India's external trade turned positive, perhaps for the first time, with growth in exports surpassing that of imports for the first time, in September 2017, bringing festive cheer for exporters and policy-makers.Merchandise exports from the country moved to a higher growth trajectory of 25.67 per cent with September exports reaching $28.61 billion, helped by better performance by all the top 10 commodity groups, ranging from engineering items to textiles.
Although exports have been in the positive zone for the past 13 month, it is for the first time that growth in exports surpassed that of imports.
The trade deficit, too, narrowed in September by 0.95 per cent to $8.98 billion against 9.07 billion in September last year, but the overall trade deficit during the April-September 2017-18 period stood at $72.13 billion.Cumulative exports during April-September 2017-18 stood at $147.19 billion against cumulative imports of $219.32 billion, leaving a gap of $72.13 billion
Import growth rate was slightly lower than export growth, with gold imports declining by 5 per cent.
Imports into the country increased 18.09 per cent in September 2017 to $37.59 billion, according to an official data released on Friday.
Imports during September 2017 were valued at $37.60 billion (Rs242,282.96 crore) which was 18.09 per cent higher in dollar terms and 14.02 per cent higher in rupee terms over the level of imports valued at $31.84 billion (Rs212,486.28 crore) in September 2016.
Cumulative value of imports for April-September 2017-18 stood at $219.32 billion (Rs141,1872.70 crore) against $175.34 billion (Rs1,173,664.70 crore), recording a positive growth of 25.08 per cent in dollar terms and 20.30 per cent in rupee terms over the same period last year.
Exports during September 2017 were valued at $28.61 billion (Rs. 184387.36 crore ), showing a growth of 25.67 per cent in dollar terms and 21.35 per cent in rupee terms compared to exports valued at $22.77 billion (Rs151,950.74 crore) in September 2016.
Apart from engineering goods exports, which posted a sharp increase of 44 per cent during the month to $7.32 billion, other sectors that registered growth included gems and jewellery, petro products, organic and inorganic chemicals, readymade garments, drugs and pharmaceuticals, cotton yarn/fabs/made-ups, handloom products, marine products, rice and electronic goods.
Oil imports, at $8.18 billion were 18.4 per cent higher than in September 2016. Non-oil imports, at $29.40 billion, were 17.9 per cent higher. Gold imports came in at $ 1.71 billion.
New Delhi: A series of economic data has delivered a dose of good news since the middle of last week, making it one of the best times for the Indian economy in several months.
Data ranging from cooling of inflation to a rebound in exports and factory output suggest a favourable shift in the economic climate, recovering from the disruption caused by rollout of goods and services tax (GST) and the aftershocks of the Narendra Modi government’s demonetisation move. The trend gives optimism to experts for an uptick in economic growth rate in the coming quarters.
Retail inflation based on Consumer Price Index (CPI), which was inching up for three months since June, paused in September, while inflation based on Wholesale Price Index (WPI), which was following a similar trend in the period, decelerated in September. The decline in inflation was led by a correction in prices of food.Industrial production rebounded to a nine-month high in August to 4.3% as manufacturers stepped up production ahead of the festive season. What is good news for the policy makers is that August data suggested a recovery in capital goods production, taken as a proxy for investments in the economy, from a sustained contraction since the beginning of the financial year. It expanded 5.4% in August.
Merchandise exports grew at 25.7% in September, its fastest pace in six months, to $28.6 billion, which helped trade deficit to narrow to a seventh-month low of $8.9 billion.
The data support the optimism of policymakers and experts that the impact of recent structural reforms have begun to wane and economic growth, which had slowed down to 5.7% in the June quarter from 6.1% in the preceding three months, is getting back to normal.
Rajiv Kumar, vice-chairman of federal policy think tank NITI Aayog, said the economic slowdown that began in 2013-14 has bottomed out and that gross domestic product (GDP) is likely to grow 6.9-7% in the current financial year and by 7.5% in 2018-19, PTI reported on Sunday.
Kumar had earlier told Mint that he endorsed the Asian Development Bank’s 2017 GDP growth forecast of 7% for India. The multilateral agency, which follows a calendar year, last month revised its 2017 growth forecast for India to 7% from its July estimate of 7.4% while stating that “short-term disruptions” will “dissipate”.
