Indian Economy : News,Discussions & Updates

[RISING SUN]

Retail inflation softens to 3.31% in October versus 3.7% in September
India’s retail inflation eased to 3.31 percent in October, lowest in a year, as compared with 3.70 percent in September, driven by cheaper food items, data released by the government showed.

Retail inflation, measured by Consumer Price Index (CPI), stood at 3.58 percent in October last year.
CPI is the main price gauge that the Reserve Bank of India (RBI) tracks.

According to central banks’ latest estimate, retail inflation is projected at 3.7 percent in the July-September quarter, 4.8 percent in the January-March quarter and 3.8-4.5 percent during October-March of 2018-19.

As per minutes of the Monetary Policy Committee meeting held in October, RBI Governor Urjit Patel said the inflation outlook continues to face several upside pressures, which includes uncertainty surrounding impact of increase in minimum support prices (MSP) of Kharif crops on food inflation, surge in crude oil prices, increased heightened volatility in financial markets of emerging economies, among others.

There is also a risk of fiscal slippage at the Centre or state level, Patel has said. A lower rate of inflation for October amid softening crude oil prices and relatively stable domestic currency lowers the possibility of a rate hike by the central bank.

Consumer food price index witnessed disinflation, recording de-growth of 0.86 percent, from 0.51 percent in September and 1.90 percent a year ago, mainly driven by cheaper vegetables, fruits, pulses and sugar.
Prices of vegetables grew -8.06 percent versus (-) 4.15 percent a month ago. Similarly, prices of fruits fell further, witnessing 0.35 percent growth in October as compared with 1.12 percent in September.

Pulses continued witness deflation and contracted (-) 10.28 percent in October from (-) 8.58 percent a month ago.
Despite lower inflation, experts feel the sequential hardening in the core inflation or non-food, fuel inflation, driven by miscellaneous items may pose some concern.

“Core inflation rose to an uncomfortably high 6.1 percent in October 2018, led by services such as health, as well as the impact of commodity prices on the inflation for transport and communication, household goods and services, and personal care and effects, in sharp contrast to the YoY disinflation in food items,” Aditi Nayar, Principal Economist at ICRA said.

Fuel and light inflation for October was at 8.55 percent compared to 8.47 percent month on month, which housing inflation was 6.55 percent versus 7.07 percent MoM.

Going forward, experts also expect the headline inflation to remain benign given the recent downturn in oil prices, stability in the rupee and mild inflation prints.

“The next inflation print could be even lower. We are however, concerned at the extreme food disinflation,” B Prasanna, Group Executive and Head - Global Markets Group, ICICI Bank.
Retail inflation softens to 3.31% in October versus 3.7% in September

 

[Itachi]

Exports bounce back, grow 17.86% to $26.9 b in October

Petroleum import rises sharply, gold falls
NEW DELHI, NOVEMBER 15

India’s goods exports bounced back in October posting a 17.86 per cent year-on-year growth to $26.98 billion boosted by an increase in shipments of petroleum products, chemicals, pharmaceuticals and engineering goods.
Imports during the month grew 17.62 per cent to $44.11 billion widening the trade deficit to $17.13 billion compared to $14.61 billion last October, according to figures released by the Commerce Ministry on Thursday.
While import of crude and petroleum products jumped over 52 per cent to $14.20 billion during the month, import of gold declined 42.9 per cent to $1.68 billion.
In September, exports had fallen 2.15 per cent compared to last September, but in absolute terms the export value was higher at $27.95 billion.
“The exports during the month are close to $27 billion, which re-affirms our assessment of reaching the new milestone of $350 billion in the current fiscal,” said Ganesh Kumar Gupta, President, Federation of India Export Organisations (FIEO). This will be the highest ever annual exports figure which is being targeted by exporters braving all the odds, he added.
Ready-made garments, gems & jewellery, spices, electronics, leather goods, plastics and handicrafts were some of the other items which recorded an increase in exports in October.
Exports of a number of agriculture and food items, including rice, cashew, meat, dairy products, other cereals and pulses, however, witnessed a fall during the month.
Total exports in April-October 2018-19 were $191.01 billion which was 13.27 per cent higher than exports in the comparable period last year. Imports during the period were 16.37 per cent higher at $302.47 billion.
Trade deficit in the first seven months of the fiscal widened to $111.46 billion compared to $91.28 billion in the same period last year.
Last month, the Commerce Ministry had said that the decline in exports was due to the base effect resulting from September 2017 being an abnormally high growth month due to imminent cut off then for drawbacks at pre-GST rates.

Exports bounce back, grow 17.86% to $26.9 b in October

 

[RISING SUN]

India to hit steel capacity target ahead of time; infra bottlenecks persist
There is no longer any official prevarication about the country achieving 300 million tonne (mt) crude steel capacity target by 2030-31 that the government was bold enough to incorporate in the steel policy announced in 2017. India’s present capacity now is close to 140 mt.

