Indian Economy: News and Discussion

[Chinmoy]

Is job creation really slow in India? Can anyone share some information on this?

It depends upon sector. As of now, the most hard hit sector is Government and PSU. If you have followed the trend in recent employment news, students in Bihar and UP are the ones who are facing maximum difficulties as they are much more interested in government sector jobs.

 

[pmaitra]

Is job creation really slow in India? Can anyone share some information on this?

It depends upon sector. As of now, the most hard hit sector is Government and PSU. If you have followed the trend in recent employment news, students in Bihar and UP are the ones who are facing maximum difficulties as they are much more interested in government sector jobs.

IT Blues: Why are Indian infotech firms losing steam? - Livemint

No salary hike for freshers in IT space amid hiring blues

____________

I am hearing a lot of stories from friends and acquaintances. Many people are getting fired and hiring is at a low. With the new administration in the US, things are not looking particularly optimistic from the Indian IT point of view.

 

[tharun]

Forex reserves at life-time high of $381.167 bn

MUMBAI: India's forex reserves surged by $2.404 billion to reach life-time high of $381.167 billion in the week to June 2 on account of rise in foreign currency assets, the Reserve Bank said today.


http://economictimes.indiatimes.com...e-high-of-381-167-bn/articleshow/59073551.cms

What is the use of this stupid reserves...If we can't invest for a good return except buy shit american bonds with 2% interest rate and sit on it.
Looks at other countries with sovereign wealth funds with returns with 10-30%.
Many of them invested in our country also.
Look at Apple company it's share price was 2$ during 2001,If govt have invested 1$ billion today it would be 140+ billion dollar.
Our International investment is -340$+ billion,Half of our reserves are fixed deposits.
We should always must be prepared for worst day.

 

[Prayash]

India's May retail inflation reaches record low of 2.18%
RELATED NEWS
MoSPI to release IIP for April, CPI for May data today
Retail inflation eases to 2.99% in April
CPI, IIP data today; here's what to expect
Retail Inflation rises at 3.81% in March 2017
CPI, IIP numbers to be release today; Here's what you can expect



India's retail inflation, or consumer price index (CPI) reached new lows in the month of May 2017 to stand at 2.18% as against 5.76% in May of 2016.

This is the lowest recorded retail inflation since 2012 and remains below Reserve Bank of India's (RBI) medium term threshold of 4%.

ALSO READ: Retail inflation eases to 2.99% in April

Data compiled by Ministry of Statistics and Programme Implementation (MoSPI) show that consumer food price index (CFPI) went into the negative territory to stand at -1.05% in May 2017 as against 7.47% in May 2016.

Rural CFPI stood at -0.60% and urban CFPI stood at -1.85%.

Retail inflation or CPI for April 2017 was at 2.99%.

A Reuters poll of 25 economists expected retail inflation for May 2017 to ease to 2.60% on the back of falling food and perishable goods prices.

A good June-September monsoon, which delivers about 70 percent of India's annual rainfall, will help drive higher food and grain production, keeping food inflation in check.

ALSO READ: Monetary Policy: RBI lowers inflation, GVA projection

Earlier this month, RBI kept its benchmark repo rate unchanged whle softening its hawkish stance following a drop in consumer inflation.

The central bank lowered its headline inflation forecasts to a range of 2.0-3.5% for the first half of fiscal year 2017/18 and 3.5-4.5% in the second half, down from 4.5% and 5%, respectively.

(With Reuters inputs)

Read Zeebiz.com's full coverage on retail inflation here.

 

[Prayash]

SIAM May figures point to growing demand for utility vehicles

Hyundai Creta on the road. Photo: Hyundai Motor India official website
Key highlights:

• UV sales posted a massive 18.8% growth in sales in May 2017
• Rising demand for SUVs to push car market
• Slowdown in passenger cars with 4.8% growth in May

Giving further weight-age to the trends of rising demand for SUVs, the Society of Indian Automobile Manufacturers (SIAM) data released on Friday showed that utility vehicles (UV) were the ones in the driving seat for growth in sales in May. UV sales posted a massive 18.8% growth in sales in May 2017 to push the total passenger vehicles sales.

ALSO READ: Big ticket cars, bikes setting the pace of growth for automobile firms

SUV sales grew to 69,845 units in May 2017 from 58,793 units in the same month last year. This helped push passenger vehicle growth to 8.63% as sales rose to 2,51,642 units in May this year from 2,31,640 units in the same month last year.

