<img src="https://api-discussion.policharcha.com/1713271133989" alt="Indian oil marketing companies brace for potential oil price surge amid Israel-Iran tensions" style="float:none;height: auto;width: auto"/>

The escalating conflict between Israel and Iran has put Indian oil marketing companies (OMCs) on edge, with concerns mounting that crude oil prices might soar beyond the $100-per-barrel threshold if the standoff worsens.
On Monday, shares of all three state-owned OMCs concluded in negative territory, facing losses of up to 2.31 percent as investors hurried to sell off their stocks amid fears of dwindling profit margins.
However, there was a slight reprieve as international crude oil prices unexpectedly dipped. Iran's indication of avoiding escalation in the conflict and Israel's suggestion of not retaliating immediately contributed to the easing of market tensions.
At the time of writing, Brent futures for June delivery were trading at $89.18 per barrel, a decrease from the previous close of $90.45. Meanwhile, US West Texas Intermediate (WTI) for May delivery was priced at $84.47, down from $85.66.
Reports suggest that Iran is capable of producing 3.2 million barrels of crude oil daily and wields significant control over the Strait of Hormuz, responsible for 30 percent of oil transit and 70 percent of oil shipments to Asia.
Any disruption in oil production or transit through the Strait due to escalating tensions could lead to a rapid surge in oil prices. This scenario would adversely affect oil marketing companies, potentially limiting their ability to implement corresponding price hikes. However, upstream companies may not feel the impact as they manage realisations through windfall taxes, which could rise proportionately.
Analysts warn that the current market prices do not fully account for the possibility of a direct conflict persisting between Iran and Israel. Depending on the nature and duration of such events, oil prices could skyrocket to over $100 per barrel, presenting a significant challenge for oil-dependent economies and industries worldwide.

Indian oil marketing companies brace for potential oil price surge amid Israel-Iran tensions

<img src="https://api-discussion.policharcha.com/1712670886122" alt="Paytm Payments Bank CEO Surinder Chawla resigns amid regulatory challenges" style="float:none;height: auto;width: auto"/>

Surinder Chawla, the Managing Director and CEO of Paytm Payments Bank (PPBL), has tendered his resignation, as disclosed in a regulatory filing by One97 Communications, the brand owner of Paytm. The resignation will be effective from June 16, 2024, marking the departure of Chawla amidst regulatory challenges faced by PPBL from the Reserve Bank of India (RBI).
Chawla cited personal reasons for his resignation in his letter to the company. He had assumed the role of MD and CEO of PPBL in January of the previous year. One97 Communications confirmed the resignation, stating that nearly all agreements between the company and Paytm Payments Bank had been terminated, as previously disclosed on March 1, 2024.
The PPBL board has also undergone reconstitution with five independent directors and an independent chairperson, following disclosures made on February 26, 2024.
The company emphasised its ongoing efforts to collaborate with banking partners to enhance merchant acquiring and UPI services. Vijay Shekhar Sharma had earlier resigned from the PPBL board on February 26, part of a broader board overhaul following regulatory scrutiny from the RBI.
The regulatory challenges for PPBL began when the RBI directed the bank to wind down its operations by March 15, 2024, due to compliance issues and supervisory concerns. This directive included a ban on accepting fresh deposits and conducting credit transactions after February 29, with a subsequent extension of the deadline to March 15.
Despite these challenges, on March 14, the National Payments Corporation of India (NPCI) approved One97 Communications to participate in UPI services as a third-party application provider under a multi-bank model. Paytm has since collaborated with four new banks — Axis Bank, HDFC Bank, State Bank of India, and Yes Bank — to provide payment services.
The impact of these regulatory actions has been reflected in Paytm's stock performance, with shares down nearly 50% since the RBI's directive against its banking unit. On April 9, One97 Communications' shares settled 1.95% lower at ₹404.30 apiece on the BSE.

Paytm Payments Bank CEO Surinder Chawla resigns amid regulatory challenges

<img src="https://api-discussion.policharcha.com/1712320195876" alt="Tesla's Indian endeavour – Navigating ambitions, pragmatism, and market challenges" style="float:none;height: auto;width: auto"/>