Steel Minister Birender Singh is using every forum, as he recently did at NMDC diamond jubilee celebrations, to say that India is well on course to be a 300-mt steel capacity country, next only to China, in another 12 years.
India to hit steel capacity target ahead of time; infra bottlenecks persist

 

[_Anonymous_]

Mukesh Ambani plans to expand RIL Jamnagar complex to make world’s largest refinery even bigger

 

[Itachi]

India now has 268 mobile handset and component manufacturing units, 6.7 lakh jobs created: ICEA

A total of 268 mobile handset and component plants have setup in India and created 6.7 lakh jobs, Indian Cellular and Electronics Association (ICEA) said on Wednesday.

India’s bid to become a major mobile phone manufacturing powerhouse seems to be working with the Indian Cellular and Electronics Association (ICEA) claiming on Wednesday that over the past four and half years 268 mobile handset and component manufacturing factories have been set up in the country resulting in over 6.7 lakh jobs. Prime Minister Narendra Modi had kicked off the “Make in India” initiative in 2014 with the aim to encourage domestic mobile phone manufacturing in the country.

“This is a very good situation. Other than the well-known companies which we all know about like Apple, Samsung, LG, Oppo and Vivo, there is a whole lot of medium enterprises which have come into manufacturing,” ICEA National President Pankaj Mohindroo told reporters here. In fact, most of the new factories have come up in the last few months.

As per the detailed physical survey conducted by ICEA, the Delhi-NCR region has about 30 mobile handset manufacturing units, followed by Uttar Pradesh with 27, Haryana with 15, Maharashtra 14 and Uttrakhand 9. Delhi-NCR tops the ranking with 18 battery pack factories, followed by UP with 14, Haryana with 13, Himachal Pradesh with 7 and Maharashtra with 4. The survey further found that UP has about 39 factories dedicated to chargers/adapters, followed by Delhi with 24, Haryana with 18, Maharashtra with 12 and Uttrakhand with 10.

The growing mobile manufacturing activity has saved the country an estimated Rs 3 lakh crore in foreign exchange in lieu of import substitution and created and domestic value addition, he further added. The mobile handset and component manufacturing ecosystem is growing in India. In 2017-18, an estimated 225 million handsets were assembled/manufactured in India. India recently replaced Vietnam to become second largest producer of mobile phones in the world.

While Mohindroo is optimistic about the growth of mobile handset and components manufacturing in India, he said there are still a number of challenges that need to be addressed. “The industry faces serious challenges in terms of lack of a competitive corporate tax regime, lack of ready to move infrastructural facilities to start production activity from the word ‘GO’ etc, the Government must undertake expeditious measures to address these pressing challenges through suitable regulatory/ incentivisation interventions.”

India now has 268 mobile handset and component manufacturing units, 6.7 lakh jobs created: ICEA

 

[vstol Jockey]

I had been writing about how the RBI Governor is out to finish off all the gains of BJP govt and sabotage our economy. I had been posting this for last over three years that there is a concerted effort to ensure that BJP losses 2019 elections and to that end the credit flow was curtailed resulting in sub-optimal performance of economy and job creation. Killing of MSMEs which are the largest job providers in organised sector by restricting cash to NBFCs which are the biggest funders of MSME sector. Now the latest shot from RBI governor is new changes for maintaining ATMs. I had always blamed Jai-Italy for delaying GST implementation to ensure that we have highest inflation in run up to 2019 elections. Every ATM provides 10 jobs directly and over 15 indirectly and feeds 15 families amounting to 75 people considering an average family size of 5 persons in India. Read on. Jaichands rule the roost.
Half of India's ATMs may shut down by March 2019, warns industry body - Times of India

 

[randomradio]

I had been writing about how the RBI Governor is out to finish off all the gains of BJP govt and sabotage our economy. I had been posting this for last over three years that there is a concerted effort to ensure that BJP losses 2019 elections and to that end the credit flow was curtailed resulting in sub-optimal performance of economy and job creation. Killing of MSMEs which are the largest job providers in organised sector by restricting cash to NBFCs which are the biggest funders of MSME sector. Now the latest shot from RBI governor is new changes for maintaining ATMs. I had always blamed Jai-Italy for delaying GST implementation to ensure that we have highest inflation in run up to 2019 elections. Every ATM provides 10 jobs directly and over 15 indirectly and feeds 15 families amounting to 75 people considering an average family size of 5 persons in India. Read on. Jaichands rule the roost.
Half of India's ATMs may shut down by March 2019, warns industry body - Times of India

The RBI rules are fine. This "study" is just fear mongering.

RBI sets deadline for ATM upgrade
The first set of measures to be completed by August 2018 include, implementing security measures such as Basic Input Output System (BIOS) password, disabling USB ports, disabling auto run facility, applying the latest patches of operating system and other softwares, terminal security solution and time-based admin access.
Meanwhile, lenders need to implement anti-skimming and whitelisting solution by March 2019. The central bank has also asked them to upgrade all the ATMs with supported versions of the operating system. These upgrades, RBI added, should be carried out in a phased manner. Not less than 25% of the ATMs should be upgraded by September 2018; at least 50% should be upgraded by December 2018; at least 75% by March 2019 and the rest by June 2019.

