Highest tax growth reported in Pune region

Based on a Times of India news report, Pune had the highest net direct tax collection zone in India from April 2017 till mid-January this year. The country comprises of 18 zones in total. Bengaluru, Mumbai, Delhi and Hyderabad are other significant zones. Pune accounts for all places in Maharashtra, except districts in Vidarbha and Mumbai. The region has accounted for 24% growth, while the national average is 18%.

A C Shukla, Principal Chief Commissioner of income tax informed, “With the economic growth being 6%, the state has managed to achieve 75% as against the national average of 69%. The credit goes to the fear of law and not the law enforcement agency. People who do not disclose their income are being dealt with to ensure that income of the state is accounted.”

The Indian Express reported that Pune has successfully collected 100% taxes. The total amount received was Rs 13,143. The growth of personal tax has been 12.81%, Rs 5,312 crore this financial year. 9, 846.19 crore in corporate tax was collected.

“The results of 220 surveys conducted by the income tax department state that undisclosed income has been Rs 500 crore in the region,” Shukla added.

Tags: Indian Express, TOI

Goa gov announces Common Minimum Programme

Chief Minister Manohar Parrikar looks confident with his bag of promises from the Common Minimum Programme. Image source: PTI
Chief Minister Manohar Parrikar looks confident with his bag of promises from the Common Minimum Programme. Image source: PTI

The BJP-led government in Goa has announced the Common Minimum Programme (CMP), bringing in a lot of policy changes, including the controversies besetting offshore casinos.

As reported by the Indian Express, the programme would include Rs 1 lakh waiver on agricultural loans to farmers. The government aims to setup ‘open markets’, alongside highways which is based on the American market model to provide a market for farmers to sell their produce. Additionally, the CMP states that coconut would be made the tree of the state to alter the previous regulation of it being called a grass.

There will be a relocation of Casinos from its Mandovi base and the housing will be reasonably priced through the state housing boards. However, no timeframe has been given for this yet. Also, the national highways which pass through the state would be widened as part of the CMP.

This policy was framed based on recommendations made by MLA and Minister for Town and Country Planning, Vijay Sardesai, states The Times of India. This was to promote the much discussed value of Goemkarponn (the way of the Goans).

 

Source: The Times of India, Indian Express

Growth will be the main focus in the upcoming Monetary Policy: Urijit Patel.

It was the first meeting of the newly appointed Reserve Bank of India’s Governor, Urjit Patel with half a dozen of senior economist. In his first interaction he talked about downplaying the risk of inflation and harped on the focus of growth.

The new monetary policy under the regime of Patel is to be announced on October 4, this year. A six-member Monetary Policy Council has been set-up of which RBI Governor is a part. Even if the interest rates are not lowered, the central bank is likely to maintain an accommodative viewpoint on interest rates and liquidity.

As reported by The Economic Times, the implementation of the GST, would not increase the inflation. This is deduced from the fact that the GST regime will bring down the cost of many items such as the purchase of automobiles might come down. This will help in partially offsetting the prices of other consumption goods. He is also of the opinion that the calculation of the consumer price index on the interest rates on housing and rents in the public sector should be lowered.  

Even if the inflation is going down, the industrial production growth has slipped into negative region. However, a rate cut in the October will be well received by the common man. It is still not clear if the MPC and the RBI should wait for the numbers or should go ahead with one month’s data. The growth aspect of the economy is also in mind of these institutions.

“The governor is not dismissive of the new GDP data (which, according to many, appear unrealistic). While he thinks the GDP numbers based on the new series need a lot of explanation, the old series was even worse,” said  sources, as reported by The Economic Times.

 


Infosys CEO Sikka’s tenure likely to be extended till March’21

The board of Infosys Ltd, one of India’s IT giants has proposed  to extend Vishal Sikka’s tenure as the Managing Director  and CEO of the company,  till March 2012 . Earlier, Sikka had been appointed to the post till 2019.

This recommendation comes in the light of his “outstanding contribution” and initiatives that have helped the company in reclaiming the leadership position in the industry, says the board.

Under Sikka’s leadership the company’s management is said to have drawn up the goals of margins, revenue and productivity of employees for the upcoming years, 2021-22. These goals are expected to be achieved in the following five years.

At this juncture, the board considers Sikka’s leadership to be imperative, for achieving the set goals. Hence, the nomination and renumeration committee alongwith the board recognized his initiatives and recommended the replacement of  Sikka’s  current contract of employment with a new one that is ” fully aligned to the period and goals as well as for shareholder value creation.”

As per reports, the term of his existing contract has been reduced from 13 June 2019 to 31 December 2016, and a brand new executive employment agreement with Sikka for his re-appointment as the Managing Director and CEO of Infosys is underway. This new contract would be in effect from 1 April 2016 until 31 March 2021.

