INDIA’S FOREIGN TRADE: December, 2016

I. MERCHANDISE TRADE

EXPORTS (including re-exports)

In consonance with the revival exhibited by exports in the last three months, during December,2016 exports continue to show a positive growth of 5.72 per cent in dollar terms (valued at US$ 23884.97 million) and 7.79 per cent in Rupee terms (valued at Rs. 162179.89 crore) as compared to US$ 22593.35 million (Rs. 150461.57 crore) during December,2015.

Cumulative value of exports for the period April-December 2016-17 was US$ 198807.75 million (Rs. 1333913.57 crore) as against US$ 197333.62 million (Rs. 1278004.37 crore) registering a positive growth of 0.75 per cent in Dollar terms and positive growth of 4.37 per cent in Rupee terms over the same period last year.

Non-petroleum exports in December 2016 were valued at US$ 21117.73 million against US$ 20036.19 million in December 2015, an increase of 5.4 %. Non-petroleum exports during April - December 2016-17 were valued at US$ 176831.24 million as compared to US$ 172960.12 million for the corresponding period in 2015, an increase of 2.2%.

The growth in exports is negative for USA (-1.21%),China(-7.45%) and EU(-6.27%) but exhibited positive growth in case of Japan(3.79%) for October 2016 over the corresponding period of previous year as per latest WTO statistics.

IMPORTS

Imports during December 2016 were valued at US$ 34254.32 million (Rs. 232588.18 crore) which was 0.46 per cent higher in Dollar terms and 2.43 per cent higher in Rupee terms over the level of imports valued at US$ 34096.49 million (Rs. 227067.28 crore) in December, 2015. Cumulative value of imports for the period April-December 2016-17 was US$ 275355.92 million (Rs. 1848099.10 crore) as against US$ 297410.85 million (Rs. 1926024.55 crore) registering a negative growth of 7.42 per cent in Dollar terms and 4.05 per cent in Rupee terms over the same period last year.

CRUDE OIL AND NON-OIL IMPORTS:

Oil imports during December, 2016 were valued at US$ 7645.42 million which was 14.61 percent higher than oil imports valued at US$ 6670.61 million in December 2015. Oil imports during April-December, 2016-17 were valued at US$ 60921.83 million which was 10.76 per cent lower than the oil imports of US$ 68267.37 million in the corresponding period last year.

Non-oil imports during December, 2016 were estimated at US$ 26608.90 million which was 2.98 per cent lower than non-oil imports of US$ 27425.88 million in December, 2015. Non-oil imports during April-December 2016-17 were valued at US$ 214434.09 million which was 6.42 per cent lower than the level of such imports valued at US$ 229143.48 million in April-December, 2015-16.

 II. TRADE IN SERVICES (for November, 2016, as per the RBI Press Release dated 13th January 2017)

EXPORTS (Receipts)

Exports during November 2016 were valued at US$ 13338 Million (Rs. 90199.16 Crore) registering a positive growth of 1.72 per cent in dollar terms as compared to negative growth of 4.79 per cent during October 2016 (as per RBI’s Press Release for the respective months).

IMPORTS (Payments)

Imports during November 2016 were valued at US$ 8323 Million (Rs. 56284.87 Crore) registering a positive growth of 8.37 per cent in dollar terms as compared to negative growth of 7.51 per cent during October 2016 (as per RBI’s Press Release for the respective months).

III.TRADE BALANCE

MERCHANDISE: The trade deficit for April-December, 2016-17 was estimated at US$ 76548.17 million which was 23.51% lower than the deficit of US$ 100077.23 million during April-December, 2015-16.

SERVICES: As per RBI’s Press Release dated 13th January 2017, the trade balance in Services (i.e. net export of Services) for November, 2016 was estimated at US$ 5015 million. The net export of services for April- November, 2016-17 was estimated at US$ 42806 million which is lower than net export of services of US$ 46706 million during April- November, 2015-16. (The data for April-November 2015-16 and 2016-17 has been derived by adding April-November month wise QE data of RBI Press Release).

