New NITI Vice-Chairman Rajiv Kumar hints at more exits after Panagariya

According to a column by Kumar, foreign influence on Indian policy making is fading under Modi

Under Narendra Modi, foreign influence on Indian policy making is fading away, writes Rajiv Kumar, who has been selected to replace Arvind Panagariya as the new vice-chairman of the NITI Aayog. In a column published by Hindi daily Dainik Jagran, while referring to Panagariya's exit earlier this month and Raghuram Rajan's decision last year to return to academia after completing his three-year stint as the RBI governor, Kumar writes that if "rumours in Lutyens’ Delhi" are to be believed, more such resignations may occur.

According to Kumar's column, as the "Anglo-American" influence fades, India may see the appointment of homegrown experts who understand its ground realities better than their foreign counterparts and who will be willing to stay and work until the end of their terms.

(economy policy)

Kumar, who holds a DPhil in Economics from the Oxford University and a Ph.D. from the Lucknow University, also argues in his column that it has taken a long time for the Indian policy establishment to shed what he describes as its "Macaulayist mentality".

Kumar writes that in the past, experts emerging from domestic academic institutions have been turned down for high-ranking government positions in favour of their foreign counterparts. As a result, Kumar argues, Indian policies have been influenced by organisations like the IMF, the World Bank, and the foreign universities that these imported experts revere.

As reported earlier, Kumar, a homegrown economist who likes to keep a low profile, is currently a senior fellow at the Centre for Policy Research (CPR) and has also served as the director of the Indian Council for Research on International Economic Relations (ICRIER). CPR and ICRIER are two of the biggest think-tanks in the country....

>>>read full story <<<

Demonetisation effect: Advance tax collections up 42%, returns filed up 25%

Returns filed by this date stood at 28.3 mn against 22.7 mn in corresponding period of 2016-17

The effect of demonetisation was clearly seen in the growth of returns and taxes paid by individuals by 5, the extended deadline for filing income tax returns.

The number of returns filed by this date stood at 28.3 million against 22.7 million during the corresponding period 2016-2017, registering an increase of 24.7 per cent. The growth in the same period last year was 9.9 per cent.

The growth in returns filed by individuals is 25.3 per cent with 27.9 million having been received up to August five against 22.3 million in the corresponding period of FY 2016-2017.(economy news)

"This clearly shows that a substantial number of new tax payers have been brought into the tax net subsequent to demonetisation," the Central Board of Direct Taxes (CBDT) said in a statement here.

The effect of demonetisation is also clearly visible in the growth in direct tax collections.

Advance tax collections of personal income tax showed a growth of about 41.79 per cent as on August 5 over the corresponding period in FY 2016-2017. Personal income tax under self-assessment tax (SAT) grew at 34.25 per cent over the corresponding period in FY 2016-2017.

"The figures amply demonstrate the positive results of the Government's commitment to fighting the menace of black money. CBDT is committed in its resolve to eradicate tax evasion in a non-intrusive manner and widening of tax base," the statement said.

Sound economics, good investment: Should you opt for Bharat 22 ETF?

ETFs have become a preferred vehicle for parking the long-term money

Mayuresh Joshi is Fund Manager at Angel Broking

Last week, the government announced Bharat 22 ETFs, an exchange traded fd of 22 large cap shares. While the composition includes mostly profit-making, dividend paying public sector companies, the government is also including some shares of blue chip companies like ITC, Larsen & Toubro and Axis Bank held under the Special Undertaking of Unit Trust of India or SUUTI.

Economic news

The government observed in the release that over the past 3 years to June 2017, assets under management of exchange traded funds in India surged five times to just under Rs 54,000 crore. The release also emphasized that exchange traded funds or ETFs are a popular class of funds globally. Assets under management are expected to grow to $7 trillion by 2021 from $4 trillion today. There is merit in the argument the government has made in the press release.

ETFs have become a preferred vehicle for parking the long-term money. Sovereign Wealth Funds and Pension Funds worldwide love them. While the average cost of fund management is high in active funds, it is much lower in exchange-traded funds. At the same time, they are relatively less risky with well-defined assets under management. The liquidity of these funds is also high since they are listed on stock exchanges.

So if you make a checklist of investments, ETFs  tick most of the boxes.

Why good economics?

The government's move to create Bharat 22 will allow it to raise money for meeting the disinvestment target. The budget estimate puts it at over Rs 72,000 crore. So far, in 2017-18, it has only managed to raise Rs 9,300 crore. The timing is just about right if they launch it now. This is because stock markets are at a record high and new investors attracted to India are looking for assets like blue chip company shares. The government could raise a significant amount of money by transferring some of the direct holding to the ETF. The release issued last week does not comment on the timing and the amount the government proposes to receive through this....

READ MORE

 

Over 1 million PANs deleted: Check if your card is still active

A person can not be registered with more than one PAN

number

As on July 27, 11,44,211 duplicate PANS have been identified. PAN is the key identifier of taxable entity and aggregator of all financial transactions undertaken by one person.

More than one million permanent account numbers (PANs) were deleted or de-activated by the government, in a move to check fake identities. Reportedly, as on July 27, 11,44,211 duplicate PANS have been identified, said Indian Express. PAN is the key identifier of taxable entity and aggregator of all financial transactions undertaken by one person.

As per government rules, a person cannot be registered with more than one PAN number. The Indian Express reported that the government also detected fake PAN cards which were allotted to non-existing individuals or to people who have submitted false information about themselves.