According to RBI, the plan is to upgrade all ATMs by June 2019. In case they don't, the banks will be fined. And, no, ATM companies can't simply shut down ATMs willy-nilly. ATM companies are using their "union" to scare people, nothing else.

Not to mention, the timing and security rules were created by Home Ministry, not RBI.
No ATM to be replenished with cash after 9 pm from next year
No ATM will be replenished with cash after 9 pm in cities and 6 pm in rural areas from next year even as two armed guards will accompany crisp notes in transit as per a new directive issued by the Home Ministry.

So why bring the RBI into it? The RBI's software upgrade rule costs peanuts in comparison to the Home Ministry's directive.

 

[vstol Jockey]

The RBI rules are fine. This "study" is just fear mongering.

RBI sets deadline for ATM upgrade
The first set of measures to be completed by August 2018 include, implementing security measures such as Basic Input Output System (BIOS) password, disabling USB ports, disabling auto run facility, applying the latest patches of operating system and other softwares, terminal security solution and time-based admin access.
Meanwhile, lenders need to implement anti-skimming and whitelisting solution by March 2019. The central bank has also asked them to upgrade all the ATMs with supported versions of the operating system. These upgrades, RBI added, should be carried out in a phased manner. Not less than 25% of the ATMs should be upgraded by September 2018; at least 50% should be upgraded by December 2018; at least 75% by March 2019 and the rest by June 2019.

According to RBI, the plan is to upgrade all ATMs by June 2019. In case they don't, the banks will be fined. And, no, ATM companies can't simply shut down ATMs willy-nilly. ATM companies are using their "union" to scare people, nothing else.

Not to mention, the timing and security rules were created by Home Ministry, not RBI.
No ATM to be replenished with cash after 9 pm from next year
No ATM will be replenished with cash after 9 pm in cities and 6 pm in rural areas from next year even as two armed guards will accompany crisp notes in transit as per a new directive issued by the Home Ministry.

So why bring the RBI into it? The RBI's software upgrade rule costs peanuts in comparison to the Home Ministry's directive.

RBI Governor is whom I am bringing in the picture. Now that they have deferred basel-4 to 2020, how about doing the same to ATMs? They will not as the aim is to strangle Indian Economy and ensure that BJP looses 2019 however the vibrations from ground that I am hearing about these five states going to polls is that BJP will get Govt in Rajasthan also but with reduced majority and may have 4-1 or even 5-0 score thru alliance with TRS. TRS might ally with BJP in Telangana as the CM candidate of BJP has galvanised hindu voters and that will completely ruin the electoral math of most parties.
The RAW boss in south India was compromised by an PanAm airhosttess in 1981, they waited till 1988 to use him and force him to co-operate with them. You don't know how the assets are planted and how they are nurtured. I was taught this in counter intelligence course in IN. Was it a fluke or design that Raghuram Rajan and Urjit Patel appear on Indian scene together in 2007 and both with IMF background and backing? One in Central govt other in Gujrat Govt? But why in Gujrat Govt? Read my bro, pls read. First call to make Modi PM of India for 2009 elections started in 2006. The people controlling these two men played it safe and planted their men in both places. Modi thought he had got rid of Raghram Rajan by appointing a PIO Gujrati whom he gave Indian citizenship. But the truth is that this PIO Gujrati was placed for this very reason to win confidence of Modi and sabotage Indian economy by rising to the highest and most destructible position of RBI Governor.

 

[Itachi]

Mobile component makers to invest up to $2 billion by March

Investments from mobile phone component makers are likely to reach up to USD 2 billion by March 2019, ICEA Chairman Pankaj Mohindroo said Wednesday.

The India Cellular and Electronics Association (ICEA) said that the industry has vision to increase the total number of mobile phone segment factories to 1,800 and generate 50 lakh jobs by 2025. (Representative image: Reuters)

Investments from mobile phone component makers are likely to reach up to USD 2 billion by March 2019, ICEA Chairman Pankaj Mohindroo said Wednesday. He also said that the unique number of factories in the segment have more than doubled to 268 in the current financial year. The India Cellular and Electronics Association (ICEA) said that the industry has vision to increase the total number of mobile phone segment factories to 1,800 and generate 50 lakh jobs by 2025.

“By the end of March, we expect cumulative investments from mobile component makers, PCB (motherboard) assembly, etc, for this fiscal will be in the range of USD 1.5-2 billion (Rs 10,500-14,000 crore),” Mohindroo said. According to the ICEA, employment in the segment has increased to 6.7 lakh till date, from 4.5 lakh in 2017-18. Data shared by the ICEA showed mobile handset makers in the country have increased to 127 from 59, mobile phone battery units are up by over three-fold to 65 from 20, and mobile charger units over four-times to 130 from 27, etc, between this year and the previous fiscal.

