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India Ratings on Thursday (29 October) revised downwards to 7.5 per cent the GDP growth forecast, from earlier estimate of 7.7 per cent, for the current financial year because of weak agricultural growth."The downward revision in forecast is primarily due to the lower agricultural growth caused by a deficient rainfall," India Ratings and Research said in a report on Thursday. Although investment is showing the signs of incipient recovery, the rating agency believes a full blown investment recovery will take anywhere between 12-18 months. The likelihood of the consumption demand growing at 8.2 per cent has brightened in FY16 on a significant moderation in inflation and inflationary expectations. It expects agricultural growth to expand 0.9 per cent this fiscal from 0.2 per cent of FY15. The report said that although the sector has over the years become more resilient to monsoon shocks, agricultural output in a large parts is still dependent on rains. The encouraging part is the sowing of kharif crop for 2015. The total area sown under kharif crops till October 16, 2015 reached 103.88 million hectares from 102.66 million hectares for the same period in 2014, it said. It added that although investment is showing signs of incipient recovery, a full blown investment recovery will take another 12-18 months. According to India Ratings, the industry is likely to expand 6.8 per cent in FY16, 0.2 percentage points higher than its earlier forecast."Besides, the government's key focus 'Make in India', a budgetary push, the early signs of revival in investment or consumption cycle coupled with a fall in inflation and interest rates are expected to drive the industrial recovery," the report added. The inflation based on both wholesale price index and consumer price index moderate to negative 1.5 per cent and 4.8 per cent, respectively in FY16, it said. Despite unforeseen supply side shocks to select agricultural commodities, the overall inflation has remained benign so far in FY16 and Ind-Ra expects it remain so even in the remaining months of this fiscal. Moderation in inflation/inflationary expectations has prompted the Reserve Bank of India (RBI) to cut the repo rate by 125bp so far in 2015. However, RBI by calling the 50bp repo rate cut, in its fourth bi-monthly review on 29 September 2015, a frontloaded policy action has nearly shut the door on further rate cuts in FY16. The report further added that the fiscal deficit target of 3.9 per cent for FY16 is achievable because the projections of government's net earnings and expenditure for the year are modest.
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Mobile company Vivo has formally announced its association with the Board of Control for Cricket in India (BCCI) for title sponsorship of the Indian Premier League (IPL). In the coming two seasons (2016 and 2017), Vivo and IPL will have extensive cooperation in terms of sports events, on ground activations, media exposure and marketing campaigns. Cricket fans across India and around the world will enjoy IPL brought by BCCI and vivo. BCCI secretary Anurag Thakur said: "We welcome vivo Mobile India on board to India's most awaited event, the Indian Premier League. IPL is all about opportunities and exhibition of talent and with vivo coming in as the title sponsor it is yet another initiative to showcase a brand which is young, full of life and looking for a platform to showcase its talent. Just like the IPL, vivo in a very short span have created a niche and legacy in the smartphone market and I am sure this will be a long and enriching affiliation for both the stakeholders.","Alex Feng, CEO of vivo Mobile India has said: “vivo is an emerging brand in India, dedicated to offering quality products and services to music lovers, sports enthusiasts and fashion pursuers. We always believe in supporting new talents and have associated ourselves only with premium events globally. This investment reiterates how important Indian market is for us and we are confident that vivo will get returns from our investment in IPL, and that this association will further advance our ‘Love India, Love vivo’ initiative.” Vivo fulfilled their obligation of presenting the bank guarantee to the BCCI and confirmed the title sponsorship rights," the BCCI said in a statement.
