General Affairs
Devendra Fadnavis Taps Hologram Technology To Woo Voters In Civic Polls
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Following in the footsteps of Prime Minister Narendra Modi, Maharashtra Chief Minister Devendra Fadnavis is taking a digital campaign route and tapping hologram technology to woo voters in the civic polls.
To reach out to wider audience and connect with voters, his party BJP has introduced a three-dimensional hologram of Mr Fadnavis through a mobile app.
Each user - having both low-cost and high-end mobile smartphones - can download the app and view the 3D image of the CM who will then deliver a five-minute video message, a BJP release said here today.
The user will have to download the app, "Invite CM", to listen to Mr Fadnavis's message which is part of BJP's campaign for the February 21 elections to 10 municipal corporations, including Mumbai.
When the app gets active, a life-size image of the CM in 3D hologram format would emerge and it would be followed by his video message, the release said.
The mobile app is available in Marathi, Hindi and English.
During the 2014 Lok Sabha polls, Modi, then BJP's Prime Ministerial candidate, had successfully used hologram technology to address rallies and connect with voters.
To reach out to wider audience and connect with voters, his party BJP has introduced a three-dimensional hologram of Mr Fadnavis through a mobile app.
Each user - having both low-cost and high-end mobile smartphones - can download the app and view the 3D image of the CM who will then deliver a five-minute video message, a BJP release said here today.
When the app gets active, a life-size image of the CM in 3D hologram format would emerge and it would be followed by his video message, the release said.
The mobile app is available in Marathi, Hindi and English.
During the 2014 Lok Sabha polls, Modi, then BJP's Prime Ministerial candidate, had successfully used hologram technology to address rallies and connect with voters.
'UP Does Not Need An Adopted Son,' Priyanka Gandhi Hits Back At PM Narendra Modi
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Priyanka Gandhi, seen as the chief architect of her party the Congress' alliance with the Samajwadi Party for the Uttar Pradesh elections, offered a riposte today to Prime Minister Narendra Modi's attacks on Chief Minister Akhilesh Yadav and her brother and Congress Vice President Rahul Gandhi, the faces of their partnership.
"UP doesn't need an adopted son to do good for the state, Rahul Gandhi and Akhilesh Yadav are two sons of UP," said Ms Gandhi, in a short speech in Rae Bareli, her mother and Congress President Sonia Gandhi's parliamentary constituency. It was in response to Prime Minister Narendra Modi, who said at an election rally yesterday that he is the "adopted son of UP," drawing parallels with Lord Krishna.
"Krishna was born in Uttar Pradesh but made Gujarat his karma bhoomi. I was born in Gujarat but Uttar Pradesh has adopted me," said the Prime Minister, who represents UP's Varanasi in parliament. He said UP was like "mai-baap" or parents to him and he felt privileged, vowing not to let down the state.
"What have you done for Varanasi," Ms Gandhi asked, also invoking her father when she said, "Rajiv Gandhi developed Amethi, what a prime minster can do for a constituency everyone knows." Her brother too attacked PM Modi with a Bollywood reference, saying he promised "achhe din" like Shah Rukh Khan in "Dilwale Dulhaniya Le Jayenge" but ended up being villain Gabbar Singh of "Sholay."
The BJP, led by the PM and party chief Amit Shah, has labeled Mr Gandhi and Mr Yadav the "two shehazade or princes," accusing them of a direct and privileged access to power because they belong to political dynasties.
Anita Srivastava, the BJP candidate from Rae Bareli said, "the Gandhis have done nothing for this area, that is the truth."
In a crowd of over 5,000 women waiting for a glimpse of Priyanka Gandhi, 45-year-old Kalluri Devi said she had a few months ago handed an application to Sonia Gandhi personally requesting for a grant to build a house and for a hand pump to be installed at her house. "Sonia Gandhi told me she would pursue it.... If I met her again I will tell her that her people just don't listen to the poor," she said.
Ms Gandhi made her first public appearance in these elections only a day after Smriti Irani, union minister and Rahul Gandhi 's opponent in the 2014 national election in neighbouring Amethi, alleged that she was missing in action because she had no answers for the people.
Priyanka Gandhi has so far restricted her campaigning to her mother and brother's constituencies and there is no indication so far that she will change in the ongoing UP assembly elections being held in seven phases. Two phases of polling have already been held.
"UP doesn't need an adopted son to do good for the state, Rahul Gandhi and Akhilesh Yadav are two sons of UP," said Ms Gandhi, in a short speech in Rae Bareli, her mother and Congress President Sonia Gandhi's parliamentary constituency. It was in response to Prime Minister Narendra Modi, who said at an election rally yesterday that he is the "adopted son of UP," drawing parallels with Lord Krishna.
"Krishna was born in Uttar Pradesh but made Gujarat his karma bhoomi. I was born in Gujarat but Uttar Pradesh has adopted me," said the Prime Minister, who represents UP's Varanasi in parliament. He said UP was like "mai-baap" or parents to him and he felt privileged, vowing not to let down the state.
The BJP, led by the PM and party chief Amit Shah, has labeled Mr Gandhi and Mr Yadav the "two shehazade or princes," accusing them of a direct and privileged access to power because they belong to political dynasties.
Anita Srivastava, the BJP candidate from Rae Bareli said, "the Gandhis have done nothing for this area, that is the truth."
In a crowd of over 5,000 women waiting for a glimpse of Priyanka Gandhi, 45-year-old Kalluri Devi said she had a few months ago handed an application to Sonia Gandhi personally requesting for a grant to build a house and for a hand pump to be installed at her house. "Sonia Gandhi told me she would pursue it.... If I met her again I will tell her that her people just don't listen to the poor," she said.
Ms Gandhi made her first public appearance in these elections only a day after Smriti Irani, union minister and Rahul Gandhi 's opponent in the 2014 national election in neighbouring Amethi, alleged that she was missing in action because she had no answers for the people.
Priyanka Gandhi has so far restricted her campaigning to her mother and brother's constituencies and there is no indication so far that she will change in the ongoing UP assembly elections being held in seven phases. Two phases of polling have already been held.
