Indian Economy News & Discussion - Aug 26 2015

Gyan · Post by **Gyan** » 09 Sep 2016 16:17

I think after Rajiv Gandhi, no Indian PM has systematically tried to absorb high tech manufacturing in India. He made efforts in Telecom ie CDOT, Fertilizer through L&T, LCA, ALH, Dornier, Arjun, Bofors, HDW, TATRA. He was following China model which China continued but we gave up for cheap imports and service sector economy.

Pls comment without raising corruption issues.

svinayak · Post by **svinayak** » 10 Sep 2016 22:21

Gyan wrote:I think after Rajiv Gandhi, no Indian PM has systematically tried to absorb high tech manufacturing in India. He made efforts in Telecom ie CDOT, Fertilizer through L&T, LCA, ALH, Dornier, Arjun, Bofors, HDW, TATRA. He was following China model which China continued but we gave up for cheap imports and service sector economy.

Pls comment without raising corruption issues.

This is not a match here. Indian military was being upgraded with new tech in the 80s and 90s and needed technology inputs.

Indian automobile industry was stunted when Maruthi was chosen over TATA moters. TATA applied for a JV with Honda in early 80s and was rejected. By now Indian made world class cars would be everywhere in the world.

nandakumar · Post by **nandakumar** » 11 Sep 2016 11:38

Well Moolgaocar the Chairman and MD of Telco (erstwhile name of Tata Motors), was also the Chairman of Matuti Udyog after it was nationalised following Sanjay Gandhi's death. He did so at the invitation of Indira Gandhi. The catch however was that he thought Maruti should make trucks (with Telco driving it) but emotionally Indira Gandhi was committed to Maruti making cars. Following the Board meeting of Maruti where Govt nominees voted to invite foreign car makers for JV proposals Moolgaocar resigned from the Board of Maruti and IG's trusted lieutinent V Krishnamurthy took over as Chairman. Domestic capability in auto manufacturing might have taken a South Korean route had Moolgaocar chosen to go with Indira Gandhi. There was no way Tatas would have allowed a Japanese majority stake in Maruti had Tatas had a foot in the door back then.

ragupta · Post by **ragupta** » 11 Sep 2016 17:12

India Soars high.
https://www.kpmg.com/IN/en/issuesAndins ... s-high.pdf

deejay · Post by **deejay** » 11 Sep 2016 18:46

nandakumar wrote:Well Moolgaocar the Chairman and MD of Telco (erstwhile name of Tata Motors), was also the Chairman of Matuti Udyog after it was nationalised following Sanjay Gandhi's death. He did so at the invitation of Indira Gandhi. The catch however was that he thought Maruti should make trucks (with Telco driving it) but emotionally Indira Gandhi was committed to Maruti making cars. Following the Board meeting of Maruti where Govt nominees voted to invite foreign car makers for JV proposals Moolgaocar resigned from the Board of Maruti and IG's trusted lieutinent V Krishnamurthy took over as Chairman. Domestic capability in auto manufacturing might have taken a South Korean route had Moolgaocar chosen to go with Indira Gandhi. There was no way Tatas would have allowed a Japanese majority stake in Maruti had Tatas had a foot in the door back then.

Sumant Moolgaonkar had a very nice and excellent working relationship with Hitachi, Japan. The relationship between the Japanese and Tatas continue till today and a lot of Japanese influence can be seen at Jamshedpur.

Gus · Post by **Gus** » 11 Sep 2016 19:44

Hitachi was partner for heavy construction vehicles (like JCB types) and it was called telcon back then. Not sure what is the state of it now.

deejay · Post by **deejay** » 11 Sep 2016 19:52

Gus wrote:Hitachi was partner for heavy construction vehicles (like JCB types) and it was called telcon back then. Not sure what is the state of it now.

