Sectors 16 Jan 2016 by Tojo Jose

Prime Minister rocks startups with funds and incentives

Prime Minister rocks startups with funds and incentives

Prime Minister’s much anticipated startup package was unveiled today with infusion of government funding, tax exemptions and freeing the sector from regulatory hassles. The progaramme also witnessed interaction between titans in the startup sector including the Softbank President Matayoshi Son and several others and large number of Indian startup entrepreneurs. Arranging a unique platform for startup promotion programmes indicated the importance that the government is extending to the sector. Prime Minister has declared Rs 10000 crore fund for the promotion of the sector. Besides the fund allocation, PM has also settled the capital gains tax imposed on startup investment b

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Macro Economy 15 Jan 2016 by Tojo Jose

Budget 2016: DBT extension to food and kerosene subsidies will reduce subsidy bill

Budget 2016: DBT extension to food and kerosene subsidies will reduce subsidy bill

The Direct Benefit Transfer may emerge as a budget hero in as the government aims to extend it to largest subsidy item – food subsidy in the next budget. Along with food, linking kerosene subsidy with DBT is in the time table of the government. Ground works are completed for providing kerosene subsidies through DBT. Food subsidy is the largest subsidy item for the centre with nearly Rs 1.24 lakh crore outlays out of the 2.43 crore total subsidy expenditure in the last budget. According to officials, delivering food subsidy through DBT will save around Rs 25000 crore. In the same way, extending kerosene through DBT may save another ten thousand crores. For the DBT extensio

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Sectors 14 Jan 2016 by Tojo Jose

Government launches new crop insurance scheme with improved features

Government launches new crop insurance scheme with improved features

Government has launched a new crop insurance scheme - Pradhan Mantri Fasal Bima Yojana with considerable improvement over the existing National Agriculture Insurance Scheme. The new scheme has a number of added features which may make agricultural insurance popular among the farmers besides extending more protection to them against calamities. Following are the main features of the Pradhan Mantri Fasal Bima Yojana: There is reduced premium for crop insurance: for Rabi crops 1.5%, Kharif crops 2% and for commercial/horticultural crops 5%. (Under NAIS, there was a cap on coverage implying that farmer can get only a fraction of the losses.) No cap on Premium: under the new scheme,

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Macro Economy 13 Jan 2016 by Tojo Jose

Retail inflation rises to become a macroeconomic disturbance

Retail inflation rises to become a macroeconomic disturbance

When the global economy is going through a period of turbulence, India’s domestic economy has got a shock of the conventional type- return of inflation to the unsustainable level.   Latest inflation data from CSO for the month of December 2015 indicate that inflation has edged up to 5.61% from 5.41% in November. Another negative trend is the contraction of industrial output during November 2015 by 3.2%. The IIP trend gives a caution to the government while realizing the 7.5% GDP growth target. The index has registered 9.8 % growth in the previous month. This is the first time in 13 months that the IIP is registering a contraction. Main reason for the decline in indust

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Infrastructure 11 Jan 2016 by Tojo Jose

Private sector participation in defence sector: Committee to make recommendations this week

Private sector participation in defence sector: Committee to make recommendations this week

Make in India initiative in the defence sector will get a clear policy direction with the forthcoming recommendations of VK Arte Committee. The Committee chaired by Arte, who was the former DRDO chief, will submit its report to the Defence Ministry, defining the level of participation of domestic private sector players in defence sector. It is expected that Arte’s suggestions will also include specifications to the government’s defence procurement from the private sector. Defence manufacturing has emerged a vulnerable area of the country’s manufacturing as huge amount of money is spent on imports. Efforts to get at least 30% imported products being produced wit

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Infrastructure 31 Dec 2015 by Tojo Jose

Biotechnology Development Strategy targets $100bn industry by 2025

Biotechnology Development Strategy targets $100bn industry by 2025

Government brought out the National Biotechnology Development Strategy (2015-20), setting policies and goals for consolidating the country’s achievements in the sector; aiming to develop the sector into a $100 billion industry by 2025. The Strategy was unveiled by Dr Harsh Vardhan, Minister for Science & Technology and Earth Sciences, and YS Chowdary, Minister of State for Science & Technology and Earth Sciences, in the presence of Dr VijayRaghavan, Secretary, Department of Biotechnology and many other persons related with the sector. The policy was crafted in the context of rising importance of the sector globally in different areas. One such trend is the emergenc

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Infrastructure 29 Dec 2015 by Tojo Jose

Kelkar Panel recommends comprehensive restructuring to revive the PPP model

Kelkar Panel recommends comprehensive restructuring to revive the PPP model

The Finance Ministry appointed Vijay Kelkar Committee on revisiting PPP model in infrastructure (Committee on Revisiting and Revitalizing Public Private Partnership Model of Infrastructure) has made several far reaching recommendations for the restructuring of the PPP model. A notable element throughout the findings of the committee was that it has put tremendous confidence in the capability of the PPP model in fulfilling the country’s infrastructure demands at this high growth phase. Kelkar Committee’s remedies were anxiously awaited by the government and infrastructure sector players as the PPP model was jammed into a standstill because of many legal issues related

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Infrastructure 28 Dec 2015 by Tojo Jose

Government to implement hybrid annuity model for most of the PPP road projects in the next year

Government to implement hybrid annuity model for most of the PPP road projects in the next year

Road projects in the country are going to get a mega push with the government planning to go for the new Hybrid Annuity Model (HAM) to make the PPP model more effective. PPP model in road projects was on the verge of failure because of large number of delaying factors. Stalled projects have already added to NPA risks of the banks as the private builders are mostly financed by banks. The HAM is expected to provide rejuvenation to participation of private players in road projects. According to the Ministry, projects worth Rs 50,000 crore are to be awarded under Public-Private Partnership mode in 2016-17. This is the largest yearly target for any year. Besides, most of the projects

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Macro Economy 27 Dec 2015 by Tojo Jose

Government to launch an Action Plan for Start-ups

Government to launch an Action Plan for Start-ups

Indicating more concreted measures for the country’s flourishing startup ventures, Prime Minister Narendra Modi declared that the government will unveil an Action Plan – ‘Start –up India, Stand-up India’. The Prime Minister said that the programme will be designed to suit Indian conditions. Besides, focus would be made for ensuring benefits for the youth from the lowest strata of the society.  The effort is expected to give boost to his Independence Day speech last August where he envisaged the Action Plan. As per the indications by the PM, the Plan may widen the present startup ecosystem by including educators and institutions. “A struc

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Macro Economy 25 Dec 2015 by Tojo Jose

PM Modi to make a surprise visit to Lahore on Navas Sharif’s birthday

PM Modi to make a surprise visit to Lahore on Navas Sharif’s birthday

There will not be a more surprising Chapter in PM Narendra Modi’s foreign visits as his surprise Lahore stay to have a friendly engagement with Prime Minister Navas Sharif. Once more the roads of Lahore will welcome the Prime Minister of the Largest Democracy. People of both countries have started to forget the 1999 Lahore Declaration where Indian and Pakistani leaders signed a friendship treaty. The two Prime Ministers- Atal Bihari Vajpayee and Navas Shariff, both born on Christmas days were the architects of it; though many adverse factors later worked against it as usual. Modi’s surprise visit to Lahore in his return journey from Afghanistan indeed makes him a diff

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