Jammu And Kashmir Chief Minister Mehbooba Mufti Inducts Senior People's Democratic Party Leader Into Cabinet
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Jammu and Kashmir Chief Minister Mehbooba Mufti on Friday expanded her nine-month-old ministry for the first time with the induction of senior People's Democratic Party (PDP) leader Syed Altaf Bukhari, who was dropped when she formed the government after the death of her father Mufti Mohammad Sayeed.
Mr Bukhari is the legislator from Amira Kadal constituency in Srinagar. He took the oath at a function in Raj Bhawan, Jammu, in the presence of Governor N.N. Vohra.
Ms Mufti and her ministerial colleagues were present during the swearing-in ceremony.
Mr Bukhari was the Roads and Buildings Minister in the Mufti Mohammad Sayeed-led PDP-BJP coalition in 2015.
With his re-induction into the cabinet, the total strength of the council has gone up to 24.
Under the state constitution, Jammu and Kashmir can have a 25-member strong council of ministers. Mr Bukhari's portfolio is expected to be announced later on Friday.
According to the conditions of the alliance between PDP and BJP, Ms Mufti's party has a quota of 14 ministers, including the Chief Minister, while the BJP party has 11 ministerial berths.
Javid Mustafa Mir and two ministers of state, Mohammad Ashraf Mir and Abdul Majeed Padroo, who were part of the previous government led by her father, had been dropped by the Chief Minister.
Mr Bukhari is the legislator from Amira Kadal constituency in Srinagar. He took the oath at a function in Raj Bhawan, Jammu, in the presence of Governor N.N. Vohra.
Ms Mufti and her ministerial colleagues were present during the swearing-in ceremony.
With his re-induction into the cabinet, the total strength of the council has gone up to 24.
Under the state constitution, Jammu and Kashmir can have a 25-member strong council of ministers. Mr Bukhari's portfolio is expected to be announced later on Friday.
According to the conditions of the alliance between PDP and BJP, Ms Mufti's party has a quota of 14 ministers, including the Chief Minister, while the BJP party has 11 ministerial berths.
Javid Mustafa Mir and two ministers of state, Mohammad Ashraf Mir and Abdul Majeed Padroo, who were part of the previous government led by her father, had been dropped by the Chief Minister.
Anger At Pakistan's Sufi Shrine After Bomber Kills 77
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Wailing Sufi devotees thronged a blood-stained shrine in southern Pakistan on Friday, shouting at police a day after a suicide bomber killed at least 77 people, in an attack claimed by a regional branch of the ISIS.
The bombing of the famed Lal Shahbaz Qalandar shrine in Sindh province was Pakistan's deadliest attack in two years and capped a wave of violence this week that underlined the ongoing ability of terrorist groups like the Pakistani Taliban and Islamic State to cause havoc.
An offshoot of the Middle East-based ISIS said it was responsible for the bombing, the second major attack on a Sufi shrine in three months.
The white marble floor at Lal Shahbaz Qalandar was still marked by blood on Friday, and a pile of abandoned shoes and slippers was heaped in the courtyard, many of them belonging to victims.
Outside, protesters shouted slogans at police, who they said had failed to protect the shrine.
"I wish I could have been here and died in the blast last night," a devastated Ali Hussain told Reuters, sitting on the floor of the shrine.
He said that local Sufis had asked for better security after a separate bombing this week had killed 13 people in the eastern city of Lahore, but added: "No one bothered to secure this place."
Anwer Ali, 25, rushed to the shrine after he heard the explosion, and described the ghastly sight of bodies and utter confusion as people fled the scene.
"There were threats to the shrine. The Taliban had warned that they will attack here, but authorities didn't take it seriously," Ali said.
A wave of bombings over five days has hit all four of Pakistan's provinces and two major cities, killing nearly 100 people and shaking a nascent sense that the worst of the country's militant violence may be in the past.
Most of the other attacks have been claimed by factions of the Pakistani Taliban, which is waging its own fight against the Pakistani government but whose ranks have also cooperated with and sometimes defected to the ISIS.
In the past two years, the terror outfit has worked to build its "Khorasan province", encompassing Afghanistan and Pakistan.
The ISIS media outlets have claimed several major attacks in Pakistan, including one on another shrine in southwestern Baluchistan province that killed at least 52 people last November.
The month before, the outfit said it had carried out an assault on a police training college in the same province, killing at least 59 people.
The bombing of the famed Lal Shahbaz Qalandar shrine in Sindh province was Pakistan's deadliest attack in two years and capped a wave of violence this week that underlined the ongoing ability of terrorist groups like the Pakistani Taliban and Islamic State to cause havoc.
An offshoot of the Middle East-based ISIS said it was responsible for the bombing, the second major attack on a Sufi shrine in three months.
Outside, protesters shouted slogans at police, who they said had failed to protect the shrine.
"I wish I could have been here and died in the blast last night," a devastated Ali Hussain told Reuters, sitting on the floor of the shrine.
He said that local Sufis had asked for better security after a separate bombing this week had killed 13 people in the eastern city of Lahore, but added: "No one bothered to secure this place."
Anwer Ali, 25, rushed to the shrine after he heard the explosion, and described the ghastly sight of bodies and utter confusion as people fled the scene.
"There were threats to the shrine. The Taliban had warned that they will attack here, but authorities didn't take it seriously," Ali said.
A wave of bombings over five days has hit all four of Pakistan's provinces and two major cities, killing nearly 100 people and shaking a nascent sense that the worst of the country's militant violence may be in the past.
Most of the other attacks have been claimed by factions of the Pakistani Taliban, which is waging its own fight against the Pakistani government but whose ranks have also cooperated with and sometimes defected to the ISIS.
In the past two years, the terror outfit has worked to build its "Khorasan province", encompassing Afghanistan and Pakistan.
The ISIS media outlets have claimed several major attacks in Pakistan, including one on another shrine in southwestern Baluchistan province that killed at least 52 people last November.
The month before, the outfit said it had carried out an assault on a police training college in the same province, killing at least 59 people.
Nitish Kumar's New Rule: Bihar Officials Can't Drink Anywhere In The World
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Officials of Bihar, which went dry 10 months ago, cannot drink outside the state or even abroad, in Chief Minister Nitish Kumar's new rule. The Bihar cabinet cleared an amendment in the state prohibition law earlier this week, after which bureaucrats, judges or magistrates caught drinking anywhere in the world will be punished.
