General Affairs
Indian Flag Displayed Upside Down as PM Modi, Shinzo Abe Met in Malaysia
PM Modi Calls for Enhancing Counter-Terror Cooperation With ASEAN
Coal Scam: Court Concludes Recording of Statements of Accused
Improvised Explosive Device Found on Srinagar-Baramulla Road Defused
Vladimir Putin Says Wants Global Anti-Terrorism Fight After 19 Killed in Mali Attack
Markets snap 3-week losing streak on fresh buying
China's economic slowdown adversely affected India, says RBI Governor Raghuram Rajan
Committed to provide transparent, predictable tax regime, says PM Narendra Modi
Flaws in gold deposit scheme cause tepid response
Government unveils road map for phasing out corporate tax exemptions
Indian Flag Displayed Upside Down as PM Modi, Shinzo Abe Met in Malaysia
-
KUALA LUMPUR: In an embarrassment for India, the Tricolour was seen hoisted upside down during Prime Minister Narendra Modi's photo-op with Japanese counterpart Shinzo Abe before bilateral talks on the sidelines of the ASEAN Summit in Kuala Lumpur.
The national flag was in the background of Prime Minister Modi and Shinzo Abe's customary handshake at the Summit and was hoisted on a stand next to that of Japan.
The flag is seen with the green at the top and the saffron below as the two leaders met for the second bilateral on the sidelines of 13th ASEAN-India Summit here.
"It was an inadvertent mistake in the rush of things. It was unfortunate," official sources requesting anonymity told PTI.
PM Modi arrived in Kuala Lumpur on a three-day visit to Malaysia during which he will attend two high-profile meetings at the ASEAN-India and East Asia Summits besides addressing the Indian community tomorrow.
KUALA LUMPUR: In an embarrassment for India, the Tricolour was seen hoisted upside down during Prime Minister Narendra Modi's photo-op with Japanese counterpart Shinzo Abe before bilateral talks on the sidelines of the ASEAN Summit in Kuala Lumpur.The national flag was in the background of Prime Minister Modi and Shinzo Abe's customary handshake at the Summit and was hoisted on a stand next to that of Japan.
The flag is seen with the green at the top and the saffron below as the two leaders met for the second bilateral on the sidelines of 13th ASEAN-India Summit here.
"It was an inadvertent mistake in the rush of things. It was unfortunate," official sources requesting anonymity told PTI.
PM Modi arrived in Kuala Lumpur on a three-day visit to Malaysia during which he will attend two high-profile meetings at the ASEAN-India and East Asia Summits besides addressing the Indian community tomorrow.
PM Modi Calls for Enhancing Counter-Terror Cooperation With ASEAN
-
KUALA LUMPUR: Prime Minister Narendra Modi today called for enhancing cooperation with ASEAN to tackle the global challenge of terrorism and underlined the need for settling territorial disputes through peaceful means.
He suggested evolving specific plans for cooperation with the 10-memeber grouping in key areas of maritime security, counter-piracy and humanitarian and disaster relief.
"Terrorism has emerged as a major global challenge that affects us all here. We have excellent bilateral cooperation with ASEAN members. And, we should see how we can enhance our cooperation at the regional and international level, including through support for adoption of Comprehensive Convention on International Terrorism," PM Modi said in his opening remarks at the ASEAN-India Summit in Kuala Lumpur.
"As our rapidly transforming region navigates its way through uncertain times to a peaceful and prosperous future, we look forward to ASEAN leading the way in defining the regional architecture," said PM Modi, who is in Malaysia on a three-day visit to attend the ASEAN-India Summit and East Asia Summit.
Referring to the territorial disputes in the South China Sea, he said, "India shares with ASEAN a commitment to freedom of navigation, over flight and unimpeded commerce, in accordance with accepted principles of international law, including the 1982 UN Convention on the Law of the Sea. Territorial disputes must be settled through peaceful means."
PM Modi said India hopes that all parties to the disputes in the South China Sea will abide by the guidelines on the implementation of the Declaration on the Conduct of Parties in the South China Sea and redouble efforts for early adoption of a Code of Conduct on the basis of consensus.
Terming connectivity as the pathway to shared prosperity, he said the India-Myanmar-Thailand trilateral highway project is making good progress and should be completed by 2018. India will soon extend electronic-visa facility to all ASEAN countries, PM Modi said.
Terming science, technology and innovation as a vital pillar of India-ASEAN cooperation and economic partnership, he said, "We will enlarge the ASEAN-India Science and Technology Development Fund from the current USD one million to USD 5 million."
India intends to set up an ASEAN-India Innovation Platform to facilitate commercialisation of low cost technologies, technology transfer and collaborative Research and Development projects, he said.
ASEAN grouping includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
KUALA LUMPUR: Prime Minister Narendra Modi today called for enhancing cooperation with ASEAN to tackle the global challenge of terrorism and underlined the need for settling territorial disputes through peaceful means.He suggested evolving specific plans for cooperation with the 10-memeber grouping in key areas of maritime security, counter-piracy and humanitarian and disaster relief.
"As our rapidly transforming region navigates its way through uncertain times to a peaceful and prosperous future, we look forward to ASEAN leading the way in defining the regional architecture," said PM Modi, who is in Malaysia on a three-day visit to attend the ASEAN-India Summit and East Asia Summit.
Referring to the territorial disputes in the South China Sea, he said, "India shares with ASEAN a commitment to freedom of navigation, over flight and unimpeded commerce, in accordance with accepted principles of international law, including the 1982 UN Convention on the Law of the Sea. Territorial disputes must be settled through peaceful means."
PM Modi said India hopes that all parties to the disputes in the South China Sea will abide by the guidelines on the implementation of the Declaration on the Conduct of Parties in the South China Sea and redouble efforts for early adoption of a Code of Conduct on the basis of consensus.
Terming connectivity as the pathway to shared prosperity, he said the India-Myanmar-Thailand trilateral highway project is making good progress and should be completed by 2018. India will soon extend electronic-visa facility to all ASEAN countries, PM Modi said.
Terming science, technology and innovation as a vital pillar of India-ASEAN cooperation and economic partnership, he said, "We will enlarge the ASEAN-India Science and Technology Development Fund from the current USD one million to USD 5 million."
India intends to set up an ASEAN-India Innovation Platform to facilitate commercialisation of low cost technologies, technology transfer and collaborative Research and Development projects, he said.
ASEAN grouping includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
Coal Scam: Court Concludes Recording of Statements of Accused
-
NEW DELHI: A special court today concluded recording of statements of accused in a coal block allocation case in which accused firm Jharkhand Ispat Pvt Ltd (JIPL) and its two directors RS Rungta and RC Rungta are facing trial.
Special CBI Judge Bharat Parashar has fixed the matter for November 26 when the accused would place before the court the list of witnesses, whom they want to examine in their defence.
During recording of statements, the accused claimed innocence before the court and denied the allegations levelled against them by the CBI.
This is the first coal scam case which is nearing finality, as after the recording of statements of the accused, the court would record defence evidence which would be followed by the final arguments.
The court had commenced the trial on June 3 by recording prosecution evidence which concluded on October 30. Senior public prosecutor A P Singh had examined 41 witnesses to substantiate the CBI's case.
JIPL and its two directors were earlier put on trial by the court which had framed charges against them for securing allotment of North Dhadu coal block in Jharkhand allegedly on the basis of false and forged documents.
The court had framed charges against the three accused for alleged offences punishable under sections 120-B (criminal conspiracy) read with 420 (cheating), 467 (forgery of valuable security), 468 (forgery for the purpose of cheating) and 471 (using a forged document as genuine) of the IPC. After the court had framed charges against them, all the accused had pleaded not guilty and claimed trial.
The case pertains to alleged irregularities in allocation of North Dhadu coal block in Jharkhand to JIPL.
