Dismiss Notice
Welcome to IDF- Indian Defence Forum , register for free to join this friendly community of defence enthusiastic from around the world. Make your opinion heard and appreciated.

Economy News

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

  1. Butter Chicken

    Butter Chicken Captain FULL MEMBER

    Joined:
    Oct 31, 2016
    Messages:
    1,007
    Likes Received:
    1,564
    Country Flag:
    India
    Trade war looming between India-China: Chinese state media

    BEIJING: A trade war seems to be looming between India and China after New Delhi imposed anti-dumping duties on 93 Chinese products amidst a military standoff in Doklam area, two state media reports here said today.

    An article in The Global Times, part of the ruling Communist Party's publication group, urged Chinese firms to "reconsider the risks" of investing in India and warned New Delhi to be "prepared for the possible consequences for its ill-considered action."

    Read more at:
    http://economictimes.indiatimes.com/articleshow/60056033.cms
     
    Wolfpack and Agent_47 like this.
  2. Paliwal Warrior

    Paliwal Warrior Lt. Colonel ELITE MEMBER

    Joined:
    Aug 4, 2013
    Messages:
    6,182
    Likes Received:
    902
    Stop cotton exports to china

    Indian or specifically gujarat's bt6 hybrid cotton. Is required for blending with other grades due to it's strength & length
     
  3. Butter Chicken

    Butter Chicken Captain FULL MEMBER

    Joined:
    Oct 31, 2016
    Messages:
    1,007
    Likes Received:
    1,564
    Country Flag:
    India
    Sales of Oppo, Vivo drop 30% in July

    KOLKATA: Chinese smartphone brands Oppo and Vivo, which together captured 22% of India’s smartphone market in just about a year, reported sales fall for the first time in July even as some online-only brands such as Xiaomi entered the offline retail space.
    Sales of Oppo and Vivo declined 30% in July and they continue to remain down this month, according to four leading cellphone retail chains and several neighbourhood retailers who felt this could be a precursor to a churn in the market.
    Their fall came even as the Indian smartphone market grew by around 8% in July as per initial estimates.
    Panic stricken, the Chinese owners of Oppo and Vivo have sent Chinese expats into the market along with Indian executives to talk to distributors in every state to take stock of the situation, three senior industry executives said.
    Emails sent to Oppo and Vivo did not elicit any response till Monday press time.

    Trade executives attributed the sudden reversal of fortune for Oppo and Vivo, which focused on brick-and-mortar trade along with aggressive marketing spends, to offline foray of online-focused brands led by Xiaomi, the country’s second largest smartphone brand after Samsung.

    http://economictimes.indiatimes.com/tech/hardware/sales-of-oppo-vivo-drop-30-in-july/articleshow/60064944.cms

    ===============================================================

    India biggest production hub: Honda

    Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI), the Indian subsidiary of Japanese automotive major Honda, on Wednesday said India had become the company’s biggest production hub for its two-wheelers worldwide with an annual production capacity of 64 lakh units from its four plants. Honda also inaugurated its fourth assembly line at its third two-wheeler plant at Narsapura, near Bengaluru.

    According to the company, the fourth line has an annual capacity of 6 lakh units making the Karnataka plant as Honda’s biggest manufacturing plant worldwide with 24 lakhs units annual production capacity.

    Presently, HMSI has four manufacturing plants in India including Vithalpur in Gujarat and Narsapura in Karnataka.

    “Honda’s two-wheeler business spans more than 120 countries worldwide and India is leading the demand. In 2016-17, India alone contributed 28% to Honda’s global two-wheeler sales and became the number one contributor to Honda’s two-wheeler business,” stated Shinji Aoyama, Chief Officer, Regional Operations (Asia & Oceania), Honda Motor Company in a press release.

    According to HMSI in the first quarter of FY18 Honda alone contributed 68% to the industry’s new volumes resulting in 3% market share gain to ever highest of 30%.

    The company commissioned its first line of the manufacturing unit in 2013 at Narsapura has so far invested about ₹ 2,600 crore and employs about 7,000 people.

    Apart from the direct investments Honda has created an ecosystem of 26 new suppliers in the State and have created 15,000 additional employment opportunities at their plants.

