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8 Economy & Business THE ECHO OF I NDIA KOLKATA Wednesday June 1, 2016 Indian economy grows at 7.6% in FY'16, 7.9pc in Q4 NEW DELHI: Indian economy grew at 7.9 per cent in the fourth quarter of 2015-16 taking the overall GDP growth to a five-year high of 7.6 per cent in the fiscal, mainly on account of good performance of manufacturing and farm sectors. According to the data released by the Central Statistics Office (CSO), the manufacturing sector during the fourth quarter recorded a growth rate of 9.3 per cent while the farm sector grew at 2.3 per cent. The CSO has also revised the Gross Domestic Product (GDP) growth rate for previous quarters of 2015-16 -- 7.5 per cent for April-June, 7.6 per cent for JulySeptember and 7.2 per cent for October-December. The 7.6 per cent growth rate for 2015-16 is the same as projected by the CSO in its advance estimates of national income earlier in February this year. Virat Diwanji, Sr. Ex ecutive Vice President and Head – Branc h Banking and Acquisitions, Kotak Mahindra Bank Limited addressing a press conference in Jaipur on Tuesday. RIL exits Africa oil retail biz, sells entire 76% GAPCO stake NEW DELHI, MAY 31 /--/ Reliance Industries has exited its African fuel retail business by selling its entire 76 per cent stake to Total SA of France for an undisclosed sum. Total, which is already a leading retailer of petroleum products in Africa, will acquire Gulf Africa Petroleum Corporations (GAPCO) assets in Kenya, Uganda and Tanzania. RILs overseas arm Reliance Exploration & Production DMCC owned 76 per cent stake in GAPCO while Fortune Oil Corp, Mauritius held the remaining. Total is acquiring stake of both the firms. "Reliance Exploration & Production DMCC, an indirect wholly owned subsidiary of RIL and Total, have executed a greements on May 30, 2016 for the sale of the entire 76 per cent interest held by REPDMCC in the Mauritiusincorporated Gulf Africa Petroleum Corporation (GAPCO)," RIL said in a statement. The proposed transaction is subject to regulatory approvals and other closing conditions that are customary for similar transactions. It, however, did not disclose the deal size. GAPCO is a holding company incorporated in Mauritius with affiliates in Kenya, Uganda and Tanzania which are primarily engaged in petroleum product import and trading, storage, distribution, marketing, supply and transportation of oil products in East Africa. On conclusion, Total will get ownership of two logistical terminals in Mombasa in Kenya and Dar es Salaam in Tanzania, as well as a retail network of over 100 service stations. The acquisition will be complementary to Totals existing operations in Kenya, Uganda and Tanzania and will strengthen its logistics in the region. RIL had in September 2007 bought a clutch of fuel stations and storage facilities in one of the fastest growing regions in Africa. "Since the acquisition of 76 per cent equity interest in GAPCO by REPDMCC in 2007, GAPCO has significantly grown and is one of leading petroleum marketing companies in East Africa, which now operates 108 retail outlets and owns 2,60,000 kilolitre of storage capacity," the statement said. The net proceeds for the sale will be finalised on completion of the transaction which is expected to be within the coming months, it added. RIL said the agreement signed by Reliance Exploration and Production DMCC (REPDMCC) to sell its interest in GAPCO was part of a joint transaction, wherein both REPDMCC and the minority shareholder have agreed to sell their entire respective holdings in for cash. "This acquisition is in line with Totals g rowth strategy for the distribution of petroleum products and services in Africa, which aims at expanding in fastgrowing regions while maintaining high profitability," said Momar Nguer, President, Total Marketing & Services. (PTI) J&K Budget: Fee waiver for school girls; hike in VAT SRINAGAR, MAY 31 /--/ Unveiling a Rs 64,669 crore budget for 2016-17, the Jammu and Kashmir government on Monday announced a slew of measures for women, including a fee waiver for girls in government schools, while a number of things including mobiles, garments and packed food would turn costlier. Jammu and Kashmir Finance Minister Haseeb Drabu also announced for women four police stations across the state and a dedicated city bus service in Srinagar and Jammu, while reserving 10 per cent area in industrial estates for their enterprises. On taxation front, he proposed to hike VAT by 1 per cent on items including cell phones, tablets and iPads, imitation jewellery, readymade garments, hoisery goods, packed frozen food, juices and ready-toserve food. Besides, all online purchases would be subjected to an entry tax, as against an earlier threshold limit of Rs 5,000, while an entertainment duty of Rs 50 per connection will be levied a month on satellite and cable TV operators. The aviation turbine fuel Levy will go up from 20 to 25 per cent, while the toll levied on vehicles will also go up. At the same time, Drabu proposed to exempt from VAT the lodging services provided by hotels and guest houses, as also for carpets and agriculture produce. The budget estimates