Indian Economy : News,Discussions & Updates
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Indian-Omani group strikes $3.85 billion deal to build Sri Lanka oil refinery
Indian-Omani group strikes $3.85 billion deal to build Sri Lanka oil refinery
India Central Bank Accepts $5 Billion at Forex-Swap Auction
India’s central bank accepted the $5 billion it targeted from banks at its currency swap auction to ease liquidity ahead of the financial year-end this month.
The authority said it received 240 bids worth $16.31 billion. The cutoff was set at a premium of 776 paise, according to a statement.
“The amount received has been very decent and that shows it has been a successful move,” said Paresh Nayar, head of currency and money markets at FirstRand Ltd. in Mumbai. “This also leads to belief that the RBI might be prompted to come out with more of such liquidity injections in future.”
In an unusual move, the Reserve Bank of India earlier this month said it would buy dollars from banks for three years and offer them rupees in return. The swap will bulk up India’s foreign-exchange reserves while injecting as much as 345.6 billion rupees into the financial system to ease a cash crunch typically seen before the fiscal year-end.
The announcement also led to concerns among traders that the central bank may scale down its purchases of bonds that have been a key support for the market at a time when concerns about the government’s record $100 billion borrowing plan has cooled demand for debt. The RBI has bought 3 trillion rupees of debt this fiscal.
The premium is not too far from market levels and the cutoff isn’t disruptive, said Nayar. “It gives a signal that forward premium will not shoot up in the inter-bank market.”
The annualized 1-year dollar/rupee forward premia dropped one-basis point after the cutoff announcement to 3.64 percent, according to Bloomberg data.
https://www.bloomberg.com/news/arti...nk-accepts-5-billion-at-currency-swap-auction
India’s central bank accepted the $5 billion it targeted from banks at its currency swap auction to ease liquidity ahead of the financial year-end this month.
The authority said it received 240 bids worth $16.31 billion. The cutoff was set at a premium of 776 paise, according to a statement.
“The amount received has been very decent and that shows it has been a successful move,” said Paresh Nayar, head of currency and money markets at FirstRand Ltd. in Mumbai. “This also leads to belief that the RBI might be prompted to come out with more of such liquidity injections in future.”
In an unusual move, the Reserve Bank of India earlier this month said it would buy dollars from banks for three years and offer them rupees in return. The swap will bulk up India’s foreign-exchange reserves while injecting as much as 345.6 billion rupees into the financial system to ease a cash crunch typically seen before the fiscal year-end.
The announcement also led to concerns among traders that the central bank may scale down its purchases of bonds that have been a key support for the market at a time when concerns about the government’s record $100 billion borrowing plan has cooled demand for debt. The RBI has bought 3 trillion rupees of debt this fiscal.
The premium is not too far from market levels and the cutoff isn’t disruptive, said Nayar. “It gives a signal that forward premium will not shoot up in the inter-bank market.”
The annualized 1-year dollar/rupee forward premia dropped one-basis point after the cutoff announcement to 3.64 percent, according to Bloomberg data.
https://www.bloomberg.com/news/arti...nk-accepts-5-billion-at-currency-swap-auction
RBI's dollar-rupee swap auction gets bids for $16.3 bn against $5 bn on offer
Can you explain this ? @Nilgiri
Can you explain this ? @Nilgiri
Basically RBI wanted to get 5 billion USD out of what banking system held (And exchange them for rupees at certain rate today)...but there was demand from the banks to sell 16 billion under the current exchange rate....indicating positive economic pressure....since forecast was exceeded.
Basically banks like to do this under local favourable circumstances (exchange now for rupee they can lend out locally, and buy the dollars back from RBI at later date for higher price).....since they (project) they can earn (thru interest rates etc) from the local economy better than they can with USD forex they hold right now.
With RBI it also benefits given it has more demand for the rupee it prints (and backs)...i.e inserting liquidity without inflation worry..... and also it fulfils its mandate to maintain forex level (beyond the pure immediate market forces).
Basically its optimizing and calibrating what each set of banks (tier A banks vs RBI) does as objectives.
Typical half truths half spin of NDTV type ecosystem, March closing is always action packed for businesses, individuals and even banks. Such letters are norms but how will that set agenda? How else can you find negativity in otherwise very positive tax collection? Let's see after 31st what's the status, this looks like absurd scare mongering as not even previous year tax collection figures are given for comparison during March.
Isn't a higher trade-to-gdp ratio a bad indicator of a an economy's strength to withstand turbulence in the international markets, say, america faces another recession in 2020?? It actually says a country is economically dependent on other countries. I thought China was much more dependent on international trade than us!! We're almost like an export dependent country then??
It depends. Early-mid economic growth stage, trade is good way to get higher forex, investment, tech+knowhow input, jobs etc that otherwise your local economy does not really support (and over time you create permeation from demand/supply more generally there too).
You have to commit some risk to higher exposure/dependency to also get somewhere better faster. It is like argument of why not just be 99% farmers+hunter/gatherers in a society....it is far more stable etc....like why try be something more etc....why not just stay fully insulated and do 0 trade with outside? etc...
