Engg exports may touch US$ 60 billion on US demand

Chennai: Union Minister for commerce and industry Nirmala Sitharaman on Thursday said India's engineering exports are likely to reach $60+ billion in fiscal 2016-17, on the back of revival of demand in the USA and for select products like iron.
"Just between April-January, our engineering exports have touched $50.87 billion, exceeding the total shipments of $49 billion in 2015-16. Only for the month of January, we've seen aggregate exports of $5.29 billion; that's a 12% increase compared to the same period last year, said Sitharaman on the sidelines of the sixth edition of International Engineering Sourcing Show (IESS) held in Chennai on Thursday.
There was enormous potential for India and Russia to enhance bilateral trade, which is presently at $6.62 billion, said the Minister, adding that she's had fruitful discussions with Denis Manturov, minister of industry and trade of the Russian Federation for leading a 120 member delegation.
"We were particularly interested in the North South Transport Corridor (INSTC) as it will cut time and costs for transporting goods between both countries, said the Minister. The INSTC aims at increasing trade by creating a land, air and ship route between India, Russia, Iran, Europe and Central Asia — touching cities like Mumbai, Moscow, Tehran, Baku, Bandar Abbas, Astrakhan, Bandar Anzali, enroute.
The Minister said they were also looking at other measures, including the proposed FTA between India and the Eurasian Economic Union, which includes Russia. "We need to finale the revised version of the Bilateral Investment Treaty. We've invited my counterparts to be a partner country at the India International Jewellery Show 2017 this July in Mumbai and the Advantage Healthcare India this October," said the Minister.
The department of commerce is keenly supporting technology upgrades for engineering manufacturers for boosting exports in line with the objectives of EEPC. "We are looking at R&D Labs and identified industrial clusters, so that our products are world class," said the Minister.
The International Engineering Sourcing Show held in Chennai saw 400 exhibitors from India and abroad.

Maharashtra to grow at 9.4% in 2016-17: Economic Survey

Mumbai: Achhe din for the BJP-led government in Maharashtra are here. According to the Economic Survey for 2016-17 presented in the state legislature, the gross state domestic product (GSDP) for 2016-17 is expected to grow by 9.4 per cent compared to 8.5 per cent in 2015-16.
The surge in growth is largely due to a 12.5 per cent growth in agriculture, 10.2 per cent in electricity gas, water supply and other utility services and 10.8 per cent in services.
The state economy will grow faster than the Indian economy, which is expected to grow by 7.1 per cent in 2016-17.
State Finance Minister Sudhir Mungantiwar said he hoped Maharashtra would achieve double-digit growth in the coming years and it would continue to retain its pre-eminent position in the national economy due to skillful fusion of technology, social structure, infrastructure backed by natural and human resources along with an organised method of production.
However, the rise in debt stock continues to be a matter of concern as it is estimated to be Rs 3.56 lakh crore in 2016-17 against Rs 3.20 lakh crore a year earlier. This is 15.7 per cent of the GSDP, within the limit of 22.1 per cent laid down by the 14th Finance Commission. The state’s interest payments will be Rs 28,220 crore against Rs 26,217 crore.
The state government’s revenue expenditure, especially on wages, pension and interest, is estimated at Rs 91,924 crore in 2016-17 against Rs 90,092 crore a year earlier.
On the other hand, capital expenditure is set to grow by 17.1 per cent to Rs 46,309 crore against Rs 39,714 crore in 2015-16.
Notwithstanding the Centre’s decision to withdraw currency notes of Rs 500 and Rs 1,000 on November 8, revenue receipts during April-December 2016 increased by 11.4 per cent to Rs 1.40 lakh crore.
The per capita income has grown by 11.4 per cent to Rs 1,46,399 in 2015-16 against Rs 1,32,341 in 2014-15. Maharashtra is second only to Karnataka, whose per capita income stands at Rs 1,48,485.
The agriculture and allied sectors are expected to grow at 12.5 per cent in 2016-17 against a decline of 4.5 per cent in 2015-16. The growth in agriculture alone is estimated at 19.3 per cent against a decline of 10.3 per cent in the previous year.
During the kharif season of 2016-17 the area under cereals is expected to grow by three per cent, pulses by 28 per cent and oilseeds by six per cent while the area under sugarcane will fall by 36 per cent and cotton by 10 per cent. However, the production of cereals is likely to increase by 80 per cent, pulses by 187 per cent, oilseeds by 142 per cent and cotton by 83 per cent while the production of sugarcane will fall by 28 per cent.
The area under rabi crops will be five per cent less than the previous year. The area under cereals will decrease by 16 per cent and oilseeds by 24 per cent while the area under pulses will rise by 22 per cent.
Ironically, the Economic Survey is silent on farmer suicides, which are continuing unabated.
The Economic Survey has not provided the actual area irrigated in 2016-17 citing revision in the process of collection of data. Under the state’s flagship Jalyukta Shivar Abhiyan (Water Conservation Project), 4,374 of 6,202 villages have been made water neutral and 11,82,230 thousand cubic meters of water storage was created in 2015-16.
Industrial Investments
According to the Economic Survey, the state continues to be the favoured destination by attracting 19,437 industrial proposals worth Rs 11.37 lakh crore between August 1991 and November 2016. Of these, 8,664 projects (44.6 per cent ) with an investment of Rs 2.69 lakh crore have been commissioned while 2,107 projects worth Rs 87,701 crore are under execution. The state’s share in industrial proposals nationwide was 17.9 per cent and in investment 10 per cent.
The state has approved 488 mega projects with an investment of Rs 3.79 lakh crore till December 2016. During the Make In India week in February 2016, the state signed 3,018 MoUs with a proposed investment of Rs 8.04 lakh crore. However, the Economic Survey has not disclosed the present status of those MoUs.
Social Sector Status
According to the Maharashtra Human Development Report (MHDR) 2012, the Human Development Index (HDI) of the state is 0.752. Mumbai comprising Mumbai city and suburban districts taken together has the highest HDI of 0.841 whereas the tribal dominated Nandurbar in north Maharashtra has the lowest HDI of 0.604. The literacy rate is 82.3 per cent and the literacy rate for Scheduled Castes is 79.7 per cent and that for Scheduled Tribes 65.7 per cent. Mungantiwar said that the government proposes to increase the literacy rate especially of the 10th passed out in the coming years.

