04a Technical Analysis Explained - Martin J Pring - Study Guide (2014)

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Contents
......................... _ ....... .. . . ...................................................................
Manufacturing PMI rises to 52.2 in September 2018 ............................................................................................................................................. 3
BSE becomes first stock exchange to launch commodity derivative contracts .................................................................................................. 3
Core Infra sector growth slows to 4.2% in August 2018 ...................................................................................................................................... 3
IMF, World Bank and WTO launch Reinvigorating Trade and Inclusive Growth Report .............................................................................. 4
Cabinet approves National Digital Communications Policy-2018 ........................................................................................................................ 4
Navy signs contract with Hindustan Shipyard Ltd for construction of 2 Diving Support Vessels ................................................................. 5
Government launches Financial Inclusion Index ....................................................................................................................................................... 6
Finance Ministry launches web portal to grant loans to MSMEs within hour ................................................................................................... 6
RBI shortlists 5 IT firms for implementation of Centralised information and Management System ............................................................ 6
NSE, LSE inks MoU for dual listing of masala bonds .............................................................................................................................................. 7
World Bank endorses Country Partnership Framework for India’s transition to high-middle income nation ........................................... 7
Fitch raises India’s GDP forecast to 7.8% from 7.4% for FY19 .......................................................................................................................... 8
IPPB ties up with Bajaj Allianz to offer life insurance products ............................................................................................................................ 9
BSE, NSE get SEBI approval to launch commodity derivatives segment ............................................................................................................ 9
Government announces merger of Bank of Baroda, Dena Bank and Vijaya Bank ......................................................................................... 10
IIP records 6.6% growth in July 2018 ....................................................................................................................................................................... 11
Government makes demat mandatory for issue and transfer of shares ............................................................................................................. 11
Government doubles monetary limit for filing cases in DRT ............................................................................................................................... 11
ONGC discovers oil, gas reserves in Madhya Pradesh, West Bengal ................................................................................................................. 12
Temasek inks agreement to invest $400 million in NIIF Master Fund ............................................................................................................. 12
S&P BSE Private Banks Index: Asia Index Pvt Ltd launches index to measure the performance of private banks ................................... 13
Health Ministry releases draft rules for e-pharmacies to regulate online sale of medicines .......................................................................... 13
Mauritius remains top source of FDI into India in 2017-18: RBI ....................................................................................................................... 14
Vodafone Idea Ltd: Idea Cellular and Vodafone completes merger to create India’s largest telecom operator ....................................... 14
Eight core industries output record 6.6% growth in July 2018 .......................................................................................................................... 15
Sunil Mehta elected as new Chairman of Indian Bank’s Association for 2018-19 .......................................................................................... 16
Reliance Industries become first Indian company to cross Rs. 8 trillion market cap ..................................................................................... 16
India Banking Conclave 2018 held in New Delhi ................................................................................................................................................... 16
HAL becomes first PSU to transact on TReDS Platform ...................................................................................................................................... 17
Insurers to cover mental illness under medical insurance policy: IRDAI ........................................................................................................... 17
Public sector banks to come out of PCA framework by end of 2018: Government ..................................................................................... 18
Investment in P-notes hits 9-year low at Rs 80,341 crore ................................................................................................................................... 18
Banks Board Bureau hires Egon Zehnder, Hay Consultants to develop strategies ......................................................................................... 18
India to grow 7.2% in 2018-19 down from earlier projection of 7.4%: Ind-Ra Outlook ............................................................................ 19
NPCI launches UPI 2.0 with overdraft facility ........................................................................................................................................................ 20
Hackers siphon Rs 94 crore from Pune’s Cosmos Cooperative Bank via ATMs in 28 countries ............................................................. 20
Rupee for first time hit historic low of Rs. 70 mark against US dollar .............................................................................................................. 21
Axis Bank first to introduce iris authentication for Aadhaar-based transactions ............................................................................................. 22
Index of Industrial Production (IIP): Industrial output records 5-month high growth of 7% in June 2018 ............................................ 22
IFFCO forays into food processing, forms JV with Spainish firm ....................................................................................................................... 22
IMF forecasts 7.3% GDP growth for India in 2018-19 and 7.5% in 2019-20 ............................................................................................... 23
Central Board of RBI: Centre appoints Swaminathan Gurumurthy and Satish Marathe as non-official directors .................................. 23
RBI to pay Rs. 50,000 crore dividend to Government for FY18 ....................................................................................................................... 24
NITI Aayog and CII launch partnership on SDGs ................................................................................................................................................ 24
MOPAD: SBI launches unified payment terminal .................................................................................................................................................. 25
India has highest gender gap in mobile phone ownership amongst: Study ..................................................................................................... 25
Government extends deadline for imposing duty hike on 29 US products by 45 days ................................................................................ 26
FICCI launches WOW mobile app to create awareness on preventive healthcare ......................................................................................... 26
Government imposes 25% safeguard duty on import of solar cells .................................................................................................................. 26
Core industries growth quickens to 6.7% in June 2018 ...................................................................................................................................... 27
India Post Payments Bank to start operations with 650 branches in August 2018 ....................................................................................... 28
India’s first Mobile Open Exchange zone inaugurated at Noida ......................................................................................................................... 29
India ranks 11th in 2018 AT Kearney FDI Confidence Index ............................................................................................................................. 29
Invest India and Business France sign MoU to promote investment ................................................................................................................. 30
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India ranks 6th Global Optimism Index ................................................................................................................................................................... 30

Banks, FIs ink inter-creditor agreement for faster NPA resolution ................................................................................................................... 30
India to remain fastest growing major economy till 2019-20: ADB .................................................................................................................. 31
RBI to issue new 100 rupee notes in lavender colour ........................................................................................................................................... 32
Government to infuse Rs 11,336 crore capital in 5 public sector banks by September-end ........................................................................ 32
IMF cuts India’s growth forecast for 2018 to 7.3% .............................................................................................................................................. 33
IFFCO iMandi: IFFCO rolls out e-commerce platform for farmers .................................................................................................................. 34
Index of Industrial Production (IIP): Industry growth slips to 7-month low of 3.2% in May 2018 ........................................................... 35
India becomes world’s 6th largest economy in 2017: World Bank ................................................................................................................... 35
Global Innovation Index (GII): India ranks 57th ................................................................................................................................................... 36
India-South Korea Technology Exchange Centre inaugurated in New Delhi ................................................................................................. 37
Samsung inaugurates world’s largest mobile phone factory in Noida .............................................................................................................. 38
IFFCO inks pacts with two South Korean firms for agri-equipment and finance business ......................................................................... 38
China, India clinch deal to reduce tariffs on Indian medicines, anti-cancer drugs ......................................................................................... 38
NASSCOM opens Center of Excellence (CoE) for Data Science and Artificial Intelligence in Bengaluru ............................................... 39
Cabinet approves extension of Scheme of Recapitalization of Regional Rural Banks .................................................................................... 39
NITI Aayog to organise India’s First Global Mobility Summit ........................................................................................................................... 40
Vishwas Patel appointed as Chairman of Payments Council of India ................................................................................................................ 40
Index of Eight Core Industries register 3.6% growth in May 2018 ................................................................................................................... 41
Manufacturing PMI: India’s manufacturing growth jumps to six-month high in June 2018 ........................................................................ 41
Ravindra Dholakia committee: Government forms panel to upgrade norms for state, district level economic data collection ........... 42
Banks Board Bureau recommends elevation of 15 executive directors as MD PSU bank ............................................................................ 42
Global Real Estate Transparency Index: India ranks 35 ....................................................................................................................................... 43
Second tranche of Bharat-22 ETF oversubscribed, receives bids worth Rs 15,436 crore ............................................................................ 43
RBI proposes Board of Management for urban co-operative banks ................................................................................................................. 44
AIIB to invest $200 million into NIIF to boost infrastructure projects ............................................................................................................. 45
Government releases draft on cross-border insolvency resolution .................................................................................................................... 45
India notifies higher tariffs on 29 items imported from US ................................................................................................................................ 46
Women Wizards Rule Tech programme launched by NASSCOM to increase number of women in senior levels in IT industry .... 46
IRDAI constitutes Suresh Mathur committee to review norms related to Insurance Marketing Firms .................................................... 47
Liberalised Remittance Scheme: RBI alters definition of relative to check outward remittances ................................................................ 47
Banks Board Bureau recommends 22 GMs for elevation as executive directors at PSU banks ................................................................. 48
India notifies WTO of its decision to impose higher import tariffs on 30 US goods .................................................................................... 48
RBI eases investment norms for foreign portfolio investors (FPIs) in debt ..................................................................................................... 49
TCS becomes first Company to close over Rs. 7 Trillion Market Cap ............................................................................................................ 49
SEBI constitutes Expert Committee frame rules for direct listing of Indian firms abroad ............................................................................ 50
SEBI constitutes Group to review Institutional Trading Platform (ITP) framework ..................................................................................... 50
Credit Enhancement Fund: Government to launch Rs.500 crore fund ............................................................................................................. 51
FDI in India rises to US $61.96 billion in 2017-18: DIPP ..................................................................................................................................... 51
Public Credit Registry: New Information Repository to be set up by RBI ......................................................................................................... 51
RBI’s Monetary Policy Review: RBI Hikes Repo Rate to 6.25% ......................................................................................................................... 52
Rs. 8500 Crore Bailout Package for Sugar Industry Approved ......................................................................................................................... 53
India receives first shipment of cheapest LNG from Gazprom Russia .............................................................................................................. 53
Financial Literacy Week starts with theme ‘Customer Protection’ ..................................................................................................................... 54
Core industries register 4.7% growth in April 2018 ............................................................................................................................................ 54
Swadeshi Samriddhi SIM cards: Baba Ramdev’s Patanjali ties up with BSNL ................................................................................................. 55
NASSCOM establishes India’s second Digital Collaborative Opportunities Plaza in China .......................................................................... 55
TCS becomes first company to achieve 7 lakh crore market capitalisation milestone ................................................................................. 56
SIDBI, CSC SPV ink MoU to provide financial support to village level entrepreneurs ................................................................................. 56
MCX launches India’s first copper options contracts ............................................................................................................................................ 56
India is 6th wealthiest country in the world ............................................................................................................................................................ 57
India drags US to WTO over imposition of duties ................................................................................................................................................ 58
India’s economy is projected to grow 7.6% in 2018-19: UN WESP ................................................................................................................. 58
RBI tweaks norms for setting up of IFSC Banking Units ..................................................................................................................................... 59
BSE becomes first Indian stock exchange to get US SEC’s DOSM recognition ............................................................................................. 59
Bharat Inclusion Initiative: IIM Ahmedabad unveils $25 million initiative to fund start-ups ........................................................................ 60

India emerges third largest solar market in the world in 2017 .......................................................................................................................... 60
China launches first India-dedicated investment fund .......................................................................................................................................... 60
Three million new jobs by 2030 to offset employment loss due to rising heat: ILO Report ....................................................................... 61
India was world’s largest remittance-receiving country in 2017: Repot ............................................................................................................ 61
RBI puts Dena Bank under prompt corrective action ........................................................................................................................................... 62
India to grow 7.4% in 2018: IMF’s Asia & Pacific Regional Economic Outlook report ............................................................................... 62
Business Optimism Index: India slips to 6th position globally in first quarter of 2018 ................................................................................. 63
GST Council approves simplified tax return filing system ................................................................................................................................... 63
FDI Confidence Index 2018: India ranks 11th ........................................................................................................................................................ 64
Manufacturing growth improves slightly in April 2018: PMI ............................................................................................................................. 64
Core sector growth slows to 4.1% in March 2018 ............................................................................................................................................... 65
HDFC Bank launches interactive humanoid IRA 2.0 in Bengaluru ................................................................................................................... 66
RBI eases External borrowing norms to enable cheaper funds .......................................................................................................................... 67
Special 301 Report: USTR again places India Priority Watch List ...................................................................................................................... 67
NSE’s India Index Services & Products Ltd launches Nifty equity savings index ............................................................................................ 68
Fitch retains India’s sovereign rating at ‘BBB-‘ with ‘stable’ outlook ................................................................................................................ 68
Bureau of Indian Standards grants first license for Liquid Chlorine on all India basis .................................................................................. 68
India highest recipient of Remittances in 2017: World Bank .............................................................................................................................. 69
TCS becomes India’s first $100 billion IT company ............................................................................................................................................. 70
India, Finland settle Nokia tax dispute under MAP ............................................................................................................................................... 70
India pitches for independent BRICS credit rating agency ................................................................................................................................... 71
First International SME Convention 2018 to be held in New Delhi .................................................................................................................. 72
India is now world’s sixth largest economy: IMF ................................................................................................................................................... 72
UK-India Tech Alliance launched by Nasscom, TechUK ..................................................................................................................................... 72
Bharat-22 ETF follow-on offer may be worth Rs. 10,000 crore ....................................................................................................................... 73
India expected to grow at 7.4% in 2018: IMF ....................................................................................................................................................... 73
FIEO GlobalLinker: Government launches digital platform for MSME Exporters ......................................................................................... 74
India will grow at 7.3% in 2018: World Bank Report .......................................................................................................................................... 74
Generalized System of Preferences: US announces eligibility review of India ................................................................................................. 75
2nd India Mobile Congress to be held in New Delhi in October 2018 ............................................................................................................ 75
India’s forex reserves at record high of $424.864 billion: RBI .......................................................................................................................... 75
RBI tightens reporting norms for Liberalised Remittance Scheme .................................................................................................................... 76
Bhanu Pratap Sharma replaces Vinod Rai as chairman of Banks Board Bureau ............................................................................................ 76
Industrial production grows 7.1% in February 2018: CSO ................................................................................................................................. 77
India’s economy to grow 7.3% in 2018-19 and 7.6% in 2019-20: ADB Outlook ....................................................................................... 77
Index of Economic Freedom 2018: India ranks 130th ......................................................................................................................................... 78
Cabinet delegates power to Finance and Oil Ministers to award oil and gas blocks ..................................................................................... 79
CCEA approves framework for Coal Bed Methane extraction by Coal India ................................................................................................. 79
11 public sector banks placed under RBI’s PCA Framework .............................................................................................................................. 80
RBI switches back to GDP model from GVA model to measure economy .................................................................................................... 80
ICICI Bank becomes first Indian bank to go live on SWIFT’s GPI service ....................................................................................................... 81
Global Logistics Summit 2018 held in New Delhi ................................................................................................................................................. 81
RBI’s first bimonthly policy FY 2018-19: Policy rates unchanged ....................................................................................................................... 81
RBI constitutes inter-departmental group to study launching of fiat digital currency ................................................................................... 82
RBI defers adoption of Ind-AS by 1 year for banks ............................................................................................................................................... 83
India becomes second largest manufacturer of crude steel ................................................................................................................................. 84
Cabinet approves closure of Burn Standard Company Limited ......................................................................................................................... 84
SEBI eases algorithm trade rules in commodity exchanges ................................................................................................................................. 84
India’s manufacturing sector growth falls to five-month low in March 2018: PMI ....................................................................................... 85
Government inks 16 APAs in March 2018 ............................................................................................................................................................. 86
Indian Army, HDFC Bank ink MoU on defence salary package ....................................................................................................................... 86
Core sector growth up by 5.3% in February 2018 ............................................................................................................................................... 86
India ranks 37th in global startup ecosystem in 2017: Startupblink Report ................................................................................................... 87
Government levies 10% import duty on key smartphone components ............................................................................................................ 88
Atal Pension Yojana subscriber base touches over 97 lakh: PFRDA ................................................................................................................ 88
SIDBI celebrates its foundation day .......................................................................................................................................................................... 89

Multi Modal Logistic Park inaugurated at Balli, Goa ............................................................................................................................................ 89

India becomes World’s second largest mobile phone producer ......................................................................................................................... 89
E-way Bill comes into effect on Inter-state movement of goods over Rs 50,000 ......................................................................................... 90
India receives first LNG consignment from United States ................................................................................................................................... 90
India receives first US LNG shipment at Dabhol under long-term deal ........................................................................................................... 90
CCEA approves bulk export of all edible oils .......................................................................................................................................................... 91
GPI Tracker system: SWIFT broadens payment tracking capabilities ............................................................................................................... 91
MCX launches world’s first brass futures contracts .............................................................................................................................................. 92
India, Hong Kong sign double tax agreement ........................................................................................................................................................ 93
Government imposes anti-dumping duty on Ofloxacin import from China .................................................................................................... 93
Pune tops in urban governance: ASICS 2017 report ............................................................................................................................................ 93
India ranks 78th on WEF Energy Transition Index ............................................................................................................................................... 95
US challenges India’s export subsidy programmes at WTO ............................................................................................................................... 96
IIP expands at 7.5% in January 2018 ....................................................................................................................................................................... 97
Insolvency and Bankruptcy Board of India inks MoU with RBI ......................................................................................................................... 97
India attracts $209 billion FDI in 2014-2017: Government ............................................................................................................................... 98
Indian, French companies ink pacts worth 13 billion euros ................................................................................................................................ 98
India-China trade hits record $84.4 billion in 2017 ............................................................................................................................................. 99
US move to raise import duty on steel may hit India’s steel market: ISA ........................................................................................................ 99
Iraq overtakes Saudi Arabia as India’s biggest Oil Supplier ................................................................................................................................ 99
Government sets up Subhash Chandra Garg Committee to regulate fintech sector ................................................................................... 100
Services PMI contracts to 47.8 in February 2018 ............................................................................................................................................... 100
PSBs begin to rationalise 35 overseas operations .................................................................................................................................................. 101
Cabinet approves establishment of National Financial Reporting Authority .................................................................................................. 102
CBDT achieves important milestone of signing 200 APAs ............................................................................................................................... 103
Union Cabinet approves Action Plan for Champion Sectors in Services ........................................................................................................ 103
Core sector grows at 6.7% in January 2018 ........................................................................................................................................................ 104
Manufacturing growth falls to four-month low in February 2018: PMI ........................................................................................................ 104
RBI raises ETCD trading limit to $100 million ..................................................................................................................................................... 105
FIU categorises 9,491 NBFCs as high risk for PMLA non-compliance .......................................................................................................... 105
Inclusive Internet Index 2018: India ranks 47th .................................................................................................................................................. 106
RBI launches Ombudsman scheme for NBFCs .................................................................................................................................................... 106
RBI directs banks to link SWIFT to core banking solutions by April 2018 ................................................................................................... 107
RBI constitutes YH Malegam committee to monitor bad loans, rising cases of frauds, audits .................................................................. 107
PM Narendra Modi inaugurates World Information Technology Congress 2018 ....................................................................................... 108
NPCI allows Whatsapp to beta test its payments service with limited users .................................................................................................. 108
Yes Bank lists $600 million MTN bond on India INX ....................................................................................................................................... 108
Mumbai 12th richest city globally: Report ............................................................................................................................................................. 109
ONGC acquires 10 per cent stake in UAE’s Zakum oilfield .............................................................................................................................. 109
Independent debt management office must be set up: NITI Aayog ................................................................................................................. 110
India ranks 44 in US Chamber’s Intellectual Property Index .............................................................................................................................. 111
Cabinet approves Amendment to MSME Act to change classification criteria ............................................................................................... 111
CriSidEx: CRISIL, SIDBI launches India’s first MSE Sentiment Index .............................................................................................................. 112
India 6th wealthiest country: New World Wealth Report ................................................................................................................................... 112
India becomes third largest producer of crude steel ............................................................................................................................................ 113
India’s richest 1% corner 73% of wealth generation: Oxfam Survey ................................................................................................................ 113
Indian economy to grow at 7.4% in 2018: IMF ................................................................................................................................................... 113
India ranked 81st on Global Index of Talent Competitiveness .......................................................................................................................... 114
India ranked 62nd on WEF’s Inclusive Development Index 2018 .................................................................................................................... 114
ONGC to acquire Government’s entire 51.11% stake in HPCL .......................................................................................................................... 115
Mauritius was largest source of FDI in India in 2016-2017: RBI ...................................................................................................................... 116
Department of Commerce and CII ink MoU for development of Logistics sector ....................................................................................... 116
India ranks 30th on WEF’s Global Manufacturing Index .................................................................................................................................... 116
IRFC’s green bonds: India INX lists 1st debt security at IFSC ............................................................................................................................ 117
NCDEX launches India’s first agri-options trading in Guarseed ....................................................................................................................... 117
India’s first-ever FDI in fertiliser sector: Yara acquires Tata Chemicals urea plant ....................................................................................... 118

IIP growth hits 17-month high of 8.4% in November 2017 ............................................................................................................................. 118
World Bank Report projects 7.3% growth for India in 2018 ............................................................................................................................ 119
Gujarat tops in Logistics Ease Across Different States index .............................................................................................................................. 119
Forex Reserves scale record high of $409.366 billion in December 2017 .................................................................................................... 120
Core sectors’ record 6.8% growth in November 2017 ...................................................................................................................................... 120
India to become fifth largest economy in 2018: Report ...................................................................................................................................... 121
RBI brings Bank of India under Prompt Corrective Action ............................................................................................................................... 122
IMF and WB jointly release Financial System Stability Assessment report ..................................................................................................... 122
Government to bear MDR charges on transactions up to Rs.2000 ................................................................................................................ 123
India ranks 100th in Legatum Prosperity Index 2017 ......................................................................................................................................... 123
ABD lowers India’s GDP forecast to 6.7% for 2017-18 .................................................................................................................................... 124
Rich-poor divide increasing rapidly: Study ............................................................................................................................................................. 124
India’s first Electronic Manufacturing Cluster to be set up in Andhra Pradesh ............................................................................................. 125
RBI keeps repo rate unchanged at 6% .................................................................................................................................................................... 125
Core sector grows 4.7% in October 2017 ............................................................................................................................................................ 126
YONO: SBI to unveil India’s first integrated digital platform ............................................................................................................................ 126
FSDC Sub-Committee reviews financial events of country ............................................................................................................................... 127
India ranks 51 on IMD Talent Rankings ................................................................................................................................................................ 127
Logistics sector gets Infrastructure Status .............................................................................................................................................................. 128
Government launches BHARAT-22 Exchange Traded Fund ............................................................................................................................ 128
India not to pursue Islamic banking: RBI ............................................................................................................................................................... 129
India slips to 7th position in Global Business Optimism Ranking .................................................................................................................... 130
IPPB Bank to become operational in 650 districts by April 2018 .................................................................................................................... 130
Legal Entity Identifier mandatory for all large corporate borrowers: RBI ....................................................................................................... 131
SEBI to bring Initial Coin Offerings using crypto currencies under its lens .................................................................................................... 131
India’s ranks 100th in World Bank’s Doing Business Report 2018 .................................................................................................................. 132
Core sector growth hits 6-month high of 5.2% in September 2017 ............................................................................................................... 133
Government constitutes Alternative Mechanism Panel for PSBs consolidation ............................................................................................. 134
India imposes anti-dumping duty on some stainless steel imports ................................................................................................................... 135
Government announces Bank Recapitalisation Plan to infuse Rs. 2.11 lakh crore capital in PSBs ............................................................. 136
RBI sets up task force for India Public Credit Registry ....................................................................................................................................... 136
Government makes mandatory for Banks to match original IDs with photocopies .................................................................................... 137
MCX launches India’s first commodity options in Gold ..................................................................................................................................... 137
IIP rises to 9-month high of 4.3% in August 2017 ............................................................................................................................................. 138
IMF lowers India’s growth forecast to 6.7 % ....................................................................................................................................................... 138
India ranks 8th in 2017 Valuable Nation Brand List ........................................................................................................................................... 139
Recommendations of Uday Kotak Committee on Corporate Governance .................................................................................................... 139
RBI keeps repo rate unchanged at 6% ................................................................................................................................................................... 140
Core sector growth rises to 4.9% in August 2017 ............................................................................................................................................. 140
India ranks 40th in 2017 Global Competitiveness Index .................................................................................................................................... 141
RBI takes masala bonds out of corporate bond limit for FPIs ........................................................................................................................... 143
FTSE SBI Bond Index: India’s first bond index series launched by SBI .......................................................................................................... 144
RBI to regulate peer-to-peer lending firms as NBFCs: Government ............................................................................................................... 144
SEBI allows REITs, InvITs to raise funds via debt securities .............................................................................................................................. 145
GSTN reopens composition scheme window for small traders ....................................................................................................................... 145
India’s Forex reserves cross $400 billion for first time ...................................................................................................................................... 146
London tops in 2017 Global Financial Centres Index ......................................................................................................................................... 146
China bans Initial Coin Offering .............................................................................................................................................................................. 147
HDFC Bank listed in Domestic Systemically Important Banks ......................................................................................................................... 147
Eight core sectors growth slips to 2.4% in July 2017 ......................................................................................................................................... 148
ICEX launches world’s first diamond futures contracts ...................................................................................................................................... 148
Government notifies Banking Regulation (Amendment) Act, 2017 ................................................................................................................ 149
NPCI approves Spice Digitals operation under Bharat Bill Payment System ................................................................................................. 149
IIP output contracts 0.1% in June 2017 .................................................................................................................................................................. 150
MCX gets SEBI approval to launch India’s first gold options contract ........................................................................................................... 150
Government to expand Logistics Data Bank project to South India .............................................................................................................. 151

Union Government launches Bharat 22 ETF to sell stakes in 22 firms ............................................................................................................ 151
SEBI constitutes TK Viswanathan committee on fair market conduct ............................................................................................................ 152
RBI cuts repo rate by 25 bps to 6% ........................................................................................................................................................................ 153
NPCI gets RBI nod to operate Bharat Bill Payment System .............................................................................................................................. 154
IMF retains India 2017 GDP growth forecast at 7.2% ....................................................................................................................................... 154
SEBI inks pact with ESMA for information exchange on CCPs ........................................................................................................................ 155
SBI launches ‘SBI Realty’ portal for home buyers ................................................................................................................................................ 155
Reliance Industries market capitalisation hits Rs 5 lakh crore mark ................................................................................................................ 155
IBBI notifies rules for bankruptcy probe ................................................................................................................................................................ 156
India, European Union establish Investment Facilitation Mechanism ............................................................................................................... 156
India to import crude oil from US for first time ................................................................................................................................................... 157
India’s forex reserves at record-high of $386.53 billion ..................................................................................................................................... 157
RBI limits Customer liability in Online Banking .................................................................................................................................................... 157
BMI Research: India to have a GDP Growth of 6.9% in this Fiscal ............................................................................................................... 158
India to be base to economic pole of global growth: Harvard University ...................................................................................................... 158
India placed 88th in money hoarded in Swiss banks .......................................................................................................................................... 159
NMCE, ICEX to merge to create India’s third biggest commodity exchange ............................................................................................... 160
Reliance Jio launches world’s longest 100Gbps submarine cable system ....................................................................................................... 160
Eight core sectors growth slips to 3.6% in May 2017 ....................................................................................................................................... 161
Government issues Notification for roll out of GST ............................................................................................................................................ 161
India’s Largest Municipal Bond Programme Launched ...................................................................................................................................... 162
Reliance Defence inks Pact with Serbia’s Yugoimport to Manufacture Ammunition in India ................................................................... 162

Manufacturing PMI rises to 52.2 in September 2018

Oct 2 2018
According to Nikkei India Manufacturing Purchasing Managers Index (PMI), manufacturing activity
improved in September 2018 on the back of stronger gains in new orders, output, and employment. The
monthly PMI grew to 52.1 in September 2018 from 51.7 in August 2018. A reading over 50 on this survey-
based index indicates expansion, anything below it reflects contraction.
Key Facts
The significant driver of growth in activity in September 2018 was growth in new orders. This strong
growth was linked to gains in both domestic and foreign demand. The export sales has strengthened with
net gain and best recorded since the start of the year. Moreover, high product quality was noted as factor
supporting total new order book growth. However, the main concern is stronger US dollar compared to
rupee as it continued to raise relative price of goods such as steel and fuel, thereby raising input costs for
manufacturers.
Purchasing Managers’ Index (PMI)
PMI is an indicator of business activity-both in the manufacturing and services sectors. It is a survey-
based measure that asks respondents about changes in their perception of some key business variables
from month before. It is calculated separately for manufacturing and services sectors and then composite
index is constructed. The index figure aboveankit
50sainidenotes expansion
| mindhunter786@gmail.com | in business activity and anything below
50 denotes contraction. PMI is usually released at start of month, much before most of official data on
industrial output, manufacturing and GDP growth is made available. It is, therefore, considered a good
leading indicator of economic activity. Manufacturing growth measured by PMI is considered good
indicator of industrial output.
BSE becomes first stock exchange to launch commodity derivative contracts
Oct 2 2018
India’s leading bourse Bombay Stock Exchange (BSE) became first stock exchange in the country to launch
commodity derivative contracts. It has launched contracts in popular commodities like gold (1kg) and
silver (30kg). This launch comes after unified exchange regime kicked off from 1 October 2018.
The launch of commodity derivatives platform on BSE will help efficient price discovery, reduce timelines
and make it cost effective. BSE also has applied for launching of crude oil and copper commodity contracts
with capital markets regulator Securities and Exchange Board of India (SEBI). Subsequently, it is also
planning to launch more agri commodities
Background
So far, commodity contracts were only available on commodity exchanges like MCX and NCDEX, the two
specialised commodity derivatives exchanges in the country. Recently SEBI had allowed India’s top two
stock exchanges BSE and NSE to launch commodity derivatives trading under unified exchange regime
wherein stock exchanges will be allowed to offer trading in commodities derivatives.
About Bombay Stock Exchange (BSE)
BSE is the oldest stock exchange in Asia formed by eight native stock brokers association in 1875 located
at Dala street, Mumbai. It had received temporary approval from Bombay government in 1927 and
permanent approval by Indian Government on 31 Aug 1957. Today it is 10th largest stock market in the
world by market capitalization at $1.7 trillion and has more than 5,000 companies listed in it. Its iconic
building named Phiroze Jeejeebhoy Towers Dalal Street in Mumbai, Maharashtra has received image
trademark under Trade Marks Act, 1999.
Core Infra sector growth slows to 4.2% in August 2018
Oct 2 2018
As per data released by Ministry of Commerce and Industry, the growth of core eight infrastructure
sectors slowed down to 4.2% in August 2018 against 4.4% in the year-ago in same month.
Key Facts
The decline in growth was on account of decline in production of crude oil and fertilizer which has dipped
by 3.7% and 5.3%, respectively. On the other hand, other sectors like coal, natural gas and electricity
production grew by 2.4%, 1.1% and 5.4%, respectively as compared with 15.4%, 4.2% and 8.3%, respectively

in August 2017. Refinery products, steel and cement also recorded positive growth. During the April-
August period of current fiscal, these sectors have grown 5.5% as against 3% in April-August 2017 period.
Core industries
Core industries are main or key industries of the economy. In most countries, these particular industry
are backbone of all other industries. In India, there are eight core sectors comprising of coal, crude oil,
natural gas, petroleum refinery products, fertilisers, steel, cement and electricity. The eight infrastructure
sectors, constitute 40.27% of the total index of industrial production (IIP).
Revised weightage in core sectors: Petroleum Refinery production (weight: 28.04%), Electricity
generation (19.85%), Steel production (17.92%), Coal production (10.33%), Crude Oil production (8.98%),
Natural Gas production (6.88%), Cement production (5.37%), Fertilizers production (2.63%).
IMF, World Bank and WTO launch Reinvigorating Trade and Inclusive Growth Report
Oct 1 2018
International Monetary Fund (IMF), World Bank and World Trade Organization have collectively launched
report “Reinvigorating Trade and Inclusive Growth”. In this report all three international organisations
have sought liberalisation of global service sector, asserting that barriers to these services trade currently
is roughly as high as those to trade in goods about a half century ago.
Key Highlights of Report
Services comprise some two-thirds of globalankit
GDP and employment.
saini | mindhunter786@gmail.com | The limited opening of service sectors
to foreign competition impedes trade and productivity growth throughout sector and broader economy.
Countries should open up to international competition in services provided in other ways, including
through foreign direct investment (FDI) and operation of foreign affiliates and temporary movement of
workers across borders for the purpose of supplying services.
The full services trade liberalisation can raise manufacturing productivity by average of 22% across
sample of 57 countries with larger benefits for countries with stronger institutional environments.
Moreover, service sector has enormous contributor to growth and to trade including manufacturing
trade.
Improved access to services from trade reform promotes economy-wide productivity and income growth,
and given sector’s size, role of services productivity in overall economic performance is evident. There is
interplay between services reform and manufacturing performance
Services comprise significant shares of value added of all sectors in economy and this is reflected in trade
figures also. Only quarter of global trade is traded as services, on value-added basis half of the value of
global trade originates in service sectors.
The trade in services sector has potential of contributing particularly strongly to productivity growth and
economic growth overall. Prolonged slowdown in pace of trade reform is leading to widespread trade
distortions and putting at risk strength and durability of global economic recovery, despite recent
rebound in trade.
Digital economy revolution is opening new opportunities for cross-border trade and investment and this
is changing nature of trade, elevating roles of policies relating to electronic commerce, investment and
services trade.
Cabinet approves National Digital Communications Policy-2018
Sep 27 2018
Union Cabinet chaired by Prime Minister Narendra Modi has approved National Digital Communications
Policy-2018 (NDCP 2018). It also has re-designated Telecom Commission as Digital Communications
Commission. It replaces existing National Telecom Policy-2012 to cater to the modern needs of the digital
communications sector of India.
National Digital Communications Policy-2018 (NDCP 2018)
It envisions supporting India’s transition to digitally empowered economy and society by fulfilling
information and communications needs of citizens and enterprises. It strives to achieve this by
establishing ubiquitous, resilient and affordable digital communications infrastructure and services. It is
customer focused and application driven. It will help lead to new ideas and innovations after launch of

advanced technology such as 5G, IOT, M2M, etc. which shall India’s govern telecom sector
Key Objectives
Broadband for all.
Creating four million additional jobs in Digital Communications sector.
Enhancing contribution of Digital Communications sector to 8% of India’s GDP from ~ 6% in 2017.
Propelling India to Top 50 Nations in ICT Development Index of ITU from 134 in 2017.
Enhancing India’s contribution to Global Value Chains and
Ensuring Digital Sovereignty.
These objectives are to be achieved by 2022.
Features
NDCP 2018 aims to
Provide universal broadband connectivity at 50 Mbps to every citizen.
Provide 1 Gbps connectivity to all Gram Panchayats by 2020 and 10 Gbps by 2022.
Ensure internet connectivity to all uncovered areas.
Attract investments of US $100 billion in Digital Communications Sector.
Train 1 million manpower for building New Age Skill.
Expand IoT ecosystem to 5 billion connected devices.
Establish comprehensive data protection regime for digital communications that safeguards
privacy, autonomy and choice of individuals
Facilitate India’s effective participation in global digital economy;
Enforce accountability through appropriate institutional mechanisms to assure citizens of safe and
Secure digital communications infrastructure and services.
Strategy
NDCP 2018 advocates
Establish National Digital Grid by creating National Fibre Authority.
Establish Common Service Ducts and utility corridors in all new city and highway road projects.
Create collaborative institutional mechanism between Centre, States and Local Bodies for Common
Rights of Way, standardization of costs and timelines;
Remove barriers to approvals.
Facilitate development of Open Access Next Generation Networks.
Background
As the present technological world has entered into era of modern technological advancements in
Telecom Sector such as 5G, Internet of things (loT), Machine to machine (M2M) communication etc. So,
need was being felt to introduce customer focused and application driven policy for Indian Telecom
Sector. This policy main intention was to serve as main pillar of Digital India by addressing emerging
opportunities for expanding not only availability of telecom services but also telecom based services.
Accordingly, new National Digital Communications Policy – 2018 has been formulated.
Navy signs contract with Hindustan Shipyard Ltd for construction of 2 Diving Support Vessels
Sep 27 2018
Indian Navy has signed contract with Hindustan Shipyard Limited (HSL) located in Visakhapatnam for
construction of two Diving Support Vessels (DSV). These vessels will help to augment Indian Navy’s
submarine support operations on either coast.
Key Facts
The first DSV will be built over 36 month period and will be followed by second, six months later. These
vessels will be based at Vishakhapatnam and Mumbai respectively. They will be of 118 m in length and
shall have approximately 7,650 tonnes displacement capacity. These DSVs will be equipped with Deep
Submergence Rescue Vessel (DSRV), which significantly enhances its Submarine Rescue Capabilities.
These vessels are capable of effecting submarine rescue upto depths of 650 meters.
Need for DSVs
Indian Navy undertakes diving operations in Indian Ocean Region (IOR) in addition to operating
submarines to secure our waters. This necessitates extensive diving operations to facilitate various
activities such as submarine rescue, testing or salvage, under water inspection and recovery of
objects/ship aircraft lost at sea. As these activities involve diving operations with divers remaining
underwater for prolonged durations, it requires suitable platform for their launch and recovery, as well as
for carriage of related tools and equipment. Thus, induction of DSVs equipped with DSRV, will go long way
in enhancing Indian Navy’s capability and reach of submarine rescue operations in IOR.
Government launches Financial Inclusion Index
Sep 26 2018
Union Minister of Finance and Corporate Affairs Arun Jaitley launched Financial Inclusion Index in New
Delhi. It was launched after his Annual Performance Review Meeting with CEOs of Public Sector Banks
(PSBs).
Financial Inclusion Index (FII)
The annual FII will be released by Department of Financial Services (DFS), Ministry of Finance. It will be
measure of access and usage of basket of formal financial products and services that includes savings,
remittances, credit, insurance and pension products.
The index has three measurement dimensions (i) Access to financial services (ii) Usage of financial services
and (3) Quality. It will serve as single composite index that will give snap shot of level of financial inclusion
which will guide Macro Policy perspective.
Significance of index: Its various components will help to measure financial services for use of internal
policy making. It can be used directly as composite measure in development indicators. It will also enable
to fulfil G20 Financial Inclusion Indicators requirements. It will also facilitate researchers to study the
impact of financial inclusion and other macro-economic variables.
Finance Ministry launches web portal to grant loans to MSMEs within hour
Sep 26 2018
Union Finance Minister Arun Jaitley launched portal www.psbloansin59minutes.com to enable micro,
small and medium enterprises (MSMEs) to get in-principle approval of loans within hour without need for
branch visit.
The web portal will enable in principle approval for MSME loans up to Rs. 1 crore within 59 minutes from
Small Industries Development Bank of India (SIDBI) and 5 Public Sector Banks (PSBs). It also simplifies
decision making process for loan officer as final output provides summary of credit, valuation and
verification on a user-friendly dashboard in real time.
PSB loans in 59 minutes Portal
The portal is strategic initiative of SIBDI led five PSB consortium incubated under aegis of Department of
Financial Services (DFS), Ministry of Finance. It sets new benchmark in loan processing and reduces
turnaround time from 20-25 days to 59 minutes. Subsequent to this in principle approval, the loan will be
disbursed in 7-8 working days.
The portal integrates advanced fintech to ensure seamless loan approval and management in MSME
banking credit space. The loans under it are undertaken without human intervention till sanction and or
disbursement stage. It has User Friendly Platform, which omits need for physical submission of any
physical document for in-principle approval.
It also uses sophisticated algorithms to read and analyse data points of MSME borrower from various
sources such as IT returns, GST data, bank statements, MCA21 etc. in less than hour. It also captures
applicant’s basic details using smart analytics from available documents.
RBI shortlists 5 IT firms for implementation of Centralised information and Management System
Sep 24 2018
Reserve Bank of India (RBI) has shortlisted five IT firms for implementation of Centralised Information
and Management System (CIMS) for seamless data collection and validations. These five IT firms are
Infosys, Tata Consultancy Services (TCS), Capgemini Technology Services India, IBM India and Larsen & Toubro
Infotech. These five firms were selected based on expression of interest (EOI) notified by RBI in July 2018
for identification of solution provider for implementation of CIMS by overhauling its Data Warehouse
(DW).

Centralised Information and Management System (CIMS)

RBI has proposed CIMS comprising of DW and Data Lake (DL) to harness power of big data analytics.
CMIS will include seamless data collection from regulated entities by creating system-to-system interface,
system driven data validation and data review, flexible and scalable data repository and providing data
dissemination platform. It will also include centralised analytics platform to facilitate creation of RBI Data
Sciences Lab.
Background
RBI in April 2018 had announced to gainfully harness power of big data analytics by setting up data
sciences lab that will comprise experts and budding analysts, internal as well as lateral trained in
computer science, data analytics, statistics, economics, econometrics and finance. In pursuance of this
goal, it had issued EOI in July 2018 for implementation of CIMS. One of functional requirements for CIMS
enshrined in EOI was to establish system-to-system interface for automated element based data collection
from about 130 banks/entities
NSE, LSE inks MoU for dual listing of masala bonds
Sep 22 2018
National Stock Exchange of India (NSE) and London Stock Exchange (LSE) have signed Memorandum of
Understanding (MoU) to collaborate on creating dual listing route for masala bonds and foreign currency
bonds of Indian issuers. Through approval ankit ofsaini
single listing document,
| mindhunter786@gmail.com | issuer can obtain dual listing on
LSE’s International Securities Market and NSE’s GIFT City. It will serve as potential precursor of further
joint listings in future that could see foreign currency bonds in India also being able to list in London.
Masala bonds
Masala bonds are rupee-denominated bonds through which Indian entities can raise money from foreign
markets in rupee and not in foreign currency. Basically, it is debt instruments used by corporates to raise
money from foreign investors in local currency.
The issuance of rupee denominated bonds transfers risk associated with currency fluctuations to
investors and not to the issuers. This is especially during depreciation of domestic currency and when
borrowing is in foreign currency as company has to pay more while repaying its debt, or while servicing
interest on such borrowings if the rupee weakened.
From the issuer’s perspective, masala bonds provides cheaper borrowings compared to raising funds in
India besides helps in diversifying its sources of fund-raising. Besides, it also helps in internationalization
of the rupee and in expansion of Indian bond markets. Its issuance in long term can help to check slide of
rupee and also reduce current account deficit over time.
Significance of dual listing of masala bonds
It will extend access to wider base of global investors as well as domestic and regional investors registered
on NSE’s International Exchange and NSE IFSC Limited in Gujarat International Finance Tech City. It will
also enhance visibility, increase liquidity in secondary marketsand enhance efficiency of price discovery
for masala bond issuers. It will also reduce cost of raising capital for all issuers and encourage
participation of wider variety of issuers in masala bond market.
World Bank endorses Country Partnership Framework for India’s transition to high-middle income
nation
Sep 22 2018
World Bank board has approved ambitious five-year Country Partnership Framework (CPF) for India that
is in line with Government of India’s objectives of high, sustainable and inclusive growth. The framework
is aimed at supporting India’s transition to higher middle-income country by addressing some of its key
development priorities resource efficient and inclusive growth, job creation and building human capital.
The CPF was preceded by systematic country diagnostic (SCD) that offered narrative about India’s
progress.
Need
India is well-positioned to become a high middle-income country by 2030 as it has posted incredible
growth and development over last several decades. India’s fast-growing economy, global stature and
unique experience of lifting highest number of poor out of poverty in past decades has helped it to enter

economic transformation from low-middle income to high-middle income country.

CPF for India
CPF will be mainly based on three elements viz Government of India’s development priorities, World
Bank’s Systematic Country Diagnostic (SCD) for India, which presents its analysis of key challenges faced
by India and lastly, World Bank’s comparative advantage and value proposition to support India
CFP will address key themes including addressing climate change in support of India’s national
determined contributions on climate change, gender gap focusing on women’s economic empowerment
and impact of technology changes for bringing about economic transformation in India
CPF also incorporates lessons learned from last five years of implementation of Country Partnership
Strategy (CPS) FY13-17 which includes scarcity and inefficiency of resources: land, water and air,
disparities and divergence in the creation of jobs and inclusion across locations and uneven state
capability.
Significance
The framework recognizes that India has gone from low-income country status to low-middle income and
now India is entering economic transformation from low-middle income to high-middle income (country).
It is expected to bring financial support worth US $25-30 billion from World Bank’s sister agencies such
International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC)
and the Multilateral Investment Guarantee Agency (MIGA). |
ankit saini | mindhunter786@gmail.com
What is World Bank’s Country Partnership Framework (CPF)?

It is central tool of management and board for reviewing and guiding WBG’s country programs and
gauging their effectiveness. It identifies key objectives and development results through which WBG
intends to support member country in its efforts to end extreme poverty and boost shared prosperity in
sustainable manner. It takes into consideration member country’s vision of its development goals, which
are laid out in poverty focused national development strategy. The WBG and member country at first
draw upon Systematic Country Diagnostic (SCD) to develop CPF objectives together. Then CPF outlines
selective and flexible program that will help member country achieve CPF objectives.
Fitch raises India’s GDP forecast to 7.8% from 7.4% for FY19
Sep 22 2018
Fitch Ratings in its Global Economic Outlook has revised up India’s growth forecast for current fiscal year
(2018-19) to 7.8% from 7.4% projected earlier. However it has flagged tightening of financial conditions,
weak bank balance sheets and rising oil bill as headwinds to growth.
Key Highlights
Growth Projections: Fitch’s upward revision in growth forecast comes in backdrop of GDP expanding
8.2% in the April-June period, higher than its expectation of 7.7%. This robust performance was partly
attributable to a powerful base effect, with GDP growth dampened in 2Q17 (April-June) by companies de-
stocking ahead of rollout of goods and services tax (GST). It has however cut growth forecasts for FY
2019-2020 and FY 2020-2021 growth by 0.2 percentage points to 7.3%.
Inflation Forecast: It is also picking up to upper part of Reserve Bank of India’s (RBI) target band (4%, plus-
minus 2%) within forecast horizon on relatively high demand-pull pressures and rupee depreciation.
Rupee: It has been worst-performing major Asian currency so far this year. Despite RBI’s greater
tolerance for currency depreciation, interest rates have been raised to higher levels, more than
anticipated.
Fiscal policy: It should remain quite supportive of growth in run-up to elections likely to be held in early
2019. The investment to GDP ratio has stopped trending down, helped by ramped-up public infrastructure
outlays, in particular by state-owned enterprises (SOEs).
Fitch Ratings
It is one of Big Three credit rating agencies in the world, the other two being Moody’s and Standard &
Poor’s. Fitch Ratings is smallest of the “big three”. It is headquartered in New York (US) and completely
owned by Hearst Corporation.
Credit rating agency is company that assigns credit ratings, which rate debtor’s ability to pay back debt by making

timely interest payments and likelihood of default.
IPPB ties up with Bajaj Allianz to offer life insurance products

Sep 21 2018
State-owned India Post Payments Bank (IPPB) and private life insurer Bajaj Allianz Life Insurance Co Ltd
(BALIC) have entered into strategic partnership to provide life insurance solutions. It will allow IPPB
customers across segments to access wide array of life insurance products and services especially at
doorstep. BALIC is the first life insurer to partner with IPPB. This partnership will allow BALIC to leverage
IPPB’s last mile reach for building awareness about life insurance.
India Post Payments Bank (IPPB)
IPPB has been set up as Public Limited Company under Department of Posts (DoP) with 100% Government
of India (GOI) equity. It was launched on September 1, 2018 in New Delhi. It has begun operations with 650
branches and 3,250 access points across the country. It leverages DoP’s network, resources and reach to
make low-cost, quality and simple financial services easily accessible to customers in the country.
It offers basic banking services acceptance of demand deposits, remittance services, internet banking and
other specified services. It does not lending services. It can accept deposits up to Rs. 1 lakh per account from
individuals and small businesses. It can issue ATM/debit cards but not credit cards. It can also issue other
prepaid payment instruments. It can alsoankit distribute non-risk
saini | mindhunter786@gmail.com | sharing simple financial products like
mutual funds and insurance products.
BSE, NSE get SEBI approval to launch commodity derivatives segment
Sep 20 2018
The capital markets regulator Securities and Exchange Board of India (SEBI) has allowed India’s top two
stock exchanges BSE Ltd and National Stock Exchange of India Ltd (NSE) to launch commodity derivatives
trading from 1 October, 2018. This approval is part of SEBI’s December 2017 announcement of having
unified exchange regime wherein stock exchanges will be allowed to offer trading in commodities
derivatives. By unified exchange regime stock exchanges need not to set up different entities to offer
commodity trading.
Key Facts
With this approval, BSE will begin trading in commodity derivatives with non-agriculture commodities
like metals initially, followed by agri-commodities subsequently. NSE will launch its commodity
derivatives segment trading in non-agriculture commodities in initial phase, followed by agriculture
commodities, subject to SEBI approval.
Significance
Universal exchanges will help in achieving integration of trading in commodity derivatives market with
other segments of securities market at exchange level. It will help in providing efficient price discovery,
reduction in timelines, cost effective, user-friendly, robust risk management system and wider market
penetration. It will help in creating deeper markets with lower spreads and exchange by enhancing
competition across all categories of trading. It will offer greater convenience as traders will be able to
trade all asset categories from single account. It may also lead to consolidation of cross-holding norms as
mergers between exchanges of different categories appear attractive. In longterm, Indian exchanges will
find it easier to compete with their global counterparts and they are present in multiple segments.
Terms
Equity exchange: It is market in which shares are issued and traded, mostly through exchanges. It is also
known as stock market. It gives companies access to capital and investors slice of ownership in company
with potential to realize gains based on its future performance. Stock or securities traded in the equity
market can be either public stocks, which are those listed on stock exchange or privately traded stocks. In
India, NSE and the BSE offer equity and equity derivatives.
Commodity exchange: It is market is mostly related to food, metals or energy derivatives that are
important part of everyday life. Types of commodities in this market includes metals like gold, silver, etc.,
energy like crude oil, natural gas etc. This trading traditionally move in opposition to stocks, so they are
used as significant way to diversify portfolio beyond traditional securities. In India, MCX and NCDEX

specialise in commodity derivatives.

Universal exchanges: In this market, any exchanges i.e. can capital market or commodity exchange can
offer each products in equity, commodity derivatives, and debt and currency segments. By this stock
exchanges need not to set up different entities to offer commodity trading and vice versa.
Government announces merger of Bank of Baroda, Dena Bank and Vijaya Bank
Sep 18 2018
Union Finance Ministry announced proposal for amalgamation of three public sector banks- Bank of
Baroda, Dena Bank and Vijaya Bank. The combined entity after consolidation will create India’s third
largest bank. Post this merger, number of PSU banks will come down to 19 from 21, accounting for more
than two-thirds of banking assets in the country.
Key Facts
This was second major banking sector consolidation in recent year after merger of five associate banks of
State Bank of India with itself. The amalgamation will be through share swap which will be part of scheme
of merger. The proposal will now need approval of boards of these individual banks. This amalgamation
will particularly help Dena Bank, the weakest of the three which is currently under Reserve Bank of India’s
Prompt Corrective Action (PCA) framework and has been barred from extending fresh loans.
Significance
The merger of three PSBs will help create strong
ankit saini | globally competitive
mindhunter786@gmail.com | bank with economies of scale. It will
enable realisation of synergies for networks, low-cost deposits and subsidiaries of these three PSBs. The
merger will result in substantial rise in customer base, operational efficiency, market reach and wider
bouquet of products and services. The merged entity will have better financial strength and will place all
three banks on Finacle Core Banking Solution (CBS), a platform that helps banks enhance agility and
efficiency of operations, while significantly improving customer experience across channels. The merger
of these three banks will have no adverse impact on employees and customers of individual banks.
Key Features of merged entity

Net non-performing assets (NPA) ratio: The amalgamated entity will have net NPA ratio of 5.71% as
against 11.04% of Dena Bank, 5.40% for Bank of Baroda and 4.10% for Vijaya Bank.
Provision coverage of amalgamated entity will have 67.5%, higher than PSB average of 63.7% and it
will have a total of 9,489 branches across the country.
Cost to income ratio of amalgamated entity is estimated at 48.94%, better than PSB average of
53.92%.
Capital Adequacy Ratio of amalgamated entity is estimated at 12.25%, higher than regulatory
requirement.
Background
The merger of these three state-owned banks was part of government’s agenda of consolidation of PSBs. It
was proposed by Alternative Mechanism comprising Chairperson Arun Jaitley. Under it, government did
not want merger of weak banks and has therefore suggested idea of amalgamating one weak bank and
two strong banks, in order to create entity which is able to increase banking operations. This also
indicates approach that government may deploy in future consolidation.
IIP records 6.6% growth in July 2018
Sep 13 2018
According to data released by Central Statistics Office (CSO), factory output measured in terms of the
Index of Industrial Production grew at 6.6% in July 2018. This growth was on the back of good
performance by manufacturing sector and higher offtake of capital goods and consumer durables. Besides,
IIP growth for June 2018 was also revised downwards to 6.8% from the provisional estimate of 7% released
in August 2018. The IIP growth in April-July 2018 period was 5.4% compared to 1.7% year ago.
July 2018 IIP
Manufacturing sector (Weightage: 77.6): It recorded 7% growth.
Electricity sector (Weightage: 7.9%): It recorded 6.7% growth.
Mining (Weightage: 14.3%): It recorded 3.7% growth.
Consumer durables sector: It recorded impressive growth of 14.4% as against dip of 2.4% in July 2017.
Capital goods production: It grew by 3% as against decline of 1.1% in July 2017.
Index of Industrial Production (IIP)
IIP is composite indicator that measures ankit short-term changes in volume of production of basket of
saini | mindhunter786@gmail.com |
industrial products during given period with respect to chosen base period. It is compiled and published
monthly by Central Statistical Organization (CSO), Ministry of Statistics and Programme
Implementation (MoSPI).
Base year: The CSO had revised the base year of the IIP from 2004-05 to 2011-12 in May 2017 to capture
structural changes in economy and improves quality and representativeness of indices. The revised IIP
(2011-12) reflects changes in industrial sector and also aligns it with base year of other macroeconomic
indicators like Wholesale Price Index (WPI) and Gross Domestic Product (GDP).
Sector wise items and weightages: IIP covers 407 item groups. Sector wise, the items included falls into 3
categories viz. Manufacturing (405 items), Mining (1 items) & Electricity (1 item). The weights of the three
sectors are 77.63%, 14.37%, 7.9% respectively. The combined weightage of eight core Industries in IIP is 40.27%.
Government makes demat mandatory for issue and transfer of shares
Sep 12 2018
Union Ministry of Corporate Affairs (MCA) has mandatory for unlisted public companies to issue new
shares or transfer of all shares in dematerialised or demat (i.e. in electronic form) form beginning October
2, 2018. With this, major benefits of dematerialisation of securities will now be available to unlisted Public
companies.
Key Facts
The Companies Act 2013, provides for government to mandate that as in case of listed public companies
other classes of public companies should also issue securities only in dematerialised form. MCA’s latest
step is seen as measure for further enhancing transparency, investor protection and governance in the
corporate sector. It also comes at a time when the ministry is clamping down on shell companies that are
suspected of being conduits for illicit fund flows
Major benefits of dematerialisation of securities
It will help in elimination of risks associated with physical certificates such as loss, theft, mutilation, fraud
etc. It will help in improving corporate governance system by increasing transparency and preventing
mal-practices such as benami shareholding, back dated issuance of shares, etc. It will also ease in transfer,
pledge etc. of securities and provide exemption from payment of stamp duty on transfer.
Unlisted Companies
According to Companies Act 2013, a public company is formed by seven persons or more, while for private
company this number is two or more. If shares of such companies are not traded on stock exchange, they
are called unlisted companies.
Government doubles monetary limit for filing cases in DRT

Sep 8 2018
Union Finance Ministry has doubled pecuniary limit to Rs. 20 lakh from Rs.10 lakh for filing loan recovery
application in Debt Recovery Tribunals (DRT) by banks and financial institutions. It means that bank or
financial institution or consortium of banks or financial institutions cannot approach DRTs if pecuniary
limit amount due is less than Rs 20 lakh. This move is aimed at helping reduce pendency of cases in DRTs.
Background
Banks and financial institutions’ recovery of dues (loans) takes place on ongoing basis through legal
mechanisms, which inter-alia includes Securitization and Reconstruction of Financial Assets and
Enforcement of Security Interest (SARFAESI) Act, 2002; Recovery of Debts to Banks and Financial
Institution (DRT) Act, 1993 and Lok Adalats. The borrowers of such loans continue to be liable for
repayment even when the loans have been removed from the balance sheet of the bank(s) concerned. To
make recovery tribunals more effective and to facilitate fast disposal of debt recovery cases, government
has made several amendments in different laws, including SARFAESI Act.
Debt Recovery Tribunals (DRT)
DRTs were first set up under Recovery of Debts Due to Banks and Financial Institutions Act 1993, also
known as DRT Act. Under it, DRTs were established to facilitate debt recovery involving banks and other
financial institutions with their customers. Under existing norms, DRT is supposed to dispose of matter
referred to it within 180 days of receipt of application and appeal can be filed against DRT order with Debt
Recovery Appellate Tribunals (DRATs). There are 39 DRTs and 5 DRATs functioning at various parts of the
country.
ONGC discovers oil, gas reserves in Madhya Pradesh, West Bengal
Sep 8 2018
State-owned Oil and Natural Gas Corp (ONGC) has made oil and gas discoveries in Madhya Pradesh and
West Bengal that may potentially open up two new sedimentary basins in country. They are category-III
basins, having hydrocarbon and are considered geologically prospective for exploration.
Key Facts
Madhya Pradesh: The gas deposits were discovered in block in Vindhyan basin. This find is at 3,000-plus
meters deep and is being now tested. Four wells drilled after discovery and now hydro-frack will be
undertaken to test commerciality of this field.
West Bengal: Oil and gas was discovered in well in Ashok Nagar of 24 Parganas district. Around one lakh
cubic meters per day of gas has flowed from one object that was tested.
Background
India has 26 sedimentary basins, of which only seven category-I basins have commercial production of oil
and gas. Except for Assam shelf, ONGC opened up all the other six basins, including Cambay, Mumbai
Offshore, Rajasthan, Krishna Godavari, Cauvery, and Assam-Arakan Fold Belt for commercial production.
The seventh basin was opened way back in 1985. It is in the process of adding eighth basin by putting
Kutch offshore discovery (it holds about one trillion cubic feet of gas reserves) to production.
26 sedimentary basins (category wise)
Category-I basins: Cambay, Mumbai Offshore, Rajasthan, Krishna Godavari, Cauvery, Assam Shelf and
Assam-Arakan Fold Belt. They have been established for commercial production.
Category-II basins: Kutch, Mahanadi-NEC (North East Coast), Andaman-Nicobar, Kerala-Konkan-
Lakshadweep. They are known for accumulation of hydrocarbons but no commercial production has been
achieved so far.
Category-III basins: Himalayan Foreland Basin, Ganga Basin, Vindhyan basin, Saurashtra Basin, Kerela
Konkan Basin, Bengal Basin. They having hydrocarbon and are considered geologically prospective.
Category-IV basins: Karewa, Spiti-Zanskar, Satpura–South Rewa–Damodar, Chhattisgarh, Narmada,
Deccan Syneclise, Bhima-Kaladgi, Bastar, Pranhita Godavari and Cuddapah. They have uncertain potential
which may be prospective by analogy with similar basins in the world.
Temasek inks agreement to invest $400 million in NIIF Master Fund
Sep 8 2018

Singapore-based global investment firm Temasek has signed agreement to invest up to Rs 2,750 crore
($400 million) in National Investment and Infrastructure Fund’s (NIIF) Master Fund. With this investment,
NIIF Master Fund is now one of largest infrastructure funds in India which invests in core infrastructure
sectors in India with focus on energy, transportation and urban infrastructure.
Key Facts
As part of this agreement, Temasek will join Government of India (GoI), Abu Dhabi Investment Authority
(ADIA), HDFC Group, ICICI Bank, Kotak Mahindra Life Insurance and Axis Bank as investor in NIIF’s
Master Fund and as shareholder in National Investment and Infrastructure Limited (NIIFTL), investment
management company of NIIF. With this agreement, NIIF now has agreements totalling almost Rs. 10,000
crore, with ADIA having committed to invest up to $1 billion (about Rs 6,500 crore) and domestic financial
institutions, about Rs. 500 crore.
National Investment and Infrastructure Fund (NIIF)
NIIF was set up in December 2015 to catalyse funding into the country’s infrastructure sector by serving
as quasi sovereign wealth fund (SWF). It has been set up as fund of funds structure with aim to generate
risk adjusted returns for its investors alongside promoting infrastructure development. It aims to
maximize economic growth of country mainly through infrastructure development in commercially viable
projects (both greenfield and brownfield) and also in stalled projects.
NIIF has been registered with Securitiesankitand Exchange Board
saini | mindhunter786@gmail.com | of India as a Category II Alternate
Investment Fund. It has targeted corpus of Rs 40,000 crore to be raised over the years — 49% of it will be
funded by government and remaining 51% will be raised from domestic and global investors, including
international pension funds, sovereign wealth funds, multilateral/bilateral investors.
NIIF’s Governing Council is chaired by Finance Minister and act as an advisory council. Moreover, two
companies viz. NIIFTL, a trustee of fund and NIIFL, an investment management company of NIIF were
incorporated in 2015. NIIF is also planning third fund to be called strategic investment fund, which could
be of similar size to its master fund. This third fund will target investments in greenfield projects and will
be long-tenure fund of 15 years.
S&P BSE Private Banks Index: Asia Index Pvt Ltd launches index to measure the performance of
private banks
Sep 5 2018
Asia Index Pvt Ltd has launched S&P BSE Private Banks Index to measure the performance of private
banks. Asia Index Pvt Ltd is a joint venture between S&P Dow Jones Indices and BSE Ltd
S&P BSE Private Banks Index
This index is designed to provide market participants with transparent and rules-based benchmark that
measures performance of private banks listed in India. It draws from constituents of S&P BSE Finance
Index. Only common stocks classified as banks by BSE Sector Classification model and that are not
classified under BSE scrip category as Public Sector Undertaking (PSU) are eligible for this index. The
index will be calculated in Indian Rupees and US Dollar in real-time by BSE, Asia’s oldest exchange.
Health Ministry releases draft rules for e-pharmacies to regulate online sale of medicines
Sep 3 2018
Union Health Ministry has released draft rules on sale of drugs by e-pharmacies to regulate online sale of
medicines across India. These rules also have been proposed to ensure accessibility and availability of
genuine drugs to the people across India from authentic online portals.
Key features of rules
It is mandatory for online pharmacies to register under Central Drugs Standard Control Organisation
(CDSCO) and obtain trade licence applicable across India from any state government. E-pharmacies only
need to take one licence in any state. They can sell drugs all over the country even if they have one licence.
E-pharmacies need to apply for grant of registration to Central Licensing Authority through online portal
of Central Government. The registration issued to any person for e-pharmacy will remain valid for three
years period from date of its issuance and renewal of registration will have to be done in case it wants to
continue.
Registration of e-pharmacy can be suspended or cancelled if it contravenes any provision of the Drugs and

Cosmetics Act, 1940. E-pharmacy registration holder will have to comply with provisions of Information
Technology Act, 2000. It is mandatory for e-pharmacy to maintain keep details of patient confidential and
not disclose it to any person other than Central Government or State Government concerned.
The supply of any drug shall be made against cash or credit memo generated through e-pharmacy portal
and such memos shall be maintained by e-pharmacy registration holder as record. Sale of tranquillisers,
psychotropic drugs, narcotics and habit forming drugs will be prohibited through these portals.
The premises from where e-pharmacy business is conducted will be inspected, every two years, by team of
officers authorised by Central Licensing Authority, with or without experts in relevant field or officers
authorised by the concerned State Licensing Authority.
It will be binding on e-pharmacies to deliver drugs in specific time that will be told to patient during time
of purchase while the e-portals are mandatorily required to have 24/7 call centres. The e-pharmacy cannot
advertise any drug on radio or television or internet or print or any other media for any purpose.
Mauritius remains top source of FDI into India in 2017-18: RBI
Sep 3 2018
According to Reserve Bank of India (RBI) data, Mauritius was top source of foreign direct investment (FDI)
into India in 2017-18 followed by Singapore. The total FDI in FY 18 stood at $37.36 billion in financial year
which was marginal rise over $36.31 billion recorded in the previous fiscal 2016-17.
Key Facts
FDI from Mauritius was $13.41 billion in 2017-18 as against $13.38 billion in previous year. FDI inflows from
Singapore rose to $9.27 billion from $6.52 billion. FDI from Netherlands has declined marginally to $2.67
billion as against $3.23 billion.
FDI into manufacturing sector had witnessed substantial decline to $7.06 billion, as against $11.97 billion a
year earlier. FDI into communication services had rose to $8.8 billion in 2017-18 from $5.8 billion. The
inflows into retail and wholesale trade increased to $4.47 billion as against $2.77 billion.
FDI in financial services too saw rise to $4.07 billion from $3.73 billion in the previous year. These sectors
accounted for more than 50% of total FDI of $37.36 billion in 2017-18 reflects global interest in new areas,
including online marketplaces and financial technologies.
Vodafone Idea Ltd: Idea Cellular and Vodafone completes merger to create India’s largest telecom
operator
Sep 1 2018
The merger of Idea Cellular and Vodafone India has been completed after it was cleared by National
Company Law Tribunal (NCLT). This merger has created India’s biggest telecom service provider. The
merged entity is named Vodafone Idea Ltd and dislodges current market leader Bharti Airtel from top
position, by its sheer size and scale. New board has been constituted for merged entity with 12 directors
(including six independent directors) and Kumar Mangalam Birla as its Chairman.
Key Facts
The combined entity will have nearly 443 million customers surpassing Bharti Airtel’s 344 million users.
Moreover, it will have all-India revenue market share of 32.2% and take numero uno slot in nine telecom
circles. It will have broadband network of 3.4 lakh sites and distribution network with 17 lakh retail
outlets.
The combination will have wide spectrum portfolio of about 1,850 MHz, over 2 lakh mobile sites and about
2.35 lakh kms of fibre network. This will allow merged entity to offer superior voice and broadband
connectivity across the country, covering 92% of the population and reaching nearly 5,00,000 towns and
villages.

