Indian Economy-News & Updates

[DARIUS]

^^^What India is and what India could become people would see in time!!Until then whatever makes people filled with envy and jealousy feel better and vent out the steam is fine for me. . . . BTW Pakistani members pls refrain from commenting on this thread cause I think Pakistan is the last country from whom we need advise on how to take care of our economy!!
BTW here are some links :

Don’t Fall for This China Head Fake
Published Wed, Jan 25th, 2012 Louis Basenese
Since August 2011, I’ve been ushering in proof that the China growth story is slowing down.Now we have even more proof…
Last week, China’s statistics bureau revealed the economy grew by 8.9% in the fourth quarter – the slowest pace in 10 quarters. And full-year GDP growth checked in at 9.2%, down from 10.4% in 2010.
What amazes me, though, is that investors applauded the figures as a “clear” indication that China is headed for a steady slowdown, rather than a hard landing. And, in turn, they bid up share prices in Shanghai.
Can you say, “Denial?”
Stock Markets Don’t Lie
Remember, stock markets are forward-looking beasts. And ever since April 2011, the Shanghai Composite Index has been dropping.
That’s a much clearer signal to me that more trouble lies ahead for the world’s second-largest economy than one quarter’s worth of economic data.

So what do I make of the latest rally? It’s nothing more than a head fake. So don’t fall for it – the economic data and commentary coming out of China continues to indicate that growth is cooling.
Consider:
China’s richest man and Chairman of Sany Heavy Industry Co., Liang Wengen, recently said that construction machinery demand is weak. If anyone has a clue about construction demand in China, I’d say it’s Mr. Wengen. His comments don’t exactly instill optimism, now do they?
In 2011, home sales rose at their slowest pace in three years. And real estate prices are plummeting, too. For example, Sanya, China’s hottest property market in 2010, witnessed a 28% decline in prices in 2011 (through November), according Centaline Property Agency.
I’m not alone in my bearish thinking here, either. After the latest data release, an IHS Global strategist said China’s “economy is in the midst of an aggressive slowdown.” Preach it, brother!
Be Wary of the China Skyscraper Boom
If you have any lingering doubts that China is destined for a prolonged slowdown, consider the obscure, yet informative, Barclays Skyscraper Index.
It measures construction activity and reveals that construction of the tallest buildings in the world coincides with economic crises.
For example, the construction of three record-breaking buildings – 40 Wall Street, the Chrysler building and the Empire State building – coincided with the Great Depression
Well, guess what? There are about 125 skyscrapers currently under construction in China, with 65 set for completion over the next six years. In comparison, India is only planning to complete 14 skyscrapers in the next five years.
When so many skyscrapers go up, the Barclays Index suggests that after so much misallocation of capital, the economy is certain to come down.
So look out below!
Bottom line: If you still have a significant amount of money invested in Chinese equities, take heed. The latest economic data, stock market activity and the Barclays Skyscraper Index imply a significant slowdown could be in the works.
Ahead of the tape,
Louis Basenese

 

[kkacer]

India's revised growth data, raises fears

New Delhi - India has quietly revised a slew of key economic data ahead of new GDP figures due out on Friday, a move economists say raises questions about the reliability of the country's financial records.

Among the most significant alterations, the CSO sharply downgraded growth in the last quarter of the financial year to March 2009from 5.9% to 3.5%.

Rather, one economist, who did not wish to be named, said he felt the changes reflected "incompetence".

"What's the point of taking any (policy) decisions based on this kind of data?" asked Manas Chakravarty, a columnist at India's Mint financial newspaper.

India's revised growth data, raises fears | Fin24



India's revised growth data, raises fears

New Delhi - India has quietly revised a slew of key economic data ahead of new GDP figures due out on Friday, a move economists say raises questions about the reliability of the country's financial records.

Among the most significant alterations, the CSO sharply downgraded growth in the last quarter of the financial year to March 2009from 5.9% to 3.5%.

Rather, one economist, who did not wish to be named, said he felt the changes reflected "incompetence".

