ECONOMY - 2018 DECEMBER

December 1

India is fastest growing e-commerce market: Report
According to Consultancy firm Bain & Company’s latest report, India has the fastest growing online retail market among top global economies.
India’s online retail market had a compound annual growth rate (CAGR) of 53% from 2013 to 2017.
This rapid growth is due to heavily discount-driven e-commerce marketplaces, improvement in delivery infrastructure and increased smartphone penetration and data usage.
India’s total e-commerce retail sales in 2017 was nearly $20 billion. As per the studies, another $50 billion of online e-commerce could be introduced by adding new users and bringing back the currently inactive old users.

Indian economy likely to grow at 77.4% in FY19: NCAER
Indian economy is projected to grow at 77.4% in the current fiscal by the report of economic policy think-tank National Council of Applied Economic Research (NCAER).
According to a report by the National Council of Applied Economic Research (NCAER), the real agriculture Gross Value Added (GVA) is envisaged to grow at 3 per cent and real industry GVA at 7% in 2018-19.

December 2

Avoidance of double taxation treaty between India, HKSAR comes into effect
A double taxation avoidance agreement came into effect between India and the Hong Kong Special Administrative Region (HKSAR) of People’s Republic of China.
The agreement would ensure avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and improve transparency in tax matters.
It would also stimulate more the two-way flow of investments, technology and personnel from India to HKSAR and vice versa.
Also on November 26, India and China have amended the bilateral tax treaty which will help prevent tax evasion by allowing exchange of information.
China:
Capital: Beijing.
Currency: Renminbi

India’s economy grows at 7.1% for 2nd part of 2018-19
Central Statistics Office (CSO) released a report showing that Indian Economy grew at 7.1% in the second quarter (July - September) of 2018-19 which is lower than the first quarter in which GDP growth was 8.1%.
As per the report of CSO, despite having Manufacturing growth at 7.4, Indian Economy growth moderated in the second quarter of 2018 but it is higher than the second quarter of 2017-18 which shows a growth rate of 6.3%.

December 3

Growth rate of 8 infrastructure sectors slows down to 4.8% in October 2018
According to index of eight core industries released by Ministry of Commerce and Industry, growth rate of eight infrastructure sectors slowed down to 4.8% in October 2018.
This was mainly due to contraction in production of crude oil, natural gas and fertilizer.
It had recorded growth rate of 5% in October 2017. During April-October 2018-19, eight sectors recorded a growth rate of 5.4% against 3.5% in the same period last year.
DAC approves procurements worth Rs 3000 crores, including BrahMos and ARVs
The Defence Acquisition Committee (DAC) approved procurements of about Rs 3000 crores including BrahMos Missiles for two Indian Navy ships, and Armoured Recovery Vehicles (ARVs) for Indian Army's Main Battle Tank Arjun. The DAC meeting was chaired by Defence Minister Nirmala Sitharaman.
As a follow up of the Cabinet Committee on Security's (CCA) decision in October this year for the procurement of four P1135.6 Follow-on Ships, the DAC granted approval for procurement the indigenous BrahMos Missiles for two Indian Navy Ships to be built in Russia as primary weapon on board these ships. The indigenously designed BrahMos Missile is a tested and proven supersonic cruise missile.
The DAC also approved the procurement of ARVs for the Indian Army's MBT Arjun. These are designed and developed by Defence Research and Development Organisation (DRDO) and would be manufactured by Indian Public Sector Undertaking, Bharat Earth Movers Limited (BEML). ARVs ensure efficient and speedy repair and recovery operations during combat.

December 4

Government of India and Asian Development Bank Sign $85 Million Loan to Support Odisha Skill Development Project
The Government of India and the Asian Development Bank (ADB) signed a $85 million loan to improve the skill development eco-system in Odisha and establish an advanced skill training center, the World Skill Center (WSC), in the state capital Bhubaneswar.
The signatories to the Odisha Skill Development Project were Shri Sameer Kumar Khare, Additional Secretary (Fund Bank and ADB), Department of Economic Affairs, Ministry of Finance, who signed on behalf of the Government of India, and Mr Kenichi Yokoyama, Country Director of ADB’s India Resident Mission, who signed for ADB.

