Indian Economy : News,Discussions & Updates

Gautam

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Feb 16, 2019
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To End Key Agrochemicals’ Import From China, India To Produce Them Domestically

by Swarajya Staff
Oct 12, 2020 12:56 PM
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Representative image (Wikimedia Commons)

Snapshot​

  • These chemicals, calcium nitrate and boronated calcium nitrate, had been imported until now, mainly from China.

As part of Atmanirbhar Bharat (self-reliant India) and Atmanirbhar Krishi (self-reliant farming), India has begun producing its own version of key agrochemicals calcium nitrate and boronated calcium nitrate.

These chemicals, which are key for the growth of plants and for resisting diseases, had been imported until now, mainly from China. From now on, Gujarat State Fertilizers and Chemicals (GSFC) will be manufacturing these chemicals.

Interestingly, this development comes on the heels of GSFC having imported 4,600 tonnes of these chemicals and sold them to farmers in the country.

The development also comes within 10 months of the Gujarat Agro Industries Corporation (GAIC) having made a test launch of water-soluble fertilisers, including calcium nitrate, imported from China.

Then, GAIC Chairman and Bharatiya Janata Party member of Gujarat Assembly, Madhu Shrivastav, said that the corporation had imported 300 tonnes to sell the chemical to farmers at prices 5-10 per cent lower than what was prevailing in the market.

He also said that the imports could be scaled up to 3,000 tonnes. But relations, including bilateral and trade, between India and China have deteriorated following a border dispute at Ladakh.

The Narendra Modi government had come out with Atmanirbhar Bharat to help the economy recover after it was affected by the onset of coronavirus (Covid-19) pandemic. The government had announced a Rs 20 lakh crore stimulus under the programme.

Under Atmanirbhar Krishi, the Modi government has come up with agricultural reforms allowing farmers full freedom to sell their produce to buyers of their choice, enter into contract farming and sell without worrying about any stock limit for essential commodities, which has been removed.

Union Minister of State for Chemicals and Fertilisers, Mansukh Mandaviya, who formally launched the indigenous variety calcium nitrate and boronated calcium nitrate, said it was a decisive step towards Atmanirbhar Bharat and Atmanirbhar Krishi.

GSFC has launched both these chemicals at retail outlets from Solan in Himachal Pradesh and Bhavnagar in Gujarat.

GSFC, in which the Gujarat state government has a stake, has a capacity to produce 10,000 tonnes of these chemicals. Production will likely be raised by another 50 per cent in three months time.

GSFC officials told Mandaviya that the company will be raising its capacity to 30,000 tonnes by this time next year. A feature of these agrochemicals being produced in the country is that they will be made available at a price far lower than imported ones.

The indigenous varieties of calcium nitrate and boronated calcium nitrate have been certified by the Department of Fertilisers.

If the indigenous production succeeds, then India would be able to save foreign exchange to the tune of at least Rs 225 crore, that was spent on purchasing these chemicals.

Currently, India imports 1.25 lakh tonnes of these chemicals with 76 per cent of it being sourced from China. Other imports are from countries such as Norway, whose Yarra Chemicals markets this, and Israel.

Calcium nitrate is used as a water-soluble fertiliser in agriculture. In addition, it is also used in wastewater treatment and increasing the strength of cement concrete.

Calcium nitrate helps in improving crops size, strength, appearance and increasing yield.

These chemicals strengthen cell walls. It is popular in the greenhouse and hydroponics, besides for uses of controlling certain plant diseases.

 

randomradio

Senior Member
Nov 30, 2017
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USA is down only by - 4.8 %?? For March to June quarter, GDP growth was -31.4% !!

Perhaps they think America's recovery phase will start sooner. I suppose we will know soon enough.

New projections are forecasting U.S. GDP to grow by around 20% on an annualized basis in the third quarter, as activity ramps back up following coronavirus-related lockdown measures that devastated the economy through the first two quarters of the year.

