General Affairs
Nitin Gadkari Seeks Indian-American Participation In Start-Up Movement
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NEW DELHI: Union minister Nitin Gadkari today urged the Silicon Valley professionals of Indian-origin to participate in India's Start-up Movement to help make it a success.
The government's revolutionary policy initiatives have brought about a lot of positivity among the entrepreneurs across the globe and today India has the world's third largest number of start-ups, said Mr Gadkari, who is Road Transport and Highways and Shipping Minister.
He was addressing a series of meetings organised over the last two days by various outfits of professionals of Indian-origin based in Silicon Valley in Northern California state of the United States, said an official statement in New Delhi.
Those he addressed included Global Indian Technology Professionals Association (GITPRO) and TiE (The Indus Entrepreneurs) US Chapter.
The minister sought the participation of the Indian origin professionals of the Silicon Valley, so that they could take advantage of Prime Minister Narendra Modi's ambitious policy initiative of "Ease of doing Business" and contribute to the success of "Make in India".
He urged the professionals to bring their innovations and technologies to India in key sectors of the economy, particularly in the infrastructure sector like roads transport, highways and shipping as well as in the road safety programmes.
The government's revolutionary policy initiatives have brought about a lot of positivity among the entrepreneurs across the globe and today India has the world's third largest number of start-ups, said Mr Gadkari, who is Road Transport and Highways and Shipping Minister.
He was addressing a series of meetings organised over the last two days by various outfits of professionals of Indian-origin based in Silicon Valley in Northern California state of the United States, said an official statement in New Delhi.
Those he addressed included Global Indian Technology Professionals Association (GITPRO) and TiE (The Indus Entrepreneurs) US Chapter.
The minister sought the participation of the Indian origin professionals of the Silicon Valley, so that they could take advantage of Prime Minister Narendra Modi's ambitious policy initiative of "Ease of doing Business" and contribute to the success of "Make in India".
He urged the professionals to bring their innovations and technologies to India in key sectors of the economy, particularly in the infrastructure sector like roads transport, highways and shipping as well as in the road safety programmes.
Sheila Dikshit Suffers Minor Injuries In Uttar Pradesh Road Show Mishap
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LUCKNOW: Congress' chief ministerial candidate for Uttar Pradesh Sheila Dikshit today escaped with minor injuries after a makeshift platform on an open mini-truck collapsed during a roadshow here.
Ms Dikshit, 78, reportedly lost her balance after the plank dislocated when her cavalcade was on its way to the party headquartes on Mall Avenue from the Amausi airport in Lucknow.
Ms Dikshit was then extended a helping hand by other leaders present there and later shifted to a car, a senior party functionary said.
The three-time chief minister of Delhi was on her first visit to Uttar Pradesh after Congress declared her as its chief ministerial candidate for the crucial 2017 polls, considered a do-or-die battle for the party.
Congress chose Ms Dikshit, a Brahmin, as its face for the polls considering "her strong credentials as chief minister of Delhi for three consecutive terms" to enable the party regain support of the electorally-sizeable community.
The Brahmin community, a traditional Congress vote bank, had shifted its allegiance to BJP in the advent of the Mandir-Mandal politics.
A large chunk of Brahmin votes had gone to Mayawati's BSP in the past when she gave tickets to many candidates belonging to that community, whose support determines the poll outcome in several seats in central and eastern Uttar Pradesh.
The newly-appointed chief of Uttar Pradesh Congress Committee and actor-turned-politician Raj Babbar accompanied Ms Dikshit during the road show which started from the airport, braving intermittent smart showers.
Congress has also announced coordination and campaign committees for Uttar Pradesh which will be headed by Sanjay Singh and Pramod Tiwari respectively.
The new team took over formally at the Congress headquarters later in the day.
Ms Dikshit, 78, reportedly lost her balance after the plank dislocated when her cavalcade was on its way to the party headquartes on Mall Avenue from the Amausi airport in Lucknow.
Ms Dikshit was then extended a helping hand by other leaders present there and later shifted to a car, a senior party functionary said.
Congress chose Ms Dikshit, a Brahmin, as its face for the polls considering "her strong credentials as chief minister of Delhi for three consecutive terms" to enable the party regain support of the electorally-sizeable community.
The Brahmin community, a traditional Congress vote bank, had shifted its allegiance to BJP in the advent of the Mandir-Mandal politics.
A large chunk of Brahmin votes had gone to Mayawati's BSP in the past when she gave tickets to many candidates belonging to that community, whose support determines the poll outcome in several seats in central and eastern Uttar Pradesh.
The newly-appointed chief of Uttar Pradesh Congress Committee and actor-turned-politician Raj Babbar accompanied Ms Dikshit during the road show which started from the airport, braving intermittent smart showers.
Congress has also announced coordination and campaign committees for Uttar Pradesh which will be headed by Sanjay Singh and Pramod Tiwari respectively.
The new team took over formally at the Congress headquarters later in the day.
Broad Consensus Has Emerged Over GST, Says Venkaiah Naidu
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CHENNAI/COIMBATORE: Claiming a "broad consensus" on the long pending GST Bill, Union Minister M Venkaiah Naidu today said the Centre was "very serious" about its passage in the monsoon session of parliament, but virtually rejected Congress' demand for a tax rate cap terming it "not feasible and advisable".
The Union Urban Development Minister said the government was pursuing the matter with "all parties concerned" and he expected it to be passed in the monsoon session of Parliament beginning tomorrow.
