Today's News in Media - 22-08-2016
Ftapcci Hyd
Dear all,
BANKING
Urjit Patel may prove to be Rajan redux
Reserve Bank Deputy Governor Urjit Patel is unlikely to pursue
policies that are different from those of his boss Raghuram Rajan, whom he will
replace as the central bank’s chief next month. Like Rajan, Patel will
likely stand up to the clamour to cut interest rates every time inflation edges
lower.Patel, who holds a PhD in Economics from Yale University and has had
stints with the International Monetary Fund, the Ministry of Finance and the
private sector, will take charge as the RBI’s 24th Governor on September
6. The appointment, for a three-year term, is a clear signal that the
government favours continuity in policy-making at the central bank.He will
assume office at a time when inflation — excluding food and fuel —
may trend upwards; repayment of Foreign Currency Non-Resident (B) deposits will
begin next month; balance-sheet clean-up of banks’ is still ongoing; and
international developments such as Brexit may pose some risks in the short
term.
http://www.thehindubusinessline.com/todays-paper/urjit-patel-may-prove-to-be-rajan-redux/article9015532.ece
Urjit Patel promises to live up to expectations
Hours after being appointed as 24th RBI Governor, Urjit Patel
promised to give his best in the new role and live up to people’s
expectations.“Thank you everyone for your warm wishes! I will give my
best to live up to the expectation of people,” Patel tweeted.Patel is the
eighth Reserve Bank of India (RBI) Deputy Governor to be promoted as Central
Bank chief.Finance Minister Arun Jaitley on Saturday expressed confidence that
Patel would contribute to India’s economic development and successfully
steer the Reserve Bank.“Congratulations to Urjit Patel on being appointed
as Governor of RBI. I am sure he will successfully lead the Reserve Bank &
contribute to India's economic development,” Jaitley tweeted.Revenue
Secretary Hasmukh Adhia called up Urjit Patel to convey his best wishes to the
new RBI Governor. “Congratulations to Urjit Patel on becoming RBI
Governor. I wish him all the best,” Adhia tweeted.Meanwhile, Michael
Patra, who is currently an Executive Director of RBI in charge of monetary policy,
is being seen as frontrunner to succeed Patel as Deputy Governor.
http://www.thehindubusinessline.com/todays-paper/tp-news/urjit-patel-promises-to-live-up-to-expectations/article9015550.ece
Poor Internet access a hurdle to rural banking: Bandhan Bank
Internet connectivity is one of the biggest challenges facing the
country’s youngest bank, Bandhan Bank Ltd., as it opens new branches
across states, Chandra Sekhar Ghosh Founder, Managing Director and CEO said.The
bank completes a year of operations next week and has a presence in 50,000
villages through its 701 branches. “Currently, 33 per cent of our
branches are in rural areas, some of which were un-banked ones,” he said
in an interview. Poor Internet connectivity in the rural and semi -urban
branches was one of the biggest hurdles in extending banking services.
http://www.thehindu.com/todays-paper/tp-business/poor-internet-access-a-hurdle-to-rural-banking-bandhan-bank/article9015759.ece
AGRICULTURE
Green shoots sighted in farm sector growth
After two rain-deficit years, bountiful showers this year have
brightened the prospects of strong farm sector growth. This is likely to add a
percentage point to the growth in GDP.“Agriculture growth will be at 6
per cent this year,” NITI Aayog Member Ramesh Chand toldBusinessLine here, commenting on the progress of
the monsoon and kharif sowings.“The robust growth in agriculture can add
up to 1 percentage point to the overall economic growth,” Chand
added.Widespread monsoon rains have boosted the planting of key kharif crops
such as rice, pulses and oilseeds, raising the prospects of a good harvest.