After being hit with issues like exodus of several senior-level executives , attrition, and losing out to industry rivals like HCL technologies and Tata Consultancy Services Ltd, in terms of growth,  Vishal Sikka veered the company’s position back to its lost glory.

Source: The Hindu Business Line

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Image Source: Quartz India

India to overtake China as the fastest growing economy

 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

 India is projected to be the fastest growing economy over the next decade, according to Harvard researchers. Image Source: Indian Express
India is projected to be the fastest growing economy over the next decade, according to Harvard researchers.
Image Source: Indian Express

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.

Sources:

http://m.thehindu.com/news/india-projected-to-be-fastestgrowing-economy-over-next-decade/article8017742.ece

The Truth Behind Gujarat’s Model of Development

Image Source: thehindubusinessline.com
Image Source: thehindubusinessline.com

Calling attention to the Gujarat model of development, union minister Arun Jaitley recently cited a World Bank report that places Gujarat ahead of every other Indian state in the “ease of doing business” category. Jaitley’s assertion has widely been read as an attempt to counter Bihar Chief Minister Nitish Kumar’s barb at Prime Minister Narendra Modi. The Bihar CM had challenged Modi over a polarised discussion on Bihar’s state of development. Having Draw upon the report that fixes Gujarat at the first spot and Bihar on the 21st, the fallacy of Jaitley’s argument lies in its hollow and incomprehensive claims.

For an umpteenth number of times, stories of Gujarat’s efficient model of development have been thrown back and forth into the public discourse. So grand and successful was this model, that an entire general election was fought on this famous, so to say Gujarati Model of economic development. While most of us have been falsely led into believing how advanced and industry friendly the state of Gujarat is, much remains undone in this western Indian state, even within its ever favourite realm of economic development.

Industries in certain parts of Gujarat may have grown but not to the relief of those un-employed. As Marxist as this claim may seem, investment in Gujarat has failed to generate employment in an equal proportion. The government’s own admission has been that “on account of capital-intensive investment, industrial employment in Gujarat has gone down.”

Even as the average invested capital per factory has increased more than 2.5 times in the last decade, employment per factory has declined sharply, from 99 workers in 1960-61 to 59.44 in 2005. Moreover, the jobs that continue to grow fall within the informal sector, where there is a stunning absence of social security. In comparison to other states, Gujarat pays its workers much lower wages. Promotion of small scale industries by way of providing micro-finance schemes may have helped in inflating industrial figures, though only at the cost of deflating the living conditions of workers across all sectors.

The plight of ancillary industries like Diamond polishing factories and those dealing with ceramic works seems even worse. Faced with a global economic meltdown, these factories are grappling with an ever plummeting trend of demand. Apart from a reduction in production and the subsequent axing of the workforce, the collective debts of these industries have increased by manifold. According to an RBI [Reserve Bank of India] report, outstanding loans of MSMEs [micro, small and medium industries] in Gujarat trebled in two years from Rs.836 crore in 2012-13 to Rs.2,601 crore in 2014-15.

Such a half baked, incomprehensive model of development has led to unrest in Gujarat, argues notable sociologist Ghanshyam Shah. The recent agitation by the Patidars, a dominant caste form in the state who are demanding reservation under the Other Backward classes quota, is a direct fallout of Gujarat’s steady focus on raising investment.

8-10% growth rate achievable, says Arun Jaitley

Image courtesy: ANI
Image courtesy: ANI

Mumbai: Union Finance Minister Arun Jaitley on Sunday said that although the rest of the world is struggling to cope up with a gloomy economy, it is possible for India to achieve 8-10 percent growth, with the country facing an optimistic revenue situation and implementation of reform policies.

Jaitley referred to the indirect revenue collection figures that came out on Friday, which indicated a 14.5 percent increase in indirect revenue collected as compared to last year.

Speaking at the 34th Foundation Day of The National Bank of Agricultural and Rural Development, Jaitley stressed that the implementation of the Goods and Services Tax (GST) in the agenda, along with increased spending on infrastructure, and by making smart cities a priority will accelerate India’s growth trajectory.

Jaitley also noted that while the service sector is heading towards a double digit growth projection and the secondary sector aiming for higher productivity, a 4 percent average contribution of the agricultural sector is a cause for concern.

“And if a 4 per cent average (growth in agriculture) is what we have not been able to achieve, it is this very large section of the population (small and marginal farmers) which still lives in those hard conditions which the socio-economic census just now reflected,” reported The Business Line.

To read more, go on: http://www.thehindubusinessline.com/economy/macro-economy/810-growth-target-appears-within-reach-jaitley/article7413601.ece