"The entire country is watching what is going to happen in Parliament tomorrow. Broad consensus has emerged. Still there are points being addressed by the Finance Minister (Arun Jaitley). GST is the need of the hour," he said at a 'Meet the Minister' programme organised by the South Indian Film Chamber of Commerce in Chennai.
Last week, Mr Naidu, a former Parliamentary Affairs Minister, spoke to Leader of the Opposition in Rajya Sabha Ghulam Nabi Azad in a bid to drum up Opposition support for the crucial legislation.
If the common taxation code was implemented "harassment will be reduced, middlemen exploitation will be reduced and corruption will get reduced," he said, adding it will help in increasing revenue and job opportunities.
"That is why the government is very serious (about the Bill) and we are pursuing with all the parties concerned...I am sure in the coming session of the Parliament itself the GST bill will be passed. That is my expectation," Mr Naidu said.
While the GST Bill has been passed in the BJP-dominated Lok Sabha, the government has faced roadblocks in the upper house where it lacks the numbers to get it cleared.
Earlier, speaking to reporters in Coimbatore, Mr Naidu exuded confidence that the bill would be passed in the monsoon session but said Congress' demand for cap on tax rate in the Constitution bill was "not feasible and advisable."
"There is a broad consensus, with a few reservations, even as Tamil Nadu being a manufacturing State has opposed the bill. Congress wants a cap on tax rate in the constitution bill, but it is not feasible and advisable...and the GST bill is pending for the last eight years," he said.
The government wanted to pass the bill with consensus and "not scrape through" by its majority, he said.
Recalling that the bill was in place when Pranab Mukherjee was the Finance Minister and P Chidambaram had made some changes to it, Mr Naidu said it took shape after a committee comprising Finance Ministers of five states went through it in detail.
The new generation wants the bill to be passed as they want empowerment, Mr Naidu, who was in Coimbatore to participate in the 4th Edition of India International Coir Fair, said.
The Union Urban Development Minister said the government was pursuing the matter with "all parties concerned" and he expected it to be passed in the monsoon session of Parliament beginning tomorrow.
Last week, Mr Naidu, a former Parliamentary Affairs Minister, spoke to Leader of the Opposition in Rajya Sabha Ghulam Nabi Azad in a bid to drum up Opposition support for the crucial legislation.
If the common taxation code was implemented "harassment will be reduced, middlemen exploitation will be reduced and corruption will get reduced," he said, adding it will help in increasing revenue and job opportunities.
"That is why the government is very serious (about the Bill) and we are pursuing with all the parties concerned...I am sure in the coming session of the Parliament itself the GST bill will be passed. That is my expectation," Mr Naidu said.
While the GST Bill has been passed in the BJP-dominated Lok Sabha, the government has faced roadblocks in the upper house where it lacks the numbers to get it cleared.
Earlier, speaking to reporters in Coimbatore, Mr Naidu exuded confidence that the bill would be passed in the monsoon session but said Congress' demand for cap on tax rate in the Constitution bill was "not feasible and advisable."
"There is a broad consensus, with a few reservations, even as Tamil Nadu being a manufacturing State has opposed the bill. Congress wants a cap on tax rate in the constitution bill, but it is not feasible and advisable...and the GST bill is pending for the last eight years," he said.
The government wanted to pass the bill with consensus and "not scrape through" by its majority, he said.
Recalling that the bill was in place when Pranab Mukherjee was the Finance Minister and P Chidambaram had made some changes to it, Mr Naidu said it took shape after a committee comprising Finance Ministers of five states went through it in detail.
The new generation wants the bill to be passed as they want empowerment, Mr Naidu, who was in Coimbatore to participate in the 4th Edition of India International Coir Fair, said.
Strengthen Cultural Bonds Among States, Says Punjab Chief Minister
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GHUMAN: Punjab Chief Minister Parkash Singh Badal today called for strengthening cultural bonds amongst states to promote social cohesion and harmony in India.
Addressing a big gathering in Gurdaspur district after inaugurating the newly constructed Baba Namdev Ji college, Mr Badal said communal harmony and brotherhood across the country was the need of the hour.
The Guru Granth Sahib, which was the "lighthouse of socialism and secularism", could guide the entire country along the path to communal harmony, he said.
Setting up of Baba Namdev Ji University College in Ghuman by the Punjab government was a step towards further strengthening the state's cultural ties with Maharashtra, Mr Badal said.
Baba Namdev, a poet-saint from Maharashtra who lived from 1270 CE to 1350 CE, is greatly revered in Punjab.
Mr Badal said the Punjab government has also given a facelift to the memorial of great patriot Rajguru, who attained martyrdom along with Bhagat Singh during the colonial rule, in his native town in Maharashtra.
These initiatives were aimed at further strengthening the bonds of love and affinity between peoples of Punjab and Maharashtra, he said.
Mr Badal said Baba Namdev was a great spiritual ambassador who spent 19 years of his life in this town of Punjab and spread the message of equality of human beings and oneness of God.
He pointed out that the tenth master of Sikhs, Guru Gobind Singh, spent last days of his life in Sri Huzur Sahib in Nanded in Maharashtra.
For centuries people from the two states have been visiting these holy places of immense religious importance due to which a strong bond has developed amongst them, the Chief Minister said.
The gathering was also addressed by Union Railway Minister Suresh Prabhu, former Union Minister Sharad Pawar and others.
