The excising ecommerce players have opposed the idea of allowing FDI in the sector in the second meeting convened by the government. Under pressure from free trade partners, government is continuing its consultation with existing stake holders to allow FDI in ecommerce. The meeting of the various stake holders including existing ecommerce players – Flipkart, Snapdeal, Amazon etc., was held in New Delhi on Friday. The meeting was chaired by DIPP Secretary Amitabh Kant. All the players were reported to have objected fresh liberalization of FDI norms in the sector. In the previous discussion that was held in May this year, the ecommerce players and brick and mortar firm
Japan’s world hit startup financier – Softbank, has announced $ 20billion investment in India’s solar energy sector. Softbank’s global compatriot, Taiwan’s multinational electronic firm Foxconn will be partnering with desi firm Bharti Enterprises in the new investment announced by the Japanese firm. The new project is one of the biggest renewable energy investments in India. Soft bank became globally known after its breakthrough investment in China’s ecommerce sensation Alibaba; where the Japanese start up financing entity has 19% holding. It has made a $20 million investment in Alibaba fourteen years back and it has grown into $50 billion
Finance Minister Arun Jaitely has stated that government is bringing legal changes to control excessive judicial activism that hammers investment sentiments. The FM was speaking to the US business community in New York. Mr Jaitely has attributed excessive judicial activism for some of the unrest in the investment front. “Excessive” judicial interference is not investor-friendly. The government is thinking about changes in the laws to streamline the judicial process on this matter. He was referring some of the cases were the government was dragged into international settlement mechanisms and bilateral investment treaty bindings due to overstepped verdicts. Referri
World’s second largest ecommerce firm, China’s Alibaba is working hard to enter into the Indian market. Mobile payment firm, Paytm which has 25% shareholding by Alibaba, launched a three day fashion sale, sending strong message across the ecommerce world. Reports also indicate that the China bound firm with inventory model has renewed its once aborted stake holding attempt in Snapdeal. Alibaba along with Taiwan’s handset sourcing firm Foxconn are making fresh discussion with Snapdeal for a strategic investment. Certainly, Paytm’s ecommerce entry will make pressure on Snapdeal to be a soft bargainer. Last time, according to Alibaba sources,
China has denied any connection between the Chinese Army- the PLA, and the North East insurgents who made a gruesome attack on Indian security forces last week. The Global Times quoting Chinese officials reacted that any such argument about the connection between the two sides is “absurd”. News paper reports in India earlier quoted the link between Nationalist Socialist Council of Nagaland-Khaplang (NSCN-K) – and the PLA. The strong denial about the PLA’s role came in a Global times article on Wednesday morning. The article has quoted Indian Express report about Indian official claiming recordings of a phone call between a PLA official and an NSCN-K lea
Foreign Direct Investment data published by WTO indicates that countries that enjoy strong treaty benefits are the important source of FDIs to India. Of all, Mauritius continues to be the leading origin, weighted by one of the most concessional treaty benefits. But an interesting development is the rise of Singapore as a prominent FDI source. Singapore based FDI has increased from $ 2.3 bn in 2012-13 to $6.7 bn in 2014-15. In 2013-14, Singapore piped Mauritius to second position. India and Singapore have amended their DTAA in 2005, extending tax benefits and introducing safety measures including limitation of benefit clauses. Since then, Singapore is becoming an impor
Foreign investment policy think tank, Department of Industrial Policy and Promotion (DIPP) is working on fresh guidelines including foreign investment policy in the sector. According to the Joint Secretary of DIPP, Sri Atul Chaturvedi, the DIPP will address the war between the ecommerce sector and the ‘brick and mortar retailers’ through a new FDI policy in the ecommerce sector. At the same time, he ruled out extra regulation on the sector in the context of the turf war between the two. But the real factor that motivates the government to have a look into the existing FDI policy in the sector is the intense competition going at present between various ecommerce c
The government’s decision on foreign investment front by considering NRI and Overseas Citizens of India investment as domestic investment will make the role of Diaspora more important. Already, many measures were introduced in the last two years or so to give more economic, financial and educational rights to the two diaspora categories –the NRIs and Overseas Citizens of India (OCI). What makes the diaspora segment very important for India is their size. India is having the second largest expatriate community in the world after China. Besides, the community is very progressive and is showing strong connectedness with the motherland. It is because of this siz
The big loan availed by Airtel from the two Chinese banks strengthens the Asian power’s rising status as a global lender. At the same time, every chance is that the loan will be followed by Airtel’s equipment order from China for its mobile data network expansion. Airtel has secured $2.5 bn from China Development Bank and Industrial Commercial Bank of China during the visit of PM Narendra Modi. In most cases, the loans will be denominated in Renminbi; the Chinese currency. There is every chance that the Airtel loan also will be a renminbi denominated loan. First major loan intake by an Indian company from China was Reliance Power and Reliance Communications, three
In a gesture to create deeper people to people engagement, Prime Minister Narendra Modi has announced e tourist visas for Chinese tourists. The e visas seem to be a one sided gesture in terms of its commitment even though the two countries have signed two dozen agreements covering many areas of cooperation. A notable absentee in the entire engagements so far is India’s views on China’s transcontinental connectivity project – the ‘one belt one road’ project. On the other side, the Chinese leadership also has not publicly raised India’s stand on the matter. The visit of Mr Modi is taking place at a time when China is on the track of extending
Dictionary on Indian Economy
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- Japan’s first trade deficit in 30 years is part of the Global Shift
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