Today's News in Media - 08-08-2016

[Ftapcci Hyd]

Dear all,

FTA

India to examine feasibility of free trade pacts as Mexico warms up to industry
India plans to examine the feasibility of a free trade agreement (FTA) with Mexico in line with its objective of diversifying trade beyond the European Union and the US, a government official has said.The North American country holds opportunities for India to expand trade and a visiting trade delegation has already been promised increased opportunities for sectors, including dairy, pharmaceuticals and telecom outside a free trade pact, he added.“The Commerce Secretary recently led a trade delegation to Mexico, including representatives from industries such as dairy, telecom, tyre manufacturers, pharmaceuticals and IT. There were a lot of productive meetings with both the private industry and government agencies and we do see a lot of potential to expand,” the official said.India had looked at a possible free trade pact with Mexico in 2012, but it had not seemed a good idea because of limited trade at that time.“Since then (2012), bilateral trade has grown three-fold to $6 billion and a lot of product diversification has taken place. It makes sense to carry out a feasibility study again and see if an FTA would help in mutual expansion of trade in goods and services,” the official added.
http://www.thehindubusinessline.com/todays-paper/tp-news/india-to-examine-feasibility-of-free-trade-pacts-as-mexico-warms-up-to-industry/article8956736.ece

BANKING

With retail inflation at 5.7%, RBI likely to hold rates
With retail inflation ruling above the Reserve Bank of India’s (RBI) projection of around 5 per cent for FY2017, outgoing Governor Raghuram Rajan is unlikely to give a parting gift in the form of a repo rate cut at the third bi-monthly monetary policy review on August 9.Going by the latest government data, the year-on-year retail (consumer price index-based) inflation reading came in higher at 5.77 per cent in June 2016 as against 5.40 per cent in June 2015. CPI is used by the central bank as a nominal anchor in formulating monetary policy.In a recent speech, Rajan, whose three-year term ends on September 4, said: “…the RBI has emphasised the fight against inflation, and a key element of any disinflationary process is to curtail aggregate demand.
http://www.thehindubusinessline.com/todays-paper/with-retail-inflation-at-57-rbi-likely-to-hold-rates/article8956720.ece

NPAs: Banks alone are not to blame
The non-performing assets (NPAs) in the Indian banking system have become matter of heated discussion in the Parliament, media and the financial markets at home and abroad. The continuous one-way movement of the NPAs has been posing a threat to the stability of the country’s financial system and the economy as such.The share of NPAs in banks’ total advances is moving close to the double-digit level while the percentage of stressed assets has already crossed 11 per cent. Realising the severity of the problem and the ineffectiveness of the Debt Recovery Tribunals (DRTs) or the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, the Centre now proposes to enact a new debt recovery bill.
http://www.thehindubusinessline.com/todays-paper/tp-opinion/npas-banks-alone-are-not-to-blame/article8956776.ece

GST

Strong public opinion helped passage of Insolvency Code, GST: Jaitley
Finance Minister Arun Jaitley on Sunday said that strong public opinion helped in the passage of the Constitution Amendment Bill for the Goods and Services Tax (GST).“Both two landmark legislations back to back -- the Bankruptcy and GST -- have been passed unanimously and one of the factors why these laws have passed unanimously is that there is a very strong public opinion which has been inflicted upon politicians that we don't want now to go slow and miss this opportunity,” he said at the convocation ceremony of the OP Jindal Global University.The Constitution Amendment Bill for GST was passed by the Rajya Sabha last week and the government is hopeful to roll out the indirect tax reform from April 1, 2017.The Finance Minister also noted that an aspirational society has supported reforms and has helped India buck the trend of the global slowdown.
http://www.thehindubusinessline.com/todays-paper/tp-news/strong-public-opinion-helped-passage-of-insolvency-code-gst-jaitley/article8956740.ece

