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Economy News

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

  1. Som Thomas

    Som Thomas 2nd Lieutant FULL MEMBER

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    ExxonMobil slashes LNG price to India in bad omen for producers
    MELBOURNE/NEW DELHI (Reuters) - India has won a price cut on a 20-year liquefied natural gas (LNG) deal with global giant ExxonMobil Corp (XOM.N) in a rare contract renegotiation, a bad sign for producers in a heavily oversupplied global market.

    In a trade-off for ExxonMobil, India’s Petronet LNG (PLNG.NS) will increase its volumes from the Gorgon LNG project in Australia by an extra 1 million tonnes a year to about 2.5 million tonnes a year, but at cheaper rates than initially agreed in 2009.

    Long-term contracts are rarely revised in the LNG market, and for a big producer to cave in shows how supply from new plants in Australia and the United States over the past two years has transformed the market, analysts said.

    “This trend is overall a negative for sellers, as they are forced to provide more flexibility to buyers’ needs to maintain their markets,” said Saul Kavonic, an analyst with energy consultants Wood Mackenzie.

    India has been aggressive in seeking cheaper deals, also renegotiating a contract with Qatar in 2015, but the real pain for producers would come if major Asian buyers in Japan, Korea and China followed suit.

    “Happy to share good news that India has, yet again been able to address the long term price issue of LNG from Gorgon to suit Indian market,” India’s oil minister, Dharmendra Pradhan, said on Saturday on social media.

    Indian consumers would soon receive LNG at an “amicable price”, Pradhan said. India started receiving Gorgon supplies from January this year.

    Petronet said in a stock exchange announcement on Monday it had reached a “broad understanding of terms” with ExxonMobil, without giving further details.

    Citing market sources, RBC analyst Ben Wilson estimated ExxonMobil would receive 15 percent less revenue per unit on its sales to Petronet under the new deal.

    If ExxonMobil had not agreed to renegotiate, Petronet might have scrapped the agreement, leaving the major to pursue damages and resell the volumes on a weak spot market.

    “They’ve probably taken the lesser of two evils,” said Wilson, adding that it did not bode well for other LNG producers such as Australia’s Woodside Petroleum (WPL.AX) which has targeted India to diversify its heavy exposure to Japan and South Korea.

    In a major shift from previous contractual terms, Exxon has agreed to absorb shipping charges, two sources with knowledge of the matter told Reuters.

    The original LNG supplies would be priced at less than 14 percent of the Brent oil price, down from about 14.5 percent earlier, while the additional supplies would be priced about 12.5 percent of Brent, the sources said.

    ExxonMobil, which controls about a quarter of the 15.6 million tonnes a year Gorgon project, had no immediate comment.

    Analysts said the fact India had managed to force ExxonMobil to renegotiate was the latest proof that buyers have the upper hand in a market where LNG spot prices are well below oil-linked contract prices that were signed during the oil boom.

    “The risk of price renegotiations will become more acute over the next couple years as spot LNG prices remain depressed, even if oil linked prices rise,” Wood Mackenzie’s Kavonic said.

    “The elephant in the room will be how negotiations play out with traditional markets in Japan and Korea, and especially the Chinese national oil companies.”

    https://www.reuters.com/article/us-...india-in-bad-omen-for-producers-idUSKCN1BM0B9
     
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  2. Som Thomas

    Som Thomas 2nd Lieutant FULL MEMBER

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    After a tepid start, India’s first international stock exchange is getting into its stride
    Nupur Anand
    Being India’s first global stock exchange is an uphill task but it is grinding on.

    Barely months after its January 2017 launch, the Gandhinagar-based India International Exchange (India INX) is struggling with tepid turnover and poor broker registration.

    However, with a trade speed of only four microseconds (the world’s fastest) and trading of up to 22 hours a day, it is confident of succeeding in the long run.

    Slowly and steadily, things are changing, its managing director and CEO, V Balasubramaniam, confirmed. To begin with, it has expanded its suite of products since its launch. So, turnovers have improved. Looking to compete with international exchanges in Dubai, Singapore, Hong Kong, New York, and London, it’s trying to introduce game-changing products such as rupee-dollar contracts and masala bonds.

