We cannot do much about the global slowdown: PM
The economy was booming and the mood in Mumbai was exuberant. Double digit growth seemed eminently achievable. FDI and FII flows were rising rapidly. Government revenues were buoyant and the fiscal deficit was shrinking. The sense of optimism was all pervading. Times have changed since then. Following is an extract of the speech delivered by Prime Minister Manmohan Singh at the ET awards: Six years ago, I was here in Mumbai at an ET Awards function that celebrated 15 years of reforms. The global economy is under stress. Growth rates have slowed down everywhere. There is considerable uncertainty about the period over which growth will revive in the industrialised world. The Indian economy has also been affected by these developments. Our exports have shrunk and the fiscal deficit has gone up on account of a variety of factors. Growth decelerated to 6.5 per cent last year and may be only around 6 per cent in the current year. This has dampened investor sentiment. Doubts are being raised in some quarters about the India growth story going astray. Economies go through ups and downs and downturns do dampen spirits. However such downturns can have value if they make us focus on the weaknesses that are masked when times are good. India’s slowdown is partly because of the global downturn, but it is partly also because of domestic constraints which have arisen. We cannot do much about the global slowdown. Though, I dare say, we can certainly make a difference to the world if we do the right things at home to accelerate our own economic growth. But we can, and we must, correct our own weaknesses, and create new opportunities for economic growth and employment at home. This is the challenge before us. I assure you this will now remain the focus of our policy in the months ahead...Read More
Revolution of rising expectations a challenge: PM
Governance in cooperative banks lacks professionalism: RBI
The Ministry of Finance on Thursday has asked the Reserve Bank of India (RBI) to finalise guidelines for new bank licences and start accepting applications for the same pending passage of the Banking Laws (Amendment) Bill. Finance Minister P Chidambaram had written to the central bank on Thursday and urged it to finalise the guidelines and start receiving applications for new banking. The central bank last week said that the final guidelines will be issued and the process of inviting applications for setting up new banks in the private sector will be initiated only after the Banking Regulation Act is amended. In February 2010, the finance ministry had announced that the RBI would consider issuing fresh licences to private players and non-banking financial entities. In August 2010, the RBI released a discussion paper taking into account international practices and experience with private sector banks. The draft guidelines were released in August 2011, specifying the conditions relating to eligible promoters, minimum capital required, criteria for foreign shareholding, business model, desirable corporate structure and governance standards of the applicant group.
FM to meet state CMs, banks: reports
IIP for September contracts 0.4%
The Quick Estimates of Index of Industrial Production (IIP) with base 2004-05 for the month of September 2012 have been released by the Central Statistics Office of the Ministry of Statistics and Programme Implementation. IIP is compiled using data received from 16 source agencies viz. Department of Industrial Policy & Promotion (DIPP); Indian Bureau of Mines; Central Electricity Authority; Joint Plant Committee; Ministry of Petroleum & Natural Gas; Office of Textile Commissioner; Department of Chemicals & Petrochemicals; Directorate of Sugar; Department of Fertilizers; Directorate of Vanaspati, Vegetable Oils & Fats; Tea Board; Office of Jute Commissioner; Office of Coal Controller; Railway Board; Office of Salt Commissioner and Coffee Board. The General Index for the month of September 2012 stands at 163.6, which is 0.4% lower as compared to the level in the month of September 2011. The cumulative growth for the period April-September 2012-13 over the corresponding period of the previous year stands at 0.1%. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of September 2012 stand at 114.8, 174.7 and 149.7 respectively, with the corresponding growth rates of 5.5%, (-)1.5% and 3.9% as compared to September 2011 (Statement I).
The cumulative growth in the three sectors during April-September 2012-13 over the corresponding period of 2011-12 has been 0.0%, (-) 0.4% and 4.6% respectively. In terms of industries, twelve (12) out of the twenty two (22) industry groups (as per 2-digit NIC-2004) in the manufacturing sector have shown positive growth during the month of September 2012 as compared to the corresponding month of the previous year (Statement II). The industry group ‘Publishing, printing & reproduction of recorded media’ has shown the highest growth of 16.5%, followed by 14.3% in ‘Wearing apparel; dressing and dyeing of fur’ and 7.5% in ‘Coke, refined petroleum products & nuclear fuel’. On the other hand, the industry group ‘Office, accounting and computing machinery’ has shown a negative growth of 30.7% followed by 23.6% in ‘Tobacco products’ and 19.4% in ‘Electrical machinery & apparatus n.e.c.’...Read More
What is IIP?
