General Affairs
Poverty Is The Biggest Challenge For Environment: PM Modi
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NEW DELHI: Asserting India's stand in tackling climate change, Prime Minister Narendra Modi today said same set of rules cannot be applied to all countries "uniformly" even as he identified poverty as the biggest challenge for environment.
PM Modi said sometimes the concern for environment was defined "narrowly" while making a strong pitch for "climate justice", addressing a conference on sustainable development which was attended by Chief Justice of India TS Thakur among others.
Suggesting a balanced approach in combating climate change, he said every country has its own challenges and ways to dealing with them and "If we apply the same set of rules for all countries and for all people, it will not work."
Noting that a path becomes sustainable, if all stakeholders are benefited, he also added a word of caution saying the stake should be natural and inherent and it "cannot be stretched to include those who may be working with ulterior motives."
"India has been maintaining that the developed countries have been historical polluters and they should contribute more to address the problem of climate change," the Prime Minister said.
"The rule of law dictates that no one can be punished for another's misdeed. We need to recognise that there are many people who are least responsible for the problem of climate change. They are also the people who still wait for access to modern amenities," he said.
He said the poor, vulnerable and marginalized groups have fewer resources to cope with climate disasters and that their present and future generations are also burdened by laws and agreements on environment.
"That is why I talk about Climate Justice. Moreover, the rules, laws, practices and principles of one country cannot be applied to another uniformly," PM Modi said.
The Prime Minister also chose the occasion to highlight his government's commitment towards poverty eradication and linked it with environment protection.
"I am sure all of us agree that poverty is the biggest challenge for environment. Therefore, eradication of poverty is one of the fundamental goals of my government. Guided by our core values, we are working towards achieving this goal with sincerity. We want to ensure a conducive environment for 1.25 billion Indians to develop, and prosper," he said.
Speaking at the event, Environment Minister Prakash Javadekar said judiciary, legislative and executive must respect each other, see each other's restraint and concerns as he talked about the gap between India's population and natural resources available for development.
Finance Minister Arun Jaitley pitched for achieving balance between developmental needs and environmental concerns to reconcile the contradictions between "ideal ecology and ideal economy".
NEW DELHI: Asserting India's stand in tackling climate change, Prime Minister Narendra Modi today said same set of rules cannot be applied to all countries "uniformly" even as he identified poverty as the biggest challenge for environment.PM Modi said sometimes the concern for environment was defined "narrowly" while making a strong pitch for "climate justice", addressing a conference on sustainable development which was attended by Chief Justice of India TS Thakur among others.
Noting that a path becomes sustainable, if all stakeholders are benefited, he also added a word of caution saying the stake should be natural and inherent and it "cannot be stretched to include those who may be working with ulterior motives."
"India has been maintaining that the developed countries have been historical polluters and they should contribute more to address the problem of climate change," the Prime Minister said.
"The rule of law dictates that no one can be punished for another's misdeed. We need to recognise that there are many people who are least responsible for the problem of climate change. They are also the people who still wait for access to modern amenities," he said.
He said the poor, vulnerable and marginalized groups have fewer resources to cope with climate disasters and that their present and future generations are also burdened by laws and agreements on environment.
"That is why I talk about Climate Justice. Moreover, the rules, laws, practices and principles of one country cannot be applied to another uniformly," PM Modi said.
The Prime Minister also chose the occasion to highlight his government's commitment towards poverty eradication and linked it with environment protection.
"I am sure all of us agree that poverty is the biggest challenge for environment. Therefore, eradication of poverty is one of the fundamental goals of my government. Guided by our core values, we are working towards achieving this goal with sincerity. We want to ensure a conducive environment for 1.25 billion Indians to develop, and prosper," he said.
Speaking at the event, Environment Minister Prakash Javadekar said judiciary, legislative and executive must respect each other, see each other's restraint and concerns as he talked about the gap between India's population and natural resources available for development.
Finance Minister Arun Jaitley pitched for achieving balance between developmental needs and environmental concerns to reconcile the contradictions between "ideal ecology and ideal economy".
Not Afraid Of Criticism Of Going Ahead With BJP: Mehbooba Mufti
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JAMMU: After two-month suspense, Peoples Democratic Party (PDP) chief Mehbooba Mufti today dropped hints of going ahead with BJP in government formation, saying she was "not afraid" of criticism over it but wanted the Centre to send out a "signal" that it will do "everything" for the welfare of people of Jammu and Kashmir.
She invoked her late father Mufti Sayeed, saying he had "not joined hands with BJP as a party but it was a coalition between the Central government and the people of Jammu and Kashmir" with an aim of benefitting the people of the state.
"For us, the decision taken by my father.., if that aim and that aspiration is fulfilled then I am not afraid if people blame me for going with BJP whether they feel good or bad. If people are benefitted then there is no issue," Ms Sayeed said while launching party's membership drive.
"When it came to the benefit of people, my father did not care about the party. He rose above everything and joined hands with BJP for the welfare of the people", she said.
Insisting that she was not an "adamant" lady, she said her party leaders want the formation of the government but she will do that when she feels that the bigger aim was fulfilled. And if the aim of forgoing an alliance with BJP is fulfilled, then she has no objection in forming the government, she said.
"If I feel that the aim is fulfilled, which is the need of the hour, situation is not normal in Jammu and Kashmir after Mufti's death. My father did not join hands with BJP as a party. The coalition was between the Central government and the people of Jammu and Kashmir," Ms Sayeed said.
