Indian Economy : News,Discussions & Updates
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Seems like some movement in the Korea front. We do have a FTA with them, but that seemed to have helped them and not us.
Singapore investors bet big on India's real estate sector
Singapore-based investors are betting big on India’s commercial realty and other sunshine sectors, including logistics and warehousing, real estate consulting firm ANAROCK said in a report.
Top Singapore-based private equity (PE) firms such as GIC, Ascendas-Singbridge and Xander are funnelling billions of dollars into India’s realty sector, particularly in South Indian cities, according to the report.
About one-third of the total $14.01 billion PE investment in India’s realty sector between 2015 and 2018 was made by Singaporean firms, the highest among both domestic and foreign investors, according to ANAROCK’s report Private Equity in Indian Real Estate.
“With funding from banks and non-banking financial companies drying up, Indian developers are being forced to explore debt and equity funding from various PE firms. Singapore investors were on top of the list, followed by PE players from US and Canada. After establishing a strong base in China, India was their next destination of preference," said Shobhit Agarwal, managing director and chief executive officer at ANAROCK Capital.
Singapore-based investors and developers have gained a substantial foothold in India’s property market over the last four years, with their more patient and long-term outlook, he said. They pumped $1.15 billion into Indian real estate in 2015 and 2016, and nearly $3.5 billion in 2017 and 2018. In recent years, they have also started diversifying their portfolios and eyeing sunshine sectors such as logistics and warehousing. In the past four years, GIC has invested close to $2.5 billion, mainly in cities such as Mumbai, Chennai, Bangalore, Hyderabad and NCR.
For Ascendas, the preferred regions have been Hyderabad, Chennai and Mumbai Metropolitan Region.
Meanwhile, US-based investors such as Blackstone, Goldman Sachs, Hines, Warburg Pincus and Proprium Capital have invested nearly $4 billion in India in the last four years. Blackstone infused $2.9 billion in this period. PE firms from Canada, led by Brookefield and CPPIB were the third largest investors with capital infusion of close to $2.3 billion in four years.
Singapore investors bet big on India's real estate sector
Singapore-based investors are betting big on India’s commercial realty and other sunshine sectors, including logistics and warehousing, real estate consulting firm ANAROCK said in a report.
Top Singapore-based private equity (PE) firms such as GIC, Ascendas-Singbridge and Xander are funnelling billions of dollars into India’s realty sector, particularly in South Indian cities, according to the report.
About one-third of the total $14.01 billion PE investment in India’s realty sector between 2015 and 2018 was made by Singaporean firms, the highest among both domestic and foreign investors, according to ANAROCK’s report Private Equity in Indian Real Estate.
“With funding from banks and non-banking financial companies drying up, Indian developers are being forced to explore debt and equity funding from various PE firms. Singapore investors were on top of the list, followed by PE players from US and Canada. After establishing a strong base in China, India was their next destination of preference," said Shobhit Agarwal, managing director and chief executive officer at ANAROCK Capital.
Singapore-based investors and developers have gained a substantial foothold in India’s property market over the last four years, with their more patient and long-term outlook, he said. They pumped $1.15 billion into Indian real estate in 2015 and 2016, and nearly $3.5 billion in 2017 and 2018. In recent years, they have also started diversifying their portfolios and eyeing sunshine sectors such as logistics and warehousing. In the past four years, GIC has invested close to $2.5 billion, mainly in cities such as Mumbai, Chennai, Bangalore, Hyderabad and NCR.
For Ascendas, the preferred regions have been Hyderabad, Chennai and Mumbai Metropolitan Region.
Meanwhile, US-based investors such as Blackstone, Goldman Sachs, Hines, Warburg Pincus and Proprium Capital have invested nearly $4 billion in India in the last four years. Blackstone infused $2.9 billion in this period. PE firms from Canada, led by Brookefield and CPPIB were the third largest investors with capital infusion of close to $2.3 billion in four years.
Singapore investors bet big on India's real estate sector
TCS works with Israel FinMin to build tech for small banks
A small number of large banks and financial institutions dominate the entire financial and credit sector in Israel.
