Domestic demand in India still very weak, says Nomura

A sustained growth recovery led by the revival of the investment cycle is more likely after Q3 2014 and that too is contingent on a stable political outcome in the forthcoming general elections, warns Nomura in a research note

Current data on the Indian economy confirms that domestic demand is still very weak and overall growth remains supported by external demand, cautions Nomura in a research note. Nomura expects India’s GDP growth to continue to consolidate in the 4.5-5.0% range until Q3 2014. Net exports should be supported by better global growth and weak domestic demand. However, private domestic demand is unlikely to pick up in the next few quarters because of high inflation, monetary tightening and political uncertainty ahead of the elections. Further, fiscal austerity is likely to be an additional drag on growth in the next few quarters.


According to Nomura, a sustained growth recovery led by the revival of the investment cycle is more likely after Q3 2014 and that too is contingent on a stable political outcome in the forthcoming general elections. It expect GDP growth to average 4.7% year-on-year in FY14 (year ending March 2014), up from 4.5% in FY13 and then pick up further to 5.0% in FY15. Further, the advanced GDP growth estimate of 4.9% in FY14 is likely to be revised lower (closer to our estimate of 4.7%) as growth has averaged only at 4.6% in the first three quarters of the fiscal year and is unlikely to see a substantial improvement in the final quarter.


The basic GDP growth performance is summarised in the table below:


Nomura analysts have the following points to make on the overall GDP analysis in the Indian economy:


(a) Real GDP growth eased to 4.7% y-o-y in Q4 2013 from 4.8% in Q3, slightly lower than market expectations;

(b) Agriculture growth eased to 3.6% y-o-y from 4.6% in Q3, while GDP growth ex-agriculture improved marginally to 4.9% from 4.8% as the pickup in service sector growth more than offset the contraction in the industrial sector;

(c) From the demand side, growth was supported by strong growth in exports and to some extent government spending. In comparison, private domestic demand remained very weak, with both private consumption and fixed investment growth still around their lows.

(d) Nomura expects GDP growth to remain in the 4.5-5.0% range in the coming quarters as domestic demand is likely to remain weak, while export demand is expected to remain strong. Overall, we expect GDP growth to average 4.7% in FY14 and 5.0% in FY15.


Pulse Beat

Medical developments from around the world

Pentavalent Vaccine-related Deaths
Government of India is trying to undermine the seriousness of deaths following this new vaccine which it wants to spread all over India. One wonders why the government is so keen to push this down the throat of hapless children, when doubts about the vaccine are being voiced all over the world.

One has only to find out who owns the vaccine companies?!!

Screening for Neck Arteries!
Adults should not be screened for narrowing of the neck arteries, according to a draft recommendation from the influential US Preventive Services Task Force. Narrowing of the neck arteries, formally called ‘carotid artery stenosis’, reduces blood flow to the brain and is a risk factor for stroke. “The carotid artery is the blood vessel that brings blood to the brain,” explained Dr Peter Faries, chief of vascular surgery at the Mount Sinai Hospital in New York. “Coronary artery starts in the chest and travels through the neck until it enters the skull.” The market-driven ‘medical-scare’ system now recommends this screening routinely; but there seems to be no evidence to support this claim!

Pulsed Electromagnetic Field Therapy (PEMF)
PEMF is like a whole body battery charger. It helps to recharge the 1,000 trillion body cells by improving ATP (adenosine triphosphate) production, increasing tissue oxygenation, enhancing circulation, promoting cellular hydration, facilitating detoxification, and improving overall absorption of nutrients.  In this era of multiple unhealthy electromagnetic energy waves coming from radios, cell phones, cordless phones, computers, microwave cookers, Wi-Fi , Internet, and what have you, PEMF is like a small jumper cable on body cells to jump-start them back to health.  Our bodies are but energy; mind is also the same. The third dimension of energy comes from the earth’s geomagnetic field and the Schumann ring around the globe of Sun’s EMF.