    Quartz spoke to India INX about its plans. Edited excerpts:

    The first few months were challenging in terms of low turnover. Have things improved now?

    We started with only seven products…By August (2017), we have about 180. As a result we have been able to expand our markets to include equity derivatives, commodity derivatives, currency derivatives, and cross-currency products. As a result, the offerings are more sophisticated. Recently, the market regulator also approved around 85 single stocks from Indian futures and options, so now we have 108 such stocks. Therefore, it has become easier for foreign investors to access Indian markets as they can trade in dollars here. One of the features of India INX is that you can’t trade in rupees, only dollars. So, for any foreign investor, it has now become as simple as wiring money and taking it back, as they don’t have to worry about currency conversion.

    Earlier brokers faced a lack of clarity on foreign investor participation and slow registrations. How’s that been dealt with?

    There were some procedural concerns, but that has been taken care of. As regulations have cleared up and (the number of) products are increasing, more brokers are also registering. When we began, we were hardly clocking $1-2 million turnover. But after product approvals began coming in, daily volumes have shot up to over $100 million (on May 05). Today, on an average, we are clocking a turnover of about $65 million (daily). By the end of the year we should look at a further 20%-30% rise.

    Are there any more specific products you may add?

    We want to introduce the rupee-dollar contracts. If it happens, it will be a big move. Two other international centres, Dubai in the west and Singapore in the east, witness a lot of interest in this product. Whenever there are volatile periods, for instance US elections or Brexit, we see their volumes shoot up. In Dubai alone, they trade about $1 billion of rupee-dollar contracts everyday. Today, even for products like the masala bond, Indian companies are going to international markets, which we can win back if we can introduce it in India.

    Why hasn’t the RBI allowed these yet?

    We don’t know the reasons, but we want a level playing field vis a vis other international centres. If India has to find its place in the financial world, we can’t be followers; we have to be price setters. We’ve been far too dependent on the foreign world.

    How confident are you of competing with other global financial centres?

    We know it is going to take a long time but we believe we can. For us at Indian INX, it is clear that the competition is not the domestic markets; it is the world’s top international exchanges, and we can get there in the long run.

    https://qz.com/1050804/after-a-tepi...al-stock-exchange-is-getting-into-its-stride/
     
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  3. Paliwal Warrior

    Paliwal Warrior Lt. Colonel ELITE MEMBER

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    Technology driven

    Removing Hunan interface

    Otp

    Digital signature

    Human interaction etc is not eliminated it is only shifted to different level
     
  4. Paliwal Warrior

    Paliwal Warrior Lt. Colonel ELITE MEMBER

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    Politics ?

    Jaitly introduced bearer bonds for political donations

    Which means you can purchase these bonds in cash - it will be bearer bonds

    So both the purchase & donor will remain anonymous and political party can claim clean / white donation
     
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  5. Som Thomas

    Som Thomas 2nd Lieutant FULL MEMBER

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    Work on bullet train project to start on September 14: Piyush Goyal
    Sep 11, 2017, 10.20 PM IST
    NEW DELHI: Prime Minister Narendra Modiand Japanese Prime Minister Shinzo Abewill on Thursday lay the foundation stone for India's first bullet train project, connecting Mumbai and Ahmedabad, in Ahmedabad, Railway Minister Piyush Goyal said on Monday

    "The commencement of work on the country's first High Speed Rail (Bullet train) project will begin on September 14 in Ahmedabad," Goyal told reporters here, adding that the bullet train technology would "revolutionise and transform the transport sector".

    "This will be a historical moment as India will get its first bullet train," he said.

    "This is an occasion to celebrate the advent of the most modern technology in India. It shall also benefit the farmers for transportation of agricultural produce in a fast mode," Goyal said.

    The Railway Minister said that the high-speed rail was envisioned by Modi to take Indian Railways towards "most modern technologies like developed countries".

    With the Indian Railways adopting most modern technologies, the bullet train was an endeavour to bring economic growth and prosperity in the country, he said.

    The 508-km Mumbai-Ahmedabad High Speed Rail Project will entail an estimated cost of Rs 1,10,000 crore.

    "Out of this Rs 1,10,000 crore, Japan is giving a loan of Rs 88,000 crore and the interest on this loan is minimal, i.e. 0.1 per cent," Goyal said.