Eight core industries output record 6.6% growth in July 2018

Sep 1 2018
According to Index of Eight Core Industries released by Ministry of Commerce and Industry, eight core
sectors have grown by 6.6% in July 2018 pushed by healthy output in coal, refinery products, cement and
fertilizer sectors. It had registered growth of 2.9% in July 2017.
Performance of Eight Core Industries in July 2018
The output of coal, refinery products, fertiliser and cement grew by 9.7%, 12.3%, 1.3% and 10.8%
respectively in July 2018. However, growth rate in production of crude oil and natural gas recorded
negative growth in July, 2018. On the other hand, steel sector expansion came down to 6%, as against 9.4%
in July 2017. During April-July 2018 period of current fiscal, these eight sectors had grown by 5.8% as
against 2.6% in the year-ago period. In June 2018, these core sectors had showed growth of 7.6%, highest
core sector growth since March 2017.
Eight Core Industries

Index of Eight Core Industries is monthly production index, which is also considered as lead indicator of
the monthly industrial performance. It contains index, production and growth of Eight Core Industries
viz. electricity, steel, refinery products, crude oil, coal, cement, natural gas and fertilizers. It is compiled
based on monthly production information received from source agencies. These core industries are main
or key industries of the economy and serve as backbone of all other industries. These eight core sectors
constitute 40.27% of total index of industrial production (IIP).
Weightage: Petroleum Refinery production (weight: 28.04%), Electricity generation (19.85%), Steel
production (17.92%), Coal production (10.33%), Crude Oil production (8.98%), Natural Gas production
(6.88%), Cement production (5.37%), Fertilizers production (2.63%).

Sunil Mehta elected as new Chairman of Indian Bank’s Association for 2018-19
Sep 1 2018
Punjab National Bank (PNB’s) managing director and chief executive, Sunil Mehta was elected as new
chairman of Indian Banks Association (IBA) for year 2018-19. Bank of India’s managing director and chief
executive Dina Bandhu Mohapatra was elected as the deputy chairman. Madhav Nair, country head and
chief executive, Mashreqbank PSC, was elected as Honorary Secretary of IBA for 2018-19, State Bank of
India’s chairman, Rajnish Kumar, and Federal Bank’s managing director, Shyam Srinivasan, will continue
as deputy chairmen of IBA.
Indian Bank’s Association (IBA)
It is an association of Indian banks and financial institutions. It was established on September 26, 1946. It
is headquartered in Mumbai. Its objective is to strengthen, develop and foster coordination among Indian
banking stakeholders. It also facilitates various member banks. Managing Committee of IBA consists of
chairman, three deputy chairmen, one honorary secretary as well as 26 members. The members of IBA
comprise of public sector banks, private sector banks, foreign banks having offices in India, co-operative
banks, regional rural banks and all India financial institution. Currently it has 237 members from banking
sector operating in India.
Reliance Industries become first Indian company to cross Rs. 8 trillion market cap
Aug 24 2018 ankit saini | mindhunter786@gmail.com |
Mukesh Ambani-led oil-to-telecom behemoth Reliance Industries Ltd (RIL) became first Indian company
to cross Rs 8 lakh crore ($114 billion) market capitalisation. This record m-cap of RIL also bumped up
Mukesh Ambani’s (India’s richest man) wealth to over $48 billion (according to Bloomberg Billionaires
Index). M-cap is value of company that is traded on stock market, calculated by multiplying total number
of shares by present share price.
Key Facts
RIL achieved Rs 8 lakh crore m-cap feat, after its shares rose by 1.86% to close at a record high of Rs
1,269.70 on Bombay Stock Exchange (BSE) in intra-day trade, elevating its market cap to Rs 8.05 lakh
crore. So far this year, RIL shares surged over 38 per cent.
RIL added the latest Rs 1 trillion in market cap in just 23 trading sessions. It had first crossed Rs 7-trillion
market cap in July 2018 (for second time after it had achieved $100 billion m-cap and for first time in
2007). It took 181 trading days to move from Rs 6 trillion to Rs 7 trillion m-cap. Currently, RIL’s market
value accounts for 5% of India’s total market cap.
The market valuation of RIL is considerably higher than IT giant Tata Consultancy Services (TCS’) Rs
7,77,870 crore m-cap. TCS was first Indian IT company to reach Rs. 7 lakh crore ($100 billion club) market
capitalisation (m-cap) milestone in May 2018 and second company after to achieve milestone after RIL.
Reliance Industries Limited (RIL)
It is an Indian conglomerate company founded in 1977 by Dhirubhai Ambani. It is headquartered in
Mumbai, Maharashtra, India. At present, Mukesh Ambani is its Chairman and MD of RIL and owns about
47% stake in it.
RIL is engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications. It is
second largest company in India as measured by revenue after government-controlled Indian Oil
Corporation. It is ranked 203rd on the Fortune Global 500 list of the world’s biggest corporations as of
2017. It is ranked 8th among the Top 250 Global Energy Companies by Platts as of 2016.
India Banking Conclave 2018 held in New Delhi
Aug 23 2018
India Banking Conclave (IBC) 2018 was held in New Delhi from 23-24, 2018. It was organised by Centre for
Economic Policy Research (CEPR) along with its knowledge partner and government Think Tank, NITI
Aayog. The conclave was aimed at making India’s banking sector more adaptable to face multiple future
challenges in the coming years.
India Banking Conclave (IBC) 2018
IBC 2018 focused engaging corporates, law and policy makers of country, academicians and professionals
on common platform to make all stakeholders share their views on all impending issues including bad
debts and non-performing assets (NPAs) that have been accumulated in unbiased manner.
IBC 2018 aimed to serve as effective platform for varied stakeholders connected to India’s banking and
financial sectors. It also seek to act as bridge between government and key stakeholders and synergize to
re-invigorate India’s banking and financial sectors as many believe that a healthy, effectively running
banking system can only revive India’s investment cycle and support the country’s growth story.
Centre for Economic Policy Research (CEPR)
CEPR is network of over 1100 researchers who are based mainly in universities throughout Europe and
collaborate in research and its dissemination. It was founded in 1983 and is based in London, United
Kingdom. It aims to enhance quality of economic policy-making within Europe and beyond by fostering
high quality, policy-relevant economic research and disseminating it to decision-makers in public and
private sectors. It is funded by a registered, European charity founded in 1983 by Richard Portes, FBA,
CBE.
HAL becomes first PSU to transact on TReDS Platform
Aug 22 2018
State-owned aerospace and defence manufacturer Hindustan Aeronautics (HAL) became the first public
sector enterprise (PSU) to make transaction on RXIL TReDS platform. It executed its first digitised invoice
discounting transaction on RXIL TReDS platform by accepting digital invoice uploaded by Nasik-based
MSME (micro category) vendor Narendra Udyog. This transaction was financed by Bank of Baroda.
RXIL- TReDS platform
TReDS is online electronic institutional mechanism for facilitating the financing of trade receivables of
micro, small and medium enterprises (MSME) through multiple financiers. RXIL is India’s first TReDS
platform operating since January 2017. It promoted by National Stock Exchange (NSE), Small Industries
Development Bank of India (SIDBI), State Bank of India (SBI), ICICI Bank and Yes Bank. It enables MSMEs
to gain control of their receivables with enhanced visibility and timeliness. In October 2017, Union
Government had mandated all major PSUs to join TReDS platform to facilitate payments to MSME (micro,
small and medium enterprises) vendors.
Insurers to cover mental illness under medical insurance policy: IRDAI
Aug 19 2018
Insurance Regulatory and Development Authority (IRDAI) has asked insurers to cover mental illness
under medical insurance policy from immediate effect, treating it at par with physical illness. At present,
insurers exclude mental illness from ambit of medical insurance policies.
Key Facts
IRDAI’s directive follows Mental Healthcare Act, 2017 enacted by Parliament and came into force from
May 2018. The section 21(4) of said Act mandates every insurer to make provision for medical insurance
for treatment of mental illness on same basis as available for treatment of physical illness. According to
provisions of the Act, mental healthcare includes analysis and diagnosis of person’s mental condition and
treatment as well as care and rehabilitation of such person for his mental illness or suspected mental
illness.
Mental illness
As per Ministry of Law and Justice, mental illness is defined as substantial disorder of thinking, mood, perception,
orientation or memory that grossly impairs behaviour, judgment, capacity to recognise reality or ability to meet
ordinary demands of life. It also includes mental conditions associated with abuse of alcohol and drugs, but does not
include mental retardation which is condition of arrested or incomplete development of mind of person, specially
characterised by subnormality of intelligence.
Significance
Bringing mental illness under medical insurance policy, will ensure life of dignity to those who have
mental health issues. It will help to create awareness, acceptance and inclusion of mental illness as any
other ailment. Moreover, it will bring mental health disorders at par with physical illnesses, which will
normalize diagnoses, reduce associated myths and stigma related mental health disorders. It will be in
lines with global practice, as globally, companies cover mental illness after initial waiting period of two-

three years.
Public sector banks to come out of PCA framework by end of 2018: Government
Aug 18 2018
Union Government is expecting that public sector banks (PSBs) placed under RBI’s Prompt Corrective
Action (PCA) framework will come out of it by the end of this year. As many as 11 out of 21 state-owned
banks are currently under PCA framework.
Reasons
Operational performance of PSBs has improved in April-June 2018 quarter, with steep reduction in net
losses, increase in recoveries and significant improvement in provision coverage ratio. Besides,
government is also providing PSUs adequate capital when required. Some of capital already has been
given, as recoveries is taking place and there is possibility that some banks will not need it. As of now,
there no bank is breaching regulatory norms prescribed by RBI.
Prompt corrective action (PCA) framework
PCA framework is supervisory tool of RBI, which involves monitoring of certain performance indicators of
banks to check their financial health as early warning exercise and to ensure that banks don’t go bust. Its
objective is to facilitate banks to take corrective measures including those prescribed by RBI, in timely
manner to restore their financial health. It also provides opportunity to RBI to pay focussed attention on
such banks by engaging with management more ankit saini |closely in those
mindhunter786@gmail.com | areas.
PCA framework is invoked on banks when they breach any of three key regulatory trigger points (or
thresholds). They are capital to risk weighted assets ratio, net non-performing assets (NPA) and Return on
Assets (RoA). Depending on risk thresholds set in PCA framework, banks are put in two type of
restrictions, mandatory and discretionary depending upon their placement in PCA framework levels. The
mandatory restrictions are on dividend, branch expansion, directors compensation while discretionary
restrictions include curbs on lending and deposit.
Investment in P-notes hits 9-year low at Rs 80,341 crore
Aug 18 2018
Investments through participatory notes (P-notes) into Indian capital markets- equity, debt, and
derivatives have plunged to over nine-year low of Rs 80,341 crore till July 2018-end. This is the lowest level
since April 2009 when the cumulative value of such investments stood at Rs 72,314 crore.
Background
The decline comes amid stringent norms put in place by market watchdog Securitas Exchange Board of
India (SEBI) to check misuse of these instruments. In July 2017, Sebi had notified stricter norms
stipulating fee of US $1,000 on each instrument to check any misuse for channelising black money. It had
also prohibited FPIs from issuing such notes where underlying asset is derivative, except those which are
used for hedging purposes. Earlier in April 2017, SEBI also had barred resident Indians, NRIs and entities
owned by them from making investment through P-notes.
Participatory Notes (P-notes)
P-notes are offshore/overseas derivative instruments (ODIs) issued by registered foreign portfolio
investors (FPIs) to overseas investors who wish to be part of the Indian stock market without registering
themselves directly. They, however, need to go through due diligence process. P-Notes are not used within
the country but are mainly used outside India for making investments in shares listed in the Indian stock
market. SEBI had permitted FIIS to participate and register in the Indian stock market in 1992. Earlier,
investing through P-Notes is very simple and is very popular amongst FPIs, FIIs.
Banks Board Bureau hires Egon Zehnder, Hay Consultants to develop strategies
Aug 18 2018
Banks Board Bureau (BBB) has appointed two firms Egon Zehnder International Pvt. Ltd and Hay
Consultants Pvt. Ltd to assist in developing strategies for top bank management.
Key Facts
Egon Zehnder was appointed as knowledge partner to design, implement and institutionalise a flagship
leadership development strategy for state-run banks in India. Hay Consultants was appointed to assess
leadership competencies and potential capabilities of people appearing for post of whole time directors in

state-run banks. Their expertise will help to bring in experienced professionals as whole-time directors is
part of focus to ensure more effective monitoring of decisions taken by state owned bank management.
Comment
The appointment two consultants to assist BBB is indication of growing stress on leadership skills in
public sector banks (PSBs). Their appointment comes at a time when state-run banks have been struggling
to appoint quality people in top management. It also comes at a time efforts are being made by
government and Reserve Bank of India (RBI) to revive PSBs suffering from huge levels of non-performing
assets (NPAs) and losses.
Banks Board Bureau (BBB)
BBB is autonomous body of Central Government tasked to improve governance of Public Sector Banks
(PSBs), recommend selection of chiefs of government owned banks and financial institutions and help
banks in developing strategies and capital raising plans.
It was announced by Union Government in August 2015 as part of seven point Indradhanush Mission to
revamp PSBs and started functioning in April 2016. It had replaced Appointments Board of Government. It
is housed in Reserve Bank of India’s (RBI) central office in Mumbai, Maharashtra.
It comprises eminent professionals and officials for public sector banks (PSBs). Current BBB Chairman is
Bhanu Pratap Sharma. The first BBB was set up in February 2016 under chairmanship of former CAG
Vinod Rai for two-year term that ended in March 2018
Functions of BBB
Give recommendations for appointment of full-time Directors as well as non-Executive Chairman of
PSBs.
Give advice to PSBs in developing differentiated strategies for raising funds through innovative
financial methods and instruments and to deal with issues of stressed assets.
Guide banks on mergers and consolidations and governance issues to address bad loans problem
among other issues.
India to grow 7.2% in 2018-19 down from earlier projection of 7.4%: Ind-Ra Outlook
Aug 17 2018
Rating agency India Ratings & Research (Ind-Ra) in its Mid-Year FY19 Outlook has revised down India’s
growth to 7.2% from its earlier projection of 7.4% for 2018-19 (FY19). The downward revision comes as
Indian economy to face headwinds from high crude oil prices, increase in minimum support prices (MSP)
of kharif crops, rising trade protectionism, depreciating currency and no visible signs of abatement of the
non-performing assets (NPA) of the banking sector.
Ind-Ra Mid-Year FY19 Outlook Projections
Drivers of Growth: Growth in India is being primary driven by private consumption and government
spending. But other two engines of growth – investment and exports – have slowed down.
Capital expenditure: Capex by government alone will be insufficient to revive the capex cycle of the
economy. Its share in total capex of economy was only 11.1% during 2012-17. On the other hand, share of
private corporations was 40.9%. Private corporations in combination with household sector command
77.5% of total investment in the economy, so their capex revival is important for broad-based recovery in
the investment cycle of the economy.
Consumption expenditure: Private final consumption expenditure is projected to grow at 7.6% in 2018-19
compared to 6.6% in 2017-18, while expansion of government final consumption expenditure is expected to
slow down to 8.6% from 10.9% during the same period.
Exports: The annual value of exports will touch $345 billion in FY19, crossing peak of $318 billion attained
in FY14, but India will continue to face headwinds on the exports front.
Rupee: It has already depreciated 7.7% till July 2018 in response to elevated global turbulence, worsening
of current account deficit (CAD), rising inflation and concerns related to fiscal deficit.
CAD: India’s currency account deficit to rise to 2.6% of GDP in 2018-19, up from 1.9 % in the last fiscal year.
In absolute terms, it is expected to widen to $ 71.1 billion in 2018-19 from $48.7 billion in 2017-18.
Mobilisation of $25 billion from non-resident Indians (NRIs), similar to funds raised in 2013, will be able to

finance CAD.
Ind-Ra is one of the India’s most respected credit rating agency that provides ratings, research and rigorous analytics
of market in India. The headquarters of Ind-Ra is located in Mumbai and is belong to Fitch group.
NPCI launches UPI 2.0 with overdraft facility

Aug 17 2018
National Payments Corporation of India (NPCI) has launched UPI 2.0, an upgraded and renwed version of
Unified Payments Interface (UPI) by adding four new features to make it attractive and safer for users.
These new features will allow users to link their overdraft account to UPI, creation of one-time mandates
and pre-authorisation of transactions for payment at later date and checking the invoice sent by merchant
prior to making payment.
Unified Payments Interface (UPI)
UPI is payments system that allows multiple bank accounts belonging to any participating bank to be
controlled via single mobile app. It was launched by NPCI in April 2016 to allows easy, quick and hassle
free money transfer between any two parties. The UPI app merges a number of banking features,
facilitating seamless and secure fund transfer and merchant payments at single platform. It also allows
Peer to Peer collection request.
UPI is a payment system much like existing NEFT, RTGS, IMPS etc. but it is far more sophisticated and
standardized across banks. Technically, UPI is standard set of APIs (Application programming interface).
UPI allows us to pay directly from bank account to different merchants without putting details of card
details, net banking, IFSC code, wallet password etc. Since, it is standardized across banks, transaction
through is hassle free. The transactions which can be done using UPI include Merchant payments,
remittances, bill payments and so on.
Four additional services in UPI 2.0 are
Overdraft facility: It will allow users to link their overdraft (OD) account to UPI. Earlier, only current
accounts and savings accounts were able to linked with UPI. It will help UPI customers have instant
transaction through an additional digital channel with access to OD account.
One Time Mandate: It allows users to schedule payments. It also allows pre-authorisation of transaction
in which amount will be deducted on date for which has been scheduled. It can be used in cases where
money is to be transferred later while commitment has been made now.
Invoice in The Inbox: It allows users to get invoices sent by merchants in their inbox, which will help them
to view and verify credentials. With this, users can view and verify credentials of merchant even before
making payment and ensure their authenticity.
Signed Intent and QR: This feature will allow users to check credentials of merchants via Quick Response
(QR) code. It will enable to check whether merchant is UPI verified or not.
National Payments Corporation of India (NPCI)
NPCI is the umbrella organisation for all retail payments system in India. It is being promoted the Reserve
Bank of India. It was founded in 2008 as a not-for-profit organisation registered under section 25 of the
Companies Act, 2013. It has successfully played pioneering role in development of a domestic card
payment network called RuPay, reducing the dependency on international card schemes.
Hackers siphon Rs 94 crore from Pune’s Cosmos Cooperative Bank via ATMs in 28 countries
Aug 15 2018
Recently hackers have stolen (illegally withdrawn) Rs .94 crore from Pune’s Cosmos Cooperative Bank via
ATMs in 28 countries. It is possibly first of its kind coordinated digital attack on Indian bank. In this cyber
heist considered to be originated in Canada, Rs. 78 crore were illegally withdrawn in more than 12,000
ATM transactions in 28 countries. Rs 2.5 crore were made in different places within India with another
2,800 transactions. Moreover, Rs 13.5 crore was transferred to Hong Kong-based entity using the Society
for Worldwide Interbank Telecommunications (SWIFT) facility.
Modus Operandi of Hackers
The illegal withdrawals were enabled by malware attack which authenticated debit card transactions
bypassing the bank’s computerised core banking systecore banking system (CBS), which allows banks to
settle cash dispensation requests raised at ATMs.

CBS of the bank houses all the data of its customers. Once request is raised by swiping of card at ATM, it is
transferred to CBS of bank using switching system. After checking available credit in individual account, CBS either
allows or turns down request, which is again transmitted to payment systems via switching system.
The malware had created proxy switching system, which had bypassed need for validation by CBS of bank.
The operation of switching systems involves variety of agencies, including banks, which participate in
complex yet lightning fast process of dispensing money from teller machine.
This might have been preceded by another cyber-attack, resulting in data theft of hundreds of bank’s debit
cards. The information on these debit cards were then have been cloned on to fake cards used in physical
withdrawal of cash from ATMs across the world. The illegally withdrawn money has gone out from bank’s
corpus and not from individual accounts of the bank’s customers.
Rupee for first time hit historic low of Rs. 70 mark against US dollar
Aug 15 2018
Indian rupee for first time in history plunged to record low of Rs. 70.07 against US dollar on 14 August
2018. However, it recovered later at around Rs. 69.84 after heavy intervention by Reserve Bank of India
(RBI). This sudden deprecation of rupee is similar to fall of other currencies of emerging markets triggered
by crash in Turkish currency lira.
Background
Turkish lira has been in free fall following political and economic problems in Turkey, combined with fresh
trouble on the external front. It has slid by almost 50% against dollar in past one year. The primary reason
for ongoing rout in lira is poor economic management by government of President Recep Tayyip Erdogan.
Turkish economy is overheating due to soaring inflation (has reached annual rate of nearly 16% in July
2018), mounting levels of foreign debt and very high current account deficit (CAD). Moreover, both
Turkish government and central bank are facing serious loss of credibility. There are also signs of massive
bubble in construction sector of Turkey, which is further threatening country’s already fragile banking
system.
Impact of Rupee
Rupee has been on downslide in 2018 and has slipped 9% in 2018 as foreign investors sold $6.8 million and
$5.15 billion in equity and debt markets respectively. Besides, Turkey’s currency crisis has triggered for
fresh selling across emerging markets and further down sliding rupee sharply. Rupee is one of the worst
performing emerging market currencies and hardest hit in Asia due fall in Turkish lira. It is depreciating
due to external factors and at this stage it is not serious economic issue as depreciation is in line with
other currencies. In comparison to many other currencies, rupee has not seen that much depreciation. In
future, if global currencies show further meltdown, rupee will also fall further.
Implications of rupee’s fall
On Imports: Weak rupee can act as kind of import tax. Due to fall in rupee, importers (especially oil
companies and other import-intensive companies) will be hardest hit as cost of importing goods or capital
goods in to India will increase. They will have to pay more Indian rupees to buy an equivalent amount of
dollars.
On Exports: Exporters benefits from weak rupee as they get more rupees while converting their dollar
export earnings into Indian currency. India’s software exporters will benefit from rupee’s decline.
On Overall Economy: RBI assess trend in rupee vis-à-vis emerging market currency pack and if all
emerging market currencies are depreciating, it may further allow rupee to weaken to protect export
competitiveness. However it will make imports costlier. It will increase oil prices (India is world’s third
biggest oil importer and ships in about 80% of its crude oil requirements) which may exert further exert
pressure on CAD and cause inflationary pressure. It may force RBI to hike interest rates to check
inflationary pressures. It will also play important role in attracting long term foreign direct investment
(FDI) to support make in India agenda, which has not yet taken off and one of the reason being the strong
rupee value.

Axis Bank first to introduce iris authentication for Aadhaar-based transactions

Aug 11 2018
Axis Bank became first bank in the country to introduce Iris Scan Authentication feature for Aadhaar-based
transactions through its micro ATM tablets. These micro ATM tablets are Standardisation Testing and
Quality Certification (STQC) certified and UIDAI compliant registered devices with completely integrated
iris sensors.
How it works?
The transaction process through iris scan is very simple. Customer need to select desired service (funds
transfer, cash withdrawal) and feed-in their Aadhaar numbers in micro ATM. Next, they have to choose
IRIS as desired mode of authentication. Verification will be done by scanning eyes of customers through
tablet’s iris sensor camera in 3-5 seconds. The transaction will be completed after biometric details are
verified from UIDAI database.
Axis Bank is presently running pilot program of iris-based Aadhaar authentication for its customers at
eight branches in rural segment largely covering areas of Punjab, Haryana, Gujarat and Andhra Pradesh. It
is also exploring its application for varied services such as loan processing, insurance, eKYC account
opening and others, most likely extending to the semi-urban and urban regions as well.
Significance
Iris scan technology is completely contactless and
ankit saini provides up
| mindhunter786@gmail.com | to 98.2% authentication success rate and
offers edge over other prevalent biometric modes. It will help to boost bank’s financial inclusion efforts by
making Aadhaar authentication process hassle-free and offering easier access to digital banking for
consumers especially in rural parts of the country. Micro ATMs completely eliminate requirement of debit
cards, passwords, PINs, and user IDs, and empower consumers to avail banking services using only their
Aadhaar numbers and biometrics (iris scan or fingerprint scan).
Index of Industrial Production (IIP): Industrial output records 5-month high growth of 7% in June
2018
Aug 11 2018
According to data released by Central Statistics Office (CSO), factory output measured in terms of Index of
Industrial Production (IIP) had 7% in June 2018, five-month high. This was on account of higher output in
mining, manufacturing and power generation segments. Moreover, CSO also revised IIP upwards for May
2018 at 3.9% from previous estimate of 3.2% estimated earlier.
Key Facts
The cumulative IIP growth for period April-June 2018 was 5.2% over corresponding period of previous
year. The manufacturing sector in June 2018 grew by 6.9%, as against decline of 0.7% in the year-ago
month. Power generation segment grew by 8.5% in June against 2.1% growth year ago. The mining sector
output recorded 6.6% growth in June against 0.1% in June 2017.
IIP is composite indicator that measures short-term changes in volume of production of basket of
monthly by Central Statistical Organization (CSO), Ministry of Statistics and Programme Implementation.
(2011-12) reflects changes in industrial sector and also aligns it with base year of other macroeconomic
Sector wise items and weightages: IIP covers 407 item groups. Sector wise, the items included falls into 3
sectors are 77.63%, 14.37%, 7.9% respectively. The revised combined weightage of eight core Industries in
the IIP is 40.27%.
IFFCO forays into food processing, forms JV with Spainish firm
Aug 11 2018
Fertiliser major IFFCO has entered into joint venture with Congelados De Navarra to set up food
processing plant at Ludhiana in Punjab with an investment of Rs 325 crore. With this joint venture, co-
operative IFFCO for first time will foray into food processing sector. Congelados De Navarra company
based in Spain is pioneer in quick frozen (IQF) technology. It is into processing of vegetables, fruits, herbs
and ready-made pre-cooked dishes.
Key Facts
In the JV, IFFCO will have 30% stake while Congelados De Navarra will have the remaining 70% stake. This
company will invest about Rs 325 crore to set up greenfield food processing unit. The proposed plant will
source produce like potatoes, peas and cauliflower from farmers and then process them for sale in
domestic and exports market.
IFFCO’s foray into food processing business will benefit of farmers. It will also contribute in the
government’s goal to double farmers income by 2022, he added. This new facility food processing facility
will also generate 400 direct and 5,000 indirect local jobs in Punjab.
Indian Farmers Fertiliser Cooperative Limited (IFFCO)
IFFCO is large scale fertiliser cooperative federation in India which is registered as Multistate Cooperative
Society. It is one of India’s biggest cooperative society which is wholly owned by Indian Cooperatives. It
was founded in 1967 with just 57 cooperatives and at present it has amalgamation of over 36,000 Indian
Cooperatives with diversified business interests ranging from General Insurance to Rural Telecom apart
from its core business of manufacturing and selling fertilisers. It is headquartered in New Delhi.
IMF forecasts 7.3% GDP growth for India in 2018-19 and 7.5% in 2019-20
Aug 11 2018
The International Monetary Fund (IMF) in its report has projected India’s GDP growth 7.3% in the 2018-19
fiscal and 7.5% in 2019-2020 on strengthening of investment and robust private consumption. India’s
near-term macroeconomic outlook for India is broadly favourable.
Key Highlights of IMF Report
Headline inflation: It is projected to rise to 5.2% in fiscal year 2018/19, as demand conditions tighten, along
with recent depreciation of rupee and higher oil prices, housing rent allowances and agricultural
minimum support prices. But it has averaged 3.6% in fiscal year 2017/18 which 17-year low, reflecting low
food prices on return to normal monsoon rainfall, agriculture sector reforms, subdued domestic demand
and currency appreciation.
Current account deficit (CAD): It is projected to widen further to 2.6% of GDP on rising oil prices and
strong demand for imports. CAD will be offset by slight increase in remittances
Financial sector reforms: They have been undertaken to address twin balance sheet problems, as well as
to revive bank credit and enhance efficiency of credit provision by accelerating cleanup of bank and
corporate balance sheets. India’s stability-oriented macro-economic policies and progress on structural
reforms are continuing to bear fruit.
Way Forward: Continued fiscal consolidation is needed for India to lower elevated public debt levels,
supported by simplifying and streamlining GST structure. Further, while important steps have been taken
to improve recognition of Non-Performing Assets (NPAs) and recapitalise Public Sector Banks (PSBs),
more needs to be done. Persistently-high household inflation expectations and large general government
fiscal deficits and debt are still key macroeconomic challenges.
PSB Reforms: Large fraud in PSBs highlights financial sector weaknesses and underscores need for
government to take further steps to improve PSBs’ governance and operations, including by considering
more aggressive disinvestment.
Economic risks: Domestic economic risks are tilted to downside and external side risks include further
increase in international oil prices, tighter global financial conditions, retreat from cross-border
integration including spillover risks from global trade conflict and rising regional geopolitical tensions.
Domestic risks pertain to tax revenue shortfalls related to continued GST implementation issues and
delays in addressing twin balance sheet problems and other structural reforms.
Central Board of RBI: Centre appoints Swaminathan Gurumurthy and Satish Marathe as non-
official directors
Aug 9 2018

Appointments Committee of Cabinet (ACC) has approved appointment of Chartered Accountant

Swaminathan Gurumurthy and businessman Satish Kashinath Marathe as another non-official director on
Central Board of Reserve Bank of India (RBI). They have been appointed for period of four years.
Swaminathan Gurumurthy is Chartered Accountant by profession and is considered as Rashtriya
Swayamsevak Sangh (RSS) idealogue and is associated with its affiliate Swadeshi Jagran Manch. He is also
the editor of Tamil magazine Thuglak. He had referred demonetisation decision as equivalent of Financial
Pokhran.
Central Board of RBI
RBI’s business is overseen by Central Board of Directors. It is categorised into official and non0official
directors. It delegates the functions to its committees and sub-committees. Central Board of Directors
holds minimum 6 meetings every year. Out of which, at least 1 meeting every quarter is held. But typically
committee of central board meets every week (Wednesday).
Composition of RBI’s Central Board of Directors
It comprises RBI Governor, Deputy Governors (maximum 4), four non-official Directors which are
nominated by Central Government (each Non-official director represents the local Boards located in Delhi,
Chennai, Kolkata and Mumbai representing 4 regions of India). 10 Non-official Directors nominated by RBI
itself (These are persons having expertise in various segments of Indian Economy). Besides, there is one
representative (usually Financial Services Secretary) of Central| Government nominated under Section 8 (1)
(d) of the RBI Act.

RBI to pay Rs. 50,000 crore dividend to Government for FY18
Aug 9 2018
The Reserve Bank of India (RBI) has transferred surplus (dividend) of Rs. 50,000 crore to Government for
year ended in June 2018, over 63% more than Rs 30,659 crore which it transferred in 2017.
Significance of Surplus
RBI surplus forms sizeable chunk of revenue which government earns under head of ‘non-tax’, which is
mainly dividends distributed by state owned firms. With increase in RBI surplus by close to Rs 20,000
crore, Centre’s prospect of meeting fiscal deficit target (pegged at 3.3% of gross domestic product this
financial year) has improved based on fiscal consolidation and budget assumptions. The transfer also gives
Central Government more elbow room to infuse capital into public sector banks owned by it.
Earlier surplus transfers
Earlier in 2017, RBI had slashed surplus in the wake of demonetisation as its expenditure shot up largely
because of sharp rise in provisions and cost of printing currency notes. For year 2015-16, RBI board had
approved transfer of surplus amounting to Rs 65,876 crore to government. In 2014-15, it had paid Rs
65,896 crore to Government, which came as boon to Government in covering fiscal deficit target. The
surplus transferred to government was Rs 52,679 crore in 2013-14.
Provisions of surplus transfer
Technically, transfer of profits of RBI is provided in Section 47 of RBI Act, 1934. It states that after making
provisions for bad and doubtful debts, contribution to staff and superannuation fund, depreciation in
assets and for all matters for which provisions are made by or under Act or that are usually provided by
bankers, balance of profits is to be paid to Central Government. The RBI’s profits essentially represent
difference of income over expenditure.
RBI’s main source of income is interest earned on bond holdings through open market operations (OMOs)
or purchase and sale of government securities. Incidentally, YH Malegam committee had suggested in
2014 that RBI can transfer its entire surplus to government, without allocating anything to its various
reserve funds for three years because it had adequate reserve funds.
Following recommendations of Malegam committee, RBI had stopped transfers to internal reserves since
its accounting year 2013-14 which is now a part of expenditure. Moreover, Economic Surveys of FY16 and
FY17 also had pressed for bigger transfer of excess capital from RBI to Central government. It also had
warned that surplus transfer exercise should not undermine RBI’s independence.
NITI Aayog and CII launch partnership on SDGs
Aug 9 2018

The NITI Aayog and Confederation of Indian Industry (CII) have signed Memorandum of Understanding
(MoU) on Sustainable Development Goals (SDGs) and entered into three-year partnership. The MoU was
signed during Government and Business Partnership Conclave held in New Delhi. This partnership
focuses on specific activities that seek to develop vision and action agenda for businesses and industries to
contribute to SDGs, annual status reports and sector-specific best practise documents.
Government and Business Partnership Conclave
It was jointly organised by NITI Aayog, CII and United Nations. IT witnessed participation from senior
officials from Ministry of Housing and Urban Affairs, Ministry of New and Renewable Energy, Ministry of
Power and Ministry of Drinking Water and Sanitation.
On sidelines of this conclave, CII also launched report—Indian Solutions for the World to Achieve SDGs. The
report deep-dives into each of SDGs, targets and business implications thereof. It also cites examples that
illustrate how companies have incorporated SDGs framework into their business strategy and gone about
achieving them.
Confederation of Indian Industry (CII)
CII is an association of Indian businesses which works to create environment conducive to growth of
industry in India. The headquarters of CII is located at New Delhi.
MOPAD: SBI launches unified payment terminal
Aug 9 2018 ankit saini | mindhunter786@gmail.com |
India’s largest bank State Bank of India (SBI) has launched its Multi Option Payment Acceptance Device
(MOPAD) for digital payments convenience of merchants and consumers. It aims at providing digital
convenience to customers and ease of doing business for merchants at the same time. SBI will roll-out this
new initiative on all SBI PoS terminals in a phased manner.
Multi Option Payment Acceptance Device (MOPAD)
MOPAD also aims at providing convenience to merchants by eliminating multiple machines that they
keep in order to facilitate transaction from different sources. It will allow customers to make payments
through cards, Bharat QR, UPI and SBI Buddy (e-wallet) on single Point–of–Sale (PoS) terminal.
It will help merchants to integrate different kinds of transaction through one PoS machine, which will
help in eliminate their operational inconvenience and streamline cash flow. Customers will receive a
charge-slip as proof of payment after processing any type of transactions through MOPAD. This
multipurpose initiative will also enhance digital ecosystem and help bank in driving economy towards a
less-cash society.
India has highest gender gap in mobile phone ownership amongst: Study
Aug 8 2018
According to recent study released by LIRNEAsia, India has highest gender gap in mobile phone
ownership amongst 18 comparable countries and ranks among the lowest in women’s access to Internet.
LIRNEAsia is an information and communications technology (ICT) policy think tank that is involved in
pro-poor, pro-market research in Asia-Pacific since 2005. The study also included comparative research
done by ICT Africa in Africa and DIRSI in Latin America.
Key Highlights of Study
Ownership of mobile phones: Only 43% of women in India own mobile phones compared to almost 80% of
Indian males mostly because of lack of awareness. This difference is almost half of all other countries in
study including Pakistan, Bangladesh and Rwanda. There is substantial urban-rural divide in mobile
phone ownership with 71% urban penetration and 55% in rural. India’s urban-rural gap is comparable to
that in Nigeria.
Internet and social media usage: Women, rural citizens, and those with lower education or income
significantly lag behind in internet and social media usage. The gender gap in internet usage is
accentuated in rural regions at 52% as compared to 34% in urban areas. India’s 57% gender gap in Internet
usage was surpassed only by Bangladesh and Rwanda. Its gender gap in social media usage was even
higher with wider divides only in Bangladesh.
Information about internet: In India, 64% do not know about internet which is higher percentage than
other countries except Pakistan and Bangladesh. 68% of this group was female and 68 % were from rural
areas. India’s internet use was at 19% which is lower than that of Nigeria, Ghana, Kenya and Cambodia.
E-commerce: Awareness of platforms for e-commerce was higher in India compared to Pakistan and
Bangladesh. In India, 27% mainly use social media, 16 % for entertainment and 15% for news. Higher
percentage of women used social media for marketing and educational content, while men used social
media to chat which is significantly more than women.
Political views on social media: Indian social media users share their political views at some of highest
rates. More than half shared their religion, 26% share their sexual orientation, and 70% shared their mobile
number or email address. Women shared information less than men in almost all categories except for
political and sexual orientation.
Distrust of news: India also has high distrust of news shared on social media and only 29% trust social
media news while more than half did not. India also saw higher online harassment than Pakistan,
Bangladesh and Cambodia at 19% of users. Much of this was offensive name-calling and in 20% of such
cases, it led to reduced use of particular website.
Government extends deadline for imposing duty hike on 29 US products by 45 days
Aug 6 2018
Union Finance Ministry has further extended deadline on imposing import duty hike on 29 products,
imported from United States (US) by 45 days till September 18, 2018 from earlier August 4, 2018. This
decision for extension of retaliatory measures for another 45 days was taken based on suggestion of Union
Commerce Ministry. It also comes after some positive expectations from ongoing talks between two
countries as they are wrapping up negotiations on mutually-acceptable trade package for boosting India-
US trade through greater market access.
Background
The duty hike move 29 products announced by India in June 2018 was tit for tat retaliatory measure to
March 2018 decision of US President Donald Trump to impose heavy tariffs on imported steel and
aluminium items. The additional duties imposed by India were aimed at helping government earn
additional $241 million, equivalent to amount of iron and steel trade affected by US measures. The 29
products included agricultural products such as almonds, apples, chickpeas, lentils, and walnuts, and industrial
inputs such as boric acid, phosphoric acid, diagnostic reagent, flat rolled products of iron, certain flat rolled
products of stainless steel. Prior to issuing duty hike notification, India has also had dragged US to World
Trade Organization’s (WTO) dispute settlement mechanism over imposition of import duties on steel and
aluminium.
FICCI launches WOW mobile app to create awareness on preventive healthcare
Aug 3 2018
FICCI Ladies Organisation (FLO), the women’s wing of Federation of Indian Chamber of Commerce and
Industry (FICCI) has launched WOW (Wellness of Women) mobile application aimed at creating awareness
on preventive healthcare for women across the country.
WOW app
WOW app is backed by Chennai-based Apollo Hospitals Group that offers access to renowned doctors and
provides health tips. It provides easy to use platform that allows users to talk to doctors through video
conferencing or connect with them via voice or email. It also allows users to upload clinical information
such as reports, images and scans so that experts can provide opinion within stipulated time. The app
gives emphasis on generating awareness and preventive measures along with providing international
care treatment.
Federation of Indian Chambers of Commerce and Industry (FICCI)
FICCI is the largest and oldest apex business organization in India. It is a non-governmental and non-
profit organization. It was established in 1927 and is headquartered in New Delhi. Its mandate is to
enhance efficiency and global competitiveness of Indian industry. It also seeks to expand business
opportunities both in domestic and foreign markets through range of specialized services and global
linkages.
Government imposes 25% safeguard duty on import of solar cells

Aug 1 2018
Union Government has imposed safeguard duty of 25% on import of solar cells (whether or not assembled
in modules or panels) from China and Malaysia. The move is aimed at helping domestic solar cell
manufacturing sector. But it could affect existing projects dependent on cheap imports and hike solar
power tariffs in India since around 90% of panels sector uses solar cells made in China and Malaysia.
Safeguard Duty is tariff barrier imposed by government on the commodities to ensure that imports in excessive
quantities do not harm the domestic industry. It is mainly temporary measure undertaken by government in defence
of the domestic industry which is harmed or has potential threat getting hared due to sudden cheap surge in imports.
Key Facts
The decision by Union Government follows long deliberation by Directorate General of Trade Remedies
(DGTR), which recommended safeguard duty structure after considering application by Indian solar cell
manufacturers. They had sought protection from rising cheap imports. The 20% safeguard duty will be
effective for one year between July 30, 2018, and July 29, 2019. It will be reduced to 20% for six months
from July 30, 2019, and further to 15% in the subsequent half year. It will not be imposed on imports from
developing countries other than China and Malaysia.
Challenges for domestic industry
India’s domestic industry has around half-a-dozen makers of solar
ankit saini | mindhunter786@gmail.com | cells and modules, with total capacity of
around 3,000 MW. This is hardly enough to meet country’s burgeoning demand. The safeguard duty now
puts locally-made panels on par with imported ones in terms of cost. Solar Power projects now will have to
revive their supply chain and make input components locally instead of importing them and put modules
together here.
Domestic sector is not being fully exploited because of obsolete technology. Moreover price of solar
equipment produced in the country is not competitive as compared to that of foreign manufacturers,
especially Chinese manufacturers. Domestic sector needs to do lot more to be effective meet required
standards as compared to imported solar cells. They also need to improve technology.
Core industries growth quickens to 6.7% in June 2018
Aug 1 2018
As per data released by Union Ministry of Commerce and Industry, index of eight core industries
expanded to 7-month high of 6.7% in June 2018. This was due to better performance by cement, refinery
and coal sectors of the index. The previous high was witnessed in November 2017 at 6.9%. The growth rate
in May 2018 was 4.3%.
Breakaway of June 2018

Key Facts
The combined index of eight core industries stands at 129.8 in June 2018 and was 6.7% higher as compared
to the index of June 2017. Its cumulative growth during April to June 2018-19 was 5.2%. This growth in the
core industry is considered by two factors.One is that government investment in infrastructure projects is
going up, driving industries such as steel. The other is petroleum products are mainly exported and drive
to increase exports will be pushing this up.
Core industries
Core industries are main or key industries of the economy. In most countries, these particular industry
are backbone of all other industries. In India, there are eight core sectors comprising of coal, crude oil,
natural gas, petroleum refinery products, fertilisers, steel, cement and electricity. The eight infrastructure
sectors, constitute 40.27% of the total index of industrial production (IIP).
India Post Payments Bank to start operations with 650 branches in August 2018
Jul 31 2018
India Post Payments Bank (IPPB) is expected to go live with 650 branches in addition to 3,250 access
points co-located at post offices in August, 2018 following final clearance from Reserve Bank of India (RBI)
to start. RBI has given approval to IPPB after testing its entire system.
Key Facts
IPPB was incorporated on August 17, 2016 under Companies Act, 2013 as a public limited company with

100% Government of India equity under Department of Posts (Ministry of Communication & Technology).
It was the third entity to receive payments bank permit after Airtel and Paytm.
Around 11,000 gramin dak sevaks (in rural area) and postmen (in urban area) will provide doorstep
banking services. IPPB also has been given permission to link around 170 million postal savings bank (PSB)
account with its account. It will also carry out RTGS, NEFT, IMPS transaction that will enable IPPB
customers to transfer and receive money from any bank account.
Payments bank
Payments bank is new model of banking allows mobile firms, supermarket chains and others to cater to
banking requirements of individuals and small businesses to further enhance financial inclusion. It will be
set up as differentiated bank and will confine its activities to acceptance of demand deposits, remittance
services, internet banking and other specified services but cannot undertake lending services. Payments
bank can accept deposits maximum up to Rs 100,000 per account from individuals and small businesses.
They can issue ATM/debit cards but not credit cards and can also issue other prepaid payment
instruments. They also can distribute non-risk sharing simple financial products like mutual funds and
insurance products.
India’s first Mobile Open Exchange zone inaugurated at Noida
Jul 30 2018
Prime Minister Narendra Modi laid the foundation stone of country’s first Mobile Open Exchange (MOX)
zone in Noida, Uttar Pradesh. UP government had signed MoU with World Trade Centre, Noida at UP
Investors Summit to develop Tech Zone which will act as catalyst for growth of mobile and allied sectors
in the state.
Mobile Open Exchange (MOX) zone
MOX will be dedicated ecosystem for mobile industry, providing integrated platform to mobile
manufacturers, research and development (R&D) and allied industries. It brings service providers, handset
manufacturers, mobile content, application and service providers, retailers and distributors at one place
which promotes indigenous R&D in hardware and start-ups in app development and other domains of the
industry.
This unique zone will play pivotal role in attracting investment and area will reap huge benefits from it.
The ecosystem will channelize foreign direct investment (FDI) and generate revenues from consumption-
based and destination-based taxes. Moreover, its proximity to universities will strengthen industry-
academia relations and provide them opportunity to work together in R&D. Chinese company already has
set up its manufacturing facility in WTC Noida complex and directly and indirectly employs over 15,000
people.
India ranks 11th in 2018 AT Kearney FDI Confidence Index
Jul 26 2018
India has fallen out of top 10 destinations for Foreign Direct Investments (FDI) in terms of its
attractiveness according to 2018 Kearney FDI Confidence Index, in which it was ranked 11th, down from
8th in 2017 and 9th in 2016. The index was released by report published by global consultancy firm A T
Kearney.
Fall in India’s rankings may be due to teething troubles in implementation of goods and services tax (GST)
and Government’s demonetisation decision in 2016. These policies may have deterred investors in the
short term as they have disrupted business activity and weighed on economic growth
Several of India’s reforms such as removing Foreign Investment Promotion Board (FIPB) and liberalising
FDI limits in key sectors such as retail, aviation, and biomedical industries have maintained India’s high
rankings in terms of FDI attractiveness.
In future, potential investors are likely to be cautious as they are monitoring political risks such as China
abolishing presidential term limits and upcoming general election in India. But sheer size of Chinese and
Indian markets, will continue to be draw for investors and they will remain highest-ranking emerging
markets on the index.

FDI Confidence Index

The index is annual analysis of how political, economic, and regulatory changes will likely affect FDI
inflows into countries in coming years. It is constructed using primary data from proprietary survey
administered to senior executives of world’s leading corporations. Companies participating in survey have
annual revenues of $500 million or more.
Invest India and Business France sign MoU to promote investment
Jul 26 2018
Invest India and Business France have signed Memorandum of Understanding (MoU) to promote
investment facilitation and cooperation between startups of India and France. The MoU will facilitate
direct foreign investment by providing practical investment information to enterprises. It will also
support companies pursuing those opportunities which contribute positively to economic growth of two
countries.
Key Facts
Under this MoU, Invest India and Business France will collaborate to promote business and startup
ecosystem cooperation through joint activities. They will also exchange experiences to strengthen
institutional knowledge and identify opportunities between businesses in French and Indian private
sector, creating dedicated support structure to facilitate inbound companies and startups. The
partnership will strengthen existing business relations
ankit saini between
| mindhunter786@gmail.com | India and France and provide seamless
facilitation channel for new businesses and innovations from both countries to grow in each other’s
markets.
Invest India
It is official Investment Promotion and Facilitation Agency of Central Government. It is mandated to
facilitate investments in the country. It is first stop for potential global investors in country. It is non-
profit venture under Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and
Industries,
Business France
It is executive agency of French government under supervision of Minister for Economic Affairs and
Finance and Minister of Foreign Affairs and International Development. It promotes international
business development for French companies and professionals through worldwide network of 80 trade
commissions, which have worked with over 7,500 SMEs. It mobilizes expertise of 1,400 persons in France
and in 70 other countries.
India ranks 6th Global Optimism Index
Jul 26 2018
India was ranked 6th in the global optimism index with business optimism tepid in second quarter (Q2) of
2018. The index was released as part of Grant Thornton’s International Business Report (IBR), a quarterly
global business survey. The report was based on results of quarterly global business survey of 2,500
businesses in 32 economies.
Key Highlights of report
The global optimism index for Q2 of 2018 was topped by Indonesia followed by Netherlands, Austria,
Philippines and China. Globally business optimism has dropped from record high net 61% in Q1 2018 to net
54% in Q2 in 2018 and businesses are optimistic about increase in revenue.
India was recently declared as 6th largest economy by World Bank, surpassing France. However, higher
twin deficits resulting in falling rupee and rising crude oil prices and inflation continue to be reasons for
sluggish business optimism in India. Confidence of Indian businesses has been low since Q3 2017.
In India also businesses are optimistic about an increase in revenue but availability of skilled workforce
remains a key constraint for growth and employment expectations are low. Red tape and information,
communications technology (ICT) infrastructure are main concern for growth in India.
Banks, FIs ink inter-creditor agreement for faster NPA resolution
Jul 24 2018
Banks and Financial Institutions (FIs) have signed Inter-Creditor Agreement (ICA) aimed at faster
resolution of stressed assets of Rs. 50 crore or more which are under consortium lending. It has been

signed by 22 public sector banks, 19 private sector banks and 32 foreign banks and 12 major financial
intermediaries like LIC, HUDCO etc.
Inter-Creditor Agreement (ICA)
ICA Framework is part of project ‘Sashak’. Under it, lead lender (having highest exposure) will be
authorised to formulate resolution plan for operation turnaround of assets which will be presented to
lenders for their approval. It will be applicable to all corporate borrowers who have availed loans and
financial assistance for amount of Rs. 50 crore or more under consortium lending or multiple banking
arrangements. Each resolution plan will be submitted by lead lender to Overseeing Committee.
The decision making under ICA framework will be by way of approval of majority lenders i.e. lenders with
66% share in aggregate exposure. Once resolution plan is approved by majority lenders, it will be binding
on all lenders that are party to ICA. The plan formulated under ICA will be in compliance with RBI norms
and all other applicable laws and guidelines. Banks opposing resolution plan will have option to sell their
stressed loans to company at discount or buy out loans to that entity from all other lenders at premium.
Significance of ICA framework
The ICA framework aims for faster facilitation of the stressed assets resolution. It gives a bigger say to
lead lender in consortium and allows resolution plan to be approved if 66% of the banks in the group agree
to it. It authorises lead bank to implement resolution plan in 180 days and leader would then prepare
resolution plan. If any lender dissents, the lead lender
ankit saini will have
| mindhunter786@gmail.com | the right but not the obligation to arrange
for buy-out of the facilities of the dissenting lenders at a value that is equal to 85 per cent of the lower of
liquidation value or resolution value. The dissenting lenders can exercise such right of buy-out in respect
of the entire facilities held by other relevant lenders.
Background
According to RBI, India’s banks had 12.5% of their total loans categorised as non-performing or
restructured at the end of March 2018. But RBI in February 2018 had withdrawn half dozen loan
restructuring schemes and tightened rules to steer more companies to bankruptcy courts. It had issued
revised framework for resolution of stressed assets.
Besides, after recommendations of Government formed Sunil Mehta Committee, Inter-creditor
Agreement was prepared under aegis of Indian Banks’ Association (IBA) to serve as platform for banks and
FIs to come together and take joint and concerted actions towards resolution of stressed accounts.
India to remain fastest growing major economy till 2019-20: ADB
Jul 21 2018
According to Asian Development Bank (ADB), India will continue to be fastest growing major economy,
ahead of China, with growth rate of 7.3% in 2018-19 and 7.6% in 2019-20. The growth projections were
supplement to ADB’s Asian Development Outlook (ADO).
Key Highlights
Growth in Asia and Pacific’s developing economies for 2018 and 2019 will remain solid as it continues
apace across the region, despite rising tensions between the US and its trading partners. Concerns for the
region include trade measures and rising trade tensions in the region. But the prudent macroeconomic
and fiscal policy-making will help economies across region prepare to respond to external shocks,
ensuring that growth in the region remains robust.
South Asia will continue to be the fastest growing sub-region in Asia Pacifit, led by India, whose economy
is on track to meet projected growth of 7.3% for 2018 and further accelerating to 7.6% in 2019, as measures
taken to strengthen the banking system and tax reform boost investment. The growth in India will be
driven by increased public spending, uptick in private investment and higher capacity utilisation rate.
Asian Development Bank (ADB)
ADB is a regional development bank based out of Asia. It aims to promote social and economic
development in Asia. It was established in December 1966. It is headquartered at Ortigas Centre in Manila,
Philippines. ADB’s main objective is to assist its members and partners, by providing loans, technical
assistance, grants, and equity investments to promote social and economic development. It has total 67
members, of which 48 are from within Asia and the Pacific and 19 outside. ADB has been modelled closely
on the lines World Bank. It has similar weighted voting system where votes are distributed in proportion

with members’ capital subscriptions.

RBI to issue new 100 rupee notes in lavender colour
Jul 20 2018
Reserve Bank of India (RBI) will shortly issue new Rs. 100 denomination banknotes in lavender colour in
Mahatma Gandhi (New) Series. This comes on back of new designs introduced for Rs 200, Rs 500 and Rs
10 notes, in the last couple of years. The old Rs 100 notes in the earlier series will also continue to be legal
tender along with new notes.
Key Features of new Rs. 100 note
The front side of new Rs. 100 note depicts Mahatma Gandhi’s face and back side featuresmotif of “RANI KI
VAV”, highlighting the country’s cultural heritage. Rani ki Vav, a UNESCO world heritage stepwel site in
Patan, Gujarat built in memory the 11th century king Bhima.
The dimension of new note is 66 mm × 142 mm, which will be the same as the other new notes of Rs 200,
Rs 500 and Rs 10 released earlier. Like every other currency note, it also has a portrait of Mahatma Gandhi
at the centre. It has security thread with inscriptions, ‘भारत’ and RBI. If the note is tilted, the colour
changes from green to blue.
Right side of Mahatma Gandhi portrait includes guarantee clause, Governor’s signature with promise
clause and RBI emblem. Ashoka Pillar emblem is on right side of note. The top left side and bottom right
side have number panel with numerals in ascending font.
Mahatma Gandhi portrait and electrotype (100) watermarks and it also has Swachh Bharat logo with
slogan. It also has certain features incorporated for the visually impaired. These include intaglio or raised
printing of Mahatma Gandhi portrait, Ashoka Pillar emblem, raised triangular identification mark with
micro-text 100, four angular bleed lines on the right and left sides.
Government to infuse Rs 11,336 crore capital in 5 public sector banks by September-end

Jul 19 2018
Union Finance Ministry is planning to infuse additional capital close to Rs 11,336 crore in 5 more public
sector banks (PSBs) by September 2018-end. These five state-owned banks are Punjab National Bank (PNB),
Corporation Bank, Andhra Bank, Allahabad Bank and Indian Overseas Bank (IOB).
Key Facts
This round of capital infusion will be done through issuance of recapitalisation bonds and not directly

from Budget. This additional capital will help these banks to meet minimum regulatory capital adequacy
ratio (CAR) and enable them to make interest payments on certain bonds on time.
Within capital infusion plan of these five PSBs, PNB is expected to get highest amount of Rs 2,816 crore.
Corporation Bank is will get Rs 2,555 crore followed by Indian Overseas Bank (Rs 2157 crore), Andhra Bank
(Rs 2,019 crore) and Allahabad Bank (Rs 1,790 crore).
This capital infusion by Government will be only for purpose of meeting minimum regulatory requirement
and will be not growth capital which will be provided in second half of current fiscal year. The growth
capital will only be given to those banks which meet performance targets and modalities set by Finance
Ministry as per agreement signed with each bank.
Background
The latest round capital infusion in these 5 PSBs will be part of remaining Rs 65,000 crore out of Rs 2.11
lakh crore capital infusion announced by Union Government for two financial years. In October 2017,
Union Government had announced Rs 2.11 lakh crore capital infusion programme, under which PSBs were
to get Rs 1.35 lakh crore through recapitalisation bonds, and balance Rs 58,000 crore through raising of
capital from market and remaining through budgetary support. The government has already infused Rs
80,000 crore out of Rs 1.35 lakh crore through recapitalisation bonds in PSBs and balance will be done
during this financial year (2018-19).
IMF cuts India’s growth forecast for 2018 to 7.3%
Jul 17 2018
The International Monetary Fund (IMF) in its latest World Economic Outlook (WEO) update has projected
growth rate of 7.3% in 2018 and 7.5% in 2019 for India as against 6.7% in 2017. This makes India, fastest
growing country among major economies in 2018-19 and 2019-20.
Key Facts
India will grow by 7.3% in 2018-19 against earlier estimate of 7.4%, slightly less — 0.1 percentage point in
2018. In 2019-20, it will grow by 7.5% against earlier estimate of 7.8%. This reflects negative effects of
higher oil prices on domestic demand and faster than-anticipated monetary policy tightening due to
higher expected inflation.
Despite India’s slight downgrade in the projections, it continues to outperform China. Growth in China is
projected to moderate from 6.9% in 2017 to 6.6% in 2018 and 6.4% in 2019. This is mainly because of
regulatory tightening of financial sector takes hold and external demand softens.
The global growth is projected to reach 3.9% in 2018 and 2019, in line with forecast of April 2018 WEO.
Growth prospects in emerging market and developing economies is becoming more uneven, amid rising
oil prices, higher yields in United States Treasury bonds, escalating trade tensions and market pressures
on currencies of some economies with weaker fundamentals.

World Economic Outlook (WEO)

WEO is survey conducted and published by IMF. It is published biannually and partly updated two times a
year. It portrays the world economy in the near and medium context, with growth projections for up to
four years into the future. WEO forecasts include key macroeconomic indicators, such as GDP, inflation,
fiscal balance and current account of more than 180 countries around the globe. It also deals with major
economic policy issues.
IFFCO iMandi: IFFCO rolls out e-commerce platform for farmers
Jul 16 2018
Fertiliser major IFFCO has launched e-commerce platform IFFCO iMandi (an mobile application and web
portal) to address all needs of the farming community associated with it. For this initiative, IFFCO has
partnered with Singapore-based technology firm iMandi. Through this e-commerce platform, IFFCO is
targeting to reach GMV (gross merchandise value) of $5 billion in the next two years by catering needs of
5.5 crore farmers already associated with it.

