Rupee Trades Flat At 66.67 Against Us Dollar

Mumbai: The Indian rupee on Wednesday erased most of the losses and was trading little changed against the US dollar, ahead of the key inflation and index of industrial production (IIP) data on Thursday.

At 2pm, the home currency was trading at 66.67, up 0.01% from its previous close of 66.68. The rupee opened at 66.83 a dollar and touched a low of 66.84, a level last seen on 26 April.

The government will issue Consumer Price Index (CPI) and IIP data on 12 May after 5.30pm. According to Bloomberg estimates, CPI will be at 5.05% for April against 4.83% in March. The IIP will be at 2.5% in March as compared to 2% in February.

In morning trade, the rupee fell as much as 0.24% on India-Mauritius tax issue.

India will shut the door on investors using Mauritius and Singapore to avoid paying taxes in India, starting in the next financial year, in order to curb tax evasion, in a move that could also impact capital inflows. India will get the right to tax capital gains on investments channelled through Mauritius under an amended tax treaty it signed with the island republic on 10 May in Port Louis, Mint reported.

The amendment to the 1983 India-Mauritius treaty, which will come into force on 1 April 2017, will also apply to the India-Singapore treaty, shutting two lucrative investment routes preferred by foreign investors. The India-Singapore treaty links the capital gains tax regime to that provided in the India-Mauritius treaty, the report added.

The changes will have an impact on foreign investors who route their investments from these two countries to avoid paying capital gains tax in India.

“This government is serious about tax reforms and clarity to address the ease of doing business. Yes it would push tax costs for investors but there is certainty and clarity. India in the medium to long term will contribute to attract acting investments, and a stable environment will augur well for the India rupee which would make the tax cost look insignificant,” said Mukesh Butani, managing partner of BMR legal.

India’s benchmark Sensex index fell 0.79% or 204.04 points to 25,568.49. So far this year, Sensex is down 2.1%.

India’s 10-year bond yield was trading at 7.427%, as compared with its Tuesday’s close of 7.427%.

So far this year, the rupee has weakened 0.83%, while foreign institutional investors have bought $1.76 billion from the local equity market and sold $42.90 million in debt markets.

Asian currencies were trading mixed. Japanese yen was up 0.55%, South Korean won 0.46%, Philippines peso 0.42%, Malaysian ringgit 0.16% and China renminbi 0.14%. However, Indonesian rupiah was down 0.18%, Thai baht 0.13%, Singapore dollar 0.1% and Taiwan dollar 0.05%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.09, down 0.22% from its previous close of 94.29.

 

Source:livemint.com

Agriculture Exports Fell 10% In 2015-16

India’s agricultural and processed food exports fell by close to 20% in the last fiscal compared with FY15. This is mainly because of decline in shipments of major exportable items such as rice, buffalo meat and guargum in 2015-16. However, for a second year in a row, exports of buffalo meat exceeded that of Basmati rice.

According to data from the Agricultural and Processed Food Products and Export Development Authority (Apeda), the value of agri-product exports fell to R1.05 lakh crore in FY16 against R1.31 lakh crore reported in FY15. “The fall in shipments is mainly because of lower global commodity prices and sluggish demand abroad,” an official said.

Exports of buffalo meat, while declining 8% in value terms to R26,682 crore in the last fiscal, still remained the largest item in the Apeda export basket. Buffalo meat exports surpassed the value of Basmati rice exports for the first time in FY15.

Shipments of the aromatic grain fell 17% by value to R22,714 crore in FY 16 mainly because of lower exports to Iran and a fall in prices. In the case of exports of non-Basmati rice, the decline was a steep 26% in terms of value.

Sources said that the average realisation from Basmati exports has fallen from $1,295 per tonne in FY14 to around $850 a tonne in FY16 while for non-Basmati rice, the fall was to $350 per tonne in the last fiscal from around $450 per tonne two years earlier.

“Countries such as Nepal, Bangladesh and Sri Lanka, besides African countries such as Nigeria and Kenya, have cut down on rice import mainly because of sluggish economic growth there,” a rice exporter told FE.

Exports of guargum, mostly used by US-based oil exploration company, declined by more than 61% to Rs 3,613 crore in 2015-16 compared with Rs 9,478 crore in the previous year.

However, shipments of fresh fruit and vegetables saw a 10% rise in FY16 to Rs 8,681 crore.

Apeda monitors shipment of 22 commodities such as rice, wheat, buffalo meat, fruit and vegetables, pulses and other meat products. The authority has identified 20-odd clusters located for sustaining growth in the country’s food products’ exports. These clusters include Basmati rice (Haryana and Punjab), buffalo meat (western Uttar Pradesh), grape and wine (Nashik region, Maharashtra), pomegranate (Satara and Pune regions of Maharashtra), dehydrated onions and garlic (Gujarat), poultry or egg (Namakkal) and mango pulp (Uttar Pradesh and Maharashtra).