    “In the long-term, Honda two-wheelers India’s steady and strategic investments will power our dreams to make India the Export hub worldwide,” said Minoru Kato – president & CEO, Honda Motorcycle & Scooter India Pvt. Ltd.

    http://www.thehindu.com/business/Economy/india-biggest-production-hub-honda/article19409974.ece
     
    Nilgiri and Blackjay like this.
  4. Agent_47

    Agent_47 Admin - Blog Staff Member MODERATOR

    Joined:
    Aug 3, 2011
    Messages:
    2,926
    Likes Received:
    5,789
    Country Flag:
    India
    That sinking feeling


    In contrast to its pronouncements, the government’s own data suggest the economy is in a deep hole


    Prime Minister Narendra Modi, in his Independence Day address, spoke triumphantly about how demonetisation drove ₹3 lakh crore of unaccounted money into the banking system. The Reserve Bank of India (RBI) is still counting old notes, and unaccounted money cases are ongoing. Thus, this number is at best a guesstimate, and cannot be taken seriously.

    Dipping indices

    For the facts, turn to the mid-year Economic Survey II, tabled in Parliament deliberately on the last day of the monsoon session, ensuring no discussion. The Survey states that GDP growth will miss the targeted 6.75% to 7.5%. This is a massive understatement. Examine this quote from the Survey: “A number of indicators — GDP, core GVA (GVA excluding agriculture and government), the Index of Industrial Production (IIP), credit, investment and capacity utilisation — point to a deceleration in real activity since the first quarter of 2016-17, and a further deceleration since the third quarter.” The Survey thus confirms that demonetisation ambushed a slowing economy. Consequently, core GVA, i.e. private business activity, dropped steeply from 11% in March 2016 to 4% in March 2017.

    The Survey shows how demonetisation devastated the informal sector, using two-wheeler sales as a proxy indicator. These dropped steeply for two quarters after demonetisation. Construction, which absorbs migrant labour, was also badly hit. The Survey thus supports the Opposition’s argument that Finance Minister Arun Jaitley’s “record” allocation for MGNREGS merely reflects displaced migrant workers returning to villages and exercising their right to social insurance.

    Demonetisation badly affected farmers’ incomes resulting in a loss of demand, lowering food prices. Consequently, inflation has hit lows below the RBI’s targeted band. Low inflation levels come at a human cost — farmers and those in the informal economy are losing their limited purchasing power.

    Additionally, hasty implementation of the Goods and Services Tax (GST) has paralysed the informal manufacturing sector which lives on the edge, often saddled with debt. Protests in the textile hub of Surat reflect how GST is affecting medium, small and micro-scale enterprises. Formalisation of the economy should not shut down businesses and extinguish livelihoods. Similarly, leather, another labour-intensive sector, is in trouble due to restrictions on cattle slaughter.

    Overall, there is concern that the economy is in a deep hole, the opposite of what the government would have us believe. It has entered the “Modi Slump”. Banks are not lending. In the year ending March 2017, credit growth plunged to 5.1%, lowest in 60 years. The private sector is not borrowing and the manufacturing sector is operating at a historically low capacity utilisation of 70%. The latest IIP shows a contraction of 0.1% in June 2017.

    Neither credit nor investment will increase until the government addresses the “twin balance sheets” problem. Fixing these should have been top priority. Sadly, the Modi government’s early focus was on undoing the 2013 land acquisition law instead of addressing non-performing assets (NPAs). Bank lending is the lifeblood of the economy but government inaction has brought investments to a halt. In March 2014, NPAs were ₹1,73,800 crore. Today they are about ₹7,79,163 crore. Instead the government talks up foreign investment (only 2-3% of GDP) or aggressively lobbies the RBI to cut interest rates, which is unlikely to achieve much.

    As State governments find their fiscal space narrowing, private investment falters, and demand slows, we are entering a deflationary environment. Still there are fiscal policy measures that the Union government can deploy. It can belatedly share the benefits of low oil prices by cutting excise duties on petroleum to give people and businesses more spending power, boosting demand.

    Destroying, not creating

    On the most important indicator — jobs — we are seeing job destruction! The Centre for Monitoring Indian Economy reports that 1.5 million jobs were lost during January-April 2017. Ignoring his own promise of creating two crore jobs a year, Mr. Modi exhorted jobseekers to become job creators. But international experience, for example in developed OECD (Organisation for Economic Co-operation and Development) countries, shows self-employment is only about 15% of total employment. Most Indians are self-employed out of necessity.

    Mr. Modi extolled the job-creating impact of the MUDRA loan scheme. In contrast, MUDRA’s CEO is on record saying that it cannot be verified that the agency has created large numbers of jobs. Another misguided Union minister recently gloated about “job creation” under MGNREGS — not realising that it is a social protection scheme that people turn to when they have no alternative employment and not exactly a reason for cheer.