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A powerful earthquake struck a remote area of northeastern Afghanistan on Monday (26 October), shaking the capital Kabul and killing at least 17 people while 12 were killed in neighbouring Pakistan, officials said. Shockwaves were felt in northern India and in Pakistan's capital, where hundreds of people ran out of buildings as the ground rolled beneath them. The quake was 213 km deep and centred 254 km northeast of Kabul in a remote area of Afghanistan in the Hindu Kush mountain range. The US Geological Survey initially measured the quake's intensity at 7.7 then revised it down to 7.5. Twelve girls were killed in a stampede while trying to escape from their school in the north Afghan city of Taloqan while five people were killed in the eastern province of Nangahar, officials said. Scores of people were injured. In northwestern Pakistan, at least 12 people were killed, including one in the city of Peshawar, according to government officials. Injured people were pouring into Peshawar's Lady Reading Hospital, an official said. "We received 50 injured and more are being shifted. The injured suffered multiple injuries due to building collapse," said hospital spokesman Syed Jamil Shah. In the Afghan capital, Kabul, buildings shook violently but there were no immediate reports of damage or injuries. International aid agencies working in the northern areas of Afghanistan reported that cell phone coverage in the affected areas remained down in the hour after the initial quake. India's northernmost region of Kashmir experienced intense and prolonged tremors that caused panic in areas that suffered severe flooding last year. Power supplies and most mobile networks were knocked out, and there was structural damage to roads and buildings. (People come out of their offices, shops and homes after an earthquake at Lal Chowk in Srinagar on Monday. (PTI Photo) No casualties were reported in Kashmir, however. The earthquake struck almost exactly six months after Nepal suffered its worst quake on record, on April 25. Including the toll from a major aftershock in May, 9,000 people lost their lives and 900,000 homes were damaged or destroyed. The mountainous region is seismically active, with earthquakes the result of the Indian subcontinent driving into and under the Eurasian landmass. Sudden tectonic shifts can cause enormous and destructive releases of energy. A 7.6 magnitude earthquake struck northern Pakistan just over a decade ago, on October 8, 2005, killing about 75,000 people.(Reuters)
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There’s a huge potential for the Indian industry to invest in Africa, especially in infrastructure, food-processing, energy and healthcare sectors, said African industry leaders at the 3rd meeting of India Africa Business Council (IABC) meeting in the capital on Friday (October 23). This was a precursor to the India Africa Forum summit 2015 to be held in the capital from Oct 26 to Oct 29. “Africa holds immense potential (for the Indian industry). As the African countries go about the integration process, there’s scope for investment in infrastructure, food-processing, healthcare and energy sectors,” said Mike Bimha, Zimbabwe’s deputy minister of industry and commerce, who led the African delegation. As many as 37 African CEOs and 31 Indian CEOs attended the IABC meeting. The meeting was attended by leading industry members and institutional representatives from India and 17 countries of Africa. “The council discussed core sectors namely infrastructure, agriculture and healthcare. In infrastructure, Africa needs investment in holistic projects, which includes training, capacity building for the sustainability of the project. The Indian PPP experience can be emulated in the sector. On Agriculture, the Council recommended that the two regions should promote joint ventures to harness the potential in the agriculture sector in Africa. On healthcare, the council emphasized that there is an opportunity for capacity building and talent creation in healthcare,” said a joint statement adopted at the IABC meeting. Bimha also said that on the WTO and related issues, India and Africa “were on the same page”. Union Minister of State (independent charge) for Commerce and Industry Nirmala Sitharaman said that they had not earmarked any target for India Africa trade over a period, say, of next five years, but the “possibilities were immense”. Infrastructure, agriculture, energy, HRD and healthcare were the areas in which there can be immediate cooperation and investments in India, she added. According to a 2012 estimate, India’s bilateral trade with Africa will reach the $ 100 billion mark by 2015. There are, however, apprehensions as well regarding Indian investment in Africa. For one, political stability is an issue. To this Secretary Amitabh Kant said that both the sides should take a long-term perspective of the investments to be made in Africa. Then there are sector-specific laws, which at times are a dampener. To which the acting co-chair, IABC, India, Rajan Bharti Mittal, said that any business, investing in Africa, would like to have a majority stake, considering the long-term gestation period. The African side also pointed out that the Indian companies could consider outsourcing their businesses to Africa, because “they have a highly skilled, untapped, workforce”. Africa also provided huge tourism potential but poor connectivity from India was an issue.
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The Narendra Modi-led National Democratic Alliance (NDA) government has reportedly called a consultation meeting with states next week to discuss various contentious issues in the proposed goods and services tax (GST), along with the draft reports on business processes on GST registration, refunds and payment. The meeting is also likely to take up the eight-point dissent given by the Congress members of the Parliamentary Standing Committee, which had submitted its report on the Bill in May, reports the Indian Express. The Constitution (122 Amendment) Bill 2014 will empower Parliament and state legislatures to frame laws for the imposition of a goods and services tax. The Bill is pending passage in the Rajya Sabha, where the Modi government does not enjoy a majority. The government has to offset the gap in the Upper House, where the UPA's 106 votes vastly outstrip the NDA's 63. The passage of the Bill is vital for implementing the new indirect tax regime as it empowers the Centre to levy tax on goods beyond factory gate while it empowers states to charge service tax. Economists have argued in favour of the GST, claiming it would not only smoothen the movement of goods and services across the states but also increase the size of the economy by as much as two per cent. Finance minister Arun Jaitley has said the GST rate will not be as high as 26-27 per cent as demanded by some states but around 18 per cent as recommended by the Finance Commission. The Congress had opposed the reform persistently during the Monsoon session and did not show any sign of easing up, forcing the government to finally prorogue the session, which it had kept in abeyance. Implemented in over 140 countries, the rationale behind the switchover to the GST is that it is a simplified indirect tax regime with a single tax instead of multiple duties, thereby widening the tax base, improving compliance and plugging leakages. The government is pinning hopes on the upcoming Winter session to get the GST Bill passed. This will be the last opportunity for the government to meet an April 2016 deadline to implement a reform that foreign and domestic companies consider one of the best ways to spur growth. The Joint Committee on Business Process for GST in relation to GST Return has suggested filing of a periodic e-return for Central GST, State GST and Integrated GST.
