From the economy and policymakers’ perspective, a parameter worth considering other than employment per unit of capital is value being added per unit of capital by different sectors. And the result on the second count is quite unusual as the survey shows a negative correlation between capital employed and GVA (gross value added) per unit of capital. … Continue reading Survey of Indian Industries – Part II
Ministry of Statistics, Planning and Implementation (MOSPI) released its annual survey of Industries for the year 2013-14 sometime back. It is the most comprehensive and largest field based survey that covered nearly 65,000 factories out of a total of 1.87 lakh factories. Even though the data set doesn’t generate much interest in the mainstream media, it remains … Continue reading Survey of Indian Industries – The government paper.. (Part I)
Lanco Infratech has been in the news for financial losses, stuck projects and numerous discussions with the lenders for debt restructuring. Another infrastructure sector, debt heavy company falling prey its high risk strategy with the change in market conditions.. Lanco is primarily engaged in EPC (Engineering, procurement and construction) and Power Generation sector. The … Continue reading Lanco Infratech – Another house of Debt..
- Britain wakes up to the news of ‘Brexit’ with a narrow 51.9 – 48.1% vote..! The exit, specially in the backdrop of polarized election campaign in the US, seems to indicate growing isolationism the world around, shrugging off the economic costs. Even though the Brits leave with an awareness of certain pain of departure, the pain could be more severe and last longer than being assumed. Markets across the world including India react with shock. Pound falls by more than 10% before recovering partially. British Prime Minister, a supporter of staying-in, says he would not be the right person to lead the country through this transition and would step down by October. The unsettling questions now is – Can this trigger further exits within EU. (More on this – https://indiaeconomyandbusiness.com/2016/06/22/brexit/)
The government has cleared the proposal for another round of spectrum auction for telecom sector. While the last round fetched about Rs 1.1 lakh crore, this round is much bigger, expected to fetch more than Rs five lakh crore. The entire discussion around spectrum, its use, cost etc are rather complicated questions. A brief attempt to simplify the same.. … Continue reading Telecom Spectrum Auction – What do we know..?!
Imagine a country called “United States of Europe”..! Imagine all the EU (European Union) countries gradually letting go of their task of governing themselves in favour of a centralized body, to be called Central Government currently the EU Parliament. And… Can we imagine Britain being a part of such a country..?? This is crux of … Continue reading Brexit… To leave or not to leave..!
In terms of net trade balance, different categories have vastly different share and therefore, criticality in maintaining the BoP. The shares are – Trade in Goods. ( -12.7%) Services. (6.8%) Transfers. (6.2%) Income from investments. (-2.4%) Total Current Account deficit (-2.2%) This means, even with lower share in total trade, services and transfers account for … Continue reading Balance of Payment – Part II
RBI released the Balance of Payment data for the year 2015-16 earlier this week. Even though the exports have come down, trade deficit came down from $ 145 bn in FY15 to $ 130 bn this year providing some relief to the balance of payment situation. The deficit has come down mainly because of lower … Continue reading Analyzing India's Balance of Payment – (Part I)
- Inflation figures for May’16 released. CPI based inflation rose to 5.76%, second consecutive month of increase after witnessing moderation till March’16 primarily due to increasing food prices. Similarly, WPI based inflation also rose to 0.79%, second month of increase after remaining in the negative zone for more than a year. It may be noted that RBI kept its policy rates constant last week due to fear of rising inflation.
The Union Cabinet today approved the much awaited Civil Aviation Policy, the first comprehensive policy for aviation since Independence..! The policy seeks to take aviation to the next level of the pyramid (if not to the bottom.!), to tap potential provided by smaller towns in overall economic development. The policy thrust is loosely comparable to … Continue reading Civil Aviation Policy – A brief…