General Affairs
PM Narendra Modi To Launch Stand Up India Initiative On Tuesday
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NEW DELHI: Prime Minister Narendra Modi will on Tuesday launch the Stand Up India initiative at Noida.
The initiative will promote entrepreneurship among the Scheduled Castes, Scheduled Tribes, and women, by facilitating loans in the range of Rs 10 lakh to Rs 100 lakh, an official statement said.
As per the scheme, each branch of a scheduled commercial bank shall facilitate at least two such loans. A web portal will also be launched for the initiative, to enable online registration and support services.
PM Modi will also flag-off 5,100 e-rickshaws and also interact with the beneficiaries, besides inaugurating a Kaushal Vikas Kendra (skilling centre).
NEW DELHI: Prime Minister Narendra Modi will on Tuesday launch the Stand Up India initiative at Noida.The initiative will promote entrepreneurship among the Scheduled Castes, Scheduled Tribes, and women, by facilitating loans in the range of Rs 10 lakh to Rs 100 lakh, an official statement said.
As per the scheme, each branch of a scheduled commercial bank shall facilitate at least two such loans. A web portal will also be launched for the initiative, to enable online registration and support services.
PM Modi will also flag-off 5,100 e-rickshaws and also interact with the beneficiaries, besides inaugurating a Kaushal Vikas Kendra (skilling centre).
Record Turnout Proves 'Silent Revolution' Ushered In By Mamata: Trinamool
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KOLKATA: The ruling Trinamool Congress today expressed satisfaction over the huge turnout in the first phase of Assembly polls and said the record turnout proves the 'silent revolution' that Chief Minister Mamata Banerjee had ushered in through development.
"The huge turnout in the first part of the first phase proves the silent revolution that Mamata Banerjee had brought in through massive developmental work in the junglemahal in last five years," state Panchayat Minister Subrata Mukherjee said.
Registering a heavy turnout, an estimated 79 per cent voters today cast their votes in 18 constituencies in the first part of the first phase in West Bengal till 5 pm, many of which are located in areas which had earlier witnessed Maoist violence.
Eighteen constituencies went to the polls in the first part of the first phase election, while elections will be held in another 31 seats in second part of the first phase on April 11.
"The huge turnout proves the confidence that the people have in Mamata Banerjee and TMC. The opposition will have to hide their faces after the results are announced on May 19," Trinamool lawmaker and leader of the party in Lok Sabha Sudip Bandopadhaya said.
On the allegations by opposition parties over Trinamool trying to create hurdles in the way of free and fair polls, Mr Bandopadhaya said, "Those who don't have any connect with the masses for five years, only make such baseless allegations during polls. These allegations are a desperate attempt to stay relevant."
"The huge turnout in the first part of the first phase proves the silent revolution that Mamata Banerjee had brought in through massive developmental work in the junglemahal in last five years," state Panchayat Minister Subrata Mukherjee said.
Registering a heavy turnout, an estimated 79 per cent voters today cast their votes in 18 constituencies in the first part of the first phase in West Bengal till 5 pm, many of which are located in areas which had earlier witnessed Maoist violence.
Eighteen constituencies went to the polls in the first part of the first phase election, while elections will be held in another 31 seats in second part of the first phase on April 11.
"The huge turnout proves the confidence that the people have in Mamata Banerjee and TMC. The opposition will have to hide their faces after the results are announced on May 19," Trinamool lawmaker and leader of the party in Lok Sabha Sudip Bandopadhaya said.
On the allegations by opposition parties over Trinamool trying to create hurdles in the way of free and fair polls, Mr Bandopadhaya said, "Those who don't have any connect with the masses for five years, only make such baseless allegations during polls. These allegations are a desperate attempt to stay relevant."
Indian Army Chief General Dalbir Singh To Visit US On April 5
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NEW DELHI: Indian Army Chief General Dalbir Singh will be visiting the US on a "goodwill visit" from April 5 to 8 when he will also meet UN Secretary General Ban Ki-moon.
The visit is part of the ongoing high level exchanges between India and the US.
General Dalbir Singh will meet Ban at the UN headquarters to "strengthen the Indian Army's commitment towards UN Missions", an official statement in Delhi said.
He will also visit the US Central Command (CENTCOM) that includes countries in the Middle East, North Africa, and Central Asia including Afghanistan and Iraq in its Area of Responsibility.
He will also visit the United States Special Operations Command (SOCOM), the Unified Combatant Command charged with overseeing the various Special Operations Component Commands of the United States Armed Forces, headquarter 1 Corps and US Army's Manoeuvre Centre of Excellence (MCoE) where he will hold discussions with commanders of the US Army.
