Indian Economy: News and Discussion

[cyclops]

Q3FY18 GDP growth at 7.2% (ET NOW)

Fueled by manufacturing.

 

[Indian Sniper.001]

On a lighter note.

~ twitter.​

 

[ezsasa]

GDP currently at 130.04 lakh crore, May not reflect in $ terms because of the declining rupee.
if Base price readjusted to 2017-18 next fiscal, May reach around 150 lakh crore.

Anybody knows why rupee vs USD is declining? is it just because of the imports?

 

[Indian Sniper.001]

A good move by the govt. Obviously, we are yet to see how it will be implemented, but the move should be appreciated.

 

[Indian Sniper.001]

Another one.


Won't be long before the 'Intolerance Drama' V2.0 begins. Strap up tight.

 

[LurkerBaba]

India has highest net cropland area in the world

Earlier studies had also concluded that China or the United States has the highest net cropland area, but it turns out that’s not accurate either. This new map gives that status to India, with 179.8 million hectares, or 9.6 percent of the global net cropland area. The United States follows with 167.8 million hectares, which is 8.9 percent of the global net cropland area (below). China has 165.2 million hectares, and Russia has 155.8 million hectares.

https://www.americanscientist.org/article/croplands-up-close

 

[Akshay_Fenix]

hmmmmmmmmmmmmmmmmmmmmm

 

[Kyubi]

hmmmmmmmmmmmmmmmmmmmmm

Hey unable to view the insert, could you provide the twitter link to it !

 

[Akshay_Fenix]

Hey unable to view the insert, could you provide the twitter link to it !

India-China bilateral trade hits historic high of $84.44 billion in 2017

BEIJING: The India-China bilateral trade reached $84.44 billion last year, an historic high notwithstanding bilateral tensions over a host of issues including the Doklamstandoff.

A rare novelty of the bilateral trade otherwise dominated by the Chinese exportswas about 40 per cent increase of Indian exports to China in 2017 totalling to $16.34 billion, data of the Chinese General Administration of Customs accessed by PTI here showed.

The bilateral trade in 2017 rose by 18.63 per cent year-on-year to reach $84.44 billion. It is regarded as a landmark as the volume of bilateral trade for the first time touched $80 billion, well above the $71.18 billion registered last year.

The trade touched historic high despite bilateral tensions over a number of issues including the China-Pakistan Economic Corridor, China blocking India's efforts to bring about a UN ban on Jaish-e-Mohammad leader Masood Azhar, Beijing blocking India's entry into the Nuclear Suppliers Group (NSG) as well as the military standoff at Doklam lasting 73 days.

The bilateral trade stagnated around $70 billion for several years despite the leaders of both the countries setting $100 billion as target for 2015.

Though it is still about $20 billion short, officials on both sides expect trade and Chinese investments in India to pick up further this year as both the governments are trying to scale down tensions and step-up the normalisation process.

Prime Minister Narendra Modi is expected to visit China in June this year to take part in the Shanghai Cooperation Organisation (SCO) summit in Qingdao. Reciprocal visits by Chinese leaders too are expected to take place this year.

There were also expectations that the new commerce minister of China to be named later this week in government reshuffle was expected to visit India in the coming weeks for talks to improve bilateral trade.

While the bilateral trade reached a new landmark, the trade deficit too continues to remain high at $51.75 billion - registering a growth of 8.55 per cent year-on-year in 2017.

According to India's trade figures, the deficit had crossed $52 billion last year. India has been pressing China to open the IT and Pharmaceutical sectors for Indian firms to reduce the massive trade deficit.

As per the Chinese trade data, India's exports to China increased by 39.11 per cent year-on-year to $16.34 billion last year. India's imports from China increased by 14.59 per cent to $68.10 billion.

India has emerged as the seventh largest export destination for Chinese products, and the 24th largest exporter to China.

Significantly, diamonds along with copper, iron ore, organic chemicals and cotton yarn contributed to the increase Indian exports to China.

India's exports of diamonds grew 4.93 per cent totalling to $2.59 billion. India was the second largest exporter of diamonds to China with a market share of 33.06 per cent after South Africa.

Also, Indian exports of copper registered a significant increase of 115.78 per cent to reach $2.15 billion.

India's cotton including yarn and woven fabric exports to China showed an increase of 1.86 per cent to reach $1.30 billion. India was the second largest exporter of cotton to China with 15.04 per cent market share last year.

India's exports of Zinc to China showed a sharp increase of 802 per cent to reach $240 million.

China's exports on the other hand were dominated by electrical machinery and equipment registering an increase of 28.23 percent to $21.77 billion.

India was the largest destination for China's fertilizers exports registering 16.98 per cent of its total fertilizers worth $1.03 billion to India.