IFFCO iMandi
The e-commerce platform is one stop shop for agri inputs and produce, FMCG, electronics, loans,
insurance etc. It has features like buy-sell, communication (chat and calling), entertainment and
information/advisory content to keep farmers engaged. Using it, farmers buy all agri inputs of IFFCO,
including fertilisers, agro chemicals and seeds at discounted price and get free delivery at their doorstep.
It will cater needs of 5.5 crore farmers already associated with IFFCO. In this platform, IFFCO’s subsidiary
IFFCO eBazar Ltd has taken 26% stake in and remaining 74% is with I-tech Holdings and some other
investors.
from its core business of manufacturing and selling fertilisers. It is headquartered in New Delhi. It had
posted turnover of Rs 20,787 crore in 2017-18 fiscal. It produced nearly 8 million tonnes and sold 10.3
million tonnes of fertilisers in 2017-18.
Index of Industrial Production (IIP): Industry growth slips to 7-month low of 3.2% in May 2018
Jul 13 2018 ankit saini | mindhunter786@gmail.com |
According to the data released by the Central Statistics Office (CSO), factory output measured in terms of
the Index of Industrial Production (IIP) has slipped to seven-month low of 3.2% in May 2018. It was mainly
due to sluggish performance of manufacturing and power sectors coupled with poor offtake of fast
moving consumer goods (FMCG).
Besides, IIP was revised down to 4.8% in April 2018 from previous estimates of 4.9%. During April-May
2018, the IIP had recorded growth of 4.4% as compared to 3.1% in same period year ago. The IIP had
expanded by 2.9% in May 2017 and previous low was 1.8% in October 2017.
Breakaway of May 2018 IIP
Manufacturing sector: It grew by just 2.8%, marginally up from 2.6% in the corresponding period last
year.
Power generation growth: It decelerated sharply to 4.2% as compared to a high of 8.3% year ago.
Mining sector output: It recorded an impressive growth of 5.7% as against 0.3% in May last year.
FMCG sector: It was the worst performer among user based goods segment, as its output declined by 2.6%
as against a growth of 9.7% year ago.
Use-based classification: Its growth rates in May 2018 over May 2017 are 5.7% in primary goods, 7.6% in
capital goods, 0.9% in intermediate goods and 4.9% in infrastructure/construction goods. The consumer
durables and have recorded growth of 4.3% in the month under review.
IIP is composite indicator that measures short-term changes in volume of production of basket of
Base year: CSO had revised base year of IIP from 2004-05 to 2011-12 in May 2017 to capture structural
changes in economy and improves quality and representativeness of indices. The revised IIP (2011-12)
reflects changes in industrial sector and also aligns it with base year of other macroeconomic indicators
like Wholesale Price Index (WPI) and Gross Domestic Product (GDP).
Sector wise items and weightages: It covers 407 item groups. Sector wise, the items included falls into 3
categories viz. Manufacturing (405 items), Mining (1 items) & Electricity (1 item). The weights of three
the IIP is 40.27%.
India becomes world’s 6th largest economy in 2017: World Bank
Jul 12 2018
According to updated World Bank figures on GDP of countries for 2017, India has become world’s sixth-

biggest economy surpassing France to seventh place. India’s gross domestic product (GDP) amounted to
$2.597 trillion at the end of 2017, as against $2.582 trillion for France.
Key Facts
Top largest economies: At end of 2017, United States was world’s largest economy with size of US $19.39
trillion, followed by China (US $12.23 trillion) at the second place. Japan (US $4.87 trillion) and Germany
(US $3.67 trillion) are at third and fourth places, respectively. Britain is still world’s fifth-biggest economy
with a GDP of $2.622 trillion.
Per capita GDP: India, with population of around 1.34 billion is poised to become world’s most populous
nation, whereas France’s population stands at 67 million. This means India’s per capita GDP will continue
to amount to just fraction of that of France which is still roughly 20 times higher.
India’s economy Growth: India has grown at seven-quarter high of 7.7% in the three months ended March
2018, helped by higher government spending and investment. Manufacturing and consumer spending
were main drivers of Indian economy in 2017.
5th largest economy: India has doubled its GDP within decade and is expected to power ahead as key
economic engine in Asia, even as China economy is slowing down. In near future India is also expected to
surpass fifth largest economy United Kingdom.
Background
According to International Monetary Fund (IMF), India is projected to grow at 7.4% in 2018 and 7.8% in
2019, mainly boosted by household spending and tax reform. This compares to world’s expected average
growth of 3.9%. Besides, London-based Centre for Economics and Business Research has predicted that in
future, India will overtake both Britain and France in terms of GDP and has good chance of becoming
world’s third-biggest economy by 2032.
Global Innovation Index (GII): India ranks 57th
Jul 11 2018
In recently released Global Innovation Index (GII) 2018, India was ranked 57th among 130 countries. It was
11th edition of GII and was jointly released by Cornell University, INSEAD and World Intellectual Property
Organisation (WIPO). This year, India has moved up 3 places as compared to 60th rank in GII 2017 and
emerged as top-ranked economy in Central and South Asia.
Key Highlights

India
India has maintained its top place in central ankit
and south Asia region. It has consistently moving up on global
ranking from 81st in 2015 to 57th this year. In fact, it has climbed up the list third year in row. It ranked at
66th position in 2016 and 60th last year.
Strengths: These indicators have helped India to improve its ranking. It includes India’s human capital
(graduates in science & engineering), growth rate of GDP per worker, exports of information and
communication technology (ICT) and services, productivity growth and creative goods exports etc.
Weakness: India has fared badly on indicators such as ease of starting business, political stability and
safety, overall education and environmental performance
Global Innovation Index (GII)
The GII global ranking is published by World Intellectual Property Organisation (WIPO) – a specialized
agency of United Nations in association with Cornell University and graduate business school INSEAD. It
ranks nations based on 80 indicators, ranging from intellectual property filing rates to R&D, online
creativity, mobile application creation, computer software spending, education spending, scientific &
technical publications and ease of starting business.
India’s Confederation of Indian Industry (CII) is one of the knowledge partners which assists GII team in
bringing out the annual ranking. GII is published annually since 2007 and is considered leading
benchmarking tool for business executives, policy makers and others seeking insight into state of
innovation around the world. It is being used by them to evaluate progress on continual basis.
India-South Korea Technology Exchange Centre inaugurated in New Delhi
Jul 11 2018
The India-Korea Technology Exchange Centre was inaugurated at National Small Industries Corporation
premises in New Delhi. It was inaugurated by Minister of State (I/C) MSME Giriraj Singh and Minister of
SMEs and Start-ups of South Korea, Hong Jong- hak.
India-Korea Technology Exchange Centre
The purpose of centre is to create platform for MSMEs of India and South Korea where they can be
assisted to identify and exchange latest technologies, share management expertise, product development
and technology applications for product development.
The centre will work towards identifying Indian technologies which can be exported to Korea and find
suitable Korean partners for the same. It will initiate various cooperative MSME projects complimenting
each other’s strengths in MSME sector.
It will also create Technology Data Bank from each side to encourage technology transfers, production of
high quality products in India. It will also encourage Joint Ventures (JVs) and business matching between
Indian and South Korean SMEs, besides others.

Samsung inaugurates world’s largest mobile phone factory in Noida

Jul 10 2018
South Korean technology giant Samsung inaugurated the world’s largest mobile manufacturing unit in
Noida, Uttar Pradesh. It was jointly inaugurated by Prime Minister Narendra Modi and South Korean
President Moon Jae-in.
Key Facts
Samsung Electronics facility at Sector 81 in Noida will help company to double its current manufacturing
capacity for mobile phones in Noida from 6.8 crore units a year to 12 crore units a year (10 million phones
in a month), in phase-wise expansion that will be completed by 2020.
The facility will allow Samsung to make phones at a lower cost due to its scale when other phone making
hubs such as China are getting more expensive. 70% phones manufactured in this facility will be
earmarked for domestic market in Indian and remaining 30% will be exported to Middle-Eastern and
African nations.
The new factory has been built at investment of Rs. 4,915 crore on 35-acre land. It will generate 2,000
direct jobs. At present, Samsung provides 70,000 direct and indirect jobs in country, 5,000 of them are
employed in Noida. Production in this new facility will range from low-end smartphones priced below
$100 to company’s flagship models.
Comment ankit saini | mindhunter786@gmail.com |
India is world’s second-largest smartphone market after China (after it overtook US). According to a study
by Cisco Systems, there will be 780 million connected smartphones in 2021, compared with 359 million in
2016. This new facility is expected to help Samsung to consolidate its leadership position in Indian mobile
market, which currently is facing strong competition in smartphone segment by Chinese players such as
Xiaomi, Vivo, Oppo and others.
IFFCO inks pacts with two South Korean firms for agri-equipment and finance business
Jul 10 2018
Fertiliser cooperative major IFFCO (Indian Farmers Fertiliser Cooperative Limited) has entered into
strategic partnership with two leading South Korean firms to explore business opportunities in agri-
machinery and farm credit sectors. These two firms are LS Mtron Ltd, a South Korean agriculture
equipment manufacturer and NH Capital co. Ltd., South Korea’s leading financial services provider.
Key Facts
The farm machinery and agriculture credit sector are still evolving in India. Over the years, IFFCO has
been expanding its footprint beyond chemical fertiliser and was scouting for partner to venture into farm
machinery and agri-credit sectors for long time. The entry of established player like IFFCO in these
emerging sectors will certainly infuse much-needed competition and freshness in the sector. Under this
strategic partnership, IFFCO together South Korean firms will explore business opportunities involving
supply, sales and distribution of agricultural machinery and finance to fulfil the market demand in India.
from its core business of manufacturing and selling fertilisers. It is headquartered in New Delhi.
China, India clinch deal to reduce tariffs on Indian medicines, anti-cancer drugs
Jul 10 2018
China has announced that it has clinched deal with India on reduction of tariffs (import duties) on Indian
medicines including anti-cancer drugs. However, it is not yet clear whether it has agreed to grant licences
to Indian companies to sell cancer drugs in its huge market.
Key Facts
Indian drugs, especially cancer-curing medicines are in big demand in China as they are far cheaper than
their western counterparts. Earlier in May 2018, China had lifted tariffs on the import of cancer drugs. But
it had failed to enthuses Indian pharmaceutical companies as they are not legally able to market their

drugs in China as it requires licence from the country’s food and drug administration.
In recent times, China has announced series of measures to expand its economy by opening up it to
outside world and actively expand imports to uphold free trade global regime and as measure to fight
against protectionism. It also earlier had announced to cut on import duties on over 8,500 Indian items as
part of measures under to relax taxes on more goods from India and other countries to absorb impact of
trade war with United States (US) which has heated up.
Background
India has been demanding the opening of China’s IT and pharmaceutical sectors as part of measures to
reduce a US $51 billion trade deficit in over US $84 billion bilateral trade. Both countries have stepped up
negotiations for Chinese imports of Indian rice, sugar and pharmaceuticals after informal meeting
between Prime Minister Narendra Modi and President Xi Jinping in Wuhan.
NASSCOM opens Center of Excellence (CoE) for Data Science and Artificial Intelligence in
Bengaluru
Jul 7 2018
Indian IT industry apex body NASSCOM (National Association of Software & Services Companies) has
opened Centre of Excellence for Data Science and Artificial Intelligence (CoE-DSAI) in Bengaluru,
Karnataka. The centre was set up in collaboration with Karnataka Government with an aim to nurture
innovation in emerging disruptive technologies such as AI and to leverage the power of data science.
CoE-DSAI
The centre aims to support small and mid-sized businesses (SMB) by fast-tracking their product
developing, providing market access and assist them by co-creating programs along with other industry
partners and start-ups. It will work with governments and universities to provide emerging businesses
with required mentorship, talent and skills. It will create platform for industry to academia to co-create
digital solutions for Industry 4.0. It will work with Government & enterprises to make available large
data-sets for training model, create a technology platform (cloud + on premise) with requisite library of
solutions.
NASSCOM-NITI Aayog Partnership
NASSCOM also signed Memorandum of Understanding (MoU) with NITI Aayog to collaboratively foster
applied research, accelerating adoption and ethics, privacy and security. Under it, NASSCOM will facilitate
collaboration between NITI Aayog and CoEs. It will also include NITI Aayog as knowledge partner.
Comment
Both these initiatives have been taken with aim to strengthen country’s AI ecosystem and will serve as
platform for intelligence-sharing and technology collaboration between stakeholders to build collective
capabilities for industry and country in the cutting-edge areas artificial intelligence.
National Association of Software and Services Companies (NASSCOM)
NASSCOM is global non-profit trade association (organisation) of Indian Information Technology (IT) and
Business Process Outsourcing (BPO) industry. It facilitates business and trade in software and services
and encourages the advancement of research in software technology. It is registered under the Indian
Societies Act, 1860. Its headquarters are in New Delhi.
It has regional offices in Bengaluru, Chennai, Hyderabad, Kochi, Kolkata, Mumbai, Pune and
Thiruvananthapuram. The global IT trade body has over 2000 members, of which over 250 are companies
from the China, EU, Japan, US and UK. NASSCOM’s member companies are in the business of software
development, software services, software products, IT-enabled/BPO services and e-commerce.
Cabinet approves extension of Scheme of Recapitalization of Regional Rural Banks
Jul 5 2018
Union Cabinet has approved extension of scheme of recapitalization of Regional Rural Banks (RRBs) for
next three years (upto 2019-20). This will enable RRBs to maintain minimum prescribed Capital to Risk
Weighted Assets Ratio (CRAR) of 9%. It will ensure strong capital structure and minimum required level of
CRAR. This will facilitate financial stability of RRBs and enable them to play greater role in financial
inclusion and meeting credit requirements of rural areas.
Key Facts

The scheme of Recapitalization of RRBs was started in 2010-11 and was extended twice in the year 2012-13
and 2015-16. The last extension was upto March 2017. Total amount of Rs. 1107.20 crore, as Central
Government share, out of Rs. 1450 crore, was released to RRBs upto March, 2017. The remaining amount
of Rs.342.80 crore will be utilized to provide recapitalization support to RRBs whose CRAR is below 9%,
during the extended three years period.
This will be in addition to announcement made in 2018-19 Budget for relating to allowing financially
strong RRBs to raise capital from sources other than Central Government, State Government and Sponsor
Bank. The identification of RRBs requiring recapitalization and amount of capital to be provided will be
decided in consultation with NABARD.
Regional Rural Banks (RRBs)
RRBs were set up as government-sponsored, regional based rural lending institutions under Regional
Rural Banks Act, 1976. They are scheduled commercial banks (Government banks) and are configured as
hybrid micro banking institutions, combining local orientation and small scale lending culture of
cooperatives and business culture of commercial banks.
Objective: They have been created with a view to serve primarily rural areas of India with basic banking
and financial services. They fulfill credit needs of relatively unserved sections in rural areas-small and
marginal farmers, agricultural labourers and socio-economically weaker sections and small entrepreneurs
in rural areas for development of agriculture, trade, commerce, industry and other productive activities.
RRBs can also set branches set up for urban operations and their area of operation may include semi
urban or urban areas too.
Ownership: RRBs are jointly owned by Central Government, concerned State Government and Sponsor
Banks with the issued capital shared in the proportion of 50%, 15% and 35% respectively.
Functions: provide banking facilities to rural and semi-urban areas, they carry out government operations
like disbursement of wages of MGNREGA workers, distribution of pensions etc, they provide para-
Banking facilities like locker facilities, debit and credit cards. They can also function as Small financial
banks.
NITI Aayog to organise India’s First Global Mobility Summit
Jul 4 2018
NITI Aayog is going to organise ‘MOVE: Global Mobility Summit’ on September 7-8, 2018 collaboration
with various ministries and industry partners. The summit will be held in New Delhi and will be
inaugurated by the Prime Minister Narendra Modi. It will help to drive India’s goals for vehicle
electrification, renewable energy integration and job growth, thus, speeding up India’s transition to a
clean energy economy.
MOVE: Global Mobility Summit
Objectives: The summit aims to bring together and engage with key stakeholders within rapidly
transforming global mobility landscape and to evolve public interest framework for shared, connected,
zero emission agenda for the future. It also aims to encourage synergies between indigenous industries
such as automobile manufacturing, information technology, electronics, telecommunications to integrate
with global supply chains. It also envisages mobility as key driver for generating employment, providing
innovative solutions to improve efficiency and efficacy of transport sector and accelerate economic
growth.
Key Features: The summit will feature global political leaders from mobility space and will see
participation of over 1200 participants from across world including government leadership, research
organizations, academia, industry leaders, think tanks and civil society organisations.
Key Themes: The summit will be organised along key tracks (themes) to anchor debate and deliberations
on towards preparing collective mobility agenda. These themes or tracks are asset utilization and services,
comprehensive electrification, alternative energy, reinventing public transit and logistics and goods
transport.
Vishwas Patel appointed as Chairman of Payments Council of India
Jul 4 2018

Payments Council of India (PCI) has appointed Vishwas Patel, Director at Infibeam Avenues as its new
Chairman. He will take over from Naveen Surya, who has been elevated to post of Chairman Emeritus. He
has been associated with PCI since its inception in 2013 and was serving as PCI’s co-Chairman. PCI also
has appointed Loney Antony, Managing Director, Hitachi Payment Services, as its new co-Chairman.
Payments Council of India (PCI)
PCI is an apex non-governmental body representing companies in payments and settlement system. It
was formed in 2013 under aegis of IAMAI (Internet and Mobile Association of India) to cater needs of
digital payment industry in India. It was formed for representing various regulated non-banking payment
industry players and to help resolve various industry level issues and barriers in payments and settlement
system.
It works with all its members to promote payments industry growth and support goal of ‘Cash to Less
Cash Society’ and ‘Growth of Financial Inclusion’ which is also vision shared by Government of India and
Reserve Bank of India (RBI). PCI works closely with regulators i.e. RBI, Finance Ministry and any similar
government, departments, bodies or institutions to make ‘India a less cash society’.
Index of Eight Core Industries register 3.6% growth in May 2018
Jul 3 2018
According to Index of Eight Core Industries released by Ministry of Commerce and Industry, the growth
of eight core infrastructure industries has dropped to 10-month low of 3.6% in May 2018 due to decline in
production of crude oil and natural gas. This is the lowest growth rate since July 2017 when eight core
infrastructure industries had expanded by 2.9%. The growth rate recorded in April 2018 stood higher at
4.6%. In April and May 2018, the eight industries recorded 4.1% growth compared to 3.3% in same period
in 2017.
Sector wise breakaway in May 2018
Core industries
Core industries can be defined as main or key industries of the economy. In most countries, these
particular industry are backbone of all other industries. In India, there are eight core sectors comprising of
coal, crude oil, natural gas, petroleum refinery products, fertilisers, steel, cement and electricity. The eight
infrastructure sectors, constitute 40.27% of the total index of industrial production (IIP).
Manufacturing PMI: India’s manufacturing growth jumps to six-month high in June 2018
Jul 2 2018

According to Nikkei Manufacturing Purchasing Managers’ Index (PMI), compiled by IHS Markit, India’s
manufacturing growth jumps to six-month high in June 2018. Manufacturing PMI rose to 53.1 in June
2018 from 51.2 in May 2018, the highest since December 2017. This is the 11th consecutive month that the
manufacturing PMI remained above the 50-point mark. The reading above 50 on index denotes expansion
and less than that indicates contraction in activities.
index is constructed.
Implications for economy
PMI is usually released at start of month, much before most of official data on industrial output,
manufacturing and GDP growth is made available. It is, therefore, considered as good leading indicator of
economic activity. Manufacturing growth measured by PMI is considered good indicator of industrial
output.
Ravindra Dholakia committee: Government forms panel to upgrade norms for state, district level
economic data collection
Jul 2 2018 ankit saini | mindhunter786@gmail.com |
The Union Government has constituted 13-member Committee for Sub-National Accounts to upgrade the
norms for computation of economic data at states and districts level in backdrop of plans to revise the
base year for National Accounts or Gross Domestic Production (GDP) calculation. It will be headed by
Ravindra H Dholakia, a retired professor of IIM Ahmedabad.
Terms of Reference of the Committee
The committee will review concepts, definitions, classifications, data conventions, data sources and data
requirements for preparation of State Domestic Product (SDP) and District Domestic Product (DDP) and
to lay down revised guidelines. It will also suggest measures for improving SDP and DDP in the country
taking into consideration availability of data and requirements of Centre and States/UTs. It will also
suggest state level annual and benchmark surveys keeping in view needs of System of National Accounts
especially in view of next base year revision. It will submit its report within one year.
Background
The Central Statistics Office (CSO), under Ministry of Statistics and Programme Implementation (MOSPI)
revises the base year of macroeconomic indicators, as regular exercise, to capture structural changes in
economy and improve quality and representativeness of indices. CSO had last updated base year for GDP
calculation to 2011-12 from January 2015, replacing old series base year of 2004-05.
MOSPI is planning to change base year to 2017-18 for calculation of GDP and Index Industrial Production
(IIP) numbers from current 2011-12 with an aim to capture changes in the economy. At conference of
central and state statistical organisations (COCSSO) earlier this year, it was suggested that same
principles and concepts should be used while calculating SDP and DDP across the country to make data
comparable.
Banks Board Bureau recommends elevation of 15 executive directors as MD PSU bank
Jul 1 2018
The Banks Board Bureau (BBB) has recommended 15 executive directors to be elevated as managing
directors (MD) at various public sector banks (PSBs). It was headed by former Department of Personnel
and Training Secretary B P Sharma. These recommendations were based on interactions held by BBB and
are subject to various clearances. The Appointments Committee of Cabinet (ACC) headed by Prime
Minister will take the final decision in this regard.
BBB is advisory authority (autonomous and self-governing body) of Central Government comprising
eminent professionals and officials to improve governance of PSBs. It was announced by Union
Government in August 2015 as part of seven point Indradhanush Mission to revamp PSBs and based on
recommendations of RBI-appointed Nayak Committee. It is based in Mumbai, Maharashtra. The first BBB

was set up in February 2016 under chairmanship of former CAG Vinod Rai.
Mandate: Its broad agenda is to improve governance at state-owned lenders. Its mandate also involves
advising government on top-level appointments in PSBs and assisting banks with capital-raising plans
through innovative financial methods and instruments as well as strategies to deal with issues of stressed
assets or bad loans.
Composition: BBB comprises of Chairman, three ex-officio members (from government) and three expert
members, two of which are from private sector.
Global Real Estate Transparency Index: India ranks 35
Jun 29 2018
India was ranked 35th among 100 countries (countries) in recently released Global Real Estate
Transparency Index (GRETI). The index was released by realty consultant JLL. India was ranked 36th in
the index during the last bi-annual survey conducted in 2016 and 40th in 2014. Its real estate market is
currently placed in the ‘semi-transparent’ zone.
Global Real Estate Transparency Index
GRETI ranks 100 markets based on combination of quantitative market data and survey results across on
186 individual measures divided into 14 topic areas grouped and weighted into six broad sub-indices:
performance measurement (weightage 28.5%), market fundamentals (16.5%), governance of listed vehicles
(10%), regulatory and legal (25%), transaction process (15%) and sustainability (5%). The index scores
markets on scale of 1 (being highest possible score) to 5 (lowest score). Depending on their overall
performance, markets are assigned to one of five transparency tiers viz. highly transparent, transparent,
semi-transparent, low transparency and opaque.
Key Highlights of 2018 GRETI
Top 10 countries are: United Kingdom (1st), Australia (2nd), United States (3rd), France (4th), Canada (5th),
Netherlands (6th), New Zealand (7th), Germany (8th), Ireland (9th) and Sweden (10th).
Top 5 worst performers: Venezuela (100), Libya (99), Senegal (98), Mozambique (97) and Ivory Coast (96).
BRICS countries: South Africa was ranked at 21st position, followed by China (33rd), Brazil (37th) and
Russia (38th).
South Asia: Sri Lanka (66th position), Pakistan (75th).
India related Facts: In this edition of index, India has moved up one place due to improvement in market
fundamentals, policy reforms, and liberalisation of FDI. Besides, digitisation of property records and
industry status accorded to affordable housing also has helped India to improve its rankings. India has
emerged as one of the top ten countries to register maximum improvement in transparency in real estate
over the last two years
Second tranche of Bharat-22 ETF oversubscribed, receives bids worth Rs 15,436 crore
Jun 26 2018
The second tranche of Bharat-22 Exchange Traded Fund (ETF), comprising shares of 22 companies, has
received bids worth Rs. 15,436 crore, much higher than government’s fund raising target. The second
tranche was targeted to achieve fund mop up of Rs 6,000 crore with green-shoe option for another Rs.
2,400 crore.
Key Facts
At the end of the bidding of second tranche, the ETF was over-subscribed by 2.57 times base issue size of
Rs. 6,000 crore. Total of 1.2 lakh bids were made for the follow-on fund offer (FFO), attracting wide
participation across all investor segments. The government is also likely to exercise green-shoe option to
retain additional Rs 2,400 crore worth bids received.
Bharat-22 ETF
Bharat 22 is a well-diversified ETF spanning six sectors — basic materials, energy, finance, industrials,
FMCG and utilities. The sector wise weightage in the Bharat 22 Index is industrials (22.6%), finance
(20.3%), utilities (20%), energy (17.5%), FMCG (15.2%) and basic materials (4.4%). It was launched by Union
Government to meet some part of its disinvestment target of Rs. 80,000 crore in current fiscal.
The banking segment includes stocks from State Bank of India (SBI), Axis Bank, Bank of Baroda (BoB),

Indian Bank, Rural Electrification Corporation and Power Finance Corporation. The energy segment
includes Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation (IOC), Bharat Petroleum (BP),
and Coal India.
Exchange-traded funds (ETFs)

ETFs are essentially index funds that are listed and traded on exchanges like stocks. They are basically
basket of stocks with assigned weights that reflects the composition of an index. They are similar to
mutual funds in a certain manner but are more liquid as they can be sold quickly on stock exchanges like
shares. The ETFs trading value is based on the net asset value of the underlying stocks that it represents.
Their trading value is based on net asset value of the underlying stocks that it represents. Their price
changes daily as they are traded throughout day. ETF route is considered as safer mode of disinvestment
as it shields investors against stock market volatility.
RBI proposes Board of Management for urban co-operative banks
Jun 26 2018
The Reserve Bank of India (RBI) has proposed setting up of Board of Management (BoM) in all Urban Co-
operative Banks (UCBs) having deposits of over Rs 100 crore within one year to strengthen governance
and promote professional management in these banks.
BoM will be in addition to the Board of Directors (BoD). The BoD will continue to be apex policy setting
body and constitute various committees of board including BoM to assist it to carry out its functions.

Key Facts
Functions: BoM will look after all administrative functions of UCBs as spelt out in respective Co-
operatives Act. It will be responsible for credit, risk and liquidity management of UCBs. It will consider
loan proposals, recommend action for recovery of bad loans, implement sound internal controls and
oversee compliances, among others.
Composition: BoM will be constituted by BoD. BoM will have minimum of 3 members in UCBs having
deposit size up to Rs 100 crore and 5 members in UCBs having deposit size above Rs 100 crore. The
maximum number of members in BoM will not exceed 12. Not more than 50% of BoM members should be
from BoD. Under all circumstances, BoM should have atleast two members outside from BoD.
Criteria: 50% of the members of BoM will consists of persons having special knowledge or practical
experience in respect of one or more of the following matters such as accountancy, agriculture and rural
economy, banking, co-operation, economics, finance, law, small scale industry, information technology and
other matter the special knowledge useful to UCB.
Implementation: Existing UCBs having deposit size exceeding Rs 100 crore will set up BoM within period
of 1 year and banks less than it may constitute BoM within 2 years.
Background
The expert committee on licensing new urban co-operative banks (2010) constitued under chairmanship
of YH Malegam had recommended that BoMankit should be constituted in every UCB, in addition to BoDs. This
was reiterated by high powered committee on UCBs headed by R. Gandhi constituted in January 2015 by
RBI. Under the present legal framework, BoD of UCB performs both executive and supervisory roles and
has responsibility to oversee functioning of UCB as cooperative society and as a bank.
AIIB to invest $200 million into NIIF to boost infrastructure projects
Jun 25 2018
The Asian Infrastructure Investment Bank (AIIB) has approved investment of $200 million in India’s
National Investment & Infrastructure Fund (NIIF) to give greater impetus to mega infrastructure projects.
It will be investing US $100 million now and remaining $100 million in the time to come.
India: largest recipient of AIIB
AIIB so far approved $4.4 billion investments in 25 projects. Of these investments, $1.2 billion have been
approved for six infrastructure projects in India, making it largest recipient of funds from the multilateral
agency. AIIB is China led multilateral development bank set up in 2016. Its purpose is to provide finance to
infrastructure development and regional connectivity projects in Asia-Pacific region. It has 83 member
nations. India is second largest shareholder in AIIB after China. It is headquartered in Beijing, China.
National Investment and Infrastructure Fund (NIFF)
NIIF was set up in December 2015 to catalyse funding into the country’s infrastructure sector. It has been
registered with the Securities and Exchange Board of India as a Category II Alternate Investment Fund. It
has been set up as a fund of funds structure with aim to generate risk adjusted returns for its investors
alongside promoting infrastructure development.
It has targeted corpus of Rs 40,000 crore to be raised over the years — 49% of it will be funded by
government at any given point of time. The remaining 51% will be raised from domestic and global
investors, including international pension funds, sovereign wealth funds, multilateral/bilateral investors.
Its Governing Council is chaired by Finance Minister and has already been set up to act as an advisory
council to the NIIF.
Government releases draft on cross-border insolvency resolution
Jun 22 2018
The Ministry of Corporate Affairs has released draft on cross-border insolvency in order to strengthen
Insolvency and Bankruptcy Code (IBC). It will help banks access overseas assets of company undergoing
resolution. Similarly, Indian authorities will also be required to cooperate with foreign creditors to
domestic company.
Need
The existing IBC provides for two Sections –234 and 235 relating to cross border insolvency but these are
not adequate to effectively deal with default cases of domestic corporate debtor having assets and

operations outside India. In many of ongoing cases under IBC, several companies have assets and
operations outside India, for which legal framework is required to deal assets overseas.
Existing provisions only allow Central government to enter into agreement with foreign country for
enforcing provisions of Code. Second, the government can issue a letter of request to country outside
India seeking information. The draft norms have now been issued to plug these loopholes and have any
effective resolution mechanism in place for cross-border insolvency.
Key Facts
The draft on cross-border insolvency favours adoption of UNCITRAL (United Nations Commission on
International Trade Laws) Model Law on Cross-Border Insolvency, 1997. Under it, central government
after entering into agreement with other countries may bring overseas asset of domestic corporate debtor
into consideration of insolvency resolution in India. Initially, cross border insolvency framework will apply
only to corporate debtors, but later it will be extended to cases of personal insolvency resolution as well.
UNCITRAL Model Law on Cross-Border Insolvency, 1997
On global scale, this model law envisages balance between liquidation and reorganisation of global
companies going in for resolution. It has emerged as most widely accepted legal framework to deal with
cross-border insolvency issues while ensuring least intrusion into country’s domestic insolvency law. Due
to growing prevalence of multinational insolvencies, the model law has been adopted by 44 States till date,
including Singapore, UK, and US. ankit saini | mindhunter786@gmail.com |
India notifies higher tariffs on 29 items imported from US

Jun 22 2018
India has notified higher tariffs on 29 items imported from United States (US). This is was in retaliation
against US announcement imposing tariffs on steel and aluminium items — 25% and 10% respectively —
imported from all countries except Canada and Mexico in March 2018 to compensate from loss of revenue.
Key Facts
The 29 items includes agricultural products such as almonds, apples, chickpeas, lentils, and walnuts, and
industrial inputs such as some grades of iron and steel products. These higher tariffs amounting to $240
million will come into effect from August 2018, leaving room for further discussions between US and India
before new rates are implemented. It follows India’s notification to World Trade Organization (WTO) that
it was imposing additional tariffs on 30 items in retaliation for US duty on steel and aluminium. These
additional duties were aimed at helping government earn an additional $241 million, equivalent to amount
of iron and steel trade affected by US measures. The latest notification does not mention tariff hike on 800
cc (or more) motorcycles as it was earlier notified in 30 items list to WTO.
Women Wizards Rule Tech programme launched by NASSCOM to increase number of women in
senior levels in IT industry
Jun 20 2018
Indian IT industry’s apex body NASSCOM (National Association of Software & Services Companies) has

launched ‘Women Wizards Rule Tech’ programme to increase number of women in senior levels in
Information Technology (IT) industry. The programme was announced in March 2018 at Nasscom
Diversity and Inclusion Summit in Chennai as joint initiative by Nasscom Sector Skills Council and Data
Security Council of India.
Key Facts
The programme is designed to support women who are moving up in the career ladder and also pave the
way for potential leaders of the future. It will aid women techies in core technologies like IT-Information
Technology Enabled Services (ITES), product and research and development (R&D), Business Process
Management (BPM) sectors by equipping them with the skills required for an edge in their career
National Association of Software and Services Companies (NASSCOM)
NASSCOM is global non-profit trade association (organisation) of Indian Information Technology (IT) and
Business Process Outsourcing (BPO) industry. It facilitates business and trade in software and services
and encourages the advancement of research in software technology. It is registered under the Indian
Societies Act, 1860. Its headquarters are in New Delhi.
It has regional offices in Bengaluru, Chennai, Hyderabad, Kochi, Kolkata, Mumbai, Pune and
Thiruvananthapuram. The global IT trade body has over 2000 members, of which over 250 are companies
from the China, EU, Japan, US and UK. NASSCOM’s member companies are in the business of software
development, software services, software products, IT-enabled/BPO
ankit saini | mindhunter786@gmail.com | services and e-commerce.
IRDAI constitutes Suresh Mathur committee to review norms related to Insurance Marketing Firms
Jun 20 2018
The Insurance Regulatory and Development Authority (IRDAI) has set up 10-member committee to review
norms related to Insurance Marketing Firms (IMF) with an aim to increase insurance penetration in the
country. The committee will be headed by Suresh Mathur (ED-IMF, IRDAI).
Terms of Reference
The committee has been asked to revisit IRDAI (Registration of Insurance Marketing Firms) Regulations,
2015. It will recommend guidelines on areas on which regulations of IMFs are silent. It will also
recommend measures for strengthening distribution channel of IMFs by taking up products which fall
under jurisdiction of other financial sector regulators.
Background
IMF’s new distribution channel was introduced by IRDAI in 2015, with objective of increasing insurance
penetration through area-wise registration approach. The channel has now been in operation for three
years. The committee was constituted to review existing regulations essential for distribution channel to
evolve and fulfil the objective of spreading insurance coverage to all layers of the society.
Insurance Regulatory Authority of India (IRDA)
IRDA is an apex statutory body that regulates and develops the insurance industry in India. It was
constituted as per provisions of Insurance Regulatory and Development Authority Act, 1999. It is
headquartered in Hyderabad. Telangana.
Functions of IRDA: It protects rights of insurance policy holders, provide registration certification to life
insurance companies and renew, modify, cancel or suspend this registration certificate as and when
appropriate. It also promotes efficiency in conduct of insurance business, promotes and regulates
professional organisations connected with insurance and reinsurance business. It also regulate
investment of funds by insurance companies, adjudicates disputes between insurers and intermediaries or
insurance intermediaries.
Liberalised Remittance Scheme: RBI alters definition of relative to check outward remittances
Jun 19 2018
The Reserve Bank of India (RBI) has narrowed the definition of relatives under the ‘maintenance of close
relative’ category of Liberalised Remittance Scheme (LRS) to check outflow of funds and prevent misuse of
facility. Henceforth, funds under this category can be sent only to immediate relatives such as parents,
spouses, children and their spouses.
Key Facts
The definition of relatives under LRS has been now aligned with definition of relative with definition given

in Companies Act, 2013 instead of Companies Act, 1956. Outward remittances under maintenance of close
relatives had shot up to almost $3 billion in 2017-18 from mere $174 million in 2013-14. The funds sent
under this category have more than doubled since 2015-16. Overall outward remittances under LRS went
up to $11 billion from $1 billion in the same period. Earlier in June 2018, RBI had made PAN mandatory for
anyone using LRS for remitting money outside the country. Earlier PAN was not insisted upon for putting
current account transactions of up to $25,000.
Liberalised Remittance Scheme (LRS)
LRS is facility provided by RBI for all resident individuals including minors to freely remit upto certain
amount in terms of US Dollar for current and capital account purposes or combination of both. The
scheme was introduced in February 2004 and its regulations are provided under Foreign Exchange
Management Act (FEMA), 1999. After it was launched, the LRS limit was US $25,000, but it has been
revised in stages consistent with prevailing macro and micro economic conditions. At present, LRS limit
for all resident individuals, including minors, is US $2,50,000 (Rs. 1.5 crore) per financial year.
Under LRS, individuals can make remittances for overseas education, travel, medical treatment,
maintenance to relatives living abroad, gifting and donations. The remitted money can be used for
purchase of shares and property as well. Individuals can also open, maintain and hold foreign currency
accounts with overseas banks for carrying out transactions under it.
Restrictions: Under LRS, remittances cannot be used for trading on foreign exchange markets, purchase
of Foreign Currency Convertible Bonds issued abroad by Indian companies and margin or margin calls to
overseas exchanges and counterparties. Similarly, individuals are not allowed to send money to countries
identified as ‘non cooperative jurisdictions’ by Financial Action Task Force (FAFT). It also prohibits
remittances to entities identified as posing terrorist risks.
Banks Board Bureau recommends 22 GMs for elevation as executive directors at PSU banks
Jun 18 2018
Banks Board Bureau (BBB) has recommended 22 general managers to be elevated as executive directors at
the various public sector banks (PSBs). This is the first major exercise undertaken by reconstituted BBB,
headed by newly appointed Chairman BP Sharma, former Secretary, Department of Personnel and
Training.
These recommendations were based on interactions held by BBB with eligible candidates from PSBs
towards appointment against vacancies in PSBs for the period 2018-19. Now, Appointments Committee of
Cabinet (ACC) headed by Prime Minister will take the final decision in this regard.
BBB is super authority (autonomous and self-governing body) of Central Government comprising eminent
professionals and officials to improve governance of PSBs. It was announced by Union Government in
August 2015 as part of seven point Indradhanush Mission to revamp PSBs. It was set up in February 2016
under chairmanship of former CAG Vinod Rai based on recommendations of RBI-appointed Nayak
Committee. It is based in Mumbai, Maharashtra.
Mandate: Its broad agenda is to improve governance at state-owned lenders. Its mandate also involves
advising government on top-level appointments in PSBs and assisting banks with capital-raising plans
through innovative financial methods and instruments as well as strategies to deal with issues of stressed
assets or bad loans.
Composition: BBB comprises of three ex-officio members (from government) and three expert members,
two of which are from private sector in addition to Chairman.
India notifies WTO of its decision to impose higher import tariffs on 30 US goods
Jun 18 2018
India has notified World Trade Organisation (WTO) of its decision to impose higher import tariffs
(ranging from 20 to 50%) on 30 goods from United States. It includes motorcycles (engine capacity of
more than 800 cc), heavy machinery, certain iron and steel goods, boric acid as well as large number of
agro products such as almonds, shrimps and chocolates. It is expected to rake in additional $240 million to
India.

Key Facts
This will reportedly be the first time that India has imposed retaliatory import duties against US’s
unilateral protectionist policies that range from tighter visa regime to higher import duties. The proposed
increase in import duties is aimed at countering the impact of higher US tariffs on certain Indian steel and
aluminium products, which is going to put burden on $241 million on India.
India imposed retaliatory import duties after it received cold shoulder from US on its request for
exempting India from the higher tariffs announced by the US on steel and aluminium imports. India also
had dragged US to WTO dispute settlement mechanism over the imposition of import duties on steel and
aluminium. India’s exports of steel and aluminium products to US stood at about US $1.5 billion every year.
Its exports to US in 2016-17 stood at US $42.21 billion, while imports were US $22.3 billion.
RBI eases investment norms for foreign portfolio investors (FPIs) in debt
Jun 17 2018
The Reserve Bank of India (RBI) has eased investment norms for foreign portfolio investors (FPIs) in debt,
especially into individual large corporates. This move is aimed at attracting more overseas flows and
thereby help to arrest recent fall in rupee and also lift recent fall in demand for corporate bonds.
Key Facts
Corporate bond segment: FPIs are permitted to invest in corporate bonds with minimum residual
maturity of above 1 year. The short-term investments in corporate
ankit saini | mindhunter786@gmail.com | bonds by an FPI shall not exceed 20% of
total investment of that FPI in corporate bonds.
Government securities (G-secs): The FPIs cap on investment in Government securities (G-secs) has been
increased to 30% of outstanding stock of that security, from 20% earlier. FPIs were allowed to invest in
government bonds with minimum residual maturity of three years.
Removal of minimum residual maturity requirement: FPIs are permitted to invest in G-secs, including
treasury bills (T-bills), and SDLs without any minimum residual maturity requirement. However, it will be
subject to condition that short-term investments by FPI under either category shall not exceed 20% of
total investment of that FPI in that category. In this case, short-term investments are defined as
investments with residual maturity up to 1 year. The short-term investments by an FPI may exceed 20% of
total investments, only if the investments are entirely made on or before April 2018, and not made after it.
Foreign portfolio investment (FPI)
FPI consists of securities and other financial assets passively held by foreign investors. It does not provide
investor with direct ownership of financial assets. It is relatively liquid depending on volatility of the
market. In India, FPIs are allowed to invest in various debt market instruments such as government
bonds, treasury bills, state development loans (SDLs) and corporate bonds, but with certain restrictions
and limits. FPI is part of country’s capital account and shown on its balance of payments (BOP).
Differences between FPI and FDI
FPI lets investor purchase stocks, bonds or other financial assets in foreign country. In this case, investor
does not actively manage investments or companies that issue investment. It also does not have control
over securities or business. In contrast, FDI lets investor purchase direct business interest in foreign
country. The investor also controls his monetary investments and actively manages company into which
he puts money. FPI is more liquid and less risky than FDI.
TCS becomes first Company to close over Rs. 7 Trillion Market Cap
Jun 16 2018
India’s IT major Tata Consultancy Services (TCS) became first listed company in India to close day’s trade
with market capitalisation (m cap) of over Rs. 7 lakh crore (over $103 billion). M cap is value of company
that is traded on stock market, calculated by multiplying total number of shares by present share price.
Key Facts
TCS achieved this feat after its board approved share buyback of 76,190,476 equity shares of Rs. 1 face
value at Rs. 2,100 per share for about Rs. 16,000 crore (over $2 billion). The buyback size was 1.99% of the
total paid-up equity share capital.
This is second time the global software major resorted to buy back its shares after it bought 5.61 crore
shares in April 2017 for Rs. 16,000 crore at Rs. 2,850 per share.

The buyback was made from shareholders of Company on proportionate basis under tender offer route
using stock exchange mechanism in accordance with provisions contained in SEBI (Buy Back of Securities)
Regulations and Companies Act, 2013 and rules made thereunder.
SEBI constitutes Expert Committee frame rules for direct listing of Indian firms abroad
Jun 13 2018
The market regulator Securities and Exchange Board of India (Sebi) has constituted an expert committee
to recommend suitable framework to allow direct listing of Indian companies overseas bourses while also
allowing overseas companies to list directly on Indian bourses.
Terms of Reference of the Committee
The committee will examine in detail economic case for permitting direct listing of Indian companies
overseas and vice versa. It will also examine various legal, regulatory and operational constraints in
facilitating companies incorporated in India to directly list their equity share capital abroad and vice
versa. The committee will also make recommendations for a suitable framework in which to facilitate such
direct listing.
Background
Currently, Indian companies can only use the depository receipts route – Global Depository Receipts
(GDR) or American Depository Receipts (ADR) – to list on the overseas exchanges. Similarly, foreign
companies can access Indian capital marketsankitonly through Indian
saini | mindhunter786@gmail.com | Depository Receipts (IDRP) for listing of
equities. But there has been demand for facilitating companies incorporated in India to directly list their
equity share capital abroad and vice versa considering evolution and internationalisation of the capital
markets.
Securities and Exchange Board of India (SEBI)
SEBI is statutory regulator for securities market in India established in 1988. It was given statutory
powers through tSEBI Act, 1992. Its mandate is to protect interests of investors in securities, promote
development of securities market and to regulate securities market. It is headquartered in Mumbai,
Maharashtra.
SEBI is responsive to needs of three groups, which constitute market, issuers of securities, investors and
market intermediaries. It has three functions quasi-legislative (drafts regulations in its legislative
capacity), quasi-judicial (passes rulings and orders in its judicial capacity) and quasi-executive (conducts
investigation and enforcement action in its executive function).
SEBI constitutes Group to review Institutional Trading Platform (ITP) framework
Jun 13 2018
Market regulator Securities and Exchange Board of India (SEBI) has constituted Group to look into
existing Institutional Trading Platform (ITP) framework and suggest measures to facilitate listing of
startups. Its members include representatives from Indian Software Product Industry Round Table
(iSPIRT), Indian Private Equity and Venture Capital Association (IVCA), Indus Entrepreneurs (TIE), law
firms, merchant bankers and stock exchanges.
Terms of Reference of the Group
The group will look into existing ITP framework and suggest measures to facilitate listing of startups. It
will revisit current ITP framework and identify areas, if any, which require further changes. It will also
address issues relevant to ITP which group may like to assess. The group will submit report to SEBI within
period of one month i.e. by July 2018.
Institutional Trading Platform (ITP) framework
ITP framework is window on stock exchanges where e-commerce, data analytics, bio-technology and
other startups can list and trade on their shares. It allows companies to list without necessarily doing an
Initial Public Offer (IPO) of equity. SEBI had introduced it in 2013 to facilitate listing of new age companies,
but it had failed to gain any traction.
Benefits of listing on ITP
It facilitates capital raising by small and medium enterprises (SMEs) including start-up companies which
are in their early stages of growth. It provides easier entry and exit options for informed investors like
angel investors, Venture Capital Funds (VCFs) and Private Equities (PVs) etc. to and from such companies.

It also provide better visibility and wider investor base. It also relaxes compliance and cost effective listing
and provide tax benefits to long term Investors.
Credit Enhancement Fund: Government to launch Rs.500 crore fund
Jun 12 2018
Union Government is going to launch Rs.500 crore Credit Enhancement Fund (CEF) in July 2018 to
facilitate infrastructure investments by insurance and pension funds.
The CEF provides additional source of assaurance or gaurantee that borrower will service their loan. It
also helps borrower to raise loans at lower interest rates. The fund was first announced in Union Budget
for fiscal year 2016-17.
Credit Enhancement Fund (CEF)
CEF will provide credit enhancement for infrastructure projects which will help in upgrading credit
ratings of bonds issued by infrastructure companies and facilitate investment from investors like pension
and insurance funds.
The initial corpus of the fund will be Rs 500 crore and will be sponsored by IIFCL (India Infrastructure
Finance Company). It will operate as a non-banking finance company (NBFC). IIFCL will hold 22.5% stake in
the NBFC, while Asian Infrastructure Investment Bank (AIIB) has been offered by the Government to pick
up 10% stake.
Background ankit saini | mindhunter786@gmail.com |
At present, only $110 billion is being invested in infrastructure in India, against requirement of $200
billion, leading many analysts to classify India as infrastructure deficit country. Most of the present
infrastructure project financing is done by banking system. But all these lenders are saddled with problem
of non-performing assets (NPAs). So there is need for the private sector to be more active on the
infrastructure investment front. CEF will serve as alternative for rising of money for infrastructure
projects through corporate bonds.
FDI in India rises to US $61.96 billion in 2017-18: DIPP
Jun 9 2018
According to Department of Industrial Policy & Promotion (DIPP), foreign direct investment (FDI) in India
increased to US $61.96 billion in 2017-18. FDI inflow in previous fiscal was US $60 billion. In last four years
perod, FDI inflows has jumped to US 4222.75 billion from US $152 billion.
Key Facts
The main sectors that received maximum FDI were services, computer software and hardware,
telecommunications, construction, trading and automobile. Major sources of FDI to Indian included
Mauritius, Singapore, Japan, Netherlands, US, Germany, France and UAE.
However, according to recent UNCTAD (United Nations Conference on Trade and Development) report,
FDI to India decreased to US $40 billion in 2017 from US $44 billion in 2016, while outflows from India, the
main source of investment in South Asia, has doubled.
Background
Foreign investments including FDI are considered crucial for India as it needs around $1 trillion for
overhauling its infrastructure sector such as ports, airports and highways to boost growth. Strong inflow
of foreign investments mainly helps to improve the country’s balance of payments (BoP) situation and also
strengthen the rupee value against other global currencies, especially dominant US dollar. To attract
inflow of foreign investments, the central government has announced several measures including
liberalisation of FDI policy and improvement in business climate.
Public Credit Registry: New Information Repository to be set up by RBI
Jun 7 2018
The Reserve Bank of India (RBI) has announced that it will set up a Public Credit Registry (PCR) as a
repository of information regarding loan information of individuals and corporate borrowers. This
decision has been taken as per recommendations of Y.M. Deosthalee committee set up by the central bank.
Y.M. Deosthalee Committee Recommendations
The Y.M. Deosthalee committee was set up by RBI and had submitted its report in April, 2018. The major
recommendations of this committee report are as follows:

RBI should set up a Public Credit Registry in due course and this should be backed by a legal
framework. The central bank may also consider moving such registry to a separate non-profit entity.
PCR will work as a repository of all loan contracts, duly verified by reporting institutions for all / any
lending in India, regardless of the amount of the loan.
PCR should also capture data such as external commercial borrowings, market borrowings, and all
contingent liabilities; and should provide an holistic picture about the borrower’s indebtedness.
The registry should capture both positive and negative information about all loans. The borrowers
should also be able to access their own history.
The PCR data should be available to all stakeholders such as banks on a need-to-know basis. There
should be adequate safeguards on privacy protection.
Onus of data quality should be on reporting agencies and institutions and action should be taken
against the institutions in case of any violations in rules.
The database should also be linked to defaulter databases such as those maintained by Export Credit
Guarantee Corp. of India, GST network etc.
RBI Action
On 6 June,2018, RBI has disclosed the plans to establish the PCR in modular and phased manner. This
registry will distinguish between bad borrowers and good borrowers and will offer interest rates
accordingly. It will help in improving access to credit, strengthen the credit culture and strengthen the
banking system because at present, the corporate borrowers lend from multiple banks without disclosing
their existing debt.
RBI’s Monetary Policy Review: RBI Hikes Repo Rate to 6.25%
Jun 6 2018
On June 6, 2018, the six members Monetary Policy Committee (MPC) of RBI has decided to hike Repo
(short term lending rate) to 6.25% from 6.00%. As per the second Bi-monthly Monetary Policy Statement,
the current policy rates of RBI would be as follows:
Repo Rate: 6.25%
Reverse Repo Rate: 6.00%
Marginal Standing Facility (MSF) Rate: 6.50%
The recent rise of 25 basis points in key policy rates is for the first time in four and half years since NDA
government was formed in May, 2014.
Repo Rate
Repo rate, or repurchase rate, is the rate at which RBI lends to banks for short periods. This is done by RBI
buying government bonds from banks with an agreement to sell them back at a fixed rate. When RBI
increases Repo Rate, the banks can borrow less at a lower cost and thus need to lend at higher rates. This
contributes to hike of the interest rates in markets. When RBI increases the repo rate, the move is
generally called a tight monetary policy stance.
Reverse Repo Rate
Reverse repo rate is the rate of interest at which the RBI borrows funds from other banks in the short
term. This is done by RBI selling government bonds / securities to banks with the commitment to buy
them back at a future date. The banks use the reverse repo facility to deposit their short-term excess funds
with the RBI and earn interest on it. RBI can reduce liquidity in the banking system by increasing the rate
at which it borrows from banks. Hiking the repo and reverse repo rate ends up reducing the liquidity and
pushes up interest rates.
When the RBI increases the Reverse Repo, it means that now the RBI will provide extra interest on the
money which it borrows from the banks. An increase in reverse repo rate means that banks earn higher
returns by lending to RBI. This indicates a hike in the deposit rates.
Marginal Standing Facility
Marginal Standing Facility is a new Liquidity Adjustment Facility (LAF) window created by Reserve Bank
of India in 2011. MSF is the rate at which the banks are able to borrow overnight funds from RBI against the
approved government securities. The rate of interest on MSF is above 100 bps above the Repo Rate. The
banks can borrow up to 1 percent of their net demand and time liabilities (NDTL) from this facility.
Rs. 8500 Crore Bailout Package for Sugar Industry Approved

Jun 6 2018
The Union Cabinet chaired by Prime Minister has approved a Rs. 8500 Crore bailout package for the
distressed sugar industry in the country.
Background
India is world’s second largest sugar producer after Brazil with production of around 20-25 million tonnes
of sugar every year. The sugar production was 25.13 million tonnes in 2015-16 sugar season (sugar season
~ October to September); 20.2 million tonnes in 2016-17, 25 million tonnes in 2017-18 and is expected to be
around 30 million tonnes in 2018-19. Currently, UP is India’s foremost sugar producing state and it is
likely to maintain this position for the next two years. Maharashtra is on number 2 in production of both
sugarcane as well as sugar.
The bumper harvest of sugarcane has created problem of plenty for already troubled cane farmers, sugar
mills as well as governments at centre and state. The sugar mills need to buy cane from farmers at state
advised price (SAP) but have to sell their produce at either marginal cost above production or in loss. Thus,
higher price purchase of sugarcane but low price sale of sugar in open market creates stress on sugar
mills and they are unable to make payments to farmers. This leads to accumulation of arrears.
Government Efforts
Though government decontrolled sugar industry partially in |2013 and allowed them to sell their produce
in open market, the sugar industry faces a bizarre problem that price of its raw material (cane) is fixed by
state and central governments as State Advised Price (SAP) and Fair and Remunerative Price (FRP)
respectively. The government supported cane prices are attractive to farmers, but loss due to any fall in
the prices of sugar in open market has to be borne by the sugar industry. Further, absence of
infrastructure for ethanol production makes sure that the surplus production of sugarcane is not
optimally absorbed.
Current Package
This package announced on June 6, 2018 includes Rs. 4500 crore soft loan for building ethanol production
capacity and Rs. 1540-crore production-linked direct payments to cane farmers by sugar mills. Further,
government has also hiked import duty on sugar to curb the problem of plenty. Government has also
decided to create some kind of stock of sugar.
India receives first shipment of cheapest LNG from Gazprom Russia
Jun 4 2018
On June 4, 2018, India received first shipment of its so far cheapest Liquefied Natural Gas (LNG) from
Russian supplier Gazprom. The LNG has been delivered at a price close to USD 7 per million British
Thermal Unit (mmBtu). This price is around 1.5 USD cheaper from the LNG imported from Qatar, which is
India’s oldest and largest supplier of LNG. This price is also 1-1.5 USD per mmBtu cheaper than the LNG
sourced from Australia and United States.
India’s Natural Gas Production and Import
According to official data, India’s total natural gas production in 2017-18 was 32.64 billion cubic meter of
which 22.01 BCM is offshore production while 10.63% is onshore production. The natural gas production in
India has fallen in recent years as shown in below graphics:

However, at present, close to half of Natural Gas demand is fulfilled by imports. India’s natural gas import
dependence in 2016-17 was close to 45%. At present, India is fourth largest importer of LNG.
Natural Gas is one of the key inputs for generation of power and manufacturing products in fertilizer and
steel industries. The current government policy also pushes towards a gas-based economy by raising the
share of environment friendly fuel in the energy basket to 15 per cent from current 6.2 per cent.
India’s Gas Deals
At present, Qatar is biggest supplier of Natural Gas to India. The recent shipment from Russia has come
under a 20 year deal between India’s State-owned gas company GAIL India Ltd and Russian supplier
Gazprom. A few weeks before India had also imported its first ever LNG cargo from US under a long-term
import deal. The government policy is to expand the LNG import basket to meet any contingency due to
geopolitical or economic reasons.
Financial Literacy Week starts with theme ‘Customer Protection’
Jun 4 2018
Reserve Bank of India is conducting Financial Literacy Week from June 4 on the theme ‘Customer
Protection’. The week-long event is to focus on creating awareness among customers of banks. According
to RBI, the event will emphasise on awareness about different financial products, services, digital
applications and good financial practices.
About Financial Literacy Week
RBI had introduced financial literacy week in 2016 to create a large scale awareness on key topics.
Non-Governmental Organisations collaborate with banks and made this initiative successful in the
past two years. Last year’s theme of the week was, ‘Know Your Customer’.
The focus of this year is consumer protection messages like, Know your liability. The customers will
be educated upon the safe digital banking practices. RBI underlines that, in cases of unauthorised
electronic banking transactions when informed in 3 days, the liability of account holder is zero.
RBI says that resolution of such transactions will be the responsibility of the concerned bank. The
bank should resolve the issue as soon as possible within 90 days from the day of receipt of the
complaint. Other focus point of financial Literacy week includes, creating awareness about Banking
Ombudsman Scheme of RBI.
Bankers, Financial Literacy Counsellors and other stake holders will be the major participants in the event.
Core industries register 4.7% growth in April 2018
Jun 1 2018
According to index of eight core industries released by Ministry of Commerce and Industry, eight core
infrastructure sectors grew by 4.7% higher in April 2018. It was driven by healthy performance in
segments like coal, natural gas and cement.