ICEA data showed 225 mobile phones worth Rs 1.32 lakh crore were manufactured in India in 2017. “We have already reported that the growing mobile manufacturing activity has saved the country Rs 3 lakh crore in foreign exchange in lieu of import substitution and created domestic value addition of over 60,000. Never ever in the history of India or anywhere in the world the mobile handset or electronics manufacturing eco-system had witnessed such an unparalleled growth as seen in India in the current phase,” Mohindroo said.
He said that for growth of the mobile industry, the country needs to start looking at manufacturing for the world. “We now need to start looking at value addition, enhance ease of doing business to boost mobile phone manufacturing. We have to start making for the world to grow our industry,” Mohindroo said.

Mobile handset companies have sought a 10-year tax holiday along with regulatory reforms to focus on exports that can enable the industry to grow by over 11-fold to USD 230 billion by 2025. An ICEA-McKinsey report said if India extends its ambitions to the export market, it could manufacture around 1,250 million handsets by 2025 and create an industry worth around USD 230 billion.

Mobile component makers to invest up to $2 billion by March

 

[randomradio]

RBI Governor is whom I am bringing in the picture. Now that they have deferred basel-4 to 2020, how about doing the same to ATMs? They will not as the aim is to strangle Indian Economy and ensure that BJP looses 2019 however the vibrations from ground that I am hearing about these five states going to polls is that BJP will get Govt in Rajasthan also but with reduced majority and may have 4-1 or even 5-0 score thru alliance with TRS. TRS might ally with BJP in Telangana as the CM candidate of BJP has galvanised hindu voters and that will completely ruin the electoral math of most parties.
The RAW boss in south India was compromised by an PanAm airhosttess in 1981, they waited till 1988 to use him and force him to co-operate with them. You don't know how the assets are planted and how they are nurtured. I was taught this in counter intelligence course in IN. Was it a fluke or design that Raghuram Rajan and Urjit Patel appear on Indian scene together in 2007 and both with IMF background and backing? One in Central govt other in Gujrat Govt? But why in Gujrat Govt? Read my bro, pls read. First call to make Modi PM of India for 2009 elections started in 2006. The people controlling these two men played it safe and planted their men in both places. Modi thought he had got rid of Raghram Rajan by appointing a PIO Gujrati whom he gave Indian citizenship. But the truth is that this PIO Gujrati was placed for this very reason to win confidence of Modi and sabotage Indian economy by rising to the highest and most destructible position of RBI Governor.

The ATM directive came from Home Ministry. You should be attacking Rajnath Singh.

As for Rajan and Patel, both have done a good job. So whoever is this group attempting to "strangle" India's economy, more power to them. Both Governors have managed to bring out India's best macroeconomic figures in history.

 

[CountryFirst]

RBI Governor is whom I am bringing in the picture. Now that they have deferred basel-4 to 2020, how about doing the same to ATMs? They will not as the aim is to strangle Indian Economy and ensure that BJP looses 2019 however the vibrations from ground that I am hearing about these five states going to polls is that BJP will get Govt in Rajasthan also but with reduced majority and may have 4-1 or even 5-0 score thru alliance with TRS. TRS might ally with BJP in Telangana as the CM candidate of BJP has galvanised hindu voters and that will completely ruin the electoral math of most parties.
The RAW boss in south India was compromised by an PanAm airhosttess in 1981, they waited till 1988 to use him and force him to co-operate with them. You don't know how the assets are planted and how they are nurtured. I was taught this in counter intelligence course in IN. Was it a fluke or design that Raghuram Rajan and Urjit Patel appear on Indian scene together in 2007 and both with IMF background and backing? One in Central govt other in Gujrat Govt? But why in Gujrat Govt? Read my bro, pls read. First call to make Modi PM of India for 2009 elections started in 2006. The people controlling these two men played it safe and planted their men in both places. Modi thought he had got rid of Raghram Rajan by appointing a PIO Gujrati whom he gave Indian citizenship. But the truth is that this PIO Gujrati was placed for this very reason to win confidence of Modi and sabotage Indian economy by rising to the highest and most destructible position of RBI Governor.

Oh my god my head is rolling reading all this!!! Modi should just bite the bullet and get him fired (and face Lutyans) or use RAW and get him removed fast!!!

Why can't Modi just get RAW's help!!

 

[Itachi]

White goods makers to lead Make in India campaign with over Rs 6,500 crore investment: Report

Importing white goods and their components became unviable after the government increased import duties on them in September

Representative image
New Delhi: After smartphones and televisions, now manufacturers of refrigerators, washing machines and air conditions are all set to lead the Make in India campaign with investments in excess of Rs 6,500 crore lined up for the next two years, the Economic Times reported.
Importing white goods and their components became unviable after the government increased import duties on them in September amid rupee's decline against the US dollar to keep the current account deficit in check.

