Indian Economy: News and Discussion

[HariPrasad-1]

By which year we will be able to replace Germany?

That depends on the growth rate of Germany and India. Currency variation shall be a major factor. We are planning to be a 5 Tr Economy by 2025. I think, We shall bypass Germany by that time.

 

[HariPrasad-1]

By which year we will be able to replace Germany?

That depends on the growth rate of Germany and India. Currency variation shall be a major factor. We are planning to be a 5 Tr Economy by 2025. I think, We shall bypass Germany by that time. We are growing at 11 pc in terms of GDP without inflation adjustment. I do not know about Germany but If I consider them growing at 3 Pc, it should happen in coming 5 years.

 

[Prashant12]

India to create its own WhatsApp! Govt proposes its alternative service for secure messaging


To improve confidentiality in official communications, the government is in the process of setting up its own instant messaging service for mobile phones. The platform, for which pilot tests are currently being conducted by the ministry of electronics and information technology (MeitY), will be named Government Instant Messaging Service (GIMS) and is expected to be rolled out later this year.

Apart from Central government offices and departments, GIMS may also be used by state governments if they so desire, sources said.

GIMS is a unified messaging platform being developed by the National Informatics Centre (NIC), which also set up the e-mail service for government departments. Currently, the NIC-created government e-mail service handles more than 2 crore emails daily.

A senior government official said that GIMS has been built through an open source solution in accordance with the policy on adoption of open source software for government by MeitY, thus, ensuring government’s strategic control over the solution. It provides a multilingual platform with 11 local languages and a go-live in English and Hindi initially that will be followed by other languages.

“The app (GIMS) has been developed for both Android and iOS platforms and at present beta testing is going on. A total of 17 government organisations including ministry of external affairs (MEA), ministry of home affairs (MHA), CBI, MeitY, Navy and railways are participating in the testing. Currently, there are around 6,600 users who have generated close to 20 lakh messages,” the official added.

States like Odisha and Gujarat are also participating in the beta testing, the official said.

A former government official, who has handled cyber security threats against the government in the past, said that such a service is very important, especially in light of software like Pegasus, which can be used to snoop on conversations on WhatsApp.

“Today, almost every ministry has its own chat group on commercial platforms like WhatsApp, WeChat, etc. Often officials discuss strategic and sensitive issues on these platforms. With cyber criminals or rogue states targeting such communication, it is high time India has its own government instant messaging service. Such services are crucial today for effective and efficient administration,” he explained.


https://www.financialexpress.com/in...rnative-service-for-secure-messaging/1831863/

 

[Why so serious?]

______________________________________________

 

[HariPrasad-1]

India to create its own WhatsApp! Govt proposes its alternative service for secure messaging


To improve confidentiality in official communications, the government is in the process of setting up its own instant messaging service for mobile phones. The platform, for which pilot tests are currently being conducted by the ministry of electronics and information technology (MeitY), will be named Government Instant Messaging Service (GIMS) and is expected to be rolled out later this year.

Apart from Central government offices and departments, GIMS may also be used by state governments if they so desire, sources said.

GIMS is a unified messaging platform being developed by the National Informatics Centre (NIC), which also set up the e-mail service for government departments. Currently, the NIC-created government e-mail service handles more than 2 crore emails daily.

A senior government official said that GIMS has been built through an open source solution in accordance with the policy on adoption of open source software for government by MeitY, thus, ensuring government’s strategic control over the solution. It provides a multilingual platform with 11 local languages and a go-live in English and Hindi initially that will be followed by other languages.

“The app (GIMS) has been developed for both Android and iOS platforms and at present beta testing is going on. A total of 17 government organisations including ministry of external affairs (MEA), ministry of home affairs (MHA), CBI, MeitY, Navy and railways are participating in the testing. Currently, there are around 6,600 users who have generated close to 20 lakh messages,” the official added.

States like Odisha and Gujarat are also participating in the beta testing, the official said.

A former government official, who has handled cyber security threats against the government in the past, said that such a service is very important, especially in light of software like Pegasus, which can be used to snoop on conversations on WhatsApp.

“Today, almost every ministry has its own chat group on commercial platforms like WhatsApp, WeChat, etc. Often officials discuss strategic and sensitive issues on these platforms. With cyber criminals or rogue states targeting such communication, it is high time India has its own government instant messaging service. Such services are crucial today for effective and efficient administration,” he explained.


https://www.financialexpress.com/in...rnative-service-for-secure-messaging/1831863/

We should have our face book and Twitter version as well. I proposes the name "Samvad" for Indian version of Twitter.

