Economy
Political divisions will keep Indian reform process uneven, slow: Moody's
Global credit rating agency Moody's Investors Service on Monday said political divisions in India will keep the reform process uneven while terming the recent FDI norms relaxation as credit positive.
 
In a statement, Moody's said despite some progress in improving the operating environment and easing investment procedures, reforms have stalled in two key areas - passing a unified goods and services tax and the Land Acquistion Act.
 
"We expect the political division will keep the reform process uneven and slow-moving," it said.
 
Moody's said the government's June 20 announcement of reforms to rules on foreign direct investment (FDI), expanding the range of industries under automatic approval, raising sector caps and relaxing local sourcing requirements was "credit positive because it demonstrates a continuation of reform momentum and paves the way for private investment and a boost in productivity".
 
"Additionally, higher FDI inflows will help support India's external financing needs at a time when portfolio flows have moderated," it said.
 
Net FDI inflows have increased over the past two years, reaching record highs in the fiscal year that ended 31 March 2016 of $36.0 billion from $24.2 billion on average during the preceding three fiscal years, Moody's said.
 
Currently, higher FDI inflows more than cover the current account deficit, which was 1.1% of GDP in fiscal 2016, down from 4.8% in fiscal 2013, the credit rating agency said.
 
"FDI inflows provide a stable source of financing and mitigate the downside risks to the current account from potential weakness in services exports and remittances. Additionally, higher FDI will reduce other external financing needs, a positive at a time when the portfolio flows into India and other emerging markets have been volatile," Moody's said.
 
The rating agency expects FDI inflows to remain robust given the development of industrial corridors, which will form a network of industrial bases between India's big metropolitan cities and investment and manufacturing zones under the "Make in India" and "Smart Cities" initiatives.
 
According to Moody's, stronger FDI alone will not deliver markedly higher growth and productivity in India. FDI currently accounts for less than 10 per cent of total fixed asset investment and will not substitute for muted domestic private investment.
 
Growth in total investment remained soft at 3.9% in fiscal 2016 and continued high corporate leverage, eroding corporate profits and impaired credit supply will thwart investment activity for at least several quarters, Moody's said.
 
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

P L Despande pawar

8 months ago

I agree. It is therefore necessary for the Government to take the opposite sides/states into confidence and give up -----MUKTA BHARAT approach.

I will give a taste of law to wilful defaulters: Modi
Prime Minister Narendra Modi has said he would give a taste of law to wilful loan defaulters who, having defaulted on huge corporate loans, escape to foreign countries.
 
"Kanoon kya hota hai yeh mein un logo ko dikhaoonga (I will show them what law can do)," Modi said in an interview with Times Now news channel.
 
The Prime Minister was responding to a question on big businessmen who default on loans but go scot free, taking advantage of loopholes in the law. 
 
Modi said he would bring all such people back to the country to face the law.
 
"The public is sure that if anyone can do this, it is Narendra Modi. And I would certainly do it," he said.
 
He was speaking in the context of former IPL chief Lalit Modi and liquor baron Vijay Mallya, both of whom are charged with alleged financial fraud and have fled to London.
 
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

Dahyabhai S Patel

8 months ago

A few years back Rs.2.5 crores in cash were stolen from BJP office in New Delhi and no police complaint was lodged!!! Was that white money? Mr. Gopinath Munde openly stated that no MP Seat election is fought without Rs 20 crores, naturally black money. 2014 election would have been fought with at least Rs.10000 crores for 500 seats or so by BJP. Was all that money white?

Dahyabhai S Patel

8 months ago

If Modi really followed kanoon 0r rajdharma, where he should have been?

Gopalakrishnan T V

8 months ago

Such a message from the PM can work wonders and the bad borrowers and wrong doers would come to senses and behave properly. There should be fear of laws of the country and once this is ensured, governance standards would improve and accountability would turn better. Hope the enforcement authorities also give importance to what the PM has stated. It is basically their failure which is responsible for all the wrong doings in the economy.

Gopalakrishnan T V

8 months ago

Such a message from the PM can work wonders and the bad borrowers and wrong doers would come to senses and behave properly. There should be fear of laws of the country and once this is ensured, governance standards would improve and accountability would turn better. Hope the enforcement authorities also give importance to what the PM has stated. It is basically their failure which is responsible for all the wrong doings in the economy.

deepak narang

8 months ago

Its heartening to know that our PM will make willful defaulter pay for his /her default .Why not make wilful default a crime so that law may takes its own course and not only big defaulters but all wilful defaulters are dealt with similarly.HOPE THAT THOSE WHO SHOW COURAGE TO NAME SUCH DEFAULTERS AS WILL FULL DAFAULTERS ARE NOT PENALISED IN ONE WAY OR OTHER because of vested interest

LYF Earth 2 smartphone with retina scan launched in India
Creating a ripple in the flagship smartphone market, Reliance Retail on Monday unveiled the Earth 2 -- the second LYF brand that comes with retina-based unlock and a faster fingerprint sensor.
 
Running on Qualcomm Snapdragon Octa Core Processor clocked at 1.5GHz powered by a 3GB RAM and an internal memory of 32GB, the Rs 19,999 device has non-removable 2500 mAh battery and powerful 13MP front and rear cameras.
 
Equipped with VoLTE technology for a better 4G experience, the rear camera in the device is accompanied by dual tone LED flash and a laser auto focus. 
 
The selfie camera comes with Phase Detection Auto Focus, an LED flash and a Panorama mode for wider selfies. It is backed by a 2,500 mAh non-removable battery.
 
“Through Earth 2, we present the most advanced features in smartphones that deliver a differentiated digital experience to our consumers and puts the controls of smart devices in the hands of the consumers,” said Sunil Dutt, President (Devices), Reliance Retail, in a statement.
 
The device has sensors that enable the user to assign unique fingerprints to jumpstart any three applications with just a touch on the lock screen. 
 
It not only allows the user to encrypt photos and videos stored in the gallery to protect them from hackers but also safeguard personal data by encrypting various social media applications.
 
Earth 2 features a unique voice-controlled camera that offers convenience and simplicity to the users. 
 
“The feature can inspire a paradigm shift towards voice command controls in future smartphones,” the company said.
 
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

Ramesh Poapt

8 months ago

await better version/lower price on launch of Jio...

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