Indian Economy: News and Discussion

[vampyrbladez]

Daru + TV + DVD Player + Sunny Leone DVD
Works in rurals during elections in those parts...aint it?

These people may be like this but for the secure future of this country and these people's kids we must make some sacrifices. When they grow up, they will look back at pivotal times like these with relief knowing that even amongst all adversity we prevail!

 

[Indx TechStyle]

They got people hooked up to social security and Europe is facing a crisis today. France is gripped by protests. Social security is a sugar coated term for income redistribution and a back door entry for Nehru's socialist policies. Giving social security requires the government to maintain a social security corpus. The government has no income of its own, all the PSUs are running at a loss already. The only way to sustain that corpus is to siphon tax money. The only way to siphon that tax money is to introduce newer and newer cess, we already have swatch bharat, education cess, now we'll have social security cess. Social security imposes NO reciprocal responsibilities on the people receiving it. So it is an incentive to remain incompetent and a drag on tax payer's aspirations.

The tax payer is deluded by tax advertisements which imply that his money will be used for development of national infrastructure. Instead, this money will get used to fund Abdool and his 12 children. The mere availability of doles will make people breed more to claim more benefits, and political parties will cultivate their vote banks out of this. Are they going to spend party funds to feed the poor? They will spend tax payer's money to feed their own vote banks.

Mate mate mate, I'm not pitching for any "redistribution". The population I'm talking of isn't even fraction of population & only for a little period.

 

[indus]

NGT orders reopening of Sterlite plant.

NGT clears way for reopening Sterlite copper smelter; Tamil Nadu govt to move SC
The National Green Tribunal directs the Tamil Nadu state pollution regulator to pass a fresh order of renewal of consent for Vedanta’s copper smelter within 3 weeks

Vedanta chairman Anil Agarwal. Photo: Mint
Dharani Thangavelu
Chennai: The National Green Tribunal on Saturday ordered the reopening of Vedanta’s Sterlite Industries Ltd’s copper smelter plant in Tamil Nadu’s Thoothukudi, months after the smelter was ordered shut by the Tamil Nadu government over alleged pollution that led to violent protests and culminated in police opening fire on demonstrators and killing 13. The Tamil Nadu government will move the Supreme Court against the NGT’s order.

Environment minister K.C. Karuppanan said the state government will challenge the NGT’s final order, which set aside the government’s order for closure of the plant.

In the wake of the police firing on 22 and 23 May that killed 13 people protesting against the plant, the state government ordered a permanent closure of the copper smelting unit.

 

[Indx TechStyle]

Indian gaming industry comes of age in 2018
Indian online gaming market currently stands at $290 million, and is poised to grow to $1billion by 2021.

Awareness, innovation, corporate involvement, Asian Games and free internet- all these and more contributed in making 2018 a lucrative year for the growth of the gaming industry in India. India was not just hooked on to PUBG but also a host of other games and fantasy sports, taking the gaming market to newer heights this year.

According to a report on online gaming in India by KPMG in India and Google, the Indian online gaming market currently stands at $290 million, and is poised to grow to $1 billion by 2021. As for number of gamers in India, it is expected to touch 310 million by 2021, up from 120 million in 2016. According to experts, 2018 saw the addition of 75-90 million gamers to the fraternity in India.

The key driver of market volume was production of low-cost smartphones amongst urban and rural population said the report.

It is not just the number of gamers that is increasing in the country. Indian participation in global tournaments in e-sport categories has also given the industry a push. In the inaugural edition of eSports at the Asian Games this year India won its first bronze medal.

Gamers have also been enthusiastic about investing in the game they enjoy. JetSynthesys, a digital media and entertainment company that creates games for the local and international market, undertook a study of over 1,100 millennials across metro cities and Tier-2 cities to understand gaming preferences across mobile, console, PC and other new forms of gaming like virtual reality (VR) and augmented reality (AR) and found out that young gamers are also beginning to spend money on games.

The most preferred price point for Indian gamers is less than Rs 500. Around 15 percent of gamers spend anywhere between Rs 1000 and Rs 3000 on games, and six percent spend anywhere between Rs 3000 and Rs 10,000.

While the situation has been conducive for gamers, the market is also favourable for developers. Local companies are evolving from being a service provider to end-to-end game developers. The official game based on the Jennifer Lawrence and Chris Patt starrer Passengers was developed in partnership with India-based Hero Digital Entertainment.

"Surprisingly, close to 100 games are being developed in India for the international market every year," said Rajan Navani, managing director and CEO of JetSynthesys, With other original titles such as Kingdom Hearts 2.8, Sea of Thieves and others in the kitty, India is also fast becoming a hub for game development catering to markets like US, China, Japan and Europe.