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The Dubai land department's latest data indicates that Indians were the most prolific foreign investors in Dubai real estate during H1 2015, with a total of 3,017 transactions worth over $ 2 billion. Burj Khalifa, Business Bay, Palm Jumeirah, Dubai Marina most preferred locations for Indian property buyers who once again top the foreign property investment chart - a position they have consistently maintained for several years. "The characteristic Indian mindset of solidifying assets in multiple arenas compliments the dynamics of Dubai real estate that offers a number of options to buyers to accommodate their budget and preferences. Recent trends of purchasing properties in locations such as Downtown Dubai, Dubai Marina, Jumeirah Lake Towers, and The Palm also suggest that the buyers are looking at profitable dividends in the shape of rents and resale value," Sunil Jaiswal, President of Sumansa Exhibitions, said in a statement. The company is bringing Dubai Property Show to India in November from 6-8 at Bombay Exhibition Center, Goregaon (E). Amongst the factors responsible for the trend are relatively low property prices. The average ticket size for prime locations is around 2-4 million UAE Dirhams ($ 5.45 lakh to $ 1. 1 million), which is around Rs. 3.35 crore to Rs. 6.69 crore. The same ticket size in prime location in India would cost around Rs 5-10 crore. The Reserve Bank of India's latest move to allow investors to send up to $250,000 freely overseas to buy property has boosted the sentiment. Indian investors are increasingly exploring options in Dubai for a balanced real estate investment portfolio. Other factors that have boosted sentiment include proximity to India, rental yield from 4-7 per cent per year, better transparency in deals. According to the Dubai land department, residential apartments account for 60 per cent of India buyers' investments. "Prime property in Dubai is among some of the finest in the world and at the moment, in a softening market, represents excellent value-for-money. Identified as being one of Dubai's defining developments, The Palm Jumeirah is instantly recognisable and world-renowned for offering luxury homes in a unique location providing over 1,400 villas and 2,500 beachfront apartments", said Greg Lewis from Knight Frank, a leading independent global property consultancy.
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The Narendra Modi-led National Democratic Alliance (NDA) government has taken many steps to create an environment of growth for the real estate sector. In June, Prime Minister Narendra Modi launched three government schemes-the Smart Cities mission, Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and Housing for All mission at an expected cost of around Rs 4 lakh crore. The Housing for All scheme aims to provide at least 20 million homes to lower-income earners. These apart, a real estate bill that is aimed at primarily protecting consumer rights is also waiting to be cleared. Market watchers say the NDA government wants to regulate property markets and tie investor money to specific projects to stop developers diverting cash elsewhere. The slowdown around Delhi and other metropolis, where unsold inventory is highest, shows no sign of abating, however. So far, the deepening downturn in real estate makes it easily understandable why Modi's image as the country's economic saviour has lost its lustre just over a year after his resounding election victory. Indebted developers are cutting staff as they slow work on existing projects and postpone new buildings. Around half a million workers lost their jobs from sites around Delhi in the last 18 months, in a stark sign that the ground reality in Asia's third-largest economy is far from as rosy as official data suggests. The decade-long construction boom in burgeoning cities lured millions of labourers from India's rural hinterlands in search of a better life, creating one in every three new jobs. That process is now going into reverse, undermining Modi's promise to create more employment for the one million Indians who join the workforce every month, according to a report in Reuters. In May, the Centre relaxed rules to allow foreign funds to invest in real estate investment trusts (REITs), a move designed to revive the country's capital-starved property sector. The government also introduced REITs last year to pool in capital from overseas and help developers reduce their debt. Of late, debt-laden property developers are turning to deep discounts, free parking spots and even gimmicks like gifts of gold coins and motorbikes ahead of Diwali as they struggle to sell billions of dollars worth of as-yet unfinished homes. According to a latest study by apex industry body Assocham, over 75 per cent of the total 3,540 live projects, with total outstanding investments worth over Rs 14 lakh crore attracted by the real estate sector across India, remained non-starter as of financial year 2014-15. As per the study, while over 2,300 projects in the realty sector remained non-starters, over 1,000 on-going projects have registered significant delays in completion. "With 964 projects, domestic private sector accounted for 95 per cent share in real estate projects facing delays followed by public sector (49 projects) and foreign private companies (six projects)," noted the study prepared by the Assocham Economic Research Bureau (AERB). "On an average, real estate projects in India are facing a delay of 33 months in completion," said D S Rawat, secretary general of Assocham while releasing