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With AgustaWestland Matter Behind, India And Italy Plan To Elevate Strategic, Defence Ties

August 27, 2023 by news.abplive.com Leave a Comment

New Delhi: Keeping the mega controversy around the AgustaWestland behind, which rattled bilateral defence and security ties between India and Italy, both sides have now decided to “elevate” the relationship and sign a wide-ranging defence agreement by engaging in all platforms under the ‘Make In India’ programme while supporting each other under the Indo-Pacific framework, multiple sources told ABP Live.

While the defence part was supposed to be signed during May-June this year, both countries are hopeful that the agreement will fructify before November, even as military-to-military engagements between both countries are on the rise once again, the sources said.

To begin with, Italy is planning to enter India’s growing warship-building industry of the Indian Navy. India’s warship construction has witnessed a massive boom in the past five years pushing international players to take notice. This is the reason why Italy’s Navy ship ITS Morosini, a Thaon di Revel-class offshore patrol vessel, was in Mumbai from August 10 to 14 for a five-month-long deployment across the Indo-Pacific region.

According to the sources, the decision to sign a defence pact, which will bring India and Italy closer than ever before in terms of security and strategic partnership, was finalised during the visit of Italian Prime Minister Giorgia Meloni to India in March this year. She was the first Italian PM to visit India in the last five years.

With the signing of this agreement, Rome will be able to reposition its defence industry as a credible source of arms for the Indian armed forces, from the raging controversy that led New Delhi to ban Italian defence giant Leonardo, the sources added.

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Italian Defence Firms To Participate In Make In India Initiative

Leonardo, formerly Finmeccanica, was named in the Rs 3,600-crore VVIP chopper scam in 2013-14. AgustaWestland was a fully owned subsidiary of aerospace giant Finmeccanica, now Leonardo SpA. In 2018, a Milan court gave a clean chit to AgustaWestland. Eventually in November 2021, India lifted the ban from the firm, putting the matter to rest. However, the deal to procure Black Shark torpedoes by the Indian Navy was also cancelled due to the ban at the time.

Italian warships are considered to be best in class and the country is keen on sharing the technology with India under co-development and co-production programmes, said the sources.

During PM Meloni’s visit to India, both sides signed an MoU on defence cooperation under which New Delhi opened the gates for Italian defence firms to participate in Make In India initiative.

“Italy and India have national and common interests to protect, and Italy is a reliable partner. The Indian Ocean is contiguous and inescapably linked to Italy’s ‘Wider Mediterranean’. It is an area which, due to its nature as a space that allows access to the Middle East, Africa, Asia, Europe and Antarctica, is a global pivot, and one in which stability and security are essential for world peace,” said a report by Rear Admiral Giuseppe Schivardi, Director of the Strategic Studies Centre, Italian Naval Staff College, Venice, who was in Mumbai for the port call by ITS Francesco Morosini. The report appeared in Gateway House.

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Filed Under: India at 2047 agustawestland, INDIA, India At 2047, Italy, India At 2047 Defence, Make In India, technology, India At 2047 Tech, Indian Navy, PM Narendra Modi, India At 2047 Diplomacy, passhe strategic plan, pakistan russia defence ties, pakistan russia to boost defence ties, defence corridor india, nehemiah strategic planning, grey matter india, 2017 strategic review of defence and national security, british imperialism in india lesson plan, india travel plan, planning process strategic

India’s current account deficit almost halves to $9.2 billion in June quarter

September 28, 2023 by economictimes.indiatimes.com Leave a Comment

Synopsis

India’s current account deficit narrowed to $9.2 billion in the June quarter, compared to $17.9 billion in the same period last year, due to lower global crude and commodity prices. The deficit was 0.1% of GDP, down from 2.1% in the previous year, but higher than the $1.3 billion in the preceding quarter. The capital account comfortably financed the deficit, resulting in a balance of payments surplus. However, the deficit is expected to widen in the September quarter due to higher trade deficits and rising crude oil prices.

India’s current account balance- the difference between country’s exports and imports almost halved to a deficit of $9.2 billion in the June quarter from $17.9 billion in the same period a year ago as lower global crude and commodity prices helped narrow the merchandise trade deficit and higher software exports helped in lowering the current account deficit .

In terms of percentage of country’s gross domestic product or GDP the country’s current account deficit or CAD narrowed to .1 per cent of GDP in the June quarter from 2.1 per cent of GDP period comparable qaurter ending June 2022. But it was higher than $ 1.3 billion (0.2 per cent of GDP) in the preceding Mrach 2023 quarter, according to the preliminary numbers released by the Reserve Bank of India .

” The current account deficit widened in Q2 on account of a higher goods trade deficit and increase in outbound remittances,” said Rahul Bajoria, MD & Head of EM Asia (ex-China) Economics, Barclays. Higher foreign fund flows in the quarter meant the capital account financed the CAD comfortably, leading to a BoP surplus.

