Reliance Retail Registers Net Profit of ₹2,836 Crore in Q2, Revenue at ₹76,302 Crore

Reliance Retail Ventures Limited (RRVL) reported its financial results for the second quarter (Q2) of the fiscal year 2024-25 (FY25). The company achieved a net profit of ₹2,836 crore on a revenue of ₹76,302 crore. However, this marked a 1.1% decline compared to the same period last year, primarily due to softer demand in the Fashion and Lifestyle (F&L) segment and strategic adjustments in the B2B business.

Focus on Streamlined Operations

The dip in revenue is attributed to the company's focus on streamlining its operations and a measured approach to its B2B business, which was aimed at improving margins. Despite the revenue decline, Reliance Retail managed to increase its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) slightly by 0.3% year-on-year (YoY) to ₹5,850 crore. EBITDA from core operations saw a growth of 1%, reaching ₹5,675 crore, and operational margins improved by 40 basis points, standing at 8.5%.

Expansion and Depreciation

Reliance Retail expanded its footprint by adding 464 new stores during the quarter, bringing the total to 18,946 stores. The retail giant now operates across 79.4 million square feet of retail space. The company also recorded over 297 million footfalls in Q2 FY25, showing a 14% YoY increase. Depreciation expenses for the quarter amounted to ₹1,420 crore, reflecting a 1.5% YoY increase due to accelerated depreciation on stores that were closed.

Continued Investment in Technology and Infrastructure

Isha M. Ambani, Executive Director of Reliance Retail Ventures, emphasized the company's commitment to building a strong foundation for future growth through continued investments in technology and infrastructure. "We continue to strengthen our customer proposition with innovative products that span everyday essentials to premium offerings," she said.

Digital and New Commerce Initiatives

The company has been scaling up its Digital Commerce and New Commerce initiatives, which contributed 17% to overall revenue. With a registered customer base of 327 million, Reliance Retail remains one of the most preferred retailers in India. JioMart, the company's e-commerce platform, showed strong growth in non-grocery categories, with the average order value (AOV) doubling YoY. The seller base also expanded by 46%, with a 13% increase in product range.

Growth in Consumer Electronics and Service Expansion

Reliance's digital electronics stores under the consumer electronics division performed well, surpassing 650 outlets across the country. The company attributed a 60% YoY revenue increase to the "Digital India" campaign, which promoted consumer electronics. Additionally, the on-demand service resQ expanded its presence to 150 cities, with service volumes increasing by 28% YoY.

Challenges in Fashion and Lifestyle Segment

The Fashion and Lifestyle segment faced challenges due to weaker demand, but Reliance Retail focused on product innovation and customer engagement to counter this. The company launched exclusive partnerships, including one with Delta Galil to expand lingerie and activewear offerings, and introduced the ASOS brand in India. AJIO, the company's fashion e-commerce platform, gained 1.8 million new customers and expanded its product catalog by 25%, introducing new brands like H&M, Timberland, and ASOS. Additionally, the youth-centric brand Yousta crossed 50 stores within its first year.

Strong Performance in Grocery Division

The grocery segment continued its steady growth, driven by Smart Bazaar and Smart store formats. Key categories like confectioneries and snacks saw a 30% YoY growth, fruits grew by 26%, and apparel by 49%. The company also reported its highest-ever single-day sales on Independence Day during the "Full Paisa Vasool Sale."

Continued Growth in New Commerce for Grocery

Reliance Retail's Grocery New Commerce business, particularly the Metro format, continued to grow, deepening its engagement with trader and HoReCa (Hotels, Restaurants, and Caterers) segments. Marketing campaigns such as "Freedom Sales" and "Mehangai Se Azadi" contributed to the division's growth. JioMart, the quick commerce vertical, also expanded significantly, with a notable increase in non-grocery categories, especially consumer electronics. The platform's AOV doubled YoY, driven by a broader seller base and product offerings.

