In the bank of municipal elections on the bank of October this year, Tamil Nadu Finance Minister O. Panneersevalam presented a revised budget for the fiscal year 2016-2017 which was also the present AIADMK government’s first budget on Thursday.
The budget broadly concentrates of improvement of transportation, healthcare, necessities and education and a budget of Rs 13,800 crore has been allocated to the energy sector with emphasis on solar power and the government predicts that in the next five years the energy sector with enhance its productivity.
Interestingly the budget did not spills any bills at all on the total prohibition of alcohol, and the financial experts made it very clear that total prohibition of alcohol in Tamil Nadu would be financially unviable.
In the last seven years the revenue from alcohol to the government has doubled to Rs 21,641 crore per year. The government would certainly not agree to a loss of Rs 1 lakh croce in the next five years where it has to adjust with food and power subsidies and security pensions said a top bureaucrat to The Hindu.
The other highlights include:
Decided to build 37 primary health care centers.
To provide education to all children.
Decided to give laptops to over 5 lakh students.
Allocation Rs2,700 crore to maintain Highways.
Sum of Rs 445.19 crore allotted for flood prevention and water sources.
For the quarter that ended in December, 2015, TVS Motor, India’s third largest two wheeler company by volumes, has posted 20 per cent increase in its net profit at Rs. 108 crore. The company had posted a net profit of Rs 90 crore for the same period of the preceding fiscal.
In a BSE filing, the company reported net sales that rose to Rs 2,909 crore in the current fiscal year’s third quarte, up 11.92 per cent.
In another filing, the company said that TVS Motor’s Board of Directors have agreed in-principle an investment of an amount not exceeding 10 million Hong Kong Dollars for setting up of a completely-owned subsidiary in Hong Kong.
As per TVS Motor, the step has been undertaken to broaden the possible in the export market and reinforce the supply chain management in foreign nations. It also said that the details of the proposed subsidiary will be finalized and then submitted for approval by the board of directors.
From 6.27 lakh unit in the parallel quarter of the previous fiscal, the brand grew by 8 per cent to 6.76 lakh units. Also, the motorcycle sales shot up by 5 per cent to 2.60 lakh units in the third quarter. Scooter sales went up by 25 per cent to 2.33 lakh units in the third quarter of the current fiscal, as compared with 1.86 lakh units in the year-ago period.
TVS Motor also mentioned that the Chennai floods and amendment to Bonus Act, impacted its third quarter profit.
According to Harvard researchers, India with an estimated annual growth rate of seven per cent has the potential to be the world’s fastest growing economy over the next decade, surpassing its economic rival China. As per the report, China will con
tinue to witness economic slowdown till 2024.
Professor of the Practice of Economic Development at Harvard Kennedy School and CID (Centre for International Development) Director Ricardo Hausmann said, “India has made important gains in productive capabilities, allowing it to diversify its exports into more complex products, including pharmaceuticals, vehicles, even electronics.”
The United Nations has also projected that India will continue to be the fastest growing economy in the world in 2016 and 2017 with an estimated growth rate per cent of 7.3 and 7.5 respectively. The country will continue to be on the path of growth even amid persistent global macroeconomic uncertainties, declined trade flows and slow investment patterns.
Out of 144 countries on Forbes’ annual list of best countries for business in 2015, India ranked a low 97 (this is behind Kazakhstan and Ghana.) India scored poorly when it came to metrics like trade and monetary freedom. Challenges like tackling corruption and violence also paved way for India to stay behind at the 97thposition.
The list was topped by Denmark followed by New Zealand on the second spot and Norway on the third. The picture was not very bright for the financial capital of the world, the U.S. as it slid four spots to 22 scoring po
orly on monetary freedom and bureaucracy. This has been the six-year continuous descent for the country since 2009 when it had secured the second spot.
Forbes said that though India is developing into an open-market economy, traces of its “past autarkic policies” remain. The outlook for the country’s growth on a long term basis is moderately positive due to young population and low dependency ratio. Healthy savings, investment rates and increasing integration into the global economy add to India’s growth.
The publication also added that India as a country also faceschallenges like high spending and poorly-targeted subsidies, inadequate availability of quality basic and higher education, and accommodating rural-to-urban migration.
While talking about India’s growth in the last one year, Forbes emphasized that the growth fell to a decade low, as the economic leaders struggled to improve the wide fiscal and current account deficits.
Forbes also spoke of India performing moderately well on certain factors; ranking eighth on investor protection, 41st on innovation, 57th on personal freedom and 61st on property rights. The fall came from ranking 125th on trade freedom and 139th on monetary freedom. On technology it ranked 120th, 77th on corruption and 123rd on red tape.
The UK and Japan both moved up by three spots by ranking number 10 and 23 respectively. The extreme bottom of this Forbes list features quite a few emerging markets restrained by high levels of corruption and little freedom.
A Reuters poll last week showed that 45 of 51 economists expect the RBI to cut repo rate by 25 basis points which would bring it to 7.00 percent. This be would be the lowest repo rate since May 2011.
Cutting the repo rate to a four year low is expected to support the domestic economy at a time when consumer inflation is at a record low.
Considering the fact that monsoon rains have fallen below their long term average this year, a rate cut may depend on how food prices impact consumer inflation.
“I expect the RBI to cut the repo rate and sound a cautionary tone on the deficient monsoon’s impact on food prices and the Fed,” Soumya Kanti Ghosh, chief economic adviser at State Bank of India, said.
The growth rate in April-June quarter has been 7 per cent which was lower than expected. It has been faster than China’s growth rate but was below the government’s tarh=get of 8 to 8.5 per cent for the year ending in March.
Analysts also expect Raghuram Rajan to take steps to bring down the consumer inflation to 5 per cent by January 2017 and keep it as a part of his long term objectives.
New Delhi: Vijay Mallya’s Kingfisher Airlines has emerged as the nation’s top non-performing asset (NPA) after it defaulted on loans worth over 4,000 crores, from mainly state owned banks. This highlights the woes of the lenders as they need to raise over 2.4 lakh over a period of five years to meet the growing needs of the Indian economy. Winsome Diamond & Jewelrey is at no.2, with debts totalling Rs. 3,200 crore. Engineering firm Electrotherm India is at third with Rs. 2,600 crore in debt. The data compiled by the finance ministry shows that the top 50 defaulters have outstanding debts of over Rs. 53,000 crore at the end of December 2013. Banks, reported having non-performing assets and restructured assets of government, which have tried to crack down on defaulters for years, have had limited success as the companies are able to exploit loopholes in the legal system to borrow money.
Image courtesy: economictimes.in