OVERALL TRADE BALANCE: Overall the trade balance has improved. Taking merchandise and services together, overall trade deficit for April- December 2016-17 is estimated at US$ 33742.17 million which is 36.78 percent lower in Dollar terms than the level of US$ 53371.23 million during April-December 2015-16. (Services data pertains to April-November 2016-17 as November 2016 is the latest data available as per RBI’s Press Release dated 13th January 2017)

President’s greetings on the eve of Lohri, Makar Sankranti and Pongal

New Delhi : The President of India, Shri Pranab Mukherjee has greeted his fellow countrymen on the eve of the festivals of Lohri (which falls on 13^th January, 2017) and Makar Sankranti & Pongal, (which fall on 14^th January, 2017).

In his message the President has said, "On the joyous occasion of Lohri, Makar Sankranti and Pongal, I convey warm greetings and best wishes to all fellow citizens inIndia and abroad.

Lohri, Makar Sankranti and Pongal are expressions of joy and prosperity ushered in by a fresh harvest.  May the celebrations of these festivals bind all sections of our society together with the spirit of love, compassion and joy.

May these festivals which celebrate the hard work of our farmers and offer gratitude to mother nature bring happiness, peace and prosperity in every one’s life.”

Factory output grows 5.7 pc in Nov, shrugs off slowdown fears

New Delhi, Jan 12 (PTI) Belying expectations of a slowdown due to demonetisation, industrial production in November grew by 5.7 per cent compared to a contraction of 3.4 per cent in the same month a year ago.

Factory output measured in terms of Index of Industrial Production (IIP) got a push in November 2016 due to better performance of manufacturing, mining and electricity sectors coupled with larger offtake of capital goods, considered a barometer of investment.

Following demonetisation of Rs 1,000 and Rs 500 notes announced on November 8, 2016, it was feared that cash crunch will hit all sectors.

According to data released by the Central Statistics Office on Thursday, IIP for the month of October last year was revised slightly upwards to a contraction of 1.8 per cent from provisional estimates of (-) 1.9 per cent released last month.

As per the data, IIP growth during April-November period this fiscal remained almost flat at 0.4 per cent compared to 3.8 per cent a year ago.

Manufacturing sector, which constitutes over 75 per cent of the index, grew at 5.5 per cent in November compared to a decline in output by 4.6 per cent earlier.

However, during the April-November period the sector recorded a contraction of 0.3 per cent compared to a growth of 3.9 per cent.

Similarly, electricity generation grew at 8.9 per cent in November compared to a meagre 0.7 per cent a year ago. Mining output grew 3.9 per cent in November compared to 1.7 per cent same month a year ago.

Capital goods production increased by 15 per cent in November compared to a decline in production by 24.4 per cent earlier.

As per use-based classification, growth rates in November 2016 over November 2015 are 4.7 per cent in basic goods and 2.7 per cent in intermediate goods.

Consumer durables and consumer non-durables recorded growth of 9.8 per cent and 2.9 per cent respectively, with the overall growth in consumer goods being 5.6 per cent.

In terms of industries, 16 out of 22 industry groups in the manufacturing sector have shown growth during the month of November 2016 as compared to the corresponding month of the previous year.

TCS chief Chandrasekaran named Tata Sons Chairman

Mumbai, Jan 12 (PTI) Tata Sons today named TCS Chief Executive Officer and Managing Director N Chandrasekaran as its new Chairman over two months after the unceremonious sacking of Cyrus Mistry.

Popularly known as 'Chandra', the 54-year-old was chosen to step into the shoes of interim Chairman Ratan Tata, who took over on October 24 last year after the removal of Mistry.

The decision to appoint Chandra, a Tata group veteran, was taken at a meeting of Tata Sons board here, sources said.

The decision followed a five-member search committee comprising Ratan Tata, TVS Group head Venu Srinivasan, Amit Chandra of Bain Capital, former diplomat Ronen Sen and Lord Kumar Bhattacharya zeroing in on Chandrasekaran. .

