Morning Brief: India Means Business, Modi Tells Top CEOs At Davos; IMF Sees India Growing At 7.4 Per Cent This Year

Good morning, dear reader! Here’s your morning news and views brief for today.

India Means Business, Modi Tells Top CEOs At Davos: India means business and presents an exciting opportunity for the global businesses, Prime Minister Narendra Modi told a roundtable meeting of top chief executive officers (CEOs) in Davos, Switzerland. Under the tagline of “India means business”, the roundtable was attended by 40 CEOs of global companies and 20 from India. Narrating India’s growth story, Modi highlighted the efforts undertaken by his government to attract businesses to invest in India. Modi, who arrived in Davos on Monday evening, will deliver opening keynote address on Tuesday morning at the World Economic Forum (WEF) annual meeting. Besides, he will also interact with the members of international business community of the WEF. Modi is the first Indian prime minister to attend Davos summit in 20 years.

IMF Sees India Growing At 7.4 Per Cent This Year: International Monetary Fund (IMF) has projected India to grow at 7.4 per cent in 2018 as against China's 6.8 per cent. This makes it the fastest growing country among emerging economies following last year's slowdown due to demonetisation and the implementation of the goods and services (GST). In its latest World Economic Outlook update released in Davos, Switzerland on the sidelines of the World Economic Forum, the IMF has projected a 7.8 per cent growth rate for India in 2019. "Growth is expected to moderate gradually in China (though with a slight upward revision to the forecast for 2018 and 2019 relative to the fall forecasts, reflecting stronger external demand), pick up in India, and remain broadly stable in the ASEAN-5 region," the IMF said. In 2017, India's growth rate dropped to 6.7 per cent.

Investment Hub: India Moves Up To Fifth Spot, Says PwC Survey: India has emerged as the fifth most attractive market for investments, a survey of chief executive officers (CEOs) by global consultancy PwC said on Monday. "The US remains the top spot for global investment, while India moves into the top 5," PwC's 21st CEO Survey said, adding that there is surprising faith and optimism among chief executives in the economic and business environment worldwide, at least over the next 12 months. "India (9 per cent) bumps Japan (8 per cent) as the fifth most attractive market in 2018," it noted. PwC India chairman Shyamal Mukherjee said backed by definitive structural reforms, the India story has been looking better in the past one year. "Most of our clients are optimistic about their growth. The government has made efforts to address concerns around areas like infrastructure, manufacturing and skilling, although newer threats like cybersecurity and climate change are beginning to play on the minds of our clients," he said.

BSF Destroys Pakistan Firing Positions And Fuel Dumps: India's Border Security Force (BSF) has fired more than 9,000 rounds of mortar shells across the International Border (IB) in Jammu as part of “pinpointed” retaliatory action against Pakistan’s unprovoked firing, destroying firing positions and fuel dumps of the Pakistan Rangers at multiple places. Senior officials of the BSF and in the Home Ministry said the situation along the 190-km IB in the Jammu area was “very tense” as Pakistan had “opened” heavy fire in the entire stretch since Sunday evening. The force also released two small video clips purportedly showing the destruction of fuel dumps. All the BSF border posts in the Jammu area have been put on “high alert” and senior commanders have been asked to be at the front “at least for the next about a week’s time”, they said. The BSF has lost two men in these firing incidents since 19 January. In all, 12 people, including five security personnel, have been killed and over 60 others injured in Pakistani firing from across the border in Jammu since Thursday.

Oxfam Survey: Richest 1 Per Cent In India Got 73 Per Cent Of Wealth Generated Last Year: Presenting a worrying picture of rising income inequality in India, a new survey showed the richest 1 per cent cornered 73 per cent of the wealth generated in the country last year. Besides, 67 crore Indians comprising the population’s poorest half saw their wealth rise by just 1 per cent, according to the survey released by the international rights group Oxfam. The situation appears even more grim globally, where 82 per cent of the wealth generated last year worldwide went to the 1 per cent, while 3.7 billion people that account for the poorest half of population saw no increase in their wealth. The annual Oxfam survey is keenly watched and is discussed in detail at the World Economic Forum Annual Meeting where rising income and gender inequality is among the key talking points for the world leaders. Last year’s survey had showed that India’s richest 1 per cent held a huge 58 per cent of the country’s total wealth – higher than the global figure of about 50 per cent.

Union Budget: Oil Ministry Seeks Cut In Excise Duty On Petrol And Diesel: To cushion the impact of rising oil prices on its vast consumer base, India’s Oil Ministry is pushing for a cut in excise duty on petrol and diesel in the upcoming 2018/19 budget, officials said on Monday. India has the highest retail prices of petrol and diesel among South Asian nations as taxes account for about 40-50 per cent of the pump prices. “We can only recommend. It is up to the finance ministry to take a decision,” a senior Oil Ministry official said. A litre of petrol costs 72.23 rupees ($1.13) while diesel is sold at 63.01 rupees. Petrol and diesel account for about half of India’s refined fuel consumption. The oil ministry officials said the addition of refined products in goods and services (GST) will help reduce retail prices even if the government levies a charge on top of its highest GST rate of 28 per cent. Sources said the ministry has also sought inclusion of petrol, diesel, jet fuel and natural gas in the GST to help companies claim tax credits against the tax paid on the purchase of equipment meant to produce refined fuel.

Increase Tax Exemption Limit To Rs 3 lakh, Says SBI Ecowrap Report: The income tax exemption limit needs to be raised by Rs 50,000 to Rs 3 lakh, said the State Bank of India’s (SBI's) Ecowrap report said Monday, a move that is expected to benefit around 75 lakh people. “Due to Seventh Pay Commission, the personal disposable income has been increased, so we believe there is a need to raise the exemption limit to Rs 3 lakh. Due to such increase in limit, around 75 lakh tax payers will be exempted from income tax,” said the report — ‘Union Budget: If wishes were horses!’ The government has periodically increased the income tax slabs from Rs 22,000 in 1990-91 to Rs 2.5 lakh in 2014-15. Finance Minister Arun Jaitley is set to present the fifth and final full budget on 1 February. The SBI report said that SBI’s expectations regarding the forthcoming budget are based upon principle of inclusive growth and meeting the medium and long term objectives set by the government.

US Shutdown: Senators Reach Deal To Reopen Government: US senators struck a deal on Monday to lift a three-day government shutdown and try to end a fight between Democrats and President Donald Trump’s Republicans over immigration and border security. Legislation to renew federal funding to the government cleared a procedural hurdle in the Senate and was expected soon to pass votes in the Senate and House of Representatives, allowing government to re-open through 8 February. Tens of thousands of federal workers had begun closing down operations for lack of funding on Monday, the first weekday since the shutdown, but essential services such as security and defence operations had continued. Senate Democratic leader Chuck Schumer said he had come to an arrangement with Senate Majority Leader Mitch McConnell to keep the government open for the next few weeks after the Republican promised to let a bill on immigration reach the Senate floor. The last US government shutdown was in 2013.

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We hope you enjoyed reading our morning brief. Have a great day ahead!

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