Indian Economy News & Discussion - Nov 27 2017

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vcsekhar
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vcsekhar »

Zynda wrote:able to articulate clearly why another tax (albeit refundable) is needed...These kind of charges affect middle class mainly and I see on SM that middle class are fed up & upset for being taken for granted...
I hope this pushback works but I am not optimistic at all. This is ridiculous as they are charging a TCS on money that is already tax paid and in the bank, all these transactions are essentially done with White Money and how is any tax escapement happening here !!!
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vera_k »

You have to file a tax return to claim refund on the tax. If people have not been declaring income it will result in some discovery of unknown sources of income used to fund the expense.

Should also result in people with "agricultural" income living large abroad having to pay this tax without the ability to get a refund because they show no other tax liability.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by ritesh »

Isnt it gets refunded? Then how can it be labelled as another tax? It's just for better enforcement and adherence purpose.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by ritesh »

vera_k wrote: Should also result in people with "agricultural" income living large abroad having to pay this tax without the ability to get a refund because they show no other tax liability.
These people may skip paying IT, but does indeed pay 28% GST while purchasing luxury goods isn't it? So, eventually some part comes to the gobermint exchequer.

This particular segment is responsible for such a high taxation rates in gst and in petrol diesel.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vcsekhar »

ritesh wrote:Isnt it gets refunded? Then how can it be labelled as another tax? It's just for better enforcement and adherence purpose.
Yes, it is refunded but only at the end of the year, usually by August of the next year. So people will lose their bank interest on 20% of the money grabbed by the govt who will not pay interest on the tax paid and to be returned later.
My point is that this is a totally bogus tax on honest tax payers. The payment for Forex is always tracked with PAN and has to be paid using a cheque or bank transfers, it is hardly ever done by cash. All the cash transactions are usually done for forex currency (paper) purchases that cannot be tracked with this system in any case. All CC transactions are done from your bank account so how can they say that tax is being escaped ??
This is the typical BS attitude of the IT Dept babus where they think that everyone is evading tax and they should treat every transaction as suspicious.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by sanman »

RBI Announces Withdrawal of Rs2000 Note!

https://www.reuters.com/world/india/ind ... 023-05-19/

Demonetization! DeMo 2.0 from NaMo!

Modi Lands in Hiroshima! Drops Hiroshima Bomb on Opposition Netas! :rotfl:
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by rajkumar »

sanman wrote:RBI Announces Withdrawal of Rs2000 Note!

https://www.reuters.com/world/india/ind ... 023-05-19/

Demonetization! DeMo 2.0 from NaMo!

Modi Lands in Hiroshima! Drops Hiroshima Bomb on Opposition Netas! :rotfl:
Only half a 'Little Boy' since the Rs 2000 will still be legal tender
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Bart S »

sanman wrote: Demonetization! DeMo 2.0 from NaMo!
Nothing of the sort is happening, just a routine phase-out of a particular currency note (one that the RBI has stopped printing a long time ago) and an exercise that RBI does from time to time.
sanman wrote:
Modi Lands in Hiroshima! Drops Hiroshima Bomb on Opposition Netas! :rotfl:
The only bombs that they seem capable of dropping are on their own foot, given the news above on overseas transactions and recent state election fiascos.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Vips »

India's forex reserves soar to $599.53 bln, highest since early June.

India's foreign exchange reserves experienced a continuous increase for the third week in a row, reaching $599.53 billion as of May 12. This level represents the highest amount since early June, according to the Reserve Bank of India's statistical supplement released on Friday. The reserves saw a rise of $3.55 billion compared to the previous week, following a total increase of $11.7 billion over the preceding two weeks.

To prevent significant fluctuations in the rupee, the central bank intervenes in both the spot and forwards markets. The changes in foreign exchange reserves can also be influenced by gains or losses in valuation.

According to a Reuters report, several foreign banks that hold a bullish outlook on the rupee are being challenged by the Reserve Bank of India's ongoing intervention efforts to bolster its reserves.

During the week corresponding to the forex reserves data, the rupee experienced a decline of 0.4%, primarily influenced by the overall strength of the dollar index. Throughout the week, the rupee traded within the range of 81.6900 to 82.2250 against the dollar.

