Indian Economy: News and Discussion

Haldilal

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Ya'll Nibbiars Meanwhile everyone was saying Mai Baap Adani. I was busy.

The ITC Posted 5031 Crore rupees, Net Profit and 16226 Crore rupees Revenue from Operations in Q3. The Declared 6 rupees per Share Dividend for Shareholders.
 

AnantS

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Yep any doubt US is targeting India. Yet some were saying world want to see only two countries rise US and India :D. US shall try its all its might to never allow India to rise beyond point. This is litmus test for Modi and India. Lets see how India rides Chinese and US aggression simultaneously.
 

Love Charger

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Yep any doubt US is targeting India. Yet some were saying world want to see only two countries rise US and India :D. US shall try its all its might to never allow India to rise beyond point. This is litmus test for Modi and India. Lets see how India rides Chinese and US aggression simultaneously.
How can we ?
We have to bow else what you or anybody else suggests here ?
USA is targetting india, we know that and this case proves it
Neither we are militarily powerful ourselves nor any nation of europe other than britain for example france or germany have a independent economy or geo political goals which are opposite of Anglo interests
Nor is Soviet Union anymore ,we have two super powers in this world and both are our enemies .
 

AnantS

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How can we ?
We have to bow else what you or anybody else suggests here ?
USA is targetting india, we know that and this case proves it
Neither we are militarily powerful ourselves nor any nation of europe other than britain for example france or germany have a independent economy or geo political goals which are opposite of Anglo interests
Nor is Soviet Union anymore ,we have two super powers in this world and both are our enemies .
There are ways to hit. West loves their NGO's. Squeeze them :)
 

Haldilal

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Ya'll Nibbiars

1 . The Tirupati Oil Cake Industries has acquired land to set up a new dal mill processing unit at Chincholi MIDC in the Solapur district of Maharashtra. The proposed unit will cover over 16 acres of land parcel. The project also expects to generate employment for 200 persons.

The investment of approx. 45 crore will be funded through a bank loan, and the remaining Rs 15 crore will be invested through internal accruals.

2 . The Web Werks.Iron Mountain joint venture JV plans to invest an additional sum of Rs 4,000 crore towards expanding data centre capacity in Maharashtra. The company is looking to sign a Memorandum of Understanding MoU's with the state government for the same.

3 . The lSGEC Heavy Engineering bagged a contract for a 100 klpd extra neutral alcohol (ENA) plant on grain and a 500 klpd ethanol plant on syrup. The company received orders from Panchganga Sugar & Power, Maharashtra. The project will be executed on turnkey basis.

4 . The Amicus Agri Services is in the process of land allotment for the construction of an agro, basic inorganic, and specialty inorganic chemicals unit at Gadhinglaj Industrial Area in the Kolhapur district of Maharashtra. The proposed unit will have a capacity of 12 tpd, and the project will take up 10 acres of land parcel. The project will result in employment for about 195 individuals.
 

Anandhu Krishna

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How can we ?
We have to bow else what you or anybody else suggests here ?
USA is targetting india, we know that and this case proves it
Neither we are militarily powerful ourselves nor any nation of europe other than britain for example france or germany have a independent economy or geo political goals which are opposite of Anglo interests
Nor is Soviet Union anymore ,we have two super powers in this world and both are our enemies .
There are plenty of ways to hit them.
 

angryIndian

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Depends what kind of BA. BA Economics - CA/MBA route. BA ->IAS/Other Govt Jobs. BA with Foreign Language Specialization(They ean better than IT counterparts - serving as translator). Even Bachelor of Fine Arts end up working in IT Industry as designers. Btech is not end of the world. Given the kind of colleges we have where there is dearth of money to sponsor innovation projects for non IT branches. I doubt just increasing numbers of BTech graduates would serve any purpose. Reorientation of technical Education is needed. It should be attuned with current and future Industrial/National needs.

Do you think that there are millions of Chartered Accountants,Financial advisor, Translators, designer,civil service jobs ? These jobs are tertiary sector jobs with very few openings.Out of the millions of applicants only 1% or less will get the job, what happens to the rest? run around unemployed or open tea stalls?

If everybody runs after white-collar jobs, then who will do the blue-collar work ? India needs millions of skilled tradesmen and not charted accountants,civil servants and another office dwellers,An army of skilled blue-collar workers is a thing required to make India a manufacturing hub,else it will remain a perpetual pipedream.
 