Trump says Russia did not try to compromise him, assails spy agencies

U.S. President-elect Donald Trump looks out from inside an elevator after appearing with Alibaba Executive Chairman Jack Ma after their meeting at Trump Tower in New York, U.S., January 9, 2017. REUTERS/Mike Sega

WASHINGTON : U.S. President-elect Donald Trump said on Wednesday that Russia had never tried to sway his actions and furiously blamed U.S. intelligence agencies for news reports that Moscow had compiled compromising information on him.

In a series of Twitter posts, Trump accused intelligence agencies of taking "one last shot" at him by leaking the information. "Are we living in Nazi Germany?" he asked.

Trump slammed as "fake news" the reports that classified documents presented to him last week by the heads of four U.S. intelligence agencies included claims that Russian intelligence operatives have compromising information about him.

"Russia has never tried to use leverage over me. I HAVE NOTHING TO DO WITH RUSSIA - NO DEALS, NO LOANS, NO NOTHING!" Trump wrote in one of the Twitter posts.

Two U.S. officials said Tuesday evening that the allegations on the Russian dossier, which one called "unsubstantiated," were contained in a two-page memo appended to a report on Russian interference in the 2016 election that was presented last week to Trump and to President Barack Obama.

Trump, due to hold his first news conference in nearly six months on Wednesday, pointed to the Kremlin's denials of the reports on the dossier that emerged late on Tuesday, first reported by CNN.

"Russia just said the unverified report paid for by political opponents is 'A COMPLETE AND TOTAL FABRICATION, UTTER NONSENSE.' Very unfair!" he wrote on Twitter.

The Kremlin said on Wednesday it was "total nonsense" that Russian officials had assembled a file of compromising information on Trump.

Reince Priebus, who will be Trump's White House chief of staff, called the Russian dossier report "phoney baloney garbage." He told NBC's "Today" show he had raised the matter with Trump. "He said it was 'total garbage and I'm keeping it clean,'" Priebus said.

Even before the reports, Russia had been likely to take center stage during Trump's first formal session with reporters since he won the Nov. 8 presidential election. The news conference was scheduled for 11 a.m. ET (1600 GMT) at his New York offices.

The Republican president-elect has long said he hopes to improve ties with Moscow, but this effort will come under intense scrutiny after U.S. intelligence agencies concluded that Russia used cyber attacks and other tactics to try to tilt the presidential election in his favor over Democratic candidate Hillary Clinton.

At the same time in Washington, Trump's nominee for secretary of state, former Exxon Mobil chief executive Rex Tillerson, will likely be grilled at his Senate confirmation hearing over his long business relationship with Russian officials including President Vladimir Putin.

There was an unpredictable element to Trump's news conference, given his repeated criticism of the U.S. news media and his belief that many news organizations favored Clinton in the 2016 presidential campaign.

Trump, a New York real estate developer, has been under pressure to separate himself from his global business operations to avoid any appearance of a conflict of interest once he succeeds Obama on Jan. 20.

Sensex soars 241 pts to hit 2-mth high; banks fuel rally

Mumbai, Jan 11 (PTI) Extending Tuesday's rally, benchmark Sensex on Wednesday surged nearly 241 points to close at a two-month high of 27,140 and Nifty reclaimed the 8,300-level on widespread buying triggered by a positive start of the earnings season and firm Asian cues.

Investors cheered better-than expected Q3 numbers in IndusInd Bank along with bullish Asian stocks ahead of US President-elect Donald Trump's news conference later in the day that will give his policy insight.

Besides, investors widened their bets on optimism that upcoming general budget -- to be unveiled next month -- would contain incentives for corporates, which will help boost the economy.

Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services Ltd, said, "Indian stocks opened on a firm note as banking stocks were propped up by IndusInd Bank as well as South Indian Bank's results which lent positivity at the start of Q3 season...metal sector got a shot in the arm following reports of reduction in Chinese production." 

IT stocks remained on the back foot ahead of US President elect Donald Trump's first press conference scheduled in the day, in the backdrop of reintroduction of bill on visa restrictions, James added.

