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(Indian Exports) - India's exports to the US, the single largest market for local exporters, dropped 11.5% during October'08-February'09, as per a study by industry chamber FICCI. The study also revealed that India has lagged behind other competing countries such as China, South Korea and Brazil, that export to the US.
This has come about even as US-bound exports from Ireland, Indonesia and Vietnam have grown in the range of 3-12% during the same five month period. Although exports from China, Korea and Brazil have also dropped, India has fared the worst, as per FICCI. But India outperformed Malaysia, Taiwan, Thailand, Russia and Singapore for the period.
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In the first two months of 2009, Indian exports to the US dropped 23%, much more than the fourth quarter of 2008, indicating a worsening situation. In the previous quarter (July-September 2008) exports actually grew 14%.
The sectors worst affected by the decline in exports to US include gems & jewellery, textiles & apparel, pharmaceuticals, auto & auto components, marine products and non-ferrous metals. In contrast, chemicals, machinery, iron & steel, instruments, leather, plastics, agro-items and processed food saw higher exports.
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India's exports of machinery & parts grew 19% to $1.2 billion against a 15.4% decline in US global imports of this category. Similarly chemicals export increased over 14% to $974 million even as US chemical imports from all countries put together declined 1.5% for the period. Exports of iron & steel from India matched the 14% rise in US global imports of the products.
The FICCI study observed that in two categories India has lost some share of US imports to competitor countries. In textiles & apparel, Bangladesh and Vietnam have expanded their exports 18% and 9% respectively when Indian exports fell 6.5%. Similarly, India's pharmaceuticals exports declined 37% at a time when such exports from China, Israel and South Korea moved up 27-41%.
Thursday, April 30, 2009
indian Exports to US fell 11.5 perc since recession news came in
Wednesday, April 29, 2009
US economy slid at 6.1% in first quarter
(29/4/2009 - US Economy Updates) - The US economy contracted at a 6.1 percent annual pace in the first quarter of 2009, the government said Wednesday, signaling little improvement in a deep recession.
The Commerce Department's first estimate of gross domestic product (GDP) was a disappointment to forecasters expecting a 4.7 percent decline, and marked only a marginal improvement over the 6.3 percent drop in the fourth quarter of 2008.
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The decline marked the third consecutive quarter of contraction for the world's biggest economy, which had not occurred since 1974-1975.
The steep fall was the result of falling exports, declines in business and household investment and a weak housing market, offset in part by improved consumer spending.
Consumer spending rebounded in the quarter, growing 2.2 percent after falling 4.3 percent in the last quarter of 2008.
But even though consumer activity makes up the lion's share of activity, it was not enough to offset hefty declines in other segments of the economy.
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Investment in housing or residential structures fell 38 percent and spending on nonresidential business investment slumped 37.9 percent including a 33.8 percent drop in software and equipment.
Exports tumbled 30 percent and even government investment fell 4.0 percent.
Indian economy to recover from mid-2009 - Macquaire
(29-4-2009 Indian economy updates) - Indian economy will begin to recover from the middle of this year, thanks to the fiscal and monetary measures taken up by the government, but the outcome of the ongoing general election remains a legitimate concern, global research firm Macquarie has said.
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Macquarie said, "Our view remains that the largely domestically-driven Indian economy will begin to recover palpably from mid-year onwards."
The double-cylinder fiscal and monetary response has been aggressive and already paying dividend, the research firm said but added that "political uncertainty over the outcome for the ongoing general election remains a legitimate concern".
The other factors likely to contribute include that India is relatively less dependent on exports, its export profile is not heavily dependent on electronic or automotive shipments and the domestic fiscal and policy response has been aggressive and effective.
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Macquarie further said the Reserve Bank of India appears to be approaching the end of the policy rate-cutting cycle, but banks have more room to cut their lending rates more aggressively, which in turn should boost economic activity.
"Indeed, the broader setting is evolving nicely to position the economy for a better second-half of FY'10. Currently, we forecast a full-year GDP growth of 5.5 per cent for FY'10 following an estimated 6.5 per cent in the last fiscal year," Macquarie said.
Tuesday, April 28, 2009
RBI extends concessional credit to exporters till Oct 31
(28/4/2009 - RBI news) - Providing relief to exporters hit by shrinking global demand, the Reserve Bank on Tuesday extended the concessional interest rate scheme by six months till October this year.
The ceiling of interest rate on pre-shipment rupee export credit up to 270 days and post-shipment credit up to 180 days at BPLR minus 2.5 per cent was to expire on April 30, 2009.
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"It has been decided to extend the validity ... up to October 31, 2009," the RBI said in a circular to the scheduled commercial banks.
Since these are ceiling rates, banks would not be able to charge exporters interest rates above the benchmark prime lending rate (BPLR) minus 2.5 per cent.
The Federation of Indian Export Organisations has been demanding that exporters should be given credit at 7 per cent without linking with the prime lending rate.
The exporters has been hit by recession in major markets of the US, Europe and the Middle East, which together accounts to over 70 per cent of India's overseas sales.
Monday, April 27, 2009
Direct tax collection Rs 3.37 lakh crore
(27/4/2009 - Indian Direct tax updates) - The direct tax collection during the last fiscal year 2008-09 was to the tune of Rs 3.37 lakh crore against Rs 3.12 lakh crore in financial year of 2007-08, a top revenue official said on Monday.
"The tax collection was, however, short of budgetary estimates of Rs.3.45 lakh crore. Similarly, the indirect tax collection was Rs 2.65 lakh crore as against Rs 2.81 lakh crore in previous year, Secretary, Department of Revenue, New Delhi, P V Bhide told reporters.