 

Source:financialexpress.com

India Doubles Its Grape Exports To Europe

PUNE: Exports of grapes from India touched an all-time high in 2015-16, with exports to Europe more than doubling compared to that in the previous financial year, even as India became an importer of many other commodities such as maize, wheat and soyabean.

Using tanker water, farmers from Maharashtra, which accounts for nearly 98% of grapes shipped during the fiscal, exported grapes at a price cheaper than that charged by Chile. By May 10, with the last few shipments of grapes still in transit, India had exported 84,482 tonnes of grapes to Europe compared to 41,783 tonnes exported a year ago, a growth of 102%.

"We expect the total exports to be over 2 lakh tonnes. The earlier high was 1.92 lakh tonnes," said Jagannath Khapre, president of All India Grape Exporters Association. Apart from Europe and West Asia, Bangladesh, the Far East, Russia and China are the other export destinations for Indian grapes. Compared to 10-12 euros per box of Chilean grapes, Indian grapes were sold at 8-10 euros per box.

"Because of good quality and cheaper price, India was able to establish itself in the European market as a reliable supplier of grapes," said Ashok Motiani, managing director of Freshtrop Fruits.

 

Source :economictimes.indiatimes.com

Ford Ecosport Is The Most Exported Car In India

After dominating the sub-compact SUV space, the EcoSport has added yet another feather in Ford’s hat. The SUV from the automaker’s line-up has emerged as the most exported car of India.

The EcoSport has climbed to the top spot after ranking fourth in last year’s export list. While Ford India exported 55,178 units in 2015, this time the number increased to 83,325 – a rise of approximately 51 per cent. Last year’s top performer, the Nissan Micra, has been able to more or less continue its performance by exporting 76,120 units in 2016 compared to 75,456 in 2

Source :.business-standard.com

Smuggling To Avoid Taxes Will Push Indian Gold Imports Towards Record Level: Anz

India's gold imports could hit a record high this year amid widespread smuggling to sidestep government levies on overseas shipments, Australia and New Zealand Bank, Asia's biggest shipper of physical gold, said on Wednesday.

The forecast by the bank's head of precious metals, John Levin, runs counter to tallies that show gold imports in decline in the world's second-biggest gold market after China.

Levin said he expects 15 percent of India's gold this year to be "smuggled in" or arrive via "other unofficial channels" to beat a 10 percent levy imposed by the government.

Levin also said more semi-refined gold, known as gold dore, was being imported from overseas mining companies because of a lower government levy.

The import duty on gold dore is 8.5 percent.

"You could see a record amount of gold going into India this year," Levin said, "A lot through unofficial channels and a lot of it going in as semi-refined gold."

However, industry officials say unofficial imports are also coming down as Indian market prices trade at a discount to the U.S. dollar spot price.

As recently as a few weeks ago, Indian importers were offering discounts as high as $40 per ounce, or nearly 3 percent of the value to attract buyers.

This has been discouraging smugglers as their margins have been squeezed, Daman Prakash Rathod, a director at MNC Bullion, a wholesaler in the southern Indian city of Chennai, said on Wednesday.

Officially, India's gold imports in the 2015/16 fiscal year that ended on March 31 dropped 16 percent from a year ago to 926 tonnes.

ANZ last year handled about 15 percent of the world's gold shipments, according to Levin.

 

Source :economictimes.indiatimes.com

Rupee Falls To Two-Week Low Of 66.74 Per Us Dollar

Mumbai: The Indian rupee on Tuesday weakened against the US dollar, tracking losses in its Asian peers.

At 2.13pm, the home currency was trading at 66.68, down 0.11% from its previous close of 66.58. The rupee opened at 66.69 a dollar and touched a low of 66.74, a level last seen on 26 April.

Asian currencies were trading lower. Malaysian ringgit was down 0.95%, South Korean won 0.61%, Japanese yen 0.59% and Taiwan dollar 0.29%. However, Philippines peso was up 0.76%, Singapore dollar 0.19% and Indonesian rupiah rose 0.18%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.142, up 0.01% from its previous close of 94.128. Since 2 May, it gained 1.8%.

Minneapolis Fed president Neel Kashkari on Monday said he supported the current dovish stance of the Federal Reserve, during a speech to the Economic Club of Minneapolis. Chicago Fed president Charles Evans, speaking in London, said a stronger labour market is underpinning growth prospects, Reuters reported.

India’s benchmark Sensex index rose 0.32% or 83 points to 25,766.35. So far this year, Sensex is down 1.3%.

India’s 10-year bond yield was trading at 7.428%, as compared with its Monday’s close of 7.425%.

