Economics & Investment Highlights (6)

Business Economics & Services Team (BEST)

                                Economics & Investment Highlights (6)

1.       1.US Domination Back?

After the meltdown many had written off the US economy and predicted that it cannot return to its predominant position as the number one economy in the world. That belief was reinforced by the fact that China has piped the US as the number one economy in the world. Now, those who held that the US economy will be fading out sooner or later are proving to be wrong. World over currencies are swearing on the US dollar and are converting their assets into the greenback. This had led to steady erosion of values of the local currencies. In India also, the situation is not different. The rupee breached the Rs 63 mark against dollar and feared that with the current account deficit is widening, the rupee will further slide.

2.     2.   Cabinet nod for GST Bill

Cabinet has finally given nod to the long awaited goods and services tax (GST) bill. A constitutional amendment is needed to give effect to the provisions of the bill, which is supposed to bring about a new tax regime. There was stiff resistance from the states since the bill seeks to take away some of the powers to levy and collect taxes by the state governments. The Center before giving nod to the bill prepared by the finance ministry and discussed threadbare in the cabinet has given some major concessions to the states. The bill is likely to be introduced in the Parliament today.

3.      3.  The government is contemplating separate unit for  Transfer Price Cases

Quite likely a dedicated court for hearing and settling cases relating to transfer pricing will be set up to expedite disposal of such cases in a fast track manner. Of late there has been many cases being heard and decided by different layers of judiciary cases relating to this segment. The decision of the government is seemingly governed by two factors. One, to create a pool of judges well versed in the subject: two, for ensuring speedy disposal of the cases of that nature, which will send right signals to the foreign investors.

4.      4. Insurance Bill caught up skirmish

The government effort to pass the much awaited insurance bill has caught up with stiff resistance from the opposition in the upper house of parliament –Rajya Sabha. It seems that the government has to resort to some compromise on its stand to being the sulking opposition.