Innholdsfortegnelse for 28-Jul-19 i Business Today

FINANCE MINISTER Nirmala Sitharaman’s Budget could have unveiled bold policy visions of the Narendra Modi-led NDA government’s second term. It missed the opportunity. Instead, it stuck to incremental changes and trod the same path as the Budgets of the past five years. Going up to the Budget, the problems with the economy were fairly clear. Economic growth had largely been held up by government spending and private consumption. But even private consumption was showing signs of flagging. The other two engines of growth – exports and private investment – had been anaemic throughout five years of the preceding government. Agricultural and rural distress was widespread because farm incomes were stagnating in real terms and farmers were hit both when they produced less because of vagaries of the climate as well…

THE MUCH-awaited inheritance tax was conspicuous by its absence in the 2019/20 Union Budget. Before the budget, the one big, bold move that many were expecting was the reintroduction of the tax on inheriting money or property from a deceased person. The tax was abolished in 1985, but many thought that the inheritance tax would make a return as it is a low-hanging fruit for the government struggling to mop up enough resources to revive the sagging economy. Clearly, the government had other ideas. The move could have alienated a large constituency of voters even if the government had levied the tax on the inheritance of properties above a certain threshold. When a senior finance ministry official was asked if inheritance tax was discussed during the budget-making process, he said no…

US, CHINA CALL TRUCE The US and China finally entered a trade truce after Donald Trump and Xi Jinping met at the G20 summit and decided to hold off on new tariffs and resume talks. Trump also suggested reversing the government’s decision to ban American companies from doing business with Huawei, the Chinese telecom major accused of posing security threats. Markets soared at the news of truce, but the biggest June jump since 1938 cooled down later in the day. The US has also threatened the EU with more tariffs on products worth $4 billion. The dispute stems from ‘illegal’ subsidies that the US and Europe seem to offer their respective aircraft manufacturers, Boeing and Airbus. LAGARDE TO HEAD ECB IMF Managing Director Christine Lagarde has been nominated to head…

THE INDIAN JUDICIARY has largely demonstrated a pro-arbitration stand when it comes to dispute resolution in tune with international commercial arbitration. This alternative legal mechanism can benefit those who do not want to take recourse to lengthy courtroom procedures. However, there are legal traps which can be used by a party to avoid arbitration. One way of doing it is to raise an allegation of fraud against others and approach a civil court for an anti-arbitration injunction. But Indian courts are wary of this practice and do not grant anti-arbitration injunctions except in rarest of cases. Point-Counterpoint As per my understanding, the first leading case (Russel versus Russel) related to the anti-suit injunction was a foreign one over the partnership between two brothers, and their agreement had an arbitration clause.…

There was a heightened sense of anticipation among economy watchers and the corporate sector in the run up to Finance Minister Nirmala Sitharaman’s maiden Budget, and not just because she was the first full time woman Finance Minister in India. (Indira Gandhi, as Prime Minister, had handled the defence and finance portfolios with for brief periods.) The anticipation was because the Narendra Modi-led NDA government had come back to power with an even greater majority than the first term, and there were some expectations that the first Budget of this term would unveil bold, long-term reforms that would put the economy on a high growth trajectory. Would the Budget signal new policy priorities? Could it do something to bring back private sector confidence and investment, which had been sorely lacking…

₹50 lakh crore: Investment needed in Railways between 2018 and 2030. The government proposes use of the PPP model to supplement its own funding ₹100 lakh crore: Amount to be invested in infrastructure over the next five years Uniform power grid model will be replicated in areas like gas, water and regional airports. Blueprint to be ready later this year To circumvent the issues of land acquisition, large public infrastructure projects to be built on land owned by central ministries and PSEs Credit Guarantee Enhancement Corporation, notified under the RBI, to be set up for infrastructure financing An action plan to deepen the market for long-term bonds, including corporate bond repos and credit default swaps, with specific focus on the infrastructure sector Investments made by FIIs/FPIs in debt securities issued…

