After being stable for two successive years, -2014 and 2015, chances are bright that the rupee may remain continue its bright run in 2016 as well. In 2015, the domestic currency lost only five percent against the US Dollar. This was after a stable performance in 2014 where it lost only two percent. The rupee’s stable performance during the last two years was remarkable in the context of continuing turbulence in the global economy. Other emerging market peers except the Chinese Yuan lost significant values during 2015. Currencies of Indonesia, Brazil and Russia have undergone steep depreciation over the last two years. The Chinese currency which was included in the SDR bask
India and Russia signed nearly half a dozen projects that will support the Make in India Programme. Prime Minister Modi has highlighted the decision to manufacture Russia’s Kamov 226 Choppers under the Make in India platform. Kamov is a small, twin-engine transportation helicopter used as a utility vehicle. This is the first major defence programme that will be started under the programme. Another defence manufacturing agreement was signed in the private sector- between Anil Ambani’s Reliance Defence and Russia’s Almaz-Antey, to make air defence and radar system. The deal is expected to be valued at $6bn. Apart from these; the two sides haven’t reached any
India’s largest pharmaceutical has ratified that the company has received a letter from USFDA- the drug regulatory authority of the US. The letter is a warning by the US agency citing that the Indian firm has violated manufacturing standards. USFDA’s remark is against the Halol plant, which is its largest manufacturing facility for Sun pharma. The facility supplies about 40 per cent of the products the company sells in the US. India is the major exporter of the pharmaceutical items in the US market. Similarly, the country holds largest number of USFDA approved manufacturing facilities outside the US. Several plants in India are inspected by the USFDA as
Japanese Prime Minister Shinzo Abe has indicated that his country’s economic engagement with India is going to be stronger with his visit. Abe is making a historic visit in India where many projects with Japanese partnership are going to be finalized. The Japanese leader is expected to finalize a deal to construct Bullet train network between Mumbai and Ahmadabad by providing money and technology. Indications are that Japan is extending a soft loan for fifty years to India with an interest rate of 0.5%. Japan’s engagement with India is symbolic and strategic as well. Recently, the China has inaugurated a rail network across Karakoram ranges in Pakistan to link Chinese
Prime Minister Narendra Modi announced that Singapore is one of the selected destinations for the issue of rupee bonds. Earlier in his UK visit, Modi has announced the issue of Masala bonds in the London Stock Exchange. Singapore is a major investment ally for India as the tiny nation that has a population of only 5 million compared to India’s 1260 million is the second largest foreign investment source for India. The rupee bonds or offshore rupee denominated bonds has become an ace instrument for infrastructure fund mobilization from foreign countries. Rupee denominated bonds issued by the IFC in the acronym of ‘Masala’ bonds’ has got large scale
India has lost the solar energy dispute against the US at WTO. The case was filed by the US against India’s decision for local content requirement in the supply of solar energy project items. US argument was that India’s policy of instructing local content is against the WTO’s non-discriminatory principles. The case was initiated by the US in 2013. Consultations between the two countries failed to settle the issue. India has used its right to stop the movement of the dispute further by blocking the panel appointment. But second time as the provision, India was not able to block the referral to the case to the panel. Hence, the WTO has referred it to the dispute
Chinese President Xi Ping has congratulated the Maldivian counterpart Abdulla Yameen on the Maldives' 50th Independence Day. Yameen’s administration has recently brought a new law that seems to be specially built for sea reclamation specialist China to hold land in Maldives. The new law allows foreigners with investment of more than a billion to own land, on condition that at least 70 per cent of the area they develop is reclaimed from the sea. Many in the strategic front sees Mr Yameen’s move as an open invitation to China to militarily engage in Indian Ocean. Recently, the President Yameen has dismissed concerns over foreign military expansion under the
Defence Minister Manohar Parikar stated that India is in the final stage of negotiation on the Rafale deal. France has sold three Rafale fighter aircrafts to Egypt yesterday. This was the first foreign delivery of the aircraft and Egypt deal was signed early this year. India, the first country to come into an agreement with Dassault is yet to finalize it. New consensus has been reached between India and France for the direct or fly away mode of delivery by Dassualt- the constructor of Rafale. The aircraft and associated systems and weapons would be delivered on the same configuration as had been tested and approved by IAF, and with a longer maintenance responsibility by France
Sanction free Iran is an opportunity that India should not be late to utilize-says Iranian Ambassador to India, Gholamreza Ansari. Speaking about the new windows for trade and economic engagement between the two countries, the Amabassador told that President Hassan Rouhani had offered Prime Minister Narendra Modi an expanded role for India to play in Iran’s connectivity plans. India and Iran have good synergy in the trade front. Iran is a major supplier of crude and India is one of the largest importers from the Iranian angle. Both countries have planned number of projects extending from ports to mining, but sanctions by the US have stalled all of them. More than the c
Government’s decision to introduce composite foreign investment cap will not be extended to the two important sectors where foreign investment has additional ramifications – banking and defence. The composite foreign investment cap proposes to end the distinction between FDI and FPI in determining foreign investment in domestic companies. Foreign investment in most sectors was expressed as FDI and separate limits were set for FPI or FII, within the FDI limits. Defence foreign investment is limited to 49% in the normal case and foreign investment in Indian private sector banks is allowed up to 74%. As per norms, in the defence sector, FPI is limited to 24%, whereas
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