Standard GST rate should be less than 20%, says Assocham
The standard Goods and Services Tax (GST) rate should stay below 20 per cent and services of mass consumption should be included in the ‘merit’ list to ensure that prices of critical services, such as telecom, banking, healthcare, railways do not lead to inflation, an Assocham internal assessment on the GST roadmap has noted.“The industry can live with GST benchmark rate of a band of 17-20 per cent.Anything above that will be counter-productive and lead to inflation, especially on the side of services”, the industry chamber said.According to the chamber, the focus should be to get maximum tax buoyancy through more and more trade and industry channels in the small scale and unorganised sectors joining the mainstream value chain, rather than keeping the standard GST rate high.“With the kind of IT backbone being readied, the taxation stream should be able to detect any link breaking the value chain.“Industry would also like to fall in place if seamless input credit is available and adjusted with the net result that the overall tax incidence, especially on goods is brought down,” it said.Though States have concerns over the possible revenue loss, Assocham said tax buoyancy, GDP .
http://www.thehindubusinessline.com/todays-paper/tp-news/standard-gst-rate-should-be-less-than-20-says-assocham/article8956755.ece

Taskforce soon to propose dispute resolution under GST’
To achieve the target date of April 1, 2017, the Goods and Services Tax Council will have to work overtime,” said Revenue Secretary Hasmukh Adhia. In an interview to BusinessLine , Adhia, who had made a detailed presentation on the preparedness for the goods and services tax (GST), also said the Finance Ministry will soon set up a taskforce to propose a dispute resolution mechanism under the new indirect tax levy. The final decision will be taken by the Goods and Services (GST) Council.
http://www.thehindubusinessline.com/todays-paper/tp-news/taskforce-soon-to-propose-dispute-resolution-under-gst/article8956742.ece

INTERNATIONAL

Modi to visit Vietnam, strengthen ties
Prime Minister Narendra Modi will be visiting Vietnam with the objective to strengthen ties with the CLMV group of countries even as two-way trade continues to dwindle and tensions on the South China Sea dispute rises.Modi will be visiting Vietnam on his way back from the G20 Summit to be held in China even as India is planning to focus on its ‘Look East’ policy with a special focus on CLMV group of countries for greater economic ties, sources toldBusinessLine .The focus of the visit, which is expected to take place from September 6-7, is going to be mainly two-pronged – trade and maritime security. The G20 Leaders Summit is scheduled to take place on September 4-5 in Hangzhou, China.This is will be first such bilateral visit by an Indian PM in more than a decade. On October 2014, Vietnam’s Prime Minister Nguyen Tan Dung had visited India.
http://www.thehindubusinessline.com/todays-paper/tp-news/modi-to-visit-vietnam-strengthen-ties/article8956741.ece

MARKET

The Sensex story in the 25-year reform period
Twenty-five years have been completed since economic reforms were set in motion by the Narasimha Rao government, and guided by then Finance Minister Manmohan Singh.These far-reaching reforms transformed the economy and set it firmly on the growth path. The stock market, which is called the barometer of the economy, also underwent a sea-change during this quarter century.We analysed the constituents of the Sensex in 1992, based on data provided by Capitaline Database, and their financial parameters then, to highlight how the Indian stock market has changed with the economy.
http://www.thehindubusinessline.com/todays-paper/the-sensex-story-in-the-25year-reform-period/article8956719.ece

‘GST will transform textiles, will help it regain global market share’
The much-anticipated Goods and Services Tax has cleared the Rajya Sabha hurdle, and is set to become a reality next year. Manufacturing sectors such as auto and FMCG stand to benefit from the elimination of Central and State taxes. Arvind Ltd’s Chairman and Managing Director, Sanjay S Lalbhai, told BTVI that the GST regime promises to boost growth in textiles and create millions of jobs. India can even take away market share from China, he said.
http://www.thehindubusinessline.com/todays-paper/tp-news/gst-will-transform-textiles-will-help-it-regain-global-market-share/article8956746.ece

