Tag: india

Trade War: Limited impact on Indian steel, aluminium industry, says Steel Secy

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The decision of the US president imposing heavy tariff on steel and aluminium is expected to affect many countries’ export.

Talking about its effect on Indian economy, Steel Secretary Aruna Sharma said that there will not be any direct impact on India as only 2 percent of country’s steel export is to the US.

The onus lies more on the US to prove that Indian steel is going to have an impact on US security measures.

Section 232 of the US law gives the President the ability to issue tariffs based on national security concerns.

India under WTO, has objection to 232 and will work out the details with Ministry of Commerce because aluminium is also getting affected. She said that approaching WTO would be post discussions with Ministry of Commerce.

“As of now, the ministry is in a wait and watch mode and haven’t yet made a representation for an exemption”, said Sharma.

Talking about the outlook for the steel sector, she said that the approach is that we do not contribute to the excess capacity of the world, but in fact we are increasing consumption in tandem with production.

Sharma concluded that the upward trend will continue in FY19 as well.

Below is the verbatim transcript of the interview.

Ekta: What is the impact on Indian steel manufacturers with regards to the tariffs which are imposed by the US government on steel as well as what the reaction might be from the government now?

A: What you have said before – if you look at it, we are 10th in the series of descending order of the exports that are receding US and ours is only 2 percent of the total exports going to US. So immediately there is definitely no impact but yes, we have an issue of principle.

What is being imposed is not something which is WTO compliant. We will look forward for any measures, which are WTO compliant because that can be argued and discussed. It has been done under 232 – what you were correctly said and under the name of security. So the onus lies more on the US to prove that steel going from India is going to have an impact on their security measures.

The second thing is that their own 232 is now getting more opened up by giving exemption to Canada and Mexico – Canada being the biggest importer – between two of them out of 35, 10 million tonnes are being exported to US. The other countries which are top on the list is Brazil, Japan and South Korea. So in the name of friendly countries, let us see how it emerges then we are 10th in the line.

So we don’t expect any immediate impact but yes, under principle we have an objection to 232 and with Ministry of Commerce, we will be working out the details because aluminium is also getting affected and accordingly proceed ahead.

Prashant: The Prime Minister of Australia – over the last 48 hours – put out a statement saying that Australia in-principle has an agreement with the US, they have reached some sort of an understanding to be exempt. The list of countries which are being exempted seems to be growing. Have we reached out for the same although the exports out of India are pretty small into the US?

A: What you say is right. With so many exemptions, the whole clamping itself gets so diluted that I am very sure that it will find its own declining trend. So wait and watch is the best way to proceed ahead with this.

Nigel: If this is not WTO compliant, will we be approaching the WTO to complain against this? Also, are we looking at any additional measures to save our steel industry, anti-dumping duty (ADD) is already at place but it is at quite a low price compared to current steel prices?

A: If you look at it, our anti-dumping duty is very reasonable, logical and well-argued upon which any country can question and there can be a debate on it and that is an absolutely WTO compliant measure and that has also redressed the crisis, which India was facing against the dumping. So we have found a solution within WTO complaint’s trade measure.

Now, unilateral tariff measures is not which is WTO compliant or WTO agreed trade measures. So definitely there is a question about resorting to unilateral tariff measures and that is where it said that it may trigger the trade wars if you go accordingly.

But with the kind of windows that are going to opened up and the dilution that is happening – we are very sure that it will emerge to be a much logical way of proceeding into the trade tariffs.

Nigel: Will we approach the WTO, that is the big question?

A: That with Ministry of Commerce we are working out so it will not be appropriate for me to talk only of steel.

Ekta: You cannot talk about whether you would be approaching the WTO but would there be any sort of quid-pro-quo kind of measures from India on American exports, is that something that you would be privy to or you would be able to talk on as well?

