Tag Archives: growth

Learnings from tale of two neighbours – India and China

Tapan Misra

The source of military conflict with China is complex. It is part military, part Chinese desire of redrawing of Chinese territory, commensurate with their perceived and concocted historical Chinese sway and probably more importantly, Chinese desire to restrict India to low end manufacturing and dominantly consumer market. Both the countries, with their similar population (India 1.3 billion and China 1.44 billion) and burgeoning and wealthier middle-class, are lucrative markets to each other and also other industrial nations.

I have sourced from World Bank data the growth of per capita GDP of both the neighbours, presented in equal footing of US$2010. If we have a look into per capita GDP of both the neighbouring nations, both countries were almost at par in poverty status in sixties and seventies. Both the countries, China under rigorous communist regime and India with hybrid of democratic and socialistic framework, established quite strong scientific base in terms of academic institutions since their independence, following second world war. But no amount of investment in scientific institutions and academia could bring prosperity to their populace. Both countries started their improvement in their lot only when they liberalized their economy, shrugging off restrictive hold of apparatchik and bureaucratic stranglehold on industrial, commercial, banking, marketing and regulatory policies.

Deng Xiaoping, unleashed opening of Chinese economy in early eighties, after consolidating his power base in post Mao transition, following demise of Mao Zedong, Chairman of PRC, in 1976. He rationalised the conflict between communistic ideology and market economy with his famous rationale: “No matter if it is a white cat or black cat; as long as it can catch mouse, it is a good cat.” India followed the path of market liberalization from license raj and era of selective patronage of businesses, in early nineties.

From the plot of growth of per capita GDP of both the countries, we see the inflection point almost took a decade after initiation of liberalization. In case of China, it was early 1990s and in case of India, it was early 2000s.

The architect of China’s liberalization could witness early fructification of his risky policy. Deng passed away in 1997. Afterall, it is no easy task to shake off the shibboleth of well entrenched political system, accustomed to sense of supremacy in everything. But one thing is clear, once a policy environment is established, successive rulers of both countries augmented their GDP in their speeds.

One interesting point is to be noted. Chinese economy got one more inflection point within almost a decade after the first inflection point, at early 2000s, accelerating their growths further. In fact, second inflection ushered in dominance of China in world economy and surprising growth in high tech, capital goods, space technology, military prowess. In case of India the second inflection point seem not to be arriving even after two decades or so after the first inflection. Our growth rate remains moderate and stagnant. We seem to be losing out in high tech and capital goods industry. Our telecom industry has huge ingress of Chinese equipment, our auto industry has less and less of India designed product, our mining industry is importing more and more heavy Chinese equipment, we do not have any respectable presence at all in semiconductor and electronics market. In space our neighbours and friends in Asia are just moving too fast. A look at our trade reveals, raw materials dominate our export against import of finished goods, naturally pushing our trade deficit upwards. You look around. We are moving but we are facing more and more catching up to do. We are good at many things, but we can hardly claim to be too good for a few things.
In my view, the first inflection is because of liberalization of overall economy, which triggered proliferation of livelihood industries with moderate technology but large job creation. This in turn fuelled higher income, and more service industries. But they do give fillip to GDP as they create present day technology base and widen job employment. But continuation of business leadership in future, high trade advantage and accelerated growth can come only when we create technology of future in todays environment. That is where innovations and innovation friendly environment play a decisive role. My presumption is: China’s second inflection is mainly due to harnessing of their large innovation potential.

One of the broad-indicator of innovation environment of any country is the number of patents granted per year. In last decade, India’s share has jumped by a factor of five. Latest number is hovering around 10800, a miniscule contribution by billion plus population. For China, the numbers jumped in almost same proportion. Only difference is Chinese numbers are around 40 times that of India, latest number hovering just a notch below 400,000, to be precise at 399,878. That is stratospheric difference. Data show, if we have to achieve the second inflection to push up the GDP trajectory, we need to rethink what urgent steps, we have to climb, in vastly pulling up our innovation environment and support system.

I believe there are a few main ingredients of innovation culture: namely, imagination, knowledge, interpersonal communication and ethical value system. We have invested considerably in knowledge system. We have rapidly expanded AIIMS, IIT, IIM, NIT, Science institutions, Engineering and Medical colleges. But we made the entry system so difficult that private tution-shops are probably having more turnover than the funding in IITs!

