indian

 
 

India’s Reliance reports 6.8pc rise in profits

MUMBAI, July 19 — Indian conglomerate Reliance Industries today reported a 6.8 per cent rise in consolidated net profit despite a slowdown in its oil refining business. The Mumbai-based company owned by Asia’s richest man Mukesh Ambani said its…


World Bank pulls funding for new state capital in India after Delhi drops support

NEW DELHI, July 19 — The World Bank said today it had withdrawn US$300 million (RM1.2 billion) of funding for a new capital in the south Indian state of Andhra Pradesh after the central government dropped support for the project. The…


Sources: Indian govt seeks to tap foreign lenders for loans to its small firms

EW DELHI, July 19 — India’s government is in talks with foreign lenders to provide as much as US$14.5 billion (RM59.6 billion) in credit to millions of its small firms, two officials said, in a sign the country’s banking system may not be…


Indian import duty hike a negative for M’sian palm oil

PETALING JAYA: India’s potential import duty hike on Malaysian refined palm oil will have a negative impact on the local palm oil sector, which is already affected by weak crude palm oil (CPO) prices, said PublicInvest Research.

News outlets in India recently reported that India’s Finance and Trade Ministries are considering raising the import duty on Malaysian refined palm oil from 45% to 50%, which would bring it to the same level as the import duty on Indonesian refined palm oil.

Currently, there is a 5% price differential between Malaysian and Indonesian refined palm oil, while the year-to-date average CPO price stood at RM1,980 per mt, reflecting a 17.6% year-on-year decline.

“In the event it materialises, we expect weaker palm oil exports to India in the coming months,” PublicInvest Research said in its report today.

For the first half of the year, India, which is the world’s largest palm oil importer, accounted for 28% of total Malaysian palm oil imports.

“The proposed move would result in significant losses to Malaysian palm oil exporters following the loss of preferential duty over its Indonesian counterparts. Also, this will put more pressure on Malaysian palm oil inventories in the coming months as 2H production is expected to be seasonally higher,” it said.

India had previously cut import duties on Malaysian palm oil via two agreements, a bilateral agreement between the two countries and an Asean agreement that took effect on Jan 1, 2019.

The research house noted that the tax on refined palm oil from Malaysia was reduced to 45% from 54%, while the duty on palm oil from India was cut to 50% from 54%, leaving a tax differential of 5%.

In addition, the duty on CPO imports was lowered to a standard rate of 40% from 44%.

“Following the implementation, India’s total palm oil imports (RBD palmolein + CPO) for the first half of 2019 rose 11.2% year-on-year to 4.58 million mt with increased orders for refined palm oil, from 16.3% to 37.8% given the narrower gap of 5% between the refined and crude palm oil import duties,” said PublicInvest Research.

Following the trade agreement, Malaysia enjoyed a staggering growth of 86.1% year-on-year to 2.5 million mt in palm oil exports to India for the same period of time.

“On the other hand, Indonesia’s palm oil exports to India fell 9.5% year-on-year to 1.84 million mt for the first five months,” it said. It maintained its “neutral” rating on the sector outlook.


Trump’s tariffs trip up the all-American RV industry

ELKHART (Indiana), July 18 — Carrie Gray points to a stack of unwelcome mail on a conference table at the offices of Renegade RV, one of the leading US manufacturers of high-end recreational vehicles. She’s buried in bad news from most of her…


Influential Hindu group says India should not issue foreign currency bonds

NEW DELHI, July 17 — An influential Hindu nationalist group close to Indian Prime Minister Narendra Modi's ruling party has demanded his government review its plan to raise money by selling foreign currency bonds. They say it is anti-patriotic as…


Trump's favourite parts of US economy are also the weakest

WASHINGTON, July 14 — At rallies and whistle-stop campaign tours, President Donald Trump proclaims a renaissance in US factories rebuilding the nation with “American steel,” “American heart” and “American hands.” But in reality,…


Indian housing lender DHFL warns it may not survive as a going concern

NEW DELHI, July 14 — One of India's biggest housing finance companies, Dewan Housing Finance Corp Ltd (DHFL), warned yesterday that its financial situation was so grim that it may not survive. The company said it was “undergoing substantial…


India aims to raise US$47b from stake sales in state firms over five years, say sources

NEW DELHI, July 12 — The Indian government has plans to raise as much as 3.25 trillion rupees (US$47.4 billion) in the next five years by reducing its stakes in some large state-owned firms to 40 per cent, two senior government officials told…


India seeks to raise $47 bln from stake sales in state firms over 5 years-sources

NEW DELHI: The Indian government has plans to raise as much as 3.25 trillion rupees ($47.4 billion) in the next five years by reducing its stakes in some large state-owned firms to 40%, two senior government officials told Reuters, in the nation’s biggest privatisation push in more than two decades.

Last week, finance minister Nirmala Sitharaman in her budget announced that the government will look to reduce direct controlling stakes in some state-run firms on a case-by-case basis.

The plan will open up a steady stream of state companies to greater private investment, and target the kind of annual divestment revenue that will be crucial to meet fiscal deficit targets.

Prime Minister Narendra Modi’s administration already sold government stakes in a host of companies to raise a record $40.92 billion in his first five-year term, nearly three times the divestment proceeds of $14.52 billion achieved by the Congress party government in 2009-2014. Modi was re-elected for a second-term in a landslide victory in April-May.

The government has identified a number of state-owned firms, including explorer Oil and Natural Gas Corp, oil refiner Indian Oil Corp, gas transmitter GAIL (India) Ltd, power producers NHPC Ltd and NTPC , miners NMDC Ltd and Coal India, and Bharat Heavy Electricals Ltd , said the sources, who declined to be named due to the sensitive nature of the matter.

“We have done a calculation on current prices and we could get 3.25 trillion rupees if we bring our stake down to 40% in government companies, excluding banks,” one of the officials, said.