India and South Korea have upgraded the economic content of their bilateral relationship as the East Asian country has offered $10 bn in India’s infrastructure expansion effort. Both sides also decided to advance their Double Taxation Avoidance Agreement (DTA) to encourage investment efforts. In his third and last destination of the current visit, after China and Mongolia, the Prime Minister has engaged in wide range of talks extending from security to cultural exchanges. But of all, South Korea’s participation in India’s infrastructure development efforts has substance. Especially, after Japan and Chinese participation, the rising East Asian country&rsquo
China & East Asia
China has revealed a very impactful ‘Made in China 2025 Plan’ to upgrade its manufacturing competence to that of the industrialized countries. The plan is a new strategy from the Chinese leadership to provide technological superiority to the Chinese economy. According to the official media, the new plan is a guide to make the country a manufacturing super power. Chinese state council communiqué has elaborated different features of the Plan. Innovation oriented, high end manufacturing is stressed. The policy calls for making intelligent manufacturing with the help of innovation. At present China has the largest number of patent applications from 2013 onwards.
Chinese President Xi Jinping has announced massive regional cooperation plans for Asia at Boao in the Hainan Province in South East China. Boao is the Asian equavalent of the annual Davos World Economic Forum in Switzerland. The Boao announcement is remarkable given the recent Chinese efforts to reach to the rest of the world with its ‘One Belt One Road’ programme and the new AIIB. The plans made at the inauguration of the Boao Forum on Saturday and thrusts upon the above two pillars of its engagement with the rest of the world. This years’ theme is ‘Asia's New Future: Towards a Community of Common Destiny’, under which President Xi has an
Australia, UK, New Zealand… the list of countries from the US led western alliance joining the China sponsored AIIB is increasing. France, Germany and Italy have already expressed their willingness to join the Beijing based entity Decision of Britain to join the AIIB has alarmed the US and an open displeasure of Washington on the matter produced verbal retaliation from official Beijing media. Asian Infrastructure and Investment Bank was formed in October 2014 by twenty one countries including India. The AIIB is widely perceived as an institution which is going to replace the Brettonwoods institutions – IMF and World Bank. Already, the Chinese led AIIB is making deep
China’s mega project – the ‘One belt one road policy’ is slowly starting to work. Russia which is increasingly alienated from the west on the Ukraine issue is closing in more with Beijing for energy cooperation. Last May, President Putin has signed a $400 bn gas deal with China. Latest developments shows increased Chinese investment in the project which aims to bring huge gas reserves of Russian Siberia to the energy thirsty Chinese industrial belts. The "One Belt and One Road" initiative was officially approved by the Chinese leadership and has got much momentum with in the recent party congress. The policy aims to build road, rail construction and s
China has overtaken the United States as the largest oil importer; an event which may dramatically change world’s geopolitics. The Energy Information Administration has reported in early March that the US crude import has come down to 5.98 million barrels a day. This is the lowest import figure since 1996 for the US. On the other, China’s oil imports increased to 6.12 million barrels a day. China’s ride into the throne of leading energy importer also may give it the right to play a more active role in global oil politics. Ensuring uninterrupted supply of oil is a political and to an extent military exercise.
A major development since the beginning of the current year is the devaluation of currencies made by big trading countries like Japan and the UK. These countries have comfortably enjoyed trade surplus and prosperity historically. But the post- crisis period shows reversal of the situation for them on the trade front. Poor export turnover has also lead to poor economic performance. Now these countries are deploying the weapon of devaluation, which was traditionally used by poor countries to augment their export. Japan’s devaluation attempt is driven by its mounting trade deficit. The co
“If we fail to handle corruption well, it will result in the fall of the communist party and the State” -------- Says President Hu As China prepares itself for a leadership change, the clouds of separatism and corruption cumulate over the Communist nation. Four Tibetans in
The People’s Bank of China in three days has poured nearly $58 billion equivalent of Rm into the banking system to ensure adequate money. This is one of the largest in its central banking history given the short span of the time. The Chinese economy was witnessing scarce fund availability indicated by increasing lending rate in the short term money market. Chinese interbank market rate which is synonymous to India’s call money rate has sky rocketed to 4.75%. The People’s bank is following the intra cyclical policy of maintaining high cash reserve ratio to keep bank activities tight. This was necessary to ensure soft landing because of the threat
Chinese Renmninbi is on the launch pad of being a world currency. The efforts by China to convert it into a hard currency substituting the US Dollar may reach a finishing point at the March end scheduled BRICS meeting at New Delhi. China already has adopted a clear stand against the US Dollar as the global currency and suggested that Dollar should be replaced by IMF’s Special Drawing Rights. It is not just the hard currency ambitions that motivate China to provide renmninbi loans to other BRICS countries. The country has a vast foreign exchan
Dictionary on Indian Economy
- Logic of withdrawing Rs 1000 and Rs 500 notes
- Why the GST reform is transformational?
- Raghuram Rajan: The Gladiator returns to Chicago
- 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
- Arvind Subramanian rocks with 'Chakravyuha' in Economic Survey
- Why we need an emergency monetization plan as well?
- NREGS: give respect to the tax payer’s money