Conclusion

Despite a slight dip in revenue, Reliance Retail has shown resilience and a strategic approach to growth. By expanding its physical store network, investing in technology, and scaling up its digital and new commerce channels, the company continues to strengthen its market leadership. With strong growth across multiple segments and a focus on customer-centric innovations, Reliance Retail is well-positioned for future expansion.

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JSW Cement Expands Vijayanagar Plant's Capacity by 2 MTPA with ₹461 Crore Investment

JSW Cement, a part of the JSW Group, announced on October 1, 2024, that it has successfully expanded the production capacity of its Vijayanagar plant in Karnataka. The company has commissioned an additional 2 million tonnes per annum (MTPA) grinding capacity at the plant with a total investment of ₹461 crore. This development brings the total capacity of the Vijayanagar plant to 6 MTPA and raises JSW Cement's overall installed grinding capacity to 20.6 MTPA.

Green Cement Production and Sustainability Focus

The newly added capacity aligns with JSW Cement's focus on producing green cementitious products. The company is committed to sustainable business practices and manufacturing processes, which emphasize minimal carbon footprints. This expansion is a step toward achieving its broader goal of increasing its grinding capacity to 40.85 MTPA in the near future through both brownfield and greenfield expansions across India.

Brownfield and Greenfield Expansion Strategy

JSW Cement is implementing its long-term strategy to develop brownfield and greenfield projects across northern and central India. Planned expansions include new units in key states such as Rajasthan, Punjab, Madhya Pradesh, and Uttar Pradesh, which will significantly increase the company's overall production capacity. These projects will help JSW Cement extend its presence across India, supporting its growth objectives and reinforcing its commitment to innovation and sustainable production.

CEO's Vision on Circular Economy and Innovation

Nilesh Narwekar, CEO of JSW Cement, reiterated the company's commitment to supporting global sustainability goals. "As we continue to expand, our focus will remain on innovative and sustainable manufacturing practices that support the global shift towards a circular economy," Narwekar stated. He further emphasized that JSW Cement's future growth would be driven by these principles, ensuring that the company remains at the forefront of the green cement industry.

JSW Cement's Journey Towards Growth

With this latest expansion at Vijayanagar, JSW Cement has strengthened its foothold in Karnataka. The company aims to become one of the top cement manufacturers in India by continuing to invest in infrastructure that promotes sustainable practices. As part of its growth trajectory, JSW Cement plans to meet increasing demand for eco-friendly building materials while contributing to the development of the country's construction sector.

JSW Cement's efforts to scale up its operations are part of the JSW Group's integrated approach to business, where sustainability, innovation, and growth go hand in hand. With the completion of this expansion project, the company is well on its way to achieving its vision of becoming a leader in the cement industry, powered by green initiatives and cutting-edge technologies.

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F&O Trading Losses in FY24: SEBI Data Reveals Majority of Traders, Whether 'New' or 'Regular', Incurred Losses

Key Highlights from SEBI Data:

• New Traders in FY24: 42 lakh new Futures and Options (F&O) traders entered the market during FY24. These new traders, defined by SEBI as those who placed their first trades within the last three years, accounted for nearly half of all traders in the fiscal year.

• Significant Losses for New Traders: According to SEBI's data, a staggering 92.1% of these new traders suffered losses, averaging a net loss of approximately ₹46,000 per trader in FY24.

• Losses Not Limited to New Traders: While new traders incurred losses, experienced or "Regular Traders" were not exempt. SEBI defines regular traders as those who have been active in F&O trading for three consecutive years (FY22 to FY24). In FY24, about 88% of regular traders faced losses, averaging a substantial ₹1.50 lakh per person.

• Deepening Losses Amid Market Highs: Despite the broader markets reaching new highs during the fiscal year, the data showed that loss-making traders experienced deeper losses compared to the profits of those who did make money. On average, loss-making traders suffered a loss of ₹1.20 lakh per person, while profit-making traders earned ₹1.03 lakh per person.

• Cost of Transactions: Another significant factor adding to traders' woes was the cost of transactions. SEBI's study showed that traders who incurred losses faced a higher transaction cost relative to their losses. Losing traders bore about 27% of their transaction costs on top of their net losses, while profitable traders incurred approximately 22% of transaction costs as a percentage of their gross profits.