The court, while ordering framing of charges against the accused, had noted that it was prima facie clear that they "fraudulently and dishonestly" used forged documents to secure the coal block knowing fully well that the same were forged.
In its charge sheet, CBI had alleged that it had found in the probe that JIPL had "grossly misrepresented" a number of aspects before Ministry of Steel (MoS) and Ministry of Coal (MoC) to inflate their claim, thereby inducing MoC officers and the screening committee to allocate the coal block to them.
NEW DELHI: A special court today concluded recording of statements of accused in a coal block allocation case in which accused firm Jharkhand Ispat Pvt Ltd (JIPL) and its two directors RS Rungta and RC Rungta are facing trial.Special CBI Judge Bharat Parashar has fixed the matter for November 26 when the accused would place before the court the list of witnesses, whom they want to examine in their defence.
This is the first coal scam case which is nearing finality, as after the recording of statements of the accused, the court would record defence evidence which would be followed by the final arguments.
The court had commenced the trial on June 3 by recording prosecution evidence which concluded on October 30. Senior public prosecutor A P Singh had examined 41 witnesses to substantiate the CBI's case.
JIPL and its two directors were earlier put on trial by the court which had framed charges against them for securing allotment of North Dhadu coal block in Jharkhand allegedly on the basis of false and forged documents.
The court had framed charges against the three accused for alleged offences punishable under sections 120-B (criminal conspiracy) read with 420 (cheating), 467 (forgery of valuable security), 468 (forgery for the purpose of cheating) and 471 (using a forged document as genuine) of the IPC. After the court had framed charges against them, all the accused had pleaded not guilty and claimed trial.
The case pertains to alleged irregularities in allocation of North Dhadu coal block in Jharkhand to JIPL.
The court, while ordering framing of charges against the accused, had noted that it was prima facie clear that they "fraudulently and dishonestly" used forged documents to secure the coal block knowing fully well that the same were forged.
In its charge sheet, CBI had alleged that it had found in the probe that JIPL had "grossly misrepresented" a number of aspects before Ministry of Steel (MoS) and Ministry of Coal (MoC) to inflate their claim, thereby inducing MoC officers and the screening committee to allocate the coal block to them.
Improvised Explosive Device Found on Srinagar-Baramulla Road Defused
-
SRINAGAR: Security forces today detected an Improvised Explosive Device (IED) on the outskirts of the city on Srinagar-Baramulla road, police said.
Sources say the IED weighing 3 Kgs wrapped in a cloth inside a bag was meant to target security forces.
A patrol party of CRPF noticed the bag under a culvert at Narbal on Srinagar-Baramulla Highway and immediately called for a bomb disposal squad, a police official said.
He said the IED fitted, with a rocket, was destroyed in the nearby open fields. There was no damage done in the controlled explosion of the explosive.
"A major tragedy was averted with the timely detection of the IED as the Srinagar-Baramulla road is always busy and used by civilians and security forces alike," the official said.
Meanwhile, security forces recovered two mortar shells, concealed in a gunny bag, at Brakpora in south Kashmir Anantnag district, the official said.
He said the bomb disposal squad had rushed to the spot and the IED was defused.
SRINAGAR: Security forces today detected an Improvised Explosive Device (IED) on the outskirts of the city on Srinagar-Baramulla road, police said.Sources say the IED weighing 3 Kgs wrapped in a cloth inside a bag was meant to target security forces.
A patrol party of CRPF noticed the bag under a culvert at Narbal on Srinagar-Baramulla Highway and immediately called for a bomb disposal squad, a police official said.
He said the IED fitted, with a rocket, was destroyed in the nearby open fields. There was no damage done in the controlled explosion of the explosive.
"A major tragedy was averted with the timely detection of the IED as the Srinagar-Baramulla road is always busy and used by civilians and security forces alike," the official said.
Meanwhile, security forces recovered two mortar shells, concealed in a gunny bag, at Brakpora in south Kashmir Anantnag district, the official said.
He said the bomb disposal squad had rushed to the spot and the IED was defused.
Vladimir Putin Says Wants Global Anti-Terrorism Fight After 19 Killed in Mali Attack
-
BAMAKO: Russian President Vladimir Putin said on Saturday global cooperation was need to confront terrorism in the wake of an Islamist militant attack targeting foreigners in a luxury hotel in Mali that killed 19 people.
Friday's assault on the Radisson Blu hotel in Bamako came a week after militants killed 130 people in a spate of gun and bomb attacks in Paris claimed by Islamic State. France on Friday extended a state of emergency until February as police pursued raids and investigations, with over 250 people detained.
The bloodshed in Mali, a former French colony, was the latest sign of the problems faced by French troops and U.N. peacekeepers in restoring security in a West African state that has battled rebels and militants in its desert north for years.
The assault on the Radisson Blu hotel, claimed by jihadist groups Al Mourabitoun and al Qaeda in the Islamic Maghreb (AQIM), ended when Malian commandos stormed the building and rescued 170 people, many of them foreigners.
President Ibrahim Boubacar Keita said two militants were killed in the commando operation.
His government increased security at strategic points around Bamako at the start of a declared 10-day state of emergency.
Chinese President Xi Jinping condemned the "cruel and savage" attack, whose dead included three Chinese executives of a state-run railway firm.
The head of a Bamako hospital told Russian television channel LifeNews that at least two Russian citizens were killed. RIA news agency said Russians were among the dead, citing Foreign Ministry spokeswoman Maria Zakharova.
Putin sent a telegram of condolences to Keita and said "the widest international cooperation" was needed to confront global terrorism, according to a statement by the Kremlin.
On Tuesday, Putin promised to hunt down Islamist militants responsible for blowing up a Russian airliner over Egypt on Oct. 31 as well as intensified air strikes against militants in Syria, after the Kremlin concluded a bomb had destroyed the plane, killing 224 people.
Putin and French President Francois Hollande also spoke by phone on Tuesday and agreed to boost coordination of their military actions in fighting jihadist militants in Syria.
One American and a deputy from a regional parliament in Belgium were also killed in the Bamako hotel attack, though French Defence Minister Jean-Yves Le Drian said he was not aware of any French nationals killed.
Fleeing in Terror
The attack began at 7 a.m. on Friday when gunmen killed guards at the entrance of the hotel and barged inside.
Malian commandos subsequently stormed the hotel and rescued around 170 people, many of whom had been hiding under beds or in side-rooms and rushed terrified from the building to safety as shooting continued inside.
By around 4 p.m. the hotel was secured but Malians woke on Saturday to a sense of shock at the latest high-profile raid by Islamists this year.
"I feel bruised by this atrocious act, which cannot be justified. No nation, no human life deserves such criminal barbarity," said Oumar Fomba, a teacher. "I urge the Malian government to fight more fiercely against terrorism."
In a speech on the sidelines of a summit with Asian nations in Malaysia, U.S. President Barack Obama described the raid in Mali as "another awful reminder of the scourge of terrorism".
"Once again, this barbarity only stiffens our resolve to meet this challenge. We will stand with the people of Mali as they work to rid their country of terrorists and strengthen their democracy. With allies and partners, the United States will be relentless."
Setback For France
The attack was another jolting blow to France after the shock of the Paris carnage. France has stationed 3,500 troops in northern Mali to try to restore stability after a rebellion in 2012 by ethnic Tuaregs that was later hijacked by jihadists linked to al Qaeda.
"We (France) have proved to be as blind as the Malian elite. Nothing changes in Mali. The elite continues to act like it always has as does the international community," said Laurent Bigot, former undersecretary in charge of West Africa at France's foreign ministry, alluding to U.N. peacekeepers.
"People have been ringing the alarm bell for a long time, but it doesn't do any good," Bigot, who now works as a consultant, told Reuters.
