The implementation of the much discussed General Anti-Avoidance Rules has been postponed by the government to 2016 from the current targeted date of 1st April 2014. Postponement of the GARR take-off will continue to benefit both foreign and domestic investors to route their money to India through tax havens like Mauritius. Implication of the government decision is that investors will not come under the GAAR proposed tax net two more years. Finance Minister P Chidambaram’s effort is to attract foreign capital to fill the widening current account deficit. Current year trade data shows that the country is going to face one of the toughest situations in recent years.Imports a
The India –EU Free Trade Agreement is in incubation. Both parties are trying to sort out differences existing on many fronts. The FTA is important for Europe than for India because of the evolving global economic environment. Firstly, Europe is slowly dipping into recession amidst aging demography and shrinking GDP. Its exports are coming down due to strong competition from countries like China and South Korea. European firms are migrating and relocating production to new demand geographies in the emerging world. Many observers believe that the decline of Europe is not transient and hence is fundamental. How
China has reactivated its territorial expansion plans; this time through its e-passport map. From, Japan to India, Asian neighbors of China are concerned about the maps depicted in the new Chinese e-passports. These maps indicate the territory of its neighbors as Chinese territory. Many analysts see that time has reached for small Asian neighbors to face the growing Chinese territorial adventurism as a fearful realty. China is recently inventing new ways to express its expansive territorial ambitions like World War II Germany; and the map issue is the last one among them.
Deisel price is changing the economic and political landscape of the country faster than you can imagine. It is hot and sour for the ruling front, oppostion as well as for the people if the unfolding of the worseing economic environment of the country is an indicator. A close assessment of the prevailing and emerging economic environment of the country strongly indicate that diesel is slowly coming out of the subsidy regime. At present, diesel has the benefit of a subsidy of around Rs 14 litter. Few months back, one litter of diesel enjoyed subsidy of around 21 rupees compared to petrol. In the past, the government resisted removal of diesel subsidy fearing popul
All of a sudden, the confrontationist atmosphere between the reformists and anti-reformists in the country has been activated; thanks to the cloud burst type reform measures introduced by the UPA government during the last one month. The political and economic environment suddenly looks like that of 1991. Prime Minister Dr Manmohan Singh has launched a counter attack on the opponents when he remarked that the anti- reformists have not succeeded then (1991) and they will not succeed now. It seems that the UPA, especially the Congress has completely
The Rupee is experiencing severe depreciation pressure due to adverse trade scenario and FII outflows. Rupee has registered a near historic low of 53 plus against the Dollar on the previous day. In the coming days the currency may touch a new low against the Dollar. Of course, the immediate reason for the weakening of Rupee is the FII outflow. Foreign investors are extracting negative sentiments from the potential government decision to impose capital gains tax on FII inflows from Mauritius which is tax exempted as per the current Double Taxation Avoidance Treaty. &n
The government’s budgetary decision to impose taxes on overseas deals which involve underlying Indian assets is now inviting the expected global criticism. In the budget, the Finance Minister announced amendment to the Income Tax Act, enabling the government to tax overseas transactions of Indian assets. The most important feature of the amendment is its retrospective effect. Because of the retrospective effect, all such transactions from 1962 onwards will be reassessed and made taxable with one legislative touch. Tax practitioners warn that besides, causing chaos the amendment may create an impression in the
When HPCL and Lakshmi Mittal started the working of the Bhatinda Refineries in Punjab, many have doubted that the refinery is ‘an excess capacity’ given the market conditions in the region. But now, an unexpected opportunity is awaiting the plant. The windfall opportunity is that Pakistan is likely to import petrol from India. Bhatinda is just 25 KM away from the border. If Pakistan, facing acute fuel shortages goes for import of petrol from India, the yet to be commissioned refinery will be making revenues as well as history. For Pakistan, India is the most geographically
The real winner of the United Nations Human Rights Commission (UNHRC) voting on Sri Lanka’s human right violation is China. The incident has set a platform for the Chinese to occupy a bigger space in South Asia. China has voted against the resolution while India was compelled to support it because of the pressure from DMK. At the UNHRC, politicians from Tamil Nadu have won but, India has lost. In the pre- independence period, there were several such incidents where the foolish local kings acted against the country and thus leading to the gains of the colonial powers. China was awaiting
The killing of two innocent fishermen by the Italian mariners in the fringes of Indian territorial waters is a grave situation. It is clear that the mariners have not tried to check whether the people on the boat were fishermen or pirates. At the time of shooting, nine out of the eleven fishermen were sleeping and it is reported that the Italian mariners were addicted to liquor and were not in a capacity to follow the required procedures before commencing an action. The incident itself is a setback to the efforts to eliminate the Somalian pirates from the Indian seas. The incident shows tha
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