Construction sentiment in India continues to remain buoyant: RICS Survey
According to the latest RICS India Construction Market Survey for Q3 2012, workloads in the sector continue to rise despite the slowdown in the wider economy. The survey results indicate that sentiment remains relatively upbeat for both the private housing and private industrial sectors; however sentiment has turned negative for public non-housing segments. Additionally, workloads in energy and oil and gas, edged lower for the second consecutive quarter. Interestingly, the all-important infrastructure sector is continuing to witness growth, albeit at a more modest pace than in the previous quarter of the year. Also, the RICS India Construction Survey which has been designed to capture the sentiment of professionals working in the sector indicates that respondents are fairly upbeat on the prospects of workloads, employment and profit margins in the coming year. In fact, 97% of the respondents anticipate an increase over the next twelve months on workloads, with growth expected to average between 7.5 and 10%. The projected gain in employment in the sector over the same period however, is a little more modest at 2.5 to 5%. Not surprisingly given the strength of workloads in the present quarter and what is expected ahead, shortages of skilled labour continues to be a key factor limiting construction activity in the country at present. Responses to the survey indicate that skills shortages were visible across all fields including quantity surveyors, other construction professionals and also semi-skilled workers such as bricklayers, plasterers, plumbers, carpenters, and electricians. In fact 90% of the respondents, much similar to the Q2 results of the survey indicated that shortage of labour and financial constraints were the most prominent factors limiting construction activity in the country, followed closely by planning and regulatory challenges. Other factors holding up construction activity have been attributed to insufficient demand, weather conditions, shortage of materials and completion issues...Read More
Petrol prices cut by ~Re1/lt
Oil marketing companies have reduced the price of petrol by 95 paise per litre with effect from midnight. Reports stated that Petrol prices were last revised on October 27 when they were raised by 29 paise (to Rs. 68.19 per litre in Delhi) after the government increased the commission paid to petrol pump dealers.
Reliance Petro short selling: CIC asks details from SEBI
RIL denies allegations made by IAC
ONGC Videsh to restart crude production: reports
Inflation up a tad at 9.75%
Inflation based on the consumer price index was at tad higher at 9.75% in October as against 9.73% in September. The rise came as prices of sugar, pulses and vegetables gained. Sugar became costlier by 19.61% yoy. Prices of pulses jumped by 14.89% and vegetables became costlier by 10.74%. The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation releases Consumer Price Indices (CPI) on base 2010=100 for all-India and States/UTs separately for rural, urban and combined every month with effect from January, 2011. Provisional indices for the month of October 2012 and also final indices for September 2012 are being released with this note for all-India and for States/UTs. All India provisional General (all groups), Group and Sub- Group level CPI numbers of October 2012 for rural, urban and combined are given in Annex I. The General Indices for rural, urban and combined are 126.7, 122.6 and 124.9 respectively.
Provisional annual inflation rate based on all India general CPI (Combined) for October 2012 on point to point basis (October 2012 over October 2011) is 9.75% as compared to 9.73% (final) for the previous month of September 2012. The corresponding provisional inflation rates for rural and urban areas for October 2012 are 9.98% and 9.46% respectively. Inflation rates (final) for rural and urban areas for September 2012 are 9.79% and 9.72% respectively. Inflation for specified categories is indicated at Annex II. State/UT-wise General provisional CPI numbers for rural, urban and combined are at Annex III. Price data are collected from selected towns by the Field Operations Division of NSSO and from selected villages by the Department of Posts. Price data are received through web portals being maintained by the National Informatics Centre. Prices of oils and fats increased by 18.69% in rural areas while it increased by 16.27% in urban areas. Vegetables became costlier by 13.71% yoy in rural areas while in urban areas the increase was 4.16%.
