Thank you France, says Modi as he takes flight to Germany 0

Thank you France, says Modi as he takes flight to Germany

April 12, 2015 14:58 IST

Prime Minister Narendra Modi on Sunday thanked France and wrapped up his first visit to Paris that saw the two nations elevate their strategic ties to a new level as they agreed on a deal for 36 Rafale fighter jets and decided to move ahead with the log-jammed Jaitapur nuclear project.

“Thank you France! Substantial ground was covered during my visit. Thankful to French Govt & people. Will always cherish the enthusiasm,” Modi tweeted in both English and French while leaving Paris for Germany.

With ‘Make-in-India’ being the theme, the two sides signed about 20 pacts, covering areas like civil nuclear energy, urban development, railways and space.

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Budget 2015-16 0

Highlights: Budget 2015-16

Finance Minister Arun Jaitley on Saturday announced a budget aimed at high growth, saying the pace of cutting the fiscal deficit would slow as he seeks to boost investment and ensure that ordinary people benefit.

Here are the highlights of Jaitley’s budget for the fiscal year that begins on April 1.
FISCAL DEFICIT 

* Fiscal deficit seen at 3.9 per cent of GDP in 2015/16

* Will meet the challenging fiscal target of 4.1 per cent of GDP

* Remain committed to meeting medium term fiscal deficit target of 3 per cent of GDP

* Current account deficit below 1.3 per cent of GDP

* Jaitley says have to keep fiscal discipline in mind despite need for higher investment

GROWTH 

* GDP growth seen at between 8  ..
* Aiming double digit growth rate, achievable soon

INFLATION 

* Expects consumer inflation to remain close to 5 per cent by March, opening room for more monetary policy easing

* Monetary policy framework agreement with the RBI clearly states objective of keeping inflation below 6 per cent

* “One of the achievements of my government has been to conquer inflation. This decline in my view represents a structural shift.”

REVENUES 

* Revenue deficit seen at 2.8 per cent of GDP

* Non tax revenue seen at 2.21 trillion rupees

* Agricultural incomes are under stress

DISINVESTMENT 

* Government targets 410 billion rupees ($6.7 billion) from stake sales in companies in 2015/16

* Total stake sale in 2015/16 seen at 695 billion rupees

* Sets stake sale target for 2016/17 at 550 billion rupees

* Revises down stake sale target for 2014/15 to 313.5 billion rupees
* To set up public debt management agency

* Proposes to introduce a public contract resolution of disputes bill

* To establish an autonomous bank board bureau to improve management of public sector banks

POLICY REFORMS 

* To enact a comprehensive new law on black money

* Propose to create a universal social security system for all Indians

* To launch a national skills mission soon to enhance employability of rural youth
* To raise visa-on-arrival facility to 150 countries from 43

* Allocates 346.99 billion rupees for rural employment guarantee scheme

BORROWING 

* Gross market borrowing seen at 6 trillion rupees

* Net market borrowing seen at 4.56 trillion rupees

GENERAL ANTI-AVOIDANCE RULES (GAAR) 

* Government defers rollout of anti-tax avoidance rules GAAR by two years

* GAAR to apply prospectively from April 1, 2017

* Retrospective tax provisions will be avoided

TAXATION 

* To abolish wealth tax

* Replaces wealth tax with additional 2 pct surcharge on super rich

* Proposes to cut to 25 per cent corporate tax over next four years

* Corporate tax of 30 per cent is uncompetitive

* Net gain from tax proposals seen at 150.68 billion rupees

* Jaitley proposes modification of permanent establishment norms so that the mere presence of a fund manager in India would not constitute a permanent establishment of the offshore fund,  ..
* Proposes to rationalise capital gains tax regime for real estate investment trusts

* Expects to implement goods and services tax by April 2016

* To reduce custom duty on 22 items

* Basic custom duty on commercial vehicle doubled to 20 per cent

* Proposes to increase service tax rate and education cess to 14 per cent from 12.36 per cent

* Plans to introduce direct tax regime that is internationally competitive on rates without exemptions
INFRASTRUCTURE 

* Investment in infrastructure will go up by 700 bln rupees in 2015/16 over last year

* Plans to set up national investment infrastructure fund

* Proposes tax-free infrastructure bonds for projects in roads, rail and irrigation projects

* Proposes 5 “ultra mega” power projects for 4,000 MW each

* Second unit of Kudankulam nuclear power station to be commissioned

* Will need to build additional 100,000 km of road
Ports in public sector will be encouraged to corporatise under Companies Act
EXPENDITURE 

* Plan expenditure estimated at about 4.65 trillion rupees

* Non-plan expenditure seen at about 13.12 trillion rupees

* Allocates 2.46 trillion rupees for defence spending

* Allocates 331.5 billion rupees for health sector

* If revenue improves, hope to raise budgeted allocations for rural job scheme by 50 billion rupees
INVESTMENT 

* Propose to do away with different types of foreign investment caps and replace them with composite caps

* To allow foreign investment in alternative investment funds

* Public investment needed to catalyse investment

GOLD 

* To develop a sovereign gold bond

* To introduce gold monetisation scheme to allow depositors to earn interest

* To introduce Indian-made gold coin to reduce demand for foreign gold coins

SUBSIDIES 

* Food subsidy seen at 1.24 trillion rupees

* Fertiliser subsidy seen at 729.69 billion rupees

* Fuel subsidy seen at 300 billion rupees

* Major subsidies estimated at 2.27 trillion rupees

* We are committed to subsidy rationalisation based on cutting leakages
FINANCE MINISTER’S COMMENTS 

“We inherited a sentiment of doom and gloom. The investment community had almost written us off. We have come a long way since then.”

* “We have turned around the economy, dramatically restoring macroeconomic stability and creating the conditions for sustainable poverty elimination, job creation, durable double digit economic growth.”

* “While being mindful of the challenges … this gives us reason to feel optimistic.”

* “Domestic and international investors are seeing us with renewed interest and hope.

Russian Minister Sees Inflation at 10% by 2015-end 0

rouble_625x300_71418806010Moscow(Sharemasterindia.com): Russian Economy Minister Alexei Ulyukayev sees inflation at 10 per cent by the end of next year, he told Rossiya 24 television on Friday, as the rouble crisis persists.

Russia has been forced to support banks and hike interest rates in recent weeks to try to arrest the currency’s slide and avoid spiraling inflation after years of stability, a situation that could threaten President Vladimir Putin’s popularity.

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Markets Seen Trading Sideways in Holiday-Shortened Week 0

sensex-625_625x300_81399962854

Sharemasterindia.com: The markets are likely to trade sideways ahead of year-end holidays as investors expect no major action, both domestically as well as globally.

Corporate earnings and reforms are likely to be next big triggers for markets.

The Nifty is likely to trade between 8,050 and 8,450 in the week starting December 29.

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