We created a competitive rote culture, instead of learning culture, leaving imagination to backbenchers of college classrooms.

Actually, all children are born imaginative. But society, parents, education system and knowledge accumulation gradually kill imagination. It is high time we should focus on primary and secondary schooling, quality of teachers and their remuneration. We are not able to attract bright minds for teaching, precisely because of very lopsided investment. Still our country is progressing forward and this is because of dedication of individual teachers, in spite of hardships they face. We should remember, if you give peanuts, you get monkeys. We need to refashion our education system so that learning and imagination, both are fostered.

We also need to dispense with assessing the college teachers in terms of only publications. Patents, copy rights, design rights should be given much stronger emphasis for career growth. In fact, we give away many of our hard-earned knowledge and learnings, just for free, by insisting on publication without legally securing the knowledge for future monetization.

From my long experience and being holder of reasonable number of quality patents and copyrights, I can vouch that our scientists and engineers, many times, are not able to streamline their analytical thought processes, because they lack soft skills like expressing and communicating in succinct and coherent fashion. Somehow, an idea has invaded our minds that if you want to pursue a career in science, it is ok to not to pursue language and arts courses. This phenomenon is adding to killing of the spirit of innovation.

I had an encounter with Intellectual Property Right (IPR) lawyers. I am sorry to say, interaction with them, many times kills patent initiative. They have the uncanny ability to convert a scientific phenomenon to a legalistic draft, killing the patent at the outset. I remember, in Germany I could file a patent in 15 days flat, that is the general time limit awarded there, for converting a demonstrated idea or product to patent. But in India, I find that even filing takes a year or more. By then, your patent gets leaked, as it travels through many hands and somebody else in some other country, files a patent. Patent offices also take their own sweet time.

My experience says, many institutional heads, including the top men, do not believe in patenting or pursuing an innovation to the logical ends. More often they are guided by ignorance and lack of conviction. Also, many of them have not written a single patent to their credit. Many times, our systems believe that contributing scientists and innovators are best managed by technical and scientific managers, who turn out to be more often than not expert system manipulators. The price is being paid by the country. But I must say there are some exceptions. You will find those leaders from the innovation environment and products from their institutions.

I am not telling that patents are be all of innovation. Patents ensure that the idea or product has originality and its practicability is demonstrated. Bringing an idea to a logical end and demonstrating it as a product or software is a great trainer in discipline required for innovation. All of us know, publications need not ensure originality. Even replication of an existing idea also finds avenues for publication. But patents generally ensure originality in thinking and the implementation process.
Everything is fair in love, war and international commerce. The pinpricks in different forms will be expected from our international competitors of all hues. These pinpricks may include unnecessary military engagements, cyber-attacks, currency manipulation, trade embargo, unfair tariff, one sided global institution regimes, encouragement of social and political discontent. We need to deal with them as and when they appear. We can plan for avoiding or minimising them in future. But sustaining rebuttal of these adventures is possible when we jack up our GDP and well-being of our population. Only way out is a concerted effort and conviction of seizing future economy, by building technologies and processes for future only through the sustainable route of innovation.


Tapan Misra is a distinguished scientist, who contributed immensely to India’s space programme. He has headed the Space Application Centre and was also Advisor Department of Space.

Output of eight core industries declines by 9.6% in July

Newsroom24x7 Network

New Delhi: Due to the lockdown to control COVID-19, the combined Index of Eight Core Industries in India stood at 119.9 in July, 2020, which declined by 9.6 (provisional) per cent as compared to the Index of July, 2019.Its cumulative growth during April to July, 2020-21 was -20.5%.

Final growth rate of Index of Eight Core Industries for April 2020 is revised at -37.9%.The Eight Core Industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).Details of yearly/monthly index and growth rate is provided atAnnexure.

Monthly growth rates of Index of Eight Core Industries (Overall) is depicted in the graph:

The summary of the Index of Eight Core Industries is given below:

Coal- Coal production (weight: 10.33per cent) declinedby 5.7 per cent in July, 2020 over July,2019. Its cumulative index declined by 12.9per cent during April toJuly, 2020-21over corresponding period of the previous year.

