Indian Economy-News & Updates

[illusion8]

Credit rating agency Standard and Poor's has warned that India may become the first among the BRIC nations – Brazil, Russia, India and China – to lose its investment grade rating.
The credit rating agency cited the slowing GDP growth and political roadblocks to economic policymaking as some of the factors that could lead to such an action.
However, Union Finance Minister Pranab Mukherjee dismissed the S&P's contention.

The S&P in its report said that the crux of the current political problem for economic liberalisation is the nature of leadership within the central government and not 'obstreperous' allies or an 'unhelpful' opposition.
"Slowing GDP growth and political roadblocks to economic policy making could put India at risk of losing its investment grade rating", the S&P said in its report -'Will India Be The First BRIC Fallen Angel?'
Standard and Poor's, which had lowered India's rating outlook to 'negative' from 'stable' in April, said the Congress party is divided on economic policies and there is substantial opposition within the party to any serious liberalisation of the economy.
In a strong statement, Mukherjee said the government is fully seized of the situation and expressed confidence that there will be a turnaround in the country's growth prospects in the coming months.
"This (S&P report) is not based on a fresh rating action...Between April 2012 and now there are no significant events to indicate that the economy's vulnerability to shocks has increased, though the growth numbers for the fourth quarter 2011-12 have come below the expectations," he said.
Mukherjee recalled that on April 25, 2012 S&P had issued India's sovereign credit rating reaffirming its long-term sovereign credit rating at BBB(-). It had, however, revised India's outlook to negative from stable.
The S&P report said, "paramount political power rests with the leader of the Congress party, Sonia Gandhi, who holds no Cabinet position, while the government is led by an unelected Prime Minister Manmohan Singh, who lacks a political base of his own".

Confident Pranab rejects S&P downgrade threat - Business News - IBNLive

 

[idune]

India could be 1st BRIC to lose investment grade-S&P

MUMBAI, June 11 | Mon Jun 11, 2012 3:27pm IST

(Reuters) - Standard & Poor's said on Monday that India could become the first of the so-called BRIC economies to lose its investment-grade status, sending the rupee and stocks lower, less than two months after cutting its rating outlook for the country.

"Slowing GDP growth and political roadblocks to economic policymaking are just some of the factors pushing up the risk that India could lose its investment-grade rating," the ratings agency said in a statement issued Monday on a report dated June 8.

India's sovereign rating is BBB-, the lowest investment grade rating, and in April S&P lowered its outlook on the rating for Asia's third-largest economy to negative from stable.

S&P said the new report gave further detail as to why India's investment-grade rating could be at risk.

Indian stocks cut gains after the S&P statement, while the rupee skidded to 55.55 to the dollar from 55.45 earlier after the S&P statement. The benchmark 10-year bond yield <IN087921G=CC > showed a more muted reaction, trading down 1 basis point at 8.34 percent from its previous close.

"While INR and bonds moved on this S&P headline, it may not have been warranted. While the report is new, the content in itself is probably not," said Kumar Rachapudi, fixed income strategist at Barclays Capital in Singapore.

"The discussion in this report has largely been covered in their previous report when S&P revised outlook in April."

The two analysts who wrote the report could not immediately be reached for comment.

India recently posted March quarter GDP growth of 5.3 percent, its weakest in nine years and far below expectations.

"Failure to advance with more liberalization might reduce India's long-term growth potential and thus hurt its sovereign rating," the report said.

The so-called BRIC economies consist of Brazil, Russia, India and China.

India has the lowest rating from S&P of all the BRIC countries, and is the only one with a negative outlook from the rating agency, it said in the report. (Reporting by Swati Bhat, Suvashree Dey Choudhury, Henry Foy and Neha Dasgupta; Writing by Tony Munroe; Editing by Aradhana Aravindan)

India could be 1st BRIC to lose investment grade-S&P | Reuters

 

[Koovie]

India could be 1st BRIC to lose investment grade-S&P

MUMBAI, June 11 | Mon Jun 11, 2012 3:27pm IST

(Reuters) - Standard & Poor's said on Monday that India could become the first of the so-called BRIC economies to lose its investment-grade status, sending the rupee and stocks lower, less than two months after cutting its rating outlook for the country.

