Indian Economy-News & Updates

[RISING SUN]

Exclusive Interview: Honda will be more considerate towards India, says India Chief
Even as Honda India looks to gain market share beyond its premium flagship brand City, the Japanese automaker is putting its best foot foward to make the subcontinent a key market in its global portfolio. In an interview with Moneycontrol's Swaraj Baggonkar, Yoichiro Ueno, President and Chief Executive of Honda Cars India, said models will be more "considerate with different requirements for the India market''. Excerpts from the exclusive interview.
Q. Honda failed to capitalize on segments beyond the City
A. We don’t have any intention to keep any specific model as a brand image alive. We treat all models equally. Of course the volume is small (of other models). We like to do our best to enhance sales and brand of all models. We would like to achieve that kind of premium image not by specific models. It takes a bit of time to change the specifications and designs. But we want to shift in that direction in the coming few years.
Q. Has Honda been slow in adapting to changes in the market?
A. Speaking about speed, we are not really different from the others. The biggest difference is that Suzuki may be selling more than half of its global volume in India. Because of that reason they can really focus on the Indian market. On the contrary Honda India is the fourth biggest market for Honda. However, percentage-wise India is 5 percent of global sales units. The line-up in India is shared with other countries. That is making a different impression of Honda.
Q. Maruti and Hyundai are able to adapt to Indian market because of their local R&D strength. When will Honda start something like this?
A. We also established a R&D facility in India whose main focus initially was to develop localization programmes – how to design parts to be making suitable for India. They are also carefully monitoring market situations, giving a lot of feedback to the head office.
Q. Do we see a India-focused product from Honda?
A. May be not exclusive models for India but may be with those initiatives future models will be more considerate with different requirements for the India market. The weightage of the Indian market is getting bigger and bigger. We are selling the City in 100 countries but India is the biggest market for it. Our development team has to consider all countries but give more priority to Indian market.
Q. With your focus shifting to premium segment will you give up on the sub-4 meter segment?
A. Cars less than 4 meters have an advantage. In the last 2-3 years we focused on vehicles less than 4 meters like Amaze and Brio. Because of the big size of the City it was very successful. However, in terms of brand image we need to maintain our presence in over 4 meter segment. We need to balance our portfolio.
Q. Does Toyota-Suzuki deal impact Honda India strategy?
A. So far we don’t see any direct impact. However Toyota is very strong in hybrid technologies or other advanced technologies. Also, the government of India is very keen to implement the strong regulations. So the synergy between Toyota and Suzuki, Suzuki can more comfortably accommodate the regulations.
Q. In Gujarat you have bought 800 acres. When do we see production happening from there?
A. It depends on our sales pace. Currently, we have our 240,000 capacity in Noida and Tapukara. Currently, our sales are not exceeding that capacity; we have to exceed that capacity in order to further expand capacity. However, Tapukara plant has some space to increase production. If we exceed 240,000 units not really necessary to build a new factory. May be it will take a while. We don’t have any specific timing to start a new factory.
http://www.moneycontrol.com/news/bu...e-towards-india-says-india-chief_8530061.html

 

[Hindustani78]

http://www.thehindu.com/news/nation...the-top-producer-of-sugar/article17337069.ece
Meerut February 21, 2017 03:19 IST
Updated: February 21, 2017 03:19 IST

State is all set to overtake Maharashtra
Uttar Pradesh is all set to overtake Maharashtra and become the top producer of sugar, going by the latest projection of sugar production released by the Indian Sugar Mill Association, an all India body representing sugar mills from all sugar producing States.

Target set

ISMA has set the target of 85 lakh tonne production of sugar in UP, which is 40 % of the total production target in the country. Last year sugar production in UP was 68.40 lakh tonne.

Due to a variety of reasons, including lowering water level and drought-like situation, sugar production in Maharashtra has gone down from 84.24 lakh tonne in 2015-16 to 46 lakh tonne, which is a little over half of last year production in the State.

Sources in the State Cane Department said it was almost after a decade that UP overtook Maharashtra in annual sugar production. In 2005-6, the State produced 57.84 lakh tonne sugar whereas Maharashtra 51.97 lakh tonne.

After that it was Maharashtra which topped the sugar production chart in the country. In 2014-15 the State produced 105 lakh tonne while for UP the figure was 71 lakh tonne.

The UP Cane Department officials said such a high production of sugar was made possible due to increase of sugar recovery in sugarcane from around 9 per cent till last year to more than 10 per cent this year. They said the impressive sugar production in the State should result in timely payments to cane farmers.

