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China no more top trading partner of US

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President Donald Trump says United States does not want to do any Business with Huawei

According to a media report As a result of ongoing trade, China is no longer the top trading partner of the United States and has been replaced by America’s neighbors Mexico and Canada.

As per the Wall Street Journal in the first half of the year, Mexico will be the top trading partner of the United States followed by Canada.

The daily reported that the ongoing trade war between the US and china imports from China to the US dropped by 12 percent and America’s export to China fell by 19 percent.

Earlier Trump has imposed 25 percent import tariff on Chinese products worth $250 billion.

Another 10 percent tariff on products worth $300 billion will come into effect on September 1.

Trump has so far maintained that China has been unfair to the US. China has also taken several retaliatory steps.

As per the commerce department report that the total value of bilateral goods exchanged with China fell 14 percent in the first half of the year to $271.04 billion.

It also said that”After holding the top spot among US trading partners from 2015 to 2018, China now sits at No. 3 and now smaller than Mexico for the first time since 2005,”

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Govt imposes 30 percent on corporate tax and 40 percent on foreign firms : Reports

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Govt imposes 30 percent on corporate tax and 40 percent on foreign firms : Reports

A government panel has recommended cutting the corporate tax rate to 25 percent from 30 percent for all companies and scrapping surcharges on tax payments, an official said on Tuesday, part of a major overhaul of the six-decades old tax act.

India has one of the highest corporate tax rates in the world even after Finance Minister Nirmala Sitharaman this year cut the rate to 25 percent from 30 percent for companies with annual sales of up to Rs. 400 crore.

The panel headed by Akhilesh Ranjan, a member of the central board of direct taxes, delivered its report to Ms. Sitharaman on Monday. It was not made public and a finance ministry spokesman declined to comment on its contents.

A finance ministry source who reviewed the report said it recommended an overhaul of the Income Tax Act.

“The committee has said the government should move away from surcharges on income and reduce corporate tax to 25 percent,” the source who declined to be identified told Reuters.

The government imposes a 30 percent corporate tax rate on domestic companies and 40 percent on foreign firms, plus a 4 percent health and education surcharge on total tax payments.

It also charges a surcharge of 12 percent for domestic companies and 5 percent for foreign companies if their taxable income exceeds Rs. 10 crores, according to Deloitte, a global tax consultancy.

The panel was formed in 2017 and tasked with bringing the income tax law in line with other countries and incorporating best practices according to the needs of the economy.

The finance ministry will study the report before taking a decision on its recommendations, the ministry source said, adding that they may be included in the government’s 2020-21 budget proposals

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Raghuram Rajan warned Modi govt that Indian economy slowdown”very worrisome”

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Raghuram Rajan warned Modi govt that Indian economy slowdown"very worrisome"

Former RBI Governor Raghuram Rajan has said the economic slowdown in India is “very worrisome” and has called for a fresh look at the way GDP is being calculated.

Mr. Raghuram Rajan told that   “There are a variety of growth projections from the private sector analysts, many of which are perhaps significantly below government projections and I think certainly the slowdown in the economy is something that is very worrisome,”

 The Monetary Policy Committee recently lowered its growth forecast for FY20 to 6.9 percent from 7 percent in the June policy.

Rajan also drew attention to former chief economic advisor Arvind Subramanian’s research paper published at Harvard University that claimed that India’s GDP growth figure was overstated by about 2.5 percentage points per year in the post-2011 period.

Rajan said that “We need a fresh look from an independent group of experts at the way we compute GDP and make sure that we are not in a sense having GDP numbers that mislead and cause the wrong kinds of policy actions,”

The Li Keqiang Index was created by The Economist and named after a former head of China’s Liaoning province who allegedly said he did not trust government statistics and maintained his own index of broad industrial indicators that couldn’t be easily fudged such as electricity consumption and railway volume.

In addition, Rajan believes that “a fresh set of reforms” are now needed to boost the economy and energise the private sector to invest. He added it was imperative to fix immediate problems such as those ailing the power sector and the non-bank financial sector post-haste and “not in the next six months” in order to propel India by the 2-3 per cent faster growth that it needs.

At a recent meeting with Finance Minister Nirmala Sitharaman, India Inc asked the government for a ‘quick fix’ stimulus package to kick-start the investment cycle. However, Rajan opines that sops and stimulus of any kind “are not going to be that useful in the longer-term, especially given the very tight fiscal situation” and warned that one-off programmes will not amount to a comprehensive reform agenda for the economy. “This is what we need today and I really hope we put our best minds to think about this because absent that my sense is that we are in for not so good times,” he added.

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“Make in India” project is a Failure: L&T AM Naik

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"Make in India" project is a Failure: L&T AM Naik

Larsen and Toubro Chairman AM Naik said the government’s ambitious Make in India campaign is a failure since it failed to create the desired number of Jobs as most companies prefer importing goods instead of manufacturing it locally.

According to the reports of Business daily and Live Mint said that there is a lot to be achieved under the government’s Make in India initiative.

He also explained that more jobs are currently being exposed out of India since there focus on local manufacturing is low.

AM Naik who heads the National Skill Development Corporation a public-private partnership expressed concern over the fact that Indian companies are importing more goods compared to the ones which are locally manufactured.

He further explained why Indian companies are going for more imports he said Indian companies who do not have many options for financing but imports come with credit facilities.

He added that India is burdened with creating employment opportunities for 10 million people every year, it has failed to do so due to a slowdown in consumer demand.

Naik told the publication that job creation in sectors like manufacturing has failed to match the supply of skilled labor. He said there is a “mismatch” between the right skills and jobs.

He went on to say that the ongoing trade war between the US and China was an “emerging opportunity” for several countries including India. However, only countries like Vietnam and Thailand have taken advantage of the situation.

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