Indian Economy: News and Discussion
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another_armchair
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IRCTC to Indian Railways - Sir, bonus ka kuch ho paata toh... ladke khush ho jaate.
Ashwini Vaishnav - Kuch karte hain....
Tuzya Aicha Gawa....chi jai
avknight1408
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Govt finances in very comfortable position. Time for tax cuts on Petrol and Diesel.
Centre's fiscal deficit at 35% of budget estimates vs 115% a year ago
India’s fiscal deficit for April-September period compressed to 35 per cent of the Budget Estimates (BE) from 115 per cent in the same period last year. This is even lower than the pre-Covid level (FY20) of Rs 6.5 trillion.
The government could limit the fiscal deficit to 4-year low to Rs 5.26 trillion mainly due to substantial 50 per cent revenue growth in September, benefitting from robust advance taxes and indirect taxes.
The Controller General of Accounts data showed the government received Rs 10.8 trillion (27.3 per cent of the corresponding BE 2021-22 of total receipts) up to September. This comprises Rs 9.2 trillion of tax revenues, Rs 1.60 trillion of non-tax revenues, and Rs 18,118 crore of non-debt capital receipts.
The expenditure incurred by the Centre was Rs 16.3 trillion (46.7 per cent of the corresponding BE 2021-22).
According to economists, fiscal deficit in the current financial year is likely to be lower than budgeted, even when total expenditure is expected to exceed the BE.
“We expect the fiscal deficit to print at Rs 13.8-14.8 trillion or 6.0-6.5 per cent of GDP in FY2022, as compared to the budgeted Rs 15.1 trillion or 6.8 per cent," said Aditi Nayar, Chief Economist, Icra.
However, considering the net outgo related to the First Supplementary Demand for Grants of Rs 237 billion, the increase in fertiliser subsidies for the rabi season, and the likely enhancement that may be needed in the allocation for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the government's total expenditure also may exceed the FY22 BE, but by a relatively moderate Rs 600-800 billion, Nayar added.
They say that the fiscal deficit was not only lower in proportion to entire year’s target but was also lower in value terms compared to previous fiscal --FY21 and FY20.
“Notwithstanding a low base of FY21, the revenue performance has been fairly good in the first half of the FY22 due to pickup in economic activity. The net tax revenue in the April-September period was 100.80 per cent and 51.57 per cent higher than corresponding period in FY21 and FY20. Sharp increase in custom duties (129.64 per cent), followed by corporate tax (105.14 per cent) and 0.08 per cent year-on-year growth in state’s share in central taxes were mainly responsible for it, said Devendra Pant, India Ratings and Research.
In addition to that, higher than budgeted surplus transfer by the Reserve Bank to the anticipated extra net tax revenues, government revenue receipts (net of devolution to states) may exceed the FY22 BE by a considerable Rs. 1.9 trillion, they say.
Interestingly the government is still maintaining Rs 1.81 trillion surplus cash balance with RBI at end-September 2021 (end-March 2021: Rs 1.82 trillion). With such a huge cash surplus with the central bank, the government is on a strong wicket to either improve expenditure or reduce market borrowing, Pant highlighted.
The revenue expenditure in the first half of the fiscal grew 6.33 per cent compared to FY21 and 7.35 per cent compared to FY20.
“A better metric to gauge the quality of the spending is the non-interest revenue expenditure which can provide impetus to the growth in the economy. It is perplexing that the non-interest revenue has barely grown in comparison to FY20 (0.2 percent ) and expanded by 2.5 per cent in comparison with FY21. However, the capital expenditure seems to have gained some pace as it was 1.22x and 1.38x of 1HFY20 and
respectively, according to Pant.
After the ramping-up of spending seen in the month of September, economist anticipate that expenditure will remain robust in the second half of this year, as all ministries have now been permitted to spend as per their own approved budget for this year.
Centre's fiscal deficit at 35% of budget estimates vs 115% a year ago
India’s fiscal deficit for April-September period compressed to 35 per cent of the Budget Estimates (BE) from 115 per cent in the same period last year. This is even lower than the pre-Covid level (FY20) of Rs 6.5 trillion.
The government could limit the fiscal deficit to 4-year low to Rs 5.26 trillion mainly due to substantial 50 per cent revenue growth in September, benefitting from robust advance taxes and indirect taxes.
The Controller General of Accounts data showed the government received Rs 10.8 trillion (27.3 per cent of the corresponding BE 2021-22 of total receipts) up to September. This comprises Rs 9.2 trillion of tax revenues, Rs 1.60 trillion of non-tax revenues, and Rs 18,118 crore of non-debt capital receipts.
The expenditure incurred by the Centre was Rs 16.3 trillion (46.7 per cent of the corresponding BE 2021-22).
