For the first time in 18 months, India has reported growth in export numbers. Exports in June grew 1.27% to $22.5 billion, a tad higher than $22.2 billion in 2015. Imports declined 7.33% to $30.6 billion from June 2015’s reading of $33.1 billion. Trade deficit, however, increased to $8.1 billion against May’s reading of $6.27 billion. Nearly 18 out of 30 sectors witnessed growth in exports with handicrafts increasing over 92% year on year.
In a bid to crack whip on the black money, Special Investigation Team (SIT) has advised to ban cash transactions above Rs 3 lakh and has also suggested to restrict individuals from holding cash balance of not more than Rs 15 lakh. Experts said that this move can impact short term sales, however, will benefit the economy in the long term
In a major boost to the India’s Current Account Deficit, gold imports fell nearly 48% in the first quarter of 2016 to $3.90 billion. The contraction of gold imports has helped India’s current account deficit to shrink to $8.11 billion against June 2015’s $10.82 billion. Government has also launch the fourth tranche of sovereign gold bond in a bid to check physical gold.
Gujarat has the highest share of 15.5 per cent in infrastructure projects with a total value of over Rs 1.6 lakh crore that are under operation in the public-private partnership (PPP) mode across India and is followed by Uttar Pradesh and Maharashtra (13 per cent each), Tamil Nadu (eight per cent) and Karnataka (seven per cent) in this regard. With regard to overall PPP projects, UP with 15 percent tops the table while Gujarat (10 %) is at 3rd place behind Maharashtra (12).
Rise in manufacturing goods and costlier vegetables have prompted the Wholesale Inflation (WPI index) to increase to 1.62% in June against May’s 0.79%. Wholesale food inflation was the main driver in the WPI index as it jumped to a 22-month high level. Increase in prices of potato and pulses by 64.48% and 26.61%, respectively, weighed on the index.
The International Monetary Fund (IMF) has slashed India’s GDP forecast for 2016 and 2017 by 0.1% to 7.4%. India has, however, managed to retain its tag of fastest growing economy in the world as China is expected to slowdown to GDP of 6.6% and 6.2% in 2016 and 2017. The slowdown came as IMF observed tepidness in economies across the globe.
Brexit woes coupled with capital flight from India and fall in the value of Indian rupee has prompted its forex balance to fall by $1.2 billion to $362 billion for the week ended July 8. RBI has continuously intervened the markets, flushing it with dollar reserves to stabilize the Indian rupee at Rs 66 levels.
Thanks to the launch of Make of India initiative, Foreign Direct Investments (FDI) has risen by 46% to $61.58 billion for the period between October 2014 and May 2016. Government, furthermore, is gradually opening up sectors in a bid to attract more investments and simplify the ease of doing business. Sectors which received maximum investment include services, trading, automobile and power.
Direct investments from Indian companies overseas dropped slightly by 3.2% to $1.86 billion in June 2016 from last year’s June reading of $1.92 billion. On the monthly basis, however, the drop is significant since the investment stood $ 2.69 billion in May 2016. Maximum investments were made through issuance of guarantees, loans and equities. Prominent investors include Tata Communications and Strides Acrolab.
India has started the process to make a panel which will only cater to activities related to WTO’s Trade Facilitation Agreement (TFA). While the panel will promote cooperation between authorities and stakeholders, TFA will simplify trade procedures and promote cross border trade which will reduce transaction costs and make business easy for traders.
Emami Agrotech, a part of the Emami group, will expand its edible oil manufacturing capacity to become the number two player in terms of production capacity in the country by 2018. Their present manufacturing capacity in edible oils is 4,000 tonnes per day (tpd) between Haldia and Andhra Pradesh plants. Post expansion, the capacity will rise to 8,000 tpd within 2018. The company was in the process of setting up a new plant near Kandla port in Gujarat. The Gujarat plant would have an initial capacity of 2,000 tpd.
Italian premium superbike maker MV Agusta, the manufacturers of world’s costliest regular superbikes, has announced its official entry in to Gujarat. Managing Director of the Indian subsidiary of the company MV Agusta India, Mr Ajinkya Firodia said that MV Agusta which makes various superbikes in the price range from Rs 17.70 lakh to Rs 50 lakh and engine power up to 200 BHP,with speed up to around 300 kmph has opened its first exclusive showroom in Gujarat here.
