1. WEF Ranks India 30th on Global Manufacturing Index, Japan Tops
The World Economic Forum (WEF) has ranked India at 30th position on a global manufacturing index—below China’s 5th place but above other BRICS peers, Brazil, Russia and South Africa.
Japan has been found to have the best structure of production in the Geneva-based WEF’s first ‘readiness for the future of production report’ and is followed by South Korea, Germany, Switzerland, China, Czech Republic, the US, Sweden, Austria and Ireland in the top 10.
(Source: PTI)
2. Tax-Free Rs 20 Lakh Gratuity for Employees a Reality Soon
Payment of Gratuity Amendment Bill 2017 is likely to be passed in the forthcoming Budget session, which will make formal sector workers eligible for tax free Rs 20 lakh gratuity.
At present formal sector workers with five or more years of service are eligible for Rs 10 lakh tax free gratuity after leaving job or at time of superannuation.
"The Payment of Gratuity (Amendment) Bill, 2017 will be passed in the Budget session of Parliament, expected to begin by the end of this month," a source said.
The source further said, "The government wants to provide tax free gratuity of Rs 20 lakh to organised sector workers at par with Central government."
(Source: PTI)
3. Idea Cellular, Vodafone May Start Operating as One Entity from April
Idea Cellular Ltd and Vodafone Group Plc’s Indian unit are likely to start operating as a single unit from April, two people aware of the matter said.
The two companies, which are currently negotiating one of the most complex mergers in India, will create the world’s second largest and India’s largest telecom operator, surpassing Bharti Airtel Ltd, post completion of the merger process. It will have almost 400 million customers with 35 percent customer share and 41 percent revenue market share. It will have a revenue of Rs 81,600 crore and an operating profit of Rs 24,400 crore.
(Source: Livemint)
4. GDP Growth Not Justifiable Unless Benefits Reach Farmers: Arun Jaitley
Ahead of the budget, Finance Minister Arun Jaitley today said the agriculture sector is the top priority for the government because the country's economic growth is not "justifiable and equitable" unless the benefits are "clear and evident" in the farm sector.
Therefore, the government's priority is to ensure the gains reach the farmers and the growth is visible even in the farm sector, he said at an event here.
As per latest Central Statistics Office (CSO) data, the country's economic growth is expected to slow to a four-year low of 6.5 percent in the 2017-18 fiscal, the lowest under the Modi-led government, mainly due to poor performance of agriculture and manufacturing sectors.
(Source: The Economic Times)
5. SEBI Plans Rules for Uniform Pricing of Bonds
To deepen the corporate bond market, regulator SEBI plans to come out with a methodology for uniform valuation of such products across the financial sector, said officials.
The Securities and Exchange Board of India is closely working with the Reserve Bank of India in this regard.
According to officials, the market regulator will come out with the framework for ‘one single price’ of corporate bonds across the financial sector next month after the Union Budget. It will make uniform rules for calculation of interest and redemption payments on bonds.
(Source: PTI)
6. Small Ticket Affordable Housing Loans At Higher Risk Of Turning Bad, RBI Says
The government’s affordable housing push has led to a sharp rise in disbursement of home loans up to Rs 2 lakh, but this segment has also seen higher delinquencies, according to a Reserve Bank of India report titled ‘Affordable Housing in India’. The report was released along with the central bank’s monthly bulletin on 10 January.
According to the report, the percentage of non-performing assets for housing loan up to Rs 2 lakh, granted by public sector banks and housing finance companies, stood at 10.4 percent in 2016-17. A year ago, bad loans in this segment stood at 9.8 percent. Delinquencies in this segment are the highest among home loan slabs and also well above the average for the home loan market.
NPAs were the lowest in the housing loan slab of over Rs 25 lakh, at 0.9 percent, the report added.
(Source: BloombergQuint)
7. Commerce Ministry Panel's Proposal to End MAT on SEZs Under Review
The minimum alternate tax levied on special economic zones (SEZs) that hit fresh investments in the scheme is under review. A panel appointed by the commerce department had recommended removal of MAT for manufacturing units and zones to boost exports as well as job creation in the country.
"The recommendations of the report are being examined," said a government official, who did not wish to be identified. A final call on the proposal will be taken in the budget keeping in view revenue implications and benefit that may accrue to the country in terms of manufacturing boost and jobs, the official said. Finance minister Arun Jaitley will present his fifth budget and the last full one of this NDA government on 1 February. ET had earlier reported on the recommendations of the panel set up to review the SEZ norms.
(Source: The Economic Times)
8. Doing Business Rankings Based on Hard Data: Word Bank
With its own chief economist raising doubts over 'doing business' rankings of certain countries, World Bank has said ranking indicators and methodology are designed with no single country in mind and rankings are based on "hard data."
The World Bank's chief economist Paul Romer told The Wall Street Journal on Friday that the organisation changed the methodology of its 'doing business' rankings in ways that were unfair and misleading, and the organisation will recalculate the rankings for at least the past four years.
"We treat all countries equally in our research, and the Doing Business indicators and methodology are designed with no single country in mind but so that the overall business climate can be improved," the World Bank said in a statement.
(Source: PTI)
9. Crackdown Against Black Money to Span Cryptocurrencies Too
In order to regulate the trade of cryptocurrencies such as Bitcoins in the country, the Indian government has formed a committee to fast-track the process and form a law for the same, according to Hindustan Times. This step follows the Indian authorities’ apprehension that black money is being used to trade in cryptocurrencies. The committee has representation from the departments of economic affairs, tax and from the RBI and the ED.
A government official was quoted as saying by Hindustan Times that the law on cryptocurrency will address two main concerns. “The source of money being used to trade in them and regulation of exchanges of virtual currencies to protect the common man are the main concerns,” said the government official.
(Source: Financial Express)
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