So far this year, the rupee has weakened 0.7%, while foreign institutional investors have bought $1.71 billion from the local equity market and sold $143.90 million in debt markets.

Traders are cautious ahead of the Chinese inflation data expected later on Tuesday. China’s consumer inflation might show a rise to its highest levels since May 2014.

 

Source:.livemint.com

Sugar Output May Fall By 4% In 2016-17, But No Need To Import

NEW DELHI: India's sugar production is likely to fall by 4 per cent to about 24 million tonnes in the next marketing year starting October due to lower cane output, but there will not be any need to import as the country has sufficient stock, according to industry body ISMA.

Sugar production of India, the world's second largest producer after Brazil, is likely to fall at about 25 million tonnes in the ongoing 2015-16 marketing year (October- September) from 28.3 million tonnes in the previous year.

"Based on the sugarcane planting area, sugar production is expected at at least 24 million tonnes in the next season," Indian Sugar Mills Association (ISMA) President Tarun Sawhney told reporters here today on the sidelines of an event.

He said the production in Maharashtra and Karnataka is expected to fall due to lower cane plantation in the two drought-affected states, but the same would be compensated by the Uttar Pradesh and Tamil Nadu millers to some extent.

Asked about the need to imports in next season, Sawhney said: "We have more than enough sugar sugar in the country. We don't want any import of sugar in the country."

The association wants the sugar import duty to continue at 40 per cent, he added.

The closing stock at the end of the season would be around 7-7.5 million tonnes, taking the total sugar availability to over 31 million tonnes in the 2016-17 season, he said, while pegging the domestic demand at 26 million tonnes.

"Sugar stock at the end of 2016-17 season which is September next year would be around 5 million tonnes, which is sufficient for 2-3 months consumption," Sawhney explained.

On rising retail prices of sugar, ISMA President said that the trade margins have increased and same should not be more than Rs 6 per kg.

Sawhney said the mills would be comfortable with Rs 36 per kg ex-mill price of sugar, which means retail price of Rs 42 per kg. The average ex-mill price of sugar is currently at Rs 33 per kg.

Recently, the Centre had said that there would not be sugar shortage in the country in the 2016-17 season despite lower domestic output, as the total availability at 30-31 million tonnes would be suffice to meet the demand.

"...notwithstanding any shortfall in sugar production during 2016-17 sugar season (estimated 23-24 million tonnes), the total availability in India (30-31 million tonnes) would be sufficient to meet the domestic consumption," the Food Ministry had said in a statement.

As the sugar prices crossed Rs 40 per kg in the retail markets, the Centre has empowered state governments to impose stockholding limits on sugar traders.

 

Source :economictimes.indiatimes.com

Rising Steel Imports: India Should Take Lessons From Uk

Steel import volume for April at 17% lower than the previous year indicates that the steps taken by the government, specially MIP, have proved effective, although the full impact of the measure is likely to be felt in May. It must be appreciated that rise in global prices in the last 4 months has taken the sheen away from cheap imports and focus more on demand from the end-using sectors as the primary saving tool for rejuvenating the steel industry.

The disastrous experience for the industry in terms of surplus capacity, poor demand, low profitability and resultant unemployment in the last 2 years have also made us look afresh to all trade treaties, RCEP and FTAs. It is too early to say if the past events would bring us back to the multi-lateral trade treaties by delaying the ongoing process of negotiations in other forms of bilateral trade.

India continues to remain a member of the exclusive club that shows a positive outlook for steel along with Vietnam, Turkey, the US, North Africa and Iran. It is good to learn from the experience of other advanced countries where steel industry has become nearly saturated due to a multiplicity of factors. For instance, the UK, the Harbinger of Industrial Revolution in 1760 and associated with transfer of steel technology for our Durgapur Steel Plant way back in 1960s, poses a serious challenge for the survival of the steel industry.

There are genuine structural imbalances in the UK causing tough problems for steel demand. Mechanical machinery, electrical equipment, domestic appliances, railways and shipping transport segments have been experiencing negative growth with the sole exception of automobile sector. The slow growth in construction has led to a negative growth in industrial production in that country.

It is worth mentioning that in the UK the Steel Construction Institute (SCI) set up in 1970s was the foremost research institute to propagate the use of steel in construction. It was instrumental in popularising the application of steel in residential and office building construction and took the country far ahead in use of steel in construction as compared to other members of the developed league. SCI also provided the guidelines for setting up the Institute for Steel Development and Growth in India in 1996.