Sector wise breakaway in April 2018

Coal production: Increased by 2.6%.
Crude Oil production: Declined by 0.8%.
Natural Gas production: Increased by 7.4%.
Petroleum Refinery production: Increased by 2.7%.
Fertilizers production: Increased by 4.6%.
Steel production: Increased by 3.5%
Cement production: Increased by 16.6%.
Electricity generation: Increased by 2.2%.
Core industries
Core industries can be defined as main or key industries of the economy. In most countries, these
particular industry are backbone of all other industries. In India, there are eight core sectors comprising of
coal, crude oil, natural gas, petroleum refinery products, fertilisers, steel, cement and electricity. The eight
infrastructure sectors, constitute 40.27% of the total index of industrial production (IIP).
Swadeshi Samriddhi SIM cards: Baba Ramdev’s Patanjali ties up with BSNL
May 29 2018
Baba Ramdev’s Patanjali has tied up with state owned Bharat Sanchar Nigam Ltd (BSNL) to launch
Swadeshi Samriddhi SIM cards. With this, India’s most trusted Fast Moving Consumer Goods (FMCG)
brand has entered in to telecom sector after gaining popularity in the consumer goods market
Key Facts
Swadeshi Samriddhi SIM cards can be recharged for Rs. 144, for which users will get unlimited calls
throughout country, 2 GB data and send 100 SMSes. Initially only Patanjali employees and office bearers
will get benefits of SIM card. After complete rollout of SIM cards, customers will get a 10% discount on
Patanjali products. The SIM card also comes with medical insurance and life insurance covers. The
medical insurance cover is for Rs 2.5 lakh, while life insurance costs Rs 5 lakh. The covers can only be
availed in event of road accident.
NASSCOM establishes India’s second Digital Collaborative Opportunities Plaza in China
May 28 2018
India’s National Association of Software and Services Companies (NASSCOM) has established second
Digital Collaborative Opportunities Plaza (SIDCOP) platform in Guiyang, China. It is India’s second IT
corridor in China to provide Indian IT firms access to growing Chinese software market. The first corridor
Digital Collaborative Opportunities Plaza (SIDCOP) platform was established in Chinese port city of
Dalian.
Key Facts
The Guiyang corridor will focus on Big Data, whereas earlier launched Dalian corridor focused on Internet
of Things (IoT). The Guiyang corridor intends to create online and offline presence to promote co-create
culture between two large neighbours in Big Data space. It is aimed at setting up local offices and
assisting companies from Guiyang to establish software and IT units in India. This initiative will give big
impetus to cooperation between India and China in IT-enabled services (ITES) sector. Soon after launch of
second IT corridor, Indian IT companies signed agreement worth US $6 million with Chinese customers.
The pilot projects launched on SIDCOP platform will be executed over next year.
Background
Indian IT firms have presence in more than 70 countries in the world, generating employment for up to 12
million people worldwide. In China, Indian IT companies are present in 10 cities with total work-force of
around 25,000 employees. In 2013, Ministry of Industry and Information Technology of China had valued
country’s IT market at over US $493 billion. For India, getting access to China’s IT market is important to
address massive trade deficit which has now spiralled to over US $51 billion. India has been demanding
China to provide market access to Indian IT and pharmaceutical firms for several years to reduce bilateral
trade deficit.
TCS becomes first company to achieve 7 lakh crore market capitalisation milestone
May 26 2018
Tata Consultancy Services (TCS), the country’s most valued and largest IT outsourcing company created
history by becoming the first Indian company to reach Rs. 7 lakh crore market capitalisation (m-cap)
milestone. M-cap is value of company that is traded on stock market, calculated by multiplying total
number of shares by present share price.
Key Facts
TCS achieved this milestone, after its stock zoomed to fresh all-time high of Rs. 3,674 in intraday session
on Bombay Stock Exchange (BSE), taking its market valuation to around Rs 7,00,236.83 crore. The m-cap
has been calculated from its 52-week high price of Rs 3,674 on BSE.
TCS’s market valuation had earlier surged past Rs. 6 lakh crore ($100 billion) mark, making it second
company to achieve milestone after Reliance Industries. Now it is country’s most valued firm, followed by
Reliance Industries with market capitalisation of Rs. 5,83,908.87 crore, HDFC Bank (Rs 5,19,654.83 crore),
HUL (Rs 3,42,244.47 crore) and ITC (Rs 3,30,919.46 crore) in the top five list.
SIDBI, CSC SPV ink MoU to provide financial support to village level entrepreneurs
May 25 2018
Small Industries Development Bank of Indiaankit(SIDBI) and Common Service Centres (CSC) Special Purpose
Vehicle (SPV) signed MoU for providing financial support village level entrepreneurs in CSCs. Through the
MoU, SIDBI will extend financial support to VLEs of CSCs, with minimum one year of operation, under its
Direct Financing Window.
Key Facts
Through the MoU, both CSC SPV and SIDBI seek to work together to bring more citizens under ambit of
financial inclusion. Moreover, it will also aim to enhance financial viability of CSCs by including additional
services in their bouquet of products.
Under Direct Financing Window, CSC SPV will approve list of VLEs, within 25 km distance of SIDBI
Branch Offices, who require financial support. To avail loan, VLEs need to submit their CSC project, with
maximum project outlay of Rs. 3.50 lakh and term loan requirement not exceeding Rs. 2 lakh per project.
Common Service Centres (CSC)
CSC is an initiative of Ministry of Electronics & IT (MeitY). It is strategic cornerstone of the Digital India
programme. It is pan-India network catering to regional, geographic, linguistic and cultural diversity of
country, thus enabling Government’s mandate of a socially, financially and digitally inclusive society.
There are as many as 2.91 lakh CSCs operate in the country today. They are mostly ICT enabled front end
service delivery points at village level for delivery of government and private services. These CSCs serve
as access points for delivery of essential public utility services, social welfare schemes, financial,
healthcare, education and agriculture services, apart from host of B2C services to citizens in rural and
remote areas of the country.
Small Industries Development Bank of India (SIDBI)
SIDBI is principal development financial institution for promotion, financing and development of Micro,
Small and Medium Enterprises (MSME) sector in India. It was established on April 2, 1990 through an Act
of Parliament (thus, it is statutory body). It is headquartered in Lucknow, Uttar Pradesh. It facilitates and
strengthens credit flow to MSMEs and address both financial and developmental gaps in MSME eco-
system across the country.
MCX launches India’s first copper options contracts
May 22 2018
India’s largest commodities exchange platform, Multi Commodity Exchange of India Limited (MCX)
launched country’s first copper options contracts. The option contract will provide physical market
participants additional instrument to hedge their price risk. The copper option contracts were launched
with lot size of 1 tonne in three contracts expiring in June, August and November 2018.
Background
Copper is third-most-consumed industrial metal in the world, after iron and aluminium. In last few years,

world’s refined copper usage has surged, owing to growing demand in sectors like electrical and electronic
products, industrial machinery and equipment, building construction, transportation equipment and
consumer and general products. Copper ore production in India stood at 3,846 thousand tonnes in 2016-17
and its consumption demand for refined copper was 820 thousand tonnes in the FY16.
Options
Options are an instrument that gives buyer right to buy or sell an underlined at present price on a future date. They
are of two types: puts (right to sell) and calls (right to buy). According to market experts, options are also a much
better hedging instrument as compared to futures for hedgers.
Significance of copper options contracts

It will provide optimal tool for stakeholders to hedge and mitigate price risk in copper. It gives copper
industry greater flexibility with alternative opportunities to take on price risk. It will help corporates to do
better budgeting exercise as premiums will be known. This will help us to procure material at prices that
have been envisaged specially in situations like tender or open orders. It will also complement current
futures contracts on MCX and bring greater vibrancy to metals market and give stakeholders opportunity
to better manage their price risk.
Multi Commodity Exchange (MCX)
MCX is country’s first listed commodity futures exchange that facilitates online trading, and clearing and
settlement of commodity futures transactions, thereby providing platform for risk management. It was
launched in November 2003 and operates within regulatory framework of Forward Contracts Regulation
Act, 1952 (FCRA, 1952) under SEBI. MCX offers futures trading in bullion, ferrous and non-ferrous metals,
energy, and a number of agricultural commodities (mentha oil, cardamom, potatoes, palm oil and others).
Globally, MCX ranks no. 1 in silver, no. 2 in natural gas, no. 3 in crude oil and gold in futures trading.
India is 6th wealthiest country in the world
May 21 2018
According to AfrAsia Bank Global Wealth Migration Review, India is the sixth wealthiest country in the
world with total wealth of $8,230 billion. US is richest nation globally with total wealth of $62,584 billion.
Total wealth refers to private wealth held by all individuals living in each country. It includes all their
assets (cash, equities, property, business interests) less any liabilities. It excludes government funds.
Key Facts
Top 10 wealthiest countries: US ($62,584 billion), China ($24,803 billion), Japan ($19,522 billion), UK ($9,919
billion), Germany
($9,660 billion), India ($8,230 billion), Australia ($6,142 billion), Canada ($6,393 billion), France
($6,649 billion) and Italy ($4,276 billion).
Global Wealth: Globally, total private wealth held worldwide amounts to around $215 trillion and there are
around 15.2 million High Net Worth Individuals (HNWIs) in world, each with net assets of $1 million or
more. There are about 584,000 multi-millionaires in world, each with net assets of $10 million or more and
2,252 billionaires in world, each with net assets of $1 billion or more.

India: Factors that will help India in wealth creation include, good educational system, large number of
entrepreneurs, robust outlook for Information Technology (IT), business process outsourcing, real estate,
healthcare and media sectors which will result in 200% rise 10 year wealth growth forecast. Over the next
10 years, India will overtake Germany and the UK to become the 4th largest wealth market worldwide by
2027.
China: In the coming decade, it will witness significant rise in total wealth to $69,449 billion by 2027,
while wealth of US would be around $75,101 billion.
India drags US to WTO over imposition of duties
May 20 2018
India has dragged United States (US) to World Trade Organisation’s (WTO) Dispute Settlement
Mechanism over imposition of import duties on steel and aluminium. India stated that decision will of
imposition of import duties impact its exports of these products to US and is not in compliance with
global trade norms.
Key Facts
India has sought consultations with US as first step of dispute settlement process under the WTO’s
dispute settlement mechanism. If the two nations are not able to reach mutually agreed solution through
consultation, India may request for WTO dispute settlement panel to review matter.
Background
In March 2018, US President Donald Trump had imposed heavy import tariffs on imported steel and
aluminium items, a move that has sparked fears of global trade war. He had signed two proclamations that
levied 25% tariff on steel and 10% tariff on aluminium imported from all countries except Canada and
Mexico. India had sought exemptions from the hefty tariffs. US decision had not only impacted India’s
export of these goods but also affected global trade. India’s exports of steel and aluminium products to US
stood at about US $1.5 billion every year. India and US are already involved in disputes at WTO, a global
trade body. The disputes are in the areas of poultry, solar and steel. US recently had filed dispute against
India on export incentives alleging these support measures harm its workers by creating an uneven
playing field.
India’s economy is projected to grow 7.6% in 2018-19: UN WESP
May 18 2018
According to UN World Economic Situation and Prospects (WESP), India’s economy is projected to grow
7.6% in fiscal year 2018-19, making it fastest growing economy in the world. GDP growth in India is
expected 7.5 and 7.6% in fiscal years 2017-18 and 2018-19 respectively.
World economy: It is projected to reach 3.2% both in 2018 and 2019, an upward revision by 0.2 and 0.1%,
respectively. Global GDP is expected to expand, reflecting strong growth in developed countries and
broadly favourable investment conditions. However rising trade tensions, heightened uncertainty over
monetary policy, increasing debt levels and greater geopolitical tensions can potentially thwart growth
progress.
World trade growth: It also has accelerated, reflecting widespread increase in global demand. Many
commodity-exporting countries will also benefit from the higher level of energy and metal prices. The
modest rise in global commodity prices will exert some upward pressure on inflation in many countries.
But the inflationary pressures remain contained across most developed and developing regions.
India: GDP growth is expected 7.5 and 7.6% in fiscal years 2017-18 and 2018-19 respectively. This is a
substantial recovery from 6.7% growth India registered in fiscal year 2017. Growth in India is gaining
momentum, underpinned by robust private consumption, slightly more supportive fiscal stance and
benefits from past reforms. Though capital spending in India has shown signs of revival, more widespread
and sustained recovery in private investment remains crucial challenge in India.
China: It is projected to gradually moderate from 6.9% in 2017 to 6.5% in 2018 and 6.3% in 2019. Its growth
is expected to remain solid, supported by robust consumer spending and supportive fiscal policies

followed by ongoing structural reforms.

South Asia: GDP growth in region is expected to strengthen to 6.6% in 2018 and 6.8% in 2019, following an
expansion of 6% in 2017. It remains favourable, amid robust domestic demand, strong infrastructure
investment and moderately accommodative monetary policies. Moreover, regional inflation is anticipated
to remain stable and at relatively low levels.
UN World Economic Situation and Prospects (WESP)
The report is joint product of UN Department of Economic and Social Affairs (UN/DESA), UN Conference
on Trade and Development (UNCTAD) and five United Nations regional commissions.
RBI tweaks norms for setting up of IFSC Banking Units
May 18 2018
The Reserve Bank of India (RBI) has modified norms for setting up International Financial Services
Centres (IFSC) Banking Units (IBUs) by banks in IFSCs. In April 2015, RBI had formulated scheme for
setting up of IFSC IBUs by banks in IFSCs.
Key Facts
The modification makes mandatory for parent bank to provide and maintain at all times minimum capital
of US $ 20 million or equivalent in any foreign currency to its IBU. However, minimum prescribed
regulatory capital, including for exposures of IBU, should be maintained on on-going basis at parent level.
Moreover, parent bank will be also required ankit saini |to provide Letter
mindhunter786@gmail.com | of Comfort for extending financial
assistance, as and when required, in the form of capital/liquidity support to IBU. The guidelines are
applicable to IBUs set up in Gujarat International Finance Tec-City (GIFT) as well as in other IFSCs which
may be set up in India.
The modification was made based on suggestions from stakeholders to consider minimum prescribed
regulatory capital at parent level rather than at IBU level. The government has set up an IFSC in Gujarat
namely Gujarat International Finance Tec-City (GIFT) in Gandhinagar, Gujarat.
BSE becomes first Indian stock exchange to get US SEC’s DOSM recognition
May 17 2018
BSE Ltd (earlier known as Bombay Stock Exchange) became first Indian exchange to be designated as
Designated Offshore Securities Market (DOSM) by United States Securities and Exchange Commission (US-
SEC).
Key Facts
DOSM status will allow sale of securities to US investors through trading venue of BSE without
registration of such securities with US SEC. This will ease trades by US investors in India and also
enhance attractiveness of Indian Depository Receipts (IDRs) amongst US investors.
The new status is also expected to primarily benefit securities issued in US private placements to
institutional investors. Moreover, it will provide liquid resale market which will exempt offerings by BSE-
listed companies, making them more attractive to US investors.
DOSM status will also provide additional benefits to companies whose securities are traded both in US
and on BSE. It will allow certain directors and officers of dual-listed companies to resell their securities on
BSE, regardless of any restrictions or holding periods that may apply under US securities laws.
Bombay Stock Exchange (BSE)
BSE is Indian stock exchange located at Dalal Street, Mumbai (Maharashtra). It was established in 1875
(founded by Premchand Roychand as Native Share & Stock Brokers’ Association), making it Asia’s first
stock exchange. It was first Indian stock exchange to be recognized by Government under the Securities
Contracts Regulation Act in 1957. It has established India’s first international exchange India INX in
December 2016 in GIFT city, Gujarat.
BSE’s popular equity index -S&P BSE SENSEX is India’s most widely tracked stock market benchmark
index. BSE also provides host of services to capital market participants including risk management,
clearing, settlement, market data services and education.
BSE is the world’s 12th largest stock exchange with overall market capitalization of more than $ 2 trillion
as of July, 2017. It also claims to be world’s fastest stock exchange, with median trade speed of 6
microseconds. It is also a Partner Exchange of United Nations Sustainable Stock Exchange initiative,
joining in September 2012.

BSE is first exchange in India and second in world to obtain an ISO 9001:2000 certification. It is also first
Exchange in India and second in world to receive Information Security Management System Standard BS
7799-2-2002 certification for its On-Line trading System (BOLT).
Bharat Inclusion Initiative: IIM Ahmedabad unveils $25 million initiative to fund start-ups
May 16 2018
Indian Institute of Management Ahmedabad’s (IIMA’s) centre for innovation, incubation and
entrepreneurship (CIIE) has launched $25 million ‘Bharat Inclusion Initiative’ to fund start-ups. CIIE was
founded at IIMA to support entrepreneurs and turn business ideas into viable businesses models. It
partners with industry experts, mentors, corporates, IIMA community and investors to help incubate
early-stage start-ups.
Key Facts
CIIE’s ‘Bharat Inclusion Seed Fund’ aims to provide continuum of solutions to inclusion focused tech
entrepreneurs across the pre-incubation, seed and scale-up stage and help them jump to the next orbit. It
will mentor and invest in start-ups in the early stage and seed segment over the next three-four years. The
fund will look at start-ups in areas such as financial inclusion, livelihood, education, agriculture, and
health. It has set aside $22.5 million to invest in pre-Series A technology start-ups. The initiative has
received initial pledge of $12.5 million fromankitBill
and Melinda Gates Foundation, Michael and Susan Dell
Foundation and Omidyar Network.
India emerges third largest solar market in the world in 2017
May 16 2018
According to recently released report by Mercom Communications, India emerged as third largest solar
market in world in 2017 behind China and United States. Mercom Communications India is arm of global
clean energy consulting firm Mercom Capital Group.
India has set new record with 9.6 GW of solar installations in 2017, which was more than double the 4.3
GW installed in 2016. In 2017, India’s solar market had grown at Compound Annual Growth Rate (CAGR) of
approximately 170% since 2010. The robust growth boosted India’s total solar installed capacity to 19.6 GW
as of December 2017. As of 2017-end, large-scale solar project development accounted for 92% of the all-
time cumulative solar installations in India with 19.6 GW and 2017 alone made up 90% of such installations
with 8.6 GW. Of the total 1.6 GW cumulative solar rooftop installations in India by 2017, 995 MW was
installed last year.
China launches first India-dedicated investment fund
May 15 2018
The Industrial and Commercial Bank of China (ICBC), a top state-run Chinese bank has launched China’s
first India-dedicated publicly offered investment fund. The fund has been named as Industrial and
Commercial Bank Credit Suisse India Market Fund. ICBC is the largest in the world with over $3.6 trillion in
assets.
Key Facts
The ICBC Credit Suisse Indian Market Fund (LOF) will invest in exchange-traded funds listed on more
than 20 exchanges in Europe and US that are based on the Indian market. It will invest in future of Indian
economy and track distribution of industrial structure across Indian market. For this, ICBC has listed
sectors for investments specifically, in terms of the major industries weighted distribution of the index.
The financial industry accounts for highest proportion, followed by information technology, alternative
consumption, energy, essential consumption, raw materials, medicine, healthcare and other industries.
Signifiance
The fund opens way for Chinese investors and provided good tool for low-threshold investment in India. It
is also regarded as significant by observers to boost investments in India and comes after first ever
informal summit between Prime Minister Narendra Modi and Chinese President Xi Jinping at Wuhan,
where two leaders sought to give a new direction to bilateral ties to tap their economic potential.

Three million new jobs by 2030 to offset employment loss due to rising heat: ILO Report
May 15 2018
International Labour Organization’s (ILO’s) World Employment and Social Outlook Report has that
projected increase in surface temperature due to global warming will lead to around 2,59,000 job losses in
India by 2030, especially in carbon-and resource-intensive industries.
Key Facts
According to report, global temperature rise of 1.5°C by end of 21st century will result in heat stress, which
will reduce total number of working hours by 2030. It will also result in 5.3% rise work loss in percentage
of total hours and productivity loss equivalent to 30.8 million full-time jobs. Environmental degradation
will affect job opportunities and also affect productivity, reduce total number of working hours.
But the loss of jobs due to global warming will be offset by creation of around 3 million jobs as India moves
towards green economy by adopting sustainable practices, including changes in energy mix, projected
growth in use of electric vehicles and increase in energy efficiency in existing and future buildings.
Agricultural workers will be worst affected due to temperature rise, accounting for loss of around 64% of
working hours lost due to heat stress in India in 2030 in view of physical nature of their work. In India, an
estimated 4.2% of total hours worked were lost in 1995 due to high heat levels, representing around 15.1
million full-time jobs. All the sectors except mining industry will experience increase in employment.
Renewables sector will experience increase 1.5 million jobs, construction sector will see increase in
466,200 jobs and 285,200 new jobs in services.
India was world’s largest remittance-receiving country in 2017: Repot
May 14 2018
According to recently released report ‘RemitSCOPE – Remittance markets and opportunities – Asia and
the Pacific’, India was largest remittance receiving country in the world with US $69 billion in 2017. Top
five remittance receiving countries in 2017 in the world were India ($69 billion), China ($64 billion) and
Philippines ($33 billion), Pakistan ($20 billion), and Vietnam ($14 billion).
Asia-Pacific region: Remittances to Asia-Pacific region amounted to US $256 billion in 2017. It
represented 53% of flows worldwide, growing 4.87% since 2008, with rates flattening in recent years.
About 70% of remittances sent to Asia and Pacific came from outside region and in particular from Gulf
States (32%), North America (26%) and Europe (12%).
Remittances contribute to region more than 10 times official development assistance. 400 million people
in region i.e. one out of every 10 people, are directly affected by remittances either as sender or as receiver.
It benefits about 320 million family members in the region, most of them in rural areas.
Remittances and Rural Development: Remittances are particularly crucial in rural areas where poverty is
highest. Worldwide, an estimated 40% of total value of remittances goes to rural areas. In Asia-Pacific
region, remittances go disproportionally to countries with majority of rural populations such as Nepal
(81%), India (67%), Vietnam (66%), Bangladesh (65%), Pakistan (61%) and the Philippines (56%). Remittances
to rural areas are generally costlier due to expenses associated with offering access points in distant
locations.
Usage of Remittances: 70% of remittances in the Asia pacific region are used to meet basic needs, such as
food, clothing, healthcare and education. The remaining 30% can be saved and invested in asset-building
or income-generating activities, helping families to build livelihoods and their future.
Improvement of remittance markets: It still needs to be transformed to ensure that families can benefit
fully from the flows. Technological innovation in remittance marketplace can bring about fundamental
transformation for hundreds of millions benefiting from these flows. Moreover, outdated regulatory
barriers on both sending and receiving ends is resulting in higher and less transparent costs which make
it less likely and more difficult to convert remittances into savings and investments. Besides, financial
inclusion which has increased in recent times has not fully represented reality of substantial majority of
remittance receiving families in Asia-Pacific region where financial exclusion remains predominant.

RBI puts Dena Bank under prompt corrective action

May 12 2018
Reserve Bank of India (RBI) has put state-run lender Dena Bank under prompt corrective action (PCA)
framework. It has barred Dena Bank from extending fresh credit in view of deteriorating financial health
due to mounting non-performing assets (NPAs) and mounting losses. It makes Dena Bank first lender to
face curbs on lending under PCA framework.
Key Facts
This means Dena bank can disburse loans for credit facilities already sanctioned, but cannot sanction
fresh loans. In addition, RBI also has barred from recruiting more staff. RBI may lift these restrictions in
case the bank improves profitability and reduces the ratio of bad loans.
Background
In May 2017, RBI had placed Dena Bank under PCA framework, which had imposed restrictions including
ban on dividend payments. Despite earlier restrictions, the financial health of Dena bank had not shown
any signs of improvement, prompting the banking regulator to freeze fresh lending.
Dena bank’s loss had widened to Rs. 1,225.42 crore compared with previous year, when the loss was Rs.
575.26 crore. For financial year 2017-18, it had posted a net loss of ₹1,923.15 crore. This was third
consecutive year bank has posted a net loss. Moreover, its gross NPAs as percentage of gross advances,
was 22.4% as on end March 2018 as compared ankitwith 16.17% year| earlier. In absolute terms, bad loans rose to
saini | mindhunter786@gmail.com
Rs. 16,361.44 crore from Rs. 12,618.73 crore. The bank’s net NPAs were up to 11.95% or Rs. 7,838.78 crore
from 10.66% or Rs. 7,735.12 crore.
Prompt Corrective Action (PCA) framework
PCA is process or mechanism to ensure that banks don’t go bust. Under it, RBI has put in place some
trigger points to assess, monitor, control and take corrective actions on banks which are weak and
troubled. It was first introduced after global economy incurred huge losses due to failure of financial
institutions during 1980s-90s.
Parameters for placing under PCA framework are Capital ratios, Asset Quality and Profitability. Indicators
to be tracked for these three parameters are CRAR (Capital to Risk weighted Assets Ratio)/Common
Equity Tier I ratio, Net NPA (non-performing assets) ratio and Return on Assets (RoA) respectively. If
banks breach of any risk threshold mentioned above, it results in invocation of PCA against them.
RBI enforces these guidelines to ensure banks do not go bust and follow prompt measures to put their
house in order. It has tightened its PCA framework in April 2017 to turn around lenders with weak
operational and financial metrics, Depending on the risk thresholds set in PCA rules, banks placed under it
are restricted from expanding number of branches, staff recruitment and increasing size of their loan
book. Other restrictions include higher provisions for bad loans and disbursal only to those companies
whose borrowing is above investment grades.
India to grow 7.4% in 2018: IMF’s Asia & Pacific Regional Economic Outlook report
May 10 2018
The International Monetary Fund (IMF) in its Asia and Pacific Regional Economic Outlook report has
reaffirmed that India will be the fastest growing major economy in 2018, with growth rate of 7.4% and
7.8% in 2019.
Key Facts
India’s medium-term growth prospects remain positive. India is recovering from effects of
demonetisation and introduction of Goods and Services Tax (GST). The recovery is expected to be
underpinned by rebound from transitory shocks as well as robust private consumption.
Medium-term consumer price index inflation is forecasted to remain within but closer to upper bound of
Reserve Bank of India’s (RBI) inflation-targeting band of 4% with a plus or minus 2% change. Given
increased inflation pressure, monetary policy should maintain a tightening bias. India’s current account
deficit in fiscal year 2017-18 is expected to widen somewhat but will remain modest, financed by robust
foreign direct investment inflows
South Asian Region: After India, Bangladesh is projected to be fastest-growing economy in South Asia
followed by Sri Lanka and Nepal. (Pakistan, which is grouped with Middle East, was not covered in this
report). Overall, South Asia continues will be both fastest-growing region in the world and main engine of
world’s economy.
The region contributes more than 60% of global growth and three-quarters of this comes from India and
China, which is expected to grow 6.6 % in 2018 and 6.4% in 2019. US Government’s fiscal stimulus is
expected to support Asia’s exports and investment.
However, in the medium term downside risks dominate for region and these include tightening of global
financial conditions, shift toward protectionist policies, and increase in geopolitical tensions. Because of
these uncertainties countries in the region need to follow conservative policies aimed at building buffers
and increasing resilience and push ahead with structural reforms.
Business Optimism Index: India slips to 6th position globally in first quarter of 2018
May 9 2018
India was ranked 6th on Global Optimism Index released as part of Grant Thornton’s International
Business Report (IBR) in the first quarter of 2018. The report was prepared based on the results of a survey
of 2,500 businesses in 37 economies.
Key Facts
The top five nations are Austria, Finland, Indonesia, the Netherlands and US. India with a score of 89 was
ranked at the sixth place in the index. India had topped the chart for four years, but business optimism in
India deteriorated while entering the last year of the current Government led by Prime Minister Narendra
Modi.
Underlying pessimism in India’s Business Optimism is reflected in other parameters as well including
revenue, selling prices, profitability, employment and exports expectations. Indian businesses have been
citing regulations and red tape, availability of skilled workforce, lack of ICT infrastructure and shortage of
finance as biggest growth constraints. Even aftersignificant jump in World Bank’s Ease of Doing Business
ranking, India still continues to rank first or second in quoting these reasons as the key hurdles for
growth.
GST Council approves simplified tax return filing system
May 5 2018
The Goods and Services Tax (GST) Council in its 27th meeting chaired by Union Finance Minister Arun
Jaitley announced new and simplified return filing process. It was approved based on recommendations of
Group of Ministers on IT simplification for GST implementation.
Features of simplified return filing process
One monthly return: All taxpayers excluding few exceptions like composition dealer will file one monthly
return. Return filing dates will be staggered based on turnover of registered person to manage load on IT
system. Composition dealers and dealers having nil transaction will have facility to file quarterly return.
Unidirectional flow of invoices: Seller will upload unidirectional flow of invoices on anytime basis during
the month. This will be valid document to avail input tax credit by buyer and allow them to continuously
see the uploaded invoices during the month. Invoices for B2B transaction will use HSN at four digit level
or more to achieve uniformity in reporting system.
Simple return design and easy IT interface: Taxpayer will be given user-friendly IT interface and offline
IT tool to upload the invoices. The B2B dealers will fill invoice-wise details of outward supply made by
them, based on which system will automatically calculate his tax liability. The input tax credit will be also
calculated automatically by the system based on invoices uploaded by his sellers.
No automatic reversal of credit: There will be no automatic reversal of input tax credit from buyer on
non-payment of tax by seller. In case of default in payment of tax by seller, recovery will be made from
seller but reversal of credit from buyer will be also option available with revenue authorities to address
exceptional situations like missing dealer, closure of business by supplier or supplier not having adequate
assets.
Due process for recovery and reversal: Recovery of tax or reversal of input tax credit will be through due
process of issuing notice and order. The process will be online and automated to reduce human interface.
Supplier side control: Analytical tools will be used to identify and block unloading of invoices by seller to

pass input tax credit who has defaulted in payment of tax above threshold amount to control misuse of
input tax credit facility. Similar safeguards will be built with regard to newly registered dealers to prevent
loss of revenue.
Transition: The new simplified return filing process will be implemented in three-stage transition. The
stage I is the present system of filing of return GSTR 3B and GSTR 1. GSTR 2 and GSTR 3 will be suspended
in Stage I which will continue for maximum period of 6 months by which time new return software is
ready. In stage 2, new return will have facility for invoice-wise data upload and also facility for claiming
input tax credit on self-declaration basis, as in case of GSTR 3B now.
FDI Confidence Index 2018: India ranks 11th
May 4 2018
India was ranked 11th position in the FDI Confidence Index 2018 released by global consultancy firm A T
Kearney. It has slipped by three notches in 2018 as it was ranked 8th in 2017 and 9th in 2016. This is first
time India fell out of the top 10 since 2015.
Key Facts
Top 10 countries in FDI Confidence Index 2018 are United States (1st), Canada (2nd), Germany (3rd), United
Kingdom (4th), China (5th), Japan (6th), France (7th), Australia (8th), Switzerland (9th) and Italy (10th).
US has topped spot for the sixth year in a row mainly due to continued confidence result of its large
market, strong and sustained economic growth and recent corporate tax cuts. Switzerland and Italy have
entered in the top 10 position for the first time in more than decade.
Asia Pacific region: Investor preference for the region appears to have declined slightly with only seven
Asian countries appearing on 2018 FDI Confidence Index.
Emerging markets: This year marks an all-time low for the share of emerging markets on index. Just four
emerging markets have appeared among top 25 countries viz. China, India, Mexico, and Brazil. This
suggests that confidence in investing in specific emerging markets has declined.
India: The fall in India’s rankings may be due some policies such as challenges faced in
implementation2017 nationwide goods and services tax (GST) and 2016 demonetisation initiative which
disrupted business activity and weighed on economic growth which has deterred investors sentiments in
short term. But strong economic performance and sheer size of Indian market are important factors likely
to attract investors.
Investors based in Americas and in industry sector rank India highest in terms of their intention to invest
there. This confidence may be result of Government’s Make in India initiative, which aims to boost
investment in India’s manufacturing sector as well as its pursuit of closer ties with US.
Moreover, reforms have made positive impact on India’s attractiveness including dismantling of Foreign
Investment Promotion Board and liberalisation of overseas investment thresholds for retail, aviation, and
biomedical industries.
FDI Confidence Index
The index is annual analysis of how political, economic, and regulatory changes will likely affect FDI
inflows into countries in coming years. It is constructed using primary data from proprietary survey
administered to senior executives of world’s leading corporations. Companies participating in survey have
annual revenues of $500 million or more.
Manufacturing growth improves slightly in April 2018: PMI
May 3 2018
The Nikkei India Manufacturing Purchasing Managers’ Index (PMI) rose to 51.6 in April 2018 form from 51
in March 2018. It indicates faster improvement in health of India’s manufacturing economy than in prior
month.
Key Facts
PMI showed that manufacturing conditions improved for ninth consecutive month in April 2018. It was
mainly because of faster expansions in output and new orders. Moreover, greater production
requirements also stimulated job creation and encouraged companies to engage in input buying. The
Output growth was solid and picked-up from March’s five-month low, but remained slightly below

average for current nine-month period of expansion. On the price front, inflationary pressures continue to
ease in April 2018, with softest increases for input costs and output charges reported since September
2017 and July 2017 respectively.
Purchasing Managers Index (PMI)
PMI is considered as an indicator of the economic health and investor sentiments about the
manufacturing sector. It is published by Japanese firm Nikkei. The PMI is constructed separately for
manufacturing and services sector. But the manufacturing sector holds more importance. In PMI, a
reading above 50 indicates economic expansion, while reading below 50 points shows contraction of
economic activities. PMI shows investor sentiment in economy’s manufacturing sector and is seen as
sentiment tracking index. The variables used to construct India’s PMI are Output, New Orders, Input Costs,
Output Prices, Backlogs of Work, Export Orders, Quantity of Purchases, Suppliers and Delivery Times,
Employment, Stocks of Purchases and Stocks of Finished Goods
How PMI is different from IIP?
Index of Industrial Production (IIP) is popular index that measures growth in industrial sector in India is
concerned. It is prepared by Central Statistical Office (CSO). IIP shows change in production volume or
output in major industrial subsectors like manufacturing, mining and electricity. It also gives use based
(capital goods, consumer goods etc,) trends in industrial production. It covers broader industrial sector
compared to PMI. PMI senses dynamic trends because of variable it uses for the construction of the index.
PMI is more dynamic compared to IIP.
Core sector growth slows to 4.1% in March 2018
May 2 2018
According to index of eight core industries released by Ministry of Commerce and Industry, core sector
growth in March 2018 slowed to 4.1%, a three-month low due to weak performance in six sectors. These
sectors are coal, crude oil, natural gas, refinery products, steel and electricity. Cumulatively, the eight core
sectors grew 4.2% in 2017-18. The growth was 4.8% in the previous fiscal. The previous low was 3.8% in
December 2017.
Breakaway of March Performance

Core industries
Core industries can be defined as main industry of the economy. In most countries, there is particular
industry that seems to be backbone of all other industries and it qualifies to be the core industry.In India,
there are eight core sectors comprising of coal, crude oil, natural gas, petroleum refinery products,
fertilisers, steel, cement and electricity. The eight infrastructure sectors, constitute 40.27% of the total
index of industrial production (IIP).
Revised weightage in core sectors: Petroleum Refinery production (weight: 28.04%), Electricity generation
(19.85%), Steel production (17.92%), Coal production (10.33%), Crude Oil production (8.98%), Natural Gas
production (6.88%), Cement production (5.37%), Fertilizers production (2.63%).
HDFC Bank launches interactive humanoid IRA 2.0 in Bengaluru
May 1 2018
HDFC Bank has launched Interactive Robotic Assistant (IRA) 2.0, an interactive humanoid at its
Koramangala Branch in Bengaluru, Karnataka. The interactive humanoid aims to enhance user experience
for customers visiting in this branch.
IRA 2.0
HDFC Bank has developed IRA 2.0 in collaboration with its technology partners Invento Makerspaces and
Senseforth Technologies. IRA 2.0 is more advance than first version IRA 1.0. It is blend of IRA 1.0 and
Electronic Virtual Assistant (EVA), HDFC’s virtual bank assistant with some added features. It can interact
customers, answer their bank-related queries, frequently asked questions (FAQs) and also guide them
inside branch with voice-based navigation. It design has incorporated learning from first version IRA 1.0
to meet customer expectations.
IRA 1.0
HDFC was first bank in India to introduce humanoid IRA 1.0 for customer service at Kamala Mills Branch
in Mumbai in January 2o18. Currently, IRA 1.0 is stationed at Palarivattom Branch in Kochi. IRA 1.0 is GPS
enabled indoor humanoid. It has speech recognition module that can be trained to understand what
customers speak and uses ultrasonic sensor to move in inside branch. It has face detection algorithm for

recognition customers.
Electronic Virtual Assistant (EVA)
Its virtual assistant launched by HDFC on Amazon Alexa and Google Assistant to enable simplicity and
convenience of voice conversation to banking transactions. It makes HDFC first bank to offer voice
banking experience on Alexa. It is integrated with bank’s chat engine EVA for natural language processing
(NLP) to better understand customers’ queries.
RBI eases External borrowing norms to enable cheaper funds
Apr 30 2018
The Reserve Bank of India (RBI) has further liberalised External Commercial Borrowings (ECB) Policy by
including more sectors in the window in a bid to facilitate cheaper access of overseas funds to Indian
companies.
Key Facts
RBI has stipulated uniform, all-in cost ceiling of 450 basis points (bps) over benchmark rate, which, in
most cases, is six-month London Interbank Offered Rate (LIBOR). The benchmark rate for rupee-
denominated bonds will be prevailing yield of government bonds of corresponding maturity.
RBI has decided to increase ECB Liability to Equity Ratio for ECB raised from direct foreign equity holder
under automatic route to 7:1. This ratio will not be applicable if total of all ECBs raised by entity is up to $5
million or equivalent. Earlier, ratio exceedingankit4:1
sainiwas required |the RBI’s approval.
| mindhunter786@gmail.com
RBI also has allowed all housing finance companies regulated by National Housing Bank and Port Trusts
to raise ECB under all tracks. Such entities shall have board-approved risk management policy and shall
keep their ECB exposure hedged 100% at all times for ECBs raised under Track I.
RBI also has allowed companies engaged in business of maintenance, repair and overhaul and freight
forwarding to raise ECBs denominated in rupee only. Funds raised through ECBs will be not allowed to be
invested in real estate or for purchase of land except for affordable housing, construction and
development of SEZ and industrial parks or integrated townships.
RBI also relaxed norms for foreign investment in bonds by withdrawing investment cap for investors from
investing in government bonds with minimum residual maturity of three years.
External Commercial Borrowings (ECBs)
ECBs are commercial loans borrowed from foreign sources for financing the commercial activities in
India. It may be bank loans, securitised instruments, buyers’ credit, suppliers’ credit, foreign currency
convertible bonds, etc. It should be noted that ECBs are not FDI. In case of FDI, foreign money is used only
to finance the equity Capital. But in case ECBs, foreign money is used to finance any kind of funding other
than equity.
Special 301 Report: USTR again places India Priority Watch List
Apr 30 2018
The Office of United States (US) Trade Representative (USTR) has once again placed India on ‘Priority
Watch List’ in its annual Special 301 Report on the state of intellectual property protection. In 2018
Special 301 Report, the USTR has placed 12 countries on its Priority Watch List. Special 301 Report
identifies US trading partners that do not adequately or effectively protect and enforce IP rights or deny
market access to its innovators and creators that rely on protection of their IP rights.
Key Facts
Other countries on list are Algeria, Argentina, Canada, Chile, China, Colombia, Indonesia, Kuwait, Russia,
Ukraine, and Venezuela. IP issues in these countries will be subject of intense bilateral engagement during
coming year.
According to it, India remains the list for its long-standing challenges in its IP framework and lack of
sufficient measurable improvements, particularly with respect to patents, copyrights, trade secrets, and
enforcement, as well as for new issues that have negatively affected US right holders over the past year.
India remains one of world’s most challenging major economies with respect to protection and
enforcement of intellectual property. India’s enforcement action and policies are insufficient to curb
problem, copyright policies that do not properly incentivise creation and commercialisation of content
and outdated and insufficient trade secrets legal framework.
It has slammed Health Ministry of India for creating uncertainty in pharmaceutical market by demanding
that pharmaceutical companies provide details of how they were using the granted patents. It has urged
India to join important international treaties and agreements that could improve aspects of India’s IP
regime.
NSE’s India Index Services & Products Ltd launches Nifty equity savings index
Apr 28 2018
The National Stock Exchange’s (NSEs) arm India Index Services & Products Ltd (IISL) has launched Nifty
equity savings index that will serve as benchmark for equity saving funds offered by various mutual funds.
The index will capture performance of portfolio having exposure to equity, equity arbitrage and debt
instruments in similar way to the investment philosophy of equity savings funds.
Nifty equity savings index
The index is total return index capturing price return and dividend or coupon income. Its components are
30% exposure to Nifty 50 total return index; 30% exposure to equity arbitrage (long position in Nifty 50
total return index and equivalent short position in Nifty 50 futures Index); 30% exposure to Nifty short
duration debt index; and 5% exposure to Nifty 1D rate index. The base date for index is April 1, 2005 and
base value is 1,000. It will be calculated on an end-of-day basis. It will help to fill gap that was there due to
absence of relevant benchmark for performance comparison of popular equity savings funds category
offered by mutual funds in India.
Index Services & Products Ltd (IISL)
It is subsidiary of National Stock Exchange of India (NSE). It provides variety of indices and index related
services and products for Indian capital markets. It is based in Mumbai, Maharashtra. It was founded in
March 1998 with objective of providing variety of indices and index related services and products for
capital markets. It operates as a subsidiary of NSE Strategic Investment Corporation Limited. It maintains
over 100 equity indices comprising broad-based benchmark indices, sectoral indices and customized
indices.
Fitch retains India’s sovereign rating at ‘BBB-‘ with ‘stable’ outlook
Apr 28 2018
Global credit rating agency Fitch has kept India’s sovereign rating unchanged at ‘BBB-‘ with stable
outlook. This rating is at junk bond or lowest investment grade with stable outlook. A rating upgrade
changes profile of country and makes it attractive to investors. In 2017, Moody’s had upgraded India’s
rating (to Baa2 from Baa3) after gap of nearly 14 years, while Standard & Poor’s (S&P) retained its BBB-
rating with stable outlook.
Key Facts
According to Fitch, BBB- rating balances India’s medium-term growth outlook and favourable external
balances with weak fiscal finances and some lagging structural factors, including governance standards
and still-difficult but improving business environment.
The stable outlook reflects balancing of upside and downside risks to ratings. The main factors that,
individually or collectively, upgrade India’s rating action are reduction in general government debt over
medium term to level closer to that of rated peers, higher sustained investment and growth rates, without
creation of macro imbalances, such as from successful structural reform implementation.
What is Sovereign Credit rating?
Sovereign Credit Rating
A sovereign credit rating is credit rating of country or sovereign entity. It gives investors insight into level
of risk associated with investing in particular country, including its political risk. At request of country,
credit rating agency evaluates country’s economic and political environment to determine representative
credit rating. Obtaining good sovereign credit rating is usually essential for developing countries in order
to access funding in international bond markets. Fitch Ratings, Moody’s Investors Service and Standard &
Poor’s (S&P) are big three international credit rating agencies controlling approximately 95% of global
ratings business
Bureau of Indian Standards grants first license for Liquid Chlorine on all India basis
Apr 27 2018
Bureau of Indian Standards (BIS) has granted First Licence to Gujarat Alkalies and Chemicals Ltd for
Liquid Chlorine on all India basis as per Indian Standard (IS) 646:1986. This is the First Licence granted on
All India basis. The licence has been made operative with effect from April 2018 for a period of one year.
Key Facts
Liquid Chlorine is in liquid form and stored in metal containers. It is usually used as gas obtained by
evaporating liquid from metal container. It is used mainly in paper, pulp, water sterilization, textile
bleaching and manufacture of chemicals.
The approval of first licence will facilitate industry to get quality Liquid Chlorine with Standard Mark
under BIS Certification Marks scheme. Indian Standard (IS) 646:1986 for Liquid Chlorine, Technical,
prescribes the requirements and the methods of sampling and test for liquid chlorine, technical.
Bureau of Indian Standards (BIS)
BIS National Standard Body of India established under BIS Act, 1986. It is mandated for harmonious
development of activities of standardization, marking and quality certification of goods and for matters
connected. It is headquartered at New Delhi.
BIS is involved in various activities such as standards formulation, product certification scheme,
compulsory registration scheme, foreign manufacturers certification scheme, hall marking scheme,
laboratory services, laboratory recognition scheme, sale of Indian standards, consumer affairs activities,
promotional activities, training services, national & international
ankit saini | mindhunter786@gmail.com | level and information services.
BIS has been providing traceability and tangibility benefits to national economy in number of ways such
as by providing safe reliable quality goods, promoting exports and imports substitute, minimizing health
hazards to consumers, control over proliferation of varieties etc. through standardization, certification
and testing.
India highest recipient of Remittances in 2017: World Bank
Apr 24 2018
According to recently released Migration and Development Brief by World Bank, India has retained top
position as recipient of remittances with about $69 billion in 2017. India was followed by China ($64
billion), Philippines ($33 billion), Mexico ($31 billion), Nigeria ($22 billion) and Egypt ($20 billion).
Key Highlights of Migration and Development Brief
Global remittances: It grew 7% to US $613 billion in 2017, from US $573 billion in 2016. Global remittances
are expected to grow 4.6% to $642 billion in 2018. It include flows to high-income countries. The stronger-
than-expected recovery in remittances was driven by growth in Europe, Russia and US.
The rebound in global remittances was due to higher oil prices and strengthening of Euro and Ruble. The
upsurge is likely to continue into 2018 on back of stronger economic conditions in advanced economies
(particularly US) and increase in oil prices that may have positive impact on GCC (Gulf Cooperation
Council) countries.
Low-and middle-income countries: Remittances received by these countries in 2017 has reached US $466
billion in 2017. This was an increase of 8.5% over US $429 billion in 2016. India received $69 billion
remittances in 2017 as against $62.7 billion in 2016. It had picked up sharply by 9.9%, reversing previous
year’s dip (8.9% in 2016), but was still short of $70.4 billion received in 2014.
Remittances to South Asia: It grew a moderate 5.8% to US $117 billion in 2017 and it will likely grow
modestly by 2.5% to $120 billion in 2018. Flows to Pakistan (received US $20 billion) and Bangladesh (US
$13 billion) were both largely flat in 2017, while Sri Lanka saw small decline (-0.9%).
Global average cost: The of sending $200 was 7.1% in Q1 of 2018, more than twice as high as Sustainable
Development Goal (SDG) target of 3%. Sub-Saharan Africa remained most expensive place to send money
to, where the average cost is 9.4%.
Transit migration: The transit migrants-who only stay temporarily in transit country, are usually not
able to send money home. Migration may help migrants to escape poverty or persecution, but many also
become vulnerable to exploitation by human smugglers during transit. Host communities in transit
countries may find their own poor population competing with new-comers for low-skill jobs.

TCS becomes India’s first $100 billion IT company

Apr 23 2018 ankit saini | mindhunter786@gmail.com |
Tata Consultancy Services (TCS), the country’s largest IT outsourcing company created history by
becoming the first Indian company to reach $100 billion market capitalisation (m-cap) milestone. Market
capitalisation is value of company that is traded on stock market, calculated by multiplying total number
of shares by present share price. The Indian IT giant hit $100 billion in market capitalisation after it
crossed Rs 3,447 per share, assuming the current value of the rupee at 66.2150 against the US dollar.
Key Facts
With this, TCS joined the ranks of the world’s 100 most valued organizations and now ranks 97th. TCS has
also overtaken outsourcing and consultancy giant Accenture which has market cap of $98.20 billion. TCS
holds first position among most valuable international pure play technology services firms. INTL Business
Machines Corp. (IBM) has market cap of $133.48 billion, but it has both hardware and technology services
operations.
Currently there are 96 companies which have market cap of over $100 billion. In 2007, Mukesh Ambani led
Reliance Industries Ltd., the telecoms-to-energy conglomerate was the first Indian company to cross the
$100 billion mark. Currently, its market cap is at $89.36 billion.
India, Finland settle Nokia tax dispute under MAP

Apr 21 2018
India and Finland have reached an agreement on the tax dispute with Nokia under Mutual Agreement
Procedure (MAP) system. The resolution covers disputes pertaining to Nokia India as well as Nokia Corp.

This involves payment of Rs 1,600 crore, a sum that was deposited with government by Nokia in March
2018.
This paves way for the sale of Nokia’s Chennai (Sriperumbudu) plant, which has been shuttered since
November 2014. Software giant Microsoft had kept Sriperumbudur factory out of the deal when it
acquired Nokia’s mobile device business in 2014 due to Income Tax notice and asset freeze imposed on the
factory.
Background
Nokia India was issued tax demand notice for Rs. 2,500 crore in 2013 by Income Tax Department, which
was thereafter reduced to Rs. 1,600 crore over royalty payments made to its parent company in Finland
since 2006. The IT Department also raised tax demand of Rs.10,000 crore tax on Nokia Corporation for
same transaction, but was dropped under MAP agreement.
The tax claim was related to Nokia’s import of software from its head office in Finland. Nokia India had
showed payments made for software as ‘purchase transactions’ and not ‘royalty payments’ and held that
payment was made without keeping back any withholding tax.
The India-Finland Double Taxation Avoidance Agreement (DTAA) has set 10% rate for royalties, which was
IT Department was demanding. In tandem, at Nokia India’s request, Finland had initiated MAP process
under DTAA in 2013. Nokia India also had sought to initiate arbitration under Bilateral Investment
Promotion and Protection Agreement (BIPPA) in 2014, but did not pursue it after Indian Government’s
response through MAP avenue for solving cross-border tax dispute instead of arbitration.
Mutual Agreement Procedure (MAP) system
MAP is alternative dispute settlement mechanism that allows multinational companies (MNCs) to settle
transfer pricing disputes with tax authorities and eliminate double taxation. The need for such
arrangements was surfaced after many MNCs with operations in India had transfer pricing disputes with
local tax authorities. MAP helps to increase comfort level of foreign investors over India’s tax laws.
Moreover, speedy resolution of tax cases help in providing conducive atmosphere for investments and
business to foreign companies in India. Under MAP, settling case with other government means closing all
pending proceedings related to tax matter. It is increasingly seen as preferred mode for settling cross-
border tax disputes.
India pitches for independent BRICS credit rating agency
Apr 21 2018
India has pressed the BRICS (Brazil, Russia, India, China and South Africa) nations to set up an
independent credit rating agency of the five-member group. It was on sidelines of the first meeting of
BRICS Finance Ministers and Central Bank Governors held along with IMF/World Bank Spring Meetings
in Washington, US.
Key Facts
India sought the support of BRICS members in building consensus amongst BRICS membership on the
BRICS Rating Agency proposal. It also requested to take forward report to be submitted by expert group
set up under the aegis of BRICS Business Council to study the feasibility of the BRICS Rating Agency.
India had first mooted the idea of having such an agency for the BRICS grouping to solve impediments for
the emerging market economies posed by present credit rating agency market that is dominated by S&P,
Moody’s and Fitch. These three western rating agencies hold over 90% of the sovereign ratings market.
Emerging economies claim that western ratings firms are biased, pessimistic on the developing countries
and optimistic on developed nations. They also have concerns over methodologies of the three global
agencies.
Other issues discussed during meeting
It discussed enhancing project pipelines of New Development Bank (NDB) evenly across member
countries, expansion of NDB’s membership. It also deliberated on proposal of South African Presidency for
setting up working group on illicit financial flows and BRICS Task Force on Public Private Partnership.
Issues related to BRICS Contingent Reserve Arrangement (CRA) as well as BRICS Bond Fund were also
discussed.

First International SME Convention 2018 to be held in New Delhi

Apr 21 2018
The first International SME (Small, Medium Enterprises) convention will be held in New Delhi from
22ndto 24th April, 2018. It has been organised by Ministry of Micro, Small & Medium Enterprises. It aims
to provide platform to allow Entrepreneur to Entrepreneur (E2E) exchange of ideas, free and fair business
discussions, mutual sizing of opportunities and ways to address them.
Key Facts
The four day International SME convention will see participation of 150 participants from 31 countries and
400 entrepreneurs from India. It has specific focus on inclusion of MSMEs in Make in India program and
empowering women entrepreneurs.
The Ministry of MSME has engaged with over 35 International Trade Development organisations to
attract and invite able and willing entrepreneurs and encourage people to people (P2P) contact with select
Indian Entrepreneurs from key sectors of the International counterparts.
Background
India is home to more than 60 million MSMEs, majority of which are in low-tech areas and serve local
domestic markets. The MSMEs sector constitute single largest employer after Agriculture sector in India.
Highly developed economies have banked on their SMEs for both GDP Growth as well as higher
employment resulting in higher per capitaankit
incomes. In India,
saini | mindhunter786@gmail.com | small percentage of SMEs have ability to
derive access to International Markets, with vast majority of enterprises working as ancillaries.
India is now world’s sixth largest economy: IMF
Apr 20 2018
According to International Monetary Fund’s (IMF) World Economic Outlook (WEO) for April 2018, India is
now the world’s sixth largest economy at $2.6 trillion (interms of GDP), displacing France. The five
economies ahead are United States, China, Japan, Germany and United Kingdom.
IMF’s April 2018 WEO
India is expected to grow at 7.4% in 2018 and 7.8% in 2019, making it fastest growing economy in the
world. India has made progress on structural reforms in recent past, including through implementation of
Goods and Services Tax (GST), which will help reduce internal barriers to trade, increase efficiency and
improve tax compliance.
The medium-term growth outlook for India is strong but important challenge is to enhance inclusiveness.
Moreover, India’s high public debt and recent failure to achieve budget’s deficit target needs fiscal
consolidation into e medium term to further strengthen fiscal policy credibility.
The main priorities for India are lifting constraints on job creation and ensuring that demographic
dividend is not wasted. For this India needs to ease labour market rigidities, reduce infrastructure
bottlenecks, and improve educational outcomes.
UK-India Tech Alliance launched by Nasscom, TechUK
Apr 19 2018
The NASSCOM (National Association of Software & Services Companies) and TechUK launched new UK-
India Tech Alliance.The leading technology trade bodies of India and UK inked memorandum of
understanding (MoU) in this regard during Prime Minister Narendra Modi’s visit to the UK
The UK-India Tech Alliance
The alliance is aimed at increasing collaboration on skills and new technologies, assisting policy
development and encouraging innovation and lay groundwork for roadmap which will be jointly
presented in June 2018. It will promote growth of skills needed for world where artificial intelligence (AI),
machine learning, big data analytics and cybersecurity have become major technology growth areas. It
will be key partner for government – providing sounding board and expert advice for policy development
to ensure that both governments nurture growth in this sector and beyond.
The MoU commits two organisations to exchange knowledge and learn lessons from FutureSkills
initiative launched by NASSCOM, explore expansion of FutureSkills platform, work together to strengthen
people-to-people (P2P) and business-to-business (B2B) links between India and UK. It calls for exploring
wider partnership to develop digital skills in both countries and encourage Indian companies active in UK
to deliver digital skills training opportunities as part of cross-sector Digital Skills Partnership convened
by UK government.
Bharat-22 ETF follow-on offer may be worth Rs. 10,000 crore
Apr 18 2018
The Union Finance Ministry may come out with Rs. 10,000 crore follow-on fund offer of Bharat-22
exchange traded fund (ETF) as it looks to dilute stake in Coal India Limited (CIL) to meet the minimum
public holding norm. Besides, it is also keen to takeETF route to sell off government shares held through
Specified Undertaking of the Unit Trust of India in private companies (SUUTI)—ITC, Axis Bank and L&T.
Background
The Union Government is planning to raise Rs. 80,000 crore in current fiscal from disinvestment, lower
than over Rs. 1 trillion raised in 2017. The Bharat-22 ETF was launched in November 2017 to meet some
part of this disinterment target. It comprises shares of 22 companies, including public sector
undertakings (PSUs), public sector banks (PSBs), ITC, Axis Bank and L&T. The fund so far has garnered
bids to tune of Rs.32,000 crore, although government retained only Rs. 14,500 crore.
Prior to the launch of Bharat-22 ETF, which has diversified portfolio, Union Government had floated CPSE
ETF comprising stocks of 10 bluechip PSUs—ONGC, Coal India, IOC, GAIL (India), Oil India, PFC, Bharat
Electronics, REC, Engineers India and Container Corporation of India. Through the CPSE ETF, the
government had raised Rs. 11,500 crore in three tranches
Exchange Traded Fund (ETF)
ETF is index funds that offer security of fund and liquidity of stock listed and traded on exchanges. Much
like index funds they mirror index, commodity, bonds or basket of assets. They are similar to mutual funds
in certain manner but are more liquid as they can be sold quickly on stock exchanges like shares.
The ETFs trading value is based on the net asset value of the underlying stocks that it represents. Their
price changes daily as they are traded throughout the day. ETF route is considered as safer mode of
disinvestment as it shields investors against stock market volatility.
India expected to grow at 7.4% in 2018: IMF
Apr 18 2018
The International Monetary Fund (IMF) in its latest World Economic Outlook (WEO) has projected India to
grow at 7.4% in 2018 and 7.8% in 2019. It also held that India will again emerge as world’s fastest-growing
major economy at least for the next two years (2019 and 2020).
Key Facts
India’s growth: Over the medium term, India’s growth will gradually rise with continued implementation
of structural reforms that will raise productivity and incentivise private investment. It will be driven by
recovery from transitory effects of currency exchange initiative and implementation of national GST tax
and supported by strong private consumption growth. India’s progress on structural reforms in recent
past, including through implementation of GST will help reduce internal barriers to trade, increase
efficiency and improve tax compliance.
China’s Growth: Its expansion will slow to 6.6% and 6.4% for 2018 and 2019, respectively, against 6.9% in
2017. China, with 6.9% growth, jumped marginally ahead of India in 2017.
Global Growth: It is seen stable at 3.9% over current and next calendar years, almost unchanged from 3.6%
in 2018, despite a looming trade war between the US and China. The risks from inward-looking policies of
some countries to trade prospects and trade war may not spiral out of control, plunging world into
broader crisis
Challenges to India’s growth: Though India’s medium-term growth outlook for India is strong, important
challenge to it is to enhance inclusiveness. Moreover, India’s high public debt and recent failure to achieve
budget’s deficit target, calls for continued fiscal consolidation into medium term to further strengthen
fiscal policy credibility. Moreover, it should also ease labour market rigidities, reduce infrastructure
bottlenecks, and improve educational outcomes for lifting constraints on job creation and ensuring that
demographic dividend is not wasted.

FIEO GlobalLinker: Government launches digital platform for MSME Exporters

Apr 17 2018
Ministry of Commerce and Industry has launched FIEO GlobalLinker, a digital platform for MSME
exporters to digitise their businesses and join global community of growing businesses. It has been
developed by Federation of Indian Export Organisations (FIEO).
Key Facts
FIEO GlobalLinker aims to make the business ankitgrowth of SMEs| simpler, more profitable and enjoyable. It is
growing global network currently comprising over 140,000 SME firms, seeking business collaboration and
growth opportunities through use of their electronic business card and digital profiles created on
platform. It is available free of cost and it offers exporters range of features.
Benefits
Business Opportunities: It will enable exporters to find clients, suppliers and advisors using search and
review facilities. It will help to create free e-commerce store for direct sales and improved chain
management. It will provide up-to-date business knowledge through business articles, industry news and
common interest groups.
Improved Efficiencies: Its platform will provide services like company intranet, integrating email,
business calendar.
FIEO’s Services: It will provide application for new RCMC, endorsement, renewal, participation in FIEO’s
promotional programme and alerts.
Federation of Indian Export Organisations (FIEO)
It is apex trade promotion organisation in India. It was jointly established in 1965 by Ministry of
Commerce and private trade and industry. It is responsible for representing and assisting Indian
entrepreneurs and exporters in foreign markets. It is headquartered in New Delhi.
India will grow at 7.3% in 2018: World Bank Report
Apr 17 2018
The World Bank in its twice-a-year South Asia Economic Focus report has projected growth rate of 7.3%
for India in 2018 and 7.5% for 2019 and 2020. The growth is expected to accelerate from 6.7% in 2017 to
7.3% in 2018 and to subsequently stabilise supported by sustained recovery in private investment and
private consumption.
Key Facts
India’s recovering growth will drive South Asia to the fastest growing region. Indian economy has
recovered from effects of demonetisation and the Goods and Services Tax (GST). India should strive to
accelerate investments and exports to take advantage of recovery in global growth.
Disruptions from demonetisation and events surrounding implementation of GST led to setback in
economic activity and potentially larger negative effect on poor and vulnerable. Private consumption will
remain primary driver of growth while services sector and increasingly, industrial sector will lead
production growth.
Every month, the working age increases by 1.3 million people and India will need to create 8.1 million jobs
a year to maintain its employment rate. The employment rate is declining based on employment data
analyzed from 2005 to 2015, largely due to women leaving the job market.

Generalized System of Preferences: US announces eligibility review of India

Apr 14 2018
The United States Trade Representative (USTR) has formally announced that it is reviewing eligibility of
India, Indonesia and Kazakhstan in Generalized System of Preferences (GSP) based on concerns about
countries’ compliance with program. The reviews are based on Trump administration’s new GSP country
eligibility assessment process as well as GSP country eligibility petitions
Key Facts
For India, GSP country eligibility review is based on concerns related to its compliance with GSP market
access criterion and two petitions related to same criterion. The petitions were filed by US dairy industry
and US medical device industry requested review of India’s GSP benefits, given Indian trade barriers
affecting US exports in those sectors.
For Indonesia, GSP country eligibility review is based on concerns related to its compliance with GSP
market access criterion and GSP services and investment criterion. Kazakhstan’s eligibility review is
based on concerns related to its compliance with the GSP worker rights criterion.
Generalized System of Preferences (GSP)
GSP is largest and oldest US trade preference programme introduced in 1976. It is designed to promote
economic development by allowing duty-free entry for thousands of products from designated beneficiary
countries both developing and developed countries. Under it,| a wide range of industrial and agricultural
products originating from certain developing countries are given preferential access to US markets.
India’s case, GSP enables duty-free entry of 3,500 product lines in US markets, which benefits exporters of
textiles, engineering, gems and jewellery and chemical products. The total US imports under GSP in 2017
was $21.2 billion, of which India was biggest beneficiary with $5.6 billion, followed by Thailand ($4.2 billion)
and Brazil ($2.5 billion). The US Congress in March 2018 had voted to renew GSP through 2020. In
2nd India Mobile Congress to be held in New Delhi in October 2018
Apr 14 2018
The second edition of India Mobile Congress (IMC-2018) will be held in New Delhi on October 25-27, 2018.
It will be organised by Department of Telecommunications (DoT) and Cellular Operators Association of
India (COAI).
IMC was launched in 2017 to provide platform for policy makers, industry and regulators to engage in
meaningful deliberations to drive the future direction of telecom sector. The first IMC held in September
2017 was attended by around 2,000 delegates, 32,000 visitors, 152 speakers, 100 exhibitors and 100 start-
ups.
Key Facts
The theme of second edition of IMC is NEW DIGITAL HORIZONS Connect, Create, innovate. It expects
participation of more than 200,000 professionals from telecom industry, encompassing 5G, start-up
ecosystem, Internet of Things (IoT), Big Data, Artificial Intelligence (AI), Smart Cities and allied industry
sectors. The exhibition would feature more than 1,300 exhibitors. IMC 2018 we will also see participation
of countries from ASEAN (Association for Southeast Asian Countries) and BIMSTEC (Bay of Bengal
Initiative for Multi-Sectoral Technical and Economic Cooperation) besides US, Canada and European
Union (EU).
India’s forex reserves at record high of $424.864 billion: RBI
Apr 14 2018
According to the Reserve Bank of India (RBI), India’s forex (foreign exchange) reserves have touched
record high of $424.864 billion in April 2018. The surge was due to massive spike in foreign currency
assets (FCAs), a key component of the reserves. The forex reserve had crossed $400-billion mark for the
first time in September 2017, but has since been fluctuating.
Forex Reserves
The forex are reserve assets held by a central bank in foreign currencies. It acts as buffer to be used in
challenging times and used to back liabilities on their own issued currency as well as to influence
monetary policy. Almost all countries in world, regardless of size of their economy, hold significant foreign
exchange reserves.
The components of India’s FOREX Reserves include Foreign currency assets (FCAs), Gold Reserves, Special
Drawing Rights (SDRs) and RBI’s Reserve position with International Monetary Fund (IMF). FCAs constitute
largest component of Indian Forex Reserves and are expressed in US dollar terms.
FOREX Reserves in April 2018
Foreign currency assets (FCAs): $399.776 billion.
Gold reserves: $21.484 billion.
SDRs with IMF: $1.534 billion.
Reserve position with the IMF: $2.070 billion.
RBI tightens reporting norms for Liberalised Remittance Scheme
Apr 13 2018
The Reserve Bank of India (RBI) has tightened reporting norms for the Liberalised Remittance Scheme
(LRS) under which individual can transfer up to US $2,50,000 abroad in a year. The purpose of tightening
of norms is to improve monitoring and also to ensure compliance with LRS limits.
Key Facts
Currently, the LRS transactions are permitted by banks based on declaration made by remitter. The
monitoring of adherence to limit is confined to obtaining such declaration without independent
verification, in absence of reliable source of information.
Now under tightened reporting norms, daily reporting system by Authorised Dealer (AD) banks of
transactions undertaken by individuals under LRS has been placed, which will be accessible to all the other
ADs. It will be mandatory for banks to upload daily transaction-wise information undertaken by them
under LRS.
Liberalised Remittance Scheme (LRS)
LRS is facility provided by RBI for all resident individuals including minors to freely remit upto certain
amount in terms of US Dollar for current and capital account purposes or combination of both. The
scheme was introduced in February 2004 and its regulations are provided under Foreign Exchange
Management Act (FEMA), 1999. After it was launched, the LRS limit was US $25,000, but it has been
revised in stages consistent with prevailing macro and micro economic conditions. At present, LRS limit
for all resident individuals, including minors, is US $2,50,000 (Rs. 1.5 crore) per financial year.
Under LRS, individuals can make remittances for overseas education, travel, medical treatment,
maintenance to relatives living abroad, gifting and donations. The remitted money can be used for
purchase of shares and property as well. Individuals can also open, maintain and hold foreign currency
accounts with overseas banks for carrying out transactions under it.
Restrictions: Under LRS, remittances cannot be used for trading on foreign exchange markets, purchase
of Foreign Currency Convertible Bonds issued abroad by Indian companies and margin or margin calls to
overseas exchanges and counterparties. Similarly, individuals are not allowed to send money to countries
identified as ‘non cooperative jurisdictions’ by Financial Action Task Force (FAFT). It also prohibits
remittances to entities identified as posing terrorist risks.
Bhanu Pratap Sharma replaces Vinod Rai as chairman of Banks Board Bureau
Apr 13 2018
The Union Finance Ministry has reconstituted Banks Board Bureau (BBB) and appointed former
bureaucrat Bhanu Pratap Sharma as its chairman. It will replace earlier BBB headed by former
Comptroller and Auditor General (CAG) Vinod Rai as its two-year term ended in March 2018. The
reconstituted BBB will have two-year tenure, same as its predecessor.
Members of reconstituted BBB: Investment banker Vedika Bhandarkarm; Pradeep Kumar, former
managing director of SBI and Pradip P. Shah, founder managing director of rating agency Crisil.
Bhanu Pratap Sharma
Sharma is retired IAS officer of Bihar cadre (1981 batch) and former Principal Secretary (Finance) in the
Bihar government. He is presently chairman of recruitment and assessment centre at Defence Research
and Development Organisation (DRDO). He had been health secretary and secretary for personnel and
training at Centre, before retiring in June 2017 from civil service.


