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Happy at the clear mandate given by voters to the BJP-led NDA, India Inc on May 16 exuded confidence that Narendra Modi will initiate bold and decisive policy reforms to promote economic growth. “A clear mandate is positive for India. FICCI hopes that this mandate will help the leadership restore much needed investor confidence, attract higher investments and generate employment, especially in the manufacturing sector,” FICCI president Sidharth Birla said. Mr. Modi appears all set to be the next Prime Minister with BJP likely to get a majority on its own, as per the results trend since this morning. BJP-led NDA is expected to get over 300 seats in the 16th Lok Sabha elections. Assocham president Rana Kapoor said: “A majority mandate gives hope of a stable government, paving the way for bold and decisive policy reforms. This can herald a sustainable 10 per cent growth of the economy in the next 18-24 months”. The nation, MR. Birla said, awaits an era of minimum government and maximum governance. “Industry must be seen as a key factor in the nation’s advancement by enabling efficient provision of goods and services and creation of jobs,” he added. Welspun Renewables Energy Vice-Chairman Vineet Mittal said: “This is a win for the people of India and demonstrates how young participation can transform the country. “Stable government with clear majority will boost confidence of the industry, global community and foreign investors.” PHD Chamber of Commerce President Sharad Jaipuria said: “Manufacturing sector reforms should be at the top of the agenda of the new government to enhance its growth and productivity to generate millions of employment opportunities in the economy”. Engineering Export Promotion Council (EEPC) Chairman Anupam Shah said the “Modi government will be able to take some bold decision regarding labour reforms and create new employment”. Bharti Axa Life Insurance CEO Sandeep Ghosh said a strong government will help in pushing through long pending policy decisions around FDI, taxation and long-term investments. Max Life Insurance CEO & MD Rajesh Sud pitched for tax incentives for insurance companies and suggested that the new government should look at the proposal to raise FDI cap in the sector from 26 per cent to 49 per cent.
India’s forex reserves up $1.97 bn
India’s foreign exchange (forex) reserves rose by $1.97 billion to $313.83 billion for the week ended on May 9, led by a sharp jump in overseas currency assets, Reserve Bank of India (RBI) data showed. The reserves gained $1.94 billion to $311.85 billion for the week ended on May 2. According to the RBI’s weekly statistical supplement, foreign currency assets, the biggest component of the forex reserves, jumped by $1.97 billion to $286.54 billion in the week under review. The foreign currency assets rose by $2.54 billion to $284.57 billion in the week under review. The RBI said the 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, India’s reserve position with the International Monetary Fund (IMF) decreased by $1.7 million to $1.83 billion. The value of special drawing rights (SDRs) also fell. The SDRs were down $3.6 million to $4.47 billion. The value of gold reserves remained the same in the period under review at $20.96 billion. The reserves declined by $601 million at $20.96 billion in week ended May 2.
INVESTMENTS
Pharma exports up 10.5% in April
India’s pharmaceutical exports grew 10.5 per cent, year-on-year, to $1.26 billion in April, according to Commerce Ministry data. “This year we are expecting a healthy rate of growth in pharma exports. Regions like Africa will help in enhancing exports,” said an official. Pharma exports registered slowest growth in at least 15 years at 1.2 per cent to $14.84 billion in the 2013-14 fiscal amid growing tension with the US over intellectual property rights related issues. “2013-14 has seen slowdown in growth because of the US raising concerns and due to increase in global competition,” said PV Appaji, Executive Director, Pharmaceuticals Export Promotion Council (Pharmexcil).
IT sector boosts Q4 results
Major software exporters are helping India Inc paint a better picture of their overall revenues and net profit for the January-March quarter (Q4FY14). According to a study done by Crisil Research, the IT sector accounts for close to half of the revenues of the top 70 companies from the manufacturing and services sectors which also excludes oil companies. Data showed that the aggregate revenues of these 70 companies during Q4FY14 was Rs 1.13 lakh crore, while their total net profit was Rs 22,237 crore, up 18.3%. Excluding the 10 top IT companies, all of which have announced their results, total revenues of the top 60 companies was Rs 60,854 crore, while their aggregate net profit was Rs 10,108 crore. According to Mukesh Agarwal, president, Crisil Research, the aggregate Q4 revenues of 70 companies, excluding banks and oil companies, have risen by 12.4% on an annual basis. “However, excluding IT, revenue growth is a mere 1.7%, impacted mainly by revenue contractions in the cars and utility vehicles, and zinc sectors” Agarwal said.