How to check if your PAN is still active

1. Visit the Income Tax e-filing portal - www.incometaxindiaefiling.gov.in

2. On the homepage, under the ‘Services’ tab, click ‘Know your PAN’

3. The website will take you to a new page where you will be asked to enter - name, gender, religion, date of birth, registered mobile number and click ‘Submit’.

Over 1 million PANs deleted: Check if your card is still active

4. Enter the OTP or one-time password received on the registered mobile number and click on Validate.

5. If your PAN is valid, it will show as ‘Active’ under the remarks column.

Over 1 million PANs deleted: Check if your card is still active

PANs were deactivated during 2004-2007 too.....

(read full story)

 

Missed the ITR deadline? Here's what you need to do next

Filing returns after the due date can have repercussions even if there are no pending liabilities

Filing income tax (I-T) returns on time is every taxpayer’s responsibility and there are several benefits extended to the individual for the same. On the other hand, filing returns after the due date can have repercussions for the taxpayer even if there are no pending tax liabilities. However, if you have missed the deadline, you can file a belated return.

What is a belated return?

A belated I-T return can be filed after the due date but before the end of the assessment year. Belated returns have to be filed within one year from the end of the relevant financial year. Hence, if you need to file your return for financial year 2015-16, the assessment year will be 2016-17 and the belated return can be filed by March 31, 2017. Similarly, if you must file your return for financial year 2016-17, you must do so by March 31, 2018 — the end of assessment year 2017-18.
The procedure to file a belated return is the same as filing the return within the due date. Log into your e-filing account on the I-T department’s website, select the applicable ITR form and assessment year, and proceed. For example, if you are filing the return for financial year 2015-16, select assessment year 2016-17.

Economy news 

Consequences of filing late returns

Missing the deadline or delay in payment of dues against past tax liabilities can lead to:

• Penalties and interests: In the case of an unpaid tax amount, the assessee is charged a penal interest under Section 234A and 234B per month till the liability is paid off. After the deadline, a further interest of one per cent per month will have to be paid under Section 234C as well.

• Interest on refunds: Under a provision in the Income Tax Act, an individual is eligible to receive an interest on the excess tax they have paid from April 1 of the assessment year till the date the amount is refunded to the taxpayer. However, after the due date, the assessee will be paid interest on TDS after August 1. This means that you will lose out the interest accrued from April to July.

• No carrying forward of losses: Individuals can carry forward capital losses up to eight subsequent assessment years to be set off against future capital gains arising in the following years. However, if the income tax return is not filed by the due date, taxpayers will not be allowed to carry forward any losses.

GST Council may finalise e-way rules tomorrow

GST provision requires goods more than Rs 50,000 to be pre-registered online before it can be moved

 

 

The GST Council is likely to lower tax rate tomorrow on job works making fabric to garments to 5 per cent and put in place a mechanism for online registration of goods above a certain value before they can be transported.

The Council, headed by Finance Minister Arun Jaitley, will also review at its meeting the implementation of the new Goods and Services Tax (GST) regime since July 1 and may finalise a mechanism to operationalise anti-profiteering provision to protect consumer interest.

Central Board of Excise and Customs (CBEC) Chairperson Vanaja Sarna said the movement of goods between states has smoothened with 25 out of 29 states abolishing check posts.(economy policy)

"About 25 states have removed those check posts. So far, it has been going all right," she told PTI.

This would further smoothen after e-way bill in GST that requires any goods more than Rs 50,000 in value to be pre- registered online before it can be moved is implemented.

"As the e-way bill process for the whole of India gets panned out, we should be able to do something which will be better," Sarna said.

She, however, declined to comment on whether the threshold in e-way bill will be retained at Rs 50,000 amid demands from various quarters to raise it.

>>>READ MORE<<<

 

Modi govt to introduce Housing Challenge to boost affordable homes for all

While allotting ground floors, preference will be given to differently abled and older persons 

Economy news: After successful implementation of Smart City Challenge aimed at improving livability in Indian cities, the government is set to boost its Housing for All scheme, where a competition — Housing Challenge — would be conducted to select the most cost-effective technology to provide affordable housing for citizens....

What is 'Housing for All' scheme?

The government has identified 305 cities and towns in nine states for the beginning of construction housing projects for the urban poor.

The construction of the first 10,000 dwelling units in the first phase of ‘Housing for all’ project under the Pradhan Mantri Awas Yojna (PMAY) will begin in Maloya in August, the Indian Express reported.

Out of the 10,000 units, there will be 3,500 dwelling units for the economically weaker section, 3,000 for low-income group, 2,000 for the middle-income group (MIG-I) and 1,500 for MIG-II.

Condition for PMAYBeneficiary max age: 70 years
Economic Weaker Section: Annual income less than Rs 300,000

Lower Income Group: Annual income Rs 3,00,001 to 6,00,000

The beneficiary should not have an own dwelling unit in his name or in the name of any family member in any part of India.

Features of the scheme

The features of the scheme are that the government will provide an interest subsidy of 6.5 per cent on housing loans availed by the beneficiaries for a period of 20 years under credit link subsidy scheme (CLSS) from the start of a loan.
The houses would be constructed through a technology that is eco-friendly. While allotting ground floors in any housing scheme under PMAY, preference will be given to differently abled and older persons.