the findings of the chamber's study. "We urge the government to pass the long-pending Real Estate (Regulation and Development) Bill on an urgent basis as it would help in resolving the key issues that are hampering the growth of the sector," said Rawat. Maharashtra alone accounts for over one-fifth share (21 per cent) in the total outstanding investments attracted by real estate sector throughout India followed by Uttar Pradesh (14 per cent), Gujarat (13 per cent), Karnataka (12 per cent) and Haryana (eight per cent) that are amid top five states in this regard. Tamil Nadu and Telangana accounted for over six per cent share each in terms of total outstanding investments garnered by realty sector in the country. Assam, Bihar, Chhattisgarh, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Odisha and Uttarakhand together accounted for negligible share of less than even two per cent in the total outstanding investments attracted by the sector. Kerala has recorded highest compounded annual growth rate (CAGR) of about 59 per cent in attracting real estate investments during the decadal period of 2005-06 and 2014-15 followed by Karnataka (40 per cent) and Uttar Pradesh (32 per cent), noted the Assocham study. Growth in real estate investments attracted by Haryana declined by over five per cent during this period, while West Bengal registered about four per cent fall in growth by Madhya Pradesh (three per cent). Realty projects in Andhra Pradesh are facing maximum delay of about 45 months followed by Madhya Pradesh (41 months), Telangana (40 months) and Punjab (38 months). At present, the moot question is: will the Indian property market get back to its heyday of 2007-08?
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The winter session of Parliament could be convened around November 20. A final decision will be taken when the Cabinet Committee of Parliamentary Affair (CCPA) meets on October 26. The government had earlier talked about advancing the winter session to be able to meet the GST rollout date of April 1, 2016. The CCPA which met on Wednesday (21 October) didn’t take a final call on the winter session dates. The meet was attended by Union Ministers Rajnath Singh, Arun Jaitley, M Venkaiah Naidu and Sadanand Gowda. The government plans to observe November 19 as Constitution Day. A day long debate on the making of the Constitution would be held. The CCPA also took stock of 53 bills pending in the Rajya Sabha where the government lacks the majority. While eight bills have been passed by Lok Sabha, five others are pending with various parliamentary committees. The crucial GST bill is also pending in Parliament which the government hopes to pass in the session. The monsoon session was a near washout over allegations against top BJP leaders.
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As the prices of pulses have gone beyond the means of the common man, the Modi government has gone on a fire-fighting mode. On Monday (19 October), the government decided to further import 2,000 tonnes of tur dal and 1,000 tonnes of urad dal. MMTC has been asked to float the tenders immediately. The Cabinet Secretary, along with the secretaries of consumer affairs, agriculture and commerce, held a video conference with the chief secretaries of all states regarding the production, procurement, availability and prices of pulses. The states were asked to carry out surprise inspections and raids to prevent hoarding and black marketing of pulses. The Cabinet Secretary said that all the 400 outlets of Kendriya Bhandar and Safal in Delhi should start distributing imported tur dal right away. Some 100 Kendriya Bhandar and Safal outlets have already commenced distribution of imported tur dal in Delhi at Rs 120 per keg.
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Reliance Industries as well as nine other global oil and gas companies on Friday (16 October) committed to strengthening actions and investments to reduce greenhouse gases intensity of the global energy mix. The chief executive officers of 10 of the world's largest oil and gas companies - which together provide almost a fifth of all oil and gas production and supply nearly 10 per cent of the world's energy — declared their collective support for an effective climate change agreement to be reached at next month's 21st session of the United Nations (UN) Conference of Parties to the UN Framework on Climate Change (COP21). In their milestone declaration, the CEOs of the 10 companies that currently make up the Oil and Gas Climate Initiative (OGCI) – BG Group, BP, Eni, Pemex, Reliance Industries, Repsol, Saudi Aramco, Shell, Statoil and Total — confirmed that they recognise the general ambition to limit global average temperature rise to 2 degrees centigrade and that the existing trend of the world’s net global greenhouse gas (GHG) emissions is not consistent with this ambition. In their declaration the 10 CEOs said: "Our shared ambition is to see a green future. It is a challenge for the whole of society. We are committed to playing our part. Over the coming years we will collectively strengthen our actions and investments to contribute to reducing the GHG intensity of the global energy mix. Our companies will collaborate in a number of areas, with the aim of going beyond the sum of our individual efforts." The member companies have taken significant actions to reduce their GHG footprint, with combined GHG emissions from their operations reducing by around 20 per cent over the past 10 years, according to a joint declaration.
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