Crude Oil-Crude Oil production (weight: 8.98per cent) declined by 4.9 per cent inJuly, 2020 over July,2019. Its cumulative index declined by 6.1 per cent during April toJuly, 2020-21over the corresponding period of previous year.

Natural Gas- The Natural Gas production (weight:6.88per cent) declinedby10.2 per cent in July, 2020 over July,2019. Its cumulative index declined by 14.7 per cent during April to July, 2020-21 over the corresponding period of previous year.

Refinery Products- Petroleum Refinery production (weight: 28.04per cent) declined by13.9 per cent in July, 2020 over July,2019. Its cumulative index declinedby 17.1per cent during April to July, 2020-21over the corresponding period of previous year.

Fertilizers-Fertilizers production (weight: 2.63 per cent) increased by 6.9 per cent in July,2020 overJuly,2019. Its cumulative index increasedby 3.9 per cent during April toJuly, 2020-21 over the corresponding period of previous year.

Steel-Steel production (weight: 17.92per cent)declinedby 16.4 per cent inJuly, 2020 over July,2019. Its cumulative index declined by 42.0per centduring April to July, 2020-21 over the corresponding period of previous year.

Cement- Cement production (weight:5.37per cent) declinedby13.5per cent inJuly, 2020overJuly,2019. Its cumulative index declinedby32.2per centduring April to July, 2020-21over the corresponding period of previous year.

Electricity- Electricity generation (weight:19.85per cent) declinedby2.3per centin July,2020over July,2019. Its cumulative indexdeclined by 12.4per cent duringApril to July, 2020-21over the corresponding period of previous year.


Note 1: Data for May, 2020, June, 2020and July, 2020are provisional.
Note 2: Since April, 2014, Electricity generation data from Renewable sources are also included.
Note 3: The industry-wise weights indicated above are individual industry weight derived from IIP and blown up on pro rata basis to a combined weight of ICI equal to 100.
Note 4: Since March 2019, a new steel product called Hot Rolled Pickled and Oiled (HRPO) under the item ‘Cold Rolled (CR) coils’ within the production of finished steel has also been included.
Note5: Release of the index for August, 2020 will be on Wednesday,30th September,2020.

Performance of Eight Core Industries

Yearly Index & Growth Rate

Base Year: 2011-12=100

Index

SectorWeight2012-132013-142014-152015-162016-172017-182018-192019-20Apr-July 2019-20Apr-July 2020-21
Coal10.3335103.2104.2112.6118.0121.8124.9134.1133.6120.0104.4
Crude Oil8.983399.499.298.497.094.593.789.884.586.481.2
Natural Gas6.876885.674.570.567.266.568.469.065.167.457.4
Refinery Products28.0376107.2108.6108.8114.1119.7125.2129.1129.4127.0105.3
Fertilizers2.627696.798.199.4106.4106.6106.6107.0109.8104.0108.1
Steel17.9166107.9115.8121.7120.2133.1140.5147.7152.6157.391.2
Cement5.3720107.5111.5118.1123.5122.0129.7147.0145.7149.0101.1
Electricity19.8530104.0110.3126.6133.8141.6149.2156.9158.4170.9149.7
Overall Index100.0000103.8106.5111.7115.1120.5125.7131.2131.6133.3105.9

Growth Rates (in per cent)

SectorWeight2012-132013-142014-152015-162016-172017-182018-192019-20Apr-July 2019-20Apr-July 2020-21
Coal10.33353.21.08.04.83.22.67.4-0.41.6-12.9
Crude Oil8.9833-0.6-0.2-0.9-1.4-2.5-0.9-4.1-5.9-6.2-6.1
Natural Gas6.8768-14.4-12.9-5.3-4.7-1.02.90.8-5.6-0.8-14.7
Refinery Products28.03767.21.40.24.94.94.63.10.2-2.0-17.1
Fertilizers2.6276-3.31.51.37.00.20.030.32.7-0.43.9
Steel17.91667.97.35.1-1.310.75.65.13.411.4-42.0
Cement5.37207.53.75.94.6-1.26.313.3-0.92.6-32.2
Electricity19.85304.06.114.85.75.85.35.20.96.8-12.4
Overall Growth100.00003.82.64.93.04.84.34.40.43.2-20.5

