Daily Economic News 3rd January 2017

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04 Jan, 2017

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Indian Economy News

Janurary 3, 2017

ND has initiated a new section of daily news, where our news desk compiles the latest news on the Indian economy, to keep our readers abreast and updated on daily economic state of affairs.

The economy news compilations bring business news reports that are relevant today and tomorrow, based on the new pattern of current affairs, and for English awareness. This gives vital inputs on the various sectors of the Indian Industry and trade.


  • Index of Eight Core Industries November, 2016
  • India successfully test fires Agni-IV ballistic missile
  • India won’t lag the rest of the world for 5G like it did for 4G: Intel’s Navin Shenoy
  • Bhim – Top App- BHIM downloaded 3 million times, top app in India, as per Mr Amitabh Kant

Index of Eight Core Industries (Base: 2004-05=100) November, 2016

Press Information Bureau:  January 03, 2017

The summary of the Index of Eight Core Industries (base: 2004-05) is given at the Annexure.

The Eight Core Industries comprise nearly 38 % of the weight of items included in the Index of Industrial Production (IIP).  The combined Index of Eight Core Industries stands at 178.2 in November, 2016, which was 4.9 % higher compared to the index of November, 2015. Its cumulative growth during April to November, 2016-17 was 4.9 %.

Coal

Coal production (weight: 4.38 %) increased by 6.4 % in November, 2016 over November, 2015. Its cumulative index during April to November, 2016-17 increased by 1.6 % over corresponding period of previous year.

Crude Oil

Crude Oil production (weight: 5.22 %) declined by 5.4 % in November, 2016 over November, 2015. Its cumulative index during April to November, 2016-17 declined by 3.5 % over the corresponding period of previous year.

Natural gas

The Natural Gas production (weight: 1.71 %) declined by 1.7 % in November, 2016 over November, 2015. Its cumulative index during April to November, 2016-17 declined by 3.7 % over the corresponding period of previous year.

Refinery Products (93% of Crude Throughput)

Petroleum Refinery production (weight: 5.94%) increased by 2.0 % in November, 2016 over November, 2015. Its cumulative index during April to November, 2016-17 increased by 8.0 % over the corresponding period of previous year.

Fertilizers

Fertilizer production (weight: 1.25%) increased by 2.4 % in November, 2016 over November, 2015. Its cumulative index during April to November, 2016-17 increased by 4.5 % over the corresponding period of previous year.

Steel (Alloy + Non-Alloy)

Steel production (weight: 6.68%) increased by 5.6 % in November, 2016 over November, 2015. Its cumulative index during April to November, 2016-17 increased by 8.2 % over the corresponding period of previous year.

Cement

Cement production (weight: 2.41%) increased by 0.5 % in November, 2016 over November, 2015. Its cumulative index during April to November, 2016-17 increased by 4.3 % over the corresponding period of previous year.

Electricity

Electricity Generation weight: 10.32%) increased by 10.2 % in November, 2016 over November, 2015. Its cumulative index during April to November, 2016-17 increased by 5.4 % over the corresponding period of previous year.

Note 1: Data are provisional. Revision has been made based on revised data received for corresponding month of previous year in respect of Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizer, Steel, Cement and Electricity. Accordingly, indices for the month of November, 2015 have been revised.
 
Note 2:
 Since October, 2016, Electricity generation data from RENEWABLE SOURCES is also included.

Note 3: Release of the index for December, 2016 will be on Tuesday, 31st  January, 2017.


 

Power transmission investment likely to be at ~2 lakh crore: CEA

Business Standard:  January 03, 2017

New Delhi: Indicating significant growth in the power transmission sector, the Central Electricity Authority (CEA) has estimated an investment of Rs 2.6 lakh crore till 2022.

These and other estimates form the base for a draft National Electricity Plan-Volume II, which would be the basis for investment and policy planning in the sector. Inter-regional capacity addition during the 13th plan (2017-22) is estimated at 45,700 Mw, from the present 63,650 Mw by the plan end, said CEA in the draft.

The investment figure, it said, included an estimate of Rs 30,000 crore in transmission systems below 220 kv. About Rs 1.6 lakh crore would come from states and the other Rs 1 lakh crore from Power Grid Corporation of India. The government is planning to increase the size of projects and scope of work in transmission. Inter-state lines with capacity of around 56,000 Mw are being planned by the end of the 13th plan.

