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Indian Economy News & Discussion - Aug 26 2015

The Technology & Economic Forum is a venue to discuss issues pertaining to Technological and Economic developments in India. We request members to kindly stay within the mandate of this forum and keep their exchanges of views, on a civilised level, however vehemently any disagreement may be felt. All feedback regarding forum usage may be sent to the moderators using the Feedback Form or by clicking the Report Post Icon in any objectionable post for proper action. Please note that the views expressed by the Members and Moderators on these discussion boards are that of the individuals only and do not reflect the official policy or view of the Bharat-Rakshak.com Website. Copyright Violation is strictly prohibited and may result in revocation of your posting rights - please read the FAQ for full details. Users must also abide by the Forum Guidelines at all times.
rahulm
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Re: Indian Economy News & Discussion - Aug 26 2015

Postby rahulm » 25 Oct 2016 06:13

Panagariya defends 4 GST rates and cess
The 5 tiered slab is to manage inflation and the cess is planned for 5 years to compensate states.
Last edited by rahulm on 25 Oct 2016 07:45, edited 1 time in total.

hanumadu
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Re: Indian Economy News & Discussion - Aug 26 2015

Postby hanumadu » 25 Oct 2016 06:22

Having broadly completed the first two stages of ‘recognising’ the stressed assets and of ‘reserving’ or provisioning for such loans in their accounts, the banks are now betting big on ‘resolution’ part of what is being billed by some top bankers as ‘3Rs’ formula to recover their dues.


This is what I have been saying all along, most of the bad loans have already been provisioned for by the banks. If fact, they provisioned for the bad loans first (since 2011) and only after having set aside the money, they are now officially recognizing the bad loans. The govt avoided panic by not making a hue and cry about it at the outset and waited till they covered all their losses. If the banks write off all the bad loans today, it wont make an iota of difference to their functioning. No wonder Rajan said that all bad loans will be recognized and balance sheets cleaned up by March 2017. After March 2017 with a big chunk of profits not used up for provisioning anymore, they will be reinvested and be available for lending which should provide a boost for growth.

Any NPAs coming back on track and starting to pay off is a bonus. And I think a lot of them will eventually will be productive assets. Steel production is growing again and seeing Modi's aim of tripling steel production, one of the biggest components of bad loans will be resolved. The other one is power sector. The coal based ones will be the first to be fixed. The gas based ones are the big problem.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Rammpal » 25 Oct 2016 06:42

"...IMO, the only large sector left for India to grab is military related manufacturing.

Maybe exports of fighter jets, tanks, ships etc. and use that to double down on internal Infrastructure development to generate mass employment..."

Totally agree, however;

Why is mil. related manufacturing the only large sector left ?
What about everything related to marine/maritime, which pretty much still is virgin territory, even for so-called 1st world countries, and space, and energy, and agri.
It's a very long list, actually.

csaurabh
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Re: Indian Economy News & Discussion - Aug 26 2015

Postby csaurabh » 25 Oct 2016 09:41

disha,

regd. automation and unemployment, you might want to check out Robotic Nation by Marshall Brain. He goes into all the arguments thoroughly.
http://www.marshallbrain.com/robotic-nation.htm

Rammpal
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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Rammpal » 25 Oct 2016 10:25

^^^Then you need to clearly explain India's current economic achievement, i.e.: was it achieved through high productivity automation, and by extension quality products, or did India achieve this with chisel and hammer ?

Thorough argument ?!!

Too simplistic and doesn't really say much.

https://books.google.com.my/books/about ... edir_esc=y

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby csaurabh » 25 Oct 2016 10:32

Rammpal,

Marshall brain talks about the USA, not India.

Automation improved our lives a lot,so more automation will make it even better! but it is more complicated than that, especially when you understand the mechanics of capitalism.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby kapilrdave » 25 Oct 2016 11:31

Rammpal wrote:"...IMO, the only large sector left for India to grab is military related manufacturing.

Maybe exports of fighter jets, tanks, ships etc. and use that to double down on internal Infrastructure development to generate mass employment..."

Totally agree, however;

Why is mil. related manufacturing the only large sector left ?
What about everything related to marine/maritime, which pretty much still is virgin territory, even for so-called 1st world countries, and space, and energy, and agri.
It's a very long list, actually.