GDP in India will grow 7.2% in the year ending March 2019: Moody’s
Moody’s expects the real gross domestic product (GDP) in India to grow 7.2% in the year ending March 2019 and 7.4% in the following year.
Earlier Moody’s Investors service growth prediction for India was 7.5% in 2018-19, 7.5% in 2019-20 released on 23rd August, 2018.
This growth is driven by investment growth and strong consumption.
According to Moody’s report, it has a stable outlook on the Indian banking system for the next 12-18 months.
The stable outlook is based on six parameters - operating environment, asset quality, capital, funding and liquidity, profitability and efficiency, and government support.

December 5

India’s growth forecast cut by 10 bps to 7.4% on weakening global growth: CRISIL
Crisil cut India’s growth forecast for current fiscal, by 10 basis points, to 7.4% citing weakening global GDP and trade growth as the reasons for the decline.
The decline is due to the global growth prospects that are turning weaker than earlier estimate and if the liquidity problems persist that might affect the demand, further hampering the GDP. India’s export will have a slow trajectory of growth compared to the early part of 2018.
However, India’s growth in fiscal 2019 will be faster compared to the previous fiscal despite the decline.

Hindustan Unilever board approves merger with GlaxoSmithKline Consumer Healthcare India
FMCG major Hindustan Unilever Limited (HUL) board has approved the merger with Glaxo Smith Kline Consumer Healthcare (GSKCH India) through an-all equity deal, valuing the total business of the latter at Rs. 31,700 crore.
The transaction is an all equity merger with 4.39 shares of HUL being allotted for every share in GSKCH India, which sells consumer healthcare products, including popular drink brand Horlicks.

December 6

Paisabazaar.com launches India's first chance of approval feature for lending products
Paisabazaar.com, India's largest online marketplace for financial products has launched an industry-first feature that will help loan applicants choose their most-suited lender on its platform.
Named 'Chance of Approval', this advanced predictive algorithm has been created by Paisabazaar.com by using the last four years of lending data.
While this is the first such initiative in India, globally a few leading players, like Credit Karma in the US, have developed similar features to improve the acceptance rate on their platforms.

Fitch slashes India growth forecast to 7.2% on reduced credit availability
Fitch Ratings slashed India's GDP growth forecast to 7.2% for current fiscal, from 7.8% projected in September, citing higher financing cost and reduced credit availability.
In its Global Economic Outlook released, Fitch estimated India's GDP growth to be 7% and 7.1% in financial years 2019-20 and 2020-21 respectively.
Indian economy grew 6.7% in 2017-18 fiscal.

Government approves Rs. 850 crore investment to upgrade DD, AIR: Report
The country’s largest public broadcasters All India Radio (AIR) and Doordarshan (DD) are set to improve their infrastructure, expand their coverage and strengthen their content by investing Rs. 850 crore for the purpose, according to a report by Hindustan Times.
The investment has been approved by the Finance Ministry and is a fresh attempt by the government to help the Prasar Bharti-owned public broadcasters compete better with private television channels and radio stations.
The sanctioned amount will be invested over FY19 and FY20.

December 7

Exim Bank extends USD 500 million loan to Tanzania for water projects
Export-Import Bank of India (Exim Bank) has extended a credit facility of USD 500 million to Tanzania for water supply projects in the country. Exim Bank signed an agreement in May 2018, with the Tanzania government for making available a Government of India-supported line of credit of USD 500 million for the purpose of financing water supply schemes.
Under this agreement, of the total credit by Exim Bank, goods and services of the value of at least 75% of the contract price shall be supplied by the seller from India.
Tanzania Capital: Dodoma, Currency: Tanzanian shilling.

HCL To Buy 7 IBM Products for $1.8 billion In Its Biggest Acquisition
Noida-based IT major HCL Technologies will acquire seven IBM products by mid-2019 for $1.8 billion (over Rs. 12,700 crore) in its biggest ever acquisition so far.
The all-cash deal entails software in areas including security, marketing, collaboration solutions, and represents a total addressable market of over $50 billion. The deal includes the transfer of some IBM employees as well.