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Analysis of SEBI's Findings:

The data highlights a key trend in F&O trading: whether a trader is new or experienced, the derivative market has been unforgiving, with most participants ending up in the red. While many new traders are drawn to the market with hopes of quick profits, the reality revealed by SEBI is that only a small fraction manage to consistently earn a profit, and even those who do often face high transaction costs.

The losses of new traders, who accounted for a significant portion of the market, could be attributed to factors such as lack of experience, high transaction costs, and the complexities of F&O trading, which is often dominated by more seasoned investors or institutional players. The heavier losses for regular traders suggest that even those with experience are not immune to the challenges of F&O markets, where volatility and leverage can lead to significant financial setbacks.

Implications for Retail Investors:

For retail investors considering entering the F&O market, SEBI's data serves as a cautionary tale. The high percentage of loss-making traders underlines the risks inherent in F&O trading, which may not be suitable for all investors. Additionally, the report suggests that traders should be mindful of transaction costs, which can further erode their returns, especially for those already facing losses.

Conclusion:

SEBI's data on F&O trading in FY24 offers a sobering reminder of the challenges faced by traders, particularly new entrants. The high percentage of loss-making traders and the significant financial losses incurred indicate that caution, experience, and careful risk management are critical for anyone participating in these markets.

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Jyothy Labs Expands with Strategic Quiclo Acquisition: Shares Surge 2%

Jyothy Labs saw its stock rise 2% to ₹556 in early trading on September 20, 2024, following the acquisition of the Hyderabad-based laundry service brand Quiclo, owned by Smartwash Solutions Private Limited. The deal, valued at ₹70 lakh plus taxes, is expected to bolster Jyothy Labs' footprint in the laundry and dry-cleaning services sector, particularly in Hyderabad.

Strengthening Presence in Laundry Services
This strategic acquisition includes Quiclo's software and customer database, allowing Jyothy Labs to expand its customer base and enhance its operations in the laundry services space. The company's laundry and dry-cleaning unit in Hyderabad has already commenced commercial operations, adding to its growing portfolio of services.

Growth and Profitability
Jyothy Labs recently reported a 5.7% rise in net profit for the first quarter of FY25, posting ₹101.7 crore compared to ₹96.3 crore in the same period last year. The company remains optimistic about the growth prospects, particularly with the expected uptick in rural demand, driven by a favorable monsoon season.

Focus on Rural Distribution and E-commerce
The management is sharpening its focus on rural markets, improving distribution channels, and introducing new product categories to meet diverse consumer needs. There is also a concentrated effort on increasing Jyothy Labs' presence across e-commerce platforms, boosting both visibility and sales.

Investor Sentiment
At 11:16 AM on September 20, shares of Jyothy Labs were trading at ₹550 on the NSE, reflecting a 25% rally over the past three months. Investors are optimistic about the company's future growth, thanks to its recent strategic moves and strong operating performance.

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Globus Spirits Stock Jumps 4% After Launching Luxury Whisky DOAAB

Shares of Globus Spirits Limited surged 4% to ₹1,370 in morning trading on September 17, 2024, following the company's entry into the luxury whisky market with its new product, DOAAB India Craft Whisky. This marks Globus Spirits' foray into the high-end whisky segment, bringing a fresh perspective to the growing market.

The new range, named DOAAB India Craft Whisky, draws its inspiration from the Hindi term "DOAAB," meaning "the land between two rivers," symbolizing a blend of diverse influences. The first release in this limited-edition series, "Six Blind Men and the Elephant," is a single malt whisky aged exclusively in ex-bourbon barrels. With only 500 casks produced, this edition represents a blend of artisanal craftsmanship and storytelling, inspired by the Indian fable of the same name.

Earlier this month, Motilal Oswal Mutual Fund acquired 2 lakh equity shares, amounting to a 0.69% stake in Globus Spirits, through a block deal on the NSE.