A: Not at all because in case exemptions are given to many countries, we will be pitching hard because you cannot have steel coming from a few countries 25 percent more expensive than steel coming from other countries. There has to be an equity into whatever measures that are being taken. When there is an equity, the steel buyer is going to pay more than 25 percent. The realisation of the exporter is going to remain the same. It is not going to make a difference to the exporters except that the steel being important in the US will be 25 percent more and not only that downstream the cost is going to enhance for the consumer in US. So definitely it is not a straight line kind of an arrangement and India will definitely question in case there is a differential treatment given to India, there is no doubt about it.

Prashant: To the earlier point, have you made the representation for an exemption as of now?

A: At this moment, no. as of now, we are discussing, we are watching, how it is proceeding because we don’t expect with so many windows what you correctly talked about Australia when you are having a free trade agreements that Australia may not be a steel contributor but it is definitely the coking coal contributor or raw material contributor to these countries. So it is going to make a difference. Therefore, it is unveiling now. We should not open all our cards just now.

Nigel: FY18 has seen a good turnaround of the steel sector and the last time you joined us, you told us that sales losses will come down and that has precisely what happened in Q3. For FY19, if you could tell us what kind of a steel demand growth are you looking at? This year is roughly around 4.5 to 5 percent so for FY19, what kind of a number can be looked at and for Steel Authority of India Ltd (SAIL) that profit number by the end of FY19 is still on the cards?

A: Definitely now, SAIL will be on an upward trend. All the adjustments and the facilities are getting ramped up. So that is as far as the PSU is concerned, that includes RINL as well. So let us not forget them. They are also on the upward trend, they have reduced the losses and by March figures, the losses will be reduced even though they don’t have the net profit as we are going ahead.

But as you rightly said, yes, steel sector has been on the reviving mode and our entire policy and approach is that we don’t contribute to the excess capacity of the world. We are enhancing our consumption in parallel to our production. So our consumption is also constantly going up day by day. We had a 5 percent increase and we expect much more with the country’s focus on infrastructure.

Let me tell you very interesting argument that we are a young country. So the young country will require more infrastructure, more housing, more aspirations, more consumption of steel. So with that angle, I see an upward trend. So FY19 will also bring in much more jump. Already we have reached 134 million tonne of capacity. So we expect an addition more in FY19.

Prashant: In 2016, India exported goods and services worth some USD 72 billion into the US. The surplus that India enjoyed with US was about USD 30 billion, USD 22 billion out of that on goods. The US trade deficit is about USD 800 billion. There is one view point that if there were to be some sort of a trade war, escalation of tensions, India being a small player should lie low and not lead the counter attack, go to the WTO, make a noise and find its way around but it is not the large player, the big target is China for the US, is that the view in the establishment as well?

A: No, in 232, China is definitely not the target because China exports only one percent of their exports to US. So it is hardly a market. For India also, the major market is Italy, Vietnam is there and US is a low miniscule market so definitely the hit is not here, the hit is going to be measure European Union.

Prashant: I did not mean steel per se, I mean overall not just steel?

A: Okay, so if you are thinking overall in business, the country’s interest stands first whether it is a small interest or a big interest, the country’s interest always is protected and will be protected.

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Renewable energy not profitable now, says Brics Bank chief KV Kamath

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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K.V. Kamath, the chief of the New Development Bank of the BRICS countries said on Saturday that the renewable energy sector will be profitable moving forward but not at the moment with many fossil fuel plants in place.

In an exclusive interview with CNBCTV18, the banker said that it doesn’t really make sense to put in new fossil fuel plants unless they have some extraordinary measures to build the same.

He also added that the renewable sector is changing dramatically with the price curve going downwards.

“With the current level of committed projects, you imagine a commitment which is 5x or 10x of what it is, you look at off-grade type of structures, you are looking at cost dropping dramatically and these sort of structures are not only in India but also in large markets like China and in due course could be in Africa,” Kamath said.

Kamath added that if solar is going to be the future of power sector, then the coal plants should retrofit to make the plants more efficient and less polluting.

“So there are very interesting ways that over the next 15-20 years when the residual life of these plants – you need them. You cannot mothball them today because you need that power,” he said.