In Washington, General Dalbir Singh will meet US Secretary of Army, Chairman Jt. Chiefs of Staff, Chief of Staff of the US Army and Commander US Marine Corps, along with other officials.
The India-US ties have been transformed in recent years with a renewed Defence Framework Agreement, supply of defence equipment, sharing of technology and military-to-military exchanges.
NEW DELHI: Indian Army Chief General Dalbir Singh will be visiting the US on a "goodwill visit" from April 5 to 8 when he will also meet UN Secretary General Ban Ki-moon.The visit is part of the ongoing high level exchanges between India and the US.
General Dalbir Singh will meet Ban at the UN headquarters to "strengthen the Indian Army's commitment towards UN Missions", an official statement in Delhi said.
He will also visit the United States Special Operations Command (SOCOM), the Unified Combatant Command charged with overseeing the various Special Operations Component Commands of the United States Armed Forces, headquarter 1 Corps and US Army's Manoeuvre Centre of Excellence (MCoE) where he will hold discussions with commanders of the US Army.
In Washington, General Dalbir Singh will meet US Secretary of Army, Chairman Jt. Chiefs of Staff, Chief of Staff of the US Army and Commander US Marine Corps, along with other officials.
The India-US ties have been transformed in recent years with a renewed Defence Framework Agreement, supply of defence equipment, sharing of technology and military-to-military exchanges.
Railways To Operate Gatimaan Express, India's Fastest Train, From Tuesday
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NEW DELHI: The Indian Railways on Monday announced that the country's first semi-high speed train -- Gatimaan Express -- will be run from Tuesday.
The new express train will operate between the national capital's Hazrat Nizamuddin station and Agra Cantonment station. It will operate six days a week, except on Friday.
The new express train can attain a maximum speed of 160 km per hour, according to the Ministry of Railways.
It will be flagged off by Railway Minister Suresh Prabhu on Tuesday.
"The launch of this train heralds a new era of high-speed rail travel in India. Railway Minister has been emphasising about increasing the speed of both passenger and goods trains in his budget speeches," the ministry said in a statement.
The Gatiman Express train comprises of two executive AC chair cars and eight AC chair car coaches. The fare for a single AC chair car seat will be Rs.750, and that for the executive AC chair car seat Rs.1,500.
The ministry elaborated that the on-board catering on the new train will be carried out by the Indian Railways Catering and Tourism Corporation (IRCTC), a railway undertaking.
"IRCTC has made arrangement for deploying train hostesses on-board the train. This train will see improved catering and will have options of different kinds of cuisines," the statement added.
The new train also provides on-board entertainment facility free of cost by a private agency -- MyFreeTv.in.
"Under this facility, passengers can view various entertaining videos during the travel on their smartphone, tablets or laptops even without internet connection through Wi-Fi," the statement said.
In addition, the ministry pointed out that the express train features new LHB (Linke-Hofmann-Busch) coaches fabricated by Rail Coach Factory (RCF), Kapurthala.
"These coaches have been fitted with bio-toilets and are fit to run at 160 km per hour. These coaches have also been fitted with balanced draft gear couplers for a smooth ride," the statement added.
The new express train will be hauled by an electrical engine, "WAP 5", which has a power output of 5,500 HP.
The new express train will operate between the national capital's Hazrat Nizamuddin station and Agra Cantonment station. It will operate six days a week, except on Friday.
The new express train can attain a maximum speed of 160 km per hour, according to the Ministry of Railways.
"The launch of this train heralds a new era of high-speed rail travel in India. Railway Minister has been emphasising about increasing the speed of both passenger and goods trains in his budget speeches," the ministry said in a statement.
The Gatiman Express train comprises of two executive AC chair cars and eight AC chair car coaches. The fare for a single AC chair car seat will be Rs.750, and that for the executive AC chair car seat Rs.1,500.
The ministry elaborated that the on-board catering on the new train will be carried out by the Indian Railways Catering and Tourism Corporation (IRCTC), a railway undertaking.
"IRCTC has made arrangement for deploying train hostesses on-board the train. This train will see improved catering and will have options of different kinds of cuisines," the statement added.
The new train also provides on-board entertainment facility free of cost by a private agency -- MyFreeTv.in.
"Under this facility, passengers can view various entertaining videos during the travel on their smartphone, tablets or laptops even without internet connection through Wi-Fi," the statement said.
In addition, the ministry pointed out that the express train features new LHB (Linke-Hofmann-Busch) coaches fabricated by Rail Coach Factory (RCF), Kapurthala.
"These coaches have been fitted with bio-toilets and are fit to run at 160 km per hour. These coaches have also been fitted with balanced draft gear couplers for a smooth ride," the statement added.
