EXPORTS INCREASED 82% IN JULY

Written by HARIKRISHNAN.T
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Our exports in the month of July reported a whopping 81.8 percent Year-on-Year growth to $29.3 billion.

The major contributors to this growth are 
                              
                              Engineering Sectors - $8.7billion
                              Petroleum products - $4.6 billion
                              Ready-made garments - $1.38 billion
                              Electronic goods - $0.90billion
                              Jewellery and gems - $3.5billion

Exports from Engineering sector were $31.6billion during April-July 2011. The main reason for this were due to a major increase in shipments to Africa and South America.

Commerce secretory Mr.Rahul Khullar said that current buoyancy in exports was due to the execution of exports orders received well before the recent crisis in US and Euro zone, the tsunami in Japan and high inflation in China.

He also said that growth rate will be slow from August due to the Demand contraction from American markets and Europe.

Also another negative factor are the higher interest costs. The higher interest costs hurts the exporters especially small and medium exporters.

He added that due to these negative economy issues, the monthly export will likely to fall below $25billion soon. So it is really a tough task to achieve a $300 billion exports for the entire fiscal. In 2010-11 our merchandise exports were $246billion.

Our imports also increased. Imports in July increased 51.5 percent to $40.4billion.

Imports of machinery, gold, electronics declined while the imports of oil, pearls and precious stones increased in July.

When we calculate the Exports and Imports during April-July 2011, exports jumped 54 percent to $108.3billion while imports also increased to $151billion.

Regards Hari " लोका समस्ता सुखिनो भवन्तु "



IT GIANTS ON HIGH ALERT AS UK UNREST SPREADS

Written by HARIKRISHNAN.T
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The unrest in Britain has not impacted day-to-day business operations of Indian IT companies, which have offices and facilities in the UK. 

But the companies such as Wipro, HCL Tech and Infosys have swung into action and are issuing advisories to their staff at regular intervals. And in certain cases even offering them an option to work from home or leave early.

These companies-many of which have sales and marketing set ups in the UK or have onsite staff at client locations-said their employees are safe and are being advised to stay "vigilant" and avoid travelling to riot-stricken neighbor hoods.

For the $60 billion Indian IT-BPO industry, the UK is the second largest market after the US and accounts for roughly 18 percent of the overall hi-tech exports.

"We are also not forcing Indian employees to travel on business to the UK. We are saying, in case you are not comfortable travelling, discuss with your manager and make alternative arrangements..... But it is business as usual." Said Mr.Pavan Bagai, Chief operating officer of offshore BPO company EXL.

A TCS spokesperson said that the company did not see any impact on it's business. "Employees have been advised to stay vigilant, keep themselves informed of affected areas and avoid travelling to specific regions" he said.

"We are monitoring the situation closely and taking necessary precautions. All of our employees are safe." said an Infosys spokesperson.

Wipro said that it has enabled "Flexible work options", that is employees can work from home, if required.

HCL Technologies said that they created a hotline where employees can call and seek support on specific concerns.

Regards Hari " लोका समस्ता सुखिनो भवन्तु "



SUBBARAO TO BE RBI GOVERNOR TILL SEPTEMBER 4, 2013

Written by HARIKRISHNAN.T
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The Government has given Dr.D.Subbarao IAS, a two year extension as the Governor of the Reserve Bank of India.

The prime minister has approved the extension of Dr.Subbarao for a further period of 2 years with effect from September 5, 2011 up to September 4, 2013.

This move is meant to give an impression of stability to the economy, because in this current global scenario, bringing a new person would not be seen as a intelligent decision.

Also we can say that the world economy is not completely recovered from the global crisis of 2008. Also another set of challenges is already on its way, given the panic across the world following the recent downgrade of US debt by S&P.

So in order to handle this dangerous situation, India's macro economy should be steered by an excellent Economist. Dr.Subbarao, no doubt is the right person for this. He had served in the Ministry of Finance in the early 1990s when Dr.Manmohan singh was the Finance minister.

Dr.Subbarao has proved his mettle after his baptism by fire during the economic crisis of 2008.

There were occasional hiccups when his inflation-fighting credentials were questioned. But he had no other way to control inflation other than hiking the interest rates.

He has tried to improve the conduct of monetary policy, bringing in more transparency and communication. So we can say that the decision to retain Dr.Subbarao at the Central Bank's helm for another two years is there for very welcome.

I hope that he will steer our economy in the right track through his intelligent decisions and policies.

Regards Hari " लोका समस्ता सुखिनो भवन्तु "