It is about where is best balance for society at current juncture....between stability but also enough input/exposure to change (from outside) to get some place better. So no easy answer as to what is the "correct" amount of exports/GDP for large developing country....it probably shouldn't be less than 10%...but you dont want it too high past 30% either etc (if you are huge population). Total trade wise, about dbl that for both etc (given overall you can import about as much you export generally).
No country for evaders: This April 1, India enters uncharted tax territory
The taxation scene could change radically as India enters uncharted territory from April 1. On Day 1 of the new financial year, the taxman will begin looking into comprehensive, 360-degree profiles of Indian taxpayers.
Life is now all set to change drastically for taxpayers whose spending patterns don't match their earnings declarations.
How will the taxman pull this off in a country like India where lack of tax compliance has been one of the longest-standing grouses for governments?
Enter Project Insight — a tax tracker based on big data, built painstakingly over several years at a purported cost of Rs 1,000 crore. Under the project, the government will put to use a range of non-traditional — but very effective — sources of information.
So far, traditional sources like banks were the only tools at government's disposal, leaving unscrupulous taxpayers a huge scope for evasion. The plan now is to gather virtual info not just from those traditional sources but also from social media sites like Facebook and Instagram.
Big data is here, finally
According to various reports, the I-T department gave taxmen the go-ahead to access the Insight portal beginning March 15.
So, in case you posted photos of your foreign vacation or your new car that look way out of your league judging by your I-T returns, beware. The taxman could now just glean those information from your social media profile, and use big data to deduce the mismatch between your earning and your spending.
In case of any mismatches, the next step could be a tax raid in your home or office.
The project is set to be fully operational from April 1. The I-T department has set up a host of key functionalities that could over time make tax evasion impossible. The process will basically entail a complete profiling of a taxpayer — both new income tax filers and non-filers — in order to find out his/her tax liability.
Big data will help the taxman build a taxpayer's master profile that will include all key info about him/her.
The basic target of this project is to bring more people under the tax net. Another idea is to catch tax truants who may've played dirty during demonetisation. The tax net will also close in on those with pending demands of over Rs 10 lakh.
How all this will be done
A Business Standard report says the data gleaned from Insight will be segregated. This will have the taxpayer's master profile — which will include address, signature, I-T return profile. There is also a segment named business intelligence that will basically ferret out non-compliant folks.
A Geographic Information system will help tax the taxman zero in on a specific area for more focussed action. It will also classify taxpayers on the basis of parameters like income, profit and capital gains, the BS report says.
As per this report, the Insight project will feature an integrated information management system, which will harness machine learning to help take the right step and the right time. It will entail collecting relevant web pages and documents that could be probed, it says.
India now in select league
As per a Bloomberg report, India now joins a select league of countries like Belgium, Canada and Australia that are already using big data to keep a check on evasion.
India's new plan is on the lines of Britain's 'Connect,' built at an estimated cost of 100 million pounds. Since its inception in 2010, the system has prevented the loss of 4.1 billion pounds ($5.4 billion) in revenue. These cases would have mostly remained undetected without cutting-edge analytics.
More importantly, the number of criminal prosecutions has risen to 1,165 from 165 a year, Bloomberg said quoting London-based Institute of Financial Accountants.
No country for evaders: This April 1, India enters uncharted tax territory
The taxation scene could change radically as India enters uncharted territory from April 1. On Day 1 of the new financial year, the taxman will begin looking into comprehensive, 360-degree profiles of Indian taxpayers.
Life is now all set to change drastically for taxpayers whose spending patterns don't match their earnings declarations.
How will the taxman pull this off in a country like India where lack of tax compliance has been one of the longest-standing grouses for governments?
Enter Project Insight — a tax tracker based on big data, built painstakingly over several years at a purported cost of Rs 1,000 crore. Under the project, the government will put to use a range of non-traditional — but very effective — sources of information.
So far, traditional sources like banks were the only tools at government's disposal, leaving unscrupulous taxpayers a huge scope for evasion. The plan now is to gather virtual info not just from those traditional sources but also from social media sites like Facebook and Instagram.
Big data is here, finally
According to various reports, the I-T department gave taxmen the go-ahead to access the Insight portal beginning March 15.
So, in case you posted photos of your foreign vacation or your new car that look way out of your league judging by your I-T returns, beware. The taxman could now just glean those information from your social media profile, and use big data to deduce the mismatch between your earning and your spending.
In case of any mismatches, the next step could be a tax raid in your home or office.
The project is set to be fully operational from April 1. The I-T department has set up a host of key functionalities that could over time make tax evasion impossible. The process will basically entail a complete profiling of a taxpayer — both new income tax filers and non-filers — in order to find out his/her tax liability.
Big data will help the taxman build a taxpayer's master profile that will include all key info about him/her.
The basic target of this project is to bring more people under the tax net. Another idea is to catch tax truants who may've played dirty during demonetisation. The tax net will also close in on those with pending demands of over Rs 10 lakh.
How all this will be done
A Business Standard report says the data gleaned from Insight will be segregated. This will have the taxpayer's master profile — which will include address, signature, I-T return profile. There is also a segment named business intelligence that will basically ferret out non-compliant folks.
