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Banikinkar Pattanayak

Articles By Banikinkar Pattanayak

874 Articles

Export hubs urge migrant workers not to leave

Large-scale migration following a pan-India lockdown in March last year had not just wrought havoc on the workers themselves but also crippled the production lines of companies, especially in labour-intensive sectors such as

Exporters apprehend that if migrant workers start leaving, it could impair their production again at a time when order flow from key markets has witnessed an uptick. For instance, exports of gems and jewellery surged 79%, year-on-year, in March, while garment exports rose 28% and leather exports by 22%.

India, EU to resume formal FTA talks in May

After a gap of about eight years, India and the EU will resume formal negotiations for a trade and investment agreement on May 8, with both sides aiming to expedite a deal to aid economic growth in the post-pandemic era.

trade

Over Rs 35,000-crore export aid held up amid trade recovery

The RoDTEP scheme is on a “solid-footing” and is in sync with best global practices, so the government shouldn’t worry about any challenge at the WTO, Sahai asserted.

Inordinate delay in release of these funds could accentuate a Covid-induced liquidity crunch, limiting exporters’ capacity to ramp up supplies even as demand from key markets has improved, they added.

US to India: Explain new agri cess, RoDTEP scheme

The RoDTEP scheme has, from January 1, replaced the Merchandise Exports from India Scheme (MEIS), which was successfully challenged by the US at the WTO on ground of being inconsistent with global trade norms.

The MEIS, which was replaced by the RoDTEP, was the largest export incentive scheme under which the government had approved Rs 39,039 crore for FY20.

Defying the Covid-19 pandemic: Buoyant exports of ‘core’ products signal trade edge

India’s exports of 'core' products, or goods excluding petroleum and gems & jewellery, have accelerated at a quicker pace than that of overall merchandise exports month after month since May 2019, belying even Covid-induced

Exports

Insolvency scheme: Govt, regulator finalising pre-pack framework, MSME scheme

The government and the regulator are in the process of finalising a so-called pre-pack insolvency scheme, while a special framework for micro, small and medium enterprises (MSMEs) is almost ready

PLI for textile: Govt targets 50 laggard, high-potential products

In fact, India’s exports of products in the 40 apparel categories, which are targeted under the PLI scheme, stood at just $1.1 billion in 2019, against $140 billion globally. Importantly, Bangladesh’s exports of these pro

Through a Rs 10,683-crore production-linked incentive (PLI) scheme, India, where cotton fibre dominates the textiles and garment value chain, intends to grab a share in this pie.

Hit to exports: Exporters fear low RoDTEP refunds

The Pillai committee was set up only in late July last year to undertake a humongous exercise of recommending RoDTEP rates for thousands of products.

The government has budgeted only Rs 13,000 crore for the RoDTEP scheme for FY22, which is way below the scheme's initial estimated annual cost of Rs 50,000 crore.

PLI for textiles: Turnover, investment limits to be reviewed

Moreover, assessing incremental turnover of companies, especially the unlisted ones, will be a herculean task, given the scope for manipulation between group firms, he added.

A source said given the fragmented nature of the textile and garment sector and the absence of enough large players, the government may be forced to review the turnover or investment criteria. But inclusion of cotton in the scheme seems unlikely at the moment, he added.

Exports To China: Stellar growth begins to slow

However, in the following months, export growth moderated, partly because China mostly sources raw materials or low value-added products (iron ore, certain steel and iron products, cotton, etc) from India where the scope for

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Asset monetisation: Mop-up of over Rs 2L cr seen by 2024

The idea is to boost the non-debt capital receipts, which are currently raised solely via disinvestment of government stakes in central public sector undertakings (CPSEs). In parallel, the government has also adopted a policy

Medium-term inflation targeting framework review: Don’t dilute inflation target, say economists

In a post-Budget interview to FE, economic affairs secretary Tarun Bajaj discounted inflation fears due to elevated deficit, saying the government would deploy much of the resources in creating productive assets.

“Analogously, a target that is fixed above trend renders monetary policy too expansionary and prone to inflationary shocks and unanchored expectations,” they argued.

RBI board meet: Finance minister may allay deficit fears, stress growth push

The minister could also highlight the government’s budgetary goals to boost spending in productive assets (that won’t stoke inflation), establish a development finance institution to aid infrastructure creation and back a

The government has budgeted capital expenditure at Rs 5.45 lakh crore for FY22, which is 26.2% higher than the RE of FY21 and 34.5% larger than the budget estimate (BE) level for this fiscal.