They may face dismissal, suspension or even salary cuts. Service rules for officials, which banned them only from drinking on duty, have been amended.
Bihar is the first state to have such restrictions for officials and judges.
The drinking ban will also apply to Bihar officials on deputation outside the state.
Recently, the Chief Minister was asked at a public meeting whether bureaucrats can be put through alcohol tests. The man who asked the question alleged that officials were still drinking despite prohibition.
It is not clear yet how the government plans to keep tabs on officials outside the state. One report suggests that they may only act when there is a complaint.
After banning liquor completely in Bihar in April, making good on a poll promise, Nitish Kumar has called it a revolutionary step that has, in a single swipe, reduced crime, promoted communal harmony and improved the eating habits of people.
Last month, Mr Kumar and his ally Lalu Yadav joined thousands of people across Bihar in what was described as the longest a human chain ever in support of the liquor ban. Even rival BJP participated in the effort, spurred by Prime Minister Narendra Modi's praise of the ban. Officials claimed that images of the 11,000 km chain were taken by three satellites, aircraft, helicopters and drones.
They may face dismissal, suspension or even salary cuts. Service rules for officials, which banned them only from drinking on duty, have been amended.
Bihar is the first state to have such restrictions for officials and judges.
The drinking ban will also apply to Bihar officials on deputation outside the state.
It is not clear yet how the government plans to keep tabs on officials outside the state. One report suggests that they may only act when there is a complaint.
After banning liquor completely in Bihar in April, making good on a poll promise, Nitish Kumar has called it a revolutionary step that has, in a single swipe, reduced crime, promoted communal harmony and improved the eating habits of people.
Last month, Mr Kumar and his ally Lalu Yadav joined thousands of people across Bihar in what was described as the longest a human chain ever in support of the liquor ban. Even rival BJP participated in the effort, spurred by Prime Minister Narendra Modi's praise of the ban. Officials claimed that images of the 11,000 km chain were taken by three satellites, aircraft, helicopters and drones.
Business Affairs
HDFC Bank stock hits new 52-week high, pips Reliance Industries in m-cap
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The HDFC Bank stock rose up to 9 percent in Friday's trade, hitting a new 52-week high of Rs 1,450 on the BSE.
On Thursday, the Reserve bank of India removed restrictions imposed on foreign investors for buying stock of the private lender.
The aggregate foreign shareholding through ADR/GDR/FIIs/FPIs/FDI/NRIs/PIOs in HDFC Bank Ltd. have gone below the prescribed limit stipulated under the extant FDI Policy, RBI said in a notification.
"Hence the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect," RBI said.
The bank pipped Reliance Industries in terms of market capitalisation on Friday to become the second-most valued firm behind market leader Tata Consultancy Services after the cap on buying for foreign investors was lifted.
However, towards the fag end of trading, excessive buying into the stock triggered the upper limit of 74 percent for the bank's overall paid up capital. Hence, the RBI said no further purchases of the bank would be allowed through stock exchanges in India on behalf of Flls, FPIs, NRIs, PIOs.
The HDFC Bank stock pared its gains and closed 3.75 percent or 50 points higher at Rs 1,377 on the BSE.
It beat RIL in term of market capitalisation when the market closed. HDFC Bank reached market capitalisation of Rs 3.54 lakh crore against RIL's Rs 3.49 lakh crore m-cap. Both still lag market leader Tata Consultancy Services which has a market capitalisation of Rs 4.74 lakh crore.
HDFC Bank was also the topper in terms of volume of shares traded reaching 5,524,506. The value of Friday's trade rose to Rs 78.21 crore, the maximum on the BSE.
The HDFC Bank stock rose up to 9 percent in Friday's trade, hitting a new 52-week high of Rs 1,450 on the BSE.
On Thursday, the Reserve bank of India removed restrictions imposed on foreign investors for buying stock of the private lender.
The aggregate foreign shareholding through ADR/GDR/FIIs/FPIs/FDI/NRIs/PIOs in HDFC Bank Ltd. have gone below the prescribed limit stipulated under the extant FDI Policy, RBI said in a notification.
"Hence the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect," RBI said.
The bank pipped Reliance Industries in terms of market capitalisation on Friday to become the second-most valued firm behind market leader Tata Consultancy Services after the cap on buying for foreign investors was lifted.
However, towards the fag end of trading, excessive buying into the stock triggered the upper limit of 74 percent for the bank's overall paid up capital. Hence, the RBI said no further purchases of the bank would be allowed through stock exchanges in India on behalf of Flls, FPIs, NRIs, PIOs.
The HDFC Bank stock pared its gains and closed 3.75 percent or 50 points higher at Rs 1,377 on the BSE.
It beat RIL in term of market capitalisation when the market closed. HDFC Bank reached market capitalisation of Rs 3.54 lakh crore against RIL's Rs 3.49 lakh crore m-cap. Both still lag market leader Tata Consultancy Services which has a market capitalisation of Rs 4.74 lakh crore.
HDFC Bank was also the topper in terms of volume of shares traded reaching 5,524,506. The value of Friday's trade rose to Rs 78.21 crore, the maximum on the BSE.
Ambassador could get a makeover, likely to hit the Indian roads in a new avatar
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One of the first cars made in India, Ambassador could be back from oblivion, in a rejuvenated avatar. French carmaker Peugeot-Citroen (PSA Group), recently, bought the iconic brand from its six-decades old owner CK Birla-owned Hindustan Motors and now plans to re-launch it in the Indian market in a revamped version.
CK Birla Group has also entered into an agreement with the French company to roll out its cars in India, in a proposed Rs 700 crore joint venture.
The new car could be rolled out from Tamil Nadu facility (assembles Mitsubishi cars and Isuzu commercial vehicles ) of Hindustan Motors Finance Corporation Limited (HMFCL). The facility is part of the venture, PSA Group has entered as a majority stakeholder, for assembly and distribution of its passenger cars in India and for exports. PSA aims to manufacture and introduce its cars in India by 2020, and will probably have newer models and plans for the country.