'Made in India' steel to get preference in infrastructure projects: Steel secretary Aruna Sharma

New Delhi: The Ministry of Steel is taking a three-pronged approach to support the domestic industry, which has faced low demand and the influx of cheap imports. It is also trying to lower input costs, steel secretary Aruna Sharma told ET in an interview. Efforts are under way to mandate the use of 'Made in India' steel in government tenders to boost consumption. Edited excerpts:
Indian steel companies have been affected by an influx of imports. Will the government continue to protect them?
We are not against imports but we have to protect Indian steel against dumping. We will also not take any measure that is not WTO-compliant. Since August 2016, anti-dumping measures have been initiated and now 124 items are covered under it.
What steps are being taken to lower input costs for steel companies?
We are trying to improve the logistics network for movement of both raw material and products. For instance, the cost of transporting fines is the same as finished products – Rs 400. One solution is transporting it through slurry pipelines. Now, the railways have agreed to give right of way along railway tracks. We have got a map from pellet makers as to where they want to tap the fines both on the east and west coasts. NMDC will construct the slurry pipelines, which will be underground. Transport costs will thus come down to Rs 50 per tonne. Railways are joining hands in this since it is part of their business and they will also provide protection.
What about key inputs like iron ore and coking coal?
We are discussing reclassification of iron ore, which is under freight class 165 and shifting it to 145, the same as coal or 145A, which attracts a lower rate. We have also urged for reduction of the 2.5% customs duty on coking coal. Also, the coal ministry will invest in washeries to reduce the ash content of local coking coal from 17-18% to an average of 13%. Consequently, imports will reduce by 30%... Also, the pricing mechanism of natural resources like iron ore/coal/gas is being looked into by the Niti Aayog. PSUs in these sectors should be profit-making, not profiteering.
Energy costs, especially power, remain a critical issue.
For this, the power ministry is considering whether a combined bunch of smaller user industries can be allowed to take up 26% stake in a power venture to get the tag of a captive user. Alternative energy sources like liquefied natural gas are also being explored. Duty on LNG was cut down by half in the budget to 2.5%. The petroleum ministry is working on long-term contracts to ensure assured supplies. Pellet makers have already assured us that if gas is available, their entire production can shift to gas, which is cleaner and greener.
The National Steel Policy 2017 is looking at 300 million tonnes of capacity by 2025, but consumption remains low. What steps are being taken to boost it?
Our consumption is 60 kg per capita, while China is at 489 kg per person and the global average is 208 kg. We have a long way to go and are taking serious steps towards it. We are in the final stages of amending the General Financial Rules (GFR), which decide all government tenders. We are bringing the concept of lifecycle cost in GFR. So, if the desired quality is available, ‘Made in India’ or locally produced steel will get preference for big-ticket infrastructure projects and for instance, bridges and drinking water projects, etc. Builders will be encouraged to use steel, which is earthquake resistant.
Will you coordinate your efforts with other ministries, too?
Yes. The commerce ministry is coming up with a generic policy on this. The steel ministry is also talking to other ministries, which are big spenders on infrastructure, about the advantages of steel usage. While cost-effectiveness will remain the key, the focus will be on lower lifecycle cost of steel while evaluating projects. It took seven years for our per capita steel use to cross from 50 to 60 kg. However, we want to go from 60 to 70 kg per person in three years. If domestic consumption goes up, then with lower input cost, protection against dumping and market enhancement, our steel industry should be fortified against global upheavals.