In an unexpected move, the finance minister levied 2 per cent TDS (tax deducted at source) on cash withdrawal of ₹1 crore or more in a year. Nirmala Sitharaman justified this by saying that whatever has to be done with such a large amount of cash, can be done electronically too. The trading community has expressed its displeasure. V.K. Bansal, National General Secretary, Federation of All India Vyapar Mandal, says deposit and withdrawal of cash in business is a common activity and that the government should reconsider the move. Apart from the cash withdrawal tax, direct tax announcements in the Budget were mostly welcomed by businesses. Boost to Start-ups Sitharaman decided to play angel, exempting start-ups from angel tax – a tax on the premium (over the fair value) received…

In a mere 50-word paragraph, Finance Minister Nirmala Sitharaman indicated a shift in policy to raise sovereign debt. She stated that the government would start raising a part of its gross borrowings in external markets, in external currencies. She argued that India’s sovereign external debt to GDP is among the lowest globally, at less than 5 per cent, and if the government looks at the international market, this will have a beneficial impact on the demand situation for government securities in the domestic market. She thinks this may decrowd the domestic debt market for indigenous entrepreneurs. What she did not disclose is the fate of the economies exposed to external debt and the complications in raising such funds in foreign currency. A quick look shows Indonesia (with 36.2 per cent…

The NDA government’s large mandate had raised hope among taxpayers for some relief in the Union Budget. However, the Budget proved to be an incremental one with a lot of small changes here and there. The Interim Budget presented by the outgoing government in February had proposed that a person would not have to pay tax if his taxable income is up to ₹5 lakh. This was done through increase in the Section 87A rebate from ₹2,500 to ₹12,500. There was no change in income tax slabs. This continues. This means that the moment your taxable income crosses ₹5 lakh, you have to pay tax not only on income above ₹5 lakh but also on income above the basic income exemption limit of ₹2.5 lakh if you are below 60…

Governments that do not respect central bank independence will sooner or later incur the wrath of financial markets.” This warning by Reserve Bank of India (RBI) Deputy Governor Viral Acharya in October last year seems to have gone unheeded. Acharya is the latest key RBI official to have quit (six months before his term was to end) in the middle of tumultuous events at the RBI that have, over the past year, seen the government demand additional surplus capital, threatening to use its special powers to direct the RBI on matters such as restructuring MSME loans, releasing weak banks from tight regulatory control and Urjit Patel resigning as governor in haste citing personal reasons. That’s not all. The siege in recent months has included a bank dragging the RBI to…

Bengaluru-based Cloudphysician Healthcare was set up two years ago to deliver ICU services remotely to hospitals in far-flung areas. Trained ICU doctors are in acute shortage in India – about 4,500 doctors cover three lakh beds. So, Cloudphysician puts cameras and software at the bedside to send real-time audio-video feeds from the ICU to its command centre where doctors provide consultation within 30 seconds. The start-up is heavily dependent on broadband connections when it operates in Tier-II and Tier-III cities of Bihar, Uttar Pradesh, Tamil Nadu and Karnataka. It prefers leased lines for uninterrupted Internet access but these are not available everywhere. Dileep Raman, a US-trained doctor and co-founder of the company, says a robust 5G network could be a game-changer in these cases. “As much as we use it,…

PROMOTER SHAREHOLDING FELL FROM 35% IN 2007 TO 13% IN 2019 March 2007 35.46% Promoter and Promoter Group 64.54% Public holding + large shareholding (Global Technology Ventures – 7.02%, Walden Software Investment – 17.82%, Capital International Global Emerging Market – 11.37%) March 2011 (Before Ashok Soota started selling his stake) 31.94% Promoter and Promoter Group 68.06% Public holding + large shareholding (Nalanda India Fund – 9.86%, Global Technology Ventures – 6.12%, Walden Software Investment – 8%) June 2011 (After Soota sold half his stake) 26.38% Promoter and Promoter Group 73.62% Public holding + large shareholders % (Walden Software Investment – 7.98, Global Technology Ventures – 6.61%, Franklin Templeton Investment Funds – 4.19%) June 2012 (After Soota sold all his shares) 19.83% Promoter and Promoter Group 80.17% Public holding + large…