Once again, the spotlight shines on Tesla's progress in India's automotive sector, with recent reports indicating advancements in the company's endeavours. Notably, Tesla has reportedly dispatched a team of officials to scout for a suitable factory location, signalling a step forward in its Indian operations. There are also claims that Tesla has commenced manufacturing electric vehicles (EVs) for the Indian market at its German plant, although this remains a subject of debate.
The ongoing negotiations between Tesla and the Indian government have been a focal point for years. Tesla has been advocating for reduced import tariffs on vehicles, while the government seeks commitments regarding local sourcing, assembly, manufacturing, and investment within the country.
CEO Elon Musk's interactions with Prime Minister Narendra Modi have been pivotal in this context, with meetings held at Tesla's California facility and later in New York. Musk's admiration for PM Modi has been publicly acknowledged, underscoring the strategic importance of these engagements.
However, amidst these diplomatic gestures, Tesla's pragmatic business approach cannot be overlooked. Industry experts highlight Tesla's awareness of the evolving dynamics in the global EV market, which has witnessed a slower uptake than initially projected. Moreover, the existing customer base for EVs predominantly comprises enthusiasts and affluent buyers, as highlighted in a 2022 report by The New York Times.
The crucial question emerging from these developments is the potential shift in consumer behaviour among the broader populace. As the market matures, prospective car buyers are expected to exercise greater caution and scrutiny, diverging from the early adopters who fuelled initial EV sales.
India has surpassed Japan to become the world's third-largest vehicle market, trailing behind China and the United States. Despite facing formidable challenges, India's potential in the automotive sector is immense, owing to its vast and diverse market landscape. This complexity is evident from the struggles experienced by several American automotive brands like Ford, GM, and Harley-Davidson in establishing a strong foothold in India.
The scale of India's automotive industry is noteworthy, with 4.2 million cars dispatched during the previous financial year. Such figures underscore India's significance on the global automotive stage, making it a market that cannot be overlooked by companies with ambitious expansion plans, such as Tesla. Tesla's long-term vision includes manufacturing 20 million vehicles annually worldwide by 2030, a stark rise from the approximately 1.8 million deliveries recorded in 2023.
To achieve such ambitious targets, Tesla must diversify its market presence beyond its established strongholds in China, the US, and select European markets. Industry experts acknowledge the potential of emerging markets like India, South-East Asia, and Latin America, which offer fertile grounds for growth. Key to Tesla's success in these markets would be the introduction of more affordable models, a strategy emphasised by Tesla's CEO Elon Musk.
In India specifically, Tesla is expected to initially introduce its most affordable model, the Model 3. Subsequently, there may be plans for an even more budget-friendly Tesla variant, although this concept is not currently in existence.
What remains certain is Tesla's recognition of the importance of the Indian market, where it must deliver its best offerings to stay competitive. A report by Customized Energy Solutions predicts a substantial growth in EV sales in India, with a Compound Annual Growth Rate (CAGR) of 35 per cent, further highlighting the market's potential for electric vehicles.
Various governments, both at the local and national levels across the globe, have eagerly courted Tesla, seeing it as a catalyst for technological advancement and economic growth.
In 2020, Reuters reported Brazil's efforts to entice Tesla investments, while in 2023, French Finance Minister Bruno Le Maire hailed Tesla's potential entry into France as a significant boost for the country's electric vehicle (EV) aspirations.
In stark contrast, India has adopted a more cautious and pragmatic approach, drawing praise from many quarters. Commerce and Industry Minister Piyush Goyal emphasised that government policies are not tailored for individual companies, but are based on broader considerations. The recent approval of a new electric vehicle policy in India, offering reduced import tax duties on EVs contingent on substantial investment and local manufacturing commitments, reflects this balanced approach.
Beyond the allure of partnering with a global EV leader like Tesla, the focus is on the substantive benefits such collaborations can bring. Tesla's manufacturing facilities have the potential to generate employment opportunities and optimise product pricing, thereby expanding the accessibility of EVs to a wider consumer base and boosting EV adoption rates.
However, it's not just about profits; governments must consider holistic strategies that align with national development objectives, as emphasised by Minister for Road Transport and Highways Nitin Gadkari.
A mutually beneficial partnership between Tesla and India could catalyse the country's EV ambitions, particularly in a market where electric car sales remain nascent compared to global counterparts.
While Tesla's entry may not single-handedly revolutionise India's EV landscape, it can contribute significantly if it adapts its offerings to suit local market preferences and requirements. This strategic alignment could propel India's EV sector forward and contribute to a sustainable transportation ecosystem.
In essence, Tesla's foray into India encapsulates not just a technological revolution, but also the intricate interplay of economic strategies, regulatory frameworks, and shifting consumer trends.

Tesla's Indian endeavour – Navigating ambitions, pragmatism, and market challenges

<img src="https://api-discussion.policharcha.com/1711635866468" alt="India's agrarian workforce – Reversing trends amidst the pandemic" style="float:none;height: auto;width: auto"/>

India, like many developing nations, has long sought to shift its extensive agricultural labour force towards non-farm sectors. Over decades, this transition had been slow, but steady. However, the COVID-19 pandemic has upended this trajectory, marking a significant reversal in recent years.
The India Employment Report 2024, jointly produced by the International Labour Organization (ILO) and the Institute for Human Development (IHD), reveals this stark reversal. Based on data from the Government of India's National Sample Surveys and Periodic Labour Force Surveys spanning from 2000 to 2022, the report highlights a notable shift.
Between 2020 and 2022, the agricultural sector saw a surge in employment by nearly 56 million workers. This surge coincided with the COVID-19 outbreak in March 2020, triggering strict lockdown measures that persisted into 2022, disrupting urban livelihoods and leading to a mass exodus of informal workers to rural areas.
This movement back to agriculture was substantial, with 30.8 million workers joining in 2020, followed by 12.1 million in 2021 and another 12.9 million in 2022. Notably, this shift included a reversal of the long-term trend where youth were steadily moving away from agriculture into non-farm sectors.
The report underlines that from 2000 to 2019, there was a discernible shift from low-productivity agriculture to higher-productivity non-agricultural sectors, resulting in negative growth in agricultural employment. However, the pandemic-induced economic slowdown saw a resurgence in agricultural employment, outpacing growth in agriculture's gross value added.
This surge back to agriculture was not limited to male workers; a significant portion consisted of women, with the female labour participation rate in agriculture reaching 62.8% in 2022, compared to 38.1% for men. The report suggests that this shift could be a response to the lack of opportunities outside agriculture, particularly for marginalised and migrant workers.
While this transition has altered the labour market landscape, particularly in rural areas where the workforce increased substantially compared to urban areas, it also raises concerns. The return to subsistence agriculture may indicate distress, as non-farm sectors struggle to create employment opportunities, leading people to return to less remunerative work in agriculture.
Additionally, the report notes that despite the increase in employment, wage growth has been sluggish or negative, especially for female self-employed workers. This disparity underscores the need for targeted interventions to support vulnerable workers and ensure inclusive growth across sectors.

