Indian Economy-News & Updates

[ajtr]

I am surprised to know, how Indian agriculture is so much dependent on monsoon. You guys need some real reform in the way your economy is going.

I used to hear the same story of late monsoon in Bangladesh Agriculture when I was a kid. Those days are long gone.

i wonder if you will get the assured supply of your cotton this year?and next year??

 

[IndoUS]

I am surprised to know, how Indian agriculture is so much dependent on monsoon. You guys need some real reform in the way your economy is going.

I used to hear the same story of late monsoon in Bangladesh Agriculture when I was a kid. Those days are long gone.

That's because compared to Bangladesh India is much larger country and parts of the country don't have rivers. Plus if we build a dam to supply and store water you guys start to ****** us saying that we are turning you into a desert. And compared to US were it rains almost anytime. Indian has to wait and rely on the monsoon because that is when it rains and the farmers don't have to pump the water or pay others for supplying them with water.

 

[SpArK]

God's own country Kerala to get its fifth, fully private international airport

CHENNAI: In Kerala, they have their heads in the clouds and eyes on non-residents. A fifth international airport-and India's first wholly private one-is coming up in a state where no highway is more than half as wide as the National Highways Authority of India's standard minimum of 60 metres.

No other state in the country has as many international airports. Tiny Kerala, where narrow roads are the norm due to lack of land, clearly bets its future on its vast army of non-resident Keralites whose remittances account for 31% of the state's GDP.

Fittingly enough, the new airport is coming up at Aranmula in Pathanamthitta district, where a toy plane flown into a crowd could well hit a non-resident Indian.

"It's going to be the most state-of-the-art airport in the state, with two runways and a taxiway," Gigi George, managing director of the Chennaibased KGS Group, the airport's promoter company, told ET.

George said the company has got every clearance in hand and 750 acres have been acquired for the project.

The Aranmula airport will be close to multiple tourism destinations such as Kumarakom, the backwaters of Alappuzha, and the high ranges of Kumily, the Thekkady tiger reserve, and most of all, the pilgrimage centre of Sabarimala Ayyappa temple in Pathanamthitta district.

Kerala has international airports in Thiruvananthapuram, Kozhikode and Kochi, the last being a joint sector project. Another international airport is being developed under publicprivate partnership (PPP) in Kannur.

Kerala State Industrial Development Corporation Executive Director TP Thomaskutty said the Aranmula airport project would be presented at the forthcoming 'Emerging Kerala' global investor meet in September. He said KGS Group had got some of the clearances for the project. Everybody is not convinced about the viability of a fifth airport in one of the tinier states in the country.

"There are limits to Kerala's air traffic growth, because it is not an industrial economy. Road development in the state would serve more people better," said Abraham Joseph, a retired project engineer of Nedumbassery airport in Kochi, who has been associated with two other airports.

"Even the Kannur airport is one too many in the area, considering that the Kozhikode and Mangalore airports are close to the proposed airport," he said.

God's own country Kerala to get its fifth, fully private international airport - The Economic Times

 

[Zeeshan360]

Yep ..
Rightly said IndoUS

 

[Gandhi G in da house]

All the talks about a rising India aren't worth anything，for a single visit to India will make you realize how poor India still is even after the relative fast growth of the last 10 years or so。

The best way to get a grip on where India stands economically in relation to other countries，especially the major emerging ones，is to spend a month in the country。

People will be shocked to learn how far reality is from the self-congratulatory news reporting。

I have heard the same thing about Chine particularly from foreigners who have been there . They always told me that to know what China is really like and how under-developed most of it is , one must travel to Central and Western China to see what it really is like and how different it is to most of the Eastern Chinese coast .

It is better that we just discuss fact based news reports here rather than opinions or hearsay .It will ruin the thread .

 

[black_jack]

Indian stocks 7th best performer globally for 2012

Indian stocks have emerged as the seventh best performer for global investors since the start of 2012, outshining the likes of the US, UK, China and Japan.

Helped by a significant uptrend in the Indian stock market in the past couple of weeks, the Indian stocks have given a year-to-date
return of 12.3% -- which is only next to six other asset classes globally, as per a ranking prepared by Bank of America Merrill Lynch.