"Slowing GDP growth and political roadblocks to economic policymaking are just some of the factors pushing up the risk that India could lose its investment-grade rating," the ratings agency said in a statement issued Monday on a report dated June 8.

India's sovereign rating is BBB-, the lowest investment grade rating, and in April S&P lowered its outlook on the rating for Asia's third-largest economy to negative from stable.

S&P said the new report gave further detail as to why India's investment-grade rating could be at risk.

Indian stocks cut gains after the S&P statement, while the rupee skidded to 55.55 to the dollar from 55.45 earlier after the S&P statement. The benchmark 10-year bond yield <IN087921G=CC > showed a more muted reaction, trading down 1 basis point at 8.34 percent from its previous close.

"While INR and bonds moved on this S&P headline, it may not have been warranted. While the report is new, the content in itself is probably not," said Kumar Rachapudi, fixed income strategist at Barclays Capital in Singapore.

"The discussion in this report has largely been covered in their previous report when S&P revised outlook in April."

The two analysts who wrote the report could not immediately be reached for comment.

India recently posted March quarter GDP growth of 5.3 percent, its weakest in nine years and far below expectations.

"Failure to advance with more liberalization might reduce India's long-term growth potential and thus hurt its sovereign rating," the report said.

The so-called BRIC economies consist of Brazil, Russia, India and China.

India has the lowest rating from S&P of all the BRIC countries, and is the only one with a negative outlook from the rating agency, it said in the report. (Reporting by Swati Bhat, Suvashree Dey Choudhury, Henry Foy and Neha Dasgupta; Writing by Tony Munroe; Editing by Aradhana Aravindan)

India could be 1st BRIC to lose investment grade-S&P | Reuters

has been posted more than 3 times.... better care for your own coutry first

 

[Holmes]

Canada offers natural resources to India to boost ties

Has accelerated its efforts to capitalise on the trade potential of India
Press Trust of India / Toronto Jun 12, 2012, 11:26 IST

The government of Canada has accelerated its efforts to capitalise on the trade potential of India and is ready to meet the country's need for natural resources, an official said.

"As India's need for energy, minerals, metals and wood products increases, Canada is well positioned to be a key supplier," Minister of Natural Resources Joe Oliver said while highlighting the importance of the natural resource sectors in bilateral trade and collaboration with India.

He was speaking at the Indo-Canada Chamber of Commerce's (ICCC) annual awards ceremony and gala night held on Sunday.

"Given that one in five jobs and more than 60 per cent of Canada's economy depend on trade, deepening our trade partnership with India is vital to Canada's economic growth," the Minister said.

Natural resources already comprise half of all Canada's exports to India.

Canadian exports to India have increased over 26% last year, and that number is expected to rise as India's economy is expected to remain among the fastest growing in the world.

"Canada is building strong ties with India to share science, technologies and trade through the Canada-India Energy Forum, memorandums of understanding and our annual bilateral merchandise trade agreements," Oliver said while presenting ICCC's annual awards.

"We are negotiating a Comprehensive Economic Partnership Agreement that could fundamentally change the size and scope of two-way trade.

"The Government of Canada is renewing Canada's regulatory system to improve Canada's ability to attract investment, create jobs, build long-term prosperity and encourage competitiveness," he said.

The Minister presented the ICCC annual awards to winners of eleven categories. Over 1,200 Indo-Canadians, politicians and dignitaries attended the function.

Canada offers natural resources to India to boost ties

 

[Koovie]

Industrial production growth slows to 0.1% in April

Industrial production growth rate slowed down sharply to 0.1 per cent in April due to contraction in capital goods and dip in manufacturing output, reflecting the sluggish state of the economy that may prompt RBI to cut lending rates.

Growth in factory output, as measured by the Index of Industrial Production (IIP), was 5.3 per cent in April last year.