According to the ET report, Germany's Bosch and Siemens, Turkey’s Arcelik, China’s Midea, Haier and TCL, Japan’s Panasonic and domestic brands such as Godrej and BPL are planning investments in manufacturing and backward integration into parts.
Guangdong Meizhi Compressor Co. is setting up a new plant to manufacture the devices used in cooling units while Shanghai Hitachi Electrical Appliance Co., a joint venture between Hitachi Japan and Shanghai Highly Group of China, is expanding its compressor unit in Gujarat, the business daily added citing industry executives.

Typically, entry-to-mid-segment products in the consumer appliance industry are manufactured locally while for premium models and their components, manufacturers rely on imports.

“After the recent import duty hike by the government, it is no more a question whether to locally produce or import and sell,” the ETreport quoted Gunjan Srivastava, managing director of BSH Household Appliances as saying. BSH Household Appliances sells Bosch and Siemens machines in India.

“We need to invest in local manufacturing and create a Make in India base, otherwise it will be difficult,” he added.

China’s top appliance maker Haier has finalised plans to invest Rs 3,000 crore in its new plant in Noida, thrice what it did for its existing unit in Pune. The Noida plant will manufacture components and premium models, the publication quoted Haier Appliances India president Eric Braganza as saying.

TCL Corp country head Mike Chen told ET that the company will start manufacturing appliances and its components from next year at its upcoming Rs 2,000 crore plant in Tirupati where it will also produce televisions.

White goods makers to lead Make in India campaign with over Rs 6,500 crore investment: Report | Business News

 

[RISING SUN]

Insolvency law catalysed recovery of Rs 3 lakh crore in 2 yrs, says Injeti Srinivas
The insolvency and Bankruptcy Code (IBC) has catalysed the recovery of around Rs 3 lakh crore from various default cases, directly or indirectly, since its inception in 2016, Corporate Affairs Secretary Injeti Srinivas said on Saturday.

The average recovery in the 60-odd insolvency cases that have seen resolution over the past two years has been to the tune of 46 per cent, against just 26 per cent under the earlier Board for Industrial and Financial Reconstruction (BIFR) regime, Srinivas said, highlighting the effectiveness of the nascent insolvency framework.

Explaining the numbers, the secretary said while the resolution of the 60 cases have so far yielded around Rs 71,000 crore, some Rs 50,000 crore is expected to be recovered from Essar Steel, which is at the advanced stage of being resolved. Apart of these, around 3,500 cases involving defaults of Rs 1.2 lakh crore were withdrawn from the National Company Law Tribunals (NCLTs) before applications were admitted by the adjudicating authority, suggesting that creditors might have recovered money from debtors by just issuing threats of the IBC.

Non-performing assets (NPAs) worth another Rs45,000-50,000 crore were converted to standard accounts after the borrowers had paid back, ostensibly due to fears of the IBC being invoked by the lenders. At an event organised by Ficci, Srinivas also called upon the principal stakeholders of the insolvency ecosystem —the NCLTs, the committee of creditors and resolution professionals — to work towards expediting the resolution process. Speaking on the occasion, Insolvency and Bankruptcy Board of India Chairperson MS Sahoo was critical of the tendency of some stakeholders to blame the oversight mechanism for any delay in resolution.

He pitched for greater coordination and cooperation between the committee of creditors and resolution professionals to speed up the process. Hailing the IBC as a potent weapon in the fight against stressed assets, Sahoo, however, said the code doesn’t claim to be a panacea of all ills and relying solely on it to set right every case isn’t advisable. “Exclusive reliance on IBC to sort out every matter is not right,” he said.

There have been instances where insolvency applications were filed with the NCLTs without much merit, which has served only to clog the adjudicating system. FE
Insolvency law catalysed recovery of Rs 3 lakh crore in 2 yrs, says Injeti Srinivas

 

[RISING SUN]

ESR-Allianz Real Estate JV to invest $1 billion in India
Asia Pacific-focused logistics developer e-Shang Redwood (ESR) has entered into a strategic partnership with global asset manager Allianz Real Estate to invest around $1 billion, including debt, into India’s rapidly growing logistics and industrial property market.

The joint venture will focus on developing large-scale logistics and industrial facilities in eight key cities—Mumbai, Pune, Chennai, Delhi, Ahmedabad, Kolkata, Bengaluru and Hyderabad—with an opportunistic approach to investments in other markets in India, the companies announced on Friday.

In addition, the investment programme will also identify opportunities to acquire assets in these cities.

“We are delighted to partner with Allianz, an existing strategic partner of ESR in other geographies. This JV with a leading institutional investor who has deep experience in Asia marks a key milestone in our regional growth plan,” Charles de Portes, co-founder and president of ESR, said in a statement.

The proposed investment programme will start with an immediate equity commitment of $225 million, to be funded on a 50:50 basis by Allianz and ESR. This would subsequently be converted into a $1 billion assets under management platform. The programme’s strategy is to leverage structural trends in tier one and selective tier two cities to build a long term, cash flow-positive logistics portfolio by acquiring a blend of develop-to-core, forward purchases, and stabilized or stabilizing assets.

On Thursday, ESR kicked off its first project in India, an industrial and logistics park in Chakan MIDC (Maharashtra Industrial Development Corporation), Pune.