Mr Prabhu lauded the Punjab government for constructing the state-of-the art college which, he said, would help in further cementing the bonds between people of Punjab and Maharashtra.
This historic step taken by the state government would help in perpetuating the glorious heritage of Baba Namdev, he said.
Addressing a big gathering in Gurdaspur district after inaugurating the newly constructed Baba Namdev Ji college, Mr Badal said communal harmony and brotherhood across the country was the need of the hour.
The Guru Granth Sahib, which was the "lighthouse of socialism and secularism", could guide the entire country along the path to communal harmony, he said.
Setting up of Baba Namdev Ji University College in Ghuman by the Punjab government was a step towards further strengthening the state's cultural ties with Maharashtra, Mr Badal said.
Baba Namdev, a poet-saint from Maharashtra who lived from 1270 CE to 1350 CE, is greatly revered in Punjab.
Mr Badal said the Punjab government has also given a facelift to the memorial of great patriot Rajguru, who attained martyrdom along with Bhagat Singh during the colonial rule, in his native town in Maharashtra.
These initiatives were aimed at further strengthening the bonds of love and affinity between peoples of Punjab and Maharashtra, he said.
Mr Badal said Baba Namdev was a great spiritual ambassador who spent 19 years of his life in this town of Punjab and spread the message of equality of human beings and oneness of God.
He pointed out that the tenth master of Sikhs, Guru Gobind Singh, spent last days of his life in Sri Huzur Sahib in Nanded in Maharashtra.
For centuries people from the two states have been visiting these holy places of immense religious importance due to which a strong bond has developed amongst them, the Chief Minister said.
The gathering was also addressed by Union Railway Minister Suresh Prabhu, former Union Minister Sharad Pawar and others.
Mr Prabhu lauded the Punjab government for constructing the state-of-the art college which, he said, would help in further cementing the bonds between people of Punjab and Maharashtra.
This historic step taken by the state government would help in perpetuating the glorious heritage of Baba Namdev, he said.
Sheikh Hasina Seeks Nationwide Alert Amid Islamist Attacks
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DHAKA, BANGLADESH: Fearing fresh Islamist attacks, Bangladesh Prime Minister Sheikh Hasina today sought a nationwide social alert advising neighbourhoods and institutions to develop their own security systems to supplement the security agencies.
"Once they (Islamists) started, they are unlikely to keep silent," the premier told a media briefing at her residence in the aftermath of the July 1 terrorist attack at an upmarket Dhaka cafe that killed 20, including an Indian girl, and a subsequent assault on an Eid congregation in northern Sholakia district.
She however said the attacks resulted in a "national unity" against Islamists with people from all walks of life including Islamic leaders joining hands in spearheading a countrywide social campaign at the grassroots while police and security forces launched a clampdown against terrorists.
"However, everybody should develop their own security spheres, while the government will do everything possible on its part," Ms Hasina said.
She spoke hours after suspected terrorists hacked three traditional 'Baul' mystic singers in a pre-dawn attack in western Chadanga district where a number of them rallied to join a mystic congregation.
The Baul community renders mystic songs disseminating messages of universal harmony, which is close to the Muslim Sufi thoughts, and do not perform the routine Islamic rituals.
No group has claimed responsibility for the attack, but police suspect local hardline Islamists to have carried out the attack as they denounce mysticism as "unIslamic".
Bangladesh in the past two years has witnessed deadly attacks on liberals, secular writers and activists, religious minorities including Hindus, Shias and Sufis.
"But the Gulshan (Dhaka cafe) attack appeared with a different dimension, a number of foreigners lost their lives in the assault affecting the country's image. Earlier I had talked louder but the Gulshan attack dented country's esteemed position," Ms Hasina said.
"Once they (Islamists) started, they are unlikely to keep silent," the premier told a media briefing at her residence in the aftermath of the July 1 terrorist attack at an upmarket Dhaka cafe that killed 20, including an Indian girl, and a subsequent assault on an Eid congregation in northern Sholakia district.
She however said the attacks resulted in a "national unity" against Islamists with people from all walks of life including Islamic leaders joining hands in spearheading a countrywide social campaign at the grassroots while police and security forces launched a clampdown against terrorists.
"However, everybody should develop their own security spheres, while the government will do everything possible on its part," Ms Hasina said.
The Baul community renders mystic songs disseminating messages of universal harmony, which is close to the Muslim Sufi thoughts, and do not perform the routine Islamic rituals.
No group has claimed responsibility for the attack, but police suspect local hardline Islamists to have carried out the attack as they denounce mysticism as "unIslamic".
Bangladesh in the past two years has witnessed deadly attacks on liberals, secular writers and activists, religious minorities including Hindus, Shias and Sufis.
"But the Gulshan (Dhaka cafe) attack appeared with a different dimension, a number of foreigners lost their lives in the assault affecting the country's image. Earlier I had talked louder but the Gulshan attack dented country's esteemed position," Ms Hasina said.
Business Affairs
Raghuram Rajan Hits Back At Critics, Asks How Inflation Is 'Very Low'
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Reserve Bank of India Governor Raghuram Rajan has challenged his critics to show how inflation is "very low" before accusing him of "being behind the curve" in his focus on containing inflation than economic growth, and termed such criticism as mere "dialogues".
