Indian Economy: News and Discussion

Screambowl

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Also baloochistan is 48% of porki land where population density is too low because of mountain terrain and accute scarcity of water. That means most of 200 million are surviving on 50% of porki land.
yes just like china's western provinces are empty
..............................................................
 

Kshatriya87

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Nifty makes history, hits 10,000: The bull run decoded
Our markets have been displaying irrational exuberance for a while since we are not in a position to absorb the huge liquidity flows.
Ambareesh Baliga July 25, 2017 Last Updated at 09:20 IST

It’s been a dream run for the world markets and specifically the Indian markets since the last seven months, especially post the Union Budget on 1st February 2017. India seems to have all the ingredients for a multi-year bull run since the elections of 2014 – whether it’s the strong leadership of Prime Minister Narendra Modi or the various policy measures taken up by the government from time to time, the excellent and unprecedented PR exercise internationally that possibly has projected India as the most favoured destination. The pushing through of GST Bill, which was in the works for more than a decade, could be the single biggest achievement of the government as it needed a lot of prodding and ‘buy in’ by the various stakeholders, most of them occupying the opposition benches. The ability of the Mr. Modi to take risks and travel in unchartered territory also seems to have worked well with the public at large. The demonetisation hardships were converted into an advantage by the ruling party shows that they have a PR solution for every adversity.

The global liquidity normally finds it way into the outperforming emerging markets and India seemed to be a like a ‘text book solution’ for absorbing a part of this. Interestingly the new found domestic liquidity which lately realized that there are hardly any other asset classes providing the returns the equity markets are, have started pouring in larger quantum into the hitherto forbidden asset class. The mutual funds have made it easier for the lower end of the pyramid to partake in the India growth story instead of parking their funds in chit funds, pyramid schemes and alike.

Markets generally discount the foreseeable future but at times react violently to unexpected current situation, just like when we witnessed those few weeks of turbulence during demonetisation. However, the big question is whether the smooth path ahead is a mirage or would there be huge bumps on the way. Having been in the markets for more than three decades, experienced a number of bull runs and longer periods of bear hug, I have trained myself to stand out of the crowd and ask questions which most of those ‘flowing with the tide’ might find uncomfortable. However, post the bull run, everyone starts drawing comparisons with previous bull runs which have blown out.

Our markets have been displaying irrational exuberance for a while since we are not in a position to absorb the huge liquidity flows. We are in a situation of a perfect virtuous cycle of story telling – liquidity flows – immediate gratification. The question is whether these liquidity flows can change the fundamentals of the economy and the corporates or whether it would lead to a bubble?

The Government has a strong mandate and seems to have utilized the franchise well through the various measures but three years has been long enough for execution of the various measures they have taken. Statistical data exhibiting achievements and a benign environment depends on how it is presented and explained – and there is always a possibility of Simpson’s Paradox. We are projecting high growth rates without the same being reflected in the employment generation, manufacturing growth nor Capex addition which has fallen to a 25 year low. Additionally, credit growth for Banks has fallen to a six decade low, not to mention the enormous NPA burden.

We were staring at farmer unrest across various states despite two good monsoons, which clearly displays gaping holes in the distribution structure. The unrest has been temporarily resolved resulting in a major burden on State Finances. The internal rift in Kashmir and West Bengal, in addition to geo-political issues with Pakistan and lately with China has been largely ignored by the markets, hoping for an amicable resolution.

GST introduction seems smooth as we are in the initial honeymoon phase where everybody is collecting GST. The issue will arise when one needs to upload and pay the GST collected to the government. The GST technology platform needs to work flawlessly, while the uploaded data needs to be reconciled for smooth set off by the those in the GST chain. One also needs to see whether there would be strain on liquidity in the interim. The reverse charge of GST is marginalizing the micro and small scale sector where margins were thin but collectively they are the biggest employers. With IT sector too under strain, I wonder whether India’s demographic advantage of young productive population could turn out to be a liability due to lack of opportunities.