Ayurvedic herbs is one huge potential market that we ought to create in the world for ourselves. Apart from this, We're doing decent in pharma sector locally but now is the time to capture the world.

WRT automation vs manual, well it's a pointless debate. No one has in the history nor in the future will survive without adapting new technologies. What all we can do is to create more job avenues to employ the unemployed workers.

On a related note, I'm happy to note that Indian ceramic & tiles industry has started kicking cheeni a$$ once again. Morbi is a town of Gujarat which is traditionally into ceramic & tiles industry. Around a decade ago china almost choked Morbi industry by mass manufacturing tiles along with technical innovations like digital prints etc. But Morbi industrialists showed their resolve by adapting to new manufacturing technologies and innovations rapidly. Now not only the tiles import has stopped but they are fiercely competing with cheenis in world market. The ceramic industry is also picking up.

Note that the new manufacturing plants are totally automatic in Morbi, yet there is no lack of job. In fact, the city people have to travel to Rajkot - the bigger city nearby - to buy stuffs other than daily routines because everyone is busy catering to this industry in one way or other!

Rammpal
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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Rammpal » 25 Oct 2016 12:35

"...Note that the new manufacturing plants are totally automatic in Morbi, yet there is no lack of job. In fact, the city people have to travel to Rajkot - the bigger city nearby - to buy stuffs other than daily routines because everyone is busy catering to this industry in one way or other!..." :)

Nice to know !

If only the rest of India thinks this way - and invests accordingly :wink:

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 25 Oct 2016 23:53

I haven't seen this article from Jaggy on IIP posted here:
The IIP Is A Disgrace: It Is On Some Other Planet, Not Grounded In Reality
Will someone rid us of our meaningless Index of Industrial Production (IIP)? The index no longer serves any useful purpose, as it seems to signal nothing on which policies can be based.

Going by the IIP, Reserve Bank Governor Urjit Patel should be slashing interest rates regularly since the industry is in decline mode. But this scenario is impossible to confirm when one looks at anecdotal evidence from various industrial sectors.

The latest IIP, for August, tells us that industry de-grew again by 0.7 percent, after a negative growth of -2.5 percent in July. For the April-August period, the IIP reports -0.3 percent growth. In calendar 2016 (January-August), industry has reported negative growth in three of the eight months.

The April-August index tells us that manufacturing, which accounts for over 75 percent of the IIP, is dragging down the index, while mining and electricity are in positive territory, but their weights are 14 percent and 10 percent.

On the other hand, consider the robust numbers coming from several sectors. According to a Business Standard report today (11 October), passenger vehicles and two-wheelers grew at 17.8 percent and 20 percent plus in the July-September quarter, and airlines reported 23 percent growth in passenger traffic in April-August.

Indirect tax collections, another important indicator of the health of the economy, were up 26 percent in the first half of this fiscal (April-September), with excise revenues rising 46 percent and service tax 22 percent. Only customs duty grew by an anaemic 4.8 percent, which is indicative of the weak global trade environment.

We know that the Seventh Pay Commission payouts started happening in August, and rural demand will revive after the Kharif crop is in later this year. We also know that government investments in infrastructure, especially roads and railways, will pick up as the year proceeds. One wonders what signal the IIP numbers dished out so far sends to policy-makers.

If fiscal and monetary policies have to be forward-looking rather than backward-looking, the IIP is a waste of time till it is completely rejigged with a new base year. Time to dump the old one ASAP.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Yagnasri » 26 Oct 2016 10:24

A lot depends on who the major corporates govern themselves. The recent developments in Tata do not give any confidence. In fact, since Radia tapes, Tatas were under the cloud, but their considerable "good name" and media influence ensured that they do not get examined seriously at that point. But this time it will be a bit difficult. RT's statement on intolerance coming just before kicking out of CM may be part of the plan to ensure that a C system supports Tata Sons in the case of any serious problems with CM.

http://www.business-standard.com/articl ... 143_1.html

http://economictimes.indiatimes.com/new ... 058979.cms

I must confess that I never had any great view about Tatas and most of their thing is to do with "image building" that was done for decades. Now I think I am right all along.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 28 Oct 2016 04:15

Cabinet gives in-principle nod to biggest divestment drive
The Union Cabinet, led by Prime Minister Narendra Modi, on Thursday gave an "in-principle" approval to strategic sales and disinvestment in a number of state-owned companies, kick-starting the process of valuing these entities and finding interested buyers.