This is expected to ease food inflation, lift farm income and boost
consumption, aiding overall economic growth.The Finance Ministry is expecting
the economy to grow at 7.5 to 8 per cent this financial year. Weak monsoons in
the past two years had dragged down farm sector growth to 1.2 per cent in
2015-16 and -0.2 per cent in 2014-15.
http://www.thehindubusinessline.com/todays-paper/green-shoots-sighted-in-farm-sector-growth/article9015531.ece
MARKET
Markets set to open higher
Urjit Patel’s appointment as Reserve Bank Governor signals a
continuity in the central bank’s policy, a development that the Indian
equity market is likely to embrace when it opens on Monday, two days after the
Centre made the announcement. It is no secret that markets detest uncertainty
and sudden change in policies; the Deputy Governor replacing his boss Raghuram
Rajan thus ensures the continuity of policy and ideology that the bourses
desire. “Institutional investors, both domestic and foreign, would welcome
Patel’s government’s appointment as successor to Raghuram Rajan. It
signals a seamless continuity in the policies pursued by the RBI to conduct its
monetary policy in an independent manner. Markets would strongly cheer the
appointment,” said Ajay Bodke, CEO and Chief Portfolio Manager - PMS,
Prabhudas Lilladher.
http://www.thehindubusinessline.com/todays-paper/markets-set-to-open-higher/article9015533.ece
EXPORT
‘Export sops may go, post GST implementation’
Some exemptions and incentives given for promoting exports may be
done away with once the Goods and Services Tax (GST) comes into effect, Union
Commerce Secretary, Rita A Teaotia, said here on Saturday.The Commerce
Secretary was speaking to the exporters community at a joint session organised
by EEPC, FIEO, GJEPC, Bengal Chamber of Commerce and Industry and
Assocham.According to her, exemptions and incentives and GST do not go hand-in-
hand with one another. It was a basic contradiction.“Exemptions and
incentives those are the things that should go away. For when you are creating
a level playing field you are not creating more complications giving scope for
arbitrage. As a philosophy we are moving away. We cannot have the GST and more
and more incentives and exemptions. It won’t happen. It is a
contradiction,” Teaotia said.T aims at a minimum duplication of levies,
charges and so on. In a fragmented system, there are cascading taxes. But GST aims
at creating a level playing field, she reiterated.Asked to specify the probable
exemptions that can be done away with once GST comes into effect, the Commerce
Secretarty said: “I am not going to go down that road. We are also not a
department (the commerce department) which is framing that law. We are actually
giving our inputs.”
http://www.thehindubusinessline.com/todays-paper/tp-news/export-sops-may-go-post-gst-implementation/article9015560.ece
GST
GST regime should tax cigarettes more
An ideal standard rate for the Goods and Services Tax (GST) is
still being hotly debated in policy circles. However, it is important to know
whether this standard rate will be applied to all goods and services, including
demerit goods such as cigarettes. The economic costs attributed to tobacco
related diseases amounted to Rs. 1,045
billion in 2011, according to a report by the ministry of health. Nearly a
million deaths per year are also attributed to tobacco use in India.
http://www.thehindubusinessline.com/todays-paper/tp-opinion/gst-regime-should-tax-cigarettes-more/article9015585.ece
INFORMATION TECHNOLOGY
Software that can change a city
For making a city vibrant with high living standards and the next
big effort is not just towards becoming a smart city but also a carbon-neutral
city where every citizen has a role. It is no concept paper of smart city
project which the Central government is trying to implement, but a
‘live’ programme soon to be ushered in in Copenhagen.Denmark’s
capital is going to implement a software module, which is still in planning
stage here, in its entirety.It’s developed by Hitachi Consulting, an IT
company based in the city.For little more than a year, it has been involved in
developing an integrated data service of smart lighting, sensor-based traffic
management, intelligent building management, etc. for the city.The concept
emerged out of a meeting of cities, companies and universities by the Danish
green technology network ‘CLEAN’ in 2014, and the city aimed at
becoming carbon-neutral city by 2025.
http://www.thehindu.com/todays-paper/tp-national/tp-telangana/software-that-can-change-a-city/article9016288.ece
ELECTRONICS MANUFACTURING POLICY
Electronics manufacturing policy may soon get nod
NITI Aayog may seek Cabinet’s approval in a fortnight for a
long-term policy to boost manufacturing of electronic products by providing a
host of incentives to attract investment. “NITI Aayog has almost
finalised a policy for encouraging manufacturing of electronics in the country,
which is likely to be placed before the Union Cabinet for its approval,”
a source said. In view of great potential of electronics manufacturing sector,
NITI Aayog has prepared a draft strategy paper titled ’Make in
India—Strategy for Electronic Products.’