A Geographic Information system will help tax the taxman zero in on a specific area for more focussed action. It will also classify taxpayers on the basis of parameters like income, profit and capital gains, the BS report says.
As per this report, the Insight project will feature an integrated information management system, which will harness machine learning to help take the right step and the right time. It will entail collecting relevant web pages and documents that could be probed, it says.
India now in select league
As per a Bloomberg report, India now joins a select league of countries like Belgium, Canada and Australia that are already using big data to keep a check on evasion.
India's new plan is on the lines of Britain's 'Connect,' built at an estimated cost of 100 million pounds. Since its inception in 2010, the system has prevented the loss of 4.1 billion pounds ($5.4 billion) in revenue. These cases would have mostly remained undetected without cutting-edge analytics.
More importantly, the number of criminal prosecutions has risen to 1,165 from 165 a year, Bloomberg said quoting London-based Institute of Financial Accountants.
No country for evaders: This April 1, India enters uncharted tax territory
For thousands of diamond traders, a new bourse in Surat promises to add to the shine
India's $23 billion diamond industry accounts for over one-third of its gems and jewellery trade, making up seven percent of the country's Gross Domestic Product (GDP). India's exports of cut and polished diamonds, gold jewellery, and gem stones, are predicted to grow 10 per cent year-on-year in FY19 according to the Gems and Jewellery Export Promotion Council (GJEPC). The diamond is quite literally the 'crown jewel' of all gemstones. Close to 90% of the worlds diamonds pass through Gujarat for polishing, making the Indian state a pivotal member of the diamond supply chain.
The diamond industry of India traces its roots to the 1960s when some entrepreneurs belonging to the Patel community of Saurashtra began importing rough diamonds, which were then polished and exported. Post the 1980s, the industry grew rapidly due to close proximity to the financial capital, Mumbai, and eventually resulted in the emergence of many such business communities from Saurashtra and Gujarat that helped the diamond industry of Surat prosper. The market-oriented economic reforms in 1990s gave rise to a new middle class that started buying diamond jewellery alongside traditional gold jewellery. The diamond industry further benefitted from this new and growing consumer base - its own local community.
Today, India gives shine to 75% of the rough diamonds sold globally, with Surat being the capital of this trade. Over 90% of the world's diamond pieces are cut in Surat, contributing to about 80% of the Indian annual diamond export. The industry also employs more than seven lakh people with the majority of them based in Surat.
However, the Bharat Diamond Bourse (BDB), located in Bandra Kurla Complex, Mumbai, serves as the sole diamond trading hub for India. Spread over a 20-acre plot, the complex is home to 2,500 small and large diamond traders in addition to the custom house, banks, and other service providers.
Most of the traders and merchants conduct business from the BDB. Diamond merchants from Surat travel to Mumbai daily to conduct business. In order to reach the BDB, many merchants take the early morning train from Surat and return late into the night after a hard day's work, leaving them with no time for familial and societal commitments. Whilst Surat is well-known for its diamond manufacturing sector and is home to many of the largest polishing factories, the city does not have a well-structured trading base.
These challenges prompted various diamantaires to establish a new bourse in Surat. The new international diamond bourse in Surat will eclipse the diamond exchanges in Mumbai, Israel, and Belgium in terms of scale and activity, enabling the currently fragmented and unorganised diamond trading and polishing industry in India to organise itself in one place.
The Surat Diamond Bourse is also set to reduce the travel time for the merchants and provide them with affordable office spaces, thus addressing the daily problems of many small and medium level merchants who are often seen trading in the open landscaped courts and the corridors of the BDB. It will allow them to deal directly with their buyers by bringing all activities of cutting, polishing, manufacturing, and trading under one roof.
This project is currently under construction on the National Highway in Surat, amidst the DREAM City (Diamond Research and Mercantile City) - an upcoming business district comprising of offices, residential areas and allied facilities. With an eye on providing a facilitating business environment to complement the diamond industry of the region, the Surat Diamond Bourse will be spread across 35.5 acres of land, with a total built up area of 620,000 square metres, making it the single largest office building in the world. It will consist of 4,500 offices varying in sizes from 28 square metres to 7000 square metres, thus resulting in affordable spaces for all.
Given the scale of the development, the primary challenge was to enable easy navigation for large volumes of people within the trading-time constraints. In response, multiple vertical circulation nodes such as staircases and elevators will be placed across each floor within one minute walking distances ofeach other. This will enable over 65,000 people daily to reach their respective offices in under seven minutes from the point of entry into the complex. The strategy employed is one quite similar to that of an airport terminal, resulting in walkable corridors across all 15 floors. The complex will consist of multiple entry and exit points along the edge of the site to distribute peak hour traffic and enhance accessibility.
Furthermore, separate entrances for services and customs will aid in reducing traffic congestion and ensure smooth vehicular movement of approximately 10,000 vehicles each day. The design of the bourse will also enhance spatial and transitional experience for the users across the building without highlighting the expanse of the structure.
The central axis connecting all the offices is designed as an interactive hub comprising of break-out spaces, green atriums and a host of visual experiences. These spaces have been designed to foster social cohesion and community engagement.