In the following week, the rupee faced a more significant decline of 0.6%, marking its most substantial drop in two months. By the end of the week, the local unit concluded at 82.66 against the dollar on Friday.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by hanumadu »

Bart S wrote:
sanman wrote: Demonetization! DeMo 2.0 from NaMo!
Nothing of the sort is happening, just a routine phase-out of a particular currency note (one that the RBI has stopped printing a long time ago) and an exercise that RBI does from time to time.
People have time till 30th september to exchange their notes but only 20,000 at a time. So if people have a stash, it will take some effort.
Bart S wrote:
sanman wrote:
Modi Lands in Hiroshima! Drops Hiroshima Bomb on Opposition Netas! :rotfl:
The only bombs that they seem capable of dropping are on their own foot, given the news above on overseas transactions and recent state election fiascos.
What ever be the effectiveness of this TCS, but one of thing people cannot complain is that the govt taxes the same 5% all the time. This is an attempt to expand the tax base though its debatable if the difficulty caused to honest people is worth it or if it will even be effective.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

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vijayk
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

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We need to catch these scums ... they are directly funding PAPPU

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Re: Indian Economy News & Discussion - Nov 27 2017

Post by sanman »

Bart S wrote: Nothing of the sort is happening, just a routine phase-out of a particular currency note (one that the RBI has stopped printing a long time ago) and an exercise that RBI does from time to time.
This notebandi is going to affect big black money transactions heavily. Holders of such large denomination notes who did not know about this in advance are going to be screwed. Nobody will accept their Rs2000 notes now. How will ISI harvest their narco-money? How will they bomb the upcoming G-20 Summit if they can't pay their terrorists?
The only bombs that they seem capable of dropping are on their own foot, given the news above on overseas transactions and recent state election fiascos.
I was watching live TV interview with Congress Party's Rashid Alvi giving his reaction on this announcement -- you should have heard the genuine anguish in his voice -- he was practically on the verge of tears. It was literally as if he'd just heard news of his own child's death. Wow, nothing makes political netas scream like loss of their black money. :eek:
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Amber G. »

Indian Govt issues a statement on Japan Digital minister's remarks on joining India's UPI, welcoming it.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Bart S »

sanman wrote: This notebandi is going to affect big black money transactions heavily. Holders of such large denomination notes who did not know about this in advance are going to be screwed. Nobody will accept their Rs2000 notes now. How will ISI harvest their narco-money? How will they bomb the upcoming G-20 Summit if they can't pay their terrorists?

I was watching live TV interview with Congress Party's Rashid Alvi giving his reaction on this announcement -- you should have heard the genuine anguish in his voice -- he was practically on the verge of tears. It was literally as if he'd just heard news of his own child's death. Wow, nothing makes political netas scream like loss of their black money. :eek:
I think the general public who has black money will have no problem getting rid of it, it isn't even going to require 10% of the effort required last time around, given that they have plenty of time and it is still legal tender.

Coming to ISI, the narco-money is harvested via hawala channels and the kind of terrorism currently in vogue doesn't require significant funding. The terrorist attacks have been largely stopped, with any attack requiring either Pakis to infiltrate and do it, or some amateur radicalized yahoo doing a lone-wolf attack. In the past the whole FICN and black money pool was used to fund stone pelting and the whole ecosystem (politicians, 'civil society activists', media etc) and this has largely been destroyed by the changes brought by the govt in Kashmir.

Black money and polticians yes, they will absolutely not be enjoying this, however given that these guys are basically criminals and have a large pool of cadres to use for this sort of thing, they will somehow manage to exchange it though it definitely makes their operations a lot harder. However also keep in mind that all political parties are in the same boat, so the BJP and allies themselves might also have to deal with it, especially with the ground level politicians.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by chetak »

hanumadu wrote:
Bart S wrote:
Nothing of the sort is happening, just a routine phase-out of a particular currency note (one that the RBI has stopped printing a long time ago) and an exercise that RBI does from time to time.
People have time till 30th september to exchange their notes but only 20,000 at a time. So if people have a stash, it will take some effort.
Bart S wrote:

The only bombs that they seem capable of dropping are on their own foot, given the news above on overseas transactions and recent state election fiascos.
What ever be the effectiveness of this TCS, but one of thing people cannot complain is that the govt taxes the same 5% all the time. This is an attempt to expand the tax base though its debatable if the difficulty caused to honest people is worth it or if it will even be effective.
saar,

TCS can be adjusted against the advance tax paid by taxpayers or adjusted in the IT paid every year

Only credit cards used abroad attract TCS

Debit cards used abroad will not attract TCS

what exactly is the crib.......

