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
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
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