The 30-share Sensex resumed higher at 26,978.44 and quickly breached the 27,000-mark to hit a high of 27,174.87 before winding up at 27,140.41, scoring a notable rise of 240.85, or 0.90 per cent. The Sensex had closed at 27,517.68 on November 10 last year.

The NSE Nifty also climbed 92.05 points, or 1.11 per cent, to end at 8,380.65 after trading between 8,389 and 8,322.25. (the key index had closed at 8,525.75 on November 10, 2016).

On Tuesday, IndusInd Bank reported a healthy growth in its net profit by 29 per cent and the Net Interest Income increased by 34 per cent despite cash crunch created by demonetisation, as investors negated apprehension in banking sector, lapping it up by 2.40 per cent.

The broader markets outperformed the headline indices with gains covering in metal, banks, finance, capital goods, utilities and power sectors, as IT sectors incurred profit- booking on caution as investors awaiting the key quarterly results of corporates TCS and Infosys.

Meanwhile, Midcap and Smallcap shares also traded with substantial gains.

Overseas, Asian stocks ruled higher ahead of the first address of US President-elect Trump. Markets are hoping for some concrete views from him on policy and a checklist of his priorities as he meets the press on Wednesday.

South Korea and Hong Kong gained 1.47 per cent and 0.84 per cent, respectively while Japan's Nikkei 225 Average settled 0.33 per cent higher. China ended lower by 0.79 per cent.

European shares trading mixed with London FTSE gained 0.15 per cent, while CAC and Dax down by 0.60 per cent to 0.41 per cent.

Govt strongly committed to continuing economic reforms: PM

Gandhinagar, Jan 10 (PTI) Strongly committing to continuing economic reforms, Prime Minister Narendra Modi today promised to bring a paradigm shift in polity and economy by providing corruption-free regime and easing processes to make India the easiest place to do business.

Addressing the biannual Vibrant Gujarat Global Summit, dubbed 'Davos of the East', that had Fortune 500 CEOs and global leaders in attendance, Modi said creating an enabling environment for business and attracting investments is his top priority.

"We have placed the highest emphasis on Ease of Doing Business," he said. "My government is strongly committed to continue the reform of the Indian economy."

Over the last two-and-a-half years, the government has worked relentlessly to realise India's potential and to set right the economy, he said, adding the results have been encouraging in substantial improvement in key macro-economic indicators like GDP growth, inflation, fiscal deficit, current account deficit as well as foreign investments.

"India has become the fastest growing major economy in the world. Despite the global slowdown, we have registered excellent growth. Today, India is a bright spot in the global economy. We are seen as the engine of global growth," he said.

Stating that highest emphasis has been placed on Ease of Doing Business, he said decisive steps to ease licensing processes and rationalise provisions and procedures relating to clearances, returns, and inspections have been taken.

"We are monitoring implementation of hundreds of action points across various sectors, aimed at improving the regulatory framework. This is part of our promise of Good Governance," he said.

As India moves closer to global best practices, the government's confidence has been boosted by the positive impact of our policies and practices. "This also gives us the motivation to further simplify our processes to become the easiest place to do business," he said.

"Every day, we are further rationalising our policies and procedures, to make it simple for businesses to establish and grow," he said. "We have liberalised our FDI regime in many sectors and in various ways. India is today among the most open economies."

The Prime Minister said the total FDI inflows since May 2014 have touched USD 130 billion, reflecting confidence of foreign investors in Indian economy. .

India & Portugal to work out a co-production agreement in Films Sector

Col. Rathore meets Portugal Minister of Culture Mr. Luis Filipe Castro Mendes

India and Portugal have agreed to work out modalities for a co-production agreement in the Film Sector.  The agreement would be framed in a time-bound manner keeping in mind the legal aspects of such an agreement.  A possibility of an MoU between the Public Broadcasters of both the Countries to share best practices and seek cooperation in Technical and Content related matters was also discussed. The discussions took place during a meeting between Minister of State for Information & Broadcasting Col. Rajyavardhan Rathore and Portugal Minister of Culture, Mr. Luis Filipe Castro Mendes today in New Delhi.

