Stan AF Posted August 21, 2019 Share Posted August 21, 2019 Link to comment Share on other sites More sharing options...
Stan AF Posted August 21, 2019 Share Posted August 21, 2019 https://churumuri.blog/2019/08/21/the-state-of-indias-economy-in-30-screenshots-from-just-the-last-15-days-of-the-economic-times/ Posted on 21 August 2019 by churumuri The state of India’s economy in 30 screenshots from just the last 15 days of ‘The Economic Times’ The travails of the automotive industry have got all the coverage (The Telegraph, above), but various sectors of the Indian economy are in deep slump, as Narendra Modi bloviates about making India a $5 trillion economy. (How many zeroes in a trillion? 12, actually.) Eight key core sectors of the economy–including electricity, natural gas and petroleum refinery products–have had their lowest growth in 50 months, according to official data (Deccan Herald, above). In just the last two days two industry bodies, of tea and cotton (above), have bravely issued advertisements announcing the huge job losses that are on the anvil. Britannia CEO Varun Berry‘s quote that consumers were hesitating to buy a Rs 5 biscuit packet hits the nail on the head. But the big picture is even more revealing of the state of the economy under the much-vaunted “Gujarat Model”. Link to comment Share on other sites More sharing options...
Stan AF Posted August 21, 2019 Share Posted August 21, 2019 (edited) [Cont'd] Here are 30 screenshots from the last 15 days of The Economic Times, each headline providing a peek of the oncoming truck. *** https://churumuri.blog/2019/08/21/the-state-of-indias-economy-in-30-screenshots-from-just-the-last-15-days-of-the-economic-times/ Edited August 21, 2019 by Stan AF Link to comment Share on other sites More sharing options...
Stan AF Posted August 22, 2019 Share Posted August 22, 2019 Facing Shutdown & Job Losses, Textiles Association Issues Ad In Newspaper Begging Govt’s Attention The Logical Indian Crew India August 20th, 2019 / 4:32 PM / Updated 15 hours ago Page 3 of The Indian Express, dated August 20, carried an advertisement by Northern India Textile Mills Association (NITMA). It was titled ‘Indian Spinning Industry Facing Biggest Crisis, Resulting in Huge Job Losses’. This newspaper advertisement spoke about the job crisis faced by the industry, which is otherwise the biggest employer after the agriculture industry in India. It is one of the rare occurrences when an industry body attempted to draw the government’s attention via a newspaper advertisement. NITMA has called this the biggest crisis ever, befalling the Cotton and Blends spinning industry, kinds of which was seen during 2010-11. During that year, India’s cotton output had dipped to 332.25 lakh bales. Citing data from Directorate General of Commercial Intelligence and Statistics (DGCI&S), the association says that there has been a 34.6% drop in the export of cotton yarn value in 2019 (April-June) as compared to the 2018 value for the same period. Among the various challenges, taxes levied by state and centre, high-interest rates, high cost of raw materials in comparison to global prices and cheaper imports of garments and yarn from countries like Bangladesh, Sri Lanka and Indonesia, have been outlined in the advertisement by NITMA. The advertisement further notes that about one-third of spinning capacity across India has been closed and those still running are incurring huge cash losses. “The Indian textile industry employing over 100 million people directly and indirectly hereby seeks immediate attention of the Government of India to prevent job losses and avoid the spinning industry from becoming Non-Performing Asset (NPA),” the advertisement said. Distress Faced By Textiles Industry The International Cotton Advisory Committee (ICAC) in February this year said that India’s cotton production is set to drop by 7% due to ‘insufficient rainfall’. This against China’s estimated 1% production increase might cost India its distinction as the world’s largest cotton producer, the report said. Just last month, a release issued by NITMA said that the textile spinning mills in North India were considering cutting down production and shutting down mills once a week. The decision was made in lieu of poor demand for yarn from overseas market, combined with excess spinning capacity in the country. The release said, “China, which has been a major importer of Indian yarns for the past few years, has cut down imports in the past few months, thus worsening the situation, leading to the accumulation of yarn stocks in Indian spinning mills.” The releases further added that some textile units are considering lowering the capacity to even 50% in the wake of the unsafe market situation and to have less borrowing/outstanding and stocks. https://thelogicalindian.com/awareness/textile-industry-advertisement/ Link to comment Share on other sites More sharing options...