The need of the hour is to make the existing plants efficient enough while adding new solar plants and infrastructure in place, Kamath concluded.

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ISRO aims for the moon, again

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Indian Space Research Organisation (ISRO) is aiming to launch Chandrayaan-2 satellite to the moon by April.

The Chandrayaan-2 satellite is India’s second mission to the moon. The satellite will comprise of an orbiter, lander and six-wheeled rover which will move around the landing site. It will be equipped to send back data which will be useful in analysing the lunar soil.

Along with one of India’s largest missions, ISRO is also gearing up for the launch of communication satellite GSAT-6 on-board GSLV-F08 which is scheduled for March-end. This will be followed by a navigation satellite IRNSS-1I.

The GSAT-6A is a communication satellite providing a platform for developing technologies and can be useful in satellite based mobile communication applications.

The IRNSS-1I is the eighth satellite to join the NavIC Navigation satellite constellation, which would be sent to a Sub-Geosynchronous Transfer Orbit on-board PSLV as the previous IRNSS-1H launched on August 31, 2017 had become an unsuccessful mission.

ISRO Chairman K Sivan said that if the April launch of Chandrayaan-2 does not bear fruit, they will aim for its launch by October.

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Coca-cola turns to ‘ethnic’ drinks for Indian market

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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One of the leading cola makers in the world Coca-Cola is planning to launch ‘ethnic’ drinks and fruit juices in India with an aim to localize two-third of its product portfolio in the country.

Coca-Cola India and Southwest Asia president T Krishnakumar was quoted as saying, “The idea is that over a period of time we may have one-third of products which are basically global and two-third of the products which are very local.”

Considering that India is the second-largest producer of fruits in the world, the company hopes that the fruit based drinks will have huge demand.

The company has already started test marketing its coconut water brand ‘Zico’ in India.

“We are looking at ‘nariyal pani’. It is something that we believe is very important. The company would be launching new products in the ethnic beverages category over the next three years”, Krishnakumar added.

Apart from ethnic drinks and fruit juices, the company also plans on reducing sugar content by introducing low-sugar and sugar-free drinks to meet changing consumer preferences. It is also considering launching hydration drinks.

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Direct Tax Collections for FY18 rise 19.5% till February

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Direct Tax Collections rose 19.5% between April 2017 to February 2018, government data said.

A statement released by the Department of Revenue Central Board of Direct Taxes put total direct tax collections at Rs 7.44 lakh crore.

The net Direct Tax collections amounts up to 74.3% of the revised estimates of Direct Taxes for financial year 2017-18 that stands at Rs.10.05 lakh crore.

Gross collections (before adjusting for refunds) have increased by 14.5% to Rs.8.83 lakh crore during April 2017 to February 2018. In addition, refunds amounting to Rs.1.39 lakh crore have also been issued during the same period.

As per the release, the growth rate for net collections for Corporate Income Tax (CIT) stands at 19.7% and that for Personal Income Tax (PIT) at 18.6%.

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Moody’s: Investment in renewable energy sector in India and China profitable in long term

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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China and India, world’s most populated countries, have emerged as an investment pool for the renewable energy sector, Moody’s Investor Services said in a report on Thursday.

The countries which are ranked as A1 stable and Baa2 stable respectively by the rating agency, have been highly dependent on fossil fuels to meet its energy needs and investment in the clean energy sector will be profitable in the long run.

“However, there remain the hurdles of an evolving regulatory framework, land acquisition, leverage risks, and access to funding capacities. In the near term, these hurdles will limit the credit benefits of the shift to renewable energy for both sovereigns,” Moody’s said.

The investment will boost the countries’ growth potential and improve energy securities, the rating agency said adding that it expects the renewable energy capacity to increase by 34% and 40% of total installed power capacity by 2020 and 2030 for China and India respectively.

China and India have increased its investing capacity to implement renewable energy across the sectors as well as reducing the countries carbon emission targets.

Towards the end of 2017, both the countries faced with smog related issues, with China shutting down its coal and iron ore production as well as importing the same from other countries.

