Indian Economy-News & Updates

[KRAIT]

Hinduja Group in lead to buy Houghton International for $1.15 billion: Sources - The Economic Times

NEW YORK: Family-owned Indian conglomerate Hinduja Group is the front-runner to acquire Houghton International, a U.S. producer of metalworking fluids and other chemicals, following a $1.15 billion bid, according to two people familiar with the matter.

The multibillion-dollar global investment and banking group topped offers by private equity firms in the auction for Houghton, the sources said. AEA Investors LP, the investment firm that owns Houghton, could still decide to sell to another party or not at all, the sources added.

Representatives of the Hinduja Group, Houghton and AEA did not respond to requests for comment.

Valley Forge, Pennsylvania-based Houghton makes specialty chemicals, oils and lubricants for the metalworking, automotive, steel and other industries. Deutsche Bank and Morgan Stanley were hired to advise on the sale process, people familiar with the matter previously told Reuters.

Founded in 1914, the Hinduja Group expanded into investment banking, international trading and global investments under the present leadership of Chairman Srichand Hinduja, supported by his brothers, Gopichand, Prakash and Ashok. The group has a presence in 35 countries, employing over 65,000 people.

Houghton merged in 2007 with an affiliate of AEA. Terms of the deal were not disclosed, but Morgan, Lewis & Bockius LLP - a law firm that represented Houghton on the transaction - refers to it on its website as a $400 million merger.

 

[KRAIT]

Rural prosperity no mirage; real rural wages have grown 6.8% each year in last 4 years

Every concerned and right-thinking citizen of this country wants poverty to be reduced as early as possible. Governments and policymakers have given assurances, time and again, that they are making their earnest efforts in that direction.

Yet, there is a big debate in the country, ranging from the very definition of poverty to the number of people below the poverty line. Some academic stalwarts have devoted almost their whole lifetimes measuring and debating the issue.

We don't intend to enter that arena but look at it from a simpler and more transparent prism. Instead of going through the consumption route and measuring the calorie intake, as most poverty analysts do, we simply ask: what is happening to the real wage rates in farming where landless labour is working?

Since the largest mass of poor people is in rural areas, and they are the landless agricultural labourers, knowing about their real wages is critical to have an idea about probable changes in rural poverty. So, we try to look at the real farm wages during the period 2000-01 to 2011-12.



The real farm wages are derived for each agricultural year, July to June, by averaging wages over five types of farm operations - ploughing, sowing, weeding, transplanting and harvesting - first at the state level, and then deflating the nominal wages with the consumer price index for agricultural labour (CPI-AL) of each state separately, bringing them all at 2011-12 prices, and then finding a weighted average of 16 major states by attaching relative share of the state in total number of agricultural labour in the country.

These 16 major states comprise more than 93% of the farm labour force in the country. The results (see chart) are very interesting.

During the period 2000-01 to 2006-07, the real farm wages fluctuated between a high of 117 per day in 2001-02 to 111 per day in 2006-07, both wage rates measured at 2011-12 constant prices. The average annual rate of growth in real wages during this period was -0.44%.
Rural prosperity no mirage; real rural wages have grown 6.8% each year in last 4 years - The Economic Times

 

[MandarK]

Markets respond to reforms; Sensex above 19K mark

09:39 Markets respond to reforms; Sensex above 19K mark:
The 30-share BSE Sensex opened higher and stayed above the 19,000 mark on Friday and the 50-share Nifty opened above 5800.

While, the BSE opened at 19110, 50 points higher, the Nifty opened at 5815, 27 points higher.

On Thursday, ahead of the Cabinet meeting on foreign direct investment (FDI) in insurance and pension, the market closed at its highest level in 17 months.

While the BSE Sensex managed to end the day above the 19000 mark, the Nifty closed at 5787.

The government's reforms juggernaut rolled on in style. The Cabinet approved insurance and PFRDA bills.

It proposed foreign equity cap in both sectors be hiked to 49 per cent.

It also approved amendments to the Companies Bill 2011. Parliament will take up bills in winter session. Infrastructure too got its due.

The Cabinet approved draft 12th Five Year Plan document which envisages the removal of bottlenecks for the sector.