Surat Diamond Bourse is the shared vision of a community to make Surat the world's largest diamond industry hub. It aims to be an exemplar for integrating high density architecture along with sustainable design. The bourse shall form the heart of the central business district and act as an incubator by attracting regional development with allied civic amenities such as hospitals, sports complexes, five star hotels, convention centres and educational institutes. It is also estimated to provide employment opportunities to lakhs of people and generate tourism in the area, thus boosting the economy of the region.
For thousands of diamond traders, a new bourse in Surat promises to add to the shine
India's $23 billion diamond industry accounts for over one-third of its gems and jewellery trade, making up seven percent of the country's Gross Domestic Product (GDP). India's exports of cut and polished diamonds, gold jewellery, and gem stones, are predicted to grow 10 per cent year-on-year in FY19 according to the Gems and Jewellery Export Promotion Council (GJEPC). The diamond is quite literally the 'crown jewel' of all gemstones. Close to 90% of the worlds diamonds pass through Gujarat for polishing, making the Indian state a pivotal member of the diamond supply chain.
The diamond industry of India traces its roots to the 1960s when some entrepreneurs belonging to the Patel community of Saurashtra began importing rough diamonds, which were then polished and exported. Post the 1980s, the industry grew rapidly due to close proximity to the financial capital, Mumbai, and eventually resulted in the emergence of many such business communities from Saurashtra and Gujarat that helped the diamond industry of Surat prosper. The market-oriented economic reforms in 1990s gave rise to a new middle class that started buying diamond jewellery alongside traditional gold jewellery. The diamond industry further benefitted from this new and growing consumer base - its own local community.
Today, India gives shine to 75% of the rough diamonds sold globally, with Surat being the capital of this trade. Over 90% of the world's diamond pieces are cut in Surat, contributing to about 80% of the Indian annual diamond export. The industry also employs more than seven lakh people with the majority of them based in Surat.
However, the Bharat Diamond Bourse (BDB), located in Bandra Kurla Complex, Mumbai, serves as the sole diamond trading hub for India. Spread over a 20-acre plot, the complex is home to 2,500 small and large diamond traders in addition to the custom house, banks, and other service providers.
Most of the traders and merchants conduct business from the BDB. Diamond merchants from Surat travel to Mumbai daily to conduct business. In order to reach the BDB, many merchants take the early morning train from Surat and return late into the night after a hard day's work, leaving them with no time for familial and societal commitments. Whilst Surat is well-known for its diamond manufacturing sector and is home to many of the largest polishing factories, the city does not have a well-structured trading base.
These challenges prompted various diamantaires to establish a new bourse in Surat. The new international diamond bourse in Surat will eclipse the diamond exchanges in Mumbai, Israel, and Belgium in terms of scale and activity, enabling the currently fragmented and unorganised diamond trading and polishing industry in India to organise itself in one place.
The Surat Diamond Bourse is also set to reduce the travel time for the merchants and provide them with affordable office spaces, thus addressing the daily problems of many small and medium level merchants who are often seen trading in the open landscaped courts and the corridors of the BDB. It will allow them to deal directly with their buyers by bringing all activities of cutting, polishing, manufacturing, and trading under one roof.
This project is currently under construction on the National Highway in Surat, amidst the DREAM City (Diamond Research and Mercantile City) - an upcoming business district comprising of offices, residential areas and allied facilities. With an eye on providing a facilitating business environment to complement the diamond industry of the region, the Surat Diamond Bourse will be spread across 35.5 acres of land, with a total built up area of 620,000 square metres, making it the single largest office building in the world. It will consist of 4,500 offices varying in sizes from 28 square metres to 7000 square metres, thus resulting in affordable spaces for all.
Given the scale of the development, the primary challenge was to enable easy navigation for large volumes of people within the trading-time constraints. In response, multiple vertical circulation nodes such as staircases and elevators will be placed across each floor within one minute walking distances ofeach other. This will enable over 65,000 people daily to reach their respective offices in under seven minutes from the point of entry into the complex. The strategy employed is one quite similar to that of an airport terminal, resulting in walkable corridors across all 15 floors. The complex will consist of multiple entry and exit points along the edge of the site to distribute peak hour traffic and enhance accessibility.
Furthermore, separate entrances for services and customs will aid in reducing traffic congestion and ensure smooth vehicular movement of approximately 10,000 vehicles each day. The design of the bourse will also enhance spatial and transitional experience for the users across the building without highlighting the expanse of the structure.
The central axis connecting all the offices is designed as an interactive hub comprising of break-out spaces, green atriums and a host of visual experiences. These spaces have been designed to foster social cohesion and community engagement.
Surat Diamond Bourse is the shared vision of a community to make Surat the world's largest diamond industry hub. It aims to be an exemplar for integrating high density architecture along with sustainable design. The bourse shall form the heart of the central business district and act as an incubator by attracting regional development with allied civic amenities such as hospitals, sports complexes, five star hotels, convention centres and educational institutes. It is also estimated to provide employment opportunities to lakhs of people and generate tourism in the area, thus boosting the economy of the region.