Mr Rajan, who has often been seen as being critical of the government and its policies, also said there is "lot of frustration" about the pace of economic recovery, but attributed it to two successive droughts, weak global economy and external shocks like Brexit - Britain's exit from the European Union.
Given these constraints, India's economic performance has been "quite creditable" and prospects of a good monsoon as well as structural reforms and macroeconomic stability will accelerate growth going forward, he added.
On GDP figures, the outgoing RBI governor said he has refrained from "thumping on the table" to put a number on GDP growth, adding that people sometimes get "overly fixated with a particular growth number", though figures like 7.6 per cent and 8 per cent are within the same range.
Mr Rajan, who has been pilloried by his critics for keeping interest rates high and accused of stifling growth, cited retail inflation (based on Consumer Price Index) surging for the fourth straight month to 5.77 per cent in June to defend his record.
"This discussion (on being behind the curve) keeps going on without any economic basis. You saw the CPI numbers just last week - 5.8 per cent is the CPI inflation, our policy rate is 6.5 per cent."
Asserting that he does not "really pay attention to this kind of dialogues", Mr Rajan said those accusing him of "being behind the curve" should explain how inflation is "very low" to warrant lower interest rates.
One of the biggest criticisms of Mr Rajan's monetary policy has been by BJP MP Subramanian Swamy, who had accused him of being "mentally not fully Indian" and sought his dismissal. Amid unrelenting personal attacks, Mr Rajan last month announced that he would step down at the end of his three-year tenure on September 4 and return to academia.
"I am not sure where we are behind the curve. You have to tell me that somehow inflation is very low for us to be seen as behind the curve."
Consumer inflation is currently near its two-year high and close to the upper end of the RBI's inflation target of 2 per cent to 6 per cent.
On challenges facing the economy, Mr Rajan said, "I think the challenges have been relatively same for quite some time, which is we are in the midst of a recovery."
"There is a lot of frustration with the pace of the recovery but we should remember that it is in the face of two consecutive droughts and with a global economy which has been quite weak. And of course with number of shocks coming from the global economy such as...Brexit."
The RBI chief said given these domestic and external factors, "the performance of the Indian economy has been quite creditable".
Mr Rajan said the challenge is to strengthen the process by undertaking all the reforms that are needed.
"There is a lot of talk nowadays about GST being done in monsoon session. That would be a good thing. I think from our perspective at the RBI, the number of issues that we are working on and trying to accelerate the structural reforms process, so let's see what we can do," he said.
Mr Rajan said the focus should be on undertaking all the actions needed to ensure that growth is strong and sustainable. Structural reforms are "really what we should be focussed on rather than whether it is half a percentage point up or down".
When asked whether he would write a book, similar to his predecessor D Subbarao's 'Who Moved My Interest Rate' that has just come out, Mr Rajan said, "I have no immediate plans to write a book on this subject."
"I will write on academic issues," Mr Rajan told a select group of journalists here.
On financial inclusion, the RBI Governor said there cannot be bank branches in every village because it would be too expensive and the RBI is exploring definition of a branch to see if mini, micro and mobile branches can fit into it.
"We have given the in-principle licence to Postal Payment Bank... that would bring a lot of Post Offices into the process and so you can put in money and take out money." Also, with the mobile companies coming in, money can be put in or taken out from a mobile kiosk.
So, if a mobile company has 1.5 lakh kiosks selling mobile cards, these can be used to take in money or give out money. This "could be a big game changer", he said.
Mr Rajan said that by the end of this month, the universal payment interface (UPI), which allows one to make payment from one bank account to another, will be in place.
"So I think, with the UPI, and I am telling you a two stage process... One, we have to make it easier to take out and put in money, the kiosks will help, the Post offices will help... But also the need to take out money or put in money will reduce if I can do directly into the bank account, if I can make payments electronically and I think UPI will help there. So my hope is these things will actually reduce the problem."
Mr Rajan, who has often been seen as being critical of the government and its policies, also said there is "lot of frustration" about the pace of economic recovery, but attributed it to two successive droughts, weak global economy and external shocks like Brexit - Britain's exit from the European Union.
Given these constraints, India's economic performance has been "quite creditable" and prospects of a good monsoon as well as structural reforms and macroeconomic stability will accelerate growth going forward, he added.
On GDP figures, the outgoing RBI governor said he has refrained from "thumping on the table" to put a number on GDP growth, adding that people sometimes get "overly fixated with a particular growth number", though figures like 7.6 per cent and 8 per cent are within the same range.
Mr Rajan, who has been pilloried by his critics for keeping interest rates high and accused of stifling growth, cited retail inflation (based on Consumer Price Index) surging for the fourth straight month to 5.77 per cent in June to defend his record.
"This discussion (on being behind the curve) keeps going on without any economic basis. You saw the CPI numbers just last week - 5.8 per cent is the CPI inflation, our policy rate is 6.5 per cent."
Asserting that he does not "really pay attention to this kind of dialogues", Mr Rajan said those accusing him of "being behind the curve" should explain how inflation is "very low" to warrant lower interest rates.
One of the biggest criticisms of Mr Rajan's monetary policy has been by BJP MP Subramanian Swamy, who had accused him of being "mentally not fully Indian" and sought his dismissal. Amid unrelenting personal attacks, Mr Rajan last month announced that he would step down at the end of his three-year tenure on September 4 and return to academia.
"I am not sure where we are behind the curve. You have to tell me that somehow inflation is very low for us to be seen as behind the curve."
