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
Indications are that France is using couple of surprisingly got opportunities to strengthen its bargaining position in its deal with India. After India has switched to urgency on the delivery of the aircrafts, France is slowing a little bit on the deal. Visit of the French Defence Jean-Yves Le Drian to India to design conditions for the direct purchase of Rafale has been rescheduled for next week. France so far is in an advantageous position on the deal as it has secured a surprising 24 unit order from Qatar. The Middle East crisis has benefited France and the French Defence Minister is reaching Delhi only after his stay at Doha after signing the initial agreement with Qata
In an indication of continued confrontation with India on IPR issues, the USTR has maintained India in its ‘priority foreign countries’ list. The United States Trade Representative(USTR) is the United States government agency responsible for developing and recommending United States trade policy to the President. Priority countries according to the USTR are the one where US companies and products face trade barriers in the form of IPR violations related to patents, copyrights and trade marks. The list is updated annually and US government advocates sanctions against the countries included in the list. Over the last couple of year’s India is strongly r
China’s ace phone maker Xiaomi’s announcement that Tata group has invested in the company is a big news. For Tata, the investment is a support for Xiaomi’s indianisation efforts. At the same time, China being the Tata owned JLR’s largest market, the investment is a trust creating one. The Xiaomi investment thus will better the phone company’s future in India as well as Tata’s future in China. For most, Xiomi is going to take Samsung in the global market in the coming year. Already, it has emerged as the second largest selling smart phone brand in China, defeating Samsung. Now, an important event is the launch of Letv video streamin
China is planning to construct a railway line to Nepal from Tibet passing through a tunnel beneath Mt Everest. The China Daily has revealed few details about the proposed network that is going to be completed by 2020 at ‘Nepal’s request’. The rail network will produce the first time in history connect between Chinese mainland and Indian sub-continent across the high altitude Himalayas. China has already constructed Karakoram highway through Pakistan. But the turbulence in the region is making it a high risk route for the Chinese. If completed, the Himalayan rail network will be an easy entry point for Chinese goods into India. Besides, the railway line will g
The new trade policy announced by the Commerce Minister Ms Nirmala Sitharaman has certain new features compared to the previous ones. First, the policy clubs both goods and service trade. This is for the first time that the Trade Policy makes a combined target. As per the new policy, the government aims to realize an export target of $900 billion by 2020. All existing incentives to the export sector has been put under two schemes –Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS) for goods and services respectively. Export incentives which are usually expressed as the duty or tax credits given to the exporters in terms of
Chinese economy has entered into a new normal but moderate growth phase in its transformation journey to become a developed economy. The new moderate growth is quite slower than the explosive 10 percent growth it has achieved for nearly thirty years till 2010. Premier Li Keqiang has told the Parliament that for this year, the Chinese government is expecting a growth rate of 7. This is below the Indian growth rate for the year. Traces of the new and the inevitable moderate growth phase were appearing for the last several quarters. The economy was growing at 7.5% from 2010 onwards. In 2014, the growth rate was lower than the projected growth. Li has described the new
As crude prices dipping to the new lows, it is certain that the price fall will bring gains to importing countries like India. So far, crude continues to fall and reached below $65 mark for the Brent quality on Wednesday. Though price may reach at new lows, expectation is that it may settle at $75-80. In this context, there is scope for considerable economic gains for oil importing countries. For India, crude oil import bill was $165 billion during 2013-14 according to the RBI’s provisional estimate. It accounted for 36% of the total import of $450 bn. According to the World Bank, average crude price during 2013 calendar year was $104. If the price settles at $75 dolla
A Babu in the railway can reserve an AC seat for his dog. Similarly, he is getting a monthly emolument to appoint a Sepoy to bear his bag. Not just these prevailing practices, but also the quality of Indian Railway’s infrastructure has not changed since the British left. Indian Railway is yet to get Independence. When the rest of the country is progressing, railway should change from the British era in every respect. On this, the proposed bullet train will be a game changer for the national carrier. A bullet train travelling at 300 km/h speed will take you from Delhi to Chennai in just six hours. Government has planned two bullet train networks- one from Mumbai to Ahm
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