Performance of Eight Core Industries

Monthly Index & Growth Rate

Base Year: 2011-12=100

Index

SectorCoalCrude OilNatural GasRefinery ProductsFertilizersSteelCementElectricityOverall Index
Weight10.33358.98336.876828.03762.627617.91665.372019.8530100.0000
Jul-19106.487.268.1132.9111.7151.7146.5170.5132.6
Aug-1994.886.667.4131.0112.6150.0127.7165.7128.5
Sep-1987.383.464.3117.5113.9141.2131.3158.7120.7
Oct-19109.686.366.3134.2115.5149.5137.0145.8127.4
Nov-19133.682.464.4133.0116.7154.9142.4139.9129.2
Dec-19152.983.565.5130.5120.5165.2159.2150.2135.5
Jan-20164.785.065.3134.4116.5155.4164.1155.6137.4
Feb-20171.175.658.3128.9107.8152.9160.7153.6134.0
Mar-20209.785.060.1135.398.3133.2129.8146.9134.0
Apr-20103.780.253.394.285.026.922.5125.681.2
May-20109.482.057.2102.0113.492.1117.3150.6106.9
Jun-20104.379.658.1110.6114.6118.8137.8156.2115.6
Jul-20100.383.061.2114.5119.4126.9126.8166.5119.9

Growth Rates (in per cent)

SectorCoalCrude OilNatural GasRefinery ProductsFertilizersSteelCementElectricityOverall Growth
Weight10.33358.98336.876828.03762.627617.91665.372019.8530100.0000
Jul-19-1.6-4.4-0.5-0.91.58.17.75.22.6
Aug-19-8.6-5.4-3.92.62.93.8-5.1-0.9-0.2
Sep-19-20.5-5.4-4.9-6.65.4-1.4-2.0-2.6-5.1
Oct-19-17.6-5.1-5.60.411.8-0.5-7.7-12.2-5.5
Nov-19-3.5-6.0-6.43.113.67.04.3-4.90.7
Dec-196.1-7.4-9.23.010.28.75.50.03.1
Jan-208.0-5.3-9.01.9-0.11.65.13.22.2
Feb-2011.3-6.4-9.67.42.92.97.811.56.4
Mar-204.0-5.5-15.1-0.5-11.9-21.9-25.1-8.2-8.6
Apr-20-15.5-6.4-19.9-24.2-4.5-82.8-85.2-22.9-37.9
May-20-14.0-7.1-16.8-21.37.5-43.1-21.4-14.8-22.0
Jun-20-15.5-6.0-12.0-8.94.2-25.4-6.8-10.0-12.9
Jul-20-5.7-4.9-10.2-13.96.9-16.4-13.5-2.3-9.6

Consumption plays prominent role in pushing Chinese growth in H1

Newsroom234x7 Network

By shifting away from old growth drivers and moving up on the global industrial and value chain, China is seeing increasingly higher growth quality – Wang Jun with China Center for International Economic Exchanges

Beijing: In the first half of 2018, the Chinese economy, faced with extremely complex environment both at home and abroad – especially the impact of China-U.S. trade frictions, sustained the momentum of steady and sound growth with restructuring deepened, drivers of growth replaced and the quality and efficiency improved steadily under the leadership of Xi Jinping.

China’s National Bureau of Statistics (NBS) data shows that Consumption has continued to play a more prominent role in pushing Chinese growth in H1.

The trade frictions unilaterally stirred up by the United States, have not put much pressure on China’s domestic consumer prices, NBS spokesman Mao Shengyong told a press conference Monday.

The trade war would not necessarily have much impact on the capital market and exchange rates – Ma Jun, a member of the monetary policy committee of the People’s Bank of China

According to the preliminary estimates, the gross domestic product (GDP) of China was 41,896.1 billion yuan in the first half year of 2018, a year-on-year increase of 6.8 percent at comparable prices.

Planting Structure was Optimized and Agricultural Production was Sound

With the restructuring of grain planting, the summer grain is expected to have a good harvest. The supply-side structural reform in agriculture deepened and the sown area of cotton and soybean increased. Animal Husbandry was stable. In the first half year, the output of pork, beef, mutton and poultry was 39.95 million tons, a year-on-year growth of 0.9 percent, among which the output of pork was 26.14 million tons, up by 1.4 percent. The number of pigs registered was 409.04 million, a year-on-year decrease of 1.8 percent and that of pigs slaughtered 334.22 million, a year-on-year growth of 1.2 percent.