 

[fyodor]

We should have our face book and Twitter version as well. I proposes the name "Samvad" for Indian version of Twitter.

No matter how good the software is, these tech platforms work by the principle of network effect. It means that more the number of users on a platform, the more its value rises.
Unless and until we don't restrict access to platforms like Twitter, FB etc then don't expect any Indian platform to really become popular. Its because Twitter/FB will always have more people globally and therefore more value.

People don't understand how important this is. You see today we shut down internet whenever there is any protest or chaos in an area. We wouldn't need to do it if there was a Great Firewall of India with Indian platforms and sites. We could just let the internet running after applying filters. This is why the Chinese are visionary. They don't need to shut down the internet because they own the platforms which makes the internet.

 

[lcafanboy]

Jewellers face probe for bogus cash deposits during demonetisation
1 min read . Updated: 20 Jan 2020, 10:00 PM ISTGireesh Chandra Prasad

• These under scrutiny have not reflected such huge amount of transactions in their return of income for the Assessment Year 2017-18
• A jeweller from Gujarat is under scrutiny for depositing ₹4.14 crore during the demonetisation phase as against a deposit of ₹44,260 in year-ago period

Demonetisation


New Delhi: The Income Tax department has identified a number of large scale cash deposits by jewellers during the demonetization period which are found to be inconsistent with the disclosures made in their tax returns for assessment year 2017-18, suggesting large scale laundering of black money, said a government official.

Analysis of data from various sources unraveled the rampant tax evasion among jewellers, said the person who spoke on condition of anonymity. One jeweller who explained large cash deposits with unprecedented sales got nailed as his meager electricity bill did not support claims of massive sales operations. The most interesting case is from Gujarat, where a jeweller under scrutiny was found to have deposited cash of ₹4.14 crore between 9 November 2016 and 30 December 2016, the demonetisation period, against a paltry ₹44,260 in the same period a year ago, showing a massive jump in cash deposits, said the official.

Tax authorities have been suspecting large scale tax evasion among jewellers for some time, which forced the federal indirect tax body, the GST Council to set up a ministerial panel led by Kerala finance minister Thomas Isaac to study the issue. The panel had met in the capital on Saturday to explore ways of checking the problem.

https://adclick.g.doubleclick.net/pcs/click?xai=AKAOjsv7QObTaiI91QbL1cVf-LUQDMFznvyCpbE6E9xEMUrLP0Ys03EnsyDEM4c72hacRiDJIw-Oq_UwdpsaiC0mOUUewdisTQIaPABQwlXpbi7ZND7gJIlfodB1ENQp2unfHksc8uTCU8ko1x-5IHdOyxUalG3KHUPuxzG3bu1ZP6fWBJ32wvg3E4ziw16pnLH3E5X-XsjKHYGqmxWGWa5kosAY9HuTyeAWBzqAkSrSJXXUYy1QJQ23d7gBcMPDD4IzGT78dYQa0wKMt8UlhSKodNu1SEox&sig=Cg0ArKJSzM1uAcIMrHEHEAE&urlfix=1&adurl=https://ad.doubleclick.net/ddm/trackclk/N118601.160422LIVEMINT/B23672462.265164439;dc_trk_aid=460066166;dc_trk_cid=126996231;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=

The official said that in more or less all the cases, jewellers tried to explain huge cash deposits either as the sale proceeds or as loan or cash received as advance from unknown customers towards purchase during October 2016. However, during scrutiny, they could not furnish complete bills in respect of such transactions.

With economic growth slowing down, and sluggish revenue receipts, the tax authorities are taking steps to prevent instances of evasion.
https://www.google.com/amp/s/www.li...during-demonetisation/amp-11579537728095.html

 

[varun9509]

No matter how good the software is, these tech platforms work by the principle of network effect. It means that more the number of users on a platform, the more its value rises.
Unless and until we don't restrict access to platforms like Twitter, FB etc then don't expect any Indian platform to really become popular. Its because Twitter/FB will always have more people globally and therefore more value.

People don't understand how important this is. You see today we shut down internet whenever there is any protest or chaos in an area. We wouldn't need to do it if there was a Great Firewall of India with Indian platforms and sites. We could just let the internet running after applying filters. This is why the Chinese are visionary. They don't need to shut down the internet because they own the platforms which makes the internet.

