Commerce Ministry to make additional promotional measures for reviving export growth momentum Amidst continuous decline in exports, the Commerce Ministry has brought out plans for providing stimulus to the sector. Exports have registered fifteenth straight month decline and is set to settle near to $300 bn this year. Different export revival measures were suggested at the meeting of the Board of Trade (BoT) on Wednesday. The BoT is a newly constituted body that has 72-member comprising mainly exporters and is chaired by the Commerce Minister. A major suggestion put forward by the BoT is to extend Priority sector lending norm to the MSMEs (Micro and Small and Medium Enterprises)
The government has brought clarification to the long awaited FDI policy in the ecommerce sector. As per the notification by the DIPP (Directorate of Industrial Policy and Promotion), 100% FDI is allowed through automatic route in marketplace model of ecommerce. At the same time, FDI is not allowed in inventory model. The marketplace model is followed by most of the domestic firms including flipkart, snapdeal, and foreign competitor amazon. On the other hand, the inventory model is followed by Chinese aspirant Alibaba. The new policy gives a thumps down for Alibaba’s dream Indian market entry. But for the Indian firms, the step is a relief as they can go for external f
French companies will be making $10 bn investment in India’s infrastructure sector in the next five years. France’ visiting President Francois Hollande’s delegation has revealed that French companies have invested $1 bn per year in India over the last five years. Hollande is the Chief Guest for this year’s Republic Day Ceremony. The most important agreement between the two sides will be the Rafale deal that may cost India around Rs 36000 crore. Agreement between the two on the deal is delayed because of the defence offset content India demanded with the original plan. "The majority of these investments are meant for the industrial sector, which mak
In the context of changing environment, India is considering more diversification of its crude sourcing. At present, bulk of the crude -around 60%, is coming from Middle East. Diversification of supplies means tat the country is reducing its dependence on crude imports from Middle East led by Saudi Arabia. Already premium pricing by Saudi Arabia, Iran’s entry into the world market and declining prices have added different dimensions to the crude market. India is third largest importer of crude after China and the US. Minister of Petroleum and Natural Gas Dharmendra Pradhan at the India –Africa Hydrocarbon Conference at New Delhi has indicated that as a part of t
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
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