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A droughty question

With the threat of drought looming large over most of India its time to ask another decoupling question. Can the Indian economy escape from the effects of a drought? I found some answers in Niranjan Rajadhyaksha’s analysis in today’s Mint. Most economists estimate that the drought will shave off economic growth by one percentage point […]

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Solar support

The good things in life are rarely free and that applies to solar power too. An analysis on this sector in ICIS chemical business highlights how high investment costs associated with photovoltaic (PV) cells has prevented the technology from being cost competitive on a standalone basis. Photo by juicyrai But a step-change in the economic […]

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Make way for ‘Chindonesia’

China, India and Indonesia are powering Asia’s economic recovery this year prompting one economist to club the three to form Asia’s “next growth triangle”. A recent report by CLSA, titled Chindonesia: Enter the Komodo, estimates that the three countries will generate $10 trillion of wealth for investors by 2015. “Together, China and India are increasingly […]

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Potash market power

Have Indian fertiliser companies been able to break a stranglehold that major producers have on the global potash market? Indian papers are full of reports on how Indian companies have succeeded in doing this by securing a contract price of $460/tonne for supplies in 2009-10, about $165/tonne lower than the previous contract. The drop comes […]

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Budget blues

With the budget offering little to the chemicals industry it is time to pile on to the rural rickshaw and hope for a trickle down efect from the enhanced spending that the government has planned in this part of India. Photo by BriceFR This is entirely possible. More money in the hands of the rural […]

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Silicone story

I was at a Dow Corning press conference yesterday for the launch of an expanded Xiameter platform in India, another step in its effort to tackle commoditisation of the silicones business. The no-frills Xiameter, a web-based ordering service, was launched a few years back as customers had become familiar with silicone products and were no […]

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Stimulus planned for textiles

India’s synthetic fibre and fibre intermediate produces will be happy to know that the textile industry is likely to soon receive a number of incentives from the government. A stimulus package, due to be announced next month, would include subsidies on interest and additional funds for technology upgradation, says this report. This is needed as […]

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Confronting China

It’s the turn of the Confederation of Indian Industry (CII) to highlight the threat of cheap Chinese imports. “The threat of dumping of cheap Chinese products in India is real and serious,” says Venu Srinivasan, the new president of the CII. This is something that’s been worrying many Indian companies for a while now. If […]

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Getting off the starting block

So the government has finally approved three Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs). Now comes the difficult part. Who is going to undertake mega investments at a time at a time when the global economic outlook is uncertain, demand for key chemicals has crumbled and not many are willing to stick their neck out […]

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Fading prospects for dyes and textiles

Yet another sector is suffering from of the global economic turmoil. The export-dependent dyestuff industry is projecting nil growth this year, down from 20% in 2008, says this report. Export orders have fallen by 50% in the last four months for this industry which ships about two-thirds of its output to the US, Europe, Northeast […]

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