"If they send such a signal that for the people of Jammu and Kashmir for their welfare they will do everything. It is such a huge country, its treasures would not run empty," she said.
Ms Sayeed went on to add, "If at any time I feel that they (Centre) have space in their hearts for the people of Jammu and Kashmir and a framework which we have made and they are ready to put colours in that framework, then I do not have any hesitation in becoming Chief Minister of this state would be a matter of honour."
JAMMU: After two-month suspense, Peoples Democratic Party (PDP) chief Mehbooba Mufti today dropped hints of going ahead with BJP in government formation, saying she was "not afraid" of criticism over it but wanted the Centre to send out a "signal" that it will do "everything" for the welfare of people of Jammu and Kashmir.She invoked her late father Mufti Sayeed, saying he had "not joined hands with BJP as a party but it was a coalition between the Central government and the people of Jammu and Kashmir" with an aim of benefitting the people of the state.
"When it came to the benefit of people, my father did not care about the party. He rose above everything and joined hands with BJP for the welfare of the people", she said.
Insisting that she was not an "adamant" lady, she said her party leaders want the formation of the government but she will do that when she feels that the bigger aim was fulfilled. And if the aim of forgoing an alliance with BJP is fulfilled, then she has no objection in forming the government, she said.
"If I feel that the aim is fulfilled, which is the need of the hour, situation is not normal in Jammu and Kashmir after Mufti's death. My father did not join hands with BJP as a party. The coalition was between the Central government and the people of Jammu and Kashmir," Ms Sayeed said.
"If they send such a signal that for the people of Jammu and Kashmir for their welfare they will do everything. It is such a huge country, its treasures would not run empty," she said.
Ms Sayeed went on to add, "If at any time I feel that they (Centre) have space in their hearts for the people of Jammu and Kashmir and a framework which we have made and they are ready to put colours in that framework, then I do not have any hesitation in becoming Chief Minister of this state would be a matter of honour."
Government Recalibrates Foreign Military Sales Account In US
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NEW DELHI: The government has "recalibrated" the management of an account, which was used to pay money to the US under Foreign Military Sales (FMS) route, after a review showed that nearly Rs. 15,400 crore (USD 2.3 billion) had piled up without earning any interest, Defence Minister Manohar Parrikar today said.
The minister also said that the Defence Budget for the next fiscal, "nearly Rs. 2.59 lakh crore" sans the pension allocation, was adequate and as per the ministry's requirement.
India and the US have now fine-tuned the FMS procedure whereby rather than raising bills case-wise every quarter, all the funds against various cases have been pooled together in a corpus.
The corpus had been created in September last year, defence sources said.
A statement released by the ministry said that as and when funds are required to be paid per case, fullfilment of contractual liabilities, the said amount is being withdrawn from the corpus.
"Consequent to this creation of the corpus in consultation with the US government, no payments have been made in the last two quarters of the financial year 2015-16, against cases which necessitated payments, against the said contracts," said the ministry.
"Instead, payment is being effected from the corpus of 2.3 billion US dollars. It is hoped that no payments shall be required to be made till the amount of 2.3 billion US dollars is depleted and there is a necessity for us to replenish certain amount as required," the ministry added.
It said that this has happened through "scrupulous and holistic financial management".
Consequently, while the US government will continue to meet their contractual obligations, there will be no additional burden on the Indian government on this account.
It enables utilisation of scarce funds on other projects and hedges the country against adverse exchange rates, the ministry said.
Earlier in the day, Mr Parrikar, who had put the corpus figure at about Rs. 20,000 crore (USD 3 billion), countered reports that the ministry has failed to utilise about Rs. 11,000 crore from the capital budget of 2015-16. He said the country has actually saved money.
He said that even though the provision of capital acquisition in the budget was around Rs.77,000 crore, the actual anticipated spending will be around Rs. 66,000 crore.
"We have taken measures by which Rs. 11,000 crore saving appears there," Mr Parrikar said, briefing reporters about the defence budget for the next fiscal.
NEW DELHI: The government has "recalibrated" the management of an account, which was used to pay money to the US under Foreign Military Sales (FMS) route, after a review showed that nearly Rs. 15,400 crore (USD 2.3 billion) had piled up without earning any interest, Defence Minister Manohar Parrikar today said.The minister also said that the Defence Budget for the next fiscal, "nearly Rs. 2.59 lakh crore" sans the pension allocation, was adequate and as per the ministry's requirement.
The corpus had been created in September last year, defence sources said.
A statement released by the ministry said that as and when funds are required to be paid per case, fullfilment of contractual liabilities, the said amount is being withdrawn from the corpus.
"Consequent to this creation of the corpus in consultation with the US government, no payments have been made in the last two quarters of the financial year 2015-16, against cases which necessitated payments, against the said contracts," said the ministry.
"Instead, payment is being effected from the corpus of 2.3 billion US dollars. It is hoped that no payments shall be required to be made till the amount of 2.3 billion US dollars is depleted and there is a necessity for us to replenish certain amount as required," the ministry added.
It said that this has happened through "scrupulous and holistic financial management".
Consequently, while the US government will continue to meet their contractual obligations, there will be no additional burden on the Indian government on this account.
It enables utilisation of scarce funds on other projects and hedges the country against adverse exchange rates, the ministry said.
Earlier in the day, Mr Parrikar, who had put the corpus figure at about Rs. 20,000 crore (USD 3 billion), countered reports that the ministry has failed to utilise about Rs. 11,000 crore from the capital budget of 2015-16. He said the country has actually saved money.