envisage a deficit of nearly Rs 3,000 crore as the revenue receipts are expected to be to the tune of Rs 61,681 crore during the current fiscal. "This fiscal the total receipts are estimated at Rs 61,681 crore. Of these 51,460 crore are revenues and Rs 10,221 crore in the form of borrowings. The state's own revenues are estimated to be Rs 23,737 crore while Rs 9,500 crore will come from the state's share in central taxes. "In addition to this Rs 27,721 crore are to flow as other central transfers," Drabu said in his Budget speech. The budget presentation, which was earlier scheduled to be held on January 18, had to be deferred in the wake of death of the then Chief Minister Mufti Mohammad Sayeed on January 7. Giving details of the Budget estimates, Drabu said Rs 19,694 crore will be the capital expenditure while Rs 44,975 crore will be the revenue expenditure. "What these large numbers mean is that we are spending Rs 2.50 in order to be able to spend Re 1.00 on development. To reduce this ratio from 2.5:1 and at least bring it at par with the development spend is the first big challenge. "We have made a good beginning in this budget. But the road ahead is difficult as salaries and pensions...account for more than Rs 23,000 crore which is more than the development expenditure in the year," he added. (PTI) News In Brief Ashok Lavasa designated FinSecy NEW DELHI, MAY 31 /--/ Expenditure Secretary Ashok Lavasa, a Haryana cadre IAS officer, was today designated as the Finance Secretary. The post has been lying vacant since his predecessor Ratan Watal retired in April. As per the convention, the senior-most among the five secretaries in Finance Ministry is designated as the Finance Secretary. Lavasa is from 1980 batch, while his batchmate Shaktikanta Das currently serves as Secretary, Depar tment of Economic Affairs, in the Finance Ministry. Swamy asks ED to expedite probe against Vadra BEIJING, MAY 31 /--/ BJP MP Subramanian Swamy Tuesday asked the Enforcement Directorate (ED) to speed up the inquiry ag ainst Rober t Vadra over allegations that he has acquired a "benami" property in London. "I think the case is already under investigation by the ED and it is only a matter of time before a case is registered for summoning of Vadra", Swamy, who is here while on his way to Kailash Manasarovar yatra in Tibet, said. ISB plans to attract students from Africa, ASEAN HYDERABAD, MAY 31 /-/ The Indian School of Business (ISB) plans to attract potential students from Africa and the ASEAN region, as a part of its larger strategy to enhance the international diversity. ISB said it sees these countries as an untapped talent pool that has the potential to contribute to the leadership needs of emerging economies and the world. In a statement, ISB also said competition to get into the one-year Post Graduate Programme in Management (PGP) was intense this year with the school seeing a 28 per cent increase in applications compared to the previous year. (PTI) Compliance window for domestic black money opens today NEW DELHI, MAY 31 /--/ The 4-month disclosure window giving an opportunity to domestic black money holders to come clean by paying tax and penalty of 45 per cent on such assets will open on Wednesday. People who have made money through corrupt means will not be allowed to take advantage of the disclosure window. Under the Income Declaration Scheme, persons making disclosure of unaccounted assets will be given time up to November 30 to pay taxes, penalty and surcharge totalling 45 per cent at the fair market value. The Finance Ministry officials have also held an online 'talkathon' to create awareness a bout the disclosure window. Earlier in the month, CBDT came out with a 14-Frequently Asked Questions (FAQs) and a circular to explain the provisions of the income disclosure window. It was clarified that the declaration made under the scheme will not be used against the declarants under the Income-Tax Act or Wealth Tax (now abolished). There will also be an immunity from Benami Transactions (Prohibition) Act. Finance Minister Arun Jaitley had said on Monday that people with undisclosed assets should use the limited period income declaration window, beginning on Jaitley meets investors, pitches for infra funding TOKYO, MAY 31 /--/ Pitching for investment in Indias first sovereign wealth fund NIIF, Union Finance Minister Arun Jaitley Tuesday met global investors and promised them an "advantageous" tax regime in the country. The Rs 40,000-crore National Investment and Infrastructure Fund (NIIF) was set up in December and is an investment vehicle for funding commercially viable greenfield, brownfield and stalled projects. During his meeting with global investors, the Minister highlighted the second-generation reform measures undertaken by the government by way of opening up various sectors to FDI as well as making India an investor friendly environment. According to sources, the Minister also pitched for further infrastructure investment saying that efforts are on to make India the most advantageous tax jurisdiction. Also, the Minister said the government has followed fiscal discipline following the rule book of fiscal consolidation. During the meeting, Japanese