"What's the point of taking any (policy) decisions based on this kind of data?" asked Manas Chakravarty, a columnist at India's Mint financial newspaper.

India's revised growth data, raises fears | Fin24



Cheater and Incompetent INDIANS & SHAME ON YOU!

Hmm.... Interesting.

The latest Indian GDP data comes in at 5.5% (let's just assume that it is true) Rupee has been hovering around 55-56 which indicates no significant capital inflows. Inflation is at around 7% which is still sky high. The Indian forex reserve has dipped to 288 billion.

It is quite possible that the Indian government is just printing cash.........

You are totally Right! Shame on India Government and Big Mouth Indians

 

[DARIUS]

I have noticed a particularly amazing and funny trend on this forum.Whenever there's some bad or negative news from India people tend to get all over it and over-excited and joyous!!I would like to remind them that the growth story of any country should be sustainable and not dictated by it' political masters.Things are ought to be made when they are required.Empty malls and Ghost cities and a Third World country with a First World Infra is the last thing that India need's!!BTW why is there so much blabbering going on about revised growth data??If the intention on the part of GoI had been to hide anything they would have never gone for a revision of the key factors rather everything would have been brushed under the carpet like thy do in some countries.This is a figure from the last Q of the FY 2008-09 I guess??If the Govt is willing to revise older figures than why the hell should there be a question mark on the current figures?? .But perhaps people are more interested to see some negativity in India rather than look into facts!!:mrgreen:

 

[cloud_9]

Govt nod to Rs 23,000 cr plan for hybrid vehicles

The government has approved a project for the promotion of environmentally-friendly electric and hybrid vehicles , at a total cost of Rs 23,000 crore ($4 billion) which will be invested over a period of eight years.

"The first meeting of the National Council for Electric Mobility (NCEM) has adopted the National Electric Mobility Mission Plan 2020 (NEMMP 2020)," Vikram Gulati, director in the ministry of heavy industries and public sector enterprises, told IANS.

"The NEMMP is a vision document that envisages promotion of electric and hybird vehicles in the country in the next eight years," he said.

"NEMMP 2020 objectives are meant to be achieved by state help that includes provisions for setting up of a manufacturing units , acquisition of technologies, setting up of infrastructure and demand creation," Gulati said.

According to Gulati, a total amount of Rs 20,000-23,000 crore has been envisaged for the NEMMP 2020 which also includes private investments.

The document envisages penetration of 60-70 lakh electric and hybrid vehicles, including passenger cars, two-wheelers, trucks and three-wheelers by 2020.

Currently the electric and hybrid vehicles have less than one per cent of the overall 17 million units per annum automobile market in the country.

Cost savings by the way of mitigating the use of fossil fuels is estimated to be triple the actual amount invested in the scheme.

The vision document also envisages close government and industry collaboration in rolling out initial projects. The NEMMP 2020 is part of the automotive mission plan (AMP) 2016 under the national mission for electric mobility.

Gulati said that the ministry will soon finalise several schemes under the NEMMP 202 which will then be sent for a final approval of the government.

"The vision document will now be converted into schemes and will be sent for final government approvals. We expect the process to take a minimum of three-six months," Gulati said.

Automobile manufacturers such as passenger car major Maruti Suzuki, Tata Motors, Hyundai Motor, General Motors, Toyota Kirloskar Motor and Mahindra and Mahindra are already working on vehicles powered by electric and hybrid technologies.

Even two-wheeler manufacturers like Hero MotoCorp and TVS Motor had shown hybrid models of their scooters at the Delhi Auto Expo held earlier this year.

Economic growth slows to 5.5% in first quarter

Showing persistent sluggishness, economy grew by 5.5 per cent in the April-June quarter this fiscal due to poor performance of manufacturing, mining and farm sectors.

The gross domestic product (GDP) had expanded by 8 per cent in the April-June quarter of 2011-12.

During the quarter ended June 30, the manufacturing sector grew marginally by 0.2 per cent, against 7.3 per cent growth in the same period of 2011-12, according to the official data released on Friday.

Mining and quarrying sector recorded a growth of 0.1 per cent during the quarter under review, as against a contraction of 0.2 per cent in Q1 of 2011-12.

