If I remember correctly...Japan is around $1.8 trillion economy so that means India has taken over Japan and became 3rd biggest economy in the world

 

[Martian2]

If I remember correctly...Japan is around $1.8 trillion economy so that means India has taken over Japan and became 3rd biggest economy in the world

Japan's economy is $5.8 trillion. Also, the Chinese government has released its official GDP for 2011 and it's $7.47 trillion at current exchange rates (see citation below).

China's 2011 GDP: $7.47 trillion

http://www.shanghaidaily.com/login.asp?url...type%3DBusiness

"Shanghai Daily (subscription) - 3 minutes ago
China's GDP totaled 47.16 trillion yuan (US$7.47 trillion) last year, up from the 39.7 trillion yuan recorded in the previous year. The expansion of China's ..."

----------

At best, India's economy is 10th in the world. Also, India's economy is smaller than $1.8 trillion, because the Rupee has fallen in value.

India's real 2010 GDP is $1.49 trillion

Forget the IMF numbers. India's rupee has collapsed by 20% in the meantime and it's still falling. Let's update India's current nominal GDP.

For 2010, India's economy was 78.8 trillion rupees (see India's Economy at 80 trillion Rupees and should be at US$ 2 trillion in 2012).

The current exchange rate is 53 Indian rupees per 1 U.S. dollar. It used to be 44 Indian rupees per U.S. dollar, but that was four months ago in August (see Exchange Rates Graph (American Dollar, Indian Rupee) - 120 days - x-rates).

Indian rupee has fallen from 44 to 53 per U.S. dollar in only four months. Indian economic fundamentals are terrible and the consensus is that the rupee will keep falling, possibly to 60 rupees per U.S. dollar.

Using today's exchange rate, India's 2010 GDP is:

78.8 trillion rupees / 52.9375 rupees per U.S. dollar = $1.49 trillion dollars

There are times when you can't rely on IMF data, because the world has changed. India's 2010 GDP is only $1.5 trillion U.S. dollars, not the old $1.63 trillion from the IMF. Also, you should ignore all future GDP projections for India in the current chart. They are all grossly inaccurate. The error is in the hundreds of billions of dollars. Wait one or two years until the IMF corrects their inaccuracies for India's GDP projections.

 

[Bobby]

Japan's economy is $5.8 trillion. Also, the Chinese government has released its official GDP for 2011 and it's $7.47 trillion at current exchange rates (see insert citation).

At best, India's economy is 10th in the world. Also, India's economy is smaller than $1.8 trillion, because the Rupee has fallen in value.

India's real 2010 GDP is $1.49 trillion

Forget the IMF numbers. India's rupee has collapsed by 20% in the meantime and it's still falling. Let's update India's current nominal GDP.

For 2010, India's economy was 78.8 trillion rupees (see India's Economy at 80 trillion Rupees and should be at US$ 2 trillion in 2012).

The current exchange rate is 53 Indian rupees per 1 U.S. dollar. It used to be 44 Indian rupees per U.S. dollar, but that was four months ago in August (see Exchange Rates Graph (American Dollar, Indian Rupee) - 120 days - x-rates).

Indian rupee has fallen from 44 to 53 per U.S. dollar in only four months. Indian economic fundamentals are terrible and the consensus is that the rupee will keep falling, possibly to 60 rupees per U.S. dollar.

Using today's exchange rate, India's 2010 GDP is:

78.8 trillion rupees / 52.9375 rupees per U.S. dollar = $1.49 trillion dollars

There are times when you can't rely on IMF data, because the world has changed. India's 2010 GDP is only $1.5 trillion U.S. dollars, not the old $1.63 trillion from the IMF. Also, you should ignore all future GDP projections for India in the current chart. They are all grossly inaccurate. The error is in the hundreds of billions of dollars. Wait one or two years until the IMF corrects their inaccuracies for India's GDP projections.

I think we should measure Economy on GDP(PPP)...do you have facts for PPP.

 

[Martian2]

I think we should measure Economy on GDP(PPP)...do you have facts for PPP.

No, I'm not a strong believer in PPP. You can't use PPP dollars to buy a Boeing airplane. You need real dollars, which is only reflected in nominal GDP.

I've always viewed PPP as an artificial construct. However, if you want to claim India is the world's third-largest economy in PPP terms, I don't have any problems with that.

