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Economy News

Discussion in 'World Economy' started by Indian_Idol, Jun 2, 2010.

  1. Nilgiri

    Nilgiri Lieutenant GEO STRATEGIC ANALYST

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    Hi are there links/sources for this breakdown?

    Plus aren't the OEM components more capital investment heavy compared to labour heavy (i.e are there figures regarding that spread too anywhere)?

    If import duty can assuage enough to start to spur interest in the capital investment for OEM to start in India, while kicking the assembly % from 70 to close to 100....it is step in right direction.

    30% not assembled in India is still a huge amount, can't believe its that high!
     
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  2. Butter Chicken

    Butter Chicken Lieutenant FULL MEMBER

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  3. Butter Chicken

    Butter Chicken Lieutenant FULL MEMBER

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    India imposes anti-dumping duty on 47 steel products for 5 years

    NEW DELHI: India imposed retroactive anti-dumping duties on some steel products of foreign firms including POSCO and Nippon Steel & Sumitomo Metal Corp, the latest in a series of protectionist measures that have already drawn international complaints.

    The duties on hot-rolled flat products of alloy or non alloy steel, originating in or exported from China, Japan, Korea, Russia, Brazil and Indonesia, will be effective for five years from Aug. 8, 2016, the Ministry of Finance said in a statement on its website on Friday.


    Indian companies such as JSW Steel, Tata Steel and SAIL have already benefited from the restrictions on overseas purchases, with imports falling around 37 percent to 7.4 million tonnes and exports jumping 102 percent to 8.2 million tonnes in the year ended March 31 from a year ago.

    http://economictimes.indiatimes.com...products-for-5-years/articleshow/58639456.cms
     
  4. Butter Chicken

    Butter Chicken Lieutenant FULL MEMBER

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    Demonetisation effect: 9.1 million new taxpayers




    http://www.livemint.com/Politics/WRTgYztM2cSiT0deLmMWjN/Demonetisation-effect-91-million-new-taxpayers.html
     
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  5. Butter Chicken

    Butter Chicken Lieutenant FULL MEMBER

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    Road to Swadeshi! PMO giving final touches to big 'Buy Indian' policy

    Buy Indian and Make in India – the government will bring out a full-fledged ‘price preference’ policy favouring Indian-owned companies. The policy, likely to be finalised by end of May, is being driven by the PMO and is aimed at boosting Indian enterprises across sectors.

    Preferential pricing is expected to allow additional time to Indian-owned bidding companies so that they can match the lowest bid in case the latter was made by an entity that’s partly Indian-owned or mostly foreign-owned.


    http://economictimes.indiatimes.com...ig-buy-indian-policy/articleshow/58651467.cms


    Suzuki is pumping in billions of dollars to further strengthen its position in India

    Suzuki has lined up investments worth close to Rs 10,000 crore to set up manufacturing facilities in Gujarat to produce 750,000 vehicles a year.

    It announced a factory to make lithium ion batteries — rechargeable batteries used in electric and hybrid vehicles — in joint venture with Toshiba and Denso. And, if one ties along the proposed partnership with Toyota, Suzuki is clearly thinking far ahead into the future. The move, in fact, has a potential to drive car electrification in the country.

    Read more at:
    http://economictimes.indiatimes.com/articleshow/58650876.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
     
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  6. Butter Chicken

    Butter Chicken Lieutenant FULL MEMBER

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  7. Butter Chicken

    Butter Chicken Lieutenant FULL MEMBER

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    Foxconn plans to invest up to Rs 32k crore in India


    Foxconn, the world's largest contract manufacturer for electronics, has firmed up plans to invest up to $5 billion (around Rs 32,000 crore) in India as it looks to make the country a parallel manufacturing hub to China for export to key markets across Europe and the US. A top official at the Taiwanese company said Foxconn will ramp up Indian operations in an “exponential manner“,

    he confidence coming from the implementation of GST as well as imposition of an import duty on mobiles phones that would discourage sourcing from China and other foreign locations. “India is already high on our priority list, and we now plan to step up investments and business here by opening new factories and expanding the manufacturing footprint,“ the official told TOI, requesting anonymity .