Farm production expanded by 2.9 per cent in the first quarter against 3.7 per cent in the same period last year.

The trade, hotels, transport and communications segment also witnessed lower pace of growth at 4 per cent compared to 13.8 per cent expansion in the same quarter year-ago period.

The growth rate of electricity, gas and water supply also dipped to 6.3 per cent in Q1, from 8 per cent in the corresponding period last fiscal.

However, the growth in the construction sector was robust at 10.9 per cent during Q1 of 2012-13, as against 3.5 per cent in the year-ago period.

Growth rate of services sector, including insurance and real estate, also improved to 10.8 per cent in the first quarter, from 9.4 per cent recorded in April-June quarter last fiscal.

Economic growth in the January-March quarter was at nine-year low of 5.3 per cent, as the provisional estimate released earlier.

 

[IndoCarib]

India’s economy grew more than estimated last quarter after the central bank cut interest rates to support spending at home as Europe’s debt crisis crimped export growth. Bonds fell and the rupee pared losses.

Gross domestic product rose 5.5 percent in the three months through June from a year earlier, faster than the three-year low of 5.3 percent in the previous quarter, data from the Central Statistical Office in New Delhi showed today. The median of 39 estimates in a Bloomberg News survey was for a 5.2 percent gain.

India Growth Beats Estimates After Rate Cut to Aid Spending - Businessweek

India’s gross domestic product grew 5.5% in the April-June period, beating analyst expectations.

This is the first time in over a year that the country’s economic growth accelerated, picking up from 5.3% in the previous three months.

While this was marginally better than analysts expected – on average, they estimated GDP growth would slow to 5.2% – most experts say there is little reason to cheer.

Economists React: India

 

[cloud_9]

30000 MW of renewable energy capacity addition planned in 12th Plan

New Delhi, Aug. 30: India is expected see renewable energy capacity addition of 30,000 MW, with significant contribution from wind power, over the next five years.

“At the end of the 12th Five Year Plan (2012-17), the country is expected to have a total renewable energy generation capacity of 55,000 MW,” Joint Secretary in the Ministry of New and Renewable Energy Tarun Kapoor said here today.

India has a renewables generation capacity of about 25,000 MW, he said at a conference on the power sector.

Of the projected 30,000 MW capacity addition, around 15,000 MW would be from wind power.

According to him, there are also certain issues such as the financial health of power distribution companies (discoms) and availability of transmission lines for renewable energy projects.

Amid a severe power shortage in the country there is increased focus on generating electricity from renewable sources such as wind, solar and hydro to bring down the demand supply gap.

Currently India has an installed power generation capacity of little over 2 lakh MW.

The conference was organised by the International Trade and Exhibitions India Ltd and ITE Group Plc.

HC gives go ahead to Kudankulam power project

Chennai, Aug 31:The Madras High Court today gave its nod to the Kudankulam Nuclear Power Project, clearing the decks for the fuel loading and commissioning of unit 1 of the controversy-hit Indo-Russian project.

Dismissing a batch of petitions challenging commissioning of units 1 and 2 of KNPP, a Division Bench comprising Justices P. Jyothimani and M. Duraiswamy said the project did not suffer from any infirmity for want of any clearance from any authorities.

“There is absolutely no impediment to proceed in units 1 and 2 of KNPP,” the Bench said in its order, which was keenly awaited for loading the real fuel in the 1,000 MW unit 1.

The court also said the Centre and Tamil Nadu government shall oversee the plant continuously and take steps to protect the interests of the people and fishermen in the area.

Besides undertaking awareness schemes, the state government should establish a multi-speciality hospital and schools with hostel facilities for locals and children, give financial assistance for the fishermen in the area to have mechanised boats and provide port and cold storage facilities to store fish catch.

Orissa attracts most investments in 4 years

 

[Chinese Century]

India’s economy grew more than estimated last quarter after the central bank cut interest rates to support spending at home as Europe’s debt crisis crimped export growth. Bonds fell and the rupee pared losses.