The Industrial Production was Generally Stable and the Structure Continued to be Optimized

In the first half year, the real growth rate of total value added of the industrial enterprises above the designated size was 6.7 percent year on year, 0.1 percentage point lower than the first quarter. An analysis by types of ownership showed that the value added of the state holding enterprises went up by 7.6 percent year on year; collective enterprises down by 1.9 percent; share-holding enterprises up by 6.7 percent; and enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan up by 6.2 percent. In terms of sectors, the value added of the mining grew by 1.6 percent on a year-on-year base, the manufacturing grew by 6.9 percent and the production and supply of electricity, thermal power, gas and water grew by 10.5 percent. The value added of high-tech industry and equipment manufacturing industry grew by 11.6 percent and 9.2 percent year on year respectively, 4.9 percentage points and 5.2 percentage points higher than that of the industrial enterprises above the designated size as a whole. In June, the total value added of the industrial enterprises above the designated size went up by 6.0 percent year on year. In the first five months of 2018, the total profits made by industrial enterprises above the designated size was 2,729.8 billion yuan, up by 16.5 percent year on year. The profit rate from principal businesses of industrial enterprises above the designated size was 6.36 percent, 0.35 percentage point higher than that of the same period last year.

Service Industry Grew Fast and the Emerging Services Witnessed growth with good returns

In the first half year, the Index of Services Production increased by 8.0 percent year on year, 0.1 percentage point lower than the first quarter, maintaining high growth rates. Specifically, information transmission, software and information technology services, rental and business services maintained high growth rates. In June, the Index of Services Production increased by 8.0 percent year on year.

The Growth of Consumer Consumption and Market Sales was Stable and there was rapid Growth of Upgraded Consumer Goods

In the first half year, the national per capita consumption expenditure was 9,609 yuan, a nominal growth of 8.8 percent year on year, 1.2 percentage points higher than that of the first quarter, or a real growth of 6.7 percent after deducting price factors, up by 1.3 percentage points. The nominal growth of per capita consumption expenditure of urban households was 6.8 percent, up by 1.1 percentage points. The nominal growth of per capita consumption expenditure of rural households was 12.2 percent, up by 1.2 percentage points. In the first half year, the total retail sales of consumer goods reached 18,001.8 billion yuan, a year-on-year increase of 9.4 percent, 0.4 percentage point lower than the first quarter. Analyzed by different areas, the retail sales in urban areas reached 15,409.1 billion yuan, up by 9.2 percent, and the retail sales in rural areas stood at 2,592.7 billion yuan, up by 10.5 percent.

The Growth of Investment in Fixed Assets was Stable and Private Investment and Manufacturing Investment Rebound

In the first half year, the investment in fixed assets (excluding rural households) was 29,731.6 billion yuan, a year-on-year growth of 6.0 percent, 1.5 percentage points lower than the first quarter. Specifically, the private investment reached 18,453.9 billion yuan, up by 8.4 percent year on year, 1.2 percentage points higher than the same period of last year. The investment in the primary industry increased by 13.5 percent; the secondary industry was up by 3.8 percent, among which the investment in manufacturing was up by 6.8 percent, achieving growth for the third consecutive month, 3.0 percentage points higher than the first quarter, or 1.3 percentage points higher than the same period of last year; the tertiary industry grew by 6.8 percent, among which the investment in infrastructure was up by 7.3 percent. The investment in high-tech manufacturing industry increased by 13.1 percent, 7.1 percentage points higher than the total investment. The investment in real estate development in the half year was 5,553.1 billion yuan, a year-on-year growth of 9.7 percent. The floor space of commercial buildings sold was 771.43 million square meters, up by 3.3 percent. The sales of commercial buildings totaled 6,694.5 billion yuan, up by 13.2 percent.