I may sound pessimistic but the truth is that the risk reward at current levels is extremely skewed and even if a few of my fears play out, we could witness a deep correction. Every bull run seems to be a “different story this time” and most of the participants at the peak are normally those who are “wet behind the ears”. In the short term, we may be looking at possible blow out rally as Nifty crosses 10,000 but could end up gobbling a lot of hard earned money of gullible investors. It is important to get rich but more important to stay rich.
 

Kshatriya87

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Wage Code Bill cleared by Narendra Modi led Cabinet; higher, uniform wages across country in offing
At a time when Indian jobs growth is already below what is required, the Cabinet on Wednesday approved a uniform labour code on minimum wages that makes it obligatory for all industries to pay a minimum wage to all category of employees across the country, and not just those earning less than Rs 18,000 a month as it is now.

At a time when Indian jobs growth is already below what is required, the Cabinet on Wednesday approved a uniform labour code on minimum wages that makes it obligatory for all industries to pay a minimum wage to all category of employees across the country, and not just those earning less than Rs 18,000 a month as it is now. If passed by Parliament, the new law will not only affect competitiveness of trade and industry, it will affect the ability of states to attract investments on the basis of lower wage rates — the goods and services tax has already reduced their ability to offer VAT sops. Labour is on the concurrent list, so it is not clear if states will agree to the new proposals. While the move will be popular among trade unions and those currently employed, if implemented faithfully across the country, it will add to the series of disadvantages Indian firms face and ensure more of them remain in the informal sector where policing wages is that much more difficult. As Manish Sabharwal, chairman, Teamlease, India’s largest temping agency, puts it, “we have so many problems, this is probably the last thing we need”.

The latest Economic Survey points to the fact that 78% of Indian firms employ under 50 workers and just 10% employ more than 500 — the comparable figures for China are 15% and 28%. With much smaller firms than China, India’s quality suffers as a result. To this, add the cost of poor infrastructure — road transport, for instance, costs $7 per km versus $2.5 in China, and it takes 21 days to deliver goods from JNPT to the US east coast compared with 14 days for China.

“States are expected to take into account local conditions including local cost of living and availability of skills and also the need to attract investment. All of these go together. So, when the Centre imposes a common minimum wage, you are taking away a very valuable policymaking tool of states,” said Pronab Sen, former chief statistician of India. Sen said the move would lead to wide income disparity in India with the possibility of low-income states suffering de-industrialisation, leading to wide regional income disparity.

Brazil, which implemented a similar minimum wage law, suffered regional income disparities as a result. Which is why the Brazil Senate recently approved some major changes to that country’s labour code. Amidst some serious opposition, the Brazilian government tweaked the law to allow agreements negotiated between employers and workers, on a range of issues, to override the current labour law. “I don’t know how they (Centre) are going to impose this, where is the machinery,” said Sudipto Mundle, member, 14th Finance Commission. Industry, especially the unorganised sector that could be affected more, could find ways around to bypass the law if economics tells them that they can’t afford, Mundle added.

If Parliament approves the code, the minimum wage will be applicable to all classes of workers, which at present, is applicable to scheduled industries or establishments in the law. The Labour Code on Wages, 2015, will empower the central government to notify a “national minimum wage” (below which no state can fix their minimum wages) and this will be revised every two years (five years if the dearness allowance becomes part of the minimum wages). Given India’s labour laws are already very restrictive, imposing one more condition will only make it more difficult for companies — especially smaller ones — to function efficiently.

“Bringing four legislations into one is a major step towards labour reforms. However, there are two sides to it. Industries may opt for more mechanisation which will be good for the economy as productivity will go up, but it will also mean fall in employment. This will vary across industries,” said economist Rajiv Kumar. The code will also seek to define industrial strike afresh by including concerted casual leave by 50% of more workers while the provision for prior notice of strike would be extended to “all activities similar to existing public utility services”.
 

john70

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Good to see Chinese media focussing on growing Indian economy.