Haldilal

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Ya'll Nibbiars




 

Abbey

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this week’s National Interest isn’t about Gautam Adani. This is, instead, about Indian capitalism.

This is the toughest stress test for Indian capitalism in our independent history. Or, more precisely, post-1991 history. Since the expansion, opening up and modernisation of Indian markets began in the summer of 1991, many crises have struck it periodically.

Among these were HPrannoy and Radhika Roy and the world of news this week onarshad Mehta, Ketan Parekh, Fairgrowth and others. Each one held out a crippling threat to Indian markets and to the new equity culture among common Indians, which is so crucial to a new capitalism.

Each rocked Parliament, pauperised many well-meaning investors and sent some crooks to jail, if briefly. But there are five crucial differences between these and now:

• None of these crises arose when the Indian markets and economy were globally integrated.

• These were crises of domestic markets where domestic interventions, either by financial or regulatory institutions — or even a phone call from North Block — could make a difference. The latest one is playing out fully in global markets and, more importantly, international media.

• The old crises — check out the so-called KP-7 (KP for Ketan Parekh) for example — mostly concerned Indian companies doing the bulk of their business in India. This one is about India’s most globalised corporate.

• The earlier crises emerged here, and the whistleblowers or investigative journalists who exposed these were Indian. This one has been triggered by a very foreign and tiny financial institution.

• The fifth, and the most significant, difference from the standpoint of this column — is that those who’ve created this kerfuffle aren’t whistleblowers. Nor are they activist shareholders. They are coming at it purely for profit. They are short-sellers. They have a fully disclosed vested interest in bringing down the share price of a company they’re ‘investing’ in by short-selling its US-traded bonds and non-Indian-traded derivative instruments. Who said you only make money in the stock markets when your share goes up?

The reason we list this fifth difference as the most critical is simple. When foreigners invest in our companies, when our companies list overseas, when the world sings our praises, when FDI and FPI figures zoom, we celebrate. Do we, at the same time, have the nerve to take the downsides that come with it?

One, that we, our government, financial institutions or regulators can no longer influence or arm-twist this all-powerful entity called the ‘market’.

Two, the need to accept that even what looks like a bunch of young upstarts can look to make mega profits by taking down one of your biggest conglomerates in the market. Markets in good capitalism have no nationalist lens. If money has no colour, it also carries no passport. And those who play in the market love their money first. All national, political or ideological loyalties come after that.

It is for all these reasons that we call the ongoing crisis the greatest stress test for Indian capitalism yet. And as we conclude the first full week of the market action on this, we can acknowledge that so far, Indian capitalism has passed that test. In fact, with a score of almost 10 out of 10. Surprised?

Almost two weeks into the crisis, the Modi government hasn’t said a word about it. None of the regulatory institutions has intervened in the market in any manner whatsoever, least of all as if to help the Adani Group absorb the blow better.

The conglomerate has been left to its own devices. If at all, the NSE has done the usual — and prudent — thing of increasing margin payments to curb excessive speculation. This is fully the NSE’s mandate in a situation of heavy volatility.

While the conglomerate called it a foreign conspiracy to attack and damage India and its institutions, the government, the entire finance ministry establishment, regulators and the ruling party leadership have all kept mum. Never mind the flag.

If India’s most powerful political establishment in almost five decades responds to a situation like this as if it’s something that must only play out between a corporate and the market, it is the coming of age of Indian capitalism. It is as if ‘let the market take its course’ is the new ‘let the law take its own course’.

Think, on the contrary, what would have followed if the mighty Indian state had acted in the way it might have when our political economy was less evolved. Really bad ideas like the suspension of trading and the launch of investigations against the “greed, amoral, and what-have-you” short-sellers could’ve found currency.

Even the whiff of such a false step would’ve done enormous damage to India’s markets, the global trust on which a booming new economy rides, and indeed to our still very adolescent capitalism. And please don’t say this talk is nonsense, that no such thing would ever be possible. The scar of the retrospective Vodafone amendment on global trust in India is still to heal fully. We have to be grateful that such ideas aren’t floating around now.

Essential to the embrace of capitalism is the acceptance of the fact that losses are as much a part of business as profits. Nobody can pass a law mandating only profits in the markets.

That’s why mutual fund sellers keep repeating that statutory warning: Mutual fund/equity investments are subject to market risks. It’s also because these investments involve risk that governments tax capital gains on equities and equity mutual funds at lower-than-normal rates.