Google pushes HTTPS for web security

Seoul: A HTTPS-based website is a safer way to protect users from possible security attacks, the security director at Google has said, emphasising that major South Korean search engines do not support this system.
"Top websites in (South) Korea that don't support HTTPS are Naver and Daum. It's not just a problem for (South) Korea but a challenge for the world and the developers," said Parisa Tabriz.
Tabriz heads the team who protects Google Chrome and its billions of users from criminal hackers, Yonhap news agency reported.
Google began adding security warnings for websites that do not use strong encryptions beginning in 2017, putting a clear "Not secure" warning next to online websites that use unencrypted HTTP connections rather than encrypted HTTPS connections.
Tabriz said HTTP websites, which account for nearly half of the world's websites, are vulnerable to attacks that Google calls in security terms, "man in the middle."
"Encryption will give the security we need. HTTPS does not solve all security problems, but it provides a foundation for this," she said.
As to some complaints that Google's HTTPS policy may be expensive and time-consuming, the security expert said switching to HTTPS is not easy but necessary.
"It is just a misconception that there is cost. It was true 10 years ago, but cost is no longer true for today," the Iranian-American hacker who protects Google said.
"Without the HTTPS, there is no privacy. We also published a transparency report," she said, adding that HTTPS websites have steadily increased during the past one year with Google's effort.
As for general security, she advised Internet uses not to reuse or use the same password for different websites since hackers know this, and they will attack the weakest website to obtain personal data.
"Don't login on shared computers and verify your account security setting," she added.

Insurance penetration in India likely to cross 4% this year: ASSOCHAM

New Delhi: Government's policy of insuring the uninsured has gradually pushed insurance penetration in the country and proliferation of insurance schemes are expected to catapult this key ratio beyond 4% mark by the end of this year, reveals the ASSOCHAM latest paper.
Despite the gentle rise in insurance penetration which is percentage of insurance premium with reference to the Gross Domestic Product (GDP), it is still far below the global average, according to paper titled 'Insurance penetration in India,' by the Associated Chamber of Commerce and Industry of India (ASSOCHAM).
The insurance penetration has started its northward journey is evident from the fact that it has increased from 3.3% in 2014 to 3.44% in 2015 on the back of various insurance schemes launched by the government, adds the paper.
As part of social security initiative, the government has launched low premium insurance schemes both life and non-life in 2015. Last year, it introduced crop insurance.
With objective to provide insurance cover to all, the Government launched Pradhan Mantri Suraksha Bima Yojna (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJBY) in 2015, noted the study.
PMSBY offers a renewable one-year accidental death or disability cover of Rs 2 lakh for partial/permanent disability to all savings bank account holders in the age group of 18-70 years for a premium of Rs 12 per annum per subscriber. The scheme is managed by general insurance firms, adds the chamber.
PMJJBY, on the other hand, offers a renewable one year life cover of Rs 2 lakh to all savings bank account holders in the age group of 18-50 years, covering death due to any reason, for a premium of Rs 330 per annum per subscriber.
Besides, Pradhan Mantri Fasal Bima Yojana (PMFBY) launched last year to provide financial support to farmers suffering crop loss or damage arising out of unforeseen events will also add to insurance penetration.
PMFBY has been approved for implementation in all States and Union Territories from Kharif 2016 season in place of National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS).
"PMFBY is a significant improvement over the earlier schemes on several counts and comprehensive risk coverage from pre-sowing to post-harvest losses are some of the salient points. A budget provision of Rs 5501.15 crore has been made for the scheme for the current crop season," ASSOCHAM President Sandeep Jajodia said.
Rashtriya Swasthya Bima Yojana (RSBY) is a government-run health insurance scheme that provides for cashless insurance for hospitalisation in public as well as private hospitals. The scheme is force since April 1, 2008 and has been implemented in 25 states.
The number of lives covered under Health Insurance policies during 2015-16 was 36 crore which is approximately 30 per cent of India's total population. The number has seen an increase every subsequent year as 28.80 crore people had the policy in the previous fiscal.
The measure of insurance penetration and insurance density calculated as the ratio of premium to population or per capita premium reflects the level of development of insurance sector in a country, said Sandeep said.