 

[cirr]

Where does India rank in BRIC? Let's take a look

Last updated on: October 5, 2012 08:36 IST

Where does India rank in BRIC? Let's take a look - Rediff.com Business

 

[conworldus]

Where does India rank in BRIC? Let's take a look

Last updated on: October 5, 2012 08:36 IST

Where does India rank in BRIC? Let's take a look - Rediff.com Business

The data cited in the article is old.

 

[INDIC]

Rupee at near 6-month high against dollar - The Times of India

 

[Phoenix89]

World’s 20 economically strongest cities

Indian cities Ahmedabad and Bangalore have been listed among the world’s top 20 competitive cities in terms of economic strength, according to a report released earlier this year. The Economist Intelligence Unit research ranked the world's top cities based on various parameters, to compile the latest Global City Competitiveness Index. List based on ‘economic strength’ criteria, which is in turn based on every city’s overall GDP, growth rate and relative income.

Bangalore: 16th
Ahmedabad: 19th

My city made it to the list, Ahmedabad

 

[IND151]

World’s 20 economically strongest cities



Indian cities Ahmedabad and Bangalore have been listed among the world’s top 20 competitive cities in terms of economic strength, according to a report released earlier this year. The Economist Intelligence Unit research ranked the world's top cities based on various parameters, to compile the latest Global City Competitiveness Index. However, in our slideshow below, we focus on only on the ‘economic strength’ criteria, which is based on every city’s overall GDP, growth rate and relative income.
(Images: Getty and Think Stock)

Bangalore

World

Ahmedabad





1. Tianjin
Overall economic strength: 56.6
GDP 2010-2016 (real change per annum): 12.9%
8. Tokyo
Overall economic strength: 50.5
GDP 2010-2016 (real change per annum): 1.7%
9. Chongqing
Overall economic strength: 49.9
GDP 2010-2016 (real change per annum): 12.2%
10. Beijing
Overall economic strength: 49.8
GDP 2010-2016 (real change per annum): 9.4%
11. Qingdao
Overall economic strength: 49.4
GDP 2010-2016 (real change per annum): 11.4%
12. Chengdu
Overall economic strength: 49.2
GDP 2010-2016 (real change per annum): 11.7%
13. Suzhou (Jiangsu)
Overall economic strength: 48.1
GDP 2010-2016 (real change per annum): 10.5%
14. Hangzhou
Overall economic strength: 47.6
GDP 2010-2016 (real change per annum): 10.3%
15. Singapore
Overall economic strength: 46.0
GDP 2010-2016 (real change per annum): 5.7%
16. Bangalore
Overall economic strength: 45.9
GDP 2010-2016 (real change per annum): 10.3%
17. Los Angeles
Overall economic strength: 45.7
GDP 2010-2016 (real change per annum): 2.7%
18. Houston
Overall economic strength: 45.6
GDP 2010-2016 (real change per annum): 4.4%
19. Ahmedabad
Overall economic strength: 45.3
GDP 2010-2016 (real change per annum): 10.1%
20. Hong Kong
Overall economic strength: 43.8
GDP 2010-2016 (real change per annum): 4.9%
20. Hanoi
Overall economic strength: 43.8
GDP 2010-2016 (real change per annum): 10.2%

http://in.yahoo.com/_ylt=ArsL96FyW0...s-20-economically-strongest-cities-slideshow/

 

[IndoCarib]

India to return to 6.5% growth by March

New Delhi, Oct 5:

The worst is over for the Indian economy but it will be another six months before the country shows signs of improvement and growth recovers to 6.5 per cent levels, Bank of America Merrill Lynch has said in a report.

According to BofA-ML, lead indicators still point to six months of pain and it is not until the March quarter that growth is expected to recover to 6.5 per cent levels.

“We grow more confident of our call that while the worst is over, recovery will stretch for another six months,” the report said.

Business Line : Industry & Economy / Economy : India to return to 6.5% growth only by March: BoFA-ML

 

[IndoCarib]

India A Bright Spot In A Cloudy Market

With all the doom and gloom in the eurozone, China and, in general, mixed economic data out both in developed and emerging markets, we can find a bright spot in India’s equities and economy.