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Uber Ex-CEO Travis Kalanick launches “10100” investment fund

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Uber ex- Chief Executive Travis Kalanick on Wednesday took to Twitter to announce a new fund “10100”, focused at investments and job creations.

Kalanick said, the new fund, pronounced as “ten-one-hundred” will focus on for-profit and non-profit investments.

The newly announced fund will be focused on investments in real estate, e-commerce and emerging innovations in China and India with large-scale job creation.

Some news… pic.twitter.com/urFBrb9aCV

— travis kalanick (@travisk) March 7, 2018

He also added that his non-profit work will focus on the education and the future of cities.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

‘Every one out of three Indian women receives sexual calls or messages’

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Out of the 586 million women in India, about 78% receive harassment calls and 82% receive ‘inappropriate and sexual’ content in the form of videos and pictures at least once a week, reveals a report by Truecaller. The research which has been conducted in collaboration with an independent market research company states that every one out of three women receives ‘sexual and inappropriate’ calls or SMS’.

According to the report, 50% of these calls and texts were anonymous whereas, 11% were the from stalkers. While, 3% of them were from the ones who knew the receiver. Jaipur has the highest number of women receiving ‘offensive and sexual’ images or videos every week with 90% of respondents reporting the cases.

As per the report, women in India receive 18% more unwanted calls than men which indicates a rise by 5% from last year’s 13%.

72% of the women received calls from fraudsters with an objective to collect payments or their personal data at least once a week. Out of these, 4% received counterfeit calls almost daily.

81% of the women who participated in the survey termed blank calls as ‘harassment’. Blank calls were defined as “an anonymous phone call made with the intention to threaten, harass or offend a caller, without a sales- or phishing-related objective” in the survey.

Though most of these women take actions against these calls, the report found that 38% women still remain silent about it. Out of the 62% who have taken measures against the harassment calls, more than half chose to block the harasser and 90% of them use Truecaller to block the harasser. While only 10% registered a complaint to the police. 7% used social media to name and shame the person.

On an average, every Truecaller user in India receives 22.6 spam calls per month, making it the highest in the world.

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The Best Countries for Long-Term Growth

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Worries over the European debt crisis, a slow recovery in the U.S. and fears over a “hard landing” for China’s economy have left global investors searching for new markets for their money. For long-term investors that means identifying economies that have strong growth prospects driven by advantages such as demographics, natural resources or geography.

The following is a list of the 10 countries with the best prospects for long-term growth. It’s based on a report from HSBC titled “The World in 2050,” which forecasts what the economic landscape will look like over the next 40 years. Some of the economies are already known as economic powerhouses, while others may come as a surprise.

The ranking includes some of the world’s fastest-growing economies as well as those that will have the largest gross domestic product in absolute size by 2050. Excluded are economies that are projected to be less than $400 billion in GDP by 2050. The 2010 and projected 2050 GDP numbers are from the HSBC report and are based on constant U.S. dollar exchange rate in 2000. We calculated the annual average growth rates over the 40-year period based on figures in the report.

Click ahead to find out which countries offer investors the best growth prospects in the next few decades.

10. Algeria

Projected annual growth: 5%

2010 GDP: $76 billion*

2050 projected GDP: $538 billion

Algeria, endowed with Africa’s third-largest proven oil reserves, is one of the richest countries on the continent, and its wealth appears likely to grow further in the coming decades.

Oil reserves of 12 billion barrels have played a key role in luring foreign energy companies, including Anadarko and A.P. Moller-Maersk to the country. Petroleum products, the backbone of the economy, account for 95 percent of Algeria’s exports, according to the International Monetary Fund.

Revenues from its commodities exports have allowed Algeria’s government to accumulate large savings in an oil stabilization fund, estimated to be worth $55 billion, which helped shield the economy from the fall in energy prices in 2009.

An acceleration of household consumption and government fiscal expansion has also helped to boost growth in recent years. In 2009, President Abdelaziz Bouteflika announced a five-year plan to increase government spending from $120 billion to $150 billion to improve national infrastructure, create 3 million jobs, and build 1 million new homes.