STEM CELL BANKING AND STORAGE LEADING PLAYER: LifeCell CHALLENGES: Scale Subscale operations hard to sustain Cost reduction Needs more applications to lower cost and increase affordability Awareness Increased awareness plus more applications will REGENERATIVE RESEARCH AND THERAPIES LEADING PLAYERS: Stempeutics Research Reliance Life Sciences CHALLENGES: Difficulties in designing proper clinical trials and getting regulatory approvals Technologies still being developed for large-scale manufacturing, current 2D technology labour-intensive, large-scale automation needed for cost reduction…

DHFL Sold Aadhar Housing Finance to Blackstone for ₹2,200 crore; Blackstone also injected ₹800 crore primary equity capital Exited Avanse Financial Services, an education-focussed NBFC, selling it to Warburg Pincus affiliate Olive Vine Investment for about ₹1,100 crore Received approval from Sebi to exit the mutual fund business – DHFL Pramerica MF – by selling its 50 per cent stake to its joint venture partner Prudential Financial Looking to sell promoters’ 51 per cent stake in DHFL Pramerica Life Insurance. Transaction likely this quarter Talking to private equity players for selling part of the 39.2 per cent promoters’ stake in DHFL…

MANAGING A DISORGANISED employee is often a maddening experience. How can you help your scattered direct report develop better systems? How can you drive home the importance of staying on top of meetings, calendars, and e-mails? And is it even possible to help a person overcome a natural inclination towards disorder? What the Experts Say Even if you’re not the type of person with a tidy desk and an ordered to-do list, it can be frustrating – not to mention stress inducing – to manage someone who’s disorganised. “You’re not sure if the other person has dropped the ball or even if they are going to hit the deadline, and so you may feel anxious,” says Elizabeth Grace Saunders, author of How to Invest Your Time Like Money. It may…

Rosie Perez, lead financial officer of global consumer business planning and analytics at American Express, recalls a time early in her career when she managed a disorganised employee. Rosie had hired this person – we’ll call him Aaron – from outside the company. “A few weeks in, I noticed he began missing deadlines, losing information, and generally looked flustered,” she says. At first, Rosie thought it was just the challenge of learning a new job and navigating a new company. “But, several months later, when his disorganisation began impacting our team’s ability to complete projects efficiently, I realised he needed guidance.” Rosie remembers feeling uneasy about the situation. “I wasn’t sure when or if I would receive the deliverables we agreed on. This also made me feel guilty about the…

STAY CONNECTED WITH US ON www.facebook.com/BusinessToday@BT_India Blackstone, the Last Resort for Cash-strapped Indian Real Estate Developers The New York-headquartered PE giant believes in waiting for the right time and right valuations before striking a deal  businesstoday.in/blackstone-realestate Government Arming Itself to Tax Facebooks, Googles of the World Taxing digital companies is a big challenge for countries across the globe, because taking advantage of loopholes in tax rules, they attribute a significant part of their revenues to subsidiaries based in low-tax countries businesstoday.in/digitalcompanies-tax Can India Gain From US-China Trade War? India is playing a proactive role in analysing the impact of the retaliatory tariffs to see where the potential lies for Indian exporters businesstoday.in/us.china-tradewar NEWS Social Stock Exchange May See a Chicken-and-egg Scenario The social SE under SEBI for listing social enterprises…

WHAT STARTED off in July 2018 as a blip turned into a crisis by the end of last year and is now a catastrophe. Automobile sales in India registered a third straight month of double-digit decline in June and an eighth straight month that the industry has been in the red. In passenger vehicles, sales have now declined in 11 of the last 12 months. It is a run that is unprecedented for an industry that not too long ago was touted as the fastest growing in the world. Sale of motorcycles, scooters, heavy trucks, buses and even tractors are all down in the dump. With a 33 per cent deficiency in rainfall, June was one of the driest ever recorded in India and the impact was felt on sale…