Hard work

Confirming the growth in sugar production in UP, the cane commissioner of the State, Vipin Kumar Dwivedi, told the media that it was due to the hard work of the State’s cane farmers and right implementation of the State government’s policies that UP was set to become the top producer of sugar in the country.

“The total production of sugar in UP is expected to be more than 81 lakh tonne. We are looking forward to achieve the target of 85 lakh tonne this year,” Mr. Dwivedi said.


Deepak Gupta, secretary general of the UP Sugar Mills Association, said “while 35 lakh sugarcane farmers deserve special mention, the State government played a crucial key role in implementation of the plans.”

 

[Hindustani78]

Cashless transactions: SCR GM Vinod Kumar Yadav buys a water bottle at Kacheguda Station on Monday. | Photo Credit: Nagara Gopal

http://www.thehindu.com/news/national/telangana/swipe-a-card-for-a-water-bottle/article17338915.ece

Kacheguda becomes the first digital payment compliant railway station in SCR
On Monday, the historical Kacheguda Railway Station has become the first ever train station in the South Central Railway to have gone fully digital in terms of payments.

It has set the stage for 10 more stations to become digital payments enabled in the next stage of the ‘Digi-Pay Station’ campaign launched by the SCR.

In the words of a vendor H.S.Sudhindra, the customers can use a card even to buy a chocolate on the go. As if to prove a point, General Manager of SCR Vinod Kumar Yadav who was here to launch the Digi-Pay Station, bought a water bottle from a vendor by swiping his card.

Internet connectivity
All the 29 vendors and licensees in the station have received the point of sale (PoS) terminals through a tie-up with the Andhra Bank, and provision of high speed internet connectivity across the station will ensure feasibility for cashless transactions, the Railway authorities informed.

Apart from the vendors, other outsourced services, including parking and catering, will accept plastic money, so will the cloak room, retiring room, parcel counter, and AC waiting hall services and ticketing counter. Also installed are the payment options through mobile wallet services. Mr.Yadav said they struck upon the idea when the SCR was going through the process of making the reservation offices digital payment compliant. Talks were held with the licensees and vendors and with the Andhra Bank and the response was positive.

Transaction charges
After 10 more high profile stations in the next phase, the ‘Digi-Pay Station’ campaign will be taken to as many stations as possible in the subsequent stages, he said.

However, the vendors are not too happy about the initiative. They will have to pay transaction charges which start at a minimum of 75 paise and go up to ₹20 per transaction. “Besides, we will have to shell out ₹500 to ₹1000 as monthly rent for the PoS terminals. Still, we do not know how many customers would opt for card payments. We have installed the machines because the officials wanted us to,” says a vendor.

 

[Hindustani78]

********
http://indianexpress.com/article/in...deration-opposes-import-of-raw-sugar-4535510/
THE MAHARASHTRA State Cooperative Sugar Factories Federation has strongly opposed any move to import either raw or white sugar. Shivajirao Nagawade Patil, president of the federation, reasoned the country will not face any sugar shortage as the crushing season 2017-18 is expected to start in the first week of October.

“Till Monday, the country produced 147 lakh tonne (lt) of sugar.

Some mills are still operational in Maharashtra, Uttar Pradesh and Gujarat. Considering the present trend, the country will produce 215-16 lt of sugar by the end of season. The carry forward stock of last season is 77 lt so the country will have 293-94 lt of sugar stock at its disposal till the next season starts,” he said.

Even if one takes the national yearly demand as 250 lt, the next season will start with a carry forward stock of 43-44 lt, said Nagawade Patil. The festive season, which starts from the month of October, will also not see any sugar shortage as the crushing season will be starting early. “The fresh stock of sugar will be available by October 15,” he said.


Import of raw sugar, Nagawade Patil said, will not achieve the price parity that the government is looking at but will impact the present prices of sugar in a negative manner. “The landing cost of raw sugar at 10 per cent duty will work out to be Rs 38 per kg. Post processing, the ex factory price of the raw sugar will be around Rs 40 per kg and the retail price will be between Rs 42 and Rs 44 per kg,” he said. The demand of sugar traders for import duty reduction, he said, will not help the farmers or the millers.


Demands of some millers for lowering of import duty of raw sugar and allowing them to treat it during offseason was also not viable according to him. Once the boilers of the mills are switched off, Nagawade Patil said, it will be difficult for them to turn it on before season.