Experts said that while these sets of macroeconomic data indicated some improvement, one needed to watch whether this will sustain over the next few months.
“For instance, the year-on-year pace of growth of electricity generation, Coal India Ltd’s production and automobile production, have declined in September relative to August, which may dampen the rise in Index of Industrial Production in September to some extent. Exports, on the other hand, may witness improvement in volume growth in October, following the decisions of the GST Council,” said Aditi Nayar, principal economist, Icra Ltd.
The challenge before the government is to stimulate investments into the Indian economy and to add new jobs. The high level of indebtedness of businesses and bad assets weighing on banks’ ability to lend also need to be resolved.
With the US economy doing well, Indian IT companies can look forward to a better year in 2018 on the back of growing tech spend and demand from clients, according to senior industry figures
Noting that the largest market for Indian IT companies is the US, former CFO of InfosysBSE -1.04 % V Balakrishnan said their ability to grab growth opportunities is critical
"(The) US economy is doing extremely well. I think they are still growing 2-2.5 per cent, good growth for that economy," he told
"If you look at the Gartner report, they talked about overall IT spend going up by 4-4.5 per cent this year. I think there is growth. The ability of the company to take on growth is critical. I think growth opportunities are there," added Balakrishnan
He said if the world's largest economy is doing well, Indian IT companies "have a hope"
"They (the US) are talking about raising interest rates because growth is good, unemployment rate is very low, (US President Donald) Trump is talking about cutting corporate tax, so the economy is doing well. As long as the US economy does well, there will be opportunities for Indian IT companies," Balakrishnan said
On NASSCOM projecting Indian IT export to grow 7-8 per cent in 2017-18 and domestic market expanding 10-11 per cent, he said "it looks okay for the year"
"But I think the next year should be good if the US economy continues to do well," Balakrishnan said
Another ex-CFO of Infosys, T V Mohandas Pai, said he has read many analysts' reports in the US that indicate that "the work is coming to big system integrators because tasks have become complex"
"I spoke to industry people and they say digital work for all big companies is growing in double digits. Rest of the traditional business is not growing much. Digital is growing very rapidly and for the big fellows digital is 20-25 per cent of business. So, I think there is good growth," Pai said
According to Balakrishnan, overall global IT spending is around USD 3.7 trillion every year
"Of that, one-third is IT services; so there is still a lot of spending happening on the legacy side which goes into maintenance and building some core applications. That has not gone away
"The incremental spending is happening in the digital area, and there, companies are building capabilities trying to play to ecosystem and go to the clients. Both are happening. I don't think the legacy services are totally gone. A large part of it is still there," Balakrishnan added.
Source:The Economic Times
The smart transformers market is projected to grow faster in the Asia Pacific region, especially in China, Japan, and South Korea. The Asia Pacific region is moving toward clean energy on a large scale to meet its growing energy needs in an efficient way. India, China, and Singapore are some of the potential growing markets in the power and utilities sector. Asia Pacific also offered the biggest potential gains for foreign direct investment and attracted 45% of all the capital investment, globally, in 2015.
The smart transformers market in Asia Pacific is driven by the increased investments in modernizing infrastructure and urbanizing populations, especially in developing economies such as China and India. The Chinese market was, by far, the largest in the world in terms of infrastructure development in 2015. A rise in investments in smart grid technologies and smart cities that include distribution grid automation, smart meters, and demand response systems in countries, such as Japan, South Korea, and Australia would create opportunities for the smart transformers market.
The prominent players in the smart transformers market include ABB (Switzerland), Siemens (Germany), Schneider Electric (France), Eaton (Ireland), and General Electric (US). The leading players are trying to make inroads in the markets in developed economies and are adopting various strategies to increase their market shares.The smart grid segment is expected to have the largest smart transformers market share by 2022. With regard to the end-use application segment, the smart grid segment is expected to constitute the largest market by 2022. One of the biggest uses of a smart transformer in smart grids is its role in integrating power from distributed generation into the main grid. Smart grids have two-way communication for real-time monitoring and controlling of network characteristics.
