Latest news with #Ind-Ra
The Hindu
4 days ago
- Business
- The Hindu
Anti-dumping duty to boost Bare PCB production: Ind-Ra
The imposition of a 30% anti-dumping duty (ADD) on bare printed circuit boards (BPCBs) will 'meaningfully' benefit domestic manufacturers in the short to medium term, India Ratings and Research (Ind-Ra) said. Since the duty was levied in March 2024 for a period of five years, BPCB manufacturers would continue to gain from the increase in imported PCB prices and have improved utilisation of their production capacities. The electronics industry, the main end-user, has had to brace with increased prices of 10%-15%. Although this is a short-term impact, the supply chain is expected to see a moderate structural shift in the medium to long run through setting up of capacities in India under the Make in India initiative, the rating agency said. In the long term, the sustainability of these benefits will depend on resolving raw material supply chain challenges, particularly the continued reliance on copper-clad laminates (CCLs), which are predominantly imported from China, it added. Establishing local CCL manufacturing would enhance margins and improve supply chain resilience, it said. 'To strengthen India's PCB manufacturing ecosystem, especially in light of ADD on BPCBs, it is essential to build a resilient raw material supply chain and capitalise on government-led incentive schemes,' said Abhash Sharma, Senior Director, Mid Corporates, Ind-Ra.
Time of India
14-05-2025
- Business
- Time of India
WPI at 13-month low in April on declining food prices
India's wholesale price inflation saw a significant drop in April. It reached a 13-month low, settling at 0.85%. This decline was primarily driven by falling food prices. Data indicates a deflation in primary food articles after 27 months. Fuel and power segments also contributed to this decrease. Experts anticipate further moderation in WPI inflation in the near future. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: India's wholesale price inflation fell to a 13-month low of 0.85% in April as food prices continued its decline, official data released Wednesday Wholesale Price Index (WPI), which measures change in producer prices, was 2.05% in March and 1.2% in April 2024."This was largely led by primary food articles, which witnessed a deflation after a gap of 27 months, and the fuel and power segments," said Rahul Agrawal, senior economist at ICRA Besides, the deflation in crude petroleum and natural gas also expectedly widened between these months, aided by the continued correction in global crude oil prices, Agrawal Jasrai, associate director at India Ratings and Research (Ind-Ra), said, "Benign food inflation along with a sharp decline in fuel and energy prices helped in keeping the wholesale inflation at a tepid level."WPI food inflation fell to a nearly two-year low of 2.55% in April from 4.66% in key food items, vegetables and pulses inflation contracted by 18.3% and 5.6% year-on-year, respectively, in April. In contrast, fruit prices increased 8.4%.Cereals inflation was at a 42-month low of 3.8% in April due to better Kharif output. While potato prices decelerated by 24.3%, onion prices increased by 0.2%."The easing of food inflation would help in bringing relief to households and the consumption demand as we begin the new fiscal year," said in manufactured products, which account for 64.23% weight in the WPI, rose 2.6% in April compared to 3.1% in manufactured products, vegetables & animal oils and fats recorded the highest inflation of 28.7%, followed by food products manufacturing at 9.5%.Inflation in primary articles contracted by 1.4% from a positive 0.8% in March. Similarly, fuel and power inflation decelerated by 2.2% from positive 0.2% in March."The decline in fuel & power and energy prices in April was due to the tariff-tantrum led deceleration in global commodity prices," noted inflation is expected to moderate further, according to experts."Muted commodity prices along with a favourable base effect for the food segment would keep the wholesale inflation around 0.5% in the near term," said anticipates it to ease slightly to 0.5-0.8% in May."Looking ahead, the India Meteorological Department's (IMD) expectation of an early monsoon onset in Kerala and an above normal monsoon in the country is a positive for crop output, and consequently, the food inflation outlook, although the spatial and temporal distribution of the same remains key," noted Agrawal.