The attack also cast a spotlight on a veteran leader of Al Mourabitoun, Mokhtar Belmokhtar, a few months after reports, never confirmed, that he was killed in an air strike.
Northern Mali was occupied by Islamist fighters, some with links to al Qaeda, for most of 2012. They were driven out by a French-led military operation, but violence has continued.
Al Mourabitoun has claimed responsibility for a number of attacks, including an assault on a hotel in the town of Sevare, 600 km (375 miles) northeast of Bamako, in August in which 17 people including five U.N. staff were killed.
One of its leaders is Belmokhtar, blamed for a large-scale assault on an Algerian gas field in 2013 and a major figure in insurgencies across North Africa.
In the wake of the Paris attacks, an Islamic State militant in Syria told Reuters the organisation viewed France's military intervention in Mali as another reason to target France and French interests.
"This is just the beginning. We also haven't forgotten what happened in Mali," said the non-Syrian fighter, who was contacted online by Reuters. "The bitterness from Mali, the arrogance of the French, will not be forgotten at all."
BAMAKO: Russian President Vladimir Putin said on Saturday global cooperation was need to confront terrorism in the wake of an Islamist militant attack targeting foreigners in a luxury hotel in Mali that killed 19 people.Friday's assault on the Radisson Blu hotel in Bamako came a week after militants killed 130 people in a spate of gun and bomb attacks in Paris claimed by Islamic State. France on Friday extended a state of emergency until February as police pursued raids and investigations, with over 250 people detained.
The bloodshed in Mali, a former French colony, was the latest sign of the problems faced by French troops and U.N. peacekeepers in restoring security in a West African state that has battled rebels and militants in its desert north for years.
President Ibrahim Boubacar Keita said two militants were killed in the commando operation.
His government increased security at strategic points around Bamako at the start of a declared 10-day state of emergency.
Chinese President Xi Jinping condemned the "cruel and savage" attack, whose dead included three Chinese executives of a state-run railway firm.
The head of a Bamako hospital told Russian television channel LifeNews that at least two Russian citizens were killed. RIA news agency said Russians were among the dead, citing Foreign Ministry spokeswoman Maria Zakharova.
Putin sent a telegram of condolences to Keita and said "the widest international cooperation" was needed to confront global terrorism, according to a statement by the Kremlin.
On Tuesday, Putin promised to hunt down Islamist militants responsible for blowing up a Russian airliner over Egypt on Oct. 31 as well as intensified air strikes against militants in Syria, after the Kremlin concluded a bomb had destroyed the plane, killing 224 people.
Putin and French President Francois Hollande also spoke by phone on Tuesday and agreed to boost coordination of their military actions in fighting jihadist militants in Syria.
One American and a deputy from a regional parliament in Belgium were also killed in the Bamako hotel attack, though French Defence Minister Jean-Yves Le Drian said he was not aware of any French nationals killed.
Fleeing in Terror
The attack began at 7 a.m. on Friday when gunmen killed guards at the entrance of the hotel and barged inside.
Malian commandos subsequently stormed the hotel and rescued around 170 people, many of whom had been hiding under beds or in side-rooms and rushed terrified from the building to safety as shooting continued inside.
By around 4 p.m. the hotel was secured but Malians woke on Saturday to a sense of shock at the latest high-profile raid by Islamists this year.
"I feel bruised by this atrocious act, which cannot be justified. No nation, no human life deserves such criminal barbarity," said Oumar Fomba, a teacher. "I urge the Malian government to fight more fiercely against terrorism."
In a speech on the sidelines of a summit with Asian nations in Malaysia, U.S. President Barack Obama described the raid in Mali as "another awful reminder of the scourge of terrorism".
"Once again, this barbarity only stiffens our resolve to meet this challenge. We will stand with the people of Mali as they work to rid their country of terrorists and strengthen their democracy. With allies and partners, the United States will be relentless."
Setback For France
The attack was another jolting blow to France after the shock of the Paris carnage. France has stationed 3,500 troops in northern Mali to try to restore stability after a rebellion in 2012 by ethnic Tuaregs that was later hijacked by jihadists linked to al Qaeda.
"We (France) have proved to be as blind as the Malian elite. Nothing changes in Mali. The elite continues to act like it always has as does the international community," said Laurent Bigot, former undersecretary in charge of West Africa at France's foreign ministry, alluding to U.N. peacekeepers.
"People have been ringing the alarm bell for a long time, but it doesn't do any good," Bigot, who now works as a consultant, told Reuters.
The attack also cast a spotlight on a veteran leader of Al Mourabitoun, Mokhtar Belmokhtar, a few months after reports, never confirmed, that he was killed in an air strike.
Northern Mali was occupied by Islamist fighters, some with links to al Qaeda, for most of 2012. They were driven out by a French-led military operation, but violence has continued.
Al Mourabitoun has claimed responsibility for a number of attacks, including an assault on a hotel in the town of Sevare, 600 km (375 miles) northeast of Bamako, in August in which 17 people including five U.N. staff were killed.
One of its leaders is Belmokhtar, blamed for a large-scale assault on an Algerian gas field in 2013 and a major figure in insurgencies across North Africa.
In the wake of the Paris attacks, an Islamic State militant in Syria told Reuters the organisation viewed France's military intervention in Mali as another reason to target France and French interests.
"This is just the beginning. We also haven't forgotten what happened in Mali," said the non-Syrian fighter, who was contacted online by Reuters. "The bitterness from Mali, the arrogance of the French, will not be forgotten at all."
Business Affairs
Markets snap 3-week losing streak on fresh buying
-
Stocks: Markets snapped 3-week losing streak on fresh buying at the current levels on the back of firm trend in the global markets on hopes that the US Federal Reserve would raise rates in December.
The 7th Pay Commission report recommended a 23.55 per cent hike in pay and allowances for Central government employees, lifting spirits.
Shares of Refinery, FMCG, Capital Goods, Consumer durable, Auto and Power sectors firmed up on good buying enquiries.
"The buying interest was in response to the Seventh Pay Commission's recommendations which will boost consumption in the economy, going forward," said Jayant Manglik, President, Retail Distribution, Religare Securities Ltd.
Meanwhile, wholesale price index-based inflation stood at (-)3.81 per cent in October, as against (-) 4.54 per cent in September, boosting investor sentiment as an uptick in October inflation showed signs of a revival in consumer demand.
"Rise in crude prices fuelled by geo-political tension has lifted sentiment globally. Finance Minister's assurance of achieving fiscal deficit target of 3.9 per cent of gross domestic product for the current fiscal bolstered confidence of investors", said Gaurav Jain, Director, Hem Securities.
The Sensex resumed lower at 25,580.15 and fell to a 2-month low of 25,451.42 on worsening global risk environment. But, recovered immediately to 26,058.76 on low level buying before finishing the week at 25,868.49, showing a gain of 257.96 points or 1.01 per cent.
The Sensex had tumbled by 1,860.28 points or 6.77 per cent in previous three weeks.
The 50-share Nifty also rose by 94.30 points or 1.21 per cent to 7,856.55. The Nifty had also fallen by 533.20 points or 6.43 per cent in previous three weeks.
Foreign portfolio investors (FPIs) continued their selling spree during the week as they sold a net Rs 2,464.43 crore as per the Sebi's record including the provisional figure of November 20.
From the 30-share Sensex pack, 20 stocks rose and 9 were losers, while Tata Motors closed unchanged during the week ended yesterday.
Major gainers were Gail India (23.14 per cent), Vedl (6.76 per cent), M&M (5.27 per cent), ITC (4.54 per cent), Cipla (4.42 per cent), Bajaj Auto (3.51 per cent), Tata Steel (3.40 per cent), Wipro (3.03 per cent), NTPC (2.83 per cent), Larsen (3.57 per cent), Maruti (2.48 per cent) and HDFC (2.16 per cent).