India A Bright Spot In A Cloudy Market - Seeking Alpha

 

[Agent_47]

 

[Frank Martin]

India's forex reserves up $837.8 mn

Mumbai, Oct 6, 2012, (IANS) : India's foreign exchange (forex) reserves went up by $837.8 million to $294.81 billion for the week ended Sep 28, 2012, Reserve Bank of India (RBI) data shows. Forex was down $502 million for the week ended Sep 21, 2012. The reserves had risen by $2.43 billion to $294.47 billion for the week ended Sep 14, and subsequently grown by $1.58 billion to $292 billion for the previous week. However, foreign currency assets (FCA), the biggest component of the forex reserves, in the week under review fell $1.07 billion to $259.95 billion, according to the weekly statistical supplement released by the RBI. The FCA were down by $48 million to $261.03 billion for the week ended Sep 21, 2012. The FCA had risen by $2.33 billion to $261.51 billion for the week ended Sep 14, 2012. The RBI in a statement said that FCA in US dollar terms included the effect of appreciation or depreciation of non-US currencies held in reserve, such as the pound sterling, euro and yen. The value of gold reserves zoomed by $1.89 billion at $28.13 billion. The gold reserves were stagnant at $26.23 billion for the past two weeks. The special drawing rights (SDRs) decreased by $9.5 million to $4.45 billion during the week ended Sep 28, 2012. While, reserves with the International Monetary Fund (IMF) increased by $26.5 million to $2.27 billion during the week under review. The SDRs had increased by $11.2 million to $4.46 billion for the week ended Sep 21, 2012, while India's reserves with the IMF grew by $5.6 million to $2.24 billion in the previous week.

India's forex reserves up $837.8 mn

 

[Frank Martin]

Rupee rises for fifth week; ends at 5-1/2 month high of 51.85 Vs dollar

Mumbai: The Indian rupee continued to rule firm for the fifth week in a row, appreciating further by 100 paise to end at 5-1/2 month high of 51.85 against the Greenback during the shortened week under review on heavy dollar selling by exporters and some banks amid firm local equity markets. Persistent capital inflows too boosted the rupee value against the dollar, a forex dealer said. The Forex market was closed on October 2, 2012 on account of 'Mahatma Gandhi Jayanti'. At the Interbank Foreign Exchange (Forex) market, the local currency resumed the week lower at 53.00 a dollar from last weekend's close of 52.85 and eased further to a low of 53.01 on stray dollar demand from importers, mainly oil refiners, and some banks. Later, it moved in a wide range between 51.35 and 53.01 before ending the week at 5-1/2 month high of 51.85, a rise of 100 paise or 1.89 percent. Previously, the rupee had settled at 51.47 on April 17, 2012. In straight five-week of gaining streak, the rupee has spurted by 367 paise or 6.61 percent. The BSE benchmark Sensex closed the week higher by 175.72 points or 0.94 percent, extending gains for the fifth straight week. Foreign Institutional Investors (FIIs) injected USD 187.45 million on Thursday, taking a total to USD 16.50 billion in the year 2012 till October 4, which mainly supported the rupee. Pramit Brahmbhatt, CEO, Alpari Financial Services (India) Said," The INR continued to extend gains after weak beginning. The pace of gaining steepened after the mid week holiday but posted a reversal on the last the day of the short week. The strength in INR was backed by the rising foreign capital flows due to active policy reforms by the government." "Exporter selling and corporate selling in a bid to lock in higher prices in anticipation of further strengthening of INR added fuel to the rally. The Oil importers backed off from locking their payments due to a strengthening outlook for INR. The Current Account deficit narrowed down from 4.3 percent to 3.9 percent MoM reducing pressure on dollar demand. "The dollar index maintained a softer stance in the week and a decisive move below 79.00 shall extend loses towards 78.00 mark," he added. "For the week Importers can create a long hedge around the 51.50 - 52.00 levels for their payments as a rebound can be expected after sharp appreciation. Exporters can use the weakness towards 53.00 levels to initiate a partial short hedge with a stop loss above 53.60 levels as to cover their receipts. "The crucial levels for INR appreciation are 51.50 levels and for depreciation the 53.10 levels can be closely watched as rise above 53.10 levels shall weaken the pair till 53.60 levels," he further commented. The RBI fixed the reference rate for US dollar and euro at Rs 51.6185 and Rs 67.1735 from Rs 52.6970 and Rs 68.1485 last weekend, respectively. The rupee premium for the forward dollar ended lower on fresh receivings by exporters. The benchmark six-month forward dollar payable in March settled down at 160-162 paise from last weekend's close of 165-167 paise and far-forward contract maturing in September also ended lower at 304-306 paise from 311-313 paise. The rupee shot up further against Pound Sterling to end the week at 83.89 from preceding weekend's level of 85.59 and firmed up sharply against the Japanese yen to 66.07 per 100 yen from 68.10. It also continued to rule firm against the euro to 67.45 from last weekend's close of 68.32.