Megha Mandavia | ET Bureau |
April 16, 2019, 07:56 IST
Tata Consultancy Services (TCS) is working with Israel’s finance ministry to build platforms that will make technology affordable for small banks in the country, a top company executive told ET.
With the Indian IT industry undergoing a transformation, TCS has invested in developing platforms in the banking, insurance, capital markets and retail segments. “In India, we created a core banking platform and have taken it to other markets. Having developed the first one, the Ministry of Finance wanted us to set up a complete banking service bureau in Israel,” said N Ganapathy Subramaniam, Chief Operating Officer at TCS.
Bank Yahav, its customer, went live in 2017 with TCS’ BaNCS Universal Banking platform, following which the software company established an IT infrastructure and banking application landscape to the match the standards of the bank and regulators in Israel. “The Ministry wanted to move beyond the big three or four big banks. They want new banks to come up at affordable technology; they can quickly adopt technology that straightaway goes to an open banking concept,” said Subramaniam.
A small number of large banks and financial institutions dominate the entire financial and credit sector in Israel, despite efforts by the regulator to break the monopoly and widen the market. An open banking system will use open APIs that enable third party developers to build applications and services around the financial institution. “Banking platforms are significant for TCS. Platforms are the way to go. It gives faster go-to market for IT firms. It can be used by clients with minimum customisation,” said Urmil Shah, a research analyst with brokerage IDBI Capital.
TCS says its bet on platforms is yielding returns.
TCS works with Israel FinMin to build tech for small banks
A small number of large banks and financial institutions dominate the entire financial and credit sector in Israel.
Megha Mandavia | ET Bureau |
April 16, 2019, 07:56 IST
Tata Consultancy Services (TCS) is working with Israel’s finance ministry to build platforms that will make technology affordable for small banks in the country, a top company executive told ET.
With the Indian IT industry undergoing a transformation, TCS has invested in developing platforms in the banking, insurance, capital markets and retail segments. “In India, we created a core banking platform and have taken it to other markets. Having developed the first one, the Ministry of Finance wanted us to set up a complete banking service bureau in Israel,” said N Ganapathy Subramaniam, Chief Operating Officer at TCS.
Bank Yahav, its customer, went live in 2017 with TCS’ BaNCS Universal Banking platform, following which the software company established an IT infrastructure and banking application landscape to the match the standards of the bank and regulators in Israel. “The Ministry wanted to move beyond the big three or four big banks. They want new banks to come up at affordable technology; they can quickly adopt technology that straightaway goes to an open banking concept,” said Subramaniam.
A small number of large banks and financial institutions dominate the entire financial and credit sector in Israel, despite efforts by the regulator to break the monopoly and widen the market. An open banking system will use open APIs that enable third party developers to build applications and services around the financial institution. “Banking platforms are significant for TCS. Platforms are the way to go. It gives faster go-to market for IT firms. It can be used by clients with minimum customisation,” said Urmil Shah, a research analyst with brokerage IDBI Capital.
TCS says its bet on platforms is yielding returns.
TCS works with Israel FinMin to build tech for small banks
TCS is on quite the roll recently.
TCS’ household connect in faraway Norway - Times of India
TCS wins core replacement at National Bank of Bahrain
tcs.com | error-502
https://www.bankingtech.com/2017/09/tcs-makes-intel-ligent-move-for-new-ai-centre/
https://www.bankingtech.com/2018/01/tcs-drools-over-two-delicious-insurtech-deals-for-2-7bn/
TCS’ household connect in faraway Norway - Times of India
TCS wins core replacement at National Bank of Bahrain
tcs.com | error-502
https://www.bankingtech.com/2017/09/tcs-makes-intel-ligent-move-for-new-ai-centre/
https://www.bankingtech.com/2018/01/tcs-drools-over-two-delicious-insurtech-deals-for-2-7bn/
DHL to add 10,000 trucks in India, bullish on growth prospects
DHL International, one of world’s largest logistics companies, will push for growth in India’s burgeoning e-commerce space with investments lined for buying of new trucks and upgrading to newer technologies.