However, Axis Bank fell 5.07 per cent followed by Infosys 4.32 per cent, Sun Pharma 2.06 per cent and HeroMotoco 1.81 per cent.
Among the S&P BSE sectoral indices, Power rose 4.59 per cent, Oil & Gas by 4.28 per cent, FMCG by 2.81 per cent, Capital Goods by 2.35 per cent, Consumer Durables by 2.15 per cent, Auto by 2.02 per cent, Metal by 0.68, Healthcare by 0.64 per cent and Banking 0.56 per cent, while Realty fell by 1.46 per cent followed by IT by 1.11 per cent and Tech by 0.53 per cent.
The BSE Mid-cap index rose 204.93 points or 1.93 per cent to settle at 10,858.41 and the BSE Small-cap index also gained by 242.27 points or 2.17 per cent to close at 11,367.71. Both these indices outperformed the Sensex.
The total turnover at BSE and NSE recovered to Rs 13,611.90 crores and Rs 77,391.75 crores respectively from last weekend's level of Rs 9,089.11 crores and Rs 54,951.43 crores.
Forex: The rupee continued its downward march against the American currency for the sixth consecutive week, slipping by another nine paise to finish the week at 66.19 per dollar on persistent dollar demand from banks and importers on the back of sustained foreign capital outflows.
Foreign portfolio investors (FPIs) continued their selling pressure as they pumped out $358.42 million during the first four days of the week as per SEBI's record.
The rupee resumed lower at 66.20 per dollar as against last weekend's level of 66.10 at the Interbank Foreign Exchange (Forex) Market and dropped further to 66.33 before ending the week at 66.19, showing a loss of nine paise or 0.14 per cent.
The rupee has dropped 145 paise or 2.24 per cent in last six weeks.
The domestic currency hovered in a range of 65.90 and 66.33 per dollar during the week.
The dollar hit a fresh seven-month high against the euro and a one-week high against the yen indicating investor expectations for an increase in US interest rates next month that would bring added strength to the greenback remain intact.
"Investors are in a wait-and-see mood amid a lack of fresh trading cues and still-lingering fears about terrorist attacks", a forex dealer said.
Minutes from an October meeting of Federal Reserve policy makers suggested the central bank will likely raise interest rates in December. .
The euro tumbled against the dollar at the fag end of the week after two days of gains, pressured by comments from European Central Bank chief Mario Draghi, who signalled willingness to add more stimulus to the euro zone economy to raise inflation.
The US dollar Index DXY, a measure of the dollar against a basket of major currencies, was up 0.6 per cent at 99.59 and gained 0.8 per cent over the week.
The benchmark six-month forward dollar premium payable in April fell to 185.75-187.75 paise from the preceding weekend's level of 194.75-195.75 paise and far-forward contracts maturing in October also declined to 395.50-397.50 paise from 402.5-404 paise.
RBI fixed the reference rate for the $at 66.09 and the euro at 70.85 from the last weekend's level of 66.13 and the euro at 71.26, respectively.
The rupee declined further against the pound sterling to 101.20 from last weekend's 100.59 level, but gained to 70.80 per euro, from 71.37 previously.
It rose modestly to 53.91 per 100 yen from the last weekend's level of 53.96.
Stocks: Markets snapped 3-week losing streak on fresh buying at the current levels on the back of firm trend in the global markets on hopes that the US Federal Reserve would raise rates in December.
The 7th Pay Commission report recommended a 23.55 per cent hike in pay and allowances for Central government employees, lifting spirits.
Shares of Refinery, FMCG, Capital Goods, Consumer durable, Auto and Power sectors firmed up on good buying enquiries.
"The buying interest was in response to the Seventh Pay Commission's recommendations which will boost consumption in the economy, going forward," said Jayant Manglik, President, Retail Distribution, Religare Securities Ltd.
Meanwhile, wholesale price index-based inflation stood at (-)3.81 per cent in October, as against (-) 4.54 per cent in September, boosting investor sentiment as an uptick in October inflation showed signs of a revival in consumer demand.
"Rise in crude prices fuelled by geo-political tension has lifted sentiment globally. Finance Minister's assurance of achieving fiscal deficit target of 3.9 per cent of gross domestic product for the current fiscal bolstered confidence of investors", said Gaurav Jain, Director, Hem Securities.
The Sensex resumed lower at 25,580.15 and fell to a 2-month low of 25,451.42 on worsening global risk environment. But, recovered immediately to 26,058.76 on low level buying before finishing the week at 25,868.49, showing a gain of 257.96 points or 1.01 per cent.
The Sensex had tumbled by 1,860.28 points or 6.77 per cent in previous three weeks.
The 50-share Nifty also rose by 94.30 points or 1.21 per cent to 7,856.55. The Nifty had also fallen by 533.20 points or 6.43 per cent in previous three weeks.
Foreign portfolio investors (FPIs) continued their selling spree during the week as they sold a net Rs 2,464.43 crore as per the Sebi's record including the provisional figure of November 20.
From the 30-share Sensex pack, 20 stocks rose and 9 were losers, while Tata Motors closed unchanged during the week ended yesterday.
Major gainers were Gail India (23.14 per cent), Vedl (6.76 per cent), M&M (5.27 per cent), ITC (4.54 per cent), Cipla (4.42 per cent), Bajaj Auto (3.51 per cent), Tata Steel (3.40 per cent), Wipro (3.03 per cent), NTPC (2.83 per cent), Larsen (3.57 per cent), Maruti (2.48 per cent) and HDFC (2.16 per cent).
However, Axis Bank fell 5.07 per cent followed by Infosys 4.32 per cent, Sun Pharma 2.06 per cent and HeroMotoco 1.81 per cent.
Among the S&P BSE sectoral indices, Power rose 4.59 per cent, Oil & Gas by 4.28 per cent, FMCG by 2.81 per cent, Capital Goods by 2.35 per cent, Consumer Durables by 2.15 per cent, Auto by 2.02 per cent, Metal by 0.68, Healthcare by 0.64 per cent and Banking 0.56 per cent, while Realty fell by 1.46 per cent followed by IT by 1.11 per cent and Tech by 0.53 per cent.
The BSE Mid-cap index rose 204.93 points or 1.93 per cent to settle at 10,858.41 and the BSE Small-cap index also gained by 242.27 points or 2.17 per cent to close at 11,367.71. Both these indices outperformed the Sensex.
The total turnover at BSE and NSE recovered to Rs 13,611.90 crores and Rs 77,391.75 crores respectively from last weekend's level of Rs 9,089.11 crores and Rs 54,951.43 crores.
Forex: The rupee continued its downward march against the American currency for the sixth consecutive week, slipping by another nine paise to finish the week at 66.19 per dollar on persistent dollar demand from banks and importers on the back of sustained foreign capital outflows.
Foreign portfolio investors (FPIs) continued their selling pressure as they pumped out $358.42 million during the first four days of the week as per SEBI's record.
The rupee resumed lower at 66.20 per dollar as against last weekend's level of 66.10 at the Interbank Foreign Exchange (Forex) Market and dropped further to 66.33 before ending the week at 66.19, showing a loss of nine paise or 0.14 per cent.
The rupee has dropped 145 paise or 2.24 per cent in last six weeks.
The domestic currency hovered in a range of 65.90 and 66.33 per dollar during the week.
The dollar hit a fresh seven-month high against the euro and a one-week high against the yen indicating investor expectations for an increase in US interest rates next month that would bring added strength to the greenback remain intact.
"Investors are in a wait-and-see mood amid a lack of fresh trading cues and still-lingering fears about terrorist attacks", a forex dealer said.
Minutes from an October meeting of Federal Reserve policy makers suggested the central bank will likely raise interest rates in December. .
