Indian Economy: News and Discussion

tharun

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What does govt is doing with the foreign reserves..sitting empty in vaults.?Only 110 B$ is used in buying us federal bonds..like singapore govt our govt should invest in foreign or indian companies in abroad to improve our IIP..
 

tharun

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MY View:
We need reforms in commerce ministry..from the basics..there are too many departments which are not reaping less benefits..what we need to do is..we need to create three groups
1)A Group(Domestic) that overlooks each and every industry in india..every industry should form just one association with no politics..and for every industry we need to allocate one Senior officer which looks after every problem faced by companies in country..
2)B group(Exports) this group works same as above but only thing in how to increase exports and give guidance for companies.
3)C group(Imports) this group should address the companies import goods to our country..this group should give less importance because they import
 

ezsasa

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#Digital India Initiative: My view
We need tell every business from corporate to small general store to re-register their business with govt and every one will new unique id and bank account...
When goods are transferred from business to business,the companies should either use web or mobile platform to inform govt about it in real-time..A unique id will be generated every time(barcode)... so that trucks no need to wait at state borders..they need to show that unique id paper and get confirmed..so fastest movement of goods and every goods can be tracked and no chances of tax evasion....
On the first one: there will be some sort of re-registration because some small businesses are planned to be exempted from GST.

On the second: trucks wait at state borders for two reasons
1) traffic restrictions for movement of goods vehicles at nights
2) octroi collection at border check posts.

First one can't be helped.

With GST the octroi collections are eliminated. Revenue distribution will be based on route filed by the manufacturer. Revenue is collected at the destination and distributed by a central system.

There may be slight variations depending on the GST council meetings.
 

Chinmoy

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@Indx TechStyle @sorcerer .......... I've burrowed this piece from one of the post by @jackprince in another thread. This is for one cry baby who was crying for India being behind Bangladesh and some African nation in poor index.

Interestingly, Engineering Export Promotion Council (EEPC) vice-chairman Ravi Sehgal said even though some of the labourers have bank accounts, they are unwilling to accept direct payment through the banking channel for fears that if the amount exceeds R50,000 (a year), they could lose their below poverty line status and consequently be stripped of various subsidy benefits.
Now see why we get a reading of persistent poor people in India despite being the fastest growing economy.
 

Indx TechStyle

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Income Tax Act amendment a ‘win-win’, to boost govt revenues: Experts
The government introduced The Taxation Laws (Second Amendment) Bill, 2016 proposing to tax all unaccounted demonetised cash that is disclosed at 50 per cent and levy a steep up to 85 per cent tax and penalty on undisclosed wealth after the window closes on December 30.
BY: PTI | NEW DELHI |Published On:November 28, 2016 8:39 PM
Terming proposed amendments to the Income Tax Act as a “win-win” proposition, experts on Monday said it will give one more opportunity to blackmoney holders to come clean by paying tax and penalty of 50 per cent. “The amendments are progressive in nature and puts to rest to the uncertainty on the penalties on the amounts deposited in bank accounts post announcement of demonetisation,” KPMG (India) Partner and Head of tax Girish Vanvari said.
The government introduced The Taxation Laws (Second Amendment) Bill, 2016, in the Lok Sabha, proposing to tax all unaccounted demonetised cash that is disclosed at 50 per cent and levy a steep up to 85 per cent tax and penalty on undisclosed wealth after the window closes on December 30. Under the Pradhan Mantri Garib Kalyan Yojana, 2016 (PMGKY), blackmoney declarants have to mandatorily park 25 per cent of that wealth in zero-interest, four-year-no-withdrawal scheme.
“This amendment appears to be very strategic and could be a win-win, because if everything goes well, tax collections will go up substantially, further money will be raised in specified bonds for country’s investments needs and the assessee would also retain 25 per cent of his undisclosed income to himself for future use,” Vanvari said.
EY India National Tax Leader Sudhir Kapadia said considerable amounts of unaccounted cash and bank deposits will come under this alternative PMGKY scheme “as the base case outcome of 75 per cent tax would make the risk of later detection much higher for such taxpayers”.
Grant Thornton Advisory Director Riaz Thingna felt that “the proposed amendment will lend some level of certainty on this contentious issue and will provide an acceptable route to enable defaulters to introduce their unaccounted cash into the productive economy”.
 

ezsasa

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S Gurumurthy is a ex-CA and now he writes economy based news articles.

In this lecture at sastra university he is saying demonetisation is a controlled demolition, else we could have had 2008 level economic meltdown within 5-10 years.

