Macro Economy 09 Jul 2017 by Tojo Jose

G2o unites against Trump’s Paris retreat

G2o unites against Trump’s Paris retreat

The Hamburg meeting of the G20 has isolated the US President’s anti-climate stand on the Paris Accord. Leaders of the 20 developed and large developing countries who met for twelfth time since its formation in 1999, passed a declaration criticizing the US approach to climate protection. The final communique at Hamburg exposes US isolation: “We take note of the decision of the United States of America to withdraw from the Paris agreement.” Besides the rejection of the US stand on climate protection the communique reassured its stand on Paris: “The leaders of the other G20 members state that the Paris agreement is irreversible.” The US President Donal

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Macro Economy 03 Jul 2017 by Tojo Jose

GST’s customization: India’s own version may test businesses’ adaptability

GST’s customization: India’s own version may test businesses’ adaptability

The GST is considered to be the ultimate tax reform in indirect taxes globally. Several countries have adopted it and those who have unitary financial structure or where there is only one central government, GST launch is rather simple. But in India’s case, the situation is much different. Merging of central and state taxes needed constitutional arrangements and political consensus. Indian conditions are also much different with the business communities consists of largely small and medium enterprises that have several hurdles to establish and manage the GST infrastructure. It doesn’t mean GST is a higher order reform given the capability of the business community. Ra

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Macro Economy 30 Jun 2017 by Tojo Jose

India enters the GST era

India enters the GST era

The Goods and Services Tax (GST)’s life starts on July first as the centre and states decided to merge more than a dozen of their small and big taxes under it.  Now, nearly 70% of the country’s indirect tax revenues are covered under the GST. Importance of the event is well reflected as the Parliament is going to hold a midnight function on its launch. The rare gesture shows the pain and effort taken by the centre and the states to give away their pet taxes since independence while creating the GST. GST is rightly one of the biggest reforms since 1991 New Industrial Policy and the biggest tax reform since independence. It had the conceptual launch in 2000. But it

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Macro Economy 31 May 2017 by Tojo Jose

GDP growth rate falls steep during Q4; as India settles at 7.1% for 2016-17

GDP growth rate falls steep during Q4; as India settles at 7.1% for 2016-17

India’s GDP statistics for the last year shows steep fall in the fourth quarter from January to March 2017. Growth registered an unprecedented slow down to 6.1% during the quarter and thus bringing down overall performance of the year to 7.1% compared to 8% in the previous year. The fall in quarterly growth is attributed to the demonetisation induced negative feedback effects. Statistics about the third quarter that was published earlier has not revealed the same declining trend. According to the Central Statistical Office’s Provisional GDP estimate, the construction sector witnessed contraction during the fourth quarter. The sector registered a contraction of -3.7% c

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Macro Economy 26 Apr 2017 by Tojo Jose

NITI Ayog comes out with a three-year agenda, replicating Planning Commission

NITI Ayog comes out with a three-year agenda, replicating Planning Commission

Country’s macroeconomic policy think tank- the NITI Ayog has finally come out with a daft policy proposal in the form a three-year action agenda for the economy. The draft agenda seems to be a very diluted copycat of the erstwhile Planning Commission’s Five year plans. The agenda includes general themes like doubling farmer’s income by 2022, expanding tax base, shifting additional revenues to the priority sectors, creation of employment, bringing down land prices etc. The agenda was unveiled at a press meeting chaired by NITI’s Vice Chairman Arvind Panagaria. According to institution, the action agenda will be implemented by executive decisions.  Need

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Macro Economy 25 Apr 2017 by Tojo Jose

Centre proposes private players in wholesale market under AMPC amendment

Centre proposes private players in wholesale market under AMPC amendment

The Agricultural Ministry came out with an amended Model APMC Act that brings significant changes in the existing rule proposed in 2003. Fresh changes include several steps to stop fragmentation of agricultural markets by establishing a common fee and licensing for statewide agricultural marketing. The model AMPC also abolishes the earlier concept of notified area that caused fragmentation of the agricultural markets within a state. Centre has already asked States to modify their APMC Acts by introducing a single license and single point of levy of market fee at the State level. Objective is to make a gradual migration towards a single license and single point of levy of market fe

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Macro Economy 22 Mar 2017 by Tojo Jose

India slips in HDI Rank but improves score in the HDR 2016

India slips in HDI Rank but improves score in the HDR 2016

India slipped one position to be placed at 131 rank in the just published Human Development Report 2016. Out of the 188 countries ranked, India’s HDI score improved from 0.615 to 0.624 in 2015, though its rank fell. India’s ranking was 130 last year. The country continues to improve its score among the Medium Human Development Countries. around 45% of the world’s population live under medium Human Development category countries whose HDI score lies between 0.55 to 0.699. The Human Development Report published by the UNDP titled with Human Development for Everyone concentrates on low profile human development in some regions. South Asia is one of the worst perfor

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Macro Economy 07 Mar 2017 by Tojo Jose

Government to make new base year for WPI and IIP

Government to make new base year for WPI and IIP

The Wholesale Price Index (WPI) and Index of Industrial Production (IIP) are to get new base year from April this year. Central Statistical Office (CSO) which is preparing the IIP, hinted that the new base year will be 2011-12. WPI is published by Ministry of Commerce and Industries, prepared monthly and is touching the price data at wholesale level. The IIP is about industrial production and is published on a monthly basis by the CSO. Both indices are having 2004-05 as the base year as of now. Economic environment has changed significantly from the 2004-05 scenario and the CSO was thinking about shifting it to a more recent year as in the case of Consumer Price Index where the b

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Macro Economy 01 Mar 2017 by Tojo Jose

GDP growth survives demonetisation scare; registers 7 % growth during third quarter

GDP growth survives demonetisation scare; registers 7 % growth during third quarter

The Central Statistical Organization’s GDP growth estimate indicate that economic growth rate has not affected much during the December ending third quarter. Gross Domestic Product recorded a growth rate of 7 % during October-December- third quarter against the predicted 7.1 % growth. The data covers toughest fifty-two days of demonetisation period from November 9 onwards. The CSO has revised 2016-17 growth to 7.1% as the last quarter estimate is to be published in two months. Economic growth was 7.9% in 2015-16 and 7.2% during 20114-15. Releasing the data, Chief Statistician TCA Anant said that it is difficult to assess the impact of demonetisation on GDP growth. According

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Macro Economy 01 Feb 2017 by Tojo Jose

Rating agencies are having poor credibility: Government sources

Rating agencies are having poor credibility: Government sources

India’s economic administration continues to unleash heavy attack on the inconsistent rating practices followed by global agencies. Economic Affairs Secretary Shaktikanta Das told agencies that rating agencies are several steps behind from reality.  They are missing something which they only can best explain. The Economic Survey 2017 also questioned the rating history and credibility of global agencies. Despite India continues to be one of the bright spot with stability, rating agencies failed to upgrade the country’s ratings in recent years. At the same time, their rating of several other countries with low macroeconomic conditions continues to be far good. The

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