The euro tumbled against the dollar at the fag end of the week after two days of gains, pressured by comments from European Central Bank chief Mario Draghi, who signalled willingness to add more stimulus to the euro zone economy to raise inflation.
The US dollar Index DXY, a measure of the dollar against a basket of major currencies, was up 0.6 per cent at 99.59 and gained 0.8 per cent over the week.
The benchmark six-month forward dollar premium payable in April fell to 185.75-187.75 paise from the preceding weekend's level of 194.75-195.75 paise and far-forward contracts maturing in October also declined to 395.50-397.50 paise from 402.5-404 paise.
RBI fixed the reference rate for the $at 66.09 and the euro at 70.85 from the last weekend's level of 66.13 and the euro at 71.26, respectively.
The rupee declined further against the pound sterling to 101.20 from last weekend's 100.59 level, but gained to 70.80 per euro, from 71.37 previously.
It rose modestly to 53.91 per 100 yen from the last weekend's level of 53.96.
China's economic slowdown adversely affected India, says RBI Governor Raghuram Rajan
-
China's pain of economic slowdown is India's pain too, RBI Governor Raghuram Rajan said contradicting government assertions that India will not be affected by deceleration of Chinese economy.
"The Chinese slowdown is a concern for the whole world.
There is a lower demand for some of our exports to China. But indirectly too, many of the countries are not exporting to China as much as they did and they are buying less from us," Rajan said in an interview with Hong Kong-based South China Morning Post.
"But India being a commodity importer, has been helped a bit by cheaper commodities. So the impact has not been as bad as it could have been. Still, on the whole, we have been adversely affected by the Chinese slowdown because China's slowdown has impacted global growth and India is very well integrated into the global economy", Rajan said.
Finance Minister Arun Jaitley had told a gathering at Columbia University last month that India is "not impacted" by the slowdown as it is not part of Chinese supply chain and India could become the "additional shoulder" the global economy needs to stand on as China slows.
Some comments from India that China's pain is India's gain has drawn strong reactions from the Chinese media.
Rajan was in Hong Kong yesterday to receive honorary doctorate awarded by the Hong University of Science and Technology.
In his interview Rajan also pointed to "growing interdependence" between India and China.
"The prime minister has clearly laid out a path for improving relations with neighbours. The focus is on the East, rather than the traditional emphasis on the West. Whether it is through the Asian Infrastructure Investment Bank or through China's Silk Road initiative, we will have greater engagement with China and Chinese projects. This will also feed well into China's interests in expanding its engagement in the region," he said.
Rajan said he hopes India will emulate China 's growth rates and the country would like to learn from things China got right.
"We would like to learn from its manufacturing success, how it built up its infrastructure, how it encouraged its village enterprises and how it manages FDI s in such enormous quantities. A lot of Indian businesspeople who travel to China also keep coming back with stories of why it works better than India", he said.
"But I also stress we cannot blindly follow the path that China followed as it has already been on that path and has changed some of the conditions. We have to determine which path we follow so that there is room for both of us. Would it, for example, make sense for India to specialise in industries that China has already specialised in? In some cases there is room for both, in some maybe not", he said.
Rajan also rooted for a greater global role for the Chinese currency yuan and rubbished claims that Beijing started a currency war with its recent devaluation.
"I do not know what the ultimate requirements of the International Monetary Fund (IMF ) are and how much of these China has met. But the IMF does need to accommodate currencies of large economies with strong positions in global trade and finance, and clearly China has made a lot of progress on both counts", he said.
Rajan also said it is "very unfair" to blame Beijing for the competitive devaluation among emerging markets, contrasting the shrill anti-Chinese voices common in a country seen as China's regional rival.
"Multilateral bodies like the IMF and the World Bank are increasingly paying more attention to emerging markets. This has to continue and there needs to be changes in governance in multilateral institutions", he said.
His comments came amid reports that yuan may enter the IMF's Special Drawing Rights (SDR) basket of reserve currencies at a lower weighting. The IMF is expected to decide this month on whether to add the yuan to the elite currency club that now includes the US dollar, euro, pound sterling and the yen.
Inclusion in the SDR would boost Beijing's efforts to internationalise its currency and cement its status as a global power.
Beijing drew flak for 'starting' a currency war after it resorted to nearly four per cent devaluation of yuan in August which led to a sharp sell-off in emerging-market currencies, including the rupee.
Rajan said: "Currencies elsewhere were already depreciating in a large way even before the Chinese move because of the unconventional monetary policies adopted by some countries.
"It is not reasonable to say the Chinese move precipitated the trend. Second, given the small scale of the Chinese devaluation, it cannot be blamed for a currency war", Rajan said.
China's pain of economic slowdown is India's pain too, RBI Governor Raghuram Rajan said contradicting government assertions that India will not be affected by deceleration of Chinese economy.
"The Chinese slowdown is a concern for the whole world.
There is a lower demand for some of our exports to China. But indirectly too, many of the countries are not exporting to China as much as they did and they are buying less from us," Rajan said in an interview with Hong Kong-based South China Morning Post.
"But India being a commodity importer, has been helped a bit by cheaper commodities. So the impact has not been as bad as it could have been. Still, on the whole, we have been adversely affected by the Chinese slowdown because China's slowdown has impacted global growth and India is very well integrated into the global economy", Rajan said.
Finance Minister Arun Jaitley had told a gathering at Columbia University last month that India is "not impacted" by the slowdown as it is not part of Chinese supply chain and India could become the "additional shoulder" the global economy needs to stand on as China slows.
Some comments from India that China's pain is India's gain has drawn strong reactions from the Chinese media.
Rajan was in Hong Kong yesterday to receive honorary doctorate awarded by the Hong University of Science and Technology.
In his interview Rajan also pointed to "growing interdependence" between India and China.
"The prime minister has clearly laid out a path for improving relations with neighbours. The focus is on the East, rather than the traditional emphasis on the West. Whether it is through the Asian Infrastructure Investment Bank or through China's Silk Road initiative, we will have greater engagement with China and Chinese projects. This will also feed well into China's interests in expanding its engagement in the region," he said.
Rajan said he hopes India will emulate China 's growth rates and the country would like to learn from things China got right.
"We would like to learn from its manufacturing success, how it built up its infrastructure, how it encouraged its village enterprises and how it manages FDI s in such enormous quantities. A lot of Indian businesspeople who travel to China also keep coming back with stories of why it works better than India", he said.
"But I also stress we cannot blindly follow the path that China followed as it has already been on that path and has changed some of the conditions. We have to determine which path we follow so that there is room for both of us. Would it, for example, make sense for India to specialise in industries that China has already specialised in? In some cases there is room for both, in some maybe not", he said.
Rajan also rooted for a greater global role for the Chinese currency yuan and rubbished claims that Beijing started a currency war with its recent devaluation.
"I do not know what the ultimate requirements of the International Monetary Fund (IMF ) are and how much of these China has met. But the IMF does need to accommodate currencies of large economies with strong positions in global trade and finance, and clearly China has made a lot of progress on both counts", he said.
Rajan also said it is "very unfair" to blame Beijing for the competitive devaluation among emerging markets, contrasting the shrill anti-Chinese voices common in a country seen as China's regional rival.
"Multilateral bodies like the IMF and the World Bank are increasingly paying more attention to emerging markets. This has to continue and there needs to be changes in governance in multilateral institutions", he said.
His comments came amid reports that yuan may enter the IMF's Special Drawing Rights (SDR) basket of reserve currencies at a lower weighting. The IMF is expected to decide this month on whether to add the yuan to the elite currency club that now includes the US dollar, euro, pound sterling and the yen.
Inclusion in the SDR would boost Beijing's efforts to internationalise its currency and cement its status as a global power.
Beijing drew flak for 'starting' a currency war after it resorted to nearly four per cent devaluation of yuan in August which led to a sharp sell-off in emerging-market currencies, including the rupee.
