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
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
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
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
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
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
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
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
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
Rupee lost 49 paise against Dollar on Tuesday amidst domestic cash disturbances and a distant prospect for interest rate hike in the US. More than the cash stalemate, it was the expectation about a Fed rate hike that weakened the currency. Rupee reached a five-month low of 67.72 against dollar at the end of trading on Tuesday. Several EME currencies also undergone weakness against dollar. The Chinese Yuan reached its eight year low against the US green back. Chinese officials who follows a fixed exchange rate system allowed yuan to depreciate to 6.8495 against their target of 6.83. Yuan’s low will help Chinese exports. On the other side, the US is losing competitiveness amid
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