FDI flow in to India grows by 35% in last 17 months

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Foreign direct investment into India has grown by 35 per cent in the last 17 months even as across the world it has fallen by 16 per cent, a top Union government official said today.

“FDI in India has grown by 35 per cent at a point of time when FDI across the world has fallen by 16 per cent,” Department of Industrial Policy and Promotion Secretary Amitabh Kant told reporters here.

He said ‘Make in India’ was launched in end-September last year and since then FDI has grown by 40 per cent as compared to the previous year, “but if you look at the last seventeen months of this government FDI has grown by 35 per cent as compared to the previous seventeen months.”

FDI has come into manufacturing, consumer goods, logistics and food processing sectors, he added.

Kant was today given additional charge of the post of CEO, NITI Aayog, consequent to the completion of tenure of Sindhushree Khullar.

Asked about the additional charge, he said “…I have not yet taken over.”

On startups, Kant said, “there is a huge energy, vitality and dynamism amongst startups in India and we need to carry this forward from digital startups to manufacturing startups, to startups in agriculture and social innovation areas, and from tier one to tier two and three cities.”

“The Prime Minister will be launching the Startup India movement on January 16 in New Delhi, we are inviting all the startups from Bengaluru to participate in this.”

“On that day we will link up all the IITs, IIMs, NITs and central universities for viewing of the startup India discussions from morning to evening,” he added.

He also said to provide a major impetus to the sector the Prime Minister will unveil the action plan for startups on that day.

On the economy, Kant said India is growing at 7.4 per cent and “it is an oasis of growth in the midst of a very balanced economic landscape across the world.”

“Challenge for India is to grow at 9-10 per cent over a long period of time over the next three decades or more,” he said.

“If India has to grow at 9-10 per cent India must become a very easy and simple place for people to do business….; It has to grow rapidly in manufacturing sector,” he added.

While speaking about the Make in India initiative of the government, Kant said Make in India week is being organised from February 13 to 18 in Mumbai, where about hundred countries are participating from across the world. Also, Asia business forum will be held during this event.

Stating that government is taking a series of measures to make India a very easy and a very simple place to do business, he said, “We have created an e-biz platform with Infosys where we have put twenty government services online with one single point of payment….”

“Our objective is that in the long run there should be only one identification number for the businessmen. The company identification, the labour identification and others should all get merged into one identification and there should be just one single form…..” he added.

Speaking about competition among states in ease of doing business, Kant said last year we had ranked the states on hundred points, this year we are doing it on 340 points.

“We expect Karnataka to do extremely well this year and take action on all 340 points and prove its position; Karnataka must come in top three,” he added.

 

Source: http://www.business-standard.com/article/pti-stories/fdi-flow-grows-by-35-in-last-17-months-official-115122900639_1.html

MCA extends last date of filing of AOC-4 and MGT-7 E-Forms to 30.01.2016 to Tamil Nadu & Pondicherry

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MCA

The Circular from Ministry of Corporate Affairs extends one more month time, for Annual Filings of MGT -7 , Annual Return & AOC-4, Audited Financial Statements, without additional fees, to Tamil Nadu & Pondicherry, which were affected by floods.

The extract of the circular issued today, i.e., 30 December, 2015 is as below:

 

In continuation of the ministry’s circular 15/2015 dated 30.11.2015, keeping in view the requests received from various stakeholders stating that due to heavy rains and floods in the State of Tamil Nadu and Union Territory of Puducherry, the normal life/work was affected, it has been decided to relax the additional fees payable for the State of Tamil Nadu and UT of Puducherry on e-forms AOC-4, AOC (CFS) AOC-4 XBRL and e- Form MGT-7 up to 30.01.2016, wherever additional fee is applicable.

The last date of filing forms AOC-4 (XBRL, non-XBRL & CFS) and MGT-7 till 30th Dec 2015, without additional fees, has ended.

 

The Ministry of Corporate Affairs, Government of India has earlier vide its General Circular No.15/2015 dated 31/11/2015, extended the last date for filing the Annual Returns by 30 days and relaxed the additional fees for the forms filed till December 31, 2015. This has ended now.

 

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Make in India: DIPP looks to include micro, small and medium industries in startup definition

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A clear definition is imperative for the government to decide which companies can draw the benefits of any scheme for startups.

The government is considering a proposal to include micro, small and medium enterprises (MSMEs) in its definition of startups to help boost the Make in India campaign. Various government departments have held a series of brainstorming sessions to discuss the definition so that the policy can be formalised. A clear definition is imperative for the government to decide which companies can draw the benefits of any scheme for startups.

The Department of Industrial Policy and Promotion (DIPP) is spearheading the exercise of formulating the startup policy, along with ministries such as finance, skill development and MSME among others. The Start-Up India initiative is scheduled to be announced by Prime Minister Narendra Modi in January 2016 and the policy needs to be finalised by then. Progress on the initiative is being monitored directly by the Prime Minister’s Office. India wants to create an ecosystem that encourages entrepreneurship and is collecting suggestions from the startup community for steps that need to be taken to ensure that the Start-Up India initiative is a success.