Chinse exports were also led by organic chemicals, worth $6.56 billion in 2017.

https://timesofindia.indiatimes.com...4-44-billion-in-2017/articleshow/63202401.cms

Highlighted part was the tweet.

 

[tsunami]

Hey unable to view the insert, could you provide the twitter link to it !

https://m.timesofindia.com/india/in...4-44-billion-in-2017/articleshow/63202401.cms
Toi article

 

[kamaal]

hmmmmmmmmmmmmmmmmmmmmm

Nothing to be happy about, we are still exporting raw material to the Chinese. These chinky are not listening to our request of opening up of IT & pharma sector. This two sector alone would increase our export by more than 4-5 $ billion within a year.

But Chinese are too afraid to provide such leverage and asking for more from India like FTA in return, but that would kill our domestic industry if done. GoI need to work on mission mode to increase the electronic manufacturing, not assembling but manufacturing, we'll have to make it profitable for companies bcoz we can't rely on custom duty for any longer as RCEP is stuck because of us & other members are not looking happy about it.

 

[Suryavanshi]

Damnnnnnnnn


Japan to recruit 2 lakh Indian IT professionals

https://m.economictimes.com/nri/vis...it-professionals/amp_articleshow/63220607.cms

 

[Suryavanshi]

@kamaal @Butter Chicken @Indian Sniper.001 @IndiaRising @Akshay_Fenix @Kyubi
This is a major leap boys 200,000 jobs right here

 

[ezsasa]

Damnnnnnnnn


Japan to recruit 2 lakh Indian IT professionals

https://m.economictimes.com/nri/vis...it-professionals/amp_articleshow/63220607.cms

Better not go there, Japanese are not easy people to work with especially in their own back yard.

 

[Adioz]

Better not go there, Japanese are not easy people to work with especially in their own back yard.

For starters, you need to be able to drink alcohol almost on a daily basis. You cannot refuse your superiors and colleagues on this. They go out drinking after work and you are supposed to join in.

But the more difficult part is that you need to be a workaholic.

 

[cyclops]

Trump threatens to impose 'reciprocal tax' on India, China
PTI | Updated: Mar 9, 2018, 23:08 IST

PTI
HIGHLIGHTS

• Trump said the stage for the imposition of reciprocal tax has been set in the first year of his administration
• He said American companies had not been treated fairly by other countries

WASHINGTON: US President Donald Trump on Friday threatened to impose "reciprocal tax" on countries like India and China if they do not match America's tariff.

Trump has, in recent days, spoken a number of times about the 50 per cent duty that India levies on high-end motorbikes that Harley-Davidson, an American company, sells in India. He has repeatedly insisted that the US levies "zero" duty — or "nothing" — on motorbikes imported from India.

"We're going to be doing a reciprocal tax programme, at some point so that if China is going to charge us 25 per cent or if India is going to charge us 75 per cent and we charge them nothing," he said as he imposed a 25 per cent tariff on steel and a 10 per cent tariff on aluminium from all countries except Canada and Mexico.

"They are 50, they are 75 or they are 25, we are going to be doing the same numbers. It's called reciprocal. It's a mirror of tags. So they charge us 50, we would charge them 50," Trump said.

READ ALSO:

• China insists it's not a threat to US as Trump trade war looms

The US President said the stage for the imposition of reciprocal tax has been set in the first year of his administration.


He said American companies had not been treated fairly by other countries.

Referring to a tweet by Tesla chief Elan Musk, Trump said China charges 25 per cent duty on American cars whereas it is just 2.5 per cent on import of Chinese cars into the US.

Trump said the "reciprocal tax" programme would ensure "fair trade deals" for the US.

The US president mentioned China several times as he signed two proclamations to impose import duties on steel and aluminium.



"China says it's got two per cent, but it sends much more. We're going to have a great relationship, hopefully, with China, but we have to do something. We're losing with China $500 billion a year. We have to do something," Trump told reporters during the signing ceremony.

Trump said the US is going to stop the trans-shipping. "Well, we'll let it happen, but they've got to pay. So trans-shipping, frankly, is a big deal," he said.

"And they trans-ship, and we're going to accept their product, but it's going to cost a lot of money from the standpoint of the trans-shipper," he added.

The US, he said, is negotiating now with China.

"We're in the midst of a big negotiation. I don't know that anything is going to come of it. They have been very helpful. President Xi (Jinping), I have great respect for. A lot of respect," he said.