The new express train will be hauled by an electrical engine, "WAP 5", which has a power output of 5,500 HP.
After A Hundred Questions And Concerns, Aadhaar Crosses Billion Mark
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NEW DELHI: Six years after the first Aadhaar card was issued a billion people in India have a unique number allotted to them. Over 93% adults have a smart card, which not only provides them with an identity, but is also used to ensure that government subsidies go directly to the correct beneficiary.
Currently the Aadhaar number is not only used for Public Distribution System, the distribution of cooking gas and kerosene, it is also used to distribute payments for the Mahatma Gandhi National Rural Employment Guarantee Scheme, the Pradhan Mantri Jan Dhan Yojana, government pensions and the Employees' Provident Fund Scheme.
So far, 25.48 crore bank accounts, over 71% cooking gas connections and over 45% ration cards have been linked with the identification programme. The UIDAI authenticates over 40 lakh transactions per day.
But now, backed by the new Aadhaar act -- which gives legal sanction to the unique identification number programme -- the government plans to broaden its ambit to include more services and social security programmes. "We will try to persuade the Supreme Court to release more schemes," said Ravi Shankar Prasad, Union Minister for Information Technology.
It was former Prime Minister Manmohan Singh, who had asked Nandan Nilekani, then Infosys chief, to bring to life the government's ambitious plan.
Today, Mr Nilekani tweeted:
Truly a historic moment for the nation, @rssharma3. Still remember our first meeting in 2009 when it all began! https://t.co/u7KwOHtYop
- Nandan Nilekani (@NandanNilekani) April 4, 2016
On the way, there were objections and concerns. Questions were raised - not only over privacy but even national security. In 2014, Mr Nilekani met Prime Minister Narendr Modi and was able to convince him that the Aadhaar number was a game changer. But Mr Nilekani and his team, which included the current head of the Telecom regulatory authority RS Sharma, continued their work.
Even today, while applauding the Aadhaar card, Congress spokesperson Randeep Singh Surjewala said, "We however have issues on privacy and the manner of approach to undermine the Rajya Sabha."
The Supreme Court's constitution bench has to decide a number of cases around Aadhaar and violation of privacy. But Mr Prasad stressed that all data will be kept absolutely confidential.
The highest number of Aadhaar numbers have been issued in Uttar Pradesh, followed by Maharashtra, West Bengal and Bihar.
NEW DELHI: Six years after the first Aadhaar card was issued a billion people in India have a unique number allotted to them. Over 93% adults have a smart card, which not only provides them with an identity, but is also used to ensure that government subsidies go directly to the correct beneficiary.Currently the Aadhaar number is not only used for Public Distribution System, the distribution of cooking gas and kerosene, it is also used to distribute payments for the Mahatma Gandhi National Rural Employment Guarantee Scheme, the Pradhan Mantri Jan Dhan Yojana, government pensions and the Employees' Provident Fund Scheme.
But now, backed by the new Aadhaar act -- which gives legal sanction to the unique identification number programme -- the government plans to broaden its ambit to include more services and social security programmes. "We will try to persuade the Supreme Court to release more schemes," said Ravi Shankar Prasad, Union Minister for Information Technology.
It was former Prime Minister Manmohan Singh, who had asked Nandan Nilekani, then Infosys chief, to bring to life the government's ambitious plan.
Today, Mr Nilekani tweeted:
Truly a historic moment for the nation, @rssharma3. Still remember our first meeting in 2009 when it all began! https://t.co/u7KwOHtYop- Nandan Nilekani (@NandanNilekani) April 4, 2016
On the way, there were objections and concerns. Questions were raised - not only over privacy but even national security. In 2014, Mr Nilekani met Prime Minister Narendr Modi and was able to convince him that the Aadhaar number was a game changer. But Mr Nilekani and his team, which included the current head of the Telecom regulatory authority RS Sharma, continued their work.
Even today, while applauding the Aadhaar card, Congress spokesperson Randeep Singh Surjewala said, "We however have issues on privacy and the manner of approach to undermine the Rajya Sabha."
The Supreme Court's constitution bench has to decide a number of cases around Aadhaar and violation of privacy. But Mr Prasad stressed that all data will be kept absolutely confidential.
The highest number of Aadhaar numbers have been issued in Uttar Pradesh, followed by Maharashtra, West Bengal and Bihar.
Business Affairs
Sensex jumps 130 points, Nifty above 7,750 ahead of RBI policy; Adani Group stocks hog limelight
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The S&P BSE Sensex gained 130 points in trade on Monday, while broader CNX Nifty jumped above its key 7,750-mark ahead of RBI monetary policy to be announced on Tuesaday at which it is expected to cut interest rates by at least 25 basis points.