NEW HOUSING launches have declined 11 per cent in the first half of 2019 as liquidity squeeze has hurt the ability of developers to put fresh projects in the market. Following the NBFC crisis, liquidity has dried up for project finance, and only top developers are now able to raise fresh funds. Alongside, subdued consumer interest has led to a decline in customer advances, which is a substantial source of funding for developers. A total of 73,049 projects were launched in the top seven cities compared to 82,300 projects in the year-ago period, according to data from JLL. However, this decline in new launches is expected to work well for the sector in the long term as it will help clear the unsold inventory. It will take about 40 months…

AS 15-YEAR-OLD Yajur plays PUBG, several of his school friends watch the gaming video live and cheer for him. From sharing photos and videos on social media, they have moved to playing games online and boasting about their achievements on social media platforms. “Gaming, which was alienating individuals from their surroundings, is now increasingly becoming social, with the rise of multiplayer games,” says R.P. Singh, Chief Curator, CMS Asia. Whether it is shooting aliens or car racing, online games are being increasingly designed to be played in a group. What has helped is their integration with social media apps where one can invite friends to play and share their views and comments. The Mobile Marketing Association and Kantar IMRB report – The Power of Mobile Gaming in India – states…

1) The Founder Vikram Kumar, an entrepreneur from Amritsar who did his MBA in marketing before moving to the UK. He worked for top telcos for nearly a decade before deciding to launch several businesses of which the flagship is a full-service firm that provides hardware and linked apps for GPS tracking in real time. 2) The Concept Initially, it was an app-based employee tracker for in-house requirements. But Kumar realised the global potential of GPS-tracking services and the need to invest in linked devices for end-to-end support. “It is the 360-degree vision of global enterprises that got us thinking. We put in a lot of work to build a comprehensive ecosystem,” he says. 3) The Business Letstrack hit the headlines when its trackers were fitted in Election Commission vehicles…

FDI limit in insurance intermediaries raised to 100 per cent, but only for intermediaries and not for insurance companies FDI norms for single-brand retail made easier, but multi-brand retail foreign investment remains barred Proposal to allow FDI in media, but limited to animation, visual effects, gaming and comics 25% corporate tax expanded to cover firms up to ₹400 crore of revenues, but these (99.3 per cent of all firms, as the FM said) form a smaller part of corporate tax liability…

The Indian economy faces increasing challenges as the government seeks ways of further integrating it, especially with the East Asian region. The most immediate of these challenges are being posed by a potential mega-regional trade agreement, the Regional Comprehensive Economic Partnership. Drivers of this proposed agreement are keen to conclude these negotiations by the end of 2019, and hence the urgency on the part of India to develop coping strategies. In this context, Finance Minister Nirmala Sitharaman’s maiden Budget was an important statement by Modi Government 2.0 in response to the challenges of regional integration. Ever since India began implementing three of its most significant free trade agreements (FTAs), with ASEAN, Korea and Japan, there have been unambiguous signs that the Indian businesses were unable to compete with their counterparts…

Budget 2019/20 could lay the foundation for a new India and it seems like a good endeavour towards making India a $5 trillion economy. By laying emphasis on building physical and social infrastructure and ensuring that Digital India reaches every sector of the economy, the FM has tried making a Budget which is inclusive and progressive. The FM said that this Budget gives wings to the farmers but I would like to add that this Budget not only gives wings to the farmers but also strengthens the roots of the farmers by way of making Gaon, Gareeb aur Kisan a central theme to the various policies and initiatives announced. The government has done some good work in agriculture in the recent past which is visible from the outlay on expenditure…