India's agrarian workforce – Reversing trends amidst the pandemic

<img src="https://api-discussion.policharcha.com/1709288770367" alt="Now Indians in Greece can send remittances using UPI; NPCI & Eurobank sing MoU" style="float:none;height: auto;width: auto"/>

NPCI International Payments Limited (NIPL), a subsidiary of the National Payments Corporation of India (NPCI), and Eurobank, a leading Greek financial institution, have inked a Memorandum of Understanding (MoU) aimed at bolstering cross-border payments facilitated by the UPI platform.
This development follows the Greek Prime Minister Kyriakos Mitsotakis' recent visit to India, during which he engaged in bilateral discussions with Indian Prime Minister Narendra Modi.
A joint press release stated on Thursday clarified that this collaborative effort is geared towards enhancing the international money transfer facility, with a specific emphasis on optimising remittance channels from Greece to India.
The MoU was formalised at the Embassy of Greece in New Delhi, by Ritesh Shukla, CEO of NIPL, and Fokion Karavias, CEO of Eurobank. Noteworthy attendees included Kostas Fragogiannis, Deputy Minister of Foreign Affairs of Greece, Maira Myrogianni, Secretary General for International Economic Affairs of Greece and Chairperson of Enterprise Greece, as well as Sanjay Tugnait, President and CEO of Fairfax Digital Services.
The signing of this MoU establishes the groundwork for a strategic partnership wherein both entities will serve as primary points of contact, facilitating foreign inward remittance transactions from Greece to India.
According to the press release, this collaborative initiative is poised to position Greece at the forefront of European nations enabling the Indian diaspora residing in the country to seamlessly execute swift remittances to India leveraging UPI infrastructure.
“A strategic alliance with NPCI International is also fully in line with Eurobank’s strategic commitment to becoming the bank of choice for Indian businesses seeking to establish themselves in Greece or in Cyprus, as an entry point for their EU franchise,” said Fokion Karavias, CEO of Eurobank.
“It showcases the versatility and strength of UPI within the international financial landscape, paving the way for strengthening India-Greece economic ties through enhanced remittance flows,” said Ritesh Shukla, CEO of NIPL.
India has emerged as a leader in fintech innovation and Digital Public Infrastructure and placed a strong emphasis on sharing its development experiences and innovation with partner countries.
UPI is India’s mobile-based fast payment system, which facilitates customers to make round-the-clock payments instantly, using a Virtual Payment Address (VPA) created by the customer.
The UPI payment system has become hugely popular for retail digital payments in India, and its adoption is increasing at a rapid pace. In 2023, a record 100 billion transactions valued at Rs 2 trillion were made via UPI.
A key emphasis of the Indian government has been on ensuring that the benefits of UPI are not limited to India only, and other countries should benefit from it too.
So far, Sri Lanka, Mauritius, France, UAE, and Singapore have partnered with India on emerging fintech and payment solutions.

Now Indians in Greece can send remittances using UPI; NPCI & Eurobank sing MoU

<img src="https://api-discussion.policharcha.com/1709122716082" alt="Domestic manufacturing of semiconductors is the next big space, says MeitY Secy" style="float:none;height: auto;width: auto"/>

The next frontier in industry lies in domestic semiconductor production, said MeitY Secretary on Wednesday, anticipating numerous companies to explore this sector. Additionally, the official highlighted the imperative for India to cultivate a robust digital economy valued at USD 2 billion.
S Krishnan, Secretary of Ministry of Electronics &amp; Information Technology, while speaking virtually at the India Digital Summit (IDS) 2024 said the digital economy is expected to grow at a faster pace in the next few years.
"Semiconductors is the other big space. More companies are likely to come into the space...Our interest in semiconductors is open," he said adding that in the next 5-10 years semiconductor manufacturing in the country is expected to come up in a big way.
About 20 lakh people are employed in the electronics manufacturing sector in the country and the government would like these jobs to go up to about 45 lakh, he added.
"We expect the digital economy to really grow at an increasing pace in the next few years. A $2 billion digital economy is what India seriously needs," Krishnan said.
When asked about governance, hygiene and compliance with law for digital economies, Krishnan pointed out that regulators, much like the public, recognised the necessity of regulation.
While balancing consumer protection and diverse requirements, regulations are thoroughly examined to ensure safeguarding of user information, he said.
In the tech sphere, consistent collaboration among regulators was crucial, he added.
Similarly, maintaining ongoing dialogue with companies on various IT aspects is essential, Krishnan stated adding that the second key aspect involves formulating regulations to ensure compliance.
On the proposed Digital India legislation, he said efforts were being made to enhance it with additional elements. The ministry is exploring ways to address a significant issue related to the idea and understanding of ideas, where different forms of control are in place, he said.
Some of these controls occasionally generate issues, emphasising the need for regulation, Krishnan said.
This will be a key focus in the approach to cybersecurity, the MeitY Secretary said.