Why can’t Chinese stocks match the outstanding 2017 performance of Indian equities?


http://www.globaltimes.cn/content/1058207.shtml

After India's stock market hit record highs on Tuesday, Chinese social media was awash with intensive discussions, as many wondered why China's A-share market has performed not so good as its neighbor's equity market. Generally speaking, stock markets are a mirror of the economy, so the divergent stock market performances in China and India actually reflect the different economic focuses of the two countries in the years to come.

On Tuesday, India's Nifty 50 broke the psychologically important 10,000-point mark for the first time, while the Bombay Stock Exchange's Sensex index hit a new high of 32,374.30 points. The Nifty 50, which is composed of the country's 50 largest companies traded on the National Stock Exchange, has gained more than 20 percent so far this year, becoming one of the world's best-performing benchmarks.

Those gains have left the Chinese mainland stock markets in the dust, with the benchmark Shanghai Composite Index eking out a mere 4.64 percent year-to-date rise as of Wednesday.

To some extent, the divergent performances simply show the different levels of economic development in the two countries. In India, the government of Prime Minister Narendra Modi has been especially aggressive this year in pursuing policy reforms. Encouraged by the implementation of demonetization and the introduction of a goods and services tax, plus the easing of foreign direct investment regulations, overseas institutional investors have begun warming to Indian stocks. Expectations of an interest rate cut and robust economic growth have also enhanced investor confidence in Indian equities.

As for mainland stocks, things have changed dramatically since 2014, when the Shanghai Composite Index ended the year with a gain of 52.87 percent, making it one of the best-performing indices in the world. Yet, since A-share market turmoil spooked investors in 2015, the government has stressed tightening financial regulation for the purposes of preventing risk, deleveraging and eliminating bubbles.

In addition, the National Financial Work Conference, which ended on July 15, prioritized the task of curtailing financial risk, setting the tone for the economic focus in the coming five years.

To restore confidence in China's stock markets and economy, it is crucial to prevent and reduce financial systemic risk. Compared with temporary outperformance, steady growth is what the A-share market really needs now.

The author is a reporter with the Global Times. [email protected]
 

Prashant12

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India's foreign exchange reserves at record high of USD 391.33 billion

In previous week, reserves had risen by USD 2.68 billion to USD 389.06 billion.

Mumbai: India's foreign exchange reserves touched a new record high of USD 391.33 billion after it rose by USD 2.27 billion in the week to July 21, aided by increase in foreign currency assets (FCAs), RBI data showed.

In the previous week, the reserves had risen by USD 2.68 billion to USD 389.06 billion. FCAs, a key component of overall reserves, surged by USD 2.24 billion to USD 367.15 billion, according to RBI data.

Expressed in US dollar terms, FCAs include effect of appreciation or depreciation of non-US currencies such as the euro, the pound and the yen held in the reserves. Gold reserves remained unchanged at USD 20.35 billion.

The special drawing rights with the International Monetary Fund (IMF) went up by USD 12.1 million to USD 1.491 billion. The country's reserve position with the IMF too increased by USD 19 million to USD 2.341 billion.

http://www.deccanchronicle.com/busi...rves-at-record-high-of-usd-39133-billion.html
 

lcafanboy

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Give Nifty, take Doklam! Stellar show of Indian stocks leaves Chinese green in envy

By
Amit Mudgill


, ETMarkets.com|

Updated: Jul 28, 2017, 04.43 PM IST


The IMF recently said that India would stay ahead of China in terms of growth in 2017 and 2018.


NEW DELHI: The Nifty50 is the source of a bigger grudge for the Chinese than Doklam, or so it seems!

More than a month into the eyeball-to-eyeball standoff between the two armies, Chinese media is suddenly talking a lot about the impressive 20 per cent year-to-date surge in India’s Nifty index, which has just zipped past the 10,000 mark.

Chinese people on social media are talking more grudgingly about the Nifty’s stellar show this year than the tense war of words between the two nuclear powers over Doklam, a narrow plateau lying in the tri-junction region of Bhutan, India and China. It is a disputed territory claimed by both Bhutan and China and India and China are engaged in a tense standoff in this dispute.