HANDLOOM INDUSTRY

Modi calls for push to handloom industry
From promoting ‘khadi’ and tourism to boosting preventive healthcare and optimal utilisation of natural resources, Prime Minister Narendra Modi’s first ‘townhall’ address had it all.By using slogans such as ‘khadi for nation, khadi for fashion’ and ‘ Aatma gaon ki , suveedha sheher ki ’ (soul of a village, facilities of a city), the Prime Minister stole the show during his 70-minute speech here.He urged everyone to buy handloom or khadi garments, so that workers in the cottage industry have jobs and earn a decent living.“In the struggle for independence, ‘khadi for nation’ was the mantra, but today if we make it ‘khadi for mation, khadi for fashion’, it will mean the growth of our handloom industry. A lot of technology upgradation is also going on in the industry and a lot of designers are also coming up,” Modi said.
http://www.thehindubusinessline.com/todays-paper/tp-news/modi-calls-for-push-to-handloom-industry/article8956744.ece

AGRICULTURE

Pushing crop insurance
With the monsoon this year being bountiful and well distributed, it is at first glance not surprising that crop insurance has found few takers. But that’s the problem: the monsoon is not the only risk that looms over farming. In these times of climate-change-induced extreme weather, late season losses are by no means a remote possibility. In February 2015, the wheat crop suffered huge damage in Punjab, thanks to an unseasonal hailstorm. An irrigated State, Punjab’s farmers have never been drawn to crop insurance; as a result, they were reduced to depending on doles from the Centre and the State government. This episode acted as the trigger for the Pradhan Mantri Fasal Bima Yojana, rolled out for this kharif. With Punjab as the backdrop, the Commission for Agriculture Costs and Prices had made a pitch last year for comprehensive, all-India crop insurance coverage, covering 50 per cent of farmers in two or three years, from the barely 20 per cent at present. The PMFBY has slashed kharif premiums to 2 per cent of the sum insured for kharif crops, and 1.5 per cent for rabi, the subsidy accounting for 80-90 per cent of the actuarial rate. 
http://www.thehindubusinessline.com/todays-paper/tp-opinion/pushing-crop-insurance/article8956775.ece

STATE

Development agenda, reforms will ensure new growth path: Modi
Prime Minister Narendra Modi today said his government would press ahead with its development agenda, which would take the country on a new growth path.Addressing a gathering after laying the foundation stone for Mission Bhagiratha in Gajwel about 80 km from here, Modi said the focus now is on sustaining the reforms agenda, which would ensure all-round development.“The only way out for the country to achieve its true potential of growth is to focus on development and remove the hurdles that infrastructure projects face,” he said. Pointing to the “healthy competition” among the States in facilitating ease of doing business, Modi said that his government would ensure true federalism where the Central and the State governments would collaborate.Listing out his government’s initiatives, he said “the changes brought about in the fertiliser sector have ensured that within two years of the NDA governmentwe are at a stage where there is adequate supply of urea.” Thanks to the power sector reforms, Modi said, “Telangana, which was purchasing power at about Rs. 10.50 to Rs. 11 per unit about two years ago, is able to purchase it atabout Rs. 1 to Rs. 2 per unit. The State, which had been facing a deficit, is heading towards self- sufficiency -- and perhaps even a surplus.”
http://www.thehindubusinessline.com/todays-paper/development-agenda-reforms-will-ensure-new-growth-path-modi/article8956722.ece