Yes, in the Excavator Division of Telco with tie ups for excavators. It was Telco back then. Hitachi was also consulted for management practices and Japanese terms were the new rage in town then. Hitachi instituted scholarship programme for all schools run by Telco which I think still runs today.

nandakumar · Post by **nandakumar** » 11 Sep 2016 21:43

It was another one of those personality clashes between two second rung managers below Moolgaocar at Telco. Telco had a earth moving division (excavators). They had a collaboration with P&H (Pawling and Harnischfager) of the US. But those excavators were mechanical devices (rope and pulley devices). The world was moving towards hydraulic devices. The choice was between developing in house or go for foreign collaboration. The commercial guy said we should go for Hitachi collaboration. But the other guy who also had Moolgaocar's ears said we could develop in house. Now this was the 80s when foreign collaboration was not easy. So Moolgaocar took the decision that it will be developed in house. Telco did develop an hydraulic excavator. But here about L&T decided to sign up with the French company Poclain. They cleaned up the excavator market. Moolgaocar died and Ratan Tata took over Telco as well. Ratan Tata decided that the company will go for Hitachi. Did the delay hurt Telco? Perhaps it did. Was the hydraulic excavator developed in house good enough? We would never know. These are the kind of ifs and buts about make in India.

deejay · Post by **deejay** » 11 Sep 2016 22:36

^^^ I think the commercial person was Ghandi something. The excavator deal was done while JRD was still there. Hitachi was definitely a part of Telco before 87 because I remember getting the scholarship.

nandakumar · Post by **nandakumar** » 12 Sep 2016 11:08

They had also inked a JV for manufacture of 15,000 cars around 1984. The talk then was to bring the Accord into the Indian market. This was about the time Hindustan Motors had imported the dies for the Vauxhall model and rebranded it as Contessa! The customs duty structure for vehicle aggregates and components was heavily tilted in favour of small cars in those days. It wasn't thought to be viable at those duty rates. It was hoped that Tatas would eventually succeed in getting the Govt to bring sown customs duty rates. But the couldn't. Maruti exercised a stranglehold on the Govt's auto policy in those days. The fact that the Govt still owned majority stake in the company didn't hurt its cause. The proposal was eventually dropped. Then liberalisation happened in 91. In time, Honda teamed up with DCM Shriram Group in the late 90s for manufacture of cars. The rest is history.

Mollick.R · Post by **Mollick.R** » 12 Sep 2016 20:20

http://economictimes.indiatimes.com/new ... 287274.cms

The Cabinet today cleared the process, formation and functioning of the GST Council, which will decide on the rate of tax under the new indirect taxation regime.

The government has notified September 12, as the date from which the procedure for setting up of the GST Council will be initiated and which will be completed within 60 days.
..........
The Cabinet also decided on the constitution of the GST Secretariat and the officers who will implement the decisions of the Council

Mollick.R · Post by **Mollick.R** » 12 Sep 2016 20:37

One big catch in GST issue is points being raised by Subramanian Swamy. It seems he does have few valid points.

http://economictimes.indiatimes.com/new ... 254819.cms

The government of India holds 24.5 per cent stake in GSTN while states together hold another 24.5 per cent.
The balance 51 equity is held by private financial institutions -- ICICI, HDFC Bank,HDFC Ltd, LIC Housing Finance
and National Stock Exchange Strategic Investment Corporation.

Earlier this week, while releasing a book, Swamy had said it may not be possible to implement GST
unless private companies are replaced by state-owned firms in the GSTN, the backbone for putting in place the new
indirect tax regime.

"It (GSTN) will not be able to pass the Home Ministry security clearance until the Rajya Sabha Select Committee's
unanimous recommendation is implemented and HDFC Bank, NSE, LIC Housing Finance and ICICI Bank are all removed and replaced by (public sector banks) because tax data is sensitive. It is confidential. We cannot allow foreigners the right to get this data," [/color] Swamy had said.

Mollick.R · Post by **Mollick.R** » 12 Sep 2016 20:47

http://economictimes.indiatimes.com/new ... 293306.cms

National Payments Corporation of India (NPCI) today said it has broadened its shareholding base to 56 banks from 10 earlier.

The 46 new entities comprising 13 public, 15 private, 1 foreign, 10 multistate co-operative banks and 7 RRBs have now joined the shareholding base, NPCI said in a statement.

The addition of new banks has increased NPCI's paid up capital to Rs 133 crore from Rs 100 crore,

Earlier, six public sector banks were holding 60 per cent stake in the corporation while private and foreign banks held
the rest.
With this round of broad-basing of shareholders, state-run banks and regional rural banks (RRBs) now hold 57 per cent.

Holding of private, foreign and co-operative banks stands at 43 per cent.