He said that even though the provision of capital acquisition in the budget was around Rs.77,000 crore, the actual anticipated spending will be around Rs. 66,000 crore.
"We have taken measures by which Rs. 11,000 crore saving appears there," Mr Parrikar said, briefing reporters about the defence budget for the next fiscal.
Why Nobel Laureate Kailash Satyarthi Vetoes The New Anti-Child Labour Bill
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NEW DELHI: Nobel laureate Kailash Satyarthi is on a mission to make sure the amendments to the Anti-Child Labour law introduced this week in Parliament do not go through. This may seem odd for a man who has been campaigning tirelessly for a tougher law to end child labour in India but he has his reasons.
He said, "I would never agree on this present form of the Bill. That should not be passed in the Parliament because this is regressive and I would never allow it to be passed."
Mr Satyarthi has objections to two major amendments. Though the Bill bans anyone up to 18 from working in any hazardous industry, there's a catch. The list of hazardous industries has now been cut from 83 to just three. So, zari factories, carpet making, bindi factories are all legal industries now, according to this amendment. As Mr Satyarthi points out, most of the children rescued by just his organisation in the last decade would not have been freed under this new amendment because working here would now be considered non-hazardous.
Interestingly, the parliamentary standing committee looking into this had also recommended this amendment be changed but it was rejected by the ministry. The second amendment that Mr Satyarthi is opposing is the vague definition of family, which can include distant relatives. Again, he points out that most of the children rescued from what he calls 'modern day slavery' are working with so called 'chachas' or 'mamus'. Mr Satyarthi spoke exclusively Dialogues and ended his interview with an impassioned appeal to the Prime Minister.
"Of course, we are so proud that a chaiwaala has become the Prime Minister. It's a great accomplishment for any Indian. But how many chaiwaalas are going to help India become Digital India or Skill India, if they are not given full-time, good quality education. And the education does not mean just going to school. Education now, the global commitment is quality education, inclusive education and equitable education. That is our commitment to the world."
NEW DELHI: Nobel laureate Kailash Satyarthi is on a mission to make sure the amendments to the Anti-Child Labour law introduced this week in Parliament do not go through. This may seem odd for a man who has been campaigning tirelessly for a tougher law to end child labour in India but he has his reasons.He said, "I would never agree on this present form of the Bill. That should not be passed in the Parliament because this is regressive and I would never allow it to be passed."
Interestingly, the parliamentary standing committee looking into this had also recommended this amendment be changed but it was rejected by the ministry. The second amendment that Mr Satyarthi is opposing is the vague definition of family, which can include distant relatives. Again, he points out that most of the children rescued from what he calls 'modern day slavery' are working with so called 'chachas' or 'mamus'. Mr Satyarthi spoke exclusively Dialogues and ended his interview with an impassioned appeal to the Prime Minister.
"Of course, we are so proud that a chaiwaala has become the Prime Minister. It's a great accomplishment for any Indian. But how many chaiwaalas are going to help India become Digital India or Skill India, if they are not given full-time, good quality education. And the education does not mean just going to school. Education now, the global commitment is quality education, inclusive education and equitable education. That is our commitment to the world."
Religion Should Not Be Used As A Political Tool: Hamid Karzai
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KANPUR, UTTAR PRADESH: Religion should not be used as a political tool as it causes immense harm, former Afghan president Hamid Karzai has said, asking Pakistan to turn a new leaf so that there is peace in the region and the countries can progress.
The people of Afghanistan were "misled" in the name of religion, he said while interacting with Indian Institute of Kanpur (IIT)-Kanpur students during the annual technical festival 'Techkriti' last evening.
Mr Karzai, who recalled his student days in India, said when he returned to Afghanistan, the environment had considerably deteriorated as "on one hand there was Soviet Union which wanted to impose communist ideology and on the other hand there was Pakistan indulging in religious extremism. Afghanistan was caught in the middle and completely destroyed as a result".
"There were no universities or schools. Only violence in the name of religion. And post 9/11 attacks in the US, the situation worsened," he said.
Highlighting the need for India, Pakistan and Afghanistan to come together for mutual progress, Mr Karzai said, "I proudly say that I am a Muslim, but religion should be treated just as a religion and not as a political tool as that would cause immense damage.
"People of Pakistan also want peace and that is why Pakistan must take this initiative to come closer to India and Afghanistan. This will not only bring peace and progress to all the three nations but also strengthen economic ties with rest of the central Asia," he said.
Praising India's support to Afghanistan's reconstruction and rehabilitation, Mr Karzai said, "India is our greatest ally.
India has provided scholarship to around 60,000 of our students in last 14 years. They have also helped us in opening various universities, colleges in our country. The bond between us has strengthened with time."
Mr Karzai said both India and Afghanistan have suffered due to terrorism and have only emerged stronger.
KANPUR, UTTAR PRADESH: Religion should not be used as a political tool as it causes immense harm, former Afghan president Hamid Karzai has said, asking Pakistan to turn a new leaf so that there is peace in the region and the countries can progress.The people of Afghanistan were "misled" in the name of religion, he said while interacting with Indian Institute of Kanpur (IIT)-Kanpur students during the annual technical festival 'Techkriti' last evening.
"There were no universities or schools. Only violence in the name of religion. And post 9/11 attacks in the US, the situation worsened," he said.
Highlighting the need for India, Pakistan and Afghanistan to come together for mutual progress, Mr Karzai said, "I proudly say that I am a Muslim, but religion should be treated just as a religion and not as a political tool as that would cause immense damage.
"People of Pakistan also want peace and that is why Pakistan must take this initiative to come closer to India and Afghanistan. This will not only bring peace and progress to all the three nations but also strengthen economic ties with rest of the central Asia," he said.
Praising India's support to Afghanistan's reconstruction and rehabilitation, Mr Karzai said, "India is our greatest ally.
India has provided scholarship to around 60,000 of our students in last 14 years. They have also helped us in opening various universities, colleges in our country. The bond between us has strengthened with time."
Mr Karzai said both India and Afghanistan have suffered due to terrorism and have only emerged stronger.
Business Affairs
Sensex, Nifty record best weekly gain since 2011; Bank Nifty top sectoral gainer
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Extending gains for the fourth consecutive session, the S&P BSE Sensex gained 39 points, while broader CNX Nifty settled below its key 7,500-mark after testing it.
The headline indices scuttled between red and green but logged their best weekly gain in more than four years after the government unveiled a fiscally prudent union budget.
The 30-share index ended the day at 24,646, up 39.49 points, while broad-based 50-share index quoted 7,485, up 9.75 points at close.
Market breadth turned positive with 16 of the 30 Sensex components ending the day in green.
BHEL was the top Sensex gainer and added 4 per cent on the Bombay Stock Exchange (BSE).
Investor sentiment has improved after the government stuck to its fiscal deficit target for the next financial year, raising hopes the Reserve Bank of India would soon cut key policy rates.
Shares in state-run lenders rallied this week after the RBI said it would ease capital requirement rules.
The Bank Nifty recorded its best weekly gain in nearly two years and closed the day 1.06 per cent higher.
The gains have also come amidst an improving global market environment. Asian shares looked set to post their strongest week in five months after a string of positive US economic data and a bounce in oil and commodity prices.
But barring an expected rate cut from the RBI, traders anticipated markets to remain largely range-bound as the prospect of falls in global markets and crude oil prices could cap gains.
"Some consolidation is the need of the hour given the kind of run-up we had already seen," said Gaurang Shah, vice president at Geojit BNP Paribas Financial Services.
"Next week trigger will be in the form of a rate cut, if it comes through."
Meanwhile, extending gains for the sixth session, the rupee appreciated 17 paise to 67.17 against the US dollar as the greenback stayed on the defensive against its major peers after soft service sector employment data dampened expectations the Federal Reserve would hike interest rates soon.
Among Asian markets, China's Shanghai Composite ended the day with an uptick of 0.50 per cent, Hong Kong's Hang Seng added 1.18 per cent, while Japan's Nikkei turned into green at close to gain 0.32 per cent.
Extending gains for the fourth consecutive session, the S&P BSE Sensex gained 39 points, while broader CNX Nifty settled below its key 7,500-mark after testing it.
The headline indices scuttled between red and green but logged their best weekly gain in more than four years after the government unveiled a fiscally prudent union budget.
The 30-share index ended the day at 24,646, up 39.49 points, while broad-based 50-share index quoted 7,485, up 9.75 points at close.
Market breadth turned positive with 16 of the 30 Sensex components ending the day in green.
BHEL was the top Sensex gainer and added 4 per cent on the Bombay Stock Exchange (BSE).
Investor sentiment has improved after the government stuck to its fiscal deficit target for the next financial year, raising hopes the Reserve Bank of India would soon cut key policy rates.
Shares in state-run lenders rallied this week after the RBI said it would ease capital requirement rules.
The Bank Nifty recorded its best weekly gain in nearly two years and closed the day 1.06 per cent higher.
The gains have also come amidst an improving global market environment. Asian shares looked set to post their strongest week in five months after a string of positive US economic data and a bounce in oil and commodity prices.
But barring an expected rate cut from the RBI, traders anticipated markets to remain largely range-bound as the prospect of falls in global markets and crude oil prices could cap gains.
"Some consolidation is the need of the hour given the kind of run-up we had already seen," said Gaurang Shah, vice president at Geojit BNP Paribas Financial Services.
"Next week trigger will be in the form of a rate cut, if it comes through."
Meanwhile, extending gains for the sixth session, the rupee appreciated 17 paise to 67.17 against the US dollar as the greenback stayed on the defensive against its major peers after soft service sector employment data dampened expectations the Federal Reserve would hike interest rates soon.
Among Asian markets, China's Shanghai Composite ended the day with an uptick of 0.50 per cent, Hong Kong's Hang Seng added 1.18 per cent, while Japan's Nikkei turned into green at close to gain 0.32 per cent.
Jewellers over Rs 12 cr turnover liable for 1% excise: Finance Ministry
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As jewellery shops across India remained shut for a third day to oppose levy of excise duty, the government on Friday went into damage control, clarifying that the 1 per cent levy on non-silver articles would be only for jewellers with Rs 12 crore turnover and not small traders.
Meanwhile, stepping up pressure, jewellery traders have decided to extend their strike till March 7, saying the new duty will not just hit business during slowdown but also put a significant compliance burden on the industry, which has been weighed down by the import duty and a value-added tax.
Finance Ministry issued a statement to clarify that Budget 2016-17 has proposed a nominal excise duty of 1 per cent (without input tax credit) and 12.5 per cent (with input tax credit) on articles of jewellery.
