China is buying the world. Europe and US are scared of the Chinese money that is conquering tech companies and hotels. In 2016, Chinese foreign investment in the US has reached $51.09 bn, according to Mergermarket -a data analytics firm. Chinese have made 65 M&A deals in the US, raising their investment by 360%. In Donald Trump’s US, Chinese investment is not expected to come down in the coming years as well. In 2015, Chinese investment in the US was just 11.5 bn. One of the controversial investment by the Chinese that revealed the intention and nature of their investment was the acquisition of German robotic firm Kuka. After bunch of concerns from the Germany, and all
Nearly one year after the tenth Ministerial Conference of the WTO, India indicated intention to join the one of the most engaged new issues – ecommerce. Officials from Department of Industrial Policy and Promotion (DIPP) indicated that the country is going to engage with the new issues to be tabled at the Eleventh Ministerial Conference. The WTO is going to conduct the Eleventh MC at Buenos Aires, Argentina between December 11 -14, 2017. Indications are that several WTO members are seriously discussing the new issues including ecommerce, investment and government procurement. But of these, only ecommerce may materialize some agreement as members have serious divergences amo
The keenly watched Italian referendum on Prime Minister Matteo Renzi’s constitutional reforms was rejected by the people with a shockingly strong ‘no’ of 60 per cent. Mr Renzi designed big reforms through constitutional measures that may add power to the Prime Minister. He sought public ratification through the referendum. After the failure of the referendum, Mr Renzi is expected to submit resignation soon. Now the question is how far the Italian referendum and the victory for the rightists may trigger such reactions from other European countries that are approaching elections. Economic struggles under the currency union and the soft immigratnt policies by sever
Republican candidate Donad Trump won a historical US election defying most of the predictions. The election is even more important for the rest of the World as it engaged with the increasing divide within the US like the Muslim immigrant issue. The entire election process was engulfed by controversies, religious divisions, ethnic differences and personal attacks. In the Congress also Republicans got control indicating more comfort for the new President. Trumps success was shocking for some, surprising for many and is a thoughtful one for Europe. The way in which he used the prevailing global unrest to win US mind will not go unattended by political leaderships in Europe. Mainstr
Can BRICS bring back rhythm in its usual attack against West dominated world economic order, especially after considerable conflict at the political level between the two stake holders – India and China? This year’s theme may be the retreat of the West from globalization. BRICS intellectuals especially in Beijing believe that there is concerted effort from Western countries to exit from globalization as it considerably helped countries like China to emerge as powerful economies. So far, all the BRICS declarations were full of the demand for reconstructing the West dominated governance structure of IMF and World Bank. Demand for local currency trade settlements and str
BRICS’ s Goa edition is expected to reflect the drift between India and China on the latter’s selective protectionism to Pakistan’s sponsorship of terrorism. The group may feel severe pressure to restrict its usual engagement of fighting the West. Indications are that Chinese involvement in supporting Pakistan’s stand on Uri attack may reflect in the meeting as well. Already, indicating strong polarization in foreign policy, India invited the BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) countries to the meeting. Invitation to the Bimstec is quite symbolic. This means that India is ready to limit its cooperation w
After registering a one-year high, crude prices came down by a dollar in the international market on Tuesday. Cold response from Russian oil industry on production cut is cited as the major reason for the price fall trend. The new turnaround in the global market casts doubts about the strength of the new production cutting agreement between Saudi Arabia from the part of OPEC and Russia. Oil prices that jumped by 3 percent on Monday, after the Russia and Saudi Arabia reached a trend-setting deal bringing cooperation between OPEC and non-OPEC producers. But Brent oil futures fell to $52.84 on Tuesday from $53.73 on the previous day. The International Energy Agency also raised dou
On a surprising day in the foreign exchange market, the British Pound sterling – one of the leading hard currency for global transactions, trembled like a third world currency. The Pound lost around 6% in two minutes in Asian trading. Though it recovered later regaining much of the lost value, Pound'’s shocking uncertainty has generated suspicion in the minds of the market participants. During the day, Pound fell from about $1.26 to $1.18 in the space of two minutes though it recovered to $1.24. The British currency had enough woes ever since Britain expressed its willingness to exit EU. Pound, which is included under IMF’s SDR basket has already lost 5% agai
World’s macroeconomic observer – the International Monetary Fund cautioned that international debt has scaled up to a historical high level. Debt of the global economy has reached $152 trillion which is nearly two times the GDP of the world economy. The debt report was published under the IMF’s October 2016 edition of the ‘Fiscal Monitor’ that evaluates government finances and expenditure. IMF has a strong research division that makes extensive study about individual economies and the world economy as a whole. The Fund’s surveillance function is one of the most sophisticated activity by the seventy-year-old entity. Nearly two third of the debt
Bank of Japan has reinforced its monetary easing programme by introducing another innovative tool. This time, the Japanese central bank has set a cap on the 10-year bond yields. Over the last eight years after the financial crisis, central banks were innovating new policy instruments under unconventional monetary policy tag. The main component of the new ceiling of ten year bonds is the "yield curve control" under which the bank will seek to control short-term and long-term interest rates. Japan is going through sharp fall in economic activities reflected by very low GDP growth rate. Accompanying the poor income growth Japan is reeling under deflationary pressure. Japan’s
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