HNIs were apparently investing abroad using their multiple credit cards and those jokers are the actual target
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vera_k »

^ Debit cards are already required to pay the TCS. This new move plugs the loophole for credit cards.

Details explained
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by chetak »

Guess it was a warning shot across the bows


@ANI 7:09 PM · May 19, 2023

Any payments by an individual using their international Debit or Credit cards upto Rs 7 lakhs per financial year will be excluded from the LRS limits and hence, will not attract any (TCS) Tax Collected at Source: Govt of India

Existing beneficial TCS treatment for education and health payments will also continue: GoI
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vera_k »

Feel a trick is being missed here.

If the IRS can provide a way to check if a taxpayer has been submitting satisfactory tax returns, the TCS can be limited to those who have not been doing so. This should be possible now with aadhar in play. Don't get why there's a rush to create a paper chase by collecting money and then having people file returns to claim a refund.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Bart S »

It is virtually impossible to have an Indian credit card without a PAN card, which is also the identifier for tax returns (and having being linked to Aadhar, has been cleaned up significantly in terms of duplicate PANs etc). Also, the Income Tax authorities can easily track all credit card transactions.

So since they have all of this data, why can't they simply go after those with large foreign spends that don't seem to be justified by their income tax returns or lack thereof?

This is one of those bureaucratic ideas that will only have a disproportionate impact on the salaried middle-class, especially those who travel abroad for company work or save up for years and go for a vacation, only to have their card limits blocked and funds tied up till they file for a refund after a year. Remember that this 20% of their (already significant) foreign spends will have to be paid in full or they will pay usurious interest rates to the credit card provider.

This might be one of those things where the govt feels that the impacted middle class people are not a significant enough vote-bank to matter, but this logic IMHO has been overused constantly and while most people are OK with the govt and have a lot of understanding and patience, it is probably wearing thin at this point.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Bart S »

chetak wrote:Guess it was a warning shot across the bows


@ANI 7:09 PM · May 19, 2023

Any payments by an individual using their international Debit or Credit cards upto Rs 7 lakhs per financial year will be excluded from the LRS limits and hence, will not attract any (TCS) Tax Collected at Source: Govt of India

Existing beneficial TCS treatment for education and health payments will also continue: GoI
In usual bureaucratic style, this statement is ambiguously worded. By 'using their international credit card' it could imply either overall usage (including INR transactions) or strictly forex usage of up to 7 lakh.

If the latter then it genuinely addresses the concerns of middle-class people going on vacations etc, but if the former it's not much help.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

:deleted
Last edited by vijayk on 20 May 2023 15:09, edited 1 time in total.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Cyrano »

^^^ please move to appropriate thread
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Bart S »

Finshots has a good take (fairly neutral) on the LRS tax deduction:
https://finshots.in/archive/understandi ... nsactions/

The Ken (which mainly covers tech business/venture cap/startup industries and has a fair following among those in that space), had this interesting take/in their newsletter:
Essentially, more Indians are going abroad and spending money there, and the government is trying to slow this down and wants to keep some of that within India. After all, why go to Switzerland when, say, Kashmir has perfectly picturesque snow-capped mountains?
In other words, they see it as mainly a move to discourage foreign travel (especially amongst those for whom it is a significant financial undertaking, i.e. middle-class; the super-rich will anyway not be deterred by this as they will have their accountants collect the refund later with little impact to their cash flow) in favour of domestic tourism, since none of the other angles in which to interpret this make any sense to them.

I find their articles to be usually well written and data driven (though they sometimes take an overly skeptic or suspicious stance on any government policy diktats).
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by VinodTK »

Explainer-What India's decision to scrap its 2000-rupee note means for its economy
By Ira Dugal
MUMBAI (Reuters) - India will withdraw its highest denomination currency note from circulation, the central bank said on Friday. The 2000-rupee note, introduced into circulation in 2016, will remain legal tender but citizens have been asked to deposit or exchange these notes by Sept. 30, 2023.