"Even for this nominal 1 per cent excise duty, manufacturers are allowed to take credit of input services, which can be utilised for payment of duty on jewellery," it said.
Finance Ministry said central excise officers have been directed not to visit the premises of jewellery manufacturers.
It said the Budget provides for excise duty exemption limit of Rs 6 crore in a year for Small Scale Industries in jewellery business (as against normal limit of Rs 1.5 crore).
"Thus, only if the turnover of a jeweller during preceding financial year was more than Rs 12 crore, he will be liable to pay the excise duty," the statement said.
Jewellers having turnover below Rs 12 crore during preceding financial year will be eligible for exemption up to Rs 6 crore during the fiscal.
"Such small jewellers will be eligible for exemptions up to Rs 50 lakh for the month of March 2016," it said.
Indirect tax proposals come into effect from the date Budget is presented in Parliament and so the exemption for small jewellers, with turnover of less than Rs 12 crore a year, would be Rs 50 lakh in March.
Articles of silver jewellery (other than those studded with diamonds, ruby, emerald or sapphire) are exempt from this duty.
As jewellery shops across India remained shut for a third day to oppose levy of excise duty, the government on Friday went into damage control, clarifying that the 1 per cent levy on non-silver articles would be only for jewellers with Rs 12 crore turnover and not small traders.
Meanwhile, stepping up pressure, jewellery traders have decided to extend their strike till March 7, saying the new duty will not just hit business during slowdown but also put a significant compliance burden on the industry, which has been weighed down by the import duty and a value-added tax.
Finance Ministry issued a statement to clarify that Budget 2016-17 has proposed a nominal excise duty of 1 per cent (without input tax credit) and 12.5 per cent (with input tax credit) on articles of jewellery.
"Even for this nominal 1 per cent excise duty, manufacturers are allowed to take credit of input services, which can be utilised for payment of duty on jewellery," it said.
Finance Ministry said central excise officers have been directed not to visit the premises of jewellery manufacturers.
It said the Budget provides for excise duty exemption limit of Rs 6 crore in a year for Small Scale Industries in jewellery business (as against normal limit of Rs 1.5 crore).
"Thus, only if the turnover of a jeweller during preceding financial year was more than Rs 12 crore, he will be liable to pay the excise duty," the statement said.
Jewellers having turnover below Rs 12 crore during preceding financial year will be eligible for exemption up to Rs 6 crore during the fiscal.
"Such small jewellers will be eligible for exemptions up to Rs 50 lakh for the month of March 2016," it said.
Indirect tax proposals come into effect from the date Budget is presented in Parliament and so the exemption for small jewellers, with turnover of less than Rs 12 crore a year, would be Rs 50 lakh in March.
Articles of silver jewellery (other than those studded with diamonds, ruby, emerald or sapphire) are exempt from this duty.
Arun Jaitley's fiscal math averts rupee's fall to all-time low, but for how long?
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How would you like if rupee turns 70 against dollar? Seems unlikely given the recent rally?
Well, think twice!
Rupee may have gained 138 paise, or 2.01 per cent in last five consecutive days, it is still second worst performing Asian currencies year-to-date after Korean won.
If experts are to be believed, the domestic currency may hit 70 against US dollar by the end of December as Budget euphoria will not stay longer and the currency will get back at the mercy of global headwinds along with US Federal Reserve's action on interest rates. Not to forget China's possible yuan devaluation that may engineer a currency war.
"The recent rally in rupee has caught many traders on the wrong foot. In the immediate short term, the overall favorable sentiment that has developed after the budget is likely to continue, but going forward the global headwinds and the Fed rate trajectory will guide the movement of rupee," told Gaurav Kumar Sharma, Currency Analyst, Religare Securities to Business Today online.
The expert expects the rupee to depreciate and test 69.50-70 levels by the end of December. However, he added it will trade in the range of 66.70-67.60 in the short term.
Standard Chartered Bank, in a post-budget research note, also said the budget is unlikely to have a sustained positive impact on the rupee.
"The Indian rupee (INR) has reacted positively to the budget announcement. However, we do not expect this to be sustained, as the quality of fiscal consolidation is likely to suffer. Also, global rather than domestic factors are likely to dominate the currency in the near term," said StanC.
It sees 68.25 and 68.00 as support levels for USD-INR spot in the very near term.
However, Jimeet Modi, CEO, SAMCO Securities feels the rupee has hit a major bottom and the rally has just started.
"The Rupee has a made a long-term double bottom at 69.20 in middle of consensus of Rupee touching 72, which makes all the more convincing case that the rupee has made a major bottom and the rally has just started," told Modi to Business Today online.
The expert added the ongoing rally will sustain at least for short to medium term and the currency is likely to hover around 67 with oscillation of 2 per cent either way in the short term.
Vikas Gupta, Executive Vice President and Chief Investment Officer at ArthVeda Capital hopes rupee does not rally too much since that is not good for the country when all the other emerging market countries are devaluing theirs.
"A lower rupee will be better for exporters. Since oil prices will remain relatively low, the import bill will not escalate due to rupee being low," told Gupta to Business Today online.
What explains rupee's recent strength
A fresh buying in equities post Budget 2016 has spurred the gains in the domestic currency with foreign investors pouring in over Rs 5,000 crore on Dalal Street in just three sessions after Finance Minister Arun Jaitley maintained the fiscal deficit target for fiscal year 2016-17 at 3.5 per cent of GDP.