Morgan Stanley is currently predicting a 21.3% spike in GDP this quarter, while financial data provider IHS Markit is estimating a 20.1% increase in the third quarter. Economists at S&P Global Ratings, meanwhile, forecast a jump of anywhere from 18% to 22%—depending on what kind of compromise Republicans and Democrats on Capitol Hill are able to reach on a new stimulus package. And the Federal Reserve Bank of Atlanta recently bumped up its third-quarter growth projections from less than 12% to more than 20%, on the strength of new manufacturing data.
 

Bali78

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Dec 26, 2017
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Perhaps they think America's recovery phase will start sooner. I suppose we will know soon enough.

New projections are forecasting U.S. GDP to grow by around 20% on an annualized basis in the third quarter, as activity ramps back up following coronavirus-related lockdown measures that devastated the economy through the first two quarters of the year.

Morgan Stanley is currently predicting a 21.3% spike in GDP this quarter, while financial data provider IHS Markit is estimating a 20.1% increase in the third quarter. Economists at S&P Global Ratings, meanwhile, forecast a jump of anywhere from 18% to 22%—depending on what kind of compromise Republicans and Democrats on Capitol Hill are able to reach on a new stimulus package. And the Federal Reserve Bank of Atlanta recently bumped up its third-quarter growth projections from less than 12% to more than 20%, on the strength of new manufacturing data.
Car sales are up. But a vast majority of small businesses particularly in services sector are either closed or running at much lower capacity. I don’t understand how exactly a 20+ % growth is expected!!
 

randomradio

Senior Member
Nov 30, 2017
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India
Car sales are up. But a vast majority of small businesses particularly in services sector are either closed or running at much lower capacity. I don’t understand how exactly a 20+ % growth is expected!!

I guess through a massive stimulus. Trump needs a win before the Nov elections. He needs to show he can return the economy to normalcy with a very high Q3 growth, which should be out by the end of October.

 

Lolwa

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Feb 6, 2020
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This Charlie kept jabbering and didn't offer any real analysis. Covid iska baap kha gya tha? Which protectionism is he talking about? Which tax obsession? India had always been tax obsessed. Tone-deaf Analysis. This buffoon keeps repeating that we should be humble and we lost to Bangladesh and started dhoti shivering. Shekhar coupta is a tool...
 
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_Anonymous_

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Dec 4, 2017
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It's a misconception that ac's are banned. It's only ac's charged with refrigerants which are banned. One can always import ac's w/o refrigerant & charge the refrigerants here. Basically this move has been undertaken to build up capacities at home. It should give you an idea that with a 5-6 billion USD market for light commercial & residential applications our domestic production is practically non existent. All we have are assembly units or to be more precise packaging, labelling & warehousing units.
 

Milspec

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Let us hope the POLE vaulters and Termites Go back to Bangladesh


On a separate issue, Bangladesh is one country in the region that India needs to develop extremely good relations with. They have the capability to generate good economic, cultural, and strategic synergy with India, and the general opinion of Bangladeshis towards India is actually pretty positive if you can look beyond the rabid BNP trolls that plague other forums.
 
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_Anonymous_

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On a separate issue, Bangladesh is one country in the region that India needs to develop extremely good relations with. They have the capability to generate good economic, cultural, and strategic synergy with India, and the general opinion of Bangladeshis towards India is actually pretty positive if you can look beyond the rabid BNP trolls that plague other forums.
You couldn't be further from the truth here. The ordinary B'deshis don't like Indians at all & I'm not referring to the aam semi literate menial Abduls but the professional classes there too. Take it from me. It's personal experience speaking. Of myself & friends & colleagues.

In the long run, if we've to settle the illegal migrants problem from B'desh in WB & all over the NE, it'd definitely lead to a souring of relations with them. Before we get to that we need to tackle Paxtan & unfortunately as of now China. B'desh is receptive to us for 1 & 1 reason only & that's coz of SHW & her ANP. You take SHW out of the equation & you'd see BD showing it's true colours.

In any case she isn't going to last forever. We need her time be there right till 2030. Hopefully by then we'd be able to tackle the Paxtan problem once & for all & with it China. If we don't , then by 2030 we'd be surrounded on all 3 sides by hostile powers. I don't even want to imagine what the situation will be like then.
 

HariPrasad

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India's economy to be world's No.3 by 2028: forecast
India and key Association of Southeast Asian Nations members will become increasingly vital drivers of Asian growth over the coming decade, while China's economy slows to a pace comparable with the U.S., new projections from the Japan Center for Economic Research show.