The decision is reminiscent of a shock move in 2016 when the Narenda Modi-led government had withdrawn 86% of the economy's currency in circulation overnight.

This time, however, the move is expected to be less disruptive as a lower value of notes is being withdrawn over a longer period of time, according to analysts and economists.

WHY DID THE GOVERNMENT WITHDRAW 2000-RUPEE NOTES?

When 2000-rupee notes were introduced in 2016 they were intended to replenish the Indian economy's currency in circulation quickly after demonetisation.

However, the central bank has frequently said that it wants to reduce high value notes in circulation and had stopped printing 2000-rupee notes over the past four years.

"This denomination is not commonly used for transactions," the Reserve Bank of India said in its communication while explaining the decision to withdraw these notes.

WHY NOW?

While the government and the central bank did not specify the reason for the timing of the move, analysts point out that it comes ahead of state and general elections in the country when cash usage typically spikes.

"Making such a move ahead of the general elections is a wise decision," said Rupa Rege Nitsure, group chief economist at L&T Finance Holdings. "People who have been using these notes as a store of value may face inconvenience," she said.

WILL THIS HURT ECONOMIC GROWTH?

The value of 2000-rupee notes in circulation is 3.62 trillion Indian rupees ($44.27 billion). This is about 10.8% of the currency in circulation.

"This withdrawal will not create any big disruption, as the notes of smaller quantity are available in sufficient quantity," said Nitsure. "Also in the past 6-7 years, the scope of digital transactions and e-commerce has expanded significantly."

But small businesses and cash-oriented sectors such as agriculture and construction could see inconvenience in the near term, said Yuvika Singhal, economist at QuantEco Research.

To the extent that people holding these notes chose to make purchases with them rather than deposit them in bank accounts, there could be some spurt in discretionary purchases such as gold, said Singhal.

HOW WILL IT AFFECT BANKS?

As the government has asked people to deposit or exchange the notes for smaller denominations by Sept. 30, bank deposits will rise. This comes at a time when deposit growth is lagging bank credit growth.

This will ease the pressure on deposit rate hikes, said Karthik Srinivasan, group head - financial sector ratings at rating agency ICRA Ltd.

Banking system liquidity will also improve.

"Since all the 2000-rupee notes will come back in the banking system, we will see a reduction in cash in circulation and that will in turn help improve banking system liquidity," said Madhavi Arora, economist at Emkay Global Financial Services.

WHAT ARE THE IMPLICATIONS FOR BOND MARKETS?

Improved banking system liquidity and an inflow of deposits into banks could mean that short-term interest rates in the market drop as these funds get invested in shorter-term government securities, said Srinivasan.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by sanman »




Soros, Hindenberg & Co can go pound sand
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Aditya_V »

Regarding the TCS , I think it's only purpose is reduce a sudden and unexpected spike in US dollar requirement, I think in Aug and Sep 23, Indian parents with college going children abroad could have big expenses
They want to curb outflow in an election year so no unexpected shocks are required in fuel , gas prices.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Vips »

India's GDP crossed $3.5 trillion in 2022; bureaucracy to impact FDI attraction: Moody's.

India's GDP had crossed USD 3.5 trillion in 2022 and will be the fastest-growing G-20 economy over the next few years, but reform and policy barriers could hamper investment, according to rating agency Moody's Investors Service. In a research report, the US-based agency said that bureaucracy could slow approval processes in obtaining licences and setting up businesses, prolonging project gestation.

"India's higher bureaucracy in decision-making will reduce its attractiveness as a destination for foreign direct investment (FDI), especially when competing with other developing economies in the region, such as Indonesia and Vietnam," said Moody's.

"While demand across the manufacturing and infrastructure sectors will grow 3-12 per cent annually for the rest of the decade, India's capacity will still rank well behind China's by 2030," Moody's said. It added that despite the economy's strong potential, there is a risk that the pace of investment in India's manufacturing and infrastructure sectors could slow because of limited economic liberalization or slower policy implementation.