The People's Daily newspaper on July 26 cited intensive discussions on Chinese social media as to why China’s A-share market has not been able to perform as well as its neighbour’s equity market.

A-share stocks of mainland China-based companies are traded on the Shanghai Stock Exchange and the Shenzhen Stock Exchange. These shares are quoted in the renminbi and can only be traded by either Chinese or investors under the Qualified Foreign Institutional Investor (QFII) and the Renminbi Qualified Foreign Institutional Investor (RQFII) rules.

The Shanghai Stock Exchange’s A-share index is up just 5 per cent so far this year, which pales in comparison with the 22 per cent surge in India’s 50-stock benchmark. This happened despite the MSCI decision to add mainland China-A largecap stocks in the MSCI Emerging Market index.



An article in China’s Global Times noted that stock market is a mirror of an economy, and thus, the divergent stock market performances in China and India actually reflect the different focuses of the two economies in the years to come. It said gains by the Indian benchmarks left the Chinese mainland stock markets in the dust.

In May this year, Moody’s Investors Service downgraded China’s credit ratings for the first time in nearly 30 years. It cut China’s long-term local and foreign currency issuer ratings by one-notch to A1 from Aa3.




(Source: IMF)

Acknowledging dramatic changes since 2014, the daily noted that turmoil in China’s A-share market spooked investors in 2015, even as the government stressed on tightening financial regulations to prevent risks and deleveraging and eliminate bubbles.

In 2015, in order to halt a plunge in Chinese stocks, Beijing’s securities markets regulator had ordered shareholders with more than 5 per cent holdings from selling shares for six months.

The Chinese authorities have also taken steps to bring stability in the domestic stock market. In January this year, the China Insurance Regulatory Commission (CIRC) restricted insurers from investing no more than 5 per cent of total assets at the end of the previous quarter in a single stock.

Taking a positive view of Prime Minister Narendra Modi’s ‘aggressive’ approach on policy reforms, the daily noted that encouraged by the implementation of demonetisation and the goods and services tax, besides easing of foreign direct investment regulations, foreign portfolio investors have begun to warm up to Indian stocks.

“Expectations of an interest rate cut (by the Reserve Bank of India) and robust economic growth have also enhanced investor confidence in Indian equities,” it noted.

The IMF recently said that India would stay ahead of China in terms of growth in 2017 and 2018 with GDP growth of 7.2 per cent in 2017-18 and 7.7 per cent in 2018-19 compared with China’s 6.7 per cent in 2017 and 6.4 per cent in 2018.

The Global Times article talked about need for restoration of confidence in China’s stock markets and prevention and reduction of systemic risk in the system.

http://economictimes.indiatimes.com...hinese-green-in-envy/articleshow/59806531.cms
 

sorcerer

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India Inc, be afraid! Baba Ramdev could be the next Tata or Ambani of India

Yoga guru Baba Ramdev, who has drilled fear into multinational companies by successfully expanding his ayurvedic pharmacy business to FMCG sector, is venturing into a new territory: private security.

Though the Rs 40,000 crore-worth private-security industry in India is hardly a preserve of big companies, corporate leaders still need to feel fear. Ramdev’s new foray indicates he is game to rush into an unrelated business and, as his track record suggests, can give the biggies a run for their money. In just 10 years, his Patanjali Ayurved has grown from a small ayurvedic pharmacy to a giant-slayer in the FMCG sector. If Ramdev’s new venture meets with success, who knows he can even get into, say, telecom, tomorrow. Imagine a Ramdev smartphone that comes loaded with yoga videos, health tips and ayurvedic remedies.

Possibilities are endless for Patanjali because it is already the biggest home-grown brand in India, unusual for one that sold only ayurvedic drugs just five years ago. In a recent study by global research firm Ipsos, Patanjali ranked fourth among the top 10 influential brands in India, below Google, Microsoft and Facebook. It beat biggest bank SBI, telecom leader Airtel, disruptor Reliance Jio and storied internet retailer Flipkart.