The lesson for common folk, therefore, is not to get irritated when that statutory caution is repeated in so many advertisements between overs during your T-20 live telecast. Losses are as much a part of the market as profits. Hindenburg has only underlined to us that you can also make profits from “losses” if you’re a short-seller with nerve — and information.

The reason the market, particularly one as large and spread out as India’s, is so powerful is that it can never be identified with any individual. Not one, not many, not even a cohort. Think of it as a mob of anonymous moneyed millions. There is safety in numbers. Which is further fortified by that one-line ideology that governs the market: I love my money.

People can follow this god or that, vote for one party and detest another, love one football or IPL franchise and hate another. But they will never let any of this affect their choices on the market.

The only thing that matters here is ‘my money’. Of course, I can make the wrong choices, but never because of my politics, religion or loyalties. This is what makes money the most secular god of all. Which in turn makes the market the most powerful monarch. At least in the world of capitalism.

If you are in the market — never mind whether as a corporate, conglomerate, broker, banker or even an ordinary day trader or investor — understand the fundamental law that applies: May you be ever so high, the market is above you.

In this round, the market has won. But it is still for Adani now to decide whether he has lost or not. Accepting defeat would mean continuing to fret and fight with the market, with money or other clout, finding shelter underneath the supposedly ulterior motives of the short-seller.

The other way would be to take the blow with humility, as a bad day in the market. Focus on the many good and bounteously cash-yielding businesses and assets more sharply, rebuild what just got broken, and hope that the market will love you again in the course of time. This would be good capitalism.
 

FalconSlayers

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India's services exports rise by 20.14% to $31.3 billion in December 2022: RBI data

Means $375+ billion worth of Services exports in 12 months or a year, while our services exports will only grow, we can witness near $400 billion in just services exports coupled with $450+ billion in goods exports in upcoming financial year starting from 1st April 2023.
 

Kumata

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Banks have written off Rs 11.17 lakh crore bad loans from their books in the last six years till financial year 2021-22, Parliament was informed on Tuesday.

The non-performing assets (NPAs), including those in respect of which full provisioning has been made on completion of four years, are removed from the balance sheet of the bank concerned by way of write-off, Minister of State for Finance Bhagwat Karad said in a written reply.

Banks write off NPAs as part of their regular exercise to clean up their balance sheet, avail tax benefit and optimise capital, he said, adding, the write-off is carried out by the banks in accordance with RBI guidelines and policy approved by their boards.

"As per RBI data, public sector banks (PSBs) and scheduled commercial banks (SCBs) wrote off an aggregate amount of Rs 8,16,421 crore and Rs 11,17,883 crore respectively during the last six financial years," he said.

With regard to the list, including names of write-offs/defaulters who have defaulted more than Rs 1 crore to the public sector banks, RBI has informed that borrower-wise information on written off loan accounts is not maintained by it, he said.

In reply to another question, Karad said, the Reserve Bank of India (RBI) has informed that the total number of wilful defaulters each having outstanding loan of Rs 25 lakh and above in public sector banks was 8,045 as on June 30, 2017 and 12,439 as on June 30, 2022; whereas in private sector bank, it was 1,616 as on June 30, 2017 and 2,447 as on June 30, 2022.

He further said, "RBI has informed that as on 30.6.2017, there were 8,744 suit-filed wilful defaulters and 917 non-suit-filed wilful defaulters in public and private sector banks, and as on 30.6.2022, the same stands at 14,485 and 401 respectively." The list of suit-filed wilful defaulters of Rs 25 lakh and above is available in the public domain on the websites of the Credit Information Companies (CICs) and that of non-suit filed wilful defaulters is confidential in nature and are not in public domain.

The Enforcement Directorate (ED) has informed that 515 fraud cases, including cases related to wilful defaulters, have been recorded since May 1, 2017 under the provisions of Prevention of Money Laundering Act (PMLA), 2002.

As on December 15, 2022, he said, in these cases, assets worth Rs 44,992 crore (approx.) have been attached and 39 prosecution complaints have been filed by the Directorate.

Further, as on December 15, 2022, assets worth Rs 19,312.20 crore of wilful defaulters like Vijay Mallya, Nirav Modi and Mehul Choksi have been attached since May 2017 by the ED under PMLA, 2002, out of which, assets worth Rs 15,113 crore have been restituted to the public sector banks, he said.