    "This loan is to be repaid to Japan in 50 years. Loan repayment period of 50 years with 15 years grace."

    Of the 508-km stretch, 92 per cent of the route will be elevated, six per cent in tunnel and the rest two per cent will be on the ground.

    That is, 508 km stretch will have 468 km of elevated track, 27 km inside tunnel and the remaining 13 km on the ground.

    The high speed train will also pass through the country's biggest tunnel of 21 km, of which seven km will be under the sea.

    Sushant Mishra, Infra Advisor to the Indian Railways, told IANS that Japan was awarded the contract because there had been no accident on its bullet train networks.

    "They (Japan) are pioneers of bullet train technology, and their train has the highest punctuality rate," Mishra said.

    Japan was also ready to transfer the technology to India and sponsoring the project.

    He also said that the works for the terminal in Sabarmati would start from September 14 itself.

    "About 825 hectares of land would be acquired for the high speed rail," he said.

    On the Ahmedabad-Mumbai route, total 12 stations have been proposed that include Mumbai, Thane, Virar, Boisar, Vapi, Bilimora, Surat, Bharuch, Vadodara, Anand, Ahmedabad and Sabarmati.

    The distance of 508 km will be covered in two hours and seven minutes by the bullet train if it stops at four stations namely Ahmedabad, Vadodara, Surat and Mumbai.

    According to railway ministry officials, the operating speed of the bullet train will be 320 kilometers per hour and maximum speed will be 350 kilometers per hour.

    If the bullet train will stop at all 12 stations, then it will cover the distance in two hours and fifty-eight minutes.

    In a day, the high-speed train will make 70 Ahmedabad-Mumbai sorties.

    "A total of 24 high-speed trains will be imported from Japan and then rest of the rakes will be manufactured in India," Mishra said.

    Narendra Modi, Shinzo Abe to kick-start India's first bullet train project

    [​IMG]
    Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe will break ground on India's first bullet train project on September 14 in Gujarat, as the country seeks faster travel for millions.

    http://m.economictimes.com/industry...mber-14-piyush-goyal/articleshow/60467333.cms
     
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  6. Zer0reZ

    Zer0reZ 2nd Lieutant FULL MEMBER

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    India’s pulse economy and the problem of plenty

    A Crisil study report says that the income of farmers growing pulses fell by 16% in 2016-17. According to the report, if gram is excluded, margins have fallen by 30%. While the selling price of pulses fell, the cost of cultivation continued to rise.

    Sowing seeds of stagnancy

    The fall in farmers’ income is due to a record production of 22.95 million tonnes of pulses in 2016-17, up by 40% over the previous year. This may seem counterintuitive at first. However, this can be explained by the cobweb phenomenon. When there is a scarcity of a commodity, its prices increase dramatically. Farmers resort to boosting the production on the premise of the pre-existing demand and prices. This leads to a problem of plenty. An abundance of produce then leads to a crash in prices, dashing the hopes of farmers.
    The cobweb phenomenon is highly prevalent in agriculture in general and pulses in particular. Seen widely in the plummeting production of tur dal(pigeon pea) in Maharashtra last year, the cobweb model explains how a small economic shock can shift the market into a long-term disequilibrium position.

    Impact on consumption and production decision

    The consumption of pulses has also grown with falling prices, as the commodity is largely price elastic. India’s average import of pulses used to be 4 million tonnes and domestic production around 18 million tonnes. However, in 2016-17, with nearly 23 million tonnes and over 6 million tonnes of imports, India has built a huge surplus in the system. Despite the creation of around 2 million tonnes of buffer stock, the surplus is still high.
    During the past few months, the government fixed an import quota for tur, arhar/moong for the agricultural year 2017-18. However, the measure has come too late and has not helped domestic farmers. Government data as on September 1 shows that the area sown with pulses has decreased from 14.30 million hectares to 13.76 million hectares with farmers shifting plantation to cotton and sugarcane.

    Macroeconomic implications

    If such trends persist as planting picks up the pace with the progress of monsoon, India could witness a lower production of pulses and a spike in imports. In FY 2015-16, the country spent nearly $10 billion importing vegetable oils from Malaysia, Indonesia, Brazil and Argentina, and $2-$5 billion buying pulses from Austria, Canada and Myanmar.
    The entire cycle of shortages, price rises and higher imports has extreme macro economic implications such as a higher deficit, increased dependence on imports, and rising inflation. The looming plunge to a shortage of pulses and oilseeds will deal a major blow to the government’s push to become self-sufficient in these crops by the end of the decade.

