Page 273 - Indian Economy

NRI investment on non-repatriation basis to be treated as domestic: DPIIT

Investment by non-resident Indians (NRIs) on non-repatriation basis in an Indian company will be treated as domestic investment for the purpose of calculating indirect overseas inflows, according to a DPIIT press note. The Department for Promotion of Industry and Internal Trade (DPIIT) said that the government has reviewed the FDI (foreign direct investment) policy in relation to investments made by an Indian company owned and controlled by non-resident Indians (NRIs) on a non-repatriation basis. In order to provide a clarity on downstream investments made by NRIs, a clause has been added in the FDI policy. The clause was added in the guidelines for calculation of direct and indirect foreign investments. It said that "investments by non-resident Indians (NRIs) on a non-repatriation basis" as stipulated under a schedule of Foreign Exchange Management (non-debt instruments) Rules 2019 "are deemed to be domestic investments at par with the investments made by residents". "Accordingly

Households saved less in Q2, spent on discretionary items: RBI bulletin

The flip-flop in flows of financial savings was not very different in advanced economies, where net financial savings rose sharply in Q1 and declined in Q2

IGST on intermediaries: Gujarat High Court admits a petition to review

When IGST is levied on inter-state transfers within India, it is imposed on service providers

L&T, ABB India: Analysts bet on capex-related plays amid economic revival

"Valuations for consumption stocks now appear stretched while the industrials sector still trades at historical averages," wrote Amish Shah of BofA Securities

Initiatives taken in Budget will step-up growth momentum: RBI article

The initiatives taken by the government in the 2021-22 Union Budget will step-up growth momentum in the medium term, according to an RBI article

India's economy is likely to grow at 12% in 2021, says Moody's Analytics

Near-term prospects have turned more favourable, Moody's Analytics said

P-notes investment climbs to 33-month high at Rs 91,658 crore in Feb

Investments through participatory notes in the capital market rose to Rs 91,658 crore at February-end, making it the highest level in 33 months, suggesting growing confidence of overseas investors

Indian middle class shrinks by 32 million due to Covid-19 pandemic: Pew

Report shows the size of global middle class fell for the first time since 1990s

MCA21 Version 3.0: Govt's automated system to keep an eye on firms

The centre will issue warning if it detects suspicious practices

PE, VC partners in journey of new India towards new horizon: Piyush Goyal

Union Minister Piyush Goyal said new India is moving with a new energy towards a bright future, and Private Equity and Venture Capitalists are our partners in this new Journey towards a new Horizon

Lok Sabha passes Appropriation Bill, finishes two-thirds of budget exercise

The Lok Sabha on Wednesday passed the Appropriation Bill 2021-22, authorising the government to draw funds from the Consolidated Fund of India for its working as well as implementation of its programmes and schemes. This completes two-thirds of the exercise for approval of the Budget for 2021-22. The Appropriation Bill authorising payment and appropriation of specified sums from the Consolidated Fund of India for 2021-22 was introduced by Finance Minister Nirmala Sitharaman. The bill was later approved by voice vote. The Lok Sabha earlier discussed demands for grants of different ministries, including railways, education and health. Speaker Om Birla later applied the guillotine, after which all the outstanding demands for grants, whether discussed or not, were put to vote at once and passed. After that, the Appropriation Bill was taken into consideration and passed by the lower house of Parliament. The Lok Sabha will now discuss the Finance Bill, which essentially contains the .

High economic growth will spare India from debt trap, say experts

Finance panel had indicated that total debt could touch 90% of GD

Direct tax mop-up betters estimate for the first time in four years

With the payments of the last instalment on Monday, advance tax collection for FY21 was around 7 per cent higher than last year's

March-end forward premia jumps as banks convert dollar for rupee

These transactions happen through swaps, in which banks sell dollars on the spot market and buy dollars in the forwards in April

Fiscal consolidation: States lack the flexibility that the Centre enjoys

While the Centre has an escape clause to deviate from the fiscal consolidation road map by 0.5 percentage point of GDP in times of exigency, states were not given any such escape clause

The discourse on the economy has been hijacked by the bond market types

If you take the trouble to collect the whole set of things that have been done - you need go no further than the finance ministry website - you will realise how pathetic the discourse has been

DFI employees may get shield against 'ill-informed' probe, prosecution

The government expects the DFI to finance a large percentage of the Rs 115-trillion spending needed for the National Infrastructure Pipeline

633,000 'New Middle Class' households In India: Hurun India report

These households have average saving of Rs 20-lakh per annum and allocate mostly towards physical assets such as primary residential property and automobiles

AT1 cloud likely to hit banks' capital-raising plans, say experts

They have planned to raise about Rs 30,000 crore through this route

Dealing with cost-push inflation

At present, an important reason for the large leeway around the inflation target lies in the behaviour of the prices of oil and food, which can push prices more generally