Passenger cars saw a slowdown in growth as it grew by 4.8% in May in comparison to the corresponding period last year. While van sales grew by 9.5% during the month.


Domestic passenger car sales increased to 1,66,630 units in May this year from 1,58,996 units in the same month last year. While van sales grew to 15,167 units during the month from 13,851 units in the corresponding month last year.

The May sales figure strongly points to a growing trend in the car market of rising demand for premium cars such as SUVs.

According to recent HSBC report overall market share of SUVs in India's passenger vehicle market has increased to about 27% currently from around 14% five years back.

ALSO READ: More car buyer upgrade to compact SUVs, mid-size sedans, premium hatchbacks

The mini segment, on the other hand, is only 28% market share, down from 45% in FY09.

The reason for this is that more first-time buyers choosing to go for second-hand compact hatchbacks and then upgrading to compact SUVs.

The attractions for premium cars are higher ground clearance, more room and the desire to upgrade to a smarter vehicle. The desire to meet customer expectations has led to a number of compact SUV, sub-compact SUV models being launched in recent years.

This can be seen as some of the UVs have posted high growth in sales during May and the last few months. This includes Maruti Suzuki Vitara Brezza that posted a 72% growth during the month to sell 12,375 units.

Hyundai Creta too posted a 18.7% growth in sales as it sold 8,377 units during the month. Mahindra & Mahindra's Balero posted a large 54.6% growth in sales during May and Maruti Suzuki Ertiga grew by 72.3% during the same month.
RELATED NEWS
Car sales rise by nearly 5% in May; marginal impact in June sale due to GST: SIAM
More car buyer upgrade to compact SUVs, mid-size sedans, premium hatchbacks
Big ticket cars, bikes setting the pace of growth for automobile firms
Maruti Suzuki dominates domestic car sales but struggles in exports
Tata Motors' car sales rise by 27% in May powered by Tiago, Tigor, Hexa

Source:http://www.zeebiz.com/automobile/ne...-for-utility-vehicles-17321?pfrom=editor-pick

 

[Prayash]

Nestle, PepsiCo & other 8 companies control everything you buy

In 2016, among all the 10 consumer brands, Nestle clocked revenue of $90.2 billion followed by PepsiCo at $62.8 billion and Unilever at $48.3 billion. Representational Image. Image Source: Oxfam

By ZeeBiz WebTeam
Updated: Mon, Jun 12, 2017
02:13 pm
Mumbai , ZeeBiz WebDesk
Whatever you buy from large food and beverage brand majority of them are controlled by 10 companies like Nestle, PepsiCo, Unilever, among others, Business Insider reported.


According to the report, these 10 companies are Nestle, PepsiCo, Coca-Cola, Unilever, Danone, General Mills, Kellogg's, Mars, Associated British Foods, and Mondelez - each employ thousands and make billions of dollars in revenue every year, the report said.

In order to help customers to realise who controls the brands they are buying, the report further citing Oxfam infographic has published information on how interconnected consumer brands really are.

In 2016, among all the 10 consumer brands, Nestle clocked revenue of $90.2 billion followed by PepsiCo at $62.8 billion and Unilever at $48.3 billion.

1. Kellogg's
In 2016, Kellogg's recorded revenue of $13 billion. The company owns brands like Forget Froot Loops and Frosted Flakes including non-cereal brands like Eggo, Pringles, and Cheez-It, the report said.

2. Associated British Foods
This British company owns brands such as Dorset Cereals and Twinings tea, as well as the retailer Primark. It clocked a revenue of $16.8 billion in 2016.

3. General Mills
General Mills is best known for cereals like Cheerios and Chex, but it also owns brands like Yoplait, Hamburger Helper, Haagen-Dazs, and Betty Crocker, the report said. It recorded revenue of $16.6 billion in 2016.

4. Danone
Best known for yogurts like Activa, Yocrunch, and Oikos, Danone also sells medical nutrition products and bottled water. The company registered revenue growth of $23.7 billion in 2016.

5. Mondelez
According to the report, the snack-centric company's brands include Oreo, Trident gum, and Sour Patch Kids and it clocked revenue of $25.9 billion in 2016.

