GJ Town India

A majority MPC voted to rise 0.25% while the minority preferred to increase by 0.5%     UK Monetary Policy Summary (MPC), sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. At its meeting ending on 4 May 2022, the MPC voted by a majority of 6-3 to increase Bank Rate by 0.25 percentage points, to 1%. Those members in the minority preferred to increase Bank Rate by 0.5 percentage points, to 1.25%.   Since the MPC’s previous meeting, advanced-economy government bond yields had risen significantly and by more in the United States and in the euro area than in the United Kingdom. Ten-year yields had increased by around 80 basis points in the United States, 65 basis points in the euro area and 35 basis points in the United Kingdom (UK).   The near-term path for market-implied policy rates in the United States had risen significantly since the MPC’s previous meeting. At its March meeting, the Federal Open Ma...

  Available on exports made from 1.9.2020 to 31.12.2020   A limit has been imposed on total rewards under the Merchandise Exports from India Scheme (MEIS).   A notification issued by Directorate Generate of Foreign Trade (DGFT) last evening says that the total reward which may be granted to an IEC holder under the scheme shall not exceed Rs.2 Crore per IEC of exports made in the period 1.9.2020 to 31.12.2020. Further, it has also been informed that any IEC holder who has not made any exports for a period of one year preceding 1.9.2020 or any new IECs obtained on or after 1st September would not be eligible for submitting any claim under MEIS.  In addition, MEIS Scheme is withdrawn w.e.f. 1.1.2021. The above ceiling will be subject to further downward revision to ensure that the total claim under MEIS for the period 1.9.2020 to 31.12.2020 does not exceed prescribed allocation by the Government which is Rs.5,000 Crore.   It is estimated that 98 per cent of the e...

Indian exports may face Further challenges! India Ratings and Research (Ind-Ra) believes the ability of export-oriented domestic manufacturers to keep up merchandise goods supply will remain key to navigating the path to recovery in exports. While domestic exporters are facing vulnerability in form of geography and commodity concentration, overall demand prospects for merchandise goods from importing countries could improve, creating a potential demand-supply mismatch for Indian exports. A prolonged disruption due to Covid-19 could materially impact the credit and liquidity profile of companies in some of the export-heavy sectors such as textiles, gems and jewellery and auto ancillaries. With the latest developments between India and China, Indian exports may face further challenges. Since January 2020, Ind-Ra has taken 25 negative rating actions, 13 positive rating actions and revised the rating Outlook down for another 16 issuers meaningfully exposed exports. ...

NEIA to provide adequate credit insurance cover The Central Government has an undertaking known as ECGC Limited under the control of Department of Commerce, Ministry of Commerce & Industry, to support the Indian exporters and bankers by providing cost-effective insurance and trade related services against the risk of non-realisation of export proceeds. Additionally, the Government has set up the National Export Insurance Account (NEIA) operated by ECGC to provide adequate credit insurance cover to protect long and medium term exporters against both, political and commercial risks of the overseas country and the buyer or & bank concerned. The NEIA trust also provides covers to banks for Buyer’s Credit transactions, which facilitates foreign buyer to pay for project exports from India. ECGC provides the following services:           i. Credit insurance schemes (popularly known as ‘Policies’) to exporters to pr...

No way to close the US-Mexico border Without inflicting serious damage to US economy The National Retail Federation (NRF) sent a letter to Trump administration officials expressing concerns over ongoing threats to close the United States-Mexico border and outlining how a closure would hurt U.S. retailers, workers and consumers. “We share the administration’s goal of fixing the nation’s broken immigration system and enhancing border security,” NRF President and CEO Matthew Shay said. “However, there is no way to close the U.S-Mexico border without inflicting serious damage to the American economy.” U.S. trade with Mexico exceeds $1.7 billion each day. American retailers and consumers rely on Mexico for many products. “Closing the border for any length of time would result in significant supply chain disruptions for U.S. retailers,” Shay said.  “These disruptions would reverberate throughout the supply chain, impacting everyone from truckers to warehouse work...

Interacts Trade and Economic Cooperation European and Oceania countries are major trading partners and major sources of investments for India and there is huge untapped potential that can be achieved. India has made efforts in the recent past to take economic ties to the next level and have some sort of broad based comprehensive trade agreement. There is a need to take these efforts to a logical conclusion. This was stated by Commerce Secretary, Dr. Anup Wadhawan, at an interactive session on trade and economic cooperation with Ambassadors and High Commissioners of European and Oceania countries in New Delhi. Dr. Anup Wadhawan said like most trade negotiations between developing and developed countries, trade negotiations with EU and Oceania have been protracted. India is a developing country and EU and Oceania countries are predominantly developed and because of this our ambitions, aspirations and sensitivities are at divergence in some specific areas. He expressed...

Ensure US economy from Artificial problems like trade wars! Forecasts retail sales growth Between 3.8 and 4.4 Percent The National Retail Federation (NRF) forecast that retail sales during 2019 will increase between 3.8 percent and 4.4 percent to more than $3.8 trillion despite threats from an ongoing trade war, the volatile stock market and the effects of the government shutdown. “We believe the underlying state of the economy is sound,” NRF President and CEO Matthew Shay said. “More people are working, they’re making more money, their taxes are lower and their confidence remains high. The biggest priority is to ensure that our economy continues to grow and to avoid self-inflicted wounds. It’s time for artificial problems like trade wars and shutdowns to end, and to focus on prosperity not politics.” Preliminary estimates show that retail sales during 2018 grew 4.6 percent over 2017 to $3.68 trillion, exceeding NRF’s forecast of at least 4.5 percent growth. Th...

A total destruction of US-China cooperation Chinese officials voiced in unison their disapproval of Washington’s latest tariff package against China, saying that the current administration’s tactics risk the “total destruction” of bilateral relations, the SCMP reports cited by CER.  Foreign Minister Wang Yi told attendees of the US-China Business Council meeting in New York that recent tensions were undoing progress made since the two countries opened diplomatic ties in the 1970s. “The US is increasingly implementing negative policies in relation to China…frequently blaming China for its unhealthy attitudes in economics, trade and security to artificially create opposing emotions against China,” said Wang.  “If the trend continues, it will totally ruin the gains of the Sino-US relations in the past 40 years. This is unfavourable to both China and the US and ultimately to the world.” Meanwhile, Vice Commerce Minister Wang Shouwen told reporters i...

US trade deficit with China reaches new record high! According to the CER, China’s trade data for August dealt a potential blow to negotiations between Beijing and Washington to avoid a trade war, as the United States’ monthly bilateral trade deficit reached the highest level on record. Data from China’s General Administration of Customs released Saturday showed that $31 billion more goods and services flowed from China to the US last month than in the opposite direction. The gap widened from the $28 billion surplus posted in July. Exports to the US were up 13.2% year-on-year, compared to 11.2% year-on-year in July. China’s imports from the US, meanwhile, grew only 2.3% y/y, down from 11.1% in July. Despite the increase in its bilateral surplus with the US, China’s overall trade surplus shrank in August, with total imports up 20% y/y. Analysts have pointed to a sliding Yuan, front-loading from suppliers ahead of further tariffs and a lack of alternative suppliers ...