Banks themselves write off NPAs as part of their regular exercise to clean up their balance sheet, avail tax benefit and optimise capital, in accordance with RBI guidelines and policy approved by their boards, he said.

Replying to another question, Karad said Scheduled Commercial Banks have recovered an aggregate amount of Rs 6,59,596 crore, including the recovery of Rs 1,32,036 crore from written-off loan accounts during the last five financial years as per the RBI data.

In reply to another question, he said, the total amount of recapitalisation by the government in banks during last five financial years is Rs 2,90,600 crore, including recapitalisation of Rs 4,557 crore in IDBI Bank Ltd, which has been categorised as private sector bank by RBI on January 21, 2019.

In the financial year 2021-22 and first half of the financial year 2022-23, he said, PSBs have reported aggregate net profit of Rs 66,543 crore and Rs 40,992 crore respectively.
 

another_armchair

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Recovery of written off loans is poor though. Only about 13%. Banks need to bash on regardless unless these funds were siphoned off by the borrowers which happens quite often. Make bogus invoices, send money abroad, bring it back into the markets through the FPI/FII route.



The public sector banks (PSBs) have recovered ₹6.42 lakh crore of non-performing loans and written-off loans since FY15 and filed suits against 98.5% of wilful defaulters, data available with the government showed.

Over FY16 to FY21, the government has infused ₹3.36 lakh crore of capital in PSBs while the banks themselves have raised an additional ₹2.99 lakh crore from the markets.

The provision coverage ratio of the PSBs, a measure of health that captures amounts set aside to cover bad loans, has improved to 86.9% at the end of March 2022 from 46% at the end of March 2015.


The state-run banks have recovered ₹5.17 lakh crore in non-performing assets (NPAs) and ₹1.24 lakh crore in written-off accounts since FY15.

The gross NPA ratio of PSBs has fallen from 14.6% on March 31, 2018, to 7.4% on March 31, 2022, while the net NPA ratio declined from 8% to 2% over this period. Stressed assets are down from 15.3% to 8.7%.

"Banks continue to pursue recovery actions initiated in written-off accounts through various recovery mechanisms available," a senior government official said.


These include recovery suits in civil courts or Debts Recovery Tribunals, action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, cases in the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016, or through negotiated settlement/compromise, and through the sale of NPAs.




The occurrence of fraud as a proportion of the gross advances of PSBs dropped from a peak of 1.32% during the financial year 2013-14 to 0.05% during the financial year 2021-22.

"The improved detection and reporting accompanied with the comprehensive steps taken to check frauds have resulted in a decline in the occurrence of such frauds," the above-quoted official added.

Out of 12,265 designated wilful defaulters as of March 31, 2022, suits have been filed against 12,076 (98.5%), FIRs have been lodged against 40.2% and SARFAESI action initiated against 75.5%

"The government has further provided a conducive business environment and healthy competition which has encouraged private sector banks to flourish in the country," the official said pointing to the fall in the share of PSBs in gross advances from 74.29% in 2014-15 to 58.34% in 2021-22.
 
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another_armchair

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India's services exports rise by 20.14% to $31.3 billion in December 2022: RBI data

Means $375+ billion worth of Services exports in 12 months or a year, while our services exports will only grow, we can witness near $400 billion in just services exports coupled with $450+ billion in goods exports in upcoming financial year starting from 1st April 2023.
We run a pretty steep services imports bill too. Wonder how many Indians own and operate some of these.
Data is a little old and this segment is poorly tracked/documented. All sectors/segments clubbed under one head - services imports.

India’s imports of services (2014-18) in billion $.

CodeService label20142015201620172018
SAll services128.36123.57133.53154.60176.58
SOXMemo item: Commercial services127.40122.69132.85153.96175.45
3Transport58.9052.2647.9557.0666.74
10Other business services26.8729.8132.7435.4438.71
4Travel14.5914.8416.3818.4421.31
SNServices not allocated5.105.9712.2614.4316.83
8Charges for the use of intellectual property n.i.e.4.855.015.476.527.91
9Telecommunications, computer, and information services4.323.804.756.077.09
6Insurance and pension services5.885.235.076.296.75
7Financial services4.123.125.025.804.04
11Personal, cultural, and recreational services1.391.371.892.142.54
5Construction1.130.960.951.222.49
12Government goods and services n.i.e.0.960.880.680.641.13
2Maintenance and repair services n.i.e.0.220.310.320.511.00
1Manufacturing services on physical inputs owned by others0.030.030.050.040.04
 

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