Prime example of this is Hike messenger, it has almost everything any instant messenger has, but very minimal usage, cuz Whatsapp has stormed the market. Indian social medias have not picked up the pace like the Ecommerce giants have done.

 

[sorcerer]

Now Tractors Will Use Water Instead of Diesel


There is a happy news for the farmers of India, now they will not need diesel for their tractors as in future the tractors will run with water instead of diesel. As per reports, scientists from Gujarat and Mihir Jai Singh of Jimpex Biotechnology have prepared a special kit for this, which will be launched in February. The new technology will not only reduce the cost of farming for the farmers in the country but will also drastically decrease air pollution.

How the kit works?

This kit will basically work with the help of Hydrogen and farmers can easily install this system on tractors ranging from 35 horsepower - 90 horsepower. In addition to this, the kit can be fitted separately with the diesel engine. Then Hydrogen fuel will enter the engine via pipes, which will also cut-down the consumption of other fuels in the engine and will also give more power to the engine.

According to the scientists from Gujarat, the most important advantage of this new kit is, that it will decrease the pollution caused by normal tractors. It must be noted that the kit is made up of H2 fuel cell hybrid systems and this technology has many benefits in the near future. Several companies would use it in the machines and engines. The scientists also said that they have a tie-up with Jimpex Biotechnology company. They also have an agreement with the state government of Maharashtra but it will be introduced in Punjab for the first time in the country.

Now let's know about the advantages of this new technology

• Fuel burns fast.
  
  
• Cools engine temperature.
  
  
• Can increase engine horsepower.
  
  
• Can clean the engine.
  
  
• Increases fuel mileage.
  
  
• Eliminates carbon deposition.
  
  
• Also increases the life of the engine.
  

The H-2 fuel cell hybrid system is a mixture of hydrogen device and oxygen. This increases the efficiency of the generating set. This system is a hybrid of other petroleum based fuels, which gives it enough energy. The best thing is that system-built kits can be fitted without any cuts or modifications to the engine. Also the device can be turned off at any time but the engine will still run. This claims to save 40% of diesel and up to 50%, according to standard diesel engines.

https://krishijagran.com/farm-mechanization/now-tractors-will-use-water-instead-of-diesel/

 

[Aaj ka hero]

Now Tractors Will Use Water Instead of Diesel


There is a happy news for the farmers of India, now they will not need diesel for their tractors as in future the tractors will run with water instead of diesel. As per reports, scientists from Gujarat and Mihir Jai Singh of Jimpex Biotechnology have prepared a special kit for this, which will be launched in February. The new technology will not only reduce the cost of farming for the farmers in the country but will also drastically decrease air pollution.

How the kit works?

This kit will basically work with the help of Hydrogen and farmers can easily install this system on tractors ranging from 35 horsepower - 90 horsepower. In addition to this, the kit can be fitted separately with the diesel engine. Then Hydrogen fuel will enter the engine via pipes, which will also cut-down the consumption of other fuels in the engine and will also give more power to the engine.

According to the scientists from Gujarat, the most important advantage of this new kit is, that it will decrease the pollution caused by normal tractors. It must be noted that the kit is made up of H2 fuel cell hybrid systems and this technology has many benefits in the near future. Several companies would use it in the machines and engines. The scientists also said that they have a tie-up with Jimpex Biotechnology company. They also have an agreement with the state government of Maharashtra but it will be introduced in Punjab for the first time in the country.

Now let's know about the advantages of this new technology

• Fuel burns fast.
  
  
• Cools engine temperature.
  
  
• Can increase engine horsepower.
  
  
• Can clean the engine.
  
  
• Increases fuel mileage.
  
  
• Eliminates carbon deposition.
  
  
• Also increases the life of the engine.

The H-2 fuel cell hybrid system is a mixture of hydrogen device and oxygen. This increases the efficiency of the generating set. This system is a hybrid of other petroleum based fuels, which gives it enough energy. The best thing is that system-built kits can be fitted without any cuts or modifications to the engine. Also the device can be turned off at any time but the engine will still run. This claims to save 40% of diesel and up to 50%, according to standard diesel engines.

https://krishijagran.com/farm-mechanization/now-tractors-will-use-water-instead-of-diesel/

But what they will do about the anytime it can catch fire?