    Overall, the real state of India’s economy is deeply worrying. The latest RBI surveys of consumer confidence, industrial outlook, and professional forecasters point to pessimism on all fronts except inflation management. Mr. Modi spoke of how a train slows down as it changes tracks. Unfortunately, Economic Survey II’s numbers suggest that the economy has actually been derailed. The sooner the government understands this, the better.

    http://www.thehindu.com/opinion/op-ed/that-sinking-feeling/article19511488.ece

    @Levina @Abingdonboy @nair @MilSpec @Gessler @Robinhood Pandey @randomradio @vstol jockey @Hellfire @Nilgiri @GSLV Mk III @kaku1 @zebra7 @Marqueur @PARIKRAMA
     
    nair, Angel Eyes, Blackjay and 2 others like this.
  5. Nilgiri

    Nilgiri Lieutenant GEO STRATEGIC ANALYST

    Joined:
    Oct 16, 2016
    Messages:
    632
    Likes Received:
    1,590
    Country Flag:
    India
    Authors are pretty rubbish. Why are we comparing OECD patterns of self-employment to a country that has less than 10 times, sometimes 20 times less production per capita?

    Then they mention MUDRA in the same breath (a policy to help the very employment that mostly escapes previous statistical collection)? smh....wait for the actual comprehensive jobs data to come next year sillies....you know.... one that doesnt just sample at 10+ employee units when the median is around 2.

    Yes NPA resolution could have been managed a lot earlier and a lot better (its a major criticism I have for this govt on purely economic terms - possibly the only one)....but stabilisation of that could not have been done in this time period anyway hypothetically (and politically quite a hot potato to get involved in compared to other low hanging fruit). 1 full term is needed at least to counter 2 terms of absolute atrocious ineptitude with corruption poured on top....and could very well need 2. People already forgotten or are deliberately ignoring the criminal stasis and reversals of 10 god damn years before that created this situation - losing at least 2 trillion dollars of nominal realised production per year now. We are supposed to somehow jump the gun and forget that demonetisation effects gets ramped over several quarters...but its massive tax extraction increase only starts (spending wise) really from next fiscal year (and Modi very well may have planned it this way)? You understand how budgets and fiscal policy of this reform works? I really don't think so.

    Either you believe the govt will do a better job with this money than the crooks would do....or you don't. Oh guess what that NPA resolution is very much going to be tied to this increase revenue from demonetisation......issue is completely ignored by the authors too....who prefer to cherry-pick and make strawmen arguments. At least they didn't create the good ole lutyen trinity by indulging in ad-hominem too.

    Complete factually wrong statements are passed of as grounded reality too "we are entering deflationary environment".....uhm latest inflation indices anyone? Literally busted on that single statement alone, or environment of a few months = current and future now? This article should have been published about 3 months ago, it would have at least been more relevant....oh right that old data cycle lag that affects this now, would have affected them then too. Op-eds just can't win when a govt isn't in complete paralysis.

    @vstol jockey
     
    Abingdonboy, Pundrick and randomradio like this.
  6. Pundrick

    Pundrick Lieutenant FULL MEMBER

    Joined:
    Oct 31, 2016
    Messages:
    502
    Likes Received:
    919
    Country Flag:
    India
    Som Thomas, Nilgiri and Schwifty like this.
  7. Pundrick

    Pundrick Lieutenant FULL MEMBER

    Joined:
    Oct 31, 2016
    Messages:
    502
    Likes Received:
    919
    Country Flag:
    India
    Most of the authors in the Hindu are critiques of govt steps, which is always welcome but they never go for the holistic approach, may be space constraint in the editorials ? As far as my analysis is concerned the NPA problem definitely got some breadth from the demonetization at least the PSU banks did get some 10-15k crore through MSS scheme from RBI, inaddition to the recapitalization via Indradanush, nobody has mentioned this thing in their articles yet.

    As far as the data regarding unemployment is concerned, it is purely fake, as demonetization only affected unorganized sector and we don't have mush data about it, I don't from where does these people get data regarding unemployment ? The organized sector was mostly unaffected as the November 8th was post-Diwali period, which is never ideal for any business, especially two wheelers.

    Yes, the positives should have been mentioned e.g. Increase Tax base, Tax collections in local admin bodies and govt, and these are long term changes, will improve fiscal health of the govt. Plus most importantly the percolation/devolution of money in the Jandhan accounts is a positive change which should have been mentioned in the article.
     
