DEADLY INCIDENT AS INDIA IN NATIONAL LOCKDOWN

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Sixteen migrant workers were crushed to death by a freight train in central India  in Aurangabad Mahrestra as they were traveling home, becase of lack of food and work due to national lockdown , in covid-19 pendamic, In  tragic incident yesterday, a train ran over 16 migrant workers while they were sleeping on a railway track near Aurangabad, Maharashtra. The workers hailed from Madhya Pradesh and were travelling back to their hometowns on foot along the railway tracks. “We all from Madhya Pradesh and we work for SRG Company, Jalna. We were going to our native villages. We left our rooms at 7 PM on Thursday and reached the incident spot at around 4 AM in the morning on Friday.” said bye a eyewitness who is hospitlized .

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Just the day before, a diaster at a plastics factory that was reopening after a lockdown killed 11 people and sickened hundreds. Officials said that workers at a plant owned by the South Korean industrial giant LG had mishandled a valve on a styrene tank that sent a cloud of deadly vapor floating over the outskirts of Visakhapatnam, a city of several million people, that left people choking to death in the streets.

The moral of those stories for the Indian government, which imposed one of the world’s strictest lockdowns six weeks ago and is now trying to restart its economy, and did’t focous on the safty major in openieng of factory , bussiness, and all .

 

Many of the country’s struggles in the pandemic — including mass internal migration, unsafe workplaces and industrial disasters — have been amplified by the lockdown and the subsequent move to reopen businesses. And with millions of its citizens working overseas to send money home, and many of their lives now destroy by the pandemic, India is also undertaking a giant repatriation effort.

The gas leak and train incident wasn’t the only accident as Indian businesses began resuming operations. On Wednesday, half a dozen worker who had not been given safety gear  wear hospitaliz after inhaling dangerous fumes at a paper mill in Chhattisgarh, that was trying to restart operations after weeks of inactivity. And on Thursday, several hundred miles to the south, in Tamil Nadu, a boiler exploded at a thermal power plant, badly burning several workers.

The migrants killed on Friday along the railway tracks were  depressing wave. In recent days, India’s government, which initially blocked migrants from moving state to state, has eased the lockdown rules to allow some to travel. Over all, Mr. Modi’s government has been decided to give some relief in the lockdown, deeply concerned about the economic hit on a country by the so long national lockdown .

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The news of the migrants’ deaths disturbed an Indian public already rattled by the accident at the LG plastics factory. investigations indicate that the accident was caused by a leak in a styrene tank that had been neglected for weeks.

Officials said that dangerous pressure had been building in the tank during the lockdown and that factory workers had improperly opened a valve, releasing a huge cloud of toxic vapor.

On Friday, police officers put up more barricades around the factory and were not letting anyone near it. With many of the evacuated villagers being housed in government shelters, the entire area bore a deserted look. this incident focused people to remember painful memories of industrial accident in Bhopal in 1984 in which a pesticide plant released toxic gas that killed more than 4000 people in Bhopal.

 Apart from indesterial incident and train incident number of fatal car accidents is way down — no surprise, perhaps, given that roads across India were deserted until this week till modi govt. give a little relief in  lockdown. A recent report found that 140 people died in car accidents nationwide from March 24 to May 3 — an average of 3.4 deaths per day, as of due to national lockdown other incident like killing, snatching, curreption , burning of people  decreased .

THANKS!

Deshdeepak

data source- google and other news agency

EFFECT OF COVID-19 ON INDIA CHINA TRADE

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As COVID-19 has play a very bad impact on the world economy. Almost  every economy shutdown due to implimentation of  national lockdown across the world , and   Access to the outside world has shrunk; almost every county has severed their supply chains with China. Lockdown has shrunken our business , work ,education,  social life, evening previously spent with friends are now passed plugged into laptops and mobile phones. The lockdown by India imposed has affected the domestic trade too. in India lockdown extend by Modi government till 19 may , and in this long period entire nation  shut down almost each and every business, every job, startup , even small business  effected by this lockdown , each and every person of the nation are in their house  doing nothing , using mobile and laptop.

In China their is also lockdown which is now open as China is a big exporter  of a large amount of commodity across world, and to India  because  a large number of manufacturing unit in China. and all the manufacturing unit are shutdown either closed the product due to global pendamic  .

As per the official Chinese data, a 12.4% decline in India- China trade was seen for the month of January and February 2020. China’s export during this period was about 67.1 billion Yuan.

Many sectors have suffered huge losses due to the imposition of the lockdown. The medicines imported from China have seen a huge jump in their prices. Paracetamol imported from china has seen a hike in its price by up to 40%. India imports 70% of its medicines and medical raw material from China. Due to which we will soon see a price jump in medicines.

China has been a leading exporter of electronic products. Televisions and mobile phones whose 75% and 85% of the components respectively are Chinese made, are going to be hit. Supply from China is shut since December 2019, which caused a shortage of cheaper basic products. DAIKIN, a Japanese air-conditioner manufacturing company has already informed its retailers that the company is going to be increasing prices by 5% to 7%. Products which can be made easily in our own country are imported from China because they are cheaper. Discounts earlier received on mobile phones and other electronic items will be cut off and are expected to hike in price, there are expectations that there will be a 10%-20% increase in the price of electronic products.