PM launches Mission Bhagiratha, lays foundation for NTPC plant
Prime Minister Narendra Modi today launched the Mission Bhagiratha of the Telangana government and laid the foundation stone for the Rs. 10,599-crore 1600 MW NTPC super thermal power plant to come up in Ramagundam.Apart from laying the foundation stone for the Fertiliser Corporation of India Ltd (FCIL) fertiliser plant in Ramagundam, the PM also laid the stone for Manoharabad to Kothapally railway line, and Kaloji Narayana Rao University of Health Sciences at Warangal.Addressing the massive gathering at Komatibanda village about 80 km from here in Gajwel constituency of Medak district, Modi assured Telangana of all necessary support in the State's development activities.Modi later dedicated the 1200-MW thermal power project of Singareni Collieries Company Ltd developed in Adilabad district of the State with an outlay of Rs. 7,000 crore.The fertiliser plant is expected to cost Rs. 5,254 crore and is aimed at manufacture of ammonia and urea in two units. The plant is a venture of National Fertilisers Ltd, Engineers India Ltd and Fertiliser Corporatiion of India Ltd.
http://www.thehindubusinessline.com/todays-paper/tp-news/pm-launches-mission-bhagiratha-lays-foundation-for-ntpc-plant/article8956738.ece

ZF Group to set up tech centre in Telangana
ZF Friedrichshafen AG has announced the setting up its first India Technology Centre in Hyderabad dedicated to software and mechanical engineering.The new centre will support ZF’s global development teams while enabling the company to accelerate local product development.Stefan Sommer, CEO of ZF Friedrichshafen AG, said: “This new facility is a significant investment for ZF in India. We are harnessing the skilled talent pool that India has to offer in order to develop superior technology solutions for our global as well as local customers.”
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/zf-group-to-set-up-tech-centre-in-telangana/article8956763.ece

CII-IBA index surges in April-June
The CII-IBA Financial Conditions Index at 61.1 for the April-June quarter of 2016-17 has shown a healthy improvement in the overall financial conditions in the Indian economy vis-à-vis the previous quarter (47.8).This is owing to strong expectations of leading banks and financial institutions regarding reduction in the cost of funds, comfortable liquidity position and better external financial linkages. The overall economic activity is also signalling improvement, albeit moderately on a quarter-on-quarter basis, said a joint statement by Indian Banks’ Association and Confederation of Indian Industry.
http://www.thehindubusinessline.com/todays-paper/ciiiba-index-surges-in-apriljune/article8956718.ece

‘New intellectual property policy, a catalyst for development’
The National IPR Policy announced in May will be a catalyst to bring about a vibrant intellectual policy ecosystem, which will in turn speed up economic, social and cultural development, said Justice M Jaichandran of the Madras High Court.The government’s move on the new policy will encourage creativity and stimulate innovation. The policy is also meant to promote public welfare by protecting rights of citizens by creating an innovative and conducive ambience. It will give the much needed strength to companies that are involved in research and development, educational institutions and start-ups, he said.
http://www.thehindubusinessline.com/todays-paper/tp-news/new-intellectual-property-policy-a-catalyst-for-development/article8956751.ece

Vijay Rupani sworn in CM of Gujarat
After the high-pitched drama on Friday over the naming of the new Chief Minister of Gujarat, the first-time MLA from Rajkot West and Amit Shah confidant Vijay Rupani took oath as the 16th Chief Minister of the State on Sunday.Nitin Patel, the second-in-command in Anandiben Patel government, was made Deputy Chief Minister.State Governor OP Kohli administered the oath of office and secrecy to Rupani and Patel along with seven Cabinet Ministers and 16 Ministers of State.Top BJP leaders greeted the new team at the Mahatma Mandir in Gandhinagar. The ceremony was held in the presence of senior leaders, including LK Advani, Union Finance Minister Arun Jaitley, BJP president Amit Shah, Ram Lal and Karnataka Governor and BJP leader from Rajkot Vajubhai Vala.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/vijay-rupani-sworn-in-cm-of-gujarat/article8956762.ece