Development of fantasy sports has also been seen a huge push.

"By 2020, there will be 30 crore Indian sports fans watching sports online, so we are sure that 33% of them (10 crore) will play fantasy sports, compared to the US where 65% of sports fans play fantasy sports," said Harsh Jain, CEO and co-founder of Dream11, a sports gaming platform with over 4 crore users.

"In recent years, the fantasy sports industry in India has witnessed an exponential growth, especially with the growth in online sports viewership and high-speed internet penetration across tier-2 and tier-3 cities. An increase in the number of sports fans has resulted in newer operators entering the market, which in turn has given a strong impetus to this already booming industry," added Jain.

Some of the biggest sports leagues in the world such as the ICC, FIH, BBL, CPL, ISL and the NBA are using fantasy sports as their primary tool of fan engagement. Even the IPL and EPL have their own fantasy sports offering and the whole industry is focused on providing a holistic user experience through a highly engaging sports product offering.

 

[Indx TechStyle]

India’s wine industry is growing in the most delightful way

 

[Yggdrasil]

"Surprisingly, close to 100 games are being developed in India for the international market every year," said Rajan Navani, managing director and CEO of JetSynthesys, With other original titles such as Kingdom Hearts 2.8, Sea of Thieves and others in the kitty, India is also fast becoming a hub for game development catering to markets like US, China, Japan and Europe.

Kingdom Hearts 2.8 was developed in Japan, Sea of Thieves was developed in the UK. What does India have to do with either of them?

 

[Indx TechStyle]

Kingdom Hearts 2.8 was developed in Japan, Sea of Thieves was developed in the UK. What does India have to do with either of them?

Noticed now, I haven't seen any decent game from India except a few in mobiles either. Writer of article is misinformed.

 

[Advaidhya Tiwari]

Noticed now, I haven't seen any decent game from India except a few in mobiles either. Writer of article is misinformed.

Indians don't buy games much at all. So there is hardly any domestic demand. But Indian companies do provide lot of manpower to write many high level games. The companies may not be Indian but the code writers have lot of Indian people

 

[Indx TechStyle]

Indians don't buy games much at all. So there is hardly any domestic demand. But Indian companies do provide lot of manpower to write many high level games. The companies may not be Indian but the code writers have lot of Indian people

Yeah, I've seen a long list of developing companies & games developed in India, list of publishers remains too short.

 

[ezsasa]

This map shows if your country's pledge to the Paris Agreement is good enough to fight climate change

 

[Indx TechStyle]

'Indian economy to grow faster in 2019 than 2018, irrespective of elections'

ADB sees no slowdown for India, pegs FY19 growth forecast at 7.3%

 

[republic_roi97]

Previous Price of Nonsubsidised 14Kg IndaneGas

 

[Why so serious?]

India finds a new way to tax Google, Facebook
By Surabhi Agarwal & Megha Mandavia, ET Bureau | Updated: Dec 17, 2018, 08.31 AM IST

• Facebook and Google to store data locally not just to safeguard critical data of its citizens but also to ensure due taxes are paid by these digital firms for services including advertisements sold to local clients, a senior official told ET.
  
  The government’s push for internet companies to host data of Indian users in local servers is also due to concerns that they deliver services mostly from overseas, outside India’s tax jurisdiction
  “Who can the government tax? Any entity with presence here.
  
  Today, Facebook can offer all their services here without having a presence. They have subsidiaries here, but that do limited business,” said a government official.
  
  “When you (Indian user) are signing up for Facebook or Google, your contract is not with their India office, so in my understanding there are other reasons certainly but location helps in taxation and revenues for sure.
  
  The official said it is not limited to Facebook but applies to all foreign online companies that do business here. “One can say that government’s approach to Facebook should not be to earn money off them but at the same time we can’t deny the fact that they are making a lot of money,” the official added.
  
  “If any other Indian company would have done the same business — online or offline — they would have ended up paying a lot of taxes, so why let them go.”
  
  Facebook has 294 million users in India as of October, says data site Statista, while its messaging platform WhatsApp in February said it had 200 million users in the country, making it the largest user base for both firms.
  
  Facebook and Google did not respond to email queries from ET on tax concerns raised by the government.
  
  Analysts say India’s push for internet companies to host data locally would help it have better supervision over them.
  
  Amit Maheshwari, partner, Ashok Maheshwary and Associates said once these companies set up servers in India, then they can be treated as a permanent establishment and authorities will get the right to tax all income attributable to the country.
  
  
  
  
  
  
  Realising the fact that India was losing out on revenue from digital firms billed overseas, the government in June 2016 introduced a 6% tax in the form of an equalisation levy or known as Google tax on the amount paid to internet companies by advertisers.
  
