South Africa

Industry

Bottlenecks plaguing the coal sector in India

The import of coal has been one of the significant factors contributing to the Current Account Deficit (CAD) in India that touched 4.8 per cent (approx USD 88 billion) of India’s Gross Domestic Product (GDP) in 2012-13 period. Rising imports, coupled with fall in value of rupee, resulted in a drain of foreign exchange from the country. It is surprising to note that although India has the fifth largest reserves of coal in the world totaling up to 235 BT in 2011, the gap between production and consumption of coal has been increasing over the years from 72 MT in 2009 to 82 MT in 2011.   India imported around 135 MT of coal in the 2012-2013 and is currently the second larger importer of coal after China. Here we look at some of the issues pertaining to the coal sector in India. Issues related to import of coal India needs to import substantial amount of coal from countries like Australia, New Zealand, South Africa and Indonesia. Indonesian coal accounts for a bulk of India’s thermal coal imports, while steel-making coking coal is imported largely from Australia and South Africa. Owing to the increase in environmental concerns, coal exporting countries such…

Markets And Economy

Currency crisis in the Emerging Markets

. The year 2013 has seen a global sell off resulting in the fall of currency in most emerging markets including Brazil, India, South Africa, Indonesia and Turkey. The charts below show the currency movement of the emerging nations versus the US Dollar in the last 5 years. (Source: http://www.xe.com/currencycharts )         Brazilian Real has fallen more than 14%  against the USD.       Indian Rupee has fallen about 20% against the dollar in 2013 and hit a lifetime low 68.85 per USD.       South African Rand hit the R10/$-mark for the first time since 2009, the lowest value in four years as poor economic data and labor market tensions weighed on sentiment.        Indonesian Rupiah has slid nearly 12% in 2013.           The Turkish Lira has fallen to a record low of 2 to the US Dollar, the lowest level record since 1981.   

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