Economy
FDI to reduce India's current account deficit: Moody's
Chennai : Credit rating agency Moody's Investors Service on Thursday said India's rising foreign direct investment (FDI) inflows reduces the current account deficit and also the external financing needs.
 
In a statement Moody's said it does not expect widening of India's current account deficit based on its assumptions that commondity prices will remain low in 2016 and 2017.
 
According to Moody's, FDI inflows are expected to climb due to central government's measures like liberalisation of foreign investment limits and 'Make in India' initiative.
 
"These trends are credit positive, as they lower India's susceptibility to external shocks at a time when capital flows to emerging markets are volatile and weak economic conditions globally, particularly in the Gulf states, may dampen remittances," said the Moody's statement, quoting Marie Diron, senior vice president for the Sovereign Risk Group.
 
According to Moody's, a lower energy import bill and policy measures to contain gold imports are contributing to keeping the trade deficit at moderate levels.
 
Going forward, the announcement in the latest budget of the imposition of an excise tax on gold is likely to dampen overall gold imports.
 
Additionally, the value of oil imports decreased by 37.5 percent - or Rs. three trillion (US$44.3 billion) - in the 12 months to February 2016 compared with the previous year, despite a 10 percent increase in the volume of petroleum imports, Moody's said.
 
However, the prospect of subdued global economic activity - in particular in the Gulf states where more than half of remittances to India originate - may lead to a significant and prolonged weakening of remittance inflows.
 
This development is likely to prevent India's current account from returning to balance and could lead to its renewed widening.
 
The rapid rise in FDI inflows mitigates the risks related to a possible widening of the current account deficit from weaker remittances by diminishing India's external financing needs from other inflows in the form of credit and equity inflows.
 
Net FDI inflows into India hit an all-time high in January 2016, at $3 billion on a 12-month moving average basis.
 
India's current account deficit is now more than covered by its FDI inflows. The rise in FDI points to stronger investor interest in India on the back of robust economic growth.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Disclose your assets by April 21: SC tells Mallya
New Delhi : The Supreme Court on Thursday directed beleaguered liquor baron Vijay Mallya to disclose to it all his assets -- movable and immovable and tangible and intangible -- and other interests in India and abroad by April 21.
 
An apex court bench comprising Justice Kurien Joseph and Justice Rohinton Fali Nariman asked Mallya to disclose all the assets held by his wife and children and also indicate the date when he could appear before it in person. 
 
The order came after the consortium of 14 banks headed by the State Bank Of India (SBI) told the apex court that that it had rejected Mallya's offer to pay Rs.4,000 crore by September to settle his outstanding dues amounting to more than Rs.9,000 crore. 
 
The banks had given loans to his grounded Kingfisher Airlines.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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SC grants Rs.40,000 compensation for dog bite death in Kerala
New Delhi : The Supreme Court has directed the Kerala government to pay Rs.40,000 to Jose Sabastin whose wife died after being bitten by a dog and could not be cured despite undergoing treatment.
 
Noting that unless an ex-gratia amount was paid, the victim's family was not in a position to sustain itself, the bench of Justice Dipak Misra and Justice Shiva Kirti Singh said: "We think it apt to direct Kerala to pay a sum of Rs.40,000 to the applicant (Sabastin) within four weeks."
 
The court was told that Sabastin, who has two children, was working as a bus driver and his wife was working in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS).
 
However, the court made it clear that it would not henceforth entertain any application for payment of compensation to victims of dog bites as it has constituted a three-member fact-finding committee to look into such complaints.
 
"Any person intending to avail this kind of remedy has to move the committee and not directly come to this court or move the high court," the court said in its order on Tuesday that was made available on Wednesday.
 
Counsel V.K. Biju, appearing for Sabastin, said the applicant's wife succumbed to the injuries because of the dog bite and could not be cured despite undergoing treatment.
 
Biju told the court that because of inadequate action by the state, the number of victims has risen in Kerala and also led to a "catastrophe", for the deaths ruined the families.
 
Addressing the issue of menace caused by dogs and remedies for the victims, the court set up a three-member fact finding committee comprising a former judge of the Kerala High Court, Justice Siri Jaga, the law secretary, law department and director of health services of Kerala.
 
The committee, the court said, "shall entertain the complaints with regard to the injuries sustained by people in dog bites, the nature and gravity of the injury, availability of medicines and the treatment administered to them, the failure of treatment and its cure and in case of unfortunate death, the particulars of the deceased and the reasons behind the same".
 
The committee, the court said, "shall also identify the centres/hospitals where the anti-rabies vaccines are available free of charge".
 
The court said that on the basis of the facts recorded by the committee in each case, it would be in a position to think of granting compensation or making certain arrangements.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Param

1 year ago

where are the stray dog lovers now??? people think that feeding biscuits to strays allows them to keep their 'areas' well guarded, without any idea of these fatal consequences. i think that if you love stray dogs, you should adopt them into your house, or let them be taken away by the municipalities.

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