Mollick.R · Post by **Mollick.R** » 12 Sep 2016 20:50

Another Interesting Development Related with NPCI

http://economictimes.indiatimes.com/new ... 049509.cms

"We have already taken the first step for filing of a patent in India and we will have to wait and see if this kind of a platform is the first of its kind globally, it is a very long drawn process," said Dilip Asbe, chief operating officer,

Mollick.R · Post by **Mollick.R** » 12 Sep 2016 22:40

Deleted

Mollick.R · Post by **Mollick.R** » 14 Sep 2016 20:12

http://economictimes.indiatimes.com/new ... ?prtpage=1

India is likely to post its first current account surplus in nine years in the latest quarter.....

Forecasts given by investment houses' research notes and from analysts that Reuters spoke to showed expectations centering on a surplus of $4 billion, or 0.8 per cent of GDP, in April-June quarter.

That compared with a deficit of $6.2 billion, equivalent to 1.2 per cent of GDP, in the same quarter a year ago. And, if the forecasts prove correct it will be the first surplus since January-March 2007, though India is unlikely to keep the surpluses coming.

For the full year ending in March 2017, India is likely to post a deficit even lower than last year's 1.1 per cent of GDP, as foreign investment inflows remain steady - and that should be broadly supportive for the rupee.

Kakkaji · Post by **Kakkaji** » 14 Sep 2016 22:22

Another success story:

Prices of LED bulbs drop to Rs 38

NEW DELHI: Prices of LED bulbs being distributed by state-run Energy Efficient Services Ltd (EESL) under a government programme have fallen to one-tenth of their rates two years ago.

Production of LED lamps in the country has increased to about four crore per month from 10 lakh two years ago. LED bulbs consume 80% less energy than incandescentBSE 0.00 % bulbs and almost half of that used by CFLs.

Prime Minister Narendra Modi had in his Independence Day speech said the government was distributing LED bulbs for Rs 50 a piece against the earlier price of Rs 350.

The government expects to save 85 lakh Kwh electricity consumption every day or 15,000 onne of CO2 by replacing 77 crore conventional bulbs and CFLs with the LEDs and 3.5 crore street lights over three years.

Suraj · Post by **Suraj** » 21 Sep 2016 01:01

Making up for lack of economic news postings:
External debt grows 2% in March; short-term debt falls

India's external debt stood at $485.6 billion as of March 2016, up 2.2 per cent year-on-year due to a rise in long-term debt, particularly non-resident Indian (NRI) deposits.

However short-term external debt declined 2.5 per cent, mainly on the back of trade credits, implying less risks from these borrowings. Short-term external debt was $83.4 billion at end-March 2016, from $84.7 billion a year ago. The share of short-term external debt in external debt declined from 18.0 per cent as of March 2015 to 17.2 per cent as of March 2016. At March-end 2016, long-term external debt was $402.2 billion, up 3.3 per cent over the year-ago period. Long-term external debt accounted for 82.8 per cent of total external debt in the period against 82 per cent at end-March 2015, according to the 22nd issue of the annual India's External Debt: A Status Report 2015-16.

FinMin seeks early GDP estimates, MoSPI says no

The finance ministry, which is gearing up to advance the Budget presentation date by a month, has asked the Ministry of Statistics and Programme Implementation (MoSPI) to release the advance estimates of gross domestic product (GDP) for 2016-17 in the first week of January.

However, MoSPI officials are learnt to have told their finance ministry counterparts that they can share some data informally, but the advance estimates will only be released in early-February as usual.

This could lead to a situation where crucial data is released after the Budget.

It is on the basis of advance estimates that the Budget assumes GDP for the next financial year and calculates various ratios, including fiscal deficit.

Cabinet to consider Budget presentation on Feb 1

Breaking from tradition, the general budget of the union government is likely to be presented on February 1 instead of the last day of the month, as part of an overhaul that would also scrap the practice of a separate railway budget.

The proposal for advancing of the budget and the merger of the railway budget with it will be considered on Tuesday at a meeting of the union Cabinet to be chaired by Prime Minister Narendra Modi, who has been pushing for it.

The cabinet will also consider the proposal for doing away with the distinction between Plan and non-Plan expenditure.

According to the proposal, the entire Budget-making exercise will be advanced by 3-4 weeks so as to complete the legislative part of financial business before April 1, the start of a financial year.