http://www.thehindu.com/todays-paper/tp-business/electronics-manufacturing-policy-may-soon-get-nod/article9015767.ece
START-UP HUB
India is world’s third biggest tech start-up hub: Assocham
study
India is home to the third largest number of technology-driven
start-ups in the world, with the U.S. and the U.K. occupying the top two
positions, according to a report.The study, done by Assocham with Thought
Arbitrage Research Institute, also revealed that Bengaluru is host to the
largest share of technology start-ups in the country, followed by Delhi NCR and
Mumbai, while Hyderabad and Chennai are also quite popular. “India has
moved up to third position in technology driven start-ups numbering 4,200 up to
2015, with the U.S. occupying the top position with more than 47,000 and the
U.K. with over 4,500.
http://www.thehindu.com/todays-paper/tp-business/india-is-worlds-third-biggest-tech-startup-hub-assocham-study/article9016024.ece
STATE
Punjab farmers want crop insurance only if it is a freebie
The Punjab government led by Shiromani Akali Dal — a strong
ally of the BJP both at the Centre and State level — has been unable to
persuade its farmers to get covered under the PM’s Fasal Bima Yojana
(PMFBY) as they demand that the entire insurance premium should be paid by the
government.“While opposition-ruled Bihar decided to join in despite
taking a long time to make up its mind, Punjab —a BJP ally — has
not notified the scheme because of the disinterest of its farmers. It is up to
the state to decide whether it would want to take on the farmer’s share
of the premium in addition to paying half the subsidy,” an official told BusinessLine .
http://www.thehindubusinessline.com/todays-paper/tp-news/punjab-farmers-want-crop-insurance-only-if-it-is-a-freebie/article9015561.ece
Kerala welcomes investors with both hands, says CM
Chief Minister Pinarayi Vijayan has said that Kerala is
industry-friendly and investors need not harbour any fears about committing
their money in the state.He said this after laying the foundation stone for the Rs. 2,000-crore Lulu Mall,
Thiruvananthapuram, purported to be the country’s second largest after
the Lulu Mall in Kochi.Promoted by NRI billionaire MA Yusuff Ali, the Lulu
Mall, Thiruvananthapuram, is coming up on 20 acres of land by the side of the
National Highway bypass at Akkulam here.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/kerala-welcomes-investors-with-both-hands-says-cm/article9015597.ece
‘Startup centres of excellence’
Recently launched SV.CO, purportedly the world’s first
digital incubator for students, will help engineering colleges become startup
centres of excellence. SV.CO is a digital makeover of the Startup Village,
Kochi, which is India’s first PPP model technology incubator. It has
already launched a #StartInCollege programme to select 50 student teams from
across the country to build products and launch to early customers in six
months.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/startup-centres-of-excellence/article9015598.ece
Modi to inaugurate SAUNI scheme in Rajkot on Aug 30
Gujarat Chief Minister Vijay Rupani has announced plans to fill 10
dams in the Saurashtra region with the Narmada waters through the network of
canals under the SAUNI Yojana. It will be inaugurated by Prime Minister
Narendra Modi in Rajkot on August 30.Addressing a gathering in his hometown
Rajkot on Saturday, Rupani said 10 dams of the region will be overflowing when
the Prime Minister arrives to inaugurate the dedicated water and irrigation
scheme, Saurashtra Narmada Avtaran Irrigation (SAUNI) Yojana.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/modi-to-inaugurate-sauni-scheme-in-rajkot-on-aug-30/article9015570.ece
Pact with Maharashtra will be historic, says Vinod Kumar
The signing of an agreement with Maharashtra scheduled on August
23 over construction of five barrages by Telangana across Penganga, Pranahitha
and Godavari rivers will be a historic day for the people of the State,
according to Telangana Rashtra Samithi (TRS).Party Member of Parliament of
Karimnagar, B. Vinod Kumar, said here on Sunday that the barrages have the
potential to bring a green revolution in Telangana by irrigating parched lands
with the help of water flowing waste into the sea.