The public sector undertakings (PSUs) include loss-making and profit-making entities as well as assets such as factories and plants.

Finance Minister Arun Jaitley announced the decision during a media briefing after the Cabinet meeting. He, however, declined to reveal the names of the companies, saying these will now be approved by the Cabinet on a case-by-case basis after valuing them, finding prospective buyers and possible methods of sale.

NITI Aayog's vision document to focus on common man
All the chapters of the 15-year vision document, which the NITI Aayog is planning to release in the next few months, will have a common theme of how it would change the life of the common Indian citizen, and how that change can be monitored.

Officials said each theme of the vision document will underline the fact that how each programme or initiative that the Centre would take in the next 15 years impacts the life of the common man and how best it can be monitored so that outcome-based changes and course corrections can be undertaken.

Officials said the document will also lay down how each of the themes will help in creating an enabling environment for the business in the country.

The Prime Minister’s Office (PMO) has in its brief told NITI Aayog that all the chapters and sub-divisions in the document should focus on these two parameters.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby A_Gupta » 29 Oct 2016 22:03

http://www.asianage.com/international/i ... -index-069
India ranks poorly in Commonwealth youth index

India ranked 133rd, below neighbouring countries like Nepal (77), Bhutan (69) and Sri Lanka (31), and trailing behind South Asian average.

London: India has ranked very poorly at 133 in a new Global Youth Development Index compiled by the Commonwealth Secretariat on the countries' prospects for young people in employment, education, health, civic and political spheres.

India ranked 133rd in the index covering 183 nations, below neighbouring countries like Nepal (77), Bhutan (69) and Sri Lanka (31) and trailing behind the South Asian average.

However, the report released last week found that it has registered an 11 per cent improvement in scores over the last five years, highlighting the need for greater investment to reap the so-called demographic dividend.

"One in five young people in the world today live in India, which makes it one of the most youthful countries on the planet," said Abhik Sen, the lead author of the '2016 Global Youth Development Index' report.

"While India's overall rank is relatively low, it has registered an impressive improvement of nearly 11 per cent in its youth development scores in the period between 2010 and 2015.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 01 Nov 2016 00:08

Infrastructure sector growth at 3-month high of 5 per cent in September
Infrastructure sector recorded a growth rate of 5 per cent in September — the highest in three months — on account of healthy performance by cement, steel and refinery products.

The growth rate of the eight infrastructure sectors — coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity — in September 2015 was 3.7 per cent.

The core sectors, which contribute 38 per cent to the total industrial production, had expanded by 3.2 per cent in August.

As per the official data released today, the cumulative growth of the sector during April-September period of the fiscal was 4.6 per cent against 2.6 per cent in the same period last fiscal.

Production of cement, steel and refinery products grew by 5.5 per cent, 16.3 per cent and 9.3 per cent respectively in September this year.

Growth in fertilizer and electricity generation fell to 2 per cent and 2.2 per cent in September 2016, from 18.3 per cent and 11.4 per cent respectively in September 2015.

GSTN to borrow Rs 800 crore to meet GST infra building cost
GSTN, the company that is building the world’s biggest and most complex tax system, will borrow Rs 800 crore from banks to fund infrastructure costs to support Goods and Services Tax rollout from April 1 next year.

The Goods and Services Tax Network (GSTN), a not-for-profit, non-government, private limited company promoted by the central and state governments, is borrowing Rs 250 crore for working capital needs and another Rs 550 crore as long-term loan from domestic lenders, its chairman Navin Kumar told PTI here.

The government of India has 24.5 per cent stake in GSTN and the state government an equal share. The remaining 51 per cent is with private financial institutions.

Number of income tax payers soars
Thanks to the increased transparency through digitisation and also efforts to get hold of the tax evaders, the number of income taxpayers seems to be finally growing in a significant manner after hovering around 3 crore for quite some time.