Cabinet likely to extend stock limits on pulses tomorrow

The Cabinet is likely to consider tomorrow a proposal to extend stock holding limits on traders of pulses, edible oils and oilseeds for one more year to check hoarding and control price rise.

The stock holding limits on traders of these commodities expired this month-end.

“The Food Ministry’s proposal to extend stock holding limit on pulses, edible oils and oilseeds traders is on the agenda of the Cabinet meeting tomorrow,” a source said.

The stock holding limits are imposed under the Essential Commodities Act in order to check hoarding and blackmarketing.

The country is dependent on import of pulses and edible oils as the domestic production is lower than the demand.

Competition from Indian industry bigger than imagined: Chinese daily

China should reduce production costs for manufacturers as competitive pressure from Indian industry is “much bigger” than Beijing had imagined, a state-run Chinese daily said today.

“The competitive pressure on China’s manufacturing sector from India is perhaps much bigger than China imagined,” an article in the state-run Global Times said.

Referring to reports that salaries in China have grown by 10.6 per cent since 2008, while India has seen a salary growth of just 0.2 per cent during the same period, it said.

“India’s low labour cost advantage has rung an alarm for China’s manufacturing sector. Now it is time for China to map out concrete measures to reduce production costs for manufacturers.

“In this regard, the Chinese economy has to reduce its reliance on real estate and strive to create a favourable investment environment for manufacturers,” it said.

Already some Chinese smartphone vendors like Huawei plan to start manufacturing handsets in India because of cheaper labour costs, it said.

“India’s low labour cost advantage forces China to make more efforts to maintain its competitive edge in the global manufacturing landscape.

Moody’s expects India’s growth to top 7.7 per cent this fiscal

Listing budget targets, private investment and bank liabilities as the main challenges for India, Moody’s has projected India’s gross value added (GVA) growth to rise to 7.7 percent this fiscal with mixed trend in inflation.

At a press conference here, Marie Diron, Senior Vice President with Moody’s Sovereign Group, saw India’s credit rating materialising in the medium term based on reforms, which could potentially stabilise the macro-economic environment that is conducive to fiscal consolidation.

“In the nearer term, challenging budget targets could lead to significant spending cuts late in the fiscal, especially since in the first four months of the fiscal year, 74 per cent of the whole year’s budget target has already been reached,” Moody’s Investors Service said.

Besides Diron, the press conference was addressed by Aditi Nayar, Senior Economist with ICRA, an affiliate of Moody’s in India, who expected the country’s growth-inflation dynamics to display mixed trends during the current fiscal.

“Specifically, growth of GVA (gross value added) at basic prices is set to improve to 7.7 per cent from 7.2 per cent in FY2016 on the back of domestic consumption demand, amid a hardening of CPI inflation to an average of 5.1 per cent from 4.9 per cent over the same period,” she added.

Gross value added as opposed to gross domestic product is considered a better measure of economic performance as it excludes taxes and subsidies while calculating a country’s output.

According to Moody’s, some measures, if effectively implemented, can push India’s growth, notably an easing of restrictions on foreign direct investment to foster productivity, bankruptcy law for enhancing investor confidence and measures aimed at ease of doing business.

Christopher Sidor · Post by **Christopher Sidor** » 21 Sep 2016 18:47

Suraj wrote:Making up for lack of economic news postings:

Cabinet to consider Budget presentation on Feb 1
Breaking from tradition, the general budget of the union government is likely to be presented on February 1 instead of the last day of the month, as part of an overhaul that would also scrap the practice of a separate railway budget.

The proposal for advancing of the budget and the merger of the railway budget with it will be considered on Tuesday at a meeting of the union Cabinet to be chaired by Prime Minister Narendra Modi, who has been pushing for it.

The cabinet will also consider the proposal for doing away with the distinction between Plan and non-Plan expenditure.

According to the proposal, the entire Budget-making exercise will be advanced by 3-4 weeks so as to complete the legislative part of financial business before April 1, the start of a financial year.

Why do we have April-March as the Financial year in India? We are no longer an Agricultural economy. So why do we still persist with April-March as the financial year? Ideally it should be a calendar year from Jan-Dec.

hanumadu · Post by **hanumadu** » 21 Sep 2016 19:58

Kakkaji wrote:Another success story:

Prices of LED bulbs drop to Rs 38

NEW DELHI: Prices of LED bulbs being distributed by state-run Energy Efficient Services Ltd (EESL) under a government programme have fallen to one-tenth of their rates two years ago.