 

Indx TechStyle

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Note ban: Fitch lowers India's FY17 GDP growth to 6.9% citing temporary disruptions
PTI
Nov 29, 2016 18:08 IST
New Delhi: Fitch Ratings on Tuesday lowered India's GDP growth forecast for this fiscal to 6.9 percent from 7.4 percent, saying there will be "temporary disruptions" to economic activity post the government's demonetisation drive.
The ratings agency said economic activity will be hit in the October-December quarter because of the cash crunch created by withdrawal and replacement of Rs 500 and Rs 1,000 notes that accounted for 86 percent of the value of currency in circulation.
"Indian growth has also been revised down to reflect temporary disruptions to activity related to the RBI's surprise demonetisation of large-denomination bank notes," Fitch said, as it revised real GDP growth forecast down to 6.9 percent for 2016-17, from 7.4 percent projected earlier.
The US-based ratings agency also revised GDP growth forecast for 2017-18 and 2018-19 lower to 7.7 percent from 8 percent earlier.
Gradual implementation of the structural reform agenda is expected to contribute to higher growth, as will higher real disposable income, supported by an almost 24 percent hike in civil servants' wages. But the anticipated recovery in investment looks a bit less certain in light of ongoing weakness in the data.
Fitch Ratings' 'Global Economic Outlook - November' Report on the currency ban said consumers do not have the cash needed to complete purchases, and there have been reports of supply chains being disrupted and farmers unable to buy seeds and fertiliser for the sowing season.
"Time spent queueing in banks is also likely to have affected general productivity. The impact on GDP growth will increase the longer the disruption continues," Fitch said, adding the medium-term effect of the currency withdrawal on GDP growth is uncertain, but is unlikely to be large.
"Most importantly, demonetisation is a one-off event. People who operate in the informal sector will still be able to use the new high-denomination bills and other options (such as gold) to store their wealth," it added.
Fitch said there are no new incentives for people to avoid cash transactions and the informal sector could soon go back to business as usual.
After the demonetisation announcement on 8 November, the government and banks have been taking several steps to push digital transactions. Fitch said it expects RBI's 1.50 percent policy rate cuts since the beginning of 2015 to feed through to higher GDP growth, even though monetary transmission has been impaired by relatively weak banking sector health.
"A surge in low-cost funding due to the demonetisation may remove a constraint on banks that prevented lending rates from keeping pace with the RBI's policy rate cuts in recent years, although this will depend on deposits remaining in banks beyond the next few months," it said.
Well, I expected earlier because demonetizations usually cause temporary deflation but it's good for long term.:)
 

Chinmoy

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Note ban: Fitch lowers India's FY17 GDP growth to 6.9% citing temporary disruptions
PTI
Nov 29, 2016 18:08 IST

Well, I expected earlier because demonetizations usually cause temporary deflation but it's good for long term.:)
I think this hit would be for these two quarters. Anyhow 6.9% is way more then what I expected. I was expecting something in terms of 5.5% to 6% based on what Amartya Sen and others said. If its going to be around 6% for current quarter, i do believe that we could touch the 7% on YoY basis by end of this fiscal.
 

ezsasa

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I think this hit would be for these two quarters. Anyhow 6.9% is way more then what I expected. I was expecting something in terms of 5.5% to 6% based on what Amartya Sen and others said. If its going to be around 6% for current quarter, i do believe that we could touch the 7% on YoY basis by end of this fiscal.
Amartya Sen is not a capitalistic economist but rather a socialistic economist by his own admission. Former uses the knowledge to create money and the latter uses the knowledge to spend Govt money.

Don't expect any good things to be said from his mouth about modi Govt, especially when he and his friends have been kicked out of Nalanda university.
 

Indx TechStyle

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India and the Synthetic Upround
Recent markdowns in the valuations of Indian startups might be just the boost nascent companies need as they scrap for cash amid concern over their futures.
E-commerce providers Flipkart Online Services Pvt. and Snapdeal and taxi service Ola have all been struck by continued book-value repricing as investors including Fidelity, Valic and SoftBank trimmed their expectations, VCCircle reported this week. Fidelity's $8.71 billion price tag on Flipkart is its lowest in more than a year, and substantially below the $15.2 billion the company reportedly was worth after a July 2015 equity sale.
Revaluation
Flipkart's valuation has been trimmed as investment funds readjust their expectations.
IMG_20161201_160031_811.JPG
Source: VCCircle
Note: Data are typically filed to the U.S. SEC two months from valuation date.