ALSO READ: FMCG Q4 analysis: Nestle India vs HUL vs ITC vs Britannia India

6.Mars
Mars known for chocolate brands, such as M&M, but it also owns Uncle Ben's rice, Starburst, and Orbit gum. It has recorded a revenue of $35 billion in 2016.

7. Coca-Cola
Coca-Cola is moving beyond soda, with beverage brands including Dasani, Fuze, and Honest Tea. The company recorded $41.9 billion revenue in 2016.

8. Unilever
Unilever's diverse list of brands includes Axe body spray, Lipton tea, Magnum ice cream, and Hellmann's mayonnaise. It registered $48.3 billion revenue in 2016

9. PepsiCo
In addition to Pepsi and other sodas, PepsiCo also owns brands such as Quaker Oatmeal, Cheetos, and Tropicana. The company clocked revenue of $62.8 billion in 2016, cited the report.

10. Nestle
Brands you may not have known that Nestlé owns include Gerber baby food, Perrier, DiGiorno, and Hot Pockets — plus, of course, candy brands including Butterfinger and KitKat, the report said. It registered a revenue of $90.2 billion in 2016.

 

[Trinetra]

Nestle, PepsiCo & other 8 companies control everything you buy

In 2016, among all the 10 consumer brands, Nestle clocked revenue of $90.2 billion followed by PepsiCo at $62.8 billion and Unilever at $48.3 billion. Representational Image. Image Source: Oxfam

By ZeeBiz WebTeam
Updated: Mon, Jun 12, 2017
02:13 pm
Mumbai , ZeeBiz WebDesk
Whatever you buy from large food and beverage brand majority of them are controlled by 10 companies like Nestle, PepsiCo, Unilever, among others, Business Insider reported.


According to the report, these 10 companies are Nestle, PepsiCo, Coca-Cola, Unilever, Danone, General Mills, Kellogg's, Mars, Associated British Foods, and Mondelez - each employ thousands and make billions of dollars in revenue every year, the report said.

In order to help customers to realise who controls the brands they are buying, the report further citing Oxfam infographic has published information on how interconnected consumer brands really are.

In 2016, among all the 10 consumer brands, Nestle clocked revenue of $90.2 billion followed by PepsiCo at $62.8 billion and Unilever at $48.3 billion.

1. Kellogg's
In 2016, Kellogg's recorded revenue of $13 billion. The company owns brands like Forget Froot Loops and Frosted Flakes including non-cereal brands like Eggo, Pringles, and Cheez-It, the report said.

2. Associated British Foods
This British company owns brands such as Dorset Cereals and Twinings tea, as well as the retailer Primark. It clocked a revenue of $16.8 billion in 2016.

3. General Mills
General Mills is best known for cereals like Cheerios and Chex, but it also owns brands like Yoplait, Hamburger Helper, Haagen-Dazs, and Betty Crocker, the report said. It recorded revenue of $16.6 billion in 2016.

4. Danone
Best known for yogurts like Activa, Yocrunch, and Oikos, Danone also sells medical nutrition products and bottled water. The company registered revenue growth of $23.7 billion in 2016.

5. Mondelez
According to the report, the snack-centric company's brands include Oreo, Trident gum, and Sour Patch Kids and it clocked revenue of $25.9 billion in 2016.

ALSO READ: FMCG Q4 analysis: Nestle India vs HUL vs ITC vs Britannia India

6.Mars
Mars known for chocolate brands, such as M&M, but it also owns Uncle Ben's rice, Starburst, and Orbit gum. It has recorded a revenue of $35 billion in 2016.

7. Coca-Cola
Coca-Cola is moving beyond soda, with beverage brands including Dasani, Fuze, and Honest Tea. The company recorded $41.9 billion revenue in 2016.

8. Unilever
Unilever's diverse list of brands includes Axe body spray, Lipton tea, Magnum ice cream, and Hellmann's mayonnaise. It registered $48.3 billion revenue in 2016

9. PepsiCo
In addition to Pepsi and other sodas, PepsiCo also owns brands such as Quaker Oatmeal, Cheetos, and Tropicana. The company clocked revenue of $62.8 billion in 2016, cited the report.

10. Nestle
Brands you may not have known that Nestlé owns include Gerber baby food, Perrier, DiGiorno, and Hot Pockets — plus, of course, candy brands including Butterfinger and KitKat, the report said. It registered a revenue of $90.2 billion in 2016.