BBB is super authority (autonomous body) of eminent professionals and officials for public sector banks
(PSBs). It was announced by Union Government in August 2015 as part of seven point Indradhanush
Mission to revamp PSBs and started functioning in April 2016. It had replaced Appointments Board of
Government. It is housed in Reserve Bank of India’s central office in Mumbai, Maharashtra. BBB is
considered as the first step towards Bank Investment Company as recommended by P J Nayak committee.
Functions
Give recommendations for appointment of full-time Directors as well as non-Executive Chairman of
PSBs.
Give advice to PSBs in developing differentiated strategies for raising funds through innovative
financial methods and instruments and to deal with issues of stressed assets.
Guide banks on mergers and consolidations and governance issues to address bad loans problem
among other issues.
Industrial production grows 7.1% in February 2018: CSO
Apr 13 2018
According to data released by the Central Statistics Office (CSO), factory output measured in terms of the
Index of Industrial Production (IIP) had grown 7.1% in February 2017. It was mainly driven by robust
performance of manufacturing sector coupled ankit with higher offtake
saini | mindhunter786@gmail.com | of capital goods and consumer durables.
The IIP recorded growth of 8.54% in November 2017, 7.1% in December 2017 and 7.4% in January 2018.
During April-February period, IIP has slowed to 4.3% from 4.7% compared to same period 2017-18 fiscal.
Sector wise IIP projection

The IIP is composite indicator that measures short-term changes in volume of production of basket of
(2011-12) reflects the changes in industrial sector and also aligns it with base year of other macroeconomic
the IIP is 40.27%.
India’s economy to grow 7.3% in 2018-19 and 7.6% in 2019-20: ADB Outlook
Apr 13 2018
The Asian Development Outlook 2018 released by Asian Development Bank (ADB) has projected India’s
economic growth to 7.3% in 2018-19 fiscal and further to 7.6% in 2019-20 fiscal. The ADB’s growth
projection is in line with that of rating agency Fitch, but is lower than Reserve Bank of India’s (RBI)
forecast of 7.4%.
Asian Development Outlook 2018
India’s growth Projection: Indian growth is expected to pick up to 7.3% in fiscal year (FY) 2018 and 7.6% in

FY2019, following the estimated 6.6% in FY2017. India will remain the world’s fastest growing major
economy.
India’s growth will pick up with increased productivity post Goods and Services Tax (GST) and investment
revival due to banking reform and corporate deleveraging take hold to reverse downtrend in investment.
The impact of demonetization of high-value banknotes has dissipated and full implementation of GST will
bolster growth in India in 2019.
Indian economy grew 6.6% in last fiscal (2017-18) as it battled lingering effects of demonetisation in 2016,
businesses adjusting GST in 2017 and subdued agriculture.
Growth Projections in South Asia: It will remain among world’s fastest, driven by recovery in India,
region’s largest economy. Asian consumers and commodity price rises will fuel higher inflation in the
region.
China’s growth projection: It will slow down to 6.6% and 6.4% in 2018 and 2019 respectively as its
domestic economic policy leans further toward financial stability and more sustainable growth trajectory.
Regional Inflation Projections: It is projected to average 4.6% in FY 2018 (2018-19), rising to 5% in FY 2019
with further firming of global commodity prices and strengthening of domestic demand. Regional
consumer price inflation (CPI) is projected to accelerate to 2.9% in 2018 and 2019, from 2.3% registered in
2017. Inflation projections for next two years,ankithowever, are well below 10-year regional average of 3.7%.
Prospects for Policy stimulus: It remains limited and there is risk of tight interest rate regime. The
deferment of fiscal consolidation, upside risks of inflation and expected hikes in US interest rates in 2018
will squeeze maneuvering room for policy rate cuts to stimulate growth.
Asian Development Bank (ADB)
ADB is a regional development bank which aims to promote social and economic development in Asia. It
was established in December 1966. It is headquartered in Manila, Philippines. Now it has 67 members, of
which 48 are from within Asia and the Pacific and 19 outside.
The ADB has been modelled closely on the World Bank. It has similar weighted voting system where votes
are distributed in proportion with members’ capital subscriptions. As of 2014, Japan was largest
shareholder (capital subscription) of ADB having 15.7% shares followed by US (15.6%), China (6.5%), India
(6.4%), and Australia (5.8%).
Index of Economic Freedom 2018: India ranks 130th
Apr 12 2018
India ranked 130th out of 186 economies in recently released Index of Economic Freedom 2018 that
measures the degree of economic freedom in the countries of the world. In this edition of index, India with
score of 54.5 jumped 13 places from 143rd rank in previous year (2017) with a score of 52.6 points.
Index of Economic Freedom (IEF)
The index was released by top US based Think Tank, The Heritage Foundation. It ranks countries based on
score ranging 0 (least free) to 100 (most free). The score is based on 12 factors of economic freedom,
separated into four categories, using statistics from international organizations like World Bank, IMF,
Economist Intelligence Unit and Transparency International. Based on the score, countries are grouped in
5 different categories, Free (80–100), Mostly Free (70.0–79.9), Moderately Free (60.0–69.9), Mostly Unfree
(50.0–59.9) and Repressed (0–49.9).
Twelve factors for calculating score are: property rights, government integrity, tax burden, judicial
effectiveness, government spending, fiscal health, business freedom, monetary freedom, labor freedom,
trade freedom, investment freedom and financial freedom.
Key highlights of 2018 IEF
Top 10 countries are: Hong Kong, Singapore, New Zealand, Switzerland, Australia, Ireland, Estonia, United
Kingdom, Canada and UAE.
The world economy overall is rated moderately free and world average has now risen three and a half
points, from 57.6 to 61.1 since the first edition of the index was released in 1995.
India’s Neighbours: Bhutan (87), Sri Lanka (111), Bangladesh (128), Pakistan (131) and Nepal (133). China
with 57.4 points was ranked 111th. It has jumped one spot compared from 112th rank in previous edition.

BRICS: South Africa (77), Russia (107), China (111), India (130) and Brazil (153).
India related Facts: India is developing into open-market economy, but traces of its past autarkic policies
still remain. The economic liberalisation measures undertaken in India, including industrial deregulation,
privatisation of state-owned enterprises and reduced controls on foreign trade and investment since in
early 1990s has accelerated growth. However, corruption, underdeveloped infrastructure, restrictive and
burdensome regulatory environment and poor financial and budget management continue to undermine
overall development.
Cabinet delegates power to Finance and Oil Ministers to award oil and gas blocks
Apr 12 2018
The Cabinet Committee on Economic Affairs (CCEA) has delegated powers to Finance and Petroleum
Ministers to award oil and gas exploration blocks to successful bidders under Hydrocarbon Exploration
Licensing Policy (HELP). Under HELP, exploration blocks are to be awarded twice in a year and currently
awarding of blocks requires the CCEA’s approval. Delegation of these powers will expedite decision
making process on awarding blocks and further enhance ease of doing business in petroleum and natural
gas sector.
Background
Under HELP, Empowered Committee of Secretaries (ECS) considers Bid Evaluation Criteria (BEC),
conducts negotiations with bidders wherever necessary and makes recommendations to CCEA on award
of blocks. Then CCEA approves award of blocks.
The entire process, including Inter Ministerial Consultations (IMC) is quite lengthy and time consuming.
It hampers ease of doing business. So it was desirable to shorten duration of time taken for award of
blocks and contract areas. Under HELP the competitive bidding is continuous process and blocks are
awarded twice year.
Hydrocarbon Exploration and Licensing Policy (HELP)
Central Government had launched Hydrocarbon Exploration and Licensing Policy (HELP) in March 2016,
as a new policy regime for Exploration & Production (E&P) in petroleum and natural gas sector. Its main
features are Revenue Sharing Contract (RCS), single Licence for exploration and production of
conventional as well as unconventional hydrocarbon resources, marketing and pricing freedom etc. Open
Acreage Licensing Policy (OALP) is also main innovative feature under HELP wherein investor can carve
out blocks of their own interest and submit an expression of interest (Eol) throughout year. Based on areas
for which EoI has been expressed bidding is conducted every 6 months.
CCEA approves framework for Coal Bed Methane extraction by Coal India
Apr 12 2018
The Cabinet Committee on Economic Affairs (CCEA) has relaxed rules for state-owned Coal India Ltd (CIL)
for extraction of Coal Bed Methane (CBM) lying below coal seams in its blocks in bid to quickly boost
production. Till now, CIL had to apply to oil ministry for a licence to extract coal-bed methane (CBM) from
its coal blocks.
Key Facts
CCEA has approved amending clause 3(xiii) of 2015 notification issued by Ministry of Petroleum & Natural
Gas (MoP&NG) under Section 12 of Oil Fields (Regulation and Development) Act (ORD Act), 1948. The
decision is in line with the Government’s initiatives of ‘Ease of Doing Business’.
The amendment is granted under Petroleum & Natural Gas Rules 1959 (PNG Rules, 1959) to CIL and its
subsidiaries for not applying for grant of license and lease under PNG Rules, 1959 for extraction of Coal
Bed Methane (CBM) under their coal bearing areas.
Significance
It will expedite the exploration and exploitation of CBM, enhance availability of natural gas and reduce gap
in demand and supply of natural gas. The increased development activities for exploration and
exploitation of CBM gas reserves will generate economic activities, thus create employment opportunities.
Coal Bed Methane (CBM)
CBM is generic term used for gas that is found in adsorbed state in coal. It is natural gas found in coal
seams. It mainly consists of Methane (CH4) with minor amounts of nitrogen (N2), carbon dioxide (CO2)

and heavier hydrocarbons like ethane (C2H6). It is clean source of energy. During the initial years of
mining, CBM was vented out and wasted into the atmosphere as it was considered as serious safety
hazard while conducting coal mining operations. However, later with advancement of technology it was
possible to extract CBM, a precious energy resource and an unconventional form of natural gas.
Advantages of CBM as a fuel
It is environmentally safe and clean fuel which on combustion emits only carbon dioxide and water. It is
not only considered as an efficient fuel but also reduces emission of greenhouse gas from coal mining. Its
extraction prior to coal mining activities makes mining activities safer by degassing the coal seams.
11 public sector banks placed under RBI’s PCA Framework
Apr 9 2018
The Reserve Bank of India (RBI) has placed 11 public sector banks (PSBs) out of 21 State-owned banks under
its Prompt Corrective Action (PCA) framework because of deteriorating performance. Three-four more
PSBs are expected to be brought under PCA framework.
Key Facts
The 11 banks already under PCA framework are IDBI Bank, UCO Bank, Bank of India (BoI), Central Bank of
India, Indian Overseas Bank, Dena Bank, Oriental Bank of Commerce (OBC), Bank of Maharashtra (BoM),
United Bank of India, Corporation Bank and Allahabad Bank.
Since PCA framework restricts amount ofankitloans banks can| extend, placing 11 PSBs under it will put
pressure on credit being made available to companies especially MSMEs. Large companies have access to
corporate bond market so they may not be impacted immediately. These banks may take at least another
6-9 months before they report any noticeable improvement in key regulatory indicators, which will help
them come out of PCA.
Prompt Corrective Action (PCA) framework
PCA is process or mechanism to ensure that banks don’t go bust. Under it, RBI has put in place some
trigger points to assess, monitor, control and take corrective actions on banks which are weak and
troubled. It was first introduced after global economy incurred huge losses due to failure of financial
institutions during 1980s-90s.
According to latest PCA framework, banks to be placed under it are assessed on three parameters viz.
Capital ratios, Asset Quality and Profitability. Indicators to be tracked for these three parameters are CRAR
(Capital to Risk weighted Assets Ratio)/Common Equity Tier I ratio, Net NPA (non-performing assets)
ratio and Return on Assets (RoA) respectively. If banks breach of any risk threshold mentioned above, it
results in invocation of PCA against them.
RBI enforces these guidelines to ensure banks do not go bust and follow prompt measures to put their
house in order. It had tightened its PCA framework in April 2017 to turn around lenders with weak
operational and financial metrics,
Depending on the risk thresholds set in PCA rules, banks placed under it are restricted from expanding
number of branches, staff recruitment and increasing size of their loan book. Other restrictions include
higher provisions for bad loans and disbursal only to those companies whose borrowing is above
investment grades.
RBI switches back to GDP model from GVA model to measure economy
Apr 8 2018
The Reserve Bank of India switched back to gross domestic product (GDP) model from the gross value
added (GVA) methodology to provide its estimate of economic activity in the country. The switch to GDP
is mainly to conform to international standards and global best practices.
Key Facts
The GVA methodology gives picture of state of economic activity from producers’ side or supply side
whereas the GDP model gives picture from consumers’ side or demand perspective. Globally, performance
of most economies is gauged in terms of GDP model. This is also approach followed by multilateral
institutions, international analysts and investors because it facilitates easy cross-country comparisons.
Background
Government had started analysing growth estimates using GVA methodology from January 2015 and had

also changed the base year to 2018 from January 2018. Even the Central Statistical Office (CSO) has
started using GDP model as supply-side measure of economic activity as main measure of economic
activities since January 15, 2018.
ICICI Bank becomes first Indian bank to go live on SWIFT’s GPI service
Apr 7 2018
India’s largest private sector lender ICICI Bank became first Indian bank to go live on SWIFT’s (Society for
World Interbank Financial Telecommunication System) Global Payment Innovation (GPI), an improved
cross-border payments service.
SWFIT GPI
SWFIT GPI was launched in May 2017 to help banks to track their global transactions at all times, keeping
full vigil on payments activity. It covers all payment instructions sent across network, enabling GPI banks
to track all their SWIFT payment instructions at all times, and giving them full visibility over all their
payments activity. It accounts for 10% of cross border payment traffic on SWIFT network and has enabled
more than hundred billion dollars to be transferred across world rapidly and securely every day.
Benefits
It improves customer experience by increasing speed, transparency and automatically provides status
updates to all GPI banks involved in any GPI payment chain. It allows banks to confirm when payment has
been completed. It facilitates more accurateankitreconciliation of| payments and invoices, optimises liquidity
with improved cash forecasts and reduces exposure to Foreign exchange risk, with same-day processing
of funds in beneficiaries’ time zones.
SWIFT (Society for World Interbank Financial Telecommunication System)
SWIFT is global financial messaging service that enables financial institutions worldwide to send and
receive information about financial transactions in secure, standardized and reliable environment. It is
used to transmit messages relating to cross border financial transactions. It was founded in 1973 and is
headquartered in La Hulpe, Belgium.
Global Logistics Summit 2018 held in New Delhi
Apr 7 2018
The Global Logistics Summit (GLS-2018) was held in New Delhi from April 5-6, 2018 to improve logistics
and connectivity which are vital for increasing intra-state and international trade flows.
The summit was organised by Department of Commerce, Ministry of Commerce & Industry along with
Federation of Indian Chambers of Commerce & Industry (FICCI) and World Bank Group. It provided
platform to hold discussions for global experts, academics, government officials and private sector and
industry representatives.
Logistic Sector
The sector involves transportation, material handling, warehousing, packaging, shipping security,
inventory management, and supply chain management, procurement, and customs service. Government
has defined logistic as multimodal logistics park comprising an Inland Container Depot (ICD) with a
minimum investment of Rs.50 crore and minimum area of 10 acre. In November 2017, logistic sector was
granted infrastructure status.
Importance of Logistic Sector
India spends around 14.4% of its GDP on logistics and transportation sector. It employs over 45 million
people across country and its certain sub-sectors growing at rate of 15% and even 30-40% per annum. It
provides efficient and cost effective flow of goods from manufacturing sector on which other commercial
sectors dependent.
RBI’s first bimonthly policy FY 2018-19: Policy rates unchanged
Apr 6 2018
The Reserve Bank of India (RBI) in its first bimonthly policy review for financial year 2018-19 has decided
to maintain status quo in policy rates by keeping repo rate unchanged at 6.0%. This decision was taken by
RBI’s six member Monetary Policy Committee (MPC) headed by RBI Governor Urjit Patel.
Key Highlights of 1st Bi-monthly policy
The MPC in its first bimonthly policy review for FY 19 voted 5-1 in favour of leaving the Repo rate

unchanged. It is fourth time in a row RBI has unchanged repo rate, the rate at which RBI lends funds to
banks.
Inflation Projection: RBI has remained cautious on continuing inflation risks. The consumer inflation for
FY19 was projected to 4.7-5.1% in the first half of FY19 and 4.4% in second half as against forecast of
5.1-5.6% and 4.5-4.6%, respectively, in the last policy review.
RBI has flagged concerns about absence of more clarity on minimum support prices, monsoon outturn,
volatility of crude prices and impact of state government-led house rent allowance increases. Further, in
case there is any further fiscal slippage from Budget Estimates for 2018-19 it could adversely impact
outlook on inflation
Growth Projections: RBI shifted projecting GDP (gross domestic product) as against GVA (gross value
added) growth earlier. It sees GDP growth strengthening to 7.4% in FY19 from 6.6% in FY18 with growth at
7.3-7.4% in the first half and 7.3-7.6% in second half with risks evenly balanced. It also suggested that
output gap is closing but downside risks on global trade protectionism, market volatility and weak
domestic public finances exists.
Policy Rates
Repo rate: It was unchanged at 6%. It is rate at which RBI lends to its clients generally against government
securities.
Reverse Repo Rate: It was unchanged at 5.75%. It is rate at which banks lend funds to RBI.
Marginal Standing Facility (MSF) Rate: It was unchanged at 6.25%. It is rate at which scheduled banks can
borrow funds overnight from RBI against government securities. It is very short term borrowing scheme
for scheduled banks.
Bank Rate: It was unchanged at 6.25%. It is rate charged by central bank for lending funds to commercial
banks. Higher bank rate will translate to higher lending rates by banks. It influences lending rates of
commercial banks.
Cash Reserve Ratio (CRR): It was unchanged at 4%. It is amount of funds that banks have to keep with RBI.
The RBI uses CRR to drain out excessive money from system.
Statutory Liquidity Ratio (SLR): It was unchanged at 19.5%. It is amount that banks have to maintain a
stipulated proportion of their net demand and time liabilities (NDTL) in form of liquid assets like cash,
gold and unencumbered securities, treasury bills, dated securities etc.
RBI constitutes inter-departmental group to study launching of fiat digital currency
Apr 6 2018
The Reserve Bank of India (RBI) has constituted an inter-departmental group to study and provide
guidance on feasibility to introduce fiat digital currency backed by it. It will be submitted by end-June
2018.
Fiat currency is currency that a government has declared to be legal tender. It is different from
cryptocurrency or virtual currency like Bitcoin which is not legal tender and not backed by government.
Background
Central banks around world are exploring options of introducing ‘fiat’ digital currencies in landscape of
rapidly changing payments industry with technological evolution. The emergence of private digital tokens
such as virtual currencies and rising costs of managing fiat paper and metallic money have led them to
explore option of introducing ‘fiat’ digital currencies.
The Bank of England was one of the first to initiate a global discussion on prospects for introduction on
Fiat digital currency. In November 2017, the central bank of Uruguay had announced to begin test to issue
digital Uruguayan pesos. The Central bank of Sweden is however the closest to consider its
implementation.
Fiat Digital Currency
Fiat Digital Currency (or Central bank digital currency) is the digital form of fiat money which is currency
established as money by government regulation or law. As opposed to private digital tokens, fiat digital
currency will be issued by central bank.
Fiat Digital Currency will constitute liability of central bank, and will be in circulation in addition to

widely used paper and metallic currency. They will be based on blockchain technology which is backbone
of unregulated virtual currencies like bitcoin.
They will be legal tender as compared to virtual currencies that raise concerns of consumer protection,
market integrity and money laundering, among others. Blockchain technology behind it has potential
benefit for financial inclusion and enhancing efficiency of financial system.
RBI defers adoption of Ind-AS by 1 year for banks

Apr 6 2018
The Reserve Bank of India (RBI) has deferred adoption of Indian Accounting Standards (Ind AS) by
commercial banks for year (till April 2019) due to unpreparedness of banks to migrate to the new
accounting system.
RBI has requested Government to amend Banking Regulation Act, 1949 as format of financial statements
as prescribed under Schedule 3 of Act is not amenable to reporting financial statements under Ind-AS.
Moreover, RBI in its assessment has found that some of banks are still not prepared to move into new
accounting regime. RBI will continue to have proforma of financial statements from banks to monitor
progress banks are making towards migration to Ind-AS.

Ind AS
Ind AS is global accounting practice that lender is mandated to adopt. The practice is on par with
International Financial Reporting Standard (IFRS) 9. It governs the accounting and recording of financial
transactions as well as presentation of statements such as profit and loss account and balance sheet of
lender or a company.
Background
Banks and non-banking financial companies currently follow generally accepted accounting principles
(GAAP) standards. Corporate entities started complying with IndAS with effect from 1 April 2016. In
February 2016, RBI had issued circular mandating commercial banks, barring regional rural banks to
implement Ind AS from April 1, 2018. As part of this, RBI was asking banks to submit half-yearly returns
based in Ind-AS format. Key change under new rules was need to provision for accounts based on
expected loss, instead of when account turns into a non-performing asset (NPA). It is estimated that
scheduled commercial banks may need up to Rs 89,000 crore towards incremental provisioning for
advances while transiting to Ind-AS regime.
India becomes second largest manufacturer of crude steel
Apr 5 2018
According to Steel Users Federation of India (SUFI), India has overtaken Japan to become world’s second
largest producer of crude steel in February 2018. China is the |largest producer of crude steel in the world,
accounting for more than 50% of the production. Earlier in 2015, India had overtaken US to become third
largest producer of crude steel.
Key Facts
India’s crude steel production stood at 93.11 million tonnes (MT) for period April 2017 to February 2018
and was up 4.4% as compared with April 2016-February 2017 period. This helped to overtake Japan and
become second largest producer of crude steel in the world.
The growth in steel production was attributed to policies undertaken by government followed host of
steps taken to curb imports, push local demand with initiatives like Make in India and implement GST and
infrastructure projects, to encourage the domestic market.
Cabinet approves closure of Burn Standard Company Limited
Apr 5 2018
The Union Cabinet has approved closure of Central Public Sector Enterprise (CPSE) Burn Standard
Company Ltd (BSCL) under Ministry of Railways. This decision was taken in view of continuous poor
physical and financial performance of company for more than decade despite financial assistance and
other support from government and low probability of its revival in future.
Key Facts
The closure of company will save public funds, which are currently being used for loss making BSCL and
can be used for other developmental work. Central Government will provide one-time grant of Rs. 417.10
crore towards severance package and for clearing current liabilities of BSCL. In addition, outstanding loan
of Rs. 35 crore given to BSCL by Ministry of Railways will be written off. The severance package will
benefit 508 employees of BSCL from Voluntary Retirement Scheme (VRS).
Burn Standard Company Ltd (BSCL)
BSCL was incorporated in 1976 following nationalization and amalgamation of Burn and Company and
Indian Standard Wagon Company Limited in 1987 under Department of Heavy Industries (DHI). The
company was engaged in manufacturing and repair of wagons and production of steel.
It was referred to Board of Industrial and Financial Reconstruction (BIFR) in 1994 and was declared sick in
1995. The company continues to be sick company since then. Its administrative control was transferred
from DHI to Ministry of Railways in 2010 as approved by then Cabinet Committee on Economic Affairs
(CCEA).
SEBI eases algorithm trade rules in commodity exchanges
Apr 4 2018
The Securities Exchange Board of India (SEBI) has relaxed algorithm trading norms at commodity
derivatives exchanges. The market regulator has raised limit of trading using algorithm trading process

up to 100 orders per second by user from the existing limit of 20 orders per second.
Key Facts
The decision was taken after receiving representations from exchanges along with views of SEBI’s
subcommittee- Commodity Derivatives Advisory Committee. SEBI has asked exchanges to ensure that
limit provided by it is subject to its ability to handle load. Besides, it also has decided to do away with
requirement of empanelment of system auditors by the exchanges for system audit of algorithmic trading.
Algorithmic trading
Algorithmic trading in financial markets refers to transaction orders generated by using advanced
mathematical models that involves automated execution of trade. It uses mathematical models and
software codes to make transaction decisions on exchanges and execute them at high speed.
This technology-driven trading enables traders to take advantage of any profit making opportunities
arising in the market much before a human trader can even spot them. It was introduced in India in 2009.
At present, on National Stock Exchange (NSE), algorithm trades accounts close to 16% of all trades. On the
Bombay Stock Exchange (BSE), it was 8.56% in January 2017.
Difference between algo trading and high frequency trading (HFT)
Both are often used inter-changeably, but they are not really same. HFT refers to high-volume orders
executed within split-seconds to make immediate gains from market opportunities. HFT trading are often
backed by algo trading, which spot trading opportunity.
India’s manufacturing sector growth falls to five-month low in March 2018: PMI
Apr 4 2018
According to monthly survey Nikkei India Manufacturing Purchasing Managers Index (PMI), India’s
manufacturing sector activity fell to five-month low in March 2018. It felled from 52.1 in February 2018 to
five-month low of 51.0 in March 2018 indicating slowest improvement in operating conditions recorded by
survey since October 2017.
PMI March 2018 Survey
Manufacturing activity: This is eighth consecutive month that PMI has remained above 50-point-mark.
In PMI parlance, reading above 50 indicates growth and below it denotes contraction. March 2018 figure
indicates manufacturing activity remained in expansion mode. But five month low indicates that new
business orders rose at slower pace and decline in employment as firms showed little appetite for
recruitment.
Exports: India’s new export orders rose during March 2018, but on negative note, further advances in
trade disputes may potentially weigh on sales to international clients. The impact of US tariffs on steel and
aluminium on India is expected to be limited, as India’s exports in both metals to US accounted for less
than 0.4% of total merchandise exports.
PMI employment data: Firms have reduced their payroll numbers for first time in eight months, albeit at
fractional pace. It gives warning signs in the labour market. Manufacturers operating in consumption and
intermediate market groups signaled no appetite for recruitment
Business sentiment: It remained weak, reflecting some concerns regarding business prospects over next
12 months.
Prices front: The recent build-up of inflationary pressures eased in March 2018, with softer increases in
both input costs and output prices recorded.
PMI is usually released at start of month, much before most of official data on industrial output,
manufacturing and GDP growth is made available. It is, therefore, considered a good leading indicator of
output.
Government inks 16 APAs in March 2018

Apr 4 2018
The Central Board of Direct Taxes (CBDT) has entered into 14 Unilateral Advance Pricing Agreements
(UAPA) and 2 Bilateral Advance Pricing Agreements (BAPA) in March 2018. The 2 bilateral APAs were
entered into with US . With the signing of these Agreements, CBDT has entered total 219 APAs. This
includes 199 Unilateral APAs and 20 Bilateral APAs. Of this, 67 APAs (58 Unilateral and 9 Bilateral) were
signed in FY 2017-18.
Key Facts
The 16 APAs entered into during March, 2018 pertain to various sectors of economy like Information
Technology, Telecommunication, Pharmaceutical, Automobile, Beverage, Trading, Manufacturing and
Banking, Finance and Insurance.
The international transactions covered under them include payment of royalty fee, provision of corporate
guarantee, business support services, marketing support services, engineering design services,
engineering support services, contract manufacturing, merchanting trade of agro commodity,
import/export of components, provision of IT services, ITES, investment advisory services, availing of
technical services, etc.
Advance Pricing Agreement (APA) Scheme
The APA scheme launched by Governmentankitendeavours to provide
saini | mindhunter786@gmail.com | certainty to taxpayers in domain of
transfer pricing by specifying methods of pricing and setting prices of international transactions in
advance. Its provision was introduced in Income-tax Act, 1961 in 2012 and Rollback provisions to it were
introduced in 2014.
The scheme aims to strengthen Government’s resolve of fostering non-adversarial tax regime. It has
significantly contributed towards improving ease of doing business in India and has been appreciated
nationally and internationally for being able to address complex transfer pricing issues in a fair and
transparent manner.
Significance
APA gives certainty to MNCs that agree on certain principles in valuation of their cross-border
transactions. They also provide assessees with alternate dispute resolution mechanism with respect to
transfer pricing. It helps in determining arm’s length price of international transactions in advance for
maximum period of five future years.
Indian Army, HDFC Bank ink MoU on defence salary package
Apr 4 2018
Indian Army has signed Memorandum of Undertaking (MoU) with HDFC Bank on the Defence Salary
Package. It is renewed version first MoU signed between Indian Army HDFC Bank and in 2011 and
renewed in March 2015. The current MoU is tailor made to suit requirements of serving soldiers,
pensioners and families.
Key Facts
This MoU will benefit large number of serving and retired Indian Army personnel who are having their
accounts with HDFC bank. It will also provide them an opportunity to access modern banking
facilities.Under current MoU, Indian Army personnel will get other benefits like free personal accident
death cover and free permanent disability cover of Rs 30 lakhs. The dependent child in case of accidental
death of defence personnel will get free educational cover of upto Rs 1 Lakh per year for four years. They
will also get 100% processing fees waived for Car Loans and Personal Loans.
Background
Currently Indian Army has MoUs on Defence Salary Package with 11 public and private sector banks.
These MoUs are considered for inception and renewal with banks on analyzing their utility and suitability
to requirements of serving soldiers, pensioners and families.
Core sector growth up by 5.3% in February 2018
Apr 3 2018
According to index of eight core industries released by Ministry of Commerce and Industry, eight core
infrastructure sectors grew by 5.3% in February 2018. It was mainly due to robust performance of refinery
products, fertilizer and cement segments. The core sectors expanded by 6.1% in January 2018 and it grew
by just 0.6% in February 2017. Cumulatively, these 8 sectors grew by 4.3% in April-February 2017-18
against 4.7% in the same period last fiscal.
Breakaway of January Performance
Petroleum refinery production: It recorded 7.8% growth.
Fertilizer production: It recorded 5.3% growth.
Cement production: It recorded 22.9% growth.
Electricity generation: It grew by 4%.
Coal production: It grew by 1.4%.
Steel production: It grew by 5%.
Crude oil production: It declined by 2.4%.
Natural Gas production: It declined by 1.5%.
Core industries
Core industries can be defined as main industry of the economy. In most countries, there is particular
industry that seems to be backbone of all other industries and it qualifies to be the core industry.In India,
there are eight core sectors comprising of coal, crude oil, natural gas, petroleum refinery products,
fertilisers, steel, cement and electricity. The eight infrastructure sectors, constitute 40.27% of the total
index of industrial production (IIP).
India ranks 37th in global startup ecosystem in 2017: Startupblink Report
Apr 3 2018
According to report released by global startup ecosystem map Startupblink, India was ranked 37th out of
125 countries in global startup ecosystem in 2017.
Startupblink is a global startup ecosystem map with tens of thousands of registered startups, coworking
spaces, and accelerators. Its report prepared in association with ANSYS Startup Program measures
startup ecosystem strength and activity. It includes global ranking index of 125 countries and 900 cities,
measuring their startup ecosystem strength and activity. The rankings of country are based on thousands
of data points gathered from various sources, such as incubators and accelerators that appear on
StartupBlink global ecosystem.
Key Facts
Top 5 Countries in Global startup ecosystem in 2017 are United States (1st), United Kingdom (2nd), Canada
(3rd), Israel (4th) and Germany (5th). Small nations of less than 10 million inhabitants like Sweden (6th),
Denmark (7th), Switzerland (8th), and Singapore (10th) were placed in the top 10.
In Asia, the list was topped by Singapore (10th) and was closely followed by China (12th), South Korea
(17th), and Japan (20th). In Africa, the list was topped by South Africa (38th) followed by Kenya (53rd),
Egypt (54th), and Nigeria (57th).
India’s rank indicates that more has to be done in terms of ease of doing business, startup policies, and
complicated tax compliance. The Indian startup ecosystem is also yet to see major exits which is seen as
important measure to gauge the maturity of a startup ecosystem. India ranked below Latin American
countries Mexico and Chile which stood at 30 and 33 respectively. Bengaluru, New Delhi, and Mumbai
featured in the list top cities in the global ranking.
Government levies 10% import duty on key smartphone components
Apr 3 2018
The Central Bureau of Excise and Customs (CBEC) under Finance Ministry has imposed a 10% duty on
imports of key smartphone components such as populated printed circuit boards (PCBs), camera modules
and connectors. At present there is zero import duty imposed on the three components.
Significance
This move will make imports of components expensive while giving stimulus to local manufacturing
under Make in India program. Such input parts for making these components locally, will not attract any
import duties. But it will lead to increase in prices of mobile phones for those companies that do not make
or source these components locally. PCBsankitmake saini | mindhunter786@gmail.com |
up about 50% of cost of making smart phone. This
decision will push local assembly or manufacturing of these components as companies who make here will
get a price advantage over those who don’t.
Background
This decision follows the government’s announcement to impose 20% basic customs duty (BCD) on fully
built mobile phones, which came into effect from February 1, 2018 as part of its phased manufacturing
program (PMP). Since 2014, import duties have acted as catalyst to grow investment into mobile phone
manufacturing in India, with number of factories increasing to 120 from handful. International contract
manufacturing companies like Foxconn, Flex, Wistron and handset makers from China, India besides
South Korea’s Samsung have taken local production of mobile phones to 225 million in 2017, which his
more than 80% of the phones sold in country.
Phased Manufacturing Programme (PMP)
Government had PMP in May 2017 for promoting the growth of domestic manufacturing of Cellular
mobile handsets. This programme is under Ministry of Electronics and Information Technology (MieTY).
Its overall aim is to impose duties (differential duty regime) and give tax reliefs and incentives on select
products involved in domestic manufacturing of cellular handsets. It is called phased manufacturing
programme because it will give fiscal benefits to domestic manufacturing of various components of
cellular handsets in different fiscals.
Atal Pension Yojana subscriber base touches over 97 lakh: PFRDA
Apr 3 2018
According to Pension Fund Regulatory and Development Authority (PFRDA), the subscriber base of Atal
Pension Yojana (APY) stood at 97.05 lakh at end of 2017-18 fiscal. It was lower than target of 1 crore set by
pension regulator PFRDA.
The scheme saw addition of over 48.21 lakh subscribers in 2017-18. In 2016-17, total number of subscribers
under APY reached 48.83 lakh with absolute incremental addition of 23.98 lakh accounts. In 2015-16, as
many as 24.84 lakh subscribers were under APY fold.
Atal Pension Yojana (APY)
APY was launched in June 2015 with aim to provide affordable universal access to essential social security
protection to unorganized work force of country, which makes major chunk of labour force (88%). It had
replaced earlier government-backed pension Swavalamban scheme targeted at the unorganised sector.
It is available to all citizens of India in the age group of 18-40 years (making minimum period of
contribution by subscriber is 20 years). Under scheme, subscriber will receive minimum guaranteed
pension of Rs. 1000 to Rs. 5000 per month, depending on his contribution, from age of 60 years. There is
no exit to scheme before age of 60. In case of death of subscriber, spouse of subscriber is entitled for same
amount of pension till his or her death.

Pension Fund Regulatory and Development Authority (PFRDA)
PFRDA is a statuary pension regulatory authority of India established under PFRDA Act, 2003 enacted by
Parliament. It functions under the aegis of Ministry of Finance, Department of Financial Services. It was
established in August 2003 and is headquartered in New Delhi.
PFRDA promotes old age income security by establishing, developing and regulating pension funds. It also
protects interests of subscribers to schemes of pension funds and related matters. It is responsible for
appointment of various intermediate agencies such as Central Record Keeping Agency (CRA), Custodian,
Pension Fund Managers, NPS Trustee Bank, etc.
SIDBI celebrates its foundation day
Apr 3 2018
The Small Industries Development Bank of India (SIDBI) celebrated its foundation day this year on April 2,
2018. The day was celebrated as day of Sampark (connect), Sanwad (interaction), Suraksha (security) and
Sampreshan (disseminate). Several initiatives were launched on this occasion. They are MSME contact
programme; Samridhhi, a virtual assistant; revamped SIDBI website (www.sidbi.in) and Bankability Kit.
Small Industries Development Bank of India (SIDBI)
SIDBI is the principal development financial institution for promotion, financing and development of Micro,
Small and Medium Enterprises (MSME) sectorankit insaini
India. It was established
| mindhunter786@gmail.com | on April 2, 1990 through an Act of
Parliament (thus, it is statutory body). It is headquartered in Lucknow, Uttar Pradesh.
SIDBI aims to facilitate and strengthen credit flow to MSMEs and address both financial and
developmental gaps in MSME eco-system across the country. It co-ordinates functions of institutions
engaged in similar activities. Currently, the shares of SIDBI are held by Central Government and 29 other
institutions including public sector banks (PSBs), insurance companies owned and controlled by Central
Government.
MSME Sector
MSME is second largest employment generating sector after agriculture sector. It provides 80% of jobs in
industry with just 20% of investment. It contributes around 31% to nation’s GDP and 45% and 34% share of
the overall exports and manufacturing output (2017 report).
Multi Modal Logistic Park inaugurated at Balli, Goa
Apr 3 2018
Multi Modal Logistics Park at Balli Station near Madgaon in Goa was recently inaugurated. The part is
located on Konkan Railway route. It has been set as per MoU entered between Konkan Railway &
Container Corporation of India Ltd (CONCOR). It will benefit trade and industry from economic transport
solutions and state of art facilities.
Key Facts
The facility is initially spread over 81,300 square meters with scope for expansion with traffic growth in
future. It can handle both domestic and exim container traffic. In addition, it can also handle commodities
transported by both open and covered wagons. It has 5000 square meters of Custom Bonded
Warehousing space. It will also provide host of value added services like stuffing, repackaging etc.
Significance
The park from its economic transport solutions and state of the art facilities will benefit both trade and
industry in Goa. It will generate additional source of revenue for Konkan Railway. The container depot at
park will reduce time required to cover distance between JNPT port (Mumbai) and Goa via road in 30-40
hrs from 16 to 18 hrs. Thus, it will save time, along with cost of transportation and relieve congestion on
road and fuel.
India becomes World’s second largest mobile phone producer
Apr 1 2018
India has replaced Vietnam to become second largest producer of mobile phones in 2017. This information
has been shared by government on the basis of data provided by Indian Cellular Association.
Key Facts
Currently, China stands at number one in mobile production around the world. The top three mobile

producing countries are China, India and Vietnam.

Annual production of mobile phones in India increased from 3 million units in 2014 to 11 million
units in 2017. With the rise in mobile phone production, imports of the devices in the country also
reduced to less than half in 2017-18.
The government has established a Fast Track Task Force (FTTF) under Ministry of Electronics and IT, that
has set target to achieve around 500 million mobile phone production in India by 2019.
E-way Bill comes into effect on Inter-state movement of goods over Rs 50,000
Apr 1 2018
As per previous decision of GST council, the e-way Bill System for Inter-State movement of goods across
the country is being introduced from April 1, 2018. From this date, the businesses and transporters
moving goods worth over Rs. 50,000 from one state to another will have to carry an electronic or e-way
bill.
The e-way bill will apply to inter-state transportation of goods worth over Rs. 50,000 through road,
railways, airways and vessels.
Background
The e-way bill provision of the goods and services tax (GST) was first introduced on February 1, 2018.
However due to some technical issues, the GST Council decided to roll-out of the e-way bill starting with
inter-state from April 1 and intra-state from ankit
Aprilsaini | mindhunter786@gmail.com |
15, 2018.
Now, the platform has been made more robust and as many as 75 lakh inter-state e-way bills could be
generated daily without any glitch. The system has been designed and developed by the National
Informatics Centre (NIC).
About E-way bill
E-way bill is an electric document generated on the GST Portal, which is a common and shared
information technology (IT) infrastructure between the Centre and States; and acts as evidence for
movement of goods.
A company or an entity can upload relevant information prior to movement of a goods consignment from
one state to another. Subsequently, the E-way bill for that consignment is generated via the GST portal. It
may be noted that such a mechanism helps reduce the burden of tax collection under the GST regime and
it is only applicable to transport of goods amounting to more than Rs 50,000 in value.
India receives first LNG consignment from United States
Mar 31 2018
India has received first liquefied natural gas (LNG) cargo comprising 1.2 Lakh tones of the Gas from United
States. The cargo has landed at the Dabhol regasification terminal in Maharashtra.
About the India-US LNG Contract
The recent consignment of LNG has been imported from US under a long-term contract of 20 years. This
USD 32 Billion contract was signed between India’s GAIL and America’s Dominion Energy Cove Point
project in Maryland and Cheniere Energy Inc’s Sabine Pass Project in Louisiana.
India America Trade Relations
With a bilateral trade of around USD 126.1 billion in 2017, currently, United States is among the largest
trade partners of India. The trade between two countries has increased at a compound annual growth rate
of 11.4% from USD 20 Billion in 2000.
India has been so far importing LNG from Middle East, particularly Qatar. In recent times, USA has
increased production of petroleum products and has become one of the largest exporters of petroleum
products. The import of LNG contracts is based on premise of diversifying India’s sources for clean
energy. The government is promoting a shift towards gas-based economy but the current domestic
production and infrastructure don’t suffice.
India receives first US LNG shipment at Dabhol under long-term deal
Mar 30 2018
India received its first Liquid Natural Gas (LNG) cargo from United States (US) under long-term supply
deal. The first US-sourced LNG shipment was imported by state-owned GAIL on board of its chartered
LNG ship ‘Meridian Spirit’ from Cheniere Energy’s Sabine Pass LNG export facility in Louisiana. It was
discharged at GAIL’s Dabhol terminal, Maharashtra after 25 days voyage. The development comes on heels
of India’s first import of crude oil from US in October 2017.
Background
GAIL has signed two 20-year Sale Purchase Agreement (SPA) potentially worth US $32 billion with US’
natural gas exporter Dominion Cove Point project in Maryland and tSabine Pass project in Louisiana.
Under it, GAIL will purchase around 3.5 Million Tonne of LNG per year from Sabine Pass. This shipment
will help GAIL to diversify its portfolio both on price indexation and geographical locations.
Background
India primarily imports LNG from Qatar and Australia under long-term contracts. In recent times, it has
been trying to diversify its natural gas sources. Moreover, after former US President Barack Obama lifted
US’s 40 year-old oil export ban, Indian oil and gas companies in response bought shipments of US crude to
check for cost competitiveness and its compatibility with Indian refinery configuration. India is also
trying to increase its use of natural gas in the energy mix from current 6% to 15% within five years inorder
reduce dependence on oil and to secure energy supplies and reduce emissions by using more natural gas.
CCEA approves bulk export of all edible oils
Mar 29 2018
The Cabinet Committee on Economic Affairs (CCEA) has approved for removal of prohibition on export of
all varieties of edible oils except mustard oil. The
ankit saini proposal was
| mindhunter786@gmail.com | forwarded by Ministry of Commerce &
Industry. The CCEA has also approved empowering Committee, chaired by Secretary, Department of
Food & Public Distribution to review the export and import policy on all varieties of edible oils.
Key Facts
The empowering committee will consider measures such as quantitative restrictions, prior registration,
imposition of Minimum Export Price (MEP) and changes in import duties depending on domestic
production and demand, domestic and international prices and international trade volumes. The CCEA
has discontinued Inter-Ministerial Committee headed by Commerce Secretary, mandated to review
export of edible oils in consumer packs and calibrate MEP from time to time.
Impact
Removing of restrictions on export of all edible oils will provide additional marketing avenues for edible
oils and oilseeds. It will benefit the farmers by way of better realisation for oilseeds. It will also result in
utilization of idle capacity in India’s edible oils industry. It is considered as a step towards Ease of Doing
Business by removing confusion arising out of prohibition on export of edible oils and plethora of
exemptions.
Background
The production of oilseeds in 2016-17 has seen quantum jump in comparison to past two years. It is
expected that production of oilseeds in 2017-18 is going to sustain at same levels. At present, only certain
edible oils are allowed be exported in bulk and other oils only in consumer packs with MEP. In order to
support growing production of oilseeds and to explore additional avenues for marketing of edible oils,
allowing bulk export of all edible oils with the exception of mustard oil which is an item of mass
consumption in India was seen required step.
GPI Tracker system: SWIFT broadens payment tracking capabilities
Mar 27 2018
The SWIFT (Society for World Interbank Financial Telecommunication System) platform has expanded its
GPI (Global Payment Innovation) Tracker system to help banks track their global transactions at all times
and keep full vigil on payments activity.
Key Facts
From November 2018, GPI Tracker system i.e. unique end-to-end transaction reference will be included in
all payment instructions carried between all 11,000 customers on SWIFT at all times, across more than
200 countries and territories. The expansion of GPI Tracker will cover all payment instructions sent
across the network and give them full visibility over all their payments activity. It will significantly extend
transparency and drive more banks to join service to make GPI the new normal in cross-border payments
SWFIT GPI
SWFIT GPI was launched in May 2017 to help banks to track their global transactions at all times, keeping
full vigil on payments activity. It covers all payment instructions sent across network, enabling GPI banks
to track all their SWIFT payment instructions at all times, and giving them full visibility over all their
payments activity. It accounts for 10% of cross border payment traffic on SWIFT network and has enabled
more than hundred billion dollars to be transferred across world rapidly and securely every day.
Benefits
It improves customer experience by increasing speed, transparency and automatically provides
status updates to all GPI banks involved in any GPI payment chain. It allows banks to confirm when
payment has been completed.
It facilitates more accurate reconciliation of payments and invoices, optimises liquidity with
improved cash forecasts and reduces exposure to Foreign exchange risk, with same-day processing
of funds in beneficiaries’ time zones.
SWIFT (Society for World Interbank Financial Telecommunication System) platform
used to transmit messages relating to cross border financial transactions.
It was founded in 1973 and is headquartered in La Hulpe, Belgium. It is a cooperative society under Belgian
law owned by its member financial institutions with offices around the world. Globally over 11,000
financial institutions in more than 200 countries
ankit saini | use services of
mindhunter786@gmail.com | SWIFT.
SWIFT does not facilitate funds transfer, rather, it sends payment orders, that must be settled by
correspondent accounts that institutions have with each other. On receiving this message through
SWIFT, banks abroad, mostly branches of domestic banks abroad provide funds to the company.
MCX launches world’s first brass futures contracts
Mar 23 2018
India’s largest commodities exchange platform, Multi Commodity Exchange of India Limited (MCX)
launched world’s first brass futures contracts. It will facilitate brass stakeholders to hedge their price risk.
MCX Brass futures will be the first non-ferrous contract with compulsory delivery option. Its price will be
quoted as per rate at ex-warehouse Jamnagar (delivery centre) inclusive of taxes and duties.
Significance of MCX Brass futures
It will provide its stakeholders with more organised and robust price discovery platform. It will also help
them to use national level benchmark price as ready reference. It will enable them to mitigate their price
risk. It will lead to best price discovery for brass, which is of key relevance to its stakeholders including
importers, exporters, manufacturers, refiners, and processors among others in country, who are looking
to hedge their price exposure.
Brass Industry
Brass is metallic alloy of copper (55-60%) and zinc (40-45%) with small amounts of lead and iron. It is used
in industries like electrical appliance, pump parts, marine engines, switch gears, sanitary ware,
automobiles and defence.
The estimated annual production of brass in India is approximately between 100,000-150,000 tonne,
which includes production through primary metal and recycled brass. India is largest exporter of finished
brass products. India imports huge quantities of brass scrap from US, Middle East, Africa and Europe
which is then separated and recycled to make brass.
Out of the 5,000 small and medium units (SMEs) producing brass in the country, about 3,000 are located
at Jamnagar, Gujarat which accounts for 80% of brass produced in India. The rest of the companies are
spread across Moradabad (Uttar Pradesh) and Jagadhari (Haryana).
Multi Commodity Exchange (MCX)
MCX is country’s first listed commodity futures exchange that facilitates online trading, and clearing and
settlement of commodity futures transactions, thereby providing platform for risk management. It was
launched in November 2003 and operates within regulatory framework of Forward Contracts Regulation
Act, 1952 (FCRA, 1952) under SEBI.
MCX offers futures trading in bullion, ferrous and non-ferrous metals, energy, and a number of
agricultural commodities (mentha oil, cardamom, potatoes, palm oil and others). Globally, MCX ranks no. 1

in silver, no. 2 in natural gas, no. 3 in crude oil and gold in futures trading.
India, Hong Kong sign double tax agreement
Mar 20 2018
India and Hong Kong have signed agreement for the avoidance of double taxation and the prevention of
fiscal evasion with respect to taxes on income.
Hong Kong is former British colony and is special administrative region of China which enjoys a high
degree of autonomy under which it has an independent taxation system. It is an important financial and
trading partner of India and the absence of a treaty was seen hindrance in many ways.
Key Facts
This agreement will stimulate flow of investment, technology and personnel from India to Hong Kong and
vice versa, prevent double taxation and provide for exchange of information between two contracting
parties. It will also improve transparency in tax matters and will help curb tax evasion and tax avoidance.
It will provide investors advantage of lower withholding tax of 10% on interest or royalties provided they
fulfil main purpose test which broadly checks that transaction is not entered specifically to avoid taxes. It
will also provide for capital gains taxation of indirect transfers. It provides that gains from sale of shares
of company deriving more than 50% of its value from property situated in country will be taxed in that
country.
This agreement will give protection against double taxation to over 1,500 Indian companies and
businesses that have presence in Hong Kong as well as to Hong Kong-based companies providing services
in India.
Government imposes anti-dumping duty on Ofloxacin import from China
Mar 19 2018
The Revenue Department in the Finance Ministry has imposed anti-dumping duty on import of
‘Ofloxacin’, a pharma product used in treatment of certain infections from China. It was imposed for three
years following recommendations of Directorate General of Anti-Dumping and Allied Duties (DGAD) to
protect domestic producers from below-cost shipments. In its probe DGAD had found that Ofloxacin
exported to India from China was below its normal value, resulting in dumping. It had caused material
injury to the domestic industry.
Ofloxacin
Ofloxacin is in class of antibiotics called fluoroquinolones. It is used to treat certain infections including
bronchitis, pneumonia and infections of skin, bladder, urinary tract, reproductive organs, and prostate (a
male reproductive gland). It works by killing bacteria that cause infections.
Anti-dumping duty
It is an import duty imposed by government on imported products which have prices less than their
normal values or domestic price. It act as a protectionist and counter import measure used by a country
under multilateral World Trade Organisation (WTO) regime to protect its domestic producers and market
from below-cost/cheap imports. The duty is aimed at ensuring fair trading practises and creating level-
playing field for domestic producers with regard to foreign producers and exporters. It varies from
product to product and from country to country. In India, anti-dumping duty to be levied is recommended
by Ministry of Commerce (i.e. by DGAD), while Finance Ministry imposes it.
Pune tops in urban governance: ASICS 2017 report
Mar 16 2018
Pune was ranked first among 23 cities across India in terms of quality of urban governance in the fifth
edition of Annual Survey of India’s City-Systems (ASICS) 2017 report released by Bengaluru-based non-
profit organisation, Janaagraha.
ASICS 2017
The objective of survey was to measure preparedness of cities to deliver high quality infrastructure and
services in long term by evaluating city systems. It spans 23 Indian cities and factors in answers to 89
questions. These questions are classified on four categories viz. urban planning & design, urban capacities &
resources, transparency, accountability & participation and empowered & legitimate political representation.
These cities were scored on a scale of 0 (lowest) to 10 (highest) based on quality of laws, policies,
institutions and institutional processes that together help govern them. The report addresses five major
issues, and suggests solutions at local body, State and Central government levels. It underlines need for
sharp focus on City-Systems or institutional reforms to city governance in our cities.
Key Highlights of ASICS 2017
In it, Pune topped the list by scoring 5.1 out of 10 for the first time. It was followed by Kolkata,
Thiruvananthapuram, Bhubaneswar and Surat with scores in range of 4.6 to 4.5. Delhi moved 3 spots up
to 6th place against 9th in 2016 survey. Mumbai’s ranking fell from 6th in 2016 to 9th in 2017. The worst
performers in ASICS 2017 were Bengaluru (scoring the least at 3 out of 10), Chandigarh, Dehradun, Patna
and Chennai. These constituted bottom five cities with scores ranging between 3 and 3.3 out of 10.

India ranks 78th on WEF Energy Transition Index

Mar 15 2018
India was ranked at 78th among 114 countries on World Economic Forum’s (WEF) Energy Transition
Index (ETI) released as part of report titled Fostering Effective Energy Transition. The index ranks countries
on how well they are able to balance energy security and access with environmental sustainability and
affordability.
Key Facts
Top 10 countries in 2018 ETI: Sweden (1st), Norway (2nd), Switzerland (3rd), Finland (4th), Denmark (5th),
Netherlands (6th), the UK (7th), Austria (8th), France (9th) and Iceland (10th).
BRICS Countries in ETI: Brazil (38th), Russia (70th) and China (76th).
India related facts
According to report, India has taken bold measures to improve energy access, energy efficiency and to
improve deployment of renewable sources of energy. However, energy transition in India will require
large investments and enabling environment along with robust regulatory frameworks to support
transition.
India is at crossroads in its energy transition journey. Its energy needs are primarily met by fossil fuels
with implications for environmental sustainability and increasing energy import costs. Furthermore,
considerable share of India’s population still lacks access to electricity and clean cooking fuel.
In 2018 ETI, India ranks in third performance quartile and third readiness quartile, making it emerging
country that is approaching the leapfrog category. Interestingly, India has improved its performance
score by 5.6 percentage points between 2013 and 2018 period, mainly with improved energy access,
reduced subsidies and reduced import costs. India has largest government-mandated renewable energy
programme, with target of 175 GW renewable energy capacity by 2022, and it announced plans to shift
completely to electric vehicles by 2030.

US challenges India’s export subsidy programmes at WTO

Mar 15 2018
The US Trade Representative (USTR) has challenged Indian export subsidy schemes at World Trade
Organisation (WTO), saying these programmes harm its manufacturing sector and workers by creating
an uneven playing field.
Key Facts
According to USTR, at least half a dozen Indian programmes provide financial benefits to Indian
exporters, which allow them to sell their goods more cheaply to detriment of US workers and
manufacturers. These programs are Merchandise Exports from India Scheme (MEIS), Export Oriented
Units Scheme and sector specific schemes, including Electronics Hardware Technology Parks Scheme,
Special Economic Zones (SEZs), Export Promotion Capital Goods Scheme (EPCGS) and Duty Free Imports
for Exporters Programme.
It has alleged that through these programmes, India has given exemption from certain duties, taxes, and
fees which benefits numerous exporters, including producers of steel products, pharmaceuticals,
chemicals, information technology products, textiles, and apparel.
It also has alleged that earlier India was under limited exception rule under WTO specified for developing
countries. It allowed specified countries to continue to provide export subsidies temporarily until they
reach defined economic benchmark. But now it has surpassed benchmark in 2015. India’s exemption has
expired, but India has not withdrawn its export subsidies and in fact it has increased size and scope of
these programs.
Background

The US administration under President Donald Trump has taken various protectionist measures in an
attempt to bring down its trade deficit from around $800 billion annually. For this, it is holding its trading
partners accountable by vigorously enforcing US rights under various trade agreements and by
promoting fair and reciprocal trade through all available tools, including the WTO. Earlier in March 2018,
the Trump administration had announced tariffs of 25% and 10% on all steel and aluminum imports citing
national security issue.
IIP expands at 7.5% in January 2018
Mar 13 2018
According to data released by the Central Statistics Office (CSO), India’s factory output, measured by
Index of Industrial Production (IIP) recorded overall 7.5% growth in January 2018, indicating early signs of
industrial revival.
Factory output grew at 7.1% in December 2017, before hitting 25-month high of 8.4% in November 2017.
The cumulative IIP growth for period of April-January over corresponding period of previous year was
4.1%.
Key Facts
Manufacturing sector: It increased to 8.7% in January 2018 as compared to 8.5% in December 2017. It was
led by improved production of consumer durables and continued double-digit growth of consumer non-
durables as well as capital goods.
Mining output: It recorded growth of 0.1% in January 2018 compared to 1.2% in December 2017.
Electricity generation: It recorded 7.6% growth in January 2018, as compared 4.4% growth in December
2017.
Capital goods output: It is a barometer of investment and considered as proxy to measure private sector
investment activity. It was 14.6% in January 2018 compared to 16.4% in December 2017.
Consumer durables output: It was 8% in January 2018 as compared meagre 0.9% rise in December 2017.
Consumer non-durables production: It recorded 10.5% growth in January 2018 from 16.5% in December
2017.
structural changes in the economy and improves the quality and representativeness of the indices. The
revised IIP (2011-12) reflects the changes in the industrial sector and also aligns it with base year of other
macroeconomic indicators like the Wholesale Price Index (WPI) and Gross Domestic Product (GDP).
sectors are 77.63%, 14.37%, 7.9% respectively. The revised 8 core Industries have combined weightage of
40.27% in IIP.
Insolvency and Bankruptcy Board of India inks MoU with RBI
Mar 13 2018
The Insolvency and Bankruptcy Board of India (IBBI) signed Memorandum of Understanding (MoU) with
Reserve Bank of India (RBI) for increased cooperation in effective implementation of insolvency law. The
MoU was singed at time when authorities are working on ways to address huge amount of non-
performing assets (NPAs) in banking sector.
Key Facts
The MoU provides for sharing of information, subject to limitations imposed by applicable laws and
sharing of resources available with each other to extent feasible and legally permissible. It calls for
periodic meetings to discuss matters of mutual interest, including regulatory requirements that impact
IBBI and RBI’s responsibilities, enforcement cases, research and data analysis, information technology and
data sharing.

