Indian Economy: News and Discussion

Prashant12

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TCS makes a comeback in Q2; net profit up 8.4% on-year, EBIT surprises at 25.1%

Tata Consultancy Services (TCS), after posting disappointing financial results in Q1, reported its net profit at Rs 6,446 crore up by 8.4% QoQ in line with the street expectations.


Tata Consultancy Services (TCS), after posting disappointing financial results in Q1, reported its net profit at Rs 6,446 crore up by 8.4% QoQ in line with the street expectations. ET Now poll had predicted a profit of Rs 6,321 crore for TCS in the second quarter. CNBC-TV18 had forecast the profit at Rs 6,183 crore. TCS’ July-September revenue in rupee terms at Rs 30,641 crore again in line with the street expectations of 30,423. Brokerage IDBI had forecast TCS’ revenue to grow 3.2% at Rs 30,534 crore, while HDFC Securities had forecast a 3.5% to 3.6% growth QoQ.

TCS made a surprising comeback on the EBIT margin front by reporting 25.1% or the quarter that ended September 30, much higher than what was expected. It rose sharply from 23.4% in the previous quarter to 25.1%, inching towards last years 26%. TCS reported its EBIT at Rs 7,660 crore against ET Now’s prediction of Rs 7,447 core. “This has been a very satisfying quarter,” Rajesh Gopinathan, CEO & MD said.

The overall volume growth of TCS was 3.2% QoQ as predicted by many brokerages. The digital revenue of TCS was also up by 5.9% QoQ in constant currency. TCS’ manufacturing revenue was also reported a high of 3.3% Rs 3,288 cr.

In Q1, TCS posted disappointing financial results with its fiscal first-quarter net profit dropping 10% on-quarter to Rs 5,945 crore. Its revenue in rupee terms at Rs 29,584 crores also fell marginally by 0.2% from the preceding three months. Brokerages have predicted a good season for the Indian IT sector and say that it is expected to post the strongest growth in the last five quarters supported by cross-currency gains, with TCS and Infosys leading revenue growth at over 3.2% QoQ. The growth, as analysts say, is due to the support from strong seasonality and cross-currency tailwinds.

http://www.financialexpress.com/ind...up-8-4-on-year-ebit-surprises-at-25-1/891275/
 

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Export soars 25.67% to $28.61 billion in Sep


India's export soared by 25.67 per cent to USD 28.61 billion in September on the back of rise in shipments of chemicals, petroleum and engineering products, official data released today showed.

Import too rose by 18.09 per cent to USD 37.6 billion in September from USD 31.83 billion in the year-ago month, according to the data released by the commerce ministry.

Trade balance stood almost flat at USD 8.98 billion in September 2017 against USD 9 billion in September 2016.

Gold import dipped by 5 per cent to USD 1.71 billion last month.

Oil and non-oil imports grew by 18.47 per cent and 17.98 per cent to USD 8.18 billion and USD 29.4 billion, respectively in September.

Cumulative exports during April-September 2017-18 increased by 11.52 per cent to USD 147.18 billion, while imports grew by 25.08 per cent to USD 219.31 billion, leaving a trade deficit of USD 72.12 billion.

"In continuation with positive growth exhibited by exports for the last thirteen months, exports during September 2017 have shown growth of 25.67 per cent in dollar terms," the ministry said in a statement.

In September, petroleum, engineering and chemicals exports grew by 37 per cent, 44.24 per cent and 46 per cent, respectively.

However, sectors which recorded negative growth includes handicrafts, iron ore, and fruit and vegetables.

http://economictimes.indiatimes.com...k.com&utm_medium=Social&utm_campaign=ETFBMain
 

lcafanboy

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Led by Chinese, nearly 600 companies line up $85 billion investments in India
By
Ruchika Chitravanshi
ET Bureau| Oct 16, 2017, 07.38 AM IST


NEW DELHI: Sany Heavy Industry heads up a list of close to 600 companies planning to invest a total of about $85 billion in India in projects that will create an estimated 700,000 jobs in the country in next five years.

Invest India, the government's foreign investment promotion agency, is planning to actively promote the country as an investment destination and has drawn up a list of 200 companies not present in India that it wants to target.

"We want to achieve a $100 billion target of foreign investment in the next two years — both greenfield and brownfield," said Invest India managing director Deepak Bagla. India recorded its highest FDI (foreign direct investment) in FY17 at $43 billion, up 9 per cent over the previous year.

One of the world's leading engineering machinery manufacturers, China's Sany Heavy Industry plans an investment of $9.8 billion. Amazon, along with several other Chinese companies — Pacific Construction, China Fortune Land Development and Dalian Wanda — are each planning investments of more than $5 billion during this period.

