Cabinet’s approval to the consortium of Indian oil sector companies earlier this week to acquire stake in assets abroad highlights India’s continued need to secure reserves overseas. The stake is a small fraction of India’s total needs, yet an important step involving sizable investment of over Rs 21,000 crore. Other than the addition to India’s total oil … Continue reading Towards Energy Security – India’s Oil Hunt..!
The World Economic Forum’s Global Competitiveness Index (GCI) rank at No 39 is a great news for India and government’s ceaseless efforts to improve the business climate. This is the second consecutive year of improvement, incidentally, with climb of 16 ranks in both years. The ranking carries considerable significance as this is the most comprehensive index comparing … Continue reading The Giant Leap for India..!
India’ decision to ratify the Paris Agreement on reducing global warming is an important development, though, just the beginning of a long drawn exercise. The agreement reached in Dec last year aims to restrict the increase in global temperature to “well below 2 degree” and “close to 1.5 degrees” above pre-industrial level (1880). While the agreement is not … Continue reading Paris Agreement and India’s Commitment – A brief..
The merger of Rail budget with the Union budget after almost a century can be compared to the merger of a subsidiary with the parent company. However whether it remains a bureaucratic move or helps in terms of operational efficiency would become clear in the medium term only. The merger would, however, help in reducing the complexity … Continue reading Rail Budget "Merger".! What does it mean??
Release of balance of payment figures for quarter ended June’16 by RBI today brings some good news for the external sector. Even though net addition to foreign exchange is lower, performance on current account, particularly non-oil trade records an improvement over last year. Major features are: Current Account – Only a marginal decline of 0.2% … Continue reading International Trade – Q1’17 Performance..
Among the major stages in the evolution of power sector is establishment of Power Exchanges in 2008. The absence of a trading platform, or a market place, for electricity was a basic drawback which hindered the development of electricity market. Before the formation of exchanges, power was sold/purchased through bilateral agreements, mostly long term PPAs … Continue reading Towards Efficient Electricity Market… (Part 2)
Tata Group Chairman, Mr Cyrus Mistry’s statement last week broaching the issue of exiting businesses brings the 150 year old behemoth at a crossroad. The statement seems to mark a shift in group’s strategy from expansion/acquisitions to consolidation as driver of growth. None of the chairman had openly talked about the need to trim down the portfolio so … Continue reading Tata Group – Reading Cyrus Mistry’s mind..!
The merger of Reliance Communications with Aircel adds to the list of industries witnessing significant consolidation. Other recent ones are Cement with buy-out of Jaiprakash Associates’ by Ultratech and a number of buy-outs in Power sector. Globally, the scenario is even more pronounced with deals in the range of $ 20-30 bn being a common occurrence. So what drives … Continue reading Consolidation in Industries – What drives it..??
After years of decline, Corporate investment appears to be readying for a take-off as per a report released by RBI. Aggregate loan sanctioned by banks and financial institutions (FIs) during FY16 rose nearly 10% to Rs 95,000 crore. The figure had been steadily declining since FY10 when it stood at a staggering Rs 5.6 lakh crore. Even though … Continue reading Corporate Investment – Is there a turnaround.??
Japan adopted Negative Interest Rate Policy (NIRP) earlier this year after other monetary tools failed to spur economy and bring it out of deflation. Rather than having the desired effect, NIRP has actually had an opposite impact on some of the economic variables so far. Yet, Japan’s Central Bank has expressed its commitment to the policy to be … Continue reading Explaining Negative Interest Rate – Japan’s case..