>>>READ MORE<<<

20 Indians, including politicians, movie stars have Swiss accounts: Whistleblower

If Federal Court rules in his favour, Rudolf Elmer would release data from Julius Baer bank

In the quiet village of Rorbas, just outside Zurich, Rudolf M. Elmer has been fighting a 12-year-long legal battle against the centuries-old traditions of Swiss banking secrecy. Elmer, who ran the Caribbean operations of the Swiss bank, Julius Baer, for eight years before being dismissed in 2002, was part of the first wave of Swiss bank whistleblowers who helped expose the inner workings of a system that helped the world’s rich and multi-nationals conglomerates evade billions of dollars in taxes through offshore financial structures and tax havens.

In 2011, he was tried for sharing information about tax evasion, money laundering and other financial violations with US tax authorities and WikiLeaks. Over the past six years, Elmer has been imprisoned for 200 days, some of it in solitary confinement, and has fended off an orchestrated harassment campaign against his family...

 #Economypolicy

Edited excerpts:It’s been 15 years since you left Julius Baer and since then we’ve seen more whistleblowers, leaking greater amounts of data on illicit global financial flows. But we’ve also seen some international cooperation over cracking down on tax evasion. How much have things changed?

Well, the question is have things really changed? It looks like to the man on the street that there is a lot of change going on in favour of the public over the last 15 years. In my view, generally speaking, yes there is a lot of talk. But actually not that much has changed, to be crystal clear....

(CLICK HERE FOR FULL STORY)

Chocolate mithais to attract 5% GST, Centre clarifies

Rates for kulfi, dosa batter, portable toilets spelt out

Sandesh, with or without chocolate, will be taxed at 5 per cent, the government clarified on Thursday along with the goods and services tax (GST) rates for other items, including rakhis, idli-dosa batter and kulfi.

However, ambiguity persisted over whether the tax rate for plastic furniture would be 28 per cent as furniture or 18 per cent as plastic items. The sharp jump in tax on car leasing is also expected to be taken up in the GST Council meeting on Saturday.

“Sandesh, whether or not containing chocolate, will attract 5 per cent GST,” the government clarified on Thursday.

#Economynews 

The clarification comes amid reports that sweet shops have discontinued chocolate barfis and chocolate sandesh. The GST rate on chocolates is 28 per cent and Indian sweets are taxed at 5 per cent. Although milk is exempt in the GST, khoya, or concentrated milk, will attract 5 per cent GST.

“Sweet shops in Kolkata were in panic over different GST rates based on the types of sweets and ingredients. Now the government has clarified that the GST rate on all Indian sweets is 5 per cent,” said Archit Gupta, founder and chief executive officer of ClearTax.

The GST was implemented on July 1 and subsumed most indirect taxes such as excise duty, service tax and value-added tax.

The government also clarified that kulfi — the Indian frozen dessert — would attract 18 per cent GST, like ice-cream. Besides, idli-dosa batter would attract 18 per cent GST under the food mixes category, it said.

>>>READ MORE<<<

Rupee set to shed gains, weaken to 65 if dollar revives: Reuters poll

Chinese yuan is forecast to weaken to 6.90 per dollar a year

In 12 month's time the Chinese yuan will have erased most of its gains made this year, provided the US Federal Reserve sticks to its tightening path, boosting the greenback, a Reuters poll showed.

Having strengthened more than 3 per cent since the start of 2017, the yuan is forecast to weaken to 6.90 per US dollar in a year, according to the poll of over 60 foreign exchange analysts taken July 27-Aug 2.

It was trading around 6.72 on Wednesday.

While the US dollar should benefit when the Fed starts shrinking its balance sheet, which it has said it expected to do "relatively soon", it could falter again if the central bank fails to follow through with a rate hike later this year. 

At the start of the year, traders had expected faster rate hikes from the Fed and some form of stimulus from the new Trump administration would drive the dollar up strongly against emerging currencies.(economy policy)

But, the greenback has instead taken a beating on fading hopes that President Trump will be able to push through deep tax cuts and massive infrastructure spending.

That has brightened the outlook for Asian currencies.

Strong Chinese economic data over recent months has cooled worries over the yuan's weakening, leaving further scope for the People's Bank of China (PBOC) to tighten the country's domestic liquidity conditions.

>>>READ MORE<<<

Prices of subsidised LPG zoom 16 per cent since Modi took charge

Global crude oil prices have slumped by 49 per cent during the same period

The prices of subsidised cooking gas zoomed by 16 per cent, from Rs 414 per cylinder when the Bharatiya Janata Party (BJP) government came to power in May 2014 to Rs 479.77 in August 2017, despite global crude oil prices dipping by about 49 per cent.

The Narendra Modi-led government had stormed to power in 2014 on the back of serious corruption charges against the Congress-led regime and the rise in prices of commodities like cooking gas, against which the BJP had raised its voice. Interestingly, the price of liquefied petroleum gas (LPG) was revised 22 times by oil marketing companies (OMCs) like Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL) since May 2014, when the BJP government took charge.

However, on the back of a 49 per cent drop in international crude prices, from $102.71 a barrel on May 30, 2014, to $52.16 (Brent crude) on August 3, 2017, prices of non-subsidised cylinders dipped 44 per cent, from Rs 928.50 per cylinder in May 2014 to Rs 524 in August 2017.

#Economynews

Also, in an effort to reduce the subsidy burden or to completely do away with the subsidy, OMCs are authorised to increase prices of subsidised domestic LPG cylinders by Rs 4 per month till March 2018. "The government stands committed and will continue to provide subsidy assistance to the needy and poor households," said an official close to the development.