Record wheat, foodgrain output likely in 2016-17

New Delhi: Wheat production in the ongoing crop season is expected to be at an all-time high of 96.6 million tonnes (mt) on the back of good southwest monsoon, favourable weather and record acreage, the second advanced estimate for foodgrain production showed.
The estimate released on Wednesday also showed that overall foodgrain production, including kharif harvest, in 2016-17 was expected to be a record 271.98 mt, showing that demonetisation didn’t have a big impact on rabi crops.
If the production numbers turn out to be correct, agriculture and allied sector growth in 2016-17 could reach more than 5 per cent. The Central Statistics Office (CSO)’s had pegged growth at 4.1 per cent in the first advanced estimate of 2016-17. Agri growth in previous financial year was at 1.2 per cent.
"Although the record high growth in output of foodgrains and oilseeds bodes well for the trajectory of food prices, the seasonal rise in prices of vegetables and stickiness in prices of sugar, would result in retail food and beverages inflation rising over the next few months, from the series-low 1.3 per cent in January 2017. In addition to the estimate of crop production for the ongoing fiscal, the Central Bank would weigh the cues regarding the upcoming monsoon season while assessing the outlook for food inflation," Aditi Nayar, Principal Economist, ICRA Limited said.
The data also showed that production of mustard, the biggest oilseeds grown during the rabi season, was expected to be 7.91 mt, 1.11 mt more than last year.
Chana or gram production in 2016-17 was expected to be around 9.12 mt, 29 per cent more than last year. Overall, pulses production in 2016-17 was expected to be 22.14 mt, the highest India has produced.
This should help in reducing imports as consumption was estimated to be 23-24 mt. But this could signal bad news for farmers as prices have already dropped much below the minimum support price (MSP).
“Demonetisation was announced in November 8. By that time wheat sowing was already on. Thereafter climate was very favourable, which helped in raising the per-hectare yield, leading to a record wheat production this year,” P K Joshi, South-Asia Director of International Food Policy Research Institute (IFPRI), told Business Standard.
Demonetisation didn’t have any impact on rabi sowing as more than 80 per cent of rural economy ran on credit. “To me, in the final analysis, India’s agriculture and allied sector growth in 2016-17 is expected to be around 5-6 per cent, much more than the advanced estimated by CSO,” Joshi added.
The data also showed that among other crops, rice production in 2016-17 was expected to be a record 108.86 mt, almost 4.26 per cent more than last year. Oilseeds production in 2016-17 was pegged at a record 33.60 mt, soyabean output at 14.13 mt, groundnut at 8.47 mt and castorseed at 1.74 mt.
Last year, oilseed output was 25.25 mt and the previous record was 32.75 mt in 2013-15.
Coarse cereal output was estimated to be a record 44.34 mt this year, against 38.52 mt last year. The previous record was 43.40 mt in 2013-14.
The foodgrain basket comprises wheat, rice, pulses and coarse cereals.
Among cash crops, cotton output was estimated at 32.51 million bales (of 170 kg each) this year, against 30 million bales last year.
However, sugarcane output was likely to be lower at 309.98 mt this year, against 348.44 mt last year. Jute and mesta output was estimated to be lower at 10.06 million bales (of 180 kg each) against 10.52 million bales last year.
The government releases total four estimates on foodgrain production before the final one at various stages of production and harvesting period. It also lowered its last year’s wheat production to 92.29 mt, against the previous estimate of 93.5 mt.