Fibre2Fashion
05-05-2025
- Business
- Fibre2Fashion
US reciprocal tariffs to exacerbate stress for Indian MSMEs: Ind-Ra
US reciprocal tariffs will exacerbate stress for Indian micro, small and medium enterprises (MSMEs) with moderate to high intensity, India Ratings and Research (Ind-Ra) recently cautioned. MSMEs with revenue below ₹2.5 billion (~$296.6 million) and investment in plant and machinery below ₹50 million as of March 31, 2024, are counted. US reciprocal tariffs will exacerbate stress for Indian MSMEs with moderate to high intensity, India Ratings and Research (Ind-Ra) recently cautioned. Ind-Ra expects Indian MSMEs to turn more vulnerable, especially entities in the sectors where the impact of tariff war is negative. It believes that any demand slowdown could impact MSMEs more than mid-sized corporations. The credit profile of these entities has reverted to pre-COVID level, but the improvement has lagged that of companies whose revenue ranges between ₹2.5-10 billion. With the worsening of operating conditions owing to the escalation of tariff war in April this year, Ind-Ra expects Indian MSMEs to turn more vulnerable, especially entities in the sectors where the impact of tariff war is negative. The rating's agency's analysis suggests that as on March 31, 2024, 23 per cent of the MSMEs remained stressed compared to 11 per cent for mid-size corporations (MCs), which are better positioned than pre-COVID levels to manage business cycles. Ind-Ra believes that any demand slowdown could impact MSMEs more than MCs, although a reduction in interest rates and an improvement in systemic liquidity could provide cushion. There is notable polarity in the operating and financial metrics of MCs and MSMEs, with the former's operating performance and return on equity (RoE) starkly improving during FY15-FY24 and little-to-no improvement for MSMEs. An increasing disparity in RoE profiles of MSMEs and MCs was observed and improvement in MSMEs' operating performance remains skewed, Ind-Ra said in a release. MSMEs' capital expenditure remains subdued in India, while MCs are better placed to withstand financial shocks than MSMEs, Ind-Ra added. On aggregate, 6 per cent of the 1,898 Indian MSMEs studied are in the high-risk category, holding the total debt outstanding of around ₹81 billion as of FY24, which comprises 16 per cent of the total debt of 1,898 MSMEs. Only 5 per cent of MCs are in the high-risk category, holding the total debt outstanding of around ₹137 billion as of FY24, which comprises 11 per cent of the total debt of 1,055 MCs. Fibre2Fashion News Desk (DS)
Time of India
30-04-2025
- Business
- Time of India
Monsoon prediction augurs well for farm sector growth, to boost consumption: Ind-Ra
New Delhi: India Ratings and Research (Ind-Ra) on Wednesday said IMD's prediction of slightly above-than-normal monsoon in 2025 would push farm sector growth which along with monetary easing will help India withstand the adverse impact of reciprocal tariffs . The India Meteorological Department (IMD) has predicted that the seasonal rainfall over the country as a whole is likely to be 105 per cent of Long Period Average (LPA) with a margin of (+/-) 5 per cent. The LPA of the season rainfall over the country as a whole for the period 1971-2020 is 87 cm. #Pahalgam Terrorist Attack Pakistan's General Asim Munir is itching for a fight. Are his soldiers willing? PM Modi chairs 'Super Cabinet' meeting after giving army 'full freedom' India planning to launch military strike against Pakistan within 24 to 36 hours, claims Pak minister Ind-Ra said the IMD forecast is good news for not only farmers but also the economy in general. However, a lot would depend on how it is spread over space and time. If the spread is close to normal without any significant weather shocks due to climate change/shock, India may see another year of reasonable agriculture gross value addition (GVA) growth of around 4 per cent. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Unleash Your Creativity with Adobe - The Ultimate Design Partner Undo "This augurs well for consumption growth in the economy. We already had two good crops - Kharif 2024 and Rabi 2024, and the expectation of another two good crops in FY26 along with inflation under control (closer to RBI's target of 4 per cent) and monetary easing has the potential for the Indian economy to withstand the adverse impact of reciprocal tariffs," Ind-Ra Chief Economist and Head Public Finance, Devendra Kumar Pant, said. Increased irrigation, a higher share of non-crop in agricultural value added and higher food grain production in the Rabi season have reduced the vulnerability of the agriculture sector to the vagaries of monsoon, Ind-Ra said. Live Events Ind-Ra opines that much would depend on the spatial and geographical spread of rainfall over the monsoon months - June to September. While the proportion of agriculture in the real GVA declined to 14.5 per cent in FY25 from 18.5 per cent in FY12, it has remained the principal contributor to employment in the Indian economy (cultivators and agricultural labourers). The proportion of employment from the agriculture sector increased to 46.1 per cent in FY24 from 44.1 per cent in FY18. Ind-ra said the increasing proportion of employment from agriculture at a time when its share in the real GVA is declining has implications for consumption demand growth in general and rural areas in particular. "Higher irrigated area and improved availability of crucial agricultural inputs such as certified/high-yielding variety seeds, fertiliser and institutional credit have helped the Indian economy to improve its resilience towards weather shocks," Ind-Ra said.