    A large part of the investments could be directed towards setting up of a display fab unit. “This alone can see us invest around $3 billion.“ Apart from this, around $250 million would be directed towards mechanics such as CNC. “The company will also invest in lithium-ion cell factory and facilities for printed circuit boards (PCBs) which are used in manufacture of devices.“

    Read more at:
    http://economictimes.indiatimes.com/articleshow/59433764.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
     
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  8. Butter Chicken

    Butter Chicken Lieutenant FULL MEMBER

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    BSE MD & CEO throws numbers at Bloomberg skeptics

     
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  9. Zer0reZ

    Zer0reZ 2nd Lieutant FULL MEMBER

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    India's June inflation slowest in more than five years

    NEW DELHI (Reuters) - India's annual retail inflation eased in June to its slowest pace in more than five years, as food prices fell, building pressure on the central bank to cut interest rate when it meets for a monetary policy review on Aug 2.
    The consumer price index rose 1.54 percent in the 12 months through June, down from an increase of 2.18 percent in the previous month and slower than the forecast of economists in a Reuters poll, data released by the Ministry of Statistics showed on Wednesday.
    Economists in a Reuters poll had predicted inflation to ease to 1.7 percent last month.
    This is the lowest inflation rate since India started releasing retail inflation data in January 2012 based on a combined CPI index for rural and urban consumers.
    Elsewhere in Asia, China's annual consumer prices remained subdued at 1.5 percent in June.
    With headline inflation remaining below the Reserve Bank of India's mid-term target of 4 percent for the past eight months, industry participants and the government have sought a cut in interest rates to support economic expansion.
    Economists expect that the central bank to cut interest rates in its next policy review.
    "We do expect a rate cut of 25 basis points in the August policy," said Anjali Verma, an economist with Phillip Capital India.
    "Unless there is some major disappointment in the monsoon, I don't see any upside risk to inflation by March 2018."
    The economy grew at an annual 6.1 percent in January-March quarter, the weakest growth since late 2014, hit by Prime Minister Narendra Modi's surprise decision to scrap 86 percent of the currency in circulation in November.
    Some analysts, though, say an increase in charges of services after the launch of a new tax system this month, could push up core inflation, which excludes food and energy prices, and has remained stubbornly stayed above 4 percent for years.
    Separately, industrial output grew 1.7 percent in May from a year earlier, data showed.
    The pace of expansion, however, was slower than a revised 2.8 percent annual rise in April and compared with a 1.9 percent growth forecast by economists in a Reuters poll.

    Bumper Foodgrains

    Analysts say expected good rains this year could lead to bumper grain production and a further slide in food prices in Asia's third largest economy.
    Retail food prices fell 2.12 percent last month from a year ago, compared with a 1.05 percent fall in May. Falling food prices present a worry for the government because of the hit on millions of farm households.
    The central bank now expects retail inflation to come in a 2.0-3.5 percent range for the first half of fiscal year 2017/18 and 3.5-4.5 percent in the second half, down from 4.5 percent and 5.0 percent, respectively.
     
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  10. lca-fan

    lca-fan Major SENIOR MEMBER

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    This may look good but it could also be start of deflation which could be more painful and disastrous. Businesses are sluggish and seeing increased overheads due to GST accounting, business is down due to demonetization as people do not have extra cash and so only necessary purchases are being done by consumers. If situation does not improve businesses will start to go bankrupt and close and economy will stall.
     
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  11. Ankit Kumar 001

    Ankit Kumar 001 Major Technical Analyst

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    FPIs stay bullish on India; pour Rs 11,000 crore in July so far
    By PTI | Updated: Jul 16, 2017, 12.19 PM IST

    The inflow from FPI is expected to remain subdued with depreciating US currency against the Indian rupee.
    Foreign investors have pumped in nearly Rs 11,000 crore in the capital markets in the first two weeks of this month, enthused by the trouble-free rollout of GST and stimulating Indian economy.

    The latest inflow comes following a net infusion of over Rs 1.62 lakh crore in the previous five months (February-June) on several factors.
    Prior to that, such investors had pulled out over Rs 3,496 crore from debt markets in January.