Gross domestic product rose 5.5 percent in the three months through June from a year earlier, faster than the three-year low of 5.3 percent in the previous quarter, data from the Central Statistical Office in New Delhi showed today. The median of 39 estimates in a Bloomberg News survey was for a 5.2 percent gain.

India Growth Beats Estimates After Rate Cut to Aid Spending - Businessweek

India’s gross domestic product grew 5.5% in the April-June period, beating analyst expectations.

This is the first time in over a year that the country’s economic growth accelerated, picking up from 5.3% in the previous three months.

While this was marginally better than analysts expected – on average, they estimated GDP growth would slow to 5.2% – most experts say there is little reason to cheer.

Economists React: India

yea like we believes those numbers.....
The whole world is struggling and things are worse now than it was in the 2nd quarter and somehow India magically grew faster than the first quarter.
The more corrupt you are in India, the higher you go.

Indian economy is contracting, no question about it.

 

[cloud_9]

April-July fiscal deficit at $47.5 billion: Government

NEW DELHI: Fiscal deficit during the April-July period rose to 2.64 trillion Indian rupees ($47.5 billion) or 51.5 percent of the full fiscal year 2012/13, government data showed on Friday.

During the same period in the last fiscal year, the deficit was 55.4 percent of the budget target.

Net tax receipts during April-July period stood at 1.43 trillion rupees and the total expenditure was 4.37 trillion rupees.

In March, the government had budgeted a fiscal deficit of 5.14 trillion rupees or 5.1 percent of the gross domestic product ( GDP) for the current fiscal year.

Foreign exchange reserves up by $1.26 billion to $290 billion: RBI

MUMBAI: The foreign exchange reserves rose by $ 1.26 billion to $ 290.18 billion on the back of a healthy improvement in currency assets in the week ended August 24, the Reserve Bank said today.

The total reserves had slipped by $ 250.5 million to $ 288.92 billion in the previous reporting week.

Foreign currency assets (FCAs), a major component of the reserves, were up $ by 1.22 billion to $ 257.87 billion for the week under review, the Reserve Bank said.

FCAs, expressed in US dollar terms, include the effect of appreciation or depreciation of the non-US currencies, such as the euro, pound and yen, held in the reserves.

The gold reserves were unchanged at $ 25.71 billion, the apex bank said.

For the week under review, the special drawing rights (SDRs) were up by $ 29.4 million to $ 4.386 billion, while the country's reserve position with the IMF also went up by 14.8 million to $ 2.206 billion, the RBI data showed.

India, ASEAN members agree to conclude FTA pact by December

NEW DELHI: Trade and economic ministers of India and 10-member ASEAN today agreed to conclude the ongoing negotiations to widen the base of free trade agreement between them by including services and investments.

Commerce and Industry Minister Anand Sharma, who was in Siem Reap (Cambodia) to attend the 10th ASEAN-India Economic Ministers Consultations, reviewed the progress of talks with his ASEAN counterparts.

"India would be hosting a meeting of the Working Group on services and investment in the second half of September to conclude negotiation before the ASEAN-India Commemorative Summit in December in New Delhi," an official statement said.

The ministers agreed to intensify negotiations towards conclusion of the ASEAN-India Trade in services and investment agreement, it said.

Both the sides have already operationalised free trade pact in goods in January last year. The officials from both the sides are intensely engaged to include services and investments in the FTA.

These two sectors could not be included in that agreement as the two sides failed to reconcile their differences in time and it was decided to have a separate pact on these sectors.

Since 2011, bilateral trade has increased by 43 per cent to USD 79.8 billion. India is the sixth largest trading partner of ASEAN.

 

[cirr]

After a similar contraction in exports for June,

India's July exports down 14.8 pct y/y - govt

NEW DELHI, Sept 3 (Reuters) - India's annual exports fell 14.8 percent to $22.4 billion in July, while imports fell 7.6 percent to $37.9 billion, leaving a trade deficit of $15.5 billion, the trade ministry said in a statement on Monday.