India's gross domestic product is likely to top $6 trillion by 2028, overtaking Japan as the world's third-largest economy.



The center on Tuesday released its third Medium-Term Asian Economic Forecast for 2017 through 2030. The report, titled "Digital Asia 5.0 -- Innovation changes economic power relationship," puts the Philippines on track to log 6.4% real GDP growth in 2030, with India expected to post a 5.2% rate and Vietnam likely to record 5% expansion that year.

China, whose 6.7% growth rate in 2016 was nearly the same as India's, is projected to slow to 2.8% in 2030, despite high productivity.

The report gauges countries' growth prospects amid the spread of digital technology, using metrics including labor contributions, investment levels and productivity, which is affected by infrastructure quality and other factors. It offers forecasts for 2017 to 2030 for 11 Asian economies in total: China; India; the Newly Industrializing Economies (NIEs) of South Korea, Taiwan, Hong Kong and Singapore; and the ASEAN5, which covers Indonesia, Thailand, Malaysia, the Philippines and Vietnam. Japan and the U.S. are also included for the sake of comparison.

China's investment ratio to GDP is more than 40%, which stands out compared to its neighbors. The rate is expected to decline by 1 point per year and settle at the mid-20% level by 2030. Although the country's productivity growth rate is high, thanks to infrastructure and educational improvements, capital stock growth is slowing as it reins in production capacity and investment.

Conversely, while the Philippines' productivity growth rate is low, its capital stock is swelling by 6-8% a year. After the Philippines, India and Vietnam are also seeing brisk capital stock growth.



Among these three countries, India has a relatively large contribution of labor input to GDP growth. The number of people employed in India is increasing as the population expands, and the average length of education, in terms of years, is also increasing rapidly.

The ASEAN5's growth rate in 2030 is projected at 4.4% -- higher than the NIEs (1.9%), China, Japan (0.5%) and the U.S. (2.5%). This will make it a major growth engine next to India. In addition to the Philippines and Vietnam, Indonesia, Malaysia and Thailand are all projected to post growth rates of 3-4%, beating China.

Thailand is seeing high productivity growth but lower labor input than Indonesia and Malaysia. The number of employed Thai workers is on a downtrend, though extended education should pick up the slack.

As for the NIEs, Singapore's growth rate in 2030 is projected at 2.4%, with Taiwan headed for 2.2%, Hong Kong 1.7% and South Korea 1.6%.

Only Singapore is seeing positive labor input, though in Taiwan, productivity growth is helping to compensate for a decrease in employed workers.



As for Japan, which has the slowest growth rate of the group, labor input is negative and neither productivity nor the capital stock will improve much.

Shifting ranks

Based on the GDP growth outlook, the report also looks at how economies will stack up in terms of scale (nominal GDP using market dollar conversion) and prosperity (nominal GDP per capita).

Related stories

Though China's growth rate will decelerate toward 2030, its economic scale, which was equivalent to about 60% of the U.S. in 2016, will reach 80% by 2030. But like Japan in the mid-1990s, when it approached 70% of the U.S. economy, China will not get over the hump and actually surpass America.

China will remain the second-largest economy, well ahead of Japan. China's size advantage over its Asian neighbor will expand from 2.3 times in 2016 to 4.4 times. China is expected to continue accounting for about half of Asia's growth in the coming years.

But in the 2030s, India is likely to be the main driving force for economic growth in Asia. India, whose scale was equivalent to about 50% of Japan in 2016, will pull ahead in 2028 and be 1.2 times larger in 2030. This will make it the world's third-largest economy, up from seventh place now.

There are other looming shifts in economic scale: Indonesia is on track to almost catch South Korea in 2030; the Philippines should overtake Thailand in 2027 and Taiwan in 2029; Malaysia is likely to widen the gap with Singapore; and Vietnam should surpass the city-state in 2027.

In terms of both population and economic performance, Asia's center of gravity will shift from the east to the south -- namely India and ASEAN.