MSME insolvency: Only debtors may get to start bankruptcy process

Similarly, several procedural requirements on issues, such as claims of creditors, may be simplified to make the entire process less rigorous. This is aimed at reducing the cost as well as time required for stress resolution.

msme, insolvency

Bad bank to deepen IBC use; special insolvency framework for MSMEs in the works: IBBI chairman Sahoo

MS Sahoo, the chief of the insolvency regulator IBBI, explains why the Budget proposals for a special insolvency framework for MSMEs as well as a 'bad bank' led by lenders are important.

MS Sahoo

Insolvency resolution Bad bank to deepen IBC use: IBBI chairman MS Sahoo

Asked if the so-called bad bank, proposed in the Budget-2021-22, will in any way reduce the attractiveness of the insolvency and bankruptcy code (IBC) as a tool for bad debt resolution, Sahoo said, on the contrary, it will de

Weeks after formal Brexit agreement, India restarts trade talks with EU and UK

The UK accounted for 16% of India’s $53.7-billion exports to the EU in FY20. Apart from garments, India ships out gem and jewellery, pharma products, footwear and organic chemicals, among others, to the UK in large volumes.

Importantly, both India and the EU sides have now agreed to review the progress of discussions on the proposed bilateral trade and investment agreement on a monthly basis by senior officials.

Govt committed to high capex over next 3 years: Sanjeev Sanyal

Consequently, the capex reversed a 12% drop on year up to September this fiscal to actually rise as much as 21 % by December.

economy

Proposed ARC to be adequately capitalised, says CEA

Moreover, since the ARC-AMC will be a private entity, the decision-making is expected to be swift, as its proposals need not be vetted by the 3Cs.

As per all state budgets, their combined fiscal deficit stood at 2.6% of GDP in FY20 and 2.4% in FY19. According to India Ratings, the states’ fiscal deficit may come in at about 4.6% of GDP in FY21.

Deficit slippage not to stoke inflation: DEA secretary

Bajaj highlighted the government’s commitment to stepping up capital expenditure, with focus on creating large-scale physical infrastructure.

The government has budgetted capital expenditure at Rs 5.45 lakh crore for FY22, which is 26.2% higher than the RE of FY21 and 34.5% larger than the BE level for this fiscal.

G-sec listing on global indices in FY22: DEA secy

Nevertheless, the funds so raised will proportionately reduce the government’s gross domestic market borrowing from the budgetted Rs 12 lakh crore to fund fiscal deficit in FY22, he told FE in an interview.

Stressing the key role that a proposed development finance institution (DFI) will play in realising the government’s ambitious infrastructure creation goals, Bajaj said the DFI may have access to low-cost funds to keep its operations viable.

Bank ARC: No capital from govt, lenders to pitch in

While the government backs the idea of setting up the ARC, or the so-called bad bank, for the resolution of bad debt and cleaning up of the lenders’ books, it will not provide capital for it. Instead, banks — both state-r

Union Budget 2021: A new path to polls with focus on infra spends in key state

Union Budget 2021 India proposes to invest as much as Rs 1.03 lakh crore to build a 3,500-km national highway in Tamil Nadu as part of a move to boost road infrastructure along the economic corridors.

Budget 2021-22, Union Budget 2021, infrastructure projects

Budget 2021: Govt may raise import duties on auto parts, electronics and electrical items

Union Budget 2021 India: Move in sync with Atmanirbhar Bharat, but not unduly protectionist, say officials

Exports

Govt weighing proposal to infuse more capital into state-run general insurers

Typically, the solvency ratio is the size of an insurer’s capital in relation to the risk it takes — assets minus liabilities. It reflects its ability to settle claims.

As much as Rs 3,475 crore was released after the Cabinet approval, while the rest (Rs 6,475 crore) was to be infused later this fiscal in one or more tranches.

Market now getting ready for ultra-fast pre-pack, says Sahoo

“In fact, the market is getting ready for ‘ultra-fast pre-pack’,” MS Sahoo, chairman of the Insolvency and Bankruptcy Board of India (IBBI) who headed an official panel on pre-pack insolvency, told FE in an interview.

However, since the creditors and the debtors already arrive at a concensus on initiating the pre-pack resolution, chances of frivolous litigations under the proposed framework are minimised, analysts say.
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