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Report Dated February 23, 2017 6:07 PM
India is among the top five countries globally which saw the maximum number of millionaire outflows with as many as 6,000 ultra-rich people shifting overseas in 2016, 50% more than the previous year.
According to a report by New World Wealth, around 6,000 uber-rich Indians have changed their domicile in 2016, while in 2015 as many as 4,000 millionaires had shifted base.
The total wealth held in the country amounts to USD 6.2 trillion (as of December 2016) and the country is home to 264,000 millionaires and 95 billionaires in total.
Millionaires or High Net Worth Individuals (HNWIs) refer to individuals with net assets of USD 1 million or more.
Report Dated February 22, 2017 7:10 PM
India’s millennial population is a massive disruptive force and driven by this supportive demographics alongwith government’s policy action, Indian economy is likely to reach USD 5 trillion by 2025, says a report.
India’s USD 2.2 trillion economy makes it the seventh largest in the world in terms of nominal GDP (and the third largest in PPP terms), but the country’s per capita income is less significant.
With a per capita income of USD 1,700, India ranks well behind some of the key emerging markets, like China, Russia, Brazil, Indonesia, the Philippines, Mexico, and Turkey.
By financial year 202425, Morgan Stanley expects per capita income to rise 125 per cent to USD 3,650.
The report said India’s millennial population of 400 million is the largest in the world and is armed with around USD 180 billion in spending power and with high smartphone adoption and widespread availability of mobile broadband infrastructure, it will become a disruptive force faster than most businesses expect.
The population dynamics will therefore be a key force in shaping India’s overall growth trajectory and also in shaping how product markets will develop as the preferences of the population evolve, Morgan Stanley said.
The report, however, noted that the demographics factor alone is not sufficient for an acceleration in GDP growth. It is important that the working age population is adequately skilled to participate in a globalised competitive environment.
Report Dated February 18, 2017 2:08 PM
BAJAJ AUTO Managing Director Rajiv Bajaj criticised the withdrawal of high value notes in November last year, saying the idea itself was “wrong” and it was incorrect to blame only the execution.
“If the solution or the idea is right, it will go like a hot knife through butter. If the idea is not working, for example demonetisation, don’t blame execution. I think your idea itself is wrong,” Bajaj said at the annual Nasscom Leadership Forum, in a rare public criticism of the move by a corporate chief.
Bajaj also took potshots at the government’s ‘Made in India’ initiative, saying regulatory agencies and government approvals would turn ‘Made in India’ into ‘Mad in India’. “If your innovation in the country depends on government approval or judicial process, it will not be a case of ‘Made in India’, but ‘Mad in India’. After five years, we are still waiting for permission to sell our four-wheeler in the country,” he said.
While the quadricycle is being sold across countries in Europe, Asia and Latin America, Bajaj wondered why a vehicle which is cleaner, fuel-efficient, safer and whose benefits are as “obvious as daylight”, is facing problems in India. “This is the only country that has not given us permission to sell this vehicle. Because, for some reason, it thinks if four-wheeler is worse, let people continue on three-wheeler,” he said.
On November 8, the government announced the withdrawal of 500 and 1,000 rupee notes in what it said was an attempt to check black money and corruption. The ban on total currency worth Rs 15.55 lakh crore in circulation impacted economic activity across sectors.
The Society of Indian Automobile Manufacturers (SIAM) recently said its impact can still be felt in the two-wheeler segment. “We expect a big revival in commercial segment in the next two months. The rural markets are deeply impacted by note ban and will take more time to recover,” it said. In January, two-wheeler sales registered a decline of 7.39 per cent compared to January last year, SIAM said.
During the period of demonetisation, sales of two-wheelers slid 22 per cent in December 2016, marking the highest monthly contraction after SIAM started recording the data since 1997. Bajaj Auto’s total domestic sales, including those of two-wheelers as well as three-wheelers, were down 16 per cent to 1,35,188 units in January from 1,61,870 units sold during the period last year.
Bajaj Qute, a four-wheeler, comes under a whole new category — the quadricycle. A quadricycle is a four-wheeled microcar seen mostly in Europe, with limitations in terms of weight, power and speed. It has the features of a three-wheeler as well as a car, with carbon emission of 66 g/km, which, when compared to other four-wheelers, is on the lower side. It can attain a speed of up to 70 kmph and a fuel consumption level of one litre for 36 kms.
Bajaj said his company is “anti-car”. “We feel people should either walk, cycle or use a two-wheeler. Cars are too big, too fast. they pollute, they congest and kill all of us on two-wheelers. People say two-wheelers are dangerous, My submission is two-wheelers are dangerous only when hit by a car,” he said.
Report Dated February 14, 2017 6:45 PM
Boeing Co. and Lockheed Martin Corp. promised to build plants in India if the world’s biggest arms importer chose their fighter jets and weapons. That was before President Donald Trump’s America First call.
This week will be a test for that promise as the biggest U.S. defense contractors, Russia’s MiG Corp., and Europe’s Airbus SE line up to display their wares at an air show in Bengaluru in southern India.
Even as they compete for deals, they could find themselves torn between Trump’s push for companies to keep jobs in the U.S. — he has singled out a number of multinational firms on Twitter for public criticism — and Prime Minister Narendra Modi’s own program that seeks to tie military contracts to some of the manufacturing being done in India.
Modi’s promise to shell out $250 billion in the coming years on fighter jets, submarines, howitzers and helmets to modernize his armed forces came with one call — Make in India. Sensing an opportunity, local conglomerates Tata Group, Mahindra & Mahindra Ltd. and Larsen & Toubro Ltd. have expanded more into the defense sector and formed joint ventures with international manufacturers.
India, which has traditionally relied on Russia and the former Soviet Union for fighter jets, is increasingly warming to the U.S. In his first phone conversation with Parrikar, Defense Secretary Jim Mattis committed to build upon the “tremendous progress in bilateral defense cooperation made in recent years,” a Pentagon spokesman said last week.
Report Dated February 12, 2017 7:07 PM
At least Rs 3,900 crore was laundered through shell companies between November-December 2016 after the ban on high-value banknotes, investigations by a central agency have found.
The probe by the Serious Fraud Investigation Office (SFIO) has also identified at least 54 people who helped 559 beneficiaries with laundering the illicit cash, sources said.
The government recalled 500 and 1000-rupee notes on November 8 in a move it said was aimed at sucking out illicit cash from the system. Since then, various financial crime investigating agencies are tracking movement of high volumes of cash.
The sources said the people involved in laundering the money through 49 shell companies have been identified and could face stringent action.
Shell companies, which are anonymous corporate entities with fake ownership, are used as conduits to convert illicit money into legal cash and are vital to the money laundering chain.
A task force comprising members of various regulatory ministries and enforcement agencies has been set up under revenue secretary Hasmukh Adhia and corporate affairs secretary Tapan Ray to monitor action taken against shell companies.
“Stringent action will be taken against the shell companies,” a source said. “The Benami Transactions (Prohibition) Amendment Act, 2016 will also be applicable.”
The Prime Minister’s Office (PMO) held a high level meeting on Friday to review the functioning of shell companies registered in India.
PMO sources said criminal prosecution has been filed against these companies for cheating the exchequer and the process to wind up these 49 companies is underway.
An initial report by various agencies has revealed that only six lakh out of the 15 lakh registered companies file annual returns, implying that a large number of these firms may be indulging in financial irregularities.
Sources told Hindustan Times that all information has been shared with the Special Investigation Team (SIT), Income Tax department, Enforcement Directorate, Securities and Exchange Board of India (SEBI) and the Institute of Chartered Accountants of India (ICAI).