Warburg negotiates to buy up to 40 per cent stake for Rs 2,300 crore of Tata Tech

Mumbai: Private equity firm Warburg Pincus is in advanced negotiations to acquire asignificant minority stake of up to 40 per cent in Tata Technologies for around Rs 2,300 crore, ending months of talks, said several people with knowledge of the matter.
The engineering design services company has been looking to offload 26-40 per cent of equity at a valuation of Rs 5,400 crore ($800 million) for almost a year and a half, said the people cited above.
It had also considered selling a majority stake to investors and an initial public offering, they said. “Warburg is the only investor with whom the Tatas are currently engaged,” said one of the persons.
“It will be interesting to see if Tatas give a revenue commitment for the future. The worry is the industry still looks at the company as a quasi-captive unit.”
A formal announcement is said to be imminent. The Singapore-headquartered company was founded in 1989 as a subsidiary of Tata Motors before becoming a standalone entity. Tata Motors still owns around 70 per cent of the company.
Second-Largest Shareholder
Tata Group entities such as Tata Capital and senior executives own 17 per cent while the rest is held by outside financial investors.
If a deal takes place, the new investor will likely become the second-largest shareholder after Tata Motors while existing ones like Tata Capital are likely to cash out, either in part or fully, said the people cited above.
The company says it’s a leader in “engineering services outsourcing and product development IT services to the global manufacturing industry” and looks to “apply cutting-edge technology to provide a competitive advantage to customers in the manufacturing sector”, according to its website.
More than half its turnover and a bigger share of profit come from Tata units, particularly Tata Motors and its Jaguar Land Rover (JLR) division. A third of its revenue comes from North America, Europe and the Asia-Pacific.
Nearly 65 per cent of its business comes from the automotive sector, 12 per cent from aerospace and the rest from industrial machinery and other businesses.
The company has been trying to increase its aerospace portfolio, especially in defence, as a de-risking strategy. Growing at a compounded annual growth rate of 16 per cent, the company is targeting $800 million (around Rs 5,300 crore) in revenue by 2020, $200 million of that through acquisitions.
In 2015-16, its consolidated revenue was Rs 2,714 crore and profit after tax was Rs 382 crore. A Warburg spokesperson declined to comment. “As stated before, from time to time, we review the performance of our non-core assets and companies and see how we can monetise them,” a Tata Motors spokesperson said.
“We do not have any additional comment to offer at this point of time.” Tata Motors has already announced annual capital expenditure plans of Rs 3,500-4,000 crore for the next three years, mainly to spruce up and strengthen its passenger car range.
JLR is to spend 3.5-4 billion pounds on capex. There was no response to emails sent to Tata Technologies CEO Warren Harris or the company’s spokesperson.
Other contenders
Carlyle, Apax Partners, the Canada Pension Plan Investment Board (CPPIB), Government of Singapore Investment Corporation (GIC) were all said to have previously evaluated the company but eventually opted out.
The initial valuation expectation of $1 billion was also a spoiler for most. The Tata Group had mandated Citi to find a strategic partner for the company.
“There is growing interest for businesses that provide solutions to the aerospace and defence sectors both from strategic investors as well as financial sponsors,” said Sanjeev Krishan, partner at PricewaterhouseCoopers.
“As automation increases, the need for technology solutions will increase leading to the attractiveness of such businesses from an investor’s standpoint.”
Warburg, among the earliest PE investors in India, successfully exited its investment in QuEST Global Services Pte, another engineering solutions provider, last February.
Bain Capital, GIC and Advent International cumulatively invested $350 million to pick up minority stakes. Warburg, which has deployed $3.8 billion in 51 companies in India since 1997, is looking to deepen its involvement, co-chief executives Charles R Kaye and Joseph P Landy told ET in a recent interview.
It plans to invest $8 billion in India over the next 10 years — twice what it did in two decades — as the New York-headquartered firm extends its long-term bet on one of its “most important markets in the world”. Last month it invested Rs 840 crore in PVR for a 14 per cent stake. Tata Motors’ third-quarter profit plunged 96 per cent to Rs 112 crore from the year earlier because of losses in the domestic business and operational weakness in JLR.