Rajan said: "Currencies elsewhere were already depreciating in a large way even before the Chinese move because of the unconventional monetary policies adopted by some countries.
"It is not reasonable to say the Chinese move precipitated the trend. Second, given the small scale of the Chinese devaluation, it cannot be blamed for a currency war", Rajan said.
Committed to provide transparent, predictable tax regime, says PM Narendra Modi
-
With slew of measures putting back the economy on track, Prime Minister Narendra Modi on Saturday said reforms are "just a way station" to transforming India and vowed to provide a transparent and predictable tax regime as well as protection to Intellectual Property Rights.
Speaking at the ASEAN Business and Investment Summit in Kuala Lumpur, he said government actions in the past 18 months have led to bringing down inflation while at the same time leading to higher GDP growth and foreign investment.
"Reform is not an end in itself. Reform for me is just a way station on the long journey to the destination. The destination is the transformation of India," he said.
When the BJP-led government took office in May 2014, the economy faced serious challenges in high fiscal and current account deficit , stalled infrastructure projects and persistent inflation.
"It was obvious that reforms were needed. We asked ourselves the question Reforms for what? What is the aim of reform? Is it just to increase the measured rate of GDP growth? Or is it to bring about a transformation in society? My answer is clear: we must 'reform to transform'," he said.
The fruits of development have to be taken to the margins of geography and to the bottom of demography. "We have to touch lives, while reaching for the sky," he said.
Action during the last 18 months has ensured that "GDP growth is up and inflation is down, foreign investment is up and the current account deficit is down, tax revenues are up and interest rates are down, thee fiscal deficit is down and the rupee is stable," Modi said.
Stating that a series of concerted steps including structural and institutional reforms have initiated, the Prime Minister said the government was "moving fast" to make sure tax regime is transparent and predictable where genuine investors and honest tax payers get quick and fair decisions.
"Going further, I want to assure you that India is committed to protect Intellectual Property Rights of all innovators. We have taken several initiatives for transparency and online processing in IP administration. A comprehensive National IPR policy is expected by the end of the year," he said.
"To re-vitalise the flow of investments, the second wave of structural and financial reforms have been launched. "We are trying to further open up the economy and introduce an element of predictability and stability in taxation system," he said.
While productive public investment has been substantially increased, carbon taxes on fossil fuels has been imposed to show India's commitment to climate change.
Stating that the world economy was not exactly doing well, Prime Minister said the economic revival in India is the result of a series of concerted policies.
Even while cutting the fiscal deficit, productive public investment has been substantially increased.
"We have embarked on a course of fiscal consolidation. We have entered, for the first time, into a monetary framework agreement with the Reserve Bank to curb inflation," Modi said.
Recounting steps taken, he said carbon taxes on fossil fuels has been imposed, diesel price de-controlled, cess on coal hiked by three fold and wasteful expenditure has been cut.
While confidence within and outside the country has increased, the IMF and World Bank have expressed even better hope for the Indian economy this year and after, Modi said.
Macro-economic stability, he said, is good.
"Our aim is to create jobs for more than a billion young hands. To provide this, the share of manufacturing must reach around 25 per cent in our GDP," he said adding 'Make in India' campaign has been launched and government is aggressively working on ease of doing business front.
Reducing complicated procedures, making them available at one platform - preferably online, simplifying the forms and formats has been taken up on war footing, he said recalling India jumping 12 ranks in the recent World Bank's 'Ease of Doing Business Report of 2016'.
Modi said the Index of Industrial Production (IIP) has shown a distinct improvement over the previous year. "We are working in all ways to make India a global manufacturing hub."
Enumerating steps taken, he said a series of simple but powerful structural reforms in agriculture have been taken, the world's most ambitious housing for all programme launched and undertaken major improvements in the transport sector.
Concerted action to revive stalled infrastructure projects and a major revamp of the power sector have been undertaken, he said.
The pace of award of new highway works has increased from 9 kilometres per day in 2013-14 to 23 km a day currently.
"These will have large multiplier effects throughout the economy," he said.
Prime Minister said the government was committed to restore credibility in the process of allocation of natural resources.
"My government has intervened with legislative and administrative measures to improve the supply of critical inputs and raw materials. They include Coal, other minerals and spectrum. The hallmark of this intervention is allocation through transparent auction," he said.
About 190 million new bank accounts have been opened under the Jan Dhan Yojana.
In a break with over 65 years of tradition, states have been involved in framing foreign policy.
Prime Minister said the government was trying to remove the bottlenecks that were affecting growth process.
"India is a land of immense opportunities," he told the ASEAN business community. "Our democratic values and an alert judicial system ensure the safety of your investments. We have set the tone of Governance with a long term vision and an open mind. We are particularly working to make India the easiest place to do business."
He said "it is India's turn" now.
"And we know that our time has come. We are at a take-off stage. I invite you to come and see the winds of change in India," he said.
Modi said maximum focus of the government is on building futuristic infrastructure.
"By exercising tight control over unproductive expenditure, we have greatly increased capital investment by the public sector. To further augment such investments, we are encouraging the PPP (public private partnership model)," he said.
Also, National Investment and Infrastructure Fund has been set up to leverage public investments.
"We are also coming up with Tax Free Infrastructure Bonds with a view to broaden the corporate bond market and to provide long term finance for infrastructure," he said. "We are eager to work with Malaysia, Singapore and other ASEAN countries in this regard."
Prime Minister said the initiatives of 18 months has led to sentiments for private investment and inflow of foreign investment turning positive with foreign investment rising by 40 per cent.
India, he said, has been consistently ranked as the most attractive investment destination by several global agencies and institutions.
He said the government has allowed and enhanced FDI levels in key sectors including insurance, defence and railways and put most of the sectors on automatic approval route.
Also FDI policies in sectors like construction, plantation and medical devices has been rationalised and composite caps for Foreign portfolio investors has been allowed.
A new bankruptcy code has been drafted and formation of the Company Law Tribunal to expedite cases is on the way.
"We have ended retrospective taxation," he said adding the implementation of General Anti Avoidance Rules (GAAR) has been deferred.
Also, the Goods and Services Tax Bill has been introduced in Parliament.
"We are hopeful of rolling it out in 2016. This will create a unified system of taxation across the country," he said.
Calling India and ASEAN natural partners, Modi said ASEAN's ten member countries form an economic powerhouse and have emerged as one of the largest economic zones in the world.
"Last fifteen years have seen your rapid and yet stable growth. Your Macro-economic stability has been the main reason for growth and stability in South East Asia. With good governance, futuristic infrastructure and focus on new age technologies, you have created excellence," he said.
With slew of measures putting back the economy on track, Prime Minister Narendra Modi on Saturday said reforms are "just a way station" to transforming India and vowed to provide a transparent and predictable tax regime as well as protection to Intellectual Property Rights.
Speaking at the ASEAN Business and Investment Summit in Kuala Lumpur, he said government actions in the past 18 months have led to bringing down inflation while at the same time leading to higher GDP growth and foreign investment.
"Reform is not an end in itself. Reform for me is just a way station on the long journey to the destination. The destination is the transformation of India," he said.
When the BJP-led government took office in May 2014, the economy faced serious challenges in high fiscal and current account deficit , stalled infrastructure projects and persistent inflation.
"It was obvious that reforms were needed. We asked ourselves the question Reforms for what? What is the aim of reform? Is it just to increase the measured rate of GDP growth? Or is it to bring about a transformation in society? My answer is clear: we must 'reform to transform'," he said.
The fruits of development have to be taken to the margins of geography and to the bottom of demography. "We have to touch lives, while reaching for the sky," he said.
