Indian Economy: News and Discussion

[Indx TechStyle]

India’s economy projected to grow 7.6% in 2017: UN report

Updated: Dec 02, 2016 17:54 IST
By PTI, New York

India’s economy is projected to grow at 7.6% in 2017 as investment regains momentum and manufacturing base strengthens on the back of structural reforms in the country, a UN study said, crediting India and China for steady growth of the Asia-Pacific region.

“India’s economy is projected to sustain a 7.6% growth rate in both fiscal years 2016-17 and 2017-18,” according to the year-end update of the flagship report Economic and Social Survey for Asia and the Pacific 2016 of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).

The report said India’s economic growth is expected to remain at 7.6% in 2017 as investment regains momentum and the manufacturing base strengthens on the back of structural reforms.

The ongoing structural reforms are also expected to benefit private investment in India.

It said in India while growth in the first quarter of the current fiscal year (April-June 2016) moderated due to a contraction in fixed investment, a rebound is expected.

“Initially, growth will be driven by a rebound in agriculture due to normal monsoon rain, which along with civil service pay revisions will support broad-based consumption growth.

“Later, growth will be underpinned by a recovery in private investment as the recent push to accelerate infrastructure spending and measures to create a better investment climate - due in part to the passage of the goods and services tax and bankruptcy code,” it said.

The economic growth rate in China is projected to ease slightly to 6.4% in 2017 as rebalancing towards consumption, services and higher value-added activities makes further progress, it added.

The report credited India and China as being the anchors of a high and steady growth of the Asia-Pacific region at a time when developed economies were struggling to sustain high growth rates.

“With developed economies losing some of their recovery momentum, the region’s high and steady growth rate, led by China and India, has arguably been an anchor of stability for the struggling global economy,” it said.

The report added that fiscal institutions are being improved, with China moving away from off-budget spending and implicit guarantees and India taking a major step towards putting into effect a nationwide goods and services tax.

Further, deleveraging and restructuring efforts in countries such as China and India should contribute to enhance financial stability and higher productivity.

The report pointed out that stable economic conditions in the second half of 2016 provide an opportunity to internalise the economic, social, environmental and governance dimensions of sustainable development in a comprehensive manner.

It said resilient domestic demand and policy support have resulted in the region’s developing economies growing at a steady pace of just below five per cent despite sluggish global economy and weak trade growth, according to the report.

 

[aditya10r]

India’s economy projected to grow 7.6% in 2017: UN report

Updated: Dec 02, 2016 17:54 IST
By PTI, New York

I guess they have not factored GST bill...........

 

[Indx TechStyle]

Sorry if posted earlier.
India set to be world’s second largest steel producer

India is close to acquiring the second position in crude steel production if it continues with its current growth rate. The top spot belongs to China and India is behind the world’s second largest steel producer, Japan by just 7.9 million tonne (MT). India overtook the United States last year to become the third largest steel producing country after China and Japan.

According to the latest report of World Steel Association (WSA), India’s steel production during January-October 2016 grew by 6.8% to reach 79.5 MT, even as global steel output saw a 0.1% contraction. Japan produced 87.4 MT crude steel during this period.

As per the WSA report, China, the largest steel producing country, saw just 0.7% growth in the first 10 months and produced 673 MT steel. There was a decline in the output in Japan, the US and Russia by 0.4%, 1.6% and 1.4%, respectively.

The gap in production between Japan and India has narrowed down to just 7.9 MT. This gap, sources said, may further narrow down, as India has shown a 12.3% growth in October compared to Japan’s output growth of just 0.6%.

Steel industry sources said that though India’s position in the world order of steel production is unlikely to change this year as less than two months are left, next year India will be very close to Japan and may even surpass Japan’s production.

“Despite the global slowdown in the steel sector, India’s production has remained not only positive, but also the highest among the major steel producing countries in the world, including China and Japan. This is a matter of great satisfaction for the industry,” said a source.