The widening of CAD on a quarter-on-quarter basis was primarily on account of a higher trade deficit coupled with a lower surplus in net services and a decline in private transfer receipts, the Reserve Bank said in a release

The merchandise trade deficit was lower at $56.6 billion during the June quarter compared to $63 billion in the same period a year ago. The contribution of software services was significant at $ 33.9 bn compared to $ 30.7 bn in the June quarter last year. ” This is a positive sign which has been helped by the fact that the US economy has done much better than expected which has kept demand for such services buoyant, ” said Madan Sabnavis, chief economist, Bank of Baroda .

In the capital account, net foreign direct investment was lower in net terms at just $ 5.1 bn compared to $ 13.4 bn a year ago. Foreign portfolio investment in net terms was high at $ 15.7 bn compared with an outflow of $ 14.6 bn last year. NRI deposits were higher by $ 2.2 billion during the quarter compared to only $489 million last year. As a result, the balance of payments ended in an overall surplus of $24,4 billion compared to only $4.6 billion in the same period last year.

With the average merchandise trade deficit trending higher in Jul-Aug 2023 relative to June quarter levels and the recent rise in crude oil prices, Ratings firm Icra estimates the CAD to widen sequentially to $19-21 billion or 2.3% of GDP in the September quarter.

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Filed Under: Uncategorized government finances, trade finance, banking finance, GDP, reserve bank of india, India's CAD, CAD, current account deficit, Trade deficit, icra, bank of baroda, ..., which measure was implemented by the government in order to reduce current account deficit, theory of current account deficit, current account deficit and, u.s. current account deficit 2021, u.s. current account deficit 2020, u.s. current account deficit gdp, u.s. current account deficit 2019, u.s. current account deficit 2022, current account deficit vs balance of payments, current account deficit tutor2u

ETMarkets Smart Talk: We are hoping that 2024 will be a breakout year for India in terms of flows: Harendra Kumar

September 28, 2023 by economictimes.indiatimes.com Leave a Comment

Synopsis

“We hope 2024 is going be a breakthrough year for India in terms of capital inflows. There is more money waiting to enter India than to leave, despite the presence of macro headwinds. The small and mid-cap sectors will continue to rally, while the crude oil prices are unlikely to rise significantly.”

“We are hoping that 2024 will be a breakout year for India in terms of flows with more tailwinds than headwinds,” says Harendra Kumar , Managing Director, Elara Securities India.

In an interview with ETMarkets, Kumar said: “There is always some tactical money that finds its way in/out of India during some macro headwinds. There is more money waiting to come in, than to go out” Edited excerpts:

After hitting 20,200 on the Nifty50, the market is going through some healthy consolidation. In terms of global overhang , we have the US Fed outlook , a rise in Dollar index, crude, and recent Canada comments. Have we made a top?
The Nifty was around 18500 in Oct 2021, and it has taken us two years to reclaim the top – so it is hardly a euphoric event, except that it is a headline moment.

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Ambiguity on the course of the global economy is clearly weighing on a run-away rally.

2024 will hold more answers as the haze over US recession, inflation and India’s election clears and outcomes give more confirmatory signals.

Both the yields and markets cannot stay at an elevated level for too long. Either one will break down. Given that the Fed is resolute in its stand, do you think it could be the markets that break down first?
Indian largecaps have hardly rallied, so price damage at the headline will be minimal. The worst-case scenario will be that it could be a prolonged time correction.

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In fact, we are hoping that 2024 will be a breakout year for India in terms of flows with more tailwinds than headwinds.

The September quarter is almost over. What are your expectations from India Inc. in Q2?
The key assessment of the direction of the market will come from banks and the Tech sector. Commentary of the tech sector is much awaited – whether it will get worse before it gets better, or this is the trough quarter.

For financials, last quarter was mixed. The behaviour of numbers was not secular which halted the run of the bank Nifty.

Given their outsized bets on some of the large private banks – any disappointments on that count will hurt the market rally.

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India-Canada standoff – do you think if things escalate it will impact equity markets?
We have a more pronounced border issue with China – but trade has not suffered. It is very difficult to replace supply chains and trade partners.

The trade between India and Canada is fairly balanced and unlikely to alter much. The same will hold true for long-term investments that we attract from overseas.

How are you looking at small & midcaps – do you think that the space is looking overheated?
The rally has been exponential in some allied sectors like Power, Railways, Defence etc. If one has an opportunistic outlook to chase the rally in these names at this stage, it can be fatal.

The broader rally in mid-and small caps is in no way over and will be sustained. In the medium term, this strategy will give better outcomes than being heavy on the large caps.

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What is your view on crude oil? It has rallied by about 10% in about a month.
The top was made at the outset of the Russia – Ukraine war. Global macro conditions are unlikely to fan a rally in crude prices beyond those levels.

FIIs have been busy pulling out money from Indian markets – nearly 14000 cr so far till 20 September. This is the second month of the selloff? Is it regular profit-taking, or the money is moving into debt?
There is always some tactical money that finds its way in/out of India during some macro headwinds. There is more money waiting to come in than to go out. We are sanguine on that count.

