NEW NORMAL

 Recently, government had introduced three bills  related to justice. Which are very much needed as these laws are very old i.e. from the era of British rule. These will become law after parliament approval , major overhaul is proposed in it, but we have to wait till final  notifications released. The laws will be futuristic and will reduce the time of litigations with justice done in time bound manner. The proposed laws must have to address the issue of commercial contract which is not in the agenda of our justice system. Time taken to complete the transaction is very high with cumbersome process with added cost of compliances. If we have to compete with global forces than our contract enforcements and compliance cost should be minimum. The layering in the judicial system, which is stopper for system as well as for businesses. It should be reduced or minimized. Other provisions in the bills are good for netizens as it will bring accountability in the judicial system and ...

In latest RBI's MPC meeting the decision on rate was as expected. There is no change in repo rate and other rates. The inflation is on higher side with seasonal rate hike of vegetables like tomato and onion. Now, it is recognized that our seasonal rate increase in vegetables and fruits with some staples is annual ritual as we do not have adequate storage facility for it. Market needs stability in rate for some more time as it is going to stabilize MSME sectors as the planning for them will be easy to expand business. So the retail sector, in which maximum no. of borrowers are home buyers, they will not face issue of increased EMI or elongation of tenure of loan. It is true that cost of capital for long term loans are high in comparing to short term loan, but the system of calculation is opaque, which needs transparency so that a borrower must  take call prior to  taking loan and his consent is needed to hike EMI amount or loan tenure elongation. Presently, rate hike automatica...

 PLI scheme started delivering the result though it is very early but it is showing way forward to us ,yes their is some issues in implementation but it can be resolved as it is procedural issue for claiming incentive for export with items to be exported specially in AUTO sector PLI. The communication sector i.e. mobile manufacturing is steadily increasing with eco system of components are also coming now, the pace is slow but it is following the mother unit. The numbers of component makers are coming and their investment is going to generating thousands of jobs formally, which will aid for informal jobs. The government is trying to bring same scheme for different sectors with in consultation of stake holders. Just few days back government banned the import of ICT goods i.e. laptops, monitors and all in one computers, as PLI for the sector was changed as per demand of stakeholders. The component makers are demanding the permission for Chinese national to be allowed to work in our c...

 Latest SBI report on state of economy has some interesting facts and some surprises. The report says we are going to replace both Japan & Germany from their present position of third and fourth  position to become third largest economy of world after US & China.  By 2027, we will be $5T economy  with growth rate of 6.5 to 7% per annum. The nominal growth in Rupees term will be around 10%. The report says we will achieve this fist two years earlier than earlier report. The state of economy is sync with our budget declaration with buoyant revenue growth. The collection of revenue in both direct and indirect taxes are increasing steadily and also the compliance from netizens and corporates. Though the tax evasion is still issue but the compliances are increasing to give a comfort to both government and citizens. We have highest KM of roads in the world with no. of KM is going to increase in coming  years as we still need more roads to connect our length an...

 Foxconn and Vedanta, dissolved their joint venture for Fab manufacturing unit. They were first to apply for Indian Semiconductor Mission in 2022. They announced their plan, now they are finding other partner for same. There plan to bring other partners for same. Other global players are coming to our country due to market and incentives offered by central and state government.  The total quantum of money is around 75% of the plant  investment. Now, this will only delay for sometime but not permanently stall the project. Others who are sitting on fence are coming with proposals and will get requisite permission for same.  The investment is huge and technologies are varied, it is taking time but things are coming as we want.  The prices of tomato and other vegetables are making headlines for some times. A market visit gave some strange picture where merchants are not selling tomato's nor storing, usually they are selling it solely. Even hawkers who only sold toma...

 History was created in our country's corporate world after merger of HDFC Ltd & HDFC Bank. The total asset base of the merged entity is big enough to claim 4th position in global ranking. Going by the history of both entities, huge wealth has been created and distributed to the shareholders . The subsidiaries of HDFC Ltd like HDFC LIFE,HDFC SECURITIES,HDFC ERGO & others have created niche for themselves. The all entities themselves are market leader and having reputation in their respective pear group. Regulators has given them highest ratings for their compliances. Initially, HDFC Bank was not included in strategically important bank which was decided after 2008 financial crisis. The pact then signed by all the government  and central banks of world after financial crisis 2008, to safe guard the banking industry from any crisis. This was discussed in several times by us, now we after not going to discuss it here. The confidence boost by this will give not only to all...

 This time we will be taking a point which has political angle, but it is more relevant to economy. In year 2010 to 2014, we used to heard and read in daily news paper had like we are going to import electronics goods and coal from different parts of worlds. The amount for this imports would have been $500 B. Huge amount were invested to give lectures to government at that time. After regime changed in 2014, things continued for some time. The manufacturing sector was negligible or on the verge of shutting down the sector due to cheap imports from China and neighboring countries. Once the government started to take decision like reducing duties on semi knockdown  units of mobile handset, followed by charging unit. The duty difference made companies from China to invest in country to assemble mobile set. The result of this came slowly but in positive direction and with firm ground. Pandemic proved very beneficial for our economy with prudent management of economy. With lowest i...