Production of LED lamps in the country has increased to about four crore per month from 10 lakh two years ago. LED bulbs consume 80% less energy than incandescentBSE 0.00 % bulbs and almost half of that used by CFLs.

Prime Minister Narendra Modi had in his Independence Day speech said the government was distributing LED bulbs for Rs 50 a piece against the earlier price of Rs 350.

The government expects to save 85 lakh Kwh electricity consumption every day or 15,000 onne of CO2 by replacing 77 crore conventional bulbs and CFLs with the LEDs and 3.5 crore street lights over three years.

I didn't beiieve when Piyush Goyal said the prices would drop this low when the program started. 15 crore bulbs already distributed. 60 cr more to go.

Suraj · Post by **Suraj** » 21 Sep 2016 21:23

Christopher Sidor wrote:Why do we have April-March as the Financial year in India? We are no longer an Agricultural economy. So why do we still persist with April-March as the financial year? Ideally it should be a calendar year from Jan-Dec.

Why is that ideal ? Financial years are just accounting conveneience. FYI,
US financial year : Oct 1 to Sept 30
UK financial year : Apr 1 to Mar 31
Japan financial year : Apr 1 to Mar 31
India financial year : Apr 1 to Mar 31

Most would NOT want FY to end Dec 31 . Why would anyone want to slog with the year end numbers on New Year's Eve ?

GoIs reasons for advancing the budget are far more practical - they just want extra time to pass budget appropriations into law before the FY begins.

gakakkad · Post by **gakakkad** » 22 Sep 2016 04:21

also september to november have diwali/dussera/navratri...

navneeet · Post by **navneeet** » 22 Sep 2016 09:10

In many parts of the country, the Revenue year (for land revenue purposes) is 1st October to 30th September.

Also, if I am not mistaken, the trader community celebrates the new Vikram Samvat on the night of Diwali.

Singha · Post by **Singha** » 22 Sep 2016 09:44

LED bulbs have been a great success. are there LED tube lights that can replace the current slim ones? that would be the killer app for the middle class who mostly use tube lights and not bulbs at home. that is around 300 mil people and much more energy KwH per home than the poorer band which uses LED bulbs. middle class rooms are all wired and equipped for tube lights not bulbs so despite wanting to, I have been unable to use LED bulbs in anywhere but bathrooms.

hanumadu · Post by **hanumadu** » 22 Sep 2016 12:14

Singha wrote:LED bulbs have been a great success. are there LED tube lights that can replace the current slim ones? that would be the killer app for the middle class who mostly use tube lights and not bulbs at home. that is around 300 mil people and much more energy KwH per home than the poorer band which uses LED bulbs. middle class rooms are all wired and equipped for tube lights not bulbs so despite wanting to, I have been unable to use LED bulbs in anywhere but bathrooms.

http://www.amazon.in/Philips-LED-Tube-L ... B00OGMQ17E

I think Goyal saab said that LED tubes are coming.

rahulm · Post by **rahulm** » 22 Sep 2016 12:20

I use slim Phillips and ETRON 2 foot cool daylight tubes in bathrooms and 4 foot tubes elsewhere. Nice white light.

JTull · Post by **JTull** » 22 Sep 2016 12:45

Christopher Sidor wrote:
Why do we have April-March as the Financial year in India? We are no longer an Agricultural economy. So why do we still persist with April-March as the financial year? Ideally it should be a calendar year from Jan-Dec.

UK has the same and it has almost never been an agricultural economy.

Ananth · Post by **Ananth** » 23 Sep 2016 21:42

GST Council resolves threshold and dual control issues

Eyeing April 1, 2017 roll out for GST, the GST Council on Friday resolved two contentious issues - a threshold over which the new indirect tax would apply and dual control of their tax officials over assesses.

The threshold has been fixed at Rs 20 lakh annual turnover. This means an entity having daily sales worth around Rs 5,500 would not come under the GST bracket.

The other contentious issue of dual control over assesses was also resolved. Now the state officials will have sole power over assesses up to Rs 1.5 crore of annual turnover in case of goods. In such cases, both the central and state officials would have jurisdiction. However, in case of services, both central and state officials will have power over assessees throughout.

An agreement on methodology for compensation to states for full five years is yet to be arrived at.