Stan AF Posted August 22, 2019 Share Posted August 22, 2019 [Cont'd] Tea Industry’s Public Appeal On August 1, the Indian Tea Association had issued a similar public appeal. The appeal asked the government to ban expansion of tea estates for at least five years and for the Provident Fund (PF) contribution of workers to be taken over by the state government for at least three years, in order to provide relief to the industry. Himanta Biswa Sarma, Assam’s Finance Minister had also tweeted that the tea industry in Assam was undergoing critical phase. To relieve the producers, the state government withdrew cess on green leaves, he said in the tweet. Link to comment Share on other sites More sharing options...
Stan AF Posted August 22, 2019 Share Posted August 22, 2019 Data on demonetisation's link to economic slowdown may have been suppressed Puja Mehra August 22, 2019 00:02 IST Updated: August 22, 2019 10:18 IST more-in Demonetisation Task force report may have provided factual evidence for the debilitating impact of demonetisation on the formal corporate sector Was a task force report that recommended a new law to replace the more than 50-year-old Income Tax Act, 1961 suppressed because it inadvertently provided factual evidence for the debilitating impact of demonetisation on the formal corporate sector? On September 1-2, 2017, at the Rajaswa Gyan Sangam (an annual conference of senior tax administrators), Prime Minister Narendra Modi had made an observation regarding the need to redraft the Income Tax Act, 1961. The Union Finance Ministry set the ball rolling for making direct taxes (on personal and corporate incomes) simple and in consonance with India’s economic needs. On November 22, 2017, it appointed a six-member ‘Task Force for drafting a New Direct Tax Legislation’. On September 26, 2018, however, an office memorandum was issued “with the approval of the Finance Minister”, requesting the task force’s convenor “not to submit its report to the Government until and unless the Draft prepared by the Convenor of the Task Force is deliberated clause by clause by all Members of the Task Force and has agreement of all Members or at least majority of Members”. The convenor, an Indian Revenue Service officer and the former Central Board of Direct Taxes (CBDT) Member (Legislation) Arbind Modi, who was closely involved earlier with tax reforms by the A. B. Vajpayee and Manmohan Singh governments, was to superannuate on September 30, 2018. No extension was given for complying with the office memorandum. The convenor, nevertheless, submitted “four volumes in sealed cover of the report and draft legislation” to the Finance Minister and the Finance Secretary on September 28, 2018 “for continuity” and “record purposes”. Click here for the full text of the report: Volume I | Volume II | Volume III | Volume IV In November 2018, the Finance Ministry appointed Akhilesh Ranjan, the new Member (Legislation), CBDT, to succeed Mr. Modi as the task force convenor. Mr. Ranjan submitted his report to the Finance Minister on August 19, 2019. Demonetisation’s blow Drawing insights from the tax department’s database of annual tax returns filed by corporate firms and individuals, Mr. Arbind Modi’s report had proposed two alternative approaches along with draft legislations corresponding to each of the models for a new direct taxes law. The chapter on reform proposals for corporate taxes has a table (page 109, Volume I) that makes for a significant piece of evidence for how demonetisation may have affected companies. The table shows aggregates of investments corporate firms disclosed in their annual tax return filings. The aggregate of investments disclosed in the assessment year 2017-18, or financial year 2016-17, the demonetisation year, plummeted to ₹4,25,051 crore — or a drop of nearly 60% from the previous year. In the seven financial years, from 2010-11 to 2016-17, the aggregates of investments disclosed were ₹11,72,550 crore, ₹9,25,010 crore, ₹10,22,376 crore, ₹11,03,969 crore, ₹9,98,056 crore, ₹10,33,847 crore and ₹4,25,051 crore. The near collapse becomes apparent when the aggregates are seen as a percentage of the GDP. The investments by corporate firms that filed annual returns in each of the years from 2010-11 to 2016-17 as a percentage of GDP were 15%, 10.5%, 10.2%, 9.8%, 9%, 7.5% and 2.7%. The aggregate figures are actuals (therefore nominals) sourced from companies’ statutory disclosures, and not the estimates or findings of some survey. This in fact makes the data undeniable evidence of demonetisation’s contribution to the deepening economic slowdown that has become a headache for the Modi government early in its second tenure. The report throws up a few more worrying trends. For example, on page 115, Volume I, the report notes: “About 50 percent of the companies registered with the Registrar of Companies filed their income tax returns for the financial year 2016-17 (assessment year 