The company entered the e-commerce solutions market last year and has added 745 trucks since then. As surface road transport commands a share of 60-65 percent of movement of all goods in India, DHL is looking to have a fleet of 10,000 trucks over the course of ten years.
Speaking to Moneycontrol, Malcolm Monteiro, CEO, DHL eCommerce Solutions, said: "We will keep adding trucks when we see the need. We will have 10,000 trucks in 10 years. These will be single and multi-axle trucks in the range of Rs 17-35 lakh. Besides this, investments are also going in towards technology."
DHL Group has promised to pump in Euro 200 million (Rs 1,500 crore) in investments into India by 2020. India's logistics spend stands at $200 billion a year as per Monteiro with most of that being unorganised.
Cold chain logistics, which are responsible for transporting perishable goods, is set to witness its market grow to Rs 47,000 crore by 2020, according to Ken Research.
"Cold chain logistics is a huge business and its growing phenomenally. Refrigerated trucks cost a lot more than conventional trucks. So, the costs of buying trucks will vary every year," said Monteiro.
Logistics costs in India stands at 13-14 percent of the cost of a product. The industry wants to bring this down to 10 percent to make it cheaper for the end consumer as well as boost operating margins. This can be achievable since developed economies logistics costs only 8-9 percent of the cost of the product.
As per a report prepared by rating agency CARE Ratings, India's logistics market is projected to be worth $215 billion by 2020-21 by recording a 10 percent compounded annual growth rate (CAGR) since 2016-17.
Development of logictics related infrastructure like dedicated freight corridors, logictics parks, free trade warehousing zones and container freight stations, are expected to improve efficiency, the report said.
"India is a single digit size to the total global operation of DHL. Growth rates in India are higher than most countries, including China," added Monteiro.
DHL to add 10,000 trucks in India, bullish on growth prospects
DHL International, one of world’s largest logistics companies, will push for growth in India’s burgeoning e-commerce space with investments lined for buying of new trucks and upgrading to newer technologies.
The company entered the e-commerce solutions market last year and has added 745 trucks since then. As surface road transport commands a share of 60-65 percent of movement of all goods in India, DHL is looking to have a fleet of 10,000 trucks over the course of ten years.
Speaking to Moneycontrol, Malcolm Monteiro, CEO, DHL eCommerce Solutions, said: "We will keep adding trucks when we see the need. We will have 10,000 trucks in 10 years. These will be single and multi-axle trucks in the range of Rs 17-35 lakh. Besides this, investments are also going in towards technology."
DHL Group has promised to pump in Euro 200 million (Rs 1,500 crore) in investments into India by 2020. India's logistics spend stands at $200 billion a year as per Monteiro with most of that being unorganised.
Cold chain logistics, which are responsible for transporting perishable goods, is set to witness its market grow to Rs 47,000 crore by 2020, according to Ken Research.
"Cold chain logistics is a huge business and its growing phenomenally. Refrigerated trucks cost a lot more than conventional trucks. So, the costs of buying trucks will vary every year," said Monteiro.
Logistics costs in India stands at 13-14 percent of the cost of a product. The industry wants to bring this down to 10 percent to make it cheaper for the end consumer as well as boost operating margins. This can be achievable since developed economies logistics costs only 8-9 percent of the cost of the product.
As per a report prepared by rating agency CARE Ratings, India's logistics market is projected to be worth $215 billion by 2020-21 by recording a 10 percent compounded annual growth rate (CAGR) since 2016-17.
Development of logictics related infrastructure like dedicated freight corridors, logictics parks, free trade warehousing zones and container freight stations, are expected to improve efficiency, the report said.
"India is a single digit size to the total global operation of DHL. Growth rates in India are higher than most countries, including China," added Monteiro.
DHL to add 10,000 trucks in India, bullish on growth prospects
Oil imports are a big big pinch for us.
1.We should aim for heavy investment in Hydro, Solar and Nuke power plants.