Consumer inflation is currently near its two-year high and close to the upper end of the RBI's inflation target of 2 per cent to 6 per cent.
On challenges facing the economy, Mr Rajan said, "I think the challenges have been relatively same for quite some time, which is we are in the midst of a recovery."
"There is a lot of frustration with the pace of the recovery but we should remember that it is in the face of two consecutive droughts and with a global economy which has been quite weak. And of course with number of shocks coming from the global economy such as...Brexit."
The RBI chief said given these domestic and external factors, "the performance of the Indian economy has been quite creditable".
Mr Rajan said the challenge is to strengthen the process by undertaking all the reforms that are needed.
"There is a lot of talk nowadays about GST being done in monsoon session. That would be a good thing. I think from our perspective at the RBI, the number of issues that we are working on and trying to accelerate the structural reforms process, so let's see what we can do," he said.
Mr Rajan said the focus should be on undertaking all the actions needed to ensure that growth is strong and sustainable. Structural reforms are "really what we should be focussed on rather than whether it is half a percentage point up or down".
When asked whether he would write a book, similar to his predecessor D Subbarao's 'Who Moved My Interest Rate' that has just come out, Mr Rajan said, "I have no immediate plans to write a book on this subject."
"I will write on academic issues," Mr Rajan told a select group of journalists here.
On financial inclusion, the RBI Governor said there cannot be bank branches in every village because it would be too expensive and the RBI is exploring definition of a branch to see if mini, micro and mobile branches can fit into it.
"We have given the in-principle licence to Postal Payment Bank... that would bring a lot of Post Offices into the process and so you can put in money and take out money." Also, with the mobile companies coming in, money can be put in or taken out from a mobile kiosk.
So, if a mobile company has 1.5 lakh kiosks selling mobile cards, these can be used to take in money or give out money. This "could be a big game changer", he said.
Mr Rajan said that by the end of this month, the universal payment interface (UPI), which allows one to make payment from one bank account to another, will be in place.
"So I think, with the UPI, and I am telling you a two stage process... One, we have to make it easier to take out and put in money, the kiosks will help, the Post offices will help... But also the need to take out money or put in money will reduce if I can do directly into the bank account, if I can make payments electronically and I think UPI will help there. So my hope is these things will actually reduce the problem."
Why PPF Interest Rate Could Fall To Lowest In Nearly 40 Years
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In what could be a big setback to the common man, interest rate on one of the most popular small saving schemes - public provident fund (PPF) - could fall below 8 per cent, a level never seen since 1979.
The interest rates on small saving schemes such as PPF are tied to government debt securities of corresponding maturities. The yields on 10-year benchmark government securities are hovering around three-year low of 7.30 per cent. Yield shows the return on a debt paper.
As yields have gone down, the small savings rates should also logically go down, say experts.
According to the new small savings scheme rules, which came into effect from April 1, interest rates will be revised every quarter, based on the previous 3-month yields on benchmark government securities or bonds with a small mark-up. Earlier, interest rates were set for the full year.
"The PPF has a mark-up of 0.25 per cent above the 3-month yield of government securities of similar maturity. If the government follows this formula, the PPF and other small savings schemes will see a rate cut," said Anil Rego, CEO and founder at Right Horizons.
However, the government when fixing the PPF rate for the July-September quarter kept the PPF rate unchanged despite a softening in the yield in bonds.
"Though, there is a defined formula for interest rates of PPF and other small savings rates linked to the government securities rates, the government did not implement the same for the quarter July-Sept 2016. Otherwise the interest rates would have moved below 8 per cent even for the July-September quarter," said Manoj Nagpal, CEO of wealth management firm Outlook Asia Capital.
"There is no logical reason why PPF interest rates should remain above 8 per cent on a tax-free basis whereas bank fixed deposit rates - which are taxable - have moved significantly below 8 per cent.," he added.
Experts say that the yields are likely to remain soft in the wake of good monsoon which will take away some pressure off inflation and the possibility of further stimulus measures from global central banks.
For the April quarter, the government had cut the interest rate on small savings schemes sharply, following a slide in benchmark government securities rate. As a result, interest rate on PPF was set sharply lower at 8.1 per cent for the period April 1 to June 30, down from 8.7 per cent.
However, experts believe that even if the rate cut happens for the October to December quarter, PPF will remain an excellent investment choice.
"PPF remains an attractive instrument due to the EEE (exempt-exempt-exempt) tax status and even if the rates were cut, it will still continue to provide positive real interest rates above inflation," says Mr Nagpal of Outlook Asia Capital.
The interest rates on small saving schemes such as PPF are tied to government debt securities of corresponding maturities. The yields on 10-year benchmark government securities are hovering around three-year low of 7.30 per cent. Yield shows the return on a debt paper.
As yields have gone down, the small savings rates should also logically go down, say experts.
According to the new small savings scheme rules, which came into effect from April 1, interest rates will be revised every quarter, based on the previous 3-month yields on benchmark government securities or bonds with a small mark-up. Earlier, interest rates were set for the full year.
"The PPF has a mark-up of 0.25 per cent above the 3-month yield of government securities of similar maturity. If the government follows this formula, the PPF and other small savings schemes will see a rate cut," said Anil Rego, CEO and founder at Right Horizons.
However, the government when fixing the PPF rate for the July-September quarter kept the PPF rate unchanged despite a softening in the yield in bonds.