More than 70% of workers lack unemployment protection
More than 70% of workers worldwide have no statutory access to unemployment insurance or any type of unemployment assistance, the International Labour Organization (ILO) said. Unemployment insurance schemes exist in 72 countries out of 198 monitored by the ILO, most of them being middle- and high-income countries. The proportion of unemployed workers without any such income security is even higher (86 per cent) if one includes those who haven’t paid social security contributions long enough to qualify for unemployment benefits, as many unemployment insurance schemes are based on contributions. "This means that more than 86 per cent of the almost 40 million people who dropped out of the labour market since 2008 found themselves without a regular income from one day to the other," says ILO social protection expert Florence Bonnet. Young people are particularly affected. If they become unemployed after a short period of having entered the labour market, then they might not have paid into social security long enough to qualify for unemployment benefits. Only 16 countries provide income support for unemployed young people as first-time jobseekers. Unemployment social security coverage varies widely between world regions. The proportion of unemployed receiving unemployment benefits can be as high as 80 per cent or more in Western Europe, North America, and Central and Eastern Europe, while it can drop to less than 10 per cent in Africa. It is less than 40 per cent in Latin America and the Caribbean, and less than 20 per cent in the Middle East and Asia. In fact, these variations reflect the different shares of employees in formal employment as a proportion of the total employment...Read More
Monster Employment Index India rises 13% YoY
Investments in disaster risk management essential to sustaining growth: ADB
The growing incidence of natural disasters in Asia and the Pacific where four of five cities globally classified as at extreme risk are located threatens to undermine seriously rapid economic progress, calling for a much stronger focus among governments on disaster prevention, says a new study from Independent Evaluation at the Asian Development Bank. The region has borne the brunt of the physical and economic damage of the sharp rise in natural disasters since the 1980s. Its people are four times more likely to be affected by natural disaster than in Africa and 25 times more than in Europe or North America. With 25% of the world’s gross domestic product, the region accounted for 38% of the economic losses due to natural disasters during 1980–2009. The study ADB’s Response to Natural Disasters and Disaster Risks calls for projects and programs to put a far greater emphasis on improving disaster prevention. Much wider recognition is needed of the fact that natural disasters, particularly storms and floods, are becoming endemic and that their increasing frequency and severity can slash economic growth and development. "We have thought for too long that natural disasters come and go, that they are just an interruption to development, and that they can be dealt with after they strike," says the Director General of Independent Evaluation, Vinod Thomas. "However, there is growing international recognition that the incidence and impact of natural disasters are increasing because of persistent poverty, population growth, and climate change."
In its review of ADB’s disaster-related projects and programs, the study notes that disaster prevention accounted for one-third of investment, compared with two-thirds spent on disaster recovery. Yet, by some measures, one dollar invested today in reducing disaster risk saves at least four dollars in future relief and rehabilitation costs. The independent evaluation study finds that ADB’s disaster-recovery projects have been much more successful than ADB-supported projects overall. But many of them had the limited objective of restoring particular types of infrastructure, rather than rehabilitating livelihoods, or increasing disaster resilience. So far, very few countries have focused on the disaster risks in their economic development plans. Member country governments and ADB must do more to highlight the need for investment in disaster prevention, not just in infrastructure, but also in relation to social development. During 1995–2011, ADB provided funding of $10.37 billion for 264 natural disaster interventions, including 104 loans for $8.55 billion. A special review of ADB’s disaster response programs in Bangladesh, Indonesia, and Pakistan finds several areas where ADB and the rest of the development community could improve both disaster response and preparation. In Bangladesh, for example, ADB has been efficient at renovating damaged roads and bridges. But it can support the proactive and successful disaster management programs the government has implemented. These programs have dramatically lowered deaths in this disaster-prone delta-region caused by regular, powerful cyclones. In a storm in 1997, for example, 111 were killed in contrast with 300,000 people in a similar storm in 1970...Read More
Mumbai, Chennai among highest climate change risks: Maplecroft
Multinational companies operating in the Asian growth economies will be exposed to spiralling environmental risks over the coming decades, according to Maplecroft’s 5th annual Climate Change and Environmental Risk Atlas, which identifies Dhaka, Manila, Bangkok, Yangon, Jakarta, Ho Chi Minh City, Kolkata Mumbai and Chennai as the ten cities facing the most risk from the onset of climate change. Maplecroft’s Climate Change Vulnerability Index (CCVI), which forms a central pillar of the Atlas, classifies seven cities as ‘extreme risk,’ out of a list of 50 that were chosen for their current and future importance to global business. Dhaka, Bangladesh, (ranked 1st), Manila, the Philippines (2), Bangkok, Thailand (3), Yangon, Myanmar (4), Jakarta, Indonesia (5), Ho Chi Minh City, Viet Nam (6) and Kolkata, India (7) emerged as the most at risk from the changing temperatures and weather systems that are forecast to take hold in the coming years. The Indian cities of Mumbai (8) and Chennai (9), along with Lagos (10) in Nigeria complete the ten cities most at risk. The CCVI has been developed by Maplecroft to identify risks to populations, company operations, supply chains and investments in 197countries down to a level of 25km². It evaluates exposure to climate related natural hazards; the sensitivity of populations; development; natural resources; agricultural dependency; research and development; government effectiveness and education levels.