The Surplus of Imports and Exports of Goods was Narrowed and the Trade Structure Continued to be Improved

The total value of imports and exports of goods in the first half year was 14,122.7 billion yuan, an increase of 7.9 percent year on year. The total value of exports was 7,512.0 billion yuan, up by 4.9 percent; the total value of imports was 6,610.7 billion yuan, an increase of 11.5 percent. The trade balance was 901.3 billion yuan in surplus, 26.7 percent less than the same period of last year. The trade structure was further improved. The import and export of general trade increased by 12.2 percent, accounting for 59 percent of the total value of the imports and exports, an increase of 2.3 percentage points compared with the same period of last year. The export of mechanical and electronic products increased by 7 percent, accounting for 58.6 percent of the total value of exports. The imports and exports with the top three trade partners continued to grow. Specifically, the imports and exports with European Union, United States and ASEAN went up by 5.3 percent, 5.2 percent and 11 percent respectively, which combined to make up 41 percent of the total value of imports and exports. During the same period, the imports and exports with 16 Central and Eastern European countries increased by 14.7 percent, 6.8 percentage points higher than the growth rate of the total value of imports and exports. In June, the total value of imports and exports was 2,493.6 billion yuan, a year-on-year increase of 4.3 percent. Specifically, the total value of exports was 1,377.7 billion yuan, up by 3.1 percent, and the total value of imports was 1,115.8 billion yuan, up by 6.0 percent. In the first half year, the export delivery value of industrial enterprises above the designated size reached 5,716.2 billion yuan, up by 5.7 percent year on year. In June, the export delivery value of industrial enterprises above the designated size reached 1,054.7 billion yuan, up by 2.8 percent.

The Resident Income Grew Steadily and Employment was Good and Stable

In the first half year, the national per capita disposable income was 14,063 yuan, a nominal growth of 8.7 percent year on year, or a real increase of 6.6 percent after deducting price factors. In terms of permanent residence, the per capita disposable income of urban households was 19,770 yuan, a nominal growth of 7.9 percent year on year, or a real growth of 5.8 percent after deducting price factors. The per capita disposable income of rural households was 7,142 yuan, a nominal growth of 8.8 percent year on year, up by 6.8 percent after deducting price factors. The per capita income of urban households was 2.77 times that of the rural households, 0.02 less than the same period of last year. The median of the national disposal income was 12,186 yuan, a nominal increase of 8.4 percent year on year. In June, the surveyed unemployment rate in urban areas was 4.8 percent, the same as that of last month, or 0.1 percentage point lower than the same month of last year. The urban surveyed unemployment rate in 31 major cities was 4.7 percent, the same as last month and 0.2 percentage point lower than the same period of last year. By the end of the second quarter, the number of rural migrant workers reached 180.22 million, 1.49 million more than the same period of last year, an increase of 0.8 percent. The average monthly income of migrant workers was 3,661 yuan, a year-on-year growth of 7.5 percent.

The Consumer Price Rose Mildly and the Price of Industrial Products Rose Steadily

In the first half year, the consumer price went up by 2.0 percent year on year, 0.1 percentage point lower than the first quarter. Grouped by commodity categories, prices for food, tobacco and alcohol went up by 1.4 percent year on year; clothing up by 1.1 percent; housing up by 2.3 percent; articles and services for daily use up by 1.6 percent; transportation and communication up by 1.2 percent; education, culture and recreation up by 2.1 percent; medical services and health care up by 5.5 percent; other articles and services up by 1.1 percent. In June, the consumer price was up by 1.9 percent year-on-year, 0.1 percentage point higher than May and down by 0.1 percent month on month. In the first half year, the producer prices for industrial products went up by 3.9 percent year on year, 0.2 percentage point higher than the first quarter; the purchasing prices for industrial producers were up by 4.4 percent year on year. In June, the producer prices for industrial products went up by 4.7 percent year on year, 0.6 percentage point higher than last month, and a month-on-month increase of 0.3 percent; the purchasing prices for industrial producers were up by 5.1 percent year on year, or an increase of 0.4 percent month on month.