December 8

Germany offers aid package to Kerala
Germany has announced a massive aid package to support climate-resilient rebuilding of Kerala’s flood-shattered public infrastructure, which includes a nominal interest loan of Rs. 720 crore (€90 million).
The package, announced at a press meet by German Ambassador to India Martin Ney, also has a technical grant of €3 million (Rs. 24 crore), which will be for providing international expertise to the State Public Works Department in climate resilient infrastructure planning to reconstruct roads and bridges.
Germany Capital: Berlin, Currency: Euro

December 9

CAD widens to 2.9% of GDP in Q2
Current account deficit (CAD) widened to 2.9% of GDP for the July-September quarter due to higher trade deficit compared with 1.1% during the same period of the previous year, according to the Reserve Bank of India.
The deficit for the second quarter was $19.1 billion compared with $6.9 billion in the year-earlier period. The CAD for the April-June quarter was 2.4% of GDP or $15.9 billion.

SEBI renamed ITP as Innovators Growth Platform
In a major push to kickstart listing of start-ups in India in a big way, capital markets regulator SEBI has lined up a slew of relaxations for new-age ventures.
The proposed changes include renaming the Institutional Trading Platform (ITP) that the regulator had created for such listings as Innovators Growth Platform (IGP).
SEBI - Securities and Exchange Board of India.
SEBI Chairman - Ajay Tyagi, Headquarters - Mumbai.

December 10

India to retain top position in remittances with $80 billion: World Bank
India will retain its position as the world's top recipient of remittances this year with its diaspora sending a whopping USD 80 billion back home.
India is followed by China (USD 67 billion), Mexico and the Philippines (USD 34 billion each) and Egypt (USD 26 billion), according to the global lender.

December 11

India and ADB Sign $31 million Loan Agreement for Tamil Nadu
The Government of India and the Asian Development Bank (ADB) signed in New Delhi a Loan Agreement for $31 million to build-up the State Tourism Industry and boost visitor arrivals in Tamil Nadu.
The Asian Development Bank is a regional development Bank established in 1966.
Headquarters of ADB is in Manila, Philippines.
Takehiko Nakao is Present President of the Asian Development Bank

December 12

Route Mobile Collaborates With Oracle Marketing Cloud
Route Mobile Limited (Route Mobile), a cloud-communication platform service provider and a member of Oracle Partner Network (OPN) announced the collaboration with Oracle Marketing Cloud, part of Oracle Customer Experience (CX) Cloud Suite, which empowers organizations to take a smarter approach to customer experience management and business transformation initiatives.
This collaboration between Route Mobile and Oracle Marketing Cloud enables companies to leverage Route Mobile's quality connections for mobile customer engagement over SMS.

Regulatory Indicators for Sustainable Energy 2018 released by World Bank
The World Bank released a report named Regulatory Indicators for Sustainable Energy (RISE) 2018. The report was released on the sidelines of the 24th Conference of the Parties to the UN Framework Convention on Climate Change (COP24).
The number of countries with strong policy frameworks for sustainable energy more than tripled from 17 to 59 in the eight years till 2017.
About World Bank
Headquarter: Washington DC, USA
President: Jim Yong Kim

December 13

ADB retains India’s growth forecast at 7.3% for FY19
Asian Development Bank (ADB) in its supplement report ''Asian Development Outlook (2018)'' has retained India’s FY19 growth forecast at 7.3% and 7.6% in FY20 despite downside risks posed by stress in the non-banking sector, limited fiscal space as well as escalating trade tensions.
The country’s GDP growth moderated to 7.1% in second quarter of 2018-19 from 8.2% in the first quarter, averaging 7.6% growth in the first half.
About Asian Development Bank (ADB)
Headquarter: Mandaluyong, Philippines
President: Takehiko Nakao

December 14

Government of India and the Asian Development Bank (ADB) sign a $60 Million Loan Agreement to reduce floods and the riverbank erosion in Assam
The Asian Development Bank (ADB) and the Government of India signed a $60 Million Loan Agreement in New Delhi to continue financing riverbank protection works, renovation of flood embankments, and community-based flood risk management activities in critically flood-prone areas along the Brahmaputra River in Assam.
The Tranche 2 loan is part of the $120 million multi-tranche financing facility (MFF) for the Assam Integrated Flood and Riverbank Erosion Risk Management Investment Program approved by the ADB Board in October 2010.
About Assam
Capital: Dispur
Chief Minister: Sarbananda Sonowal
Governor: Jagdish Mukhi
National park (NP): Dibru-Saikhowa NP, Kaziranga NP, Manas NP, Nameri NP and Rajiv Gandhi Orang NP.
Thermal power plant: Bongaigaon Thermal Power Plant