However, since 2012 things took a turn for the worse. GDP growth in the UK was hovering around 1.5-2.5%, but what was significant was that steel intensity of GDP in the UK was becoming the lowest among the other members of EU namely, France, Italy, Germany, the Netherlands, Spain, Poland and Hungary. The current apparent consumption of steel in the UK at 10.5 MT has been projected by WSA to grow to 10.6 MT in 2016 and 10.9 MT in 2017, only by 0.4 MT in 2 years.

Imports were rising at a higher rate compared to exports suffering from a volatile currency. It had led to a current account deficit of nearly 4.2% of GDP. The unemployment rate has crossed 5% bench mark. Steel products of the UK have become non-competitive due to high energy cess which is roughly 50% higher than in Germany. In addition the extra costs imposed by climate change policies have put additional burden on the industry. In spite of having cost disadvantages at every stage of production relative to its competitors, the UK could deliver steel at a lower cost in its local market for at least 50% of its product categories.

But cheap imports from China, South Korea and Turkey have made steel manufacturing and marketing from the UK rather difficult. May be suitable trade measures like anti-dumping, countervailing and safeguard duties against cheap import sources could have provided some temporary relief to the beleaguered steel industry in the UK including Tata Steel, but a steep decline in demand from the major end-using sectors have caused havoc and death knell for the industry.

While India needs public and private investment in urban and rural infrastructure, real estate, roads, railways, civil aviation and irrigation to boost up steel consumption, the industry is to continue its thrust on improving quality and reduce cost of production to become competitive. The government must support the industry with suitable trade measures to thwart predatory pricing from cheap imports and save the industry from similar experiences like in the UK.

 

Source :.financialexpress.com

Make In India: Gm India Plans To Double Exports From India

General Motors India on Monday said that it is looking at more than doubling its exports in the current year and its Talegaon facility will become the export hub for the auto major in the country. GM India which exported 21,000 units in 2015 is eyeing a number of 50,000 in 2016.

On Monday the company also rolled out the first vehicle meant for shipment to Argentina which is its sixth major export market. GM India exports its left hand driven Beat model to countries including Mexico, Chile, Peru, Central American and Caribbean Countries (CAC) and Uruguay.

The Chevrolet Beat recorded the highest growth for any passenger vehicle exported from India and became the sixth most exported passenger vehicle out of India during financial year 2015-16, with a total of 37,082 units, GM India said in a statement here.

“The new export market is a testimony to our commitment to provide the quality standards to global customers from the Talegaon plant. Whether it is in India or anywhere else in the world, General Motors follows the quality standards in its manufacturing processes providing same high quality vehicles that customers in India and around the world expect and deserve,” GM India president and MD Kaher Kazem said.

The Beat, badged as Spark outside India, is available in more than 70 markets worldwide and has sold over 1 million units. The Beat is produced at GM India’s manufacturing facility in Talegaon, Maharashtra, which has a base capacity of 130,000 vehicles. GM India began vehicle exports from India to Chile in September 2014.

“In 2016, we plan to export over 50,000 vehicles, compared with 21,000 vehicles last calendar year, reinforcing our commitment to the Indian market and our strong local supplier base. This is part of GM’s strategy to make India an export hub for global markets and will help increase capacity utilisation at our Talegaon plant. We expect to identify additional export markets going forward,” Kazem said.

 

Source:.financialexpress.com

Silver Jewellery Exports Quadruple In Five Years

 At a time when the global luxury market is struggling to attract customers to keep their exports afloat, silver jewellery exports from India skyrocketed over the last five years. Silver jewellery exports from India quadrupled since 2010-11 due to rapid shift in consumer preferences in favour of light weight, modern and contemporary designs of gemstones studded ornaments without compromising on the “feel good” pride.

Data compiled by the apex trade body Gems and Jewellery Export Promotion Council (GJEPC) showed India’s silver jewellery shipment at $2959 million in the financial year (FY) 2015-16 compared to $566 million in FY 2010-11. From the previous financial year i.e. 2014-15, however, exports of silver ornaments recorded a jump of 44%.

The growth in silver jewellery exports has opened an opportunity for Indian designers to compete with existing market leaders — including Thailand, China and Turkey. Subdued price quote and growing consumer confidence have lured customers to pick an alternative to gold with guaranteed buyback. All these factors have resulted in growth of silver jewellery exports from India.

“There is a silver lining in silver jewellery exporters. Until a few decades ago, India was exporting primary silver bars. Today, the world can see our presence in silver jewellery. Our growth indicates that we can easily become the largest silver jewellery exporter in the world,” said Praveen Shankar Pandya, chairman, Gems and Jewellery Export Promotion Council (GJEPC).

Silver prices in the international markets have declined by 50% over the last five years to trade currently at $15.44 an oz. Silver price marginally recovered in financial year 2017 though. In domestic markets, however, the impact of price fall was limited due to depreciation in the Indian rupee. In domestic currency, silver slipped to Rs 36,990 a kg, a decline of 34% from the level of Rs 56290 a kg in FY 2011-12.