Although the country has favorable demographics on its side — with more than half the population under age 35 — the country faces high levels of youth unemployment. Over 20 percent of those in the 16-24 age bracket are unemployed, and Algeria has seen several protests during last year’s Arab Spring.

* Based on 2000 U.S. dollars

9. China

Projected annual growth: 5.1%

2010 GDP: $3.511 trillion*

2050 projected GDP: $25.334 trillion

It may be no surprise that China, the current engine of global growth, is set to be one of the fastest growing economies over the next four decades. But what is noteworthy is that the size of mainland economy, which is currently one-third that of the United States, is expected to grow more than seven-fold to overtake the U.S. by 2050.

It is no wonder that foreign companies across all sectors are flocking to China to set up shop and capitalize on its growth. The country is a leading recipient of foreign direct investment, receiving $116 billion in 2011, according to China’s Commerce Ministry.

Growing wealth among Chinese firms has also led to an increasing amount of outward foreign direct investment — increasing the country’s influence on the world economy. In 2011 alone, China invested in 1,392 overseas projects in 132 countries, totaling $332 billion .

Dubbed the “world’s factory,” China’s economy has been largely fueled by its export sector. However, the country’s latest five-year plan aims to shift the economy’s focus to the development of its internal market. One way it plans to do so is by increasing the spending power of its 1.36 billion population by spurring job creation and implementing minimum-wage requirements. The government recently pledged to raise minimum wages by 13 percent a year through 2015 and launch measures to generate 45 million new jobs.

* Based on 2000 U.S. dollars

8. Egypt

Projected annual growth: 5.1%

2010 GDP: $160 billion*

2050 projected GDP: $1.165 trillion

Egypt, the Arab world’s second largest economy and most populous nation, is a hub for trade routes between Africa, Europe, and Asia due to its strategic location.

The economy relies heavily on agriculture and petroleum exports as well as tourism. Home to one of the most-visited attractions in the world, the Pyramids of Giza, Egypt’s tourism sector employs 10 percent of the country’s workforce and accounts for 11 percent of GDP .

The economy, however, is among the most fragile in this ranking due to Egypt’s political uncertainty. Violent anti-government protests that began in January 2011 and helped topple the government of Hosni Mubarak have continued into 2012. According to the investment bank Credit Agricole, each day of demonstrations costs the economy $310 million. The tourism and manufacturing sectors and foreign direct investment into the country have been most affected by the unrest. FDI, for example, fell 93 percent during the first nine months of 2011, according to central bank data.

While the political uncertainty is clouding the outlook for the economy, some economists believe the revolution, if successful, could bring about positive change that would far outweigh recent short-term losses, including reducing corruption and improving the distribution of wealth.

* Based on 2000 U.S. dollars

7. Vietnam

Projected annual growth: 5.2%

2010 GDP: $59 billion*

2050 projected GDP: $451 billion

As the world’s second-largest exporter of rice, agriculture has been a pillar of Vietnam’s economy. But this is rapidly changing as the government moves to liberalize and diversify the economy.

While, state-owned enterprises contribute 40 percent of the country’s GDP, overseas investment has been on the rise since the country was granted entrance into the World Trade Organization in 2007.

Vietnam’s low-cost manufacturing base has attracted a wave of foreign money, particularly by retail clothing and technology firms, looking for a cheaper alternative to China.

Intel, the first international technology company to make a major investment in the country six years ago, has helped raise Vietnam’s profile as an investment destination. A long list of companies including Samsung, Canon and Foxconn have followed, investing millions into developing manufacturing operations in the country. Analysts say this is helping to lay the foundation for Vietnam to become Asia’s next big electronics manufacturing hub.

Vietnam’s rapid growth in the recent years, however, hasn’t come without a price. The country’s pro-growth policies have resulted in record inflation. In 2011, consumer prices soared over 18 percent, doubling the rate in 2010.