In the first volume, CEA had said more more thermal power GENERATION capacity wasn’t needed but supply needed to be more accessible and affordable. And, that renewable energy  generation would be 20.3 per cent and 24.2 per cent of the total energy requirement in 2021-22 and 2026-27, respectively.

CEA says the already planned transmission corridors between regions is sufficient to cater to variable dispatches at peak times, with provisos.

The estimate is that India would need 100,000 circuit km (ckm) of transmission lines and 2,00,000 MVA transformer capacity of substations at 220 kv and above voltage was expected to be added in the 13th plan. It has suggested that investment be invited through competitive bids.

“It is expected that a total of 107,454 ckm of transmission lines and 287,836 MVA of substation transformation capacity additions are likely to be achieved during the 12th plan,” it has said.

Various high capacity transmission corridors are in various stages of implementation and most are likely to be commissioned by 2021.


Bhim – Top App

BHIM downloaded 3 million times, top app in India, as per Mr Amitabh Kant

IBEF:  January 03, 2017

New Delhi: The Government of India’s indigenous digital payments application, BHIM (Bharat Interface for Money), has become the top app on Google Play Store in India with over 3 million downloads and over 0.5 million transactions made so far since its launch, according to Mr Amitabh Kant, Chief Executive Officer, NITI Aayog. The BHIM app was launched on December 30, 2016 to enable fast and secure cashless transactions using mobile phones, without having to use a credit or debit card. The app has been developed by the National Payment Corporation of India (NPCI), and supported by host of banks, including public sector banks such as State Bank of India, Bank of India, Canara Bank, Oriental Bank of Commerce, Punjab National Bank as well as private sector banks such as ICICI Bank, Axis Bank, HDFC Bank and Kotak Mahindra Bank among others.


India successfully test fires Agni-IV ballistic missile

IBEF:  January 03, 2017

Balasore: The Defense Development and Research Organisation (DRDO) has announced successful tests of nuclear-capable strategic ballistic missile Agni-IV as part of user trial. The Agni-IV is a surface-to-surface missile with a strike range of 4,000 km, and is a two-stage missile weighing 17 tonnes and 20 meters in length. The missile is equipped with state-of-the-art Avionics, 5th generation on-board computer, highly accurate Ring Laser Gyro based Inertial Navigation System (RINS) and highly reliable redundant Micro Navigation System (MINGS). The test was conducted from launch complex-4 of the Integrated Test Range (ITR) at Dr Abdul Kalam Island. The test of Agni-IV comes on the heels of the successful test of Agni-V, which was conducted on December 26, 2016.


5G Adaptation

India won’t lag the rest of the world for 5G like it did for 4G: Intel’s Navin Shenoy

Livemint:  January 03, 2017

New Delhi: The last time Navin Shenoy, senior vice-president and general manager, Intel Corp. (Client Computing Group), was in India in 2012, Paytm was an unknown commodity. On a visit this month, he realized he can make payments to a fruit vendor instantly, which he thought was not possible in India 2-3 years ago. Such dramatic changes, including India’s adaptation of 4G and Digital India, make him an “unabashed India bull”.

In an interview, Shenoy talked about the Indian IT industry, advent of Reliance Jio and technology evolution in India. Edited excerpts:

How do you see growth in Indian IT especially with the current situation in this financial year?

I’m an unabashed India bull as it pertains to prospects for technology in India and I am probably more of a bull than I have ever been largely because of the fact that India has even such a notion as the Digital India initiative from the prime minister and proliferated through the rest of the country.

As I travel around the world, there are very few countries that have a digital initiative from the head of the country and so I think the recognition of the government that the digitization of the country is the only way to advancement for the next couple of years, decade is something obviously that we are aligning ourselves to… But if I think what is next for the Indian IT industry, it is really about much like other countries, a much broader proliferation of technologies.

The cloud infrastructure in India is not ultimately where it needs to be, the computing infrastructure—many people have mobile phones but still don’t have computers. So I think as I look at the next few years, development in these areas is going to be Important … I remember the last time, it’s been four years since I have been here, the fact that you can go to a fruit stand now and use PayTm to buy something, I would never have imagined we will be here so soon one or two or three years ago. So, I am bullish I guess and I guess the conditions are right for the technology industry to continue to grow here. It is the only way India will continue to grow at 7-8% in terms of GDP.