    Nilgiri likes this.
  8. Agent_47

    Agent_47 Admin - Blog Staff Member MODERATOR

    Joined:
    Aug 3, 2011
    Messages:
    2,926
    Likes Received:
    5,789
    Country Flag:
    India
    GST effect: India Inc profits dip by nearly 16%; net sales slow down to 8.7%

    India Inc profits dipped by 15.7 per cent to Rs 87,475 crore in the first quarter of the current fiscal, largely owing to destocking of goods by companies before execution of GST regime from July 1, said a report today.

    According to an analysis of 2,108 companies by credit rating agency Care Ratings, the corporate net profits stood at about Rs 1.04 lakh crore in April-June period of 2016-17.

    Besides, net sales of companies slowed down to 8.7 per cent in the three months ended June 2017, after registering a growth of 9.5 per cent in the same period year-ago.

    "During the first quarter of 2017-18, all companies faced the heat of the uncertainties revolving around the implementation of goods and services tax (GST) by the government as most companies were destocking goods before July 1 and operations were impacted quite markedly," Care Ratings said.

    As many as seven industries reported net loss, while 33 segments reported lower growth in net profit on year-on- year basis during the quarter ended June 2017.

    The maximum drop was seen in consumer goods, automobiles and related segments, construction & real estate, finance, refineries, paper & paper products, pesticides & agrochemicals sectors.

    Profitability of services sector like hospitality and retailing were also impacted.

    "Most of the industries in the first quarter that have posted lower growth numbers were affected by the destocking goods before implementation of GST from July 1, 2017 by the government," the report said.

    In terms of net sales, 40 industries saw positive growth in sales in the first quarter of 2017-18. Some of the leading industries include sugar, electronics, passenger cars and tractors, capital goods, metals, NBFCs, hotels, resorts and restaurants, mining, refineries, plastic products, industrial gases and fuels.

    However, nine industries witnessed negative growth in net sales in the period under review with significant declines witnessed in pharmaceuticals and drugs, auto trucks/LCVs, ferrous metals, telecom service providers.

    As per the report, industries related to households where demand is inelastic remained largely stable with minimal slowdown. However, pharmaceuticals and drugs industry saw a sharp dip on account of lower exports.

    "Consumer industries like textiles and durables which get extended to auto segment except tractors reported an improvement as players were destocking inventories before implementation of GST which led to higher sales," Care noted.

    In the non-discretionary consumer goods consumer foods, household and personal goods segment as well as drugs and pharmaceuticals were affected, it added.

    http://www.dnaindia.com/business/re...arly-16-net-sales-slow-down-to-87-2537399/amp
     
    Schwifty, Pundrick and Blackjay like this.
  9. Som Thomas

    Som Thomas 2nd Lieutant FULL MEMBER

    Joined:
    Nov 16, 2016
    Messages:
    164
    Likes Received:
    296
    Country Flag:
    India
    Record Reserves Turn Costly Cash Pile for India Central Bank
    More stories by Subhadip SircarAugust 22, 2017, 5:00 PM EDT
    As India’s foreign-exchange reserves march toward the unprecedented $400 billion mark, its central bank faces a costly conundrum.

    To keep the rupee stable and exports competitive, it is having to mop up inflows that’s adding cash to the local banking system. Problem is, banks are flush with money following Prime Minister Narendra Modi’s demonetization program last year, leaving them already struggling to pay interest on the deposits in an environment where loans aren’t picking up.

    The resulting need to absorb both dollar- and rupee-liquidity is stretching the Reserve Bank of India’s range of tools and complicating policy. Costs to mop up these inflows have eroded the RBI’s earnings, halving its annual dividend to the government.

    "The RBI would be paying more on its sterilization bills than it gets on its reserve assets, so it would cut into its profits," said Brad W. Setser, senior fellow at New York-based thinktank Council on Foreign Relations. “Selling sterilization paper in a country with a relatively high nominal interest rate like India is costly."

    [​IMG]
    Governor Urjit Patel aims to revert to neutral liquidity in the coming months from the current surplus. Lenders parked an average 2.9 trillion rupees ($45 billion) of excess cash with the central bank each day this month compared with 259 billion rupees the same time last year. This peaked at 5.5 trillion in March.

    The surge in liquidity has pushed the RBI to resume open-market bond sales as well as auctions of longer duration repos besides imposing costs on the government for special instruments such as cash management bills and market stabilization scheme bonds.

