India’s economic expansion to boost mining: President

21 May 2018

Trade deficit widens to US$ 13.72 billion in April 2018

India’s merchandise exports increased 5.2% to US$ 25.91 billion in April 2018 over a year ago. Meanwhile, merchandise imports moved up 4.6% to US$ 39.63 billion. The trade deficit rose 3.5% to US$ 13.72 billion in April 2018 from US$ 13.25 billion in April 2017.

Oil imports galloped 41.5% to US$ 10.41 billion, while the non-oil imports also declined 4.3% to US$ 29.21 billion in April 2018 over April 2017. The share of oil imports in total imports was 26.3% in April 2018, compared with 19.4% in April 2017. The price of India’s basket of crude oil galloped 32.0% to US$ 69.30 per barrel in April 2018 over April 2017.

Among the non-oil imports, the major contributors to the overall rise in imports were transport equipment imports rising 33.2% to US$ 1.58 billion, coal 20.4% to US$ 2.25 billion, metaliferrous ores & other minerals 57.7% to US$ 0.94 billion, organic & inorganic chemicals 18.4% to US$ 2.00 billion, iron & steel 28.5% to US$ 1.30 billion, machinery, electrical & non-electrical 9.1% to US$ 2.90 billion, non-ferrous metals 15.5% to US$ 1.15 billion and silver 36.5% to US$ 0.48 billion.

The imports also improved for fertilizers, crude & manufactured by 33.4% to US$ 0.41 billion, chemical material & products 18.1% to US$ 0.58 billion, medicinal & pharmaceutical products 17.7% to US$ 0.49 billion and wood & wood products 6.6% to US$ 0.50 billion.

However, the imports have declined for pearls, precious & semi-precious stones by 36.4% to US$ 2.34 billion, gold 33.1% to US$ 2.58 billion, electronic goods 6.4% to US$ 4.15 billion. Vegetable oil 10.0% to US$ 0.92 billion and artificial resins, plastic materials 2.1% to US$ 1.26 billion in April 2018.

On exports front, the engineering goods recorded an increase in exports by 17.6% to US$ 7.19 billion, followed by organic & inorganic chemicals 38.5% to US$ 1.79 billion, drugs & pharmaceuticals 13.6% to US$ 1.47 billion, plastic & linoleum 30.0% to US$ 0.67 billion, and cotton yarn/fabrics/made-ups, handloom products 15.7% to US$ 0.90 billion. The exports also moved up for rice by 13.4% to US$ 0.64 billion, electronic goods 9.6% to US$ 0.56 billion, meat, dairy & poultry products 15.1% to US$ 0.34 billion and marine products 3.7% to US$ 0.50 billion in April 2018.

Further, the exports has improved for ceramic products & glassware by 8.5% to US$ 0.18 billion, coal & other ores, minerals including processed minerals 3.7% to US$ 0.34 billion, man-made yarn/fabrics/made-ups 2.6% to US$ 0.42 billion and spices 2.0% to US$ 0.28 billion in April 2018.

However, the exports declined for gems & jewellery by 17.0% to US$ 3.30 billion, RMG of all textiles 22.8% to US$ 1.35 billion, petroleum products 4.5% to US$ 2.81 billion, and leather & leather products 3.2% to US$ 0.39 billion, while it also declined for handicrafts excluding handmade carpet by 7.0% to US$ 0.14 billion, and fruits & vegetables 3.1% to US$ 0.21 billion in April 2018.

Merchandise exports in rupees increased 7.0% to Rs 170053 crore, while imports moved up 6.4% to Rs 260085 crore in April 2018 over April 2017. The trade deficit rose to Rs 90032 crore in April 2018 compared with Rs 85467 crore in April 2017.

Source: CAPITAL MARKET

India to clock GDP growth of 7.7% in January-March: Nomura

Factors like rising oil prices as well as tighter financial conditions are expected to drag down growth rates.

Despite moderation in factory output growth in March, India’s GDP is expected to grow by 7.7% in January-March, up from 7.2% in the preceding quarter, says a Nomura report.

According to the Japanese financial services major, despite the moderation in March, industrial production growth averaged 6.2% in the January-March period, up from 5.9% in Q4 (October-December).

