Economy

Chaos as officials mislead, local credit keeps markets alive;
I-T be reformed to help genuine earners

By Shivaji Sarkar

India economy has been the pride of world. It has been showcased as the only growing economy - a proud moment for Indians particularly under Prime Minister Narendra Modi.

The NDA government is poised to award its first 'make' contract, in which the Ministry of Defence (MoD) will fund two Indian consortia in developing a Rs 40,000-50-000 crore 'battlefield management system' (BMS). This digital wireless network will interlink soldiers and battlefield sensors through voice and data channels, providing a common battle picture to each jawan.

MUMBAI: Days ahead of the Budget, Reserve Bank governor Raghuram Rajan on Wednesday pitched for increasing the tax exemption limit on financial investments by individuals from Rs 1.5 lakh a year.

"Remember the government increased the limit for tax benefit in savings by Rs 50,000 in the last Budget. The question is - is there room for more primarily because the real tax benefit has fallen over time because the limit was at Rs 1 lakh for a long time? Maybe what we have to do is increase that," Rajan said on a call with analysts.

Imagine for a moment a train from your town to Kochi and ending up in distant Ahmedabad. Successive Union Budgets have been doing precisely that; probably far worse. Government misses Revenue targets by a mile and exceeds its expenditure by another.

The net result? The Fiscal Deficit – the indicator of the net borrowing by the Government to fund its expenditure – exceeds the budget target. But who cares? Definitely not the mandarins in Finance Ministry.

Imagine for a moment a train from your town to Kochi and ending up in distant Ahmedabad. Successive Union Budgets have been doing precisely that; probably far worse. Government misses Revenue targets by a mile and exceeds its expenditure by another.

The net result? The Fiscal Deficit – the indicator of the net borrowing by the Government to fund its expenditure – exceeds the budget target. But who cares? Definitely not the mandarins in Finance Ministry.

Indian companies are playing an important role in the growth of the British economy and contributing to GDP and creating employment opportunities, according to Grant Thornton UK LLP's India Tracker 2014 report.

The report, which is prepared in collaboration with the Confederation of Indian Industry (CII), monitors UK registered businesses with ultimate Indian parent companies and identifies the fastest growing corporates by turnover and employment size.

India looks at major tax reforms to lubricate economy



By Shivaji Sarkar


The economy is in shambles and there is no prescription to revive it. While inflation is robbing people of their power to purchase, high taxes are rubbing salt to the injury. It is time India takes a fresh look at its direct taxes and abolishes them.

Tax reforms are considered a first in checking inflation.




The rupee fell to a new record low of 58.64 versus the US Dollar . On Monday, the rupee sank 110 paise at a life-time low of 58.15 against the dollar hurt by outflows of the American currency and weak macro-economic indicators.

Dealers said the rupee continues to face challenges from India’s rising current account deficit (CAD) and overseas economic data and policy decisions.

Intra-day range for the rupee is expected at between 58.25-58.80 levels.

The interbank call money rates opened flat at 7.30 per cent from their previous close.