Asian growth economies posing long-term risks to business
With strong economic growth of above 5% forecast for countries such as the Philippines, Viet Nam, Indonesia and India in the next few years, the relevance of climate change to populations and business in the major commercial centres should not be underplayed, states Maplecroft in its analysis...Read More
Migraines suffered women want a better understanding of migraine triggers: Survey
New study finds alpha linolenic acid offer protective effects on cardiovascular diseases
INDIA INC. REPORT CARD
DLF Q2 cons net profit at Rs1.39bn
DLF Limited, India’s largest real estate company, recorded consolidated revenues of Rs 2,157 crore for the quarter ended September 30, 2012, a decrease of 7% from Rs 2329 crore in Q1 FY13. EBIDTA stood at Rs 864 crore, a decrease of 28% as compared to Rs 1198 crore in Q1FY13. Net profit is Rs 139 crore, as compared to Rs 293 crore in Q1FY13. The non-annualised EPS for the quarter was Rs 0.81. The Company has made significant strides in achieving its business objectives built around net debt reduction, delivery of all past committed volumes and enhancing product mix through launches of higher margin products. In order to achieve this, the Company has completely re-tooled its business model and putting in place the ‘best in class’ project management and construction agencies. The large rental portfolio of the company continues to perform well with better rental realizations. However the leasing volumes remains muted due to overall economic conditions. The closing of the Jawala transaction (sale of NTC Mills land, Mumbai) represents a major milestone in the Company’s debt reduction objective and will be fully reflected in the Q3 of the current fiscal year. The Company continues to make steady progress on the balance divestments which include Aman Resorts and Wind businesses and is very confident of their closure within the FY13 and achieve net debt reduction to Rs. 18,500 cr.
Dell, Henkel, Adhunik Metalik, DLF, Hindustan Tin Works, Gayatri Projects, Wockhardt, Sinclairs Hotels, Damco, Air Arabia, GMR Infra, Orient Green Power, Pipavav Defence, Spicejet , Rajesh Exports, Shri Lakshmi Cotsyn, Opto Circuits, Vodafone India, Cox & Kings
Biocon enters into agreement with Bristol-Myers Squibb
Biocon has entered into an option agreement with Bristol-Myers Squibb Company for Biocon’s IN-105, a prandial oral insulin product candidate. Under the terms of the agreement, Bristol-Myers Squibb will have the right to exercise an option to obtain an exclusive worldwide license to the program. Biocon will conduct clinical studies to further characterize IN-105’s clinical profile according to a pre-agreed development program up to the completion of Phase II. If Bristol-Myers Squibb exercises its option to license IN-105 following the successful completion of the Phase II trial, Bristol-Myers Squibb will assume full responsibility for the development program, including all development and commercialization activities outside India. Biocon will receive a license fee in addition to potential regulatory and commercial milestone payments and royalties on commercial sales of IN-105 outside India. Biocon will retain exclusive rights to IN-105 in India. Ms. Kiran Mazumdar-Shaw, MD and Chairman of Biocon, said: "This agreement is one huge step closer to realizing the dream of bringing oral insulin to market. We are excited to extend the excellent relationship we already enjoy with Bristol-Myers Squibb, and look forward to working closely with them to make this a reality." Diabetes is a chronic disease that affects about 350 million people worldwide. Long-term complications of diabetes include cardiovascular complications, peripheral vascular disease (leading to and including amputation), kidney failure, and other chronic diseases. It is estimated that the direct and indirect costs of diabetes to the overall healthcare system amount to over $650 billion worldwide.