The subsidy amount on a 14.2-kg cylinder transferred to the accounts of Delhi consumers stands at Rs 86.54 currently, which the government wants to do away with or reduce to the range of Rs 40 per cylinder by March 2018. The current national average of LPG subsidy per cylinder comes to the tune of about Rs 58 per cylinder.

>>>READ MORE<<<

GST woes: India's gold imports to fall in H2; smuggling seen rising, says WGC

There have been fears the tax increase could stoke under-the-counter buying in India

India's gold imports will likely drop in the second-half of the year from the first six months after jewellers rushed to stock up ahead of new taxes introduced on July 1, the World Gold Council (WGC) said on Thursday.

Faltering appetite in a country where gold is used in everything from investment to wedding gifts could rein in a rally in global prices, trading near their highest level in seven weeks. (economy policy)

"Expecting higher (taxes), certainly some of the imports and some of the demand from the second-half were advanced in the June quarter," Somasundaram PR, Managing Director of WGC's India operations, told Reuters.

As part of a new nationwide sales tax regime introduced in July, the goods and services tax (GST) on gold jumped to 3 percent from 1.2 percent previously. Jewellers have to pay that tax when buying gold imported by banks, while their customers must also pay when making purchases.

India is the world's No.2 gold consumer. The country's demand for the metal in the first-half rose 30 percent from a year ago to 298.4 tonnes, but imports during the period more than doubled to 518.6 tonnes, the WGC said in a report published on Thursday.

India's gold imports typically strengthen in the second-half of the year as the precious metal is considered an auspicious gift at festivals such as Diwali and Dussehra.

Indian gold demand is expected to remain subdued for a few weeks as "consumers who have recently purchased are unlikely to do so again in the short term", the WGC said.

There have been fears the tax increase could stoke under-the-counter buying in India, where millions of people store chunks of their wealth in bullion and jewellery.

>>>READ MORE<<<

IIT-Delhi gets 50 proposals for research on cow milk, urine, dung and ghee

The proposals from different academic and research institutions were made under the Scientific Validation and Research on Panchgavya

The Indian Insititute of Technology, Delhi, has received about 50 proposals for research on benefits of cow milk and urine, the government informed Parliament on Wednesday.

The government, however, said that it had not set up any panel to carry out research on cow derivatives. (economy news)

The proposals from different academic and research institutions were made under the Scientific Validation and Research on Panchgavya (SVAROP).

Minister of State for Science and Technology Y.S. Chowdhary said a national brainstorming-cum-consultative workshop on SVAROP was organised by IIT-Delhi, in which scientists and researchers from academic/reserach institutions and government agencies, including IITs, Ministry of AYUSH, Ministry of Science and Technology, and others participated.

"The Department of Science and Technology has constituted a National Steering Committee to initiate a national programme on SVAROP," Chowdhary said.

Full text of RBI policy: Repo rate cut by 25 bps to 6%

The MPC noted that inflation excluding food and fuel has fallen significantly over the past 3 months

economy news : The Reserve Bank of India on Wednesday cut its main policy rate by a quarter percentage point to a more than 6-1/2 year low after inflation slumped.

RBI cut its repo rate by 25 basis points to 6.00 per cent - the lowest since November 2010 - as a slump in food prices sent June consumer inflation to a more than five-year low of 1.54 per cent.

The MPC noted that some of the upside risks to inflation have either reduced or not materialised:

(i) the baseline path of headline inflation excluding the HRA impact has fallen below the projection made in June to a little above 4 per cent by Q4

(ii) inflation excluding food and fuel has fallen significantly over the past three months

(iii) the roll-out of the GST has been smooth and the monsoon normal. Consequently, some space has opened up for monetary policy accommodation, given the dynamics of the output gap. Accordingly, the MPC decided to reduce the policy repo rate by 25 basis points

Here is the full of text of 'Third Bi-monthly Monetary Policy Statement, 2017-18 Resolution of the Monetary Policy Committee (MPC) Reserve Bank of India':

On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the Monetary Policy Committee (MPC) decided to:

•reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 6.25 per cent to 6.0 per cent with immediate effect.

Consequently, the reverse repo rate under the LAF stands adjusted to 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.25 per cent......Read full article 

Arvind Panagariya quits NITI Aayog: Meet the advocate of growth-boosting policies

Rajasthan University product, presently Columbia Univ professor, considered an advocate of growth-boosting and market-oriented policies

Renowned Columbia University professor Arvind Panagariya will be the first vice-chairman of the newly created NITI Aayog (the prime minster will be chairman), at a time when the world is looking at India to shed years of slack economic growth.

His first big challenge will be to give a firm direction and focus to NITI Aayog, the first name being an acronym for National Institution for Transforming India. It is supposed to play a different role from the command-oriented Planning Commission of India.

A Business Standard columnist till now, Panagariya, in an article published in this newspaper on December 30, 2014, said the government’s real test would be in the next Budget document. And that without a clear road map of reforms in it, the dream of “good days” (acche din) might become history.  (economy news)

He’d also favoured a slight relaxation in the fiscal consolidation schedule when Finance Minister Arun Jaitley presented his maiden Budget six months earlier, to spur economic activities. A point also made in the Mid-Year Analysis for 2014-15, penned by Chief Economic Adviser Arvind Subramanian.