The lack of certainty around the amount of time needed for land acquisition approvals, regulatory clearances, obtaining licenses and setting up businesses can materially prolong project gestation. India's limited multilateral liberalisation with respect to regional trade agreements will also weigh on foreign investments in the country, as per Moody's.

The efforts by the government to reduce corruption, formalize economic activity, and bolster tax collection and administration are encouraging, ‘’although there are increasing risks to the efficacy of these efforts,'' said the rating agency.

According to the latest World Economic Situation and Prospects report released by the United Nations, India's economy is projected to expand by 5.8 per cent in calendar year 2023, supported by resilient domestic demand. The report, however, also underscored the high cost of funds and weak external demand that will continue to pose challenges for investments and exports.

Moody's added that if the measures are implemented effectively– including those introduced during the pandemic to increase the flexibility of labour laws, raise agricultural sector efficiency, expand investment in infrastructure, incentivize manufacturing sector investment, and strengthen the financial sector – it would lead to higher economic growth.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Dilbu »

India’s Q4 FY23 growth pegged at 5.5%, FY23 growth at 7.1%: SBI Ecowrap
State Bank of India’s (SBI) latest research report, Ecowrap, mentioned on Friday that India’s growth in the fourth quarter of FY23 is likely to be 5.5 per cent, leading to the country’s growth for FY23 at 7.1 per cent. This is in line with the advance estimates released by the National Statistical Office (NSO) in January that pegged the growth for the year ended March 31, 2023, at 7 per cent.

The report said that amid economic uncertainty in the global landscape, India is expected to pursue a “different pathway of zeroing in on drivers of growth, looking for a renewed surge in resilient manufacturing while supporting the services sector to embrace enhanced efficiency”.
It said that the Union Budget 2023-24’s emphasis on capital expenditure is expected to crowd-in private investment, strengthen job creation and demand and raise the growth potential.

“RBI has estimated Q4FY23 Real GDP growth to be 5.1 per cent and full year FY23 estimates by NSO is 7.0 per cent. For 2023-24, RBI is projecting GDP growth at 6.5 per cent with Q1 pegged at 7.6 per cent. SBI’s ANN (Artificial Neural Network) model, based on 30 high frequency indicators from key sectors, and tuned/trained to project the GDP numbers forecasts the quarterly GDP growth for the Q4FY23 at 5.5 per cent. At this rate, India’s GDP growth for FY23 is likely at 7.1 per cent,” it said.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

https://twitter.com/RMantri/status/1644207172342153216


Rajeev Mantri @RMantri
Financial wealth and investment, which used to be concentrated in a handful of cities, is now rising rapidly across the entire country. An unprecedented phenomenon.

https://mailchi.mp/e-bs/bs-number-wise- ... ade02924cb


Image
Image
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by bharathp »

the inflection point closely following demonetization and thus the mainstreaming of many of these wealth generators.
its not that there were less wealth generators before (comparitively). they just were nt documented.

think of all the highly successful clothing/food/fast food stores (every small city had one or two) - all payments to them were in cash - how many would pay taxes? putting cash in bank meant declaring assets - so the money went to undocumented economy - black money in real estate or gold

after demo - money going to banks - greater avenues to invest in stock market

2 other big fish to net - bollywood (film industry) and real estate
once you net those. it will be another inflection point.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by drnayar »

[url] https://m.timesofindia.com/india/how-in ... 52.cms/url]

Hit job farticle in TOIlet

Nice Graphs though... so apparently indias climate is created by India :((
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Ashokk »