While the next meeting of the Council on September 30 will finalise draft rules on granting exemptions, the GST rate and tax slabs would be decided at its three-day meeting beginning October 17.

Ananth · Post by **Ananth** » 23 Sep 2016 22:55

Govt appoints 3 academics to monetary policy panel

The government nominees are Chetan Ghate, professor, Indian Statistical Institute; Pami Dua, director, Delhi School of Economics; and Ravindra H Dholakia, professor, Indian Institute of Management-Ahmedabad (IIM-A).

The RBI has already appointed Michael Patra as MPC member. The other two members are the RBI Governor Urjit Patel and Deputy Governor R Gandhi.

Ananth · Post by **Ananth** » 23 Sep 2016 22:56

Finance ministry sets ball rolling for Budget overhaul

The finance ministry has set in motion overhaul of the Budget exercise-- merger of the Rail Budget with the General Budget, advancing of dates of Budget presentation in Parliament and doing away with the distinction between plan and non-plan expenditure.

Ananth · Post by **Ananth** » 23 Sep 2016 22:58

Commerce Ministry for closure of interstate check points post GST

Citing an example, the official said one truck takes about 258 minutes at the inter-state check point in Assam.

In some states, this time varies from 60 minutes to hundreds of minutes.

According to a study, in India, trucks spend 60 per cent of their time in plying on roads while 40 per cent of the time, they spend on check points and other approval related issues.

Due to this, the productivity of trucks declines and he rate goes up.

There are over 600 interstate checkpoints in the country and it increases truck travel time

Rahul M · Post by **Rahul M** » 23 Sep 2016 23:34

if they can do this it would revolutionize commerce and transport in this country.

Manish_Sharma · Post by **Manish_Sharma** » 23 Sep 2016 23:38

Singha wrote:LED bulbs have been a great success. are there LED tube lights that can replace the current slim ones?

Just bought Wipro LED tube light, for Rs. 720, its 22 watts, but gives almost double the light of 36 watt tube, also it has 3 modes, One white, second old bulb yellow, third mixture of white and yellow, comes with 2 years warranty, don't know why amazon is selling it 65/- rs costelier :

http://www.amazon.in/Wipro-Changing-22- ... tube+light

Same philips was 20 watts for Rs. 750/- for one white color.

Also you can buy LED tube light, remove the choke from patti and LED tube light fits in, more light with much less wattage.

rahulm · Post by **rahulm** » 24 Sep 2016 00:01

Removal of inter state check points will also, hopefully, eliminate the hafta demanded from and meekly paid by each truck to transit the border. I would be delighted if this happens.

With Aadhar linked DBT eliminating cash dispensing parasites, border check post elimination will remove another set of free loaders.

I am not sure if GST implementation will eliminate the substantial differential in alcohol prices between MH And Goa. If, this price differential continues the check post, and hafta will continue.

What will now happen to the parasites who paid large amounts to secure plum check post postings ? They should,file a PIL in support of themselves and the injustice being done to them. Tsk tsk.

If NaMo is really serious, he should reform electoral funding (bring it outside the burkha ) and eliminate the gap between government and market rates in real estate. Hire a company to write an algorithm that adjusts government rates by mining data from real estate sites, inflation, demand, stamp duty, registration etc. A big data kind of thing. This will reduce flow of unaccounted money being fuelled into real estate and increase government revenues by higher collection of stamp duty and registration Then watch then fatcat, morally bankrupt, pravachan prone parasites and free loaders squirm.

Finally, digitise all land records and automate property registrations by linking to Aadhar and PAN. Remove the sub-registrar from the process and instead push the processing to a BPO - similar to the Passport processing service. Pity, property is a state subject

but maybe this reform can be accelerated in states which have a BJP government. Goa could be a good start.

JayS · Post by **JayS** » 24 Sep 2016 00:11

^^ I think trying to bring in all monetary transactions on record somehow will eliminate lot of opacity from economy. Of coarse supplementary things like digitized land records etc will be helpful in this.

Kakkaji · Post by **Kakkaji** » 24 Sep 2016 01:08

Number of companies may explode to 10,000 in 10 years after GST

KOLKATA: Under the Goods and Services Tax (GST) regime, the number of companies listed in BSE are expected to go up to more than 10,000 in the next ten years from the present 5,500 companies, a stock exchange official said on Friday.