The headline indices rallied tracking mixed trend seen in Asian markets after solid US payroll data underpinned investor risk sentiment while dovish comments from Federal Reserve Chair Janet Yellen limited expectations of a near-term interest rate hike.
The 30-share index ended the day at 25,399, up 130.01 points, while broad-based 50-share index quoted 7,758, up 45.75 points at close.
Market breadth turned positive with 18 of the 30 Sensex components ending the day in green.
Sentiment back home also got a lift after a business survey showed India's manufacturing activity expanding for the third straight month in March, driven by stronger demand.
However, the focus remained on the outcome of the RBI's policy review on Tuesday. Most analysts expect the repo rate to be cut by 25 bps although five out of 50 analysts polled by Thomson Reuters predicted a 50 bps cut.
Traders are also expecting measures to increase liquidity in the country's banking system as periodic cash crunches are seen impacting the effectiveness of the monetary policy.
"There could be a tinge of disappointment for the market if RBI cuts rates just by 25 bps and does not do much to boost liquidity," said Deepak Jasani, head of retail research at HDFC Securities.
"If the statement accompanying the credit policy is not dovish despite a 25 bps rate cut, it could disappoint markets".
The S&P BSE Bankex index was little changed on Monday after gaining 16 per cent last month amid rate-cut hopes. State Bank of India and ICICI Bank were down 0.7 per cent and 0.4 per cent, respectively.
Shares of Adani Enterprises surged 5.86 per cent after the company's $21.7 billion coal mine project in Australia won three mining leases.
Cigarette makers ITC and Godfrey Phillips India fell 1.50 per cent and 4.09 per cent, respectively, after they suspended production over health warning rules.
Cox & Kings rose 4.50 per cent after the travel company divested majority stakes in UK online leisure providers LateRooms and Superbreak for 20 million pounds.
IT services provider MphasiS lost 2.77 per cent after Hewlett Packard Enterprise said it would sell most of its stake in the company to Blackstone.
Geometric jumped 19.39 per cent after the company said it would sell its IT services business to HCL Technologies in an all-stock deal valued at Rs 12.37 billion.
The S&P BSE Sensex gained 130 points in trade on Monday, while broader CNX Nifty jumped above its key 7,750-mark ahead of RBI monetary policy to be announced on Tuesaday at which it is expected to cut interest rates by at least 25 basis points.
The headline indices rallied tracking mixed trend seen in Asian markets after solid US payroll data underpinned investor risk sentiment while dovish comments from Federal Reserve Chair Janet Yellen limited expectations of a near-term interest rate hike.
The 30-share index ended the day at 25,399, up 130.01 points, while broad-based 50-share index quoted 7,758, up 45.75 points at close.
Market breadth turned positive with 18 of the 30 Sensex components ending the day in green.
Sentiment back home also got a lift after a business survey showed India's manufacturing activity expanding for the third straight month in March, driven by stronger demand.
However, the focus remained on the outcome of the RBI's policy review on Tuesday. Most analysts expect the repo rate to be cut by 25 bps although five out of 50 analysts polled by Thomson Reuters predicted a 50 bps cut.
Traders are also expecting measures to increase liquidity in the country's banking system as periodic cash crunches are seen impacting the effectiveness of the monetary policy.
"There could be a tinge of disappointment for the market if RBI cuts rates just by 25 bps and does not do much to boost liquidity," said Deepak Jasani, head of retail research at HDFC Securities.
"If the statement accompanying the credit policy is not dovish despite a 25 bps rate cut, it could disappoint markets".
The S&P BSE Bankex index was little changed on Monday after gaining 16 per cent last month amid rate-cut hopes. State Bank of India and ICICI Bank were down 0.7 per cent and 0.4 per cent, respectively.
Shares of Adani Enterprises surged 5.86 per cent after the company's $21.7 billion coal mine project in Australia won three mining leases.
Cigarette makers ITC and Godfrey Phillips India fell 1.50 per cent and 4.09 per cent, respectively, after they suspended production over health warning rules.
Cox & Kings rose 4.50 per cent after the travel company divested majority stakes in UK online leisure providers LateRooms and Superbreak for 20 million pounds.
IT services provider MphasiS lost 2.77 per cent after Hewlett Packard Enterprise said it would sell most of its stake in the company to Blackstone.
Geometric jumped 19.39 per cent after the company said it would sell its IT services business to HCL Technologies in an all-stock deal valued at Rs 12.37 billion.
RBI seeks to achieve larger rate cut transmission
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The Reserve Bank of India (RBI) is embarking on an experiment to remove much of the discretion the country's commercial banks have to set lending rates and force them to base borrowing costs on prevailing market rates.