If you go by pure numbers, the Narendra Modi government has increased the allocation for agriculture in Union Budget 2019/20. This is true even if one excludes the ₹75,000 crore provided for the Pradhan Mantri Kisan Samman Nidhi (PM-Kisan). The Fasal Bhima Yojana has been allocated ₹14,000 crore instead of ₹12,975 crore last year and interest subsidy for short-term credit to farmers has gone up from last year’s ₹14,987 crore to ₹18,000 crore. Such measures are good but mean absolutely nothing if structural reforms are what we have been hoping for. First of all, the PM-Kisan is a dole which the farmer will end up spending, but not something that can contribute to long-term sustainability of agriculture. Similarly, the increase in allocation for other schemes by roughly ₹1,000 crore can…

Turnover threshold for lower corporate tax rate of 25% raised from ₹250 crore to ₹400 crore. Revenue loss to be ₹4,000 crore Investments by PE funds exempt from tax due to any excess premium received by a closely held company upon issuance of shares Relief from angel tax scrutiny for start-ups and their investors who file requisite declarations Distressed companies under insolvency proceedings to be allowed to carry forward and set off losses. For calculation of MAT of companies under IBC, aggregate of brought-forward losses and unabsorbed depreciation shall be allowed as deduction…

The first Budget of the newly formed government sets the path and pace for the future. The vision is to build infrastructure, digitalise India, achieve environment-friendly growth, provide healthcare, become self-sufficient and continue on the path of “Make-in-India”. The tax proposals have been framed to provide impetus to the above aspirations. Saving the angels: “Angel tax” has been an issue for the start-ups. The Budget proposes to dispense with audit of such transactions upon furnishing of certain declarations. To ensure targeted scrutiny, future enquiries are now mandated to require a second-level approval. Further, investments from Category-II AIFs have been granted immunity from the rigours of angel taxation. A pass-through of losses for AIF investors is also a welcome move for this industry. Though the increase of surcharge rates to individuals…

• No tax if your income is up to ₹5 lakh• ₹1.5 lakh additional deduction on home loan interest• ₹1.5 lakh deduction on loan interest for electric vehicles• Tax-free withdrawal of 60% NPS corpus becomes a reality• Central Public Sector Enterprises Exchange Traded Funds to become more attractive with introduction of tax breaks just like ELSS• People without PAN can use Aadhaar for tax filing• STT restricted only to the difference between settlement and strike price in case of exercise of options…

The Supreme Court strikes down stressed assets circular that laid down rules for one-day default by big companies and mandated insolvency as a remedy. It had given defaulting companies 180 days to agree on a resolution plan with lenders or be taken to bankruptcy court. The RBI was forced to issue a new circular Kotak Mahindra Bank has dragged the RBI to court on stake-reduction guidelines. The promoters had to reduce their stake to 20 per cent by December 30, 2018. They did so through preference shares and not equity shares. The RBI imposed a penalty on Kotak. The matter is in court The NCLAT directed banks not to classify IL&FS loans as NPAs. It, though, relented later The Supreme Court has asked the RBI to disclose its annual inspection…

Enhanced Indoor/Outdoor Broadband The first adopters of 5G will be mobile and fixed wireless users who want super-high speeds and better voice experience Asset Tracking High-definition videos, sensors and smart meters will help enterprises get real-time information about assets and their usage Smart Agriculture Besides the enterprise segment, agriculture is expected to become a hotbed of 5G use cases. India is expected to take the lead in using sensor networks for farming Autonomous Vehicles Self-driving vehicles stand at the intersection of various implementation and regulatory challenges; their adoption – enabled by low-latency 5G tech – is expected to take time globally and in India The use cases go beyond the areas mentioned above. Other areas include IoT, augmented and virtual reality (AR and VR), smart grids, smart cities, smart homes,…