OPEC keeps forecast for Global Economic Growth in 2018 unchanged at 3.7%: Report
The Organization of the Petroleum Exporting Countries (OPEC) has not revised its forecast for global economic growth, and it remains at 3.7% for 2018 (unchanged) and 3.5% for 2019.
The growth in the United States and in the Euro-zone remains unchanged, standing at 2.9% and 1.9% for 2018, and at 2.6% and 1.7% for 2019.
India‘s and China’s growth forecasts remain unchanged at 7.5% and 6.5% for 2018, and at 7.2% and 6.1% for 2019 respectively.
OPEC: Headquarters - Vienna, Austria.

FDI inflows to South, South West Asia down 6% to USD 63 billion in 2017: UN report
Foreign Direct Investment (FDI) inflows to South and South-West Asia decreased by 6% in 2017 due to a drop in foreign funding flow to countries like India and Turkey.
As per the UN Economic and Social Commission for Asia and the Pacific (ESCAP) report, the foreign direct investment (FDI) inflow to South and South-West Asia stood at USD 63 billion in the last calendar year.

December 15

Global Debt Hits All-Time High Of USD 184 Trillion: IMF
The International Monetary Fund has announced that that global debt has reached an all-time high of 184 trillion US dollars with the United States, China and Japan accounting for more than half of it. According to the IMF report, the amount in nominal terms is the equivalent of 225% of the world GDP in 2017.
On average, the world’s debt now exceeds 86,000 dollars per person, which is more than two and half times the average income per-capita.
MD of International Monetary Fund - Christine Lagarde, Headquarters in - Washington DC, USA.

Amazon India signs MoU with small units body
Amazon India partnered with the Federation of Indian Micro and Small & Medium Enterprises (FISME) to empower micro, small and medium enterprises (MSMEs) to leverage growth opportunities in the e-commerce sector.
Amazon.in in collaboration with FISME will conduct various events and workshops across the country that will enable and encourage the MSMEs in India to sell their products to consumers from India and across the globe by leveraging e-commerce marketplace solutions.

December 16

4 Indian PSUs in top 100 arms producers
Four Indian companies figure among the world’s top 100 arms producers in 2017, according to the latest rankings released by SIPRI, a Stockholm-based think tank.
Arms sales of the four Indian companies, all state-owned, totalled $7.52 billion in 2017, up 6.1% from the previous year.
Arms sales of all 100 arms-producing and military services companies (excluding those from China) in the list add up to $398.2 billion, which was 2.2% higher than the sales in 2016 and marks the third consecutive year of growth

Govt adds Korean Won, Turkish Lira in list of currencies for exchange rates
The government included two currencies Korean Won and Turkish Lira in the list of currencies for which it notifies the exchange rate for assessing the value of imports and exports.
Currently, the Central Board of Indirect Taxes and Customs (CBIC) notifies exchange rates for 20 currencies for the purpose of valuation of imported and exported goods and it has been now decided to include two more currencies Won and Lira in the list.
Under Section 14 of the Customs Act, 1962, the CBIC notifies the Rate of Exchange for the purpose of conversion of foreign exchange to Indian Rupees (INR) and vice versa for assessment of imports and exports.
About Central Board of Indirect Taxes and Customs:
Chairperson: S. Ramesh
Headquarters: New Delhi

EU parliament approves 'world's largest' free trade deal with Japan
The European Parliament approved a free trade agreement between Japan and the EU, covering 635 million people and almost one-third of the world's economy.
Dubbed the world's largest free trade agreement, the EU-Japan Economic Partnership Agreement will remove duties on almost all agricultural and industrial products as well as open up the service sector and procurement. It also moves to eliminate non-tariff barriers to trade.
About European Union:
Headquarters: Brussels, Belgium
President of the European Parliament: Antonio Tajani
About Japan:
Capital: Tokyo
Currency: Japanese yen
Prime Minister: Shinzō Abe

Sebi eases norms around cyber security ops for small market intermediaries
Market regulator Securities and Exchange Board of India (Sebi) relaxed guidelines pertaining to setting up cyber security operations centre for small market intermediaries as they lack knowledge in cyber security.
The decision has been taken after discussions with market participants.
During the meeting it was noted that compliance with cyber security guidelines may be onerous for smaller intermediaries because of lack of knowledge about cyber security and also the cost factor involved in setting up own security operations centre.