Domestic manufacturing of semiconductors is the next big space, says MeitY Secy

<img src="https://api-discussion.policharcha.com/1709035654357" alt="FM Sitharaman forecasts next-gen economic reforms in PM Modi's third term" style="float:none;height: auto;width: auto"/>

On Tuesday, Finance Minister Nirmala Sitharaman stated that under the leadership of Prime Minister Narendra Modi, the government will persist in advancing next-generation economic reforms with the aim of positioning India as the third largest economy globally.
“The third term that Prime Minister Narendra Modi will come in will ensure that India reaches in the top three economies in the world. Reforms will touch all areas of factors of production i.e. land, capital and digital infrastructure,” Sitharaman said in her address at the national conclave on Viksit Bharat 2047 organised by apex business chamber FICCI.
The new government will be formed after the general elections due in April-May and the BJP is confident that Prime Minister Modi will return to power with a greater majority.
Sitharaman said that several reforms were undertaken by the government during the last 10 years and the trend will continue.
Digital infrastructure is a modern-day factor of production along with land, labour and capital. Public investment has created digital infrastructure at the bottom and has scaled it up, she said.
She said the government was looking at expansion in artificial intelligence, space and extending policy support to give a big push to precious metals and semiconductors,” she said.
She exhorted the captains of industry to participate in a big way in the nation’s economic growth trajectory as “it is our duty to provide the future generations a better India”.
The finance minister said that while the government is showing commitment by ramping up capital expenditure, it should be natural for the industry to align to India’s interests and be the first contributor to its growth.
Sitharaman said that global investors are trusting India as they see the prospects here. “You are here, you are watching the situation, watching the flow of investment capital,” she said.
“The Indian industry should look for joint ventures globally for technology. I need to underline the industry’s role in having economic independence in Viksit Bharat @2047,” she said.
Reiterating the goal set by Prime Minister Narendra Modi, to make India a developed nation by 2047, the finance minister said, “We should reach the destination”.

FM Sitharaman forecasts next-gen economic reforms in PM Modi's third term

<img src="https://api-discussion.policharcha.com/1708691237224" alt="Investors file suit against BYJU's management, seek CEO's ouster and forensic audit" style="float:none;height: auto;width: auto"/>

A consortium of four investors of BYJU’s has lodged an oppression and mismanagement suit against the company's management before the Bengaluru bench of the National Company Law Tribunal (NCLT).
This legal action aims to challenge the authority of the founders, including CEO Byju Raveendran, to lead the company, and advocates for the appointment of a new board.
The investors have raised concerns about alleged mismanagement and failures within what was once hailed as India’s premier tech startup. They have specifically targeted Raveendran and his family, seeking their removal from BYJU’s board due to purported mismanagement issues.
According to court documents filed on Thursday, the investors are demanding a forensic audit of the company and assert that the present management is unsuitable to steer the organisation. They propose appointing a new CEO and board to address the alleged governance lapses.
Furthermore, the investors seek to invalidate the recently concluded $200 million rights issue and prohibit the company from taking any corporate actions that might prejudice investor rights.
The petition, endorsed by investors such as Prosus, GA, Sofina, and Peak XV, with additional support from shareholders like Tiger and Owl Ventures, aims to safeguard shareholder value and uphold the interests of other stakeholders, including employees and customers.
Among the grievances outlined in the suit are concerns about financial mismanagement leading to the loss of control over Aakash, defaults in loan repayments, and prolonged governance issues such as the absence of a CFO and independent director.
The investors also criticise the handling of corporate actions, including the acquisition of Singaporean ed-tech company Northwest Education Pte., alleging non-compliance with regulations and a lack of transparency in sharing information with stakeholders.
The lawsuit highlights additional issues such as undisclosed inter-corporate loans and multiple insolvency petitions filed against BYJU’s by various entities, raising questions about the company's financial health and governance practices.

Investors file suit against BYJU's management, seek CEO's ouster and forensic audit

<img src="https://api-discussion.policharcha.com/1708689818394" alt="Railway Minister blames Thackeray Govt for delay; expects bullet train project to be operational by 2026" style="float:none;height: auto;width: auto"/>

Railway Minister Ashwini Vaishnaw attributed the sluggish progress of the country's first bullet train project to the previous Uddhav Thackeray-led Maharashtra government's tardiness in granting permissions.
Vaishnaw, while overseeing the project's development, emphasised its potential to stimulate economic growth.
During a media interaction at the project site, Vaishnaw revealed plans for the Surat-Bilimora section, spanning 508 kilometres between Mumbai and Ahmedabad, to potentially commence operations by July-August 2026. Subsequent sections will be opened gradually, he added.
The high-speed corridor will offer both 'limited stop' and 'all stop' services, with travel times between Mumbai and Ahmedabad estimated at two hours and two hours 45 minutes, respectively.
Managed by the National High-Speed Rail Corporation Limited (NHSRCL), the project envisages 12 stations across its route.
Expressing regret over the delays, Vaishnaw indicated that permissions were expedited under the subsequent Eknath Shinde-Devendra Fadnavis government, following the fall of the Maha Vikas Aghadi coalition led by Thackeray.
“Had the (then) Uddhav Thackeray government given all the permissions faster, this project might have progressed much ahead by now,” Vaishnav said.
The Maha Vikas Aghadi government under Thackeray fell in 2022 after Shinde split the Shiv Sena with his rebellion. Shinde then aligned with the BJP to form the government and became the chief minister, with Fadnavis taking the deputy CM’s post.
Highlighting progress in Gujarat, Vaishnaw underscored the need for Maharashtra to catch up swiftly, characterising the project as pivotal for economic integration among key cities.
He stressed the economic significance of high-speed rail, emphasizing its potential to transform areas like Mumbai, Thane, Vapi, Surat, Vadodara, Anand, and Ahmedabad into a unified economic zone.
Innovations to accelerate tunnel construction, including simultaneous work at multiple points, were outlined by Vaishnaw, acknowledging the challenges associated with the ambitious project, including the 21-kilometer tunnel, including a 7-kilometer undersea stretch.
Addressing the project's technological complexities, Vaishnaw highlighted the need for India to attain expertise in such endeavours, particularly for populous cities requiring efficient transport systems.
He said that there are complexities and difficulties tied to the corridor as trains will run at 320 kmph on it, “but our biggest aim in this project is to understand this complete technology.”
According to NHSRCL, significant progress has been made in constructing the 21-kilometer shaft, including India's first undersea tunnel, utilising advanced tunnelling techniques.
The project's estimated cost stands at Rs 1.08 lakh crore, with the Indian government contributing Rs 10,000 crore, while Gujarat and Maharashtra are expected to contribute Rs 5,000 crore each. The remainder will be financed by Japan through a loan carrying a nominal interest rate of 0.1 percent.