Record-bound Indian stocks reclaim spot in world’s top 5 markets
India reclaimed its spot as the world’s fifth largest stock market after losing that status to France in January, aided by a revival in Adani Group stocks.
Market capitalization of India stood at $3.3 trillion as of Friday, as Adani shares rebounded from a rout and foreign funds accelerated purchases. France lost more than $100 billion in market value last week as luxury goods makers such as LVMH Moet Hennessy Louis Vuitton SE and Vivendi SE saw a sell-off on fears of a slowdown in China and the US.
India is benefitting from a stuttering economic recovery in China that has seen overseas funds rotate money out of Asia’s largest economy to Indian stocks. Foreign investors have added $5.7 billion worth of India stocks since the start of April, chasing stable earnings growth and aided by one of the highest GDP growth rates among large economies in the world.
Jefferies Financial Group Inc. strategist Christopher Wood last week raised his weight of Indian stocks in his Asia Pacific ex-Japan model portfolio to reflect the disappointments in the Chinese stock market after a strong rally earlier this year.
The S&P BSE Sensex Index has bounced back more than 9% after briefly entering correction territory in mid-March, closing in on record high levels. A rebound in Adani Group’s fortunes further boosted momentum after a court-appointed panel said it found no conclusive evidence of stock price manipulation as alleged by US short seller Hindenburg Research.
Adani’s 10 listed entities added around $15 billion to their market value last week to trim their losses post-Hindenburg’s report to $105 billion from as high as $153 billion earlier.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Ashokk »

After Nearly Collapsing, Indian Billionaire’s Stock Is Back on the Rise - NYT
The Adani Group, a conglomerate that builds and operates ports, power lines and food factories across India, began the year nearly on top of the world — having increased in value tenfold over the previous two years. Its founder and chief executive, Gautam Adani, was ranked the second-richest man on Earth last summer, just behind Elon Musk.

Then it crashed even more quickly than it had shot up. Hindenburg Research, a boutique investment firm, issued a report on Jan. 24 claiming the company had inflated its stock through financial gimmickry. That firm had bet that Adani’s shares would tank, and down they went: By the end of February, the Adani Group’s 10 publicly traded stocks had lost two-thirds of their value, a hit of nearly $150 billion. The report persuaded nearly everyone to head for the exits.

The Adani Group hung on, however. This week it is riding its biggest rally since the downfall. Its flagship stock, Adani Enterprises, gained 31 percent in four days. Another unit of the empire, Adani Ports, has recouped its losses completely. Bullish voices say the whole group might rise by another 15 to 20 percent this year.
The findings from the Supreme Court’s committee suggest that the Adani Group can now relax as far as the Indian authorities are concerned. Without investigative powers that they lack, the regulators are incapable of pursuing the suspicions set in motion by Hindenburg Research in January. India’s political opposition, seizing on the connection between Mr. Adani and Mr. Modi, has been calling for a special parliamentary panel that might unearth more. But between the court and Mr. Modi’s parliamentary majority, they stand little chance.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Dilbu »

India’s economy remains steady, resilient from global shocks: RBI Annual Report 2022-23
India’s growth momentum continues to be steady despite increased turbulence in the global economy, said the Reserve Bank of India (RBI) in its annual report for 2022-23. Even as the global economy faces multiple headwinds in the form of inflation, growth slowdown, aggressive interest rate hikes and other geopolitical factors, India’s growth story remains resilient, as per the central bank’s report.

“In this turbulent global economic environment, India has experienced macroeconomic and financial stability with a steady pick-up in the momentum of growth. This reflects a sound macroeconomic policy environment and the innate resilience of the economy which fortified it against recurring global shocks,” RBI said in its report.
The report highlighted that India has remained among the fastest-growing major economies in the world, contributing to more than 12 per cent global growth on average during the past five years.

“As inflation eases from its high reaches under the combined impact of monetary policy actions and supply management, fiscal consolidation reduces debt and deficit levels from pandemic-induced highs, the current account deficit remains within sustainable levels; macroeconomic stability is getting entrenched,” the RBI said.
The RBI said the real GDP growth for 2023-24 is projected at 6.5 per cent, even with the global risks.

The central bank said several factors, including lower inflation, good crop harvests, sustained growth in the contact-intensive services sector and the continued focus on capital expenditure, will drive sustained growth.
williams
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by williams »

Ashokk wrote:After Nearly Collapsing, Indian Billionaire’s Stock Is Back on the Rise - NYT
The Adani Group, a conglomerate that builds and operates ports, power lines and food factories across India, began the year nearly on top of the world — having increased in value tenfold over the previous two years. Its founder and chief executive, Gautam Adani, was ranked the second-richest man on Earth last summer, just behind Elon Musk.
Still, a long way to go. What used to be almost 4000 INR is now 2500 INR. But the financials remains strong.
Mollick.R
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Mollick.R »

India approves world's largest food storage scheme in co-operative sector at the cost of Rs 1 lakh crore

ET Online, Last Updated: May 31, 2023, 05:21 PM IST

The government will bring a policy for world's biggest food grain storage scheme under the cooperative societies sector, minister Anurag Thakur told media following a Cabinet briefing on Tuesday.