Globus Spirits, which produces, markets, and sells branded Indian-made foreign liquor and bulk alcohol, operates five fully integrated grain-based distilleries across India, with a combined annual capacity of around 268 million liters.

As of 11:10 am, the company's shares were trading at ₹1,335, reflecting a gain of over 1% on the NSE. Over the past month, Globus Spirits' share price has climbed more than 55%.

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J-K floods: Omar says 'we're overwhelmed' by the problem; anger mounts over rescue ops

Anger mounted on Wednesday over the slow pace of rescue operations in Jammu and Kashmir even as chief minister Omar Abdullah said his government was "overwhelmed" by the scale of deadly flooding.

"We have really been overwhelmed. We have been overwhelmed by the scale of the problem," Omar told television reporters adding that he "understood the anger of the people."

The chief minister termed the situation in flood-hit Jammu and Kashmir "serious" but hit out at critics who said his government was not doing enough.

"What can I do. I didn't bring the rain, nor can I stop it. If I could, I would have done that," an angry Omar told ANI.

Meanwhile, an NDRF jawan was attacked by angry locals in Srinagar while few other personnel of the force were heckled while they were rendering relief and rescue operations in the flood-hit areas.

Officials said a National Disaster Response Force trooper received severe injuries on his hand when the locals attacked him

The locals apparently wanted the NDRF men to concentrate on a particular area and when the force personnel decided to go to a different marooned area, the locals attacked them.

"A few incidents of our men being heckled are being witnessed since yesterday in the state," a senior officer said.

Worried by the development, the NDRF and senior home ministry officials have asked the cabinet secretary to devise some mechanism so that troops are kept safe while they render their duty.

Diesel price may be cut for 1st time in 7yrs

 

With Brent crude oil prices dipping below USD 100 per barrel, petrol prices may be cut by Re one a litre and there is also a likelihood of first reduction in diesel rates in seven years.

Petrol and diesel rates are due for revision on September 15 and there is a possibility of reduction in retail prices if benchmark Brent crude continues to stay below USD 100 a barrel mark, official sources said.

This will be the fourth straight reduction in petrol price since last month. Rates were last cut by 1.82 a litre on August 31. Prior to that, petrol price was cut by Rs 1.09 a litre on August 1 and again by Rs 2.18 a litre on August 15.

Sources said there is also likelihood of a reduction in diesel prices, the first in seven years. Diesel prices were last hiked on August 31 by 57 paise in line with the January 2013 decision to raise rates in small doses every month to bridge the difference between retail selling price and cost.

The difference, called under-recovery, had reduced to just 8 paise a litre after the last increase. Diesel currently costs Rs 58.97 per litre in Delhi.

SC reserves order to decide fate of 218 coal blocks

New Delhi: The Supreme Court on Tuesday reserved its order to decide the fate of 218 coal block allocations held as illegal by it with the Centre advocating their cancellation while allocatees blamed the government for irregularities and demanded setting up of a committee to go into each of the allocation.

The Coal Producers Association, Sponge Iron Manufacturers Association and Independent Power Producers Association of India and some private entities opposed the stand of the Government for not favouring the constitution of any committee to look into consequences of the August 25 judgement.

They deprecated the Centre's stand that "cancellation of coal block allocation is a natural consequence of the judgement" by saying that it would lead to total disaster and ultimate suffering for man on street and rural population, already facing power crisis.

Senior advocates K K Venuogopal, Harish Salve and others submitted that the Centre was projecting itself as an innocent party which itself has misled the apex court on the contentious issue.

However, a bench headed by Chief Justice R M Lodha said "Government is only articulating its position" and it would "not be a fair way" of dealing with the matter as "screening committee meetings speak for themselves that no procedure was followed".

"The fact of the matter is they (Govt) want to proceed with a clean slate," the bench, also comprising justices M B Lokur and Kurian Joseph said and referred to the submission of Attorney General Mukul Rohatgi that cancellation of 218 coal block allocations was the natural consequence of the judgement but retention of 40 coal producing blocks and six ready for operation should be considered.

"Government understands all aspects. Government understands about the darkness. It looks at every corner of the country. Everything is visible to the government. They have full confidence," the bench said before reserving the order. 