More than 10,000 scientific papers and more than 2,000 double-blind studies have been carried out all over the world on the uselfulness of PEMF. It started in Russia and Europe. Our group introduced this in India and already more than 500 patients have undergone this therapy. We have shown this to be very useful in acute tissue damage, inflammation and many other painful conditions. For restoring health, this is a boon.
Dengue Fever
Dengue fever is caused by a family of viruses transmitted by mosquitoes. It is an acute illness of sudden onset that usually follows a benign course with symptoms such as headache, fever, exhaustion, severe muscle and joint pain, swollen lymph nodes (lymphadenopathy) and rash. Presence of fever, rash, and headache (the ‘dengue triad’) is the particular characteristic of dengue. Other signs include bleeding gums, severe pain behind the eyes and red palms and soles.

Dengue can affect anyone; but it tends to be more severe in people with compromised immune systems. Because it is caused by one of five serotypes of virus, it is possible to get dengue fever multiple times. However, an attack of dengue produces immunity for a lifetime to that particular viral serotype to which the patient was exposed.

Haemorrhagic dengue is a more serious condition and requires careful management; but, by and large, dengue does not warrant any scare-mongering. Improve your immune system and dengue will not bother you.


“No shortcuts for success,” says Namita of Banka BioLoo

Believing in giving 100% to her work, Namita Banka of Banka BioLoo puts in all her effort to start the business of promoting and developing innovative environmental friendly products and services for human waste management system

Banka BioLoo Pvt Ltd is a proprietary firm started by Namita Banka in 2008, which she incorporated in 2012. A glance at the company’s website paints a frightening picture of India’s poor sanitation. It says, India accounts for 58% of the world’s population of open defecators. What a shame! Ms Banka is determined to change these numbers. A science graduate from Delhi University, with a post graduate degree in Metal Designing, she also worked at jewelry designing and manufacturing for eight years at Surat, in Gujarat.  After working for eight years in this profession, she gained the skill to look at things very minutely. But jewelry design was not her destiny. The turning point came in her life when she shifted to Hyderabad and set up Banka BioLoo. Always interested in working for the environment, she participated in several voluntary activities. To follow her passion, she did a course in NGO Management in 2009. After completing her course, she was attracted to the concept of social entrepreneurship and decided to work towards betterment of the society and environment. Being a woman, she understood issues related to sanitation and that is when she chose to do something about this. She initially associated with the Indian Railways to understand where and why there is a need for improvement in sanitation. She started monitoring and attending to the schedules of maintaining toilets in railway coaches on a frequent basis. This sanitation systems, is to be installed at places where conventional toilets facility cannot be made available. Banka BioLoo built, promote, manufacture and supply ELOO – The BioDigester toilets. This helped Namita in improving the state of CDTS (controlled discharge toilet system) and also won supply and service contracts.

Indian Railways, Shapoorji Pallonji, L&T, Wockhardt Foundation, International Paper, AP Education & Welfare Infrastructure Development Corporation, are some of the important clients of Banka BioLoo. The company has won many awards, including the prestigious Sankalp 2013 Healthcare, Water and Sanitation Award. Unfortunately, like many women entrepreneurs and especially social entrepreneurs, she is unwilling to discuss financial numbers but her works is extremely valuable to society.

Read the excerpt of her interview with Hitisha Jain of Moneylife:

Hitisha Jain (ML): What is the Banka BioLoo?

Namita Banka (NB): Banka BioLoo provides environmentally friendly and sustainable solutions for sanitation. Sanitation facilities in India are alarmingly poor with over 600 million people having no access to toilets. People are forced to defecate in the open. This practice poses health hazards, raises environmental concerns and leads to water contamination. We not only provide a toilet but also the “on-site” waste treatment facility. This ensures that the household is not dependent on external infrastructure for waste transportation and treatment.

Banka BioLoo specialises in human waste management. It uses Bio-digester technology, which decomposes human waste. The technology used for this is licensed by Defence Research & Development Organisation (DRDO). The Bio-toilet system developed by Banka BioLoo treats waste generated in toilets. The treatment occurs in the bio-tanks beneath the toilets.