Warburg Pincus-backed ESR is one of Asia’s largest developers and operators in logistics and warehousing, formed by the merger of e-Shang Cayman Ltd and Redwood Group Asia Pte. Ltd in 2016. Based out of Hong Kong and Singapore, it owns and manages around 7.3 million sq. m of assets in China, Japan, Singapore and South Korea.

Alongside the growth in the e-commerce sector in the country, the increasing internet and smartphone penetration, growing acceptance of online payments and favourable demographics will continue to propel e-commerce growth, spurring demand for modern logistics facilities, ESR said.

“India’s logistics sector is coming of age. The sector is benefitting from a lot of favourable trends, such as stellar consumption patterns, continued infrastructure spending, increasing transparency and the nation-wide implementation of a uniform indirect tax system,” said Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate.

In India, the warehousing and logistics sector attracted investments of more than a billion dollars in 2017 and is witnessing a huge interest in building businesses around steady rental income. Canada’s Brookfield Asset Management Inc. is planning to enter the industrial real estate space, while Sydney’s LOGOS Group and Assetz Property Group from Singapore partnered in 2017 and are scouting for land. Embassy Industrial Parks Pvt. Ltd, Ascendas-Singbridge Group and Mahindra Lifespace Developers Ltd also plan to build industrial parks and clusters.
ESR-Allianz Real Estate JV to invest $1 billion in India

 

[RISING SUN]

Finance ministry hopes 3-4 banks to be out of PCA this fiscal
The finance ministry hopes that 3-4 banks would come out of the RBI's Prompt Corrective Action watchlist this fiscal, following the expected modification of guidelines and apparent improvement in bottomline of the public sector banks, sources said. Of the 21 state-owned banks, 11 are under the PCA framework, which imposes lending and other restrictions on weak lenders.

These are Allahabad BankNSE 0.44 %, United Bank of IndiaNSE -0.45 %, Corporation Bank, IDBI BankNSE -0.58 %, UCO BankNSE -0.52 %, Bank of India, Central Bank of IndiaNSE -0.98 %, Indian Overseas BankNSE -0.68 %, Oriental Bank of Commerce, Dena Bank and Bank of MaharashtraNSE -1.42 %.

Last week, the RBI in its central board meeting decided the issue of banks under Prompt Corrective Action (PCA) will be examined by Board for Financial Supervision (BFS) of the central bank.

The PCA framework kicks in when banks breach any of the three key regulatory trigger points -- namely capital to risk weighted assets ratio, net non-performing assets (NPA) and return on assets (RoA).

Globally, PCA kicks in only when banks slip on a single parameter of capital adequacy ratio, and the government and some of the independent directors of the RBI board, like S Gurumurthy, are in favour of this practice being adopted for the domestic banking sector as well.

However, the RBI has strongly defended the PCA framework in the past. Last month, its Deputy Governor Viral Acharya had said that any relaxation in the PCA imposed on weak banks should be avoided as it is an essential element of its financial stability framework.

"Imposition of PCA can thus be seen as first, stabilising the banks at risk, and then, undertaking the deeper bank reforms needed for long-term viability of the business model of these banks," he had said.

Sources further said various measures taken by the government, including implementation of Insolvency and Bankruptcy Code (IBC), have yielded good results in terms of reining bad loans and increasing recovery.

So, the review by the BFS of RBI, improving performance of the banks and recovery due to IBC give hope that 3-4 banks could move out of PCA by the end of March 2019, they added.

Banks have made recovery of Rs 36,551 crore during the first quarter, registering a 49 per cent growth over the last fiscal.

At the same time, operating profit has risen by 11.5 per cent, while losses fell 73.5 per cent on quarter on quarter basis, he said, adding asset quality has been addressed through falling NPA slippage.

Provision Coverage Ratio of banks has improved to a healthy level of 63.8 per cent.
Finance ministry hopes 3-4 banks to be out of PCA this fiscal

 

[RISING SUN]

India GDP to slow down marginally, but remain strong at 7.5% in 2019 & 2020: OECD
India ’s economic growth will slow down somewhat but remain robust, at close to 7.50% in 2019 and 2020, the Organisation for Economic Cooperation and Development (OECD) has said. India’s gross domestic product (GDP) grew 6.7% in 2017-18. OECD projects GDP at market prices to grow 7.3% in 2019 and 7.4% in 2020 from 7.5% in 2018.

“Economic growth will slow somewhat but remain robust, at close to 7.5% in 2019 and 2020,” the Paris-based organisation said for India in its 2018 Economic Outlook.

Tighter financial conditions, higher oil prices, adverse terms of trade, lower growth in partner countries, and rising political uncertainties in India and abroad will tend to reduce growth, it said.

The Reserve Bank of India expects FY19 growth at 7.4%. Global credit rating agency Moody's Investors Service has projected India’s economic growth to moderate to 7.3% in 2019 and 2020 as higher oil prices combined with rupee depreciation and monetary tightening dampen domestic demand.