Ramdev’s entrepreneurial genius combined with his huge mass following is a big challenge to corporate India. He has carved out for himself an entirely new segment of loyal customers who would buy whatever he offers due to his carefully crafted image—a televangelist promoting yoga and ayurveda, a religious guru, a health campaigner fighting big companies, especially multinationals, and a crusader against corruption.

Association of ‘Brand Ramdev’ with tradition, health, spirituality, justice and patriotism ensures a vast base of committed customers. His backward-caste background gives him a wide acceptance among the lower classes, especially in the Hindi heartland. That’s why even though he has backed right-wing Bharatiya Janata Party and its ideological parent, the RSS, various parties opposed to right-wing politics have courted him at different times.

In India, which has been built on socialist ideology, the masses have a general distrust towards big business, especially multinational companies. After Mahatma Gandhi, whose alternative to capitalism was a utopian village-based spinning-wheel economy, Ramdev presents another ‘swadeshi’ alternative which is credible and works: a not-for-profit enterprise that swears by nationalism, tradition, health and spirituality.


Ramdev’s potent mixture of right-wing politics and business could be more than what his rival corporate India can handle if he keeps expanding into new territories.

Mixing of politics and business is a global trend today. The boom in craft products in the west is a good example of how consumers prefer to align their consumption with their politics. Liberal politics in the west has converted hand-made, ethical and craft products—from beer and cheese to home accessories—into big business.

Ramdev chose private security as his next business foray not just because it is a booming sector today; it also sits well with his brand that thrives on nationalism. He is not shy of announcing the nationalist sentiment behind his new venture. According to a statement released by the yoga guru, the company’s aim is to “instill patriotic fervour among youngsters and create an ambience conducive for physical and mental development of the trainees”. With terror and India’s inimical neighbours Pakistan and China becoming part of the nation’s daily discourse today, Ramdev’s venture is timely.

Also, a private security business will give his brand a unique force multiplier. Thousands of security guards spread all over India will certainly be seen as his brand ambassadors.

It is not unimaginable that Ramdev rides the huge nationalist wave sweeping India to eventually become the next Tata or Ambani, and create a new business template for other religious gurus—the cow capitalism where consumers are offered products steeped in the goodness of tradition, spirituality and patriotism.

http://economictimes.indiatimes.com...a-or-ambani-of-india/articleshow/59606656.cms
 

john70

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8 'technologies' that will drive your smartcity

1/9
Late last month, the government announced another list of 30 cites for development as smart cities taking the total cities to 90 under its Smart City Mission.

These cities have proposed to invest Rs 57,393 crore under respective smart city plans. With this, the total number of such cities have gone up to 90 with a total investment of Rs 1,91,155 crore.

As the buzz and excitement around the smart city project builds up further, here's a look at some key 'technologies' that will drive these cities.


Water ATMs
2/9
Water ATMs, mini sewage, treatment plants and phytorid STPs.

Status: 40 water ATMs and 3 mini STPs installed, work awarded for one phytorid STP


LED lights
3/9
LED lights to replace streetlights, pelican crossing, 3D zebra crossing, street furniture, Wi-Fi network, CCTV cameras and environment sensors. In Delhi, pilot on Mother Teresa Crescent road.


Rooftop solar panels
4/9
Rooftop solar panels of various capacities for green power. Panel installations are under way on NDMC buildings in Delhi. For private ones, vendors and rates are being finalised in the city.


Book parking through your smartphone app
5/9
Mobile app to pre-book parking slots for better regulation of parking spaces. In Delhi, the work awarded has been awarded for the same.

ET Daily
Your must-read business news wrap of the day



Digital libraries
6/9
Digital libraries in schools across the city. Some 13 schools in Delhi have been selected for this. 3D printing labs have been set up in 10 schools.


Fully mechanised waste management
7/9
Fully mechanised collection, transportation and disposal of waste. Geo-tagged stainless-steel litter bins and development of zero-waste colonies.


Interactive digital panels
8/9
In Delhi, government is setting up 75 panels with Wi-Fi and touchscreen facility.