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Bhide, who was here to attend the passing out of 61st batch of Indian Revenue Service (IRS) at the National Academy of Direct Taxes (NADT), said the cut in duty taxes reduced the indirect tax collection.
Speaking at the valedictory function of induction course of 61st batch, Bhide called upon the young officers to be honest and strive for tax administration while their primary responsiblity is tax collection.
Treat the income tax assessee as a client and not a criminal, he advised. The new tax code was being readied and would be brought in soon, he said.
Japanese economy to shrink 3.3 per in 2009 - Japan Govt
(Japanese economy updates) - Japan's economy is likely to shrink 3.3 percent this fiscal year, its worst contraction since World War II, the Cabinet announced Monday as it submitted a massive supplementary budget to finance a new stimulus package.
Exports and production are falling drastically, while employment conditions are rapidly worsening. Financing for businesses is also severe, and it is correct to say that Japan is in the middle of a financial crisis, Finance Minister Kaoru Yosano said in an address to the parliament.
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Yosano asked lawmakers to quickly pass the extra budget, which calls for a record 15 trillion yen ($155 billion) in government spending to finance a new stimulus package. The package is equivalent to about 3 percent of Japan's gross domestic product.
His remarks came after the Cabinet downgraded its forecast for Japan's GDP to a contraction of 3.3 percent for the current fiscal year through March 2010. It had previously predicted GDP would be flat for the period.
It also said the world's second-largest economy is likely to have shrunk 3.1 percent in the fiscal year that ended last month, worse than the previous estimate of a 0.8 percent contraction.
With the latest estimates, Tokyo now expects the two-year period to be the worst for the economy in the country's postwar history. The largest previous GDP contraction was 1.5 percent in 1998.
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In a statement released early Monday, the Cabinet said the stagnant global economy was hurting Japan's mainstay exports. But it said its economic measures would prevent Japan from getting caught in a downward spiral.
The Finance Ministry last week said Japan recorded its first annual trade deficit in 28 years in the just-ended fiscal year.
Japan has heavily relied on foreign sales of its cars and gadgets to drive economic growth, and is reeling from the collapse in global demand sparked last year by the U.S. financial crisis. Its economy shrank an alarming annual 12.1 percent in the October-December quarter, marking the steepest contraction since the oil shock of 1974.
The administration says the newest stimulus package will help protect the economy from slipping further while laying the foundation for future growth. It also provides support for the unemployed and small businesses.
The spending will also add to Japan's expanding public debt. Since Prime Minister Taro Aso took office in September, lawmakers have already approved two stimulus packages worth 12 trillion yen in fiscal spending.
source - www.economictimes.com
Thursday, April 23, 2009
Indian Inc's overseas investment slips 11 percent - RBI
(23/4 Indian Economy updates -the slowdown effect) - Facing the pangs of slowdown, India Inc appears to have restrained from overseas mergers and acquisitions as the country's foreign investment slipped by over 11 per cent during April-December 2008, says Reserve Bank.
"During the first nine months of 2008-09, 2,828 proposals amounting to $16,352 million were cleared for investments abroad in JVs (joint ventures) and WOSs (wholly owned subsidiaries), as against 1,595 proposals amounting to $18,437 million during the corresponding period of the previous year," the central bank said in its April Bulletin.
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Even though the number of proposals recorded an increase of 77.3 per cent, amount invested by India Inc on overseas ventures dipped by over 11 per cent during the period.
There were a total of 2,828 proposals during the first nine months of 2008-09 against 1,595 proposals in the corresponding period previous year.
"During the quarter, October-December 2008, proposals amounting to $7,409 million were cleared for investments abroad in JVs and WOSs, as against $7,882 million during October-December 2007, the RBI said.
Inflation rises to 0.26 percent - April 11
Indian inflation Updates April 2009 - Annual Inflation consisting Wholesale price index rose 0.26 per cent in the 12 months to April 11, above the previous week's annual rise of 0.18 per cent.
It was above a median forecast of 0.09 per cent in a poll of analysts. The annual inflation rate was 7.95 per cent during the corresponding week of the previous year.
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The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is released weekly.
Hmm so despite slowdown everywhere indian economy is showing growth signs as growth in inflation percent nearly shows that consumer spending has not been hit amid global economic crises , One reason for growth of indian economy is (according to me) is the black economy which runs in parallel in india but is not shown in the audit books of the firms, so atleast some advantage of black money in these crucial crises times.....
wait for the next post dedicated to "parallel black economy of india"
posted under - inflation 2009, indian inflation, inflation in april, april inflation updates, economy of india, indian economy updates
Monday, April 20, 2009
Indian Forex reserves at USD 252 billion
(20/4/2009 Indian Economy updates) - India's foreign exchange reserves stood at USD 252 billion as of end-March, declining by USD 57.7 billion over the previous year, the Reserve Bank said on Monday.
The RBI said in its Macroeconomic and Monetary Developments in 2008-09 said, the overall approach to the management of India's foreign exchange reserves in recent years reflects the changing composition of the balance of payments and the 'liquidity risks' associated with different types of flows and other requirements.
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"Taking these factors into account, India's foreign exchange reserves continued to be at a level consistent with the rate of growth, the size of the external sector in the economy and the size of risk-adjusted capital flows," RBI said.
posted under - economy of india, indian economy updates, indian forex reserves, RBI updates, indian economy blog, economy of india updates, forex updates, india forex reserves