The final submission of the day-long hearing came from Rohatgi who said, "we have applied our mind to all types of situation and according to us when there is a mass irregularity the impact would be on everybody and I am not here to say who is wrong and who is not."

"I am for cancellation but only pocket that can be saved is 40 productional blocks and six which are ready for production," he said after which the bench concluded the hearing.

However, before concluding the arguments, the bench said, "it has not examined the decision of allocation but the decision-making process".

"We are not concerned whether You (govt) have done wrong or not by we are concerned with the wrong process," it said adding that "we are not forcing the executive to take a particular line

Narendra Modi and Barack Obama meat

It will not be quite a "historic" tea ceremony as happened in Japan. The last historic tea ceremony the Americans had was when they dumped boxes of East India Company tea into the Boston harbour in 1773.

No chai pe charcha but Narendra Modi will meet Barack Obama over two separate days in September, not just one. "The fact that there will be interactions over two days is a signal of the importance we place on the US-India relationship," says Obama’s National Security Council spokeswoman Caitlin Hayden.

But don’t expect the Modi-Abe bromance. These are two men cut from very different cloth.

Obama, writes Tunku Vardarajan in The Daily Beast, is “an exquisitely calibrated product of American liberalism” and the “acme of political correctness (notwithstanding the odd drone directed at ‘AfPak’).” Modi, he writes, in contrast, is a “blunt-spoken nationalist, opposed to welfare, and to the ‘appeasement’ of minorities.”

Vardarajan guesses that the two in their heart of hearts, likely have “vigorous contempt” for each other. In fact, an unsubstantiated story by K P Nayar in The Telegraph had Obama telling a closed door group of wealthy donors that he “continued to have concerns over Modi’s past.”

Whether that story is apocryphal or not, any “concerns” will be kept firmly under wraps on 29 and 30 September. That will not be that difficult. It’s a meeting, not a US Open final where one player has to emerge as the winner.

Instead the chances are both sides will strive to play up points of synergy. "There are few places in the world other than India and the US where the son of a tea-seller in a small time town can rise to be the Prime Minister or the child of a Kenyan father can rise to be president," said US Defence Secretary Chuck Hagel on his recent visit to India.

If Obama’s father had grown coffee beans the parallels would have fit a little better.

But the elephant in the room — that visa denial — will remain. "The Americans should be even more cautious and curious to see if there is unhappiness from the Indian side," says foreign policy analyst Kanwal Sibal to IndiaWrites.com. While a “pragmatic” Modi will obviously not bring it up, Sibal says unlike Manmohan Singh he has "no reputation of being particularly pro-American" either, forcing the Americans to work “extra hard to build a personal relationship with him.”

For Modi’s supporters, this is not a visit as much as it’s a victory lap for him in a country which had him on a visa denial list for years. That’s why instead of the usual meet-and-greet with the community at some hall or auditorium, Modi is choosing to hold what amounts to being a “victory rally” at Madison Square Garden. While the target audience is the Indian community, its message will not be lost on his American hosts either. Modi will play rockstar on their home turf.

Luckily for Obama, the visa denial was not on his watch. Aziz Haniffa reports in India Abroad that at an 2 April fundraiser, Obama claimed he did not even know about the “visa situation.” “But this is not right and I will ask the White House staff to prepare a brief for me and I will act on it,” Obama told the donor saying he wanted to have “great relations with India.”

India vs England, Live Score: Only T20 at Edgbaston

(For ball-by-ball commentary scroll down to the bottom of the page)

The odd loss in the final ODI notwithstanding, India are expected to hold an edge as the visitors seek to bring the curtains down on what has been a mixed tour, with a victory in the only T20 international against England here on Sunday.

ALSO SEE Live Scorecard

Having suffered a 1-3 defeat in the Test series, the Indians found their bearings in the one-dayers, clinching the five-match series 3-1 despite losing Friday's inconsequential final game by 41 runs at Leeds.

England, on the other hand, will be led by Eoin Morgan as their regular T20 captain Stuart Broad was unavailable due to a knee injury.