"But we're going to cut down the deficits one way or the other. We have a deficit with China of at least $500 billion. When you add intellectual property, it's much higher than that," Trump said.


https://m.timesofindia.com/india/tr...x-on-india-china/amp_articleshow/63234589.cms

 

[Butter Chicken]

Only around 4,000 2-wheelers were exported to US from India last year.India produces more than 16 million 2-wheelers every year.Trump is welcome to raise the duty for the 4,000 bikes.
Harley also has a assembly facility in Haryana.(Duty for CKD bikes is 15%,which was 10% earlier)

 

[Prashant12]

Industrial production expands at 7.5% for Jan, CPI softens to 4.4% for February


India's industrial production registered a strong growth in January clocking 7.5 per cent led by a robust growth in the manufacturing sector which showed a growth of 8.7 per cent, data released by the Central Statistics Officeshowed.

The index expanded in the month of January compared to a 7.1% growth in December and 8.8% in November.

The expansion was supported by growth in electricity sector which grew at 7.6 per cent. The continued expansion in industrial production has reinforced hopes of a healthy economic growth in the fourth quarter. The GDP grew at 7.2% in the October-December quarter.

Retail inflation cooled to 4.44 per cent in February compared to 5.07 per cent in January. The number is still higher than the RBI's medium-term target of 4 per cent.

IIP clocked a 25-month-high growth of 8.8% in November, but slowed to 7.1% in December as mining and electricity production declined.

Retail inflation had softened to 5.07% in January on the back of lower food inflation.

https://economictimes.indiatimes.co...r.com&utm_medium=Social&utm_campaign=ETTWMain

 

[Armand2REP]

HAL’s valuation and earnings visibility make it a good buy
By Ashutosh Shyam
, ET Bureau| Updated: Mar 16, 2018


ET Intelligence Group: Longterm investors may subscribe to initial public offer (IPO) of Hindustan Aeronautics Ltd (HAL), India’s largest military aircraft and helicopter maker given its dominant position in the country’s defence sector, strong revenue visibility and attractive valuation.

BUSINESS MODEL
Headquartered in Bengaluru, HAL is a public sector undertaking (PSU) under the Ministry of Defence, manufacturing aircraft and helicopters for Indian armed forces and for export markets. Its major offerings include aircraft such as MiG21, MiG27, Avro, Jaguar, Dornier 228, Su-30Mki and helicopters such as Cheetah and Chetak. The company is the largest defence PSU in terms of production value and 39th largest aircraft manufacturer in the world. HAL has provided 600 aircraft to different services in the past 10 years.

Revenue for the company rose 7.1 per cent annually in the past two fiscals to Rs 17,951 crore in FY17

India will require around 1,000 new aircraft in the next 10 years owing to its ageing fleet. The operational strength of Indian Air Forces fell to 33 squadrons as of October 2017, the lowest in four decades. This may result in higher future orders. The Air Force plans to replace its Mirage 2000, MiG 29 and Jaguar fighter jet fleets with LCA Tejas and could acquire up to 354 Tajas, according to news reports.

FINANCIAL SNAPSHOT
Revenue for the company rose 7.1 per cent annually in the past two fiscals to Rs 17,951 crore in FY17. Net profit rose 62 per cent annually to Rs 2,624 crore buoyed by lower profit in FY15 due to higher provisioning after change in accounting standards. Services accounted for 31.9 per cent of revenue in FY17 from 21.5 per cent in FY15. It may improve to 40-42 per cent once the cumulative base of delivered aircraft expands.

ORDER INFLOWS
The company had an order book of Rs 68,461 crore at the end of December 2017, 3.7 times of the last fiscal revenue. The order book mainly includes manufacturing of Light Combat Aircraft (LCA) Tejas, Advance Light Helicopter, and remaining order of Sukhoi aircraft. Besides, the company has received a request for proposal from Ministry of Defence for the procurement of 83 LCA worth Rs 60,000 crore and 15 Light combat helicopters worth Rs 4,500 crore. The company has doubled its capacity to manufacture LCA to 16 per year from eight earlier.

RISK FACTOR
India’s armed forces is the largest client contributing over 90 per cent to revenue. In case of moderation in the government’s defence expenditure, HAL’s topline may suffer. The government’s decision to boost operational squadrons through the total buy-out method as they did in Rafale purchase may shrink the company’s prospective order pipeline.

VALUATION
At the higher end of the price band, the HAL is priced at 15.8 times its FY17 earnings. Bharat Electronics, a defence supplier, trades at a P/E of 25. Global defence aircraft manufacturer and suppliers such as Lockheed Martin, General Dynamics, Safran, BAE System and Dassault Aviation trade a trailing P/Es between nine and 25.

https://economictimes.indiatimes.co...y-make-it-a-good-buy/articleshow/63326100.cms

 

[Madooxno7]

While I was making a report related to job, I came across a very interesting phenomenon of large scale economies. It looks like when a country's economy touches 3 trillion Mark.. it can start adding 1 trillion every 2 to 3 years and the growth from there goes up like a rocket.

We are very close to that 3 trillion Mark