2. Investment in introduction of electric powered buses , electric rickshaws and electric taxis as a mainstay of public transport in every city.
3. More rapid electrification of Railways.
Job creation trebles in Feb at 8.61 lakh: EPFO payroll data
Net employment generation in the formal sector almost trebled to 8.61 lakh in February compared to 2.87 lakh in the same month of last year, according to the latest EPFO payroll data.
The retirement fund body Employees' Provident Fund Organisation has been releasing payroll data from April 2018, covering the period starting September 2017.
According to the latest data, the highest job creation was recorded in January 2019 at 8.94 lakh against the provisional estimate of 8.96 lakh released last month.
During February 2019, the highest number of 2.36 lakh jobs were created in the 22-25 years age group, followed by 2.09 lakh in the 18-21 years age bracket.
The data showed that 80.86 lakh new jobs were created in the 18 months period from September 2017 to February 2019.
However, the EPFO has revised downward the number of net subscribers added or new jobs created from September 2017 to January 2019 to 72.24 lakh from 76.48 lakh released last month.
The sharpest revision was for March 2018 in the latest report which showed contraction or exit of 55,934 members from the EPFO subscriptions. Last month, the EPFO payroll data had showed that as many as 29,023 members exited from its schemes in March 2018.
In February 2019, the EPFO data had showed that as many as 5,498 members joined EPFO schemes in March 2018.
On contraction in March 2018 numbers, the EPFO said, "March 2018 figure is negative due to large number of exits reported in the month of March, in view of it being the closing month of the financial year."
The EPFO said the data is provisional as updation of employee records is a continuous process and gets updated in subsequent months.
This is age-band wise data of new members registered under the EPFO where the first non-zero contribution received during a particular month. For each age-wise band, the estimates are net of the members newly enrolled, exited and rejoined during the month as per records of the EPFO, it added.
The estimates may include temporary employees whose contributions may not be continuous for the entire year. Members' data are linked to unique Aadhaar Identity, it added.
The EPFO manages social security funds of workers in the organised or semi organised sector in India and has more than 6 crore active members (with at least one-month contribution during the year).
Job creation trebles in Feb at 8.61 lakh: EPFO payroll data
Net employment generation in the formal sector almost trebled to 8.61 lakh in February compared to 2.87 lakh in the same month of last year, according to the latest EPFO payroll data.
The retirement fund body Employees' Provident Fund Organisation has been releasing payroll data from April 2018, covering the period starting September 2017.
According to the latest data, the highest job creation was recorded in January 2019 at 8.94 lakh against the provisional estimate of 8.96 lakh released last month.
During February 2019, the highest number of 2.36 lakh jobs were created in the 22-25 years age group, followed by 2.09 lakh in the 18-21 years age bracket.
The data showed that 80.86 lakh new jobs were created in the 18 months period from September 2017 to February 2019.
However, the EPFO has revised downward the number of net subscribers added or new jobs created from September 2017 to January 2019 to 72.24 lakh from 76.48 lakh released last month.
The sharpest revision was for March 2018 in the latest report which showed contraction or exit of 55,934 members from the EPFO subscriptions. Last month, the EPFO payroll data had showed that as many as 29,023 members exited from its schemes in March 2018.
In February 2019, the EPFO data had showed that as many as 5,498 members joined EPFO schemes in March 2018.
On contraction in March 2018 numbers, the EPFO said, "March 2018 figure is negative due to large number of exits reported in the month of March, in view of it being the closing month of the financial year."
The EPFO said the data is provisional as updation of employee records is a continuous process and gets updated in subsequent months.
This is age-band wise data of new members registered under the EPFO where the first non-zero contribution received during a particular month. For each age-wise band, the estimates are net of the members newly enrolled, exited and rejoined during the month as per records of the EPFO, it added.
The estimates may include temporary employees whose contributions may not be continuous for the entire year. Members' data are linked to unique Aadhaar Identity, it added.
The EPFO manages social security funds of workers in the organised or semi organised sector in India and has more than 6 crore active members (with at least one-month contribution during the year).