* Based on 2000 U.S. dollars

6. Malaysia

Projected annual growth: 5.3 percent

2010 GDP: $146 billion*

2050 projected GDP: $1.16 trillion

Malaysia, Southeast Asia’s third-largest economy, also has one of the best economic records in the region, growing by an average 6.5 percent per year from its independence in 1957 to 2005, according to the CIA World Factbook.

Once dependent on mining and agricultural exports such as tin and rubber, Malaysia now boasts a diversified economy — a key factor in helping the country bounce back from the 1997 Asian financial crisis faster than its peers. It is now one of the world’s largest exporters of semiconductor devices, electrical goods and solar panels, and is a global center for Islamic banking.

The economy is also supported by a growing domestic consumer base, which the government hopes to boost even further in coming years. In 2010, the country’s prime minister unveiled a plan — the New Economic Model — aimed at more than doubling the per capita income in Malaysia by 2020.

However, it’s not all rosy for the Southeast Asian economy, which is facing an outflow of human capital to more developed countries. An increasing number of Malaysians are looking to countries such as Singapore and Australia for better education and career opportunities. The skills shortage is hurting the country’s ability to attract more high-tech, petrochemical and engineering companies from abroad, according to the Malaysian International Chamber of Commerce and Industry.

* Based on 2000 U.S. dollars

Click HERE to see the rest of the best countries for long-term growth

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Check Out: Asia-Pacific’s highest paid leaders

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Multi-billion dollar corruption in India and a whopping 36% cut in the salary for Singapore’s prime minister have once again raised the question: How much should politicians be paid?

We’ve tallied up a list of Asia Pacific’s highest paid politicians based on figures from a number of publicly available sources, including The Economist.

Some of Asia’s fastest growing and largest economies, such as India and China, have the lowest salaries for their leaders.

India’s Prime Minister Manmohan Singh for example takes in just USD 36,200 per year, according to AFP.

Susilo Bambang Yudhoyono, president of Indonesia

Annual Salary: USD 124,000

President Susilo Bambang Yudhoyono, the leader behind Indonesia’s newfound status as Asia’s “economic golden child,” pulls in USD 124,000 a year.

This sum amounts to over 25 times the country’s GDP per capita, according to The Economist. The leader is working on narrowing the wealth gap in the country by raising the salary of civil servants by 10%.

The former army general is credited with initiating a crackdown on corruption.

Lee Myung-bak, president of South Korea

Annual Salary: USD 162,000

Keeping tensions under control on the Korea peninsula is no easy task.

Lee Myung-bak’s annual salary is set to rise to USD 162,000 this year, according to the Chosun Ilbo newspaper, from USD 156,000 in 2011, putting him in seventh place among Asia’s top paid politicians.

However, Lee clearly isn’t in the job for the money. Shortly after he was elected president, the former CEO of Hyundai Construction & Engineering pledged to donate his full salary to the underprivileged during his five-year term.

He was said to be the richest presidential candidate in South Korea’s last election, with personal wealth exceeding 35.3 billion won or USD 31 million.

Ma Ying-jeou, president of Taiwan

Annual Salary: USD 184,000

Taiwan’s President Ma Ying-jeou rakes in a salary of USD 184,000 per year.

The Hong Kong-born, US-educated lawyer has played an instrumental role in improving relations with China.

Ma has raised the country’s permit quota for Chinese tourists, eased restrictions on Taiwanese investment in China and approved measures to open Taiwan’s equity markets to mainland investors.

John Key, prime minister of New Zealand

Annual Salary: USD 310,000

Fifth on the list is Prime Minister John Key of New Zealand.

He takes home an annual salary of around USD 310,000, according to The Wall Street Journal . Impressive for some, but probably not for Key.

Prior to politics, the Kiwi PM amassed a personal fortune of around USD 40 million, working as a foreign exchange trader with Merrill Lynch, where he earned as much as USD 2.25 million per year.

He is now New Zealand’s wealthiest member of Parliament and one of the region’s wealthiest leaders.

Click here to see the rest of Asia-Pacific’s highest-paid politicians from CNBC.com.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow