Middle class would be the main driver of the consumer boom in India and China and are expected to spend $64 billion on goods and services during 2010 to 2020
New Delhi: Consumers in India and neighbouring China are expected to spend nearly $10 trillion on goods and services a year by 2020, which is three times the amount spent in 2010, reports PTI quoting global research and advisory firm Boston Consulting Group (BCG).
The middle class would be the main driver of the consumer boom in the two countries, BCG said in excerpts released from its new book titled, 'The $10 Trillion Prize: Captivating the Newly Affluent in China and India'.
"By the end of the decade, consumers in the two countries (China and India) are predicted to spend nearly $10 trillion annually, three times the amount they spent in 2010," BCG said.
It further said Chinese and Indian consumers are expected to spend a combined total of $64 trillion on goods and services between 2010 and 2020, propelling a new wave of growth in the global economy.
The book finds that middle class in the two countries is expected to reach one billion by 2020, with Indian middle-class is projected to grow from 28% in 2010 to 45% in 2020.
"We are at a turning point in history where relative wealth will shift from the West to China and India, but absolute wealth, including in the West, should increase," said Michael J Silverstein, a co-author of the book and a senior partner at BCG.
"It is not a zero-sum game. But Western businesses and individuals wishing to gain their share need to act now. They must choose to be contenders, and remake their dreams for a new world in which China and India play a much larger role -- but where the West can still prosper. That's the real lesson of The $10 Trillion Prize," he added.
The book written by BCG consultants Michael J Silverstein, Abheek Singhi, Carol Liao, David Michael noted that business leaders and politicians alike need to take urgent action to build for the long term. They should not postpone their efforts because of the current troubles facing the two emerging economies.
The book suggested that in order to fully Participate in the emerging $10 trillion consumer market, the Western countries should embrace China and India.
"...Western companies must learn to "captivate" them (consumers in India and China) by understanding their distinctive buying habits in order to capitalise on this opportunity," as per the book.
Both BSE and NSE have accordingly directed all market entities to initiate submission of suspicious transaction reports or STUs directly on the new FIU gateway and ensure compliance to the SEBI directive
New Delhi: Market regulator Securities and Exchange Board of India (SEBI) has asked all the entities under its jurisdiction to submit suspicious transaction reports (STRs) electronically through a new direct online gateway to the Financial Intelligence Unit (FIU), reports PTI.
FIU-India is the country's nodal agency for receiving, processing, analysing and disseminating information relating to suspect financial transactions to various enforcement agencies and their overseas counterparts.
Market regulator SEBI has communicated to the country's two leading stock exchanges -- BSE and NSE -- that FIU-India has developed this new reporting gateway for submission of STRs and cash transaction reports (CTRs).
The bourses have accordingly directed all the market entities to initiate submission of these reports on the new FIU gateway and ensure compliance to the SEBI directive.
These reports help the enforcement agencies check manipulative practices, frauds and scams, among others.
Currently, various market and financial sector entities, including brokerage firms and banks, are allowed to submit various reports, including STRs, CTRs and Counterfeit Currency Reports (CCRs) electronically through CDs or manually in physical paper formats.
However, FIU-India has developed a new FINnet Gateway for direct uploading of these reports by the reporting entities.
FIU-India in August had told SEBI, Reserve Bank of India (RBI) and other agencies about the new system.
It had asked them to advise reporting entities to initiate submission of reports through 'test mode' of the FINnet Gateway to check the new system.
The reporting entities were asked to continue with the existing practice of submission of reports in CD form till the 'go-live' date -- provisionally set at October 1 at that time.
However, the bourses in their latest directive have asked the market entities to initiate submission of reports on the FINnet Gateway under the 'Test Mode' for now.
The information required to be furnished to FIU include all cash transactions worth over Rs10 lakh, all suspicious transactions whether or not made in cash and all series of cash transactions below Rs10 lakh but connected to each other and having taken place within a month.
Besides, all transactions over Rs10 lakh involving receipts by non-profit organisations and the transactions where counterfeit currency or forged security or documents have been used are also required to be reported to FIU.
The suspicions transactions are those that give rise to a reasonable ground of suspicion of involvement of proceeds of an offence, appear to be made in circumstances of unusual or unjustified complexity, appear to have no economic rationale or bonafide purpose and those giving rise to suspicion about financing of the terrorism-related activities.
NPAs or bad loans of public sector banks rose to 1.53% from 1.09%, however private banks reduced their NPAs to 0.46% from 0.56% during 2011-12
Mumbai: Non-performing assets (NPAs) of the banking sector rose sharply to 1.28% in 2011-12 from 0.97% a year ago due to high interest rate and slowdown in the economy, reports PTI.
The NPAs or bad loans of the public sector banks rose to 1.53% in 2011-12, up from 1.09% in the previous year, said the latest RBI report.
As per the Profile of Banks: 2011-12 released by the RBI, the NPA for India's largest public sector lender SBI along with its associates rose to 1.76% from 1.49% in 2010-11.
SBI's net NPA rose to 2.22% in the first quarter of the current fiscal from 1.61% a year earlier.
However, private sector banks managed to reduce their NPAs in 2011-12 to 0.46% from 0.56% in 2010-11, it said.
Non-performing assets of old private sector banks increased marginally to 0.58% during the year from 0.53% in the previous fiscal.
Also, foreign sector banks had their NPAs below one% at 0.61%, down from 0.67% in 2010-11, RBI said.
RBI, however, has asked the banks to improve their ability to manage stressed assets.
Banks, specifically public sector, have been reporting higher NPAs in their books because of continued slowdown in the economic activities on the back of rising interest rate regime.