"Though, there is a defined formula for interest rates of PPF and other small savings rates linked to the government securities rates, the government did not implement the same for the quarter July-Sept 2016. Otherwise the interest rates would have moved below 8 per cent even for the July-September quarter," said Manoj Nagpal, CEO of wealth management firm Outlook Asia Capital.
"There is no logical reason why PPF interest rates should remain above 8 per cent on a tax-free basis whereas bank fixed deposit rates - which are taxable - have moved significantly below 8 per cent.," he added.
Experts say that the yields are likely to remain soft in the wake of good monsoon which will take away some pressure off inflation and the possibility of further stimulus measures from global central banks.
For the April quarter, the government had cut the interest rate on small savings schemes sharply, following a slide in benchmark government securities rate. As a result, interest rate on PPF was set sharply lower at 8.1 per cent for the period April 1 to June 30, down from 8.7 per cent.
However, experts believe that even if the rate cut happens for the October to December quarter, PPF will remain an excellent investment choice.
"PPF remains an attractive instrument due to the EEE (exempt-exempt-exempt) tax status and even if the rates were cut, it will still continue to provide positive real interest rates above inflation," says Mr Nagpal of Outlook Asia Capital.
When Your Computer's Location Could Deny You A Loan!
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There was a time when banks used a handful of information to assess the creditworthiness of the borrower. With the introduction of credit score, the lending industry saw a huge revolution. Banks and other financial systems relied on credit reports to reduce the risk of credit defaults. However, there is a paradigm shift in the way money is perceived and used in the financial system.
The lending industry is poised to see a huge change in its practices. Soon, determining individuals' credit worthiness based only on their credit score will be a thing of the past. The futuristic fintech (financial technology) lending companies are now analysing a huge number of data to determine the credit worthiness of a person.
The advent of internet was a revolutionary change that transformed the way we live. Four decades later, it has sneaked in our daily lives. What we do, where we go, what we like, where we shop, where we live - everything is there on the internet. The new lending start-ups are continuously mining, collecting and organising these data points to make their lending decisions. These companies have found an alternate way of determining the creditworthiness of even those individuals who do not have credit scores. While traditional lenders are still heavily dependent on the credit scores, a new wave of start-ups is now combing through social networking sites, Amazon and the likes, GPS location, online shopping behavior and so on.
These companies collect thousands of seemingly meaningless data about the individual, which are then incorporated in a complex algorithm to determine the behaviour pattern of the individual when assessing his/her loan application. Using the 'big data' to make lending decision is set to become a norm rather than exception, sooner or later.
Here are some of the thousands of ways in which a lending company may weigh up your creditworthiness:
Location of your computer
The location of your computer is used to determine the place where you live or work. If the ratio of credit defaulters is higher in your neighbourhood, this could be bad news for you. You may deny a loan based on where your computer is located.
Your social media friends
If you are friends on any social networking site with someone who has defaulted on his/her loan, there is a high chance of your loan application getting rejected. They also analyse who you are interacting with most. Your social media friends will soon play a large role in determining your creditworthiness.
Your smartphones
Your smartphone is like a bag full of goodies for these revolutionary lending start-ups. It contains huge amounts of data - both obvious and subtle - that can help them make a decision regarding your creditworthiness. It is a quarry of data like your social media posts, your text messages, GPS location and emails, among thousands of other data points. They will scan your call history, who you contact most often, your online shopping receipts and even how many times you have charged your mobile.
Your online payment accounts
If you are a business, these lending companies will ask your permission to access your PayPal, eBay or any other payment account to analyse your sales information.
These are just minute pieces of a much bigger pie. Credit scores are just not enough. Lending companies are on a lookout to find more reliable and predictable ways to minimise the risk of delinquency. Big data mining can help them collect thousands of pieces of information from search engines, social media sites, etc. to make accurate predictions regarding the behaviour of the borrower and make better lending decisions.
The lending industry is poised to see a huge change in its practices. Soon, determining individuals' credit worthiness based only on their credit score will be a thing of the past. The futuristic fintech (financial technology) lending companies are now analysing a huge number of data to determine the credit worthiness of a person.
The advent of internet was a revolutionary change that transformed the way we live. Four decades later, it has sneaked in our daily lives. What we do, where we go, what we like, where we shop, where we live - everything is there on the internet. The new lending start-ups are continuously mining, collecting and organising these data points to make their lending decisions. These companies have found an alternate way of determining the creditworthiness of even those individuals who do not have credit scores. While traditional lenders are still heavily dependent on the credit scores, a new wave of start-ups is now combing through social networking sites, Amazon and the likes, GPS location, online shopping behavior and so on.
These companies collect thousands of seemingly meaningless data about the individual, which are then incorporated in a complex algorithm to determine the behaviour pattern of the individual when assessing his/her loan application. Using the 'big data' to make lending decision is set to become a norm rather than exception, sooner or later.
Here are some of the thousands of ways in which a lending company may weigh up your creditworthiness:
Location of your computer
The location of your computer is used to determine the place where you live or work. If the ratio of credit defaulters is higher in your neighbourhood, this could be bad news for you. You may deny a loan based on where your computer is located.
Your social media friends
If you are friends on any social networking site with someone who has defaulted on his/her loan, there is a high chance of your loan application getting rejected. They also analyse who you are interacting with most. Your social media friends will soon play a large role in determining your creditworthiness.