Panagariya, mentored by renowned trade economist Jagdish Bhagwati, was most recently credited as one of the brains behind labour law reforms in Rajasthan. He was vice-chairman of the Rajasthan chief minister's economic advisory council.

Born on September 30, 1952, he has been a supporter of the prime minister’s economic policies and openly spoken on the success of the latter's tenure as chief minister of Gujarat.... (READ MORE)

Demonetisation: RBI will give junked notes' figure after counting, says FM

Arun Jaitley says final figures will come out once the fake notes were weeded out

Finance Minister Arun Jaitley Tuesday said the RBI is in the process of counting scrapped currency notes and will come out with the final figures once the fake notes were weeded out.
Answering oft-repeated questions over the issue, he said in the Lok Sabha that the Reserve Bank had received the last tranche of scrapped currency notes of Rs 500 and Rs 1,000 only in July and the central bank would take time in counting the billions of notes.

Economy News policy

On November 8 last year, the government had scrapped high denomination currency notes of Rs 500 and Rs 1,000 which amounted to around 86 per cent of the currency in circulation.
Replying to a discussion on supplementary demands for grants in the Lok Sabha, Jaitley said one of the major benefits of demonetisation was squeezing of funds for terrorists in Jammu and Kashmir and naxalites in Chhattisgarh.

On questions regarding the amount of scrapped currency deposited back in the banks, the finance minister said, "Today they (RBI) have to count every currency note. They have to take the fake currency out...That exercise the RBI is taken to a very advanced level."

The minister said since March demands were being raised for disclosure of the amount of scrapped currency deposited in the banks but it can not be done over night.

"...I am hearing that argument 'tell us the currency'. Please study the subject closely. And therefore as soon as they (RBI) complete this exercise, the figure will be placed by them before the country along with the figure of fake currency," he added.....(READ MORE)

Doklam standoff: Does it make sense for India to mount barricades at Doklam?

If both sides do not fully explore a diplomatic resolution, a military confrontation may occur soon

The current standoff between India and China around Doklam in Bhutan could well turn into a military confrontation unless saner counsel prevails all around. The Chinese have held a live exercise in the Tibetan plateau and made it very clear that Indian withdrawal is a pre-condition for any talks. President Xi Jinping has made cryptic remarks about the Peoples’ Liberation Army defeating “all invasions”. Beijing has also explained its position to foreign diplomats and made it clear that its troops are being patient but will not be so indefinitely. Given the public posturing and rhetoric, it is clear that the Chinese side has said and done too much to pull back without a loss of face.

economy news 

India, too, has demonstrated its determination to not let China go ahead with construction of the road on territory that is seen as Bhutanese. The Modi government has explained its viewpoint in an all-party meeting. The main opposition parties have not questioned the government on this issue so far. All of them have publicly stated their support for the government, as it is ‘an issue of national security’. The government has also authorised the army to directly procure the spares, ammunition etc. required for a short war.

If both sides stick to their positions and do not fully explore a diplomatic resolution of the crisis, a military confrontation may become inevitable. As each side weighs its options, it is essential that India carefully assesses the costs and benefits of what may lie ahead if matters deteriorate.

Countries fight wars for military or political reasons. What would be India’s reason if conflict breaks out with China? Have Indian soldiers been sent to Doklam because not halting the Chinese at this point will irrevocably jeopardise the defences of India? If so, a war might perhaps be unavoidable. However, a reflection on the broad military situation is in order here.

The ‘Chicken’s Neck’ bogeyman

In various quarters, it has been said that the Chinese move to build a road in Doklam threatens the Siliguri corridor, which is the lifeline to the seven states of the Northeast. Is this really the case?

For China, any substantial success in the mountains is dependent on opening up a road axis. What is the strategic importance of Doklam from this perspective? Does Doklam give China a road axis to the Siliguri corridor, one which is not available elsewhere? It may be seen that a much better road axis is already available close by, where China is already sitting on a road head. Just a few kilometres from Doklam, the axis is already available: Yatung (Tibet)-Nathu La-Gangtok- Siliguri. China has been bringing convoys on this road up to Nathu La for decades now. The capture of Nathu La will provide multiple options with existing roads – to Gangtok or to Kalimpong – both further leading to Siliguri...... (READ MORE)

Govt's stand on driverless cars akin to opposition to computers in 1980s

Before India simply shuts the door on driverless cars, it needs to see the opportunities it offers

The Union Transport Minister Nitin Gadkari has gone all out to declare, “No driverless cars will be allowed in India". The National Institute for Transforming India (NITI Aayog) was established under the incumbent National Democratic Alliance (NDA) government in January 2015 as a premier policy think tank to encourage innovation in India and promote the country as a knowledge hub. Therefore, is Gadkari saying that innovation is not welcome in India?

Let’s rewind a little. When Rajiv Gandhi first introduced computers in 1985 to revolutionise India’s communication, he met with much criticism and opposition. Similar concerns were raised back then too. People feared the introduction of computers in offices and departments would kill thousands of jobs. (economy policy)

However, though thousands of jobs were killed, the introduction of computers also ended up creating millions of other jobs. Back then, nobody had imagined the number of jobs computers would create in the world. In fact, they continue to create jobs even today, for not just managing computers, creating software, analysing data but even in the area of information curation and dissemination. And the same will happen when, if ever, driverless cars come to India.

The present government, under its various innovative moves, introduced Digital India mission and has been pushing for Smart Cities, Green Cities, Skill India and Make in India since it came to power in 2014.