    Dinesh Rohira, Founder and CEO, 5nance.com has attributed the latest inflow to stimulating Indian economy.
    Besides, he said, investor sentiments remained due to the trouble-free rollout of the Goods and Services Tax on July 1.
    He said however that the recent development on incoming global macro data indicates a sign of revival in some developed countries which is expected to poise hurdle for Indian market as FPI may shift their investment avenue.

    Further, the inflow from FPI is expected to remain subdued with depreciating US currency against the Indian rupee, Rohira said.
    "There is a growing concern among foreign investors that an economic recovery in the USA and other major economies could necessitate central bankers to unwind the highly accommodative monetary policy," Sharekhan Head of Research Gaurav Dua said.

    According to latest depository data, FPIs invested a net Rs 498 crore in equities during July 3-14, while they poured Rs 10,405 crore in the debt markets during the period under review, translating into a net inflow of Rs 10,903 crore (USD 1.7 billion).
    With the latest inflow, total investment in capital markets (equity and debt) has reached Rs 1.6 lakh crore (over USD 24 billion) this year.

    http://m.economictimes.com/markets/...crore-in-july-so-far/articleshow/59616923.cms
     
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  12. Zer0reZ

    Zer0reZ 2nd Lieutant FULL MEMBER

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    India's economy set to reclaim top spot for growth this year: Reuters poll

    India will reclaim its position as the fastest growing major global economy this year, partly propelled by benefits from a new tax system and bolstered by an expected central bank interest rate cut, a Reuters poll showed.
    The median forecast from the poll of over 35 economists showed India's economy is expected to expand 7.3 percent in the fiscal year ending March 2018, after slowing sharply at the start of 2017 following last year's government move to scrap high-value banknotes.
    While that is a downgrade from the previous poll's forecast of 7.5 percent, it is better than the International Monetary Fund's projection of 7.2 percent.
    It is also stronger than a similar Reuters poll of economists predicting China will grow by 6.6 percent in calendar year 2017.
    "The GST is likely to add one-two percentage points to GDP growth in the medium to long term with dismantling of tax barriers and by creating a unified market, further improving the competitiveness of exporters and in general, the ease of operating in India," said Tushar Arora, senior economist at HDFC Bank.
    Indian shares are on the rise for the same reasons. The NSE Nifty hit a record high on Monday. It has surged 20 percent so far this year and a separate recent Reuters poll showed the rally is expected continue over the remainder of the year.
    Adding to the brighter outlook, monsoon rains this year are forecast to be above average - a boon for the farm sector that accounts for about 15 percent of India's $2 trillion economy and employs more than half the country's 1.3 billion people. If the rains are good, that would lead to bumper grain production and a further slide in food prices which economists said could lend support to Asia's third-largest economy.
    India's annual retail inflation eased to 1.54 percent in June, its slowest pace in more than five years, but is expected to begin rising again through to mid-2018.
    With inflation currently well below its target, the central bank is expected to cut borrowing costs by 25 basis points (bps) at its next meeting on Aug. 2. It last cut rates, by the same amount, to 6.25 percent in October 2016.
    Having changed its monetary policy stance to neutral from accommodative at the start of the year, the Reserve Bank of India (RBI) softened its position on policy in June in view of the sharp drop in retail inflation.
    "We believe the RBI has space to undertake some modest easing over the next few months and yet meet its 4 percent target comfortably," noted Pranjul Bhandari, chief economist at HSBC Securities and Capital Markets.
    After the expected cut in August, analysts believe the RBI will stand pat until at least the end of next year.
     
  13. lca-fan

    lca-fan Major SENIOR MEMBER

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    Modi's India is challenging China with Factory Power
    Saturday, July 22, 2017 By: SPUTNIK News Source Link: CLICK HERE
    [​IMG]

    India's ambition to rise as a great power has received a strong boost from abroad, in the form of massive investment from foreign manufacturers.

    The Indian government recently implemented its new Goods and Services Tax (GST), marking the country's largest tax reform since its independence in 1947. The launch of the new tax regime is aimed at simplifying India's complicated central and state tax system, unifying India's $2 trillion economy and 1.3 billion people into a single market.