    Exports: A viable option

    To ensure that pulses remain remunerative for the farmer and the country, exporting these goods is a viable option. Being the largest producer of pulses in the world, the government must diversify its exports instead of relying on imports.
    According to Crisil, the price of gram has remained above the minimum support price (MSP). It has also been a profitable crop in general within the pulses basket. Gram (chana) has a high share of 40-45% in production and over 60% in the export of pulses. The report notes, “Since there is no restriction on the export of gram, profitability remained higher for gram farmers as the international market was ready to absorb the supply in excess of the domestic demand”.

    Role of the government

    Nearly half of the cultivated land in India under small and marginal holdings of less than two hectares. It has become increasingly difficult for farmers to manage the longer duration and more demanding crops like cereals, pulses and oilseeds. Lack of safeguards against the cyclical nature of pulses hurts both consumers and producers. Lower income during periods of economic downturn and contraction adds to the woes of farmers.
    The government must initiate steps to smoothen prices through a mix of effective Minimum Support Price (MSP) dispensation, open trade policy, export promotion and well-functioning markets. The MSP must be set keeping the cost of production in mind. Otherwise, it will not benefit the needy farmers.
    Ultimately, the whole country survives on the food grains produced by farmers. Farm income can go up only when productivity rises due to an increase in output, without costs skyrocketing. The government can achieve this only through consistent steps to provide technological and infrastructural aid.


    Vietnam takes spice out of Indian pepper

    Indian black pepper prices continue to shrink with rising imports from Vietnam routed through Sri Lanka. Prices fell nearly 5 per cent in the last couple of weeks to touch Rs 456 per kg on Tuesday for the ungarbled variety, a steep decline of over Rs 250 per kg from a year ago.

    The October futures for delivery in National Commodity and Derivatives Exchange of India (NCDEX) ruled at Rs 454 per kg. Import from Sri Lanka carries a duty of 8 per cent under the SAARC agreement compared with 70 per cent from other countries. "Vietnam exported 3,000 tonnes in July to Sri Lanka. Another 2,000 tonnes were exported in August. Most of these have come to India," said Kishor Shamji, a major exporter.

    Imported pepper has more takers as they are cheaper. "Imported pepper, available at Rs 350 per kg, are sold at Rs 410 per kg by traders. It is sold at a at a higher rate in North India, although it's still lower than domestic prices," Shamji said.

    Vietnam has been in creasing its pepper output in the last few years. Its production this year as per unofficial calculations are in the range of 2-2.2 lakh tonne. Another 20,000 tonnes supplied from Cambodia to Vietnam for re-export further raises the output of the world's largest producer. Exporters said Vietnam has exported around 1.65 lakh tonnes till August.

    "Vietnam pepper price has remained range-bound between $4,200 and 4,800 per tonne for some time now. The buyers are not looking at buying consignments for long periods probably thinking that the prices may drop further," said Prakash Namboodiri, chairman of All India Spices Exporters Forum. Asian countries are the largest buyers of Vietnam pepper as Europe has banned it due to pesticide residue issues, he added.
     
  7. Som Thomas

    Som Thomas 2nd Lieutant FULL MEMBER

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    Delhi robotic engineer develops world’s cheapest pocket ventilator
    AIIMS doctor, who worked with the techie, says the machine is 450 times smaller than the conventional one and would cost between Rs 15,000 and Rs 20,000.
    By Anonna Dutt, Hindustan Times, New Delhi


    [​IMG]
    This machine is 450 times smaller than the conventional ventilators and can easily slip into your back pocket.

    The world’s cheapest and smallest ventilator, which looks like a clunky cellphone and can easily slip into your back pocket, has been developed by a young robotics engineer in Delhi in collaboration with a neurosurgeon at the All India Institute of Medical Sciences.

    “It is almost 450 times smaller than the conventional ventilators and can be moved around easily,” said the 25-year-old inventor Diwakar Vaish.