News18
29-04-2025
- Business
- News18
Reciprocal Tariffs Will Exacerbate Stress For MSMEs: Ind-Ra
Published By : PTI Ind-Ra opined that the reciprocal tariffs will exacerbate stress for MSMEs, with revenue below Rs 250 crore India Ratings and Research (Ind-Ra) on Tuesday said reciprocal tariffs will exacerbate stress for medium, small and micro enterprises (MSMEs) but mid-sized corporates have a greater cushion against unanticipated financial shocks. With the worsening of operating conditions owing to the escalation of tariff war in April 2025, Ind-Ra expects MSMEs to turn more vulnerable, especially in the sectors where the impact of tariff war is negative. As of March 31, 2024, the agency's analysis suggested that 23 per cent of MSMEs remained stressed compared to 11 per cent for MCs (mid-corporates). MCs are better positioned than pre-COVID levels to manage business cycles. A study of 1,898 listed and unlisted MSMEs and 1,055 MCs highlights that MCs have a greater cushion against unanticipated financial shocks than MSMEs, given their healthy financial metrics. 'Capex intensity is usually low as MSMEs grapple more with working capital issues than MCs, and need adequate finance at competitive rates to manage those. Additionally, MSMEs – unlike MCs – are largely promoter-driven entities and lack a capable second line of management who have the knowledge and skill sets to bargain with lenders/suppliers/customers," Neermoy Shah, Associate Director – Emerging Corporates at Ind-Ra, said. Ind-Ra opined that the reciprocal tariffs will exacerbate stress for MSMEs, with revenue below Rs 250 crore and investment in plant and machinery below Rs 5 crore as of March 31, 2024, with moderate to high intensity. The credit profile of these entities has reverted to pre-COVID level, but the improvement has lagged that of MCs with revenues ranging between Rs 250 crore and Rs 1,000 crore as of March 31, 2024. Ind-Ra believes that any demand slowdown could impact MSMEs more than MCs, although a reduction in interest rates and an improvement in systemic liquidity could provide a cushion. MSMEs Capex has modestly picked up post-COVID but remains lower than historical levels. Lastly, the lack of improvement in the coverage ratios of MSMEs and the percentage of loss-making MSMEs further highlights the vulnerability of MSMEs to exogenous shocks. Externally, the sluggish consumption trends and global slowdown in the face of tariff war 2.0 may put a strain on MSMEs operating and credit metrics, Ind-Ra said. On April 2, US President Donald Trump announced that it will impose reciprocal tariffs on countries with which it has a tariff imbalance. On April 9, the US administration authorised a 90-day pause on the implementation of most reciprocal tariffs, reverting to a universal rate of 10 per cent on almost all targeted countries, while raising tariffs on most goods from China to 145 per cent. Later on April 16, the US further hiked tariffs on exports from China to 245 per cent. (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI)