The manufacturing sector, which constitutes over 75 per cent of the index, grew barely 0.1 per cent, as against 5.7 per cent in April 2011, according to the official data released on Tuesday.

The capital goods output declined by 16.3 per cent as against a growth of 6.6 per cent in the same month last year.

Mining output contracted by 3.1 per cent in April, as against growth of 1.6 per cent in the same month a year ago.

The slowdown in industrial production is likely to put pressure on the Reserve Bank to cut lending rates at its mid-quarterly review on June 18.

However, consumer goods production showed a faster growth rate of 5.2 per cent in April, compared to 3.2 per cent in the same month last year.

The consumer durables segment also expanded by 5 per cent in April, as against 1.6 per cent in the same month last year.

Power generation witnessed a slower growth of 4.6 per cent during April, compared to 6.5 per cent in the same month a year ago. In all, 12 of the 22 industry groups in the manufacturing sector have shown positive growth during April as compared to the same month a year ago.


The Hindu : Business / Industry : Industrial production growth slows to 0.1% in April

still the government is doing nothing................

 

[IndoCarib]

Indian nutraceutical market to grow to $ 2,731 million in 2016 - The Economic Times

 

[cloud_9]

'India sees renewed uptick in M&As, seals $16 bn deals'

SINGAPORE, JUNE 12: Merger and Acquisition activities in India totalled $ 16 billion involving 154 transactions for the year to April 30, 2012, said global financial consultancy Kroll Advisory Solutions.

“After a dip in deal volume in late 2011, early 2012 has seen an uptick in deal activity as foreign investors continue to seek out buys in the country,” Kroll said.

It said strategic international investors remain focused on the long-term growth story of India, which recently was battling a slowing global economy and harnessing inflation, it said.

Interestingly, bidders had scaled back deal values resulting in an average deal size of $ 128 million from January through April 2012, perhaps a way to gain a strategic foothold in the region during times of uncertainty, said Kroll in Spotlight Asia, quarterly newsletter for M&A practitioners.

In terms of bidder geography, inbound deal flow was dominated by the US acquirers who transacted 56 times over the 12 month period, accounting for 36 per cent of total activity by deal volume and spending $ 2.9 billion.

Bidders from the UK were the top geography as measured by deal value with $ 6.5 billion in acquisitions.

The largest deal for the period was a $ 5.5 billion stake acquisition of Vodafone Essar, as UK-based Vodafone increased its stake in the company, despite a tax battle with the Indian government over the stake acquired in 2007.

“Despite some near-term challenges, India is a promising place to invest and foreign perceptions remain strong on a macro level.

Corruption and legal battles are nothing new in India, but they are now coming to the forefront as the economy slows,” said Ms Reshmi Khurana, India country head for Kroll Advisory Solutions.

“The bottom line is that fundamentals are strong and acquisitive investors will stay focused on the fundamentals,” said Ms Khurana.

While the business environment is changing, bribery and corruption still pervade the business system in India and mitigating this requires careful due diligence and constant monitoring, said Kroll.

US oil majors eye TAPI gas project

NEW DELHI, JUNE 12: Turkmenistan's South Yolotan – Osman gas fields, which will be source for the Turkeminstan-Afghanistan-Pakistan-India (TAPI) Gas Pipeline project, is attracting ExxonMobil's and Chevron's of the world for upstream participation.

However, the Turkmen authorities have made it clear that no equity participation in the upstream development of this giant field, recently renamed Galkynysh, could be considered, according to their present Government policy. The Turkmen will offer service contracts for this purpose, sources privy to the development said.

Phase I of South Yolotan is being developed (for gas supplies to China beginning 2013) on service contract basis. Those engaged in the job include Hyundai, Petrofac, and CNPC. Phase II of this giant field is for supplies to TAPI pipeline.

In a ‘service contract', payment is made in accordance with the services rendered. However, the company rendering such services is not entitled to any share in oil/gas in that block.

While in a production-sharing agreement (PSA), the company concerned takes calculated risk in investing in an upstream venture and is entitled to its share (as stated in the agreement) in the resulting oil/gas production.