Even the previous government had taken some key steps in the direction by laying down the Science, Technology and Innovation Policy in 2013, aimed at strategically transforming various sectors. Around this time, last year, Prime Minister Narendra Modi had even called for “transformative changes” (rather than incremental) “with drastic policy reforms”.(READ MORE)

Over 21,00,000 Indians applied for H-1B visa in last 11 years: Report

On an average, their salary over the last 11 years has been USD 92,317 and an overwhelming majority of them are masters or bachelor's degree holder.

More than 21 lakh Indian technology professionals have applied for H-1B work visas in the last 11 years, an official report has said.

The report of the US Citizenship and Immigration Services (USCIS) has also refuted the impression that those who applied for the visa were not highly qualified.

On an average, their salary over the last 11 years has been USD 92,317 and an overwhelming majority of them are masters or bachelor's degree holder.

According to the report since 2007 till June this year, the USCIS received 3.4 million (34 lakh) H-1B visas applications, of which people from India accounted for 21 lakh. During the same period, the US issued H-1B visas to 26 lakh people, the USCIS said in its report, which however does not give countrywide breakdown.

In terms of number of H-1B applications between 2007 and 2017, India is followed by a distant China with 296,313 H-1B applications, Philippines (85,918), South Korea (77,359), and Canada (68,228). (ECONOMY & POLICY NEWS)

The report said majority (23 lakh) of the beneficiary of H-1B visas were in the age group of 25-34, and 20 lakh came from the computer related occupation category. Computer was followed by architecture, engineering, and surveying (318,670), education (244,000), administrative specialisations (245,000), and medicine and health (185,000).(READ MORE)

July factory activity contracts to 9-yr low on confusion over GST implementation

July brought the biggest month-on-month decline since November 2008, just after the collapse of Lehman Brothers triggered a financial crisis

Factory activity plunged last month and had its deepest contraction in more than nine years after Prime Minister Narendra Modi's new tax policy severely hurt output and demand, a survey showed on Tuesday.

The Nikkei/IHS Markit Manufacturing Purchasing Managers' Index fell to 47.9 in July from June's 50.9, its first reading below the 50 mark that separates growth from contraction since December and its lowest reading since February 2009.

A Reuters poll predicted a modest July dip to 50.8. But July brought the biggest month-on-month decline since November 2008, just after the collapse of Lehman Brothers triggered a financial crisis and brought on a global recession.

An output sub-index fell to 46.3, its lowest since early 2009, from 51.7 in June, while contractions were reported across all major sub-indexes in the survey, including new orders, purchasing activity and employment.

"The introduction of the goods and services tax (GST) weighed heavily on the Indian manufacturing industry in July," said Pollyanna De Lima, economist at IHS Markit.

"New orders and output decreased for the first time since the demonetisation-related downturn."

On Nov. 8, Modi stunned the country by ordering the removal of 500-rupee and 1,000-rupee notes, which removed about 86 percent of the currency in circulation and put activity on the skids in a predominantly cash-reliant economy.

Another huge change in India has been implementation of a national GST, which took effect on July 1. While the near-term impact is expected to be negative, the economy should reap benefits in the medium to longer-term, many analysts say.

(Economy news)

In July, a lack of clarity among producers on the new tax system hurt output even though factories cuts prices for their goods.

Even though input costs rose, firms cut prices to try and stimulate weak demand, suggesting retail inflation - which fell to a five-year low in June - is likely to remain subdued in coming months, adding pressure on the Reserve Bank of India to cut rates on Wednesday.

"The weakening trend for demand, relatively muted cost inflationary pressures and discounted factory gate charges provide powerful tools for monetary policy easing," said De Lima.

Foodgrain output rose 5 times in 60 years but farmers are still distressed

52% of India's agricultural households are indebted; with an average outstanding loan of Rs 47,000

 

 

India’s foodgrain production rose five times over six decades, according to 2016 government data, the latest available. But with the average Indian farm half as large as it used to be 50 years ago and yields among the lowest in developing economies, both the agriculture sector and farmers have been driven to the brink, shows an IndiaSpend analysis.

Output of foodgrains in India increased from 50.82 million tonnes in 1950-51 to 252.22 million tonnes in 2015-16, according to the Agriculture Statistics At A Glance 2016 report. Yield increased as well, from 522 kg per hectare (ha) in 1950-51 to 2,056 kg/ha in 2015-16.

 Source: Agriculture Statistics At Glance 2016

Though it is the largest producer of pulses in the world, India’s pulses crop yield (659 kg/ha) was the lowest among BRICS countries in 2014.

Cereal yield in India was the second lowest in the BRICS list, above Russia (2,444 kg/ha), according to Food and Agriculture Organisation’s 2014 data, the latest available. China reported the highest yield of cereals (5,888 kg/ha) and pulses (1,725 kg/ha) among BRICS nations.

(economy news )

Why is India’s agriculture growth volatile?

India’s agriculture growth rate has been volatile, from 1.5% in 2012-13 to 5.6% in 2013-14, -0.2% in 2014-15 to 0.7% in 2015-16......

The primary reason, as we discussed, is that more than half of India’s farms still depend on the
monsoon, increasingly uncertain in an era of climate change. Climate change can impact crop yields, as well as the types of crops that can be grown in certain areas, by impacting agricultural inputs such as water for irrigation.
Yields in rainfed areas remain low, underscoring the importance of irrigation in the country. Similarly, rising temperatures are likely to worsen yield fluctuations of many crops, the agriculture report said.
Yield can be achieved by adopting non-conventional methods such as sprinkler, drip or micro-sprinkler irrigation, said the report.....