“The slowdown in European manufacturing activity has benefitted India over the last few years. Understanding the need of overseas consumers, India has invested immensely in technology advancement for modern and contemporary designs of intrinsic jewellery. So, accumulating all, India is reaping the advantage of its expertise in the jewellery sector,” said Rahul Mehta, managing director, Silver Emporium, one of India’s largest silver jewellery exporters.

Silver Emporium is planning to set up a large warehouse in the United States to serve its customers in American countries efficiently.

India is in the nascent stage in terms of silver jewellery exports as the industry needs government policy support. A few years ago, India had a policy for duty drawback on silver which despite repeated reminders, exporters are yet to receive payment from the government.

“Such unfavourable policies prevent us from exports despite huge appetite for Indian jewellery in global markets,” said Mehta.

Meanwhile, India’s silver import too jumped four-fold in the last three years from 1900 tonnes in 2011-12 to 7954 tonnes in FY 2014-15.

 

Source:.business-standard.com

India Is The Largest Producer Of Coir In The World

India is the largest producer of coir in the world with a production of 5,42,000 MT which comes to around 55% of world production of coir. India is followed by Sri Lanka and Vietnam in terms of production of coir.

Government of India is implementing various Schemes for promotion of coir in the country and to enhance the production and export of coir and coir products. The Schemes are Coir Udhyami Yojana, Science & Technology and Coir Vikas Yojana comprising of components like Skill Upgradation, Quality Improvement Scheme and Mahila Coir Yojana, Export Market Promotion & Domestic Market Promotion. Government is also implementing the Scheme of Funds for Regeneration of Traditional Industries(SFURTI) for development of Coir Clusters. Under the ASPIRE Scheme of the Ministry of Micro, Small and Medium Enterprises (MSME), Coir Board is in the process of establishing Livelihood Incubation Centres in various parts of the country, which will provide training and handholding support to new entrepreneurs of coir sector.

The thrust of Government has been to promote production of coir in the non-traditional States for which Coir Board has recently opened offices in Sindhudurg in Maharashtra, Kavaratti in Lakshadweep and Port Blair in Andaman & Nicobar Islands. In addition, Government through Coir Board has been focusing on production of value added products to cater to domestic as well as foreign markets.

 

Source:.business-standard.com

Market Coverage For Export Incentives Extended To All Countries

New Delhi, May 5 (IANS) To make easier doing business in India, the government on Thursday announced revocation of the earlier requirement of landing certificates to be submitted by exporters under the Merchandise Export from India Scheme (MEIS).

"The government has decided to extend the market coverage to all countries. Henceforth, landing certificates shall not be required under MEIS with effect from May 4, 2016," said a commerce ministry release here.

"Out of total 5,012 tariff lines under MEIS, incentives to 2,787 lines was available only to limited countries. Therefore, it required submission of landing certificates for claims. Government had received many representations pointing out difficulties in obtaining landing certificate from shipping Lines/agents etc.

"Government has decided to extend the market coverage to all countries in respect of these 2,787 lines. Accordingly, revenue foregone under the scheme has been revised from Rs.21,000 crore per annum to Rs.22,000 crore per annum," it added.

Aimed to incentivise merchandise exports, MEIS was introduced in the Foreign Trade Policy (FTP) 2015-20, approved in April last year.

The current trade policy has merged all the earlier export promotion projects under two plans - MEIS and the Served from India scheme (SFIS) - for services exporters.

As part of this initiative, the import duty exemption scrips valued at 10 percent of the foreign exchange earned, which are given to service exporters as an incentive, have been made "tradeable" and can be used for service tax, customs and excise duty payments.

"There is no conditionality in any of the scrips issued under these two schemes," Commerce Minister Nirmala Sitharaman has said regarding MEIS and SFIS.

As a measure to boost special economic zones, units within them have also been permitted to avail the benefit of the two merged schemes.

India's exports declined for the 16th straight month in March, with exports falling by 5.47 percent to $22.71 billion in the month, while for 2015-16, exports declined by 15.8 percent to $261.13 billion.

 

Source:timesofindia.indiatimes.com
 

Component Export From India To Touch Rs 1,500 Cr In Fy17: Honda

Japanese auto major Honda expects its components exports from India to jump by up to 50 per cent to around Rs 1,500 crore in the current fiscal as it widens the basket of products supplied to its global operations from here.

The company, which has identified India as a global hub for components, exports different engine parts, forgings and transmissions along with others, produced at its Tapukara plant in Rajasthan to a host of global operations.

“Our exports of components from India has been growing each year. Last fiscal, we did around Rs 1,000 crore and this year we are looking at exporting components worth around Rs 1,400 crore to Rs 1,500 crore,” Honda Cars India Senior Vice-President and Director Raman Kumar Sharma said here.