 

[lepziboy]

Japan's economy is $5.8 trillion. Also, the Chinese government has released its official GDP for 2011 and it's $7.47 trillion at current exchange rates (see citation below).

China's 2011 GDP: $7.47 trillion

http://www.shanghaidaily.com/login.asp?url...type%3DBusiness

"Shanghai Daily (subscription) - 3 minutes ago
China's GDP totaled 47.16 trillion yuan (US$7.47 trillion) last year, up from the 39.7 trillion yuan recorded in the previous year. The expansion of China's ..."

----------

At best, India's economy is 10th in the world. Also, India's economy is smaller than $1.8 trillion, because the Rupee has fallen in value.

India's real 2010 GDP is $1.49 trillion

Forget the IMF numbers. India's rupee has collapsed by 20% in the meantime and it's still falling. Let's update India's current nominal GDP.

For 2010, India's economy was 78.8 trillion rupees (see India's Economy at 80 trillion Rupees and should be at US$ 2 trillion in 2012).

The current exchange rate is 53 Indian rupees per 1 U.S. dollar. It used to be 44 Indian rupees per U.S. dollar, but that was four months ago in August (see Exchange Rates Graph (American Dollar, Indian Rupee) - 120 days - x-rates).

Indian rupee has fallen from 44 to 53 per U.S. dollar in only four months. Indian economic fundamentals are terrible and the consensus is that the rupee will keep falling, possibly to 60 rupees per U.S. dollar.

Using today's exchange rate, India's 2010 GDP is:

78.8 trillion rupees / 52.9375 rupees per U.S. dollar = $1.49 trillion dollars

There are times when you can't rely on IMF data, because the world has changed. India's 2010 GDP is only $1.5 trillion U.S. dollars, not the old $1.63 trillion from the IMF. Also, you should ignore all future GDP projections for India in the current chart. They are all grossly inaccurate. The error is in the hundreds of billions of dollars. Wait one or two years until the IMF corrects their inaccuracies for India's GDP projections.

we dont know for sure.not until april.now the rupee is 49.the data you showed the rupee was 54.that is 5 rupee difference.and its still gonna go down

 

[Martian2]

we dont know for sure.not until april.now the rupee is 49.the data you showed the rupee was 54.that is 5 rupee difference.and its still gonna go down

I know the Rupee has recovered somewhat. Firstly, I didn't want to recalculate all of the numbers. Secondly, the year has just started.

The problems of excessive Indian debt and interest payments will not go away. The recovery of the Rupee to 49 per U.S. dollar could easily be a dead-cat bounce.

 

[lepziboy]

I know the Rupee has recovered somewhat. Firstly, I didn't want to recalculate all of the numbers. Secondly, the year has just started.

The problems of excessive Indian debt and interest payments will not go away. The recovery of the Rupee to 49 per U.S. dollar could easily be a dead-cat bounce.

you`ve got a point

 

[Shaurya]

PPP is a better way to measure economy by some experts, but still, if you consider, GDP, we are 2 trillion dollar economy, manufacturing will soon see some activity. Expect many more good news. As far as economy is concerned, better policies can help even more in economic progress. I have a lot of good expectations from gujrat's GIFT and Dholera and the upcoming NIMZ Mumbai delhi corridor, especially being built for manufacture, would like to see some action in these areas soon..

 

[Shaurya]

Govt to help smaller firms mount global takeovers

NEW DELHI: The government is no longer fighting shy of Indian companies going for overseas acquisitions. Instead, it is preparing a plan aimed at boosting foreign buyouts by smaller players.

Senior government officials told TOI that the department of industrial policy and promotion (DIPP) has identified South East Asia, eastern Europe and Africa as areas where it will assist Indian companies acquire assets as well as companies. It is working out a detailed strategy that is expected to be executed through Invest India, a public-private partnership initiative that was originally aimed at boosting investment into the country.

According to the latest available data, during April-October 2011, foreign direct investment (FDI) outflows from India were estimated at $25.3 billion, while inflows were of the order of $20.3 billion. As a result, there was net outflow of $5 billion despite a 28% decline in investments abroad and a 64% jump in inflows from foreign investors.