The experiment carries risks, as the country periodically suffers severe cash crunches. But the rewards should be lower costs for borrowers.
The RBI adopted the rules, effective from the April 1 start of a new fiscal year, after deep frustration that it cut its key repo rate by 125 basis points last year, but banks lowered lending rates by only about 60 bps.
The RBI, keen to see monetary policy be effective, on Tuesday is expected to cut the repo rate another 25 bps as the government bids to revive investment and spur economic growth.
Under the new rules, banks will need to adjust their lending rates every month based on what they offer for new fixed-rate deposits, which track short-term market rates such as for treasury bills and certificates of deposit.
Periodic Crunches
A hurdle for the rules will be the country's periodic cash crunches. They usually come in March, when banks and the government tend to hoard cash at the end of the fiscal year, or October when a string of festivals see large cash withdrawals.
That means the RBI will also need to stay nimble in injecting funds, or suffer an ironic outcome: spikes in short-term market rates that force banks to raise their lending rates, regardless of how many rate cuts the central bank has delivered.
"This is a now-or-never time for monetary policy to address growth as well as liquidity concerns as we start the fiscal year," said Soumya Kanti Ghosh, chief economic adviser with the country's largest lender State Bank of India.
Already, State Bank of India, country's biggest lender, and other lenders have announced new rates under the "marginal cost based lending rate" (MCLR) rules unveiled by the RBI that are slightly lower than existing loans.
The rules are not popular with lenders, who fear they will see their margins hit and left at the mercy of volatile market rates.
"On one hand, they expect the banks to reduce rates. On the other hand there is so much tight liquidity. RBI needs to do something to address the liquidity," said a treasurer with a state-owned bank.
Reversing Course
After months of denying there was a liquidity problem, Governor Raghuram Rajan has reversed course.
Since December, the central bank has injected Rs 720 billion ($10.85 billion) in funds via open market bond purchases, more than the Rs 600 billion total put in during the previous two years.
The RBI is also expected to announce on Tuesday more technical measures, including making it easier for banks to pledge illiquid bonds with it in exchange for cash.
Economists say the RBI will need as well to provide more details about its planned injections, rather than its current ad hoc strategy of announcing bond purchases when liquidity has excessively tightened.
Bankers, including SBI, are also calling for the RBI to allow lenders to manage the estimated Rs 1.5 trillion in government cash balance currently held by the central bank.
"Having this clarity and flexibility will help in transmission far better than any forced approach to bring down banking lending rates by fiat," said Ananth Narayan, the regional head of financial markets for ASEAN and South Asia at Standard Chartered Bank.
The Reserve Bank of India (RBI) is embarking on an experiment to remove much of the discretion the country's commercial banks have to set lending rates and force them to base borrowing costs on prevailing market rates.
The experiment carries risks, as the country periodically suffers severe cash crunches. But the rewards should be lower costs for borrowers.
The RBI adopted the rules, effective from the April 1 start of a new fiscal year, after deep frustration that it cut its key repo rate by 125 basis points last year, but banks lowered lending rates by only about 60 bps.
The RBI, keen to see monetary policy be effective, on Tuesday is expected to cut the repo rate another 25 bps as the government bids to revive investment and spur economic growth.
Under the new rules, banks will need to adjust their lending rates every month based on what they offer for new fixed-rate deposits, which track short-term market rates such as for treasury bills and certificates of deposit.
Periodic Crunches
Periodic Crunches
A hurdle for the rules will be the country's periodic cash crunches. They usually come in March, when banks and the government tend to hoard cash at the end of the fiscal year, or October when a string of festivals see large cash withdrawals.
That means the RBI will also need to stay nimble in injecting funds, or suffer an ironic outcome: spikes in short-term market rates that force banks to raise their lending rates, regardless of how many rate cuts the central bank has delivered.
"This is a now-or-never time for monetary policy to address growth as well as liquidity concerns as we start the fiscal year," said Soumya Kanti Ghosh, chief economic adviser with the country's largest lender State Bank of India.
Already, State Bank of India, country's biggest lender, and other lenders have announced new rates under the "marginal cost based lending rate" (MCLR) rules unveiled by the RBI that are slightly lower than existing loans.
The rules are not popular with lenders, who fear they will see their margins hit and left at the mercy of volatile market rates.
"On one hand, they expect the banks to reduce rates. On the other hand there is so much tight liquidity. RBI needs to do something to address the liquidity," said a treasurer with a state-owned bank.
Reversing Course
After months of denying there was a liquidity problem, Governor Raghuram Rajan has reversed course.
Since December, the central bank has injected Rs 720 billion ($10.85 billion) in funds via open market bond purchases, more than the Rs 600 billion total put in during the previous two years.