March 18, 2019 Coffee Day Chairman V.G. Siddhartha announces 20.32 per cent stake sale in Mindtree March 18 L&T says to float an open offer to acquire 31 per cent March 19 Mindtree founders vehemently oppose ‘hostile takeover’ at a press conference March 20 Mindtree adjourns board meet to consider buyback March 26 L&T files detailed public statement, announces start of open offer from May 14 April 17 Mindtree board recommends a final dividend of 40 per cent and special dividend of 200 per cent; L&T fails to get Sebi approval for open offer in time, offer delayed June 6 Revised open offer date announced (as June 17) June 17 Tendering for open offer begins June 20 Mindtree Co-founder Subroto Bagchi quits, company board recommends three board seats for L&T…

IN RUSKIN BOND’S short story The Boy Who Broke the Bank, a boy working as a sweeper at a bank causes its collapse after the manager is unable to pay his salary on time. Soon the rumour spreads that the bank has run out of money. Customers queue up in large numbers demanding repayment of their deposits. Since the nearest bank is 30 miles away, the manager is unable to get emergency funds to meet the demand. The crowd gets unruly, someone hurls a brick at the bank’s window and there is chaos all around. That’s the end of the Pipal-nagar Bank. The financial services industry runs on the principle of confidence. Any rumour indicating drying up of funds can bring the confidence crashing down. Dewan Housing Finance (DHFL), a…

Dos: • Determine whether your employee’s organisational challenges are impacting performance • Explain how improved organisation is in your employee’s best professional interest • Summon compassion. You might not know the struggles this person is going through to be productive Don’ts: • Coddle. Help your employee grasp the impact of their disorganisation and the consequences it has on the team • Keep yourown organising strategies to yourself. Share how you stay on top of things with your employees • Be impatient. Progress takes time so acknowledge your employee’s efforts and celebrate their achievements…

MEMORY TECHNOLOGIES used in computers and other electronic devices have evolved enormously over the past decades and done their respective jobs well, but there are problems and limitations. Now that the genuinely high-speed 5G network is set to take off globally, a tsunami of data is bound to be consumed, and the search for a new type of computer memory has gone into overdrive. The requirements are clear – it must be superfast, non-volatile (can retrieve stored data after power cycles) and should consume very little energy. This may sound too good to be true – after all, data-guzzling gadgets are expected to consume one-fifth of global power by 2025. However, scientists at the Lancaster University seem to have found the perfect solution. Their memory device has been quickly patented,…

ROOM AIR PURIFIERS are quite common nowadays but have you ever heard of a personal air purifier? The latest product from Dyson is just that – a radically redesigned fan that sits close by and blasts out a stream of clean air directly at you. Technically, this is high-velocity air flow (230 metres per second) that dispels the ambient air around you and helps you breathe cool, pollution-free air. Unlike many of its ilk, Pure Coolol Me is a lightweight (2.79 kg), compact device that should be kept within a foot or two from where you are. Going by Dyson’s standards, I found the design a little uninspiring, though. There is a stocky circular base with holes which suck the polluted air and pass it through a sealed filter that…

THE SECURITIES and Exchange Board of India’s fresh guidelines to safeguard debt investors’ interest in the wake of recent defaults are worth applauding. The regulator has taken steps to distinguish liquid funds by making it mandatory for such funds to hold at least 20 per cent in liquid assets such as cash, government securities and T-bills. Though the move may eat into the overall portfolio yields, it will lower liquidity risks. The reduction in sectoral cap to 20 per cent from 25 per cent earlier and a cut in the additional exposure in HFCs from 15 per cent to 10 per cent will help avoid concentration risk. The graded load on exiting the fund within seven days will nudge institutional investors to migrate to overnight funds, protecting liquid portfolio returns…

WITH SUSTAINABILITY and reduced carbon footprint being centre stage globally, e-commerce companies in India are doubling down on their initiatives. Walmart-owned Flipkart recently announced plans to introduce electric vehicles (EVs) nationwide for its last-mile delivery network in a phased manner. The aim is to replace 40 per cent of its existing last mile delivery vans with EVs by March 2020 and deploy 160 e-vans across cities by the end of this year. Flipkart has already deployed eight EVs in Hyderabad, 10 in New Delhi and 30 e-bikes in Bangalore. Amazon also recently expanded its India first initiative of Packaging Free Shipment to nine Indian cities, aiming to reduce waste generated from secondary packaging of customer orders. The larger vision is to make Amazon shipments net zero carbon (50 per cent…