Including MSMEs, collectively one of the biggest employers of people in India, is seen as positive for manufacturing and therefore employment generation, key aims of the Make in India programme. Officials are also discussing specific criteria that would make an MSME eligible to be called a startup. This would determine eligibility for incentives such as fewer compliance conditions, cheaper credit and tax benefits.

“Defining (startups) is the most complex issue. It involves technology companies MSMEs and so many other sectors. We should be able to finalise something soon,” a senior government official said.

To qualify as a startup, an entity would also have to meet certain financial standards besides having a level of innovation in its product or service. “It is better to have a broader definition of startups, so MSMEs and tech-based startups can both take advantage. The moment one leaves things for interpretation, corruption will seep in,” said Gaurav Kachru, founder, 5ideas Startup Superfuel. Startups are expected to create 250,000 jobs in India by 2020, up from 80,000 now, according to a Nasscom report. The Start-Up India initiative announced by Modi in his Independence Day speech assumes significance given the thrust by the government toward employment generation.

Economic Times View: Start Up On the Ease of Doing Business Front

A wider definition of startups should broad-base attention across industries. In tandem, we need to boost knowledge-creation, innovation and entrepreneurship to better coagulate resources for startups. Otherwise, we will fail to develop a thriving ecosystem, complete with conducive state policy support. In parallel, we need suitable tax treatment and attendant rules so that startups do not see the need to go abroad to do business here in India. We need ease of doing business with the startup economy in mind

 

Source:http://economictimes.indiatimes.com/articleshow/50179566.cms

 

Japanese PM Abe on 3-day visit to India starting today; number of pacts on table

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A Rs 98,000-crore deal to build a bullet train network is among a number of agreements likely to be signed during Japanese Prime Minister Shinzo Abe’s three-day visit beginning on Friday during which he will hold annual summit talks with Prime Minister Narendra Modi.

The focus of the visit will be on forging greater synergies between two major Asian economies and take forward the special strategic ties.

In the 9th annual Indo-Japan summit talks on Saturday, Modi and Abe will review implementation of various decisions taken in course of last one year to enhance economic ties, particularly in the trade and investment sector.

Sources said a number of agreements including awarding the Rs 98,000 crore contract to build India’s first bullet train network will be inked.

After the talks, he will leave for Varanasi, which is Modi’s Parliamentary constituency, where he will attend Ganga Aarti at famous Dasaswamedh Ghat. Modi will accompany Abe during his nearly four-and-a-half-hour-long visit to Varanasi.

Abe will return to New Delhi in the evening.

The Japanese Prime Minister had accompanied Modi during his visit to Kyoto last year.

In Delhi, Abe will call on President Pranab Mukherjee, attend a Japan-India innovation seminar and interact with a group of business leaders.

At the last Summit meeting held in Tokyo last year, the two prime ministers had agreed to elevate the relationship to “Special Strategic and Global Partnership”.

Modi had visited Japan from August 30 to September 3 last year during which that country had announced doubling of its private and public investment in India to about $34 billion over a period of five years.

During the summit talks last year, Modi and Abe had agreed to enhance defence and strategic cooperation to a new level and also decided to speed up negotiations on civil nuclear deal.

While agreeing on greater defence equipment and technology cooperation, the two sides had decided to expedite discussions on modalities for the sale of Japanese US-2 amphibian aircraft.

Foreign Secretary S Jaishankar had held talks with top Japanese officials in Tokyo last month to finalise agenda and other details of Abe’s visit.

India and Japan have been expanding their economic and strategic engagement in recent years resulting in cooperation in a vast swathe of fields including defence and security.

The economic engagement witnessed significant rise after both countries signed a a Comprehensive Economic Partnership Agreement (CEPA) in 2011.

Source: http://www.businesstoday.in/current/economy-politics/japanese-pm-shinzo-abe-on-3-day-visit-to-india-from-today-number-of-pacts-on-table/story/227027.html

Indian economy can grow at 9 per cent for a decade: Professor Lawrence Summers

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India has the potential to grow at 9 per cent for a decade and 8 per cent in subsequent years if the country takes bold reform measures, eminent economist and Harvard University professor Lawrence Summers said today.

“Except India, major emerging economies seem to be losing momentum… I think if India maximises its potential, it could grow at 9 per cent for a decade, and 8 per cent a decade after that, and 7.5 per cent for a decade after that,” Summers said during a session at the Hindustan Times Leadership Summit.

Summers, who is president Emeritus and Charles W Eliot professor at Harvard University said he is very optimistic about the capacity of India but the country needs bolder reforms.