Job creation trebles in Feb at 8.61 lakh: EPFO payroll data
India's online retail market to cross $170 bn by FY30: Jefferies
Online retail in the country that is growing at a faster pace, is expected to be $170 billion by FY30, growing at a CAGR of 23 percent, according to a Jefferies report.
The online retail, which is currently around 25 percent of total organised retail market in India, can potentially increase to around 37 percent of the total organised retail market during this period, the report said.
Currently, the total online retail in the country is pegged at 18 billion.
Spends per online shoppers, which is estimated at ₹12,800 is expected to increase to ₹25,138 by FY30, with consumers shopping online for other segments, beyond electronics and apparel.
It noted that electronics, including mobile phones, has grabbed the market share from physical retailers, largely due to heavy discounting and cashback online in electronics.
"Apparel and electronics have been present as categories in online retail space quite some time now in India, but online grocery is increasingly witnessing new consumers as companies such as Bigbasket and Amazon Pantry are heavily advertising there discounting days, which takes place at the start of every month.
We believe that new customers will continue to enter the online grocery, given low differentiation in grocery and convenience for consumers. However, penetration of online retail in grocery will continue to remain lower," it said.
Personal care, including make-up, too is gaining its market share online.
Jefferies noted that increase in online penetration has been a function of both discounting and convenience, however, over the medium term, discounting in the system should rationalise and convenience will be the key driver.
However, it observed that product quality remains a key concern for most of the consumers shopping online and there have been lot of instances in the country where consumers have got a counterfeit or a fake product, especially in categories such as perfumes and cosmetics.
"Quality remains a key issue for consumers while shopping online. Though online retailers are taking steps to address this issue, it will take some time and hence some consumers will continue to stay away from online shopping, especially for big-ticket, branded items.
The adoption of online retail should continue at a fast pace, as convenience seems even more important. Apart from quality, breach of data and data security are also key issues hampering adoption of online retailing," it added.
Online retail in the country that is growing at a faster pace, is expected to be $170 billion by FY30, growing at a CAGR of 23 percent, according to a Jefferies report.
The online retail, which is currently around 25 percent of total organised retail market in India, can potentially increase to around 37 percent of the total organised retail market during this period, the report said.
Currently, the total online retail in the country is pegged at 18 billion.
Spends per online shoppers, which is estimated at ₹12,800 is expected to increase to ₹25,138 by FY30, with consumers shopping online for other segments, beyond electronics and apparel.
It noted that electronics, including mobile phones, has grabbed the market share from physical retailers, largely due to heavy discounting and cashback online in electronics.
"Apparel and electronics have been present as categories in online retail space quite some time now in India, but online grocery is increasingly witnessing new consumers as companies such as Bigbasket and Amazon Pantry are heavily advertising there discounting days, which takes place at the start of every month.
We believe that new customers will continue to enter the online grocery, given low differentiation in grocery and convenience for consumers. However, penetration of online retail in grocery will continue to remain lower," it said.
Personal care, including make-up, too is gaining its market share online.
Jefferies noted that increase in online penetration has been a function of both discounting and convenience, however, over the medium term, discounting in the system should rationalise and convenience will be the key driver.
However, it observed that product quality remains a key concern for most of the consumers shopping online and there have been lot of instances in the country where consumers have got a counterfeit or a fake product, especially in categories such as perfumes and cosmetics.
"Quality remains a key issue for consumers while shopping online. Though online retailers are taking steps to address this issue, it will take some time and hence some consumers will continue to stay away from online shopping, especially for big-ticket, branded items.
The adoption of online retail should continue at a fast pace, as convenience seems even more important. Apart from quality, breach of data and data security are also key issues hampering adoption of online retailing," it added.
Steel consumption rises in India after GST amendment
Consumption of steel in India has increased by around 7 percent after the government amended the goods and services tax (GST) rules for the industry, said Aruna Sharma, former steel secretary.
