27 July 2018

  |  CBI India

Update

CBI India Update July 2018

Read all about the recent political developments and FDI inflows in India in the latest issue of India Update.

CBI India Update July 2018

July has been a politically busy month in both the UK and India.

Close on the heels of the announcement of the UK government’s Brexit White Paper, the CBI released the business view of the White Paper. This was followed by the CBI’s analysis of how to improve the UK's export performance - Winning Worldwide. Read the four-step plan to boost the UK’s exports, produced by the CBI’s international team here.

The CBI Deputy Director General Josh Hardie visited New Delhi this month and met key stakeholders in the UK and Indian governments and partner trade organisations like the CII, FICCI, Invest India and UKIBC. He also interacted with CBI members at the British High Commissioner’s residence.

As you may be aware, we have started the survey work for the next edition of our flagship publications Sterling Assets- Britain Meets India which we are developing in partnership with Grant Thornton India.  Our India-based members have received the email with the survey link from the GT team. I will be grateful if you could complete the online survey at the earliest. For a pdf copy or a face to face interview for the survey, please get in touch with Siddhartha Thyagarajan.

Meanwhile in India, the Parliament met for the monsoon session this month, with the opposition holding a no-confidence motion against the Modi government – the first in fifteen years. The government won the motion comfortably, while the opposition questioned the government on several issues including unkept promises to political allies and people. Read more here.

FDI to India received a setback in 2017-18 reporting a five-year low. It grew at 3% to £ 34 billion in the financial year 2017-18. FDI to India fell in the calendar year 2017, reports UNCTAD. Read more here. However, with Samsung announcing a £ 542 million investment to build the world’s largest mobile phone factory in NOIDA, Uttar Pradesh, India, this figure is bound to go up in the current financial year. Read more here.

Foreign Portfolio Investments didn’t fare better. In the first six months of 2018, around £ 5.3 billion (INR 480 billion) was pulled out of the country by FPIs. Read more here.

 

Here are some more highlights of the month:

ECONOMY AND POLICY

Fiscal deficit to be below budgeted level of 3.3%

India’s Finance Minister Mr Piyush Goel feels that fiscal deficit will be below budgeted level of 3.3% this year owing to revenues from the new Goods and Services Tax GST. Read more here.

The EU questions India on unused solar capacity

The EU has in a submission to the Directorate General for Trade Remedies questioned India’s plans to ramp up solar capacity when 22% remains unutilised. Read more here.

I-T department seeks GST, GAAR details in new audit form

The Income Tax department has changed the 3CD form for tax audit report seeking details of the goods and services tax (GST), the general anti-avoidance rules (GAAR) and secondary adjustments in transfer pricing from companies and professionals. Read more here.

Andhra Pradesh tops 'ease of doing business' ranking, Telangana comes 2nd

India’s southern state of Andhra Pradesh topped the ease of doing business rankings within India. Read more here.

 

MEMBER NEWSMAKERS

Vodafone top brass in India to complete merger

Vodafone CEO Vittorio Colao and CEO designate Nick Read were in India this month to complete the Vodafone-Idea Cellular merger process. Read more here.

TCS dribbles past estimates with fastest growth in 15 quarters

Tata Consultancy Services, India’s largest software services company, recorded its fastest growth in nearly four years, boosted by a pipeline of new deals and a revival in business from the banking and finance sector as well as in the US. Read more here.

Marks & Spencer launches its first store in Bhopal

M&S opened its first store in India in 2001 and has grown to 63 stores across 28 cities, including 20 in emerging markets such as Bhopal, alongside an increasing presence in online marketplaces. Read more here.

Vistara to buy 19 Airbus, Boeing planes worth $3.1 billion

Tata group’s airline Vistara has signed up with Airbus and Boeing for sourcing new planes. Read more here.

Virgin Atlantic Celebrates 18 Years In India

Read more here

 

ON THE RADAR

India and FTAs

Despite being the world’s fastest growing economy, WTO data shows that India scores low at 20th position in global trade. Read more here.