"GST is an important framework. Today, there are 5,500 companies listed in the BSE. I would not be surprised in the next ten years, if more than 10,000 companies are listed in the BSE,"

He said the single tax regime would be beneficial for small entities and companies which operate across many states. It will allow many young companies to grow up very fast and bring more transparency in the system.

"Many companies at present have to fulfil regulations which are local. Under GST, their costs are expected to reduce and their profitability might go up. They find it easy to operate across India,"

g.sarkar · Post by **g.sarkar** » 24 Sep 2016 01:41

Deleted

pankajs · Post by **pankajs** » 24 Sep 2016 01:52

Deleted

vijayk · Post by **vijayk** » 24 Sep 2016 07:27

rahulm wrote:Removal of inter state check points will also, hopefully, eliminate the hafta demanded from and meekly paid by each truck to transit the border. I would be delighted if this happens.

With Aadhar linked DBT eliminating cash dispensing parasites, border check post elimination will remove another set of free loaders.

I am not sure if GST implementation will eliminate the substantial differential in alcohol prices between MH And Goa. If, this price differential continues the check post, and hafta will continue.

What will now happen to the parasites who paid large amounts to secure plum check post postings ? They should,file a PIL in support of themselves and the injustice being done to them. Tsk tsk.

If NaMo is really serious, he should reform electoral funding (bring it outside the burkha ) and eliminate the gap between government and market rates in real estate. Hire a company to write an algorithm that adjusts government rates by mining data from real estate sites, inflation, demand, stamp duty, registration etc. A big data kind of thing. This will reduce flow of unaccounted money being fuelled into real estate and increase government revenues by higher collection of stamp duty and registration Then watch then fatcat, morally bankrupt, pravachan prone parasites and free loaders squirm.

Finally, digitise all land records and automate property registrations by linking to Aadhar and PAN. Remove the sub-registrar from the process and instead push the processing to a BPO - similar to the Passport processing service. Pity, property is a state subject but maybe this reform can be accelerated in states which have a BJP government. Goa could be a good start.

I wonder if we can leverage technology like Blockchain and double/treble the tax compliance and reduce tax rate significantly. This will be deeply appreciated by middle class

GShankar · Post by **GShankar** » 27 Sep 2016 22:34

http://www.reuters.com/article/us-huawe ... KCN11T1AR?

China's Huawei to start India smartphone production in Oct

Chinese telecoms giant Huawei Technologies Co Ltd [HWT.UL] will start making smartphones in India next month, the company said on Friday, joining a wave of compatriots setting up plants in the world's third-biggest mobile market.

The plant will be operated with the Indian arm of electronics manufacturer Flextronics International Ltd in the southern Indian city of Chennai, Huawei said.

India is trying to attract manufacturing into the country as part of Prime Minister Narendra Modi's "Make in India" initiative.

Huawei got the green light from the government in July to set up the manufacturing plant in India, 19 months after applying for a license.

"We are convinced about the growth potential and future of India and we'll keep looking for opportunities to increase our presence here," Jay Chen, CEO, Huawei India said in a statement.

India is the world's fastest growing smartphone market and an attractive country for phone makers given growth in China is stagnating.

The number of smartphone users in India is expected to reach 990 million by 2020 from 798.4 million in 2015, according to a study by Cisco.

But so far a lack of good suppliers and infrastructure have hampered efforts to manufacture phones in the country, forcing most of India's more than 100 different phone companies to import from China and Taiwan, though the Modi government is making efforts to make it easier for manufacturers.

"The vendor ecosystem in India is not as strong as it is in China. A lot of things still need to be imported from China when it comes to things like electronic components, batteries, display or others, but I am sure as the market progresses, we will start to see true manufacturing happening here in India," said Anshul Gupta, research director at Gartner.

The devices made by Huawei in India are likely to hit the Indian market as early as October, the statement said, with the company looking to manufacture 3 million units by the end of 2017.

The company will also strengthen its after-sales services in India with over 200 service centers, including more than 30 exclusive Huawei service centers in the country.

Huawei will also expand its Indian retail network, increasing to more than 50,000 the number of outlets it partners with by the end of the year.

Other manufacturers from China are also setting up in India. In 2015 China's Xiaomi Inc [XTC.UL] joined forces with Taiwan-based electronics contract manufacturer Foxconn to assemble phones in India.