The best return for this period has come from the Turkey equities (29.2%), followed by Portugal government bonds (24.7%), Singapore stocks (17.3%), Mexico equities (15.5%), Mexico government bonds (14.7%) and Turkey government bonds (14.6%).

The Indian government bonds are ranked 36th for the year-to-date period in 2012 with a return of 2.9%, which is still better than the corporate bonds of China and Japan, stocks in Canada, Indonesia, Italy, Brazil, Portugal and Spain, as also government bonds in the UK, Canada, Hong Kong, China, Germany, Japan, Spain and Greece.

Those ranked below Indian equities include stocks in the US, Hong Kong, Germany, Korea, Russia, China, Switzerland, UK, Japan and France.

The rankings also take into account the currency exchange rates, as returns are based on the US dollar figures for all the asset classes.

However, Indian stocks have performed badly for a longer time period of the past one year, for which they are ranked at the bottom of the top-50 asset classes globally with a negative return of 23.8%.

This list is topped by Ireland government bonds (24%), followed by the UK government bonds, China corporate bonds, China government bonds and Australia government bonds. Indian government bonds are ranked 40th with a negative return of 10.8% for one-year period.

For shorter time period of one week, Indian stocks are ranked 5th with an 8.6% gain, after Greece, Portugal, Spain and Italy equities.

The study said that the equity markets globally have attracted net fund inflow of $840 million so far in 2012, although India has seen a net outflow of $297 million for this period.

Indian stocks 7th best performer globally for 2012 - Hindustan Times

 

[kkacer]

GM car sales in India decline by 10 percent

GM India sold 7,364 cars during the month of June 2012, a decline by almost 10% as in the same month last year.

General Motors India is not optimistic of sales improving drastically during the upcoming festive season. Recent worker's strikes, dismal market sentiments and slugging sales coupled with high fuel costs and rising interest rates and taxes are all causing concerns within the company.

 

[Bobby]

India's forex reserves grow by $1.36 billion - The Times of India

 

[Adnan Faruqi]

Firms see India 3rd most-favoured destination: UN report

NEW DELHI: Major global companies consider India their third most favoured destination after China and the United States, a U.N. report said on Thursday, and investment inflows could increase by more than 20 percent both this year and next.

Foreign direct investment (FDI) flows into India leapt 30 percent to nearly $32 billion in 2011, though held back by slow pace of reforms, it still remains a long way down the league table of FDI recipients.

China drew $124 billion last year, while Brazil attracted nearly $67 billion and Russia $53 billion..

"The FDI inflows into India can go up by 20-25 percent this year and by about 20 percent next year, if the present trend continues," said Nagesh Kumar, Chief Economist, United Nations Economic and Social Commission for Asia and the Pacific, while releasing the UNCTAD's World Investment Report 2012.

Some 179 global companies - from the manufacturing, services and primary sectors - were surveyed between February and May, on their favoured investment destinations for 2012 to 2014.

Kumar said FDI growth seems to be keeping its momentum in 2012, referring to furniture maker IKEA and Coca Cola's (KO.N) recent announcements to pump nearly $5 billion combined into India over the long term.

Though India's economic growth slowed to 5.3 percent in the March quarter, its slowest in nine years, its trends still compared favorably, Kumar said.

"Compared to many other places, India is doing better in terms of growth," he said, adding global investors were looking at the long term prospects and wide market in Asia's third largest economy.

The report said worldwide FDI flows exceeded the pre-financial crisis average in 2011, reaching around $1.5 trillion, despite turmoil in the global economy, and is projected around $1.6 trillion this year.

Global companies are sitting on hefty cash reserves and waiting for the euro zone situation to stabilise before investing, he said.

Earlier this year India allowed full foreign ownership of single brand retailers, although late last year it backtracked on a plan to allow in foreign supermarkets.

Many investors are hoping it revives that plan soon, after Prime Minister Manmohan Singh recently took over the finance portfolio and talked about the need to address problems in the insurance and mutual fund industries, as well as taxation.