According to the latest income tax data released by the Central Board of Direct Taxes for FY13 (AY14) and FY14 (AY15), the number of income tax returns filed between FY12 and FY14 has increased by about 79 lakh to cross 3.91 crore

India built 2,979 km of highways in quarter; govt optimistic on achieving target
India built 2,979 km of highways during the April-September in the current fiscal year, or 16.5 km a day, up 21.7% over the corresponding period a year ago, thanks to a renewed focus on conventional government-funded engineering, procurement and construction (EPC) projects and a recent pick-up in the newly designed hybrid annuity model that greatly mitigates risk to private developers.
Though construction is still far slower than needed to meet the target of 15,000 km (41 km a day) for all of 2015-16, government sources were still optimistic of meeting the target. The pace of construction, from about 20 km a day in April-July, fell largely due to the monsoon that slowed down activities on the ground.

The sources said the National Highways Authority of India (NHAI) constructed 985 km of roads during the first six months of the year while 1,994 km of highways were built by the ministry of road transport and highways (MoRTH), which carries out the task mostly through the state public works departments.

“Construction work got affected due to heavy monsoon that lasted for nearly four months. Now the work will pick up. We will try our best to achieve the target,” NHAI chairman Raghav Chandra told FE.

NHAI has been entrusted with the task of building 8,000 km of the targeted 15,000 km highways to be constructed in the current fiscal and the remaining has been proposed to be done by MoRTH.

salaam
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Re: Indian Economy News & Discussion - Aug 26 2015

Postby salaam » 01 Nov 2016 00:14

Suraj wrote:
According to the latest income tax data released by the Central Board of Direct Taxes for FY13 (AY14) and FY14 (AY15), the number of income tax returns filed between FY12 and FY14 has increased by about 79 lakh to cross 3.91 crore



For me, above is the best part. Hope by 2019 it grows to 5.5 crores.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 01 Nov 2016 05:26

Export credit breaks trend to show sharp rise
After several months of sluggish growth, export credit by banks has risen significantly. The outstanding gross export bank credit saw a 27.9 per cent increase as of August 2016 on a year-on-year basis, against 19.2 per cent in September 2015, data from Reserve Bank of India show.

After a sustained period of negative growth, export credit has been witnessing a positive growth for the past six months. Exporters attribute this recovery to better exports in geographies such as the European Union, along with the reintroduction of interest equalisation scheme, which was earlier known as interest subvention.

Image
Centre unveils faster-maturing pulses variety
The central government unveiled a new, early maturing variety of arhar (red gram). It apparently gives a yield of 20 quintals, the same as many existing varieties but maturing in 120 days, instead of the usual 170-180 days.

Called PUSA Arhar-16, it might even be issued for commercial use in January itself, so that farmers could plant by the next kharif season.

The new variety gives an average yield of 20 quintals, which though is same as many existing varieties, but more crucially take lesser time to mature making it suitable for northern plains. It would give farmers ample time to grow potato, mustard or wheat in the rabi season thereby making this arhar variety suitable for northern plains.

An early release by next January bypassing he mandatory three years multi-field testing parameters would enable the country achieve self-sufficiency in pulses by in the next 3-4 years.

Fiscal deficit in H1 balloons to two-decade high
The Centre’s fiscal deficit ballooned to 83.9 per cent of the Budget Estimates (BE) in the first half of 2016-17, the highest in the first six months of a financial year since 1998-99, on account of elevated capital spending and higher salaries outgo. On revenue side, lower realisations from disinvestment and other streams hurt the exchequer.

However, revenues from divestment, black money scheme and tax buoyancy due to enhanced economic activities on rural demand in the second half may help the government in reining the fiscal deficit at the targeted level of 3.5 per cent of the gross domestic product (GDP). Otherwise, the government will have to squeeze expenditure, experts warned.

In absolute terms, the fiscal deficit was at Rs 4.48 lakh crore in the first half of 2016-17, against Rs 5.34 lakh crore budgeted for the entire financial year, according to data released by CGA on Monday.

A steep rise in capital expenditure in September was encouraging, considering that private investment remained muted.

Capital spending grew 20 per cent year-on-year in September to Rs 43,593 crore. In the first half of the financial year, capital expenditure has seen growth of 4.6 per cent to Rs 1.34 lakh crore, against Rs 1.28 lakh crore in the corresponding period last year.