    He developed it with Dr Deepak Agrawal, professor of neuroscience at AIIMs, who have seen scores of such patients living in hospital because the family cannot afford to buy a portable ventilator, which costs about Rs 2 lakh.

    When the pocket ventilator hits the market after clinical trials and approval from the drug controller general of India, it will cost between Rs 15,000 and Rs 20,000, which is less than the Rs 5-15 lakh that a traditional ventilator would cost.

    The cheapest portable ventilator also costs between Rs 2 lakh and Rs 2.5 lakh.

    “There is an FDA-approved disposable ventilator that costs between Rs 10,000 and Rs 15,000, but it has a maximum life of four weeks. This will be a one-time investment and since it runs on room air, and not oxygen, the operational costs are close to zero,” said Dr Deepak Agrawal, professor of neurosurgery at All India Institute of Medical Sciences (AIIMS).
    “There is no requirement for oxygen cylinders, which cost between Rs 3,000 and Rs 4,000 a day,” said Dr Vaish.

    Controlled with an android app, the ventilator uses an artificial intelligence algorithm to adjust air supply to the normal breathing pattern of the patient.

    “It works by pushing the atmospheric air into the lungs of the patients who cannot breathe on their own. The disposable ventilators currently in use also push in air, but they do it at a fixed frequency that does not necessarily match the patient’s breathing pattern, which may cause low oxygen saturation. This device synchronises ventilator air support with the normal breathing pattern,” said Dr Agrawal.

    “We have successfully used it for a couple of hours on six fully paralysed patients at AIIMS who have been unable to return home for the want of affordable ventilators,” said Dr Agrawal.
    As a safety measure, the ventilators were attached to FDA-approved disposable ventilators during the trial. India faces a huge shortage of ventilator beds needed to support critically-ill patients who cannot breathe on their own. According to norms, at least 10% of all hospital should have ventilators, but even Delhi, which has the best health infrastructure in India, has 200 ventilators for over 10,000 beds.

    “The oxygen supplied to the patients through conventional ventilators is usually diluted to 40% concentration, air contains 20% oxygen. Nine in 10 of all patients, barring the ones with severe lung problems, can breathe in the normal atmospheric air because the problem is in their diaphragm, not lungs,” said Dr Agrawal.

    For the 10% who need more oxygen, the pocket ventilator can also be hooked to an oxygen-supply system.

    A sneak peek into the ventilator which is is all set to revolutionise healthcare
    A small battery operated pump pushes in the atmospheric air in synchronisation to the natural breathing rhythm. The sensor in the device gauges the air pressure in the lungs to decide whether to send in or pump out air.
    [​IMG]
    Copyright © HT Media Limited. All rights reserved.

    http://m.hindustantimes.com/science...-ventilator/story-1g1Gpawlq8XVvODpAsN0AO.html

    Good job guys :india:
     
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  8. Som Thomas

    Som Thomas 2nd Lieutant FULL MEMBER

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    Top cotton buyers flock to India as hurricanes hit US crop
    Sep 14, 2017, 07.32 PM IST
    MUMBAI: The world's top cotton buyers, all in Asia, are flocking to India to secure supplies after fierce storms in the United States, the biggest exporter of the fibre, affected the size and quality of the crop, dealers said.

    In the past week alone, India, the world's second-biggest cotton exporter, sealed deals to sell about a million bales to China, Taiwan, Vietnam, Pakistan, Bangladesh and Indonesia - key garment suppliers to brands such as H&M, Inditex-owned Zara and Wal-Mart Stores Inc.

    That compared with 300,000 bales in the two weeks before.

    Dealers expect contracts similar to last week in the next few months, which could help India's exports grow by a quarter in the 2017/18 season beginning October.

    "Indian cotton has great chances this year," said Chirag Patel, chief executive at Jaydeep Cotton Fibers Pvt Ltd, a leading exporter. Asian "buyers are switching to Indian cotton from the U.S."

    Hurricanes Harvey and Irma caused widespread damage to the crop in Texas and Georgia, major cotton producing states, with the effects more widespread in Texas, dealers said.

    "We definitely lost cotton in Texas. It wiped out 500,000-600,000 bales," said Peter Egli, risk manager at Plexus Cotton Ltd, a Chicago-based merchant, referring to the impact of Harvey in the top-producing U.S. state.