    Meanwhile foreign investors have poured $18.5 billion into Indian equities and bonds in the year through June, during which period the RBI has added $23.4 billion to its reserves. Its forward dollar book has also increased to a net long position of $17.1 billion end-June from a net short $7.4 billion a year ago.

    “My guess is reserves over 20 percent of GDP would start to raise questions about cost - but that is just a guess,” said Setser. India’s reserves have ranged between 15 and 20 percent of GDP since 2008 global crisis -- a level that’s neither too low to create vulnerability or too high indicating excess intervention, he said.

    [​IMG]
    Consistent buildup in the forward book may have cost the RBI some 70 billion rupees, while total liquidity-absorption costs due to the demonetization deluge from November to June were 100 billion rupees, according to calculations by Kotak Mahindra Bank Ltd. The RBI paid another 50 billion rupees to 70 billion rupees to print banknotes, the bank estimates. A weakening dollar would also have led to losses due to the foreign-currency cash pile, which has traditionally been dominated by the greenback. The Bloomberg Dollar Index has fallen 8.5 percent this year.

    After all these expenses, the RBI transferred 306.6 billion rupees as annual dividend to the government, compared with 749 billion rupees budgeted to come from the RBI and financial institutions. More clarity will emerge with the RBI’s annual report typically published in the final week of August.

    "This disturbs the fiscal math for the year through March 2018," said Madhavi Arora, an economist at Kotak Mahindra Bank. Assuming everything else stays constant, she estimates the budget deficit may come in at 3.4 percent of gross domestic product rather than the government’s goal of 3.2 percent.

    [​IMG]
    Apart from the high costs, there’s another dimension to the surge in liquidity. The RBI could face a shortage of bonds it places as collateral with its creditors. It is said to be preparing a fresh proposal to the government for creation of a window -- the so-called standing deposit facility -- which doesn’t require any collateral.

    "As the excess liquidity challenge looks set to persist, the RBI will need more tools to manage this, such as the standing deposit facility," economists at Morgan Stanley, including Derrick Kam, wrote in an Aug. 16 note. He predicts that at the current rate of accretion, foreign-exchange reserves will hit $400 billion by Sept. 8 from $393 billion this month.

    https://www.bloomberg.com/news/arti...ome-costly-cash-pile-for-india-s-central-bank

    All I saw was the last sentence of the last paragraph:reserve will hit $400 billion by sept 8
     
    randomradio and Nilgiri like this.
  10. Butter Chicken

    Butter Chicken Captain FULL MEMBER

    Joined:
    Oct 31, 2016
    Messages:
    1,007
    Likes Received:
    1,564
    Country Flag:
    India
    Oppo, Vivo send Chinese expats home on low sales, high hostility

    More than 400 Chinese expats working for Oppo and VivoBSE 0.38 % are headed back home after sharp falls in July and August smartphone sales, with anti-Beijing sentiment on the rise in some of India’s large consumer markets.

    The drop in sales prompted the Chinese parent companies to reshuffle the local management and bring in new faces who would help counter the anti-China wave in certain consumer markets since the mid-June Dokalam standoff. Buyer resistance in some parts of northern India, Uttar Pradesh, Chhattisgarh and Odisha has prompted the parent companies to restrict front-office roles for Chinese expats in the distribution establishments in these markets. In Maharashtra and West Bengal, too, some distribution setups have seen similar exits.

    Vivek Zhang, the high-profile Chinese expat who negotiated and signed the Indian Premier League’s title sponsorship deal for Vivo as its chief marketing officer, also returned home earlier this month.

    Read more at:
    http://economictimes.indiatimes.com/articleshow/60250076.cms
     
    Som Thomas likes this.
  11. Golden_Rule

    Golden_Rule Lieutenant FULL MEMBER

    Joined:
    May 1, 2013
    Messages:
    722
    Likes Received:
    694
    When did Vivek Singh turn to Vivek Zhang? :blink::blink:
     
  12. Som Thomas

    Som Thomas 2nd Lieutant FULL MEMBER

    Joined:
    Nov 16, 2016
    Messages:
    164
    Likes Received:
    296
    Country Flag:
    India
    GST collections hit Rs 92,283 crore in July: Arun Jaitley
    NEW DELHI: India's maiden GST revenue mop-up got off to a bumper start, with Finance Minister Arun Jaitley saying that taxes worth Rs 92,283 crore were collected in July from just 64.42 per cent of the total taxpayer base.