Railway Minister blames Thackeray Govt for delay; expects bullet train project to be operational by 2026

<img src="https://api-discussion.policharcha.com/1707824434017" alt="Centre informs SC about willingness to discuss financial issues with Kerala Government" style="float:none;height: auto;width: auto"/>

The Centre expressed its willingness to engage in discussions with the Kerala government regarding financial matters, the Supreme Court was informed on Tuesday.
Attorney General R Venkatramani conveyed to a bench comprising justices Surya Kant and KV Vishwanathan that the Union Government is receptive to hold a meeting with the Kerala Government, acknowledging the court's suggestions in this regard.
Senior Advocate Kapil Sibal, representing the Kerala Government, informed the court that a delegation from Kerala could arrive as early as tomorrow, proposing that the meeting take place on Wednesday. However, he noted that the state's Finance Minister might be unavailable due to budget-related commitments. The Attorney General assured the court of facilitating the meeting.
The Court urged both the Centre and the State governments to delineate the issues for discussion bilaterally and scheduled the matter for further hearing next week.
Earlier, the Kerala Government, in its affidavit, underscored the substantial contribution of the Central Government to the national debt, refuting allegations of fiscal mismanagement. It emphasised that the state's debt burden was comparatively minimal, accounting for a mere 1.70-1.75 percent of the total debt of the Centre and the states combined from 2019 to 2023.
Responding to the notes filed by the Attorney General, Kerala Government made submission and said, "The Central Government accounts for approximately 60 per cent of the total debt or outstanding liabilities of India. All the states put together account for the rest (approximately) 40 per cent of the total debt of the country. In fact, the Plaintiff State accounts for a miniscule 1.70-1.75 per cent of the total debt of the Centre and the States put together for the period 2019-2023."
The Attorney General, in a written submission, highlighted Kerala's precarious financial condition, citing criticisms from successive Finance Commissions and the Comptroller and Auditor General (CAG). He underscored the state's vulnerability, portraying its fiscal framework as riddled with structural weaknesses.
Responding to Kerala's lawsuit, the Centre reiterated Kerala's financial fragility, attributing it to systemic flaws within the state's fiscal apparatus.
Furthermore, the Attorney General highlighted in his note the adverse impact of state debt on the country's credit rating, echoing concerns raised in Kerala's petition against alleged encroachments on its fiscal autonomy.
In a suit filed by Kerala government, it stated that state government deals with the executive power conferred on the Plaintiff State under Article 293 of the Constitution of India to borrow on the security or guarantee of the Consolidated Fund of the State in alignment with the fiscal autonomy of the Plaintiff State as guaranteed and enshrined in the Constitution.
Kerala's grievance stems from perceived infringements by the Centre, particularly through directives issued by the Ministry of Finance and amendments to the Fiscal Responsibility and Budget Management Act of 2003, which imposed borrowing restrictions on the state.

Centre informs SC about willingness to discuss financial issues with Kerala Government

<img src="https://api-discussion.policharcha.com/1707405352803" alt="BJP's White Paper brands UPA decade as "lost" amidst allegations of policy failures & scams" style="float:none;height: auto;width: auto"/>