Smart toilets
9/9
These smart toilets will have water ATM, vending machine and sanitary napkin vending machine. There's plan tro set up 149 such toilets in Delhi. Of these, 29 have already been constructed and rest are expected to be completed by September.



http://m.economictimes.com/news/pol...nised-waste-management/slideshow/59849773.cms
 

john70

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8 'technologies' that will drive your smartcity

1/9
Late last month, the government announced another list of 30 cites for development as smart cities taking the total cities to 90 under its Smart City Mission.

These cities have proposed to invest Rs 57,393 crore under respective smart city plans. With this, the total number of such cities have gone up to 90 with a total investment of Rs 1,91,155 crore.

As the buzz and excitement around the smart city project builds up further, here's a look at some key 'technologies' that will drive these cities.


Water ATMs
2/9
Water ATMs, mini sewage, treatment plants and phytorid STPs.

Status: 40 water ATMs and 3 mini STPs installed, work awarded for one phytorid STP


LED lights
3/9
LED lights to replace streetlights, pelican crossing, 3D zebra crossing, street furniture, Wi-Fi network, CCTV cameras and environment sensors. In Delhi, pilot on Mother Teresa Crescent road.


Rooftop solar panels
4/9
Rooftop solar panels of various capacities for green power. Panel installations are under way on NDMC buildings in Delhi. For private ones, vendors and rates are being finalised in the city.


Book parking through your smartphone app
5/9
Mobile app to pre-book parking slots for better regulation of parking spaces. In Delhi, the work awarded has been awarded for the same.

ET Daily
Your must-read business news wrap of the day



Digital libraries
6/9
Digital libraries in schools across the city. Some 13 schools in Delhi have been selected for this. 3D printing labs have been set up in 10 schools.


Fully mechanised waste management
7/9
Fully mechanised collection, transportation and disposal of waste. Geo-tagged stainless-steel litter bins and development of zero-waste colonies.


Interactive digital panels
8/9
In Delhi, government is setting up 75 panels with Wi-Fi and touchscreen facility.


Smart toilets
9/9
These smart toilets will have water ATM, vending machine and sanitary napkin vending machine. There's plan tro set up 149 such toilets in Delhi. Of these, 29 have already been constructed and rest are expected to be completed by September.



http://m.economictimes.com/news/pol...nised-waste-management/slideshow/59849773.cms


The total investment in smart city projects is 1,90,000 crores rupees ie almost 29 billion dollars! Almost half of cpec amount and it changes 90 Indian cities .... wow ! At half the cost CPEC.
 
Last edited:

ezsasa

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8 'technologies' that will drive your smartcity

1/9
Late last month, the government announced another list of 30 cites for development as smart cities taking the total cities to 90 under its Smart City Mission.

These cities have proposed to invest Rs 57,393 crore under respective smart city plans. With this, the total number of such cities have gone up to 90 with a total investment of Rs 1,91,155 crore.

As the buzz and excitement around the smart city project builds up further, here's a look at some key 'technologies' that will drive these cities.


Water ATMs
2/9
Water ATMs, mini sewage, treatment plants and phytorid STPs.

Status: 40 water ATMs and 3 mini STPs installed, work awarded for one phytorid STP


LED lights
3/9
LED lights to replace streetlights, pelican crossing, 3D zebra crossing, street furniture, Wi-Fi network, CCTV cameras and environment sensors. In Delhi, pilot on Mother Teresa Crescent road.


Rooftop solar panels
4/9
Rooftop solar panels of various capacities for green power. Panel installations are under way on NDMC buildings in Delhi. For private ones, vendors and rates are being finalised in the city.


Book parking through your smartphone app
5/9
Mobile app to pre-book parking slots for better regulation of parking spaces. In Delhi, the work awarded has been awarded for the same.

ET Daily
Your must-read business news wrap of the day



Digital libraries
6/9
Digital libraries in schools across the city. Some 13 schools in Delhi have been selected for this. 3D printing labs have been set up in 10 schools.


Fully mechanised waste management
7/9
Fully mechanised collection, transportation and disposal of waste. Geo-tagged stainless-steel litter bins and development of zero-waste colonies.