There are expectations that it would introduce a hatchback in the market, as the segment generates half of the demand in the country. Birlas have sold the Ambassador brand as well as its trademarks to PSA Group, and now the French company will settle dues of employees and lenders of the erstwhile Hindustan Motors. So, now French own the brand, which originated from British Morris Oxford III. Ambassador was the quintessential car for politicians and Indian bureaucrats, before they switched over to contemporary Sx4 , Ciaz and Toyota Corolla. In its new avatar, however, the car might not have its original design and technology, and an all new car may be in the offering.
After 56 years of production, Hindustan Motors decided to stop producing the Ambassador cars in 2014, as the model failed to compete with the new generation of cars and huge stocks piled up at the plant. Hindustan Motors has made several attempts in the past few years to re-launch Ambassador on a new platform with technical changes, but all efforts were in vain.
It had, reportedly, roped in design firm Onio Design, for re-designing the car in way that its original look and iconic style was maintained. The company also failed to upgrade to stricter emission norms in the given time frame. . The last Ambassador was rolled out of Hindustan Motor's Uttarpara facility in 2014.
Re-vamping Ambassador to a new version is certainly going to be a challenge for PSA Group as it would not be easy to upgrade the car to safety norms like crash tests and airbags, which are becoming norms for new cars this year. They would also have to introduce the latest craze of new digital dashboard with Bluetooth connectivity and other gadgets in the car, if they want the new version to be as successful as the old one.
One of the first cars made in India, Ambassador could be back from oblivion, in a rejuvenated avatar. French carmaker Peugeot-Citroen (PSA Group), recently, bought the iconic brand from its six-decades old owner CK Birla-owned Hindustan Motors and now plans to re-launch it in the Indian market in a revamped version.
CK Birla Group has also entered into an agreement with the French company to roll out its cars in India, in a proposed Rs 700 crore joint venture.
The new car could be rolled out from Tamil Nadu facility (assembles Mitsubishi cars and Isuzu commercial vehicles ) of Hindustan Motors Finance Corporation Limited (HMFCL). The facility is part of the venture, PSA Group has entered as a majority stakeholder, for assembly and distribution of its passenger cars in India and for exports. PSA aims to manufacture and introduce its cars in India by 2020, and will probably have newer models and plans for the country.
There are expectations that it would introduce a hatchback in the market, as the segment generates half of the demand in the country. Birlas have sold the Ambassador brand as well as its trademarks to PSA Group, and now the French company will settle dues of employees and lenders of the erstwhile Hindustan Motors. So, now French own the brand, which originated from British Morris Oxford III. Ambassador was the quintessential car for politicians and Indian bureaucrats, before they switched over to contemporary Sx4 , Ciaz and Toyota Corolla. In its new avatar, however, the car might not have its original design and technology, and an all new car may be in the offering.
After 56 years of production, Hindustan Motors decided to stop producing the Ambassador cars in 2014, as the model failed to compete with the new generation of cars and huge stocks piled up at the plant. Hindustan Motors has made several attempts in the past few years to re-launch Ambassador on a new platform with technical changes, but all efforts were in vain.
It had, reportedly, roped in design firm Onio Design, for re-designing the car in way that its original look and iconic style was maintained. The company also failed to upgrade to stricter emission norms in the given time frame. . The last Ambassador was rolled out of Hindustan Motor's Uttarpara facility in 2014.
Re-vamping Ambassador to a new version is certainly going to be a challenge for PSA Group as it would not be easy to upgrade the car to safety norms like crash tests and airbags, which are becoming norms for new cars this year. They would also have to introduce the latest craze of new digital dashboard with Bluetooth connectivity and other gadgets in the car, if they want the new version to be as successful as the old one.
Despite fall, GDP will bounce back sharply: RBI Governor
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Reserve Bank of India (RBI) Governor Urjit Patel on Friday said India's economic growth will make a "sharp V" recovery following the recall of old Rs 500 and 1,000 currency notes.
Patel also made a strong case for continuing with globalisation even in the face of a potential shift to trade protectionism under US President Donald Trump as India has benefited from open trade.
"Almost everyone agrees that the impact is going to be a sharp 'V', that we would have a downgrade of growth for a short period of time," he told CNBC-TV18 in an interview.
"However, the remonetisation has happened at a fast pace and that was part of the plan."
RBI last week lowered the economic growth for the current fiscal to 6.9 per cent from the previously projected 7.1 per cent, but saw it bouncing back in a big way to 7.4 per cent in 2017-18.
He said the benefit of junking 86 per cent of currency in circulation will take time to fully play out and needs more work to ensure they are lasting.
Asked when India could achieve 9 per cent GDP growth, he said it is difficult to predict sustainable growth rates.
Higher growth rate is possible if very fundamental reforms, especially in factors of production like land and labour, are undertaken, the RBI Governor said.
"Now, how much higher than 7.5 that we are achieving so far is difficult to say. But the fact is, we need to grow at some point faster than we are now," he said. "I think 7.5 per cent growth rate is not something to be disappointed about."
The six-member Monetary Policy Committee (MPC) headed by Patel had last week kept interest rates unchanged at 6.25 per cent for the second straight meeting and changed policy stance to 'neutral' from 'accommodative'.
The change in stance, he said, gives more flexibility to cut, raise or hold rates as compared with an accommodative one on inflation outlook.
"The best way that the central bank can support growth on a durable basis is to ensure inflation is low, stable, there is financial stability and that is the role the central bank plays. Very few countries grow at a high rate if inflation is high and volatile. So, I think we are doing our bit to support higher growth rate, but on a durable basis," he said.
The RBI Governor expressed concern over the US moving towards protectionism under Trump.
"I think it is a cause of concern for the world, I think it is a cause of concern for the emerging markets in terms of creating financial volatility. I don't think anyone will be safeguarded from it. We have to manage this as it plays out," he said.
To face the changing world order, there are certain things in India's control like following sound macroeconomic stability rules, Patel said, adding that "I think we are at a good place with respect to that".
"We had a budget where fiscal deficit has been reduced, we have a central bank which has a mandate for flexible inflation targeting. We have reserves which are at over 360 billion dollars and we have a current account deficit (CAD) that continues to be modest. So, we need to look after these attributes of macro economic stability and that will allow us to withstand some of these sources of turbulence that may come from a wider world," he said.
On protectionism under the Trump administration, he felt that India has sustained opening up of its economy since 1990s. "And I don't think that we should change our stance in any way because we do benefit from an open trade regime. I think India's policy that openness of trade should be carried through a multilateral process is the right one," the RBI chief maintained.
He added that there is likelihood of reaction from other economies to what the US does and "it could get messy."
"Hopefully, wiser heads will prevail and we won't go down that road, but I think it is important that we should be on the side of keeping borders open with respect to trade and factors of production (land and labour)," the Governor suggested.
Expressing concern about a potential shift to trade protectionism under Trump, he said, "We are at an important juncture and the possibility of negative consequences for countries around the world are a possibility."
"Asia may come in for special treatment because almost two-thirds of the US trade deficit in goods are with respect to Asia. We just have to see how things evolve in terms of tangible policy changes which the US government so far seems to be fairly determined to carry through," he said.
Also, hardening of some global commodity prices and "lack of a consistent policy enunciation from major economies is the main source of volatility".
"I think hardening of some of the internationally traded commodities is something that we need to be worried about because it feeds into inflation," he said.
Most analysts, he said, expect the world to grow faster in 2017 then in 2016, which is good news.
"The change in policies from the largest economy in the world, US, is something that the world will have to start getting used to because it is a major change in terms of openness to trade, in terms of trade barriers, in terms of the kind of fiscal policy that the new government may undertake which against a backdrop of tightening monetary policy stance by the US Fed has a real possibility of financial volatility, going forward," Patel said.
He hoped that uncertainties may get resolved once policies are actually implemented.
On fallout of US Fed interest rate hike, Patel said the US Fed had indicated in December that there would be two, possibly three hikes in 2017.
"So, that is already priced in and given that financial markets are forward looking from that source alone and I would expect, I would underline the word expect, that the repercussions may not be that much as compared to when Fed increased the interest rate in December and issued a hawkish statement. I think that was the news. I think subsequent to that, the Fed views on what it is going to do in 2017 have been fairly consistent," he said.
Reserve Bank of India (RBI) Governor Urjit Patel on Friday said India's economic growth will make a "sharp V" recovery following the recall of old Rs 500 and 1,000 currency notes.
Patel also made a strong case for continuing with globalisation even in the face of a potential shift to trade protectionism under US President Donald Trump as India has benefited from open trade.
"Almost everyone agrees that the impact is going to be a sharp 'V', that we would have a downgrade of growth for a short period of time," he told CNBC-TV18 in an interview.
"However, the remonetisation has happened at a fast pace and that was part of the plan."
RBI last week lowered the economic growth for the current fiscal to 6.9 per cent from the previously projected 7.1 per cent, but saw it bouncing back in a big way to 7.4 per cent in 2017-18.
He said the benefit of junking 86 per cent of currency in circulation will take time to fully play out and needs more work to ensure they are lasting.
Asked when India could achieve 9 per cent GDP growth, he said it is difficult to predict sustainable growth rates.
Higher growth rate is possible if very fundamental reforms, especially in factors of production like land and labour, are undertaken, the RBI Governor said.
"Now, how much higher than 7.5 that we are achieving so far is difficult to say. But the fact is, we need to grow at some point faster than we are now," he said. "I think 7.5 per cent growth rate is not something to be disappointed about."
The six-member Monetary Policy Committee (MPC) headed by Patel had last week kept interest rates unchanged at 6.25 per cent for the second straight meeting and changed policy stance to 'neutral' from 'accommodative'.
The change in stance, he said, gives more flexibility to cut, raise or hold rates as compared with an accommodative one on inflation outlook.
"The best way that the central bank can support growth on a durable basis is to ensure inflation is low, stable, there is financial stability and that is the role the central bank plays. Very few countries grow at a high rate if inflation is high and volatile. So, I think we are doing our bit to support higher growth rate, but on a durable basis," he said.
The RBI Governor expressed concern over the US moving towards protectionism under Trump.
"I think it is a cause of concern for the world, I think it is a cause of concern for the emerging markets in terms of creating financial volatility. I don't think anyone will be safeguarded from it. We have to manage this as it plays out," he said.
To face the changing world order, there are certain things in India's control like following sound macroeconomic stability rules, Patel said, adding that "I think we are at a good place with respect to that".
"We had a budget where fiscal deficit has been reduced, we have a central bank which has a mandate for flexible inflation targeting. We have reserves which are at over 360 billion dollars and we have a current account deficit (CAD) that continues to be modest. So, we need to look after these attributes of macro economic stability and that will allow us to withstand some of these sources of turbulence that may come from a wider world," he said.
On protectionism under the Trump administration, he felt that India has sustained opening up of its economy since 1990s. "And I don't think that we should change our stance in any way because we do benefit from an open trade regime. I think India's policy that openness of trade should be carried through a multilateral process is the right one," the RBI chief maintained.
He added that there is likelihood of reaction from other economies to what the US does and "it could get messy."
"Hopefully, wiser heads will prevail and we won't go down that road, but I think it is important that we should be on the side of keeping borders open with respect to trade and factors of production (land and labour)," the Governor suggested.
Expressing concern about a potential shift to trade protectionism under Trump, he said, "We are at an important juncture and the possibility of negative consequences for countries around the world are a possibility."
"Asia may come in for special treatment because almost two-thirds of the US trade deficit in goods are with respect to Asia. We just have to see how things evolve in terms of tangible policy changes which the US government so far seems to be fairly determined to carry through," he said.
Also, hardening of some global commodity prices and "lack of a consistent policy enunciation from major economies is the main source of volatility".
"I think hardening of some of the internationally traded commodities is something that we need to be worried about because it feeds into inflation," he said.
Most analysts, he said, expect the world to grow faster in 2017 then in 2016, which is good news.
"The change in policies from the largest economy in the world, US, is something that the world will have to start getting used to because it is a major change in terms of openness to trade, in terms of trade barriers, in terms of the kind of fiscal policy that the new government may undertake which against a backdrop of tightening monetary policy stance by the US Fed has a real possibility of financial volatility, going forward," Patel said.
He hoped that uncertainties may get resolved once policies are actually implemented.