When it comes to prosperity, Malaysia is likely to join the ranks of high-income countries -- with nominal GDP per capita over $12,000 -- in 2023. China should reach that level two years later, but is unlikely to catch Malaysia by 2030. Thailand is likely to fall short of high-income status.

Indonesia is projected to become an upper middle-income country in 2019, with GDP per capita exceeding $4,000. The Philippines should make it in 2022, with Vietnam following in 2028. The Philippines would then overtake Indonesia in 2029.

Despite its high growth rate, India is unlikely to surge into the upper middle-income tier.

Singapore is likely to be the only Asian country to catch up with U.S. prosperity, pulling away from Hong Kong and Japan. Hong Kong should move further ahead of Japan, while South Korea gains ground from behind.

Japan Center for Economic Research economists Hiroyuki Motegi and Kazuya Manabe contributed to this article.
India's economy to be world's No.3 by 2028: forecast- Nikkei Asian Review


In my opinion, it will become faster than this because our foreign exchange reserve is rising fast. India is all set to become a trade surplus economomy in a year. This will further strengthen INR against other currencies. Once INR starts rising, INR valuation will add big figure in nominal valuation of economy.
 

HariPrasad

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Dec 5, 2018
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Surat

Great news. Vajpayee made this happen. I was expecting this in initial years of current government but it happened late.
 

HariPrasad

Active member
Dec 5, 2018
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Surat

INDIA'S RICE EXPORTS COULD JUMP TO RECORD ON THAI DROUGHT EFFECTS​

Reporting by Rajendra Jadhav
Editing by Christian Schmollinger
10/7/2020
View attachment 18193
Highlights :
  • Thailand's rice exports plunge on lower output
  • Buyers shift to India on lower prices, ample stocks
  • India's 2020 exports seen at 14 million tons vs 9.9 million tons a year ago
  • Huge inventory, weak rupee gives India an edge

MUMBAI, Oct 7 (Reuters) - India's rice exports in 2020 may rise by nearly 42% from a year ago to record highs because of reduced shipments from rival exporters and a depreciating rupee, industry officials said this week. Higher shipments from India, the world's biggest rice exporter, could cap global prices, reduce the country's bulging inventories and limit Indian state stockpiler purchases from farmers.

India's rice exports could jump to 14 million tonnes in 2020, up from last year's 9.9 million tonnes, the lowest in eight years, said B.V. Krishna Rao, president of the Rice Exporters Association. "Thailand's shipments are falling due to the drought. Vietnam is struggling because of lower crop. That share is naturally coming to India," Rao said.

Thailand, the world's second-largest rice exporter, suffered through a drought earlier this year that has affected the rice crop. Shipments in 2020 could fall to 6.5 million tonnes, the lowest in 20 years. Vietnam, the third-biggest global exporter, has contended with low water levels in the Mekong River Delta, the country's main rice growing region, that has limited supply.

India mainly exports non-basmati rice to Bangladesh, Nepal, Benin and Senegal, and premium basmati rice to Iran, Saudi Arabia and Iraq. India's rice shipments in 2020 will rise because of robust demand for non-basmati rice from African countries, said Nitin Gupta, vice president for Olam India's rice business.

"Basmati rice demand is more-or-less stable, but in non-basmati we have seen a huge surge in demand due to attractive prices," Gupta said.
India's non-basmati rice exports may double from a year ago to 9.5 million tonnes, while basmati rice exports would remain stable around 4.5 million tonnes, he said.

India was offering 5% broken parboiled rice at $380 per tonne on a free-on-board basis, while Thailand was offering the same grade at $490 per tonne, dealers said. Indian exporters have offered rice at lower prices at a time when global prices have jumped on limited supplies because of the rupee's depreciation, Rao said.

The rupee has declined 3% against the U.S. dollar so far this year. In addition to lower Southeast Asian sales, China has also cut exports to Africa after floods hit local crops, said a Mumbai-based dealer with a global trading firm.

"Unlike other countries, India has massive surplus. Exports won't create shortage in the local market," the dealer said.
Also, the higher exports should cut into Indian inventories and limit government purchases from farmers at minimum support prices, said Rao from the Rice Exporters Association.


I have planted 10 varieties of rice this year. Black and violate rice's are highlights.