Three months ago, I wrote about the fundraising pain faced by Indian startups as the spigot of venture-capital cash started to slow to a trickle. Beyond boosting sales and trimming costs (oxymoronic in the startup world, I know), there's another way to lure VCs into fresh rounds of funding, and that's by giving them more equity bang for their investment buck.
We all know that a downround is a fate worse than out-of-the-money options. Earlier investors see the worth of their stake decline when a subsequent injection of equity capital is done at a lower valuation. Not only is that bad for the VC fund, it's a huge loss of face. An alternative way to raise cash without damaging this oh-so-important share appraisal is to sell debt instead, and we've seen more of that happen in Asia over the past 18 months, especially in China.
But if you can't sell debt, new investors won't buy at a higher valuation than earlier funding, and existing shareholders won't agree to a new tranche being issued at a lower price, then you're stuck -- unless someone else has revalued the startup for you.
With its book value cut even further, Flipkart now has the chance to raise funds at a rate higher than what Valic and Fidelity ascribe to it, even though it's below an earlier round, while the new investors can feel comfortable knowing they got a good deal on the stock. I call it a synthetic upround. VCs can see through this trick, but as long as there's upward momentum in the valuation, everyone can save face and tell themselves the direction is right.
More importantly, the startups themselves can stop wasting time begging for quarters and get back to building their businesses. And in India, there's still a lot of building to be done.
 

Chinmoy

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Amartya Sen is not a capitalistic economist but rather a socialistic economist by his own admission. Former uses the knowledge to create money and the latter uses the knowledge to spend Govt money.

Don't expect any good things to be said from his mouth about modi Govt, especially when he and his friends have been kicked out of Nalanda university.
Moreover I think he too is much more indulged in the bhadralok syndrome (sorry if I did hurt anyone). Pickup the Telegraph Kolkata issue any day and look how much good Didi is doing and how Modinomics is pushing us to cliff. More shocking is something which came out from the side of CM of Tripura Manik Sarkar. When Arun Jaitley invited him to be on panel of chief ministers to discuss how to implement and push India towards a cash less society, he simply denied to be a part of it. His logic is, "I don't understand and have knowledge of this thing. moreover penetration of banking system is not adequate in India, so this system is not a valid option for India". After reading this I was like, common Mr Manik Sarkar, you don't know how things work doesn't mean you should not learn how it works. It shows a total disinterest on his part and he seems to be more then interested in killing the very idea. Second, it was a good opportunity for him to keep forward his views and help in building nation. He should have accepted the invitation and keep forward his views on how to make things more streamline. But it seems he and politicians like him are more interested in their vested interest then nation building.
 

ezsasa

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Moreover I think he too is much more indulged in the bhadralok syndrome (sorry if I did hurt anyone). Pickup the Telegraph Kolkata issue any day and look how much good Didi is doing and how Modinomics is pushing us to cliff. More shocking is something which came out from the side of CM of Tripura Manik Sarkar. When Arun Jaitley invited him to be on panel of chief ministers to discuss how to implement and push India towards a cash less society, he simply denied to be a part of it. His logic is, "I don't understand and have knowledge of this thing. moreover penetration of banking system is not adequate in India, so this system is not a valid option for India". After reading this I was like, common Mr Manik Sarkar, you don't know how things work doesn't mean you should not learn how it works. It shows a total disinterest on his part and he seems to be more then interested in killing the very idea. Second, it was a good opportunity for him to keep forward his views and help in building nation. He should have accepted the invitation and keep forward his views on how to make things more streamline. But it seems he and politicians like him are more interested in their vested interest then nation building.
Why go to politicians, I am seeing Meera Sanyal ( ex RBS bank chairperson) on NDTV vehemently opposing demonetisation. Technically speaking she is responsible for closure of RBS bank in India, and yet she is giving gyan baazi on TV. And RBS is a bank which had 40 ATMs across the country, and this lady is giving Gyan to SBI chairperson which has 40000 ATMs.

My point is people opposing have mainly political motivations.
 

F-14B

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Gentlemen this is what I call opposing for the heck of opposition no substance just gas
 

tharun

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Chinmoy

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That will be useless and costs more money to transport....we can do other way by road from afganistan to iran bandar abbas port of iran and to india buy sea route
Air cargo would be far cheaper and cost effective for Indo-Afghan trade then any sea route from Iran. If it had been a tripartite deal, then it would have been cost effective, but since its only between India and Afghanistan, air cargo would be lot more cost effective then any sea route through Iran.
 

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