http://www.thehindu.com/todays-paper/tp-national/tp-telangana/pact-with-maharashtra-will-be-historic-says-vinod-kumar/article9016300.ece
From Rajan to Urjit: the change is seamless
The appointment of Urjit Patel as Raghuram Rajan’s successor
at the Reserve Bank of India should come as salve to all those hurt and peeved
by the circumstances of Rajan’s exit, including the markets. Patel is a
worthy successor to Rajan, at least as far as academic accomplishment and
professional pedigree go. What’s more, he’s been Rajan’s
trusted lieutenant at the RBI.Indeed, Patel ticks off all the right boxes for
analysts, markets and even critics of the Government. He’s an economist
with an Oxford-Yale-IMF background, he’s spent time both with the
Government in Delhi and at the RBI earlier in advisory roles, and as an
incumbent deputy governor in charge of the important monetary policy division,
Patel’s appointment represents continuity at the top of the central bank.
http://www.thehindubusinessline.com/todays-paper/tp-opinion/from-rajan-to-urjit-the-change-is-seamless/article9015584.ece
An open-minded economist, he makes quick decisions, say
Patel’s colleagues
Urjit Patel is the second person in the country to become the
Reserve Bank of India Governor directly, from being a deputy governor. C.D.
Deshmukh was the first deputy governor to be promoted to the central bank
chief’s post, in 1943. Mr. Patel will take over the mantle from Mr.
Raghuram Rajan in early September, when the latter’s tenure ends.An big
advantage in appointing Mr. Patel as the RBI governor is that he knows the
system and its people, sources in the central bank said.
http://www.thehindu.com/todays-paper/tp-business/an-openminded-economist-he-makes-quick-decisions-say-patels-colleagues/article9015758.ece
RBI, Nabard staff to join strike on Sept 2
Employees of the Reserve Bank and the National Bank for
Agriculture and Rural Development (Nabard) will join the strike called by
central trade unions and federations on September 2.The RBI unions have put
forward a charted of demands, prominent among which relates to the
Centre’s proposed labour law reforms, said Samir Ghosh, general
secretary, All-India Reserve Bank Employees Association, and SV Mahadik,
general secretary, All-India Reserve Bank Workers’ Federation.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/rbi-nabard-staff-to-join-strike-on-sept-2/article9015571.ece
EPFO investments in ETFs to rise
Union Labour Minister Bandaru Dattatreyasaid that EPFO would raise
proportion of its investments in exchange traded funds (ETFs) from the present
5 per cent and a final decision on the quantum for current fiscal would be
taken very soon. SBI Mutual Fund and UTI Mutual Fund will manage the corpus of
the retirement fund in ETFs, he said.As on July 31 this year, the amount
invested in ETF by Employees’ Provident Fund Organisation (EPFO) is
Rs.7,468 crore and the market value of this as on date is Rs.8,372 crore, which
shows a positive return of 12.1 per cent, the minister said.
http://www.thehindu.com/todays-paper/tp-business/epfo-investments-in-etfs-to-rise/article9015763.ece
Finance Ministry mulls advancing Union Budget
The Union Budget has for decades been presented on the last day of
February, but this could soon change with the government mulling advancing it
to January-end so as to complete the budget exercise before the beginning of
the new fiscal, sources said.The Finance Ministry is doing an overhaul of the
entire Budget-making exercise which may see scrapping of the current practice
of presenting a separate budget for Railways.
http://www.thehindu.com/todays-paper/tp-business/finance-ministry-mulls-advancing-union-budget/article9015762.ece
Gujarat, Chhattisgarh assemblies to hold special
sessions to ratify GST Bill
State assemblies of Gujarat and Chhattisgarh will
today convene special sessions to to ratify the Goods and Services Tax (GST)
Bill that was passed by Parliament earlier this month. As per reports coming out of
AHMEDABAD, the Bill will be introduced in the Guajrat State Assembly today and
a discussion and voting on it, if necessary, will take place on the second day.