For thousands of diamond traders, a new bourse in Surat promises to add to the shine
Packaged food market crosses Rs 5 trn as users switch to branded items
Packaged food market crosses Rs 5 trn as users switch to branded items
Packaged food market crosses Rs 5 trn as users switch to branded items
India's current account deficit narrows to 2.5% of GDP, fiscal deficit widens
India’s external risks showed signs of waning with the current account deficit (CAD) narrowing to 2.5% of gross domestic product (GDP) sequentially in the December quarter (Q3), even as domestic risks increased with the fiscal deficit in the 11 months to February touching 134% of the budgeted target, according to official data released on Friday.
India’s balance of payment eased mainly on account of falling oil prices, while lower-than-expected tax collections and continuing government spending were responsible for the widening fiscal deficit.
However, while releasing the borrowing programme for the first half (April-September) on Friday, economic affairs secretary Subhash Chandra Garg said the government is sticking to its fiscal deficit target of 3.4% in 2018-19 and 2019-20.
The Reserve Bank of India’s monetary policy committee will release its monetary policy statement on 4 April in which it is widely expected to cut interest rates for the second consecutive time, given mounting growth concerns even as inflation remains well within its ceiling.
GDP growth for fiscal year (FY) 2018-19 is projected to be 7%, which is a drop from 7.2% in FY18, the figure having moved up earlier on account of the revision in the statistical series.
During the first half of 2019-20, the government will borrow 62.3% of its full-year borrowing plan at $4.42 billion, at the rate of ₹17,000 crore per week. Though the net borrowing programme for 2019-20 is similar to last year’s level at ₹4.48 trillion, gross borrowing is at ₹7.1 trillion because of higher repayment obligations in the next fiscal year.
Garg said the lower-than-estimated tax collections are a result of the developments that tend to take place in the last month of the fiscal. “You receive a lot of the direct taxes and larger indirect taxes. So the last month always changes the equation," he said.
While the revised net direct tax collection target for 2018-19 is ₹14.84 trillion, the government has been able to collect only ₹10.9 trillion till February, leaving a whopping ₹3.94 trillion to be collected in March. As this is an election year, there may not be much scope for expenditure cuts in the last month of the fiscal, though the total expenditure is still 81.5% of the full-year target in the first 11 months, against 83% during the same period a year ago.
However, the government has crossed the disinvestment target this fiscal with the state-owned Power Finance Corp. Ltd finalizing a deal to acquire a majority stake in REC Ltd for ₹14,500 crore. “As against a target of ₹80,000 crore for disinvestment for the current year, the divestment receipts have touched ₹85,000 crore today," finance minister Arun Jaitley said in a tweet on 23 March. The disinvestment target for FY20 is ₹90,000 crore.
Devendra Kumar Pant, chief economist at India Ratings and Research (Fitch Group), said over-achievement of disinvestment will provide some buffer to the government. “However, the slow pace of tax collection would keep pressure on the fiscal deficit. A higher GDP number than the one used in the budget will help the government inch closer to FY19 fiscal deficit of 3.4% of GDP," he said.
With oil prices receding from their peak, CAD declined to 2.5% of GDP in December from 2.9% of GDP in the September quarter. However, it increased to 2.6% of GDP during the April-December period from 1.8% during the same period in the previous year.
India’s trade deficit increased to $145.3 billion in April-December 2018 from $118.4 billion in April-December 2017. While net FDI inflows in April-December 2018 increased to $24.8 billion from $23.9 billion in April-December 2017, portfolio investment recorded a net outflow of $11.9 billion in April-December 2018, against an inflow of $19.8 billion a year ago.
Madan Sabnavis, chief economist at Care Ratings, said the CAD is expected to moderate further in Q4 with the trade deficit also coming down post the decline in crude oil prices in global markets.
India's current account deficit narrows to 2.5% of GDP, fiscal deficit widens
India’s external risks showed signs of waning with the current account deficit (CAD) narrowing to 2.5% of gross domestic product (GDP) sequentially in the December quarter (Q3), even as domestic risks increased with the fiscal deficit in the 11 months to February touching 134% of the budgeted target, according to official data released on Friday.
India’s balance of payment eased mainly on account of falling oil prices, while lower-than-expected tax collections and continuing government spending were responsible for the widening fiscal deficit.
However, while releasing the borrowing programme for the first half (April-September) on Friday, economic affairs secretary Subhash Chandra Garg said the government is sticking to its fiscal deficit target of 3.4% in 2018-19 and 2019-20.
The Reserve Bank of India’s monetary policy committee will release its monetary policy statement on 4 April in which it is widely expected to cut interest rates for the second consecutive time, given mounting growth concerns even as inflation remains well within its ceiling.
GDP growth for fiscal year (FY) 2018-19 is projected to be 7%, which is a drop from 7.2% in FY18, the figure having moved up earlier on account of the revision in the statistical series.
During the first half of 2019-20, the government will borrow 62.3% of its full-year borrowing plan at $4.42 billion, at the rate of ₹17,000 crore per week. Though the net borrowing programme for 2019-20 is similar to last year’s level at ₹4.48 trillion, gross borrowing is at ₹7.1 trillion because of higher repayment obligations in the next fiscal year.
Garg said the lower-than-estimated tax collections are a result of the developments that tend to take place in the last month of the fiscal. “You receive a lot of the direct taxes and larger indirect taxes. So the last month always changes the equation," he said.