    Tax collections for July, the first month when a unified Goods and Services Tax (GST) was implemented across the country in place of more than a dozen central and state levies like excise duty, service tax and VAT, are likely to further go up when all the tax payers file returns.

    The collections so far are in excess of the finance ministry's internal estimate of Rs 91,000 crore.

    So far, 38.38 lakh taxpayers accounting for 64.42 per cent of the total businesses, who had registered in July, filed returns. As per registration, 59.57 lakh businesses should file return for July.

    "The 64.42 per cent taxpayers have paid Rs 92,283 crore in taxes for July," Jaitley told reporters here.

    Of this, as much as Rs 14,894 crore has come in from the Central GST (CGST), Rs 22,722 crore from State GST (SGST), Rs 47,469 crore from Integrated GST (IGST) and Rs 7,198 crore from compensation cess levied on demerit and luxury goods.

    The minister said that if budget estimates are extrapolated to arrive at a monthly collection number, the Centre should have got Rs 48,000 crore and all states put together another Rs 43,000 crore.

    The deadline for filing first monthly return and payment of taxes under the GST ended on August 25. However, businesses that availed of transitional credit were allowed to file returns till August 28 after paying taxes on self-assessment basis by August 25.

    Jaitley said that late payment is allowed on payment of a nominal Rs 100 per day on Central GST and an equivalent amount on State-GST.

    As per the tax sharing formula, the Centre will compensate states for any revenue loss calculated on a base year of 2015-16 and assumed revenue growth of 14 per cent.

    "In sum total we seem to be comfortable, but we will have to break up the figures finally to see if any specific state has not had that 14 per cent in which event, out of this compensation cess that particular state will have to be compensated. At least the red line seems to have been crossed," he said.

    In July of last year, Rs 31,782 crore of excise duty was collected and Rs 19,600 crore of service tax. There is no estimate for the combined sales tax or VAT collection by states.

    Dissecting the July GST collections, Revenue Secretary Hasmukh Adhia explained that the Rs 47,469 crore IGST, which also includes Rs 20,964 crore on account of imports, would be apportioned between the Centre and states based where the taxes were due.

    Adhia also said that the figure for SGST collection was higher than CGST because many businesses claimed credit for IGST paid while paying CGST. Hence, net payment of SGST was more.

    With regard to collection impacting the fiscal deficit target, he said "it is too early to comment".

    Explaining the reason, he said now that the internal estimate has been breached in the first month of GST rollout, it means that many businesses that were otherwise not paying taxes were coming into the net.

    "You will have to wait for few more months to study the pattern... A more efficient taxation system checks evasion, brings in non-filers into the system; (now it is) more difficult to evade (taxes) -- that seems to be the initial first reaction," Jaitley said.

    He said the total GST collection is Rs 92,283 crore and the figure will increase with more compliance after late comers file returns.

    With regard to registration, Jaitley said 72.33 lakh businesses have migrated to GST Network. Of this, totally migrated is 58.53 lakh and those who have not completed all the registration formality is 13.80 lakh.

    Also the number of new registrations are 18.83 lakh.

    http://m.timesofindia.com/business/...rst-filing-under-gst/articleshow/60278603.cms

    Looks like good times ahead. :india:
     
    Schwifty and Nilgiri like this.
  13. Som Thomas

    Som Thomas 2nd Lieutant FULL MEMBER

    Joined:
    Nov 16, 2016
    Messages:
    164
    Likes Received:
    296
    Country Flag:
    India
    China wants India to go slow on Asia-Africa corridor

    Saibal Dasgupta| TNN | Updated: Sep 3, 2017, 02:21 IST

    BEIJING: China has initiated a move to persuade India to go slow on the Asia Africa Growth Corridor, which New Delhi has formulated along with Japan. It is seen by many as an alternative Silk Road to tap the African market. Beijing is now trying to persuade India and South Africa to merge the project with the BRICS platform and keep its rival, Japan, out of it. Once merged into BRICS, India's influence on Africa through the project will also get diluted.The project reflects one of the several differences that participating countries including India, Russia and South Africa has with the host of the upcoming BRICS summit at the Chinese city of Xiamen on Sunday.This includes sharp differences between Russia and China over energy mix and other issues in the China-Russia gap pipeline, which has been delayed due to this reason.

    The Asia Africa Growth Corridor project was planned by India and Japan with the active support of the African Development Bank and several African countries including South Africa who wish to reduce their dependence on Beijing, observers said. The idea is to "create a 'free and open Indo-Pacific region' by rediscovering ancient sea-routes and creating new sea corridors" by integrating the economies of South, Southeast, and East Asia with Oceania and Africa.

