1. Indian Economy the Fastest With 7.6 Percent Growth
Helped by improved agricultural performance and growth in consumption, India’s economy accelerated in the March quarter of 2015-16 to grow at an impressive 7.9 percent.
India gathered momentum from January to March to extend its lead as the world’s fastest growing economy. This will help Prime Minister Narendra Modi craft an impressive sales pitch for meetings with investors in the United States next week.
Read The Quint’s report here.
2. Apple Won’t Set up Stores in India If 30 Percent Sourcing Rule Stays: ET
Apple won’t set up company-owned stores in India if the government doesn’t exempt it from sourcing materials locally, reports The Economic Times.
It has emerged that Apple has no immediate plans to manufacture devices in India or buy parts from vendors in the country, according to two persons with knowledge of the matter.
Apple wants a no-obligation clearance for setting up its stores, since it is not sure about manufacturing anything in the country immediately. It had plans to refurbish iPhones in India and sell it to consumers, but since the proposal has been turned down, local activity around it too is not going to happenSource to The Economic Times
The company currently sells iPhones, iPads, Mac computers and Apple TV through distributors who supply to franchise-owned exclusive stores, retail chains, neighbourhood cellphone stores and ecommerce websites.
3. TRAI May Allow Telcos to Offer Internet Telephony Services Like WhatsApp, Skype: ET
The telecom regulator is set to begin a process that could allow telcos to offer consumers the choice of making calls over the Internet, thus bringing them on par with calling apps such as WhatsApp and Skype .
TSPs can’t provide internet telephony, or VOIP since they are licensees. On the other hand, there are others who provide VoIP, which is the same as internet telephony, This is a situation of regulatory imbalanceRS Sharma, TRAI Chairman to The Economic Times
4. SEBI Eases Redemption Norms for Mutual Fund Investors: Livemint
The capital markets regulator has allowed investors to at least partially withdraw their money from a mutual fund scheme even if an asset management company (AMC) imposes restrictions on redemptions.
Under the new rules outlined by SEBI, no redemption requests of up to Rs 2 lakh will be subject to restrictions, reports Livemint.
For redemption requests above Rs 2 lakh, AMCs will redeem the first Rs 2 lakh without restriction while the remaining money can be subject to any restriction imposed by the AMC.
5. India’s Google Tax May Raise Costs for Indian Units of Global Firms: Livemint
The equalisation levy for online advertisers that will come into effect from 1 June is likely to increase the cost of doing business for the Indian arms of global giants such as Google and Twitter and may force Facebook to consider registering an Indian entity to compete effectively with its online rivals, reports Livemint.
The move is aimed at indirectly taxing global Internet firms who make money from Indian advertisers by introducing an equalisation levy of 6 percent for any payment that exceeds Rs 1 lakh a year from an Indian company to a non-resident for providing online advertisement services.
6. Govt Planning Fund to Invest in Distressed Assets of Banks, Says Jayant Sinha: Livemint
The Centre is exploring the possibility of setting up a stressed asset fund to invest in distressed assets of banks, said Jayant Sinha, Minister of State for Finance.
The government is considering a stressed asset fund, which would be led by State Bank of India and may be set up in partnership with a global fund, reports Livemint.
Sinha declined to share specifics and said that the details, including whether the fund would be spearheaded by the country’s largest lender SBI, are still being worked out.
The comments come at a time when the country’s banking sector, dominated by public sector banks, is saddled with bad loans.
7. Core Sector Growth Accelerates to 8.5 Percent in April: BS
Growth in the eight core sectors jumped to 8.5 percent in April, due to a sharp pick-up in refinery products and a commensurate rise in electricity generation, reports Business Standard.
According to data released by the ministry of commerce and industry on Tuesday, growth in the eight sectors coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity comprising nearly 38 percent of India’s total industrial production, had fallen a marginal 0.2 percent in the same period of the previous year.
Refinery products, which have steadily grown since December 2015, had output rising 17.9 percent in April, after 10.8 percent in March. Electricity generation rose for a fifth straight month, up 14.7 percent, after 11.3 percent in March
8. No Slowdown for India Despite Global Uncertainty: Arun Jaitley to Bloomberg
Despite “considerable” uncertainty in the global economy, India’s growth is set to continue its world-beating pace, according to Finance Minister Arun Jaitley.
“I don’t think we have a slowdown in sight for the reason that there is a lot of economic activity generated by increased public funding, foreign investment, and urban demand moving up,” Jaitley said in an interview with Bloomberg on Monday while visiting Japan, where he hopes to double the number of companies investing in India from “a thousand odd” currently.
The Finance Minister said that the goods-and-services tax and a reduction of the corporate tax rate remain an “unfinished agenda” and should come soon. The next major priorities he identified include modernizing the nation’s infrastructure, spending more on rural areas and strengthening the social security framework.
Her refused to comment on whether Raghuram Rajan would get another term at the RBI.
Read more here.
9. Petrol and Diesel Prices Hiked
Petrol prices have been increased by Rs 2.58 per litre, while diesel prices were hiked by Rs 2.26 per litre, starting Wednesday.
The previous hike was on 16 May, when prices of petrol and diesel were increased by Rs 1.06 and Rs 2.94 per litre respectively.
Read The Quint’s report here.
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