Draft rules on regulating real estate will only help developers: Activist
The draft rules released by the Centre for implementation of the Real Estate (Regulation and Development) Act, has failed to protect interests of buyers of ongoing projects.According to Abhay Upadhyay, National Convenor of the activist group ‘Fight for RERA’, the draft rules released in June and the draft agreement for sales released recently are heavily biased in favour of builders of ongoing projects.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/draft-rules-on-regulating-real-estate-will-only-help-developers-activist/article8956800.ece

GST seeks to create a political economy: Amit Mitra
Projecting Bengal as an attractive investment destination and the Trinamool Congress as pro-industry, State Finance and Industry Minister Amit Mitra said his party was the first to support the Goods and Services Tax (GST) as early as 2009.According to Mitra, who is also Chairman of the Empowered Committee of Finance Ministers on GST, the support for the legislation came from the Trinamool Congress party supremo, Mamata Banerjee, at a time when “most political parties were not even aware of it”.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/gst-seeks-to-create-a-political-economy-amit-mitra/article8956801.ece

115 cities ‘open defecation free’: Venkaiah
In order to make the government’s flagship Swachh Bharat Mission successful, the Ministry of Urban Development has launched the second edition of the cleanliness survey ‘Swachh Survekshan-2017’.While the first survey had ranked 73 cities with population of million and above each in January this year, the second round will cover 500 cities and towns, including those with a population of one lakh and above each, besides capital towns with less than one lakh population and towns of importance from the point of view of heritage, tourism and hilly locations. “Since the first Swachh Survekshan Survey, 115 cities have become ‘open defecation free’ and another 793 cities and towns are set to become so by March next year,” Union Urban Development Minister M Venkaiah Naidu said in a press statement on Saturday. Gujarat, Andhra Pradesh and Kerala will become ‘open defecation free’ by March, 2017, he added.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/115-cities-open-defecation-free-venkaiah/article8956761.ece

Cooperative federalism key to progress, says Narendra Modi
Prime Minister Narendra Modi has asked the States to vie with one another and with the Centre in the matter of development as it was the only answer to meet the growing needs of the country.“The Centre will join hands with the States in working towards the goal since it is possible only with cooperative federalism, wherein the Centre and States work together,” Mr. Modi said addressing a huge gathering here on Sunday after launching the Mission Bhagiratha programme of the State Government to provide treated drinking water to every household and went on to add: “Delhi is as much yours as Hyderabad is”.
http://www.thehindu.com/todays-paper/cooperative-federalism-key-to-progress-modi/article8957449.ece

KTR seeks ISRO’s partnership
IT Minister K.T. Rama Rao on Saturday requested the Indian Space Research Organisation (ISRO) to partner with the State government on the proposed Research Innovation and Trade of Hyderabad when he called on its Chairman A.S. Kiran Kumar.The Minister gave a glimpse of the ongoing schemes taken up by the government, especially Mission Bhagiratha which is to be launched by Prime Minister Narendra Modi on Sunday. The ongoing fibre grid programme once completed would provide net connectivity to the remotest corners of the State which would enable the government to take up e-education, e-health programmes and e-panchyat so that related services reach the masses.
http://www.thehindu.com/todays-paper/tp-national/tp-telangana/ktr-seeks-isros-partnership/article8957867.ece

PM sets five Telangana infra projects rolling
Prime Minister Narendra Modi on his first visit to Telangana on Sunday laid the foundation stone for five infrastructure projects apart from inaugurating the Bhageeratha Drinking water mission. Stressing the need for cow protection, Mr Modi said the Governor of Himachal Pradesh, a person known for doing experiments in agriculture, had started a movement to give refuge to unproductive cows (those that no longer yield milk) that were deserted by their owners, and he was giving them to farmers for use in agriculture work.
http://www.thehindu.com/todays-paper/tp-national/pm-sets-five-telangana-infra-projects-rolling/article8956905.ece