Capital expenditure denotes money incurred on asset-generating projects, while revenue expenditure refers to spending on immediate needs such as salaries and pensions. The government started paying higher salaries and pensions from August due to the implementation of the Seventh Pay Commission's recommendations. The exchequer would see a hit of Rs 84,000 crore this financial year because of higher pay and pensions.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Ananth » 04 Nov 2016 03:52

GST Council finalises peak rate at 28%
The Goods and Services Tax (GST) Council on Thursday decided upon a 4-slab tax structure of 5 per cent, 12 per cent, 18 per cent and 28 per cent, with lower rates for essential items and the highest for luxury and de-merits goods, many of which would also attract an additional cess. A proposal by some states, including Kerala, to have special GST rates on luxury and sin goods was not accepted.

Yagnasri
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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Yagnasri » 04 Nov 2016 04:35

Had met senior service tax officials yesterday. They are all undergoing training on GST which is fully computerised. April 1, 2017, start.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby JayS » 04 Nov 2016 20:21

About the luxury items. What will happen to the taxes on those items when the 5yr period for cess lapses?? Would Tobaco, for example, be charged at 28% then, instead of 65% now??

Suraj
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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 05 Nov 2016 01:21

JayS wrote:About the luxury items. What will happen to the taxes on those items when the 5yr period for cess lapses?? Would Tobaco, for example, be charged at 28% then, instead of 65% now??

Legislative privilege. The rates are set by a money bill. Any government of the day gets to define what the rate is set to when the prior rate. The current additional cess over 28% for demerit goods is being used to compensate states who used sin taxes to bridge part of their revenue shortfalls. The cess has a 5 year sunset clause after which it needs to be reviewed on a year to year basis, though a later bill can make it indefinite. The constitutional amendment does not define rates; the government of the day can do it via money bills.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby JayS » 05 Nov 2016 02:37

Understood. It can be decided upon later. What I meant was do keeping such variations in the spirit of GST?? I mean there only a handful items in this category, but still.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Prem » 05 Nov 2016 02:56

https://thetechportal.com/2016/11/04/fo ... vi-mumbai/
Foxconn to reportedly set up new Indian manufacturing facility in Navi Mumbai

This facility will be set up in Navi Mumbai and be separate from the $5 million MoU signed by the company with the Maharashtra Government in mid-2015. Sources privy to the development report that Foxconn’s greenfield facility will require an initial investment in the range of $20 to $30 million to start with the manufacturing of smartphones before moving on to other products. A senior Foxconn official with knowledge of the setup said,The Navi Mumbai plant will be set up by early next year, with a target capacity of about 2 million a month. To start with, mobile phones will be made, which is the high volume category in India, followed by mechanics design.For those unaware, the company had previously signed an agreement with the Government of Maharashtra to set up its first facility — among numerous others — in the state to manufacture products including iPhones, tablets over five years of time. This investment, which has probably fallen through, was expected to create over 50,000 jobs in the state.Foxconn first entered India in 2006 as a supplier to Nokia. It set up operational units in the Special Economic Zone of Chennai but the same had to be shuttered due to labor issues and Nokia selling its smartphone business to Microsoft. The closure of this 300-acre facility affected over 22,000 employees.For the past year, Foxconn is aggressively looking to push the envelope and setup close to twelve factories for the production –not just assembly — of smartphones, especially Apple’s iPhone in the country. Ever since the company restarted its operations as part of the Make in India program, it has invested close to $600 million in not only setting up five assembly plants but also capital investments in messaging app Hike and Snapdeal.In addition, the interwebs have been with the chatter of not only Nokia reviving its mobile business but choosing Foxconn to produce the same in India. And as stated above, Apple is also looking to better its ties and improve cost of manufacturing its products via this very facility. Commenting on the same, Foxconn’s head of India operations Josh Foulger said,

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 05 Nov 2016 22:06

JayS wrote:Understood. It can be decided upon later. What I meant was do keeping such variations in the spirit of GST?? I mean there only a handful items in this category, but still.

I personally have no regard for such things as 'spirit of GST' . It's just a damn tax structure, not some topic of emotional appeal to my idea of spirit . Whatever's the most effective compromise to make it work, works . It's mostly a manufactured concern right now, and any political entity would have been unable to implement a single rate GST . We are far too diverse a political economy for that .