December 19

Three-day 7th round of India – South Korea CEPA negotiations held in South Korea
The three day 7th round of India – South Korea Comprehensive Economic Partnership Agreement (CEPA) negotiations concluded in Seoul, South Korea.
Delegation from Indian sugar industry was representing India in the CEPA negotiations.
The meetings were arranged by the Indian Embassy in Seoul.
Korea and India signed the Comprehensive Economic Partnership Agreement in Seoul on 7 August 2009 and was operational zed with effect from 1 January 2010.
About Korea:
President: Moon Jae-in
Currency: South Korean won
Capital: Seoul

December 20

UAE to deposit $3 billion in Pakistan central bank to help Islamabad's economic woes
The United Arab Emirates will deposit $3 billion in the central bank of Pakistan to help "enhance liquidity" as the country struggles with a balance of payments crisis.
The transfer of 11 billion dirhams by the government-owned Abu Dhabi Fund for Development (ADFD) is expected to be carried out in the coming days.
UAE
Capital: Abu Dhabi
Currency: Dirham

December 21

Facebook is developing a cryptocurrency for WhatsApp money transfers feature in India
Earlier this year, Facebook announced the formation of a special team, lead by former PayPal president David Marcus, that would explore the usage of Blockchain-based technologies. However, not much is known about the company's plans except that it has been on a hiring spree ever since.
But now, a new report suggests that the Facebook's blockchain division is reportedly working on developing a cryptocurrency that would enable WhatsApp users to transfer money on its social messaging platform. The company is planning to introduce its virtual currency in India first.
According to a report by Bloomberg, the social media giant is working on developing a type of cryptocurrency called "stablecoin" that would enable money transfers on WhatsApp.

December 22

India, Japan Sign Exchange of Notes and Loan Agreements
India and Japan have signed Exchange of Notes and Loan Agreements on Japan’s Official Development Assistance Loan to India.
The Notes were exchanged between Dr. C.S. Mohapatra, Additional Secretary in Department of Economic Affairs, Union Ministry of Finance and Kenji Hiramatsu, Ambassador of Japan to India on Japanese official development assistance loan for three projects.
India and Japan Exchanged notes on Japanese Official Development assistance loan of Yen 105.497 billion for Chennai Metro Project (Phase 2), Program for Japan-India Cooperative Actions towards sustainable Development goals in India and Project for Dairy Development.
These 3 projects are:
(a) Chennai Metro Project (Phase 2) (I) for Japanese Yen (JPY) 75.519 billion,
(b) Program for Japan-India Cooperative Actions towards Sustainable Development Goals in India for JPY 15.000 billion,
(c) Project for Dairy Development for JPY 14.978 billion.

December 23

GST Council cuts rates on 17 items, 6 services; rationalises 28% slab
In a relief to the common man, the GST Council cut rates on 23 commonly used goods and services, including TV screens, movie tickets and power banks.
As per the announcement made by Finance Minister Arun Jaitley, the annual revenue implication of the rate cuts would be Rs. 5,500 crore.
28% slab rate will only be applicable to 28 items now.
Now, the 28% slab is restricted to only luxury and sin goods, apart from auto parts and cement tax rates on which could not be cut due to the high revenue implication.
GST on movie tickets costing up to Rs. 100 was cut to 12% from 18%, while tickets over Rs. 100 will attract 18% tax, against 28% earlier. This will have a revenue implication of Rs. 900 crore.

December 24

Government moves to enhance bank recapitalization outlay to Rs. 1,06,000 crore in the current financial year
Government moved proposal in Parliament for enhanced bank recapitalization outlay from Rs. 65,000 crore to Rs. 1,06,000 crore in the current financial year to propel economic growth, cementing India’s position as the fastest growing economy of the world.
This would enable infusion of over Rs. 83,000 crore in the coming few months in Public Sector Banks (PSBs).

