Daily Financial News Analysis – 4th Jan’20 – Free PDF Download

Oil Prices on the Boil

• Jumped $3 on Friday
• Stoking fears of a supply disruption
• India: fuel prices are already at a 13-month high.
• The rupee lost about 0.60% or 44 paise to close at 71.80 per dollar.
• India’s fiscal deficit will face threat if price escilates further.

• India imports 84% of its oil
• Nearly 60% of it from the Middle East
• September 2019: drone attack on the Saudi facility
• India’s extended neighbourhood
• Welfare of nearly 10 million Indians in the Gulf.
• $40 billion remittances comes from this region.

Oil Prices on the Boil

• Litigation settlement scheme in the upcoming budget.
• It will allow companies to put an end to legacy tax disputes by paying a portion of the money demanded by the revenue department.
• Estimated 500,000 cases have been pending in the courts and quasi-judicial forums.
• The total value of these disputes is pegged at Rs 7-8 lakh crore
• A government task force had recommended the litigation settlement scheme in July last year.
• Central Board of Direct Taxes (CBDT) had set up a panel to help reduce tax litigation in February last year focused on resolving pending direct tax disputes urgently.

Make in India

• US – China trade war may be partly responsible for the economic slowdown globally.
• It presents an opportunity for India.
• What was lost by China, was gained by India.
• Samsung shifted its base to Noida, Uttar Pradesh.

• Samsung lost no time in setting up its world’s largest mobile factory in Noida.
• Close to 30% of the smartphones manufactured in the world would then be expected to be exported from India soon.
• China continues as being the ‘world’s factory’
• US India Strategic Partnership Forum (USISPF): 200 US companies are seeking to move out
• India needs to reform: land and customs reforms
• Strengthen its supply chain model.
• There are a few salient features that gives India an edge over China.

1. India-US relations under Prime Minister Narendra Modi and President Donald Trump are strong and relatively stable.
2. India boasts of a majority young working population out of its total of about 130 billion.
3. India and the US can sign a free-trade agreement (FTA) to have more access to each other’s markets
4. Domestic market that can swallow a large percentage of manufacturing goods.

• ‘Predicted Manufacturing Competitiveness’ index: India is expected to jump six ranks to No. 5 in the 2020

Download Free PDF

Sharing is caring!