The NITI Aayog on Wednesday unveiled a strategy document with an aim to accelerate growth to 8 per cent and propel the country towards a $5 trillion economy by 2030.
The ‘Strategy for New India @ 75’ document, prepared after extensive consultations with over 800 stakeholders from within the government – central, state and district levels, was released by Finance Minister Arun Jaitley.
“The overarching focus of the strategy document is to further improve the policy environment in which private investors and other stakeholders can contribute their fullest towards achieving the goals set out for New India 2022 and propel India towards a $5 trillion economy by 2030,” it said.
GlaxoSmithKline (GSK) plans to split into two businesses — one for prescription drugs and vaccines, the other for over-the-counter products — after forming a new joint venture with Pfizer’s consumer health division.
The revamp is the boldest move yet by GSK Chief Executive Emma Walmsley, who took over last year.
It will lead to the creation of a consumer health giant with a market share of 7.3 per cent, well ahead of its nearest rivals Johnson & Johnson, Bayer and Sanofi, all on around 4 per cent.
Walmsley has previously played down the idea of breaking up the group, something that a number of investors have called for over the years.
On December 19, however, she announced that GSK and Pfizer would combine their consumer health businesses in a joint venture with sales of 9.8 billion pounds ($12.7 billion), 68 percent-owned by the British company, in an all-equity transaction.
GSK said that the deal laid the foundation for the creation of two new UK-based global companies focused on pharma/vaccines and consumer healthcare within three years of the transaction closing.
The government’s note ban decision shaved off economic growth by at least 2 percentage points for the October-December quarter of 2016 in which the demonetisation move was affected, according to a research paper co-authored by eminent economist Gita Gopinath.
India-born Harvard professor Gopinath, 46, is set to take charge as the chief economist at the International Monetary Fund (IMF) next month.
The paper further said that districts experiencing more severe demonetisation had relative reductions in economic activity, faster adoption of alternative payment technologies and lower bank credit growth.
“Our results imply demonetisation lowered the growth rate of economic activity by at least 2 percentage points in the quarter of demonetisation,” said the research paper titled ‘Cash And The Economy: Evidence From India’s Demonetisation’.
The paper is published by US-based National Bureau of Economic Research (NBER) and its co-authors include economist Prachi Mishra, who had headed the strategic research unit at the RBI, Abhinav Narayanan, manager-research at RBI, and Harvard professor Gabriel Chodorow-Reich is the lead author.
According to the paper, note ban also led to a decline in nightlights-based economic activity and a 3 percentage points or more drop in employment generation in November and December of 2016 relative to the counterfactual path.
The Indian economy grew at 7 per cent in the third quarter (when demonetisation was implemented) of 2016-17 and at 6.1 per cent in the subsequent quarter. In 2017-18, the Indian economy grew by 6.7 per cent.
In the six quarters before demonetisation, growth averaged 8 per cent and in the seven quarters after, it averaged about 6.8 per cent (with a four-quarter window, the relevant numbers are 8.1 per cent before and 6.2 per cent after).
The paper also noted that cash continues to serve an essential role in facilitating economic activities in modern India. It also pointed out that there may be longer term advantages from demonetisation that arise from improvements in tax collections and in a shift to savings in financial instruments and non-cash payment mechanisms.
India’s central drug regulator CDSCO has seized samples of Johnson & Johnson baby powder from the firm’s plant in Baddi, Himachal Pradesh, agencies reported on Wednesday citing an industry source.
It was a London-based newswire that revealed how Johnson & Johnson’s raw talc and finished powders sometimes tested positive for small amounts of (cancer-causing) asbestos for decades.
Johnson & Johnson’s (J&J) market value has plummeted since the report came out. The firm has described it as “one-sided, false and inflammatory”.
J&J India didn’t have any immediate comment on Tuesday’s seizure of samples in Himachal Pradesh, and a CDSCO (Central Drugs Standard Control Organisation) spokeswoman didn’t respond to a request for comment, agencies said.
The fallout isn’t limited to Himachal Pradesh. Surendranath Sai, a drug officer in Telangana, has said he’s instructed inspectors to seize samples there.
The leading newspaper has quoted an official source as saying 100 drug inspectors have assigned to examine different manufacturing facilities, wholesalers and distributors linked to J&J India that started early on December 19.
India will need 2,300 airplanes worth $320 billion in the next 20 years, aircraft maker Boeing said on December 19. In rupee terms, the amount would be around Rs 22,45,364 crore.
As much as 85 per cent of the planes would be narrow-body and the rest would be wide-body.
The forecast is for the 2018-2037 period.
According to Boeing, India would need 1,940 single-aisle planes worth $220 billion and 350 wide-body aircraft valued at $100 billion.
Around 10 regional jets worth less than $1 billion would be needed during the 2018-2037 period.
“India continues to grow at a faster pace,” Dinesh Keskar, Senior Vice President (Asia Pacific & India Sales) at Boeing Commercial Airplanes said.
He also noted that the aviation market in India is “quite challenging” as most airlines are not making money even as there is strong passenger growth.