On fallout of US Fed interest rate hike, Patel said the US Fed had indicated in December that there would be two, possibly three hikes in 2017.
"So, that is already priced in and given that financial markets are forward looking from that source alone and I would expect, I would underline the word expect, that the repercussions may not be that much as compared to when Fed increased the interest rate in December and issued a hawkish statement. I think that was the news. I think subsequent to that, the Fed views on what it is going to do in 2017 have been fairly consistent," he said.
GST Council to finalise draft model GST law tomorrow
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The GST Council, which is meeting tomorrow, is likely to finalise the draft model GST law including final drafting of the anti-profiteering clause to ensure benefit of lower taxes gets shared with consumers.
The Council, headed by Finance Minister Arun Jaitley and comprising representatives of all states, is also likely to finalise the definition of 'agriculture' and 'agriculturist' as well as constitution of a 'National Goods and Services Tax Appellate Tribunal' to adjudicate disputes.
The Law Ministry has sent the approved language and draft of the model GST Law, which outlines how the new national sales tax will be levied on goods and services.
The law ministry-approved draft and the language have been discussed today by the Council's sub-committee comprising central and state officials. The vetted draft will then be put up before the Council at its 10th meeting scheduled to be held in Udaipur tomorrow.
The government intends to introduce the model GST law in Parliament in the second half of the current Budget Session beginning next month, officials said.
The government is keen to roll out the new regime from July 1 but for that, it will have to get two laws - the Central GST (CGST) Act and Integrated GST (IGST) Act -- approved by Parliament and each of the state legislatives have to pass the State GST (SGST) Act.
The model GST law provides a common draft of CGST Act, SGST Act. Besides, there is an IGST law and Compensation law.
Officials said that the government is keen to pass benefit of lower taxes to consumers and so an anti-profiteering measure has been incorporated in the draft law.
It provides for constituting an authority to examine whether input tax credits availed by any registered taxable person, or the reduction in the price on account of any reduction in the tax rate, have actually resulted in a commensurate reduction in the price of the said goods and/or services supplied by him.
For example, a good or service is to be levied with a GST of 5 per cent. But in course of supply, a 20 per cent tax is paid, whose input credit is taken. So, the final consumer will be levied only 5 per cent tax and not 25 per cent, as the input credit of 20 per cent is already taken, an official explained.
"This has to be declared at the time of filing returns by the taxpayer," the official said.
The taxable event under GST is supply of goods and services. The place of supply of goods is the place where the goods are delivered, except in few cases.
The GST Council, which is meeting tomorrow, is likely to finalise the draft model GST law including final drafting of the anti-profiteering clause to ensure benefit of lower taxes gets shared with consumers.
The Council, headed by Finance Minister Arun Jaitley and comprising representatives of all states, is also likely to finalise the definition of 'agriculture' and 'agriculturist' as well as constitution of a 'National Goods and Services Tax Appellate Tribunal' to adjudicate disputes.
The Law Ministry has sent the approved language and draft of the model GST Law, which outlines how the new national sales tax will be levied on goods and services.
The law ministry-approved draft and the language have been discussed today by the Council's sub-committee comprising central and state officials. The vetted draft will then be put up before the Council at its 10th meeting scheduled to be held in Udaipur tomorrow.
The government intends to introduce the model GST law in Parliament in the second half of the current Budget Session beginning next month, officials said.
The government is keen to roll out the new regime from July 1 but for that, it will have to get two laws - the Central GST (CGST) Act and Integrated GST (IGST) Act -- approved by Parliament and each of the state legislatives have to pass the State GST (SGST) Act.
The model GST law provides a common draft of CGST Act, SGST Act. Besides, there is an IGST law and Compensation law.
Officials said that the government is keen to pass benefit of lower taxes to consumers and so an anti-profiteering measure has been incorporated in the draft law.
It provides for constituting an authority to examine whether input tax credits availed by any registered taxable person, or the reduction in the price on account of any reduction in the tax rate, have actually resulted in a commensurate reduction in the price of the said goods and/or services supplied by him.
For example, a good or service is to be levied with a GST of 5 per cent. But in course of supply, a 20 per cent tax is paid, whose input credit is taken. So, the final consumer will be levied only 5 per cent tax and not 25 per cent, as the input credit of 20 per cent is already taken, an official explained.
"This has to be declared at the time of filing returns by the taxpayer," the official said.
The taxable event under GST is supply of goods and services. The place of supply of goods is the place where the goods are delivered, except in few cases.
Sensex rises to five-month high, Nifty reclaims 8,800-mark
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The benchmark Sensex pared its early surge, though settled near five month highs following buying in key index heavyweights of Banks and Financials propelling the market, while Nifty held above 8,800-level.
The market opened gap-up despite weak trend in other Asian markets following buying spree in key private financials after FII limit for its largest constituent has been opened by the RBI taking index to zoom nearly 424.73 points in early trade.
HealthCare, Financials, Oil and Gas, Banking, Energy and Consumer Durabled lifted the market only to capped by profit- booking in IT, Teck, Metal, Telecom and Auto segments.
While, broader midcap and smallcap companies shares also fetched moderate gains.
HDFC banks shares which jumped as much as 9.5 per cent record high early morning only to washed-out as Central Bank again put back in the FII ban list for crossing overall limit of 74 per cent.
Healthcare stocks gained sharply, with shares of Sun Pharma bounced back rising over 4 per cent, on value buying and its subsidiary receiving approval for Tobramycin from the European Medicines Agency.
However, shares of Idea Cellular and BHEL fell by upto 6 per cent today after announcement of removal from National Stock Exchange's Nifty 50 index from March 31.
While, their replacement of India bull-housing finance and Indian Oil Corporation gained 2.70 per cent and 2.20 per cent respectively.
The 30-share Sensex, after opening gap-up at 28,670.43 moved between high of 28,726.26 and low of 28,410.91 before closing at 28,468.75. showing a gain of 167.48 points or 0.59 per cent. (The Sensex last closed at 28,668.22 on September 23,2016).
The gauge had gained 145.71 points yesterday.
The 50-share NSE Nifty gained 43.70 points or 0.50 per cent to 8,821.70, it shuttled between 8,896.45 and 8,804.25.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 215.69 crore yesterday, as per provisional data released by the stock exchanges.