The steel industry also responded to the government's move by producing quality steel, she added. "Recently the government has again emphasized that once the BSI’s standardisation is there, there should not be any difference of the integrated or secondary kind of steel plants, then the product is a product. Government’s reaction time was very quick and that is what makes the whole difference,” she said.
Sharma rated the current Narendra Modi government at 7.8 and cut the marks in the area of research. She also added that the Insolvency and Bankruptcy Code (IBC) was very time-consuming.
Speaking about steel scrap being imported, Sharma said, “There is a case for the scrap steel that we have to come up very strongly with our scrap policies and create as much as scrap as possible for the scrap-based whereas the stainless steel scrap is also concerned, unless until we are able to produce that, we should get the scrap instead of finished products. So if we remove the import duty on stainless steel scrap as we do not have, the semi-finished product will stop coming because our production will become quite competitive.”
Seshagiri Rao, joint managing director and group CFO, JSW Steel said the Indian steel industry has created 27 million tonnes of incremental capacity, resulting in an average of 5-6 million tonnes of incremental capacity.
In terms of demand, he added, “In 2014-2015, the demand used to be 3 percent which is close to 0.5 percent of the gross domestic product (GDP) growth whereas if you see March 2019 numbers which have been released by the steel ministry, it was 8.8 percent. March 2019 year as a whole, the steel demand growth was 7.5 percent. So from 3-3.5 percent to 7.5 percent is the growth in demand.”
“On consumption side, India is growing much faster than the world. IBC and stress that is there in the industry have led to consolidation of the industry. There is change in controlling many companies which is also good for the industry for long-term sustainability,” he further mentioned.
“India, being a very attractive destination for steel consumption, imports are growing into India whereas exports are falling. For March 2019 numbers, the imports have grown by 4.5 percent whereas exports have fallen by 16 percent. That is the concern as far as the government measures are concerned. They should act proactively to ensure that the domestic industry is not injured by the dumping from overseas,” said Rao.
Steel consumption rises in India after GST amendment
Consumption of steel in India has increased by around 7 percent after the government amended the goods and services tax (GST) rules for the industry, said Aruna Sharma, former steel secretary.
The steel industry also responded to the government's move by producing quality steel, she added. "Recently the government has again emphasized that once the BSI’s standardisation is there, there should not be any difference of the integrated or secondary kind of steel plants, then the product is a product. Government’s reaction time was very quick and that is what makes the whole difference,” she said.
Sharma rated the current Narendra Modi government at 7.8 and cut the marks in the area of research. She also added that the Insolvency and Bankruptcy Code (IBC) was very time-consuming.
Speaking about steel scrap being imported, Sharma said, “There is a case for the scrap steel that we have to come up very strongly with our scrap policies and create as much as scrap as possible for the scrap-based whereas the stainless steel scrap is also concerned, unless until we are able to produce that, we should get the scrap instead of finished products. So if we remove the import duty on stainless steel scrap as we do not have, the semi-finished product will stop coming because our production will become quite competitive.”
Seshagiri Rao, joint managing director and group CFO, JSW Steel said the Indian steel industry has created 27 million tonnes of incremental capacity, resulting in an average of 5-6 million tonnes of incremental capacity.
In terms of demand, he added, “In 2014-2015, the demand used to be 3 percent which is close to 0.5 percent of the gross domestic product (GDP) growth whereas if you see March 2019 numbers which have been released by the steel ministry, it was 8.8 percent. March 2019 year as a whole, the steel demand growth was 7.5 percent. So from 3-3.5 percent to 7.5 percent is the growth in demand.”
“On consumption side, India is growing much faster than the world. IBC and stress that is there in the industry have led to consolidation of the industry. There is change in controlling many companies which is also good for the industry for long-term sustainability,” he further mentioned.
“India, being a very attractive destination for steel consumption, imports are growing into India whereas exports are falling. For March 2019 numbers, the imports have grown by 4.5 percent whereas exports have fallen by 16 percent. That is the concern as far as the government measures are concerned. They should act proactively to ensure that the domestic industry is not injured by the dumping from overseas,” said Rao.
Steel consumption rises in India after GST amendment