The RBI is also expected to announce on Tuesday more technical measures, including making it easier for banks to pledge illiquid bonds with it in exchange for cash.
Economists say the RBI will need as well to provide more details about its planned injections, rather than its current ad hoc strategy of announcing bond purchases when liquidity has excessively tightened.
Bankers, including SBI, are also calling for the RBI to allow lenders to manage the estimated Rs 1.5 trillion in government cash balance currently held by the central bank.
"Having this clarity and flexibility will help in transmission far better than any forced approach to bring down banking lending rates by fiat," said Ananth Narayan, the regional head of financial markets for ASEAN and South Asia at Standard Chartered Bank.
GDP growth to remain flat at 7.4% in FY17: HSBC
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India is likely to clock GDP growth of 7.4 per cent in the current fiscal and consumption is likely to be the main driver of growth in the foreseeable future, says an HSBC report.
According to the global financial services firm, investment cycle revival is not expected to happen quickly or easily and the country is likely to see a consumption driven economic growth model.
Continued rise on stalled projects do not provide much confidence for investment activity, HSBC said in a research note adding consumption is likely to be the main driver of growth in the foreseeable future.
"We expect GDP growth to remain flat at 7.4 per cent in FY17 (year starting April 2016). The January-March period saw rise in stalled investment projects over the January to March period, marking the third consecutive quarter of their rise. However, the incremental stalling of investment projects was top heavy - if the top two newly stalled projects (in steel and electricity generation, respectively) were removed, the stalling rate and stalled projects as a percentage of GDP moderated slightly during January-March period.
Moreover, there was a rise in the proportion of private sector projects stuck due to unfavourable market conditions. Yet, one-third of projects continue to be stuck due to policy issues like clearance delays and raw material availability, which can be addressed by government executive action. The bad news is that investment cycle revival is not expected to happen quickly or easily. The good news is that there are some drivers out there that could make it happen... eventually," HSBC said.
India is likely to clock GDP growth of 7.4 per cent in the current fiscal and consumption is likely to be the main driver of growth in the foreseeable future, says an HSBC report.
According to the global financial services firm, investment cycle revival is not expected to happen quickly or easily and the country is likely to see a consumption driven economic growth model.
Continued rise on stalled projects do not provide much confidence for investment activity, HSBC said in a research note adding consumption is likely to be the main driver of growth in the foreseeable future.
"We expect GDP growth to remain flat at 7.4 per cent in FY17 (year starting April 2016). The January-March period saw rise in stalled investment projects over the January to March period, marking the third consecutive quarter of their rise. However, the incremental stalling of investment projects was top heavy - if the top two newly stalled projects (in steel and electricity generation, respectively) were removed, the stalling rate and stalled projects as a percentage of GDP moderated slightly during January-March period.
Moreover, there was a rise in the proportion of private sector projects stuck due to unfavourable market conditions. Yet, one-third of projects continue to be stuck due to policy issues like clearance delays and raw material availability, which can be addressed by government executive action. The bad news is that investment cycle revival is not expected to happen quickly or easily. The good news is that there are some drivers out there that could make it happen... eventually," HSBC said.
Factory activity touches 8-month high in March: PMI
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India's manufacturing growth rose to an eight-month high in March driven by strong rise in business orders, leading firms to scale up output, while the build-up in inflationary pressures may result in RBI hitting the pause button, says a Nikkei survey.
The seasonally-adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) - a composite single-figure indicator of manufacturing performance - was up from 51.1 in February to an eight-month high of 52.4.
The index registered above the crucial 50.0 threshold for a third straight month in March. A reading above 50 represents expansion while one below this level means contraction.
"PMI data suggests we should expect another quarter of robust economic growth in the last quarter of the 2015-16 financial year," Pollyanna De Lima, Economist at Markit and author of the report, said.
On the price front, cost inflation accelerated and output charge inflation touched a 16-month high. Moreover, falls in commodity and oil prices were offset by weaker rupee making imported raw materials costlier.
"This build-up in inflationary pressures may lead Reserve Bank to hold off from cutting rates, especially as solid growth was seen," Lima added.
The survey noted that along with improved domestic demand, producers also recorded an increase in new export business.
"On the export front, it was encouraging to see a sustained increase in new export orders, often attributed to the depreciation of the rupee," Lima said.
Negative industrial outlook have strengthened a case for RBI cutting interest rate in its first bi-monthly monetary policy for 2016-17 tomorrow. RBI Governor Raghuram Rajan on February 2, left the key interest rate unchanged citing inflation risks and growth concerns.
