Indian Economy and Government current

1. MARITIME SUMMIT 2016
By : Harveer Singh

2. MARITIME INDIA SUMMIT 2016
 Maritime India Summit 2016 (MIS 2016) is a
maiden flagship initiative of Ministry of Shipping,
Government of India.
 It provided a unique global platform for investors to
explore potential business opportunities in the
Indian Maritime Sector.
 It showcase about 250 projects with an investment
potential of US $6 billion.
 It is an attempt to to attract investment and is
being partnered by South Korea which is known for
its ship-building capacities. /Har
veer
sir

3. MIS SHOWCASED
 Shipbuilding, Ship Repair and Ship Recycling
 Port Modernization and New Port Development
 Port-based Industrial Development, Port-based Smart
Cities and Maritime Cluster Development
 Hinterland Connectivity Projects and Multi-Modal
Logistics Hubs
 Inland Waterways and Coastal Shipping for Cargo and
Passenger movement
 Dredging
 Lighthouse Tourism and Cruise Shipping
 Renewable Energy Projects in Ports
 Other Maritime Sector related services (Financing,
Legal, Design etc.)
/Har
veer
sir

4. /Har
veer
sir

5. BACKGROUND
 India has vast coast line of 7500 km offers
vast investment opportunities
 High logistics costs make Indian exports
uncompetitive.
 95 per cent of India's trading by volume and
70 per cent by value is done through
maritime transport.
 India has 12 major and 187 non-major
ports. Cargo traffic, which recorded 1,052
million metric tonnes (MMT) in 2015, is
expected to reach 1,758 MMT by 2017. /Har
veer
sir

6. BLUE REVOLUTION
It would be an Umbrella program.
Envisages Integrated Development and
Management of Fisheries’.
The outlay is of Rs. 3000 crore.
It will cover inland fisheries, aquaculture,
marine fisheries including deep sea
fishing, mari-culture and all activities
undertaken by the National Fisheries
Development Board (NFDB) towards
realizing “Blue Revolution” /Har
veer
sir

7. SAGARMALA PROJECT
 A National Perspective Plan (NPP) will identify
projects including integrated development of
ports and efficient evacuation to and from
hinterland.
 National Sagarmala Apex Committee (NSAC)
and Sagarmala Coordination & Steering
Committee (SCSC) have been constituted.
 There is provision for setting up Sagarmala
Development Company (SDC) at the state
level, for constitution of State Sagarmala
Committees in maritime states.
/Har
veer
sir

8. GOVT ANNOUNCEMENTS
 Government of India plans to invest Rs
70,000 crore (US$ 10.5 billion) in 12 major
ports in the next five years under
'Sagarmala' initiative.
 Government of India is planning to set up
low-cost non-major ports along coastline
under the Sagarmala project and has asked
all the 12 major ports to accord priority
berthing to such vessels and to encourage
quicker movement of cargo.
 Up to 100 per cent FDI would be allowed
under the automatic route for port
/Har
veer
sir

9. /Har
veer
sir

10. ELEMENTS OF SAGARMALA
Development of 10 CER (Coastal
Economic Region)
Inward linkages through multiple
freight options - rail, land & inland
waterways
Infrastructure Upgrade for Major and
Minor Ports
/Har
veer
sir
CER
Inward
Linkages
Port
Modernizatio
n

11. THANK YOU

12. BASE EROSION AND PROFIT
SHIFTING (BEPS)
By: Harveer Singh
harveersinh@gmail.com

13. CONSIDER THIS
With changing business
models, globalisation,
elimination of trade barriers,
some of the international tax
rules are not working anymore.
Some companies are not
paying tax anywhere.

14. ALSO CONSIDER
A Purely Domestic company
v/s MNCs in terms of tax
minimization opportunity.
Large multinationals were
able to use mismatches in
domestic tax laws and gaps in
the international tax system to
dramatically reduce their
corporate taxes

15. BEPS is an effort by
OECD-G20 to modernise
international taxation
policies amongst developed
and developing economies
to reflect the changed and
ever changing reality.

