Tamilnadu Economy Thread

[kannan infratech]

X Posted from Chaibar posted by Suncity

http://www.skyscrapercity.com/showpo...6&postcount=48

[Arul Murugan]

Out of 19yrs, 10yrs the state did less performance than national average. 2005 to 2008 looked to be best year for everyone.

[saysenthil]

Tamil Nadu Plan for 2013-14 Finalized

The Annual Plan for 2013-14 for the State of Tamil Nadu was finalised today at a meeting between Shri Montek Singh Ahluwalia, Deputy Chairman, Planning Commission and Ms. J. Jayalalithaa, Chief Minister of Tamil Nadu. The Plan size has been agreed at Rs. 37,128 crore which includes the central assistance to the State Plan of about Rs. 3,165 crore. In addition, an amount of Rs. 9,000 crore is likely to flow from the Centre to Tamil Nadu through various Centrally Sponsored Schemes. Thus, taking all resources, Plan assistance from the Central Government to the State of Tamil Nadu is expected to be over Rs.12,000 crore during 2013-14.

Planning Commission complimented the State Government for its sound fiscal position arising from the significant increase in mobilisation of resources, especially State’s own tax revenue for the State Plan. The State’s Tax-GSDP ratio is likely to cross 10% during 2013-14 making it as one of the leading States in the country in terms of tax mobilisation. The outstanding liabilities as a percentage of GSDP are well within the fiscal consolidation requirements as per the 13th Finance Commission.

It was noted that the State continues to maintain favourable social indicators, especially health indicators such as birth rate, Infant Mortality Rate (IMR), Maternal Mortality Rate (MMR), Total Fertility Rate (TFR), Neo-natal Mortality Rate (NMR). The State also ranks better than the national average in most of education indicators. However, there was need to focus on issues of quality of education and reducing the gender gap.

Planning Commission noted that as has happened in the country as a whole, the growth rate of Gross State Domestic Product (GSDP) for Tamil Nadu in 2012-13 decelerated from 7.3% in 2011-12 to 4.6% which was slightly lower than the national average of 5%. The meeting discussed the steps to be taken to increase the growth rate, including especially revival of investment and development of infrastructure. It was noted that power sector performance would be critical as the State is currently suffering from a large deficit.

[Licit Mortal]

Don't pay the taxes to the central government , unless and until tehy release funds to the state. Let TN use its tax money for its own adminstration, rather than sending it to the center and begging from them.

[venkyinblr]

Originally Posted by Licit Mortal

Don't pay the taxes to the central government , unless and until tehy release funds to the state. Let TN use its tax money for its own adminstration, rather than sending it to the center and begging from them.

Well its my wish, but looks like not possible to avoid taxes to CG

But Honestly greater autonomy to the State Govt in the near future will really really help us..To plan effectively..

[venkyinblr]

Plan outlay for TN fixed at Rs. 37,128 crore

The plan outlay for Tamil Nadu for 2013-14 for Tamil Nadu has been fixed at Rs. 37,128 crore, which is 32.8 per cent higher than that of for 2012-13

Source: The Hindu

[venkyinblr]

Planning Commission approves Tamil Nadu's Rs 37K crore outlay for 2013-14

NEW DELHI: Planning Commission today approved Tamil Nadu's Rs 37,128 crore annual plan expenditure for the current fiscal, which is 32.8 per cent higher than the approved outlay for 2012-13.

The state's annual plan outlay for 2013-14 was finalised here at a meeting between Commission's Deputy Chairman Montek Singh Ahluwalia and Tamil Nadu Chief Minister J Jayalalithaa.

According to an official statement, the plan size has been agreed at Rs 37,128 crore which includes the central assistance of about Rs 3,165 crore.

In addition to the central assistance, an amount of Rs 9,000 crore is likely to flow from the Centre to Tamil Nadu through various Centrally Sponsored Schemes (CSS), it said.

Thus, the Plan assistance from the Centre to Tamil Nadu is expected to be over Rs 12,000 crore during 2013-14.

During the meeting, the Commission pointed out that state's economy or Gross State Domestic Product (GSDP) decelerated from 7.3 per cent in 2011-12 to 4.6 per cent in 2012-13, which was lower than national average of 5 per cent.

The meeting discussed the steps to be taken to accelerate the growth rate, including revival of investment and development of infrastructure.

It was also noted that power sector performance would be critical as the state was currently suffering from a large deficit in the sector.

Later talking to the media, Ahluwalia said, "..like everybody else they had a slowdown in growth this year. I think they have problems in the power sector, they have difficulties in getting coal supplies."

"...like in the rest of the country, water is going to be very big issue (in the state). Tamil Nadu is urbanising very rapidly and their own forecast according to the vision documents they have prepared (is that) by 2023 Tamil Nadu will be 67 per cent urban," he added.

According to Ahluwalia, the Chief Minister expressed her reservations on transfer of funds. She wanted that the funds should go to the consolidated fund of the state and not to be passed on directly (for schemes).

"I think she also has reservations on Direct Benefit Transfer (DBT) scheme and she expressed that," he said.

[iaafosc]

http://www.deccanchronicle.com/13061...e-french-firms

Chennai: Tamil Nadu continues to remain hotspot for investment by French companies, said Francois Richier, France ambassador to India, on Tuesday.