The tank is fitted with bio-digesters, which decomposes 99% of waste in short time compared with conventional toilets. We also work towards converting tradition septic tanks into bio-tanks. It has proved to become a cost effective toilet and sanitation facility. It lessens environmental degeneration and it also creates better health conditions.

BioLoo for villagers Source: Banka BioLoo

Banka BioLoo uses the bio-digester technology and its various applications to provide eco-friendly sanitation systems and solutions across India, and notably to the Indian Railways to transform the night soil laden rail tracks to waste matter free tracks. The company’s offerings include bio-toilets (or bioloos) for families, public and community bio-toilets and bio-toilets for schools and institutions, bio-tanks for Indian Railways, bio-digesters (the bacterial culture) and bio-tanks, and upgrade of septic tanks to bio-tanks. We also service bio-toilets, and have entered into annual maintenance and operations contracts with different Railway zones. We have a bio-tank manufacturing plant and a bio-digester inoculation facility.

ML: Given your academic background and work, what led you to start Banka Bioloo?

NB: I was aware of the difficult situation, more so that we women face in term of sanitation in the society. When I came in contact with the Railways and they offered to associate with me on improving toilet technologies in trains, I saw a strong opportunity, in terms of business and otherwise, to raise the sanitation standards. Later, I began using the same for society, at large.

ML: What is the secret to your ability to run a successful business?

NB: One has to keep the spirits high, have a strong grit and determination to fight the odds – I too did the same. Hurdles, institutional or cultural, came my way but I marched on, and there was family support, which helped. I talked, discussed and expressed – that’s how issues would get highlighted and officers had to listen to us, and help resolve them.

ML: What makes you enjoy your work daily?

NB: I won’t say I have some magic wand and there is some mystery that exhorts me to work everyday. I do my duties towards society as a citizen. Concern and care for the cause of sanitation and the environment drive me and my work. I feel privileged to have been associated with such enterprising team, which in its small way wants to clean-up.

ML: How did you grow as a team? What helps in pushing your business forward?

NB: From a three member team we grew to over 80 at the end of 2013. We seek to keep the momentum going, building up the business. With various segments in place, we are working to provide cost-effective sanitation solutions. We have participated in events such as the Sankalp summit, Action for India and others that has helped understand the entrepreneurial aspects better.

ML: Why is it important to encourage entrepreneurship in India, especially among women?

NB: Socio-economic development of India is entrepreneurs-driven. Small enterprises play a key role in the growth: create jobs, provide goods and services at reasonable costs. Women provide the much needed diversity of thought and a spectrum. The problems faced by womenfolk could be better understood by a woman and she’ll be in a stronger position to seek and provide solutions. Consider the case of sanitation; we women are more vulnerable and susceptible in the absence of toilet facilities compared to men, and who better than I can understand. Taking the example of entrepreneur – we undertook the servicing of specialised toilets (CDTS) in certain train segments in 2012. The audit report of Railways, later, noted that the toilet’s functioning was over 95% after we took over the service contract.

ML: What was the main source of finance for your organisation while setting up the business?

NB: Ours is a private enterprise. Finances have been pooled internally by promoters and families. This has been complemented by bank credit and private debt financing. The Ministry of Small and Medium Enterprises (MSME) promotes women entrepreneurship by providing some benefits of loans. Exposure to education is one of the major opportunities for women

ML: What were the biggest challenges you faced as a woman entrepreneur?

NB: I, as a women entrepreneur, feel and have experienced that it is difficult for people to understand the seriousness of the whole business and we have to prove ourselves at every stage and bear with some of the toughest mindsets of people.

Technology can be an enabler but the grit to improve our ecosystem is something that keeps us on the toes. We see business as business, and if the same can provide benefits to the society and the environment, it gives us further sense of satisfaction.

My mother-in-law, a woman of substance in her own way, is my role model. She has been my motivator, supporter, visionary and above all pacifier.

ML: Last words for our women readers?

NB: Clear Vision, 100% dedication and commitment, No shortcuts, No expectation of extra benefit and complete patience to succeed.



Vasantha Balasubramanian

12 months ago

Excellent work. Similar work has to spread across the country especially in public & market places.

We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)