Category — Politics

India is U.S.’s 9th Largest Trading Partner

India is currently our 9th largest goods trading partner with $67.7 billion in total (two way) goods trade during 2016. Goods exports totaled $21.7 billion; goods imports totaled $46.0 billion. Add in services and the number exceed $100 billion.

Exports

  • India was the United States’ 18th largest goods export market in 2016.
  • U.S. goods exports to India in 2016 were $21.7 billion, up 1.1% ($237 million) from 2015 and up 124.2% from 2006.
  • The top export categories (2-digit HS) in 2016 were: precious metal and stone (diamonds) ($7.0 billion), machinery ($2.0 billion), optical and medical instruments ($1.3 billion), mineral fuels ($1.2 billion), and electrical machinery ($1.2 billion).
  • U.S. total exports of agricultural products to India totaled $1.3 billion in 2016, our 21st largest agricultural export market. Leading domestic export categories include: tree nuts ($522 million), cotton ($250 million), pulses ($144 million), fresh fruit ($72 million), and planting seeds ($32 million).
 US Agricultural Exports to India, 2016India offers promising export growth prospects for U.S. agriculture with a large and rapidly expanding middle class, rising disposable incomes and shifting consumption patterns toward higher-value agricultural commodities. India’s imports of U.S. agriculture have been growing, particularly consumer-oriented agricultural goods, where products have made major headway.

May 17, 2017   No Comments

Norway Increases Investments in India

According to Norwegian Ambassador to India Nils Ragnar Kamsvag, ” The simplified Goods and Services Tax is a good example of India speeding up its economic reforms process. We are very upbeat about seeing India take such measures, as these will help not only India emerge as a very strong economy in the world, but give a boost also for Norway’s trade relations with India. GST is another milestone in strengthening India’s economic position globally.”

Picture of Nils Ragnar Kamsvåg

Nils told the Economic Times that Norway’s sovereign wealth fund, the world’s biggest such fund, is willing to increase exposure in India. The value of this fund rose to a record 8 trillion Norwegian crowns ($935 billion) in the first week of May this year.

The fund, run by a unit of the central bank, invests proceeds from Norway’s oil and gas industry in foreign stocks, bonds and real estate, and is now worth more than 2.5 times the country’s annual GDP. Over the last three years, the Norwegian government took policy initiatives to increase investments by its Government Pension Fund Global in India, to approximately $9 billion.

May 14, 2017   No Comments

PMI Data, Fitch Affirm India’s Economy Momentum

Fitch’s reading of India’s economic outlook, and its projection of 7.7 per cent growth in 2017-18 and 2018-19, against 7.1 per cent last year, is an affirmation of India’s positive economic growth. Even though Fitch retained India’s sovereign ratings at BBB- with a stable outlook, it expressed confidence that the business environment is likely to gradually improve with the implementation and continued broadening of the government’s structural reform agenda.

Business Line reports that Fitch lauded the measures such as the Insolvency Code, relaxation in the foreign direct investment regime and the soon-to-be rolled-out GST. It also said that efforts to rein in inflation are now bearing fruit and India is also less vulnerable to trade shocks due to its more domestically based economy and strong external finances.

Rupee Notes

The Nikkei India Manufacturing Purchasing Managers’ Index stood at 52.5 in April, the same level as in March. The rate of growth of new orders was at a six-month high in April and output increased in each of the three monitored sectors, led by consumer goods.

“Buoyant domestic demand coupled with sustained growth of new orders from abroad boosted the upturn in total new business… in April,” said Pollyanna De Lima, economist at IHS Markit and author of the report.

De Lima said the outlook appeared encouraging, with output expected to remain on an upward trajectory amid reports of planned capacity expansions, new product launches, aggressive marketing campaigns and an improving economic scenario.

 

 

May 9, 2017   No Comments

India to Export Fertilizers by 2021

India has drawn up an $8.7 billion plan to revive inoperative fertilizer plants and set up gas import and pipeline facilities in eastern India in a bid to become an exporter of urea(a chemical nitrogenous fertilizer) by 2021. The project includes building a 1,590-mile pipeline, the revival of four urea plants in the northern Uttar Pradesh state, eastern Jharkhand, Bihar and Odisha states, and building a liquefied gas import facility.

Spraying Fertilizer

Reuters reports that India produced 24.2 million tons of urea in 2016-17, while importing about 5.4 million tons of its fertilizer needs; the revived plants are projected to increase the annual urea production capacity by 7.5 million tons, said Ananth Kumar, India’s Minister in charge of fertilizers. He added, “From an importing country, we will become an exporting country. For food security, we need fertilizer security.”

 

May 5, 2017   No Comments

Forbes List Adds a Billionaire from India Each Month

The number of Indians on the Forbes billionaire list rose to 101 from 84 in 2016, and Fakhri Ahmadov, managing director at Ahmadoff & Company, a U.K. based wealth advisory firm, says,  “Eevery 33 days brought a new Indian billionaire to the list last year.”

Forbes says India had 36 billionaires in 2005;  55 billionaires in 2010; and by 2016 India added 46 billionaires or roughly eight new one-percents per year since 2011. Between 2005 and 2016, India’s economy rose 170% while the world economy gained around 30%.

The healthcare and pharmaceuticals sectors added 10 business founders to the FORBES billionaires list in the last seven years, more than any industry in India. Retail added another seven billionaires during that period, Ahmadov said in a report dated April 8.

Billionaire Status

The reasons for this phenomenon are:

  • Fast economic growth in consumer retail goods
  • Redistribution of wealth along billionaire family lines
  • Increased penetration of the banking system
  • Increase foreign direct investment both in the physical economy and corporate equity

 

May 2, 2017   No Comments