India trade

Investors gave new Infosys chief executive Vishal Sikka a show of confidence on Monday, as shares in the IT outsourcer closed up nearly 4 per cent. Rupee weakness was part of the reason — software exporters prosper as India’s currency drops — but a large chunk seems to stem from optimism about Mr Sikka himself.

Is that optimism justified?

beyondbrics took a trip to Bangalore to meet him last week, as reported here last Friday. Sikka then met with various Indian journalists the following day, prompting various stories over the weekend. The combination of these appears to have soothed investor worries. Continue reading »

The recent devastation in Syria has had one less expected outcome far away on the shores of India.

Exports of cumin, a popular spice used in curry powder and medicines, have shot up to compensate for the disruption to supplies in the Middle East. But prices aren’t spiking as you might expect. Continue reading »

As India’s current account deficit ballooned to unsustainable levels last year, the government slammed the breaks on gold imports with duty hikes and new rules on re-export of the yellow metal. The result was that the jewellery industry hit a standstill.

However, according to Pakistani authorities, India’s official inflows of gold have simply shifted to unofficial channels. Time for action. Continue reading »

India’s trade data for the month of December was published on Friday, showing the trade deficit narrowed to $10bn from $18bn in the same month a year earlier.

That sounds like good news – but it’s not as good as a deficit of just $9bn in November – and it is possible that the gap will soon balloon as the government loosens its grip on gold imports. Continue reading »

India’s external balances have been a focal point this year as the country’s economic woes have centred around the depreciation of the rupee.

So policy makers will be pleased to see India’s trade deficit narrowing yet again. The gap was squeezed to $9.2bn in November from $17.2bn in the same period a year earlier, according to new data from the Ministry of Commerce and Industry. Good news? Continue reading »

India’s economic woes and the sharp decline in the value of the rupee are well known. But, the theory goes, as a currency depreciates, exporters stand to benefit.

Or do they? Is a fall in the rupee that much of a positive for India’s exporters? Continue reading »

India has succumbed to pressure from governments, multinationals and industry bodies abroad to review its policy of boosting locally-made electronics.

It’s good news for international business. But what are the consequences for the Indian economy if demand for electronic products is increasingly served by imports? Continue reading »

Salman Khurshid, India’s foreign minister, is back from a trip to China last week, happy to see the end of a tense stand-off over a long-running border dispute. Settling that issue will re-open the way for a planned visit by Chinese Premier Li Keqiang to India and allow the two countries to concentrate on the big topic on Khurshid’s agenda: trade.

But here, too, relations between the region’s big powers are not entirely friendly. Continue reading »