The company has been expanding to new markets for component exports from India. Last year, it started exporting to the US, China and Canada to add to the existing markets, including Japan, Thailand, Malaysia, Indonesia, Philippines, Taiwan, Vietnam, the UK, Brazil and Mexico.

“We also export components of the Jazz, which is a global model,” he said.

Explaining factors behind the increase of exports from India, Sharma said: “There is availability of global quality products at a low cost. When global companies come to India to sell cars, they suddenly find world class components at such competitive prices and hence take the opportunity.”

Honda’s exports of auto components from India has been gradually increasing. In 2013-14, its component exports had a turnover of Rs 420 crore.

Sharma said Honda India has also been playing a key role in supplying diesel engine parts the Japanese parent’s operations in the UK, Turkey and Indonesia.

At present, Tapukara plant has an annual production capacity of 3 lakh units of diesel engines per annum.

 

Source:.financialexpress.com

India To Gradually Move To Gas-Based Economy: Dharmendra Pradhan

NEW DELHI: India plans to shift to a gas-based economy by boosting domestic production and buying cheap liquefied natural gas (LNG) as the world's third-biggest oil importer seeks to curb its greenhouse emissions, oil minister Dharmendra Pradhan said.

New Delhi has promised to shave a third off its emissions rate by 2030, partly by boosting the use of cleaner burning fuels.

"Gradually we are shifting towards a sustainable gas economy," Pradhan told Reuters in an interview.

Gas accounts for about 8 percent of India's energy mix, while oil accounts for more than a quarter.

India's gas supply deficit is expected to widen from 78 million cubic metres a day (mscmd) this fiscal year to 117 mscmd in 2021-22, according to a government estimate.

India recently negotiated better terms for a long-term LNG deal with Qatar and importer Petronet LNG is in talks with Exxon to renegotiate pricing for gas from Australia's Gorgon project.

"The price should be affordable to us. We respect long-term contracts but everybody has to appreciate the changing scenario," said Pradhan. "In a bigger canvas ... India has the potential of a huge market base".

Pradhan last month visited Saudi Arabia, the United Arab Emirates and Iran to deepen ties with its main oil suppliers.

"We want to move beyond a buyer-seller relationship," he said, adding that India was offering them stakes in its pipelines, petrochemical complexes and refineries.

India is also in talks with Abu Dhabi National Oil Co and Saudi Aramco to lease strategic oil storage.

GAS GIANT
Pradhan said Prime Minister Narendra Modi's visit to Iran later this month would "certainly" deliver concrete results.

Iran has set aside its Farzad B gas field for development by Indian firms, a move that could result in the building of an LNG plant as India consumes or markets its production share, he said.

Over two years Asian LNG prices have slumped by three quarters to $4.65 per million British thermal units (mmBtu).

Pradhan expects hefty LNG investments worldwide to ensure affordable long-term prices, a trend that "will suit India as a consuming country."

GAS CONNECTIVITY
India is building import terminals on its eastern and western coasts and pipelines to boost industrial use of gas.

In the fiscal year to March, India's gas production declined by about 4.2 percent, while imports rose around 15 percent.

India recently offered better gas pricing to boost domestic output, but its most recent investment in an LNG terminal in the southern state of Kerala has been underutilised since it lacks pipelines to connect to demand centres after farmer opposition caused land acquisition problems.

Pradhan said the government was talking to the states and hoped obstacles to a pipeline connecting Kochi to Mangalore would be resolved after state elections in Kerala.

 

Source:economictimes.indiatimes.com

Gold Imports Plunge 10% In Fy'16 On Poor Domestic Sales

NEW DELHI: Gold imports fell by close to 10 per cent to 950 tonnes in the 2015-16 fiscal on poor domestic sales due to jewellers' strike and lack of global price parity, a top official of state-run MMTCBSE -0.79 % said.

The world's largest gold consumer had purchased 1,050 tonnes of gold from the overseas market in the preceding year.

"Gold imports fell to 950 tonnes in 2015-16 from 1,050 tonnes in 2014-15 fiscal," MMTC Chairman and Managing Director Ved Prakash told reporters.

The slump came as jewellers kept their shops shut in protest against imposition of one per cent excise duty on non-silver jewellery. Lack of price parity in the global market also curbed shipments in 2015-16, he said.

The maximum quantity of gold was imported by the Bank of Nova Scotia at about 150 tonnes in the latest fiscal, followed by MMTC at 50 tonnes.

Riddhi SiddhiBSE -1.32 % Bullion, State Bank of IndiaBSE 2.19 %, Punjab and Sindh Bank, Tanishq are among other major importers of gold.