The distribution transformers to be the fastest growing segment in the smart transformers market. For this, the basic step is the implementation of smart meters for end-user interactions, followed by employing smart transformers in the network to further strengthen communications and avoid power outages. Although smart grids prevent faults and power outages, they are also equipped with self-realization characteristic that allows the network to restore to normal, once the fault is cleared. Due to its application at various end-user points in the smart grid infrastructure, the segment is expected to dominate the market by 2022.The smart transformers market report defines, describes, and forecasts the global smart transformers market by component, type, application, and region. It also offers a detailed qualitative and quantitative analysis of the market. The report provides a comprehensive review of the major market drivers, restraints, opportunities, challenges, winning imperatives, and key issues. It also covers various important aspects of the market.
In-depth interviews have been conducted with various key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information, as well as to assess future market prospects. The distribution of primary interviews is as follows:
By Company Type: Tier 1 - 43%, Tier 2 - 33%, Tier 3 - 24%
By Designation: C-Level - 35%, Director Level - 25%, Others - 40%
By Region: North America - 30%, Asia Pacific - 25%, Europe - 20%, Middle East & Africa - 15%, and South America - 5
Note: Others includes sales managers, product managers, and design engineers. The tier of the company has been defined on the basis of its total revenue, as of 2013: Tier 1 = > USD 1 billion, Tier 2 = From USD 1 billion to USD 500 million and Tier 3 = < USD 500 million.
Prime Minister Narendra Modi on Friday visited the Kedarnath temple and sought blessings from Lord Shiva to fulfil the dreams of a ‘developed India’ by 2022. Speaking after unveiling a grand reconstruction plan for the disaster-hit Kedarnath, where he launched new projects worth
Rs 500 crore, Modi took a pledge to devote himself to realising his dream by the time the country marks 75 years of freedom.
“Kedarnath will become a grand, unique and inspirational place,” Modi said, after holding a puja at the Lord Shiva shrine at the temple town where the 2013 deluge had brought death and destruction. Funds would not be a hurdle for the reconstruction. “There will be no shortage of funds. I invite states in India to participate (in the reconstruction). I also invite the private sector to contribute through corporate social responsibility (CSR),” Modi said.
The JSW group has already given its nod to build the first phase of the reconstruction, he said. “When so much money is being invested and infrastructure being built, we will take care of the environment also,” he said.
The prime minister said he was launching five main projects on Friday, including the reconstruction of a grand samadhi of Adi Shankracharya, which was damaged in the natural disaster. Retaining walls would be made for the Mandakini and Sarsawati rivers. The banks of both the rivers would be redeveloped to ensure tourists can enjoy the view. The road leading to the temple would be widened and illuminated.
JSW Chairman Sajjan Jindal said his group believes its efforts towards restoration will assist in improving local infrastructure.
Modi said houses for Kedarnath priests would be built as “three-in-one” units. The ground floor would be for tourists, the second floor for priests and the third floor for patrons. All the roads would be clean and there would be spaces for post offices, banks, telephones and computers. The Kedarnath town will be provided 24X7 electricity supply.
Referring to the deluge, Modi, who had visited the area in 2013, said he was not allowed to carry out the reconstruction work when he was the Gujarat chief minister because of pressure from the former UPA government."I expressed my wish to carry out reconstruction work at Kedarnath to the then chief minister of the state who agreed in principle. In my excitement I shared the development with the media and within an hour TV channels flashed it, causing a storm in New Delhi. They (the UPA government) viewed the development with a kind of alarm as they thought the Gujarat chief minister will now reach Kedarnath and mounted pressure on the then state government not to agree to my request." The then chief minister had no choice but to issue a statement saying it did not need the help of the Gujarat government, Modi said.
“I went back disappointed. But Baba (Lord Shiva) assigned the responsibility of the reconstruction work to no one else but only to me.”
Modi said Uttarakhand can be developed to become a leading centre of tourism. The hill state should take a leaf from Sikkim, which is now a fully organic state. By adopting organic farming, farmers can earn one dollar instead of one rupee, Modi said.