http://economictimes.indiatimes.com/articleshow/53804479.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Government plans to link Aadhaar with five big
schemes focussed on children
children receiving mid-day meals, primary
healthcare or elementary education under government schemes will undergo
Aadhaar enrolment as the Narendra Modi government is making a pitch for the
first time to make Aadhaar relevant for children. The Prime Minister's Office (PMO) has
asked for five big schemes focussed on crores of children in the country to be
linked with Aadhaar enrolment of children, two officials familiar with the
matter have told ET. These schemes are Mid-Day Meal S ..
http://economictimes.indiatimes.com/articleshow/53801621.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Government may offer foreign auditors direct access
In a move that signals the government's intent to
allow foreign audit firms to register and operate directly in the Indian
market, the Ministry of Corporate Affairs has written to the Institute of
Chartered Accountants of India (ICAI) to seek its views and recommendations on
the government proposal.
http://economictimes.indiatimes.com/articleshow/53805183.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Government delves into etailers’ concerns on
GST
The government is looking into the biggest
concern of online retailers with the goods and services tax (GST) — rules
relating to returned goods that have at times even reached as high as half
their sales. The draft GST law
does not provide for credit on tax paid on returned goods, potentially imposing
double taxes on sellers — tax paid on returned goods and again when
replacements are provided. GST may be put in place as early as April 1.
http://economictimes.indiatimes.com/articleshow/53802201.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Gujarat, Chhattisgarh assemblies to hold special
sessions to ratify GST Bill
State assemblies of Gujarat and Chhattisgarh will
today convene special sessions to to ratify the Goods and Services Tax (GST)
Bill that was passed by Parliament earlier this month. As per reports coming out of
AHMEDABAD, the Bill will be introduced in the Guajrat State Assembly today and
a discussion and voting on it, if necessary, will take place on the second day.
http://economictimes.indiatimes.com/articleshow/53804479.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Red tape hits ease of doing business in Maharashtra
The Maharashtra government seems to be giving
confusing signals to industries when it comes to ease of doing business. The
state which has rolled out a number of industry-friendly measures, is still
stuck with a few regulations that is frustrating industries. Last week, Belgium Consul General
Peter Huyghebaert met top state government officials and raised the issue of
Bekeart, a Belgium company involved in making steel wires in Ranjangaon in
Pune.
http://economictimes.indiatimes.com/articleshow/53805143.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Spectrum auction to witness heavy demand for 4G bands
India's largest spectrum auction is likely to see
heavy demand for the 4G bands of 1800 MHz and 2300 MHz and those in the 2100
MHz (3G) band, with Vodafone India pegged to be the most aggressive bidder in
the sale slated to start September 29, say industry executives and analysts.
http://economictimes.indiatimes.com/articleshow/53801928.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Grand reception awaits Sindhu
This is sport! When P.V. Sindhu left Hyderabad for Rio Olympics
three weeks ago along with her teammates, it was a quiet exit. But, when the
champion shuttler returns to the city on Monday morning with a silver medal in
her kitty—the biggest achievement by any Indian woman athlete in Olympics
history—scores of people will be waiting to have a glimpse of the images
of the proud parents P.V. Ramana and P. Vijaya giving an emotional welcome to
their gifted daughter.The Telangana Government is according Sindhu a grand,
civic reception to be attended by dignitaries from different fields. Minister
K.T. Rama Rao is monitoring the entire programme besides personally welcoming
the shuttler at 8. 30 a.m. The mood at the airport could well be electrifying
as the officials involved are doubly keen on making it a truly memorable
reception. Welcome arches and banners were put up along the entire stretch.
http://www.thehindu.com/todays-paper/tp-national/tp-andhrapradesh/grand-reception-awaits-sindhu/article9015933.ece
GLOBAL
India less vulnerable to banking distress risks
than China
India is better placed than neighbouring China
and Brazil in terms of banking distress risks, says a report prepared by the
Bank for International Settlements (BIS), which also flagged that high
corporate debt levels have caused overheating in some emerging economies. The observations are part of the
report submitted to the G20 International Financial Architecture Working Group
and it comes at a time when there are concerns about the rise of bad loans in
the banking system in India, ..
http://economictimes.indiatimes.com/articleshow/53794216.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
This is for the information of the members.
R. KULKARNI
Joint Director