After strong growth for much of last year, India's overseas sales have slumped, with officials blaming weak demand in the major export destinations such as the United States and Europe. Paltry exports have added to India's economic gloom, with growth close to its weakest levels in three years.

Exports have fallen from year-earlier levels in four out of the last five months. Exports between April and July fell 5.1 percent on year to $97.7 billion, the statement added. Oil imports were down 5.5 percent to $12.2 billion in July. (Reporting by Matthias Williams)

 

[kkacer]

Indian exports down 14.8% in July


Imports also fall 7.6% to $37.9 billion, leaving a trade deficit of $15.5 billion

Indian exports down 14.8% in July

 

[IndoCarib]

Indian exports down 14.8% in July


Imports also fall 7.6% to $37.9 billion, leaving a trade deficit of $15.5 billion

Indian exports down 14.8% in July

can you read this ??

Slipping tiger, crouching dragon: India PMI at 9-month low, China's lowest since 2009

A contraction in Asian manufacturing spread in August as new export orders fell across the region from China to India, showing the euro zone debt crisis was having a deepening impact on the global economy.

China's official purchasing managers' index fell below the 50 level that demarcates expansion from contraction for the first time since November 2011, while a similar survey from HSBC showed activity shrinking at its fastest pace since March 2009.

HSBC PMIs covering other major exporters painted a similar picture. South Korea's reading was below 50 for the third month in a row and Taiwan's PMI hit its lowest level since November.

The reports showed new orders, including new export orders, under pressure as fears grow that the euro zone is sliding into recession and the United States struggles to build up any economic steam.

Even in India, where the manufacturing sector has expanded without a break for more than three years, new export orders fell in August at their steepest pace since October last year. Indonesia's factory activity also expanded in August, but new export orders fell for the fifth month in a row.

Slipping tiger, crouching dragon: India PMI at 9-month low, Chinas lowest since 2009 - NDTVProfit.com

Now, can you comprehend ??

can you read this ??

Slipping tiger, crouching dragon: India PMI at 9-month low, China's lowest since 2009

A contraction in Asian manufacturing spread in August as new export orders fell across the region from China to India, showing the euro zone debt crisis was having a deepening impact on the global economy.

China's official purchasing managers' index fell below the 50 level that demarcates expansion from contraction for the first time since November 2011, while a similar survey from HSBC showed activity shrinking at its fastest pace since March 2009.

HSBC PMIs covering other major exporters painted a similar picture. South Korea's reading was below 50 for the third month in a row and Taiwan's PMI hit its lowest level since November.

The reports showed new orders, including new export orders, under pressure as fears grow that the euro zone is sliding into recession and the United States struggles to build up any economic steam.

Even in India, where the manufacturing sector has expanded without a break for more than three years, new export orders fell in August at their steepest pace since October last year. Indonesia's factory activity also expanded in August, but new export orders fell for the fifth month in a row.

Slipping tiger, crouching dragon: India PMI at 9-month low, Chinas lowest since 2009 - NDTVProfit.com

Now, can you comprehend ??

Do you read newspapers ? Do you know what is going on Europe ?

The FINANCIAL - Chinese exporters buffeted while India stays calm

The FINANCIAL -- Sluggish economic growth in many parts of the world continues to make life difficult for Chinese manufacturers, according to HSBC 's latest Purchasing Managers' Index which suggests operating conditions in the industry are at their toughest in over three years.

India's latest manufacturing figures make more pleasant reading, with the PMI coming in at 52.8 - broadly unchanged on July's 52.9 - despite the major power failures that hit large parts of the country in early August.

The FINANCIAL - Chinese exporters buffeted while India stays calm

 

[Abingdonboy]

^^^ and you can bet that mammoth blackout cost more than 0.1 PMI so pretty much completely unchanged!

 

[kkacer]

Indian exports down 14.8% in July


Imports also fall 7.6% to $37.9 billion, leaving a trade deficit of $15.5 billion

Indian exports down 14.8% in July

leaving a trade deficit of $15.5 billion in Aug

Will India Break the Huge Trade Deficit Record last year ???

