Once one of the most sought-after investment destinations, particularly for skill-driven manufacturing sectors like automobiles, Haryana seems have lost some of its sheen with its share of new investment projects in the country tripping to a six-year low of 1.06% in 2022-23, down sharply from almost 3% in the year before.
Even as total investment outlays announced in the State fell 30% last year to ₹39,000-odd crore from nearly ₹56,000 crore in 2021-22, pushing it from the ninth-best State in terms of new investment projects to the 13th rank in 2022-23, manufacturing investments declined 60% to just about ₹9,500 crore.
The decline in fresh investment projects in the State coincides with its enactment of a new law in early 2022 that reserved 75% of private sector jobs with monthly salaries up to ₹30,000 for locals. The law is in abeyance after being challenged judicially, but the suspense over its implementation remains a worry for investors.
Maruti Suzuki, one of the State’s largest legacy investors, which announced a ₹18,000-crore project, Haryana’s largest investment in 2021-22, is now eyeing a ₹24,000 crore plant that will come up elsewhere, for instance. Compared to 2021-22, when manufacturing, industrial parks, roadways and realty projects dominated the State’s largest investments, realty projects dominate the outlays announced in 2022-23.
“Last year, six of the top 10 projects announced in Haryana were in the real estate sector and the 32 new realty projects worth ₹17,986 crore accounted for 46% of the total fresh investment of ₹39,117.31 crore attracted by the State,” Shashikant Hegde, director and CEO of investment monitoring firm Projects Today told The Hindu. Construction projects, incidentally, tend to create more jobs for lower-skilled migrant workers.
Mr. Hegde reckoned that the fall in fresh manufacturing investments in the State could have been partly driven by the mandatory local employment law and recent history of labour troubles for firms like Maruti. “Moreover, the State has not made much effort to project itself as a progressive State, unlike its rivals like Uttar Pradesh, and the last investor summit [Happening Haryana] was held as far back as 2016,” he pointed out.
Industry captains were guarded about the reasons behind the trend. “It is observed that manufacturing investments have been very volatile over the years and because of such volatility, we don’t see that State has any lacunae in its investment environment per se,” remarked PHD Chamber of Commerce and Industry president Saket Dalmia.
“To encourage more investments, Haryana is focusing on becoming strong internally, especially in the electric vehicles sector, with a robust policy,” noted Anjali Singh, chairperson of CII Haryana and executive chairperson of the Anand group.
“For instance, when Maruti’s 800-acre plant at Kharkhoda comes up, with a large EV unit, it can create immense potential for new business and industrial investment for Tier II and III manufacturers,” she pointed out.
Raaja Kanwar, chairman & managing director at Apollo International, said the State continues to be a top achiever in ease of doing business and is investing in improving infrastructure. But the limited industrial landscape in the belts of Gurugram, Manesar, and Faridabad, “which have reached their saturation points, may have contributed to the decline in investment”, he noted.
On the mandatory local employment law, which is sub-judice, Mr. Kanwar said: “At the moment, it is too early to comment on the sentiments, as we are still sceptical on how it will pan out.”
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