In a scathing assessment, the BJP-led government labelled the decade (2004-2014) under the Congress-led UPA regime as a "lost decade", citing a crisis of leadership and a slew of "policy misadventures and scams", as revealed in its White Paper on the Indian Economy presented in Parliament on Thursday.
According to the nearly 60-page White Paper, the banking crisis emerged as one of the most significant and notorious legacies of the UPA government.
Finance Minister Nirmala Sitharaman tabled the 'White Paper on the Indian Economy' in both the Lok Sabha and Rajya Sabha, drawing comparisons between the economic management during the 10-year tenure of the UPA government and that of the BJP-led government, stated officials.
The White Paper accused the UPA government of abandoning reforms upon assuming power in 2004, asserting its failure to capitalise on the robust foundation laid by the preceding BJP-led NDA administration.
Highlighting the period between 2004 and 2008, the White Paper underscored rapid economic growth attributed largely to the "lagged effects" of reforms initiated during the tenure of the NDA government under Atal Bihari Vajpayee.
"The UPA leadership, which seldom fails to take credit for the 1991 reforms, abandoned them after coming to power in 2004. Even as the country was standing at the cusp of emerging as a powerful economy, little was done by the UPA government to build upon the strong foundation laid by the previous NDA government....,” stated the White Paper.
"In the years between 2004 and 2008, the economy grew fast, thanks to the lagged effects of the reforms of the NDA government and favourable global conditions. The UPA government took credit for the high growth, but did little to consolidate it. The failure to take advantage of the years of high growth to strengthen the budget position of the government and invest in infrastructure to boost future growth prospects stood exposed," the White Paper said.
It accused the UPA government of political interference in the commercial lending decisions of public sector banks.
"The banking crisis was one of the most important and infamous legacies of the UPA government. When the Vajpayee-led NDA government took office, the Gross Non-Performing Assets (GNPA) ratio in Public Sector banks was 16.0 per cent, and when they left office, it was 7.8 per cent. In September 2013, this ratio, including restructured loans, had climbed to 12.3 per cent largely because of political interference by the UPA government in the commercial lending decisions of public sector banks. Worse, even that high percentage of bad debts was an underestimate."
The White Paper said the UPA government inherited a healthy economy ready for more reforms, but made it non-performing in its ten years.
"In 2004, when the UPA government began its term, the economy was growing at 8 per cent (with industry and services sector growth above 7 per cent each and a resuscitating agriculture sector growth above 9 per cent in FY04) amidst a benign world economic environment. The Economic Survey of 2003-04 noted, 'The economy appears to be in a resilient mode in terms of growth, inflation, and balance of payments, a combination that offers large scope for consolidation of the growth momentum with continued macroeconomic stability'," the paper said.
It said not only did the UPA Government borrow heavily from the market, but the funds raised were applied unproductively.
"This aspect is evident when we evaluate the quantity, quality and timing of the expenditure by the government during 2004-2014. Capital Expenditure, which finances public investment in infrastructure, was deprioritised in those 10 years, thereby creating long-term constraints for the economy and compromising its growth potential," the paper said.&nbsp;
"As a result of its fiscal mismanagement, the UPA government's fiscal deficit ended up being far higher than it had expected, and it subsequently ended up borrowing 27 per cent more from the market than what it had budgeted for in 2011-12. This was after three years of the global financial crisis when the government should have been fiscally consolidating rather than spending more than the budgeted estimate," it added.
The paper said that the UPA government's response to the 2008 Global Financial Crisis - a fiscal stimulus package to combat the spill-over effects - was much worse than the problem it sought to address.
"It was way beyond the capacity of the Union Government to finance and sustain. Interestingly, the stimulus did not seem to bear any correlation with the outcomes it sought to achieve because our economy was not unduly affected by the crisis. During the GFC, India's growth slowed to 3.1 per cent in FY09 but recovered swiftly to 7.9 per cent in FY10. A cross-country analysis using IMF data on real GDP growth during and after the GFC corroborates the fact that the impact on the Indian economy was relatively limited compared to other developed and developing economies. There was no need for the continuation of the misguided stimulus beyond one year," the paper said.
The White Paper said that there were scandals in defence which compromised defence preparedness and the government delayed the acquisition of weapons.
"In the UPA government, decision-making came to a standstill due to corruption and scandals in defence, compromising defence preparedness. The government delayed the acquisition of artillery and anti-aircraft guns, fighters, submarines, night fighting gear and a host of equipment upgrades," the report said.
The White Paper also referred to the "coal scam", saying allocation of coal blocks was done on "arbitrary basis".&nbsp;
"The coal scam shook the conscience of the nation in 2014. Before 2014, the allocation of coal blocks was done on an arbitrary basis without following a transparent process to allocate the blocks. The coal sector was excluded from competition and transparency and the sector lacked investments and efficiencies. These actions were scrutinised by investigation agencies, and in 2014, the Supreme Court of India cancelled the allocation of 204 coal mines/blocks allocated since 1993," the paper said.
It said controversies such as 2G spectrum scam, coal gate scam and the Common Wealth Games (CWG) reflected poorly on India's image as an investment destination.
"The UPA government's decade of governance (or its absence) was marked by policy misadventures and scams such as non-transparent auction of public resources (coal and telecom spectrum), the spectre of retrospective taxation, unsustainable demand stimulus and ill-targeted subsidies and reckless lending by the banking sector with undertones of favouritism, etc. The 2G spectrum scam involving 122 telecom licenses that had sliced `1.76 lakh crore off the exchequer as per the estimates of the Comptroller and Auditor General (CAG), the coal gate scam costing Rs 1.86 lakh crore to the exchequer, the Common Wealth Games (CWG) scam, etc., indicated an environment of heightened political uncertainty and reflected poorly on India's image as an investment destination," it said.
The White Paper referred to Congress leader Rahul Gandhi lashing out and tearing an ordinance passed by his own government that gave convicted lawmakers a three-month reprieve to retain their seats
"Time and again, there was a crisis of leadership in the UPA government. It came out in full public glare in the shameful public tearing up of an ordinance issued by the government," it said.
"The decade of the UPA government was a lost decade because it failed to capitalise on the strong foundational economy and pace of reforms left behind by the Vajpayee government. The potential of compounding growth never happened," the paper said.