Rupee rises for fifth week; ends at 5-1/2 month high of 51.85 Vs dollar

 

[shuttler]

India Trade Deficit Widens

Oct 1, 2012

wsj

NEW DELHI—India's merchandise exports in August fell at a sharper pace than imports, widening the trade deficit marginally to $15.6 billion from July's $15.5 billion, according to provisional data issued Monday by the Ministry of Commerce.

Exports fell 9.7% from a year earlier to $22.3 billion, while imports dropped 5.08% to $37.9 billion, the data showed. The numbers are little changed from July, when exports were $22.44 billion while imports were $37.94 billion.

Oil imports in August rose 2.96% to $12.8 billion, while nonoil imports dropped 8.74% to $25 billion.

Total exports since this fiscal year began on April 1 fell 5.96% to $119.9 billion, while imports slid 6.2% to $191.1 billion, the data showed.

The government didn't give any reasons for the changes in exports and imports.

India aims to boost exports by about 20% to $360 billion in the current fiscal year. However, a slowdown has raised worries that it could fall short of the target

 

[Yeti]

NEW DELHI: An Indian business group said Saturday a delegation was visiting Iran to boost trade with the Islamic republic, which is under strain from Western sanctions over its alleged nuclear weapons programme.



The Associated Chambers of Commerce and Industry of India (ASSOCHAM) said the "high-powered" 50-member business delegation was on a four-day visit to Iran to attend the Tehran International Industry Exhibition (TIIE).



Anil Agarwal, chairman of International Affairs Council of ASSOCHAM, called opportunities for trade a "win-win situation" for the two countries.



Iran is a major oil supplier to energy-hungry India, and New Delhi is seeking to increase its exports to Tehran as the West's sanctions campaign dries up payment routes it was using to pay for Iranian fuel imports.



India and Iran have worked out a deal under which New Delhi will pay for a big chunk of its Iranian oil imports in rupees. The rupee payments will be used by Iran to purchase Indian goods.



"Indian industry has huge scope for investments" in Iran in sectors like construction, pharmaceuticals, telecom and textiles, "while Iran can import fertilizers, zinc, copper and iron", Agarwal said.



The visit to Tehran, one in a series of recent commercial exchanges between the two countries, comes as ordinary Iranians struggle with growing economic problems amid the US-led Western sanctions.



Annual trade between India and Iran totals $15 billion and heavily skewed towards Tehran, which exports mainly oil.



India has been walking a diplomatic tightrope as it pursues good ties with the Gulf nation while deepening relations with the United States.



India, a longtime Tehran ally, sharing historical, trading and cultural links, views Iran as an important counterweight to rival Pakistan in the region.



In June, Washington said it would exempt seven emerging economies including India from reprisals after they pledged to cut back on oil purchases from Iran.



India expects to import less than 14 million tonnes of Iranian crude in 2012-13, below official estimates of 15.5 million tonnes due to the sanctions, the Economic Times newspaper reported earlier in the week.



By contrast, India imported 21.8 million tonnes of crude from Iran in 2008-09, the newspaper quoted an unnamed government official as saying.



Iran is keen to increase crude oil sales to New Delhi and is looking at ways to work round Western sanctions, the official added.



India business group visits Iran for 'win-win' trade