Search Result for : Core Sector Growth

The Dollar Business Bureau Eight core sectors of the economy witnessed a growth of 6.8% in the month of November 2017, mainly supported by a strong performance in sectors such as steel, refinery and cement, according to an official data. The combined index of eight core industries stands at 123.9 in November, 2017, which was 6.8% higher as compared to the index of November, 2016,” said a statement by the Ministry of Commerce and Industry. The cumulative growth of these infrastructure sectors was 3.9% during the April-November period the fiscal 2017-18 compared to 5.3% during the same period in the previous fiscal. The eight core industries - coal, refinery products, cement, crude oil, natural gas, fertilisers, electricity and steel - had recorded a growth of 3.2% in ...

By Abin Daya It’s more than a month after the implementation of GST and the wrinkles are slowly being ironed out. A tax reform on such a massive scale will definitely have teething troubles. As the experiences grow, and as pain points emerge, these will need to be met with and resolved on priority. One such issue that exporters have had is on exporting under Letter of Undertaking, LUT/Bond. While exporters were permitted to submit LUT or Bond to avoid payment of IGST and thereby reduce their working capital burden, there was no uniformity in understanding and implementation of the said requirement by the Field Officers. This led to significant confusion and difficulties for exporters. The Policy wing of GST has now issued ...

By Abin Daya Change is an unavoidable part of life - and of doing business. One of the biggest changes to the way we do business happened last Friday, with the rolling out of the GST. Yes, there will be disruptions in the short term and the cost of compliance will go up. Also, many small businesses will lose the tax arbitrage that enabled them to price below that of the larger companies. It will also increase the financing cost of business, particularly for those engaged in foreign trade. Speaking of financing, even that is not going to be easy. While credit growth is down because of low credit demand driven by the leveraged position of corporates combined with muted demand, even where businesses ...

By Abin Daya Before we start, just wanted to update on a few activities we are doing currently. The issues pertaining to EDPMS and the resultant caution listing of exporters have got a lot of attention recently. We are working with a number of exporters to resolve the issues that they have had with their bankers on settlement of Shipping Bills on EDPMS, and thereby successfully removing them from the caution list. We are also privileged to work with FIEO, India's apex body of Indian Export Promotion Organisations, to deliver a series of client education workshops to explain the workings of EDPMS, and the common issues that surround settlement of export bills. These workshops have so far been done in Chennai, Madurai and Guntur, ...

By Abin Daya It just might be that things are slowly falling in place for the Indian economy. The Nikkei Purchasing Manager’s Index for Manufacturing and Services has positive news, both in performance and sentiments. What we now need is better capacity utilisation leading to improvement in private investment. A good monsoon this year should create that. Some indication of that is also seen in the performance of the infrastructure industries during the month of March. Performance improved from 1% growth in Feb, to 5% growth in Mar, though it was far from the 9.3% growth achieved a year back. While growth for the full year improved from the previous FY, the fertiliser industry seems to have been badly affected. One topic that ...

The Dollar Business Bureau  Supported by the higher production of steel and coal, the eight core sectors in India grew by 5% in the month of March, a fastest growth in the past three months.  The rate of growth of eight infrastructure industries, i.e., steel, coal, natural gas, crude oil, refinery products, fertilisers, electricity and cement, was relatively low compared to 9.3% recorded in the same month last year. According to the data released by the government on Monday, coal production grew by 10% in the said month compared to 2.5% in the previous year.  The production of steel, both alloy and non-alloy, increased by 11% in March whereas it had increased by 7.8% in the same period in 2016.  ...

By Abin Daya It is very rare that you will find a month in which all the 8 core sector industries have had positive growth. No, it did not happen in Feb 2017; but it happened a year back – in Feb 2016! Before that it happened in 2010 – that too, three months in a row! In the case of Feb 2016, what made the month even more special was that 4 out of 8 core sector industries grew in double digits! Understandably, when something like that happens, you expect a significantly high rate of growth for the sector. Core sector grew at 9.4% in Feb 2016. Compare that with the core sector performance a year later, in Feb 2017. Such a ...

The Dollar Business Bureau The core sector has boasted a growth rate of 4.9% in the month of November 2016 over November 2015. Of the eight industries that account for 38% of the Indian industrial production, power (which also holds the highest weightage) seems to have saved the day with a 10.2% growth, April 2016 being the last time it achieved a higher growth rate (14.7%). Crude oil and natural gas have shrunk by 5.4% and 1.7% respectively, continuing the downward trend observed during the past few months. Cement (0.5%), steel (5.6%) and refinery products (2.0%) have performed dismally in comparison to October month’s growth numbers of 6.2%, 16.9% and 15.1% respectively. Coal takes the bright spot by sporting a growth of 6.4% after three ...