Thakur termed the proposed scheme as the "world's largest foodgrain storage programme" in the cooperative sector.

The government will make an allocation of approximately Rs 1 lakh crore towards it, it was announced.

Under this scheme, a godown of a capacity of 2000 tonnes will be constructed in every block. An inter-ministerial committee will be formed for this.

This is part of a plan to expland foodgrain storage facilities in the country, the minister said. This will boost the cooperative sector, he added.

The programme aims to raise India's foodgrain storage capacity by 700 lakh tonne in the cooperative sector. Currently, the grain storage capacity in the country is about 1,450 lakh tonne.

In the next five years, the storage will expand to 2,150 lakh tonne. The storage capacity will be increased in the cooperative sector, the minister announced.


Thakur said the move is aimed to reduce the damage of food grains due to a lack of storage, help in checking distress sales by farmers, reduce import dependence and create employment opportunities in rural India.

This will boost food security in India, apart from helping farmers realise better prices for their goods. Earlier, farmers at times had to sell their wares in a hurried manner owing to climate-related vagaries, the minister said.

India has 65,000 agricultural cooperative societies.

The new move will be a win-win for both agricultural societies and farmers as well as consumers, the minister said. The farmers, apart from storing their produce in the facilities, will also be able to get up to 70% loans from these societies.

This will lead to significant savings in transportation costs, he observed.

India produces about 3,100 lakh tonne of foodgrains a year. The country's current godown facilities can store only up to 47 per cent of the produce.

A decision was also taken to start City Investments to Innovate, Integrate and Sustain - CITIIS 2.0 program at the same briefing.

https://economictimes.indiatimes.com/ne ... 647659.cms
Mollick.R
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Mollick.R »

'This India is different from what it was in 2013': Morgan Stanley

TIMES OF INDIA.COM / Updated: May 31, 2023, 15:00 IST

NEW DELHI: Morgan Stanley, the US-based global investment bank, has come out with a report detailing India's transformation under the Narendra Modi government. In a big endorsement for the Modi government, the Morgan Stanley report highlights how India has undergone significant changes because of the government's policy choices, especially since 2014.
"This India is different from what it was in 2013. In a short span of 10 years, India has gained positions in the world order with significant positive consequences for the macro and market outlook," the report said.
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The report, India Equity Strategy and Economics: How India Has Transformed in Less than a Decade, highlights the 10 big changes, mostly because of India's policy choices, and their implications for its economy and market.

Morgan Stanley's Research had taken these 10 big changes: Supply-side policy reforms, formalisation of the economy, Real Estate (Regulation and Development) Act, digitalizing social transfers, Insolvency and Bankruptcy Code, flexible inflation targeting, focus on FDI, India's 401(k) moment, government support for corporate profits and MNC sentiment at multiyear high, while filing the report.

Listing the 10 big changes that have happened since Prime Minister Narendra Modi took office in 2014, the brokerage said bringing corporate tax at par with peers and infrastructure investment picking pace are one of the biggest supply-side policy reforms.


Lots of Decent Quality Graphs in Original Report Link

Read Full Article from Here// TOI Link
https://timesofindia.indiatimes.com/bus ... 643261.cms
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by bala »

Saurav Jha on Dedollarisation: Dream vs Reality. The Real Question Facing the US Federal Reserve and Geopolitical Factors Affecting Inflation and more..



India igniting and China fading

sanman
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by sanman »

The crooks at NYT again going after Modi with their poison-tipped pens --- meanwhile they'll turn a blind eye to the antics of Hunter Biden and Attorney Genereal Merrick Garland :roll:

Am I supposed to be impressed by anything the NYT has to say? My only regret is that I missed the opportunity to put a comment in NYT's comment section, to fingerpoint right back at the Biden Justice Dept and the Biden financial dealings. I firmly believe in throwing their rocks right back at their own glass houses. :evil:
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