If Indian Prime Minister Narendra Modi doesn’t embrace reality, then reality will catch up with him. The tale of King Canute holds a salutary lesson to Modi. Canute set his throne by the seashore and commanded the incoming tide to halt and not wet his feet and robes. Yet continuing to rise as usual, the tide dashed over his feet and legs without respect to his royal person. Then the king leapt backward, saying: “Let all men know how empty and worthless is the power of kings, for there is none worthy of the name, but he whom heaven, earth, and sea obey by eternal laws.” He then hung his gold crown on a crucifix, and never wore it again “to the honor of God the almighty king.” The dailyReport Must-reads from across Asia - directly to your inbox Like the seas, national economies cannot be ordered about. Any stopping of the rising waters requires long-term and carefully constructed plans for dikes, seawalls and water concourses. This requires a time frame … [Read more...] about Indian economy’s reality will haunt Modi
Indian income tax laws
Business groups support TRAIN 2 MANILA, Philippines — While consumers and several other sectors are blaming the Tax Reform for Acceleration and Inclusion (TRAIN) law for the steady rise in the prices of basic goods, various business and civil society organizations have expressed their support for the second package of the measure which they want to see implemented as soon as possible. The Department of Finance (DOF), through its Strategy, Economics and Results Group (SERG), identified the organizations as the Management Association of the Philippines (MAP), Federation of Indian Chambers of Commerce (Phil.) Inc. (FICCI), Federation of Filipino-Chinese Chambers of Commerce and Industry Inc. (FFCCCII), Rural Urban People’s Linkages and the Samahang Industriya ng Agrikultura, among others. Package 2 of the measure contained in the comprehensive tax reform program or CTRP seeks to reduce the corporate income tax rates in the country, while … [Read more...] about Business groups support TRAIN 2
A top Indian trade body says it is getting legal advice on US retail giant Walmart’s proposed $16-billion takeover of Flipkart, as it believes the deal to grab a 77% stake in the country’s biggest online marketplace circumvents the law. The Confederation of All India Traders (CAIT) has issued a statement urging the government to closely inspect the deal, saying it has major ramifications for retail trade and the economy as a whole. “The deal is circumventing laws and will offend foreign direct investment (FDI) policy once it is implemented and will create an uneven level playing field, besides accomplishing [the] hidden agenda of Walmart to reach out to offline trade via e-commerce,” the CAIT said. CAIT president BC Bhartia and secretary general Praveen Khandelwal said that Walmart was not an online company and e-commerce was not its core area of competence. So, on the basis of Walmart’s financial muscle, a bigger game was planned to bring its goods … [Read more...] about Indian trade group may challenge Walmart’s takeover of Flipkart
As India gears up for a spate of state elections in a run-up to the general polls next year, the second-most influential state is throwing up a few surprises. Bihar is the second-most populous state, so it has a large number of parliamentary seats and plays a major role in the region known as the country’s ‘Hindi heartland’. Tasting blood after defeating the BJP in last month’s by-elections for the seats of Gorakhpur and Phulpur – which had been represented by Chief Minister Yogi Adityanath and Deputy Chief Minister Keshav Prasad Maurya – Mayawati’s Bahujan Samaj Party (BSP) and Akhilesh Yadav’s Samajwadi Party (SP) have reportedly decided to carry through with their partnership for the 2019 general election. The dailyReport Must-reads from across Asia - directly to your inbox Now, reports on the ground suggest that emissaries of the two parties have started back-channel talks to strengthen Uttar Pradesh’s emerging … [Read more...] about Political reckoning for the BJP in India’s northern states
India is facing a new cash crunch, similar to the one the country faced in the aftermath of demonetization. In November 2016, the Narendra Modi government demonetized 500- and 1,000-rupee notes in order to destroy black or unaccounted wealth, which was supposedly stored in the form of cash. The Ministry of Finance had said in a press release back then: “Use of high-denomination notes for storage of unaccounted wealth has been evident from cash recoveries made by law-enforcement agencies from time to time.” The irony was that data from the Income Tax Department showed that only around 5% of the black wealth recovered during tax raids was held in the form of paper currency. The decision to demonetize more than 86% of the currency in circulation created a huge cash shortage. The dailyReport Must-reads from across Asia - directly to your inbox Over the last few days, automated teller machines have been running dry across large parts of the country. The Finance Ministry in … [Read more...] about Is India’s latest cash crunch a legacy of demonetization?