Overseas, Asian markets declined following a pullback overnight in two major US stock indexes from record levels.
Wall Street stocks finished mixed yesterday.
Shanghai Composite Index lost 0.85 per cent, Japan's Nikkei fell 0.58 per cent, Hong Kong's Hang Seng by 0.31 per cent and SC South Korea by 0.06 per cent.
European markets were lower in afternoon trade, Paris CAC 40 shed 0.64 per cent, Frankfurt by 0.28 per cent, London's FTSE fell 0.25 per cent,
BSE mid-cap and small-cap indices ended 0.53 per cent and 0.40 per cent higher, respectively.
Out of the 30-share Sensex pack, 15 scrips ended higher.
Major gainers were Sun Pharma (4.03 per cent), HDFC Bank (3.75 per cent), Cipla (1.58 per cent), Tata Motors (1.53 per cent), ICICI Bank (1.52 per cent), Gail (1.41 per cent), Lupin (1.23 per cent) and Reliance (0.98 per cent).
However, TCS fell by 1.58 per cent, Hero MotoCorp 1.29 per cent, Infosys 1.21 per cent, Wipro 1.10 per cent, Asian Paints 0.91 per cent and Maruti 0.63 per cent.
Among BSE sectoral indices, healthcare rose by 1.64 per cent, oil&gas 1.38 per cent, finance 1.24 per cent, bankex 1.21 per cent, energy 1.07 per cent, consumer durables 0.45 per cent, utilities 0.44 per cent and industrials 0.42 per cent.
However, IT fell by 1.02 per cent, followed by teck (0.86 per cent), metal (0.68 per cent), telecom (0.30 per cent) and auto (0.06 per cent).
The market breadth remained positive as 1,424 shares ended higher, 1,388 closed lower while 206 ruled steady.
The total turnover on BSE amounted to Rs 3,742.33 crore, higher than Rs 2,618.23 crore registered during the previous trading session.
The benchmark Sensex pared its early surge, though settled near five month highs following buying in key index heavyweights of Banks and Financials propelling the market, while Nifty held above 8,800-level.
The market opened gap-up despite weak trend in other Asian markets following buying spree in key private financials after FII limit for its largest constituent has been opened by the RBI taking index to zoom nearly 424.73 points in early trade.
HealthCare, Financials, Oil and Gas, Banking, Energy and Consumer Durabled lifted the market only to capped by profit- booking in IT, Teck, Metal, Telecom and Auto segments.
While, broader midcap and smallcap companies shares also fetched moderate gains.
HDFC banks shares which jumped as much as 9.5 per cent record high early morning only to washed-out as Central Bank again put back in the FII ban list for crossing overall limit of 74 per cent.
Healthcare stocks gained sharply, with shares of Sun Pharma bounced back rising over 4 per cent, on value buying and its subsidiary receiving approval for Tobramycin from the European Medicines Agency.
However, shares of Idea Cellular and BHEL fell by upto 6 per cent today after announcement of removal from National Stock Exchange's Nifty 50 index from March 31.
While, their replacement of India bull-housing finance and Indian Oil Corporation gained 2.70 per cent and 2.20 per cent respectively.
The 30-share Sensex, after opening gap-up at 28,670.43 moved between high of 28,726.26 and low of 28,410.91 before closing at 28,468.75. showing a gain of 167.48 points or 0.59 per cent. (The Sensex last closed at 28,668.22 on September 23,2016).
The gauge had gained 145.71 points yesterday.
The 50-share NSE Nifty gained 43.70 points or 0.50 per cent to 8,821.70, it shuttled between 8,896.45 and 8,804.25.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 215.69 crore yesterday, as per provisional data released by the stock exchanges.
Overseas, Asian markets declined following a pullback overnight in two major US stock indexes from record levels.
Wall Street stocks finished mixed yesterday.
Shanghai Composite Index lost 0.85 per cent, Japan's Nikkei fell 0.58 per cent, Hong Kong's Hang Seng by 0.31 per cent and SC South Korea by 0.06 per cent.
European markets were lower in afternoon trade, Paris CAC 40 shed 0.64 per cent, Frankfurt by 0.28 per cent, London's FTSE fell 0.25 per cent,
BSE mid-cap and small-cap indices ended 0.53 per cent and 0.40 per cent higher, respectively.
BSE mid-cap and small-cap indices ended 0.53 per cent and 0.40 per cent higher, respectively.
Out of the 30-share Sensex pack, 15 scrips ended higher.
Major gainers were Sun Pharma (4.03 per cent), HDFC Bank (3.75 per cent), Cipla (1.58 per cent), Tata Motors (1.53 per cent), ICICI Bank (1.52 per cent), Gail (1.41 per cent), Lupin (1.23 per cent) and Reliance (0.98 per cent).
However, TCS fell by 1.58 per cent, Hero MotoCorp 1.29 per cent, Infosys 1.21 per cent, Wipro 1.10 per cent, Asian Paints 0.91 per cent and Maruti 0.63 per cent.
Among BSE sectoral indices, healthcare rose by 1.64 per cent, oil&gas 1.38 per cent, finance 1.24 per cent, bankex 1.21 per cent, energy 1.07 per cent, consumer durables 0.45 per cent, utilities 0.44 per cent and industrials 0.42 per cent.
However, IT fell by 1.02 per cent, followed by teck (0.86 per cent), metal (0.68 per cent), telecom (0.30 per cent) and auto (0.06 per cent).
The market breadth remained positive as 1,424 shares ended higher, 1,388 closed lower while 206 ruled steady.
The total turnover on BSE amounted to Rs 3,742.33 crore, higher than Rs 2,618.23 crore registered during the previous trading session.
General Awareness
India Ranked 143 in the 2017 Index of Economic Freedom Index
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India has been ranked 143 out of 186 economies in the annual Index of Economic Freedom 2017 released by top US based Think Tank, The Heritage Foundation.The Index measures the degree of economic freedom in the countries of the world.
- Hong Kong, Singapore and New Zealand are the top three nations in the Index respectively.
- The 2017 Index is the 23rd edition of the index.
