The National Highway Authority has awarded project for the construction of two lane high way linking India with South Eastern neighbors – Myanmar and Thailand. Earlier, the project was awarded to Punjj Lloyd and Varaha Infra join venture. Proposed as an extension of the Kalewa-Yargi section of the India- Myanmar-Thailand trilateral highway, the road will connect India with Thailand through Myanmar. The highway is a gateway for India with the ASEAN region that is one of the leading trade partner bloc for the country. Referred as Friendship Highway, India has already, built a part of the network that is estimated to be 120 km. The portion from the border town of Tamu
A Parliamentary Standing Committee has asked the Commerce Department to ensure better access to Indian goods to the ASEAN region under the India-ASEAN FTA. In a report submitted to the Rajya Sabha, the Panel observed that several Indian goods are facing difficulties to get into the ASEAN region in contrast to the provisions of the agreement. The India- ASEAN FTA that came into force in 2010, but is criticized as a misadventure, creating current account deficit for the country. Several ASEAN countries have excess production capacities, and this has adversely affected both production and investment in India. The House Panel headed by Naresh Gujral observed that exports from India h
Multiple adverse factors rooted on GST launch has caused the country’s trade situation to worsen as the October 2017 data shows export decline of 1.1%. According to the Commerce Ministry data for October, exports fell to $23.1 billion while imports recorded its 10 months slowest increase of 7.6% to $37.1 billion. The net result is a trade deficit of $14 billion which is the highest one since mid-2014. Poor trade performance is attributed to the GST induced liquidity crunch induced on SMEs and other small players. Various trade bodies are criticizing the premature and hasty GST launch to affect the country’s ailing trade sector. Exporters are blaming on the dela
The Directorate of Industrial Policy and Promotion – the foreign investment think tank within the Ministry of Commerce and Industry has updated the FDI policy on Monday. This is the sixth annual updation of the policy since the Consolidation FDI Policy was launched in 2010. The latest updates bring the changes brought during the last one year and as a whole it shows that nearly 90% of the FDI are now allowed through automatic route. Besides the existing provisions, the revised policy brings a clear regulation on FDI in startups. FDI in startups According to the Policy, start-ups can mobilise funds in the form of FDI by issuing various instruments. The Policy s
On the settlement day of the Doklam standoff between India and China, a Chinese tabloid – ‘Global Times’ published an article describing how India is now a growing healthcare destination for Chinese patients. The newspaper cited experience of Hua Li (pseudonym), a patent who went to India for treatment of Hepatitis C. “In New Delhi, Hua was taken to one of India's best liver doctors in a private hospital and prescribed medication not yet available in China.” Interestingly, the Chinese woman’s first foreign visit was to India. "The professionalism and cleanliness of India's private hospital is impressive. It's more like a hotel, unlike Chines
Japanese tech cum investment firm Softbank will inject $2.5 billion into the home-grown ecommerce firm Flipkart. Decision of the Masayoshi Son owned SoftBank to add capital to Flipkart will enliven competition and rivalry with Jeff Bezos’s Amazon. In the last few quarters, Flipkart was struggling against a multiple platform oriented Amazon though the Indian firm has higher market share. Huge sales campaign and quick addition of local flavor have made the US company an edge over the domestic firm. Bezos’ entry into food retail business has added strength to the potential of Amazon and it seemed that the US firm is quickly closing in with Flipkart. The latest ext
World’s largest handset maker - Apple was offered import tax concessions by the central government for its India manufacturing facility. According to reports by Reuters, the Cupertino based phone maker has to increase its domestic component sourcing in a phased manner to avail the tax concession. Apple demanded tax concession of different types ever since the CEO Tim Cook originally made the proposal for handset manufacturing in Asia’s fastest growing handset market. Several of its demands were rejected by the government as such concession will led to similar demand from other firms. Midway, Apple demanded a 15-year tax holiday for all components it would import for t
India and the EU-exiting UK hinted that both countries are going to make their economic engagement deeper after the Brexit. The two countries are planning to reach in a Free-Trade Agreement once UK comes out of the European Union. In a meeting between Finance Minister Arun Jaitely and Britain’s Chancellor Philip Hammond in New Delhi, the two countries decided to set up a fund under National Infrastructure Investment Fund (NIIF) to promote clean energy projects. The fund called Green Growth Equity Fund with a corpus of 240 mn pound will be constituted as a sub- fund within the NIIF. Both countries discussed effort to add tradability to rupee in the international markets and
Foreign Direct Investment has registered a smart growth of 18% to reach $46 billion during calendar year 2016. According to the data published by Directorate of Industrial Policy and Promotion (DIPP), Foreign Direct Investment was $39.32 billion during 2015. Smart growth in FDI is a good sign for the economy when global FDI flows are declining. According to UNCTAD, FDI flows to India were $42 bn in 2016 whereas that to China was $139 bn. Sectors including services, telecom, trading, computer hardware and software attracted most of the FDI flows. Main sources of FDI were Singapore, Mauritius, the Netherlands and Japan. The first three are known tax concession countries who enjoys
India’s economic administrators’ attack on inconsistent credit rating standards of western agencies is now joined by the Chinese media. An article published in the partisan tabloid – the Global Times ‘Why India’s sovereign ratings lag behind China’, describes that foreign companies are correct in giving high ranking to China over India. India’s Economic Survey brought out a box criticizing the methodology of credit rating agencies. Edited by Arvind Subramanian, the Survey made a comparative study of ratings on India and China while concluding that China gets a higher rating despite macro indicators are more or less the same. According to
Dictionary on 1c-enter.ru
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