15.11.2007

• India to retain BPO edge
• Though there is fair bit of hype around China and other cheaper destinations taking over India in the BPO game, many industry leaders disagree. India is expected to retain its advantage in terms of cost, scalability, English speaking population and domain expertise. Though the rising rupee is expected to make a dent in their profitability, grapevine has it that even at Rs. 30 a dollar, our BPO segment will continue to make money.
• Indians going places!!
• Indian American, Shantanu Narayen is now the President and CEO of Adobe Systems. This company is known for its Acrobat Reader software.
• On revenue neutral rate (RNR) for GST
• It is a very good article that appeared in today’s ET. Recommend reading it once. Do so here. This would give you a peep into how experts work their way through to making recommendations. Some points worth our noting:
• The Kelkar task force report suggested that the GST rate would need to be levied at 20% -- 12% to Centre and 8% to States.
• While this suggested rate falls below the present statutory rate of 28.5% (Cenvat of 16%, and VAT of 12.5%), it is expected to raise the hackles of the consumers.
• The total excise/service tax/ VAT/sales tax revenues of the Centre and the states in 2005-06 were Rs. 134000 crore and Rs. 139000 crore respectively.
• Assuming that approximately 40% of the central excise revenues and 20% of the state VAT/sales tax revenues are from motor fuels, the balance of the revenues from other goods and services that need to be replaced by the GST are Rs. 89000 crore for the Centre and Rs. 111000 crore for the states, making up a total of Rs. 200000 crore.
• In 2005-06, the total private consumer expenditure on all goods and services was Rs 2,072 thousand crore at current market prices. Making adjustments for sales and excise taxes included in these values and for the private consumption expenditure on motor fuels, the total tax base (at pre-tax prices) for all other goods and services is Rs. 1,763 thousand crore.
• These values yield a revenue-neutral GST rate of approximately 11% (200 as per cent of 1,763 is 11.3%). The RNR for the Centre is 5% and for the states 6.3%. Allowing for some leakages, the combined RNR could be in the range of 12%.
• The slowing IIP figures do not point to a trend
• With the government’s indirect tax collections growing 18.6% in October, the belief that the slowdown noticed in September IIP figures is only blip and not a trend.
• M. Rammohan Rao committee of SEBI
• Constituted by SEBI, this committee on derivatives recommended introduction of mini contracts on equity indices, options with longer life/tenure, volatility index and futures and option contracts, options of futures, bond indices and F&O contracts, exchange traded currency (forex) F&O and exchange traded products to cater to different investment categories.
• India’s seafood exports market
• It is a Rs. 8,300 crore market.
• India is a leading exporter of Black Tiger shrimp to the US. But this market is threatened by the cheap Vannamei shrimp from other Asian countries.
• 15^th International Children’s Film Festival
• Started off in Hyderabad. About 115 films from 30 countries will be screened.
• 13^th Finance Commission
• Constituted by the President under Article 280(1) of the Constitution, with Mr. Vijay Kelkar, former Finance Secretary as the Chairman. Other members are:
• Indira Rajaraman, Professor, NIPFP
• Abusaleh Shariff, Chief Economist, NCAER
• Atul Sharma, former Vice Chancellor of Rajiv Gandhi University
• BK Chaturvedi, Planning Commission Member as part time member
• Sumit Bose as Secretary of the Commission.
• It will make recommendations for the period 2010 to 2015. It is expected to submit its report by October 31, 2009.
• It will look into:
• Principles governing grants-in-aid of the revenues of States out of the Consolidate Fund of India
• Measures needed to augment the Consolidated Fund of a State to supplement resources of panchayats and municipalities
• Review of the finances of the Union and States and recommending steps for maintaining a stable and sustainable fiscal environment consistent with equitable growth
• Review of the existing arrangements for financing disaster management
• The need for improving the quality of public expenditure to obtain better outputs and outcomes
• Bunchy top disease in banana plants
• It is caused by a virus that spreads by the banana aphid.
• Infected plants are dwarfed in nature and their emerging leaves are small and narrow with yellow edges. The leaves grow upright and have a stunted, bunched appearance.