My consumption has mostly changed to Domestic industry Patanjali.. almost 85-90 % things are from Patanjali at my home.. some old stocks of other vendors are there... will convert that to 95% later..

 

[Suryavanshi]

My consumption has mostly changed to Domestic industry Patanjali.. almost 85-90 % things are from Patanjali at my home.. some old stocks of other vendors are there... will convert that to 95% later..

Yoooooo Patangali noodles are the bomb man easily 10x better than maggie.
My parents Use all Patangali products Edibles like Dal Chana Sugar Salt Spices as well as cosmetics and other daily life necessities.

Just Hoping Baba doesn't go all corrupt and betray us, now that would be sad

 

[Trinetra]

Yoooooo Patangali noodles are the bomb man easily 10x better than maggie.
My parents Use all Patangali products Edibles like Dal Chana Sugar Salt Spices as well as cosmetics and other daily life necessities.

Just Hoping Baba doesn't go all corrupt and betray us, now that would be sad

Me too.. He really need to maintain this high standard for all the time and keep the the country stick to Indian products.. but there are some also anti-national at work who want to sabotage the domestic industry at the behest foreign companies..

 

[Johny_Baba]

My consumption has mostly changed to Domestic industry Patanjali.. almost 85-90 % things are from Patanjali at my home.. some old stocks of other vendors are there... will convert that to 95% later..

Though I'm supporter of Patanjali,I still spend money behind other Indian company,Godrej cause their product (mainly soap and deodrants) are still somewhat cheaper to Patanjali's.

 

[Trinetra]

Though I'm supporter of Patanjali,I still spend money behind other Indian company,Godrej cause their product (mainly soap and deodrants) are still somewhat cheaper to Patanjali's.

Yup.. could be expensive because Patanjali uses more genuine raw ingredient to make them which eventually makes them costs more.. but I can invest bit more rather than buy the products which are produced by foreign brands..

 

[Prayash]

RBI to direct banks to start bankruptcy proceedings against 12 defaulters

People walk past a barricade inside the Reserve Bank of India (RBI) headquarters in Mumbai

The Reserve Bank of India (RBI) said on Tuesday it has identified 12 of the largest loan defaulters and will order lenders to start bankruptcy proceedings against them to start unclogging the $150 billion in bad debt plaguing Asia`s third-largest economy.

The move comes about a month after the government gave the RBI greater power to deal with bad loans, including directing banks to initiate an insolvency resolution process in the case of a default under the bankruptcy code.

The RBI said the 12 accounts constituted about 25 percent of the overall gross non-performing assets, adding it will direct lenders to begin insolvency proceedings around these accounts.

The committee narrowed the list to 12 by focusing on accounts owing more than 50 billion rupees ($777.2 million), where 60 percent or more of the loan had been already classified as non-performing by banks as of March 31, 2016.

Those 12 accounts were identified based on "objective, non-discretionary criterion" outlined by an internal advisory committee, the RBI said in a statement.

The RBI, however, did not provide details about the loans or the banks holding them, which are typically not made public.

The banks have been given six months to finalise resolution plans for other non-performing accounts that do not currently qualify under this criteria.

If no resolution plan is hatched in that period then banks will have to begin insolvency proceedings on these accounts too, RBI said.

DOUBTS REMAIN

The move marks India`s latest attempt to tackle the record 9.64 trillion rupees ($150 billion) in stressed loans as of December, which have choked new credit and hurt economic growth.

Loans classified as non-performing amounted to more than 7 trillion rupees as of March, although final numbers have yet to come.

Sapan Gupta, a lawyer at Shardul Amarchand Mangaldas, called it "a positive and bold step", though some details would need to be worked out, including if a single bank or banks would jointly start the bankruptcy proceedings. Others expected RBI action include changes to guidelines for restructuring of stressed loans.

"The intent of the government and the regulator is clear that this needs to be addressed in this financial year," Gupta said.

A senior banker at a large state-run lender declined to give details about the accounts identified by the RBI, saying it comprised "all the known cases" in media reports.

State-run lenders, who dominate India`s banking sector, carry the bulk of the soured debt. Meanwhile, loans to sectors like infrastructure, power, iron and steel account for the biggest share of non-performing assets.

