India’s GDP growth performance in the last two quarters should reach a seemingly high 7% in the current fiscal to reach a downwardly revised 6.5% according to the CSO. Even if that fate is achieved, the economy in 2017-18 is going to witness the lowest growth rate since 2013-14. According to the CSO, GDP growth may come down to 6.5% for 2017-18 in contrast to the last year’s growth of 7.1%. In 2013-14, the growth rate was 6.4% and the revised estimate for the current fiscal where three quarters are already completed is just above that figure at 6.5%. As per the published data, the economy registered a 6% growth in the first two quarters. Third quarter figure are to b
Finance Minister Arun Jaitely brought out the details of Electoral Bonds that are aimed to make corruption free financing of political parties. As per the Finance Minister’s disclosure, a citizen of India or a company registered in India can purchase the bond to give donations to political parties. The bond will be available in the denomination of Rs 1000, Rs 10000, Rs 1 lakh, Rs 10 lakh and Rs 1 crore. Multiples of these denominations can be used by the donor implying that big amount can be given to the political parties. State Bank of India will be the banking outlet for issuing the electoral bond. Strong KYC norms are also incorporated, and the payment should be routed f
In a major reversal of its rating, international rating agency – Moody’s Investors Services has upgraded India’s sovereign rating for the first time in 14 years. The agency has upgraded the country from ‘Baa3 to Baa2 and tagged ‘positive’. Moody's upgrade will give a big political boost to Prime Minister Modi's economy management that is featured by numerous ease of doing initiatives though overshadowed by the sinful demonetisation venture and hasty launch of the big push reform -GST. The rating gives one notch up in the medium grade category. The medium grade has three sub-grades - Baa1, Baa2 and Baa3. India is now upgraded from Baa3
The Government has brought out Rs 7.46 lakh crore stimulus to overcome the current economic slowdown. Two critical sectors – highways and public-sector banks will share the stimulus. Announcing the programme, Finance Minister Arun Jaitley said that the stimulus will be completed in the next two years. First beneficiary of stimulus are the PSBs, who will be recapitalized by Rs 2.11 lakh crore. The major portion of the stimulus goes to the road sector as the proposed Bharatmala Pariyojana will be funded with Rs 5.35 lakh crores. Bharatmala’s main thrust is to construct a coastal highway of nearly 34800 km. Funding of the programme The funding of the programme is cru
After nearly two years of its establishment, the National Investment and Infrastructure Fund (NIIF) was got its first investor – the Abu Dhabi Investment Authority (ADIA). As per the NIIF Chief Executive, Sujoy Bose, the Authority will invest $1 bn in the Quasi-Sovereign investment fund. ADIA, formed in 1976 is a major sovereign fund in the world and uses the foreign exchange reserves of UAE that is mainly obtained from crude oil exports. The Agency is managing a huge $1.320 trillion asset with investment, though its asset under management is expected to be around $800 million. It makes investment in all types of assets - equities, debt instruments including government bon
The CSO’s GDP data for the first quarter 2017-18 shows GDP growth rate scooping to three year’s low of 5.7%. In an unusual quarterly trend, the manufacturing sector growth crashed to 1.2%, that is just one-tenth of the growth registered in the same quarter last year. New data indicate a worrying trend as the previous quarter of Q4, 2016-17 registered just 6.1% growth under a suffocating demonetization impact. Some economists doubt the triggering of a slowdown along with the short-term factors like demonetization and GST launch impacts for two successive below par performances. Chief statistician TCA Anant pointed out sharp fall in industry output as the factor behind
The Aadhaar Act 2016, that serve as the base for several government initiatives extending from tax compliance searches to the delivery of government subsidy to the poor will pass the privacy test implied in the SC verdict according to UNDAI. Speaking about the future of these initiatives after the verdict, the CEO of Unique Identification Authority of India- Ajay Bhushan Pandey said that all the present programmes that uses the 12 - digit Aadhaar id will continue to serve their purposes. He said that the “judgement has not said anything about the Aadhaar Act so the Aadhaar Act is a valid Act passed by the Parliament (and) is the law of the land,”. According to him, t
In a historical judgement, the nine bench Constitutional bench of the Supreme Court declared that privacy is a fundamental right. The rather unexpectedly progressive stand of the Court will make exceptional ramifications on the way in which citizens live. Supreme Courts’ unanimous verdict is against the opinion expressed by the centre and almost all states except Kerala. The Kerala government has argued for giving more protection to privacy in its opinion. This is the second major verdict by the SC in two days; the previous one outlawing the triple talaq. Affirming fundamental right to privacy is perhaps one of the progressive judicial contribution in the history of the Rep
The Hamburg meeting of the G20 has isolated the US President’s anti-climate stand on the Paris Accord. Leaders of the 20 developed and large developing countries who met for twelfth time since its formation in 1999, passed a declaration criticizing the US approach to climate protection. The final communique at Hamburg exposes US isolation: “We take note of the decision of the United States of America to withdraw from the Paris agreement.” Besides the rejection of the US stand on climate protection the communique reassured its stand on Paris: “The leaders of the other G20 members state that the Paris agreement is irreversible.” The US President Donal
The GST is considered to be the ultimate tax reform in indirect taxes globally. Several countries have adopted it and those who have unitary financial structure or where there is only one central government, GST launch is rather simple. But in India’s case, the situation is much different. Merging of central and state taxes needed constitutional arrangements and political consensus. Indian conditions are also much different with the business communities consists of largely small and medium enterprises that have several hurdles to establish and manage the GST infrastructure. It doesn’t mean GST is a higher order reform given the capability of the business community. Ra
Dictionary on 1c-enter.ru
- Logic of withdrawing Rs 1000 and Rs 500 notes
- Why the GST reform is transformational?
- Raghuram Rajan: The Gladiator returns to Chicago
- Good intention but poor thinking - what troubles demonetization?
- High interest rate rather than inflation is the macroeconomic problem for India right now
- Japan’s first trade deficit in 30 years is part of the Global Shift
- India Black Money Report: CBI underestimates black money at Rs 25 lakh crore
- Arvind Subramanian rocks with 'Chakravyuha' in Economic Survey
- NREGS: give respect to the tax payer’s money
- Why we need an emergency monetization plan as well?