According to economists, fiscal deficit in the current financial year is likely to be lower than budgeted, even when total expenditure is expected to exceed the BE.
“We expect the fiscal deficit to print at Rs 13.8-14.8 trillion or 6.0-6.5 per cent of GDP in FY2022, as compared to the budgeted Rs 15.1 trillion or 6.8 per cent," said Aditi Nayar, Chief Economist, Icra.
However, considering the net outgo related to the First Supplementary Demand for Grants of Rs 237 billion, the increase in fertiliser subsidies for the rabi season, and the likely enhancement that may be needed in the allocation for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the government's total expenditure also may exceed the FY22 BE, but by a relatively moderate Rs 600-800 billion, Nayar added.
They say that the fiscal deficit was not only lower in proportion to entire year’s target but was also lower in value terms compared to previous fiscal --FY21 and FY20.
“Notwithstanding a low base of FY21, the revenue performance has been fairly good in the first half of the FY22 due to pickup in economic activity. The net tax revenue in the April-September period was 100.80 per cent and 51.57 per cent higher than corresponding period in FY21 and FY20. Sharp increase in custom duties (129.64 per cent), followed by corporate tax (105.14 per cent) and 0.08 per cent year-on-year growth in state’s share in central taxes were mainly responsible for it, said Devendra Pant, India Ratings and Research.
In addition to that, higher than budgeted surplus transfer by the Reserve Bank to the anticipated extra net tax revenues, government revenue receipts (net of devolution to states) may exceed the FY22 BE by a considerable Rs. 1.9 trillion, they say.
Interestingly the government is still maintaining Rs 1.81 trillion surplus cash balance with RBI at end-September 2021 (end-March 2021: Rs 1.82 trillion). With such a huge cash surplus with the central bank, the government is on a strong wicket to either improve expenditure or reduce market borrowing, Pant highlighted.
The revenue expenditure in the first half of the fiscal grew 6.33 per cent compared to FY21 and 7.35 per cent compared to FY20.
“A better metric to gauge the quality of the spending is the non-interest revenue expenditure which can provide impetus to the growth in the economy. It is perplexing that the non-interest revenue has barely grown in comparison to FY20 (0.2 percent ) and expanded by 2.5 per cent in comparison with FY21. However, the capital expenditure seems to have gained some pace as it was 1.22x and 1.38x of 1HFY20 and
respectively, according to Pant.
After the ramping-up of spending seen in the month of September, economist anticipate that expenditure will remain robust in the second half of this year, as all ministries have now been permitted to spend as per their own approved budget for this year.
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Ya'll Nibbiars?.
sorcerer
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GAIL registers highest ever Half Yearly Turnover, PBT and PAT
Half yearly PAT jumps 194% to Rs. 4,393 Crore
Posted On: 29 OCT 2021 4:23PM by PIB Delhi
GAIL (India) Limited registered its highest ever Half Yearly Turnover and profit in H1 FY 22, clocking a turnover of Rs. 38,829 crore as against Rs. 25,671 crore in the last fiscal, an increase of 51%. The Profit before Tax increased by 201% to Rs. 5,736 crore vis a vis Rs. 1,907 crore in H1 of previous year. Profit after Tax also jumped by 194% to Rs. 4,393 crore for the half year as against Rs. 1,495 crore in H1 FY 21.
On quarterly basis, Turnover increased by 24% to Rs. 21,477 crore in Q2 FY22 as against Rs. 17,352 crore in Q1 FY22. PBT registered a growth of 79% and stood at Rs. 3,682 crore in Q2 FY22 as against Rs. 2,054 crore in Q1 FY22. PAT increased by 87% to Rs. 2,863 crore in Q2 FY22 as against Rs. 1,530 crore in Q1 FY22.
During the quarter, the physical performance improved across all segments. Natural Gas Transmission increased to 114.32 MMSCMD in Q2 FY22 as against 107.66 MMSCMD in Q1FY22, up by 6%. Natural Gas Marketing increased to 97.72 MMSCMD during the quarter as against 95.95 MMSCMD in Q1 FY22, up by 2%. Petrochemical production sales was at 221 TMT in the quarter as against 138 TMT in Q1 FY 22, clocking an increase of 60%.
On a consolidated basis, Turnover in Q2 FY22 was Rs. 21,739 Crore in comparison to Rs. 17,551 crore in Q1 of FY22, up by 24 %. The PBT in Q2 FY22 was Rs. 3,728 crore vs. Rs. 2,540 crore in Q1 FY22, up by 47 %. The PAT in Q2 FY22 is Rs. 2,883 crore vs. Rs. 2,138 crore in Q1 FY22, up by 35%.