Interactive digital panels
8/9
In Delhi, government is setting up 75 panels with Wi-Fi and touchscreen facility.


Smart toilets
9/9
These smart toilets will have water ATM, vending machine and sanitary napkin vending machine. There's plan tro set up 149 such toilets in Delhi. Of these, 29 have already been constructed and rest are expected to be completed by September.



http://m.economictimes.com/news/pol...nised-waste-management/slideshow/59849773.cms
smart cities project is a flop so far...
AMRUT (URBAN transformation) project is doing better comparatively, but at a slow pace because of the backlog.
 

john70

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smart cities project is a flop so far...
AMRUT (URBAN transformation) project is doing better comparatively, but at a slow pace because of the backlog.

Agree with u !!

Yes.... everything in India is like that.


Some ground level reports :
There is no denying that little work has happened on the ground. In the case of the first 20 cities, the progress is uneven and concentrated to seven to eight cities, the rest are just dragging their feet. The smart cities of Surat, Pune, Ahmedabad, Bhubaneswar, Jabalpur, Udaipur have been the front runners. No foreign investment or private sector investment have happened in the SPVs till now.

Carrot & Stick as well as naming & shaming approaches proposed by the Ministry of Urban Development, Government of India, has not been implemented till now.

The cities selected have started project preparations and implementation. Smart city mission has given 2017- 2022 time frame for the implementation of the area development plan submitted during the smart city challenge. As part of the plans submitted by the selected cities only a small part of the city will be developed by the Special purpose vehicle(city specific company) and it will become a model for replication by other parts of the city.

The idea behind smart city mission is to develop a small area in the city to such a high level that - other parts of the city, media and opposition parties become envy of that and will put pressure on the city council, local government officials, public servants and mayor to upgrade living standard of their part of the city to standard set by the areas upgraded through smart city mission. This will also have rub off effect on the other nearby towns and cities. The city will be selected only on the basis of the city's commitment, city's implementation track record and the commitment extended by the state government regarding funding the transformation, assessed through national level smart cities challenge.

Each city has to start a public sector company with the shareholding of state government, central government, city council and the private sector. This company is responsible of for raising the money from the debt and equity market along with utilising the grant and aid provided by the state and central governments.

If a city selected for the smart city mision does not meet the timeline and speed set by the urban development ministry of the modi government, it will lose the future financial support and a new city will be replaced in its place to be developed as smart city.

16 smart cities have made preparations list their Municipal Bonds in stock markets as civic bodies across the country clamor to raise funds in a hot race to stay ahead of peers in India’s smart cities sweepstakes. Pune’s Rs 200-crore municipal bonds issue was listed in BSE on June 22. Another 15 smart cities have already appointed transactional advisers and will hit the market soon on lines of Pune. Some of the cities include Jaipur, Jabalpur, Ahmedabad, Visakhapatnam, Indore, NDMC, Kakinada, Udaipur, Bhopal, Warangal, Kota, Bhiwadi, Kishangarh, Greater Hyderabad Municipal Corporation (GHMC) and Panaji.

All the selected cities have created the SPV as a public sector company to implement the smart city mission in their city. City council in those city's have delegated many of their rights to this SPV.

Some of the developments reported in the media are

  • The projects that have been launched by Ahmedabad are "sewage treatment plant, housing project and smart learning in municipal schools".
  • Bhubaneswar launched "railway multi-modal hub, traffic signalisation project and urban knowledge centre".
  • New Delhi Municipal Council launched "mini-sewerage treatment plants, 444 smart class rooms, WiFi, smart LED streetlights, city surveillance, command and control centre".
  • Launch of Smart city projects in Pune.
 

Why so serious?

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Why PM Narendra Modi wants India to dump a 150-year-old financial habit
By ECONOMICTIMES.COM | Aug 01, 2017, 01.03 PM IST
  • Narendra Modi is likely to talk about in his fourth Independence Day speech this month is a proposal to change a 150-year-old practice that goes behind fixing India's Budget and much of your financial planning.