During the deliberations, Col. Rathore apprised the Portuguese Minister on the initiatives taken by Ministry of I&B to provide Single Window clearances for Foreign Film Producers in the country through the Film Facilitation Office.  He also highlighted the prestigious National Film Heritage Mission of the Government to Digitise, Restore, Preserve the rich filmic heritage of the Country.

Speaking on the occasion, the Minister also apprised the Portuguese Minister about the IIMC and FTII as the premier educational institutes in the field of Journalism and Film Production respectively in the country. The Ministers also discussed the possibility of Student Exchange programmes between educational institutions of both the countries. Ministers also expressed interest for possible co-operation in the areas of Renewable energy, information and communication technology and Start-ups.

The scheduled meeting of Prime Minister of Portugal with the film fraternity at Goa on 12^thJanuary 2017, organized by FICCI was also discussed where in many Indian Producers have also been invited.

The Ministers also expressed interest in sharing of experiences and best practices in Social Media to enhance the outreach.

Theresa May dismisses idea of 'hard' Brexit

London, Jan 9 (PTI) Prime Minister Theresa May today dismissed the notion of a "hard Brexit" and highlighted her plans for a "new relationship" with the European Union (EU) as Britain prepares to leave the 28-member bloc.

At the end of a major speech at the UK's Charity Commission today where she laid out her government's measures to tackle the stigma around mental health, she was asked if the stock markets were reacting to a flawed interpretation of Brexit.

The value of the pound has fallen to a two-month low against major currencies after media reports suggested May signalled the UK would pursue a "hard Brexit" from the EU.

Sterling fell about 1 per cent across the board, the BBC reported.

May said, "Well, I'm tempted to say the people who are getting it wrong are those who print things saying I'm talking about a 'hard' Brexit, 'it's absolutely inevitable it's a hard Brexit'. I don't accept the terms 'hard' or 'soft' Brexit.

"What we are doing is going to get an ambitious, good, the best possible deal for the United Kingdom in terms of trading with, and operating within, the single European market.

"But it will be a new relationship because we won't be members of the EU any longer. We will be outside the European Union, and therefore we will be negotiating a new relationship, across not just trading but other areas, with the European Union," she added.

May's speech came as she had outlined her plans to use the state to create a "shared society" yesterday.

She announced plans to speed up the provision of digital mental health services, to improve services for schools and to stop GPs charging patients up to 300 pounds for a form certifying their mental illness.

Under new measures, every secondary school in Britain will be offered mental health first aid training and employers and organisations will be given additional training in supporting staff who need to take time off.

"We have a once in a generation chance to step back and ask ourselves, what sort of country do we want to be," she said.

May said that mental health had been "dangerously disregarded" as secondary to physical health and changing that will go "right to the heart of our humanity".

She confirmed a new green paper would be published later in 2017 on children and young people's mental health to "transform services in education and within families".

The British PM also announced that mental health campaigner Dennis Stevenson will lead a review alongside Paul Farmer, the chief executive of the mental health charity Mind to look at how people with mental health problems can be better supported in the workplace.

I'm SP chief, party symbol should stay with me: Mulayam to EC

New Delhi, Jan 9 (PTI) Asserting that he remains Samajwadi Party president, Mulayam Singh Yadav today told the Election Commission that the convention called by Akhilesh Yadav camp was "unconstitutional" and that the party's electoral symbol of 'cycle' should remain with his camp.

Accompanied by his loyalists Amar Singh and Shivpal Singh Yadav, Mulayam also contested the affidavits of party leaders submitted by the party faction owing allegiance to his son and Uttar Pradesh Chief Minister, alleging they were forged and asked the EC to get them verified.

Party sources said he also told the EC that Ram Gopal Yadav, who had called the convention in which Akhilesh was made the party president, was expelled from the outfit before that and, therefore, the meeting was unconstitutional as per SP's constitution.

He also said that while there was a resolution appointing Akhilesh as party president and another one appointing him as its mentor, there was no resolution removing him from the party chief's post.