Imagine Reserve Bank of India (RBI) was a corporate entity, sitting on a huge amount of cash. What would its shareholders do? Obviously, demand from the company management to return the cash to the shareholders as dividends. However, company management would be reluctant to do so, just in case there is an exigency. The current … Continue reading Analyzing RBI’s Balance Sheet…
India’s imports for April-Dec’18 period touched nearly $350 bn, an increase of 12% over previous year as per the data released by Commerce Ministry yesterday. This would be the second year of double digit increase in imports after stagnating/ declining for five years. India’s trade balance continues to record significant and continued deficit, largely due … Continue reading Indian Imports – Where Does the Money Go??
The distress being faced by agriculture sector has become a part of the mainstream agenda and rightly so. Despite supporting almost half of India’s population, rural economy remains in dire state and policy initiatives have failed to provide any breakthrough. The report published by Swaminathan Committee more than ten years ago remains the most comprehensive … Continue reading Agriculture Distress – Challenges and Remedies…
NBFI comprises of All India financial institutions (AIFIs), Non-banking finance companies (NBFCs) and primary dealers (PDs). AIFIs were established decades ago to meet long term financing needs of sectors such as agriculture, trade, housing and small industries. However, they institutions do not directly lend to consumers but provide finance to the institutions engaged in the respective … Continue reading Financial Sector in India – An Overview (Part II)
ONGC (Oil and Natural Gas Corporation Ltd) acquired government’s majority stake in Hindustan Petroleum Corporation Ltd (HPCL) last year. The company, with consolidated revenue of Rs 3.6 lakh crore and assets of Rs 4.6 lakh crore in FY18, seems to have moved away from its original objective of oil exploration and production. Whether the diversification … Continue reading Corporate Analysis – Oil & Natural Gas Corporation (ONGC)
The financial sector in any economy is tasked with pooling together the savings from various segments of the economy and channeling it to other segments, largely for investment purpose. The efficient handling of this task of financial intermediation is critical to the growth of any economy. However, the structure of the sector has become complex … Continue reading Financial Sector in India – An Overview (Part I)
Automobile industry appears to be going through a challenging times over last few months impacted by the slowdown in NBFCs loan disbursal and certain other issues. If the trend persists, it could be one more setback for the industry already bracing to meet the BS VI norms from April’20. This is other than the potential … Continue reading Industry Analysis – Automobile Industry
Tax on under construction property is another case similar to restaurants. While the tax rate here is 12%, effective outgo would be lower as builder should pass on the tax credit received on input material. However, the builders have not passed on the benefit and therefore, the buyers prefer buying resale properties which does not … Continue reading Revisiting GST – Journey So Far. (Part II)
The Goods & Service tax (GST) completes 18 months of its implementation and the developments so far have been very encouraging. After the initial months of excessive hassles related to filings, complains of high tax rates, inconvenience to small entities and so on, the taxation regime appears to have reduces these glitches substantially. Still, it … Continue reading Revisiting GST – Journey So Far. (Part I)
It was a reasonable yet an uncertain year for the global economy expected to end 2018 with growth rate of 3.7% as per an IMF report, almost the same as previous year. While growth rate of developed nations remains close to 3%, for emerging economies, it is expected at over 4.5%. Chinese economy, probably the … Continue reading The Year That Was – International..