  In the Union Budget 2018-19, the government also proposed to amend the Income Tax Act to tax digital entities with a large user base or significant economic presence in the country.
  
  Losing out on revenuesDespite initial resistance, the revenue from the equalisation levy is over Rs 1,000 crore till March 2018, according to news reports, even as the guidelines on the last Budget proposal is still awaited.
  
  Experts argue that despite the levy, India is still losing out on tax revenues since it is not valid on services such as annual or monthly subscriptions to streaming websites, or paid promotions done through platforms such as Facebook.
  
  And data localisation seems to be government’s latest weapon to get its due.
  
  Tax consultant Maheshwari said the chances of losing out on tax revenue is also higher in case of advertising or promotional deals signed which are global in nature but also run in India.
  
  “It is easy to shift profits in such scenario, the part which is reflecting in India is clearly taxable which the Indian government is losing out on the ad revenues since even the equalisation levy doesn’t apply on it,” said Maheshwari.
  
  Facebook, however, doesn’t see recent developments where it has come under the government scanner on multiple issues including data localisation, curbing rumours or fake news as conflicts. “I don’t think conversations are conflicts or battles. While governments are doing their bit to ensure public safety, as a company it’s our job to participate in those conversations…” Ankhi Das, Facebook’s public policy director for India and South Asia told ET.
  
  Facebook had posted a profit of Rs 40.7 crore on revenue of Rs 341.8 crore in fiscal 2017, according to regulatory filings in India. Facebook’s FY18 numbers are not available yet. In September, Reuters citing unnamed sources, had reported that Facebook is expected to generate revenue of $980 million from India in 2018.
  
  In November, ET reported that Google India has remitted over $2 billion from the revenue earned in the country over the last five financial years to the US-based search giant’s subsidiaries in Singapore and Ireland. The amount, which is categorised as an expense towards “purchase of advertising space,” could further increase the search giant’s tax liability in the country, even as a dispute with the Indian tax authorities — over the tax outlay on earlier transfers — continues to be heard in court.
  
  ‘Dangerous game’
  In fiscal 2018, Google India reported a 30% increase in revenues to Rs 9,337.7 crore with profit after tax rising 33% to Rs 407.2 crore. The amount transferred for “purchase of advertising space”, increased by 36% to Rs 4,949.6 crore, according to regulatory filings.
  
  Facebook has been under government scrutiny over user data breach and spread of fake news on its platform. The firm has maintained that it is working with the government on its concerns. It also appointed former Hotstar executive Ajit Mohan as its new India head from January.
  
  Pratibha Jain, partner at Indian law firm Nishith Desai Associates, said the need of the Indian government to tax transactions for entities in the country is understandable.
  
  “But in a globalised world, one can’t look at the transactions in isolation.
  
  As a huge exporter of software services, we take advantages of the multilateral and bilateral tax treaties, so it’s a dangerous game we are getting into through the localisation debate,” added Jain.
  
  She said that India has double taxation avoidance treaties with many countries and these companies are paying tax in one jurisdiction or the other. “The big question is, are they evading tax, the answer is no!”

 

[Why so serious?]

India’s Stock Market Leapfrogs Germany's to Become World’s Seventh-Biggest

December 22 2018, 8:18AM December 21 2018, 5:04PM(Bloomberg) -- India’s ascent on the global stage has claimed another victory after its stock market overtook Germany to become the seventh largest in the world.

The Asian giant edged past the equity market of Europe’s largest economy for the first time in seven years, according to data compiled by Bloomberg. That means, after the U.K. leaves the European Union in March, the bloc would have only one country -- France -- among the seven biggest markets.

The move reflects India’s positive returns this year as companies’ reliance on domestic demand enabled them to avoid the meltdown in other emerging markets spurred by Federal Reserve tightening and a trade war between the U.S. and China. It also highlights the challenges facing the EU, including its future relationship with the U.K., a standoff with Italy over budget allocations and separatist clashes in Spain.

While the MSCI Emerging Markets Index is heading for a 17 percent decline this year, India’s benchmark S&P BSE Sensex is up 5 percent after seesawing throughout the year amid oil-price volatility.

In a year dominated by trade protectionism and punitive tariffs by Donald Trump’s administration on China, it’s little wonder that investors have turned cautious over countries with a heavy dependence on exports.

Germany derives more than 38 percent of its gross domestic product from exports, based on 2017 data from World Bank. The corresponding ratio for India is only 11 percent, meaning much of the stock-market opportunity in the country comes from domestic consumer stories.