The uptick in average industrial production growth, implies that the overall industrial activity strengthened in Q1 (January-March), “supporting our view of a pick-up in GDP growth to 7.7% year-on-year in Q1 from 7.2% in Q4”, the report said.

The report further noted that India is expected to witness cyclical recovery led by both investment and consumption. However, factors like rising oil prices as well as tighter financial conditions are expected to drag down growth rates.

“While we remain optimistic on the near-term growth outlook, we expect the adverse impacts of rising oil prices and tighter financial conditions to slow growth further out,” Nomura said.

According to official data, industrial output growth fell to a five-month low of 4.4% in March due to decline in capital goods production and deceleration in mining activity and power generation.

Industrial growth as measured by the Index of Industrial Production (IIP) in 2017-18 too decelerated to 4.3% from 4.6% in the previous fiscal.

Source: PTI

India’s economic expansion to boost mining: President

India’s GDP and larger developmental process will gain momentum over the coming decades and in turn bolster the mining and minerals sector, President Mr. Ram Nath Kovind said.

He also asserted that eventually the local communities must benefit from the discovery, extraction and development of mineral resources.

The reform process set in motion in the mining sector four years ago is bearing rich dividends and will enhance the fiscal health of states, Mr. Kovind said at the National Geoscience awards event.

“India is one of the fastest growing major economies in the world. Our GDP as well as our larger developmental process is set to accelerate over the coming decades. The mining and mineral sector is poised to grow as a result of this expansion of the economy. At the same time, it will also be a driver of economic expansion,” he said.

India’s per capita consumption of many resources and commodities is still very low by global standards and there is room to grow, he said, adding that as more cities, houses and infrastructure are built, the use of key resources will rise.

Mr. Kovind said India needs high-quality research initiatives for sustainable, ecologically-friendly resource generation and meaningful investment in technological innovation in the mining sector.

“That is why reforms in the mining sector have been pushed by the government over the past four years. These reforms, including amendments to existing laws and establishing a more equitable system of royalties, are starting to show results,” he said.

Stating that a number of mineral blocks are being explored, he said steps taken by the Ministry of Mines have led to identification of promising mineral blocks in states for auction and this will go a long way in enhancing the financial health of the states and allow them to spread the benefits from mining of resources.

However, he cautioned, “We must be mindful of the human side of mining. Many of our mineral resources are found in regions that have been the home of tribal communities for generations.

“It is important that these communities are part of the prosperity that the mining economy creates. Rehabilitation and resettlement of our tribal brothers and sisters… must be done in a sensitive and satisfactory manner.”

At the same time, he said, the mining process itself must incorporate the best available safety and health mechanisms for mining workers as well as for their families, who often stay in close proximity to mining sites besides minimizing the environmental impact of mining and resource extraction.

“If this requires using technologies that add to extraction costs, then we cannot shy away from that. India must mine more but India must also mine better and in a sustainable manner,” he emphasised.

The President further said that social expectations from the geoscientific community have increased significantly in recent years.

He added that with deep understanding of landform dynamics, it has an important role to play in enhancing agricultural productivity and farmer incomes; in providing a bedrock to the Smart Cities initiative; and in helping citizens fight the challenge of water scarcity, which has emerged as a pressing problem.

He said, “The implications of geosciences are not limited to just prospecting mines. Whether it is to build railway lines or communication corridors; make assessments for river linking projects or investigate natural hazards such as earthquakes and landslides; manage our coasts and deserts in a time of climate change; or add value to agriculture and help develop new urban centres the applications of geosciences are extremely diverse and extremely useful.”

Mr. Kovind also stressed the need for assessing the potential of offshore resource base saying exploration by marine geoscientists must be encouraged as India has a long coastline and a sizeable marine zone that holds many treasures and “So far we have scratched the surface.”

He said that in March 2020, less than two years from now, India will host the 36th International Geological Congress, the biggest in the world.

Rural Development, Panchayati Raj and Mines Minister Narendra Singh Tomar said 36 blocks bearing major minerals other than coal, explored by GSI and auctioned recently will fetch additional revenue to the tune of Rs 1.11 lakh crore to states.

He said adequate provisions under the Mines and Minerals (Development) and Regulation Act has been done and District Mineral Funds have been created to address the concerns of villagers impacted by mining in mineral-rich states.

Source: PTI