Your smartphones
Your smartphone is like a bag full of goodies for these revolutionary lending start-ups. It contains huge amounts of data - both obvious and subtle - that can help them make a decision regarding your creditworthiness. It is a quarry of data like your social media posts, your text messages, GPS location and emails, among thousands of other data points. They will scan your call history, who you contact most often, your online shopping receipts and even how many times you have charged your mobile.
Your online payment accounts
If you are a business, these lending companies will ask your permission to access your PayPal, eBay or any other payment account to analyse your sales information.
These are just minute pieces of a much bigger pie. Credit scores are just not enough. Lending companies are on a lookout to find more reliable and predictable ways to minimise the risk of delinquency. Big data mining can help them collect thousands of pieces of information from search engines, social media sites, etc. to make accurate predictions regarding the behaviour of the borrower and make better lending decisions.
GST Can Lower Cost Of Logistics Industry By 20%: Care Ratings
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Logistics industry is projected to grow at a compounded annual growth rate of 15-20 per cent between 2015-16 and 2019-20 that will get a further boost if GST is rolled out from this year, which can trim costs by 20 per cent, says a report.
The much-delayed GST rollout can help boost the GDP by 100-200 bps as this will help faster and cheaper movement of goods across the country with a uniform taxation structure, said a report by Care Ratings.
"Logistics industry is likely to clip at CAGR of 15-20 per cent during 2015-16-2019-20 and if GST is rolled out this year this can bring down the logistic costs by up to 20 per cent from the present levels," it said.
Cost can also come down drastically as a one-nation-one-tax GST structure can massively reduce the long and winding queues at border check-points and other entry points within and between the states.
Another reason for lower logistics cost is that operators will be able to rationalize and restructure their warehouses and other logistical infrastructure.
Due to trade barriers such as the entry tax, local body tax, Octroi and other hurdles, trucks idle for 30-40 per cent of the day, leading to huge man-hour and fuel losses, says the report.
Since GST will be levied on goods transportation and full credit will be available on interstate transactions, logistic cost is expected to come down by 1.5-2 per cent of sales due to warehouse optimization and the resultant lower inventory cost.
According to a recent World Bank report, corporates can save up to 40 per cent of their logistic costs incurred at check-posts and toll plazas.
According to the report, the higher growth of the logistic industry will be driven by e-commerce, GST rollout, government focus on local manufacturing, the new national integrated logistic policy, and 100 per cent FDI in warehouses, food storage facilities etc.
But in spite of large potential, the industry remains entangled in complexities such as higher costs, a myriad of complex tax structures.
The logistic sector is primarily divided into four segments -- transportation, warehousing, freight forwarding and value-added logistics.
The transportation contributes the lion's chunk of 60 per cent of the logistic pie, followed by warehousing compromising industrial and agricultural storage at 24.5 per cent.
Packaging and other related businesses constitutes the rest of the segment.
The much-delayed GST rollout can help boost the GDP by 100-200 bps as this will help faster and cheaper movement of goods across the country with a uniform taxation structure, said a report by Care Ratings.
"Logistics industry is likely to clip at CAGR of 15-20 per cent during 2015-16-2019-20 and if GST is rolled out this year this can bring down the logistic costs by up to 20 per cent from the present levels," it said.
Cost can also come down drastically as a one-nation-one-tax GST structure can massively reduce the long and winding queues at border check-points and other entry points within and between the states.
Another reason for lower logistics cost is that operators will be able to rationalize and restructure their warehouses and other logistical infrastructure.
Due to trade barriers such as the entry tax, local body tax, Octroi and other hurdles, trucks idle for 30-40 per cent of the day, leading to huge man-hour and fuel losses, says the report.
Since GST will be levied on goods transportation and full credit will be available on interstate transactions, logistic cost is expected to come down by 1.5-2 per cent of sales due to warehouse optimization and the resultant lower inventory cost.
According to a recent World Bank report, corporates can save up to 40 per cent of their logistic costs incurred at check-posts and toll plazas.
According to the report, the higher growth of the logistic industry will be driven by e-commerce, GST rollout, government focus on local manufacturing, the new national integrated logistic policy, and 100 per cent FDI in warehouses, food storage facilities etc.
But in spite of large potential, the industry remains entangled in complexities such as higher costs, a myriad of complex tax structures.
The logistic sector is primarily divided into four segments -- transportation, warehousing, freight forwarding and value-added logistics.
The transportation contributes the lion's chunk of 60 per cent of the logistic pie, followed by warehousing compromising industrial and agricultural storage at 24.5 per cent.
Packaging and other related businesses constitutes the rest of the segment.
47% Of Working Indians Not Saving For Retirement: Survey
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Even as financial security after retirement is valued more, a survey by HSBC has revealed that 47 per cent of working people in India have not started saving for their future or have stopped or faced difficulties while saving.
"A large number (47 per cent) of working people in India have either not started saving for their retirement or have stopped or faced difficulties while saving for their future. This is higher than the global average (46 per cent)," HSBC said in its report.
The survey, which was conducted online by Ipsos MORI in September and October 2015, is 13th in the series and represents the views of 18,207 people in 17 countries and territories worldwide, including Argentina, Australia, Brazil, Canada, China, Egypt, France, Hong Kong, India, Indonesia, Malaysia, Mexico, Singapore, Taiwan, United Arab Emirates, the UK and the US.
According to the report, an alarming 44 per cent of working people in India who had started saving for their retirement have stopped or faced difficulties.