 

[Spindrift]

India faces first fall in direct taxes in at least two decades

India’s corporate and income tax collection for the current year is likely to fall for the first time in at least two decades, over half a dozen senior tax officials told Reuters, amid a sharp fall in economic growth and cut in corporate tax rates.

Prime Minister Narendra Modi’s government was targetting direct tax collection of 13.5 trillion rupees ($189 billion) for the year ending March 31 – a 17 per cent increase over the prior fiscal year.

However, a sharp decline in demand has stung businesses, forcing companies to cut investment and jobs, denting tax collections and prompting the government to forecast 5 per cent growth for this fiscal year – the slowest in 11 years.

The tax department had managed to collect only 7.3 trillion rupees as of Jan. 23, more than 5.5 per cent below the amount collected by the same point last year, said a senior tax official.

After collecting taxes from companies in advance for the first three quarters, officials typically garner about 30-35 per cent of annual direct taxes in the final three months, data from the past three years shows.

But eight senior tax officials interviewed by Reuters said despite their best efforts direct tax collections this financial year were likely to fall below the 11.5 trillion collected in 2018-19.

“Forget the target. This will be the first time that we’ll see a fall in direct tax collection ever,” said a tax official in New Delhi.

He estimates that direct tax collections for this year could end up roughly 10 per cent below fiscal 2019.

Direct taxes typically account for about 80 per cent of the government’s projections for annual revenue, and the shortfall may leave the government needing to boost borrowing to meet expenditure commitments.

The tax officials also say that a surprise cut in headline corporate tax rate last year aimed at wooing manufacturers and boosting investment in Asia’s third-biggest economy is another key reason behind the sluggish tax collections.

“We’ll be very happy if we can even breakeven with what we collected last year,” said another senior tax official in the financial capital Mumbai, the biggest tax generator, accounting for about a third of revenues from direct taxes. “But given the state of the economy, I’m not too hopeful.”

Source: https://indianexpress.com/article/b...axes-in-at-least-two-decades-sources-6233282/

 

[Prashant12]

India's forex reserves touch life-time high of $462.16 billion: RBI


The country's foreign exchange reserves rose USD 943 million to touch a life-time high of USD 462.16 billion in the week ended January 17, according to the latest data from the RBI.

In the previous week, the reserves had increased by USD 58 million to USD 461.21 billion.

In the reporting week, the rise in reserves was mainly on account of an increase in foreign currency assets, a major component of the overall reserves, which rose by USD 867 million to USD 428.45 billion, the data released by the Reserve Bank of India (RBI) on Friday showed.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

In the reporting week, gold reserves increased USD 70 million to USD 28.56 billion.

The special drawing rights with the International Monetary Fund (IMF) were up by USD 3 million to USD 1.45 billion.

The country's reserve position with the IMF rose by USD 3 million to USD 3.70 billion, the data showed.

https://www.business-standard.com/a...ime-high-of-usd-462-16-bn-120012401060_1.html

 

[Kumata]

India's forex reserves touch life-time high of $462.16 billion: RBI

BC some body tells me why they are haording these dollars... and if there is a economic slow down where these dollars are coming in......

 

[sorcerer]

\
India likely to raise import duties on more than 50 items next week
India plans to increase import duties on more than 50 items including electronics, electrical goods, chemicals and handicrafts, targeting about $56 billion worth of imports from China and elsewhere, officials and industry sources said.

Read more at: https://www.deccanherald.com/busine...s-on-more-than-50-items-next-week-797903.html

 

[sorcerer]

PE, VC investments in India grew 28 per cent to US$ 48 billion in 2019, says EY data
In 2019, private equity and venture capital investments in India reached an all-time high in terms of both value and volume. In terms of value, investments increased at 28 per cent to US$ 48 billion, compared to US$ 37.4 billion recorded in 2018.

 

[sorcerer]

National Conclave on Emerging Opportunities in Natural Gas sector held in New Delhi; We are laying a Network of Gas Pipelines from Kutch to Kohima and from Kashmir to Kochi, Says Shri Dharmendra Pradhan at the National Conclave
Minister of Petroleum and Natural Gas Shri Dharmendra Pradhan has called upon all the stakeholders to contribute positively in transforming India into a gas-based economy. Presiding over the national conclave on emerging opportunities in the natural gas sector here today, he said that the present share of gas in the energy basket of the country is 6.2 per cent and the target is to take it to 15 per cent by 2030. He said that the world average is 24 per cent while within the country, the Gujarat has 26 per cent share of gas-based energy.