Action during the last 18 months has ensured that "GDP growth is up and inflation is down, foreign investment is up and the current account deficit is down, tax revenues are up and interest rates are down, thee fiscal deficit is down and the rupee is stable," Modi said.
Stating that a series of concerted steps including structural and institutional reforms have initiated, the Prime Minister said the government was "moving fast" to make sure tax regime is transparent and predictable where genuine investors and honest tax payers get quick and fair decisions.
"Going further, I want to assure you that India is committed to protect Intellectual Property Rights of all innovators. We have taken several initiatives for transparency and online processing in IP administration. A comprehensive National IPR policy is expected by the end of the year," he said.
"To re-vitalise the flow of investments, the second wave of structural and financial reforms have been launched. "We are trying to further open up the economy and introduce an element of predictability and stability in taxation system," he said.
While productive public investment has been substantially increased, carbon taxes on fossil fuels has been imposed to show India's commitment to climate change.
Stating that the world economy was not exactly doing well, Prime Minister said the economic revival in India is the result of a series of concerted policies.
Even while cutting the fiscal deficit, productive public investment has been substantially increased.
"We have embarked on a course of fiscal consolidation. We have entered, for the first time, into a monetary framework agreement with the Reserve Bank to curb inflation," Modi said.
Recounting steps taken, he said carbon taxes on fossil fuels has been imposed, diesel price de-controlled, cess on coal hiked by three fold and wasteful expenditure has been cut.
While confidence within and outside the country has increased, the IMF and World Bank have expressed even better hope for the Indian economy this year and after, Modi said.
Macro-economic stability, he said, is good.
"Our aim is to create jobs for more than a billion young hands. To provide this, the share of manufacturing must reach around 25 per cent in our GDP," he said adding 'Make in India' campaign has been launched and government is aggressively working on ease of doing business front.
Reducing complicated procedures, making them available at one platform - preferably online, simplifying the forms and formats has been taken up on war footing, he said recalling India jumping 12 ranks in the recent World Bank's 'Ease of Doing Business Report of 2016'.
Modi said the Index of Industrial Production (IIP) has shown a distinct improvement over the previous year. "We are working in all ways to make India a global manufacturing hub."
Enumerating steps taken, he said a series of simple but powerful structural reforms in agriculture have been taken, the world's most ambitious housing for all programme launched and undertaken major improvements in the transport sector.
Concerted action to revive stalled infrastructure projects and a major revamp of the power sector have been undertaken, he said.
The pace of award of new highway works has increased from 9 kilometres per day in 2013-14 to 23 km a day currently.
"These will have large multiplier effects throughout the economy," he said.
Prime Minister said the government was committed to restore credibility in the process of allocation of natural resources.
"My government has intervened with legislative and administrative measures to improve the supply of critical inputs and raw materials. They include Coal, other minerals and spectrum. The hallmark of this intervention is allocation through transparent auction," he said.
About 190 million new bank accounts have been opened under the Jan Dhan Yojana.
In a break with over 65 years of tradition, states have been involved in framing foreign policy.
Prime Minister said the government was trying to remove the bottlenecks that were affecting growth process.
"India is a land of immense opportunities," he told the ASEAN business community. "Our democratic values and an alert judicial system ensure the safety of your investments. We have set the tone of Governance with a long term vision and an open mind. We are particularly working to make India the easiest place to do business."
He said "it is India's turn" now.
"And we know that our time has come. We are at a take-off stage. I invite you to come and see the winds of change in India," he said.
Modi said maximum focus of the government is on building futuristic infrastructure.
"By exercising tight control over unproductive expenditure, we have greatly increased capital investment by the public sector. To further augment such investments, we are encouraging the PPP (public private partnership model)," he said.
Also, National Investment and Infrastructure Fund has been set up to leverage public investments.
"We are also coming up with Tax Free Infrastructure Bonds with a view to broaden the corporate bond market and to provide long term finance for infrastructure," he said. "We are eager to work with Malaysia, Singapore and other ASEAN countries in this regard."
Prime Minister said the initiatives of 18 months has led to sentiments for private investment and inflow of foreign investment turning positive with foreign investment rising by 40 per cent.
India, he said, has been consistently ranked as the most attractive investment destination by several global agencies and institutions.
He said the government has allowed and enhanced FDI levels in key sectors including insurance, defence and railways and put most of the sectors on automatic approval route.
Also FDI policies in sectors like construction, plantation and medical devices has been rationalised and composite caps for Foreign portfolio investors has been allowed.
A new bankruptcy code has been drafted and formation of the Company Law Tribunal to expedite cases is on the way.
"We have ended retrospective taxation," he said adding the implementation of General Anti Avoidance Rules (GAAR) has been deferred.
Also, the Goods and Services Tax Bill has been introduced in Parliament.
"We are hopeful of rolling it out in 2016. This will create a unified system of taxation across the country," he said.
Calling India and ASEAN natural partners, Modi said ASEAN's ten member countries form an economic powerhouse and have emerged as one of the largest economic zones in the world.
"Last fifteen years have seen your rapid and yet stable growth. Your Macro-economic stability has been the main reason for growth and stability in South East Asia. With good governance, futuristic infrastructure and focus on new age technologies, you have created excellence," he said.
Flaws in gold deposit scheme cause tepid response
-
The Indian government's move to bring out over 22,000 tonnes of Rs 50 lakh crore worth gold lying idle with Indian households and institutions through gold monetisation schemes (GMEs) has met with an unexpected tepid response in the initial phase.
In the gold deposit scheme , only 400 gm of gold has been monetised so far, according to various reports quoting official sources. Another gold bond scheme , which started on November 5, with an offer of 2.75 per cent interest to buyers, will end today. This scheme is likely to gross around Rs 150 crore, said reports.
The GMEs' objective is to mobilise the gold held by households and institutions in the country to provide a fillip to the gems and jewellery sector by making gold available as raw material on loan from the banks and to reduce reliance on import of gold over time to meet the domestic demand. India is no longer a major producer of gold and over 600 tonnes of gold are required to make jewellery every year in the country, according to statistics from the World Gold Council.
While bankers and industry sources give reasons like inadequate preparation time to launch the schemes, roping in of adequate testing centres and lack of publicity as reasons for the dull response, industry observers point out there are many flaws in the scheme that deter people having idle gold in their vaults to go for the scheme.
Sources point out that a lion's share of the gold in India is in the form of jewellery in households and the gold monetisation scheme demands melting of the jewellery to monetise through the gold deposit scheme with banks.
As per the government's scheme, the customer first has to take the gold to the approved hallmarking centres for purity testing and should give consent for melting the gold to test for purity and quantity certification. The banks will consider only the pure melted gold and not ornaments for opening a 'Gold Saving Account'.
If a customer deposits 100 gm of gold and gets 1 per cent interest, then, on maturity of a minimum one year he will have a credit of 101 gm. On maturity, the customer can take back the gold or claim money.
They point out gold jewellery has a big emotional connect, especially with women. In states like Kerala and Tamil Nadu, where over half the jewellery sales are happening, traditionally jewellery is handed over from generation to generation. The cultural affinity and sentimental value of gold would be a decisive factor in making the gold monetisation schemes a success.
"Gold ornaments have an emotional connect apart from their cash value and often they comprise ancestral wealth which people do not want to lose", says VP Nandakumar, CEO and Managing Director of Manappuram Finance. "Though jewellery is valued as an asset, is not seen as any other financial instrument to make profits," notes an industry analyst.
A UBS research report, which had predicted the current GME scheme potential to perform better than the previous initiatives based on a survey, had said it would take some time for the scheme to gain traction, especially among rural areas.
The Indian government's move to bring out over 22,000 tonnes of Rs 50 lakh crore worth gold lying idle with Indian households and institutions through gold monetisation schemes (GMEs) has met with an unexpected tepid response in the initial phase.
