Nov. 12 – Indian Prime Minister Manmohan Singh and Canadian Prime Minister Stephen Harper announced on Friday that they have begun discussing the possibility of a bilateral free trade agreement.
The two leaders officially launched the talks after meeting privately on the sidelines of the G20 Summit in Seoul, commenting in a joint statement that “both sides expect a timely conclusion of an ambitious agreement.” Continue reading
Nov. 3 – India’s central bank raised interest rates on Tuesday for the sixth time this year, but said that rates will probably remain stable for the next three months.
The Reserve Bank of India, which has tightened its monetary policy the most in Asia this year, increased the repurchase rate, or lending rate, by a quarter point to 6.25 percent and the reverse repurchase rate, or borrowing rate, by the same margin to 5.25 percent. The RBI also tightened rules for residential home loans, explaining that a “sharp rise in asset prices in such a short time causes concern.” Continue reading
Wen to Visit India in December
Nov. 1 – Indian Prime Minister Manmohan Singh and Chinese Premier Wen Jiabao met on the sidelines of the 17th ASEAN summit in Hanoi on Friday. The two leaders publicly affirmed their commitment to maintaining friendly relations, but planned to discuss sensitive issues in the future. Wen is slated to visit India by the end of the year, a move that Singh greeted with enthusiasm. Continue reading
Sept. 28 – The Indian government is considering making changes to its Contract Labor Act of 1971 that would allow temporary workers to be paid the same wage rates and benefits as regular employees.
If the proposal is implemented, this will mean that temporary contract employees will also qualify for health and social security benefits. Continue reading
Sept. 27 – India has raised the cap for foreign institutional investors (FII) wanting to invest in government securities and corporate bonds by US$5 billion each.
Investment in government securities will now be allowed for up to US$10 billion from US$5 billion and corporate bonds limit increased to US$20 billion from US$15 billion. The change in policy comes at a time when FIIs have been increasingly investing in Indian debt and equity markets. Continue reading
Sept. 23 – The Department of Industrial Policy and Promotion is voicing its opposition to a new proposal that would forbid companies with small levels of foreign funding to be allowed to enter restricted sectors.
The agency is urging the finance ministry to reconsider the proposed policy that would keep out companies with even the smallest amounts of foreign investment from sensitive sectors like multi-brand retail, atomic energy, real estate, lottery, and a type of savings scheme practiced in India called chit funds. Continue reading
Sept. 22 – Central government authorities have given their partial approval to the local government proposal that they be allowed to continue to charge Central Sales Tax (CST) on goods even under the new Goods and Services Tax (GST).
If implemented, states will be able to levy and keep CST on goods outside the GST gambit that includes petroleum, gasoline, aviation turbine fuel, natural gas and alcohol. Continue reading
Sept. 21 – Authorities will be accepting new special economic zone applications beginning October 21.
This month, Commerce Secretary Rahul Khullar went through the approval of 11 new SEZs. India’s SEZs have been instrumental in enticing investments and providing jobs although there are fears that this may change as the SEZ Act that allows generous tax cuts to investors is revised under the new Direct Taxes Code bill. Continue reading
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