It also provides for cross-training of staff in order to enhance each party’s understanding of other’s
mission for effective utilisation of collective resources. It will help in capacity building of insolvency
professionals and financial creditors. It calls for joint efforts between IBBI and RBI for enhancing level of
awareness among financial creditors about importance and necessity of swift insolvency resolution
process of various types of borrowers in distress under provisions of Insolvency Code, etc.
Insolvency and Bankruptcy Code, 2016 (Code)
The Code provides for reorganisation and time -bound and market-determine insolvency resolution of
corporate persons, partnership firms and individuals for maximization of value of assets. The IBBI
exercises regulatory oversight over Insolvency Professionals, Insolvency Professional Agencies and
Information Utilities. It frames and enforces rules for processes such as corporate insolvency resolution,
individual insolvency resolution, corporate liquidation and individual bankruptcy under Code.
Background
Both RBI and IBBI are interested in effective implementation of Code and its allied rules and regulations,
through quick and efficient resolution process. Therefore, they agreed to sign MoU to assist and co-
operate with each other for effective implementation of Code.
India attracts $209 billion FDI in 2014-2017: Government
Mar 13 2018
India has attracted reaching US $208.99 billion foreign direct
ankit saini | mindhunter786@gmail.com | investment (FDI) during April 2014 to
December 2017 period. The main sectors that received maximum FDI include services, computer software
and hardware, telecommunications, construction, trading and automobile.
Key Facts
Foreign investments are considered crucial for India as it needs around 1 trillion dollars for overhauling its
infrastructure sector such as ports, airports and highways to boost growth. Strong inflow of foreign
investments mainly helps to improve the country’s balance of payments (BoP) situation and also
strengthen the rupee value against other global currencies, especially dominant US dollar. To attract
inflow of foreign investments, the central government has announced several measures including
liberalisation of FDI policy and improvement in business climate.
Indian, French companies ink pacts worth 13 billion euros
Mar 10 2018
Indian and French companies have exchanged 19 contracts and agreements worth over 13 billion euros in
sectors including new and renewable energy, smart grid, nuclear energy, aviation, cement, telecom among
others. The agreements were formalised at Indo-French Economic Partnership (IFEP) signing ceremony
held in New Delhi in the context of French President Emmanuel Macron’s official state visit to India.
Key Facts
Aviation Sector: The biggest deals signed in terms of value were from civil aviation sector. Low-cost
carrier SpiceJet signed $12.5-billion agreement with French aviation major Safran Group to supply 155
CFM LEAP-1B engines for airline’s Boeing 737 MAX aircraft, along with spare engines to support fleet.
Safran also announced its eighth facility in India at Hyderabad, Telangana with 250 employees, for
production of harnesses used in civil and military aerospace applications, for both local and foreign
programs.
Airports Authority of India (AAI) signed agreement with French engineering company Egis for conducting
study of three airports in the country — Lucknow, Pune and Trichy.
Electric Mobility Sector: Four French companies — EdF International Networks, Citelum, G2M and
Solstyce — signed an agreement to work together for developing charging infrastructure in India to
support electric mobility.
Renewable energy sector: Bharat Light & Power and EDF renewed their contract pertaining to data
acquisition to optimise wind and solar energy production. General collaboration agreement was also
signed between French Commission for Atomic and Alternative Energy (CEA) and Vikram Solar to
increase production capacity of high performance solar cells and modules.
Cement Sector: French cement maker Vicat announced investment of Rs 1,200 crore in Karnataka to

double its production capacity and investment of Rs. 510 crore in cement-grinding unit in Andhra
Pradesh.
India-China trade hits record $84.4 billion in 2017
Mar 8 2018
According to data of Chinese General Administration of Customs, India-China bilateral trade has reached
$84.44 billion last year, a historic high with 18.63% year-on-year growth rate.
This is regarded as historic landmark in bilateral relations of both countries, as volume of bilateral trade
for first time has touched $80 billion, well above the $71.18 billion registered in 2016.
Key Facts
India has emerged as the seventh largest export destination for Chinese products, and 24th largest
exporter to China.
India’s imports and exports: It has increased by 39.11% year-on-year to $16.34 billion in 2017. India’s
imports from China have increased by 14.59% to $68.10 billion.
Significantly, diamonds along with copper, iron ore, organic chemicals and cotton yarn contributed to
increase Indian exports to China. China’s exports on other hand were dominated by electrical machinery
and equipment,
India’s trade deficit: It continues to remain high at $51.75 billion, registering a growth of 8.55% year-on-
year in 2017. To arrest it, India is pressing China to open its IT and Pharmaceutical sectors for Indian
firms, fertilizers, organic chemicals and pharmaceutical antibiotics.
Comment
The bilateral trade has touched historic high despite bilateral tensions over number of bilateral issues
including China-Pakistan Economic Corridor (CPEC), China blocking India’s efforts to bring about UN ban
on Jaish-e-Mohammad leader Masood Azhar and blocking India’s entry into Nuclear Suppliers Group
(NSG) as well as military standoff at Doklam plateau near Sikkim and Bhutan, lasting 73 days.
For several years, bilateral trade between India and China had stagnated around $70 billion, despite they
had set target of $100 billion in 2015. Though it is still about $20 billion short, it is expect trade and
Chinese investments in India to pick up further as both governments are trying to scale down tensions
and step-up normalisation process.
US move to raise import duty on steel may hit India’s steel market: ISA
Mar 8 2018
According to Indian Steel Association (ISA), proposal by Trump administration to levy steep tariff on steel
imports may hit India’s domestic steel market. Recently, US had proposed to impose tariffs of 25% on steel
imports and 10% on imported aluminium to protect domestic steel industry from cheap imports. It had
clubbed India as steel non-mature country with other steel surplus nations.
Key Facts
The proposal, if implemented, will result in major shifts in existing global trade flows of steel and steel
products. It will encourage steel-surplus nations to divert their exports to vibrant consumption centres
(countries) like India and distort their domestic markets considerably. It will dent growth prospects of
developing nation like India, whose production and consumption of steel is inward looking.
Though India is third largest producer of steel and produces 12% of world’s non-Chinese production of
steel, it has only 2.7% share in US imports. There are total of 16 trade remedies in place in US against
Indian steel imports. This included 10 anti-dumping and 6 countervailing duties. All these had made it
nearly impossible to export Indian Steel to US.
Iraq overtakes Saudi Arabia as India’s biggest Oil Supplier
Mar 6 2018
Iraq has overtaken Saudi Arabia to become India’s top crude oil supplier by supplying 38.9 million tonnes
(MT) crude oil in the current financial year. It was fifth of the India’s oil needs.
India is 80% dependent on imports to meet its oil needs. India had imported 184.4 MT of crude oil during
April-January period of 2017-18 period as compared to 213.9 MT in the entire 2016-17 fiscal, and 202.8 MT
in 2015-16.

Key Facts
Saudi Arabia traditionally has been India’s top oil source but Iraq dethroned it. Saudi Arabia supplied 30.9
MT of crude oil in first 10 months of current fiscal. Iran continued to be third largest supplier, selling 18.4
MT during April-January. This is the second year in a row that Iran has occupied the third position.
Venezuela is India’s fourth largest supplier with 15.5 MT during April-January, followed by Nigeria with
14.9 MT.
Imports from West Asia
India’s dependence on West Asia for its crude oil needed has increased from 58% in 2014-15 to 63.7% in
April-January period of this fiscal. India had imported 109.9 MT out of 189.4 MT of total crude imports in
2014-15 from region. In the current fiscal so far, West Asia has accounted for 117.5 MT of crude oil supplies
to India.
Reasons for increase of imports from Iraq
Iraq was able dethrone Saudi Arabia as India’s largest crude oil supplier mainly by supplying heavily
discounted crude compared to crude oil sold by Saudi Arabia at Official Selling Price of OPEC. In given
time period, prices of crude oil had shot up following production cuts by OPEC members. However, Iraq
did not followed the aggressive pricing due to its heavy dependence on oil revenues to fund its economy.
Moreover, Indian refiners in recent years have invested heavily in modernising plants to more efficiently
process low grade crudes including Basra heavy crude from| Iraq, giving greater flexibility in the cost-
saving oil grades they can buy.

Government sets up Subhash Chandra Garg Committee to regulate fintech sector
Mar 6 2018
The Union Government has set up 8 member steering committee look into the development and
regulation of the financial technology (fintech) sector in India. It will be headed by Economic Affairs
Secretary Subhash Garg. The move follows an announcement by Finance Minister Arun Jaitley in the
Budget.
Members: Electronics and Information Technology Secretary, Financial Services Secretary, MSME
Secretary, Chairperson of Central Board of Excise and Customs, Deputy Governor of Reserve Bank of
India, Chief Executive Officer of Unique Identification Authority of India (UIDAI) and Joint Secretary
Department of Economic Affairs.
Terms of References
Committee’s objective is to consider various issues relating to development of fintech sector in India. It
will look into issues to make fintech-related regulations more flexible and generate enhanced
entrepreneurship in area where India has distinctive comparative strengths vis-à-vis other emerging
economies.
It will find ways of using fintech in critical sectors of economy, including financing of micro, small and
medium enterprises (MSMEs), delivery of e-services to vulnerable sections of society, management of land
records and other government services. It will also focus on how fintech can be leveraged to enhance
financial inclusion of Micro, Small and Medium Enterprises (MSMEs).
It will examine means of using data available with Goods and Services Tax Network (GSTN) and
information utilities such as credit information companies to make applications for financing of MSMEs.
It will also work with entities such as UIDAI to create and use unique enterprise identification number.
Services PMI contracts to 47.8 in February 2018
Mar 6 2018
The Nikkei India Services Business Activity Index contracted at 47.8 in February 2018 compared with 51.7
in January 2018. A reading above 50 implies an expansion while one below 50 denotes a contraction.
The contraction shows that activity and new work in services sector declined for the first time since
November 2017, with rates of contraction the fastest since August 2017.
Key Facts
The fall in the services index outweighed the upturn seen in manufacturing PMI in February 2018.
Business activity in services sector contracted in February 2018 due primarily to a decline in new orders.
Both activity and new work in the services sector has declined for the first time since November 2017,

with rates of contraction the strongest since August 2017.

PMI
PMI is an indicator of business activity-both in the manufacturing and services sectors. It is published by
Markit Limited. It is a survey-based measure that asks respondents about changes in their perception of
some key business variables from month before. It is calculated separately for manufacturing and services
sectors and then composite index is constructed. The index figure above 50 denotes expansion in business
activity and anything below 50 denotes contraction.
PSBs begin to rationalise 35 overseas operations
Mar 3 2018
The state-owned banks have started rationalising overseas operations by consolidating 35 operations and
closing down non-viable branches as part of the clean and responsible banking initiative. The
consolidation oncludes bank branches, remittance centres and representative offices.
It will be without affecting international presence of PSBs in these countries. Moreover, 69 operations also
have been identified for further examination. It is part of government’s commitment to ‘clean and
responsible banking and move towards cost efficiencies and synergies in overseas market.
Background
The rationalisation of overseas operations of banks comes at the time when jewellery designer Nirav Modi
had allegedly cheated Punjab National Bank ankit(PNB) of Rs.12,700
saini | mindhunter786@gmail.com | crore in connivance with PNB staff and
officials of overseas branches of other state-owned banks.
Presently, public sector banks have about 165 overseas branches, besides subsidiaries, joint ventures and
representative offices. State Bank of India (SBI) has largest number of overseas branches (52) followed by
Bank of Baroda (50) and Bank of India (29). The state-owned banks have largest number of branches in
United Kingdom (32) followed by Hong Kong and UAE (13 each) and Singapore (12). As per the banking
sector agenda approved at PSB Manthan in November 2017 public sector banks (PSBs) have to examine all
216 overseas operations.

Cabinet approves establishment of National Financial Reporting Authority

Mar 2 2018
The Union Cabinet approved establishment of National Financial Reporting Authority (NFRA) as an
independent regulator for the auditing profession. It aims to tighten regulatory oversight over auditors
and plug loopholes. It will be independent from those it regulates for enforcement of auditing standards
and ensuring quality of audits.
National Financial Reporting Authority (NFRA)
NFRA will independent regulator under Companies Act, 2013. Its mandate is for establishment and
enforcement of accounting and auditing standards and oversight of work of auditors. It will ensure quality
of audits to strengthen independence of audit firms and therefore, enhance investor and public confidence
in financial disclosures of companies.
Composition: NFRA will be 15 members body, consisting of Chairperson, three full-time Members and one
Secretary.
Functions: It will overarching watchdog for auditing profession. It can debar an erring auditor or auditing
firm for up to 10 years besides it can also slap heavy penalties. Even powers of Institute of Chartered
Accountants of India (ICAI) to act against erring chartered accountants will be vested with NFRA.
Jurisdiction: It extends investigation of Chartered Accountants and their firms to all listed companies as
well as large unlisted public companies. Government will prescribe thresholds in the rules. Government
can also refer other entities for investigation where public interest is involved. However, inherent
regulatory role of existing ICAI will continue in respect of its members and specifically to audits
pertaining to private limited companies and public unlisted companies below threshold limit notified in
rules. Further, ICAI will continue to play its advisory role with respect to accounting and auditing
standards and policies by making its recommendations to NFRA.
Impact: Establishment of NFRA will improve foreign/domestic investments, enhance of economic growth,
support globalisation of business by meeting international practices and assist in further development of
audit profession.
NFRA and Quality Review Board (QRB): QRB will continue its quality audit in respect of private limited
companies, public unlisted companies below prescribed threshold and also with respect to audit of
companies delegated by NFRA.
Background
The need for establishing NFRA was in wake of accounting scams and to establish independent regulator
independent from those it regulates for enforcement of auditing standards. Its establishment is in line
with key changes brought in by the Companies Act, 2013 which was on specific recommendations of
Standing Committee on Finance (in its 21st report).
CBDT achieves important milestone of signing 200 APAs
Mar 2 2018
The Central Board of Direct Taxes (CBDT) has crossed an important milestone of having signed 200
Advance Pricing Agreements (APAs). It was achieved after it entered into seven more APAs in February
2018.
All the seven were Unilateral APAs and pertain to pharmaceuticals, automobiles, financial and food &
beverages sectors of the economy. With this, CBDT till has entered into 203 APAS (185 Unilateral and 18
Bilateral APAs).
Key Facts
The APAs signed so far covers international transactions in manufacturing, provision of software
development services, provision of IT enabled Services (ITES), provision of contract R&D Services,
payment of royalty, Distribution, provision of marketing support services, AMP expenses, provision of
engineering design support services, provision of sourcing support services, payment of interest, etc.
Advance Pricing Agreement (APA) Scheme
The APA scheme endeavours to provide certainty to taxpayers in domain of transfer pricing by specifying
methods of pricing and setting prices of international transactions in advance. Its provision was
introduced in Income-tax Act, 1961 in 2012 and Rollback provisions were introduced in 2014.
The scheme aims to strengthen Government’s resolve of fostering non-adversarial tax regime. It has
significantly contributed towards improving ease of doing business in India and has been appreciated
nationally and internationally for being able to address complex transfer pricing issues in a fair and
transparent manner.
Union Cabinet approves Action Plan for Champion Sectors in Services
Mar 1 2018
Union Cabinet has approved the proposal of Ministry of Commerce and Industry to give focused attention
to 12 identified Champion Services Sectors (CSS) for promoting their development and realizing their
potential.
12 identified CSS are
Information Technology & Information Technology enabled Services (IT & ITeS), Medical Value Travel,
Transport and Logistics Services, Tourism and Hospitality Services, Accounting and Finance Services,
Audio Visual Services, Communication Services, Legal Services, Construction and Related Engineering
Services, Environmental Services, Financial Services and Education Services.
Key Facts
Cabinet also has directed Ministries/Departments concerned with these sectors to utilize available draft
sectoral plans to finalize and implement Action Plans for identified CSS. The respective
Ministries/Departments will finalize Action Plans and implementation timelines along with monitoring
mechanism to monitor implementation under overall guidance of Committee of Secretaries (CoS) under
Cabinet Secretary. Government will set up dedicated fund of Rs. 5000 crores to support initiatives for

sectoral Action Plans of the Champion Sectors. These Action Plans will develop vision for each of these
identified Champion Sectors by year 2022 and enumerate steps that need to be taken to achieve that
vision.
Significance
It will enhance competitiveness of country’s service sectors through implementation of focused and
monitored Action Plans. It will promote GDP growth, create more jobs and promote exports to global
markets. Competitive services sector will also add to competitiveness of manufacturing sector as well.
Background
The share of India’s services sector in global services exports was 3.3% in 2015 compared to 3.1% in 2014.
Based on this initiative, a goal of 4.2 % has been envisaged for 2022. Its share in Gross Value Added (GVA)
was about 53% in 2015-16 (61 % including construction services).
The Group of Secretaries in their recommendations to Prime Minister, had identified 10 Champion
Sectors, including three (3) services sectors related sectors and seven (7) manufacturing, for promoting
their development and achieving their potential. It was subsequently decided that Department of
Industrial Policy and Promotion (DIPP), the nodal department for ‘Make in India’ will spearhead initiative
for Champion Sectors in manufacturing and Department of Commerce (DoC) will coordinate proposed
initiative for Champion Sectors in Services.
Core sector grows at 6.7% in January 2018
Mar 1 2018
According to index of eight core industries released by Ministry of Commerce and Industry, Core sector
growth has grown at faster pace of 6.7% in January 2018 against 3.4% in January 2017. The eight core
sectors had grown by 4.2% in December 2017 and 7.4% in November 2017.
Key Facts
Cumulatively, the growth in eight core sectors during April-January this fiscal slowed to 4.3% as against
5.1% in the same period last fiscal. The growth in key sectors will have implications for Index of Industrial
Production (IIP) as these eight segments account for about 41% of the total factory output.
Breakup of January performance:
Petroleum refinery production: It jumped up by 11%.
Cement output: It jumped up by 20.7%.
Electricity generation: Its growth rose to 8.2%.
Coal sector output: It improved by 3%.
Steel production: It grew by 3.7%.
Crude oil production: It dropped by 3.2%.
Fertiliser output: It dropped by 1.6%.
Natural gas: Its output fell by 1%.
Core Industry sector
Core industry can be defined as main industry of the economy. In most countries, there is particular
industry that seems to be backbone of all other industries and it qualifies to be the core industry. In India,
there are eight core sectors comprising of coal, crude oil, natural gas, petroleum refinery products, fertilisers,
steel, cement and electricity.
Latest weightage in core sectors: Petroleum Refinery production (weight: 28.04%), Electricity generation
(19.85%), Steel production (17.92%), Coal production (10.33%), Crude Oil production (8.98%), Natural Gas
production (6.88%), Cement production (5.37%), Fertilizers production (2.63%)
Manufacturing growth falls to four-month low in February 2018: PMI
Mar 1 2018
According to Nikkei India Manufacturing Purchasing Managers Index (PMI), India’s manufacturing sector
activity fell to four-month low in February 2018 as factory output and new business orders rose at slower
pace. The monthly PMI fell to 52.1 in February 2018 from 52.4 in January 2018, indicating modest
improvement in operating conditions. A reading above 50 on index denotes expansion and less than that
indicates contraction in activities

Key Facts
This is for seventh consecutive month that PMI remained above 50-point-mark that separates expansion
from contraction. The expansion was primarily driven by significant rise in manufacturing production,
while there were reports of improved underlying demand, with domestic and external sources driving
new business gains.
In December 2017, PMI had touched a 60-month high of 54.7. In response to greater production
requirements, firms raised their staffing levels during February 2018. Although modest, the pace of job
creation was slightly faster than January.
PMI Survey on prices front found that cost inflation has accelerated to sharpest since February 2017,
adding to expectations that inflationary risks will continue over coming months. It also noted that Indian
manufacturers remained optimistic towards 12-month outlook for output during February 2018.
PMI is usually released at start of month, ankitmuch before most
saini | mindhunter786@gmail.com | of official data on industrial output,
manufacturing and GDP growth is made available. It is, therefore, considered a good leading indicator of
output.
RBI raises ETCD trading limit to $100 million
Feb 27 2018
Reserve Bank of India (RBI) has raised exposure limit under exchange traded currency derivatives (ETCD)
trading for residents and foreign portfolio investors (FPIs) to $100 million across all currency pairs
involving Indian rupee. This decision aims to help entities engaged in forex transactions to maintain their
currency risks in better manner. Earlier, the limit was of $15 million for US Dollar-Rupee and $5 million for
other currency pairs of Indian rupee with Japanese Yen, Euro and British Pound.
Exchange Traded Currency Derivatives (ETCD)
ETCD is financial instrument that trades on regulated exchange, and whose value is based on value of another asset.
These derivatives are traded in a regulated fashion. They can be used to hedge exposure or speculate on wide range
of financial assets like commodities, currencies, equities and even interest rates.
What are new norms?

The raised exposure limit permits persons resident in India and FPIs to take positions (long or short),
without having to establish existence of underlying exposure, up to single limit of $100 million equivalent
across all currency pairs involving Indian rupees, put together, and combined across all exchanges.
The onus of complying with provisions of this decision rests with participant in ETCD market. In the case
of any contravention participant will be liable to any action that may be warranted as per provisions of
Foreign Exchange Management Act (FEMA), 1999 and regulations, directions, etc. issued there under.
These limits shall also be monitored by exchanges, and breaches, if any, may be reported to RBI.
Background
RBI has taken series of liberalisation measure in the ETCD market. Earlier it had relaxed documentation
requirement for such trades i.e. allowed signed undertaking instead of the statutory auditor’s certificate.
It also had allowed importers to take appropriate hedging positions up to 100% of eligible limit to bring at
par both exporters and importers the RBI. Prior to it, importers were permitted to hedge their contracted
exposures in ETCD market only up to 50% of their eligible limit.
FIU categorises 9,491 NBFCs as high risk for PMLA non-compliance
Feb 27 2018
The Financial Intelligence Unit (FIU) under Finance Ministry has categorised around 9,491 non-banking
financial companies (NBFC) as high risk prone financial institutions as they have not complied with

stipulated provision of Prevention of Money Laundering Act (PMLA). There are about 12,000 NBFCs in
country at present and high risk financial NBFCs account for about 80% of total NBFCs in the country. This
list containing names of NBFCs has been updated till January 2018.
What does it means?
The publication of names of NBFCs in list is primarily to make aware public that they are not law
compliant and that they should refrain from indulging into transactions with them. These NBFCs have
been urged to comply with this “basic obligation” under PMLA and its rules for the past one and a half
years, but to no avail. Once these NBFCs comply with the rules, their names will be taken off the list.
Background
Under PMLA, the NBFCs, which include cooperative banks, are required to furnish details about their
financial operations and transactions to the FIU in a prescribed format. The FIU had observed activities of
these institutions and processed the data of these companies after demonetisation of high value currency
notes of Rs 1,000 and Rs 500 in November 2016. It also had found that these NBFCs also did not comply
with stipulated condition of appointing principal officer and designated director who are responsible for
checking and reporting suspicious transactions and cash transactions of Rs 10 lakh and above. FIU is
mandated to check crimes in Indian economy and alert enforcement agencies against such.
Non-banking financial companies (NBFCs)
NBFC is company registered under Companies Act. It is engaged
ankit saini | mindhunter786@gmail.com | in business of loans and advances,
acquisition of shares, bonds, stocks, debentures and securities issued by government or local authority or
other marketable securities. NBFCs can make investments and lend and hence, their activities are akin to that
of banks. However, they cannot accept demand deposits and do not form part of payment and settlement
system i.e. they cannot issue cheques drawn on itself.
Inclusive Internet Index 2018: India ranks 47th
Feb 27 2018
India was ranked 47th out of 86 countries in Inclusive Internet Index (III) 2018 report. India has slipped by
11 positions compared to 36th rank in 2017 III report due to low internet usage and poor quality.
The report was commissioned by Facebook in 2017 and is conducted by The Economist Intelligence Unit
(EIU). It provides rigorous benchmark of national-level Internet inclusion across four categories:
Availability, Affordability, Relevance and Readiness. 2018 edition of report has covered 91% of the world’s
population and expanded data set of 86 countries, up from 75 countries in 2017.
Key Highlights of 2018 III report
India was ranked 62nd in Availability, 39th in Affordability, 37th in Relevance and 23rd in Readiness
categories. Singapore, Canada, Poland and Malaysia have topped in respective categories.
Internet connectivity: It has grown by 8.3% over past year and has shown 65.1% increase in low-income
countries with largest year-on-year increases in Rwanda (490.8%), Nepal (138.1%) and Tanzania (87.8%).
Mobile Internet gap: It is shrinking between rich and poor. In low-income countries, average cost of 500
MB mobile broadband connection fell from 12.1% of monthly income in 2017 to 10.0% in 2018, a 17.3% cost
reduction.
Gender gap in Internet inclusion: It is still far too pervasive. In 69 out of 86 countries, more men have
access to internet than women. On average across indexed countries, men are 33.5% more likely to have
Internet access than women. This gap is substantially more pronounced in lower-income countries.
Empowerment: Use of internet is empowering, especially to citizens in Asia, Middle East and Africa.
Privacy and security concerns have limited the use of the Internet especially in Europe.
RBI launches Ombudsman scheme for NBFCs
Feb 24 2018
The Reserve Bank of India (RBI) has launched Ombudsman Scheme for non-banking financial companies
(NBFCs) for redressal of complaints against NBFCs registered with RBI under section 45-IA of the RBI Act,
1934. The scheme will provide cost-free and expeditious complaint redressal mechanism relating to
deficiency in services by non-banking financial companies covered under the scheme.
Ombudsman Scheme for NBFCs
The offices of NBFC Ombudsmen will function at four metro centres —Mumbai, Chennai, Kolkata and

New Delhi. They will handle complaints of customers in respective zones. To begin with, the scheme will
cover all deposit-taking NBFCs.
Under this scheme, any customer or person can file compliant with ombudsman on various grounds. Only
written complaints or those in electronic format will be accepted. The complaint may be wrt non-
payment or inordinate delay in payment of interest, non-repayment of deposits, lack of transparency in
loan agreement, non-compliance with RBI directives on fair practices code for NBFCs, levying of charges
without sufficient notice tocustomers and failure or delay in returning securities documents despite
repayment of dues among others.
RBI will appoint one or more of its officers in rank of not less than General Manager (GM) to be known as
Ombudsman to carry out functions. The appointment will for period not exceeding three years at time.
The schemes provide for Appellate mechanism under which complainant/NBFC will have option to appeal
against decision of Ombudsman before Appellate Authority.
It will obligation of NBFC concerned to implement settlement arrived with complainant or Award passed
by Ombudsman when it becomes final and send report in this regard to RBI within 15 days of award
becoming final. In case of non-implementation of settlement or Award, the complainant may represent to
RBI and RBI may initiate such action under provisions of RBI Act, 1934 as it deems fit.
RBI directs banks to link SWIFT to core banking solutions by April 2018
Feb 24 2018
The Reserve Bank of India (RBI) has directed banks to link SWIFT (Society for World Interbank Financial
Telecommunication System platform) with their core banking solutions (CBS) by April 30, 2018. This
decision is part of RBI’s efforts to tighten internal controls in banks following Rs 11,400 crore fraud that
was unearthed at Punjab National Bank (PNB). CBS is centralised software used to support bank’s most
common transactions.
Background
The mega PNB fraud surrounds around SWIFT technology which was misused by its branch officials to
fraudulently issue LoUs (letters of undertaking), kind of Bank guarantees to diamond and jewellery
importer Nirav Modi-linked companies without getting proper approvals and without making entries in
CBS. The failure of SWIFT-CBS link led to Rs 11,400 crore fraud at PNB and enabled these transactions to
go undetected for over seven years. Many banks are yet to establish the linkage. So there is urgent need
for banks to revisit their surveillance system and plug the loopholes.
SWIFT (Society for World Interbank Financial Telecommunication System) platform
used to transmit messages relating to cross border financial transactions.
It was founded in 1973 and is headquartered in La Hulpe, Belgium. It is a cooperative society under Belgian
law owned by its member financial institutions with offices around the world. Globally over 11,000
financial institutions in more than 200 countries use services of SWIFT.
SWIFT does not facilitate funds transfer, rather, it sends payment orders, that must be settled by
correspondent accounts that institutions have with each other. On receiving this message through
SWIFT, banks abroad, mostly branches of domestic banks abroad provide funds to the company.
RBI constitutes YH Malegam committee to monitor bad loans, rising cases of frauds, audits
Feb 21 2018
Reserve Bank of India (RBI) has constituted an expert committee to look into the entire gamut of issues
relating to classification of bad loans, effectiveness of audits and rising incidents of frauds. The committee
will be headed by Y H Malegam, a former member of Central Board of Directors of RBI.
Terms of References
The committ will look into reasons for high divergence observed in asset classification and provisioning
by banks vis-à-vis RBI’s supervisory assessment. It will suggest steps needed to prevent it, factors leading
to increasing incidence of frauds in banks and measures (including IT interventions) needed to curb and
prevent it. It will also look into role and effectiveness of various types of audits conducted in banks in

mitigating the incidence of such divergence and frauds.

Background
The committee was set up in wake up of Rs 11,400 crore SWIFT (Society for Worldwide Interbank
Financial Telecommunication)-related fraud in Punjab National Bank (PNB) and RBI’s drive of
strengthening supervisory framework in the country to avoid frauds. Government also had asked RBI
whether it has at any stage detected fraud, involving letter of undertaking (LoUs) issued to foreign
branches of Indian banks on behalf of companies promoted by Nirav Modi and Mehul Choksi.
PM Narendra Modi inaugurates World Information Technology Congress 2018
Feb 19 2018
Prime Minister Narendra Modi inaugurated World Information Technology Congress (WITC) 2018 in
Hyderabad, Telangana via video conference. The theme of this edition of conference was ‘Future
Enterprises.’
It was hosted by Telangana Government, in association with country’s top IT body, National Association of
Software and Services Companies (NASSCOM) and global IT organization World Information Technology
and Services Alliance (WITSA).
Key Facts
This is for first time India is hosting WITC. It will second time that the event will be taking place in Asia
after it was hosted in Kualalumpur, Malaysia in| mindhunter786@gmail.com
ankit saini 2008. Around | 2500 delegates and top IT honchos from
across the world participated in the maga IT event. Representatives from IT industries from around 80
countries took part in the conference. Moreover, at least 20 CEOs from Fortune 500 companies and 100
other top executives attended the conference.
World Information Technology Congress (WITC)
WITC is a biennial event and considered as the biggest event of its kind. It aims provide single platform to
IT experts, policy and decision makers and Government officials from all over the world together to
discuss various challenges and possible solutions to them. It is unique in its global perspective on ICT
issues and its ability to draw users, providers, media and academia from around the world. It was first held
in 1978 since then held after every two years. The 2014 WITC was held in Mexico and had focused on the
theme of ‘Digital World’ and 2016 edition was held in Brasilia, Brazil.
NPCI allows Whatsapp to beta test its payments service with limited users
Feb 18 2018
The National Payments Corporation of India (NPCI) has allowed Facebook-owned WhatsApp to beta test
its BHIM UPI beta payments service with limited user base of 1 million and low transaction limit. Four
banks will join social messaging app’s BHIM UPI model in phases and full feature product will be released
after beta test is successful.
Key Facts
The multi-bank model will offer advantages such as transaction load distribution between banks and helps
to integrate popular apps easily with BHIM UPI. The inter-operability will allow to send and receive
money through any BHIM UPI ID, intent and collect call and read and generate BHIM/Bharat QR code that
are required in final BHIM UPI app.
Companies Act, 2013. It has successfully played pioneering role in development of a domestic card
payment network called RuPay, reducing the dependency on international card schemes.
Yes Bank lists $600 million MTN bond on India INX
Feb 15 2018
India’s fifth largest private sector lender Yes Bank has listed $600 million bond issued under its maiden $1
billion MTN programme on Global Securities Market (GSM) of India INX. The bank will use proceeds from
this bond to fund the bank’s IFSC Banking Unit (IBU) in Gift City and expand IBU’s rapidly growing
business opportunities.
Key Facts

Yes Bank’s MTN (medium term note) bonds issuance has received overwhelming response from
international investors. It has been already listed on London Stock Exchange International Securities
Market (LSE ISM) and Singapore Exchange Securities Trading Limited (SGX).
India International Exchange (India INX)
Indai-INX is India’s first international exchange at IFSC Gujarat International Financial Tech (GIFT) City,
Gandhinagar (Gujarat). It is wholly-owned subsidiary of Bombay Stock Exchange (BSE), through its global
bourse. It is one of world’s most advanced and fastest trading technology platforms with turn-around
time of 4 micro seconds. It operates for 22 hours a day allowing international investors and NRIs to trade
from anywhere across globe. It trades in equity derivatives, currency derivatives, commodity derivatives
including Index and Stocks. It also offers depository receipts and bonds.
Mumbai 12th richest city globally: Report
Feb 12 2018
India’s financial capital Mumbai, with a total wealth of US $950 billion was ranked 12th richest city
globally in the report published by New World Wealth.
In the report, total wealth, refers to private wealth held by all individuals living in each city. It includes all
their assets (cash, equities, property, business interests etc.) less any liabilities. Government funds are
excluded from it.
Key Facts ankit saini | mindhunter786@gmail.com |
The list of 15 wealthiest cities was topped by New York with total wealth of US $3 trillion. New York is
home the two largest stock exchanges in the world. London was ranked second ($2.7 trillion) followed by
Tokyo (3rd, $2.5 trillion), San Francisco Bay area (4th, $2.3 trillion), Beijing (5th, $2.2 trillion), Shanghai (6th,
$2 trillion), Los Angeles (7th, $1.4 trillion), Hong Kong (8th, $1.3 trillion), Sydney (9th, $1 trillion), Singapore
(10th, $1 trillion) and Chicago (11th, $988 billion), Toronto (13th, $944 billion), Frankfurt (14th, $912 billion)
and Paris (15th, $860 billion). Among the 15 richest cities listed, San Francisco, Beijing, Shanghai, Mumbai
and Sydney are fastest growing in terms of wealth growth over the past 10 years,
According to report, Mumbai is economic hub of India. It is home to Bombay Stock Exchange (BSE), the
12th largest stock exchange in the world. It houses major industries which include financial services, real
estate and media. It is expected to be the fastest growing city (in terms of wealth growth over the next 10
years). Mumbai also features among top 10 cities in terms of billionaire population. The city is home to 28
billionaires, individuals with US $1 billion or more in net assets.
ONGC acquires 10 per cent stake in UAE’s Zakum oilfield
Feb 12 2018
Oil and Natural Gas Corporation (ONGC)-led consortium of Indian state oil firms have acquired 10% stake
in Abu Dhabi’s offshore Lower Zakum Concession for $600 million.
The acquisition is part of deal inked between company executives and UAE officials in presence of visiting
Prime Minister Narendra Modi and Abu Dhabi crown prince Sheikh Mohammed bin Zayed Al Nahyan in
Abu Dhabi.
Key Facts
The Lower Zakum Oil Field is located 84 km north-west of Abu Dhabi Islands. It was discovered in 1963
and is owned and developed by Abu Dhabi National Oil Company. The total proven reserves of it are
around 17.2 billion barrels and production is centred on 425,000 barrels per day (67,600 m3/d).
With this deal, Indian oil and gas companies for first time have acquired stake in development of Abu
Dhabi’s hydrocarbon resources. The deal gives consortium of Indian oil companies comprising of Indian
Oil Corp. Ltd and Bharat Petroleum Corp. Ltd’s overseas arm Bharat PetroResources Ltd, access to about 2
million tonnes of annual share from field. The deal has term of 40 years. It will help India to meet its
growing demand for future energy and refined products.

Background
Due to lower and fall in global oil prices, oil-rich nations had resorted to ways of reducing risk and
balancing their budget deficits by selling their prime oil and gas assets and diversifying into non-oil
sectors of economy. Indian energy companies backed by diplomatic efforts have been aggressively
pursuing to acquire share in these most prolific oil and gas fields sold by oil-rich nations. In 2016, Indian
oil companies had bought stakes in two oil and gas field assets in Siberia owned by Russia’s state-backed
Rosneft Oil Co. for $3.3 billion.
Independent debt management office must be set up: NITI Aayog
Feb 12 2018
NITI Aayog has made strong case for setting up independent Debt Management Office for better servicing
of loans that will lead to substantial reduction in India’s interest payment.
At present, government debt, including market borrowing, is managed by Reserve Bank of India (RBI).
Setting up independent Debt Management Office will help to resolve issues relating to conflict of interest
as RBI decides on key interest rates as well as undertakes buying and selling of government bonds.
Significance
The setting up of Debt Management Office has been one of the top priority of government for bringing
reforms in financial sector. It will divest RBI of its dual and often conflicting roles as banker and manager
of Central Government’s borrowing.
It will also facilitate in better planning and management of domestic and foreign market borrowings of
Central Government. It will also help in strengthen bond market and help to promote investment. It will
be in pursuance global practice of shifting public debt management from central bank to a debt
management office.
Background
According to the Budget document, India’s total debt is estimated at Rs 66.68 lakh crore at end of March
2018. It is likely to go up to Rs 72.51 lakh crore by March 2019. The interest payment on public debt is
estimated to rise from Rs 5.3 lakh crore in 2017-18 to Rs 5.75 lakh in 2018-19. In his February 2015 Budget
speech, Finance Minister Arun Jaitley had proposed to set up independent Public Debt Management

Agency (PDMA) within the Finance Ministry.

India ranks 44 in US Chamber’s Intellectual Property Index
Feb 9 2018
India was ranked 44th out of 50 countries in the Intellectual Property (IP) Index released by US Chamber
of Commerce. Last year, India was ranked 43rd out of 45 countries in index, with an overall score if 8.4
points.
The index was released as part of annual report prepared by the Global Innovation Policy Center (GIPC) of
the US Chambers of Commerce. The report analyses IP climate in 50 world economies based on 40 unique
indicators that benchmark activity critical to innovation development surrounding patent, copyright,
trademark and trade secrets protection.
The US topped this edition of list with total 37.98 points, followed by United Kingdom (37.97) and Sweden
(37.03). India has increased substantially its score this year. Its overall score has increased substantially
from 25% (8.75 out of 35) in previous year to 30% (12.03 out of 40) in latest edition.
Despite improvement in score, India continues to remain towards bottom of ladder. India has
demonstrated long-standing and clear commitment to increasing awareness of importance of IP rights
and respect for creators and innovators. However, India has long way to go.
India’s ranking reflects relatively strong performance in new indicators as well as positive reform efforts
on patentability of computer-implemented inventions (CIIs) and registration procedures for well-known
marks. ‘Guidelines on the Examination of Computer-Related Inventions’ issued by India in July 2017 has
significantly improved patentability environment for technological innovations.
India’s score continues to suggest that additional, meaningful reforms are needed to complement the
policy. Among key areas of weaknesses are limited framework for protection of life sciences IP, lengthy
pre-grant opposition proceedings, patentability requirements outside international standards, previously
used compulsory licensing for commercial and nonemergency situations, limited participation in
international IP treaties and no participation in international PPH (Patent Prosecution Highway) tracks.
Cabinet approves Amendment to MSME Act to change classification criteria
Feb 8 2018
The Union Cabinet has approved amendment to Micro, Small and Medium Enterprises Development
(MSMED) Act, 2006 for classifying MSMEs from current investment in plant and machinery criteria to
annual turnover criteria.
The purpose of amendment to Section 7 of MSMED Act, 2006 is to encourage ease of doing business, make
MSME classification norms growth oriented and align them to new indirect tax regime revolving around
Goods & Services Tax (GST). This will define units producing goods and rendering services in terms of
annual turnover. It will pave the way for increased direct and indirect employment in the MSME sector of
the country.
Background
MSME is second largest employment generating sector after agriculture sector. It provides 80% of jobs in
industry with just 20% of investment. It contributes around 31% to nation’s GDP and 45% and 34% share of
the overall exports and manufacturing output (2017 report).
At present Section 7 of MSMED Act classifies MSMEs on the basis of investment in plant and machinery
for manufacturing units and investment in equipment for service enterprises. The criterion of investment
in plant and machinery stipulates self-declaration which in turn entails verification and leads to
transaction costs.
New Classification Criteria (based on turnover)
Micro enterprise: It will be unit with annual turnover does not exceed Rs. 5 crore.
Small enterprise: It will be unit with annual turnover is more than Rs. 5 crore but does not exceed
Rs. 75 crore.
Medium enterprise: It will be unit with annual turnover is more than Rs. 75 crore but does not
exceed Rs. 250 crore.

The amendment empowers Central Government to vary turnover limits, provided not exceeding
thrice the limits specified in Section 7 of MSMED Act by issuing notification.
Significance of New Classification Criteria
The turnover criteria can be pegged with reliable available figures e.g. in GST Network (GSTN) and other
methods of ascertaining. This will help in having non-discretionary, transparent and objective criteria. It
will eliminate need for inspections and make classification system progressive and evolutionary.
It will also help in overcoming uncertainties associated with classification based on investment in plant &
machinery and equipment and employment. It will also improve ease of doing business. It will provide
flexibility to Government to fine-tune classification of MSMEs in response to changing economic scenario
without resorting to amendment of MSMED Act.
CriSidEx: CRISIL, SIDBI launches India’s first MSE Sentiment Index
Feb 3 2018
The SIDBI (Small Industries Development Bank of India) and ratings agency Crisil have launched CriSidEx,
India’s first MSE Sentiment Index for micro, small and medium enterprises (MSMEs). The index will help
to indicate the current state and expected outlook on the MSME sector every quarter.
CriSidEx
CRISIL-SIDBI MSE Sentiment Index (or CriSidEx) has been developed jointly by CRISIL and SIDBI. It is a
composite index based on diffusion index of ankit
8 parameters. It measures
saini | mindhunter786@gmail.com | MSE business sentiment on a scale
of 0 (extremely negative) to 200 (extremely positive).
The parametric feedback for the index will be captured through a survey of 1100 MSEs. CriSidEx will have
2 indices, one for ‘survey quarter’ and another for ‘next quarter’. Once trend emerges after few rounds of
survey, it will provide independent time series data.
Significance of index
Provide crucial insights into employment, business environment and foreign trade in MSME sector.
Allow policy makers to take timely proactive steps, including those based on early warnings thrown
up by survey of index.
Provide intelligence and insights for regulators, trade bodies, lenders as well as economic and
financial analysts.
Help in forecasting business environment by capturing sentiment on various business parameters
such as business situation, capacity utilisation, order book and margins.
Flag potential headwinds and changes in production cycles in MSME sector and thus help in
improving market efficiencies.
India 6th wealthiest country: New World Wealth Report
Jan 31 2018
According to New World Wealth Report, India was ranked sixth in list of wealthiest countries with total
wealth of US $8,230 billion in 2017.
The total wealth, refers to private wealth held by all individuals living in each country/city. It includes all
their assets (property, cash, equities, business interests) less any liabilities. However it excludes
government funds.
Key Facts
Top 10 Wealthiest Countries are United States (1st, total wealth held US $ 64,584 billion), China (2nd,
$24,803 billion), Japan (3rd, $19,522 billion), United Kingdom (4th, $9,919 billion), Germany (5th, $9,660
billion), France (7th, $6,649 billion), Canada (8th, $6,393 billion), Australia (9th, $6,142 billion) and Italy
(10th, $4,276 billion).
Meanwhile, during period under consideration global wealth rose by 12% (from US $192 trillion at the end
of 2016 to US %215 trillion at the end of 2017) and China’s wealth saw an increase of 22% .
India was best performing wealth market globally in 2017 as its total wealth swelled from US $6,584 billion
in 2016 to US $8,230 billion in 2017, registering a 25% growth. Over the past decade (2007-2017) India’s
total wealth increased from US $3,165 billion in 2007 to US $8,230 billion in 2017, a jump of 160%.
India is home to 3,30,400 HNWIs (individuals with US $1 million or more in net assets). Globally, India was
ranked 9th in this aspect while US topped the list with 50,47,400 HNWIs (high-net-worth individuals).
India is also home to 20,730 multi-millionaires, 7th largest in world and in terms of resident billionaires
(individuals with US $1 billion or more in net assets), India with 119 such individuals was named among the
top three countries globally, after US and China.
India becomes third largest producer of crude steel
Jan 30 2018
According to recent report published by World Steel Association (WSA), India has overtaken US to become
the world’s third largest steel producer in 2017. India’s crude steel production has grown by 6.2% to 101.4
million tonnes (MT) in 2017 compared to 95.5 MT in the previous year.
Key Facts
China has remained world leader by producing 831.7 MT in 2017, up 5.7% from 786.9 MT in the year-ago
period. Japan is second largest global steel producer and had witnessed negative growth in steel output
declined by 0.1% to 104.7 MT in 2017 from 104.8 MT in 2016.
The Global steel production had reached 1,691.2 MT in 2017, up by 5.3% compared to 2016 when output was
1,606.3 MT. Crude steel production increased in all regions in 2017 except in CIS (Commonwealth of
Independent States), which has remained stable.
World Steel Association (WSA)
WSA is a non-profit organisation and is one of the largest industry associations in world. Its members
represent approximately 85% of the world’s steel
ankit saini | production.
mindhunter786@gmail.comIt
| includes over 160 steel producers with 9 of
the 10 largest steel companies, national and regional steel industry associations, and steel research
institutes. It was founded in July 1967 and is headquartered in Brussels, Belgium.
India’s richest 1% corner 73% of wealth generation: Oxfam Survey
Jan 23 2018
According to latest survey released by the international rights group Oxfam, richest 1% in India cornered
73% of the wealth generated in country in 2017. The survey shows worrying picture of rising income
inequality.
It was released as part of report titled ‘Reward Work, Not Wealth’, revealing how global economy enables
wealthy elite to accumulate vast wealth even as hundreds of millions of people struggle to survive on
poverty pay.
Highlights of Report
Globally 82% of wealth generated in 2017 worldwide went to 1%, while 3.7 billion people that account for
poorest half of population saw no increase in their wealth. Year 2017 saw unprecedented increase in
number of billionaires, at rate of one every two days.
Billionaire wealth has risen by average of 13% year since 2010. It was six times faster than the wages of
ordinary workers, which have risen by a yearly average of just 2%. Women workers often find themselves
at bottom of the heap and nine out of 10 billionaires are men.
In India, 67 crore population comprising the population’s poorest half saw their wealth rise by just 1%.
Wealth of India’s richest 1% increased by over Rs 20.9 lakh crore, an amount equivalent to total budget of
central government in 2017-18.
India’s top 10% of population holds 73% of the wealth and 37% of India’s billionaires have inherited family
wealth. They control 51% of the total wealth of billionaires in the country. There are only four women
billionaires in India and three of them inherited family wealth.
It will take 941 years for minimum wage worker in rural India to earn what top paid executive at a leading
Indian garment firm earns in year.
The report has urged Indian government to ensure that country’s economy works for everyone and not
just the fortunate few. It asked government to promote inclusive growth by encouraging labour-intensive
sectors that will create more jobs; effectively implementing the social protection schemes and investing in
agriculture.
Indian economy to grow at 7.4% in 2018: IMF
Jan 23 2018
In its latest World Economic Outlook (January 2018 update) released by International Monetary Fund

(IMF), India is projected to grow at 7.4% of its gross domestic product (GDP) in 2018 as against China’s
6.8%.
The projection makes India fastest growing major economy following slowdown in 2017 due to
demonetisation and implementation of goods and services tax (GST).
Key Facts
IMF has projected that global economy is expected to grow 3.9% this year, faster than 3.7% forecast earlier
in October 2017. Some 120 economies, accounting for three quarters of world GDP, have seen pickup in
growth in year-on-year terms in 2017. It is the broadest synchronised global growth upsurge since 2010.
IMF projected India’s GDP growth rate at 7.4% in 2018 and 7.8% in 2019. China, during the same period, is
expected to grow at 6.8% and 6.4% respectively. The aggregate growth forecast for emerging markets and
developing economies for 2018 and 2019 remain unchanged, with marked differences in outlook across
regions.
Emerging and developing Asia will grow at around 6.5% over 2018-19, broadly the same pace as in 2017.
The US will grow 2.7% and 2.5% in 2018 and 2019, respectively, higher by 0.4 and 0.6% point than earlier
estimate.
The report contains analysis and projections of integral elements of IMF’s surveillance of economic
developments and policies in its member countries and of developments
ankit saini | mindhunter786@gmail.com | in global financial markets and
economic system. It is usually prepared twice a year and is used in meetings of the International Monetary
and Financial Committee.
India ranked 81st on Global Index of Talent Competitiveness
Jan 23 2018
India was ranked 81st among 118 countries in 2017 Global index of talent competitiveness (GTI) list. India
has improved its position from 92nd last year. The index measures ability of countries to compete for
talent i.e. how countries grow, attract and retain talent. It is produced by global business school INSEAD
in partnership with Adecco Group and Tata Communications.
Key Facts
Top Countries: Switzerland is followed by Singapore and US. European countries dominate top ranks,
with 15 out of the top 25 places. Developed, high-income countries are still the global talent champions
while Zurich, Stockholm and Oslo take the top spots in the GTI cities’ ranking.
BRICS countries: India’s ranking was last among the five BRICS countries in 2017. China has moved up to
43rd now, Russia to 53rd, South Africa to 63rd and Brazil to 73rd position.
India faces serious risk of worsening brain drain. In terms of formal Education, India ranks 67th and in
Lifelong Learning it ranks 37th. In terms of pool of Global Knowledge Skills (63rd) is solid compared with
other emerging markets. India also has plenty of room for improvement is in minimising brain drain while
achieving brain gain by luring back some of its talented diaspora members as iit ranks 98th in the Attract
pillar and in retaining its own talent it ranks 99th.
India ranked 62nd on WEF’s Inclusive Development Index 2018
Jan 23 2018
India was ranked at 62nd place among emerging economies on Inclusive Development Index (IDI-2018)
released by World Economic Forum (WEF).
Norway again remained world’s most inclusive advanced economy, while Lithuania again topped list of
emerging economies. India’s position is much below China (26th) and Pakistan (47th).
Inclusive Development Index (IDI)
Inclusive Development Index (IDI) measures progress of 103 economies on three individual pillars –
growth and development; inclusion; and inter-generational equity. It has been divided into two parts. The
first part covers 29 advanced economies and second 74 emerging economies. The index takes into account
the living standards, environmental sustainability and protection of future generations from further
indebtedness. The index also has classified countries into five sub-categories in terms of five-year trend of
their overall Inclusive Development Growth score — receding, slowly receding, stable, slowly advancing
and advancing.
Highlights of IDI-2018
Top 5 advanced economies: Norway followed by Ireland, Luxembourg, Switzerland and Denmark. Only
two advanced economies have shown ‘advancing’ trend. Small European economies dominate top of index,
with Australia (9) the only non-European economy in the top 10. Of the G7 economies, Germany (12) ranks
highest followed by Canada (17), France (18), UK (21), US (23), Japan (24) and Italy (27).
Top-five most inclusive emerging economies: Lithuania, Hungary, Azerbaijan, Latvia and Poland.
BRICS economies: Russia was ranked at 19th, followed by China (26), Brazil (37), India (62) and South Africa
(69).
Rich and poor countries alike are struggling to protect future generations, as it cautioned political and
business leaders against expecting higher growth to be panacea for social frustrations, including those of
younger generations who have shaken politics of many countries in recent years.
India related facts: It was ranked 60th among 79 developing economies in IDI-2017. India was among ten
emerging economies with ‘advancing’ trend, despites its low overall score. Of three pillars that make up
index, India was ranked 72nd for inclusion, 66th for growth and development and 44th for inter-
generational equity. India’s neighbours: China (26th), Nepal (22), Bangladesh (34), Sri Lanka (40) and
Pakistan (47th).
ONGC to acquire Government’s entire 51.11% stake in HPCL
Jan 22 2018
The Union Government and state-run oil explorer ONGC clinched deal for acquisition of government’s
51.11% stake in Hindustan Petroleum Corporation (HPCL) for a consideration of Rs. 36,915 crore. The deal
will be closed by end of January 2018. Earlier empowered panel headed by finance minister Arun Jaitley
had approved price bid for acquisition. The all-cash deal will help government boost its non-debt capital
receipts and meet disinvestment target (Rs 72,500 crore).
Significance
Through this acquisition, ONGC is gaining midstream and downstream presence and access to marketing
network. This acquisition will make ONGC India’s first vertically integrated oil major, having presence across
value chain in sector. The integrated entity will have advantage of having enhanced capacity to bear
higher risks, take higher investment decisions and neutralising impact of volatility of global crude prices.
As for HPCL, deal will help it in further leveraging synergy at various levels of vertical value chains as part
of integrated oil and gas group. It also will enable ONGC to mitigate risk of crude price volatility.
Background
In 2017-18 Union Budget, Finance Minister Arun Jaitley had announced that state-run oil companies will
be merged to create ‘oil major’. Following this Cabinet Committee on Economic Affairs (CCAE) in July 2017
had granted ‘in-principle’ approval to the strategic sale of HPCL to ONGC. This also included change in
management control, but allowed HPCL to retain its brand as subsidiary of the national oil explorer.
Market Share
During 2016-17, HPCL had turnover of Rs 2,13,489 crore and profit after tax of Rs 6,502 crore. It markets
around 35.2 million tonne of petroleum products accounting for market share of about 21%and has around

15,000 fuel retail outlets. ONGC contributes around 70% of Indian domestic production of crude oil and
natural gas.
Mauritius was largest source of FDI in India in 2016-2017: RBI
Jan 20 2018
According to Census on Foreign Liabilities and Assets of Indian Direct Investment Companies 2016-17
released by Reserve Bank of India (RBI), Mauritius was largest source of foreign investment (FDI) in India.
The census yields carry comprehensive information on market value of foreign liabilities and assets of
Indian companies arising on account of FDI, ODI and other investments.
Key Facts
Mauritius was largest source of FDI in India (21.8% share at market value) followed by USA, UK, Singapore
and Japan. Singapore (19.7%) was major ODI destination, followed by Netherlands, Mauritius, and US.
18,667 companies had participated in census, of them 17,020 had FDI/overseas direct investment (ODI) in
their balance sheets in March 2017. 96% of responding companies were unlisted in March 2017 and most of
them had received only inward FDI.
Unlisted companies had higher share of FDI equity capital vis-a-vis listed companies. Further, over 80% of
15,169 companies that reported inward FDI were subsidiaries of foreign companies (single foreign investor
holding over 50% of total equity).
The manufacturing sector accounted for ankit saini | mindhunter786@gmail.com |
nearly half of total FDI at market prices, information and
communication services (ICTS) and financial and insurance activities were other major sectors that
attracted FDI. Total sales, including exports, of foreign subsidiaries in India increased by 18.7% during
2016-17 whereas their purchases, including imports, increased by 20.1%.
Department of Commerce and CII ink MoU for development of Logistics sector
Jan 17 2018
The Department of Commerce has signed MoU with Confederation of Indian Industry (CII) for setting-up
institutional mechanism for the development of Logistics sector in the country.
Both will work together for taking logistics sector to global levels both in terms of efficiency and cost.
They will follow Commerce Ministry’s roadmap for modernizing logistics sector and bring it at par with
the global best.
Road map
The road map aims to foster focused engagement with the industry and collaborate with the concerned
agencies including state Government’s and other related agencies. It will also undertake mutually agreed
focused studies on logistics and promote Government’s policies on logistics
Background
The Union Government has decided to reduce Logistics cost in country from the present 14% of GDP to
less than 10% by 2022. For this purpose, a concerted effort in collaboration with Central Ministries as well
as State Governments has been initiated for simplifying the regulatory processes in both domestic and
EXIM (export-import) logistics. Government also has granted infrastructure status to number of logistics
activities, which will enable them to avail cheaper and long term commercial loans.
India ranks 30th on WEF’s Global Manufacturing Index
Jan 15 2018
The World Economic Forum (WEF) has ranked India at 30th position among 100 countries on its Global
Manufacturing Index (GMI).
The index was released as part of WEF’s first Readiness for the future of production Report which analysed
development of modern industrial strategies and urges collaborative action.
Readiness for future of production Report
The report was developed by WEF in collaboration with A.T. Kearney. It analyses and measures how well
positioned 100 countries will shape and benefit from changing nature of production through adoption of
emerging technology as part of Fourth Industrial Revolution in production. It calls for new and innovative
approaches to public-private collaboration are needed to accelerate transformation.
It has categorised 100 countries into four groups viz. Leading (strong current base, high level of readiness
for future), High Potential (limited current base, high potential for future), Legacy (strong current base, at
risk for future) or Nascent (limited current base, low level of readiness for future).
Top 10 countries in GMI: Japan, South Korea, Germany, Switzerland, China, Czech Republic, United States,
Sweden, Austria and Ireland.
BRICS nations: China (25th), Russia (35th), Brazil (41st) and South Africa (45th). China was placed among
‘leading countries’. Indian and Russia were placed in ‘Legacy’ group while Brazil and South Africa are in
‘nascent’ ones.
The 25 ‘leading’ countries were placed in best position group to gain as production systems stand on brink
of exponential change. No country was placed in frontier of readiness group.
About India: It is 5th-largest manufacturer in world with total manufacturing value added of over US
$420 billion in 2016. Its manufacturing sector has grown by over 7% per year on average in past three
decades and accounts for 16-20% of India’s GDP. Demand for Indian manufactured products is rising.
India was ranked 9th in terms of scale of production and at 48th place for complexity. It was ranked 3rd
for market size. It was ranked poorly (90th or even lower) in parameters like female participation in labour
force, trade tariffs, regulatory efficiency and sustainable resources.
Overall, India ranked better than its neighbours Sri Lanka (66th), Pakistan (74th) and Bangladesh (80th).
Other countries that ranked below India include Turkey, Indonesia, Canada, Australia, New Zealand,
Mauritius and UAE.
World Economic Forum
WEF is independent international organization committed to improving state of world by engaging
business, political, academic and other leaders of society to shape global, regional and industry agendas. It
was incorporated as a not-for-profit foundation in 1971. It is headquartered in Geneva, Switzerland.
IRFC’s green bonds: India INX lists 1st debt security at IFSC
Jan 15 2018
The India International Exchange (India INX) has listed the Indian Railway Finance Corporation’s (IRFC’s)
green bonds on its debt listing platform-Global Securities Market (GSM).
With this, IRFC green bonds became first debt security to be listed on exchange at International Financial
Services Centre (IFSC) in Gujarat’s GIFT city. India INX’s GSM segment is India’s first debt listing
platform. It allows raising funds in any currency of choice by both foreign and Indian issuers from
investors across the globe.
Indian Railway Finance Corporation
IRFC is finance arm of Indian Railway. It raises financial resources for expansion and running through
capital markets and other borrowings. It raises money mainly through financial bonds and from banks
and financial institutions. In 2017, IRFC had raised $500 million from 10- year green bond from investors
in Asia, Europe and offshore US through listing on the London Stock Exchange (LSE).
Green Bonds
Bonds basically are debt instruments which help issuer to get capital while the investors receive fixed
income in the form of interest. In case of Green Bonds, the issuer gets capital from the investors only if
investment (capital) is being raised to fund green projects relating to renewable energy or emission
reductions etc.
India International Exchange (India INX)
Indai-INX is India s first international exchange at IFSC Gujarat International Financial Tech (GIFT) City,
Gandhinagar. It is wholly-owned subsidiary of Bombay Stock Exchange (BSE), through its global bourse. It
is one of the world’s most advanced and fastest trading technology platforms with turn-around time of 4
micro seconds. It will operate for 22 hours a day allowing international investors and NRIs to trade from
anywhere across globe. It trades in equity derivatives, currency derivatives, commodity derivatives
including Index and Stocks. It also offers depository receipts and bonds.
NCDEX launches India’s first agri-options trading in Guarseed
Jan 15 2018
The National Commodity and Derivatives Exchange Ltd (NCDEX) unveiled India’s first agricultural-
commodity options in Guarseed designed as hedge for farmers to safeguard against price risks. It was

launched by Union Finance Minister Arun Jaitley in New Delhi.

Key Facts
NCDEX’s guarseed option is one of the most liquid contracts on the exchange platform. Its three options
contracts in guarseed will expire in February, March and April 2018 and will be made available for trading.
NCDEX is second exchange after MCX to launch options trading in commodities. In October 2017, MCX
had launched gold options. Market regulator SEBI had allowed NCDEX to launch options in September
2016 and later had clarified that options will have futures as underlying for settlement.
Significance
Options are derivatives which give a buyer right but not obligation to buy or sell an underlying asset or
instrument at specific price on or before a certain date. The option trading is powerful tool to hedge price
risks and will boost the development of agri-commodity market. It is considered as one of major steps
towards taking farmers out of situation resulting in drastic fall in prices of some agri-commodities due to
higher production. This initiative will benefit farmers and ensure better prices for their produce in the
coming days.
Importance of Guarseed
Guar gum is extracted from guar seed which is used by drilling companies to thicken water mixed with
sand and pumped through shale rock cracks to extract gas. It is also used as thickening agent in products
such as ice cream, bread, pasta, sausages andankitpastries.
North American oil and gas industry are mostly uses guar gum from India. Increase in crude oil prices
creates demand for guar in North America’s shale gas industry. Rajasthan, Haryana and parts of Gujarat
are major guar producers in the country.
India’s first-ever FDI in fertiliser sector: Yara acquires Tata Chemicals urea plant
Jan 14 2018
Norwegian fertiliser giant Yara International has announced completion of its acquisition of Tata
Chemicals’ 1.2 million tonnes per annum production capacity urea plant at Babrala in Uttar Pradesh.
The Rs. 2,682-crore acquisition deal includes transfer of all assets and liabilities (including working
capital) relating to Babrala unit. It marks first foreign direct investment (FDI) in India’s highly regulated
urea sector.
Key Facts
The acquisition represents a major step of Yara as it deepens its footprint in India, world’s second largest
fertiliser market after China. Moreover, a greenfield urea-ammonia plant of this size at Babrala will entail
a setting up cost of $1 billion.
Yara is headquartered in Oslo, Norway. Current it does annual sales of $35-40 million in India. Much of it
comprises premium micronutrients, complex and water-soluble fertilisers used in high-value crops such
as banana, grapes, apples, sugarcane, chilli and vegetables grown mainly in Maharashtra, Karnataka,
Andhra Pradesh and Himachal Pradesh.
IIP growth hits 17-month high of 8.4% in November 2017
Jan 13 2018
India’s factory output, measured by the Index of Industrial Production (IIP) rose to 8.4% in November 2017
from 2% in October 2017. It was due to robust performance by manufacturing and capital goods sectors.
According to data released by the Central Statistics Office (CSO), it was highest growth registered by IIP
in 17-months. The previous high was recorded at 8.9% in June, 2016.
IIP Growth in November 2017
Manufacturing sector: Recorded an impressive growth of 10.2%.
Mining output: Recorded 1.1% growth.
Electricity generation: Recorded 3.9%..
Capital goods output: It is a barometer of investment. It grew by 9.4%.
Consumer durables output: It grew just by 2.5%. It reflected weakness in urban demand.
Consumer non-durables production: Recorded growth of 23.1%.
The IIP is composite indicator that measures short-term changes in volume of production of a basket of

industrial products during a given period with respect to chosen base period. It is compiled and published
monthly by the Central Statistical Organization (CSO), Ministry of Statistics and Programme
Implementation.
sectors are 77.63%, 14.37%, 7.9% respectively.
The revised eight core Industries have a combined weightage of 40.27% in the IIP. Decreasing order of
weightage of core industries (base year 2011-12) is Petroleum Refinery production (weight: 28.04%),
Electricity generation (19.85%), Steel production (17.92 %), Coal production (10.33 %), Crude Oil production
(8.98 %), Natural Gas production (6.88 %), Steel production (17.92 %) and Fertilizer production (2.63 %).
revised IIP (2011-12) reflects the changes in the industrial sector and also aligns it with the base year of
other macroeconomic indicators like the Wholesale Price Index (WPI) and Gross Domestic Product (GDP).
World Bank Report projects 7.3% growth for India in 2018
Jan 11 2018
The 2018 Global Economics Prospect (GEP) ankit released by the World Bank has projected India’s growth rate
to 7.3% in 2018 and 7.5 for the next two years i.e. 2019 and 2020.
According to report, India, despite initial setbacks from demonetisation and Goods and Services Tax (GST),
is estimated to have grown at 6.7% in 2017, higher than 6.5% estimated by Government.
Key Highlights of 2018 GEP
India has enormous growth potential compared to other emerging economies with implementation of
comprehensive reforms. In all likelihood, India is going to register higher growth rate than other major
emerging market economies in next decade.
China grew at 6.8% in 2017, 0.1% more than that of India, while in 2018, its growth rate is projected at 6.4%.
In next two years, China’s growth rate will drop marginally to 6.3 and 6.2%, respectively. In comparison
with China, which is slowing, India growth will gradually accelerate.
To materialise its potential, India needed to take steps to boost investment prospects. On productivity
side, India has enormous potential with respect to secondary education completion rate. India is also
undertaking measures in terms of non- performing loans and productivity.
India’s prospects will further improve with improved labour market reforms, education and health
reforms as well as relaxing investment bottleneck. India has favourable demographic profile which is
rarely seen in other economies. In this, improving female labour force participation rate is going to be
important.
Global Economic Prospects
GEP is World Bank Group’s flagship report that examines global economic developments and prospects
with special focus on developing and emerging market economies. It is issued twice a year in January and
June. The January edition includes in-depth analyses of topical policy challenges while June edition
contains shorter analytical pieces.
Gujarat tops in Logistics Ease Across Different States index
Jan 10 2018
Gujarat has topped among 22 states in the Logistics Ease Across Different States (LEADS) index released
by Union Ministry of Commerce & Industry.
It was released by Union Minister of Commerce & Industry Suresh Prabhu after the third meeting of the
Council for Trade Development and Promotion in New Delhi.
Rankings in LEADS index
Punjab has acquired second position followed by Andhra Pradesh, Karnataka and Maharashtra. Among
the Union Territories, Daman & Diu occupied top slot followed by NCT Delhi and Chandigarh. As regards
the hilly states, Tripura was on top followed by Mizoram and Meghalaya.