Further, the report also found that more than one-fifth (21 per cent) of the working population surveyed have not even started saving for retirement, while 22 per cent of people aged 60 and over and 14 per cent in their 50s have not begun to save for retirement.
One in 10 of working people have never received professional advice or information about retirement, it revealed.
Interestingly, friends and family were the most common sources of retirement advice or information, the report said.
While almost 80 per cent of pre-retirees sought advice from friends and family, 82 per cent of retirees have received advice from them.
On the flip side, it said only 40 per cent of pre-retirees and 53 per cent of retirees have received retirement advice and information from professionals, including financial advisors, government agencies, insurance brokers and bank advisors.
"A large number (47 per cent) of working people in India have either not started saving for their retirement or have stopped or faced difficulties while saving for their future. This is higher than the global average (46 per cent)," HSBC said in its report.
The survey, which was conducted online by Ipsos MORI in September and October 2015, is 13th in the series and represents the views of 18,207 people in 17 countries and territories worldwide, including Argentina, Australia, Brazil, Canada, China, Egypt, France, Hong Kong, India, Indonesia, Malaysia, Mexico, Singapore, Taiwan, United Arab Emirates, the UK and the US.
According to the report, an alarming 44 per cent of working people in India who had started saving for their retirement have stopped or faced difficulties.
Further, the report also found that more than one-fifth (21 per cent) of the working population surveyed have not even started saving for retirement, while 22 per cent of people aged 60 and over and 14 per cent in their 50s have not begun to save for retirement.
One in 10 of working people have never received professional advice or information about retirement, it revealed.
Interestingly, friends and family were the most common sources of retirement advice or information, the report said.
While almost 80 per cent of pre-retirees sought advice from friends and family, 82 per cent of retirees have received advice from them.
On the flip side, it said only 40 per cent of pre-retirees and 53 per cent of retirees have received retirement advice and information from professionals, including financial advisors, government agencies, insurance brokers and bank advisors.
General Awareness
UNESCO declares Nalanda Mahavihara(Nalanda University) as World Heritage Site
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The 5th Century ancient seat of learning, ‘Nalanda Mahavihara(Nalanda University) has been declared as a Heritage Site by UNESCO finally. This will be 33rd site to get this tag.
- This decision was taken at the UNESCO World Heritage Committee’s 40th session, at Istanbul, Turkey. All 21 Member countries of UNESCO agreed and voted in favour of Nalanda unanimously.
- Nalanda University gets the heritage tag which made India’s official entry in the ‘Cultural Category‘ for 2016 became the country’s 33rd archaeological site to win the prestigious title.
- The University stands out as the most ancient university of the Indian Subcontinent. It involved in the organised transmission of knowledge over an uninterrupted period of 800 years.
- The historical development of the site testifies to the development of Buddhism into a religion.
- This would be the second UNESCO heritage site in Bihar after Mahabodhi temple in Bodh Gaya.
Tentative List of World Heritage:
- Zuojiang Huashan Rock Art Landscape (China),
- Persian Qanat (Iran),
- Nan Madol (Eastern Micronesia)
- Nalanda Mahavihara (India).
Nalanda Mahavihara – ‘Medieval School of Discussion and Logic’
- It was founded by Kumargupta I of the Gupta dynasty in 5th century CE.
- It was patronized by various rulers including King Harshavardhana of Kannauj (7th century CE) and the Pala rulers (8th – 12th century CE) as well as various scholars.
- Nalanda attracted scholars from the Indian subcontinent and beyond and received patronage of local rulers and foreign kings for unbroken period of 800 years.
UNESCO:
♦ Headquarters: Paris, France
♦ Formation: 16 November 1945
♦ Membership: 195 member states
The 5th Century ancient seat of learning, ‘Nalanda Mahavihara(Nalanda University) has been declared as a Heritage Site by UNESCO finally. This will be 33rd site to get this tag.
- This decision was taken at the UNESCO World Heritage Committee’s 40th session, at Istanbul, Turkey. All 21 Member countries of UNESCO agreed and voted in favour of Nalanda unanimously.
- Nalanda University gets the heritage tag which made India’s official entry in the ‘Cultural Category‘ for 2016 became the country’s 33rd archaeological site to win the prestigious title.
- The University stands out as the most ancient university of the Indian Subcontinent. It involved in the organised transmission of knowledge over an uninterrupted period of 800 years.
- The historical development of the site testifies to the development of Buddhism into a religion.
- This would be the second UNESCO heritage site in Bihar after Mahabodhi temple in Bodh Gaya.
Tentative List of World Heritage:
- Zuojiang Huashan Rock Art Landscape (China),
- Persian Qanat (Iran),
- Nan Madol (Eastern Micronesia)
- Nalanda Mahavihara (India).
Nalanda Mahavihara – ‘Medieval School of Discussion and Logic’
- It was founded by Kumargupta I of the Gupta dynasty in 5th century CE.
- It was patronized by various rulers including King Harshavardhana of Kannauj (7th century CE) and the Pala rulers (8th – 12th century CE) as well as various scholars.
- Nalanda attracted scholars from the Indian subcontinent and beyond and received patronage of local rulers and foreign kings for unbroken period of 800 years.
UNESCO:
♦ Headquarters: Paris, France
♦ Formation: 16 November 1945
♦ Membership: 195 member states
♦ Formation: 16 November 1945
♦ Membership: 195 member states
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