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby JayS » 05 Nov 2016 22:42

Spirit of GST = Simplified Tax Structure

I am personally not in favour of single rate GST myself. 3-rate system was what I was expecting.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Austin » 05 Nov 2016 23:29

Rs 2000 Note from RBI , Got over whatsapp so cant be sure how true this is

Image
Image
Image

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Karthik S » 06 Nov 2016 00:21

IIRC, didn't CBN recommend that 500 and 1000 notes be discontinued to check corruption. This 2000 Rs note is direct contrary to what he said. Personally I don't see a connect between money note denominations and corruption.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby JayS » 06 Nov 2016 01:25

^^ Easy t carry out black money transactions/hide black money with bigger denominations. Imagine if you have to give 1Cr cash in Rs.100 notes instead of Rs.1000 notes.

Its a very old proposal being floated around for many years, to stop 1000Rs notes.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Viv S » 06 Nov 2016 01:39

Coming soon to your wallet: ₹2,000 notes

HYDERABAD/MUMBAI, OCTOBER 21:

Banknotes of the denomination of ₹2,000 will be in circulation soon.

The Reserve Bank of India has very nearly completed preparations for introducing this new high-value currency, sources said.

The notes have already been printed, and their despatch from the currency printing press in Mysuru has commenced.

The move assumes significance in the wake of a demand from some quarters that notes of ₹1,000 and ₹500 denominations be withdrawn to prevent hoarding of black money.

The highest denomination note printed by the RBI was the ₹10,000 note in 1938 and in 1954. They were demonetised in 1946 and 1978, respectively.

There has been no official word on the introduction of new notes either from the RBI or the government. The government, on the advice of the RBI , decides on various denominations of banknotes to be issued.

Big share

As of March 2016, the value of banknotes in circulation was ₹16,41,500 lakh crore, an increase of 14.9 per cent over the previous year.

In value terms, ₹500 and ₹1,000 notes together accounted for 86.4 per cent of the total value of notes in circulation.

“During 2015-16, the demand for banknotes and coins remained high notwithstanding the growing shift towards non-cash modes of transactions,” the RBI said in its annual report for 2015-16.

According to reports, it costs a little over ₹3 to produce a ₹1,000 note, the lowest in terms printing costs as a proportion of value. Printing notes of smaller denominations is relatively more costly.


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Re: Indian Economy News & Discussion - Aug 26 2015

Postby saip » 06 Nov 2016 06:20

To end corruption best thing is to introduce new notes in the denominations of 500, 1000, 2000 and ask everyone to exchange old notes for new notes and make sure of their IDs (adhar cards, pan cards etc) if they exchange more than say Rs100,000 or so in a day and withdraw old notes after one year.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Hitesh » 06 Nov 2016 07:06

Not only that, only India can produce such notes instead of outsourcing to other countries to manufacture these notes. It will vastly cut down on counterfeiting and prevent Pakistan from wrecking India by flooding the circulation with fake money.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Gus » 06 Nov 2016 11:44

From my friend at customs - GST 'train the trainer' thing is going on.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Marten » 06 Nov 2016 11:56

Hitesh, are you sure we are not importing from the frauds in Germany (same folks who were also giving this specific type of currency paper to Pakis so they could replicate Indian currency). iirc the inks are also imported (might be mistaken, but perhaps from Aus). So basically we print, but get the raw material from different sources.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby chetak » 06 Nov 2016 12:13

Marten wrote:Hitesh, are you sure we are not importing from the frauds in Germany (same folks who were also giving this specific type of currency paper to Pakis so they could replicate Indian currency). iirc the inks are also imported (might be mistaken, but perhaps from Aus). So basically we print, but get the raw material from different sources.


from where ever you import the paper, ink and the press including all the security paraphernalia, the pakis and the cheeni will also import the very same from the same source.

just like they are doing now.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby rahulm » 06 Nov 2016 14:12

I would like to see a reduction, even if gradual, in paper notes being issued with a corresponding increase in use of electronic payments-payTM, RuPay, credit and debit cards. Most government services require payment to be made at a grubby nationalised bank and then producing a stamped challan. For starters, why can't payments for all government services also have a EFT pyaments option? Ever tried to buy stamp paper for large property transactions? You need an armoured car and Popeyes's arms and shoulders to carry all that cash around.