As India has shut down the exports, it will make the textile industry suffer. India is one of the largest producers and exporters of cotton yarn. India exports about 25% of its annual cotton and cotton yarn to China. The cotton export is being held up completely.  The fabric export has seen a sharp decline. The cost of raw cotton has been reduced by Rs.200 to Rs.300, because there is no demand from China.

Toys will get costlier because the toys imported from China which cost about Rs.10, if made in India costs around Rs.17, this is due to machinery. China manufactures toys on a larger scale. Whereas in India the production is on a smaller scale as compared to China, and without the advance machinery as in China.

Out of every 15 diamonds of the world 14 are cut and polished in India. India exports 36% of its diamonds to China, this will cause India to lose around $1.05-1.3 million. India’s gold market saw a 92% decline in demand for this Akshaya Tritiya, the annual spring festival Hindus  for which, consider it to buy gold and demand of yellow mettle is very high during this festival.The alloy is mixed with gold to give it strength and durability, and  the platinum used to gold rhodium polish are imported from China; this will force the retailers to increase their making charges, resulting in an overall increase in the price of gold and silver jewellery.

As China is the largest exporter of iron and steel in 2019 having exported 87.3 million metric tons which equals approximately 15.8 % of global exports and its expected to increase in the price of the production after covid -19 As regards steel, although Chinese export prices of steel do influence Indian export realisation, imports from China of pipes (Chinese share 32.0% of total imports of this category in April-January’20), GP/coated products (Chinese share 14.3%), electrical sheets

India faced a similar slowdown back in 2008 which caused the GDP growth to fall from 9.8% to 3.9%. The Great Recession of 2008 made China the economic powerhouse. This slowdown is due to the lockdown where all the factories and workplaces are closed. It is expected that after the lockdown opens the demand will be back on track, but it will take time because people have suffered a pay cut and are left with lesser money to spend on wants, and due to the shortage of imports from China, people will have to pay more for the same than they paid earlier. Japan has earmarked $2.2 billion to help its manufacturers shift production out of China. India can be the next best location after  China; because India has a lower labour cost and is easily accessible to other countries. and ,India is working MNC’s planning to shift their production units from China in the post coronavirus world. The Finance Ministry has asked a select group of industry representatives to send “implementable” suggestions on an urgent basis to make the country a global manufacturing hub

THANKS !

Deshdeepak

 

 

 

Data source- google and govt. of India and china official website.

 

 

 

 

 

 

 

 

 

 

 

Vista Equity Partners to invest $1.5B in India’s Reliance Jio Platforms

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A U.S. base private equity farm Vista Equity Partner is agree to invest in jio ltd., vista agree to buy  2.32% stake in jio for some of ₹ 11,367 crore rupees for 2.32% stake in jio platform  ltd., this agrement  will lead to new high of jio ltd.,  In its third transaction in less than three weeks, the Mukesh Ambani-led Reliance Industries (RIL) has struck a deal with US private equity firm Vista Equity Partners for another stake sale in Jio Platforms. 3 week ago world largest investment made by Facebook in jio for 9.99% stake in jio platform ltd., On April 22 social one of largest social media platform Facebook buy 9.99% stake in jio for ₹ 43,574 crore rupees . and early this week silver lake agree to invest in jio Platfrom ₹ 5,655.75 crore rupees , for 12.5% stake in jio .

Reliance Jio Infocomm Ltd. which provides connectivity platform to more than 388 million   subscribers, will continue to remain a wholly owned subsidiary of jio platform .

Commenting on the transaction,Mukesh Ambani, Chairman and Managing Director, said, “Like our other partners, Vista also shares with us the same vision of continuing to grow  and transform the Indian digital ecosystem for the benefit of all Indian . we are exited to leverage the profession expertise and multi – level support that Vista has been offering to its investment globally for benefit for Jio ltd.”
Robert F. Smith, founder, chairman and CEO, Vista, said,  “We believe in the potential of the digital society that Jio is building for India. We are thrilled to join Jio Platforms to deliver exponential growth in connectivity across India, providing modern consumer, small  business and enterprise software to fuel the future of one of the world’s fastest growing digital economies. ”
Transaction values the Reliance Industries’ arm at ₹ 4.91 lakh crore after the vista agree to Invest in jio ltd. , this make jio ltd at a new high. valuing the company at ₹ 9.9 lakh crore in the  market.

Vista Equity Partners

Vista is an American private equity and venture  capital firm focused on financing and forwarding software and technology-enabled startup businesses, as well as passive equity investments.

The firm was founded in 2000 by American businessman and investor Robert F. Smith and Brian Sheth. Vista Equity has offices in Austin, Texas; Chicago, Illinois; and San Fraxncisco, Calofornia . In 2018, Vista had over US$43 billion in cumulative capital commitments and owned over 50 software companies which combined, employed 65,000 people worldwide.In 2016, Vista operated with approximately $10 billion in their VI fund.

Vista has more than $57 billion in cumulative capital commitments and  it’s global network of companies collectively represent the fifth largest enterprise software company in the  world.  With 20 years of investing experience exclusively in enterprise software, Vista believes the transformative power of technology is the key to an even better future — a healthier planet, a smarter economy, a diverse and inclusive community, and a broader path to prosperity. Currently, Vista portfolio companies have a significant presence in India with over 13,000 employees.