Foreign Investment 24 May 2017 by Tojo

Government offers import tax concessions to Apple for its Bangaluru facility

Government offers import tax concessions to Apple for its Bangaluru facility

World’s largest handset maker - Apple was offered import tax concessions by the central government for its India manufacturing facility. According to reports by Reuters, the Cupertino based phone maker has to increase its domestic component sourcing in a phased manner to avail the tax concession. Apple demanded tax concession of different types ever since the CEO Tim Cook originally made the proposal for handset manufacturing in Asia’s fastest growing handset market. Several of its demands were rejected by the government as such concession will led to similar demand from other firms. Midway, Apple demanded a 15-year tax holiday for all components it would import for t

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Trade 05 Apr 2017 by Tojo Jose

India and UK to Plan FTA post Brexit

India and UK to Plan FTA post Brexit

India and the EU-exiting UK hinted that both countries are going to make their economic engagement deeper after the Brexit. The two countries are planning to reach in a Free-Trade Agreement once UK comes out of the European Union. In a meeting between Finance Minister Arun Jaitely and Britain’s Chancellor Philip Hammond in New Delhi, the two countries decided to set up a fund under National Infrastructure Investment Fund (NIIF) to promote clean energy projects. The fund called Green Growth Equity Fund with a corpus of 240 mn pound will be constituted as a sub- fund within the NIIF. Both countries discussed effort to add tradability to rupee in the international markets and

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Foreign Investment 24 Feb 2017 by Tojo Jose

FDI flows grows by 18%; treaty partners dominate as FDI source for India during 2016

FDI flows grows by 18%; treaty partners dominate as FDI source for India during 2016

Foreign Direct Investment has registered a smart growth of 18% to reach $46 billion during calendar year 2016. According to the data published by Directorate of Industrial Policy and Promotion (DIPP), Foreign Direct Investment was $39.32 billion during 2015. Smart growth in FDI is a good sign for the economy when global FDI flows are declining. According to UNCTAD, FDI flows to India were $42 bn in 2016 whereas that to China was $139 bn. Sectors including services, telecom, trading, computer hardware and software attracted most of the FDI flows. Main sources of FDI were Singapore, Mauritius, the Netherlands and Japan. The first three are known tax concession countries who enjoys

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Foreign Investment 14 Feb 2017 by Tojo Jose

Chinese joins India’s credit rating debate

Chinese joins India’s credit rating debate

India’s economic administrators’ attack on inconsistent credit rating standards of western agencies is now joined by the Chinese media. An article published in the partisan tabloid – the Global Times ‘Why India’s sovereign ratings lag behind China’, describes that foreign companies are correct in giving high ranking to China over India. India’s Economic Survey brought out a box criticizing the methodology of credit rating agencies. Edited by Arvind Subramanian, the Survey made a comparative study of ratings on India and China while concluding that China gets a higher rating despite macro indicators are more or less the same. According to

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Foreign Investment 07 Feb 2017 by Tojo Jose

Post FIPB, Ministries and Sectoral Regulators to approve FDI

Post FIPB, Ministries and Sectoral Regulators to approve FDI

The FDI approvals in future will be examined by the concerned Ministries and sectoral regulators after the abolition of Foreign Investment Promotion Board (FIPB). Finance Minister in his budget speech has indicated winding up of the operations of FIPB as nearly 92% of the FDI proposals are now made through automatic route. The FIPB was created in 1996 as the designated institution for considering FDI proposals that require government approval. It also grants composite approvals involving foreign investment/ foreign technology. End of FIPB also indicate the progress of foreign investment reform as well as depth of opening up of the economy to foreign investors. Still, nearly eight

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Trade 06 Jan 2017 by Tojo Jose

Government to design a new export infrastructure scheme for states

Government to design a new export infrastructure scheme for states

The Union Commerce Ministry is designing a new scheme aimed at supporting export infrastructure in association with state governments so that states can provide better export facilitation services. Commerce Minister Nirmala Sitharaman after the meeting of central and state officials has stressed states’ own efforts to create infrastructure capabilities in export production. The decision about the launch of common export supporting infrastructure scheme was reached at the second meeting of the Council for Trade Development and Promotion on Thursday (January 5th). The new scheme will be known as Trade Infrastructure for Export Schemes (TIES) is aimed to set up common faciliti

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Foreign Investment 05 Jan 2017 by Tojo Jose

Chinese phone companies’ growth induces Aplle to assemble iPhone in India

Chinese phone companies’ growth induces Aplle to assemble iPhone in India

Just two year after its India entry, Chinese mobile phone manufacturer- Xiomi has achieved Rs 7000 crore sales. Another Chinese firm Huawie has reached Rs 10000 crore and several other smaller Chinese firms are also well performing compared to their achievements back at home. Apple, the leader in the global market is here for a long time and its sale is stagnating at around Rs 10000 crore. Xiomi’s silent but rapid march shows that it has the price attraction and product quality that can win Indian hearts. India is world’s fastest growing mobile phone market and is growing at smart pace. Apple’s problems lie in its products as it has no product to compete in Indi

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Foreign Investment 30 Dec 2016 by Tojo Jose

Apple’s manufacturing facility: Government to consider the company’s demand

Apple’s manufacturing facility: Government to consider the company’s demand

Government has called a meeting of the top officials of various ministries to look into the demands sought by Apple to start its manufacturing facility in India. the Cupertino based electronic giant has several manufacturing facilities and assembly lines in different countries; but not much production presence in India which is a fast-growing market for iPhones. Senior officials from DIPP (Department of Industrial Policy and Promotion), revenue, environment, forest etc. are scheduled to meet in January to consider various Apple demands including tax concessions and other incentives. Apple is expected to make a market seeking type of manufacturing facility in India as it fears to

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Foreign Investment 24 Nov 2016 by Tojo Jose

Rupee at risk as strong dollar and rising US inflation rate rattles bond markets

Rupee at risk as strong dollar and rising US inflation rate rattles bond markets

Rupee is trading at new lows early morning in the context of strengthening dollar. Besides the news of sooner than expected interest rate hike in the US has also put pressure on rupee. What triggers a potential interest rate stance by the Fed is the rising US inflation. Early morning session on Thursday, the rupee registered 68.74 a dollar, down 0.23% from its previous close of 68.57. It is on the brink of the all-time low of 68.85 to the dollar. The Fed has already indicated its desire to move towards raising its policy rate called the Fed rate.  This event is expected soon so as to match the rising inflation rate. At present, the US bond market is witnessing heavy selling

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External Sector 22 Nov 2016 by Tojo Jose

End of Banking Secrecy: Swiss banks will give bank account information

End of Banking Secrecy: Swiss banks will give bank account information

Banks in Switzerland have officially came out of banking secrecy regimes. Now, they have to give bank account information about Indian residents automatically to India. A joint declaration between India and Switzerland was signed to facilitate tax information exchange automatically. The Joint declaration was signed by Sushil Chandra, Chairman, Central Board of Direct Taxes, and Gilles Roduit, Deputy Chief of Mission of Swiss Embassy in India signed on behalf of Switzerland. As part of the G20 formulated Automatic Exchange of Information (AEOI), India and Switzerland have signed a joint declaration on automatic exchange of information. The agreement and the declaration signed by t

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