During 2010-11, net outflows were of the order of $13.5 billion, with FDI inflows of $30.4 billion. In terms of destination, Singapore, Mauritius and the Netherlands were the favourite overseas places to invest, while services accounted for 59% of the outflows and manufacturing for 28.6%.

Till a few months ago, the perception was that Indian companies were scouting for overseas buys due to an adverse economic environment in the country and policy paralysis domestically. But with recent initiatives, there seems to be an improvement in sentiments which has been helped by a falling inflation graph, RBI's move towards easing interest rates and $2 billion of inflows into stock and bond markets so far in January. As a result, the assessment in the government is that companies will not just ramp up domestic capacity to meet higher demand but even look to acquire assets and companies abroad to boost local operations.

In any case, officials said that with a series of free trade agreements that have been signed, along with several that are in the pipeline, companies will increasingly look to take advantage of the opportunities available internationally. For instance, a company would prefer to import a component or raw material if it is more competitively priced due to low or zero duty.

In addition, in certain sectors such as power, companies with generation units in coastal areas are looking to acquire coal mines abroad. While the trend was earlier limited to larger players, even relatively smaller ones are now joining the global hunt, due to the quality and availability of the fuel in the country. Similarly, several IT and pharma companies are looking at buyouts in Latin America and eastern Europe so that they can more easily meet the legal requirements in Europe and the US.

Officials said foreign missions will be roped in to help in not just alerting companies and the government of opportunities but even match-making may be pushed through Invest India. Invest India is a not-for-profit company where the Centre owns 49% stake and industry chamber Ficci has 51% shareholding. The Centre will dilute stake in favour of states over the next few months although it will continue to hold shares.

Govt to help smaller firms mount global takeovers - The Times of India

 

[Yeti]

Indian lab chemicals to grow faster following crisis in US and EU



Nandita Vijay, Bengaluru
Monday, January 30, 2012, 08:00 Hrs [IST]


Large Indian lab chemicals players are expected to generate significant growth in the wake of a disintegration signs in the European Union and the pressures in the US.

US which holds 37 per cent of the market share for labs chemicals followed by Europe with 30 per cent and Japan with15 per cent at present are all under pressure due to high cost of R&D.

“Current scene for lab chemicals in the global market is one of gloom. But in India, the scenario is one of hope for more growth. Due to various financial changes in the international market, there is a serious blow on the capex purchases which will reduce the growth of lab chemicals market worldwide,” S R Sudhakar, director - Sales & Marketing, Leonid Chemicals Pvt. Ltd. told Pharmabiz.

“This will shift the focus towards the Asia Pacific region comprising India, China, Thailand, Malaysia and Indonesia which is growing much faster than the western market. By 2014 the market size is expected to change, as we will see a fall in growth. US share will dip to 33 per cent, Europe to 27 percent and Japan to 12 per cent. The fall in growth is coming out of significant growth in the Asia Pacific where from a mere 11 per cent it will register 20 per cent growth which is an increase of 9 per cent by 2014,” he added.

Specific to Indian market, recent investment flows into pharma R&D segment, CRAMS, CRO is helping markets to grow in double digits for the next two to three years. Apart from this, government of India has announced a substantial allocation of spending in research for the next 5 years. This will help Indian market to grow faster compared to the west.

At present, most of the major lab chemicals companies are depending on third party manufacturers in India. Few of the manufacturers are already having good facility and another one or two companies are likely to join the bandwagon by setting up manufacturing facilities in the country in the reagent segment. Regarding microbiological reagents, very few manufacturers are there and at present India can produce world class quality products at very competitive cost. This is helping Indian companies to expand fast in the West and also consolidate their position in Indian market by restricting multinational companies (MNCs) in this segment.

As far as bio-reagents are concerned, India is far behind in terms of development and the required technology. In this segment, global companies continue to dominate and take the premium much more than they deserve, he said.

Key challenges for Indian lab chemicals industry is that with the presence of global companies, big players are restricting the growth of smaller players in India. Some of the Indian companies have opted to be third party manufacturers for the global players. On the regulatory front, huge investments are required by the Indian companies. Earlier this was worth it as realizations were better as margins were high. Now due to stiff competition, companies are reluctant to invest because the investments in the production of lab chemicals is no longer viewed as lucrative, stated Sudhakar.



Indian lab chemicals to grow faster following crisis in US and EU