Tag Archives | India

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Indians need basic goods and services, not luxuries

The Indian economy is one of the most misunderstood in the world. It holds great opportunities, because unlike China it still has a relatively young population. But it is also desperately poor. Thus the opportunities are around providing very basic needs, not for western-style goods. The above ‘Business Standard’ chart based on National Sample Survey […]

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BASF worries about China, India

BASF opened its first China plant 20 years ago. Its Asian strategy focuses on China, Japan, S Korea and India. Thus yesterday’s comments by vice chairman Martin Brudermüller deserve careful study by any company or investor who is interested in the outlook for the region. The background was an unexpected 5% fall in BASF’s regional […]

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Cotton prices slip as India reverses export ban

Cotton prices are falling again, since Monday’s reversal by the Indian government of its proposed ban on cotton exports. India is the world’s 2nd largest cotton exporter, after the USA, with 20% of the market: • On 5 March, its Textiles Ministry banned all exports • Domestic users had applied pressure to divert supplies to […]

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Global auto sales growth stalls as BabyBoomers age

Cars are now the largest single market for chemical sales, as housing markets have slowed globally. Each new US car is worth $3297, for example, according to the American Chemistry Council (ACC), making the US market worth $42bn in 2011. 2011 auto sales were ~59m, up 4% from 2010. The West (EU, USA, Japan) still […]

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2012 sees rising political risk, and protectionism

The world enjoyed an economic SuperCycle between 1982-2007. Its largest economy, the USA, suffered just 16 months of recession during the whole 25 years. As a result, social and political issues took a back-seat. Politicians instead competed to occupy the middle ground. Former UK premier Margaret Thatcher’s phrase ‘you can’t buck the markets’, became received […]

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India’s failed reforms leave food to rot

Many analysts have argued that demand in India could easily replace volumes lost due to a slowing Western economy. Sadly, this week has provided further evidence of why this is merely wishful thinking. As the chart shows, India’s GDP is the same size as Canada’s. But India’s 1.4bn people means its GDP/capita is only $1371, […]

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Risks rise over future growth in China and India

Many chemical companies now believe it is inevitable that China and India will reach developed economy status. Some even believe that their strong growth will mean “the end of economic cycles”. But as we discuss in chapter 6 of ‘Boom, Gloom and the New Normal’, the new International eChem/ICIS eBook, there are three major risks […]

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Downturn continues as financial markets sink

ICIS pricing is a very valuable resource, particularly at market turning points. It highlighted the start of the current downturn in April, when reporting that buyers had moved to operating on a ‘hand to mouth’ basis. Now, its market editors are highlighting the fragility of demand due to ‘economic uncertainty’. This is the moment when […]

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Global stock markets slide as demand disappoints

It is now 5 weeks since the IeC Downturn Alert was launched. The chart above therefore updates the blog’s regular review of financial markets, showing how these have moved over the same period. Most are down around 4%-5%. Russia is the worst performer (down 8%) and Brazil the best (down 3%). But government bond prices […]

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OECD indicators signal slower growth

The OECD’s leading indicators for the global economy suggest that GDP growth is continuing to slow. As the above chart from the American Chemistry Council shows, the OECD’s three key indicators have all slipped from H1 2010′s peaks. The composite indicator (blue) has fallen sharply to +5% from +13%, whilst industrial production (red) is down […]

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