16. MAGNITUDE..
 Each country has a sovereign right to protect and
increase its Tax Base.
 Due to the significant evolution of the economy that
is Digital economy and so on, the tax policy lags
behind and corporates exploits these loopholes.
(Double Non Taxation)
 corporate income tax has a big role in public
finance of many developing countries.
 The Loss of revenue is estimated to be around
$100-240 Bn.

17. IT CONTAINS..
 BEPS project aims to fulfil G20-OECD's 15
points action plan on multifarious aspects of
international tax policy.
 It includes 13 reports mostly related to
double taxation , double non-taxation,
Transfer Pricing (Earlier covered in the
class), Interest Deductions, information
sharing, storage based digital taxes etc.
 It also looks at the nexus approach that is
linking tax benefits directly to R&D expenditure.

18. BEPS aims to complete (in 2016)
the work on a multilateral tax
treaty instrument .
countries signing on the
multilateral instrument may not
need to renegotiate their
respective bilateral treaties.

19. THE FOCUS
Companies with global turnover
in excess of ^750 million
(approximately Rs 6,000 crore)
have to report details of
revenues, profits and taxes paid
on a country-by-country basis to
their respective tax
administrators.
Around 900 companies across
the globe would be impacted.

20. FOR INDIA
BEPS recommendations pave the
way for a contemporary cross-border
taxation policy
It ensures stricter sourced based
taxation of profits linked to place
where economic activity and value
creation substantially occurs.
Rather than looking it as anti-
business, it should be seen as
upgradation of taxation system.

21. THANK YOU.

22. TRANS PACIFIC PARTNERSHIP
By: Harveer Singh
harveersinh@gmail.com

23. TPP

24.  The pact aims to deepen economic ties between
these nations, slashing tariffs and fostering trade to
boost growth.
 Member countries are also hoping to foster a closer
relationship on economic policies and regulation.
 The agreement could create a new single market
something like that of the EU.
 some 18,000 tariffs would be affected.

25. Collective population of about 800
million - almost double that of the
European Union's single market.
The 12-nation would-be bloc is already
responsible for 40% of world trade.
If this has not happened before 4
February 2018, it will enter into force
after ratification by at least 6 states,
which hold together a GDP of more
than 85% if the GDP of all signatories.

26. Tariffs on US manufactured goods
and almost all US farm products
will go almost immediately once
the deal is ratified.
Countries would also to co-
operate on wider issues such as
employment practices, intellectual
property and competition policies.

27. ISSUES
Investor-state dispute
settlement (ISDS)
Food and Environment
Safety
Health/Medicines
Job Loss
No exit clause.

30. WHAT INDIA SHOULD DO?
Should go ahead with India-EU
FTA
Concluding RCEP
Blocking effort of these mega
blocks to bypass
 Traditional Knowledge
 WTO rules on Labor, environment,
public procurement etc

31. THANK YOU.

32. SS TARAPORE
By: Harveer Singh
harveersinh@gmail.com

33. SS Tarapore, served as deputy
governor at RBI. He worked
under C Rangarajan, the then RBI
Chairperson.
The mutual understanding and
respect led them to reform India’s
financial sector and put it on a
sound footing.

34.  After retiring, he chaired two committees on full
capital account convertibility and one on how to
streamline the RBI.
 Between 1997 and 2016, he wrote and lectured on
a scale that is hard to emulate.
 He remained steadfast in his belief that RBI knew
what it was doing and ought to be left alone
(Autonomy) to get on with its job, which was
maintaining the monetary stability of India.

35. CAPITAL ACCOUNT CONVERTIBILITY
35
HarveerSinghtwitter.com/iastoss

36.  Freedom to convert local financial assets into foreign
ones at market-determined exchange rates.
 Leads to free exchange of currency at lower rates and an
unrestricted mobility of capital.
 India currently has full convertibility of the rupee in
current accounts such as for exports and imports.
36Harveer Singh twitter.com/iastoss

37.  The Capital can be of any entity/type: Some of
these are
 Foreign Direct Investment (FDI)
 ADRs and GDRs by Indian Companies
 ECBs
 G-SECs
 Joint Ventures/ Subsidiaries
 Disinvestment
 Foreign Venture Capital Investment (FVCI)
 FIIs
 Commodity Hedging
 Overseas Investment by Indian Mutual Fund
 Resident’s borrowings in Foreign Currency
Harveer Singh twitter.com/iastoss 37