Require all registered businesses, big or small to have an EFT option. And while at it, mandate all autos and kaali peeli taxis to accept payTM. If the Sarkar can mandate it for Uber and Ola,then why should the auto and taxi goons be untouchable ?

Finally, can we move to polymer notes please ? Easier for all and harder for counterfeiter's aka TSP.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby JayS » 06 Nov 2016 14:15

SPMCI has invested 2500 Cr to replace all imports and make paper, ink in India. Precisely because German company selling paper to India was giving same paper to Pakis. Currency Note printing is too important for national Security to leave it out to imports in any form.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby JayS » 06 Nov 2016 14:21

rahulm wrote:I would like to see a reduction, even if gradual, in paper notes being issued with a corresponding increase in use of electronic payments-payTM, RuPay, credit and debit cards. Most government services require payment to be made at a grubby nationalised bank and then producing a stamped challan. For starters, why can't payments for all government services also have a EFT pyaments option? Ever tried to buy stamp paper for large property transactions? You need an armoured car and Popeyes's arms and shoulders to carry all that cash around.

Require all registered businesses, big or small to have an EFT option. And while at it, mandate all autos and kaali peeli taxis to accept payTM. If the Sarkar can mandate it for Uber and Ola,then why should the auto and taxi goons be untouchable ?

Finally, can we move to polymer notes please ? Easier for all and harder for counterfeiter's aka TSP.


And its not that difficult to. I hardly need to pay by cash except to roadside subjiwallas and to maid. 90% transaction I do on daily basis are all by cards. I have paid as low as Rs.28 by cards. We need a system which charges very low per transaction for digital money unlike VISA/Mastercard or even better - is free. Mobile based payment is great. Then even small vendors can afford to have e-payment option.

We have IT power to implement systems, market to justify any amount of investment on the infrastructure. Only will power and vision is missing.

We had that Uniform Payment System or something proposed right? What happened to it??

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby rahulm » 06 Nov 2016 14:54

My grouse, existing Rs 1000 note barely fits in my wallet. Will I have to buy a new wallet for the Rs 2000 note? :)

There is across the board resistance to EFT by traders et al as it brings transparency. Reform will be slow. However, government can lead. One bill and one executive order and it will be done.

Our famed IT prowess is mostly used to execute non desi vision while, we, with some exceptions plod along with cash-pavati (receipt) -count note- stash under various pillows system.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Gus » 06 Nov 2016 15:15

JayS wrote:And its not that difficult to. I hardly need to pay by cash except to roadside subjiwallas and to maid. 90% transaction I do on daily basis are all by cards. I have paid as low as Rs.28 by cards. We need a system which charges very low per transaction for digital money unlike VISA/Mastercard or even better - is free.


well, rupay was that idea. charge less. and money stays inside the country. adoption is still slow i think. I have to actively observe and report, as Suraj tells me everytime this comes up :lol:

I do see places that take cards for 15 rupees. This was a food court joint which probably favored no cash transactions to reduce handling paper money.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby JayS » 06 Nov 2016 15:21

Well RuPay is not being adopted/promoted by banks properly. All their card offers are on VISA/Mastercard, which I think are sponsored by VISA/Mastercard, which can afford to do so due to its high charges per transaction. At the least, transactions should be fixed rate per transaction irrespective of the money transferred, as it doesn't matter at all, the efforts for each transactions are still the same whether it 10 Rs or 10Cr. RuPay does the same I think. Its absurd to have to pay 1000Rs for card payment for 50000k transaction while buying say a laptop. That's daylight robbery. Can't expect the sellers as well to pay this as it eats up their margins and they insist on cash because of that.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Rammpal » 06 Nov 2016 16:13

JayS wrote:^^ Easy t carry out black money transactions/hide black money with bigger denominations. Imagine if you have to give 1Cr cash in Rs.100 notes instead of Rs.1000 notes.

Its a very old proposal being floated around for many years, to stop 1000Rs notes.


I'd be very worried if I were you!
You reckon they don't know that already :-o


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