Manoj's Feed
May 22, 2015

India plans new oil subsidy rules to push ONGC stake sale

NEW DELHI (Reuters) – India plans to reform rules governing the level of discounts upstream state oil firms including ONGC offer to retailers, a senior finance ministry official said on Friday, a move that could expedite the sale of a stake in the company.

The government hopes to sell shares in ONGC and India Oil Corp. to raise about a third of its budget target for asset sales of $11 billion – and reduce its fiscal deficit to 3.9 percent of GDP in the 2015/16 fiscal year.

May 22, 2015

Jaitley promises better tax regime for companies

NEW DELHI (Reuters) – Finance Minister Arun Jaitley struck a conciliatory tone towards investors on Friday, promising to tax corporate profits at competitive rates and saying the government would do all in its power to implement a new goods and services tax (GST) on time.

Foreign portfolio investors have complained about surprise tax claims and, during a news conference to mark Prime Minister Narendra Modi’s first year in power, Jaitley said a judicial resolution was in the works.

May 22, 2015

India’s Jaitley promises better tax regime for companies

NEW DELHI, May 22 (Reuters) – Indian Finance Minister Arun
Jaitley struck a conciliatory tone towards investors on Friday,
promising to tax corporate profits at competitive rates and
saying the government would do all in its power to implement a
new national sales tax on time.

Foreign portfolio investors have complained about surprise
tax claims and, during a news conference to mark Prime Minister
Narendra Modi’s first year in power, Jaitley said a judicial
resolution was in the works.

May 21, 2015

RBI seeks to simplify forex rules

NEW DELHI (Reuters) – The Reserve Bank of India (RBI) is working to liberalise its foreign exchange rules to make it easier to do business with Asia’s third-largest economy, Deputy Governor H.R. Khan said on Thursday, a step that could support flagging exports.

In line with Khan’s announcement, the central bank took a small step by simplifying the process for Indian companies to raise rupee funds offshore.

May 21, 2015

India’s central bank seeks to simplify forex rules

NEW DELHI, May 21 (Reuters) – India’s central bank is
working to liberalise its foreign exchange rules to make it
easier to do business with Asia’s third-largest economy, Deputy
Governor H.R. Khan said on Thursday, a step that could support
flagging exports.

In line with Khan’s announcement, the central bank took a
small step by simplifying the process for Indian companies to
raise rupee funds offshore.

May 18, 2015

India seeks to speed up foreign deals with “one-stop shop” – sources

NEW DELHI, May 18 (Reuters) – India’s finance ministry,
seeking to speed up deals with outside investors, is set to take
full control of the oversight of more than $40 billion a year in
foreign direct investments and share purchases, two government
sources said.

Hitherto, both the government and the Reserve Bank of India
(RBI) had shared oversight of direct investment and indirect
purchases through proxy instruments.

May 15, 2015

India’s export slump cast shadow on growth prospects

NEW DELHI (Reuters) – India’s exports slumped for the fifth straight month in April from a year earlier, dragged down by fall in global demand that has cast a shadow over Prime Minister Narendra Modi’s goal of achieving over 8 percent growth in 2015/16 fiscal year.

The ongoing weakness in merchandise exports, which account for about 16 percent of India’s roughly $2 trillion economy, will weigh on January to March economic growth numbers due to be released on May 29.

May 13, 2015

Delayed reforms, market woes tarnish end to Modi’s first year

NEW DELHI/MUMBAI (Reuters) – A surprise delay to India’s first nationwide sales tax marks one of the most painful setbacks suffered by Prime Minister Narendra Modi’s government as it nears the end of a first year in power, with markets falling and farmers braced for a poor monsoon.

Investors had hoped that the ruling Bharatiya Janata Party’s majority in the Lok Sabha, the lower house of parliament, would ensure Modi could push through reforms far more smoothly, but that assumption has taken a battering.

May 8, 2015

India to seek end to non-tariff barriers during Modi’s China visit

NEW DELHI (Reuters) – India will seek abolition of non-tariff barriers during Prime Minister Narendra Modi’s visit to China next week, officials said, as part of efforts to reduce a widening trade deficit and boost local industry.

New Delhi wants greater market access in sectors such as pharmaceuticals, IT services and farm products including bovine meat, Trade Minister Nirmala Sitharaman said on Friday.

May 8, 2015

RBI’s Rajan puts rupee convertibility back on agenda

MUMBAI/NEW DELHI (Reuters) – Fresh from his success in securing a mandated inflation target, Reserve Bank of India (RBI) Governor Raghuram Rajan has revived another long dormant reform as he seeks to modernise India’s financial architecture: a freely floating currency.

Rajan called in April for full convertibility in “a short number of years”, having first raised the prospect when he took office in 2013. While it is unlikely to be realised during his current term, he is laying the ground work for it to happen.