Kumar said corporate investors look at long term prospects and recent controversies over retroactive tax proposals broadly aimed at taxing companies like Vodafone (VOD.L), or proposed general anti-tax avoidance rules (GAAR) would not hurt India's prospects as an investment destination.

Firms see India 3rd most-favoured destination: UN report - The Times of India

PressTV - Report names India third most favored investment destination

 

[cloud_9]

ONGC's Tripura unit to release gas from tomorrow to ONGC-Tripura Power Corporation

AGARTALA: ONGC's Tripura unit would start releasing gas tomorrow to the ONGC-Tripura Power Corporation (OTPC) for the first phase of the 726.6-MW gas-based power project at Palatana in Gomati district, official sources said today.

K Satyanarayana, manager, ONGC, Tripura Asset, will inaugurate the event tomorrow, officials said and added the first unit is likely to start generation by August.

ONGC-Tripura Power Corporation (OTPC) is a 726.6 MW gas-based power project at Palatana would cater to the needs of power-deficit areas of north-eastern states of the country.

Assam, Mizoram, Meghalaya and Manipur will buy power from Palatana power plant.

"This is one of the most prestigious ventures in the entire north-east region with an investment to the tune of Rs 9,000 crores which is the highest-ever in the state of Tripura.

"The project, upon implementation, shall make the state power surplus and earn revenue by power wheeling to other states, sources said.

State-run ONGC, major partner of the OTPC power project, would supply natural gas extracted from Tripura.

Sources said, 2.6 million standard cubic metre of gas per day (mmscmd) would be required when it would start generation in full scale and added it would take a few months more to make it fully operational.

Prime Minister Manmohan Singh had laid the foundation stone for the project, Palatana, 60 km from the capital, Agartala in 2005.

Northeast Power Trading Company has already started erecting transmission line from Palatana to Bongaigaon in Assam, ONGC officials said.

Except for Burnpur, all expansion programmes on schedule: SAIL

NEW DELHI: State-run Steel Authority of India today said its Rs 72,000-crore capacity expansion programme is more or less on schedule except for the Burnpur project which is facing delay of more than one year.

"But for Burnpur, in all other places, expansion by and large is in time," SAIL Chairman C S Verma told reporters in an interview.

"As Burnpur is concerned, there could not be any second opinion. Burnpur is delayed more than a year. The delay is due to unexpected molten debris at the plant site, which expanded the scope of work of the project," Verma said. The debris could not be found when soil testing was done at the 100-year old site, he added.

The delay has also led to Rs 2,000-crore cost overrun for the company which would now have to fork out Rs 16,408 crore for increasing the plant capacity by three million tonnes per annum (mtpa).

SAIL had embarked on a Rs 72,000-crore expansion plan in 2009 to increase capacity to 23.46 mtpa from 13.82 mtpa now by March, 2013.

Expansions are being carried in all its five integrated facilities and three alloy steel making facility.

Recently Steel Minister Beni Prasad Verma had criticised SAIL for delay in expansions.

"The original plan was to complete all the expansions by March, 2013. However, this may not happen. There could a few months here and there. If you compare our expansion with RINL and other private sector companies, we are far ahead of. In all our plants, people are working in three shifts to complete the expansions," the SAIL Chairman Verma said.

SAIL has already placed orders worth Rs 59,000 crore and and has spent over Rs 38,500 crore for expansion.

The plan also includes Rs 10,500 crore expense on mines. However, it could not spend Rs 5,000 crore ear marked for Rowghat mine development in Chhattisgarh due to naxalite problem.

"Now, we are at very advanced stages of completion of the modernisation plan. In the current fiscal year itself, we are going to commission two large size blast furnaces, out of the proposed three. It will take our capacity to 19 mtpa," the SAIL Chairman said.

he said his top-most priority now is to ensure that the modernaisation plan is completed as fast possible so that the company reaps the benefit of these investments from a demand-hungry market.