While the revised net direct tax collection target for 2018-19 is ₹14.84 trillion, the government has been able to collect only ₹10.9 trillion till February, leaving a whopping ₹3.94 trillion to be collected in March. As this is an election year, there may not be much scope for expenditure cuts in the last month of the fiscal, though the total expenditure is still 81.5% of the full-year target in the first 11 months, against 83% during the same period a year ago.
However, the government has crossed the disinvestment target this fiscal with the state-owned Power Finance Corp. Ltd finalizing a deal to acquire a majority stake in REC Ltd for ₹14,500 crore. “As against a target of ₹80,000 crore for disinvestment for the current year, the divestment receipts have touched ₹85,000 crore today," finance minister Arun Jaitley said in a tweet on 23 March. The disinvestment target for FY20 is ₹90,000 crore.
Devendra Kumar Pant, chief economist at India Ratings and Research (Fitch Group), said over-achievement of disinvestment will provide some buffer to the government. “However, the slow pace of tax collection would keep pressure on the fiscal deficit. A higher GDP number than the one used in the budget will help the government inch closer to FY19 fiscal deficit of 3.4% of GDP," he said.
With oil prices receding from their peak, CAD declined to 2.5% of GDP in December from 2.9% of GDP in the September quarter. However, it increased to 2.6% of GDP during the April-December period from 1.8% during the same period in the previous year.
India’s trade deficit increased to $145.3 billion in April-December 2018 from $118.4 billion in April-December 2017. While net FDI inflows in April-December 2018 increased to $24.8 billion from $23.9 billion in April-December 2017, portfolio investment recorded a net outflow of $11.9 billion in April-December 2018, against an inflow of $19.8 billion a year ago.
Madan Sabnavis, chief economist at Care Ratings, said the CAD is expected to moderate further in Q4 with the trade deficit also coming down post the decline in crude oil prices in global markets.
India's current account deficit narrows to 2.5% of GDP, fiscal deficit widens
Plenty of misinformation going on to make it an issue for congress. Employment in government jobs is dwindling which affects younger generations of job seekers and provide them perfect excuse to hide the unemployability of them being said that the govt has lost complete grip on recruitment process too, almost every recruitment drive is delayed indefinitely due to court cases and a blind eye to fix accountability has made the matters worst.
Employment data collecting is not up to the mark right from the independence but this govt has worked exceptionally hard to create an impression of job crises for sure by destroying whatever broken system we had. They deserve much more bad press than being given to them, should be hammered on this.
yes
so many congress MPs got unemployed
on a serious note -
there is no data collected for this to say one way or the other
there is also less data on self employed sector which has grown a lot since past few years (startup growth was very high in past few years)
New industrial policy ready, next govt to announce it: Suresh Prabhu
Commerce and Industry Minister Suresh Prabhu Thursday said the proposed new industrial policy has been finalised and the new government would announce that.
"We have finalised the industry policy. I am sure that the new government will announce that soon," Prabhu said here at CII's Annual session 2019.
Though the ministry has sent the final proposal of the policy to the Cabinet, but it was not taken up for consideration.
It aims at promoting emerging sectors and modernising existing industries. It will also look to reduce regulatory hurdles, cut paper work and support emerging and new sectors.
The ministry has planned to set up an elaborate machinery including a steering committee for effective implementation of the policy.
This will be the third industrial policy after the ones released in 1956 and 1991. It will replace the industrial policy of 1991 which was prepared in the backdrop of the balance of payment crisis.
Talking about increasing foreign direct investment (FDI) into India, he emphasised on the need to have a proper
strategy to attract overseas inflows in greenfield as well as brownfield projects.
"We are trying to bring in more FDI. FDI will come either in greenfield area or it could be through acquisition. So, we must prepare a strategy on both... We should target those companies that can invest because they have investable surplus and same time, we must have a matching sectoral strategy wherein inbound investments can be absorbed," he said.
FDI in India during April-December 2018 declined by 7 per cent to USD 33.5 billion.
He also listed out steps which the ministry has taken to boost exports and further improve ease of doing business
particularly as district level.
He said that in 2018-19, India's exports of goods and services would touch about USD 540 billion.
The country's exports grew 8.85 per cent to USD 298.47 billion during the April-February period of the current financial year.
Further, he added that thousands of start-ups have been recognised by the ministry and it is also working on removing hurdles in their path to promote budding entrepreneurs.
Talking about free trade agreements (FTAs), Prabhu said the ministry is in the process of preparing a template to negotiate future agreements by involving all concerned stakeholders.
Industry has raised concern that FTAs which was signed by India is not benefitting domestic players.
On a question that ease of doing business is not visible on the ground, the minister said they are working at district levels to improve business environment.
New industrial policy ready, next govt to announce it: Suresh Prabhu
Commerce and Industry Minister Suresh Prabhu Thursday said the proposed new industrial policy has been finalised and the new government would announce that.
"We have finalised the industry policy. I am sure that the new government will announce that soon," Prabhu said here at CII's Annual session 2019.
Though the ministry has sent the final proposal of the policy to the Cabinet, but it was not taken up for consideration.