In the gold deposit scheme , only 400 gm of gold has been monetised so far, according to various reports quoting official sources. Another gold bond scheme , which started on November 5, with an offer of 2.75 per cent interest to buyers, will end today. This scheme is likely to gross around Rs 150 crore, said reports.
The GMEs' objective is to mobilise the gold held by households and institutions in the country to provide a fillip to the gems and jewellery sector by making gold available as raw material on loan from the banks and to reduce reliance on import of gold over time to meet the domestic demand. India is no longer a major producer of gold and over 600 tonnes of gold are required to make jewellery every year in the country, according to statistics from the World Gold Council.
While bankers and industry sources give reasons like inadequate preparation time to launch the schemes, roping in of adequate testing centres and lack of publicity as reasons for the dull response, industry observers point out there are many flaws in the scheme that deter people having idle gold in their vaults to go for the scheme.
Sources point out that a lion's share of the gold in India is in the form of jewellery in households and the gold monetisation scheme demands melting of the jewellery to monetise through the gold deposit scheme with banks.
As per the government's scheme, the customer first has to take the gold to the approved hallmarking centres for purity testing and should give consent for melting the gold to test for purity and quantity certification. The banks will consider only the pure melted gold and not ornaments for opening a 'Gold Saving Account'.
If a customer deposits 100 gm of gold and gets 1 per cent interest, then, on maturity of a minimum one year he will have a credit of 101 gm. On maturity, the customer can take back the gold or claim money.
They point out gold jewellery has a big emotional connect, especially with women. In states like Kerala and Tamil Nadu, where over half the jewellery sales are happening, traditionally jewellery is handed over from generation to generation. The cultural affinity and sentimental value of gold would be a decisive factor in making the gold monetisation schemes a success.
"Gold ornaments have an emotional connect apart from their cash value and often they comprise ancestral wealth which people do not want to lose", says VP Nandakumar, CEO and Managing Director of Manappuram Finance. "Though jewellery is valued as an asset, is not seen as any other financial instrument to make profits," notes an industry analyst.
A UBS research report, which had predicted the current GME scheme potential to perform better than the previous initiatives based on a survey, had said it would take some time for the scheme to gain traction, especially among rural areas.
Government unveils road map for phasing out corporate tax exemptions
-
Government has unveiled details of its plan to phase out some tax exemptions for companies as the government looks to simplify tax laws and make them transparent before it lowers the tax rate.
Over four years, the government plans to lower the corporate tax rate to 25 per cent from 30 per cent, Finance Minister Arun Jaitley had said in his budget speech in February. During that period, exemptions and deductions will be phased out.
Profit-linked, investment-linked and area-based deductions will be phased out for both corporate and non-corporate tax payers, according to a document posted on the tax office's website late on Friday.
For tax incentives with no set date of termination, the government will set March 31, 2017 as the so-called sunset date, the tax office said.
This will apply to development, operation and maintenance of infrastructure facilities, development of special economic zones as well as commercial production of natural gas and mineral blocks, according to the document.
Gokul Chaudhri, head of the direct tax practice at BMR & Associates LLP in New Delhi, said the industry "would have" hoped for a lengthened and staggered phase-out of incentives, especially for capital-intensive and long-term projects in fields such as power and upstream oil and gas.
The government has asked for stakeholder comments on the proposals within 15 days.
Government has unveiled details of its plan to phase out some tax exemptions for companies as the government looks to simplify tax laws and make them transparent before it lowers the tax rate.
Over four years, the government plans to lower the corporate tax rate to 25 per cent from 30 per cent, Finance Minister Arun Jaitley had said in his budget speech in February. During that period, exemptions and deductions will be phased out.
Profit-linked, investment-linked and area-based deductions will be phased out for both corporate and non-corporate tax payers, according to a document posted on the tax office's website late on Friday.
For tax incentives with no set date of termination, the government will set March 31, 2017 as the so-called sunset date, the tax office said.
This will apply to development, operation and maintenance of infrastructure facilities, development of special economic zones as well as commercial production of natural gas and mineral blocks, according to the document.
Gokul Chaudhri, head of the direct tax practice at BMR & Associates LLP in New Delhi, said the industry "would have" hoped for a lengthened and staggered phase-out of incentives, especially for capital-intensive and long-term projects in fields such as power and upstream oil and gas.
The government has asked for stakeholder comments on the proposals within 15 days.
General Awareness
Global gender index: India mounted to 108th position
-
-
India has improved its position in World Economic Forum (WEF) Global gender index (up from 114 of the 142 countries in 2014) with a score of 0.664.
- India has been ranked at 108th position out of 145 countries.
- India ranks among the most improved countries in the region in terms of political representation.
Top 10 performers
Rank Country 1 Iceland 2 Norway 3 Finland 4 Sweden 5 Ireland 6 Rwanda 7 Philippines 8 Switzerland 9 Slovenia 10 New Zealand
India’s ranking in different fields
Women in the workforce – India fell five places and ranked at 139th out of 145 countries.
Health and survival sub-index – Placed at 143rd out of 145, just ahead of China and Albania
Sex ratio at birth – 143rd, ahead only of China and Armenia
Educational attainment – Marginally improvement with one place from 126th rank in 2014 to 125th in 2015
Female to male ratio – India’s labour force participation is 0.35 compared to 0.36 last year.
Income disparity – Women earning an estimated average of $2,257 per yearcompared with $9,175 for men.
Reason behind improvement in overall ranking
There are more women in positions of political leadership jumping from 9% to 22% in the cabinet. PM Narendra Modi’s cabinet has six women ministers.
- The 16th Lok Sabha also saw a rise in the number of women parliamentarians from 4% to 12.15%.
Keys
Women ministers in Prime Minister Narendra Modi-led government
- External Affairs Minister Sushma Swaraj
- Minority Affairs Minister Najma Heptulla
- Human Resource Development Minister Smriti Irani
- Women and Child Welfare Minister Maneka Gandhi
Women CMs
- Anandi Ben in Gujarat
- J Jayalalithaa in Tamil Nadu
- Vasundhara Raje in Rajasthan
- Mamata Banerjee in West Bengal
- India has improved its position in World Economic Forum (WEF) Global gender index (up from 114 of the 142 countries in 2014) with a score of 0.664.
- India has been ranked at 108th position out of 145 countries.
- India ranks among the most improved countries in the region in terms of political representation.
Top 10 performersIndia’s ranking in different fieldsRank Country 1 Iceland 2 Norway 3 Finland 4 Sweden 5 Ireland 6 Rwanda 7 Philippines 8 Switzerland 9 Slovenia 10 New Zealand
Women in the workforce – India fell five places and ranked at 139th out of 145 countries.
Health and survival sub-index – Placed at 143rd out of 145, just ahead of China and Albania
Sex ratio at birth – 143rd, ahead only of China and Armenia
Educational attainment – Marginally improvement with one place from 126th rank in 2014 to 125th in 2015
Female to male ratio – India’s labour force participation is 0.35 compared to 0.36 last year.
Income disparity – Women earning an estimated average of $2,257 per yearcompared with $9,175 for men.
Reason behind improvement in overall ranking
There are more women in positions of political leadership jumping from 9% to 22% in the cabinet. PM Narendra Modi’s cabinet has six women ministers.- The 16th Lok Sabha also saw a rise in the number of women parliamentarians from 4% to 12.15%.
KeysWomen ministers in Prime Minister Narendra Modi-led government- External Affairs Minister Sushma Swaraj
- Minority Affairs Minister Najma Heptulla
- Human Resource Development Minister Smriti Irani
- Women and Child Welfare Minister Maneka Gandhi
Women CMs- Anandi Ben in Gujarat
- J Jayalalithaa in Tamil Nadu
- Vasundhara Raje in Rajasthan
- Mamata Banerjee in West Bengal
No comments:
Post a Comment