Economy

Economy

High Tax Rates Inducing Tax Evasion, Avoidance: Need to Lower GST, Direct Tax to Improve Compliance

Reading Time: 4 minutesWhen it comes to payment of taxes, direct or indirect, the picture produces an anti-climax. Tax payments to the government by Indians do not commensurate with either their income or expenditure patterns. During this year’s budget presentation, the finance minister said only 76 lakh Indians showed annual income of over Rs.5 lakh. The one-year-old GST, […]

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MSP Hike May Prove to be Meaningless

Reading Time: 4 minutesAmid farmers’ unrest in many parts of the country, the demand for an increase in MSP has been voiced regularly. The manner in which the MSP is used makes it clear that it is no more an instrument to improve the financial condition of farmers, but to boost the image of the ruling party. A […]

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A rise in Domestic Demand will Keep India Busy with Food Security

Reading Time: 5 minutesIt has been reported in the Agricultural Outlook 2018-2027, prepared jointly by the Organisation for Economic Cooperation and Development (OECD) and Food and Agriculture Organisation (FAO) of the United Nations. It says that much of the additional food demand will originate from India, Sub-Saharan Africa, North Africa, and the Middle East due to high population […]

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India Has Little to Gain by Dancing With the Dragon

Reading Time: 4 minutesAs the adage goes, enemy’s enemy is a friend, India and China have warmed up to espousing the common cause of hitting the rich world where it hurts their strong domestic interests. As the trade majors in the WTO such as the United States and the European Union have questioned India’s Minimum Support Price (MSP) […]

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Market Betting with Pension Funds Could be Risky

Reading Time: 4 minutesThe Employees’ Provident Fund Organisation (EPFO) investment in equities via exchange-traded funds (ETFs) generated 17.23 percent return as of February this year. It had invested Rs 41,967.51 crore in ETFs. EPFO had sold ETFs worth Rs 2,500 crore in March. Unfortunately, stock prices have dipped since then. A report, for Different Truths. It is good to know that the […]

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BIS Bats for Fiscal Consolidation

Reading Time: 5 minutesThe BIS contends sans frills that the vulnerabilities are ‘worrisome’, given the more limited room for policy manoeuvre relative to pre-crisis of the Great Financial Crisis (GFC) that engulfed the world a decade ago. Since 2008, it said, historically low, even negative interest rates and unprecedentedly large central bank balance sheet have provided important support […]

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Indian Rupee is Among Worst Performing Currencies

Reading Time: 4 minutesIn just six months’ time, the value of the Indian currency dropped by almost eight percent to Rs. 68.80 for a US$. According to international currency market forecast, the Rupee to US$ exchange rate is likely expanding further to $1=Rs72.78 by November, this year. That would mean almost 14 percent loss in 11 months. The […]

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Why is Arun Jaitley Wrong on Petrol Tax?

Reading Time: 4 minutesThe Narendra Modi government’s oil policy has been so convoluted that it punishes the consumers when international crude oil prices move both ways. When prices go up, the dynamic pricing ensures that the increase is passed on to the consumers. But dynamic pricing ceases to apply the moment crude prices start coming down. Any price […]

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BIS says Cryptocurrency no Substitute for Hard Money

Reading Time: 5 minutesThe Basle-based central bankers’ central bank, the Bank for International Settlements (BIS) has in a new Annual Economic Report (AER) hit the nail on the head by stating that cryptocurrencies’ very paradigm of generating trust circumscribes their potential to replace conventional money. In a special chapter on crypto-currencies released on Sunday evening at its headquarters, […]

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SCO Entry to Help Boost India-China Trade Ties: Sino-US Tiff Creates Opportunity for Delhi

Reading Time: 3 minutesThe recent Sino-US trade war may turn out to be boon to enhance business relations between India and China. It has enlarged the scope for India to export more products, such as cotton, soybean meal and maize, according to Indian exporters. The huge market for cotton in China can be tapped by India after China […]

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