GDP inching up to 7.4% in FY2020 and 7.2% in FY2019: ICICI Bank
ICICI Bank projected the GDP to increase to 7.4% in 2019-20.
Its growth forecast for FY2019 is at 7.2% mainly due to slow consumption.
It states that one of the biggest factors restricting growth will be the real estate and small-scale units as they are yet to recover from the effects of GST and demonetization.

December 25

RBI to soon release new Rs. 20 bank note
The Reserve Bank of India (RBI) will soon introduce a new Rs. 20 currency note with additional features, according to a document of the central bank.
The central bank has already issued new look currency notes in the denominations of Rs. 10, Rs. 50, Rs. 100, and Rs. 500, besides introducing Rs. 200 and Rs. 2,000 bank notes.
The new look notes are being introduced since November 2016 under Mahatma Gandhi (New) series. These are different in size and design compared to the notes issued previously.

December 26

Govt extended ban on import of milk products from China for 4 months will April 23, 2019: DGFT
The Directorate General of Foreign Trade (DGFT) announced extension of ban on import of milk and its products, including chocolates, from China for four months till April 23, 2019.
The ban was first imposed in September 2008 and later extended due to the suspicion of presence of melamine in some milk consignments from China.
The ban has been imposed as a preventive measure as India doesn’t import milk and its products from China.
India is the world’s largest producer and consumer of milk. It produces around 150 million tonne milk annually.
Uttar Pradesh is the leading state in milk production, followed by Rajasthan and Gujarat.
About the Directorate General of Foreign Trade (DGFT):
Under Ministry of Commerce.
Headquarters: New Delhi.
Director General: Shri. Alok Chaturvedi.

December 27

CAGR of security-service SMEs to grow at 18-20% in the next 2 FYs: CRISIL Research
According to a research from CRISIL, the compound annual growth rate (CAGR) of security-service small and medium enterprises (SMEs) would be at 18-20% over the next 2 financial years. CAGR of security-service SMEs to grow at 18-20% in the next 2 FYs. Security-service SMEs consist of 60-65 per cent of market share and have shown the similar growth rate of 18-20% for the past 3 financial years.
The growth would be determined by the following factors:
(1) Infrastructure development
(2) Urbanization
(3) The growing incidence of crime and terrorism
(4) The low police to population ratio.
In terms of infrastructure development, the CAGR is at 5% for the past 3 years (calendar years 2015 to 2018) and would be the same for the next 3 years.
CRISIL Headquarters: Mumbai.

New e-commerce FDI norms to bring 'level playing field': Domestic retailers
The new changes to Foreign Direct Investment (FDI) policy for e-commerce will bring in a ‘level playing field’ for brick-and-mortar retailers.
The Union government announced new changes to the FDI policy for e-commerce, aimed at checking predatory pricing and deep discounting.
The government barred e-commerce players from forcing vendors to have exclusive deals on its portals. The government also aimed at enforcing a cap of 25% on the inventory that a marketplace entity or its group companies purchases from a vendor.
Ministry of Commerce & Industry:
Minister: Suresh Prabhu
Minister of State: C.R. Chaudhary
Headquarters: New Delhi

December 28

Nepal caps expenditure of its citizens in India
Nepal imposed a monthly limit on the amount of Indian currency its citizen can spend in India.
According to a spokesperson of the Nepal Rastra Bank (NRB), a Nepali citizen would be unable to spend more than INR 1 lakh per month while paying for goods and services in India.
The decision was taken to address the country’s current account deficit. The policy applicable to prepaid, credit and debit cards of Nepali banks came into effect.
About Nepal:
Capital: Kathmandu,
Currency: Nepalese rupee.
President: Bidhya Devi Bhandari

HDFC Group pipped Tata Group as India’s largest business house worth Rs. 10.40 lakh crore
According to Bloomberg data, Deepak Parekh-led HDFC group overtook Tata Group become the country’s largest conglomerate in terms of market capitalisation.
The total Market Capitalization (MACP) of the group’s five listed companies is currently valued at Rs 10.40 lakh crore, which is Rs. 1,185 crore more than that of Tata Group.
HDFC Bank ,a part of the group, is only the third company in Indian corporate history to cross the Rs. 5 lakh crore market capitalization threshold, after TCS (Rs. 7.16 trillion) and RIL (Rs. 7.09 trillion).
Mukesh Ambani-led Reliance group is third in market cap ranking at Rs 7.06 lakh crore.