Gupta said FM Jaitley's commitment to maintain the fiscal deficit and not let it spiral has definitely been a huge reason for the rupee to stabilize.
Jaitley's fiscal prudence has also ignited hopes of an interest rate cut by Reserve Bank of India (RBI), which if happens, will boost rupee's demand. However, Gupta believes post any rate cut, the domestic currency may stabilise and the ongoing appreciation may get halted, or slow down a bit.
How would you like if rupee turns 70 against dollar? Seems unlikely given the recent rally?
Well, think twice!
Rupee may have gained 138 paise, or 2.01 per cent in last five consecutive days, it is still second worst performing Asian currencies year-to-date after Korean won.
If experts are to be believed, the domestic currency may hit 70 against US dollar by the end of December as Budget euphoria will not stay longer and the currency will get back at the mercy of global headwinds along with US Federal Reserve's action on interest rates. Not to forget China's possible yuan devaluation that may engineer a currency war.
"The recent rally in rupee has caught many traders on the wrong foot. In the immediate short term, the overall favorable sentiment that has developed after the budget is likely to continue, but going forward the global headwinds and the Fed rate trajectory will guide the movement of rupee," told Gaurav Kumar Sharma, Currency Analyst, Religare Securities to Business Today online.
The expert expects the rupee to depreciate and test 69.50-70 levels by the end of December. However, he added it will trade in the range of 66.70-67.60 in the short term.
Standard Chartered Bank, in a post-budget research note, also said the budget is unlikely to have a sustained positive impact on the rupee.
"The Indian rupee (INR) has reacted positively to the budget announcement. However, we do not expect this to be sustained, as the quality of fiscal consolidation is likely to suffer. Also, global rather than domestic factors are likely to dominate the currency in the near term," said StanC.
It sees 68.25 and 68.00 as support levels for USD-INR spot in the very near term.
However, Jimeet Modi, CEO, SAMCO Securities feels the rupee has hit a major bottom and the rally has just started.
"The Rupee has a made a long-term double bottom at 69.20 in middle of consensus of Rupee touching 72, which makes all the more convincing case that the rupee has made a major bottom and the rally has just started," told Modi to Business Today online.
The expert added the ongoing rally will sustain at least for short to medium term and the currency is likely to hover around 67 with oscillation of 2 per cent either way in the short term.
Vikas Gupta, Executive Vice President and Chief Investment Officer at ArthVeda Capital hopes rupee does not rally too much since that is not good for the country when all the other emerging market countries are devaluing theirs.
"A lower rupee will be better for exporters. Since oil prices will remain relatively low, the import bill will not escalate due to rupee being low," told Gupta to Business Today online.
What explains rupee's recent strength
A fresh buying in equities post Budget 2016 has spurred the gains in the domestic currency with foreign investors pouring in over Rs 5,000 crore on Dalal Street in just three sessions after Finance Minister Arun Jaitley maintained the fiscal deficit target for fiscal year 2016-17 at 3.5 per cent of GDP.
Gupta said FM Jaitley's commitment to maintain the fiscal deficit and not let it spiral has definitely been a huge reason for the rupee to stabilize.
Jaitley's fiscal prudence has also ignited hopes of an interest rate cut by Reserve Bank of India (RBI), which if happens, will boost rupee's demand. However, Gupta believes post any rate cut, the domestic currency may stabilise and the ongoing appreciation may get halted, or slow down a bit.
Jaitley's fiscal prudence has also ignited hopes of an interest rate cut by Reserve Bank of India (RBI), which if happens, will boost rupee's demand. However, Gupta believes post any rate cut, the domestic currency may stabilise and the ongoing appreciation may get halted, or slow down a bit.
India poised for a quantum leap in infrastructure, says PM Narendra Modi
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Prime Minister Narendra Modi said on Friday India is set to take a quantum leap in infrastructure and the government is committed to strengthening it.
The Prime Minister unveiled an ambitious Rs 50,800-crore Setu Bharatam project, under which a total of 208 railway crossings will be replaced by rail over bridges (ROBs).
As part of the project, 1,500 bridges of the British era will be overhauled at an estimated expenditure of Rs 30,000 crore.
Altogether, these ROBs and bridges are planned to be completed by 2019 at an estimated cost of Rs 50,800 crore, Road Transport and Highways Minister Nitin Gadkari said on the occasion.
The ministry has already launched an Indian Bridge Management System to map 1,50,000 bridges across the country. Till now, an inventory of 50,000 bridges has been prepared while the first cycle of condition survey will be completed by June this year.
Prime Minister Narendra Modi said on Friday India is set to take a quantum leap in infrastructure and the government is committed to strengthening it.
The Prime Minister unveiled an ambitious Rs 50,800-crore Setu Bharatam project, under which a total of 208 railway crossings will be replaced by rail over bridges (ROBs).
As part of the project, 1,500 bridges of the British era will be overhauled at an estimated expenditure of Rs 30,000 crore.
Altogether, these ROBs and bridges are planned to be completed by 2019 at an estimated cost of Rs 50,800 crore, Road Transport and Highways Minister Nitin Gadkari said on the occasion.
The ministry has already launched an Indian Bridge Management System to map 1,50,000 bridges across the country. Till now, an inventory of 50,000 bridges has been prepared while the first cycle of condition survey will be completed by June this year.
Portal for start-ups, registration by next week: Official
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In order to encourage entrepreneurs and further ease doing of business in India, the government said on Friday that a web portal for start-ups will launched by next week, which would also begin their registration process.