2017-18)” “Of the 7,80,216 companies which filed their tax returns for AY 2017-18, 45.94 percent of corporate filers reported book losses” “The share of loss-making companies has increased from 42 percent in AY 2013-14 to 45 percent in AY 2017-18” “There has been a decline in the number of corporate filers from the manufacturing sector over the period AY 2013-14 to AY 2017-18” “The share of manufacturing in the profits before taxes has marginally declined from 47.3 percent in AY 2013-14 to 46.4 percent in AY 2017-18” “The return on equity declined from 16.4 percent in AY 2013-14 to 15.5 percent in AY 2015-16 and thereafter has reversed the trend and increased to 16.5 percent in AY 2017-18” “The corporate tax liability increased from 19 percent of gross internal accruals in AY 2013-14 to 21 percent in AY 2017-18” “The DDT [Dividend Distribution Tax] liability increased from 1 percent of gross internal accruals in AY 2013-14 to 2 percent in AY 2017-18” “The efficiency (productivity) of the corporate tax, which shows the policy choices regarding tax concessions and the overall levels of non-compliance, is extremely low at 7.5 percent over the period AY 2013-14 to 2017-18. Compared to other select economies, India’s productivity of corporate income tax is the lowest”. “In each of the years since AY 2013-14, the profit making companies had substantially more retained earnings (gross internal accruals minus tax liability) than the investments made during the year” “Given the limited fiscal space available to the Government, economic growth would necessarily have to be driven by private investment…. [but] corporate investments have remained virtually stagnant despite the availability of sufficient retained earnings”. GDP growth estimates In the report, the trend in aggregate corporate investments figures corresponds to the investment slowdown discernible in the official GDP estimates for 2011-12 onwards. However, the investments aggregate figure for 2016-17 brings into question the GDP growth estimate for the demonetisation year. In the latest round of scheduled revisions, the government had revised upwards the 2016-17 GDP growth estimate, from 7.1% to 8.2%. As per the revised estimate, the demonetisation year, is the best in the Modi government’s first tenure as far as GDP growth is concerned. This when, nearly every industry association (from traders, consumer durables to cement manufacturers) reported sharp drops in sales that year on account of the note ban. The revised estimate defies common sense and runs contrary to comparable data generated by non-government agencies and, as it turns out now, also corporate annual returns tax return filings. The Finance Ministry has so far not made public the task force reports (the one submitted on September 28, 2018 and the other on August 19, 2019). It remains to be seen whether it will put out the first one for public discussion. Or, if the second one, likely to be made public in due course, will retain the data from the corporate annual tax returns that threaten to expose the role of demonetisation in hurting the economy beyond the informal segment. Earlier, the government had initially held back and even challenged the validity of the National Sample Survey Office’s (NSSO) periodic labour force survey results even after the National Statistical Commission had duly cleared the findings. The results — that the unemployment rate reached a 45-year high in 2017-18, the demonetisation year — were politically inconvenient. The findings were subsequently only released after the completion of the 2019 elections. Puja Mehra is a Delhi-based journalist https://www.thehindu.com/opinion/op-ed/a-politically-inconvenient-data-nugget/article29214638.ece Link to comment Share on other sites More sharing options...
Lannister Posted August 22, 2019 Share Posted August 22, 2019 WTF! Only 38%? Bhakts should be really really careful before calling others anti Indians, terrorists... Those 62% can easily pull your guts out. Link to comment Share on other sites More sharing options...
Guest Posted August 22, 2019 Share Posted August 22, 2019 1 hour ago, Lannister said: WTF! Only 38%? Bhakts should be really really careful before calling others anti Indians, terrorists... Those 62% can easily pull your guts out. After Nazi lost the WW2 there was a clean up process within Germany to identify Nazis . India will need a similar process to identify Bhakts and take corrective actions. Link to comment Share on other sites More sharing options...
velu Posted August 22, 2019 Share Posted August 22, 2019 2 hours ago, Lannister said: WTF! Only 38%? Bhakts should be really really careful before calling others anti Indians, terrorists... Those 62% can easily pull your guts out. i am sure this libtard will consider herself as another intellectual someone give her a biscuit and explain about how parliamentary system works Link to comment Share on other sites More sharing options...