"MMTC's gold imports were down at 50 tonnes in 2015-16 from 70 tonnes in the previous year because of the 80:20 import rule and other developments," Prakash said.

Interestingly, the import of dore gold, unrefined form, was higher as compared to bullion in the said period due to lower import duties on dore gold and operation of small gold refineries in Uttarakhand.

At present, import duty on gold is 10 per cent, while it is 8.5 per cent on dore gold.

 

Source:economictimes.indiatimes.com

Cairn Can't Export Crude Till India Attains Self Sufficiency, Says Government

NEW DELHI: The government today told the Delhi High Court that Cairn IndiaBSE 1.65 % cannot be permitted to export excess crude from its Rajasthan oil field, till India attains "self sufficiency".

"The stand of the central government is unequivocal and unambiguous that as a national policy, export of crude oil is not permitted till India attains self sufficiency," the Centre told a bench of Justice Manmohan.

The submission was made by the Ministry of Petroleum and Natural Gas which is opposing Cairn's request for permitting them to export crude oil.

Additional Solicitor General (ASG) Tushar Mehta, who was assisted by central government standing counsel Anurag Ahluwalia, said, "It is admitted position that between the parties that a Production Sharing Contract (PSC) is entered into by and between the parties and that the petitioner is governed by the terms of the said PSC which prohibits export till India attains self sufficiency."

ASG further said that, "whether to permit exports of crude oil exploited from the fields located within the territory of India (at a time when the country itself is suffering from huge deficit in demand and supply of hydrocarbons and is primarily dependent on imports), essentially falls within the realm of a policy decision, which is to be taken by the government keeping in mind the national interest and large public purpose.

"The decision of the government not to permit export of the oil produced by the petitioner is a policy decision taken by the government, which cannot be in anyway termed to be an arbitrary, irrational or a mala fide decision warranting interference by this court," the Centre submitted.

The court asked the government to show it the copy of the policy under which Cairn was denied permission.

While listing the matter for further hearing on May 18, it also asked them to inform whether there was any law or any contract under which they can restrict Cairn from selling their crude abroad.

The court was hearing the plea of Cairn India, subsidiary of UK-based Vedanta group, seeking directions to the government to permit it to export the excess crude.

 

Source:economictimes.indiatimes.com

Rupee Closes 13 Paise Weaker Against Us Dollar At 66.56

Mumbai: The Indian rupee closed weaker against the US dollar on Wednesday, tracking the losses in the local equity and Asian currencies markets.

The home currency closed at 66.56, down 0.19% from its previous close of 66.43. The rupee opened at 66.63 a dollar and touched a low of 66.65, a level last seen on 25 April.

India’s benchmark Sensex index fell 0.51%, or 127.97 points, to close at 25,101.73. The index fell in four out of five sessions. Since 27 April, the Sensex has fallen over 3.7%, or 960 points. So far this year, the Sensex is down 3.89%.

Asian currencies slid on broad dollar strength after regional US Federal Reserve chiefs suggested interest rate hikes could restart in June.

Malaysian ringgit was down 1.54%, South Korean won 1.24%, Indonesian rupiah 0.55%, Philippines peso 0.44%, Taiwan dollar 0.4%, Thai baht 0.38%, Singapore dollar 0.27%, China offshore 0.15%, Japanese yen 0.13% and China renminbi declined 0.13%.

Two prominent members of the US Fed’s Open Market Committee said overnight that they intend to support an interest rate hike in June, six months after the US central bank raised rates for the first time in a decade.

Atlanta Fed president Dennis Lockhart said on Tuesday that the Federal Open Market Committee could move on rates in June, if warranted, though he is not leaning in either direction at this point. San Francisco Fed president John Williams said that he would support a rate hike next month, Bloomberg reported.

The weak manufacturing data in China and the UK also raised worries over slowing growth among traders.

India’s 10-year bond yield closed at 7.432%, as compared with its Tuesday’s close of 7.442%.

So far this year, the rupee has weakened 0.6%, while foreign institutional investors have bought $1.85 billion from the local equity market and sold $165.10 million in the debt market.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 93.135, up 0.21% from its previous close of 92.944.

 

Source :.livemint.com

Non-Industrial Diamonds Top Export Earner In Fy16

India earned about $16.5 billion from the export of non-industrial diamonds, the top exported commodity in April-January 2015-16. It imported petroleum and crude oil worth $57.67 billion in the period.

This was revealed on Tuesday after the commerce ministry unveiled an online portal aimed at analysing foreign trade statistics.

Developed by the Directorate General of Commercial Intelligence and Statistics (DGCIS), the portal is aimed at providing easy access to foreign trade data. "The ministry has drawn a lot of flak over falling exports, the figures for which need to made available to the public in an easy manner," a ministry official said on conditions of anonymity. The official said the initial plan was to put up data for five years.

