Solar energy in India

Solar energy, a superior evidence of resource usage and upgraded technology has the potential to become the major energy source in the near future. Here arises the prime question that to what extent are the world countries competent of utilizing the ultimate solar power. Even today with huge technological  changes no country in the world is able to tap at least 60% of the received energy. If this happens ( if they are able to tap 60%) not even a single industry in the world will face power shortage.

Towards the accomplishment of that goal India is becoming the hot spot for clean energy with investments up to $ 10.2 billion excluding govt’s part and India’s National Solar Mission has a target of 20 GW of solar energy by 2020. 600 MW solar projects committed to the nation and Gujarat is going to establish an Asia’s largest solar park with 214MW power generation capacity. All these major initiatives are taken by India opposing the disastrous climatic changes fulfilling the country’s industry needs at the same time. India stood at the 6th place among G-20 nations in usage and investment in clean energy. Indian govt is also emphasizing on increasing allocations for solar energy production in this five year plan. If the fixed target of production is achieved, that will accomplish India’s half of energy concerns. 

State wide funding towards meeting the solar energy leveraged indebtedness is fostering, Rajasthan, Tamil  Nadu and Gujarat are leading. Central govt adopting distinctive evaluations to sustain its growth momentum. As a whole India is identified in the right path towards achieving the targeted energy generation by 2020.

 

Global auto Industry setting a new trend

World’s auto industry is witnessing an extreme growth from  the last few years and it has reached a level of one billion cars on the roads. In spite of the economic slow down the auto sales has tremendously increased to 5% according to Scotio Bank.  There has been an interesting point here, the sales of developed countries were crossed by the sales of emerging countries like India. Russian car sales have gone up to 25% compared to the last year sales. This rapid increase in sales of developing countries are influencing the positions of developed countries in world’s auto industry ranking.

India which is the fastest growing auto market in the world and which is becoming a center for all the foreign companies is observing a definite increase in car sales and growth estimated this year would be almost 7%. In the next ten years India is going to emerge as a third biggest auto industry in the world.

 

Contents of Indian Economy at present

Inflation, petrol price hike, RBI interest rates, tumbling of rupee, air fares rise, hapless performance of stock market sums up the country’s present wretched situation. Globalization which was once asserted as a boom to the world is one reason for the condition now along with the worst performance of the present government. European and US crisis has completely affected us in almost all the ways.

To start-off with, Inflation has been at 9.5%  recently. This increase affected most of the sectors, decrease in demand and increase in price of raw materials affected IIP, redistribution of income and house hold sector  also suffering a lot.  Hike in petrol price  is due now because of increase in crude oil prices which will only help OMC’s. Failed to contain inflation RBI reversed its interest rate policy by cutting 50bps which actually the country doesn’t need now.

Since world markets demand dollar trade and also crude oil has become a concern rupee fell to the lowest value of 52.07 and still declining showing no function on RBI’s recent intervention in rupee fall. One good news is more optimism coming into the aviation industry due to FDI stake rise and also direct import of ATF, but cash strapped airline companies are finding heat owing to previous spill over. There is no much volatility in the stock market last week due to all these issues and just witnessed a nominal gain.

What will the PM, FM and RBI do now to to pull back the nation on track of development and will they ever implement the most needed reforms remained as a question.

 

Why RBI has to cut the rates???

 On April 17th RBI slashed the interest rates by 50bps first time in last three years, a traumatizing move by Mr. D. Subba Rao Governor of RBI) which no one ever expected, that too by 0.5 pcnt. 

Here are some of the probabilities explaining the question of why RBI has to cut the rates,

• This seems to be a pro active call by Mr. Subba Rao, because the year 2012-2013 though seen as an initiating year towards recovery there appears lot of pessimism in the markets.
• Number of threats to economy as consumer price  inflation, which came out at 9.47% for March 2012 has become  an important problem to India, even IMF urged us to tackle it effectively where we did not see a remarkable down turn since few months and not confident of its decline in the coming months, so RBI will not have a chance to correct the interest rates at least for the next 2-3 policy meets and they did it now.
• The oil prices which are about to be hiked also adds to the rising inflation and if not hiked will add to the fiscal deficit which is pegged at higher rate (5%) of GDP which in turn leaves RBI no route to cut the rates then.
• As it has been three years since the last rate cut, the interest rates for corporate’s, car loans, home loans and many had tremendously increased impacting industries growth margins because of high operational costs and reached a break even point, so if policy rates were not turned off now growth takes negative way.
• Rupee depreciation due to rise in inflation leading to increasing FII outflows badly influencing the primary and secondary markets shows another reason to thrash the key policy rates.

  Basing on these grounds and many more RBI governor has shown a rational move on policy rates.