    China sees the move as a source of major competition that will reduce its economic and political influence over the African continent. It is now trying to persuade both India and African countries to merge the initiative with the BRICS agenda so it can have better control over it. "BRICS countries should consider how to respond to the opportunities and challenges presented by their enthusiasm for Africa and capitalize on this to increase cooperation," the state run Global Times said in a commentary.
    China is also pushing the New Development Bank, the Shanghai based financial institution, which has been created by BRICS countries to expand its lending to different African countries even though they may not be members of the organization. Beijing invited two African countries, Egypt and Guinea, as observers at the Xiamen summit besides three other countries. One of the invitees, Thailand, has been given a place at the table to return a favor Bangkok did to Beijing when it helped negotiate on China's behalf with the Association of South East Asian Nations (ASEAN) on the vexed issue of the South China Sea.

    http://timesofindia.indiatimes.com/...afted-by-india-japan/articleshow/60341683.cms

    Japan ups ante to re-exert influence
    http://www.thestar.com.my/news/nati...un-is-pushing-companies-with-high-savings-to/
     
    Blackjay likes this.
  14. Angel Eyes

    Angel Eyes 2nd Lieutant FULL MEMBER

    Joined:
    Jul 11, 2017
    Messages:
    181
    Likes Received:
    182
    Country Flag:
    India
    Who cares what china wants....
     
  15. Som Thomas

    Som Thomas 2nd Lieutant FULL MEMBER

    Joined:
    Nov 16, 2016
    Messages:
    164
    Likes Received:
    296
    Country Flag:
    India
    India has changed for the better
    Raghu Dayal
    Congress stalwarts must acknowledge that India under Modi has changed. Instead of finding faults with the ruling Government, they must define a constructive agenda of action for the country

    Senior Congress leader Kapil Sibal’s article, ‘My India Has Changed’, carried in a national daily on August 15, signifies a journey man’s effort borne out of party duty rather than conviction. The familiar ranting against all initiatives of the Narendra Modi Government has an empty sound to it — a hollow ring. With selective amnesia, he chose to overlook the atrocities and pogroms committed during the long Congress rule as well as the abuse of investigating agencies. He found only “communal frenzy… expressed with violence” in the National Democratic Alliance’s (NDA) reign, a mere hyperbole in its myriad projects and schemes or foreign policy initiatives. One expects the venerable leader will sense a tinge of conscience, not to ignore the context and perspective of what Prime Minister Narendra Modi inherited when he assumed office in 2014.

    Let us see how the United Progressive Alliance (UPA)-I Government rode on the surge generated by the NDA-I. While the former’s economic managers celebrated the gross domestic product (GDP) (at 2004-05 prices) decelerated from 9.5 per cent in 2010-11, to 6.2 per cent in 2011-12, to 5.0 per cent in 2012-13 — to reach a decadal low. Growth of gross fixed capital formation plunged from 15 per cent in 2010-11 to 4.4 per cent in 2011-12, and further to 1.7 per cent in 2012-13, entrepreneurs got increasingly miffed by pervasive environment of sleaze, policy instability, lack of will to govern and deliver.

    Wouldn’t Sibal like to recall how the UPA indulged in fiscal profligacy, evident in its widening current account deficit, heavy public borrowing, persistent inflation, and weak currency? On the eve of Narendra Modi’s coronation in May 2014, direct tax accruals were tepid, the sensex and nifty bearish — the biggest stocks eight per cent off their six-month peak and mid-caps down over seven per cent. As the National Sample Survey Office reported, the number of jobs created during the eight-year period from 2004-05 to 2011-12 aggregated just 23million vis-à-vis 50 million in the period 1999-2000 to 2004-05. The morass remained confounded with scams and scandals, a litany of 2G, commonwealth games, coalgate etc.

    A large number of people in India and outside lamented how the country shot itself in the foot. In 2004, the US Central Intelligence Agency agreed with The Wall Street Journal that, by 2020, India would be an economic superpower. The Timemagazine proclaimed that “the world’s biggest democracy is the next great economic superpower”. Alas, all this promise was squandered away. Nation’s sullen mood was aptly captured by The Economist: When “a caged tiger”, in fact, the elephant had learnt to fly, there followed years of drugged and fitful sleep; blight descended, with angst against effete, dysfunctional UPA Government, its lackadaisical governance, corrupt and venal. The nation needed strong, creative leadership in South Block. Modi changed the mood. Markets swung from gloom to boom.