Early marriage remains a challenge for many PPD countries: Ghulam Nabi Azad
Partners in Population and Development (PPD) is an intergovernmental initiative created specifically for the purpose of expanding and improving South-to-South collaboration in the fields of reproductive health, population, and development. PPD was launched at the 1994 International Conference on Population and Development (ICPD), when ten developing countries from Asia, Africa and Latin America formed an intergovernmental alliance to help implement the Cairo Program of Action (POA). PPD has presently 25 members countries committed to the implementation of the ICPD Programme of Action, willing to provide political, technical and financial support to South-South Cooperation. While there were only 10 developing countries at the time of formation of the Organization in 1994, over the years PPD’s membership has increased to 25 developing countries across Asia, Middle East and North Africa, Sub-Saharan Africa and Latin America covering more than 57% of total world population. The PPD member countries are: Bangladesh, China, India, Indonesia, Pakistan, Thailand, Viet Nam, Colombia, Mexico, Egypt, Morocco, Tunisia, Yemen, Jordan, Ethiopia, The Gambia, Ghana, Kenya, Mali, Uganda, Benin, Senegal, Zimbabwe, South Africa and Nigeria. PPD is currently chaired by Shri Ghulam Nabi Azad, Minister of Health and Family Welfare, Government of India, who has been unanimously elected to the post in the 16th Annual Board Meeting of PPD held in Pretoria, South Africa in 2011. Shri Ghulam Nabi Azad, Minister of Health and Family Welfare, Government of India, who is currently on an official tour to Bangladesh capital Dhaka, today participated in the opening session of the two-day International Conference on "Evidence for Action: South-South Collaboration for ICPD beyond 2014", organized jointly by Partners in Population and Development (PPD) and the Government of People’s Republic of Bangladesh...Read More
India’s exports during Oct '12 at US$ 23.24bn
Exports (including re-exports)
India’s exports during October, 2012 were valued at US$23246.91mn (Rs. 123264.20 crore) which was 1.63% lower in Dollar terms (5.89% higher in Rupee terms) than the level of US$23632.02mn (Rs. 116406.37 crore) during October, 2011. Cumulative value of exports for the period April-October 2012 -13 was US$166922.57 mn (Rs 908340.19 crore) as against US$177915.69mn (Rs 814708.35 crore) registering a negative growth of 6.18% in Dollar terms and growth of 11.49% in Rupee terms over the same period last year.
India’s imports during October, 2012 were valued at US$44208.35mn (Rs.234409.93 crore) representing a growth of 7.37% in Dollar terms and 15.58% in Rupee terms over the level of imports valued at US$41175.06mn ( Rs. 202819.70 crore) in October, 2011. Cumulative value of imports for the period April-October, 2012-13 was US 277135.48mn (Rs. 1507202.58 crore) as against US$284721.27mn (Rs. 1304631.60 crore) registering a negative growth of 2.66% in Dollar terms and growth of 15.53% in Rupee terms over the same period last year.
Crude Oil and Non-Oil Imports:
Oil imports during October, 2012 were valued at US$14785.3mn which was 31.61 % higher than oil imports valued at US$ 11234.3mn in the corresponding period last year. Oil imports during April-October, 2012-13 were valued at US$ 95569.0mn which was 9.99% higher than the oil imports of US$86887.7mn in the corresponding period last year. Non-oil imports during October, 2012 were estimated at US$29423.1mn which was 1.73% lower than non-oil imports of US$29940.8mn in October, 2011. Non-oil imports during April - October, 2012-13 were valued at US$ 181566.5mn which was 8.22% lower than the level of such imports valued at US$ 197833.6mn in April - October, 2011-12...Read More
India’s Foreign Trade: October, 2012
Outlook of India Economy "Cautiously Optimistic": CII Voice of CFO Survey
Voice of Indian CFO Survey is an initiative undertaken by Confederation of Indian Industry's CFO Forum, with the support of McKinsey & Co. The survey provided an insight into the thinking & current beliefs of the leading CFOs of India Inc about various global and Indian economic issues, regulatory environment and about their own business in general. 32 CFOs from leading Indian companies across sectors including Manufacturing, IT services, Consultancy and Financial Services participated in the survey.
Key insights of Survey includes:
Global growth rate expected to be flat; concern over impact of key global events on the Indian economy