Mr. Manoj Jain, Chairman & Managing Director, GAIL informed that during the H1 FY22, GAIL has incurred a Capex of Rs. 3,180 crore mainly on Pipelines, Equity and Petrochemicals etc. He stated that performance of all segments of the company have improved significantly during the quarter and further added that a sustainable future performance is expected.
Half yearly PAT jumps 194% to Rs. 4,393 Crore
Posted On: 29 OCT 2021 4:23PM by PIB Delhi
GAIL (India) Limited registered its highest ever Half Yearly Turnover and profit in H1 FY 22, clocking a turnover of Rs. 38,829 crore as against Rs. 25,671 crore in the last fiscal, an increase of 51%. The Profit before Tax increased by 201% to Rs. 5,736 crore vis a vis Rs. 1,907 crore in H1 of previous year. Profit after Tax also jumped by 194% to Rs. 4,393 crore for the half year as against Rs. 1,495 crore in H1 FY 21.
On quarterly basis, Turnover increased by 24% to Rs. 21,477 crore in Q2 FY22 as against Rs. 17,352 crore in Q1 FY22. PBT registered a growth of 79% and stood at Rs. 3,682 crore in Q2 FY22 as against Rs. 2,054 crore in Q1 FY22. PAT increased by 87% to Rs. 2,863 crore in Q2 FY22 as against Rs. 1,530 crore in Q1 FY22.
During the quarter, the physical performance improved across all segments. Natural Gas Transmission increased to 114.32 MMSCMD in Q2 FY22 as against 107.66 MMSCMD in Q1FY22, up by 6%. Natural Gas Marketing increased to 97.72 MMSCMD during the quarter as against 95.95 MMSCMD in Q1 FY22, up by 2%. Petrochemical production sales was at 221 TMT in the quarter as against 138 TMT in Q1 FY 22, clocking an increase of 60%.
On a consolidated basis, Turnover in Q2 FY22 was Rs. 21,739 Crore in comparison to Rs. 17,551 crore in Q1 of FY22, up by 24 %. The PBT in Q2 FY22 was Rs. 3,728 crore vs. Rs. 2,540 crore in Q1 FY22, up by 47 %. The PAT in Q2 FY22 is Rs. 2,883 crore vs. Rs. 2,138 crore in Q1 FY22, up by 35%.
Mr. Manoj Jain, Chairman & Managing Director, GAIL informed that during the H1 FY22, GAIL has incurred a Capex of Rs. 3,180 crore mainly on Pipelines, Equity and Petrochemicals etc. He stated that performance of all segments of the company have improved significantly during the quarter and further added that a sustainable future performance is expected.
sorcerer
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India Receives First Direct LNG Cargo From Russia's Yamal LNG Project
India received its first import of liquefied natural gas (LNG) from Russia's Yamal LNG project over the weekend, Refinitive Eikon LNG flows data showed.
India received its first import of liquefied natural gas (LNG) from Russia's Yamal LNG project over the weekend, Refinitive Eikon LNG flows data showed.
sorcerer
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Russia launches railway sector project under Make in India initiative
Read more at:
https://economictimes.indiatimes.co...ofinterest&utm_medium=text&utm_campaign=cppst
Read more at:
https://economictimes.indiatimes.co...ofinterest&utm_medium=text&utm_campaign=cppst
avknight1408
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Dixon Technologies scouts for buys to get in global top 10 EMS league
Dixon Technologies is scouting for acquisitions of design companies as well as buyouts of component makers. This will help it go for backward integration and achieve its target of being among the top 10 players in the $70-billion electronic manufacturing services (EMS) market globally in the next three years.
Currently, it is ranked in the top 20 with the likes of Hon Hai (Foxconn), Pegatron, Wistron, Jabil and Flex in the top pecking order. Dixon is already eligible for three productivity-linked incentives (PLIs) that include mobile devices, IT hardware and telecom products. It has also applied for PLI in developing LED lighting components and expects India to soon become the global hub for this product with exports of over $6-7 billion annually.
Dixon Chairman and Managing director Sunil Vachani said, “Our focus will be on design-led manufacturing, where increasingly, we will also design our products. Secondly, we will also increase value addition and create a component eco system. So, we will be looking at acquisition of design companies in our product areas whether it is software or hardware. We don’t want to reinvent ourselves. And secondly, we will acquire companies in areas, which help us in backward integration, in the space of mobile devices and laptops, among others.”
This year, the company is expecting to hit revenues of Rs 12,000 crore and next year the target is Rs 20,000 crore. “Our estimate is that to hit the top 10 global ESM player slots, we should touch Rs 35,000 crore-Rs 40,000 crore, which is our aim in the next three years,” said Vachani.
