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The Indian Meteorological Department has predicted above normal rainfall after two successive years of drought in the country. At the same time, the deceleration in the inflation rate, increase in industrial growth and rate cuts by Reserve Bank of India (RBI) suggest a much more favourable environment for the revival of industrial investment.
According to Livemint, for the first time since the National Democratic Alliance (NDA) took over in May 2014, it is facing a favourable confluence of domestic economic indicators. On the domestic front, even as the NDA has stuck to its own fiscal deficit target, the government has focused most of its energy over the last 22 months in addressing the obstructions in the economy.
At the same time, by accepting the recommendations of the Fourteenth Finance Commission, it has reset Centre-state fiscal relations.
With all the indicators pointing in positive direction, the economy looks all set to rebound this year.
Default in repayment of loans running into “lakhs of crores of rupees” prompted the Supreme Court on Tuesday to suggest making public the total outstanding amount without disclosing defaulters’ names. The Reserve Bank, however, resisted the proposal citing the confidentiality clause.
During the hearing, the RBI counsel cited provisions in the RBI Act and the Credit Information Companies (Regulation) Act, 2005 which mandate confidentiality of information.
After failing to reach consensus, the court ordered the parties to jointly formulate issues arising out of disclosure of such information which would form the basis of arguments later, reports Livemint.
Advocate Prashant Bhushan, appearing for NGO Centre for Public Interest Litigation (CPIL), favoured the disclosure of outstanding loan amounts and cited the recent apex court verdict of December 2015 to claim that RBI has to provide all information.
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India is one of the best equity stories globally over the medium term, and we are overweight, said Christopher Chen, client portfolio manager, Mirae Asset Management.
In an interview to The Economic Times, the Hong Kong-based Chen said that within Asia, India is a preferred bet because of its medium-term story. For similar reasons investors also prefer Phillippines and Indonesia. These countries have a large and young population and a low credit penetration, he added.
Chen also pointed out that China’s growth may be decelerating but that economy needs greater analysis.
Blackstone Group and JSW Cement are among private equity funds and cement makers that have submitted bids for LafargeHolcim’s 11-million-tonne cement assets in India. Other cement companies that have submitted non-binding bids include Ramco Cements and Ireland’s CRH.
According to Livemint, financial investors that have thrown their hat in the ring include Aion Capital Partners, Advent International, the Carlyle Group and Piramal Group. Some of these potential buyers are bidding as part of a consortium.
LafargeHolcim, the world’s largest cement company, formed after the merger of one-time French and Swiss rivals, is selling its interest in Lafarge’s assets to comply with competition rules in India. LafargeHolcim was asked to sell some assets by the Indian antitrust regulator to complete the merger in India.
The Panama papers come at a very sensitive moment when populist rage was already rising in a number of countries against a political and business establishment seen as completely oblivious to the concerns and anxieties of the man on the street who was feeling threatened by the disrupting social and economic impact of globalisation, writes Claude Smadja in his coloumn for Business Standard.
After a lengthy 43-day strike against the proposed one percent excise duty on non-silver jewellery, bullion traders and jewellers opened their shops on Tuesday.
According to Business Standard, the protesting jewellers during the last six weeks did not just lose on new business but also faced a tough time retaining artisans and paying rent for their establishments. To their disappointment, the government refused to give in to any demand before the strike was called off.
At the end of the marathon strike, all they won from the government was an assurance. The government had earlier promised to set up a committee headed by the former chief economic advisor Ashok Lahiri to study the issue. However, the committee is yet to be formed.
India’s bank deposits are growing at the slowest pace in half a century, frustrating attempts by policymakers to lower one of the highest borrowing costs among emerging markets.
According to Livemint savers deposited about Rs 94 trillion with banks in the year through 31 March, the smallest increase since 1963, according to ICRA, the local unit of Moody’s Investors Service.
Prime Minister Narendra Modi is seeking lower interest rates to spur investment and help banks clean up piles of bad debt. While India is the world’s fastest-growing big economy, the slowdown in deposits is yet another sign that its expansion is far below potential.
Patanjali has emerged as a serious threat for mainstream FMCG companies — especially for the likes of Colgate Palmolive, Dabur and Emami.
According to Economic Times, brokerages such as Credit Suisse have downgraded Colgate Palmolive to neutral as Patanjali toothpaste took away a heavy share of the business from the market leader.
There is a strong likelihood of more earnings downgrades to follow as Patanjali products continue to garner market share in packaged foods and personal products. The fourth quarter performance of FMCG companies could well provide the fresh triggers.
At a time when most companies were charging a premium for organic products, the fact that Patanjali’s products are cheaper than most other competing brands did the trick.
The Customs department has imposed a total fine of Rs 33 crore on Tata Sponge Iron over its classification of coal imports.
Tata Sponge Iron, a subsidiary of Tata Steel, said it has been meeting its coal requirement through imports.
According to Financial Express, the Tata Sponge Iron management is taking steps to challenge this “unjustified” demand, through available options.
During 2014-15, the firm sourced almost all of its iron ore requirement from Tata Steel. It sourced half of its coal requirement from auctions of Coal India while the other half was imported.
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