    The economy, bruised and battered in the ICU, but the Modi Government’s determination and dexterity helped it gain strength. Recovery, though fast and robust, would take time for it to sprint in terms of its potential. Unburdened by any dynastic or filial baggage, unscathed by sleaze or scandal among his colleagues, Modi infused hope and confidence in people’s hearts and minds. Within few months, world community started viewing India again as an economic opportunity, an important investment destination.

    In terms of new GDP series, India’s growth declined to 5.6 per cent in 2012-13, 6.6 per cent in 2013-14 vs 8.3 per cent during the preceding nine years commencing in 2003-04. Under Modi’s watch, economy rose to 7.2 per cent in 2014-15, 7.9 per cent in 2015-16, 7.1 per cent during 2016-17. Inflation has fallen from eight per cent during January-April 2014 to well below four per cent now; fiscal deficit dropped from 4.5 per cent in 2013-14 to 3.5 per cent in 2016-17; rupee steadily strengthened; country’s market capitalisation currently aggregates two trillion dollars; foreign direct investment flows during last three years amounted to $156 billion; a record $56 billion in 2016-17 alone. As Make in India gains traction, local manufacturing of high-tech electronics moves apace. Indigenous manufacturing of myriad defence equipments is now poised to gather steam. Strangely, blinkered Congress spokespersons see only “signs of deep economic distress”!

    Modi sarkar has been lending unprecedented impetus to infrastructure projects, especially those which remained stuck for long. A flurry of schemes and projects such as Swachh Bharat mission, Smart Cities, Digital India, Skill India, Pradhan Mantri Awas Yojana have been unfolded with bewildering alacrity. The Jan Dhan Yojana, launched in August 2014, has helped open 280million new bank accounts, mostly for the deprived. By Aadhaar seeding, welfare entitlements are provided by bank transfer. Under the Pradhan Mantri Ujjwala Yojana, around 20million below poverty line rural households receive liquefied petroleum gas. Technology-based e-Mandis and Fasal Bima Yojana aid farmers. Gram Jyoti Yojana aims at electrification of 18,452 villages by May 2018 and of 45million rural households by December 2018.

    Modi rendered the entrenched lobbying industry redundant; the Planning Commission yielded place to Niti Aayog; plan and non-plan distinction in budget disappeared; 92-year-old separate railway Budget merged with the Union Budget; Budget presentation advanced to facilitate timely disbursement of funds; two decade old Foreign Investment Promotion Board disbanded; some 1,170 redundant laws repealed.

    Among several legislative initiatives, the Insolvency and Bankruptcy code and Aadhaar Act, 2016 are expected to further Government’s social and economic agenda, as the much delayed Goods and Services Tax has been steered so diligently to fruition. Accusing the Government moving in haste and making “short-sighted compromises” for the GST, senior Congress stalwarts, in fact, seem to regret, why couldn’t they move with such exemplary deftness and flexibility, why didn’t they do it when they had the chance?

    Calling demonetisation “a carte blanche to the corrupt”, Sibal remains deliberately oblivious of the trail it has generated towards identifying the hoarders of ill-gotten money and addition of lakhs to the tax net. Post-50-day seismic churning of the economy in the wake of demonetisation, the amrit manthan, no doubt, generated some vish (poison) as it yielded amrit (nectar). The habitually argumentative buddhijivi kept pillorying Prime Minister, but the common men and women continued to repose faith in him. One would expect the critics among political parties to heed the recent verdicts of people’s own supreme court in a democracy.

    Modi is not unaware that an aspiring and impatient India voted for a rupture with the past, to sweep away the cobwebs of bureaucratic and political lethargy and unleash country’s creative energies. He has proverbial miles to traverse. A plethora of social, economic and political ills perpetrated over last 70 years would not easily go. There’s no magic wand. Rent seeking minds abound, so also myriad parasitic institutions and agencies. Also, an assortment of obscurantists with a medieval mind-set keep vitiating the environment. Prime Minister himself has called for a moratorium on all divisive acts and avowals. Here a lot still needs to be done. Speaking for their party that has governed India most of the time since Independence, the Congress leaders in particular, need to define and articulate a constructive agenda of action for the country to look ahead.

    (The writer is senior fellow, Asian Institute of Transport Development, and a commentator on social issues)

    http://www.dailypioneer.com/columnists/oped/india-has-changed-for-the-better.html
     
    randomradio, Angel Eyes and Nilgiri like this.

Share This Page