    While there is a lot of skepticism toward India's market unification reform, foreign companies appear to be confident about their prospects in the country. As part of the latest tax reform, India imposed a 10 percent duty on imported smartphones and some other electronic products, which has incentivized global smartphone manufacturers to accelerate their plans to set up plants in India. According to media reports, Foxconn plans to invest up to $5 billion in building new factories in the country. In June, Samsung announced it would invest 700 billion won ($608.28 million) to expand its production capacity in India, with monthly output expected to reach 10 million smartphones and 200,000 refrigerators by 2018.

    Chinese mobile phone manufacturers are also investing in India. Brands like OPPO, Vivo, Lenovo and Xiaomi have set up plants in India, intensifying competition in the country's smartphone manufacturing sector. As early as four years ago, China's mobile phone industry, including brands, original equipment manufacturers, part suppliers, packaging suppliers and materials suppliers, started to enter the Indian market. In addition to smartphones, Chinese home appliances manufacturer Midea Group also announced recently that it would invest 800 crore ($123.98 million) to set up a factory in Pune, a city in western India. The factory is expected to be operational by the end of 2018 and aims to generate 500 jobs over the next five years.

    The global auto industry is also eyeing India. Tesla CEO Elon Musk has said Tesla is having talks with the Indian government to seek temporary relief from import duties ahead of establishing a local factory. A 60 to 100 percent duty is charged on imported foreign-made cars in India. In June, Chinese automaker SAIC Motor Corp announced plans to become the first Chinese auto company to build a manufacturing facility in India. During the period from 1995 to 2000, Hyundai, Ford, General Motors, Honda, Toyota and other automakers started to produce cars in India. And since the Indian government allowed 100 percent foreign ownership in the automobile industry in 2000, there has been a sharp increase in investment by automakers in India.

    This massive influx of investment by foreign manufacturers is of great significance for India's economy, employment and industrial development. If in the past India lacked capital, a developed manufacturing sector and skilled manufacturing workers, the foreign manufacturing inflow is now helping India address the problem, backing up the government's "Make in India" initiative. India mainly needs to do two things: first, enhance opening-up toward foreign companies and issue preferential conditions to attract foreign investment; second, provide sufficient labor resources. The Indian government also needs to open up its domestic consumption market. Foreign companies entering India have gradually shifted their focus from simple marketing and labor-intensive production to research and development. For instance, in 2015, China's Huawei Technologies Co invested $170 million to set up a research and development center in India and promised to join the "Make in India" campaign.

    It should be pointed out that what is happening in India occurred in China two decades ago. Just like what happened with China during its reform and opening-up, the arrival of foreign manufacturing will greatly enhance India's ability to develop its manufacturing sector, which will help in cultivating a large number of skilled workers, managers and factories.

    China should be calm seeing India's rise. To cope with competition from India, China could start working on a more effective growth strategy for the new era now.

    The influx of foreign manufacturers is addressing some of India's weaknesses and enhancing its manufacturing ability, with Chinese companies also playing an important role in the process. This is a repeat of China's introduction of foreign investment, which is why it is likely that India may succeed.
    http://www.defencenews.in/article/Modis-India-is-challenging-China-with-Factory-Power-263345
     
  14. thesolar65

    thesolar65 2nd Lieutant FULL MEMBER

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    I am afraid there is a silent second phase of demonetization is going on. Nowhere it is said, but I had a discussion with my father and BIL today and from the discussion and from the following points we reached the conclusion.

    1. 2000 rupees notes have stopped coming from ATMs. That's for sure and as one Bank (ICICI) employee told me that Govt. has stopped printing of further 2000 rupee notes.
    2. As you can experience, that Banks are taking 2000 rupees notes but when one present a cheque for taking out cash, they are giving only 500 denominations.
    3. where are all the money going?
    4. Govt. (RBI) know how many pieces 2000 rupees were printed.
    5. Now when there will be no 2000 rupees in any Bank and the flow of 2000 rupee stops coming, then we may have another PM's speech at 8PM.........."Mitron....."

    @lca-fan @ranjeet @Levina @sangos @Sancho @Abingdonboy @Grevion @GSLV Mk III @Nilgiri @Ankit Kumar 001 and others
     
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  15. Grevion

    Grevion Think Tank TROLL ELITE MEMBER

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    I can't say how much of that will come true but if that indeed happens then that will definitely break the backbone of black money in the economy. The govt will take back 2000 rupee notes sometime in the future, just don't believe it will happen this early.
     
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