Gujarat Chamber of Commerce & Industry

49/2015-16

Thu, 02 June 2016

Trade & Industry

Manufacturing PMI edges higher to 50.7 in May 201

Manufacturing output in India grew at its slowest pace in five months in May, suggesting that the sector is "barely improving" The seasonally adjusted Nikkei India Manufacturing Purchasing Managers Index edged higher in May, posting 50.7 compared with 50.5 in April. A reading above 50 on the index denotes expansion.

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April core sector output at 8.5% rising for 5th straight month

Core sector production continued on its positive trajectory for the fifth straight month, with April growth accelerating the fastest in 17 months at 8.5%. Core sector output has been growing steadily from December, with monthly readings being 0.9%, 2.9%, 5.7% and 6.4%, respectively, through March.

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Direct tax dispute resolution scheme kicks off

The new Dispute Settlement Scheme has started. It allows for settlement of cases pending in various courts, tribunals, arbitration or mediation under the Bilateral Investment Protection Agreement (BIPA). The scheme provides an opportunity for settlement of cases emanating from retrospective amendment of tax laws, with the companies required to pay just the basic tax demand and get a waiver on interest and penalty.

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Equalisation levy of 6% to come in force from June 1

Equalisation levy of 6 per cent on services pertaining to cross border digital transactions will come into effect from June 1. At present, equalisation levy is leviable only on payments relating to online advertisements. In order to tap tax on income accruing to foreign e-commerce companies from India, the Finance Act 2016 said a person making payment to a non-resident (who does not have a permanent establishment) exceeding in aggregate Rs 1 lakh in a year will withhold tax at 6 per cent of gross amount paid, as equalisation levy. The levy will only apply to business to business transactions.

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Govt mulls 10-year tax holiday for low-value electronics manufacturing

In a major shift in strategy, the government could soon incentivize low value added electronics manufacturing in India as against high-value added products encouraged by its predecessor besides granting a 10-year tax holiday to manufacturers setting up base in India. NITI Aayog has come up with a two-pronged draft electronic products strategy that would give a strong push to Make in India initiative.

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Gujarat set to unveil separate policy for tech-based start-ups

The state government is all set to come up with a separate policy for technology driven start-ups in the field of electronics, information technology (IT) and nanotechnology in a couple of weeks. A slew of incentives has also been planned to encourage start-ups in Gujarat. The proposed policy , being prepared by the department of science and technology, will target more than 2,000 tech-based start-ups over the next five years that have received at least one round of venture capital (VC) funding.

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Economic & Finance

At 7.6%, India still growing at faster clip than China; expected to grow 7.9% in current fiscal

India maintained its position as the worlds fastest-expanding major economy but concerns persist over declining investment and manufacturing growth. GDP grew 7.6% in the year ended March, outstripping previous leader China and faster than last years 7.2%. January-March growth sped up to 7.9% from the preceding quarters, suggesting that despite the caveats, India will remain an island of relative prosperity in a world afflicted by economic uncertainity.

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Government achieves 3.9 pc fiscal deficit target in 2015-16

"Fiscal deficit is 3.9 per cent of GDP or Rs 5.32 lakh crore in 2015-16," the Controller General of Accounts (CGA) said while releasing the provisional accounts for the last financial year. For 2016-17, the government aims to further bring down the fiscal deficit -- the gap between expenditure and revenue -- to 3.5 per cent.

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Forex reserves grow just $18 billion to $360 billion in FY16

Indias total foreign exchange reserves touched $360 billion by end March 2016, up by $18 billion over the previous years levels, data from the Reserve Bank of India showed. The reserves include non-dollar currencies and their revaluation impact against the dollar. Hard dollar mop-up by the central bank through currency market intervention was only $10.2 billion in the year.

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Environment

India fifth largest producer of e-waste: Study

India, which has emerged as the world’s second largest mobile market, is also the fifth largest producer of e-waste, discarding roughly 18.5 lakh tonnes of electronic waste each year, a study says.

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New Projects

Islamic banking to make India debut in PM Modi’s home state Gujarat

The Jeddah-based Islamic Development Bank (IDB) is in the final stages of setting up shop in Prime Minister Narendra Modi’s home state, a move that will usher Islamic finance for homegrown startups and fund Indian exports to many African and central Asian Muslim nations.

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Gujarat to get Rs 2 lakh crore for infra development: Nitin Gadkari

Centre will allocate Rs 2 lakh crore to Gujarat for the development of roads and ports during the next three years, Union minister Nitin Gadkari said.

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GAIL drilling second exploratory well in Gujarat block

State gas utility GAIL BSE 1.10 % India has started drilling a second exploratory well in a Gujarat oil and gas block. The well was spud in Nabhoi village in Anand district of Gujarat on May 27, the company said in a statement.

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