Meanwhile, Rajan on March 12 said that government sticking to fiscal consolidation roadmap of reducing deficit to 3.5 per cent of the GDP in 2016-17 was comforting. On how that would feed into monetary policy, he had said "wait and see".
India's manufacturing growth rose to an eight-month high in March driven by strong rise in business orders, leading firms to scale up output, while the build-up in inflationary pressures may result in RBI hitting the pause button, says a Nikkei survey.
The seasonally-adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) - a composite single-figure indicator of manufacturing performance - was up from 51.1 in February to an eight-month high of 52.4.
The index registered above the crucial 50.0 threshold for a third straight month in March. A reading above 50 represents expansion while one below this level means contraction.
"PMI data suggests we should expect another quarter of robust economic growth in the last quarter of the 2015-16 financial year," Pollyanna De Lima, Economist at Markit and author of the report, said.
On the price front, cost inflation accelerated and output charge inflation touched a 16-month high. Moreover, falls in commodity and oil prices were offset by weaker rupee making imported raw materials costlier.
"This build-up in inflationary pressures may lead Reserve Bank to hold off from cutting rates, especially as solid growth was seen," Lima added.
The survey noted that along with improved domestic demand, producers also recorded an increase in new export business.
"On the export front, it was encouraging to see a sustained increase in new export orders, often attributed to the depreciation of the rupee," Lima said.
Negative industrial outlook have strengthened a case for RBI cutting interest rate in its first bi-monthly monetary policy for 2016-17 tomorrow. RBI Governor Raghuram Rajan on February 2, left the key interest rate unchanged citing inflation risks and growth concerns.
Meanwhile, Rajan on March 12 said that government sticking to fiscal consolidation roadmap of reducing deficit to 3.5 per cent of the GDP in 2016-17 was comforting. On how that would feed into monetary policy, he had said "wait and see".
Panama leak: Australian tax office probes hundreds for possible tax evasion
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The Australian Tax Office (ATO) said on Monday it is investigating more than 800 wealthy clients of a Panama law firm for possible tax evasion.
The probe follows the reported leak of more than 11.5 million documents from the files of law firm Mossack Fonseca, based in the tax haven of Panama, revealing details of hundreds of thousands of clients.
The documents are at the center of an investigation published on Sunday by the International Consortium of Investigative Journalists, the German newspaper Süddeutsche Zeitung and more than 100 other news organizations around the globe. ICIJ is the international arm of the Center for Public Integrity.
The leaked "Panama Papers" cover a period over almost 40 years, from 1977 until as recently as last December, and allegedly show that some companies domiciled in tax havens were being used for suspected money laundering, arms and drug deals, and tax avoidance.
"Currently we have identified over 800 individual taxpayers and we have now linked over 120 of them to an associate offshore service provider located in Hong Kong," the Australian tax office said in a statement emailed to Reuters. It did not name the Hong Kong company.
ATO Deputy Commissioner Michael Cranston said his office was working with the Australian Federal Police, the Australian Crime Commission and anti-money laundering regulator AUSTRAC to further cross-check the data from the documents.
"Some cases may be referred to the Serious Financial Crime
Taskforce," Cranston said in the statement. "The message is clear - taxpayers can't rely on these secret arrangements being kept secret and we will act on any information that is provided to us."
Treasurer Scott Morrison told ABC Radio Monday that "our record when it comes to tax avoidance and particularly multinational tax avoidance is one of legislation and action."
The 800 individuals under investigation include some taxpayers who had previously been investigated and others who had reported themselves to the tax office under its so-called Project DO IT - Disclose Offshore Income Today. The voluntary disclosure initiative, which closed at the end of 2014, allowed people to come forward and avoid steep penalties and criminal charges.
However, the tax office said the individuals under investigation also include "a large number of taxpayers who haven't previously come forward."
In New Zealand, the tax agency is "working closely" with its tax treaty partners to obtain full details of any New Zealand tax residents who may have been involved in arrangements facilitated by Mossack Fonseca, said John Nash, Inland Revenue's international revenue strategy manager, in comments emailed to Reuters.
Nash said there is an "active compliance programme focused on those who engage in abusive offshore arrangements and don't meet their tax obligations."
He urged any New Zealand tax residents who may have been involved in offshore arrangements that do not comply with tax laws to come forward voluntarily "rather than face more severe action later should we identify participation in tax evasion or avoidance."
The Australian Tax Office (ATO) said on Monday it is investigating more than 800 wealthy clients of a Panama law firm for possible tax evasion.
The probe follows the reported leak of more than 11.5 million documents from the files of law firm Mossack Fonseca, based in the tax haven of Panama, revealing details of hundreds of thousands of clients.
