Economic Survey hints at demonetisation ‘windfall’ doles in Budget 2017
The Economic Survey says demonetisation has hit India’s growth by 0.25-0.5% of GDP, but will yield a fiscal “windfall”. This hints at a big hand-out of the bonanza, possibly through Jan Dhan accounts, in Wednesday’s budget, burnishing BJP’s hopes in the coming state elections. GDP growth is estimated at 6.75-7.5% next year, well below the “sweet spot” of over 8% that the Modi government started with. The Survey emphasises that 8-10% GDP growth needs 15-20% export growth, and right now exports are in poor shape. Brexit, Donald Trump’s election and other global trends suggest that the West’s “political capacity for openness” is falling, a major structural barrier.
Source: Economic Times
India needs to keep close watch on global developments: Economic Survey
India will have to keep a close watch on political backlash against globalisation and also developments in China as both have implications on the domestic economy, the Economic Survey 2016-17 said today. From India’s perspective, it said, the political carrying capacity for globalisation is relevant not just for goods but also services. The world’s service exports-GDP ratio is about 6.1 per cent. “If India grows rapidly on the back of dynamic services exports, the world’s service exports-GDP ratio will increase by 0.5 percentage points — which would be a considerable proportion of global exports,” the Survey said. Put differently, India’s services exports growth will test the world’s globalisation carrying capacity in services.
Source: Economic Times
India’s GDP growth rate for 2015-16 revised to 7.9% from 7.6%
India’s economy grew faster in 2015-16 than earlier estimated, which could result in slower growth in the current fiscal because of a higher base. Data released by the statistics department on Tuesday showed India’s gross domestic product (GDP) grew 7.9% in 2015-16 against an earlier estimation of 7.6%. The statistics department earlier this month said India’s economic growth is likely to decelerate to 7.1% in 2016-17 based on the 7.6% estimate for the previous year, chiefly because of an industrial slowdown.
Source: Livemint
Trump government tables new H-1B bill; techies, IT firms brace for tough future
A legislation has been introduced in the US House of Representatives which among other things calls for more than doubling the minimum salary of H-1B visa holders to USD 130,000, making it difficult for firms to use the programme to replace American employees with foreign workers, including from India. The High-Skilled Integrity and Fairness Act of 2017 introduced by California Congresswoman Zoe Lofgren prioritises market based allocation of visas to those companies willing to pay 200 per cent of a wage calculated by survey, eliminates the category of lowest pay, and raises the salary level at which H-1B dependent employer are exempt from non displacement and recruitment attestation requirements to greater than USD 130,000.
Source: Economic Times
Fiscal deficit in April-December hits 94% of budget target
Fiscal deficit in the first nine months of 2016-17 touched 93.9 per cent of the Budget target as against 87.9 per cent for the same period a year ago. In value terms, the April-December fiscal deficit stood at Rs 5.01 lakh crore, or 93.9 per cent, of 2016-17 Budget estimates (BE). The fiscal deficit stood at 87.9 per cent in the corresponding nine months a year ago, as per 2015-16 BE. Fiscal deficit, the gap between expenditure and revenue for the entire fiscal, has been pegged at Rs 5.33 lakh crore, or 3.5 per cent of the GDP, for the financial year 2016-17.
Source: Business Standard
NCLT clears way for Tata Sons to hold EGM on Feb 6
The National Company Law Tribunal (NCLT) on Tuesday refused to grant a stay on the extraordinary general meeting (EGM) called by Tata Sons on February 6 to consider removal of Cyrus Mistry from the Board of Tata Group’s holding company. A Sundaram, counsel for Cyrus Mistry family companies, pressed for interim relief in contempt petition (against Tata Sons) which had sought a stay on EGM slated for February 6. “This issue was already decided in the last hearing when the contempt petition filed by two Mistry family companies was dismissed. There are no road blocks for Tata Sons to hold the EGM. It can go ahead with the forthcoming EGM,” said a division bench of NCLT comprising B S V Prasad Kumar (Member-Judicial) and V Nallasenapathy (Member-Technical).
Source: Free Press Journal
CBDT to send queries to 18 lakh taxpayers
The income-tax department has identified 1 crore taxpayers who have made deposits of over Rs. 2 lakh in their bank account during the period of demonetisation between November 9 and December 30. It will be sending verification queries to 18 lakh taxpayers on February 1 on their e-mails. “In the first batch, around 18 lakh persons have been identified in whose case, cash transactions do not appear to be in line with the tax payer’s profile,” said Sushil Chandra, Chairman, Central Board of Direct Taxes.
Source: The Hindu Business Line
Second tranche of CPSE ETF lists at a premium to allotment price
The second tranche of Central Public Sector Enterprises’ Exchange-Traded Fund (CPSE ETF) got listed on Tuesday. The ETF opened at Rs 26.75, 7% higher than the allotment price of Rs 25.21. The ETF closed the session on NSE at Rs 26.86. The CPSE ETF, which opened for subscriptions from January 17 to January 20, was oversubscribed by 2.30 times, with bids worth Rs 13,802 crore pouring in against the issue size of Rs 6,000 crore. The Further Fund Offer (FFO) of CPSE ETF had a size of Rs 4,500 crore, with an option to retain another Rs 1,500 crore in case of over-subscription.
Source: Financial Express
Note ban may delay banks’ asset quality recovery: Fitch
Demonetisation is likely to push back recovery in banks’ asset quality as the cash shortage had a “disruptive impact” on India’s informal economy, rating agency Fitch said on Tuesday. The impact of demonetisation on asset quality will start showing significantly in data for the January-March quarter, the rating agency said. “Demonetisation is likely to push back the recovery in Indian banks’ asset quality, given the disruptive impact that cash shortages have had on the country’s large informal economy,” Fitch Ratings said in a statement.
Source: The Hindu
Setback for Vijay Mallya, CBI to start the extradition process
In its latest crackdown against the flamboyant businessman, Central Bureau of Investigation (CBI) is all set to kick start the extradition process against Vijay Mallya on Wednesday. This is believed to be Narendra Modi government’s biggest move to bring back Mallya. Mallya who has spent last 10 months in UK, evaded the law for almost a year. As per the reports by India Today, CBI is asserting that it has a strong case against the now-defunct Kingfisher Airline’s owner. The agency will move to Ministry of External Affairs tomorrow regarding the same. The court has been already informed about the move by CBI. Meanwhile, defending former prime minister Dr Manmohan Singh following allegations that the UPA regime facilitated loans to Vijay Mallya’s now-defunct Kingfisher Airlines from a consortium of banks, the Congress Party looked to turn the tables on the ruling dispensation asking how did they let the liquor baron leave the nation in the first place.
Source: Financial Express
About the Author