OECD said though higher oil prices and rupee depreciation are putting pressure on demand, inflation, current account and public finances, and structural reforms will aid business investment and exports.


These reforms include the new Insolvency and Bankruptcy Code, smoother implementation of the Goods and Services Tax (GST), better roads and electricity and bank recapitalisation.

Pressures on inflation are also rising from recent increases in wages and housing allowances for public employees. Core inflation and inflation expectations are edging up, it cautioned. However, the organisation said monetary policy will need to be tightened as inflation expectations are trending up and there are several upside risks to inflation.

OECD said the Reserve Bank’s credibility in targeting inflation and its projected marginal increases in policy rates will help anchor inflation.

Containing the relatively high public debt-to-GDP ratio would require controlling contingent liabilities, such as those stemming from public enterprises and banks, it said.

The organisation also sought further subsidy reform to help make social spending more effective and improvement in public banks’ governance.

On the trade front, it noted that the hike in US tariffs on Chinese imports could benefit India’s exports, particularly in the textile sector.
India GDP to slow down marginally, but remain strong at 7.5% in 2019 & 2020: OECD

 

[RISING SUN]

Seafood exports likely to remain flat
Seafood exports are likely to be flat in the coming months due to sluggish demand, brought on by a combination of factors, says report. India is the second largest fish producer in the world after China and accounts for nearly 6% of global fish production.

California-based fintech company Drip Capital reports that Indian shrimp exports show mixed signs. First, the competition from China, Ecuador, Thailand, and Vietnam is at an all-time high.

Second, there have been issues ranging from poor stocking, to diseases, to increasingly stringent quality checks by importers.

Third, exports to the European Union — historically the biggest buyer of Indian marine products (including shrimp) — have fallen,” the commodity insight by the company states.

Seafood exports from the nation for the last fiscal touched $7.08 billion with 13,77,244 tonne exported, against $ 5.77 billion with 11,34,948-tonne marine products in the year-ago period, according to state-run Marine Products Exports Development Authority (MPEDA) data.

Vannamei or white shrimps dominate Indian exports with nearly 70% share in dollar earnings.
Anwar Hashim, managing director of Abad Fisheries and former president of Seafood Exporters Association of India (SEAI), told FE the market was quiet after shipping for the festive demand from the US market.

“Indian vannamei production may not increase this season as estimated and may remain at last year’s level. Demand for Indian shrimp has subdued after a good growth.Demand for other fish like cuttle and squid remains good,” he added.

In the first nine months of 2018, Indian shrimp exports to US was 175,838 tonne, against 151,010 in the corresponding period the previous year, a growth of 16 %.

India was the largest exporter of frozen shrimp to the US in 2017 with 32% share after south Asian producers like Thailand suffered due to diseases in fish farms.

While the first half of the year was not good for aquaculture farmers with prices declining sharply, the exports to US market continued. Some of the Indian farmers did not seed their farms after incurring huge losses in the first quarter’s harvest when market prices plunged almost 60% .

The depreciation of the Indian rupee has given some support but the volatility of the market has left exporters concerned.

Drip reports there seemed to be many macro changes that are causing exporters to change their forward-looking strategies.
Seafood exports likely to remain flat: Report

 

[RISING SUN]

Online residue report to make grapes export easier, curb farmers’ exploitation
Now, grape growers across the country can get their residue reports online. This move by Agriculture and Processed Food Products Export Development (Apeda) is expected to help grape farmers and prevent their exploitation at the hands of the exporters of the fruit. Residue report gives details of plots and chemicals in a crop.

Apeda has created a separate link on its website where the farmer has to enter the registration number of the garden to login into a page and the residue report of his orchard will be immediately available. Apeda has made this facility available for farmers from the season of 2018-19, ending the long wait of growers.
For the past few years, farmers who wished to export grapes were not getting their reports on time which made exports difficult and therefore this has been a long-pending demand, industry people said. They have been following up with the National Research Centre for Grapes,the agriculture commissioner and horticulture commissioner in Maharashtra.

According to Jagannath Khapre, president, All India Grape Exporters Association, this move will help bring in transparency and curb exploitation of farmers at the hands of exporters.

“The farmer is the biggest stakeholder and he needs to get the residue report first. In the past few seasons, several farmers were not getting any details and were exploited by exporters who would tell them that the extent of chemicals in their consignment was high and offered low prices. The farmer was not in a position to demand and question. This move will now help him,” he said.

Khapre said several farmers were still waiting and had not registered themselves on GrapeNet this season for this reason. Their registration on GrapeNet is mandatory if the farmer wishes to export his grapes.

Last season, 38,000 vineyards have been registered under GrapeNet. Feasibility reports were being prepared for other nations so that grapes from India do not face any residue-related issues.

Last season, grape exports touched 1,80,000 tonne. Khapre said exports could be similar or around 2 lakh tonne this year.