    In 2016, the United States exported 86 percent of its cotton, 69 percent of which went to Asia, according to the U.S. Department of Agriculture.

    Other cotton producers like Brazil and Australia could benefit from lower supplies from the United States, but may find it difficult to match the price offered by India, where a bumper harvest is likely to keep the rates lower.

    Traders in India, also the world's biggest cotton producer, signed their export deals at around 80 cents per lb on a cost and freight basis, nearly 2 cents lower than the supplies from the United States, dealers said.

    India could soon sell at lower prices.

    Farmers are likely to harvest a record 40 million bales of cotton in the 2017/18 season beginning Oct. 1, 2017, bringing domestic prices down and making exports even more competitive, Patel said.

    For the new 2017/18 season, farmers have planted 12.1 million hectares with cotton, up 19 percent from a year earlier, farm ministry data showed.

    India harvested 34.5 million bales of cotton in the 2016/17 season.

    Favourable crop conditions would help India sell 7.5 million bales of cotton on the world market in 2017/18 against 6 million bales in the previous year, said Nayan Mirani, partner at Khimji Visram & Sons, a leading cotton exporter.

    Some traders believe that India's exports could surpass 8 million bales if China, the world's biggest cotton consumer, steps up imports in 2017/18.

    Beijing, which began selling cotton from its reserves on March 6, had planned to stop the daily auctions at the end of August. But it extended the sales for an additional month after local prices rose amid tighter supply, indicating the need to replenish falling inventories.

    A Mumbai-based dealer with a global trading firm company said he had received a flurry of orders in the past few weeks, especially for December quarter shipments. He declined to be identified because he was not authorised to talk to media.

    Hobbled by the rising rupee and unattractive global prices, India was struggling to sign export deals until a few weeks ago. But a recent rally in global prices made overseas more sales competitive.

    Other than attractive prices, close proximity encouraged most Asian buyers to turn to India. While cargoes from the United States take about 50 days to reach Vietnam, Bangladesh and Pakistan, India can ship its cotton in two weeks.

    India's new season crop will be available to buyers from October, but the supplies from the United States will reach consumers only in January, said Mirani of Khimji Visram, a top exporter.

    Current market trends give cotton buyers a chance to look at alternative supplies, said Vu Duc Giang, chairman of Vietnam Textile and Apparel Association.

    But forecasts of higher global output will ease concerns over cotton supplies, Giang said.

    The U.S. Department of Agriculture this week said U.S. cotton output is seen at 21.76 million bales for 2017/18 compared with 20.55 million bales projected last month.

    http://m.economictimes.com/news/eco...rricanes-hit-us-crop/articleshow/60515811.cms
     
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  9. Som Thomas

    Som Thomas 2nd Lieutant FULL MEMBER

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    India’s forex reserves top $400 billion for the first time, shows RBI data :homer:
    [​IMG]
    India’s holdings are about $376 billion now if stripped of gold, enough to pay for about a year of imports. Photo: Reuters
    Mumbai: India’s foreign-exchange reserves rose past $400 billion for the first time ever, strengthening policy makers’ buffers ahead of an expected reduction in US stimulus.

    The stockpile stood at $400.7 billion 8 September, the Reserve Bank of India (RBI) said in a release on Friday. With the Federal Reserve set to shrink its balance sheet—details of which could be announced next week—the holdings may help the rupee withstand any volatility even if global funds turn away from India’s slowing economy.

    “We expect portfolio inflows to slow in the coming months,” said Radhika Rao, an economist at DBS Bank Ltd in Singapore. She predicts India’s current account deficit will double to 1.4% of gross domestic product (GDP) in the year through March 2018.

    That’s still far lower than the unprecedented 4.8% of GDP touched in 2013, when the Fed had first signalled intent to curb its massive bond-buying program. Those “taper tantrums” triggered a sharp slide in the rupee and reserves depleted to around $275 billion as the central bank struggled to buoy the currency.

    India’s holdings are about $376 billion now if stripped of gold, enough to pay for about a year of imports. The pace of reserve accretion has been one of the strongest within Asia in the past 12 months, according to analysts at Morgan Stanley, creating a challenge for the central bank, which has been intervening and mopping up the inflows.