What is your call on the new wave of IPOs hitting D-St almost every week? Any company worth looking at – although we have seen the retail exuberance that we saw during Paytm, Nykaa has come down.
These are good tidings for the market. We need fresh paper to absorb the gush of retail money that we are seeing in domestic mutual funds.

It deepens the market and creates more options for asset managers. In this round, there is virtually no exuberance and investors have been more discerning.

How do we stack against the peers in terms of valuations?
India will always look expensive on a relative basis given our business profile of index heavyweights. We have monopolies and duopolies in many sectors with high market share and strong return ratios.

China is going to find it difficult to regain lost favour and that money must find a new home.

Where is smart money moving?
We are yet to see strong institutional money coming into the markets. If at all we are seeing ’smart retail’ money setting new valuation benchmarks and defining the direction of the small-cap index.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

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Filed Under: Uncategorized breakout year, market consolidation, global overhang, India flows, Fed outlook, ETMarkets Smart Talk, elara securities india, harendra kumar, Expert View, Stock Market, ..., talk year l, talk 4 writing year 4, negative self talk 6 year old

Coking coal rates pushing up steel prices in India: JSP MD Bimlendra Jha

September 28, 2023 by economictimes.indiatimes.com Leave a Comment

Synopsis

Steel prices in India are increasing due to rising rates of coking coal, according to industry executive Bimlendra Jha. While iron ore is available in India, coking coal needs to be imported. Prices for coking coal have risen from USD 230 per tonne in June-July 2023 to USD 341 per tonne currently.

Steel prices in India are registering an upward trend due to “rapidly” increasing rates of key input material coking coal, industry executive Bimlendra Jha said. Coking coal and iron ore are the two main raw materials used to manufacture steel.

While iron ore is available in substantial quantity in India, steel players are bound to meet 90 per cent of their coking coal requirement through imports from countries like Australia and South Africa.

“Coking coal prices have increased rapidly (which are) currently trading at USD 341 per tonne CFR (cost and freight) India, from USD 230 a tonne in June-July 2023,” Jha, Managing Director of Jindal Steel and Power ( JSP ), told PTI.

The steel industry is facing an upward movement in prices because there has been a dramatic shift in coking coal prices, so the industry has no option but to pass on the cost to consumers, he said in reply to a question on increasing rates of steel in India.

As per markets research firm SteelMint India , the cost of per tonne hot rolled coil (HRC) in June was Rs 55,200, which has risen to Rs 58,800 on Thursday after price correction.

Speaking further, Jha said the market is also witnessing an uptick in steel demand, which is 7-8 per cent.

After witnessing a downward trend, particularly in monsoon, there is an uptick in demand, he added.

Steel is among the top three most widely used metals and any movement in its prices impacts the entire value chain.

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Filed Under: Uncategorized Steel prices, Bimlendra Jha, JSP, Coking coal, SteelMint India, Coking..., debasish nanda coal india, itel 8 128 price in india, caol ila price in india, laghmani oud perfume price in india, thrust ssc price in india

BNP Paribas upbeat on India bonds after JPMorgan inclusion, sees 10-year rally

September 28, 2023 by economictimes.indiatimes.com Leave a Comment

Synopsis

The benchmark 7.18% 2033 bond yield was trading at 7.23% on Thursday, after hitting a two-month low of 7.07% last Friday in the immediate reaction to the inclusion news. The yield last traded below 7% in June.

The recent addition of Indian government bonds to JPMorgan ‘s emerging market bond indexes has prompted BNP Paribas Asset Management to turn “more positive” on these securities, expecting inflows of around $20 billion in domestic bonds in the next two years, an official from the fund said on Thursday.

JPMorgan included Indian bonds to its emerging market debt index last week.

“We expect bonds to rally and should see the 10-year benchmark bond yield easing below 7% by end of this year,” Jean-Charles Sambor, head of emerging markets, fixed income at BNP Paribas Asset Management told Reuters.

The benchmark 7.18% 2033 bond yield was trading at 7.23% on Thursday, after hitting a two-month low of 7.07% last Friday in the immediate reaction to the inclusion news. The yield last traded below 7% in June.

“The muted reaction currently is due to weak global risk appetite,” Sambor, who said inflows could rise if India becomes a part of other global indices.

“The very short-end will not matter for global investors, and they would be looking at the 10-year, which would be the sweet spot for now. When you look at bond inclusion, long end should be well supported,” Sambor said.

Foreign holding of the benchmark 2033 bond has nearly tripled to 16.1 trillion rupees as on Sept. 27, up from 6.75 trillion rupees before index inclusion announcement, data from Clearing Corp of India showed.

Market participants expect inflows to pick up on more auctions of the note.

Sambor said even though the differential between Indian and U.S. 10-year bond yields is shrinking, he expects inflows to persist.

“U.S. yields are near peak and we are very close to the end of the tightening cycle. As soon as we see that, capital flows would be back to emerging markets, including India.”

The 10-year U.S. yield jumped to 4.60%, and spread with Indian counterpart stands at around 260 basis points.

Sambor said bond index inclusion is positive for the local currency as well, as the inflows could see rupee rising to 82.00-82.25 per dollar levels over the next six months, from near record lows currently.

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