The documents are at the center of an investigation published on Sunday by the International Consortium of Investigative Journalists, the German newspaper Süddeutsche Zeitung and more than 100 other news organizations around the globe. ICIJ is the international arm of the Center for Public Integrity.
The leaked "Panama Papers" cover a period over almost 40 years, from 1977 until as recently as last December, and allegedly show that some companies domiciled in tax havens were being used for suspected money laundering, arms and drug deals, and tax avoidance.
"Currently we have identified over 800 individual taxpayers and we have now linked over 120 of them to an associate offshore service provider located in Hong Kong," the Australian tax office said in a statement emailed to Reuters. It did not name the Hong Kong company.
ATO Deputy Commissioner Michael Cranston said his office was working with the Australian Federal Police, the Australian Crime Commission and anti-money laundering regulator AUSTRAC to further cross-check the data from the documents.
"Some cases may be referred to the Serious Financial Crime
Taskforce," Cranston said in the statement. "The message is clear - taxpayers can't rely on these secret arrangements being kept secret and we will act on any information that is provided to us."
Treasurer Scott Morrison told ABC Radio Monday that "our record when it comes to tax avoidance and particularly multinational tax avoidance is one of legislation and action."
The 800 individuals under investigation include some taxpayers who had previously been investigated and others who had reported themselves to the tax office under its so-called Project DO IT - Disclose Offshore Income Today. The voluntary disclosure initiative, which closed at the end of 2014, allowed people to come forward and avoid steep penalties and criminal charges.
However, the tax office said the individuals under investigation also include "a large number of taxpayers who haven't previously come forward."
In New Zealand, the tax agency is "working closely" with its tax treaty partners to obtain full details of any New Zealand tax residents who may have been involved in arrangements facilitated by Mossack Fonseca, said John Nash, Inland Revenue's international revenue strategy manager, in comments emailed to Reuters.
Nash said there is an "active compliance programme focused on those who engage in abusive offshore arrangements and don't meet their tax obligations."
He urged any New Zealand tax residents who may have been involved in offshore arrangements that do not comply with tax laws to come forward voluntarily "rather than face more severe action later should we identify participation in tax evasion or avoidance."
General Awareness
World’s initiatory White Tiger Safari inaugurated in “Heart of India”
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World’s first “White Tiger Safari”has been opened at Mukundpur inSatna district of Madhya Pradesh. It is situated in a state’s Vindhya region where the feline was first discovered more than 100 years ago.
(White tiger scientific name – Panthera tigris tigris)
- It is located adjacent to the straggled Mukundpur Zoo which is spread over 75 hectares.
- The Safari has been inaugurated by the Madhya Pradesh Chief Minister Shivraj Singh Chouhan.
- The Safari is outlaid at a cost Rs 50 crore.
- It is spread over an area of 25 hectares.
Currently, the safari is housing 3 white tigers, including one malenamed Raghu and two females, Vindhya and Radha and 2 Royal Bengal tigers. In the coming months it will house 9 white tigers.
- With the initiation of this safari, now the government is also planning to establish a breeding centre for the white tigersin nearby Govindgarh.
Important Facts:
- The first white tiger was spotted in Madhya Pradesh’s Vindhya region, in which the Satna district falls, in 1915. It died in 1920.
- In 1951, a white tiger cub, named Mohan, was captured. It became the forebear of all known white tigers in the world after the Rewa princely state’s ruler Maharaja Martand Singh arranged its breeding.
Keys Madhya Pradesh:
- Capital – Bhopal, Jabalpur (Judiciary)
- Flower – Lilium candidum
- Governor – Ram Naresh Yadav
World’s first “White Tiger Safari”has been opened at Mukundpur inSatna district of Madhya Pradesh. It is situated in a state’s Vindhya region where the feline was first discovered more than 100 years ago.
(White tiger scientific name – Panthera tigris tigris)- It is located adjacent to the straggled Mukundpur Zoo which is spread over 75 hectares.
- The Safari has been inaugurated by the Madhya Pradesh Chief Minister Shivraj Singh Chouhan.
- The Safari is outlaid at a cost Rs 50 crore.
- It is spread over an area of 25 hectares.
- With the initiation of this safari, now the government is also planning to establish a breeding centre for the white tigersin nearby Govindgarh.
Important Facts:- The first white tiger was spotted in Madhya Pradesh’s Vindhya region, in which the Satna district falls, in 1915. It died in 1920.
- In 1951, a white tiger cub, named Mohan, was captured. It became the forebear of all known white tigers in the world after the Rewa princely state’s ruler Maharaja Martand Singh arranged its breeding.
Keys Madhya Pradesh:- Capital – Bhopal, Jabalpur (Judiciary)
- Flower – Lilium candidum
- Governor – Ram Naresh Yadav
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