    The RBI last month cut interest rates to the lowest in seven years to boost flagging growth. At the same time, it has been absorbing surplus funds in the banking system to keep price pressures under control. Inflation has been rising sharply from record lows, and the central bank wants it to stay near the 4% mid-point of its target range.

    The rise in foreign exchange reserves comes as yield-hungry global investors take advantage of high real rates of interest and a rupee that has gained more than 6% this year against the dollar. That may change in the months ahead as accelerating inflation in India erodes returns.

    Foreign holdings of rupee debt have risen by just 20.9 billion rupees ($326 million) so far in September and August’s 126-billion rupee inflow was the smallest in six months, as investors have used up almost all of their eligible quotas to buy Indian bonds. In the freer equity market, overseas investors have withdrawn $810 million this month, extending last month’s $1.7 billion outflow. Bloomberg

    First Published: Fri, Sep 15 2017. 06 21 PM IST

    http://www.livemint.com/Money/yaSVf...erves-top-400-billion-for-the-first-time.html
     
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  10. Som Thomas

    Som Thomas 2nd Lieutant FULL MEMBER

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    India's external debt falls by 2.7% to $471.9 billion by March

    IANS|
    Updated: Sep 15, 2017, 08.36 PM IST
    [​IMG]
    NEW DELHI: India's external debt stood reduced by 2.7 per cent at $471.9 billion by March-end as compared to March 2016 due to reduced commercial borrowings and NRI deposits, a Finance Ministry report said on Friday.


    "India's external debt stock stood at $471.9 billion at end-March 2017, decreasing by $13.1 billion (2.7 per cent) over $485 billion at end-March 2016. The decline in external debt was due to the decrease in long-term debt particularly NRI deposits and commercial borrowings," according to the India's External Debt: A Status Report 2016-17.

    The report is the 23rd issue of the annual publication, which is a detailed analysis of India's external debt position at end-March 2017, based on the data released by the Reserve Bank of India on June 30 and data and information available from other sources.

    Apart from analysing the trend, composition and debt service of India's external debt, the report provides a comparative picture of India's external debt vis-a-vis other countries, particularly developing countries.

    "India's external debt has remained within manageable limits and the external debt situation has improved in 2016-17 over 2015-16 as indicated by the increase in foreign exchange reserves cover to debt to 78.4 per cent from 74.3 per cent and fall in the external debt-GDP ratio to 20.2 per cent from 23.5 per cent. External debt of the country continues to be dominated by the long-term borrowings," the report noted.

    It also said that by March-end, India's long-term external debt was at $383.9 billion, showing a decrease of 4.4 per cent over the level at end-March 2016. Long-term external debt accounted for 81.4 per cent of total external debt at end-March 2017 as compared to 82.8 per cent at end-March 2016.

    "Short-term external debt increased by 5.5 per cent to $88.0 billion at end-March 2017. This is mainly due to the increase in trade related credits, a major component of short-term debt with a share of 98.3 per cent.
    "Government (sovereign) external debt increased from $93.4 billion at end-March 2016 to $95.8 billion at end-March 2017, and constituted 20.3 per cent of the total external debt, as compared to 19.3 per cent in the previous year," it added.

    A cross country comparison based on 'International Debt Statistics 2017' of the World Bank which presents the debt data for 2015, shows that India continues to be among the less vulnerable countries with its external debt indicators comparing well with other indebted developing countries.

    The ratio of India's external debt stock to gross national income at 23.4 per cent was the fifth lowest and in terms of the cover provided by foreign exchange reserves to external debt, its position was sixth highest at 69.7 per cent in 2015.
    http://economictimes.indiatimes.com...1-9-billion-by-march/articleshow/60701506.cms
     
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  11. Som Thomas

    Som Thomas 2nd Lieutant FULL MEMBER

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    New Britain engine parts maker bought by India manufacturer
    Cyient, an engineering and manufacturing firm based in India, is acquiring New Britain manufacturer B&F Design Inc. for an undisclosed sum.

    Financial and other terms of the deal were not disclosed.

    B&F Design both designs and makes precision engine assembly equipment, fixtures and gauges. The firm employs 47 and has revenue approaching $9 million, according the two companies.