Of the total indicated investment, $7.43 billion has already materialised and 100,000 jobs have been created, according to Invest India.



Rolls-Royce plans to invest $3.7 billion and Australia's Perdaman Industries $3 billion.

Invest India is handholding the investors through the process, starting with identifying opportunities to scouting for locations and guiding them on policy.

Most of the investment proposals are from China at 42 per cent , followed by the US at 24 per cent and the UK at 11 per cent .

Energy and waste management have received the highest investment interest followed by construction and ecommerce.

The Invest India team recently met Prime Minister Narendra Modi to update him on the status of the big foreign investments coming into India. "In essence we are the voice of investor in the system and solely dedicated to FDI," said Bagla.

"The idea is, as PM Modi said, to transform red tape into a red carpet for investors." Commerce and industry minister Suresh Prabhu has said there is a need for a paradigm shift in the government's approach to increase investments and it will reach out proactively to prospective investors.

The agency said it has received more than 100,000 investor queries from 114 countries in the past two years. Invest India says it can help companies meet the most stringent criteria.

A top Fortune 500 company stipulated 136 parameters while scouting for land to set up its facility in India recently.

"We researched for over 70 days, gathered data across the country and came up with options in four states meeting each of their criteria for them to choose from," Bagla said.

https://economictimes.indiatimes.co...investments-in-india/articleshow/61093929.cms
 

sorcerer

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sorcerer

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DIPP eases mechanism for processing FDI proposals

New Delhi: The commerce and industry ministry has eased the mechanism for processing foreign direct investment (FDI) proposals by doing away with the requirement of sending the applications to the department of revenue.

Amending a provision in the standard operating procedure for processing of FDI proposals, the Department of Industrial Policy and Promotion (DIPP) today said that marking of proposals to the revenue department for their comments has been "discontinued" with immediate effect.

The move is aimed at further promoting ease of doing business in the country to attract overseas inflows.

Under this, the government would clear all foreign direct investment proposals requiring approval within a maximum of 10 weeks after the receipt of an application.

FDI into India increased by 9 per cent to USD 43.48 billion in 2016-17.


http://www.ptinews.com/news/9161909__DIPP-eases-mechanism-for-processing-FDI-proposals$storyes
 

mayfair

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India's tightened consumer goods standards could hurt China imports
Finally someone in the Commerce ministry has woken up. It's high time this was done. Just ensure that Cheeni maal is subject to proper quality control and soon much of the Cheeni rubbish will disappear from the markets, starting with toys.

Heck even components for solar panels were being imported duty free. Who the heck made such crap policies?

We need to keep this up..and encourage local manufacturers.
 

sorcerer

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Finally someone in the Commerce ministry has woken up. It's high time this was done. Just ensure that Cheeni maal is subject to proper quality control and soon much of the Cheeni rubbish will disappear from the markets, starting with toys.

Heck even components for solar panels were being imported duty free. Who the heck made such crap policies?

We need to keep this up..and encourage local manufacturers.
But the Raga boy band will now conveniently shift from farmers and artists plight to shop keepers who had invoiced chinese goods.
Just a matter of time before we will have another round of laugh on Raga boy band.
 

Prashant12

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India's Forex reserves up $1.5 bn, reclaim $400 bn mark

India's foreign exchange (Forex) reserves kitty increased by $1.50 billion as on October 13, 2017, official data showed on Friday.

The Reserve Bank of India's (RBI) weekly statistical supplement released on Friday showed that the overall Forex reserves rose to $400.29 billion from $398.79 billion reported for the week ended October 6.


India's Forex reserves comprise of foreign currency assets (FCAs), gold reserves, special drawing rights (SDRs) and the RBI's position with the International Monetary Fund (IMF).

Segment-wise, FCAs -- the largest component of the Forex reserves -- augmented by $1.47 billion to $375.27 billion during the week under review.

Besides the US dollar, FCAs consist of nearly 20-30 per cent of major global currencies. It also include investments in US Treasury bonds, bonds of other selected governments and deposits with foreign central and commercial banks.

The country's gold reserves value was stagnant at $21.24 billion, whereas SDRs increased by $9.5 million to $1.50 billion.

Similarly, the country's reserve position with the IMF edged higher by $14.3 million to $2.27 billion.

http://www.business-standard.com/ar...-5-bn-reclaim-400-bn-mark-117102000561_1.html
 

lcafanboy

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US to monitor India's foreign exchange reserves
By Gayatri Nayak, ET Bureau | Updated: Oct 20, 2017, 02.48 PM IST




  • US Treasury has said that it would keep a watch on India’s increasing foreign exchange reserves as Mint Street continues to accumulate the dollar to arrest the appreciation of the rupee.

