India has leaped 23 places in the World Bank Ease of Doing Business rankings. India is now 77th from 100th in the previous rankings. There have been improvements in Six out of 10 indicators, and India has jumped 65 places in the last four years, but Prime Minister Modi wants India in the top 50. India's leap in ranking is significant considering that last year the country had improved its rank by 30 places, a rare feat for any country of the size of India. India has improved its rank in 6 out of 10 indicators. But, the most dramatic improvements have been registered in the indicators related to 'Construction Permits' and 'Trading across Borders.' The important features of India's performance this year are: The World Bank has recognized India as one of the top improvers for the year. This is the second consecutive year for which India has been recognized as one of the top improvers. As a result of continued performance, India is now placed at first position among South Asian countries as against 6th in 2014.
Modi govt plans ordinance to amend Companies Act
The Indian government is looking to promulgate an ordinance to amend the Companies Act to tighten rules around independent directors, while reducing penalties on minor violations. The Ordinance, based on a report of a committee headed by corporate affairs secretary I Srinivas, is listed for discussion by the union cabinet. The government was earlier toying with the idea of further tightening the rules for independent directors, including making them ineligible for few assignments in case a company’s board is superseded, like in the case of IL&FS. But the plan has been put on the backburner, following intense lobbying by stakeholders. At the moment the focus is on implementing the committee’s recommendations, which have already undergone public discussion. The panel had suggested simplifying levy of penalties for violation of Companies Act for minor offences, including some related to technical defaults and corporate governance.
India's manufacturing activity grows at quickest pace in 4 months
India's manufacturing sector activity improved in October, as firms scaled up production and employment levels amid strong rise in new business order flows, a monthly survey said. The Nikkei India Manufacturing Purchasing Managers’ Index strengthened from 52.2 in September to 53.1 in October as new orders and production increased at the quickest rate in four months. This is the 15th consecutive month that the manufacturing PMI remained above the 50-point mark. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction. New orders increased at a sharp rate during October and panelists attributed this rise to successful advertising efforts, strengthening underlying demand and competitive price-setting. The rise in new order flows was the fastest since June. “A combination of domestic and foreign orders fuelled the upturn in overall activity, although export orders displayed the slowest expansion since July, total new work rose at the sharpest pace since mid-year,” said Pollyanna De Lima, Principal Economist at IHS Markit and author of the report.
US revokes duty-free privileges to 50 Indian products
The US has revoked duty-free concessions on import of at least 50 Indian products, mostly from handloom and agriculture sectors, reflecting the Trump administration’s tough stand on trade-related issues with New Delhi. The federal register issued a notification, listing out 90 products that were so far subject to duty-free provisions under the Generalized System of Preferences (GSP). US President Donald Trump issued a presidential proclamation, leading to the removal of these products from the privilege from November 1. These products “will no longer qualify for duty-free preferences under the GSP programme but may continue to be imported subject to regular Most Favored Nation duty rates,” an official of US Trade Representative (USTR) said. With India being the largest beneficiary of the GSP, it has been hit the most by the latest decision of the Trump administration. The GSP, the largest and oldest US trade preference programme, is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries.