Doormats and rugs with the image of the Golden Temple were reportedly sold on Amazon, drawing a strong reaction from a prominent Sikh body which asked the online retail giant to prohibit the sale of culturally inappropriate and offensive merchandise.
The Sikh Coalition said in a statement on December 18 that it was alerted to products such as door mats, rugs and toilet seat covers with the image of one the most historically significant Sikh sites, the Golden Temple, were being sold by some sellers on Amazon.
The civil and legal rights organisation said that in the hours since, through community outreach, several pages have been removed from the website. The products seem to have been removed from Amazon’s website as a message that “Sorry, we couldn’t find that page” appears when running a search for the items.
Singh said that “using religious or spiritual imagery on products that come into contact with unhygienic surfaces is offensive to all faiths that originated in the East. The Golden Temple is no such exception and should never appear on rugs, bathmats, and toilet seat covers. Such items are deeply offensive to Sikhs everywhere and other followers of Eastern religions.”
Several startups have raised concerns on taxation of angel funds under Section 56 of the Income Tax Act, which provides for taxation of funds received by an entity.
“We have taken up the issue,” the Commerce and Industry Minister said in a tweet.
He said that this in response to a tweet by Chairman of Manipal Global Education T V Mohandas Pai, who has sought “urgent” intervention by the government in the matter.
An income tax official said, “Notices issued on angel tax to startups may be for those that are not recognised by the department of industrial policy and promotion (DIPP)”.
Earlier in April, the government gave relief to startups by allowing them to avail tax concession if total investment including funding from angel investors does not exceed Rs 10 crore.
As per a notification by the Commerce and Industry Ministry, an angel investor picking up stakes in a startup should have a minimum net worth of Rs 2 crore or should have an average returned income of over Rs 25 lakh in the preceding three financial years.
Section 56 of the Income Tax Act provides that where a closely held company issues its shares at a price more than its fair market value, the amount received in excess of the fair market value will be charged to tax the company as income from other sources.
Startups also enjoy income tax benefit for three out of seven consecutive assessment years.
To avail the concessions, startups would have to approach an eight-member inter-ministerial board of certification.
An angel investor is the one who funds a startup when it is taking baby steps to establish itself in the competitive market.
Normally, about 300-400 startups get angel funding in a year.
The government launched the Startup India initiative in January 2016 to build a strong ecosystem for nurturing innovation and entrepreneurship.
Former Delhi Chief Minister Sheila Dikshit on Wednesday took a diplomatic stand over the possibility of an alliance with Aam Aadmi Party (AAP) and asserted that whatever the Congress high-command decides will be acceptable to all.
“The party will decide, the high command, Rahul Gandhi and all will decide and whatever they decide will be acceptable to all of us,” Dikshit told ANI.
Dikshit served as the Chief Minister of Delhi for three terms before AAP’s Arvind Kejriwal dismissed her with a record mandate in December 2013.
On the contrary, AAP Rajya Sabha member Sanjay Singh had rubbished rumours about the two parties entering an alliance. “AAP till now has not decided to form an alliance with any other political party for the upcoming elections. These rumors are spread by other political parties,” he had said on Tuesday.
Dikshit has time and again criticised Delhi’s Aam Aadmi Party government on various issues.
In June this year, she delivered a stern message to Delhi Chief Minister Arvind Kejriwal and said that conflict with Lieutenant Governor Anil Baijal or the Centre cannot be an excuse to not work.
The Bharatiya Janata Party (BJP)-led Gujarat government has announced to write off electricity bills of connection holders in rural areas to the tune of Rs 650 crore.
Gujarat Energy Minister Saurabh Patel informed that 6.22 lakh people would benefit from the move.
“We are announcing a one-time settlement scheme. Today, electricity connection of around 6.22 lakh consumers has been cut; they can deposit Rs 500 under a one-time settlement scheme and get back their connection. In urban areas both BPL and non-BPL families will be able to avail this benefit, industries will not be given this benefit. The government will have to bear a burden of Rs 625 crore,” the minister said.
The announcement came a day after the Congress party has announced loan waivers for farmers in Madhya Pradesh and Chhattisgarh within hours of forming the government. This move by the Congress government in both states has put the BJP governments at the Centre and states under pressure ahead of the Lok Sabha elections next year.
The Delhi High Court on Wednesday quashed the summons issued against Union minister Smriti Irani in a defamation complaint filed against her by Congress Leader Sanjay Nirupam.
The court, however, dismissed a similar plea by Nirupam’s seeking to set aside the summons issued against him in a cross-defamation complaint filed by Irani.
The court said the case against Nirupam will continue.
Justice R K Gauba passed two separate verdicts on the two leaders’ plea.
In her plea, Irani had sought quashing of the summons issued to her by a trial court on June 6, 2014. She had also sought quashing of the complaint filed by Nirupam.
Nirupam had challenged a magisterial court’s March 11, 2013 order summoning him in Irani’s defamation complaint against him. He had also sought quashing of the January 1, 2013 complaint filed by Irani.
India will need 2,300 airplanes worth $320 billion in the next 20 years, aircraft maker Boeing said on December 19. In rupee terms, the amount would be around Rs 22,45,364 crore.