Shri Pradhan said that this is the first time that Government of India is providing Rs 10,500 crore (US$ 1.50 billion) worth of viability gap funding for laying pipeline in Eastern and North-Eastern India. He said gas pipeline network will be ready from Kutch to Kohima and Kashmir to Kochi. Shri Pradhan said that Rs 4 lakh crore (US$ 57.23 billion) worth of investment is likely to be made in such projects which is a challenge as well as an opportunity. He said that the sources of import have been diversified and the Government is holding discussions with gas-exporting countries for getting more gas on favourable terms. He said that CBG is a great initiative which has the potential to generate wealth from waste, provide employment, protect the environment, and give boost to the economy.

 

[DG7867]

India faces first fall in direct taxes in at least two decades

India’s corporate and income tax collection for the current year is likely to fall for the first time in at least two decades, over half a dozen senior tax officials told Reuters, amid a sharp fall in economic growth and cut in corporate tax rates.

Prime Minister Narendra Modi’s government was targetting direct tax collection of 13.5 trillion rupees ($189 billion) for the year ending March 31 – a 17 per cent increase over the prior fiscal year.

However, a sharp decline in demand has stung businesses, forcing companies to cut investment and jobs, denting tax collections and prompting the government to forecast 5 per cent growth for this fiscal year – the slowest in 11 years.

The tax department had managed to collect only 7.3 trillion rupees as of Jan. 23, more than 5.5 per cent below the amount collected by the same point last year, said a senior tax official.

After collecting taxes from companies in advance for the first three quarters, officials typically garner about 30-35 per cent of annual direct taxes in the final three months, data from the past three years shows.

But eight senior tax officials interviewed by Reuters said despite their best efforts direct tax collections this financial year were likely to fall below the 11.5 trillion collected in 2018-19.

“Forget the target. This will be the first time that we’ll see a fall in direct tax collection ever,” said a tax official in New Delhi.

He estimates that direct tax collections for this year could end up roughly 10 per cent below fiscal 2019.

Direct taxes typically account for about 80 per cent of the government’s projections for annual revenue, and the shortfall may leave the government needing to boost borrowing to meet expenditure commitments.

The tax officials also say that a surprise cut in headline corporate tax rate last year aimed at wooing manufacturers and boosting investment in Asia’s third-biggest economy is another key reason behind the sluggish tax collections.

“We’ll be very happy if we can even breakeven with what we collected last year,” said another senior tax official in the financial capital Mumbai, the biggest tax generator, accounting for about a third of revenues from direct taxes. “But given the state of the economy, I’m not too hopeful.”

Source: https://indianexpress.com/article/b...axes-in-at-least-two-decades-sources-6233282/

@Haldiram ji, do you think MoF will announce austerity measures soon?

 

[Kumata]

@Haldiram ji, do you think MoF will announce austerity measures soon?

writting was clearly on wall for some time with tax mopup not increasing as expected which clearly showed stnagant salary levels for past 2-3 years. Apparently, only salaried slaves are the one who contribute to direct tax kitty .. more so because they have no option to circumvent taxes unlike bussiness man who can produce fake receipts of anything.....and get away without paying much ...

 

[Haldiram]

@Haldiram ji, do you think MoF will announce austerity measures soon?

Not austerity, but the reverse. They will do what the US did in 2008 and pump money into the system through infra related spending and let it trickle down to the people indirectly.

Might give some tax breaks to individuals. Middle class tax payers are the primary spenders in our economy. Rich people are the primary spenders on primary CAPEX. They got their corporate tax cut so that they can invest the money they saved in taxes into expansion activities. Now it's our turn to get a tax cut so that we can start buying things with the money which would have otherwise gone for tax.

 

[DG7867]

Not austerity, but the reverse. They will do what the US did in 2008 and pump money into the system through infra related spending and let it trickle down to the people indirectly.

Might give some tax breaks to individuals. Middle class tax payers are the primary spenders in our economy. Rich people are the primary spenders on primary CAPEX. They got their corporate tax cut so that they can invest the money they saved in taxes into expansion activities. Now it's our turn to get a tax cut so that we can start buying things with the money which would have otherwise gone for tax.

But how will they manage fiscal deficit?