 

[jha]

Bihar to spend in 5 years what Gujarat did in 50 years

An ongoing exercise at the Planning Commission lays bare Bihar's ambitious growth agenda. Its total plan outlay for the 12th five-year plan (2012-17) at Rs 2.69 lakh crore is more than what a fast growing state like Gujarat has spent in the last 50 years.

Bihar's projected expenditure in the next five years will be the third highest among all states, next only to Andhra Pradesh and Maharashtra.

The increase in Bihar's plan expenditure is more than 350% during the 12th plan period with its GDP expected to grow at 13%. The projection seems realistic as during the 11th five-year plan, Bihar's economy expanded an average 12% when all other states grew in single digit, including Gujarat (9.6%) and Maharashtra (8.6%).

Gujarat's total plan outlay for the 12th five-year plan has been projected at Rs 2,51,000 crore, double of what it had spent in the previous five years (Rs 1,28,500 crore). Between 1961-2011, Gujarat's plan expenditure was Rs 2,30,256 crore.

Currently, states are engaged with the Planning Commission for approval of their outlays for the 12th five-year plan. Most states have projected their expenditure and how they will raise these resources, an estimated borrowing and demand for central contribution.

Bihar has promised to fund a major part of its huge expenditure, Rs 1.60 lakh crore or 59% of the total plan outlay during 2012-17, through its own resources and 20% through borrowings and the remaining 21% or Rs 56,394 crore through central contribution.

This may not be an unrealistic target given the track record of Bihar's resource mobilization. During the 11th five-year plan (2007-12), Bihar funded 54% of its total plan expenditure through its own resources while its borrowing was pegged at 21% and the central contribution was only Rs 18,822 crore or 25% of the total outlay. On other parameters too, Bihar has performed well. The state's fiscal deficit was 2.9% compared to the Centre's 5.7% in 2011-12.

Andhra Pradesh ranks top among states with highest plan expenditure projected at Rs 3.73 lakh crore for the plan period of 2012-17. Maharashtra is second with Rs 2.75 lakh crore. Rajasthan, the largest state in terms of area, has projected its plan expenditure at Rs 1.94 lakh crore just below Karnataka's Rs 1.95 lakh crore.

Bihar is banking on a rainbow revolution, aiming 7% increase in agricultural production to achieve its target growth while continuing its focus on infrastructure development and industrialization. A Delhi like Metro network for capital Patna and a brand new airport are some of the planned infrastructure development initiatives the state has in mind.

It has already secured committed central assistance of Rs 20,000 crore for the 12th plan period. The state's social sector spending will constitute at least 35% of the total plan outlay in education, health, drinking water supply and sanitation.

 

[laman12345]

Mumbai - Rain deficit in increased to 41.92% on Sunday

July 09, 2012

The rain deficit in Mumbai increased to 41.92% as the city received scanty rainfall on Sunday. According to the India Meteorological Department (IMD), till Sunday the deficit in rainfall since the onset date of June 1 rose to 436mm in south Mumbai.


Weak monsoon pushes city rain deficit to 42% - Hindustan Times

Getting worse and worse..

 

[rcrmj]

Mumbai - Rain deficit in increased to 41.92% on Sunday

July 09, 2012

The rain deficit in Mumbai increased to 41.92% as the city received scanty rainfall on Sunday. According to the India Meteorological Department (IMD), till Sunday the deficit in rainfall since the onset date of June 1 rose to 436mm in south Mumbai.


Weak monsoon pushes city rain deficit to 42% - Hindustan Times

Getting worse and worse..

India's primitive factor driven economy is pretty much based on good or bad seasons, I believe 2012 is a very difficult year for them

 

[black_jack]

Mumbai - Rain deficit in increased to 41.92% on Sunday

July 09, 2012

The rain deficit in Mumbai increased to 41.92% as the city received scanty rainfall on Sunday. According to the India Meteorological Department (IMD), till Sunday the deficit in rainfall since the onset date of June 1 rose to 436mm in south Mumbai.


Weak monsoon pushes city rain deficit to 42% - Hindustan Times

Getting worse and worse..

thread is about Economy , please stop whether reports

 

[laman12345]

thread is about Economy , please stop whether reports

India's economy is highly dependent on weather, grow up