The licensing round in India is based on production-sharing contracts. This helps as the company brings both investment and technology for upstream development and if commercial discovery is made, for the development of the field. This also helps in increasing the pace of upstream work.

Most countries award PSAs but a few countries go along the service contract route. Iran and Turkmenistan (for onshore fields) are among the few favouring service contracts.

Sources said that pipeline building and operation is in itself an economically viable proposition. Some of these global majors have envisaged interest for participating in the TAPI pipeline.

“But, we have to await response during the roadshows to decide further,” the sources said.

The roadshows will be held at Singapore, New York, London and Ashgabat, in a quick succession in September.

The four member-countries of TAPI will provide the agreed set of their respective information, to be put in a package, by July 15 by ADB for dissemination, prior to the roadshows, among all those interested in participating in the pipeline consortium.

“Though the TAPI member-countries are keen to be minority partners in the consortium, we need one big company to act as a prime mover to take this project forward,” sources said.

 

[SpArK]

Indian Economy to Grow 6.9% in 2012-13: World Bank

Indian Economy to Grow 6.9% in 2012-13: World Bank | news.outlookindia.com

 

[idune]

India's industry slows in April, nearly coming to a stall

Published: Jun 12, 2012 - 7:49 AM GMT

April output of Indian industry was almost flat from a year earlier, as manufacturing, the largest part of the economy, rose by a mere 0.1% year-over-year.

Delhi - Activity in the industry of the second most populous country in the world has largelt stagnated in April compared to a year ago, data published by the Central Statistics Office of the Ministry of Statistics and Program Implementation suggested on Tuesday.

The quick estimate of the Index of Industrial Production, measuring the Asian giant's output in industry, for April stood at 166.4 points, which was 0.1% higher compared to the level recorded in the same month a year ago.

Manufacturing, which accounts for over 75% of the Indian economy, picked up by 0.1% in April, compared to the same month of the previous year, according to the quick estimate.

Meanwhile, the sector breakdown showed 12 out of 22 industry groups in the manufacturing sector have shown positive growth over the surveyed period.

When compared to a year earlier, April's estimate showed that the mining industry, the second-largest component of India's economy, shrank by 3.1%, while the electricity industry, the economy's third-largest part, rose by 4.6%.

The use-based classification suggested that capital goods and intermediate goods production shrank by 16.3% and 1.4%, respectively in April, compared to the same month of the preceding year, while the creation of basic goods increased by 2.3% over the said period.

India&#39;s industry slows in April, nearly coming to a stall - WBP

 

[IndoCarib]

For you all trolls out there, the latest on Indian economy as reported by world bank is here !

India to grow 6.9 percent in 2012-13: World Bank

http://www.firstpost.com/economy/india-to-grow-6-9-percent-in-2012-13-world-bank-341316.html

 

[Gandhi G in da house]

India's industry slows in April, nearly coming to a stall

Published: Jun 12, 2012 - 7:49 AM GMT

April output of Indian industry was almost flat from a year earlier, as manufacturing, the largest part of the economy, rose by a mere 0.1% year-over-year.

Delhi - Activity in the industry of the second most populous country in the world has largelt stagnated in April compared to a year ago, data published by the Central Statistics Office of the Ministry of Statistics and Program Implementation suggested on Tuesday.

The quick estimate of the Index of Industrial Production, measuring the Asian giant's output in industry, for April stood at 166.4 points, which was 0.1% higher compared to the level recorded in the same month a year ago.

Manufacturing, which accounts for over 75% of the Indian economy, picked up by 0.1% in April, compared to the same month of the previous year, according to the quick estimate.

Meanwhile, the sector breakdown showed 12 out of 22 industry groups in the manufacturing sector have shown positive growth over the surveyed period.

When compared to a year earlier, April's estimate showed that the mining industry, the second-largest component of India's economy, shrank by 3.1%, while the electricity industry, the economy's third-largest part, rose by 4.6%.