Vachani said the PLI scheme, which would also bring in the components’ infrastructure into the country, will help in a major way to reduce imports and increase local value addition. For instance, he pointed out that in LED lighting, the current value addition is 35 per cent. It will go up to 60-65 per cent within two years as the entire PLI incentive is focused on manufacturing components within the country.
Also, with many assembly, testing, marking and packing (ATMP) and integrated circuit (IC) packaging units being set up under the scheme, value addition will go up further to 85 per cent. Currently, 95 per cent of the local requirement of LED is “Made in India”.
In LED TVs currently, value addition is only 10 per cent and this will reach 30-35 per cent in a few years. In mobile phones, with display fab plants being set up as well as printed circuit board (PCB) units, the value addition will be up to 35-40 per cent (even China has similar value addition).
Of course, Dixon is now building scale, too, both for the product as well as for components. It is setting up a new second mobile device plant with a capacity to produce 35 million phones with backward integration, the largest from any Indian player. Through the two plants, it expects to hit Rs 10,000 crore revenues in two to three years under the PLI scheme and has already started exports to the US.
In non PLI, Dixon is building a refrigerator plant of 6 million units per annum plant. This will be doubled in a few years. And, it is already the largest manufacturer of LED TVs, with a capacity to produce 7 million sets per annum where the focus now will be on backward integration.
With a total investment of around Rs 700-800 crore planned, Dixon expects to leverage internal accruals and its comfortable debt-to-equity ratio to raise more funds. It has also cleared an enabling provision to raise equity. Vachani said all these options are open to the company.
Dixon Technologies is scouting for acquisitions of design companies as well as buyouts of component makers. This will help it go for backward integration and achieve its target of being among the top 10 players in the $70-billion electronic manufacturing services (EMS) market globally in the next three years.
Currently, it is ranked in the top 20 with the likes of Hon Hai (Foxconn), Pegatron, Wistron, Jabil and Flex in the top pecking order. Dixon is already eligible for three productivity-linked incentives (PLIs) that include mobile devices, IT hardware and telecom products. It has also applied for PLI in developing LED lighting components and expects India to soon become the global hub for this product with exports of over $6-7 billion annually.
Dixon Chairman and Managing director Sunil Vachani said, “Our focus will be on design-led manufacturing, where increasingly, we will also design our products. Secondly, we will also increase value addition and create a component eco system. So, we will be looking at acquisition of design companies in our product areas whether it is software or hardware. We don’t want to reinvent ourselves. And secondly, we will acquire companies in areas, which help us in backward integration, in the space of mobile devices and laptops, among others.”
This year, the company is expecting to hit revenues of Rs 12,000 crore and next year the target is Rs 20,000 crore. “Our estimate is that to hit the top 10 global ESM player slots, we should touch Rs 35,000 crore-Rs 40,000 crore, which is our aim in the next three years,” said Vachani.
Vachani said the PLI scheme, which would also bring in the components’ infrastructure into the country, will help in a major way to reduce imports and increase local value addition. For instance, he pointed out that in LED lighting, the current value addition is 35 per cent. It will go up to 60-65 per cent within two years as the entire PLI incentive is focused on manufacturing components within the country.
Also, with many assembly, testing, marking and packing (ATMP) and integrated circuit (IC) packaging units being set up under the scheme, value addition will go up further to 85 per cent. Currently, 95 per cent of the local requirement of LED is “Made in India”.
In LED TVs currently, value addition is only 10 per cent and this will reach 30-35 per cent in a few years. In mobile phones, with display fab plants being set up as well as printed circuit board (PCB) units, the value addition will be up to 35-40 per cent (even China has similar value addition).
Of course, Dixon is now building scale, too, both for the product as well as for components. It is setting up a new second mobile device plant with a capacity to produce 35 million phones with backward integration, the largest from any Indian player. Through the two plants, it expects to hit Rs 10,000 crore revenues in two to three years under the PLI scheme and has already started exports to the US.
In non PLI, Dixon is building a refrigerator plant of 6 million units per annum plant. This will be doubled in a few years. And, it is already the largest manufacturer of LED TVs, with a capacity to produce 7 million sets per annum where the focus now will be on backward integration.
With a total investment of around Rs 700-800 crore planned, Dixon expects to leverage internal accruals and its comfortable debt-to-equity ratio to raise more funds. It has also cleared an enabling provision to raise equity. Vachani said all these options are open to the company.
Abdus Salem killed
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Where ?
avknight1408
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Coalmine
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Aliance air is govt or private?
avknight1408
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It is a subsidiary of Air India. But in privatization process it was left out. Tata group will get Air India and Air India Express only.
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Ya'll Nibbiars prices are not going to increase but stabilize. Don't jump without reading to those memebers who only read headlines. But massive build ups is possible but again Ditrubeted properly
Okabe Rintarou
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Why? What happened?
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