    He may push for a January-to-December fiscal year instead of the current financial year — from April to March — that was adopted in 1867, principally to align the Indian financial year with that of the British government.

    While it may look like a seemingly straightforward step at keeping up with a global benchmark, there's more to it than meets the eye. Here's how:

    1) If the calendar year comes into place, the budget dates will need a fix too. The Centre then gets to squeeze in a budget in November 2018, six months before the general elections in May 2019. In November, the government may come up with all the populist measures with a hope of impressing the voters. It also gives the Centre ample time to adjust to new realities like GST, domestic and global uncertainties.

    2) Most governments have the grouse that the financial year timing does not allow them to account for the impact of monsoon rains. Agriculture contributes more than 15% to India’s GDP and above 58% rural households depend on farm yields. Assuming there is drought, which is the norm between June and September, a change in the accounting period will help in better farm allocation.

    3) Business will be good. It makes sense for India integrates itself with the world economy. Foreign firms don't have to struggle with two types of financial years, here, and at their parent country, which means better business for us.

    4) It creates tax discipline. If Modi's plan goes through, taxpayers who do their tax planning in the last three months of the financial year will be particularly hit. Almost 70% of the premium income of insurance companies and nearly 50% of inflows into tax-saving equity-linked savings scheme (ELSS) funds come in the last three months of the financial year. Medical insurance bought in the dying days of the financial year may suffer the same fate. “Taxpayers should be prepared to invest more before December 31 if a big chunk of their tax-saving investments have been made in the January-March period,” said Sudhir Kaushik, CFO and co-founder of Taxspanner.com. Some taxpayers have lumpy incomes. Those who earn a chunk of their annual income or profits in the last quarter may see a big drop in their tax liability this year.

    So far, the Centre has ruled out any such move. "In order to start the next financial year from January 2018, the government needs to present the Union Budget some time in November, which does not seem to be possible as the process is time-consuming and has to be kicked-off well ahead," minister of state for Finance Santosh Gangwar said. "These are points of discussion in the government. For now, consider March as the end of this fiscal year."
 

Khagesh

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'By 2020, 96% of mobile phones sold in India will be Made in India'
ECONOMICTIMES.COM|
Updated: Aug 02, 2017, 07.35 PM IST


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Tim Cook commits more energy, money to grow Apple in India
ET Bureau|
Updated: Aug 03, 2017, 01.28 AM IST


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India probably worst country to do business in: ICA
PTI|
Aug 02, 2017, 10.52 PM IST

Ajay Kumar (2nd from right), Additional Secretary, Ministry of Electronics and IT countered Mohindroo's (2nd from left) claim saying that there has been continuous improvement when it comes to doing business in India.

NEW DELHI: Mobile industry body Indian Cellular Association (ICA) today criticised the business climate in India saying cumbersome processes have emerged out of distrust between tax officials and customs authorities.

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Datawind cuts production by 50 per cent in Hyderabad, many 'lose jobs'
PTI|
Updated: Aug 02, 2017, 06.31 PM IST

HYDERABAD: Citing dip in sales, low cost tablet manufacturer Datawind has halved its production in its Hyderabad facility, where workers alleged that dozens of them have lost jobs.

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Prashant12

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India's foreign exchange reserves rise to $392.868 billion

KOLKATA: India's foreign exchange reserves rose $1.537 billion to $392.868 billion in the week ending July 28, Reserve Bank of Indiasaid Friday in its latest weekly statistical supplement.

It's another new high at a time when Indian equity market has been on an upward journey, supported by steady inflows of foreign funds.

Foreign currency assets (FCA), which accounts for about 94% of reserves, grew by $1.6.10 billion to $368.760 billion, RBI data showed.

Expressed in dollar terms, FCA reflects changes in the valuation of non-US currencies such as the euro, the pound and the yen held in the reserves.

Gold reserves remained unchanged at $20.349 billion.

http://economictimes.indiatimes.com...ofinterest&utm_medium=text&utm_campaign=cppst
 

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