Stan AF Posted August 23, 2019 Share Posted August 23, 2019 Link to comment Share on other sites More sharing options...
Stan AF Posted August 23, 2019 Share Posted August 23, 2019 (edited) Rupee weakens to 72 against US Dollar for the first time in 2019 https://economictimes.indiatimes.com/markets/forex/rupee-weakens-to-72-against-us-dollar-for-first-time-in-2019/articleshow/70798109.cms @velu Edited August 23, 2019 by Stan AF velu 1 Link to comment Share on other sites More sharing options...
Stan AF Posted August 23, 2019 Share Posted August 23, 2019 Link to comment Share on other sites More sharing options...
Stan AF Posted August 23, 2019 Share Posted August 23, 2019 (edited) Best Of PSUs Trade At Over A Decade Low Read more at: https://www.bloombergquint.com/markets/best-of-psus-trade-at-over-a-decade-low Copyright © BloombergQuint National Aluminium Company Ltd. and NMDC Ltd. are at trading at multi-year lows as global prices for steel and iron have corrected. Outside the Nifty PSE Index, Navratnas, including Shipping Corporation of India Ltd., Mahanagar Telephone Nigam Ltd. and NLC India Ltd., have seen the worst selloff in 12 years or more. Maharatnas SAIL: At 2004 levels. BHEL: Near 15-year low. ONGC: Maharatnas SAIL: At 2004 levels. BHEL: Near 15-year low. ONGC: Lowest since March 2009. COAL India: Lifetime low. Navratnas SCI: Lowest since 2002. Neyveli Lignite: 12-year low. MTNL: Below 1993 levels. Read more at: https://www.bloombergquint.com/markets/best-of-psus-trade-at-over-a-decade-low Copyright © BloombergQuint Read more at: https://www.bloombergquint.com/markets/best-of-psus-trade-at-over-a-decade-low Copyright © BloombergQuint Edited August 23, 2019 by Stan AF Link to comment Share on other sites More sharing options...
Autonomous Posted August 23, 2019 Share Posted August 23, 2019 Modi is Indian Version of Imran Khan Link to comment Share on other sites More sharing options...
velu Posted August 24, 2019 Share Posted August 24, 2019 23 hours ago, Stan AF said: Best Of PSUs Trade At Over A Decade Low Read more at: https://www.bloombergquint.com/markets/best-of-psus-trade-at-over-a-decade-low Copyright © BloombergQuint National Aluminium Company Ltd. and NMDC Ltd. are at trading at multi-year lows as global prices for steel and iron have corrected. Outside the Nifty PSE Index, Navratnas, including Shipping Corporation of India Ltd., Mahanagar Telephone Nigam Ltd. and NLC India Ltd., have seen the worst selloff in 12 years or more. Maharatnas SAIL: At 2004 levels. BHEL: Near 15-year low. ONGC: Maharatnas SAIL: At 2004 levels. BHEL: Near 15-year low. ONGC: Lowest since March 2009. COAL India: Lifetime low. Navratnas SCI: Lowest since 2002. Neyveli Lignite: 12-year low. MTNL: Below 1993 levels. Read more at: https://www.bloombergquint.com/markets/best-of-psus-trade-at-over-a-decade-low Copyright © BloombergQuint Read more at: https://www.bloombergquint.com/markets/best-of-psus-trade-at-over-a-decade-low Copyright © BloombergQuint Reliance increased its market cap multifold .. Compensated the fall of these companies by a big margin Link to comment Share on other sites More sharing options...
Stan AF Posted August 27, 2019 Share Posted August 27, 2019 Link to comment Share on other sites More sharing options...
velu Posted August 27, 2019 Share Posted August 27, 2019 14 minutes ago, Stan AF said: this is one of the dumbest tweet and he has no knowledge about how stock market works Link to comment Share on other sites More sharing options...
Tibarn Posted August 27, 2019 Share Posted August 27, 2019 It looks like some of the corporations are pushing for a "stimulus package" into the economy. Aside from the vagueness regarding what that entails, it is such a stupid idea, IMO. It is better to do something important ie labour laws or land reform which are actual economic reforms rather than bakwas like a "stimulus package". Even if they are waiting for a Rajya Sabha majority before doing those two actual reforms(I am not convinced this is the case), they should be sensible. If they want to stimulate the economy it is better to give tax breaks to the middle and lower class. velu 1 Link to comment Share on other sites More sharing options...