 

[IndoCarib]

India outperformed EM & Asian markets in August: Morgan Stanley

NEW DELHI: In a scenario when most analysts are predicting near-term weakness in the benchmark index, India outperformed both emerging and Asian markets in the month of August, rebuffing earlier fears of underperformance, Morgan Stanley said in a note on Monday.

"India was the eighth best-performing emerging market in the month of August, up from 16th in the previous month," added the note.

In the week gone by, the Nifty witnessed heavy selling pressure, weighed down by global cues and inaction on the policy front. The index ended nearly 2 per cent lower for the week ended August 31.

Macro events like the Q1 GDP data, global worries, commodity news and rating downgrades weighed on the markets in the previous week. India's economy grew at higher-than-expected 5.5% for the quarter ended June 2012, government data showed on Friday.

August was the fourth consecutive month where the mid- and small-caps underperformed the large-cap indices. They underperformed the large-cap indices by 1.2 ppt and 1.9 ppt, respectively.

With this underperformance, the year-to-date outperformance gap of mid-caps and small-caps vs. the large caps has shrunk to 3.7ppt and 2.2ppt, respectively.

Indian markets have been consistently attracting investment from foreign institutional investors (FIIs) which many analysts argue as 'hope trade'.

Sanjeev Prasad, senior ED & Co-Head, Kotak Institutional Equities, is of the view that there is some sort of global risk-on trade which is going on in anticipation of some positive intervention by central banks.

"Risk appetite has gone up globally which is resulting in huge amount of liquidity going into risk assets, including emerging market equities, of which India is a part," he added.

"If you look at the numbers, you have seen about $4 billion of foreign FII inflows in the country over the last two months. So that is supporting the market. The second thing which is going on is some sort of a hope trade in India," added Prasad.

FII flows were strong, but domestic institutional flows remained negative. Market breadth remained weak even as narrow market momentum improved to multi-month highs.

For the month of August, overseas investors pumped in close to Rs 11,000 crore in the Indian stock market in August - highest in six months - amid hopes of government initiatives on policy reforms and easing of monetary policy globally.

Thus, FII investment in the country's equity market has reached Rs 63,070 crore so far this year, and Rs 24,518 crore in the debt market during the same period.

India outperformed EM & Asian markets in August: Morgan Stanley - The Economic Times

 

[FRANCIS]

Taking steps to take economy to higher
growth path: Govt
Cabinet Secretary Seth says that Indian
economy has seen similar difficult times &
managed to come out of it well
Press Trust of India / New Delhi Sep 04,
2012, 15:41 IST
Although global slowdown is affecting the
country, the fundamentals of Indian economy
are strong and the government is taking a series
of steps to see it moves to a higher growth
trajectory, Cabinet Secretary Ajit Kumar Seth
today.
The world economy is passing through a very
difficult phase and the performance of the
Indian economy has to be viewed in this
context, Seth said at Global Summit, organised
by the PHD Chamber of Commerce and
Industry.
"There is no dearth of projections and statistics
which we see bandied about, about what the
growth rate (is). We say the GDP in the April to
June quarter was 5.5%. Well, this is no doubt
less than the 8% figure of the corresponding
quarter of the last fiscal," Seth said.
"Look at the positive side, in the first quarter of
the year, the economy has recorded a higher
growth rate than the previous quarter. We
should remember that the world is passing
through difficult times and whatever is
happening outside will influence the domestic
economy," he added.
The Union Cabinet Secretary said the Indian
economy has seen similar difficult times in the
not too distant past and managed to come out
of it well.
"So, I do not see any reason at all why we
should be pessimistic and I am not pessimistic
at all. The macro- economic fundamentals are
still intact. So it is not as if everything is going
wrong. Not it is not," Seth said.
He also said the Finance Minister had on the
August 6 made a statement in which he gave
some indication about the way in which the
government intends to react to the current
situation and to see that the economy goes on
to a high growth trajectory.
"I can just say at this stage that the government
is considering a series of measures to
implement the announcements made by the
Finance Minister," he said.


Taking steps to take economy to higher growth path: Govt

BBC News - Indian businesses concerned about economic growth rates