It aims at promoting emerging sectors and modernising existing industries. It will also look to reduce regulatory hurdles, cut paper work and support emerging and new sectors.
The ministry has planned to set up an elaborate machinery including a steering committee for effective implementation of the policy.
This will be the third industrial policy after the ones released in 1956 and 1991. It will replace the industrial policy of 1991 which was prepared in the backdrop of the balance of payment crisis.
Talking about increasing foreign direct investment (FDI) into India, he emphasised on the need to have a proper
strategy to attract overseas inflows in greenfield as well as brownfield projects.
"We are trying to bring in more FDI. FDI will come either in greenfield area or it could be through acquisition. So, we must prepare a strategy on both... We should target those companies that can invest because they have investable surplus and same time, we must have a matching sectoral strategy wherein inbound investments can be absorbed," he said.
FDI in India during April-December 2018 declined by 7 per cent to USD 33.5 billion.
He also listed out steps which the ministry has taken to boost exports and further improve ease of doing business
particularly as district level.
He said that in 2018-19, India's exports of goods and services would touch about USD 540 billion.
The country's exports grew 8.85 per cent to USD 298.47 billion during the April-February period of the current financial year.
Further, he added that thousands of start-ups have been recognised by the ministry and it is also working on removing hurdles in their path to promote budding entrepreneurs.
Talking about free trade agreements (FTAs), Prabhu said the ministry is in the process of preparing a template to negotiate future agreements by involving all concerned stakeholders.
Industry has raised concern that FTAs which was signed by India is not benefitting domestic players.
On a question that ease of doing business is not visible on the ground, the minister said they are working at district levels to improve business environment.
New industrial policy ready, next govt to announce it: Suresh Prabhu
India’s GDP to touch $10 trillion, become third largest economy by 2030, says Jaitley
By: PTI | Updated: April 6, 2019 7:50 PM
Currently, the size of the Indian economy is about USD 2.9 trillion, he said.
Finance Minister Arun Jaitley
Finance Minister Arun Jaitley on Saturday said India is expected to become the third largest economy in the world by 2030 with GDP touching USD 10 trillion, helped by consumption and investment growth. Currently, the size of the Indian economy is about USD 2.9 trillion, he said while addressing students of the Shri Ram College of Commerce here.
“We keep oscillating between fifth and the sixth largest economy, depending on the dollar rate. As we look at the years ahead, we would be USD 5 trillion by 2024 and USD 10 trillion by 2030 or 2031. “That’s when we will be amongst first three – US, China and India and then of course, we would in the rat race of the big three wanting to catch up with much mightier competitors. So the sheer size and opportunities is going to expand,” he said.
Talking about avenues of growth for the next 20 years, the finance minister listed infrastructure creation, rural expansion and gender parity, among others. Jaitley, himself an alumnus of the college, said the 2011 Census showed that 21.9 per cent of India’s population lived below the poverty line (BPL) and with the present rate of growth, this might have further reduced to 17 per cent today. It should shrink to 15 per cent by 2021 and further down to single digits by 2024-25, he said. At the same time, the middle class population would increase to 44 per cent from 29 per cent in 2015, he said citing a study.
“Therefore as you look ahead you would see poverty deplete, you will see an exponential growth of middle class and probably by 2030 almost half of India would be in that category (middle class),” he said. “Going by the data, the size of India middle class would be four times the size of BPL when 2024 general elections takes place and therefore we have to see (whether) public discourse is still behind the curve or it takes the curve further,” he said. So, consumption will get a boost with rising number of middle class, he said, adding that infrastructure creation, both rural and urban, would also help accelerate the growth process. He also said some sectors like infrastructure and railways need further fillip.
India’s GDP to touch $10 trillion, become third largest economy by 2030, says Jaitley
By: PTI | Updated: April 6, 2019 7:50 PM
Currently, the size of the Indian economy is about USD 2.9 trillion, he said.
Finance Minister Arun Jaitley on Saturday said India is expected to become the third largest economy in the world by 2030 with GDP touching USD 10 trillion, helped by consumption and investment growth. Currently, the size of the Indian economy is about USD 2.9 trillion, he said while addressing students of the Shri Ram College of Commerce here.
“We keep oscillating between fifth and the sixth largest economy, depending on the dollar rate. As we look at the years ahead, we would be USD 5 trillion by 2024 and USD 10 trillion by 2030 or 2031. “That’s when we will be amongst first three – US, China and India and then of course, we would in the rat race of the big three wanting to catch up with much mightier competitors. So the sheer size and opportunities is going to expand,” he said.
Talking about avenues of growth for the next 20 years, the finance minister listed infrastructure creation, rural expansion and gender parity, among others. Jaitley, himself an alumnus of the college, said the 2011 Census showed that 21.9 per cent of India’s population lived below the poverty line (BPL) and with the present rate of growth, this might have further reduced to 17 per cent today. It should shrink to 15 per cent by 2021 and further down to single digits by 2024-25, he said. At the same time, the middle class population would increase to 44 per cent from 29 per cent in 2015, he said citing a study.