GLOBAL PLATFORM WHAT: Toronto Global Forum WHEN: September 4-6, Toronto WHAT TO LOOK FOR: International Economic Forum of the Americas organises this event to foster a discussion on national and global issues in the presence of heads of states, central bank governors, ministers and global economic decision makers. GET FUTURE-READY WHAT: India Innovation Summit WHEN: August 21-22, Bengaluru WHAT TO LOOK FOR: Organised by the Confederation of Indian Industry, the 15th edition of the summit will offer an opportunity to understand the critical role innovation plays in the success of a business. Participants will learn to drive innovation-led growth strategies in their organisations. ANALYTICS MATTERS WHAT: India Supply Chain Analytics Forum WHEN: August 23, Mumbai WHAT TO LOOK FOR: Analytics professionals and supply chain industry experts will come together to…

STEPS FOR FINANCIAL SECTOR ₹70,000 crore for recapitalisation of public sector banks, which will support lending Partial credit guarantee to PSBs to buy high-rated pooled assets worth ₹1 lakh crore from NBFCs Deepening long-term bond market, which will encourage bond repos and credit default swaps, especially in the infrastructure sector STEPS FOR AGRICULTURE PM-Kisan gets ₹75,000 crore for 2019/20 Incubation of 75,000 skilled entrepreneurs in agro-rural industries Starting 10,000 new Farmer Producer Organisations…

On the face of it, Budget 2019/20 does not have magnanimous steps to spur private investments that the Economic Survey underlined. But look deeper, and one can see a series of measured steps. The government’s intent to reduce fiscal deficit from 3.4 per cent of GDP in FY19 to 3.3 per cent in FY20 and raise a part of its borrowings offshore, will help ‘de-crowd’ the bond market, lower interest rates, and therefore can invoke investments. Second, the ₹70,000 crore recapitalisation of public sector banks will help fuel credit growth. Third, the increase in customs duty is expected to aid local manufacturing and improve utilisation. The reduction in customs duty on inputs, on the other hand, will improve competitiveness in sectors such as petrochemicals, electronics, auto components, etc. Fourth, FDI…

In what can be claimed as an incremental Budget, the larger message of Finance Minister Nirmala Sitharaman is clear on redistribution of wealth and reinforcing the transparency agenda. With a host of administrative tax reforms, including faceless assessments, the bedrock of Budget 2019/20 appears to rest on stimulating growth, simplifying tax administration, digitisation of the economy, improving the ease of doing business and boosting the ‘Make in India’ initiative. It aspires to make India a $3 trillion economy by the end of the financial year, and lays guidance for the $5 trillion-mark by 2025. There are no major policy shifts such as the introduction of wealth tax or inheritance tax. But, the FM has tinkered with several provisions for revenue mobilisation, digitalisation of cash transactions for establishing trail, surge in…

The principal economic issue in the elections was high unemployment, in addition to concerns over an economic slowdown on the back of low investment and low consumer demand. Understandably, the expectation was that government would propose some ‘big’ measures, but the Budget was largely disappointing. There were several measures with implications for employment generation, but the vision they add up to has failed to produce results thus far. However, there are some creative ideas too, which one hopes will take off and be expanded. In the face of climate change and agrarian distress, there was a chance to significantly increase MGNREGA outlay. Instead, the outlay is slightly lower than the revised estimate for 2018/19 sending a ‘status-quo’ signal. Nor is there a single new employment generation scheme (urban employment guarantee)…

• No increase in basic income tax exemption limit• People with taxable income above ₹2 crore and below ₹5 crore to pay surcharge of 25%• People with taxable income above ₹5 crore to pay surcharge of 37%• Gold to get costlier as import duty raised from 10% to 12.5%• Petrol and diesel to get costlier by ₹2 per litre with additional excise duty• Mandatory to deduct TDS on payment to contractor above ₹50 lakh• Mandatory to file ITR if you spend big amounts on certain things…