38. However, India’s capital
account convertibility is not
full.
There are ceilings on
government and corporate
debt, external commercial
borrowings and equity.
Harveer Singh twitter.com/iastoss 38

39. DEBATE
 Inflow of foreign investment increases, and
transactions are much easier and occur at a faster
pace.
 It also initiates risk spreading through diversification
of portfolios.
 It could destabilise an economy due to massive
outflow of the country.
 It could cause currency appreciation/depreciation
and worsen balance of trade.
39Harveer Singh twitter.com/iastoss

40.  Real liberalization was initiated in 1991 aftermath
balance of payment crises.
 Rangarajan Committee report outlines the reforms
in the external sector.
 Recommendations
 dismantling of trade restrictions
 transition to market determined exchange rates
 gradual opening of capital account
40Harveer Singh twitter.com/iastoss

41. 1997 S.S.TARAPORE COMMITTEE-I
 Provided the initial roadmap for the liberalisation of
capital account transactions.
 A set of preconditions to be achieved prior to
liberalisation of capital account.
 fiscal deficit to GDP ratio has to come down from a
budgeted 4.5 per cent in 1997-98 to 3.5% in 1999-2000.
 Inflation (3-5%)
 Bring down NPAs to 5% and CRR 3%
 Debt Service Ration 20% ( Then it was 25%)
 It was the time when banking sector reforms were
also instigated on the proposition of Narasimhan
committee.
41Harveer Singh twitter.com/iastoss

42.  2000: FEMA over FERA- All the current account
transactions are permitted under FEMA and no
prior permission of RBI is required for any such
transactions, while there remain restrictions on
capital account.
 Under FEMA some capital account transactions are
completely permitted, some are totally prohibited
while some are allowed within a fixed ceiling.
 Sectoral rules have also been shaped and enforced
with FEMA rules.
42Harveer Singh twitter.com/iastoss

43. 2006: TARAPORE COMMITTEE II
 It also did not recommended unlimited openings of
Capital account but preferred a phased
liberalisation of controls on outflows and inflows.
43Harveer Singh twitter.com/iastoss

44. The committee suggested 3
phases of adopting the full
convertibility of rupee in capital
account.
 First Phase in 2006-7
 Second phase in 2007-09
 Third Phase by 2011.
Harveer Singh twitter.com/iastoss 44

45. Allow NRIs to invest in Capital
Market
Give Tax benefit to NRI deposit
Prohibit FIIs from investing in P-
Notes
Raise ceiling on ECB for
automatic route.
Harveer Singh twitter.com/iastoss 45

46. SHOULD INDIA GO FOR FULL CAPITAL
ACCOUNT CONVERTIBILITY ?
Looking at the fragile
economic structure and
underlying problems with
the free capital flow in world
economy, India must be
cautious.
Harveer Singh twitter.com/iastoss 46

47. THANK YOU.

48. INTELLECTUAL PROPERTY
INDEX BY GLOBAL
INTELLECTUAL PROPERTY
CENTRE (GIPC)

49.  Released by U.S. Chamber of Commerce’s Global
Intellectual Property Center (GIPC)
 There are 6 Categories and 30 Criteria.
 Categories include patent, copyright and trademark
protections, enforcement, and engagement in
international treaties
 India remains at the bottom of the Index for the
fourth year in a row.

50. The 38 economies benchmarked
in the 2016 Index accounts for
nearly 85 per cent of the global
GDP.
In BRICS Russia ranked 20th,
China (22nd), South Africa (26th)
and Brazil (29th).

52. WHAT INDIA’S WEAKNESSES ARE?
 The use of compulsory licensing (CL) for
commercial and non-emergency situations, and the
expanded use of CL being considered by the Indian
government.
 Poor application and enforcement of civil remedies
and criminal penalties.

53. DO YOU AGREE THAT THE IP PROTECTION
SYSTEM IN INDIA IS LAX. ELABORATE.
Is it because India relatively
lacks culture of innovation.
Is it because of huge
affordability- aspiration gap.

54. SEPARATE ISSUE: WHY INDIA LAGS IN
INNOVATION?

55. THANK YOU 