India forex reserves rise to $306.64 bn
India\\\'s foreign exchange (forex) reserves increased by $2.97 billion to $306.64 billion for the week ended April 4, Reserve Bank of India (RBI) data showed. The forex reserves have soared past $300 billion mark for the first time since December 2011. This is the sixth consecutive week of increase in the country\\\'s forex reserves as overseas investors poured in money in local bonds and stock markets. The forex reserves had risen by $5.03 billion and $1.34 billion in the previous two weeks. According to the RBI\\\'s weekly statistical supplement, foreign currency assets, the biggest component of the forex reserves, rose by $2.39 billion to $278.80 billion. RBI said that foreign currency assets, expressed in US dollar terms, include the effect of appreciation or depreciation of non-US currencies held in reserve such as the pound sterling, euro and yen. However, the value of special drawing rights (SDRs) fell by $10.3 million to $4.44 billion. India\\\'s reserve position with the International Monetary Fund (IMF) fell by $4.3 million to $1.82 billion. The value of gold reserves grew by 558.8 million at $21.56 billion.
India tops global remittances at $70 billion
India received foreign exchange remittances worth $70 billion in 2013 from its migratory workforce to retain the top spot in the world amid a broad slowdown caused by regulatory hindrances on both movement of people and capital. China ($60 billion), the Philippines ($25 billion), Mexico ($22 billion), Nigeria ($21 billion), Egypt ($17 billion), Pakistan ($15 billion), Bangladesh ($14 billion), Vietnam ($11 billion) and Ukraine ($10 billion), rounded up the Top 10 remittance recipient nations, according to a World Bank report released on April The report, an annual World Bank exercise that underscores the point that remittances are an important source of foreign exchange often surpassing earnings from major exports, said India\\\'s $70 billion in remittance receipts in 2013 was \\\"more than the $65 billion earned from the country\\\'s flagship software services exports\\\". Such trajectory was even greater in countries such as Nepal, where remittances are nearly double the country\\\'s revenues from exports of goods and services, while in Sri Lanka and the Philippines, they are over 50% and 38%, respectively. In Uganda, remittances are double the country\\\'s income from its main export of coffee. In terms of remittances as a share of GDP, the top recipients were Tajikistan (52%), Kyrgyz Republic (31%), Nepal and Moldova (both 25%), Samoa and Lesotho (both 23%), Armenia and Haiti (both 21%), Liberia (20%) and Kosovo (17%). Authors of the report said recipient countries could do much more to enhance remittances while obliquely criticizing the roadblocks in terms of high costs and increased restrictions on movement of people, including a surge in deportations. \\\"In addition to the large annual flows of remittances, migrants living in high income countries are estimated to hold savings in excess of $500 billion annually. These savings represent a huge pool of funds that developing countries can do much more to tap into,\\\" said Dilip Ratha, manager of the migration and remittances team at the bank\\\'s Development Prospects Group, and an authority on remittances. The report also noted that Nigeria is readying a diaspora bond issue to mobilize diaspora savings and boost financing for development.
India becomes net steel exporter after 6 years
India became net steel exporter in 2013-14 after a gap of six years and is likely to maintain the momentum in 2014-15 as producers are looking to dock more overseas shipment to tide over subdued domestic consumption. Total steel exports by India during the last fiscal stood at 5.59 million tonnes (MT), as against imports of 5.44 MT, Joint Plant Committee (JPC), a unit of the steel ministry, said in a report. India, now the world\\\'s fourth largest steel maker, had been a net steel importer since 2007-08 and the trend continued till 2012-13 with 7.9 MT of imports and 5.2 MT of exports. Before 2007-08, India\\\'s exports were more than its imports. About 4.1 per cent higher exports and 31.3 per cent decline in imports helped India become net exporter of steel. While higher exports were driven by volatility of rupee and mismatched demand-supply situation in the country; imports were lower mainly due to slowdown in the domestic economy, JPC said. India\\\'s steel consumption grew by just 0.6 per cent in 2013-14, its lowest in four years, to 73.93 MT, impacted by a slower expansion of the domestic economy and lower imports. \\\"The low growth rate in domestic steel consumption indicated that base level demand conditions continued to be weak during 2013-14,\\\" JPC said. Construction sector accounts for around 60 per cent of the country\\\'s total steel demand while the automobile industry consumes 15 per cent. Both sectors were hit by a slowdown in the economy which according to Central Statistics Office estimates grew by 4.9 per cent in 2013-14, against the growth rate of 4.5 per cent in 2012-13. Sensing poor demand in store, almost all domestic steel producers, both public and private, tried to export vigorously and showed good growth in overseas shipments last fiscal. Steel Authority of India ( SAIL) had clocked a 30 per cent growth in exports in 2013-14 and aims to more than double the shipments to 1 MT in 2014-15. Rashtriya Ispat Nigam Ltd (RINL), which exported 1 lakh tonne steel last fiscal, aims to treble that in the current fiscal. Private sectors firms are also likely to follow the suit.
Exports up 3.98% to $312.35bn in 2013-14
India\\\'s exports grew by 3.98 per cent to $312.35 billion in FY 2013-14 while imports dipped by 8.11 per cent during the period. Imports declined to USD 450.94 billion, narrowing the trade deficit to USD 138.59 billion in the last fiscal. In FY 2012-13, trade deficit stood at USD 190.33 billion. However, in March exports contracted by 3.15 per cent to USD 29.57 billion and imports fell by 2.11 per cent to USD 40 billion as compared to the same period last year. Trade deficit during the month was at USD 10.5 billion as against USD 10.4 billion in March 2013. In FY 2012-13, the country\\\'s merchandise exports had aggregated at USD 300.4 billion. The overall shipments in 2013-14 fell short of the target of USD 325 billion fixed by the government for the period.
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This newsletter is compilation of news articles from various business-e-newspapers and in no way is an endorsement or reflection of Embassy of India, Berne views.