Average farm holding shrinks by half over 50 years
The size of the average farm holding in India declined from 2.28 hectares in 1970-71 to 1.15 hectares in 2010-11. These small and marginal l....(read more)

 

Bollywood actor Inder Kumar dies of cardiac arrest at 44

He has worked in more than 20 films

Bollywood actor Inder Kumar has passed away early Friday morning.

The 44-year-old actor suffered a heart attack at his residence in Four Bungalows, Andheri, Mumbai, at around 2 am.

He has worked in more than 20 films. Inder also shared the screen space with Salman Khan in movies like 'Wanted' and 'Tumko Na Bhool Payenge'.

The star was currently busy shooting for his upcoming movie 'Phat Paid Hai Yaar'.

The cremation will be held today evening at Yaari Road Shamshaan Bhoomi.

 

With own flag, Karnataka will be dutiful, but not silent, daughter of India

The demand for a flag follows a re-assertion of Kannada pride in the state in the last half decade

The current Karnataka State Anthem, Jaya Bharata Jananiya Tanujate written by KV Puttappa reads in translation as, “Victory to you Mother Karnataka, the daughter of Mother India! Hail the land of beautiful rivers and forests, hail the abode of saints!” 80-year-old Vasanthi Hegde, mother of one of the authors, remembers an earlier anthem from her schooldays which went "Udayavagali namma Cheluva Kannada Nadu", which loosely translates as "may our dear Kannada Land arise and dawn".

economy news

It took many years for that dawn to arrive. During British rule, areas that now comprise Karnataka were under 20 different administrative units. The princely state of Mysore, the Nizam's Hyderabad, the Bombay Presidency, and the Madras Presidency were among the prominent ones. The physical boundaries of the modern day Karnataka were created during the linguistic reorganization in 1956. However, the quest for building a common identity continued, even after unification.

ALSO READ: China And India File Rival Claims Over Tibetan Medicine

This was largely because people from the now merged areas, spoke different languages. Kannadigas in Hubli, that was earlier under the Bombay Presidency, also spoke Marathi. Urdu was often the dominant language in the Hyderabad region. Tuluvas in South Canara came from Madras Presidency which used Tamil as the main language. Further, Bangalore’s growing cosmopolitan posed a challenge to the Kannada language in the 1960s. Theatres patronized non-Kannada films.....(READ MORE)

 

One month of GST: Doing business more complicated than ever

Ambiguous rules, multi-rate sales tax have left firms confused on how to price their products

Tax crash course
New Delhi has launched an active outreach programme to educate companies and explain different provisions of the new tax. The exercise has also become a crash course for tax officials in the anomalies of the new tax structure.
Officials have discovered that holiday tour operators are charging the new tax not only for services provided in India but also for those offered abroad.
While vegetable seeds remain tax exempt, paddy, cereal and corn seeds now attract 5 per cent tax. This has hit sales at companies such as Monsanto, whose local seed merchants have no experience of paying tax.
"Our sales are getting hammered at a time when they would normally be booming," Arindam Lahiri, Monsanto's taxation lead in Asia & Africa, told Reuters. "This anomaly needs to be fixed urgently."
Revenue Secretary Hasmukh Adhia, overseeing the GST rollout, tweeted this week that nearly 8 million businesses were enrolled to pay the tax and the transition "is going on smoothly". He did not respond to a request for comment.
But for some companies, it has been anything but smooth...
(READ MORE)

Opposition to FM Jaitley: Scrapping Rs 2,000 note, bringing Rs 1,000 coin?

However, Jaitley did not respond even as the Opposition members insisted on clarification in RS

The Opposition in Rajya Sabha on Wednesday asked Finance Minister Arun Jaitley to clarify whether the government has decided to scrap the newly launched Rs 2,000 note and introduce a Rs 1,000 coin.

However, Jaitley, who was present in the House, did not respond even as the Opposition members insisted for clarification from him on the issue.(economy news)

Raising a point of order during the Zero Hour, Naresh Agrawal (Samajwadi Party) said: "The government has taken a decision to scrap Rs 2,000 note. The RBI (Reserve Bank) has been given order not to print the Rs 2,000 notes... If any policy decision been taken during the Parliament Session, the tradition is to announce it in the House."

So far, the RBI has printed 3.2 lakh crore pieces of Rs 2,000 notes. "And now it has stopped printing... RBI cannot bully. One note ban has been done, the second one is being planned. Let the Finance Minister say..," he said.

To this, Deputy chairman P J Kurien said, "that is RBI's action."

Agrawal then said that the earlier note ban decision was taken by the government and not the RBI. "The RBI board had opposed it but the government took the decision. The earlier decision (of demonetisation) was taken by the government, the second one is also from the government," he said.
Echoing his views, Leader of Opposition Ghulam Nabi Azad too sought clarification from the government on whether it was planning to introduce Rs 1,000 coins.

"Every day we read about a coin of [Rs] 1,000, 100 and 200. What is the actual status? Are we to go by what media is writing? The House is to be enlightened by the Finance Minister. What is the truth," he asked.

"Are we going to have [a] coin of Rs 1,000 coin. To carry coins, we have to purchase a bag? We must know. Our sisters have the purse. We shall also have to buy [a] purse just to carry the coins of Rs 1,000 (denomination)," he said and added that there was no politics in this issue.