investors were positive about infrastructure investment, sources said. The Minister also highlighted various avenues for investment, including in the renewable energy space, during the hour-long meeting. The government is in the process of appointing a CEO for the NIIF, in which 49 per cent is held by the government and remaining would be held by private investors. ‘As China slows down, India can be powerful driver’ TOKYO: With China slowing down, the world is now looking for "other shoulders to rest its growth on" and India, with planned infrastructure spending to bridge deficit, can be a very powerful driver, Jaitley said on Tuesday. Speaking at 'The Future of Asia' Conference organised by Nikkei Inc, he said China shouldered almost 50 per cent of global growth over the last few years. With its economy slowing down, "the ability of China to shoulder that percentage of growth may not be there and therefore the world also is now looking for other shoulders to rest its growth on. "And since we have a lot of infrastructure deficit and expenditure still to undertake and I think all that is going to be a very powerful driver of economic growth in India," he said. Jaitley, who is on a six-day investor-wooing visit to Japan, however, said no one country can really replace another because the world has enough space for major economies to emerge. China started growing at a much faster pace ahead of India and therefore has maintained a higher level of GDP. But the current slowdown has meant it is "going through a structural transition into a more consumption, service oriented economy", he said. And so India's growth rate has moved higher than China. "But China will always remain a major economy," he said. Thai institute offers tech for 'Clean India' campaign BANGKOK, MAY 31 /--/ A Thai technology institute is in talks with India to help it in 'Clean India' campaign by marketing its four innovative sanitation products that reduces transportation of sludge and fecal matter. The sanitation products unveiled by the Asian Institute of Technology (AIT) recently in Bangkok are the result of a fiveyear project titled 'Reinventing the Toilet' funded by the Bill & Melinda Gates Foundation. The AIT's four products include a sanitation truck that cleans all the sludge, a cyclone toilet that uses gravity for cleaning, a pit that treats sludge before discharging it into the environment, and a solar toilet. AIT said these sanitation products would help Thailand take the lead in improving the quality of life in both Asia and Africa, where they will be implemented. It is already implementing these technologies in both Thailand and Vietnam and said it is in an advanced stage of negotiations for its commercialisation in India. "The products are aimed at on-site cleaning aimed at reducing transportation of sludge and fecal matter to treat plants, Thammarat Koottatep, Principal Investigator of the project, said. "The idea is to have an on-site treatment that is decentralised so that we can avoid transportation of fecal matter over long distances," he said. "We have already ordered for the manufacture of these products for our clients in Vietnam, and we are talking to parties in India who wish to use them in their Clean India campaign," he added It includes a Hydro-Cyclone cube toilet that uses gr avity and the concept of a cyclone to separate liquid and solid wastes. Disinfection is achieved by heating and the disinfected fecal matter is used as a solid conditioner. A complete treatment of blackwater results in a pathogen-free byproduct which is reusable. Women workers in UP put at 164 lakhs: Assocham LUCKNOW, MAY 31 /--/ Uttar Pradesh has the highest number of women workers at 164 lakhs, according to a new survey conducted in four states. The study named 'Female Labour Force Participation in India', was conducted by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) along with knowledge firm Thought Arbitrage Research Institute (TARI) in Andhra Pradesh, Himachal Pradesh, Madhya Pradesh and Uttar Pradesh. "UP has the highest percentage (67.5 per cent) of selfemployed women in urban areas among the states selected for study, however UP has the largest gap between urban and rural workers among these states," said DS Rawat, Secretary General of ASSOCHAM while releasing the findings of the study. "Of 33.17 lakhs women employed in micro, small and medium enterprises (MSMEs) across India, UP employs over two lakhs," Rawat said. "UP also has the highest absolute number of workers both men and women --498.5 lakhs and about 159.7 lakhs respectively, however it also accounts for the largest gender gap of about 338.8 lakhs people," he added. Initiatives like Beti Bachao Beti Padhao, Make in India, Start-up India and others are a positive step in the direction to improve women labour force participation in India, the study said. The ASSOCHAM-TARI study suggests that promoting skill training programmes for women, creating employment opportunities across India, setting up child care centres in large numbers, ensuring women safety and security in every sphere through efforts by both the Central and state governments are imperative to boost women labour force participation