Modi announces Rs.1,000 crore aid for flood-hit Jammu and Kashmir

The flood situation in Jammu & Kashmir was declared a “national level disaster” by Prime Minister Narendra Modi on Sunday even as the Army alone evacuated 15,000 people from flooded areas across the State.

As more personnel of the National Disaster Relief Force (NDRF), Air Force and the Army were pressed into action, Mr. Modi asked other States to pitch in. Union Home Minister Rajnath Singh made a separate appeal to NGOs to mobilise their resources to help deal with the situation.

Five additional NDRF columns and 70 boats were sent to the flood-affected areas this morning to join operations to rescue people stranded in inundated areas with water levels rising. At least three hospitals of Srinagar including the Government Children’s Hospital were flooded till the second storey; forcing the staff to move patients to the third floor. By late afternoon, a Radio Kashmir announcer told listeners that the station might have to shut down services because water had entered its installations.

The Air Force alone airlifted 850 people over the past two days; 449 were evacuated today. It also ferried medical personnel and supplies from Delhi, boats from Pune, Gandhinagar and Delhi, besides 10,000 blankets and 3,000 tents from Kanpur to Jammu and Srinagar. Besides, 26 IAF helicopters are operating in the flood-affected areas.

With communication lines disrupted, people took to social media to inform about rising water levels. Chief Minister Omar Abdullah used Twitter to appeal against panic with assurances that help was on its way. The boats flown in from Delhi were deployed by afternoon in Srinagar’s worst-affected areas of Indranagar, Shivpura and Rajbagh.

Meanwhile, after the aerial survey, Mr. Modi took stock of the situation and relief operations in meetings with the State administration in Jammu and Srinagar. Before leaving for J&K — where he announced Rs. 1,000 crore assistance in addition to Rs. 1,100 crore already made available to the State government through the State Disaster Relief Fund — he convened a crisis review meeting with the Cabinet Secretary and other senior officials in the national capital.

The Centre also announced Rs. 2 lakh to the next of kin of every person who died in the flooding. An official figure of the deaths was not available but by all accounts at least 160 people have died. Also, Rs. 50,000 would be given from the Prime Minister’s Relief Fund (PMRF) to those grievously injured.

With temperatures dipping, Rs. 5 crore has been set aside from PMRF to purchase one lakh blankets and the Centre will also airlift 50 tonnes of milk powder. Apart from ordering in solar lamps to help deal with the power situation and asking the Department of Telecommunications to restore telecom links, Army engineers have already begun repairing damaged bridges and arrangements are being made to airlift stranded tourists.

Govt approves 7% hike in dearness allowance

 

Dearness allowance to be 107% of basic pay from 1 July 2014

Government has given nod to 7% hike in dearness allowance (DA) raising it to 107% of basic pay. The hike will be effective from 01 July 2014. This move would benefit 30 lakh central government employees and about 50 lakh pensioners and dependents.

The Union Cabinet chaired by the Prime Minister today gave its approval for the release of an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01 July 2014. This is an increase of 7% over the existing rate of 100% of the Basic Pay/Pension, to compensate for price rise.

The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission. The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be of the order of approximately Rs 7691 crore per annum and Rs 5127 crore respectively in the financial year 2014-2015 (i.e. for a period of eight months from July 2014 to February 2015).

The DA is worked out on the basis of 12-month average Consumer Price Index for Industrial Workers, which stood at stood at 7.25% for July 2013 to June 2014 period. Thus, the hike in DA was decided at 7%.

Earlier, the government had raised DA from 90% to 100% effective from 01 January 2014.

Tata Motors sales down 18 per cent in August

Tata Motors on Monday reported 17.59 per cent decline in total sales at 40,883 units in August, 2014 as against 49,611 units in the same month last year.

Domestic sales of Tata commercial and passenger vehicles were down 18.59 per cent during the month at 36,403 units as against 44,717 untis in August last year, Tata Motors said in a statement.