"In another week's time, we are going to start the start-up portal and the process of registration of start-ups also," Ramesh Abhishek, secretary of the Department of Industrial Policy and Promotion (DIPP), said at a post-budget interaction here organised by the Federation of Indian Chambers of Commerce and Industry (FICCI).
"We are also working with state governments to ensure that self-certification work in case of labour and skill development laws are put in place for start-ups," he said.
Besides the Start-up India initiative launched last year, the DIPP has issued the definition of start-ups and is making it easier for them to file patent applications, Abhishek added.
The Union Budget for 2016-17, presented on Monday, proposed full tax exemption for start-ups for three years.
Besides, a special patent regime has been proposed with a 10 per cent rate of tax on income from worldwide exploitation of patents developed and registered in India in order to promote innovations
The Start-Up India action plan has proposed a "Fund of Funds" to raise Rs.2,500 crore annually for four years for financing start-ups.
In order to encourage entrepreneurs and further ease doing of business in India, the government said on Friday that a web portal for start-ups will launched by next week, which would also begin their registration process.
"In another week's time, we are going to start the start-up portal and the process of registration of start-ups also," Ramesh Abhishek, secretary of the Department of Industrial Policy and Promotion (DIPP), said at a post-budget interaction here organised by the Federation of Indian Chambers of Commerce and Industry (FICCI).
"We are also working with state governments to ensure that self-certification work in case of labour and skill development laws are put in place for start-ups," he said.
Besides the Start-up India initiative launched last year, the DIPP has issued the definition of start-ups and is making it easier for them to file patent applications, Abhishek added.
The Union Budget for 2016-17, presented on Monday, proposed full tax exemption for start-ups for three years.
Besides, a special patent regime has been proposed with a 10 per cent rate of tax on income from worldwide exploitation of patents developed and registered in India in order to promote innovations
The Start-Up India action plan has proposed a "Fund of Funds" to raise Rs.2,500 crore annually for four years for financing start-ups.
General Awareness
CCEA Approved Winding Up Of National Manufacturing Competitiveness Council (NMCC)
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The National Manufacturing Competitiveness Council (NMCC) will be wound up with immediate effect as it has fulfilled the mandate for which it was constituted. The Cabinet Committee on Economic Affairs (CCEA) gave it its approval on March 2, 2016.
CCEA – One of the standing committees of the cabinet constituted by GOI
Some of the main functions are
- To review economic trends, problems and prospects to evolve an efficient and consistent economic policy framework for India
- To direct and coordinate all economic policies and activities, including foreign investments that need economic decisions of the highest order.
- To make decisions of in matters of fixing prices of Agricultural products and reviewing progress in rural development, including matters related to small and marginal farmers
- To facilitate the finalization of factual reports of Ministries, Agencies and PSUs involved in the implementation of various schemes to be evaluated by the PM.
- To review matters related to shares of GOI in PSUs, disinvestments, industrial licensing policies, performance of PSUs including their structural and financial restructuring
Composition of the Committee: Prime Minister, Minister of Home Affairs, Finance, Urban Development, Railways, Law and Justice, Agriculture & Farmers Welfare, IT and Food Processing Industries and Special Invitees.
- Chairman : Prime Minister
NMCC
- Established in 2004 as an autonomous body
- Mandate: Began as a part of Common Minimum Programme (CMP) to boost and sustain the growth of manufacturing in India.
- Last Chairman: Shri Ajay Shankar, demitted office on 22nd November 2014.
- The council had become non-functional in the absence of a new Chairman and no fresh constitution was done.The National Manufacturing Competitiveness Council (NMCC) will be wound up with immediate effect as it has fulfilled the mandate for which it was constituted. The Cabinet Committee on Economic Affairs (CCEA) gave it its approval on March 2, 2016.
CCEA – One of the standing committees of the cabinet constituted by GOI
Some of the main functions are
- To review economic trends, problems and prospects to evolve an efficient and consistent economic policy framework for India
- To direct and coordinate all economic policies and activities, including foreign investments that need economic decisions of the highest order.
- To make decisions of in matters of fixing prices of Agricultural products and reviewing progress in rural development, including matters related to small and marginal farmers
- To facilitate the finalization of factual reports of Ministries, Agencies and PSUs involved in the implementation of various schemes to be evaluated by the PM.
- To review matters related to shares of GOI in PSUs, disinvestments, industrial licensing policies, performance of PSUs including their structural and financial restructuring
Composition of the Committee: Prime Minister, Minister of Home Affairs, Finance, Urban Development, Railways, Law and Justice, Agriculture & Farmers Welfare, IT and Food Processing Industries and Special Invitees.
- Chairman : Prime Minister
NMCC
- Established in 2004 as an autonomous body
- Mandate: Began as a part of Common Minimum Programme (CMP) to boost and sustain the growth of manufacturing in India.
- Last Chairman: Shri Ajay Shankar, demitted office on 22nd November 2014.
- The council had become non-functional in the absence of a new Chairman and no fresh constitution was done.The National Manufacturing Competitiveness Council (NMCC) will be wound up with immediate effect as it has fulfilled the mandate for which it was constituted. The Cabinet Committee on Economic Affairs (CCEA) gave it its approval on March 2, 2016.
CCEA – One of the standing committees of the cabinet constituted by GOI
Some of the main functions are
- To review economic trends, problems and prospects to evolve an efficient and consistent economic policy framework for India
- To direct and coordinate all economic policies and activities, including foreign investments that need economic decisions of the highest order.