BJP's White Paper brands UPA decade as "lost" amidst allegations of policy failures & scams

<img src="https://api-discussion.policharcha.com/1706713832838" alt="GST collection hits second-highest ever at Rs 1,72,129 cr in Jan’24, shows robust Y-on-Y growth" style="float:none;height: auto;width: auto"/>

In a noteworthy development, the Ministry of Finance has reported that the Goods and Services Tax (GST) collection for January 2024 has reached the second-highest monthly figure ever recorded.
According to the Ministry's data, the year-over-year growth in the first ten months of the fiscal year reached an impressive 11.6 percent, with the monthly growth for January standing at a commendable 10.4 percent.
The gross GST revenue amassed in January 2024 reached a substantial Rs 1,72,129 crore, reflecting a significant 10.4 percent increase compared to the Rs 1,55,922 crore collected in January 2023. This marks the third month in the current financial year where the collection has surpassed Rs 1.70 lakh crore, as highlighted by the Ministry.
The allocation breakdown from the Integrated Goods and Services Tax (IGST) collection reveals that Rs 43,552 crore has been earmarked for the Central Goods and Services Tax (CGST), while Rs 37,257 crore is allocated to the State Goods and Services Tax (SGST), as communicated by the Ministry.
The cumulative gross GST collection from April 2023 to January 2024 exhibits an impressive year-on-year growth of 11.6 percent, reaching a noteworthy Rs 16.69 lakh crore. This substantial increase is in stark contrast to the Rs 14.96 lakh crore collected during the corresponding period in the previous fiscal year (April 2022-January 2023).
The Ministry's data provides a comprehensive depiction of monthly gross GST revenues, unveiling trends throughout the current fiscal year. Analysts anticipate that the final collection for January 2024 is likely to surpass the current estimate, further bolstering the overall GST revenue for the month.
The robust growth in GST collections attests to the economic resilience and stability witnessed in the country, providing a positive outlook for fiscal health.

GST collection hits second-highest ever at Rs 1,72,129 cr in Jan’24, shows robust Y-on-Y growth

<img src="https://api-discussion.policharcha.com/1706185620215" alt="Anticipating shifts – Key expectations ahead of India's interim Budget 2024" style="float:none;height: auto;width: auto"/>

As India eagerly awaits the unveiling of its Interim Budget for 2024, there is a noticeable shift from grand populist gestures to a more focused approach on policy continuity, growth, and sustainability.
The forthcoming budget is expected to centre around crucial elements, including capital expenditure, the 'Make in India' initiative, and a robust push for green energy.
Projecting a commitment to growth, the budget is likely to introduce targeted measures to stimulate demand.
Tax slabs could be a potential area of attention, with the government contemplating incentives to revive economic activity, particularly in the rural economy.
The emphasis on agriculture credit is anticipated to trigger increased demand for cutting-edge farm machinery and crop management solutions, aligning with the rising global demand for Indian grains. With an allocation of Rs 2 trillion to the agriculture ministry, the budget is poised to support government initiatives focused on farmers' income and crop insurance.
While potential moderation in disinvestment targets is expected due to upcoming elections, fiscal discipline is anticipated to remain a priority.
India, despite being a pharmaceutical hub, allocates only 2.1 per cent of its GDP to healthcare, well below the world average of 6 per cent. In light of new or less-discovered diseases, there is a call for increased expenditure on healthcare in Budget 2024-25, along with support for the pharmaceutical and nutraceutical sectors.
The AYUSH system's strengthening and inclusion in school curricula are highlighted, acknowledging traditional forms of medicine, including ayurveda, unani, Tibetan medicine, and others.
Sectors across the spectrum, from agriculture to infrastructure, healthcare, education, and manufacturing, are vocal about their expectations for allocations and reforms fostering growth and societal well-being.
"Fintechs, particularly digital lending platforms, seek changes such as flexible Loan-to-Value ratios and tax breaks for innovation, while the hospitality and tourism sector anticipate policies supporting resilience and infrastructure development.
In summary, the Interim Budget is poised to address diverse sectoral expectations, emphasising growth, innovation, and inclusive development in the Indian economy.

Anticipating shifts – Key expectations ahead of India's interim Budget 2024

<img src="https://api-discussion.policharcha.com/1705668689886" alt="India-Peru FTA: Next round of talks set for February 12" style="float:none;height: auto;width: auto"/>

India and Peru are gearing up for the next round of negotiations on a proposed free trade agreement, scheduled to commence on February 12. The primary objective of this agreement is to enhance bilateral trade and foster investments between the two nations.
"The sixth round of negotiations for a proposed trade agreement between India and the South American nation Peru is scheduled from February 12-15," confirmed an official source.
Free trade agreements typically involve significant reductions or the elimination of customs duties on a wide range of traded goods, coupled with relaxed regulations to facilitate the exchange of services.
Issues slated for discussion during the negotiations encompass rules of origin, trade in goods, customs procedures, trade facilitation, and technical barriers to trade, along with sanitary and phytosanitary measures.
Commenced in 2017, negotiations for this agreement saw their fifth round concluded in August 2019, only to be paused due to the global impact of the COVID-19 pandemic.
Notably, the bilateral trade figures between India and Peru during the fiscal year 2022-23 stood at USD 3.12 billion. India exported goods valued at USD 865.91 million to Peru, while imports amounted to USD 2.25 billion.
Key exports from India to Peru include motor vehicles/cars, cotton yarn, and pharmaceuticals. Conversely, imports from Peru feature items such as gold, copper ores, and concentrates.
Beyond the tangible goods exchange, Peruvian businesses are eyeing opportunities to export agricultural products like avocados, fresh grapes, and blueberries, along with natural resources such as calcium phosphates, to the Indian market.
As the negotiations resume, both countries aim to fortify their economic ties and leverage the potential benefits that a free trade agreement can bring to their respective economies. The upcoming talks mark a crucial step in this ongoing diplomatic and economic engagement between India and Peru.