Sales of passenger vehicles in the domestic market in August stood at 10,975 units, down 5 per cent from 11,564 units in the same month last year.

In the commercial vehicles segment, domestic sales declined by 23.3 per cent to 25,428 units during the month from 33,153 units in August last year.

Exports during the month as stood at 4,480 units as against 4,894 units in the year-ago month, down 8 per cent.

Current account deficit narrows to 1.7 percent of GDP

India's current account deficit (CAD) for the first quarter (April-June) of the current fiscal narrowed to 1.7 percent of the gross domestic product (GDP) compared to 4.8 percent during the same quarter last fiscal (2013-14).

"The lower CAD was primarily on account of a contraction in the trade deficit contributed by both a rise in exports and a decline in imports," the Reserve Bank of India said in a statement Monday.

The CAD stood at $7.8 billion for the first quarter of 2014-15 compared to $21.8 billion during the corresponding quarter last fiscal, data released by the apex bank said.

Contraction in trade deficit due to rise in exports helped to clock lower CAD. "Decline in imports was primarily led by a steep decline of 57.2 percent in gold imports, which amounted to $7 billion, significantly lower than $16.5 billion in Q1 of 2013-14," the statement added.

The merchandise import in the first quarter stood at $116.4 billion, down 6.5 percent year-on-year; while the merchandise exports stood at $81.7 billion, up 10.6 percent on year-on-year basis.

The merchandise trade deficit (balance of payment basis) contracted by about 31.4 percent to $34.6 billion in first quarter of 2014-15 from $50.5 billion in the corresponding quarter a year ago.

Beating expectations and showing another sign of revival, the Indian economy expanded by 5.7 percent during the first quarter of the current financial year to log the highest growth yet in nine quarters or over two years, official data showed Aug 29.

Japan and India vow to boost defence ties during summit

 

By Suggested Post: Japan and India agreed on Monday to strengthen defence ties as Asia's second and third biggest economies keep a wary eye on a rising China, with Prime Minister Narendra Modi lashing out at the "expansionism" of some nations.

Japanese Prime Minister Shinzo Abe and his Indian counterpart Narendra Modi also agreed to speed up talks on a so-far elusive deal on nuclear energy cooperation, welcoming what they called "significant progress" in the negotiations.

"From this day on, Prime Minister Modi and I will work hand-in-hand to dramatically strengthen relations in every field and elevate ties to a special, strategic global partnership," Abe told a joint media event after a summit with Modi.

They also agreed to accelerate talks on the possible sale of an amphibious aircraft to India's navy - likely to become Japan's first overseas military sale in nearly 50 years and a result of Abe's more muscular approach to defence in the face of an assertive China.

Modi, on his first major foreign visit since a landslide election win in May, arrived on Saturday for a five-day trip aimed at capitalising on his personal affinity with Abe to bolster security and business ties.

"We intend to give a new thrust and direction to our defence cooperation, including collaboration in defence technology and equipment, given our shared interest in peace and stability and maritime security," Modi said.

In a sign of their warmth, the two leaders greeted each other with a bear hug when they met on Saturday in Japan's ancient capital of Kyoto for an informal dinner. Modi is one of three people that Abe follows on Twitter, while the Indian leader admires Abe's brand of nationalist politics.

"The 21st century belongs to Asia ... but how the 21st century will be depends on how strong and progressive India-Japan ties are," Modi told Japanese and Indian business executives earlier in the day.

Modi criticised the 18th-century expansionist ways of some countries that encroach upon the seas and territories of others, in a veiled reference to China, with which India shares a long disputed border.

Sino-Japanese ties have also been chilled by a row over disputed isles, feuds over the wartime past, and mutual mistrust over defence policies as China seeks a bigger regional role and Abe loosens the constraints of Japan's post-war pacificism.

Abe is keen to expand Japan’s network of security partnerships with countries such as India and Australia to cope with the challenge presented by China.

Modi, for his part, is embarking on an intense month of diplomacy in which he will receive Chinese President Xi Jinping before meeting U.S. President Barack Obama in Washington as he seeks to carve out a stronger role for India as a global player.