Key highlights of the 2017 Index of Economic Freedom
As per the Washington’s No. 1 think tank, out of 186 economies India has been ranked at 143rd position with an overall score of 52.6 points, which is 3.6 points less than compared to 2016 when India ranked 123rd.
- India has been placed in the category of “Mostly Unfree” Economies in which the points ranges from 50.0-59.9.
- Among South Asian countries, only Afghanistan (163) and Maldives (157) were ranked below India. Nepal (125), Sri Lanka (112), Pakistan (141), Bhutan (107), and Bangladesh (128) surpassed India in economic freedom.
- China with a score of 57.4 points was placed at 111th position which is 5.4 points above the last year. United States has been ranked 17 with a score of 75.1 points.
- This year, forty-nine countries, the majority of which are developing countries but also including countries such as Norway and Sweden has achieved their highest-ever index scores.
- The overall world average score is 60.9 which is the highest recorded score in the 23-year history of the index.
India in the Index
The report has said that the bad performance of India is due to its uneven progress in the market oriented reforms.
- Though India has seen an average annual growth of about 7 percent over the last 5 years, but still the growth is not seen in the policies framed to preserve the economic freedom.
- The report stated that India has made significant presence in many areas through public-sector enterprises but in terms of private sector, it has a restrictive and burdensome regulatory environment that discourages the entrepreneurship which could otherwise have provided a broader private-sector growth.
- It said that though India has one of the most advanced technology and manufacturing sectors than any other in the world, it also has a less developed traditional sector that do not provide necessary freedom to the sector for growth.
- India is characterized by both, extreme wealth as well as too much poverty. The co-existence of the two different nature of the economy on the one hand leads India towards modernization, while on the other hand struggles to find path for inclusive development for its large and diverse population.
- India has a significant position in the global trade but the existence of corruption, underdeveloped infrastructure, and poor management of public finance weaken the overall development.
- However, the index has also praised the efforts of Indian Prime Minister Shri Narendra Modi for giving a new energy and strength to the Indian Foreign Policy. It said that Modi, who in June 2016 made his fourth visit to the US in two years, has strengthened bilateral ties particularly in defence cooperation.
About the Index of Economic Freedom
The Index of Economic Freedom is an annual index and ranking created by The Heritage Foundation and The Wall Street Journal in 1995 to measure the degree of economic freedom in the world’s nations.
- The index scores the 186 nations on ten factors of economic freedom, separated into four categories, using statistics from organizations like the World Bank, the International Monetary Fund, Economist Intelligence Unit and Transparency International.
- In each factor, countries are scored 0 to 100, with 0 being the least free and 100 the most free. A score of 100 signifies an economic environment or set of policies that is most conducive to economic freedom.
- Each nation is grouped in 5 different categories based upon the degree of economic freedom. These five categories includes, Free (80–100), Mostly Free (70.0–79.9), Moderately Free (60.0–69.9), Mostly Unfree (50.0–59.9) and Repressed (0–49.9).
India has been ranked 143 out of 186 economies in the annual Index of Economic Freedom 2017 released by top US based Think Tank, The Heritage Foundation.The Index measures the degree of economic freedom in the countries of the world.
- Hong Kong, Singapore and New Zealand are the top three nations in the Index respectively.
- The 2017 Index is the 23rd edition of the index.
Key highlights of the 2017 Index of Economic Freedom
As per the Washington’s No. 1 think tank, out of 186 economies India has been ranked at 143rd position with an overall score of 52.6 points, which is 3.6 points less than compared to 2016 when India ranked 123rd.
- India has been placed in the category of “Mostly Unfree” Economies in which the points ranges from 50.0-59.9.
- Among South Asian countries, only Afghanistan (163) and Maldives (157) were ranked below India. Nepal (125), Sri Lanka (112), Pakistan (141), Bhutan (107), and Bangladesh (128) surpassed India in economic freedom.
- China with a score of 57.4 points was placed at 111th position which is 5.4 points above the last year. United States has been ranked 17 with a score of 75.1 points.
- This year, forty-nine countries, the majority of which are developing countries but also including countries such as Norway and Sweden has achieved their highest-ever index scores.
- The overall world average score is 60.9 which is the highest recorded score in the 23-year history of the index.
India in the Index
The report has said that the bad performance of India is due to its uneven progress in the market oriented reforms.
- Though India has seen an average annual growth of about 7 percent over the last 5 years, but still the growth is not seen in the policies framed to preserve the economic freedom.
- The report stated that India has made significant presence in many areas through public-sector enterprises but in terms of private sector, it has a restrictive and burdensome regulatory environment that discourages the entrepreneurship which could otherwise have provided a broader private-sector growth.
- It said that though India has one of the most advanced technology and manufacturing sectors than any other in the world, it also has a less developed traditional sector that do not provide necessary freedom to the sector for growth.
- India is characterized by both, extreme wealth as well as too much poverty. The co-existence of the two different nature of the economy on the one hand leads India towards modernization, while on the other hand struggles to find path for inclusive development for its large and diverse population.
- India has a significant position in the global trade but the existence of corruption, underdeveloped infrastructure, and poor management of public finance weaken the overall development.
- However, the index has also praised the efforts of Indian Prime Minister Shri Narendra Modi for giving a new energy and strength to the Indian Foreign Policy. It said that Modi, who in June 2016 made his fourth visit to the US in two years, has strengthened bilateral ties particularly in defence cooperation.
About the Index of Economic Freedom
The Index of Economic Freedom is an annual index and ranking created by The Heritage Foundation and The Wall Street Journal in 1995 to measure the degree of economic freedom in the world’s nations.
- The index scores the 186 nations on ten factors of economic freedom, separated into four categories, using statistics from organizations like the World Bank, the International Monetary Fund, Economist Intelligence Unit and Transparency International.
- In each factor, countries are scored 0 to 100, with 0 being the least free and 100 the most free. A score of 100 signifies an economic environment or set of policies that is most conducive to economic freedom.
- Each nation is grouped in 5 different categories based upon the degree of economic freedom. These five categories includes, Free (80–100), Mostly Free (70.0–79.9), Moderately Free (60.0–69.9), Mostly Unfree (50.0–59.9) and Repressed (0–49.9).
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