Govt on fiscal deficit, RBI’s curbs on PMC Bank and other news this week

Prime Minister Narendra Modi pitched India as 'the' investment destination for global investors, saying he would personally act as a bridge for businesses.

Business Standard
28th September

  • The Reserve Bank of India placed curbs on the activities of Mumbai-based Punjab and Maharashtra Cooperative Bank (PMC Bank) for six months following the revelation of alleged irregularities in loan accounts.
  • Infosys is the world’s third best-regarded company, according to Forbes magazine’s list of 2000 companies. The IT giant is ahead of marquee names such as Netflix, Paypal and Toyota.
  • British travel firm Thomas Cook collapsed into bankruptcy, leaving some 600,000 holidaymakers stranded and sparking the UK's biggest repatriation since World War II.
  • The panel for drafting a new legislation on direct taxation has suggested an overhaul of personal income tax (I-T) slabs, to increase disposable income and give a fillip to consumer demand.
  • The government will not revise its fiscal deficit target immediately and is not planning any spending cuts at this stage, said Finance Minister Nirmala Sitharaman, after slashing corporate tax rates to boost a flagging economy.

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A few links for further reading

Hard path to growth

The signals for the economy are not positive: overall demand is yet to pick up; the share of total exports in India’s GDP is declining, and industrial output pattern remains worrying.

Small savings scheme

Investors breathed a sigh of relief when the government announced that interest rates on these instruments would not be revised for the fourth quarter of the calendar year.

Invest and emigrate

The great Indian dream of settling abroad is achievable if one has a few crores to invest. Rich nations offer a variety of investment options in a quid pro quo arrangement: immigrants get a better quality of life and revenue from them helps these countries’ finances. Wealthy Indians, troubled by polluted cities and the red tape holding up entrepreneurship, may want a quick ticket out of the country. Sanjay Kumar Singh lists a range of options: from a Canadian province’s investor programme to America’s US EB-5 plan.

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