The portal can be accessed by public.

India's cumulative merchandise exports for 2015-16 fell to $261 billion - a five-year low. The figure was $310 billion in the previous financial year, which had also seen a decline in exports. The cumulative export target, initially set by the government at $300 billion, was revised downwards to $260-270 billion last month after merchandise trade remained negative throughout the year. Exports had last recorded growth in November 2014, rising 7.2 per cent y-o-y. The website showed that the US was the top destination for Indian merchandise exports, with $33.67 billion worth of goods finding their way to the country, followed by the UAE ($25.10 billion) and Hong Kong ($9.67 billion).

 

Source:business-standard.com

India's April Gold Imports Down 67.3%

NEW DELHI: Gold imports fell sharply by 67.33 per cent to 19.6 tonnes in April 2016 as jewellers' strike opposing one per cent excise duty on non-silver jewellery significantly hit demand for the metal, according to gold and silver refiner MMTC Pamp.

"Gold imports declined to 19.6 tonnes in April, 2016 as against 60 tonnes in the year-ago period due to poor demand," a senior official at MMTC Pamp told PTI.

Of the total imports, bullion shipments were at 13.14 tonnes in April this year, down from 54 tonnes in the year-ago period, he said.

Citing reasons for the fall, the official said, "not much was imported due to poor demand in the wake of jewellers' strike in April. Whatever gold that was imported in January and February was being used."

Jewellery houses had remained closed since March 2 after Finance Minister Arun Jaitley in Budget proposed levying 1 per cent excise duty on non-silver jewellery. The 42-day strike was temporarily called off after the government assured that there will be no harassment by excise officials.

There was import of small quantity of gold for export purpose, but that has not been included in the total gold imports for April, he added.

MMTC Pamp is a joint venture between state-run MMTC and Switzerland's PAMP.

In 2015-16, the country is estimated to have imported 750 tonnes of gold, as against 971 tonnes in the preceding year. This does not include the imports done for export purpose, according to the MMTC Pamp.

India, the world's largest consumer of gold, imports around 800-900 tonnes of gold annually.

 

Source:economictimes.indiatimes.com

Hazardous E-Waste: Apple Can't Import Or Sell Second-Hand Phones In India

NEW DELHI: The government has sounded out Apple that it is in-principle against allowing import and sale of second-hand phones in India to prevent dumping of hazardous electronic waste.

This deals a setback to the smartphone maker's expansion plans in a market where it sees huge potential amid overall slowdown of its sales.

"We conveyed our views on the matter and the representatives respected our stand," a senior government official said.

The government's views come as a dampener for Apple which has aggressive expansion plans in the fastest growing smartphone market in the world where the Cupertino-based smartphone maker sees huge potential.

This would be the second time Apple faced a roadblock to importing pre-owned certified or refurbished iPhones in a country where the US technology company seeks out price-conscious Indian consumers to grow its base.

Apple declined to comment to ET's query. The company had sought permission from the government to import second hand iPhones for sale in India, a country where its sales are doubling on-year and where it plans to bring its iconic retail stores too.

ET had reported last month that the views of the Department of Electronics and Information Technology (DietY) views were communicated to the environment ministry and the Director General of Foreign Trade, that it did not support import of second-hand consumer products as it contributed to electronic waste being dumped in India.

Handset makers in India had also opposed Apple's move arguing that the move could potentially flood the market with second hand phones, severely hampering the government's Make in India program that is aimed at encouraging local manufacturing.

The American company, which has about 2% share of the booming Indian smartphone market by volume, has set its sights on India which CEO Tim Cook said separately on Tuesday, had "huge market potential" for its products.

Apple has continued to climb in India, and has increased shipments by 56% to make it the second fastest-growing vendor in the top 10 in the first quarter, Singapore-based research firm Canalys said Tuesday.

The iPhone and iPad maker is closing the gap with market leader Samsung in the over $300 (Rs 20,000) segment where it grew its market share to 29% in the first quarter of 2016, from 11% a year ago. Samsung's market share in the same category fell from 66% in the first quarter of 2015 to 41% in the same period of 2016.

India is important for the technology giant and it is "really putting energy" in the South Asian nation that will begin rolling out high-speed wireless broadband networks this year, Cook said in a TV interview with a US channel.

Cook said that the company has "great innovation" in the pipeline and new iPhones that will attract people in markets like India, equally recognizing India's massive young demographic as a ready market.

"India will be the most populous country in the world in 2022. India today has about 50% of their population at 25 years of age or younger. It's a very young country. People really want smartphones there," he said. Comments on India came on the back of iPhone sales growing 56% year-on-year.

 

Source:economictimes.indiatimes.com