The reliance on local demand and entrepreneurship also puts India ahead in growth sweepstakes. The south Asian nation is projected to grow 7.5 percent this year and 7.3 percent in 2019, a far cry from German growth of 1.6 percent for each year.

 

[Haldiram]

India’s Stock Market Leapfrogs Germany's to Become World’s Seventh-Biggest

December 22 2018, 8:18AM December 21 2018, 5:04PM(Bloomberg) -- India’s ascent on the global stage has claimed another victory after its stock market overtook Germany to become the seventh largest in the world.

The Asian giant edged past the equity market of Europe’s largest economy for the first time in seven years, according to data compiled by Bloomberg. That means, after the U.K. leaves the European Union in March, the bloc would have only one country -- France -- among the seven biggest markets.

The move reflects India’s positive returns this year as companies’ reliance on domestic demand enabled them to avoid the meltdown in other emerging markets spurred by Federal Reserve tightening and a trade war between the U.S. and China. It also highlights the challenges facing the EU, including its future relationship with the U.K., a standoff with Italy over budget allocations and separatist clashes in Spain.

While the MSCI Emerging Markets Index is heading for a 17 percent decline this year, India’s benchmark S&P BSE Sensex is up 5 percent after seesawing throughout the year amid oil-price volatility.

In a year dominated by trade protectionism and punitive tariffs by Donald Trump’s administration on China, it’s little wonder that investors have turned cautious over countries with a heavy dependence on exports.

Germany derives more than 38 percent of its gross domestic product from exports, based on 2017 data from World Bank. The corresponding ratio for India is only 11 percent, meaning much of the stock-market opportunity in the country comes from domestic consumer stories.

The reliance on local demand and entrepreneurship also puts India ahead in growth sweepstakes. The south Asian nation is projected to grow 7.5 percent this year and 7.3 percent in 2019, a far cry from German growth of 1.6 percent for each year.

This is not actually a good thing. There has been no significant profit growth in companies since 2016 (it's starting now), but the markets galloped for 3 years for no good reason, that's why we are seeing a correction now.

 

[Why so serious?]

This is not actually a good thing. There has been no significant profit growth in companies since 2016 (it's starting now), but the markets galloped for 3 years for no good reason, that's why we are seeing a correction now.

Earlier, the market was run by FIIs but after Modi came confidence in the economy grew and a lot of domestic retail investors started investing through mutual fund and SIPs.

That is the reason we don't see big falls like the earlier times when the FIIs used to take out the money from the market, majority of small investors invest for long term.

This growth is purely due to the increase in investment of the domestic investors.

 

[Haldiram]

Earlier, the market was run by FIIs but after Modi came confidence in the economy grew and a lot of domestic retail investors started investing through mutual fund and SIPs.

That is the reason we don't see big falls like the earlier times when the FIIs used to take out the money from the market, majority of small investors invest for long term.

This growth is purely due to the increase in investment of the domestic investors.

The stock prices have gone up due to DII investment. It's still growth that is not backed by underlying profit numbers. The average PE for Indian markets has been in the 15 to 18 PE range. Most of the good stocks today are trading at a PE of 60+. It means the stock price went up without the underlying profits going up proportionately. Nestle is at 67 PE, Britannia is at 68 PE, Emami is at 60 PE, Marico is at 55 PE, Dabur is at 53 PE and these companies are not like space research or some futuristic stuff that merits those high valuations. They make biscuits and coffee. They are trading at a premium of 60 year forward income. Those are not healthy valuations, it's in bubble zone.

 

[sorcerer]

This is not actually a good thing. There has been no significant profit growth in companies since 2016 (it's starting now), but the markets galloped for 3 years for no good reason, that's why we are seeing a correction now.

FII's have given way to domestic investors and the financial companies in India who has linked so much products with the stock market.

The growth in stock market is a sustained growth..

 

[Willy3]

Sometimes when I go through this thread, I realize how small is my knowledge is

 

[Why so serious?]

The stock prices have gone up due to DII investment. It's still growth that is not backed by underlying profit numbers. The average PE for Indian markets has been in the 15 to 18 PE range. Most of the good stocks today are trading at a PE of 60+. It means the stock price went up without the underlying profits going up proportionately. Nestle is at 67 PE, Britannia is at 68 PE, Emami is at 60 PE, Marico is at 55 PE, Dabur is at 53 PE and these companies are not like space research or some futuristic stuff that merits those high valuations. They make biscuits and coffee. They are trading at a premium of 60 year forward income. Those are not healthy valuations, it's in bubble zone.

I agree to extend, post demonization and the slowdown as the economy picks up and the latest quarterly results start coming up I am sure things will change also there are always a few overweight and underweight stocks in every market.