India-Peru FTA: Next round of talks set for February 12

<img src="https://api-discussion.policharcha.com/1704282805713" alt="Adani welcomes SC verdict on SEBI probe, says truth has prevailed" style="float:none;height: auto;width: auto"/>

Gautam Adani, Chairman of the Adani Group, expressed his satisfaction on Wednesday following the Supreme Court's decision not to transfer the investigation into the Adani-Hindenburg matter from the Securities and Exchange Board of India (SEBI) to a Special Investigation Team (SIT) or the Central Bureau of Investigation (CBI).
In a tweet, Adani stated, "Satyameva Jayate. I am grateful to those who stood by us.'"
Acknowledging the ruling as a triumph of truth, Adani conveyed his gratitude to those who supported the Adani Group during the legal proceedings. The tweet also affirmed the group's commitment to contributing to India's growth story.
"The bench, comprising Chief Justice of India DY Chandrachud, PS Pardiwala, and Manoj Misra, highlighted the limited scope of the apex court's power to intervene in the regulatory domain of SEBI."
The Supreme Court bench, delivering a relief to the Adani group, emphasised that the court's role in a judicial review is to assess whether any fundamental rights have been violated. The ruling pertains to petitions seeking a court-monitored or CBI investigation into allegations made by US-based firm Hindenburg Research against the Adani group for stock market violations.
"The court stated that there has been no regulatory failure by SEBI and the market regulator cannot be expected to carry on its functions based solely on press reports."
The apex court, while acknowledging the allegations made in the Hindenburg report, asserted that SEBI's investigative functions should not be influenced solely by media reports. SEBI was directed to conclude its investigation into two out of 24 cases within three months.
The case revolves around allegations that Adani inflated its share prices, leading to a significant decline in the share value of various Adani companies.
The Adani Group has consistently denied these allegations, characterising them as false, and maintaining adherence to all legal requirements and disclosure norms. Various petitions claimed that amendments to the Securities and Exchange Board of India Act shielded the Adani Group from regulatory oversight.
In May last year, an expert committee headed by retired Supreme Court judge Justice AM Sapre found no prima facie lapse on the part of SEBI in the matter.
While reserving the verdict, the Supreme Court underscored its trust in SEBI's investigative process.
Advocate Prashant Bhushan, representing one of the petitioners, urged the court to assess the credibility of SEBI's investigation and consider the formation of an independent organisation or an SIT if deemed necessary.
The Supreme Court's decision marks a crucial development in the ongoing legal saga surrounding the Adani-Hindenburg matter.

Adani welcomes SC verdict on SEBI probe, says truth has prevailed

Main points -&nbsp;
<ol>
<li>India's Digital Payment Infrastructure (DPI), comprised of Jan dhan accounts, Aadhaar and mobile phones, has helped the country to achieve an 80% financial inclusion rate in just six years.</li>
<li>Without this initiative, India would achieved the same in 47 years.</li>
<li>Total value of UPI transactions in FY23 amounted to nearly 50% of India's nominal GDP.</li>
<li>A bank's average cost for customer onboarding has decreased from $23 to $0.1, mostly owing to robust digital infrastructure.</li>
<li>DBT program has enabled India to save $33 billion, equivalent to almost 1.14% of its GDP.</li>
<li>25% of adults held transaction accounts in 2008, today it is at 80%.</li>
<li>Due to Pradhan Mantri Jan Dhan Yojana, the number of accounts trippled from 147.2 million in March 2015 to 462 million by June 2022.</li>
<li>56% of the above mentioned accounts are owned by women.</li>
<li>DPIs have also streamlined Know Your Customer (KYC) procedures, leading to cost reductions, with banks utilizing e-KYC witnessing a drop in compliance costs from $0.12 to $0.06.</li>
</ol>

ICYMI - World Bank's report on financial inclusion in India.

Top global brokerage firm Morgan Stanley on Thursday upgraded Indian stocks to overweight rating and ranked India as the No. 1 market in its basket of Asian emerging markets, excluding Japan.
Beating the likes of Korea and UAE, India jumped 5 places in Morgan Stanley's list on the back of a structural uptrend, secular leadership, and relative valuations being less extreme than in October.

Point to note - MS upgrades India to overweight rating, and downgrades China to equal-weight rating

Read more <a href="https://economictimes.indiatimes.com/markets/stocks/news/india-upgraded-to-no-1-slot-in-morgan-stanleys-emerging-markets-list/articleshow/102374754.cms?from=mdr" target="_blank">here</a>&nbsp;&nbsp;

India upgraded to No.1 slot in Morgan Stanley's emerging markets list

<div>recently modi announced that India will be among the top three economies of world in his third term. what do think? can it happen?</div>

India top 3 economy in the coming years?

Yesterday I was reading how India has significantly increased toy manufacturing and exports. Earlier the toy market of India consisted mainly of Chinese toys.
I think toy industry has a huge potential to grow in the coming years.

The potential of Toy industry in India

India is trying to secure an exclusive EU tag for Basmati rice which will double its exports in the EU countries.
But pakistan is also involved as it says basmati rice also grow there.

Exclusive EU tag for Basmati rice

The SC has appointed a committee to see if the allegations on Adani Enterprises are true. Good step by SC and lets see what the committee comes up with&nbsp;

So finally SC steps into the Adani issue

Stay updated with expert opinions, trends, and developments in economic policies and financial markets