Stan AF Posted August 28, 2019 Share Posted August 28, 2019 Indian economy’s animal spirits got worse as slowdown spilled into July A gauge measuring overall economic activity moved one notch toward weaker territory as 6 of 8 high-frequency indicators fell from previous month. Anirban Nag Updated: 28 August, 2019 9:14 am IST Mumbai: Weakness in India’s investment and consumption activity worsened in July, with economic growth showing little signs of recovery from a five-year low. A gauge measuring overall activity moved one notch toward weaker territory, as six of the eight high-frequency indicators compiled by Bloomberg fell from the previous month. Car sales slumped the most in almost two decades and latest data showed infrastructure sector output grew at the slowest pace in more than four years. The weakening came about a month before Finance Minister Nirmala Sitharaman announced a slew of steps to revive Asia’s third-largest economy. While the measures boosted market sentiment, they are expected to fall short of spurring growth. The dashboard measures “animal spirits” — a term coined by British economist John Maynard Keynes to refer to investors’ confidence in taking action — and uses the three-month weighted average to smooth out volatility in the single-month readings. Here are the details of the dashboard: Business activity After contracting in June, India’s purchasing managers index for services rebounded into growth territory in July. The index rose to 53.8 from 49.6 in June, with the upturn in business activity linked to the budget presented in early July and improved work orders. A reading above 50 indicates expansion. Manufacturing activity also picked up, a separate PMI survey showed, pushing the composite index to an eight-month high of 53.9 in July from 50.8 in June. Input cost inflation was muted, with only a negligible proportion of companies increasing selling prices in July. That should give the central bank enough leeway to pursue an easy monetary policy bias in the coming months, after having lowered benchmark rates by 110 basis points so far this year. Exports Merchandise exports grew in July from a year ago following a contraction in June. Still, the pace of exports growth was modest, dampened by a decline in gems and jewelry and engineering goods, and the outlook is clouded by a gloomy global economic picture and rising U.S.-China trade tensions. Consumer activity Consumer spending showed continued signs of stress. Car sales fell 36% from a year earlier to 122,956 units in July, the most since December 2000, data released by the Society of Indian Automobile Manufacturers showed. Passenger vehicle sales slumped 31%, while truck and bus sales fell 26%. Weak sales are forcing manufacturers to cut production or shutter factories temporarily, leading to at least 15,000 job losses in the industry so far, Vishnu Mathur, the director general of Siam, said. The prospect of job losses and slowing growth saw consumer confidence drop further in July, according to a survey by the central bank. Consumption, which contributes nearly 60% to gross domestic product, has been largely hurt by a shadow banking crisis, and that in turn has dragged growth down to a five-year low. Data due Friday will probably show India’s gross domestic product expanded 5.7% in the quarter ended June, slower than the 5.8% pace seen in the previous three months. Sluggish consumer spending and tardy investment is keeping demand for bank loans in check. Overall credit growth was pegged at 12.2% in July, down from 14.2% at the beginning of April, according to central bank data. The Citi India Financial Conditions Index, a liquidity indicator, showed overall conditions were improving in July after remaining fairly tight in April, May and the early part of June. Industrial activity India’s core infrastructure industries’ output, which constitutes 40% of total industrial production, rose 0.2% in June from a year earlier. That was the slowest pace of expansion in more than four years, as four of the eight components — crude oil, natural gas, refinery products and cement — contracted. Industrial output growth eased to 2% in June from 4.6% in May, with production of consumer durables and capital goods weighing down activity. Both the numbers are reported with a one month lag. https://economictimes.indiatimes.com/news/economy/indicators/animal-spirits-get-worse-as-india-slowdown-spills-over-to-july/articleshow/70868441.cms Link to comment Share on other sites More sharing options...
Stan AF Posted August 28, 2019 Share Posted August 28, 2019 (edited) Indian economy set for weakest quarter of growth in 5 years The poll median showed the economy was expected to have grown at a year-on-year pace of 5.7% in the June quarter. Reuters Updated: Aug 27, 2019, 01.16 PM IST Read more at: https://economictimes.indiatimes.com/news/economy/indicators/indian-economy-set-for-weakest-quarter-of-growth-in-5-years/articleshow/70853077.cms Edited August 28, 2019 by Stan AF Link to comment Share on other sites More sharing options...
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