But challenges remain, including a largely untested insolvency process. Meanwhile, rating agencies have warned India will need to inject significantly more capital to tackle bad debt and meet upcoming global Basel III banking rules than the 700 billion rupees planned by New Delhi.
http://www.zeebiz.com/india/news-rb...nst-12-defaulters-17478?pfrom=home-lead-story

 

[Prayash]

Top five sectors with most exposure to banks NPAs; What can be done?

Representational Image. Photo: Pixabay

Key Highlight:

• 60% of banks stressed assets are from five sectors
• Gross NPAs of banks expected to reach Rs 9.5 lakh crore by FY18

Five sectors alone account for 60% of the total stressed assets on the books of banks in India.

These sectors are steel, power, telecom, infrastructure and textile.

By end of FY17, banks had gross non-performing assets (NPAs) of 9.5% of gross advances valuing up to Rs 7.65 lakh crore.

GNPAs of a total 21 PSBs stood at Rs 6.19 lakh crore, rising by 19.96% compared to Rs 5.16 lakh crore in the similar period of the previous year.

Steel exposure as a percentage of gross credit exposure was highest in public sectors banks compared to private ones.

Total exposure of steel industry is about Rs 3.13 lakh crore out of which gross NPAs is about Rs 1.15 lakh crore – 36.94% of total loan outstanding as on March 2016.

At the same time, power sector exposure is expected to be at Rs 2.3 lakh crore implying a 35% of stress level.

Exposure of power sector as percentage of gross credit is highest in Canara Bank with 10.9%, followed by State Bank of India at 8.7%, Bank of India at 7.6% and Indian Bank at 4.8%.

Private lenders like ICICI Bank and Axis Bank has exposure of 4.7% and 3.9%, respectively.

Telecom sector has an outstanding debt of telecom sector is nearly Rs 4 lakh crore.

Debt of total listed telecom companies was at Rs 2,14,477 crore as on September 2016. Looking at their low capacity for refinancing their debt, RBI has maintain a cautious status on this segment for banks.

Total advances of textile industries stood at Rs 214,574 crore and had gross NPAs of Rs 37,383 crore as on June 2016, as per RBI.

Textile exposure has been highest in Canara Bank, Bank of Baroda, Oriental Bank of Commerce, Punjab National Bank and State Bank of India in the range of 5% - 2%.

Stressed assets in infrastructure reached already at 17.4% in the year FY13 and now stands at 18.6% by September 2016.

These five sectors have posed major risk even for coming years ahead as their interest coverage ratio is below 1.

source-http://www.zeebiz.com/india/news-to...-npas-what-can-be-done-17462?pfrom=home-india

 

[Prayash]

India's penchant for 'natural' personal care products is growing at an exceptional pace

Hiring intentions weak in manufacturing,services;employer confidence dips

 

[Chinmoy]

Narendra Modi government finally manages to break the Swiss bank black money vault

http://economictimes.indiatimes.com...nk-black-money-vault/articleshow/59177213.cms

 

[Kshatriya87]

Narendra Modi government finally manages to break the Swiss bank black money vault

http://economictimes.indiatimes.com...nk-black-money-vault/articleshow/59177213.cms

Data sharing starts from 2019. Till then all money will be transferred elsewhere. Anyways, commendable job breaking the swiss dilema.

 

[Chinmoy]

Data sharing starts from 2019. Till then all money will be transferred elsewhere. Anyways, commendable job breaking the swiss dilema.

There was a reason why it has been stored in Swiss bank in the very first place. The amount of security and anonymity the clients enjoyed in Swiss banks is not something comparable to any other banking business community. Moreover now any movement would leave a trail behind for sniffers to look upon. But the down side is we would be unable to trace anything prior to 2018.

 

[Kshatriya87]

There was a reason why it has been stored in Swiss bank in the very first place. The amount of security and anonymity the clients enjoyed in Swiss banks is not something comparable to any other banking business community. Moreover now any movement would leave a trail behind for sniffers to look upon. But the down side is we would be unable to trace anything prior to 2018.

That's the point. This is why swiss gov has timed it this way.

 

[Chinmoy]

That's the point. This is why swiss gov has timed it this way.

Its been a part of multilateral treaty. Swiss government had been done to part with the info, but they have to give some assurance to their own business community. After all banking is the greatest business in Switzerland.

 

[Suryavanshi]

How much did Ram Dev Baba said we had in Swiss Bank?