in India. It analysed India's performance in women labour force participation (FLFP) in comparison with the rest of the world and identified factors that determine FLFP in India along with barriers to its growth. It presents a state-wise analysis of Wednesday, if they want to "sleep well". "Starting from day after tomorrow, the new window opens and I will advise all those w ho have any undisclosed asset to declare it and pay the tax and sleep well. Otherwise, the way the disclosures are becoming more and more public, they will run into serious trouble," Jaitley had said. . The declarants will be liable for capital gains tax on sale of such assets in future. The scheme, however, will not apply in relation to prosecution of any offense punishable under the Prevention of Corruption Act, 1988. "Therefore, declaration of such undisclosed income cannot FLFP in four states selected on a non-arbitrary criteria with a special focus on UP as it is India's most populous state. It pointed out that though there was a spurt in the number of working women in India during 2000-2005, increasing from 34 per cent to 37 per cent, the FLFP rate declined continuously thereafter and reached 27 per cent in 2014. The gap between rural men and women labour force participation in India in 2011 stood at about 30 per cent while in urban centres gap was more pronounced (about 40 per cent). This can be attributed to social and cultural curtailment and often the lack of work opportunities, it said. (PTI) be made under the scheme," the FAQs said, adding that such declaration will amount to misrepresentation of facts and hence void. On a question whether a person can declare undisclosed income which has been acquired from money earned through corruption, the CBDT in its FAQ said "No". If a declaration is held as void, the provisions of the Income-tax Act will apply in respect of such income as they apply in relation to any other undisclosed income. The scheme for domestic black money holders follows a similar one for those having undisclosed foreign assets. ‘Suzuki's Gujarat plant will be operational in 2017’ TOKYO, MAY 31 /--/ Japanese automaker Suzuki Motor Corp Tuesday said its wholly owned car plant in Gujarat, where a total investment of Rs 18,500 crore has been envisaged, will begin operations from ne xt year. T he Gujarat facility is also Suzuki Motor's first wholly owned car plant in India and being set up bypassing its Indian unit. This plant will supply vehicles and components exclusively to Maruti Suzuki India Ltd. India is its biggest market. "As planned, operations will start in 2017... Our plan is going accordingly," Suzuki Motor Corp Chairman Osamu Suzuki told reporters after meeting Finance Minister Arun Jaitley here. Suzuki Motor owns 56 per cent of Maruti Suzuki India - the country's biggest automaker controlling nearly half of the market. It expects the bulk of its growth to come from India, which is projected to over take Japan and Germany by 2020 to become the thirdbiggest market in the world after China and the US. In the first phase, the Gujarat factory will have a capacity to make 2,50,000 vehicles annually, and will start operations in 2017. Suzuki's car production in India will reach 2 million units by 2022 from the 1.4 million at present. Asked about the performance of the India unit, 86-year- old Suzuki said, "When it comes to Maruti Suzuki, the performance is going up very well. I am sure Maruti Suzuki has been loved by the Indian people. So I am very much satisfied." Suzuki Motor Corp, Japan's secondbiggest minicar maker, is shipping India-built cars to Japan for the first time. Baleno hatchback, made by its subsidiary Maruti Suzuki India Ltd, went on sale in Japan in March. At that time, Chairman Osamu Suzuki had said the company was looking to "dismiss the prejudice" against India-made cars with Baleno, which is equipped with standard safety features including a radar system that mitigates collisions. Core industry sectors grow by 8.5%c in April NEW DELHI, MAY 31 /--/ The production of eight core sectors grew by 8.5 per cent in April on the back of pick up in output of refinery products, fertilisers, steel, cement and electricity. The eight sectors - coal, crude oil, natural g as, refinery products, fertilisers, steel, cement and electricity - had shrunk by (-) 0.2 per cent in April last year. Also, the core sector's growth for April is higher than 6.4 per cent recorded in previous month, signalling a recovery in infrastructure segments. As per the data released by the Commerce and Industry Ministry, output of refinery products jumped by 17.9 per cent as against a negative growth of 2.9 per cent in April 2015. Production of fertilisers, steel, cement and electricity grew by 7.8 per cent, 6.1 per cent, 4.4 per cent and 14.7 per cent, respectively, during the month under review compared to the year ago period. However, production of coal, crude oil and natural gas declined in April this year. While coal output dipped by 0.9 per cent, crude oil and natural gas production declined by 2.3 per cent and 6.8 per cent respectively. In 2015-16, the eight core sectors grew by 2.7 per cent, while it had expanded by 4.5 per cent in 2014-15.