Economic Restructuring and Upgrading Achieved Notable Results and the Growth of New Driving Forces Accelerated

The economic structure continued to be optimized. An analysis by industrial structures shows that the growth rate of the value added of the tertiary industry was 1.5 percentage points higher than that of the secondary industry in the first half year, accounting for 54.3 percent of the GDP, which was 0.3 percentage point higher than that of the same period last year and 13.9 percentage points higher than that of the secondary industry. Analyzed by demand structures, the final consumption expenditure’s contribution to the economic growth reached 78.5 percent, 47.1 percentage points higher than the total capital formation. New industries and new products grew rapidly. Analyzed by the structure of industrial sectors, in the first half year, the value added of industrial strategic and emerging industry grew by 8.7 percent year on year, 2.0 percentage points higher than that of the industrial enterprises above the designated size. The production of new energy vehicles was up by 88.1 percent year on year, industrial robots up by 23.9 percent and integrated circuits up by 15.0 percent. New Consumption was booming. Analyzed by trade structure, the online retail sales reached 4,081.0 billion yuan in the first half year, a year-on-year growth of 30.1 percent. Specifically, the online retail sales of physical goods were 3,127.7 billion yuan, an increase of 29.8 percent, accounting for 17.4 percent of the total retail sales of consumer goods, up by 3.6 percentage points year on year; the online retail sales of non-physical goods was 953.3 billion yuan, an increase of 30.9 percent. Green development was moving forward steadily. In terms of energy conservation and emission reduction, the energy consumption per unit of GDP was down by 3.2 percent year on year in the first half year.

The Supply-Side Structural Reform was Deepened and the Expectation of the Market was Positive

The work to cut structural overcapacity continued to deepen. In the first half year, the industrial capacity utilization rate nationwide was 76.7 percent, 0.2 percentage point higher than the first quarter, and 0.3 percentage point higher than the same period of last year. The efforts to reduce inventory made remarkable achievement. By the end of June, the floor space of commercial buildings for sale has dropped by 14.7 percent year on year. The Corporate leverage ratio and cost continued to decrease. At the end of May, the asset-liability ratio of the industrial enterprises above the designated size was 56.6 percent, a year-on-year decrease of 0.6 percentage point. For the first five months, the cost for per-hundred-yuan turnover of principal business of the industrial enterprises above the designated size was 84.49 yuan, 0.31 yuan less year on year. The investment in weak areas grew rapidly. In the first half year, the investment in the management of ecological protection and treatment of environment pollution and the investment in agriculture increased by 35.4 percent and 15.4 percent year on year respectively, or 29.4 percentage points and 9.4 percentage points higher than the total investment respectively. The market expectation stayed positive. In June, the PMI Composite Output Index was 54.4 percent, the Manufacturing Purchasing Managers’ Index was 51.5 percent and the Business Activity Index for Non-Manufacturing Industries was 55.0 percent, continuing to perform within the expansion range.

The Chinese economy in the first half year maintained the momentum of steady and sound development with increased favorable conditions to support the economy toward high quality development, laying a sound foundation for achieving main social and economic development goals of the year. However, with external uncertainties increasing, the economic restructuring remained in a phase of overcoming difficulties.

Japan explores investment possibilities in Punjab

Newsroom24x7 Staff

Chandigarh: Japan has conveyed that it is interested in partnering with Punjab across key segments of growth and development.

During a meeting between a high-level delegation of the Japanese envoy and Mitsubishi Managing Director and Punjab Chief Minister Captain Amarinder Singh here last week Japan showed keen interest investment and collaboration.

Punjab Chief Minister Captain Amarinder Singh

The meeting between Captain Amarinder and Kenji Hiramatsu, Ambassador Extraordinary and Plenipotentiary, Embassy of Japan, along with Kazunori Konishi, Managing Director Mitsubishi Heavy Industries India Private Limited, was described by both sides as preliminary but paved the way for more intensive discussions going forward.

Discussions at the meeting, which came within days of the Captain Amarinder government taking over the state’s reins, covered a wide range of subjects, which the two sides agreed to deliberate further to work out a collaborative mechanism.

An official spokesperson said after the meeting that Mitsubishi made a presentation to the Chief Minister listing several important areas for possible investment. These included Power, Smart Cities, (Automated Guideway Transit), Industrial Parks and Captive Power Plants, besides strengthening of some existing projects.

The Chief Minister showed interest in the AGT – a public transportation system based on Transit Oriented Development (TOD) – as a cheaper alternative to Metro Rail to offer an affordable and easy commuting option to people in the congested cities of Punjab, such as Ludhiana, Amritsar and Jalandhar.

Captain Amarinder also discussed development of roads and highways as a key step towards improvement of Punjab’s infrastructure. The Chief Minister also showed interest in Japanese investment in the development of economic corridors in the state.