According to sources, the increase in steel production has been possible after the Centre’s aggressive measures to help the domestic steel industry, as a result of which total steel imports have started coming down. Besides levying Minimum Import Price (MIP) on many items, the government also imposed anti-dumping duty on hot-rolled and cold-rolled steel products. Indian steel companies had jointly filed an application for initiation of anti-dumping investigation concerning their imports, following which the government swung into action to protect the interests of domestic industries.

Global steel production fell 0.1% to 1,333 MT during the period (January to December), compared to the corresponding period last year.

List of countries by steel production - Wikipedia, the free encyclopedia

 

[tharun]

We need to increase our portfolio investments in equity...less in debt because it yields less..So that we can decrease Liabilities on us
We need to give our guys to invest in foreign equities...

 

[Indx TechStyle]

India Takes Pride of Place, Crosses $300 Billion FDI Milestone
Press Trust Of India
First published: December 4, 2016, 12:39 PM IST | Updated: 5 hours ago

India crossed the USD 300 billion foreign direct investment (FDI) milestone between April 2000 and September 2016/TV grab

New Delhi: India crossed the USD 300 billion foreign direct investment (FDI) milestone between April 2000 and September 2016, firmly establishing its credentials as a safe investment destination in the world.

Thirty-three per cent of the FDI came through the Mauritius route, apparently because the investors wanted to take advantage of India's double taxation avoidance treaty with the island nation.

India received USD 101.76 billion from Mauritius between April 2000 and September 2016. The cumulative FDI inflows during the period amounted to USD 310.26 billion.

The inflows in the first half of the current financial year was USD 21.62 billion, according to data compiled by the Department of Industrial Policy and Promotion.

The other big investors have been from Singapore, the US, UK and the Netherlands.

Commenting on the USD 300 billion mark, industry bodies Ficci and CII have said that India is perceived as a safe and dynamic destination by global investors.

Ficci said that the liberalisation of the FDI policy framework, major national development programmes such as Make in India, Digital India and Skill India, besides increasing competitiveness, have made India the preferred choice for investors globally.

"We see this trend of increasing inflows further strengthening in the coming years," Ficci president Harshavardhan Neotia said.

CII said that FDI flows have increased significantly and consistently in the last two years and the country would continue to remain as one of the most attractive destinations in the foreseeable future.

"Global investor sentiment is positive about India being a safe investment haven, despite the global economic climate remaining uncertain," it said.

India's services sector topped the table, receiving 18 per cent of the cumulative equity FDI inflows followed by construction development, computer software & hardware, telecommunication and automobile.

India crossed the USD 300 billion mark at a time when the global economic slowdown has had a dampening impact on FDI flows which are expected to fall this year.

According to the World Investment Report 2016, global FDI flows rose by 38 per cent to USD 1.76 trillion, the highest level since the global economic and financial crisis began in 2008.

However, they still remain some 10 per cent short of the 2007 peak.

"Looking ahead, FDI flows are expected to decline by 1015 per cent in 2016, reflecting the fragility of the global economy, persistent weakness of aggregate demand, effective policy measures to curb tax inversion deals," it said.

The report added that elevated geopolitical risks and regional tensions could further amplify the expected downturn.

 

[Adioz]

Sorry if posted earlier.
India set to be world’s second largest steel producer

List of countries by steel production - Wikipedia, the free encyclopedia

There is a glut in global steel market due to overproduction in China. The Chinese steel makers did not anticipate a slow-down in domestic demand due to the slowdown in Chinese economic growth. I am happy that the government is taking steps to curb dumping of cheap Chinese steels that destroyed UK's steel industry. We should, therefore, grow only on the back of domestic demand and curb our import bill. Steel export is not viable for the time being.

 

[tharun]

What's you review on UPI aka Unified Payment Interface...
For me it's a good move but..every bank having it's own app means if a person having multiple accounts should remember multiple login passwords and transaction passwords.
We need one app that combines all the bank accounts that the person has...