“… 9 per cent growth, decline by 0.5 per cent to 1 per cent every decade, that is my sense about India’s potential that is not my forecast for India because India would have to reform more boldly and take a whole set of steps not just at the national level but at the level of states, and even at the level of culture if it wants to achieve that potential,” he said.

Quoting IMF, Summers said India is projected to be the fastest growing economy in the world over next 5 years.

Summers’ statement assumes significance as India’s economy grew at 7.4 per cent during July-September this fiscal year, more than China’s growth rate at 6.9 per cent.

Summers, who was also US Treasury Secretary, said India should not blindly follow the so called Tiger’s economies growth model and it should give more stress in developing its services sector.

“I think India can do lot to promote manufacturing. But I don’t think it is reasonable to think India should follow South Korea’s export-led growth model.

“India has different potential and it should concentrate more on services sector,” he said.

Summers also stressed on the need of speedier and predictable decision-making in India.

“Speedy decision-making has never been an Indian hallmark. There is still too much of sense in India, that being well-connected is particularly very important in the country. If this can be worked on, nothing like it,” Summers said.

Asked whether the US Fed should raise interest rates, he said, “It is very clear. Given the current context, there isn’t any other alternative to raising interest rates,” he said.

Source: http://economictimes.indiatimes.com/news/economy/indicators/indian-economy-can-grow-at-9-per-cent-for-a-decade-professor-lawrence-summers/articleshow/50055050.cms

Smart cities to boost Internet of Things market in 2016: Gartner

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The smart cities planned by the government will use nearly 1.6 billion of connected things or Internet of Things (IoT) by 2016, an increase of 39% from 2015, Gartner said in a report.

 

IoT is the network of physical objects or “things” embedded with electronics, software, sensors, and network connectivity, which enables these objects to collect and exchange data.

 

“Smart commercial buildings will be the highest user of IoT until 2017, after which smart homes will take the lead with just over 1 billion connected things in 2018,” said Gartner’s Research vice president Bettina Tratz-Ryan.

 

Commercial real estate benefits greatly from IoT implementation as it creates a unified view of facilities management as well as advanced service operations through the collection of data and insights from a multitude of sensors.

 

“Especially in large sites, such as industrial zones, office parks, shopping malls, airports or seaports, IoT can help reduce the cost of energy, spatial management and building maintenance by up to 30%,” Tratz-Ryan said.

 

The business applications that are fuelling the growth of IoT in commercial buildings are handled through building information management systems that drive operations management, especially around energy efficiency and user-centric service environments, Gartner said.

 

“In 2016, commercial security cameras and webcams as well as indoor LEDs will drive total growth, representing 24% of the IoT market for smart cities,” she said.

 

Tratz-Ryan further said IoT deployment in commercial buildings will continue to grow at a rapid pace over the next few years, and is on pace to reach just over 1 billion in 2018.

“Incentives into the deployment of IoT in commercial real estate will fuel its development,” she added.

Source: http://timesofindia.indiatimes.com/tech/tech-news/Smart-cities-to-boost-Internet-of-Things-market-in-2016-Gartner/articleshow/50088586.cms

 

CBDT defines ‘charitable purpose’ for benefits under I-T Act

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CBDTTax department says any general public service that involves trade, commerce or business for a consideration will not be treated as Charity under the Act

With a view to weed out commercial activities under the garb of charity, the tax department has said any general public service that involves trade, commerce or business for a consideration will not be treated as Charity under the Income Tax Act.

Issuing ‘Explanatory Notes to the Provisions of the Finance Act, 2015’, which lists all the amendments that were made to it, the Central Board of Direct Taxes (CBDT) in a circular gave the definition of ‘charitable purpose’ as also listing yoga as one of the activities that will get tax benefit.

“The definition of ‘charitable purpose’ in the I-T Act has been amended to provide that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration..,” the note said.

This is intended to ensure appropriate balance between the object of preventing business activity in the garb of charity and at the same time protecting the activities undertaken by the genuine organisation as part of actual carrying out of the primary purpose of the trust or institution. “These amendments take effect from April 1, 2016, and will, accordingly, apply in relation to the assessment year 2016-17 and subsequent assessment years,” it said.

The explanatory note also provides details of rates of direct taxes, applicability of minimum alternate tax (MAT) on foreign entities, tax benefits for Swachh Bharat Kosh and Clean Ganga Fund, besides other provisions of the Finance Act, 2015, which was approved by Parliament in May.

As per the circular, 115 JB of Income Tax Act has been amended such that capital gains arising on transactions in securities; or interest, royalty or fees for technical services to a foreign company will not be liable to MAT if such income is credited to the profit and loss account and the tax payable is less than the rate specified in section 115JB.

Source: http://www.livemint.com/Companies/EWp1WVBQjO1ByPFsDuN6hN/CBDT-defines-charitable-purpose-for-benefits-under-IT-Act.html