What kind of impact do you see of Donald Trump winning US presidential elections on Indian IT industry?

It is way too soon to say. It is a pretty broad leap to think of impact right now. There are a lot of unknowns. So we will see how it goes. At the end of the day, India has so much potential that political events are going to happen around the world all the time and there are going to be bumps but if you look in the long term, there is no doubt in my mind that technology is going to be inextricably linked with the progress in India. The two will go hand in hand, and like I said before I am an unabashed bull about how Intel will do in India and the course of how industry will develop in India. We are at a tipping point in India where the next 5-10 years are incredibly bright.

You just talked about Paytm at a fruit shop. A lot of it is happening because of demonetisation, so what is your take on that especially considering digital and e-payment revolution that will step in? You think it’s positive for technology?

I am not an expert on the demonetization policy. I can tell you that I think from a government point of view, it’s a bold step and probably the right step for India in the long run. But with as most bold steps, there is going to be some bumps. Ultimately it’s inextricably linked with technology, you cannot do demonetisation and not also apply technology in a much broader way. I think it will accelerate the adoption of e payment and modernization of banking system. The fact that 90% plus of the transactions in India are done through cash is not how you build a technology economy, you have to be able to leverage technology.

This new company Reliance Jio is bringing its network entirely on 4G LTE. What is your take on it?

I think they have been incredibly disruptive, I think they chose to do it in a way that is going to at some point be written about in business school case studies because they did a pan-India service, free voice service, they did their own hardware devices. They really thought it through really well. And I think they have probably accelerated it, it was inevitable that it was going to happen at some point but they have acted as an accelerator.

When do you see 5G coming to India?

I have that conversation with Reliance. You know the prime minister here is pretty progressive when it comes to technology and I think it will be interesting to see how quickly India moves but I don’t have an exact date but based on everything I have seen so far, it certainly won’t lag the rest of the world like 4G did. I think India will be closer to the 5G evolution and transformation as opposed to kind of later on as perhaps it was on 4G.

And what would 5G mean to your business in India?

It will accelerate our business in a major way—5G will be much different than the 4G transition. The 4G transitions were largely about mobile phones and COMPUTERS. The 5G transition will have a much bigger impact because it will be about infrastructure that will get deployed, it will be about automobiles being connected to the Internet, it will be about hospitals being connected to the Internet, it will be about drones being connected to the Internet and literally about every electronic device being connected to the Internet in some way, IOT (Internet of Things) devices and so I think will have a much broader impact on transformation which will be one of the reasons why government and enterprises in India will adopt 5G much faster.

 

The Swedish newspaper was recently asked it to delete the reference made by President Pranab Mukherjee to the Bofors scam in an interview to it, as a claim protested by the Indian Government on 27 May 2015. India has expressed disappointment over the disrespect shown to the President, the newspaper has defended its right to publish what was said during the interview.

Know, who is Vijay Kelkar and what is PPP !

Vijay Kelkar is a renowned economist and a former Finance Secretary. He was appointed head of newly constituted committee to give recommendations to recast the model of Public-Private-Partnership (PPP) model in India. India is one of the largest PPP market with over 900 projects. The Kelkar committee will review the PPP policy, suggest a better risk-sharing mechanism between private developers and the government after analysing such projects.

Know, who is Yaduveer Krishnadatta Chamaraja Wadiyar !

Yaduveer Krishnadatta Chamaraja Wadiyar was crowned as the new Maharaja of of Mysuru (Mysore) royal family. He is the 23-year old grandson of Princess Gayathri Devi, who was the eldest daughter of the last Maharaja of Mysore, Sri Jayachamarajendra Wadiyar. The coronation was held at Mysuru’s famous Amba Vilas Palace, which was decked up for the occasion.

Know about Sepp Blatter!

Swpp Blatter, was re-elected as FIFA president for a fifth term at the 65th Annual Congress of FIFA held at Zurich for four year term.

Prince Ali bin al-Hussein of Jordan stood against Blatter in this election. It is worth mentioning that FIFA is going through a major controversy regarding corruption in the organisation with two FIFA vice presidents and a recently elected FIFA executive committee member still in custody.

 


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