 

[Adioz]

What's you review on UPI aka Unified Payment Interface...
For me it's a good move but..every bank having it's own app means if a person having multiple accounts should remember multiple login passwords and transaction passwords.
We need one app that combines all the bank accounts that the person has...

Er................i heard that there was just one universal UPI app.

 

[tharun]

Er................i heard that there was just one universal UPI app.

Nopeeeee.................Every bank had it's own app with API feature in it

 

[Chinmoy]

What's you review on UPI aka Unified Payment Interface...
For me it's a good move but..every bank having it's own app means if a person having multiple accounts should remember multiple login passwords and transaction passwords.
We need one app that combines all the bank accounts that the person has...

Why you need multiple login and passwords for each and every account? You could have one single ID and password for multiple accounts. UPI is basically an interface to carry out multiple services of multiple banks from one single platform. Instead of visiting each and every individual site of banks, you could access every account from one single platform. Whats the need to have multiple ID and password for every other account? You could have same ID and password for every account.

 

[Chinmoy]

Cadres to spread digital literacy.................

http://epaper.telegraphindia.com/details/229857-1494892.html

 

[tharun]

Why you need multiple login and passwords for each and every account? You could have one single ID and password for multiple accounts. UPI is basically an interface to carry out multiple services of multiple banks from one single platform. Instead of visiting each and every individual site of banks, you could access every account from one single platform. Whats the need to have multiple ID and password for every other account? You could have same ID and password for every account.

Because every bank had it's own app with UPI feature...there is no common UPI app

 

[tharun]

Our gross deficit is increasing year on year which is bad...

 

[Chinmoy]

Because every bank had it's own app with UPI feature...there is no common UPI app

I got it. What I meant to say is, why you need different ID and password for different account? Why simply not use a single ID and password?
I have two different accounts in two different banks. But I do have same ID password for both of them. Infact my transaction password too is same in both the accounts.

 

[tharun]

I got it. What I meant to say is, why you need different ID and password for different account? Why simply not use a single ID and password?
I have two different accounts in two different banks. But I do have same ID password for both of them. Infact my transaction password too is same in both the accounts.

But one of my bank had cust id other one just name..and transaction passwords are also different

 

[Chinmoy]

But one of my bank had cust id other one just name..and transaction passwords are also different

I think you always could have ID and password of your own choice after the first time logging.

 

[tharun]

I think you always could have ID and password of your own choice after the first time logging.

Depends on bank private banks have customer id PSU's have names

 

[Chinmoy]

Depends on bank private banks have customer id PSU's have names

I think in PSU's too you could have ID and password of your will. Atleast in SBI you could.

 

[tharun]

We need Semiconductor fabs for two main reasons 1)Military Applications and 2)General public
But these fabs cost lot of cost ranging from 5-10 Billion $...there is one company called minimal fab.
These company does is builds fabs in small footprint with less cost ranging from 300K..
We can build those in our country to build semiconductors and sensors for our military needs and for civilian uses..

 

[Indx TechStyle]

The impact of demonetization on Indian market valuations
One way to isolate the impact of demonetization is to consider the premium valuations that the Indian market enjoys vis-à-vis its peers in Asia.

Graphic: Naveen Kumar Saini/Mint

Emerging markets have been hit by rising bond yields in the US after the election of Donald Trump as president. At the same time, the Indian market has been affected by demonetization. One way to isolate the impact of demonetization is therefore to consider the premium valuations that the Indian market enjoys vis-à-vis its peers in Asia. The accompanying chart plots this premium that the MSCI India Index has over MSCI Asia ex-Japan Index.

As the chart shows, the premium has come down since 8 November. MSCI India’s one-year forward price-to-earnings (P-E) multiple was 16.85 on 8 November, compared to 12.84 for MSCI Asia-Pacific ex-Japan. By 6 December, MSCI India’s P-E was at 15.9 compared to 12.59 for MSCI Asia-Pacific ex-Japan. Clearly, the Indian market’s P-E has fallen much more than that for the Asia-Pacific ex-Japan markets. That compression in the India premium is the impact of demonetization.