Tiruchi Siva (Dravida Munnetra Kazhagam) said he cannot dispense with the media reports completely and sought clarification from the government on the issue.

Janata Dal (United) MP Sharad Yadav said the issue was serious as the rumours are strong, adding that the government should clarify and stop the rumours or else people will start returning Rs 2,000 notes.
 

Mr Gadkari, allowing driverless cars will generate more high-paying jobs

Autonomous vehicles are the logical next step for cab aggregators like Ola and Uber

economy news: Nagpur, the home town of Union Transport Minister Nitin Gadkari, is now a laboratory to test electric vehicles for public transport in India.

Cab aggregator Ola is testing a model that uses electric auto rickshaws, cars, and buses to make adoption of electric vehicles for mass transport viable. If the Nagpur experiment succeeds, Ola will execute the promise by its investor, Japanese internet firm Softbank, of running over a million electric vehicles across India. This vision requires massive investments in cars, buses, and the charging infrastructure. In addition, investments are also required in batteries, which India currently imports.

Both Ola and Uber have an asset-light model — they don't own the cars that run on their platforms. Instead, the cars are leased by the drivers, who repay the loans, spend on maintaining the cars, and then earn enough to fend for themselves. In scale, electric cars have better efficiency and are cheaper to run for more miles than fossil fuel-powered cars.

Till 2016, Ola and Uber splurged billions to woo thousands of drivers to their respective platforms. However, as the taps turned dry and investors pushed them towards profitability, they cut incentives for the drivers and increased prices. This move saw several thousand drivers and customers move away from the respective platforms. There are hundreds of cars on sale now as drivers are finding running on either platform unviable.

The country has seen a spate of protests from drivers seeking government intervention. In this context, Gadkari's statement that driverless cars will not be allowed in India in order to save jobs appears to be aimed at pacifying the unrest among drivers.

The electric cars vision is nice till Ola reaches a certain scale. Ola needs to make profits for itself and its investors. When the network effect comes into play, the winner dominates the market and the runner up becomes a distant second. Google and Facebook have become monopolies because of this network effect — the more users a company has, the harder it will get for rivals to compete with it.

So, after ensuring that there are thousands of electric vehicles on Indian roads and make it a habit for users to use their platform like they did for diesel run cars, their next logical move would be to look at autonomous vehicles.

(READ MORE)

Benami property: Aadhaar-PAN link opposed in name of privacy, says Jaitley

Arun Jaitley said, 'People should voluntarily made disclosures and come within the tax net'

Economy news : Finance Minister Arun Jaitley Monday said example needs to be set to create a deterrent ag the inst use of anonymous people to hide ill-gotten wealth, amid some politicians and their family members coming under the scanner for alleged benami deals.

Referring to opposition of PAN-Aadhaar linkage, he said it is an "effective anti-evasion measure" and will get rid of multiple PAN cards and mismatch in income and expenditure, but it is being opposed "in the name of privacy".

He also said that the government is using technology to reduce the interface between a tax department official and the taxpayer to not just cut compliance cost but also corruption and harassment.

Addressing tax officers at the Income Tax Day event here, he said that tax rates have to become more reasonable but for that to happen, the tax base has to be widened by including more people in the net.

"These days we are finding political leaders also resorted to (benami dealings)," he said, without naming anyone. "Therefore (we are) unearthing them."

He said the government has taken steps under the stringent Benami Transactions (Prohibition) Amendment Act, 2016 that provides for confiscating properties of those who use name of other people to convert unaccounted wealth into white.

"Unless we can set some examples, we set down right deterrent against such kind of practices" can this practice of benami properties end, he said.

Raids were conducted in recent weeks at various places including Delhi and Haryana over alleged Rs 1,000 crore benami land deals involving the RJD chief and his family.

Jaitley said that the situation where the compliant tax payer has to actually pay twice over -- once his own share of taxes and the second time a higher share to compensate the non-compliant, cannot be allowed.

"Our vision is: we will use technology, we will ensure that our procedure is simple, we will ensure that there is almost negligent interface between (tax) department and assessee, (and) we would like our rates to become even more reasonable, but to enable us to that we need to expand our base," he said.

People should voluntarily made disclosures and come within the tax net, he said.

India, on the one hand, boasts of being the fastest growing major economy in the world but on the other hand lacks in some of the essential expenditure, he said.

"A more empowered country will need to be a country which is empowered by honest and compliant taxpayers. The faster we can do it, the greater it will be in the larger interest of the country," he said. 

(READ MORE)

 

Harassed at workplace? Govt launches 'SHe-box' portal for sexual assaults

The sexual harassment electronic box will be made as 'interactive' as possible

 

The Women and Child Development ministry Monday launched an online platform to enable women employees of the central government to file complaints related to sexual harassment at the workplace.

"We are also going to soon conduct a national survey to assess the nature and magnitude of sexual harassment at the workplace," Union minister Maneka Gandhi said after launching the portal at her office here.

The WCD minister also instructed officials to make the 'SHe-box' (sexual harassment electronic box) as "interactive" as possible.

"To begin with, central government women employees can file complaints, but we are going to widen the ambit to include the private sector as well," she said.

"We just need to make a few changes in our online interface. Once it is done, employees from private companies would also be able to lodge complaints," Gandhi added.

The decision to host an online platform for sexual harassment cases was taken by the WCD ministry last October after the minister received complaints from women employees in various ministries.