LEADS index
The LEADs index is a composite indicator to assess international trade logistics across States/UTs based
on stakeholders’ survey conducted by Deloitte for Ministry of Commerce and Industry. It is calculated
based on eight parameters such as infrastructure, services, timeliness, track and trace, competitiveness of
pricing, safety of cargo, operating environment and regulatory process.
LEADS is loosely based on World Bank’s biannual Logistics Performance Index (LPI) on which India was
ranked 35 among 160 countries in 2016, up from 54 in 2014. It aims to serve as an indicator of efficiency of
logistical services necessary for promoting exports in particular and economic growth in general.
Forex Reserves scale record high of $409.366 billion in December 2017
Jan 6 2018
According to Reserve Bank of India (RBI), India’s foreign exchange (Forex) reserves have scaled to fresh
record high of $409.366 billion as on December 29, 2017. The surge was due to massive spike in foreign
currency assets, which is key component of the reserves.
Forex Reserves
The forex are reserve assets held by a central bank in foreign currencies. It acts as buffer to be used in
challenging times and used to back liabilities on their own issued currency as well as to influence
monetary policy. Almost all countries in world, regardless of size of their economy, hold significant foreign
exchange reserves.
The components of India’s FOREX Reserves include Foreign currency assets (FCAs), Gold, Special Drawing
Rights (SDRs) and RBI’s Reserve position with International Monetary Fund (IMF). FCAs constitute largest
component of Indian Forex Reserves.
Key Facts
As on 29 December 2017, FCAs which form key component of reserves, rose by $4.42 billion from the
previous week to $385.103 billion. FCAs are maintained in major currencies like euro, US dollar, pound
sterling, Japanese yen etc. Movement in FCA occur mainly on account of purchase and sale of foreign
exchange by RBI, income arising out of deployment of Forex reserves, external aid receipts of government
and revaluation of assets.
During this period, Gold reserves remained stable at $20.716 billion. Special drawing rights (SDR) from
IMD rose by $8.9 million from the previous week to $1.511 billion. SDR is an international reserve asset
created by IMF and allocated to its members in proportion of their quota at IMF. The Reserve Position in
the IMF rose by $12.1 million to $2.035 billion.
Core sectors’ record 6.8% growth in November 2017
Jan 2 2018
According to the data released by the Commerce and Industry Ministry, the eight core sectors expanded
at fastest pace in more than year at 6.8% in November 2017.

These eight industries — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and
electricity — had witnessed a growth of 3.2 per cent in November 2016.
Key Facts
The output growth in November 2017 is highest since October 2016, when these core sectors had
witnessed 7.1% rise. The growth was recorded on account of robust performance in segments like refinery
(rose by 8.2%), steel (16.6%) and cement (17.3%) on an annual basis in November 2017.
Crude oil and natural gas output too registered positive growth in November 2017. But coal output growth
rate recorded a negative growth. Cumulatively, the growth in the eight core sectors during April-
November this fiscal slowed to 3.9% as against 5.3% in the same period last fiscal.
Core industry can be defined as main industry of economy. In most countries, there is particular industry
that seems to be backbone of all other industries and it qualifies to be t core industry. In India, there are
eight core sectors comprising of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and
electricity.
The electricity has the maximum weight of 10.32% followed by Steel (6.68%), Petroleum Refinery (5.94%),
Crude Oil production (5.22 %), Coal production (4.38 %), Cement (2.41%), Natural Gas production (1.71 %)
and Fertilizer production (1.25%). Healthy growth in these key eight sectors has positive implications on
Index of Industrial Production (IIP) as these eight segments account for about 41% of the total factory
output.
India to become fifth largest economy in 2018: Report
Dec 27 2017
According to recently released report titled 2018 World Economic League Table, India is set to overtake
the United Kingdom and France to become the world’s fifth largest economy in 2018.
The report was released by Centre for Economics and Business Research, an economics consultancy based
in Britain.
India currently ranked seventh will overtake UK and France to become the world’s fifth largest economy
in 2018 in US dollar terms and further move to third spot by 2032.
Indian economy had hit three-year low in the first quarter of the current financial year 2017 due to
demonetisation i.e. scraping high-value banknotes and implementation of Goods and Services Tax (GST).
The growth had slumped to 5.7% for quarter ending June 2016 but had recovered slightly to 6.3% for
quarter ending September 2017. Despite temporary setbacks, India’s economy still caught up with that of
France and UK and in 2018 will overtake them.
Global economy
Cheap energy and technology prices will boost the global economy in 2018. China is likely to overtake
United States as the world’s largest economy by 2032. Britain will lag behind France over the next two
years and it will again overtake France in 2020, because effects of Brexit on UK’s economy will be less than

feared. Russia will fall to 17th place among world’s largest economies by 2032, from 11th place in 2017,
mainly because of low commodity (oil) prices in international market and its excessive reliance on energy
sector.
RBI brings Bank of India under Prompt Corrective Action
Dec 23 2017
The Reserve Bank of India (RBI) recently had initiated prompt corrective action (PCA) measures against
Bank of India (BoI) in the view of its high non-performing assets (NPAs) and insufficient capital.
The RBI placed BOI under PCA consequent to the onsite inspection under the risk-based supervision
model carried out for year ended March 2017. This was in view of high net NPA, insufficient CET1 Capital
and negative ROA (return on asset) of BOI for two consequent years.
Prompt Corrective Action (PCA)
The RBI under its supervisory framework uses various measures and tools to maintain sound financial
health of banks. PCA is one of such supervisory tools used by RBI. It involves monitoring of certain
performance indicators of banks as early warning exercise.
RBI has defined three kinds of risk thresholds under PCA framework that will depend upon the type of risk
threshold that was breached. It is initiated once such thresholds as relating to capital, asset quality and
profitability are breached.
The objective is to facilitate banks to take corrective measures in timely manner including those
prescribed by the RBI in order to restore their financial health. It also provides opportunity to RBI to pay
focused attention on such banks by engaging with management more closely in those areas.
The PCA framework is intended to encourage banks to eschew certain riskier activities and focus on
conserving capital so that their balance sheets can become stronger. Banks are placed under it depending
upon audited annual financial results and RBI’s supervisory assessment.
If a bank breaches risk threshold under PCA framework, then mandatory actions include restriction on
dividend payment and remittance of profits, restriction on branch expansion, restriction on management
compensation and director’s fees.
IMF and WB jointly release Financial System Stability Assessment report
Dec 21 2017
The International Monetary Fund (IMF) and World Bank (WB) has released the Financial System Stability
Assessment (FSSA) and Financial Sector Assessment (FSA) respectively.
It was second comprehensive Financial Sector Assessment Program (FSAP) of Indian financial system
undertaken by the joint IMF-World Bank team conforming to the highest international standards.
Financial System Stability Assessment (FSSA)
FSAP is joint program of IMF and WB involved in developing countries and region only. It undertakes a
comprehensive and in-depth analysis of a country’s financial sector. It is conducted every five years. Last
FSAP for India was conducted in 2011-12 and the report was published by IMF in January 2013.
Highlights of 2017 FSAP
The FSAP assessment acknowledges India’s strong growth in recent years in both economic activity and
financial assets. It also acknowledges many efforts undertaken by India like tackling Non-Performing
Assets (NPAs), recent recapitalization measures for banks and introduction of special resolution regime,
formalization of National Pension System (NPS) and making the pension sector regulator statutory.
It also acknowledged India’s efforts towards passing of Insolvency and Bankruptcy Code and setting up of
Insolvency and Bankruptcy Board of India (IBBI) and initiatives such as ‘no frills’ account (under Jan
DhanYojana) and introduction of unique biometric identification number (AADHAR).
It also acknowledged RBI’s substantial progress made in strengthening banking supervision by
introducing of risk-based supervision in 2013 through comprehensive and forward-looking Supervisory
Program for Assessment of Risk and Capital (SPARC) and Asset Quality Review (AQR) and strengthening
of regulations in 2015 leading to improved distressed asset recognition.
It also acknowledged RBI’s Basel III framework and other international norms have been implemented or
are being phased in. It acknowledges RBI’s move of establishing new Enforcement Department and

revising Prompt Corrective Action (PCA) framework that incorporates more prudent risk-tolerance
thresholds. It has recommended that governance and financial operations of Public Sector Banks (PSBs)
can be improved by developing strategic plan for their consolidation, divestment, and privatization.
Government to bear MDR charges on transactions up to Rs.2000
Dec 16 2017
The Union Cabinet has decided that Government will borne Merchant Discount Rate (MDR) charges on
transactions up to Rs. 2,000 made through debit cards, BHIM UPI or Aadhaar-enabled payment systems
(AePS) to promote digital transactions. It will be for two years with effect from 1 January, 2018 by
reimbursing the same to the banks.
Cost structure of such transactions
A Committee will look into industry cost structure of such transactions which will form basis to
determine levels of reimbursement. It will comprise of Secretary Department of Financial Services,
Secretary Ministry of Electronics & IT (MeITY) and CEO, National Payment Corporation of India (NPCI).
The move will have an impact of Rs 2,512 crore (Rs.1,050 crore in FY 2018-19 and Rs.1,462 crore in FY
2019-20) on the exchequer.
Significance
As a result of this approval, consumer and merchant will not suffer any additional burden in form of MDR
thereby leading to greater adoption of digital payment
ankit saini modes| for such transactions. It will help to move
towards less cash economy, since such transactions account for sizeable percentage of transaction
volume.
What is Merchant Discount Rate (MDR)?
MDR is charge or fee imposed on merchant by bank for accepting payment from their customers in credit
and debit cards every time card is used for payments (like swiping) in their stores. MDR charges are
usually shared in pre-agreed proportion between them and are expressed in percentage of transaction
amount.
MDR compensates bank issuing card, bank which puts up swiping machine (Point-of-Sale or PoS terminal)
and network providers such as Mastercard or Visa for their services. In India, the RBI specifies maximum
MDR charges that can be levied on every card transaction.
According to recent RBI notification, from January 1 2018, small merchants (turnover upto Rs.20 lakh) will
pay a maximum MDR of 0.40% of bill value and larger merchants (turnover greater than Rs.20 lakh) will
shell out 0.90%. RBI has also set monetary cap at Rs.200 per bill for small merchants and Rs.1,000 for large
ones. As per RBI rules, merchant has to pay MDR out of his own pocket and cannot pass it on to the
customer.
India ranks 100th in Legatum Prosperity Index 2017
Dec 14 2017
India was ranked 100th among 149 countries on the list of prosperous countries released as part of The
Legatum Prosperity Index 2017. The index offers an insight into how prosperity is forming and changing
across the world.
Legatum Prosperity Index
Legatum Prosperity Index is an annual ranking developed by the London-based Legatum Institute. It is
world’s leading global measure of economic and social wellbeing that studies 104 indicators under these
categories: Economic Quality, Governance, Business Environment, Personal Freedom, Safety and Security,
Social Capital, Education, Health and Natural Environment.
Highlights of 2017 Legatum Prosperity Index
The Asia-Pacific region, which includes China and India, has registered greatest improvement in business
environment and worst performance towards natural environment.
The gap between China and India’s prosperity has narrowed by four ranks since 2016 and to quarter of
what it was in 2012. China has lost out economically as people perceived greater barriers to trade and less
encouragement of competition; and educationally through a falling primary school completion rate.
The rising trend in India’s prosperity is significant in view of fact that India registered lower economic
growth following demonetisation and implementation of goods and services tax (GST) reform in 2017.

India’s performance on each front: Economic Quality- 56th rank, Business Environment- 65th,
Governance- 41st, Education- 99th, Health- 109th, Safety & Security- 134th, Personal Freedom- 100th,
Social Capital- 82nd and Natural Environment- 139th.
ABD lowers India’s GDP forecast to 6.7% for 2017-18
Dec 14 2017
The Asian Development Bank (ADB) in its Asian Development Outlook Supplement has lowered India’s
economic growth forecast for current fiscal i.e. FY 2017-18 by 0.3% to 6.7% from earlier 7%.
The reasons cited for this downward revision of growth forecast of largest economy South Asia are
lingering effect of demonetisation, transitory challenges to Goods and Services Tax (GST) and weather-
related risks to agriculture.
Key Highlights of ABD’s forecast
ADB has also revised downwards India’s gross domestic product (GDP) outlook for next fiscal beginning
from March 2018 to 7.3% from 7.4% mainly due to rising global crude oil prices and soft growth in private
sector investment. However, it expects growth to pick up in remaining two quarters of FY 2017-18 as
Government is implementing measures to ease compliance with new GST as well as bank recapitalisation.
Inflation in India has remained subdued in first seven months of 2017-18, averaging 2.7%, with low food
prices and demand still not out of woods because of demonetisation. However, inflation had picked up
since July 2017 on price uptick for food, especially pulses and vegetables. Fuel prices also inched up in
response to rising global crude oil prices. It has now projected inflation to average 3.7% in 2017-18,
somewhat below the 4% earlier forecast.
Earlier Forecasts
Prior to ADB, World Bank had reduced India’s GDP growth forecast to 7% for 2017-18, from 7.2% estimated
earlier, blaming disruptions caused by demonetisation and implementation of GST and it will grow at 7.4%
by 2019-20. The Organisation for Economic Cooperation and Development (OECD) has also cut its growth
projections for India to 6.7% for 2017-18.
Fitch Ratings in its September Global Economic Outlook (GEO) also had lowered its forecast for India’s
growth for FY 2017-18 to 6.7% from the earlier projected 6.9%, citing rebound was weaker than expected. It
also cut GDP growth forecast for 2018-19 to 7.3% from 7.4% predicted
Moody’s also had projected India’s real GDP growth to moderate to 6.7% in the current fiscal 2017-18,
down from 7.1%. According to it, GST and demonetisation have undermined growth over near term, but
real GDP growth will rise to 7.5% in 2018-19 as disruption fades. Standard & Poor’s had held that India’s
growth is among fastest of all investment-grade sovereigns and projected real GDP expansion to average
7.6% over 2017-20.
Rich-poor divide increasing rapidly: Study
Dec 14 2017
According to World Inequality Report 2018, Income inequality in India has reached historically high levels
with share of national income accruing to India’s top 1% earners touching 22% in 2014, while share of top
10% was around 56%. The report was released by World Inequality Lab (WIL), an organisation that aims to
promote research on global inequality dynamics.
Findings of report
Since 1980, richest 1% captured twice as much as poorest 50% of world population. In other words, since
1980, 27% of all new income worldwide was captured by richest 1%, while poorest 50% captured only 13% of
growth.
Inequality trends vary so greatly among countries even when countries share similar levels of
development. This highlights important role of national policies in shaping inequality. For instance since
1980, China has recorded much higher growth rates with significantly lower inequality levels than India.
Since 1980, income inequality has increased rapidly in North America, India, China and Russia while
growing moderately in Europe. However, in sub-Saharan Africa, Middle East, Brazil income inequality has
remained relatively stable but at extremely high levels.
Factors fuelling the inequality within countries and at global level include combination of privatisations

and increasing income inequality. Private capital is increasingly concentrated among a few individuals.
Deregulation and opening-up of reforms in India since 1980s have led to substantial increase in inequality.
In 2014, top 0.1% of earners have continued to capture more growth than all those in bottom 50%
combined in India.
The bottom 50% now has about 15% share in the total income. This rising inequality contrasts to 30 years
following country’s Independence in 1947, when income inequality was widely reduced and incomes of
bottom 50% grew at faster rate than national average.
The global income and wealth inequality will steadily rise if countries continue to follow same trajectory
they have been on since 1980, despite strong growth in emerging countries. There is need for more
ambitious policies to democratize access to education and well-paying jobs in rich and emerging countries
alike.
India’s first Electronic Manufacturing Cluster to be set up in Andhra Pradesh
Dec 13 2017
India’s first Electronic Manufacturing Cluster (EMC) will be coming to Andhra Pradesh. EMC has been
designed and developed for providing facilities and amenities for manufacturing mobiles and allied
products.
The Union Government, through Ministry ofankitElectronics and Information Technology (MeiTY) in 2012 had
announced about setting up EMC in India, with grant-in-aid for establishing such clusters.
Key Facts
In 2015, Andhra Pradesh Government had announced first exclusive mobile and electronic manufacturing
cluster in the new capital city Amaravati. State Government had allotted 113.27 acres of land for new
cluster, through Andhra Pradesh Industrial Infrastructure Corporation (APIIC).
For this purpose, a Special Purpose Vehicle (SPV) called Sri Venkateswara Mobiles and Electronics
Manufacturing Hub Private Limited was formed. The foundation stone was laid by Prime Minister
Narendra Modi in 2015. The SPV Company has applied for final approval of project to Union Government.
Three major Indian mobile manufacturers – Celkon, Karbonn and Lava have come forward to establish
their units in EMC.
Besides, an anchor unit has been formed in name of Seven Hills Digital Park Private Limited (SHDPPL) for
three companies. It will be involved in manufacturing of accessories to mobile phones and other related
electronic equipment. The EMC will generate around 50,000 jobs every year.
RBI keeps repo rate unchanged at 6%
Dec 6 2017
The six member Monetary Policy Committee (MPC) of Reserve Bank of India (RBI) has decided to maintain
status quo in policy rates by keeping repo rate unchanged at 6.0% under liquidity adjustment facility
(LAF).
It was RBI’s fifth bimonthly policy review for financial year 2017-18. The decision was in line with market
expectations and consistent with neutral stance of monetary policy in consonance with objective of
achieving medium-term inflation target of 4% within a band of +/- 2%, while supporting growth.
Policy Rates
Repo rate: It is rate at which RBI lends to its clients generally against government securities. It was
unchanged at 6%.
Reverse Repo Rate: It is rate at which banks lend funds to RBI. It was unchanged at 5.75%.
Marginal Standing Facility (MSF) Rate: It is rate at which scheduled banks can borrow funds overnight
from RBI against government securities. It is very short term borrowing scheme for scheduled banks. It
was unchanged at 6.25%.
Bank Rate: It is rate charged by central bank for lending funds to commercial banks. It was unchanged
6.25%. It influences lending rates of commercial banks. Higher bank rate will translate to higher lending
rates by banks.
Cash Reserve Ratio (CRR): It is amount of funds that banks have to keep with RBI. It was unchanged at 4%.

Statutory Liquidity Ratio (SLR): It was changed to 19.5% from 20%. It is amount that banks have to
maintain a stipulated proportion of their net demand and time liabilities (NDTL) in form of liquid assets
like cash, gold and unencumbered securities, treasury bills, dated securities etc.
Core sector grows 4.7% in October 2017
Dec 1 2017
According to index of eight core industries released by Ministry of Commerce and Industry, Core sector
growth has grown 4.7% in October 2017, matching September 2017 growth, which has been revised down
from 5.2%.
This is the highest core sector growth since March 2017. April-October 2017 growth stood at 3.5%, down
from 5.6% in the corresponding period last year.
Key Facts
The eight core sectors — coal, natural gas, crude oil, refinery products, cement, fertilisers, steel and
electricity — had clocked a growth of 7.1% in October 2016. However, in October 2016, right core sectors
grew at slower pace, chiefly due to subdued performance of cement, steel and refinery segments.
Steel production rose 8.4% and was followed closely by refinery products that reported 7.5% growth. Coal
output grew 3.9% in October 2017 against 10.4% in September 2017. Cement production fell 2.7% against
0.1% rise in September 2017. Crude oil production also fell 0.4% in October 2017.

Core industry can be defined as the main industry of the economy. In most countries, there is particular
industry that seems to be backbone of all other industries and it qualifies to be the core industry. In India,
there are eight core sectors comprising of coal, crude oil, natural gas, refinery products, fertilisers, steel,
cement and electricity.
and Fertilizer production (1.25%). These eight Core Industries comprise nearly 40% of weight of items
included in Index of Industrial Production (IIP), which measures factory output.
YONO: SBI to unveil India’s first integrated digital platform
Nov 24 2017
State Bank of India (SBI), the largest commercial bank in India will soon launch country’s first integrated
lifestyle and banking digital service platform named YONO (acronym for ‘You Only Need One’).
YONO is first digital banking platform that will allow customers to meet their lifestyle needs across 14
categories including booking and renting cabs, entertainment, dining experience, travel and stay etc.
Key Facts
YONO is path-breaking comprehensive digital product of SBI, developed using world’s latest digital
technologies such as Artificial Intelligence, Predictive Analytics and Machine Learning.
The integrated omni-channel digital platform will offer an array of banking and financial services which
can be accessed through mobile phones, both android and iOS and web portal through a browser. It will
allow customers with smart phones to conduct basic banking like opening an instant account (with
limited facilities) with as well as make investments. It will also enable it users to shop at various online
stores.
SBI will also use platform to sell its cards, life and general insurance and mutual funds etc. In future, it also
plans to approve retail loans through this platform as well. SBI has tied up with over 60 merchants across
14 categories like healthcare, lifestyle, hospitality and auto among others for YONO.
FSDC Sub-Committee reviews financial events of country
Nov 24 2017
The Sub-Committee of Financial Stability and Development Council (FSDC) reviewed major global and
domestic developments that could impinge country’s financial stability. The sub-committee meeting was
headed by Reserve Bank of India (RBI) Governor Urjit Patel.
Key Facts
Sub-Committee of the FSDC also discussed setting up of National Centre for Financial Education (NCFE),
operationalisation of information utilities registered by the IBBI, sharing of data among regulators and
implementation status of Legal Entity Identifier (LEI).
Besides, it also reviewed activities of its various technical groups as well as functioning of State Level
Coordination Committees. Its recommendations on FinTech and digital innovations, shadow banking
implementation group and Stewardship Code were also discussed.
Financial Stability and Development Council (FSDC)
FSDC is super regulatory body for regulating financial sector which is vital for bringing healthy and
efficient financial system in the economy. Its mandate is to strengthen and institutionalise mechanism of
maintaining financial stability, financial sector development, inter-regulatory coordination along with
monitoring macro-prudential regulation of economy.
The Union Finance Minister is chairman of FSDC. Its members are heads of the financial sector regulatory
authorities (i.e, RBI, SEBI, IRDA, PFRDA), Finance Secretary and/or Secretary, Department of Economic
Affair; Secretary, Department of Financial Services, and Chief Economic Adviser.
India ranks 51 on IMD Talent Rankings
Nov 21 2017
India ranked 51st among 63 countries on the IMD Talent Rankings in terms of ability to attract, develop
and retain talent. In previous rankings, India was ranked 54th.
The annual IMD World Talent Ranking covers 63 countries and assessed methods countries adopted to
attract and retain talent. The rankings of countries are based on their performance in three main
categories — investment and development, appeal, and readiness.
Highlights of IMD Talent Rankings
Switzerland topped list followed by Denmark, Belgium, Austria, Finland, Netherlands, Norway, Germany,
Sweden and Luxembourg in top 10. Globally, Europe continues to dominate rankings being most
competitive countries.
Leading Asian economies in rankings are Singapore, Hong Kong and Taiwan. They have cemented their
global status as hubs of attracting and retaining highly-skilled workers though they trail Europe in this
regard.
Among BRICS bloc, China was in lead with ranking of 40, followed by Russia (43) and South Africa (48).
Brazil was ranked 52nd just after India.
India Related Facts
India was ranked 62nd (on investment and development), 43rd (appeal) and 29th (readiness) in three main
categories. India is not doing good job at retaining local talent and attracting foreign labour. On both
fronts, remuneration levels, quality of life, security and property rights are deterrent to domestic
employment
Furthermore, relative to other economies, investment in education is still weak. India ranks among the
bottom five countries on list in terms of investment in education as percentage of GDP. India needs to
emphasise education system as key to prosperity. It also needs to prevent brain drain by providing better
opportunities to local talent.
India has potential to thrive in age of digital economy. Its labour growth provides necessary domestic
talent pool. India has performed well on parameters such as science in schools, availability of finance skills
and knowledgeable senior managers. But it still needs to invest in all levels of education and job related
competence mastering.
Logistics sector gets Infrastructure Status
Nov 21 2017
The Union Finance Ministry has granted Infrastructure Status to Logistics sector. Logistics Infrastructure
was included by insertion of new item in renamed category of ‘Transport and Logistics’.
The inclusion of “Logistics Sector” in the Harmonized Master List of Infrastructure Sub-sectors was
considered in the 14th Institutional Mechanism (IM) Meeting chaired by Finance Minister. The proposal
was mooted by the Commerce Ministry and was approved by finance ministry.
Logistics Infrastructure means and includes
Multi-modal Logistics Park comprising Inland Container Depot (ICD): Minimum investment of Rs.
50 crore and minimum area of 10 acre.
Cold Chain Facility: Minimum investment of Rs.15 crore and minimum area of 20,000 sq. ft.
Warehousing Facility: Minimum investment of Rs. 25 crore and minimum area of 1 lakh sq ft.
Significance
Coming under infrastructure category will help logistics sector to get credit at competitive rates and on
long-term basis with enhanced limits. It will also give access to larger amounts of funds as external
commercial borrowings (ECB), longer tenor funds from insurance companies and pension funds.
Besides, logistics sector will be also eligible to borrow from India Infrastructure Financing Company
(IIFC). It can also put logistics sector on steady growth path and its benefits could spill over to other
sectors such as food processing that use logistics services in a big way.
Need
The need for integrated Logistics sector development was felt in view of fact that logistics cost in India is
very high compared to developed countries. High logistics cost reduces the competitiveness of Indian
goods both in domestic as well as export market.
In 2017, India’s logistics performance had improved from 54th rank to 35th under World Bank’s Logistics
Performance Index (LPI). The government also expects Indian logistics sector to grow to $360 billion by
2032 from current $115 billion. The development of logistics will give boost to both domestic and external
demand, thereby encouraging manufacturing and ‘job creation’. This will in turn be instrumental in
improving country’s GDP.
Government launches BHARAT-22 Exchange Traded Fund
Nov 15 2017
The Union Government launched BHARAT-22 Exchange Traded Fund (ETF) managed by ICICI Prudential
Mutual Fund targeting an initial amount of about Rs. 8,000 Crore.
Bharat 22 Index comprise of 22 stocks including those of central public sector enterprises (CPSEs), public
sector banks (PSBs) and its holdings under the Specified Undertaking of Unit Trust of India (SUUTI).
Key Facts
ETF has been created Index S&P BSE BHARAT-22 INDEX. It is unique blend of shares of key CPSEs, Public
Sector Banks (PSBs) and also Government owned shares in blue chip private companies. It is well-
diversified ETF spanning six sectors — basic materials, energy, finance, industrials, FMCG and utilities
with a 20% cap on each sector and a 15% cap on each stock.
The sector wise weightage in the Bharat 22 Index is basic materials (4.4%), energy (17.5%), finance (20.3%),
FMCG (15.2%), industrials (22.6%), and utilities (20%). This combination makes the Index broad-based and
diversified. It has retirement fund as separate category of Investors.
and Coal India.

The BHARAT-22 ETF is expected to benefit long term and retail investors by providing an opportunity of
participation in equity stocks of Government run companies and earn stable returns. It will help to speed
up Government’s disinvestment programme budgeted to raise a record Rs 72,500 crore in the FY 2018.
Exchange Traded Fund (ETF)

ETF is index funds that offer the security of a fund and liquidity of stock listed and traded on exchanges.
Much like index funds they mirror the index, commodity, bonds or basket of assets. They are similar to
mutual funds in a certain manner but are more liquid as they can be sold quickly on stock exchanges like
shares. The ETFs trading value is based on the net asset value of the underlying stocks that it represents.
Their price changes daily as they are traded throughout the day.
India not to pursue Islamic banking: RBI
Nov 14 2017
The Reserve Bank of India (RBI) has decided not to pursue a proposal to introduce Islamic banking in India.
Decision in this regard was taken after considering wider and equal opportunities available to all citizens
to access banking and financial services.
Islamic banking
Islamic banking is banking or banking activity that is consistent with the principles of sharia and its
practical application through the development of Islamic economics. Sharia prohibits the fixed or floating
payment or acceptance of specific interest of fee for loan of money. It is different from regular banking in
that it prohibits earning of interest (or riba) through the business of lending.
Background
The proposal to introduce Islamic banking was first made in 2008 by a committee on financial sector
reforms chaired by former RBI Governor Raghuram Rajan. The committee had recommended that
interest-free banking techniques should be operated on larger scale to give access to those who are unable
to access banking services, including those belong to economically disadvantaged section of society.
The 2015 World Bank report estimates Sharia-compliant financial assets to be in range of US 2 trillion
dollars, covering bank and non-bank financial institutions, capital markets, money markets and insurance.
The Islamic Finance Industry is expanding at rate of 10%-12% annually.
India slips to 7th position in Global Business Optimism Ranking
Nov 9 2017
India has slipped to 7th position in ‘business optimism’ index in September-November quarter period
from earlier 2nd slot in the previous July-September quater. The fall in rank clearly shows clear signs of
lag in the economy.
The index was released as part of Grant Thornton’s International Business Report (IBR). The IBR provides
insight into the views and expectations of more than 10,000 businesses per year across 36 economies.
Key Facts
In September-November quarter, the index was topped by Indonesia, followed by Finland (2nd),
Netherlands (3rd), Philippines (4th), Austria (5th)
ankit saini |and Nigeria (6th).
mindhunter786@gmail.com |
Globally, overall position for business optimism remains relatively high at 49% in September quarter. It
was down by 2 pps in June quarter, and follows five consecutive quarterly increases in business
sentiment.
Indian businesses have expressed low confidence over revenue expectations in next 12 months. They also
saw a drastic fall in confidence for profitability with 54% showing optimism as against 69% in the last
quarter.
Moreover, other parameters like expectations of increase in selling prices and exports also have suffered
fall in optimism which shows clear signs of lag in the economy which caused the drop in ratings.
However, Government actions and reforms coupled with significant jump in Ease of Doing Business
Rankings may bring back optimism in Indian Business in next few quarters. Optimism remained intact in
areas of investment in plant and machinery and Research & Development (R&D).
Regulations and red tape and lack of ICT infrastructure are biggest growth constraints mentioned in
optimism rankings. Indian businesses also identified shortage of finance and lack of skilled workforce as
reasons for lack of optimism. Indian businesses are still optimistic about increase in employment as 54%
respondents expressed need to increase hiring in next 1 year, three- point rise from June quarter.
IPPB Bank to become operational in 650 districts by April 2018
Nov 9 2017
The Union Government has announced that India Post Payments Bank (IPPB) will become operational in
all 650 districts of the country by April 2018 to facilitate financial inclusion.
These banks will be linked to 1.55 lakh rural post offices for its operations and carry out banking services.
This will be largest banking network in the country. Two such banks are already operational in Ranchi
(Jharkhand) and Raipur (Chhattisgarh).
India Post Payments Bank (IPPB)
IPPB has been set up as a Public Limited Company under Department of Posts with 100% Government of
India (GOI) equity. It leverages DoP’s network, resources and reach to make low-cost, quality and simple
financial services easily accessible to customers in the country.
Its purpose is to further cause of financial inclusion by providing basic banking, remittance services and
payments services to customers. It will facilitate spread of financial services like insurance, pensions,
mutual funds to customers especially from rural areas and the unbanked and under-banked segments.
It will also generate opportunities for propagating financial literacy across the country by using state of
the art banking and payments technology. It will also generate new employment opportunities for skilled
banking professionals. It will encourage citizens to move towards a cashless economy.

Payments banks
Payments banks are new model of banks conceptualised by Reserve Bank of India (RBI) to meet
government’s financial inclusion target. They are being set up as differentiated bank and its activities are
confined to acceptance of demand deposits, remittance services, internet banking and other specified
services but not lending services.
This differentiated banking model allows mobile firms, supermarket chains and others to cater to banking
requirements of individuals and small businesses.
Payments banks can accept deposits up to Rs. 1 lakh per account from individuals and small businesses.
They can issue ATM/debit cards but not credit cards. They can also issue other prepaid payment
instruments. They can also distribute non-risk sharing simple financial products like mutual funds and
insurance products.
Legal Entity Identifier mandatory for all large corporate borrowers: RBI
Nov 3 2017
The Reserve Bank of India (RBI) has made 20-digit Legal Entity Identifier (LEI) compulsory for companies
having aggregate fund-based and non-fund based exposure over Rs 5 crore.
The move is aimed at improving risk management in wake of huge stressed assets in banking system.
Before this, RBI had made LEI mandatory for transactions in interest rate, forex and credit derivative
marke
Significance
LEI mechanism will help banks to effectively monitor debt exposure of corporate borrowers. It will also
enable banks in preventing multiple loans to companies against the same collateral.
Legal Entity Identifier (LEI)
LEI is a 20-digit unique code to identify parties to financial transactions worldwide. It is a global reference
number that uniquely identifies every legal entity or structure that is party to a financial transaction, in
any jurisdiction. LEI code has been conceived as key measure to improve quality and accuracy of financial
data systems for better risk management post the global financial crisis.
The LEI system was developed by G20 in response to inability of financial institutions to identify
organisations uniquely, so that their financial transactions in different national jurisdictions can be fully
tracked. The first LEIs were issued in December 2012.
Legal Entity Identifier India Limited (LEIL), a wholly-owned subsidiary of Clearing Corporation of India
(CCI), acts as a local operating unit (LOU) for issuing globally compatible legal entity identifiers (LEIs) in
India. Besides, entities can also obtain LEI from any of local operating units (LOUs) accredited by Global
Legal Entity Identifier Foundation (GLEIF) – the entity tasked to support implementation and use of LEI.
Listing timeline for implementing LEI
Borrowers with fund and non-fund exposure of Rs 1,000 crore and above will have to get LEI by March
2018. Those having exposure between Rs 500 crore and Rs 1,000 crore have to obtain LEI code by June
2018 and those having between Rs 100 crore and Rs 500 crore by March 2019.
Separate roadmap for borrowers having exposure between Rs. 5 crore and up to Rs. 50 crore will be issued
in due course. Borrowers who do not obtain LEI as per schedule will not be granted renewal or
enhancement of credit facilities.
LEIL will assign LEIs to any legal identity including but not limited to all intermediary institutions, banks,
partnership companies, mutual funds, trusts, holdings, special purpose vehicles (SPVs), asset management
companies and all other institutions being parties to financial transactions.
SEBI to bring Initial Coin Offerings using crypto currencies under its lens
Nov 1 2017
The capital market regulator Securities and Exchange Board of India (SEBI) is planning to bring Initial
Coin Offerings (ICO) under its existing legal framework. In recent times, popularity of crypto currencies
has increased rapidly and number of entities looking at raising funds through ICO.
Background
Crypto currencies like bitcoin, ethereum and such offerings have been under government radar for long
time. Even discussions were held between various regulatory bodies, including SEBI and Reserve Bank of

India (RBI) to regulate crypto currencies. The RBI is of the view that these instruments are securities and
so SEBI should be the regulating body. But these crypto-currencies are neither ‘commodities derivatives’
nor ‘securities’ under Securities Contracts (Regulation) Act, 1956.
Initial Coin Offering (ICO)
ICO is an unregulated means of crowd funding for project via use of cryptocurrency such as Bitcoin,
Ethereum, Monero, DASH, Litecoin, Z-cash etc. It is like an equity initial public offer (IPO) where right of
ownership or royalties of project is offered to investors in form of digital coins in exchange for legal tender
or other cryptocurrencies.
ICO is mostly used to raise funds by start-up firms dealing in block chain technology and virtual
currencies. Unlike an IPO, which is governed by SEBI regulations, there is no regulator for this kind of
crowd sourcing in India. China’s Central Bank recently had banned ICO as dubbed it as an illegal public
finance mechanism used for issue of securities and money laundering.
Crypto Currencies
Crypto Currencies or Virtual Currencies are type of unregulated digital money. They are mainly peer-to-
peer system, and transacted between users directly, without an intermediary. These transactions are
verified by network nodes and recorded in public distributed ledger called blockchain.
They are neither issued by central bank/public authority, nor is necessarily attached to fiat currency, but
is used and accepted among the members ankit of saini
a specific virtual
| mindhunter786@gmail.com | community. They are being transferred,
stored or traded electronically.
India’s ranks 100th in World Bank’s Doing Business Report 2018
Nov 1 2017
In World Bank’s recently released Doing Business (DB) Report 2018 titled as ‘Doing Business 2018:
Reforming to Create Jobs’, India leapfrogged to 100th among 190 countries.
India has jumped over 30 ranks to attain 100th spot from 130th position in 2017 Ease of Doing Business
Index. Its score also increased from 56.05 in 2017 to 60.76 in Doing Business 2018
Ease of Doing Business Index

The Ease of Doing Business Index assesses 190 economies and covers 10 indicators which span the
lifecycle of a business. These 10 indicators are: Starting a business, Dealing with construction permits,
Getting electricity, Registering property, Getting credit, Protecting minority investors, Paying taxes,
Trading across borders, Enforcing contracts and Resolving insolvency. Each one of these indicators carry
equal weightage.
India’s Performance
It saw the improvement in 6 out of 10 indicators. They are Resolving Insolvency, Paying Taxes, Getting
Credit, Enforcing Contracts, Protecting Minority Investors and Construction Permits. India ranked 103rd

in Resolving Insolvency indicator, 119th in Paying Taxes, 29th in Getting Credit, 164th in Enforcing
Contracts, 4th in Protecting Minority Investors and 181st in Construction Permits.

India figures among top 10 countries Brunei Darussalam, Thailand, Malawi, Kosovo, Uzbekistan, Zambia,
Nigeria, Djibouti and El Salvador that have marked an improvement this year. These 10 top improvers
implemented 53 regulatory reforms making it easier for them to do business.
Europe and Central Asia regions continue to have highest share of economies implementing at least one
reform as 76% of economies in the region implemented at least one business regulatory reform.
India is only country in South Asia and BRICS economies to feature among most improved economies of
the DB Report this year. In South Asia region, India was top improver, but was ranked below Bhutan (75).
Nepal (105), Sri Lanka (111), Maldives (136), Pakistan (147), Bangladesh (177) and Afghanistan (183) were
ranked below India.
Core sector growth hits 6-month high of 5.2% in September 2017
Nov 1 2017
According to index of eight core industries released by the Union Ministry of Commerce and Industry,
Core sector growth has hit six-month high in September 2017.
The core industries comprising of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement,
and electricity was up 5.2% in September 2017 compared with 4.4% in August 2017 and 5.3% in September
2016. Besides, August 2017 core sector growth was revised downwards from 4.9%.
Sector wise growth
Production of coal, natural gas and refinery products rose 10.6%, 6.3% and 8.1%, respectively in September
2017. Electricity generation rose by 5.2%, and steel production by 3.7%. Crude output and cement
production was stagnant at 0.1% each, while fertilisers output contracted 7.7%. Strong core sector growth
suggests higher industrial output in September 2017. It shows that the country’s economy has picked up
pace after disappointing first quarter.

Core industry can be defined as the main industry. In most countries, there is a particular industry that
seems to be the backbone of all other industries and it qualifies to be the core industry. In India, there are
electricity.
and Fertilizer production (1.25%). These eight Core Industries comprise nearly 38% of the weight of items
included in the Index of Industrial Production (IIP), which measures factory output.
Government constitutes Alternative Mechanism Panel for PSBs consolidation
Oct 31 2017
The Union Government has constituted Alternative Mechanism Panel headed by Union Finance Minister
Arun Jaitley to oversee merger proposals of public sector banks (PSBs). The other members of the panel
include Railway and Coal Minister Piyush Goyal and Defence Minister Nirmala Sitharaman.
Key Facts
This alternative mechanism has been set up by the government to fast-track consolidation among public
sector banks to create strong lenders. The mechanism will oversee the proposals coming from boards of
PSBs for consolidation.
The decision comes after government had announced Rs. 2.11 trillion bank recapitalisation plan for public
sector banks weighed down by bad loans, seeking to stimulate flow of credit to spur private investment. It
was also announced that recapitalisation plan will be accompanied by series of banking reforms over next
few months. The constitution of an Alternative Mechanism is move in that direction.
The Union cabinet in August 2017 had decided to set up Alternative Mechanism to fast-track PSU bank
consolidation. More about alternative mechanism (fig)

Purpose of PSBs consolidation

The move to create large banks through consolidating PSBs aims at meeting credit needs of growing
Indian economy and building capacity in PSB space to raise resources without dependence on the state
exchequer. The banking entities formed after merging PSU banks will be able to absorb shocks.
Background
The idea of bank mergers was around since 1991, when former Reserve Bank of India (RBI) governor M.
Narasimham had recommended the government merge banks into three-tiered structure, with three large
banks with an international presence at top. In 2014, PJ Nayak Committee also had suggested that
government either merge or privatize state-owned banks.
Significance of PSBs consolidation
Reduce their dependence on government for capital.
Open up more capital generation avenues, both internally and from market, for the merged entity.
From a government point of view, it will increase stream of dividends which forms part of their non-
tax revenue.
Increase the role of internal and market resources and thus reduce dependence of merged bank on
government for the future capital infusion
It will lead to greater concentration of payment and settlement flows as there will be fewer parties
in the financial sector.
Operational risks could increase post-merger as size of operations grows and distance between
management and operational personnel is greater as the administrative systems become more
complex.
It will help to deal better with their credit portfolio, including stressed assets. Consolidation will also
prevent multiplicity of resources being spent in t same area and strengthens banks to deal with
shocks,
India imposes anti-dumping duty on some stainless steel imports
Oct 26 2017
The Union Finance Ministry (Department of Revenue) has imposed anti-dumping duty on some cold-
rolled flat products of stainless steel from China, United States, South Korea and European Union to curb
the influx of cheaper imports and help local producers. The duty will be in effect till December 2020 and
exempts certain grades of stainless steel. However, government has allowed import of product as long as

end use of the import is in same form.

Earlier in October 2017, Government had imposed anti-dumping duty on import of some flat steel
products from China and EU for five years. In September 2017, Government had imposed additional
18.95% countervailing duty on some hot-rolled and cold-rolled stainless steel flat products, a first such levy
on a steel product.
Anti-dumping Duty
Anti-dumping measures are taken by Government to ensure fair trade and provide level-playing field to
domestic industry. They are not measure to restrict imports or cause unjustified increase in cost of
products. Countries initiate anti-dumping probes to determine if domestic industry has been hurt by
surge in below-cost imports. As a counter-measure, they impose antidumping duties under multilateral
WTO regime. In India, it is recommended by Commerce Ministry’s Directorate General of Anti-Dumping
and Allied Duties (DGAD) and imposed by Finance Ministry.
Government announces Bank Recapitalisation Plan to infuse Rs. 2.11 lakh crore capital in PSBs
Oct 25 2017
The Union Government has announced Bank Recapitalisation Plan to infuse Rs. 2.11 lakh crore ( $32.4
billion) capital over next two years into public sector banks (PSBs) and prioritised financing support for
MSMEs in 50 clusters. The capital infusion will be accompanied by a series of banking sector reforms that
will be revealed in the coming months.
Key Facts
Under this plan, PSBs will get Rs 1.35 lakh crore from Recapitalisation Bonds, Rs 18,000 crore from
Budgetary and remaining Rs 58,000 crore will be raised through sale of share of banks. The nature of
recapitalisation bonds will be decided in coming months and these bonds will be frontloaded over next
four quarters with maximum timeframe of two years.
Recapitalisation
Simply put, recapitalisation of banks mean adding capital to PSBs. As owners of PSBs, government can
provide capital to them. Recapitalisation injects money without incurring any liability and is different
from loan because, loan has to be repaid.
Need for Recapitalisation
Indian PSBs are saddled with high, non-performing assets (NPAs) and facing prospect of having to take
haircuts on loans stuck in insolvency proceedings. NPAs of banks had more than doubled to Rs. 7.33 lakh
crore in June 2017 from Rs. 2.75 lakh crore in March 2015. Due to this, PSBs were unable to give fresh
loans. Even under the Indradhanush roadmap introduced in 2015, Central Government had announced to
infuse Rs 70,000 crore in PSBs over four years to meet their capital requirement in line with global risk
Basel-III norms to keep these banks fully solvent.
Implications of Recapitalisation
It will increase lending capacity of PSBs which will in turn boost economy and improve private sector
investment especially when International Monetary Fund (IMF) projected growth to 5.7% which is lowest
in three-year and create jobs. The supply of money to PSBs will enable banks lend lower interest rates.
Depending on nature of recapitalisation bonds, their issuance can also impact the government’s fiscal
deficit target i.e. government’s total expenditures may exceed the revenue that it generates (apart from
money from borrowings). The planned capital infusion still falls short of some estimates that Indian banks
need $65 billion of additional capital by March 2019 to meet Basel III global banking rules.
RBI sets up task force for India Public Credit Registry
Oct 24 2017
The Reserve Bank of India (RBI) has constituted high-level task force on public credit registry (PCR) for
India. It will be chaired by Y M Deosthalee, former CMD of L&T Finance Holdings Ltd and will have nine
other members.
Public credit registry keeps extensive database of credit information that is accessible to all stakeholders.
It helps good borrowers in securing credit at lowers costs and also improve access of credit to small and
medium enterprises. It is mainly set up by central bank of the country for reporting of loan details to
Registry by lenders and borrowers mandated by law. It mainly keeps records of individuals and firms on

repayment history, unpaid debts, or credit outstanding.

Terms of reference of task force
It will review current availability of information on credit in country, assess gaps in India that could be
filled by a comprehensive PCR and suggest roadmap including priority areas for developing a transparent,
comprehensive and near-real-time PCR for India.
It will also study best international practices on PCR, decide structure of new information system. It will
also determine scope and target of comprehensive PCR such as type of information that should be covered
along with cut-off size of credit. It will submit its report by April 2018.
Background
Currently, there are four credit bureaus in India — Credit Information Bureau (India) Limited (CIBIL),
Experian, Equifax and CRIF Highmark. These bureaus are regulated by the RBI under the Credit
Information Companies (Regulation) Act, 2005. They provide credit scores and allied reports and services.
As of now, their analysis reports are used for issuing credit cards and for taking decisions mainly on retail
loans.
Government makes mandatory for Banks to match original IDs with photocopies
Oct 23 2017
The Department of Revenue (DoR), Finance Ministry has made it mandatory for banks and financial
institutions to check original identificationankitdocuments of individuals
saini | mindhunter786@gmail.com | dealing in cash above prescribed
threshold to weed out use of forged or fake copies.
In this regard, DoR has issued an official gazette notification making an amendment to Prevention of
Money-laundering (Maintenance of Records) Rules.
Background
The Prevention of Money Laundering Act (PMLA), 2002 forms core of legal framework to combat money
laundering and generation of black money. The PMLA and its rules impose obligation on reporting entities
like banks, financial institutions and intermediaries to verify identity of clients, maintain records and
furnish information to Financial Intelligence Unit of India (FIU-IND). Intermediaries like chit fund
company, stock broker, cooperative bank, housing finance institution and non-banking finance companies
(NBFCs) are also classified as reporting entities.
New Rule
The new rule now requires reporting entity to compare copy of officially valid id produced by client with
original and recording same on copy. It also has made mandatory for biometric identification number
Aadhaar and other official documents requirement to be obtained by reporting entities from anyone
opening bank account as well as for any financial transaction of Rs 50,000 and above. The same is also
required for all cash dealing of more than Rs 10 lakh or its equivalent in foreign currency.
If valid document furnished does not contain updated address, utility bill like telephone, electricity, post-
paid mobile phone, piped gas or water bill not more than two months old can be considered as a proof of
address. Besides, property or municipal tax receipt, pension or family pension payment orders issued to
retired employees by Government departments or letter of allotment of accommodation from employer
can be also considered for same purpose.
MCX launches India’s first commodity options in Gold
Oct 18 2017
Largest commodity bourse Multi-Commodity Exchange of India Ltd (MCX) launched India’s first
commodity options in gold. It was launched by Union Finance Minister Arun Jaitley.
The gold futures contract will have bi-monthly duration. The option will also have the existing gold kilo
futures contract as its underlier.
Options
Options are an instrument that gives buyer right to buy or sell an underlined at present price on a future
date. They are of two types: puts (right to sell) and calls (right to buy). According to market experts,
options are also a much better hedging instrument as compared to futures for hedgers.
Key Facts
MCX’s Gold Option contract is European-styled Gold options with Gold (1 Kg) futures as underlying asset.

These options are hedge-friendly and physically settled. It means that on exercise at expiration options
position develops into corresponding underlying MCX 1 KG Gold futures position at strike price of
exercised options.
The options product is unique and first of its kind which gives buyers right to buy or sell underlying asset,
but no obligation, at a specified price at expiry. Thus, for buyers, risk is limited only to premium paid to
option seller (i.e. Option writer).
Comment
The launch of commodity options in gold denotes one of most significant reform measures since modern
commodity derivatives trading started in 2003. It will give stakeholders new set of financial instruments
to hedge their price risks. Moreover, introduction of options gives strong impetus towards systematic
development and transformation of commodity derivatives market in India, ushering in new era in price
risk management in response to stakeholder expectations
Multi Commodity Exchange Ltd (MCX)
MCX is country’s largest metals and energy commodity bourse. It is country’s first listed commodity
futures exchange that facilitates online trading, and clearing and settlement of commodity futures
transactions, thereby providing a platform for risk management.
It began functioning in November 2003 and operates within regulatory framework of the Forward
Contracts Regulation Act, 1952 (FCRA, 1952). ankitIt
sainioffers futures| trading in bullion, ferrous and non-ferrous
metals, energy, and a number of agricultural commodities (mentha oil, cardamom, potatoes, palm oil and
others). Globally, MCX ranks no. 1 in silver, no. 2 in natural gas, no. 3 in crude oil and gold in futures
trading.
IIP rises to 9-month high of 4.3% in August 2017
Oct 13 2017
According to data released by Central Statistics Office (CSO), factory output measured in terms of Index of
Industrial Production (IIP) has grown nine-month high to 4.3% in August 2017. This was mainly due to a
robust performance of the mining and power sectors.
Key Facts
The manufacturing sector output grew 3.1% in August 2017, mining sector output surged 9.4% and
electricity generation increased 8.3%. Production of capital good rose 5.4% in August 2017. Consumer
durables output increased 1.6% and consumer non-durables output rose 6.9% in August 2017.
The CSO had revised base year of IIP from 2004-05 to 2011-12 in May 2017 to capture structural changes in
economy and improve quality and representativeness of indices. The revised IIP (2011-12) reflects changes
in industrial sector and also aligns it with base year of other macroeconomic indicators like Wholesale
Price Index (WPI) and Gross Domestic Product (GDP).
The IIP covers 407 item groups. Sector wise these items falls into 3 categories viz. Manufacturing (405
items), Mining (1 items) & Electricity (1 item). The weights of three sectors are 77.63%, 14.37%, 7.9%
respectively. The revised eight core Industries have combined weightage of 40.27% in IIP.
IMF lowers India’s growth forecast to 6.7 %
Oct 11 2017
The International Monetary Fund (IMF) in its October World Economic Outlook (WEO) has lowered India’s
economic growth forecast at 6.7% in 2017 and 7.4% in 2018.
It is slower than 0.5 and 0.3 percentage points projected earlier by IMF. In April 2017 forecast, IMF had
revised upwards India’s growth performance for 2016 to 7.1% as opposed to 6.8%
Key facts
The report has cited impact of demonetisation and implementation of Goods and Services Tax (GST) for
expected slowdown during the current and the next year. It also held that India’s slowdown is happening
even as the world economy is picking up steam. But it expects revival of growth in future due to structural

reform.
India will regain fastest growing major economy tag next year when it is forecast to grow 7.4%, slower
than earlier estimate of 7.7% but higher than China’s 6.5%. It also expects that the Indian economy to grow
8% in the medium term on the back of reforms undertaken so far.
Comment
IMF forecast is latest in series of downgrades in India’s growth prospects unveiled by other multilateral
agencies such as World Bank, Asian Development Bank (ADB) and OECD. Earlier, RBI had lowered its
growth forecast for 2017-18 to 6.7% from 7.3%.
The WEO is survey conducted and published by IMF. It is published biannually and partly updated two
times a year. It portrays the world economy in the near and medium context, with growth projections for
up to four years into the future. WEO forecasts include key macroeconomic indicators, such as GDP,
inflation, fiscal balance and current account of more than 180 countries around the globe. It also deals
with major economic policy issues.
India ranks 8th in 2017 Valuable Nation Brand List
Oct 10 2017
According to Brand Finance’s recently released Nation Brands 2017 report, India was ranked 8th out of
100 countries on a list of most valuable nationankit brands. This year
saini | mindhunter786@gmail.com | India slipped by one spot compared to 7th
rank in 2016 and ceded its previous spot to Canada.
Key Facts
Top 10 Valuable Nation brands are United States (1st), China (2nd), Germany (3rd), Japan (4th), United
Kingdom (5th), France (6th), Canada (7th), India (8th), Italy (9th) and South Korea (10th).
In terms of valuation, India’s National Brand Value in 2017 is $2.04 trillion, down by 1% from last year’s
$2.06 trillion. However, India’s brand rating has improved from ‘AA-‘ to ‘AA’. Despite rating improvement,
India has not feature in list of 10 best performing nation brands which is topped by Iceland topped.
Asian nation brands are seeing a boom as Western countries stagnate. China is fastest growing nation
brand and has seen a record rise of $3.1 trillion. However, China’s nation brand value is half of that of the
United States.
Valuable Nation Brand List
World’s most valuable nation list released as part Nation Brands report by Brand Finance measures
strength and value of nation brands of 100 leading countries. Its method is based on royalty relief
mechanism employed to value the world’s largest companies. The valuation is based on 5 year forecasts of
sales of all brands in each nation and follows a complex process in which Gross domestic product (GDP) is
used as a proxy for total revenues.
Recommendations of Uday Kotak Committee on Corporate Governance
Oct 7 2017
21-member Committee on corporate governance headed by banker Uday Kotak has submitted its report to
the Securities and Exchange Board of India (SEBI).
The panel was constituted by SEBI in June 2017. It was given four months to submit its recommendations.
In its suggestions it has recommended major overhaul of corporate governance norms for listed firms.
Recommendations of Committee
Separation of the roles: Roles of chairman and managing director at listed firms should be separated and
chairmanship should be limited to only non-executive directors. Listed firms with more than 40% public
shareholding should have separate roles of chairperson and MD/CEO with effect from April 1, 2020. After
2020, SEBI may examine extending requirement to all listed entities with effect from 2022.
Minimum board strength: It should be increased to 6 members and at least one woman should be
appointed as independent director. At least five board meeting for listed firms should be held in year up
from current practice of four meetings. Firms’ board should at least once a year discuss succession
planning and risk management.
Independent Directors: At least half of board members to be independent directors at listed companies,
while all directors must attend at least half of board meets. Public shareholders’ nod must be mandatory

for non-executive directors over 75 years of age.

Shareholder meeting and cash flow statement: Top 100 firms by market capitalisation should webcast
shareholder meeting and all listed firms should have cash flow statement every six months. It should be
mandatory disclosure of quarterly consolidated earnings by listed firms.
Credit ratings: Updated list of all credit ratings obtained by the listed entity must be made available at
one place, which would be very helpful for investors and other stakeholders.
Minimum remuneration: Independent directors must get minimum remuneration of Rs 5 lakh per annum
and sitting fee of Rs 20,000-50,000 for each board meet. It should be mandatory for firms to seek public
shareholders’ approval for annual remuneration of executive directors from promoter family if amount is
above Rs 5 crore or 2.5% of firm’s net profit.
In case of more than one such director, same condition should apply for aggregate annual remuneration
exceeding 5% of the net profit. The approval of shareholders must be required every year in which annual
remuneration payable to single non-executive director exceeds 50% of total annual remuneration payable
to all non-executive directors.
Risk management and IT committee: Top-500 listed companies should have risk management committee
of boards for cyber security. In addition, listed entities must constitute an information technology
committee that will focus on digital and technological aspects.|
RBI keeps repo rate unchanged at 6%

Oct 4 2017
The six member Monetary Policy Committee (MPC) of Reserve Bank of India (RBI) has decided to maintain
status quo in policy rates by keeping repo rate unchanged at 6.0% under liquidity adjustment facility. It
was RBI’s fourth bimonthly policy review for financial year 2017-18.
The decision of MPC was consistent with neutral stance of monetary policy in consonance with objective
of achieving medium-term inflation target of 4% within a band of +/- 2%, while supporting growth.
Policy Rates
Repo rate: It is rate at which RBI lends to its clients generally against government securities. It was
unchanged at 6%.
Reverse Repo Rate: It is rate at which banks lend funds to RBI. It was unchanged at 5.75%.
Marginal Standing Facility (MSF) Rate: It is rate at which scheduled banks can borrow funds overnight
from RBI against government securities. It is very short term borrowing scheme for scheduled banks. It
was unchanged at 6.25%.
Bank Rate: It is rate charged by central bank for lending funds to commercial banks. It was unchanged
rates by banks.
Cash Reserve Ratio (CRR): It is amount of funds that banks have to keep with RBI. It was unchanged at 4%.
Statutory Liquidity Ratio (SLR): It was changed to 19.5% from 20%. It is amount that banks have to
maintain a stipulated proportion of their net demand and time liabilities (NDTL) in form of liquid assets
like cash, gold and unencumbered securities, treasury bills, dated securities etc.
Key Highlights of 4th bi-monthly policy
RBI has indicated rise in inflation and is expected to rise from its current level and range between 4.2-4.6%
in second half of this year. It also has indicated a fall in GVA (Gross Value Addition) growth rate. The
projection of real GVA growth for 2017-18 has been revised down to 6.7% from August 2017 projection of
7.3%.
According to RBI, various structural reforms introduced in recent period will likely be growth augmenting
over medium- to long-term by improving business environment, enhancing transparency and increasing
formalisation of economy.
Core sector growth rises to 4.9% in August 2017
Oct 4 2017
According to Ministry of Commerce & Industry, eight core sectors grew by 4.9% in August 2017, the
highest growth rate since April 2017. It was higher than 3.1% in August 2016 and 2.6% in July 2017
The growth was recorded on account of robust performance of coal, natural gas and electricity segments.
But, growth in Crude oil, cement and fertiliser segments declined.
Key Facts
Coal production recorded 15.3% growth in August 2017, up from a low base of -9.7% contraction in August
2016. Electricity output

grew by 10.3% in August 2017 from a low base of 2.2% growth in August 2016. Steel production
registered 3% growth in August 2017, down from 16.7% in August 2016. Cement sector growth fell
to -1.3% in August from 3.1% growth in August 2016.
Fertilizer output contracted by -0.7% in August 2017 as against 2.5% growth in August 2016. Natural gas
registered a 4.2% growth in August 2017 from a low base of -5.9% fall in August 2016. Refinery products
output stayed almost at same level with 2.4% growth in August 2017 as against 2.5% growth in August
2016. Crude oil production shrunk by -1.6% in August 2017 from negative growth of -3.9% in 2016.
Eight core sectors
Core industry can be defined as the main industry. In most countries, there is particular industry that
seems to be the backbone of all other industries and it qualifies to be the core industry. In India, there are
electricity.
and Fertilizer production (1.25%).
Healthy growth in core sectors have positive implications on Index of Industrial Production (IIP) as these
segments account for about 40.27 % of the weight of items in the total factory output.
India ranks 40th in 2017 Global Competitiveness Index
Sep 27 2017
India was placed at 40th spot among 137 countries in World Economic Forum’s (WEF) Global
Competitiveness Index (GCI) 2017-18. India has slipped by one position compared to 39th spot in 2016 GCI.
Global Competitiveness Index
WEF’s GCI assesses competitiveness of countries to provide insight into drivers of their productivity and prosperity.
GCI scores are calculated on basis of 12 categories called ‘pillars of competitiveness which covers both business and
social indicators. It includes pillars such as institutions, infrastructure, health and primary education, labour market
efficiency, financial market development, technological readiness and market size.
Key Highlights of 2017 GCI

Top 5 Countries: Switzerland (1st), United States (2nd), Singapore (3rd), Netherlands (4th) and Germany
(5th).