Another important area that came up for discussion during the meeting was improvement in agriculture and horticulture, with the Chief Minister noting that despite small land holdings, Japanese farmers were able to deliver high yields. Punjab’s farmers could learn from the Japanese and use new methods to adopt a similar approach, he said, adding that the paddy and wheat cycle was no longer viable for the farming community and needed to be replaced with something more lucrative, such as horticulture.

The two sides decided to explore possible cooperation in agriculture and the Chief Minister invited Japanese experts to visit the state, particularly the Punjab Agriculture University, to examine the feasibility of agricultural cooperation. An exchange programme for agricultural scientists could be worked out, he added.

Recalling the cold chain capabilities development programme initiated by his government during his previous chief ministerial tenure, Captain Amarinder suggested reviving the cold chain to drive agricultural exports from Punjab to Japan and other countries.

The grave problem of stubble burning in Punjab was also discussed, with the Japanese team offering solutions, based on their own experience of destroying stubble in a safe and eco-friendly way, to the state government. The Chief Minister was interested in the technology, which allows decomposition of stubble into fertilizer.

Mitsubishi also offered its unique technology for production of power from garbage, which the Chief Minister said could be explored as a viable option for the elimination of garbage, especially in urban areas.

Captain Amarinder said he was committed to the modernization of Punjab, in which Japan could join in as an important partner.

New Delhi, March 30

Japan has conveyed that it is interested in partnering with Punjab across key segments of growth and development.

During a meeting between a high-level delegation of the Japanese envoy and Mitsubishi Managing Director and Punjab Chief Minister Captain Amarinder Singh here last week Japan showed keen interest investment and collaboration.

The meeting between Captain Amarinder and Kenji Hiramatsu, Ambassador Extraordinary and Plenipotentiary, Embassy of Japan, along with Kazunori Konishi, Managing Director Mitsubishi Heavy Industries India Private Limited, was described by both sides as preliminary but paved the way for more intensive discussions going forward.

Discussions at the meeting, which came within days of the Captain Amarinder government taking over the state’s reins, covered a wide range of subjects, which the two sides agreed to deliberate further to work out a collaborative mechanism.

An official spokesperson said after the meeting that Mitsubishi made a presentation to the Chief Minister listing several important areas for possible investment. These included Power, Smart Cities, (Automated Guideway Transit), Industrial Parks and Captive Power Plants, besides strengthening of some existing projects.

The Chief Minister showed interest in the AGT – a public transportation system based on Transit Oriented Development (TOD) – as a cheaper alternative to Metro Rail to offer an affordable and easy commuting option to people in the congested cities of Punjab, such as Ludhiana, Amritsar and Jalandhar.

Captain Amarinder also discussed development of roads and highways as a key step towards improvement of Punjab’s infrastructure. The Chief Minister also showed interest in Japanese investment in the development of economic corridors in the state.

Another important area that came up for discussion during the meeting was improvement in agriculture and horticulture, with the Chief Minister noting that despite small land holdings, Japanese farmers were able to deliver high yields. Punjab’s farmers could learn from the Japanese and use new methods to adopt a similar approach, he said, adding that the paddy and wheat cycle was no longer viable for the farming community and needed to be replaced with something more lucrative, such as horticulture.

The two sides decided to explore possible cooperation in agriculture and the Chief Minister invited Japanese experts to visit the state, particularly the Punjab Agriculture University, to examine the feasibility of agricultural cooperation. An exchange programme for agricultural scientists could be worked out, he added.

Recalling the cold chain capabilities development programme initiated by his government during his previous chief ministerial tenure, Captain Amarinder suggested reviving the cold chain to drive agricultural exports from Punjab to Japan and other countries.

The grave problem of stubble burning in Punjab was also discussed, with the Japanese team offering solutions, based on their own experience of destroying stubble in a safe and eco-friendly way, to the state government. The Chief Minister was interested in the technology, which allows decomposition of stubble into fertilizer.

Mitsubishi also offered its unique technology for production of power from garbage, which the Chief Minister said could be explored as a viable option for the elimination of garbage, especially in urban areas.

Captain Amarinder said he was committed to the modernization of Punjab, in which Japan could join in as an important partner.