Like Europe, other countries including China, Indonesia and Russia have decided to issue stricter residue monitoring plan (RMP) norms for India. This year onwards, the government has decided to issue certificates to exporters to these nations as well so that exports do not face any hurdles. Khapre said China, Russia and Indonesia had given a year to Indian exporters to meet the norms.

India has been attempting to make inroads into new export markets such as China, Russia, Indonesia and Saudi Arabia. However, these countries have now decided to come up with norms for Indian grapes.

Some of the norms are stricter than those set by the European Union. A couple of years ago, the EU had agreed to retain the residue levels of chlormequat chloride, a plant growth regulator, at 0.05 parts per million (ppm), for a period of two years.
Online residue report to make grapes export easier, curb farmers’ exploitation

 

[RISING SUN]

India recorded highest average real wage growth in South Asia during 2008-17
India recorded the highest average real wage growth in South Asia during 2008–17, according to a report by the International Labour Organisation (ILO).

Reflecting more rapid economic growth than in other regions, workers in Asia and the Pacific have enjoyed the highest real wage growth among all regions over the period 2006–17, with countries such as China, India, Thailand and Viet Nam leading the way, the Global Wage Report 2018/19 said.

In South Asia, India led the average real wage growth in 2008–17 at 5.5 against a regional median of 3.7. Following India was Nepal (4.7), Sri Lanka (4), Bangladesh (3.4), Pakistan (1.8) and Iran (0.4).

The report said that all emerging G20 countries except Mexico experienced significant positive growth in average real wages between 2008 and 2017.

"Wage growth continues in Saudi Arabia, India and Indonesia, whereas in Turkey it declined to around 1 per cent in 2017," it said adding that South Africa and Brazil have experienced positive wage growth starting from 2016 after a phase of mostly zero growth during the period 2012–16, with negative growth in Brazil during 2015–16.

Russia suffered a significant drop in wage growth in 2015, again owing to the decline in oil prices, but has since then bounced back with moderate though positive wage growth.

It also noted that a number of countries have recently undertaken measures to strengthen their minimum wage with a view to providing more adequate labour protection.

South Africa announced the introduction of a national minimum wage in 2018, while lawmakers in India are examining the possibility of extending the legal coverage of the current minimum wage from workers in ‘scheduled' occupations to all wage employees in the country, it said.

The report added that wages grew higher and faster in less well-off countries last year than in richer nations, but salaries are still far too low in the developing world. Pay rose by just 0.4 per cent during last year in advanced economies, but grew at over four per cent in developing countries.

"We are seeing some degree – I don't want to exaggerate it - of convergence," said ILO Director-General Guy Ryder, noting that "wages in developing countries are increasing more quickly than those in higher-income countries."

"That sounds like good news, because we all want to see convergence around the world…But let's not exaggerate, because the gaps are still very, very big. Very often the level of wages is still not high enough for people to meet their basic needs," he added.

Overall, global wage growth declined to 1.8 per cent in 2017 from 2.4 per cent in 2016. The findings are based on data from 136 countries. In the last 20 years, average real wages have almost tripled in emerging and developing G20 countries, the ILO report also found, while in advanced G20 countries, they have increased by just nine per cent.

Faced with such low salary growth in richer economies in 2017 – with pay growing at its lowest level in a decade - the ILO chief noted with concern that this has happened despite a recovery in global output.

For the first time, the ILO report also focuses on the global gender pay gap, using data from 70 countries and some 80 per cent of employees worldwide. Its findings indicate that despite some significant regional differences, men continue to be paid around 20 per cent more than women; "perhaps the biggest single injustice in the world of work", Ryder said.

In high-income countries the gender pay gap is at its biggest in top-salaried positions. In low and middle-income countries, however, the gap is widest among lower-paid workers, the ILO report found.

Its data also suggests that traditional explanations for this - such as differences in the levels of education between men and women who work - play only a "limited" role in explaining gender pay gaps.

"In many countries women are more highly educated than men but earn lower wages, even when they work in the same occupational categories," said ILO expert Rosalia Vazquez-Alvarez.

"The wages of both men and women also tend to be lower in enterprises and occupations with a predominantly female workforce."

To reduce gender pay gaps, she recommended that more emphasis should be placed on ensuring equal pay for women and men, and on addressing the lower value placed on women's work.
India recorded highest average real wage growth in South Asia during 2008-17: Report

 

[lcafanboy]

Rupee gains 17 paise in opening trade at 69.67 per dollar
MoneyControl • Nov 30, 2018 09:04 AM IST
By Moneycontrol News


The Indian rupee opened higher by 17 paise at 69.67 per dollar on Friday versus previous close 69.84.

Yesterday the rupee ended with a gain of 78 paise at against Wednesday's closing of 70.62 per dollar on the back of falling crude oil prices. This was highest closing for rupee against dollar since August 21.

The dollar-rupee December contract on the NSE was at 70.10 in the previous session. December contract open interest declined 1.50% in the previous session, said ICICIdirect.
Rupee gains 17 paise in opening trade at 69.67 per dollar

GOOD NEWS. Indian rupee breaches RS 70 to dollar now @69.67/dollar...