BRICS Countries: China (27th), Russia (38th), India (40th), South Africa (61st) and Brazil (80th).
India related facts: India remains most competitive country in South Asia. It has improved across most
pillars of competitiveness, particularly infrastructure (66th, up by 2), higher education and training (75th,
up by 6), and technological readiness (107th, up by 3) reflecting recent public investments in these areas.
The report has lauded India’s efforts in information and communications technology (ICT) sector as it can
boost internet economy.
Global Challenges: According to 2017 GCI, there are risks from uncertain global economic conditions.
Since 2008 global financial crisis, prospects for sustained economic recovery remain at risk due to
widespread failure on part of leaders and policymakers to put in place reforms necessary to underpin
competitiveness.

RBI takes masala bonds out of corporate bond limit for FPIs
Sep 23 2017
The Reserve Bank of India (RBI) has increased corporate bond investment limit for foreign investors by
taking out Masala bonds (rupee-denominated bonds) from ambit of total debt investment limit. They will
be considered as part of External Commercial Borrowings (ECBs) and will be monitored accordingly.
Key Facts
Currently, masala bonds are reckoned both under combined corporate debt limit (CCDL) for FPI (Foreign
Portfolio Investments) and external commercial borrowings (ECBs). At present, limit for investment by
FPIs in corporate bonds is Rs. 2,44,323 crore. It includes issuance of rupee-denominated bonds (RDBs)
overseas by resident entities of Rs 44,001 crore (including pipeline). The amount of Rs 44,001 crore arising
from shifting of Masala bonds will be released for FPI investment in corporate bonds over the next two
quarters.

Background
With surge in inflows in Indian debt markets in current year, cumulative utilisation of FPI limit in
corporate bonds stood at 99.07% as on September 2017, reflecting limited scope of further FPI
investments. The revised limit is expected to allow FPIs to make additional investments of a similar
amount in corporate bonds.
Masala bonds
The Masala bonds refer to rupee-denominated bonds through which Indian entities can raise money from
foreign markets in rupee, and not in foreign currency.
ankit saini Basically,
| mindhunter786@gmail.com | they are debt instruments used by
corporates to raise money from investors. The issuance of rupee denominated bonds, protects Indian
entity against risk of currency fluctuation, typically associated with borrowing in foreign currency. It also
helps in internationalization of the rupee and in expansion of t Indian bond markets. These bonds are
usually traded on the London Stock Exchange (LSE) and not in India.
FTSE SBI Bond Index: India’s first bond index series launched by SBI
Sep 23 2017
State Bank of India (SBI) along with FTSE Russell, global index and data provider launched FTSE SBI Bond
Index series at London Stock Exchange (LSE). It is India’s first bond index series for overseas investors.
It launch follows November 2015 visit of Prime Minister Narendra Modi in UK when letter of intent was
signed between SBI and FTSE to jointly develop new index tracking Indian fixed income securities.
FTSE SBI Bond Index Series
FTSE SBI Bond Index is positioned as first-of-its-kind transparent and reliable benchmark for investors in
international markets to analyse India’s government bond market. It will significantly contribute to
development and broadening of Indian bond market. It demonstrates SBI’s commitment to play befitting
leadership role in development of India’s bond market.
Background
Indian government bond market is worth around $1.7 trillion. Prior to launch of FTSE SBI Bond Index, the
bond market was not having any reliable international indices on which international investors can invest
in the country. Investors are eager to invest in India, but lacked enough depth in terms of the various
types of bond products.
RBI to regulate peer-to-peer lending firms as NBFCs: Government
Sep 21 2017
The Union Government has issued gazette notification, notifying that Peer-to-peer lending (P2P)
platforms will be treated as non-banking financial companies (NBFCs) and thus regulated by Reserve Bank
of India (RBI).
The notification will help P2P lenders to gain official recognition and opens new avenues for fund-raising
and business expansion. It also ends the regulatory vacuum in which P2P lending firms were operating.
Background
The RBI had floated a consultation paper in April 2016 on developing regulatory norms for P2P lending. It
had proposed 6 key areas to frame regulatory framework encompassing permitted activity, regulations on
capital, governance, business continuity plan and customer interface and regulatory reporting of P2P
lending.

Peer-To-Peer Lending (P2P)

P2P lending is a form of crowd-funding used to raise loans which are paid back with interest. It enables
individuals to borrow and lend money – without use of an official financial institution as an intermediary.
It can use an online platform that matches lenders with borrowers in order to provide unsecured loans.
P2P lending gives access to credit to borrowers who are unable to get it through traditional financial
institution. It boosts returns for individuals who supply capital and reduces interest rates for those who
use it.
Need
P2P lending is one of the crowd-funding business model that has gathered momentum globally and is
taking root in India. It promotes alternative forms of finance, where formal finance is unable to reach. It
has potential to soften lending rates as result of lower operational costs and enhanced competition with
traditional lending channels. If properly regulated, P2P lending platforms can do this more effectively.
Though it is in nascent stage but it is not significant in value yet, but it promises potential benefits to
various stakeholders (borrowers, lenders, agencies etc).
SEBI allows REITs, InvITs to raise funds via debt securities
Sep 19 2017
Capital markets regulator SEBI (Securities and Exchange Board of India) amended guidelines of Real
Estate Investment Trusts (Reits) and Infrastructure Investments
ankit saini | mindhunter786@gmail.com | Trusts (InvITs) in order to broaden scope
of fund raising by such instruments.
Amended Guidelines
It allows REITs and InvITs to raise capital by issuing debt securities. REITs now require to have 50% stake
in holding company marginally less from earlier limit of 51%. Like InvITs, REITs are now allowed to invest
in single assets and can also lend to an underlying holding company. REITs have been allowed to lend to
an underlying holding company or a special purpose vehicle (SPV).
Real Estate Investment Trusts (Reits)
Reits are investment vehicles that can be used by real estate players to attract private investment, while
investors (both retail and institutional) can gain dividends generated from income-producing real estate
assets like office buildings, shopping malls, etc. They are similar to mutual funds which provide
opportunity to invest in equity stocks, whereas REITs allow one to invest in income-generating real estate
assets.
In REITs, most of the earnings via sale / rent of such investments are distributed to its shareholders. Its
purpose is to improve the liquidity position of Real Estate developers and give a secure avenue to
investors to invest in long term. REITs are only for completed projects not the under-construction
projects. They are primarily for commercial projects and mainly serve as an alternative investment.
GSTN reopens composition scheme window for small traders
Sep 18 2017
The GST Network (GSTN) has reopened composition scheme window facility for small taxpayers with
turnover of up to Rs.75 lakh to opt for composition scheme, which offers easy compliance for business as
returns are to be filed only quarterly. The window will be open for those taxpayers who have migrated
from earlier excise, service tax or VAT regime as well as for the newly registered taxpayers.
Earlier, small taxpayers were given time deadline of August 2017 to opt for composition scheme. But, only
10.86 lakh taxpayers, out of total 85 lakh registered businesses had opted for the scheme.
Background
The GST Council headed by Union Finance Ministry had decided to reopen window for allowing taxpayers
to opt for scheme. Taxpayers who will opt for the composition scheme during the period will be given the
facility from 1 October 2017. These taxpayers will be treated as normal taxpayer and will have to file
monthly return.
About Goods and Services Tax Network (GSTN)
GSTN is a not for profit, non-Government, private limited company incorporated in 2013. The Union
Government holds 24.5% equity in GSTN. It has been set up primarily to provide IT infrastructure and
services to the Central and State Governments, tax payers and other stakeholders for implementation of

Goods and Services Tax (GST).

All States including two UTs (Delhi and Puducherry) and the Empowered Committee of State Finance
Ministers (EC) together hold another 24.5%. Balance 51% equity is with non-Government financial
institutions-HDFC Bank Ltd (10%), HDFC Ltd (10%), ICICI Bank Ltd (10%), NSE Strategic Investment
Corporation Ltd (10%) and LIC Housing Finance Limited (11%).
The Revenue Model of GSTN after GST rollout will consist of User Charge to be paid by stakeholders who
will use the system and thus it will be a self-sustaining organization.
India’s Forex reserves cross $400 billion for first time
Sep 16 2017
According to Reserve Bank of India (RBI), India’s foreign exchange (Forex) reserves have crossed $400
billion mark for the first time. The increase was due sharp rise in foreign currency assets.
India is now at sixth position in forex reserves ranking behind China (3,053 billion reserves), Japan ($1,188
billion), Switzerland ($743 billion), Saudi Arabia ($489 billion) and Taiwan ($441 billion).
Components
The Foreign exchange reserves act as buffer to be used in challenging times. The components of India’s
FOREX Reserves include: Foreign currency assets (FCAs), Gold, Special Drawing Rights (SDRs) and RBI’s
Reserve position with International Monetary Fund (IMF). FCAs constitute largest component of the Forex
Reserves.
Key Facts
According to RBI, foreign currency assets were $376.20 billion, gold reserves at $20.69 billion, SDRs of $
1.52 billion and $2.30 billion reserves in IMF.
The main reasons for rise in Forex Reserves are sharp increase in foreign currency assets, mainly huge
inflows through foreign direct investments (FDI) in projects and portfolio investments. Foreign investors
have pumped in Rs. around $ 6.7 billion in stocks and $20.55 billion in debt instruments in 2017.
It has resulted in strengthening of rupee 6% this year, making it best performer currency among major
emerging economies. The rupee had slumped to 68.86 in November 2016 before recovering but now it is
64.09 to the dollar.
London tops in 2017 Global Financial Centres Index
Sep 12 2017
London has topped in the 2017 Global Financial Centres Index (GFCI) among 92 financial centres released
by the Z/Yen and China Development Institute. India’s financial capital Mumbai was ranked at 60th
position, up by three positions compared to previous edition.
Global Financial Centres Index
The index is ranking of the competitiveness of financial centres based on aggregate of indices from five
key areas: business environment, financial sector development, infrastructure factors, human capital,
reputation and general factors. It is published twice a year. It is widely quoted as a source for ranking
financial centres.
Key Facts
There is little change in top five positions compared to previous year. London and New York remain in
first and second places. Hong Kong
has moved just ahead of Singapore. Tokyo remains in fifth. New York was 24 points behind
London, biggest gap between the two since survey started in 2007 presumably due to fears over
US trade.
The index shows that London is globe’s most attractive financial centre despite Britain’s looming
departure from the European Union. Earlier it was believed that due to Brexit, London will lose its pre-
eminent status as a financial centre, but there are very few signs of that happening yet.
There is overall drop in confidence amongst leading centres. Of the top 25 centres, 23 fell in ratings and
only two rose. At lower end of table, 20 of 25 lowest rated centres actually rose in the GFCI ratings.
Western European financial centres are still volatile. Frankfurt, Dublin, Paris and Amsterdam all rose in
rankings, but Geneva, Zurich and Luxembourg fell in rankings. European centres continued to fluctuate as
people speculate about which centres might benefit from London leaving U. Stockholm, Copenhagen, and
Vienna all showing strong rises.
The leading financial centres in Asia/Pacific region fell in ratings. All of top ten centres in region fell in
ratings with Singapore, Tokyo, and Osaka all showing fall in ratings. These are reverses of strong gains
made in the year 2015-16.
China bans Initial Coin Offering
Sep 6 2017
The People’s Bank of China (PBC), central bank of China has banned individuals and organisations from
raising funds through initial coin offerings (ICO) saying that practice constituted illegal fund-raising.
The PBC notified that digital token financingankitand trading platforms are prohibited from doing conversions
of coins with fiat currencies. Digital tokens cannot be used as currency on t market and banks are
forbidden from offering services to ICOs.
Initial Coin Offering
ICO is an unregulated means of crowd funding for project via use of cryptocurrency such as Bitcoin,DASH,
Ethereum, Monero, Litecoin, Z-cash etc. The right of ownership or royalties of project is offered to
investors in form of digital coins in exchange for legal tender or other cryptocurrencies. It means that ICO
allows entrepreneurs create their own digital currencies and selling “coins” on the web under ICO route,
allowing them to raise millions of dollars in a matter of minutes. The value of coin depends upon the
success of business. Presently, there is no regulator for this kind of crowd sourcing.
Crypto Currencies or Virtual Currencies are type of unregulated digital money that is neither issued by central
bank/public authority, nor is necessarily attached to a fiat currency, but is used and accepted among the members of
a specific virtual community. They are capable of being transferred, stored or traded electronically.
HDFC Bank listed in Domestic Systemically Important Banks

Sep 5 2017
The Reserve Bank of India (RBI) has added HDFC Bank, the second largest private sector lender of country
in list of Domestic Systemically Important Banks (D-SIBs). HDFC Bank is third bank in country to be
added in list of D-SIBs after State Bank of India (SBI) and ICICI Bank which were added in 2016 and
continue to be in that category.
Systemically Important Banks
SIBs are perceived as certain big banks in country. Since country’s economy is dependent upon these
banks, they are perceived as ‘Too Big To Fail (TBTF)’. There are two types of SIBs: Global SIBs, identified
by BASEL committee on banking supervision and Domestic SIBs; identified by central Bank of country.
Need
Following the global financial crisis of 2008, it was observed that problems faced by certain large and
highly interconnected financial institutions hampered orderly functioning of financial system, which in
turn, negatively impacted real economy.
As some of the banks are perceived as TBTF, they can lead to reckless practices on their part like increased
risk-taking, reduction in its market discipline, creation of competitive distortions etc. because of
expectation of government support them at time of distress. All this can increase probability of distress in
future.
Therefore, it is required recognition of these banks as SIBs and subjected to additional policy measures to
deal with systemic risks and moral hazard issues posed by them. They are forced to have additional capital

against financial emergency, so that taxpayer money not wasted in rescuing them during crisis.
RBI Framework for dealing with D-SIBs
RBI had started listing D-SIBs from August 2015 after it had issued Framework for dealing with D-SIBs in
July 2014. D-SIB Framework requires RBI to disclose names of banks designated as D-SIBs every year in
August starting from August 2015.
The framework also requires that D-SIBs may be placed in four buckets depending upon their Systemic
Importance Scores (SISs). Based on bucket in which D-SIB is placed, an additional common equity
requirement has to be applied to these listed banks, as mentioned in Framework.
In case foreign bank having branch presence in India is Global-SIB, it has to maintain additional CET1
capital surcharge in India as applicable to it as a G-SIB, proportionate to its Risk Weighted Assets (RWAs)
in India under the D-SIB Framework.
Identification of D-SIBs
The D-SIB Framework specifies a two-step process of identification of D-SIBs. In first step, sample of
banks to be assessed for systemic importance has to be decided. The selection of banks in sample for
computation of SIS is based on analysis of their size as a percentage of annual GDP.
Moreover, additional Common Equity Tier 1 (CET1) requirements are also applicable to D-SIBs from April
1, 2016 in phased manner and will be fully effective from April 1, 2019. The additional CET1 requirement
will be in addition to the capital conservationankitbuffer.
Eight core sectors growth slips to 2.4% in July 2017

Sep 1 2017
The growth of eight core sectors slowed to 2.4% in July 2017 due to contraction in output of crude oil,
refinery products, fertiliser and cement. These eight sectors had witnessed 3.1% growth in July 2016.
Cumulatively, these eight core sectors recorded a growth of 2.5% in April-July 2017 period as against 6% in
same period in 2016. In June, these eight sectors had recorded growth rate of 0.8%.
Slow growth in key core sectors will have implications on the Index of Industrial Production (IIP) as these
sectors account for about 40.27% to the total factory output.
Core sectors
Core sectors or industry can be defined as the main industry of the economy. In most countries, particular
industry qualifying to be the core industry are said to be the backbone of all other industries. In India,
there are eight core sectors comprising of coal, crude oil, natural gas, refinery products, fertilisers, steel,
cement and electricity.
The electricity has maximum weight of 10.32% followed by Steel (6.68%), Petroleum Refinery (5.94%),
and Fertilizer production (1.25%). These eight Core Industries comprise nearly 40.27% of weight of items
included in IIP, which measures factory output.
July 2017 Core Industries Stats
Steel production rose by 9.2% and electricity generation by 5.4%. Natural gas output rose by 6.6%. Coal
output growth decelerated to 0.7% as against 4.1% in July 2016. Production of crude oil declined by 0.5%,
refinery products by 2.7%, fertiliser by 0.3% and cement by 2%.
ICEX launches world’s first diamond futures contracts
Aug 28 2017
The Indian Commodity Exchange (ICEX) as launched world’s first diamond futures contracts to provide
exporters with a hedging tool.
India is a global diamond polishing hub where 14 out of every 15 rough diamonds in the world are polished.
The futures contracts will enable companies involving in cut and polished gems business to better hedge
price risks.
ICEX has received approval from market regulator Securities Exchange Board of India (SEBI) to commence
trading with diamond futures contracts.
Key Facts
The ICEX has started trading in 1 carat/100 cent contracts and eventually in future will add 50 cent and 30
cent contracts. It has put in place necessary infrastructure to handle deposits, grading and sealing,

vaulting and delivery of diamonds for the diamond futures contracts.

To avail futures contracts sellers will need to get the diamond certified by De Beers-promoted
International Institute of Diamond Grading and Research. The certification will allow getting credit in
electronic form equivalent to the carat deposited.
Indian Commodity Exchange (ICEX)
ICEX is deemed recognized Stock exchange providing a nation-wide on-line trading platform in
commodity derivative. It is a public-private partnership with Reliance Capital, MMTC Ltd, Indiabulls
Housing Finance Ltd, Indian Potash Ltd, KRIBHCO and IDFC Bank as major shareholders. It was
established under the SCRA, 1956 in terms of Section 131(B) of Finance Act, 2015 pursuant to central
Government notification issued in August 2015.
Government notifies Banking Regulation (Amendment) Act, 2017
Aug 28 2017
The Union Government has notified the Banking Regulation (Amendment) Act, 2017. The Parliament had
approved the Banking Regulation (Amendment) Bill, 2017 which replaced an ordinance in this regard.
It amended the Banking Regulation Act, 1949 by adding provisions for handling cases related to stressed
assets or non-performing assets (NPAs) of banks.
Key Facts
The Act empowers the Central government ankit to saini
authorize the Reserve
| mindhunter786@gmail.com | Bank of India (RBI) to direct banking
companies to resolve specific stressed assets by initiating insolvency resolution process under the
Insolvency and Bankruptcy Code, 2016. The RBI can specify authorities or committees to advise banks on
resolution of stressed assets. The members on the committees will be appointed or approved by the RBI.
The Act also make these provisions applicable to the SBI and its subsidiaries and also Regional Rural Banks
(RRBs).
Background
The banking sector in India is saddled with non-performing assets (NPAs) of over Rs.8 lakh crore, of which,
Rs. 6 lakh crore are with public sector banks (PSBs). The Union Government in May 2017 had promulgated
an ordinance authorising the RBI to issue directions to banks to initiate insolvency resolution process
under the Insolvency and Bankruptcy Code, 2016. The RBI had identified 12 accounts each having more
than Rs. 5000 crore of outstanding loans and accounting for 25% of total NPAs of banks for immediate
referral for resolution under the bankruptcy law. The bulk of the NPAs are in various sectors including
power, steel, road infrastructure and textiles.
NPCI approves Spice Digitals operation under Bharat Bill Payment System
Aug 26 2017
The National Payments Corporation of India (NPCI) has given a nod to Spice Digital Ltd. for processing bill
payments under the Bharat Bill Payment System (BBPS) as a Bharat Bill Payment Operating Unit (BBPOU).
Spice Money Ltd, a fintech company had received an in-principle approval to set-up as a BBPOU under the
Payment and Settlement Systems Act, 2007 in May 2016. In August 2016, NPCI had launched a pilot
project for BBPS with eight BBPS operating unit, Spice Digital was one of them
Need
Bill payments is a major component of the retail payment transactions in India. It is characterized by the
presence of large number of billers and aggregators who provide a variety of payment options to
customers. According to the Digital Payments 2020 report by Google and Boston Consulting Group,
cashless payments contribution in the consumer payments segment will double to 40%.
Bharat Bill Payment System (BBPS)
BBPS is an integrated bill payment system offering interoperable and accessible bill payment service to
customers through a network of agents, enabling multiple payment modes and providing instant
confirmation of payment. The BBPS initiative aims to provide a major push to digital payments as it is a
big step forward in formalizing the bill payment system in the country.
Under the BBPS framework, a customer will be able to pay several bills such as electricity, telephone,
water, gas, and DTH television at a single location—physical or electronic—and receive instant
confirmation once the payment is made.


Companies Act, 2013.
IIP output contracts 0.1% in June 2017
Aug 12 2017
India’s factory output, measured by the Index of Industrial Production (IIP) has registered negative 0.1%
growth in June 2017. It was mainly due to a fall in output of the manufacturing and capital goods sectors.
According to data released by the Central Statistics Office (CSO) it is the first negative fall since June
2013. In June 2016, it had grown 8%.
Key Facts
Manufacturing sector: It contracted by 0.4% in June 2017.
Mining output: It rose by 0.4%.
Electricity generation: It increased by 2.1%.
Capital goods output: is a barometer of investment. It shrank by 6.8% in June 2017.
Consumer durables output: It contracted by 2.1%.
Consumer non-durables production: It rose by 4.9%.
About Index of Industrial Production (IIP)

The IIP is a composite indicator that measures the short-term changes in the volume of production of a
basket of industrial products during a given period with respect to chosen base period. It is compiled and
published monthly by the Central Statistical Organization (CSO), Ministry of Statistics and Programme
Implementation.
revised IIP (2011-12) reflects the changes in the industrial sector and also aligns it with the base year of
other macroeconomic indicators like the Wholesale Price Index (WPI) and Gross Domestic Product (GDP).
sectors are 77.63%, 14.37%, 7.9% respectively. The revised eight core Industries have a combined weightage
of 40.27% in the IIP. Decreasing order of weightage of core industries is Electricity> Steel> Refinery
Products> Crude> Coal> Cement> Natural Gas> Fertilizers.
MCX gets SEBI approval to launch India’s first gold options contract
Aug 12 2017
Commodity derivatives bourse Multi Commodity Exchange Ltd (MCX) has received markets regulator
Securities and Exchange Board of India’s (SEBI) approval to launch India’s first gold options contract.
The gold futures contract will have bi-monthly duration. The option will also have the existing gold kilo
futures contract as its underlier.
Key Facts
The launch of gold options is one of the major reforms SEBI has taken for the commodity derivatives
market. Earlier in June 2017, SEBI had allowed options trading in commodities to deepen the market but
permitted each exchange to launch options on futures of only one commodity initially.
SEBI is going to put strict eligibility criteria and options could be launched on futures contract of only
those commodities that are among the top five in terms of total trading turnover value of previous 12
months. It also has stipulated necessary guidelines with regard to the product design and risk
management framework to be adopted for trading in options on commodity futures.
About Multi Commodity Exchange Ltd (MCX)
The MCX is the country’s largest metals and energy commodity bourse. It is country’s first listed
commodity futures exchange that facilitates online trading, and clearing and settlement of commodity
futures transactions, thereby providing a platform for risk management.
It began functioning in November 2003 and operates within the regulatory framework of the Forward
Contracts Regulation Act, 1952 (FCRA, 1952). It offers futures trading in bullion, ferrous and non-ferrous
metals, energy, and a number of agricultural commodities (mentha oil, cardamom, potatoes, palm oil and
others). Globally, MCX ranks no. 1 in silver, ankitno. 2 in natural| gas, no. 3 in crude oil and gold in futures
trading.
Government to expand Logistics Data Bank project to South India
Aug 9 2017
The Union Ministry of Shipping is planning to expand Logistics Data Bank (LDB) project to the country’s
southern region. So far, it had covered only the western logistics corridor.
The LDB project was launched at the Jawaharlal Nehru Port (JNPT), Mumbai in July 2016, making it first
port in India to provide this service. Later its operations were expanded to the container terminals at
Adani Port Special Economic Zone (APSEZ), Mundra and Adani Hazira Port — both in Gujarat.
About Logistics Data Bank (LDB) project
The LDB project was unveiled in July 2016 to make India’s logistics sector more efficient through the use
of Information Technology. Under this project, every container in the port facility is attached to a Radio
Frequency Identification Tag (RFID) tag and then tracked through RFID readers.
It is being implemented through a Special Purpose Vehicle (SPV) called Delhi Mumbai Industrial Corridor
Development Corporation Logistics Data Services Ltd. (DLDSL). DLDSL is jointly (50:50) owned by the
Delhi Mumbai Industrial Corridor (DMIC) Trust and Japanese IT services major NEC Corporation.
The LDB project covers the entire movement of containers through rail or road till the Inland Container
Depot and Container Freight Station. Its service integrates information available with the agencies across
the supply chain to provide detailed, real-time information within a single window.
Significance of project
It has helped to cut the overall lead time of container movement as well as reduced transaction costs that
consignees and shippers incur. It also has aided importers and exporters in tracking their goods in transit.
It is billed as a major ‘ease of doing business’ initiative aimed at boosting India’s foreign trade and
ensuring greater transparency.
Union Government launches Bharat 22 ETF to sell stakes in 22 firms
Aug 5 2017
The Union Finance Ministry has launched second exchange-traded fund (ETF), named Bharat 22. It will
help to speed up Government’s disinvestment programme budgeted to raise a record Rs 72,500 crore in
the FY 2018.
Bharat 22 comprise of 22 stocks including those of central public sector enterprises (CPSEs), public sector
banks (PSBs) and its holdings under the Specified Undertaking of Unit Trust of India (SUUTI).
Exchange-traded funds (ETFs)
Exchange-traded funds (ETFs) are essentially index funds that are listed and traded on exchanges like
stocks. They are basically basket of stocks with assigned weights that reflects the composition of an index.

They are similar to mutual funds in a certain manner but are more liquid as they can be sold quickly on stock
exchanges like shares.The ETFs trading value is based on the net asset value of the underlying stocks that
it represents
Key Facts
Bharat 22 is a well-diversified ETF spanning six sectors — basic materials, energy, finance, industrials,
FMCG and utilities. The sector wise weightage in the Bharat 22 Index is basic materials (4.4%), energy
(17.5%), finance (20.3%), FMCG (15.2%), industrials (22.6%), and utilities (20%).
and Coal India.
Background
The first CPSE ETF was launched in March 2014. The first CPSE ETF consisted of stocks of 10 public sector
entities. It is currently managed by Reliance Capital Ltd. Government was able to raise Rs. 8,500 crore by
selling it in three tranches.
SEBI constitutes TK Viswanathan committee on fair market conduct
Aug 3 2017
Market regulator Securities and Exchange Board of India (SEBI) has set up a committee on ‘fair market
conduct’. It will be headed former law secretary T K Viswanathan.
The committee will suggest measures for improving surveillance of the markets and strengthen rules for
algorithm trades, among other norms.

Its members include representatives from law firms, mutual funds, retail and institutional brokers,
forensic auditing firms, foreign portfolio investors, stock exchanges, chambers of commerce, data
analytics companies and the markets regulator.
Need
The securities market environment is dynamic, so there is need for periodic review of regulations and
surveillance mechanisms in order to effectively discharge the objectives of SEBI.
Terms and Reference of Committee
The committee will suggest measures for improvement in PFTUP (Prohibition of Fraudulent and Unfair
Trade Practices) regulations, PIT (Prohibition of Insider Trading) norms and norms mainly related to
‘trading plans’ and handling of ‘unpublished price sensitive information’ during takeovers.
It will suggest short term and medium term measures for improved surveillance of the markets as well as
issues of high frequency trades, harnessing of technology and analytics in surveillance. It will suggest
evidentiary issues in anti-fraud enforcement. It will be also responsible for recommending steps to align
insider trading regulations with Companies Act provisions.
About Securities and Exchange Board of India (SEBI)
SEBI is the statutory regulator for the securities market in India established in 1988. It was given
statutory powers through the SEBI Act, 1992. ankit saini | Its mandate| is to protect the interests of investors in
mindhunter786@gmail.com
securities, promote the development of securities market and to regulate the securities market.
SEBI is responsive to needs of three groups, which constitute the market, issuers of securities, investors
and market intermediaries. It has three functions quasi-legislative (drafts regulations in its legislative
capacity), quasi-judicial (passes rulings and orders in its judicial capacity) and quasi-executive (conducts
investigation and enforcement action in its executive function).
RBI cuts repo rate by 25 bps to 6%
Aug 2 2017
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has reduced short-term lending
rate, or repo rate, by 25 basis points to 6%. It was RBI’s third bimonthly policy review for the financial year
2017-18.
The decision of the MPC was consistent with a neutral stance of monetary policy in consonance with the
objective of achieving the medium-term inflation target of 4% within a band of +/- 2%, while supporting
growth.
Policy Rates
Repo rate: It is the rate at which RBI lends to its clients generally against government securities. It was
reduced by 25 basis points to 6%. The rate cut comes after a slump in food prices in consumer inflation to
a record low of 1.54%.
Reverse Repo Rate: It is the rate at which banks lend funds to the RBI. It was reduced by 25 bps to 5.75%.
Marginal Standing Facility (MSF) Rate: It is rate at which the scheduled banks can borrow funds
overnight from RBI against government securities. It is a very short term borrowing scheme for
scheduled banks. It adjusted to 6.25%.
Bank Rate: It is rate charged by the central bank for lending funds to commercial banks. It was set to
rates by the banks.
Cash Reserve Ratio (CRR): It is the amount of funds that the banks have to keep with the RBI. It was
unchanged at 4%. The RBI uses the CRR to drain out excessive money from the system.
Statutory Liquidity Ratio (SLR): It was unchanged 20%. It is amount that banks have to maintain a
stipulated proportion of their net demand and time liabilities (NDTL) in the form of liquid assets like cash,
gold and unencumbered securities, treasury bills, dated securities etc.
About Monetary Policy Committee (MPC)
MPC is a committee of the central bank — Reserve Bank of India, headed by its Governor. It was set up by
amending the RBI Act to provide for a statutory and institutionalised framework for MPC.
The 6 member MPC is entrusted with the task of fixing the benchmark policy interest rate (repo rate) to
contain inflation within the target level. The majority voice of the committee will be final in deciding the
interest rates.
Composition of MPC includes Governor of RBI (ex officio Chairperson), Deputy Governor of RBI, in charge
of Monetary Policy (Member), one officer of RBI (Member) and three members appointed by Central
Government as members. Each member has one vote and governor has casting vote in case of tie.
NPCI gets RBI nod to operate Bharat Bill Payment System
Jul 29 2017
The National Payments Corporation of India (NPCI) has received final nod from the Reserve Bank of India
(RBI) to function as the Bharat Bill Payment Central Unit (BBPCU) and operate the Bharat Bill Payment
System (BBPS).
The final clearance from RBI comes almost a year after NPCI launched the BBPS pilot project to make
payment of utility bills easier. The pilot started in August 2016 with eight BBPS operating units that had
received in-principle approval from RBI.
The total number of Bharat Bill Payment Operating Units certified by NPCI now stands at 24. The certified
units include 10 private sector banks, 3 public sector banks (Bank of Baroda, Union Bank of India and
Indian Overseas Bank), five cooperative banks and six non-bank biller aggregators.
About Bharat Bill Payment System (BBPS)
BBPS is an integrated bill payment system ankit saini | mindhunter786@gmail.com |
offering interoperable and accessible bill payment service to
customers through a network of agents, enabling multiple payment modes and providing instant
confirmation of payment. The BBPS initiative aims to provide a major push to digital payments as it is a
big step forward in formalizing the bill payment system in the country.
Under the BBPS framework, a customer will be able to pay several bills such as electricity, telephone,
water, gas, and DTH television at a single location—physical or electronic—and receive instant
confirmation once the payment is made. Nearly 45 crore bills are permitted under BBPS.
Payments through BBPS can be made using cash, transfer cheques and electronic modes. Bill aggregators
and banks, who will function as operating units, will carry out these transactions for the customers. At
present the bulk of transactions on BBPS are of electricity bills. It contributes to about 180 million bills per
month out of which only 10% is digital.
IMF retains India 2017 GDP growth forecast at 7.2%
Jul 26 2017
The International Monetary Fund (IMF) in its July World Economic Outlook (WEO) Update has retained
India’s projected GDP growth rate at 7.2% for 2017-18, slightly up from 7.1% in the previous year.
However, update projects that India’s growth would accelerate to 7.7% in 2018-19. India’s economic growth
slowed down to 7.1% in 2016-17, sharply lower than 8% in 2015-16 due to the effect of demonetisation.
Key Highlights of WEO Updates
Global Scenario: The global economic growth rate will be 3.5% in 2017 and 3.6% in 2018. The economic
activity in both advanced and emerging and developing economies is accelerating. Moreover, inflation in
advanced economies remains subdued and generally below target and also declining in several emerging
economies.
United States growth projections are lower than in April WEO update, primarily reflecting that its fiscal
policy will be less expansionary going forward than previously anticipated. The growth also has been
revised up for Japan and especially the Euro area, indicating solid momentum in activity in late 2016 and
early 2017. Growth in the ASEAN-5 economies is projected to remain robust at around 5 % with increase in
global trade and strengthening domestic demand.
Indian Economy: It will be fastest growing major economy in the world and in Asia. According to
government estimate, Indian economy is expected to grow 7.5% in the current financial year as abundant
monsoon as rains are expected to boost rural income and overall growth.
China’s economy: It is projected to grow by 6.7% in 2017, up 0.1% points from the April 2017 forecast, and
6.4% in 2018, up by 0.2% points from earlier forecasts by the IMF. Despite China’s rise in growth
projections, India’s economy will still be the fastest growing among large economies.

About World Economic Outlook (WEO)

The WEO is a survey conducted and published by the IMF. It is published biannually and partly updated
two times a year. It portrays the world economy in the near and medium context, with growth projections
for up to four years into the future. WEO forecasts include key macroeconomic indicators, such as GDP,
inflation, fiscal balance and current account of more than 180 countries around the globe. It also deals
with major economic policy issues.
SEBI inks pact with ESMA for information exchange on CCPs
Jul 21 2017
Markets regulator Securities and Exchange Board of India (SEBI) has entered into a Memorandum of
Understanding (MoU) with the European Securities and Markets Authority (ESMA).
The MoU was signed for exchange of information concerning Central Counterparties (CCPs) under the
European Markets Infrastructure Regulation (EMIR). CCPs are entities that help facilitate clearing and
settlement activities.
Key Facts
The MoU establishes cooperation arrangements, including exchange of information regarding CCPs
which are established and authorised or recognised in India by SEBI and which have applied for EU
recognition under EMIR.
EMIR provides for signing of a cooperation arrangement between
ankit saini | mindhunter786@gmail.com | ESMA and relevant non-EU authorities,
whose legal and supervisory framework for CCPs have been deemed equivalent to EMIR by the European
Commission. Signing of MoU is one of the conditions for recognition of third country CCPs by ESMA
under EMIR.
About Central Counterparty (CCP)
CCP is a corporate entity that exists in various European countries to help facilitate trading done in
European derivatives and equities markets. It reduces counterparty, operational, settlement, market, legal
and default risk for traders. It provides efficiency and stability to the financial markets in which they
operate. CCP bear most of the credit risk of buyers and sellers when clearing and settling market
transactions.
SBI launches ‘SBI Realty’ portal for home buyers
Jul 18 2017
India’s largest commercial bank State Bank of India (SBI) launched SBI Realty, a dedicated portal that will
help home buyers to choose flats from its 3,000 approved projects across the country.
SBI Realty will be a one stop integrated website for home buyers. It will help customers to choose their
dream home from 3,000 SBI approved projects, which are spread across 13 states/UTs covering 30 cities.
Key Facts
The SBI Realty portal has been developed by SBICAP Securities in association with PropEquity in terms of
data support, project information, etc. At present, the website has 9.5 lakh home units available on it.
Using the portal, customers can compare current and past trends of prices for properties in various
localities in the city. It will also assist customers in calculating appropriate loan amount a customer
should borrow based on income and credit profile.
About State Bank of India (SBI)
SBI is the largest commercial bank in India in terms of assets, deposits, branches, profits, customers and
employees. It has a deposit base of Rs 25.85 lakh crore. It has an extensive network, with over 24 thousand
branches in India and 194 overseas offices in 35 other countries.
Reliance Industries market capitalisation hits Rs 5 lakh crore mark
Jul 18 2017
Mukesh Ambani-led Reliance Industries Limited (RIL) for the first time in its trading history has crossed
Rs 5 lakh crore in market capitalisation. The market cap of RIL stood at Rs 5,04,458.09 on BSE (Bombay
Stock Exchange.
RIL is second firm to cross Rs 5 lakh crore in market capitalisation. It is also RIL’s highest market cap in its
lifetime and also currently it is the most valued company on the bourses.
Tata Consultancy Service (TCS) was first company to hit Rs 5 lakh crore in market capitalisation milestone

in July 2014. Later in November 2014, its market capitalisation had surged to 5.43 lakh crore. Now, it is the
second most valuable company in terms of market-capitalisation.
About Reliance Industries Limited (RIL)
RIL is an Indian conglomerate engaged in energy, petrochemicals, textiles, natural resources, retail, and
telecommunications. It is the third most profitable company in India. It is the second largest company in
India in terms of revenue after the government-controlled Indian Oil Corporation (IOC). It was ranked
215th on the Fortune Global 500 list of the world’s biggest corporations as of 2016. It was also ranked 8th
among the Top 250 Global Energy Companies by Platts as of 2016.
IBBI notifies rules for bankruptcy probe
Jul 17 2017
The Insolvency and Bankruptcy Board of India (IBBI) has notified regulations for inspection and
investigation of service providers registered with it.
Under the Insolvency and Bankruptcy Code (IBC) implemented by IBBI, service providers are insolvency
professional agencies, entities, professionals and information utilities.
New regulations
The investigation authority has to serve a notice intimating the entity concerned about the probe at least
10 days in advance. However, this requirement can be done away with on grounds such as apprehensions
that the records of the particular service provider might have been
ankit saini | mindhunter786@gmail.com | destroyed before the probe starts.
About Insolvency and Bankruptcy Board of India (IBBI)
IBBI is the regulator for overseeing insolvency proceedings of service providers like Insolvency
Professional Agencies (IPA), Insolvency Professionals (IP) and Information Utilities (IU) in India. It was
given statutory powers through the Insolvency and Bankruptcy Code. It functions under Ministry of
Commerce.
The Code provides for a market-determined and time-bound resolution of insolvency proceedings. It
became operational in December 2016. It covers Individuals, Companies, Limited Liability Partnerships
and Partnership firms. It attempts to simplify the process of insolvency and bankruptcy proceedings and
speed up the resolution process for stressed assets in the country.
India, European Union establish Investment Facilitation Mechanism
Jul 15 2017
India and European Union (EU) have established Investment Facilitation Mechanism (IFM) for EU
Investments in India. The mechanism will allow for a close coordination between EU and India with an
aim to promote and facilitate EU investment in India.
Background
Trade and Investment are key elements of the EU-India Strategic Partnership launched in 2004. The EU is
the India’s first trade partner in goods and services and also largest foreign investor with a stock
exceeding US$ 81.52 billion as of March 2017. There are more than 6,000 EU companies currently present
in India, providing direct and indirect employment to over 6 million people. The IFM builds on the Joint
Statement of the 13th EU-India Summit held in Brussels in March 2016, where the EU had welcomed
India’s readiness to establish such a mechanism.
Key Facts
The key objective of IFM is to pave the way for identifying and solving problems faced by EU companies
and investors with regard to their operations in India. It will cover both new investors as well as those
already present in India. It will also serve as a common platform for discussing general suggestions from
the point of view of EU investors and companies with regard to ease of doing business in India.
Invest India, the official Investment Promotion and Facilitation Agency of India, will also be part of the
mechanism. It will create a single-window entry point for EU companies that need assistance for their
investments at the central/state level. The Department of Industrial Policy & Promotion (DIPP), Union
Ministry of Commerce & Industry will also facilitate participation of other relevant ministries and
authorities on a case-to-case basis.
Under it, the EU Delegation to India and DIPP will hold regular high level meetings to assess and facilitate
“ease of doing business” for EU investors in India. It will also include identifying and putting in place

solutions to procedural impediments faced by EU companies and investors in establishing or running

their operations in India.
Significance
The establishment of the IFM is considered as a right step in the direction of strengthening the trade and
investment ties between the EU and India. This initiative will help ensuring a more robust, effective and
predictable business environment for the EU investors.
India to import crude oil from US for first time
Jul 10 2017
India, the world’s third-largest oil importer, for the first time will import crude oil from the United States.
The purchase comes after Prime Minister Narendra Modi’s visit to the US in June 2017 when President
Donald Trump had assured that US looks forward to export more energy products to India.
Key Facts
Indian Oil Corp (IOC) has bought 1.6 million barrels of US Mars crude (a heavy, high-sulphur grade) and
400,000 barrels of Western Canadian Select that will be delivered onboard a Very Large Crude Carrier.
The import will take place after IOC gets the carrier in October 2017 from PetroChina. The oil will be
loaded off the US Gulf Coast,
The import of crude from US could become an alternative source for the Indian companies for the supply
of heavy, high-sulphur grades as feedstocks,ankit
which typically sell
saini | mindhunter786@gmail.com | at a lower cost relative to other oil types.
Besides IOC, Bharat Petroleum Corp Ltd (BPCL) is second Indian refiner which also has planned to buy its
first ever US crude oil cargo and has issued a purchase tender.
India will be the latest Asian country to buy US crude after Japan, South Korea, Thailand, Australia, China
and Taiwan as they seek to diversify oil imports from other regions after the OPEC production cuts raised
prices of Middle East heavy-sour crude ( grades with a high sulphur content).
India’s forex reserves at record-high of $386.53 billion
Jul 10 2017
According to RBI, India’s foreign exchange (Forex) reserves have increased by $4.007 billion to touch a
record high of $386.539 billion in the week that ended 30th June 2017.
The components of India’s Foreign Exchange Reserves include Foreign currency assets (FCAs), Special
Drawing Rights (SDRs), Gold and RBI’s Reserve position with International Monetary Fund (IMF).
Key Facts
The increase forex in the reporting week was due to increase FCAs. It rose by $3.724 billion to $362.388
billion. Gold reserves also increased by $252.8 million to $20.348 billion. India’s special drawing rights
(SDRs) with the International Monetary Fund (IMF) also rose by $11.8 million to $1.479 billion. The RBI’s
reserve position with IMF also increased by $18.9 million to $2.322 billion.
FCAs forms major part of the overall reserves. It consists of US dollar and other major non-US global
currencies. It also comprises of investments in US Treasury bonds, bonds of other selected governments,
deposits with foreign central and commercial banks. FCAs also include with them the effects of
appreciation or depreciation of non-US currencies like the euro, pound, and yen and is expressed in terms
of dollars.
RBI limits Customer liability in Online Banking
Jul 7 2017
RBI has issued directions on ‘Customer Protection – Limiting Liability of Customers
in unauthorised Electronic Banking Transactions’. RBI has issued the revised directions amidst a recent
increase in customer grievances related to unauthorised transactions.
Salient Highlights
The following are the salient highlights of the revised directions:
If the customers report to the banks regarding the loss they suffer through online banking transactions
within three days, then the amount involved will be credited to their accounts within a time period of 10
days. Any loss suffered by the customer after reporting of the unauthorised transaction will be borne by
the concerned bank. In sum, there will be “zero liability of a customer” in the case of third party
breach where the deficiency lies neither with the bank nor with the customer but elsewhere in the system.
The customer is required to report to the bank within three working days after receiving the
communication from the bank regarding the unauthorised transaction.
In cases of customer reporting the third party fraud with a delay of four to seven working days, then the
liability of customer in such cases would be up to Rs 25,000.
Customers will also be entitled to zero liability in cases when authorised transaction occurs due
to contributory fraud/negligence/deficiency on the part of the bank irrespective of whether or not
the unauthorised transaction has been reported by the customer.
In cases of negligence caused by the customer by sharing of payment credentials, the customer is liable to
bear the entire loss until the unauthorised transaction is reported to the bank.
If the customer reports about the unauthorised transaction after seven days, then the liability of the
customer would be determined as per the bank’s Board approved policy.
The bank has to credit the amount involved in the unauthorised electronic transaction to the customer’s
account within 10 working days of reporting of fraud. The bank has to do this without waiting
for settlement of insurance claim if any.
The banks should ask its customers to mandatorily register for SMS alerts and e-mail for email alerts for
electronic banking transactions.
BMI Research: India to have a GDP Growth of 6.9% in this Fiscal
Jul 6 2017
According to BMI Research, a Fitch group company, India is expected to register a growth of 6.9% in this
financial year.
BMI Research was founded in 1984 by Business Monitor International and later in 2014, it was acquired by
Fitch Group. The firm performs industry and financial market analysis in 24 industries and 200 global
markets.
Salient Facts
The report has observed that the Real GDP growth has slowed to 6.1 % year-on-year in the fourth quarter
of 2016-17. The growth rate is expected to pick up following the demonetisation drive in November 2016
but the weak public banks are expected to cap the economic recovery. The Public-Sector Banks are still
plagued with mounting non-performing assets, which is expected to take a toll on India’s growth
potential. Though the RBI has taken efforts to clean up the NPAs, the study observes that it will take some
more time for credit allocation to the productive sectors of the economy.
The report, however, expects the economy to continue to recover in the coming quarters as the negative
ramifications of the demonetisation measure have already started wearing off. India is also expected to get
benefits from positive demographic trends, greater external stability arising out of improved terms of
trade from low oil prices, and continued reforms improving the business environment of the country.
Asia
The report expects a slowdown in economic growth in North Asia in 2017 and 2018. The slowdown will
be driven by the structural slowdown in China, poor policy initiatives in Japan, and policy uncertainty in
South Korea.
In Asia, India and ASEAN are likely to remain as the bright spots in the region owing to their positive
demographics and improvements in the business environments.
India to be base to economic pole of global growth: Harvard University
Jul 6 2017
According to the research conducted by the Centre for International Development at Harvard University
(CID), India will be the base to the economic pole of global growth over the coming decade. The study has
stated that over the years, the economic pole of global growth has moved from China
to neighbouring India and it is likely to remain over India in the coming decade.
Salient Highlights
India
The study has attributed India’s rapid growth prospects to the diversification of the country’s export base
which now includes more complex sectors such as chemicals, vehicles and certain electronics. The study

further states that India is also particularly well-positioned to continue diversifying into new areas
World
The research study has warned of a continued slowdown in global growth over the coming decade. With
7.7% annual growth, India and Uganda top the list of the fastest growing economies.
The growth projections indicate that the growth in emerging markets to continue to outpace that of
advanced economies, though not uniformly. The study is also optimistic about new growth hubs in East
Africa and new segments of South-East Asia, led by Indonesia and Vietnam.
The major oil economies of the world are experiencing the pitfalls of their reliance on one resource. On the
other hand, India, Indonesia, and Vietnam have accumulated new capabilities that permit more diverse
and complex production will have faster growth in the coming years.
China
The study has found a decline in China’s exports. Its economic complexity ranking has also declined four
spots for the first time since the global financial crisis. However, the growth projections for China is still
above the world average. China is expected to grow at 4.4% annually in the coming decade.
CID
CID is Harvard University’s leading research hub that works to advance the understanding of
development challenges and offer viable solutions to problems of global poverty.
The growth projections arrived by CID at the study are based on each country’s economic complexity,
which tells about the diversity and sophistication of the productive capabilities embedded in a
country’s exports and the ease with which that country could further diversify its exports by expanding
those capabilities.
India placed 88th in money hoarded in Swiss banks
Jul 4 2017
As per analysis of the latest figures compiled by the Zurich based SNB (Swiss National Bank) as on 2016-
end, India has slipped to the 88th place in terms of money parked by its citizens with Swiss banks.
The analysis shows that the money officially held by Indians with banks in Switzerland now accounts for a
meagre 0.04% of the total funds kept by all foreign clients in the Swiss banking system.
The latest data from the SNB comes ahead of a new framework for automatic exchange of information
singned between Switzerland and India to help check the black money menace. The funds mentioned are
the official figures and do not indicate the quantum of black money.
Key Facts
The total money held in Swiss banks by foreign clients from across the world, incidentally rose by a small
margin to 1.42 trillion Swiss francs (CHF) during 2016 from 1.41 trillion CHF in 2015.
In terms of individual countries, United Kingdom accounted for the largest chunk at about CHF 359 (over
25%) of the total foreign money with Swiss banks. The US came second with nearly CHF 177 billion (about
14%). Besides, UK and US, no other country accounted for a double-digit percentage share. The top-ten
countries included West Indies, France, Bahamas, Germany, Guernsey, Jersey, Hong Kong and
Luxembourg.
India was ranked in top-50 continuously in terms of holdings in Swiss banks between 1996 and 2007, but
it started declining after that and was placed at 55th in 2008, 59th in 2009 and 2010 each, 55th again in
2011, 71st in 2012, 58th in 2013, 61st in 2014 and 75th in 2015. It was ranked highest at 37th place in 2004.
Among the five BRICS nations, India was also the lowest ranked. Russia was ranked 19th (CHF 15.6 billion),
China 25th (9.6 billion), Brazil 52nd (2.7 billion) and South Africa 61st (2.2 billion). Among them only China
has moved up.
Among India’s neighbouring countries, Pakistan was ranked 71st place (with about CHF 1.4 billion),
Bangladesh was 89th (667.5 million), Nepal was 150th (312 million), Sri Lanka was 151st (307 million) and
Bhutan was 282nd (half a million Swiss francs).
The total money belonging to the developed countries fell to CHF 824 billion, while those from developing
nations actually rose marginally to CHF 208 million. The money from developing economies in Asia-
Pacific region rose to CHF 50 billion.

The funds parked in Swiss banks from offshore financial centres rose to CHF 389 billion. The offshore
financial centres that ranked higher including Cayman Islands, Panama, Marshall Islands, Cyprus,
Bermuda, Seychelles, Isle of Man and Gibraltar.
NMCE, ICEX to merge to create India’s third biggest commodity exchange
Jul 3 2017
National Multi Commodity Exchange (NMCE), India’s first demutualised online national multi-
commodities exchange will merge with Indian Commodity Exchange (ICEX).
The merged entity will create India’s third biggest commodity exchange. The largest commodity
exchange by volume is the Multi Commodity Exchange (MCX) followed by National Commodity and
Derivatives Exchange (NCDEX).
Key Facts
This is the first merger deal in the commodity exchange space in India. It has been approved by the boards
of both exchanges and is expected to be completed by December 2017, subject to regulatory approvals. In
the merged entity, the ICEX will hold a 62.8% stake, while NMCE shareholders will own the rest.
The new exchange will offer a wide range of contracts, including bullion, oil, rubber, and other agri-
commodities. It will also offer the world’s first diamond futures contract, which has already received in-
principle approval from the marker regulator SEBI.
The merger will help ICEX to further strengthen its position in the country’s fast-growing commodity
derivatives market. It will result in greater financial strength, the consolidation of clients and members,
an enhanced product basket, and higher operational synergies.
Commodity trading in India
Commodity trading is an exchange where various commodities and derivatives products are traded. Most
commodity markets trade in agricultural products and other raw materials and contracts based on them.
These contracts can include spot prices, futures, forwards and options on futures. Other sophisticated
products may include interest rates, environmental instruments, swaps, or ocean freight contracts.
Commodity trading in India has a long history. In fact, commodity trading had started in India much
before it started in many other countries. However, years of foreign rule and Government policies had
caused the commodity trading in India to diminish. It was restarted recently.
At present, India has six national commodity exchanges namely, Multi Commodity Exchange (MCX),
National Commodity and Derivatives Exchange (NCDEX), National Multi-Commodity Exchange (NMCE)
and Indian Commodity Exchange (ICEX), ACE Derivatives exchange (ACE) and Universal commodity
exchange (UCX) apart from numerous regional exchanges.
Government had established regulatory body is Forward Markets Commission (FMC) in 1953. It was
merged with the Securities and Exchange Board of India (SEBI) in September 2015.
Reliance Jio launches world’s longest 100Gbps submarine cable system
Jul 3 2017
Mukesh Ambani led Reliance Jio Infocomm has launched the Asia-Africa-Europe (AAE-1) submarine cable
system. It is claimed to be world’s longest 100Gbps technology-based submarine system.
It stretches for over 25,000km from Marseille, France to Hong Kong. It will have 21 cable landings across
Asia and Europe. Using it, Jio will continue to offer its customers the most exceptional high speed internet
and digital service experience.
Key Facts
The AAE-1 project is a combination of leading telecom service providers from Europe, the Middle East and
Asia. It will seamlessly link with other cable systems and fibre networks to deliver direct access to all
global markets.
It will feature diversified Points of Presence (PoP) in Asia (Hong Kong and Singapore), with three onward
connectivity options in Europe (France, Italy and Greece). The cable system will pass through critical hubs,
serving the demand for video centric data bandwidth that supports all types of communications,
applications and content within India and beyond.
The advanced design and route of AAE-1 system will offer one of the lowest latency routes between Hong

Kong, India, Middle East and Europe. Using it, Reliance Jio will provide the Network Operations &
Management for AAE-1 Cable System. Its Network Operations Center (NOC) will use a state of the art
facility in Navi Mumbai.
Eight core sectors growth slips to 3.6% in May 2017
Jul 1 2017
The growth of eight core sectors slowed to 3.6% in May 2017 due to fall in output of coal and fertilisers. It
was 5.2% in May 2016. In April 2017, these eight sectors had recorded a growth rate of 2.8%.
Core industry can be defined as the main industry. In most countries, there is a particular industry that
seems to be the backbone of all other industries and it qualifies to be the core industry.
In India, there are eight core sectors comprising of coal, crude oil, natural gas, refinery products,
fertilisers, steel, cement and electricity. The electricity has the maximum weight of 10.32% followed by
Steel (6.68%), Petroleum Refinery (5.94%), Crude Oil production (5.22 %), Coal production (4.38 %), Cement
(2.41%), Natural Gas production (1.71 %) and Fertilizer production (1.25%).
These eight Core Industries comprise nearly 38% of the weight of items included in the Index of Industrial
Production (IIP), which measures factory output.
Key Facts
In May 2017, Coal and fertiliser productions recorded negative growth of 3.3% and 6.5%, respectively.
Steel sector growth dipped to 3.7% as against 13.4% in May 2016.
Slow growth in these key sectors may also have implications on the Index of Industrial Production
(IIP) number as these segments account for about 41% to the total factory output.
However, growth in refinery products and electricity output grew by 5.4% and 6.4% in May 2017 as
against 3.3% and 6.2%, respectively in the same period last year.
Natural gas production too grew by 4.5% in May 2017 as against a negative growth rate of 6.5% a
year earlier.
Government issues Notification for roll out of GST
Jun 29 2017
The government has notified the roll out of Goods and Services Tax (GST) from July 1st.
Salient Facts
To launch GST in the midnight of June 30th, the government has organised a special programme to be
held in Central Hall of Parliament. The event will see the participation of President Pranab Mukherjee,
Prime Minister Narendra Modi, Finance Minister Arun Jaitley and other Ministers and bureaucrats.
As per the last year’s Constitutional amendment approved by Parliament, the government has been given
time only till 15th of September, 2017. Within that time period, the government has to replace the existing
indirect tax structure by the GST, failing which may trigger a constitutional crisis as no tax can be levied
on goods and services. So, the government has ruled out the possibility of deferring the roll out of GST by
any further time period.
GST which will subsume a host of indirect levies like excise, service tax and VAT will be one of the nation’s
biggest economic reform.
GST-Background
Goods and Services Tax is a comprehensive indirect tax which is to be levied on the manufacture, sale and
consumption of goods and services in India. This is so far the biggest tax reform in the country. GST
eliminates the cascading effect of taxes because it is taxed at every point of business and the input credit
is available in the value chain.
France was the first country to introduce GST system in 1954. More than 140 countries have implemented
the GST. The Genesis of GST occurred during the previous NDA Government under Atal Bihari Vajpayee
Government when it set up the Asim Dasgupta committee to design a model for GST. The UPA
Government took the matter further and announced in 2006 that this tax would be introduced from April
1, 2010. However, so far it was not introduced. All the GST bills including Constitution (101st Amendment)
Act have been passed now and GST is set to come into force from July 1, 2017.
GST would replace almost all vital indirect taxes and cesses on Goods & services in the country. Among

the taxes levied by centre, GST will subsume the following: Central Excise Duty & Service Tax, Duties of
Excise (Medicinal and Toilet Preparations), Additional Duties of Excise (Goods of Special Importance),
Additional Duties of Excise (Textiles and Textile Products), Additional Duties of Customs (commonly
known as CVD), Special Additional Duty of Customs (SAD), and finally the Central Surcharges and Cesses.
Among the state taxes that would be replaced by GST include State VAT, Central Sales Tax c. Luxury Tax,
Entry Tax (all forms), Entertainment and Amusement Tax (except when levied by the local bodies), Taxes
on advertisements, Purchase Tax, Taxes on lotteries, betting and gambling, and finally the state
Surcharges and Cesses.
India’s Largest Municipal Bond Programme Launched
Jun 22 2017
Union Urban Development Minister Venkaiah Naidu has launched India’s largest municipal bond
programme.
Salient Highlights
The Pune Municipal Corporation (PMC) became the first municipal corporation in the country to tap
money through municipal bonds in 14 years. The AA+ rated PMC’s municipal bonds raised Rs 200 crore at
7.59 per cent rate at the Bombay Stock Exchange (BSE).
This is the first-ever mobilisation of debt capital by a municipal corporation on the BSE BOND platform.
This will also be the first issuance sinceankit saini | mindhunter786@gmail.com |
the publication of ‘Issue and Listing of Debt Securities by
Municipalities Regulations, 2015’ by Securities and Exchange Board of India (SEBI).
The 10-year bonds will be used by the Pune Municipal Corporation (PMC) for a Rs 2,300-crore water
project. The scheme is aimed at providing water 24×7 for all residents of Pune.
Pune Municipal Corporation (PMC) was assisted by the US Department of Treasury to create a debt policy.
PMC has also planned to prepare a case study based on its experience and share it with other urban bodies
to help them raise money from the bond markets.
Since the bonds do not have any guarantee from the state government, an escrow account has been
created to deposit the funds for the comfort of investors.
Municipality Bonds
Municipality bonds can be issued by the city corporations to fund developmental projects. Institutional
investors, as well as the public, can buy these bonds. The corporations can use the revenues earned from
the developmental projects like Metro rail network to repay the interest and principal on these bonds.
These municipal bonds have now been permitted for public offering by SEBI.
Municipal bonds have been in existence in India from the year 1997. Cities such as Ahmedabad, Bengaluru,
Nashik and Madurai have already issued them. These bonds will help the city corporations to directly raise
funds without the help of grants from the state governments or agencies such as World Bank.
Reliance Defence inks Pact with Serbia’s Yugoimport to Manufacture Ammunition in India
Jun 20 2017
Anil Ambani’s Reliance Defence Ammunition which is a subsidiary of Reliance Infrastructure has entered
into a strategic partnership with Serbia’s state-run Yugoimport to manufacture ammunition in India. The
joint venture is expected to target business opportunities worth Rs 20,000 crore from Indian armed
forces in the next 10 years.
Salient Highlights
The two companies will work jointly in the field of ammunition amongst others. Both the companies
would undertake joint development of next generation ammunition to cater to the needs of the future
requirements of the Indian armed forces.
The proposal also involves the transfer of technology by the original equipment manufacturers (OEMs)
and indigenous manufacturing in India.
Reliance Defence Ammunition will set up a greenfield facility for the production of ammunition.
India at present imports around 50% of its ammunition with an annual spending of more than Rs 10,000
crore.
Yugoimport is Serbia’s state-owned defence major and is a market leader in the field of ammunition

production. Prime Minister Narendra Modi’s Make-in-India initiative requires building a domestic
industrial base in India. This is aimed at cutting outright imports. Accordingly, Yugoimport has offered a
fully compliant technical solution to meet the Make in India requirements of the Indian government.

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Manufacturing PMI rises to 52.2 in September 2018

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Centralised Information and Management System (CIMS)

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economic transformation from low-middle income to high-middle income country.

What is World Bank’s Country Partnership Framework (CPF)?

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timely interest payments and likelihood of default.

IPPB ties up with Bajaj Allianz to offer life insurance products

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specialise in commodity derivatives.

Key Features of merged entity

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ankit saini | mindhunter786@gmail.com |

Eight core industries output record 6.6% growth in July 2018

Eight Core Industries

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NPCI launches UPI 2.0 with overdraft facility

settle cash dispensation requests raised at ATMs.

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Axis Bank first to introduce iris authentication for Aadhaar-based transactions

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Appointments Committee of Cabinet (ACC) has approved appointment of Chartered Accountant

(d) of the RBI Act.

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FDI Confidence Index

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with members’ capital subscriptions.

Government to infuse Rs 11,336 crore capital in 5 public sector banks by September-end

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World Economic Outlook (WEO)

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ankit saini | mindhunter786@gmail.com |

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