The US lawmakers have reintroduced a bill seeking pinching restrictions on H1B Visa regime that may reduce opportunities for Indian techies in the US. Election of Donald Trump who vehemently opposed outsourcing has encouraged the law makers to bring the bill again into the Parliament’s consideration. India was one of the biggest beneficiary of the US visa regime as several Indian tech companies were able to recruit talented persons to the US by using it. The Bill makes a comeback after the initial rejection by the US Parliament earlier. Fresh changes are made in the bill proposing a minimum yearly income of $100000 for those who seeks the visa. Such a requirement is expecte
US and Europe
The keenly watched Italian referendum on Prime Minister Matteo Renzi’s constitutional reforms was rejected by the people with a shockingly strong ‘no’ of 60 per cent. Mr Renzi designed big reforms through constitutional measures that may add power to the Prime Minister. He sought public ratification through the referendum. After the failure of the referendum, Mr Renzi is expected to submit resignation soon. Now the question is how far the Italian referendum and the victory for the rightists may trigger such reactions from other European countries that are approaching elections. Economic struggles under the currency union and the soft immigratnt policies by sever
Republican candidate Donad Trump won a historical US election defying most of the predictions. The election is even more important for the rest of the World as it engaged with the increasing divide within the US like the Muslim immigrant issue. The entire election process was engulfed by controversies, religious divisions, ethnic differences and personal attacks. In the Congress also Republicans got control indicating more comfort for the new President. Trumps success was shocking for some, surprising for many and is a thoughtful one for Europe. The way in which he used the prevailing global unrest to win US mind will not go unattended by political leaderships in Europe. Mainstr
On a surprising day in the foreign exchange market, the British Pound sterling – one of the leading hard currency for global transactions, trembled like a third world currency. The Pound lost around 6% in two minutes in Asian trading. Though it recovered later regaining much of the lost value, Pound'’s shocking uncertainty has generated suspicion in the minds of the market participants. During the day, Pound fell from about $1.26 to $1.18 in the space of two minutes though it recovered to $1.24. The British currency had enough woes ever since Britain expressed its willingness to exit EU. Pound, which is included under IMF’s SDR basket has already lost 5% agai
The Apple Corporation was asked by European Commission to pay a record breaking tax and penalty of $13 billion as the EU Commision has found that its tax arrangement in Ireland is illegal. Both Ireland and Apple opposed the penalty and said that they will go for review petition. Apple had paid only negligible tax out of its profits from European sales. The sales in the EU were sourced through Ireland and given the tax arrangement called Double Irish, Apple was able to pay only 0.005% for considerable years. The Commission said Irish tax arrangement with Apple between 1991 and 2015 had allowed the US company to source its European sales to a “head office” that existed
The first test for the new RBI Governor Urjit Patel is on the card. US Fed’ Chairperson Janet Yellen indicated that the Fed is thinking about the rate hike when its Federal Open Market Committee meets next month. The Federal Reserve was long waiting to continue its quantitative easing exit policy by raising its rate (like the repo rate) from it historical low of zero to the normal level. Last December the Fed raised its policy rate to 0.5%. Improvement in the macro economy anchored by increased employment is the criteria for raising the Fed rate. “In light of the continued solid performance of the labor market and our outlook for economic activity and inflation, I be
The US election set to enter into the final phases, both candidates have given enough hints that they are not supporters of the fancied Trans Pacific Partnership (TPP), which the Obama administration portrayed as the US Pivot against the China. Of the two, Trump is more vocal against the free trade arrangement that involve the 11 major friends of the US in the Pacific region including Japan and Australia. In her campaign Hillary Clinton made her traditional opposition against multilateral trade deals - “My message to every worker across America is this: I will stop any trade deal that kills jobs or holds down wages, including the Trans-Pacific Partnership.” Opp
World’s futuristic investor – Japan’s SoftBank announced $32 bn deal to purchase the UK chip designer ARM Holdings. SoftBank which searches for next big company in the digital world is known for its seed capital in the Chinese behemoth Alibaba. ARM is at present most sophisticated chip maker for mobile phones and is supplying processors to major mobile phone manufacturers – Apple, Samsung Huawei etc. SoftBank’s investment in the Cambridge based chipmaker comes when the CEO, Masayoshi Son looking for the emergence of new titans in the digital technology world or in the area of the famed ‘internet of the things’. This is the first inv
The referendum on Britain’s continuation in the EU has produced a close call with early lead indicating Brexit despite forecasts for a marginal win for ‘remain’. Pound has plunged against other major currencies with the news of initial lead for Brexit. Overall, forecasts are that remain vote will consolidate towards the end. Economist have indicated turbulence in financial markets if ‘leave’ wins. Both for Britain and for UK, the leave verdict will cause negative economic outcomes. Already, central bankers and financial sector regulators have deployed stabilizing mechanism so that market remain cushioned in the context of a Brexit vote. In India, th
The Pound Sterling tumbled like a third world currency, financial markets shattered and a government fell on a vote that will restructure economic relations in Europe. Scotland and Northern Ireland interestingly voted to remain in the EU. The fact that Britain dragged the two out of the EU may give more political instability to the Brexit decision. Brexit is more than sentimental in terms of its outcome. Britain has to modify its economic management seriously in this old age. Some of the aging economic problems may be settled through exit, but not most of them. Its ability to raise productivity as seen in the industrial revolution era is difficult to bring back; especially at a ti
Dictionary on Indian Economy
- Logic of withdrawing Rs 1000 and Rs 500 notes
- Raghuram Rajan: The Gladiator returns to Chicago
- Why the GST reform is transformational?
- Good intention but poor thinking - what troubles demonetization?
- India Black Money Report: CBI underestimates black money at Rs 25 lakh crore
- 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
- Why we need an emergency monetization plan as well?
- Arvind Subramanian rocks with 'Chakravyuha' in Economic Survey
- NREGS: give respect to the tax payer’s money