December 29

India pips China in FDI inflows for the first time in 20 years
According to data from Dealogic, a global Mergers & Acquisitions (M&A) and capital markets data provider, India has been getting more foreign investment than its neighbour China for the first time in two decades.
In 2018, India whose financial market is supported by stable fundamentals, a bankruptcy code and fresh opportunities in sunrise sectors, saw more than $38 billion of inbound deals compared with China’s $32 billion.
China, which has historically been the favourite for emerging market bets, is facing slowdown nowadays because of its trade standoff with the United States.
About China:
Capital: Beijing
Currency: Renminbi
President: Xi Jinping

Center Doubles Export Incentives for Onion Farmers to 10%
The Government of India doubled export incentives for onion farmers to 10% in lieu of the sharp decline in the onion prices in the recent weeks due to the supply of new crop from major onion producing centers in Maharashtra, Gujarat and Madhya Pradesh.
This move will result in better price for onion in the domestic markets and this will also help the farmers who have harvested their produce recently and who have sown their crops expecting better prices.
The existing export incentive was 5% and it is granted under the Merchandise Exports from India Scheme (MEIS). Also, the export incentive for onions before July, 2018 was zero.
About Ministry of Agriculture and Framer’s Welfare:
Union Minister: Shri Radha Mohan Singh
Ministers of State: Shri Purushottam Rupala, Smt. Krishna Raj and Shri Gajendra Singh Shekhawat

December 30

Pakistan Cabinet approves issuance of 'Panda bonds' in Chinese currency
Pakistan Cabinet approved the issuance of Pakistan’s one-of-its-kind Panda Bonds after a meeting presided by Prime Minister Imran Khan.
The approval for issuance of bonds in the capital markets of China was given effect to the delay issuance of US dollar dominated Euro bonds worth 3 billion dollars.
The interest rate may range above 5.5% but the final price would be determined only at the time of launching the bond. The size, tenure and pricing would be determined on the basis of market response.
The bonds will help the government diversify the investor base of capital market issuance and provide a source of raising Renminbi, the Chinese Currency.
About Pakistan:
Capital: Islamabad
Currency: Pakistani Rupee
President: Arif Alvi

India’s Fiscal Deficit Hits Around 115% of FY19 Target for the Apr-Nov period; main reason being deficit in Tax receipts
India’s Fiscal deficit for April-November stood at Rs. 7.16 lakh crore which is 114.8 per cent of earlier full-year estimates of fiscal deficit that was predicted to be Rs 6.24 lakh crore, or 3.3% of the GDP, for FY19.
It is slightly more than the 112% recorded in the same period last fiscal i.e., FY18.
The total tax receipts comprised of:
Tax revenues: Rs. 7,31,669 crore
Non-Tax Revenue: Rs. 1,38,637 crore
Non-Debt Capital Receipts: Rs. 26,277 crore.
Rs. 4,31,963 crore has been transferred to the State Governments as State Tax.
Finance Ministry:
Union Minister: Shri Arun Jaitley.
Minister of State: Shri Shiv Pratap Shukla, Shri P. Radhakrishnan

December 31

Arunachal touches record high revenue generation
According to a senior official of the Arunachal Pradesh government, the government has remarkably succeeded in increasing the state revenue generation in the past two years with the record revenue collection of Rs 1598.49 crore during the year 2017-18 which is a new high in the last 30 years.
The revenue generation had crossed the Rs. 1,000 crore mark for two consecutive years since Arunachal Pradesh attained statehood in 1987 as in 2016-17, the revenue generation was Rs. 1,253.57 crore
The improvement in result is believed to be achieved through the Team Arunachal mantra which has ignited minds of the employees to deliver goods to the people of the state.
The government in the state has set a target to reach the Rs. 2,000 crore mark in 2018-19. The source of revenue generation by the state government includes, share of central taxes, state taxes among others.
About Arunachal Pradesh:
Chief Minister: Pema Khandu
Governor: B.D. Mishra
Capital: Itanagar
National Parks (NP): Namdapha NP, Mouling NP


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