Currently, Tamil Nadu commands one fourth of total French investment in the country which is about $18 billion dollars. There are 350 companies operating in India along with 350 subsidiaries providing employment to 250,000 people. And Chennai has about 65 French CEOs in the city, he added.

Recently, a survey was conducted to find out the investment climate and working environment. Most of the respondent said they were willing to invest in Tamil Nadu. “I am meeting the chief minister of Tamil Nadu on Wednesday to discuss further possibilities of co-operation” Richier said.

On FDI in multi-brand retail, Richier said most big French brands are already in discussions to enter India.

[saysenthil]

- cp -

Tamil Nadu - A successful show begins to pall

[iaafosc]

Not to mention an eight page ad of JJ's achievements in the print edition of this weeks' issue of the economist

[venkyinblr]

Exporters rejoice currency depreciation

A cross section of exporters from the textile, leather and automobile components sector across Tamil Nadu have started breathing easy as the Indian currency hit a life-low of Rs 58.98 (before closing at Rs. 58.38) against dollar on Tuesday as against level of Rs 53.31 in January 2012.
Meanwhile, buyers have also started asking for a share in benefit, said the industry representatives.

Exporters from the textile hub of Tirupur, who do business based on spot rates, said that their margins are likely to improve by about 5-7% due to the rupee depreciation, though it will only be for short term. They also said that customers (buyers) have already started asking to share the benefit.

A Sakthivel, president, Tirupur Exporters Association said that the recent development will certainly help the industry here, to some extent, since almost 30% of the business is done through spot market. It may be noted, total exports from Tirupur were around Rs 12,500 crore last year. He also said that now customers are asking for price reduction or for a 50% share of the advantage. Buyers are now asking for reduction in prices or discounts.

M Rafeeque Ahmed, Chairman of Council for Leather Exports and President, Federation of Indian Export Organisations (FIEO) also agrees. He represents the industry which exports leather products worth around $5 billion from India.

He said, 30-40% of the exports is done through spot contracts. “This will be short-term benefit, but not long term for which we need a stable currency”.

Ahmed also said the rupee depreciation will also help to improve competitiveness of Made-In-India products and will control import of “unnecessary” imports since they will become costlier and in turn will improve trade deficit.

While there would be an immediate improvement in the viability and realisation of exports in the auto component industry, for which Tamil Nadu is one of the largest base in the country, one has to look at whether this is going to be a sustained depreciation or volatility, said a managing director of a company, which supplies to global and domestic OEMs both in India and abroad.

The strengthening of US dollars has resulted in currency devaluation in various other countries like Brazil, Turkey and Japan, and it is this competitive positions the country has to look at to determine whether the currency devaluation has benefited the industry of not. One also has to look at where Rupee is going to be as against US dollar over a longer period of time.

Besides, a lot of auto component industry is based on commodities and commodity prices are based on international market conditions. This would tend to show in the net impact of the currency depreciation and has to be taken into consideration to get a net picture of the impact, he added.

[SupremeIndian]

New Delhi: Petrol price was on Saturday hiked by a steep Rs. 2 a litre, the second increase in rates this month, as devaluation of rupee against the US dollar made imports costlier.

The hike, which is effective from midnight on Saturday, is excluding local sales tax or VAT and actual increase for consumers will be higher.

Petrol price in Delhi was hiked by Rs. 2.40 a litre to Rs. 66.39 from Rs. 63.99 previously.

This is the second increase in rates this month. Oil firms had from June 1 hiked prices by 75 paisa, excluding VAT.

However unlike last time, there will be no change in price of diesel.

In Mumbai, petrol price has been increased by Rs. 2.52 to Rs. 74.60 while in Kolkata rates went up from Rs. 71.29 to Rs. 73.79 per litre. In Chennai, prices were hiked by Rs. 2.54 to Rs. 69.39.

"Since last price change, the slide in Rupee (against the US dollar) has continued and the USD-INR Exchange rate has deteriorated from Rs. 55.32 to Rs. 57.08 per USD," said Indian Oil Corp (IOC), the nation's largest oil firm.

IOC said international petrol prices have also hardened during this period. "The combined impact of both these factors, mainly depreciation of the rupee, has warranted the increase in petrol prices by Rs. 2 per litre (excluding VAT)," it said in a statement.

The June 1 increase in petrol price was the first in three months. The previous hike was on March 1, which was followed by rates being cut four times on falling global oil prices.

Diesel prices has been hiked on five occasions since January when the government authorised state-owned oil firms to increase prices by up to 50 paisa per litre every month till entire losses on the fuel are wiped out.

Since diesel price was hiked by 50 paisa, excluding VAT, on June 1, the next increase will happen at the month end.

IOC said the devaluation of rupee has led to widening of losses on diesel and cooking fuel.

Losses for diesel have widened to Rs. 6.31 a litre from Rs. 4.87 at the beginning of the month. Besides, oil firms are also losing Rs. 27.75 per litre on kerosene and Rs. 335.14 on sale of every 14.2-kg domestic cooking gas (LPG) cylinder.

The company said at current rate IOC would end the fiscal with a total revenue loss of about Rs. 60,000 crore while the industry (IOC plus other state-owned fuel marketing firms) would incur a Rs. 112,500 crore loss approximately.

"The movement in international oil markets and INR-USD exchange rate has been put on a close watch and developing trends will be reflected in future price changes," it added.

http://www.ndtv.com/article/india/pe...e-otherstories

[proprashanth]

And yet they will end up with profits every year after all these statements.