1. India Improves in Global Competitiveness Index
India’s ranking in the Global Competitiveness Index for 2016-17, released by the World Economic Forum (WEF), improved 16 places to 39, making it the fastest riser up the ranks among 138 countries surveyed.
India’s competitiveness improved across the board, particularly in goods market efficiency (60), business sophistication (35) and innovation (29). WEF said recent reform efforts by the government have concentrated on improving public institutions (up 16 places), opening the economy to foreign investors and international trade (up 4), and increasing transparency in the financial system (up 15).
Source: Livemint
2. Incensed India Pulls Out of SAARC Summit
India pulled out of the South Asian Association for Regional Cooperation (SAARC) summit to be held in Islamabad in November, automatically forcing its postponement.
The move is aimed at undermining Prime Minister Nawaz Sharif’s stature and marks his country’s isolation in the region with other member nations rallying in support of India.
External Affairs Ministry spokesperson Vikas Swarup in his statement didn’t name the countries but ET gathered that Afghanistan and Bangladesh, two other members that have accused Pakistan of interfering in their internal matters, have backed India’s decision to pull out of the summit, which was to be held on 9-10 November. Bhutan has also extended support, officials said.
Source: The Economic Times
3. Anil Ambani Spells Out His Defence Foray; Deleverages Reliance Infrastructure
Reliance Defence is one of the only two companies which qualified for an order from the Defence Ministry for six submarines worth more than Rs 60,000 crore, as part of the submarines programme of the Government of India.
In January, Reliance Infrastructure took over the complete control of the management and control of Pipavav Defence & Offshore Engineering Co (PDOC) now called as Reliance Defence and Engineering.
The company has signed two joint ventures with two Israeli companies – Rafael to make missiles for the Indian Armed Forces, and Elbit to focus on homeland and border security. With these partnerships, Ambani expects to bring world class infrastructure in defence.
Source: BloombergQuint
4. Army Grappling with Arms Shortage, Delay
India’s combat effectiveness is less than it should be, a fact that needs to be highlighted especially as the government reconsiders its Pakistan policy.
The army needs basic items like assault rifles as well as high-end anti-aircraft missile systems. There are enormous delays in the acquisition processes for these. The Defence Ministry failed to spend the full budget outlay on modernisation plans which led to a cut in budget allocation for military capital spending in 2016-17.
Many senior officers said the continuing battles over pay and pension are taking their toll on morale, including in the upper reaches of forces.
Source: The Economic Times
5. Monetary Policy Committee to ‘Meet Before 4 October’ Rate Decision: Shaktikanta Das
The Monetary Policy Committee (MPC), which was appointed last week, will meet before the Reserve Bank of India’s policy review on 4 October, said Shaktikanta Das, economic affairs secretary, Government of India on the sidelines of an event in Mumbai.
“Yes, certainly, the MPC has been constituted and it is our expectation and I’m quite sure... Before 4 October the MPC will certainly meet and the committee will give their recommendations, based on which the RBI will take a decision,” Das said. He didn’t specify whether the MPC would actually vote on the monetary policy decision this time.
Source: BloombergQuint
6. Reliance Jio vs The Rest: Trai Calls Meeting on 30 September
India’s telecom regulator has called for a meeting on 30 September to discuss alleged violations of tariff norms by Reliance Jio Infocomm Ltd (R-Jio) as the fight between incumbent telcos and the aggressive new entrant moves to another stage.
The dispute is likely over R-Jio’s offer of free data to customers till the end of the year. The incumbents claim that under current tariff norms, a telco can’t offer freebies beyond 90 days.
On Tuesday, a top Telecom Regulatory Authority of India (Trai) official said on condition of anonymity that incumbent telcos have blocked calls from the R-Jio network to theirs, based on data submitted by them.
Source: Livemint
7. Spectrum Fees Leave No Money in Shareholders’ Pockets
The telecom sector may have become a golden goose for the exchequer, but shareholders of telcos made no money from their investments.
In the seven years since the 2010 3G spectrum auction, the central government has earned around Rs 2.83 lakh crore worth of non-tax revenues from telecom operators, but the combined market capitalisation of listed firms has been stagnant.
Source: Business Standard
8. SEBI, FinMin Draw Road Map for Commodities Market
Securities and Exchange Board of India (SEBI) chairman UK Sinha on Tuesday met with finance ministry officials and discussed the major reforms required to strengthen the commodity market, said sources in the know.
The SEBI Chief told the ministry that its immediate priority is to bring the commodities derivatives market at par with the securities market. The regulator intends to introduce new products and categories, including options trading, to ensure better liquidity and fair price discovery.
Source: Business Standard
9. Law to Empower PSU Bankers in Final Stages: Arun Jaitley
A law which will empower bankers at state-owned lenders to take decisions without fear of consequences (including the threat of investigation by federal agencies) is currently in its final stages of drafting and will reach Parliament shortly, Finance Minister Arun Jaitley said on Tuesday.
According to the Finance Minister, while a lot has been done to ensure greater level playing field between public sector and private sector bankers, the former are constricted by “obsolete laws”.
Source: Livemint
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)