    Cyient, based in Hyderabad, India, said this is its sixth acquisition in the last three years. The company has nearly 14,000 employees in 21 countries.

    Anand Parameswaran, Cyient's senior vice president for aerospace and defense, said the purchase enables the company to do more comprehensive work for its customers.
    http://m.hartfordbusiness.com/artic...gine-parts-maker-bought-by-india-manufacturer
     
  12. Paliwal Warrior

    Paliwal Warrior Lt. Colonel ELITE MEMBER

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    GST transitional credit: Taxpayers claim Rs 65,000 crore as refund of Rs 95,000 crore collected under GST. Govt orders probe
    The government has received a rude shock with a whopping Rs 65,000 crore of the Rs 95,000 crore collected as GST in July being claimed back as transitional credit by taxpayers. The tax authorities are now scrutinising all such cases where the sum exceeds

    By Mail Today Bureau
    Saturday, September 16, 2017
    [​IMG]
    The government has received a rude shock with a whopping Rs 65,000 crore of the Rs 95,000 crore collected as GST in July being claimed back as transitional credit by taxpayers. The tax authorities are now scrutinising all such cases where the sum exceeds Rs 1 crore.

    The Goods and Services Tax (GST) regime, which came into effect from July 1, allows tax credit on stock purchased during the previous tax regime. This claim is available only up to 6 months from the date of implementation of GST. The Central Board of Excise and Customs (CBEC), the apex body which administers control over indirect taxes, has in a letter dated September 11 asked tax officials to verify GST transitional credit claims of over Rs 1 crore made by 162 entities.

    In the transitional credit form TRAN-1 filed by taxpayers along with their maiden returns for July, businesses have claimed a credit of over Rs 65,000 crore for excise, service tax or VAT paid before the GST was implemented from July 1. CBEC has in a letter to all chief commissioners said that carry forward of transitional credit is permitted only when such credit is permissible under the GST law and in the light of such huge claims the issue has to be closely looked into.

    "The possibility of claiming ineligible credit due to a mistake or confusion cannot be ruled out. It is desired that the claims of input tax credit of more than Rs 1 crore may be verified in a time-bound manner,'' the CBEC letter states. It asked the chief commissioners to send a report to the CBEC by September 20 on the claims made by these 162 companies.

    To ensure only eligible credit is carried forward in the GST regime, the CBEC has asked field offices to match the credit claimed with closing balance in returns filed under the earlier law. Finance Minister Arun Jaitley had told journalists after the GST Council meeting last week that as many as 70 per cent of the 60 lakh taxpayers had filed returns for July, amounting to maiden revenue of Rs 95,000 crore under GST.

    The finance minister was upbeat on the success of the new tax regime. However, it has now turned out that the input tax credit (ITC) data for Central GST (CGST) claimed in TRAN-1 has shown that registered businesses have claimed over Rs 65,000 crore as transitional credit. The government, in late August, had come out with form TRAN-1 for businesses to claim credit for taxes paid on transition stock.

    Traders and retailers had 90 days to file for a claim. Also, businesses have been allowed to revise the form once till October 31. Under the transition rules, traders and retailers are allowed to claim a credit of 60 per cent of taxes paid earlier against the CGST or SGST dues where the tax rate exceeds 18 per cent. In cases where the GST rate is below 18 per cent, only 40 per cent deemed credit will be available against CGST and SGST dues.

    Further, the government would also refund 100 per cent excise duty on goods that cost above Rs 25,000 and bear a brand name of the manufacturer and are serially numbered such as TV, fridge or car chassis.

    To avail this, a manufacturer can issue a Credit Transfer Document (CTD) to the dealer as evidence of excise payment on goods cleared before the introduction of GST. The dealer availing credit using CTD will also have to maintain copies of all invoices relating to buying and selling from the manufacturer, through intermediate dealers
     
  13. Paliwal Warrior

    Paliwal Warrior Lt. Colonel ELITE MEMBER

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    After demo, Indian public.gives.another shocker to govt

    The above happens when you mess with Indian public
     
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  14. Paliwal Warrior

    Paliwal Warrior Lt. Colonel ELITE MEMBER

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  15. Paliwal Warrior

    Paliwal Warrior Lt. Colonel ELITE MEMBER

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    Now get probed for filing GST returns
     
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