“Therefore as you look ahead you would see poverty deplete, you will see an exponential growth of middle class and probably by 2030 almost half of India would be in that category (middle class),” he said. “Going by the data, the size of India middle class would be four times the size of BPL when 2024 general elections takes place and therefore we have to see (whether) public discourse is still behind the curve or it takes the curve further,” he said. So, consumption will get a boost with rising number of middle class, he said, adding that infrastructure creation, both rural and urban, would also help accelerate the growth process. He also said some sectors like infrastructure and railways need further fillip.
India’s GDP to touch $10 trillion, become third largest economy by 2030, says Jaitley
Statue of Unity continues to generate revenue and attract tourists; these many crore earned from lakhs of visitors in just three months
By: Tarun Bhardwaj | Published: February 12, 2019 10:24 PM
The Statue of Unity is located in Gujarat's Narmada district near Kevadiya town and is erected at 3.2 kilometers downstream from the Sardar Sarovar Dam.
According to media reports, there are plans to start Seaplane services to the Statue of Unity from Ahmedabad.
The towering Statue of Unity, which is also the world’s highest at 182-meters, is generating revenue from the unprecedented arrival of tourists in the last three months since its inauguration on October 31, 2018. The Statue, located in Gujarat’s Narmada district near Kevadiya town is erected at 3.2 kilometer distance downstream from the Sardar Sarovar Dam. Bharatiya Janata Party Member of Parliament Varun Gandhi asked the government regarding development in “the area around the Statue to increase employment and tourism in the surrounding area.”
In his written reply, Union tourism minister KJ Alphons informed the house (Lok Sabha) that the “revenue generated from visitors to Statue of Unity from November, 2018 to January, 2019 is Rs.19.47 crore,” and “the number of tourists who visited the Statue of Unity at Kevadia in three months from November, 2018 to January, 2019 was 7,81,349 as against yearly average of 8,22,009 tourists visiting Sardar Sarovar Dam at Kevadia in the last five years” which means the number of tourist coming to the Statue of Unity in just three months is close to the average number of tourists visiting Sardar Sarovar Dam in one year.
Also Read | Statue of Unity: Seven unique features of the world’s tallest statue project you must know
Informing about the development work taking place around the Statue of Unity area, Alphons informed that the ministry has decided “to develop tourism related activities in the area such as Jungle Safari, Amusement Park, Adventure & Eco-tourism Park, Children’s Nutrition Park, Boating from Shreshtha Bharat Bhavan to Statue of Unity, Food Court & Mirror Maze and Cactus Garden.”
According to media reports, there are plans to start Seaplane services to the Statue of Unity from Ahmedabad. “At the moment, technical studies to start the services are underway. Once technical feasibilities are given a green light, we will go ahead with the project,” Gujarat Tourism Managing Director Jenu Devan told The Indian Express.
Last month international kitefliers visited the Statue of Unity site for the International Kite Festival celebrated during Makar Sankranti or Uttarayan in Gujarat.
Statue of Unity continues to generate revenue and attract tourists; these many crore earned from lakhs of visitors in just three months
By: Tarun Bhardwaj | Published: February 12, 2019 10:24 PM
The Statue of Unity is located in Gujarat's Narmada district near Kevadiya town and is erected at 3.2 kilometers downstream from the Sardar Sarovar Dam.
The towering Statue of Unity, which is also the world’s highest at 182-meters, is generating revenue from the unprecedented arrival of tourists in the last three months since its inauguration on October 31, 2018. The Statue, located in Gujarat’s Narmada district near Kevadiya town is erected at 3.2 kilometer distance downstream from the Sardar Sarovar Dam. Bharatiya Janata Party Member of Parliament Varun Gandhi asked the government regarding development in “the area around the Statue to increase employment and tourism in the surrounding area.”
In his written reply, Union tourism minister KJ Alphons informed the house (Lok Sabha) that the “revenue generated from visitors to Statue of Unity from November, 2018 to January, 2019 is Rs.19.47 crore,” and “the number of tourists who visited the Statue of Unity at Kevadia in three months from November, 2018 to January, 2019 was 7,81,349 as against yearly average of 8,22,009 tourists visiting Sardar Sarovar Dam at Kevadia in the last five years” which means the number of tourist coming to the Statue of Unity in just three months is close to the average number of tourists visiting Sardar Sarovar Dam in one year.
Also Read | Statue of Unity: Seven unique features of the world’s tallest statue project you must know
Informing about the development work taking place around the Statue of Unity area, Alphons informed that the ministry has decided “to develop tourism related activities in the area such as Jungle Safari, Amusement Park, Adventure & Eco-tourism Park, Children’s Nutrition Park, Boating from Shreshtha Bharat Bhavan to Statue of Unity, Food Court & Mirror Maze and Cactus Garden.”
According to media reports, there are plans to start Seaplane services to the Statue of Unity from Ahmedabad. “At the moment, technical studies to start the services are underway. Once technical feasibilities are given a green light, we will go ahead with the project,” Gujarat Tourism Managing Director Jenu Devan told The Indian Express.
Last month international kitefliers visited the Statue of Unity site for the International Kite Festival celebrated during Makar Sankranti or Uttarayan in Gujarat.
Statue of Unity continues to generate revenue and attract tourists; these many crore earned from lakhs of visitors in just three months