The use-based classification suggested that capital goods and intermediate goods production shrank by 16.3% and 1.4%, respectively in April, compared to the same month of the preceding year, while the creation of basic goods increased by 2.3% over the said period.

India's industry slows in April, nearly coming to a stall - WBP

Considering that in March the IIP contracted by 3.5 % and growth rate of 0.1% is not bad . Wah Kya din Aa gaye hain .

 

[idune]

As funds flee, India&#8217;s pain is southeast Asia&#8217;s gain

Reuters
Posted online: 2012-05-16 03:34:06+05:30

Hong KongSoutheast Asian nations are swallowing an outflow of money from India, as foreign investors lose patience with its policy paralysis and slowing growth and aim instead for more promising emerging markets, such as Indonesia.

Corruption scandals and high inflation have added to India&#8217;s woes, which has seen growth slow to a three-year low while the fiscal deficit widened to 5.9% of GDP in the last financial year. &#8220;India was sold on the promise of high growth, which simply hasn't panned out over the past four years," said Gautam Prakash, founder of US-based hedge fund Monsoon Capital.

Foreign investors pulled a net $540 million out from India in March and April, compared with $13 billion in inflows in January-February.

Foreign portfolio flows into Indian stocks have dropped 99% to just R517 crore since the Union Budget that largely disappointed investors, compared with R42736 crore in 2012 before the Budget. Among the most significant developments from the shift has been the direction in which money is headed &#8212; with a big chunk flowing to Jakarta and other southeast Asian capitals.

Two provisions put forward in the Budget to tax indirect investments and combat tax evasion were the last straw for some global mutual funds, prompting an acceleration of money leaving India.

While the provisions were later put on ice, the prospect that such a tax could be proposed in India was enough for some investors to send their Asia-allocated money further east.

&#8220;You&#8217;re seeing a situation where the &#8216;I&#8217; in BRIC is being replaced by Indonesia,&#8221; said Tim Condon, head of research and strategy for Asia at ING. An emerging market brochure distributed by Franklin Templeton last month had data on India missing from a world map. From a global leader in emerging market investing, led by omnipresent guru Mark Mobius, that omission was telling.

India exposure in Asia&#8217;s biggest equity fund, the $18 billion Templeton Asian Growth fund, dropped to 16% of its assets at the end of March from nearly 20% a year ago, while exposure to Association of Southeast Asian Nations countries rose to 35% from 31% during the period.

An Asean-focused equity fund launched by Daiwa Asset Management started with about $366 million in February and has since grown to manage about $430 million, while Fidelity Funds-Asean has seen a net inflow of nearly $250 million in the last year. The bigger Asean markets do not necessarily offer a compelling case on valuation grounds. &#8220;Generally, we are more negative on India than we are positive on the alternatives, such as Indonesia and the Philippines, where we feel the markets have perhaps run ahead of themselves,&#8221; said David Baran, co-founder of Tokyo-based hedge fund Symphony Financial Partners. &#8220;However, the Asean alternatives do have more positives and less negatives than India and we think that foreign investment outflows from India into the Asean alternatives are highly likely to increase if anything.&#8221;

Indian shares trade at price to book value of 1.9 times, higher than 1.4 times for Asia Pacific shares as a whole, but less than 3.1 times for Indonesia, 2.2 times for Thailand and 2.5 times for Philippines.

As funds flee, India’s pain is southeast Asia’s gain

 

[kkacer]

Very dangerous, Indian goverment should fix it as soon as possible

 

[CorporateAffairs]

Chandrababu naidu minted crs of money in the name of development and IT. He in the name of benamis done real estate business in Madhapur, Gachibowli, and other IT areas.

He allotted all contracts to his benamis, his partymen. In backdoor arrangements he minted money from Reliance by allotting them contracts of natural gas in Coastal regions through illegal ways.

High court ordered CBI enquiry into his illegal assets twice. But somehow he got "STAY" from supreme court. Orelse he would be behind the bars with Raja and Kalmadi!

 

[cloud_9]

Very dangerous, Indian goverment should fix it as soon as possible

back @laman12345 or @catcatsunny.