‘Make in India is an event management initiative’
Former Union Minister P. Chidambaram on Sunday described the Narendra Modi government’s ambitious ‘Make in India’ call as an event management initiative.Speaking at a panel discussion on former RBI Governor D. Subbarao’s book Who moved my interest rate?, organised by the Indian Institute of Management-Bengaluru, Mr. Chidambaram said, “Make in India is to give a boost to manufacturing. It is not a question of whether it will work or not. It must work. However, today it is not working. I am sorry to be blunt, but it is only part of an event management [programme],” he said.
http://www.thehindu.com/todays-paper/tp-national/make-in-india-is-an-event-management-initiative/article8957095.ece

‘Centre’s inflation target could help macro stability’
At a time when public sector spending is set to rise due to wage increases this year, the moderate inflation target set by the government is a positive for the country’s credit profile and could prevent spillovers into other sectors, according to Moody’s Investors Service.“An explicit inflation target can help anchor inflation expectations and hence actual inflation at moderate levels,” Marie Diron, Senior Vice-President, Sovereign Risk Group, Moody’s Investors Service said.
http://www.thehindu.com/todays-paper/tp-business/centres-inflation-target-could-help-macro-stability/article8956858.ece

On tap banking licences will hit PSBs: ICRA
The Reserve Bank of India’s (RBI) move to make new bank licences available on tap will encourage non-bank lenders to apply for access to cheaper public deposits, and the increased competition may dent State-run lenders’ market share, ratings agency ICRA has said.Coupled with the capital constraints of public sector banks (PSBs) owing to non-performing assets, their market share can go down by up to 10 percentage points in the next five years from the present 70 per cent, it warned.
http://www.thehindu.com/todays-paper/tp-business/on-tap-banking-licences-will-hit-psbs-icra/article8956863.ece

ET Startup Awards 2016: How 'Startup Of The Year' Freshdesk aims to be the next big unicorn
Few Indian startups have been able to scale up as rapidly and as expansively as Freshdesk to build a truly global business, while also being profitable. The cloud-based customer engagement software provider has in five years established a presence in 145 countries.While several of its 80,000 customers are small and medium businesses, Freshdesk also counts marquee names such as 3M, Sony Motion Pictures, Jaguar Land Rover, Cisco and SolarCity among clients. The Chennaiheadquartered co .. 
http://economictimes.indiatimes.com/articleshow/53590422.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Financial condition, market environment has improved in the quarter to June: Index 
India's financial condition and market environment showed a healthy improvement in the quarter to June, according to industry body CII and Indian Bank Association's latest Financial Conditions Index. The index stood at 61.1during the quarter, up from 47.8 in the previous quarter. The reading shows that a majority of respondent banks and financial institutions reported improvement in the overall conditions as against a significant deterioration in the previous quarter. 
http://economictimes.indiatimes.com/articleshow/53589821.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

‘Legitimate’ NGOs cheer PM Narendra Modi's remark on cow vigilantes 
PM Narendra Modi's statement on Saturday asking states to take action against self-styled cow vigilantes may not have gone down well with the "gau rakshak" groups but has certainly brought in much relief to several other NGOs working in the area of animal welfare who feel "politicisingthe issue and associating it with Hindutva had actually put cattle rescue on back seat." 
http://economictimes.indiatimes.com/articleshow/53589856.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

GLOBAL

China’s robotics rush shows how its debt can get out of control
Down a side street bracketed by massage parlours and cheap hotels in this city on the banks of the Yangtze river, a humanoid food service robot trundles around the corner of a table in a cafe, red eyes flashing in tune with synthesised classical music.The Wuhu Hands On Café’s waiter, named “Hero,” has no customers on a drizzly Friday morning. He is, though, a symbol of Wuhu city’s hopes of becoming a major centre for robotics, and the local government’s ability to chase that dream through the debt markets, whether it makes commercial sense or not.
http://www.thehindu.com/todays-paper/tp-business/chinas-robotics-rush-shows-how-its-debt-can-get-out-of-control/article8956868.ece

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R. KULKARNI
Joint Director