Global aerospace firms use tie-ups to tap India market

Bengaluru: The Indian aerospace and defence (A&D) sector has become a focus market as several global aerospace and defence companies have partnered with local Indian companies to expand, manufacture locally and encourage the Government's Make in India initiative. Mr Joseph Weiss, President, Israel Aerospace Industries (IAI) Ltd, has stated that his company is developing the medium-range surface-to-air missile with the Defence Research and Development Organisation (DRDO) and it has been expanding business in the country. IAI also has joint venture agreements with other local aerospace companies like Kalyani Strategic Systems, Tata Advanced Material, Bengaluru-based Alpha Design, and Dynamatics Technologies to manufacture products for India. Mr Tom Bell, Senior Vice-President, Boeing Defense, has stated that the US and Indian defence industries are poised to work collaboratively, to position India as a major defence partner of the United States. French aircraft manufacturer Airbus plans to establish a Centre of Excellence for aerospace skill development in Hyderabad. Defence and security company Saab too has offered a fighter sensor package for the homegrown Tejas LCA Mk1A fighter aircraft.

INDIA'S FOREIGN TRADE: January, 2017

New Delhi: I. MERCHANDISE TRADE
EXPORTS (including re-exports)
In consonance with the revival exhibited by exports in the last four months, during January,2017 exports continue to show a positive growth of 4.32 per cent in dollar terms (valued at US$ 22115.03 million) and 5.61 per cent in Rupee terms (valued at Rs. 150559.98 crore) as compared to US$ 21199.02 million (Rs. 142568.31 crore) during January,2016.
Cumulative value of exports for the period April-January 2016-17 was US$ 220922.78 million (Rs. 1484473.55 crore) as against US$ 218532.64 million (Rs. 1420572.68 crore) registering a positive growth of 1.09 per cent in Dollar terms and positive growth of 4.50 per cent in Rupee terms over the same period last year.
Non-petroleum exports in January 2017 were valued at US$ 19422.86 million against US$ 19111.38 million in January 2016, an increase of 1.6 %. Non-petroleum exports during April - January 2016-17 were valued at US$ 196254.10 million as compared to US$ 192071.50 million for the corresponding period in 2016, an increase of 2.2%.
The growth in exports is positive for USA (2.63%),EU(5.47%) and Japan(13.43%) but China has exhibited negative growth of (-1.51%) for November 2016 over the corresponding period of previous year as per latest WTO statistics.
IMPORTS
Imports during January 2017 were valued at US$ 31955.94 million (Rs. 217557.32 crore) which was 10.70 per cent higher in Dollar terms and 12.07 per cent higher in Rupee terms over the level of imports valued at US$ 28866.53 million (Rs. 194134.02 crore) in January, 2016. Cumulative value of imports for the period April-January 2016-17 was US$ 307311.86 million (Rs. 2065656.42 crore) as against US$ 326277.38 million (Rs. 2120158.57 crore) registering a negative growth of 5.81 per cent in Dollar terms and 2.57 per cent in Rupee terms over the same period last year.
CRUDE OIL AND NON-OIL IMPORTS:
Oil imports during January, 2017 were valued at US$ 8140.83 million which was 61.07 percent higher than oil imports valued at US$ 5054.29 million in January 2016. Oil imports during April-January, 2016-17 were valued at US$ 69062.66 million which was 5.81 per cent lower than the oil imports of US$ 73321.66 million in the corresponding period last year.
Non-oil imports during January, 2017 were estimated at US$ 23815.11 million which was 0.01 per cent higher than non-oil imports of US$ 23812.24 million in January, 2016. Non-oil imports during April-January 2016-17 were valued at US$ 238249.20 million which was 5.81 per cent lower than the level of such imports valued at US$ 252955.72 million in April-January, 2015-16.
II. TRADE IN SERVICES (for December, 2016, as per the RBI Press Release dated 15th February 2017)
EXPORTS (Receipts)
Exports during December 2016 were valued at US$ 13804 Million (Rs. 93729.71 Crore) registering a positive growth of 3.49 per cent in dollar terms as compared to positive growth of 1.72 per cent during November 2016 (as per RBI’s Press Release for the respective months).
IMPORTS (Payments)
Imports during December 2016 were valued at US$ 8294 Million (Rs. 56316.59 Crore) registering a negative growth of 0.35 per cent in dollar terms as compared to positive growth of 8.37 per cent during November 2016 (as per RBI’s Press Release for the respective months).
III.TRADE BALANCE
MERCHANDISE: The trade deficit for April-January, 2016-17 was estimated at US$ 86389.08 million which was 19.82% lower than the deficit of US$ 107744.74 million during April-January, 2015-16.
SERVICES: As per RBI’s Press Release dated 15th February 2017, the trade balance in Services (i.e. net export of Services) for December, 2016 was estimated at US$ 5510 million. The net export of services for April- December, 2016-17 was estimated at US$ 48316 million which is lower than net export of services of US$ 53557 million during April- December, 2015-16. (The data for April-December 2015-16 and 2016-17 has been derived by adding April-December month wise QE data of RBI Press Release).
OVERALL TRADE BALANCE: Overall the trade balance has improved. Taking merchandise and services together, overall trade deficit for April- January 2016-17 is estimated at US$ 38073.08 million which is 29.7 percent lower in Dollar terms than the level of US$ 54187.74 million during April-January 2015-16. (Services data pertains to April-December 2016-17 as December 2016 is the latest data available as per RBI’s Press Release dated 15th February 2017)
MERCHANDISE TRADE
EXPORTS & IMPORTS : (US $ Million)(Provisional)
EXPORTS (including re-exports) JANUARY APRIL-JANUARY
2015-16 21199.02 218532.64
2016-17 22115.03 220922.78
% Growth 2016-17/ 2015-16 4.32 1.09
IMPORTS
2015-16 28866.53 326277.38
2016-17 31955.94 307311.86
% Growth 2016-17/ 2015-16 10.70 -5.81
TRADE BALANCE
2015-16 -7667.51 -107744.74
2016-17 -9840.91 -86389.08
EXPORTS & IMPORTS : (Rs. Crore) (Provisional)
EXPORTS (including re-exports) JANUARY APRIL-JANUARY
2015-16 142568.31 1420572.68
2016-17 150559.98 1484473.55
% Growth 2016-17/ 2015-16 5.61 4.50
IMPORTS
2015-16 194134.02 2120158.57
2016-17 217557.32 2065656.42
% Growth 2016-17/ 2015-16 12.07 -2.57
TRADE BALANCE
2015-16 -51565.71 -699585.89
2016-17 -66997.34 -581182.87
SERVICES TRADE
EXPORTS & IMPORTS (SERVICES) : (US $ Million)
(Provisional) December 2016-17
EXPORTS (Receipts) 13804.00
IMPORTS (Payments) 8294.00
TRADE BALANCE 5510.00
EXPORTS & IMPORTS (SERVICES): (Rs. Crore)
(Provisional) December 2016-17
EXPORTS (Receipts) 93729.71
IMPORTS (Payments) 56316.59
TRADE BALANCE 37413.12