    “The Treasury will be closely monitoring India’s foreign exchange and macroeconomic policies,’’ said the Treasury in a report titled Foreign Exchange Policies of Major Trading Partners of the United States. The report was submitted to the US Congress. A watch does not mean anything adverse or positive at this point, but it could become a point of discussion whenever there are negotiations on trade-related matters between the world’s two biggest democracies.

    Over the first half of 2017, there has been a notable increase in the scale and persistence of India’s net foreign exchange purchases, which have risen to around $42 billion (1.8% of GDP) over the four quarters through June 2017. India has a significant bilateral goods trade surplus with the United States, totalling $23 billion over the four quarters through June 2017, the report said.
    Treasury has established thresholds for the three criterias that determine whether there is a need for enhanced analysis and vigilance of any country’s foreign exchange policies. These include bilateral trade surplus with the United States of at least $20 billion, and a current account deficit of at least 3% of gross domestic product (GDP) with the US.

    Furthermore, a persistent, one-sided intervention occurs when net purchases of foreign currency are conducted repeatedly and it totals at least 2 percent of an economy’s GDP over a 12-month period.
    “India is very close to meeting this criterion (the last of the three) for the four quarters ending June 2017, with net purchases of foreign currency slightly below 2% of GDP,” the report said.

    The Reserve Bank of India (RBI) has been aggressively intervening in the currency markets in the recent past to arrest a steep appreciation of the rupee against the dollar. Currently, as of October 6, India’s foreign exchange reserves were at $398 billion after having crossed $400 billion mid-September. But if one factors in the RBI’s forward market purchases, India’s reserves could be well over $420 billion, estimate economists.

  • The report aims to highlight US concerns on protecting American workers and companies, and create a level playing field when competing internationally. It also looks to monitor economic policies closely to ensure that the trading partners do not indulge in unfair currency practices.
https://m.economictimes.com/news/ec...gn-exchange-reserves/articleshow/61147388.cms
 

Prashant12

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How Danish company Vestas built a Rs 500 crore blade factory near Ahmedabad in a record 15 months

November 10, 2015. Bert Nordberg, chairman of Danish wind turbine maker Vestas, had a brief meeting with Prime Minister Narendra Modi in New Delhi. Nordberg gave a commitment to the PM that the company was willing to bring in substantial foreign direct investment (FDI) into India for setting up a wind turbine blade manufacturing factory. Within 10 days of the meeting, the Vestasboard approved its India plan, gave its nod to a factory location 30 km west of Ahmedabadand then quickly brought one of its senior executives of Indian origin, Madhava Krishna Pokala, from the sleepy town of Ringkobing in Denmark to oversee the process of setting it up.

Next up were a MoU with the government of Gujarat, procurement of 20 permits and finally investing €70 million (roughly Rs 500 crore) to establish a greenfield manufacturing unit in a 36-acre plot off the Ahmedabad-Rajkot highway. In 15 months, the factory began blade production, making it a rare example of a fast-tracked FDI investment into India. “Consent to establish is a critical clearance requirement to begin construction. We received it in 22 days as against the usual 60. Also, power at the factory site was made available in six months rather than the usual 18 months due to effective influence of the Invest India cell of the Government of India,” Clive Turton, president (Asia Pacific), Vertas, told ET Magazine in an emailed interview.

About 1,000 people, including 250 engineers and 750 operators, are now working in the factory that has already stocked 230 blades in the last seven months; one blade is 54 metres long and weighs eight tonnes. “We have followed international norms in building this factory, with safety as a priority. It’s all air-conditioned; the workforce is well-trained, 150 of them in our US factories,” says Pokala, Vestas’ vice-president and the India factory manager. Blades are one of four components required for a wind turbine, the others being the nacelle, hub and tower.

The Gujarat factory that has a capacity of 600 MW produces 900 blades a year; three blades are needed for one wind turbine of 2 MW, producing enough electricity for as many as 35 villages. “If needed, we can expand the factory and double its production. But that will depend on the work we receive,” says Amar Variawa, the company’s director of marketing and public affairs.

Wind energy installation in India rose from 2.3 GW in 2014-15 to 3.4 GW in 2015-16 before peaking at 5.4 GW in 2016-17 (1 GW = 1,000 MW). But till August this fiscal year, wind energy installation was barely 0.35 GW mainly on account of the government’s change of policies and ending of subsidies, forcing equipment manufacturers to pile up inventories for better days.

Vestas still seems to be bullish on its India story. Its research and development centre in Chennai is already the largest outside of Denmark. Chennai also houses its nacelle and hub factory. Turton says, “The Indian government has set an ambitious target of 175 GW for renewable energy installation by 2022 out of which 60 GW is wind. The massive volume has attracted both domestic and global players to wind energy.”


https://economictimes.indiatimes.co...n-a-record-15-months/articleshow/61166131.cms
 

Prashant12

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India’s GVA growth may rise to 6.3% in September quarter, says Nomura report

The Indian economy is expected to see a rebound in the July-September quarter of this year with a GVA growth rate of 6.3 per cent, says a Nomura report.


The Indian economy is expected to see a rebound in the July-September quarter of this year with a GVA growth rate of 6.3 per cent, says a Nomura report. Nomura’s proprietary indices suggest that growth bottomed out in the second quarter and a recovery is underway in the third quarter, largely because consumption and investment indicators have improved in the third quarter. “We expect GVA growth to rise to 6.3 per cent year-on- year in the third quarter from 5.6 per cent in the second quarter, largely in line with the Reserve Bank of India’s Q3 forecast of 6.4 per cent,” Nomura said in a research note. The July-September quarter saw strengthening of consumption-related indicators. Rural consumption indicators such as tractor and two- wheeler sales picked up sharply ahead of the festive season, despite weak monsoon, likely reflecting improving cash levels with remonetisation. Moreover, urban consumption indicators such as passenger vehicle sales and consumer credit also improved in the September quarter, relative to June quarter.

The Japanese financial services major, however, said the recovery in the country’s economic activity will not be linear and could consolidate before moving higher. For this financial year Nomura expects a GVA growth of 6.4 per cent, slightly lower than the RBI’s forecast of 6.7 per cent, partly because we expect the government to cut spending due to fiscal constrains. On the RBI’s monetary policy stance, the report said with incremental growth momentum headed higher, core inflation above 4 per cent and fiscal risks on the horizon, we expect rates to stay unchanged in the base case (75 per cent probability), including at the next policy review meeting on December 6.

Earlier this month, the Reserve Bank of India kept benchmark interest rate unchanged on fears of rising inflation while lowering growth forecast to 6.7 per cent for the current fiscal. It also raised its inflation forecast to a range of 4.2 per cent to 4.6 per cent during remainder of current fiscal as against 4-4.5 per cent previously.

http://www.financialexpress.com/eco...-september-quarter-says-nomura-report/901855/
 

Prashant12

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Maruti becomes top exporter of passenger vehicles from India

NEW DELHI: Maruti Suzuki India has become the largest passenger cars exporter from India in the first half of the ongoing fiscal, dethroning Hyundai Motor India Ltd which has now been pushed to the fourth spot behind Volkswagen and General Motors.

In the April-September period this fiscal, Maruti Suzuki India (MSI) exported 57,300 units of passenger cars as against 54,008 units in the year-ago period, up 6 per cent, according to the latest data by Society of Indian Automobile Manufacturers (SIAM).

The long-running number one exporter, Hyundai Motor India Ltd (HMIL) on the other hand shipped 44,585 units as against 63,014 units in the year-ago period, a decline of 29.25 per cent.

The company is now behind Volkswagen and General Motors India in terms of export of passenger cars from India.

During the first half of the fiscal, Volkswagen India exported 50,410 units at a growth of 16.92 per cent. It is now the second biggest exporter of passenger cars from India behind MSI. Last year, it had exported 43,114 units during the same period.

Interestingly, General Motors (GM) which had on May 18 this year decided to stop selling its vehicles in India after struggling for over two decades to make a mark, is now the third biggest exporter of passenger cars from the country.

In the first half of the fiscal, GM exported 45,222 units as against 30,613 units in the year-ago period, a growth of 47.72 per cent.

The company exports vehicles from its manufacturing plant at Talegaon in Maharashtra. It has sold its first plant at Halol in Gujarat to MG Motor India, an arm of China's SAIC.

Another US auto major, Ford also posted impressive growth in exports of passenger cars from India during the period. The company's overseas shipments stood at 42,412 units as against 31,467 units in the same period last fiscal, up 34.78 per cent making it the fifth biggest exporter from India.

Nissan Motor India, which was the third biggest exporter last year saw its overseas shipments during the first half of the fiscal decline by 37.11 per cent to 30,872 units from 49,091 units in the same period last fiscal. It now occupies the sixth spot.

https://economictimes.indiatimes.co...k.com&utm_medium=Social&utm_campaign=ETFBMain
 

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India's pension system showing steady improvement: Report

NEW DELHI:India has been ranked 28 out of the 30 countries under review in the Melbourne
Mercer Global Pension Index 2017, which was topped by Denmark for the sixth straight year.

According to the index, India's overall index value has increased from 43.4 in 2016 to 44.9 in 2017 and its pension system is found to be more sustainable than that of Poland, Germany, France, Japan, Italy, Austria, Brazil, China and Argentina.

India's position in sub-index value under sustainability increased from 40.9 to 43.8 in 2017.

"The increase in value under the integrity sub-index from 53.4 to 55.1 is a reflection of Government of India's continued efforts to improve the transparency and member experience in various schemes
," Preeti Chandrashekhar, India Business Leader - Retirement, Health and Benefits, Mercer said

Chandrashekhar further said, "The extension of pension benefits to the unorganised sector and schemes like Pradhan Mantri Vaya Vandana Yojana (PMVVY), a simple scheme with assured pension of 8 per cent which will provide some amount of protection to elderly persons aged 60 years and above against interest rate risk as a result of uncertain market conditions, are some steps in the right direction..."

Moreover, government of India and PFRDA (the pension regulator) have also provided much required impetus and thrust in encouraging participation in the National Pension System both in the organised and unorganised sector by its sustained campaigns and tax incentives.


"The National Pension System is slowly gaining popularity. All these measures should help India to increase its index value in coming years," Chandrashekhar said.

This year's ninth edition of the Melbourne Mercer Global Pension Index measuring 30 countries and covering 60 per cent of the world's population urged countries with unsustainable pension systems to take action now, rather than risk the need to take even more drastic action in the future.

Jacques Goulet, President of Health and Wealth at Mercer, said Japan, Austria, Italy, and France are examples of developed economies whose pension systems don't represent a sustainable model that will support current and future generations in their old age.

"The Index is an important reference for policy makers around the world to learn from the most adequate and sustainable systems," author of the report and Senior Partner at Mercer, Dr David Knox said.

Read more at:
//economictimes.indiatimes.com/articleshow/61183183.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
 

Prashant12

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Hiring in banking sector surges 21% in September


Hiring activity in the banking and financial services sector witnessed a 21 per cent growth during September this year compared to the same period last year, a report by job portal Naukri.com said on Monday.

Even as the job market in the country remains "volatile", Naukri Jobspeak Report, a monthly analysis of job listings on the portal, shows the overall job market has seen three per cent growth in September, compared to the same period last year.

"Job market continues to be volatile. The Jobspeak index for September has shown a three per cent year-on-year growth driven by growth in sectors like banking, financial services, insurance, industrial products and auto and engineering," said Chief Sales Officer of Naukri.com V. Suresh in a statement.

The "uncertainty" in the job market is likely to continue for a few more months, he added.

The engineering industry registered a 15 per cent growth in hiring during September compared to the corresponding period last year, the report said.

While banking and insurance jobs rose by 32 per cent in September compared to last year, accounts and finance jobs saw a 15 per cent growth in the same period, it said. Software sector jobs during the same period witnessed a six per cent dip.

Among the 13 cities that were tracked by the report, 12 have recorded an increase in hiring activity during the period, with Mumbai and Kolkata growing by 15 per cent each compared to September last year.

The National Capital Region, on the other hand, witnessed a nine per cent dip in hiring activity during the tracked period, it said.

https://economictimes.indiatimes.co...rges-21-in-september/articleshow/61200705.cms
 

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https://timesofindia.indiatimes.com...ium=social&utm_campaign=TOI&utm_content=om-bm


NEW DELHI: The government has collected Rs 92,150 crore as Goods and Services Tax (GST) in September from 42.91 lakh business, the finance ministry said on Tuesday.

Of this, Rs 14,042 crore is on account of Central GST, while State GST is to the tune of Rs 21,172 crore. Integrated GST collections stood at Rs 48,948 crore, of which Rs 23,951 crore was on account of imports.

"The total revenue of GST paid under different heads (up to October 23, 2017) for the month of September 2017 is Rs 92,150 crore," finance ministry said in a statement.

Collection under compensation cess stood at Rs 7,988 crore, of which Rs 722 crore is Compensation Cess from imports in September.

Till Monday, 42.91 lakh business entities had filed initial GSTR-3B returns for September.




As per the data available, GST collections for the maiden month of July were over Rs 95,000 crore, while for August the figure was over Rs 91,000 crore. September was the third month of GST roll out
 

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