Osborn Smith: He quit in 1937 over differences with the finance member of the Viceroy’s Council Benegal Rama Rau: He was at odds with the then finance minister T.T. Krishnamachari S. Jagannathan: He resigned to become an executive director at the IMF K.R. Puri: He was removed within six months of his tenure after the Janata government took over Manmohan Singh: Transferred to the Planning Commission in 1985 over non-resident Indian Swraj Paul’s investments in India R.N. Malhotra: Resigned in 1990 after being told that the government wanted him out Bimal Jalan: Quit in 2003 after he got a Rajya Sabha seat Urjit Patel: Resigned in 2008 over differences with the government…

A QUICK search on the Internet will show some players using stem cells with claims of treating different ailments from autism to cancer. There is no clear estimate of the size of this market as costs vary – some talk of ₹18-20 lakh for a procedure. Anybody who has good knowledge of cell biology and appropriate lab and instruments can make stem cells. The regulatory landscape is still evolving and is today more a framework. There is a need to move towards making it a law whereby it should be possible to impose penalties on those who make claims that play on sentiments of patients and at the same time also ensure that treatments are allowed in selective cases where proven medical interventions have failed. In 2017, the National Guidelines…

DHFL has ₹1.03 lakh crore loans outstanding as bank loans, NCDs, etc; ₹1,400 crore debt is coming up for repayment by August 2019 Analysts believe a strategic investor can pump in ₹4,000-5,000 crore if promoters sell about three-fourth of their stake (30 per cent stake in the company) Housing finance companies can have a leverage of 9.5 to 10 times, implying that after a strategic investor takes over, DHFL can raise ₹40,000-50,000 from the market Despite liquidity stress, DHFL has repaid ₹35,000-40,000 crore to creditors, including retail fixed deposit holders, since September 2018…

Amy Brachio, a partner at EY Global who specialises in risk management, has supervised several disorganised people over the course of her career. One individual – we’ll call him Zack – stands out. “Zack’s disorganisation showed up through a lack of discipline in managing his calendar,” says Amy. “As a result, he disappointed team members and clients by cancelling at the last minute or unexpectedly missing meetings and deadlines.” Zack was smart and capable, but his inability to show up when needed left Amy and other colleagues feeling disappointed and frustrated. “While I believed strongly in his talent, intellect, and creative problem-solving, he became known more for unreliability and irregular follow-through,” she says. After reflecting on the problem, Amy knew she needed to speak directly with Zack. She made sure…

AS HILTON HOTELS Group turns 100, it has started visualising what hotels should be like in another 100 years from now and put the details in a fascinating report called Checking Into 2119. It will be a world of inter-galactic getaways, hyper-personalised stays and 3D-printed dinners, according to the hospitality group. Predictably, technology will be a big enabler, but guests will also want to go offline. “In a tech world, offline will be a new luxury. Hotels may feature individual spaces for guests looking forward to reconnecting with themselves,” the report says. Personal touch and human contact will be more important than ever in a world filled with artificial intelligence (AI). So, Hilton will have Hilton Hosts, with one assigned to each guest. These ‘part concierge' hosts will focus on…

THERE ARE PLENTY of Android phones, but not many Android One smartphones. The latter is a near-stock version of the Android platform released by Google, has a clean user interface (UI) and comes with a promise of timely security and software updates for two years. While most manufacturers prefer to have custom UI, Nokia is committed to the Android One programme. Interestingly, Nokia 2.2 is the most affordable Android One smartphone in the Indian market (not to be confused with Android Go, designed for low-spec devices). This one sports a 5.71-inch HD+ display with 400 nits brightness. There are thin bezels on the sides and a teardrop selfie notch at the top. The power button and the volume key are on the right panel; the audio port is at the…