- To make decisions of in matters of fixing prices of Agricultural products and reviewing progress in rural development, including matters related to small and marginal farmers
- To facilitate the finalization of factual reports of Ministries, Agencies and PSUs involved in the implementation of various schemes to be evaluated by the PM.
- To review matters related to shares of GOI in PSUs, disinvestments, industrial licensing policies, performance of PSUs including their structural and financial restructuring
Composition of the Committee: Prime Minister, Minister of Home Affairs, Finance, Urban Development, Railways, Law and Justice, Agriculture & Farmers Welfare, IT and Food Processing Industries and Special Invitees.
- Chairman : Prime Minister
NMCC
- Established in 2004 as an autonomous body
- Mandate: Began as a part of Common Minimum Programme (CMP) to boost and sustain the growth of manufacturing in India.
- Last Chairman: Shri Ajay Shankar, demitted office on 22nd November 2014.
- The council had become non-functional in the absence of a new Chairman and no fresh constitution was done.
- The National Manufacturing Competitiveness Council (NMCC) will be wound up with immediate effect as it has fulfilled the mandate for which it was constituted. The Cabinet Committee on Economic Affairs (CCEA) gave it its approval on March 2, 2016.CCEA – One of the standing committees of the cabinet constituted by GOISome of the main functions are
- To review economic trends, problems and prospects to evolve an efficient and consistent economic policy framework for India
- To direct and coordinate all economic policies and activities, including foreign investments that need economic decisions of the highest order.
- To make decisions of in matters of fixing prices of Agricultural products and reviewing progress in rural development, including matters related to small and marginal farmers
- To facilitate the finalization of factual reports of Ministries, Agencies and PSUs involved in the implementation of various schemes to be evaluated by the PM.
- To review matters related to shares of GOI in PSUs, disinvestments, industrial licensing policies, performance of PSUs including their structural and financial restructuring
Composition of the Committee: Prime Minister, Minister of Home Affairs, Finance, Urban Development, Railways, Law and Justice, Agriculture & Farmers Welfare, IT and Food Processing Industries and Special Invitees.- Chairman : Prime Minister
NMCC- Established in 2004 as an autonomous body
- Mandate: Began as a part of Common Minimum Programme (CMP) to boost and sustain the growth of manufacturing in India.
- Last Chairman: Shri Ajay Shankar, demitted office on 22nd November 2014.
- The council had become non-functional in the absence of a new Chairman and no fresh constitution was done.The National Manufacturing Competitiveness Council (NMCC) will be wound up with immediate effect as it has fulfilled the mandate for which it was constituted. The Cabinet Committee on Economic Affairs (CCEA) gave it its approval on March 2, 2016.CCEA – One of the standing committees of the cabinet constituted by GOISome of the main functions are
- To review economic trends, problems and prospects to evolve an efficient and consistent economic policy framework for India
- To direct and coordinate all economic policies and activities, including foreign investments that need economic decisions of the highest order.
- To make decisions of in matters of fixing prices of Agricultural products and reviewing progress in rural development, including matters related to small and marginal farmers
- To facilitate the finalization of factual reports of Ministries, Agencies and PSUs involved in the implementation of various schemes to be evaluated by the PM.
- To review matters related to shares of GOI in PSUs, disinvestments, industrial licensing policies, performance of PSUs including their structural and financial restructuring
Composition of the Committee: Prime Minister, Minister of Home Affairs, Finance, Urban Development, Railways, Law and Justice, Agriculture & Farmers Welfare, IT and Food Processing Industries and Special Invitees.- Chairman : Prime Minister
NMCC- Established in 2004 as an autonomous body
- Mandate: Began as a part of Common Minimum Programme (CMP) to boost and sustain the growth of manufacturing in India.
- Last Chairman: Shri Ajay Shankar, demitted office on 22nd November 2014.
- The council had become non-functional in the absence of a new Chairman and no fresh constitution was done.The National Manufacturing Competitiveness Council (NMCC) will be wound up with immediate effect as it has fulfilled the mandate for which it was constituted. The Cabinet Committee on Economic Affairs (CCEA) gave it its approval on March 2, 2016.CCEA – One of the standing committees of the cabinet constituted by GOISome of the main functions are
- To review economic trends, problems and prospects to evolve an efficient and consistent economic policy framework for India
- To direct and coordinate all economic policies and activities, including foreign investments that need economic decisions of the highest order.
- To make decisions of in matters of fixing prices of Agricultural products and reviewing progress in rural development, including matters related to small and marginal farmers
- To facilitate the finalization of factual reports of Ministries, Agencies and PSUs involved in the implementation of various schemes to be evaluated by the PM.
- To review matters related to shares of GOI in PSUs, disinvestments, industrial licensing policies, performance of PSUs including their structural and financial restructuring
Composition of the Committee: Prime Minister, Minister of Home Affairs, Finance, Urban Development, Railways, Law and Justice, Agriculture & Farmers Welfare, IT and Food Processing Industries and Special Invitees.- Chairman : Prime Minister
NMCC- Established in 2004 as an autonomous body
- Mandate: Began as a part of Common Minimum Programme (CMP) to boost and sustain the growth of manufacturing in India.
- Last Chairman: Shri Ajay Shankar, demitted office on 22nd November 2014.
- The council had become non-functional in the absence of a new Chairman and no fresh constitution was done.
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