L&T, European co MBDA tie up for missiles

NEW DELHI: Engineering conglomerate L&T entered into a joint venture on Monday with European defence major MBDA to develop and produce new-generation tactical missiles for the Indian armed forces.
L&T will own 51% in the JV , named 'L&T MBDA Missile Systems' to be registered in India, with the European company holding 49%, in keeping with FDI norms in defence. The JV will initially work to develop and supply fifth-generation, anti-tank guided missiles, missiles for coastal defence batteries and high-speed target drones to the Indian forces.
L&T group executive chairman A M Naik said his company also hopes to ink the Army's Rs 4,600-crore contract for 100 tracked, self-propelled guns within a month or so. The K9 Vajra-T Howitzer has been developed by L&T in collaboration with Korean company Samsung Techwin, as was earlier reported by TOI.
As for the JV, Naik said L&T and MBDA, which is the world's largest exporter of missiles, have been already working together for over five years now. "We feel the time has now come to strengthen the partnership for the government's `Make in India' initiative," he said.
MBDA CEO Antoine Bouvier, said, "Our business strategy in India has always been focused on forming partnerships at the deepest level, not just with the armed forces but also with the Indian industry . The setting up of the JV is a natural progression...It's a strategic partnership between India and Europe."
The JV will bid for different military projects under the new IDDM (indigenous design, development and manufacturing) category of the Defence Procurement Procedure of 2016, which has been accorded top-most priority by the government to boost the country's fledgling defence-industrial base.