“Only mills that have crushed to their full capacity will have bagasse to use as fuel in off season. Rest of the mills would have already exhausted their bagasse in running their co-generation plants or as fuel during the season,” he said. Most of the mills in Maharashtra had gone for under capacity crushing so barring a handful of private mills none of them have any extra bagasse. “On the other hand mills from Uttar Pradesh had gone for full capacity crushing so they will be able to re-ignite their boilers using stored bagasse and process raw sugar,” he said.


At present, retail price of sugar in India is Rs 42 per kg, which Nagawade Patil said will not rise. “We have asked our members to increase sales so that there is no shortage of sugar,” he said.

 

[RISING SUN]

Pakistan cementing India's infrastructure, literally
Notwithstanding the bitterness between India and Pakistan, cement from the neighbouring country is increasingly strengthening Indian infrastructure, especially in Punjab and neighbouring states. According to data with All Pakistan Cement Manufacturer Association (APCMA), the export of cement from Pakistan to India grew from 4.19 lakh metric tonnes (MT) between July 2015 and January 2016 to 7.52 lakh MT in the July 2016-January 2017 period - a growth of nearly 79%.

According to importers, the Pakistani cement has gotten quite popular here and is being used in projects ranging from real estate to infrastructure. In fact, according to APCMA figures, the import of Pakistani cement in India grew rapidly after March 2016. While it would be under 1 lakh MT a month earlier, the import figure crossed the six-digit mark after March 2016. At 1.38 lakg MT, it was the highest in July. Even as it came down to 89,112 MT in November 2015, was 87,260 MT in December 2015, and 86,114 MT in January 2016, it was still higher than same months of 2015 and 2016. The popularity of Pakistani cement has been increasing; it is being used in all sorts of projects including residential, commercial, and even public infrastructure projects," revealed Vikrant Arora of Amritsar-based Vikrant Traders, the biggest importer of Pakistani cement.

He said the imports in November decreased as compared to preceding eight months, as Indian cement companies also lowered their prices significantly. He held that freight rates were being kept high by local truck unions, and this was reducing their capacity to lower the prices for end-users.

Another Amritsar-based importer, Hari Krishan Bhatia, said initially there were apprehensions but its demand rose once people got to know that it was good in quality and cheaper than Indian cement.
http://timesofindia.indiatimes.com/...dias-infra-literally/articleshow/57263253.cms

 

[Hindustani78]

By: PTI | New Delhi | Published:February 21, 2017 6:31 pm
http://indianexpress.com/article/in...mport-duty-on-wheat-ram-vilas-paswan-4536505/

The government may consider imposing import duty on wheat to protect farmers amid projections of a record output this year, Food Minister Ram Vilas Paswan said today. On December 8, it had reduced the customs duty on wheat to zero from 10 per cent to boost domestic availability and check retail prices. Paswan said there would be a bumper wheat production this year and the government has set a procurement target at 33 million tonnes for the 2017-18 marketing year, starting April.

New wheat crop will start arriving in the market from next month, Paswan said, adding that the government is making adequate preparation to purchase the grain and will take all steps to ensure the minimum support price (MSP) to farmers.

“The way this government has taken measures in the case of pulses and farmers are getting the MSP, all possible steps will be taken for wheat-growing farmers. If needed, raising import duty will be considered,” Paswan said in a statement.

He said the central government had reduced the import duty on wheat in December to protect consumers interest.

“Within two months of reduction in customs duty, 30-40 lakh tonnes of wheat has been imported. More than 55 lakh tonnes of wheat has been imported during this (financial) year,” he said.


Paswan said that the government’s experience has been that traders take advantage of the high rates while farmers are forced to sell their produce at throw-away price.


The production of wheat is estimated at record 96.64 million tonnes in 2016-17 crop year (July-June) as against 92.29 million tonnes in 2015-16 on the back of good monsoon. The previous record was 95.85 million tonnes in the 2013-14 crop year

 

[Hindustani78]

The Union Minister for Railways, Shri Suresh Prabhakar Prabhu inspecting the newly turned rake of Antyodaya Express consisting 22 Coaches, at Safderjung Railway Station, in New Delhi on February 22, 2017. The Chairman, Railway Board, Shri A.K. Mital and the Member Traffic, Railway Board, Shri Mohd. Jamshed are also seen.

The Union Minister for Railways, Shri Suresh Prabhakar Prabhu briefing the media after inspecting the newly turned rake of Antyodaya Express consisting 22 Coaches, at Safderjung Railway Station, in New Delhi on February 22, 2017.

 

[Nilgiri]

http://www.imf.org/en/News/Articles...strong-growth-persists-despite-new-challenges

For India, Strong Growth Persists Despite New Challenges
February 22, 2017

• India remains one of the fastest growing emerging market economies
• Due to recent cash shortages, growth is projected to slow temporarily this fiscal year
• Maintaining the reform momentum is key to stronger growth

India’s overall outlook remains positive, although growth will slow temporarily as a result of disruptions to consumption and business activity from the recent withdrawal of high-denomination banknotes from circulation.

But the nation's expansion will pick up again as economic reforms kick in, said the IMF in its latest assessment. Growth is expected at 6.6 percent in this fiscal year and at 7.2 percent in the following year.


Speaking to IMF News, IMF mission chief for India Paul Cashin discusses these and other challenges, and also highlights the opportunities for this vibrant economy moving forward.


IMF News: The IMF just completed its annual assessment of the Indian economy. How is the economy doing?

The Indian economy is growing strongly and remains a bright spot in the global landscape. The halving of global oil prices that began in late 2014 boosted economic activity in India, further improved the external current account and fiscal positions, and helped lower inflation. In addition, continued fiscal consolidation, by reducing government deficits and debt accumulation, and an anti-inflationary monetary policy stance have helped cement macroeconomic stability.

The government has made significant progress on important economic reforms, which will support strong and sustainable growth going forward. In particular, the upcoming implementation of the goods and services tax, which has been in the making for over a decade, will help raise India’s medium-term growth to above 8 percent, as it will enhance the efficiency of production and movement of goods and services across Indian states.

Challenges remain, however, and there is little scope for complacency. A key concern for us is the health of the banking system, which is still dealing with a large amount of bad loans, and also heightened corporate vulnerabilities in several key sectors of the economy.

And, over the past few months, the economy has been hit by cash shortages, and accordingly we reduced our growth forecasts to 6.6 percent for fiscal year 2016/17 and to 7.2 percent in 2017/18.


IMF News: How is this recent “demonetization” initiative affecting the economy, and what are some of the long-term ramifications?

The initiative affected notes with a total value of about 15 trillion rupees, which amounted to 86 percent of all cash in circulation. Because payment transactions in India are primarily cash-based and electronic payments infrastructure is limited, the shortage of cash has disrupted economic activity, with smaller businesses and rural regions being particularly badly affected.

Fortunately, these effects are expected to gradually dissipate by March 2017 as cash shortages ease. It also appears that measures taken to alleviate payment disruptions, such as temporarily allowing use of old banknotes for purchases of fuel and agricultural inputs, have helped mitigate the negative impact. So we expect the slowdown to be limited and relatively short-lived and the financial system to come through unscathed. Of course, potential loan repayment risks should be monitored carefully, particularly given an already elevated level of non-performing loans.

The demonetization initiative presents an opportunity to increase the size of the formal economy and broaden financial intermediation in the longer term. It can also support a widening of the tax base, help reduce the fiscal deficit, enhance bank liquidity, and give a fillip to the government’s efforts to promote greater financial inclusion.


IMF News: How can India ensure that the fruits of its growth are shared by all?

India has made appreciable progress on several fronts. It achieved its Millennium Development Goals of halving poverty, infant and child mortality, and maternal mortality rates. Students are now staying in school longer, as evidenced by an increase in secondary school completion rates. Moreover, significant progress has been made in enhancing financial inclusion, leveraging technology to bring more of the population into the financial system.

However, progress on improving health, nutrition, and sanitation has been less encouraging, income inequality has risen, and employment growth has been sluggish. For instance, a very large share of Indian workers—more than 90 percent—remain employed in low-productivity informal sector jobs. Women’s participation in the labor force is also low at around 25 percent—the lowest among emerging markets. Further labor market reforms, at both the center and state levels, are needed to encourage better quality job creation and raise female labor force participation.

While there has been important progress, we see scope to pursue better targeting and greater efficiency of subsidy and social spending programs through greater use of the trio of Aadhaar unique beneficiary identification, direct benefit transfers, and information technology. Finally, more needs to be done to raise agricultural productivity and enhance market efficiency. This would help increase supply of high-value foods, enhance returns to farmers, and dampen food inflation pressures.


IMF News: As India’s economy becomes increasingly sophisticated, how does the government keep pace with its capacity to craft sound economic policy?

Sound economic policymaking underpinned by strong institutions is critical for sustainable growth. A recent example of a positive change in India is the implementation of flexible inflation targeting and creation of the Monetary Policy Committee, which have strengthened the credibility of monetary policy and helped maintain price stability in an increasingly complex economy.

In addition to providing policy advice, the Fund is committed to working with the Indian authorities to help build capacity for policymaking. The recently inaugurated South Asia Regional Training and Technical Assistance Center(SARTTAC) headquartered in New Delhi—which will serve Bangladesh, Bhutan, India, Maldives, Nepal, and Sri Lanka—is the first IMF-supported center to combine both technical assistance and training.

The center will provide training to government and public sector employees, enhance their skills and improve the quality of their policy inputs, and will also provide technical assistance to governments and public institutions. SARTTAC is expected to become the focal point for planning, coordinating, and implementing the IMF’s capacity development activities in the region on a wide range of areas, including macroeconomic and fiscal management, monetary operations, financial sector regulation and supervision, and macroeconomic statistics.

FULL PAPER CAN BE FOUND HERE:

http://www.imf.org/en/Publications/...f-Report-and-Statement-by-the-Executive-44670

 

[haman10]

Hi guys. I'm sorry im posting here but I'm in a sort of emergency. So the story is that my father is going to India for a week and i had a couple of questions :
1- all he has is 100 dollar notes. Should he change them to smaller notes?

2 considering the fact that he wants to buy souvenirs for all the family (Iranian tradition), how much money do you think is enough? 1k? 2k or even more... Just a hunch is enough for me.

@Nilgiri @Hindustani78 @Roybot

 

[Roybot]

Hi guys. I'm sorry im posting here but I'm in a sort of emergency. So the story is that my father is going to India for a week and i had a couple of questions :
1- all he has is 100 dollar notes. Should he change them to smaller notes?

2 considering the fact that he wants to buy souvenirs for all the family (Iranian tradition), how much money do you think is enough? 1k? 2k or even more... Just a hunch is enough for me.

@Nilgiri @Hindustani78 @Roybot

Bro he ll need local currency for shopping in India, he can get the 100 dollar bills converted to local currency at the airport.

As for the souvenirs, that depends, 2000 US dollars should be more than the enough, depending on how many family members, and where in India he is going and what he plans to take back. But 2000 dollars is a big amount for souvenirs in India, and should be enough imo.

 

[haman10]

Bro he ll need local currency for shopping in India, he can get the 100 dollar bills converted to local currency at the airport.

As for the souvenirs, that depends, 2000 US dollars should be more than the enough, depending on how many family members, and where in India he is going and what he plans to take back. But 2000 dollars is a big amount for souvenirs in India, and should be enough imo.

Thanks for the tips bro
So he should keep the 100 dollar notes and change them at Indian airport.
Thanks again

 

[Roybot]

Thanks for the tips bro
So he should keep the 100 dollar notes and change them at Indian airport.
Thanks again

Is he flying from Iran? Where in India is he planning to visit. He d get a better exchange rate in India than Iran.

Yeah just carry the 100 dollar note and get it exchanged in India either at the airport or other agents in the city.

Last time I was in India they were offering me slightly higher exchange rate for 100 dollar bills(Australian) compared to 50 and 20 dollar ones for some weird reason, so probably best to keep the 100 dollar notes.

 

[haman10]

Is he flying from Iran? Where in India is he planning to visit. He d get a better exchange rate in India than Iran.

Yeah just carry the 100 dollar note and get it exchanged in India either at the airport or other agents in the city.

Last time I was in India they were offering me slightly higher exchange rate for 100 dollar bills(Australian) compared to 50 and 20 dollar ones for some weird reason, so probably best to keep the 100 dollar notes.

Oh thanks. He'll be visiting new delhi, agra, jaipur, aligarh
He was invited by aligarh University, and its impossible to go to India and not visit its beautiful scenery.... So...

 

[Roybot]

Oh thanks. He'll be visiting new delhi, agra, jaipur, aligarh
He was invited by aligarh University, and its impossible to go to India and not visit its beautiful scenery.... So...

Ah sweet, Jaipur, Agra is like hub of handicrafts should be perfect for souvenir shopping, and had a lot of old monuments and full of history. Ask him to squeeze Lucknow in his itinerary if he can. It has a lot of Iranian links and history, Ayatollah Khomeini was from Lucknow.

 

[haman10]

Ah sweet, Jaipur, Agra is like hub of handicrafts should be perfect for souvenir shopping, and had a lot of old monuments and full of history. Ask him to squeeze Lucknow in his itinerary if he can. It has a lot of Iranian links and history, Ayatollah Khomeini was from Lucknow.

yeah sure although there is so much to see in India, he'll definitely miss most of it

thanks for all your help bro