Bank of Japan introduces negative interest rates of -0.1%

The Bank of Japan today introduced negative interest rater egime at its first policy review for the year.
The Japanese central bank decided to keep an interest rate of -0.1% from its current level of 0.1%. The rate will apply to current accounts that financial institutions hold at the bank. The policy was decided by a 5-4 majority vote.
A negative interest rate means the central bank and perhaps private banks will charge negative interest; instead of receiving money on deposits, depositors must pay regularly to keep their money with the bank. This is intended to incentivise banks to lend money more freely and businesses and individuals to invest, lend, and spend money rather than pay a fee to keep it safe. Read Articles

Fiscal deficit reaches nearly 88% of full-year target in December


India’s fiscal deficit was Rs 4,88,000 crore ($71.90 billion) during April-December, or 87.9% of the full-year target, data from the government has revealed.

The deficit was 100.2% of the full-year target during the same period a year ago.

This means that the governnment will have to keep the excess of its expenditure over income  at  12.1% of budget estimates in the remaining three months of the fiscal. Read Articles

Lax digitisation of food subsidies slows reforms


Only 16 of 29 states and seven union territories had digitised the leaky ration-card system of the world’s largest programme to distribute subsidised food, the targeted public distribution system (TDPS), by the end of April 2015, according to the latest-available government data.

Nearly half of 55.45 million metric tonne foodgrain despatched for sale to more than 99 million families never reaches them, according to this 2015 paper (using 2011 data) by Ashok Gulati and Shweta Saini of the Indian Council for Research on International Economic Relations. Read Articles

Realty sales, PE investments to improve in 2016


The real estate sector is likely to see improvement in sales and equity deals in 2016 as the economy shows signs of revival on the back of various policy decisions taken by the government, a report said.

Budget 2016 – According to a survey jointly conducted by JLL and RICS, nearly 66.7 per cent of respondents foresee improvement in sales over the next 12 months.

“Pure equity investments have seen a return and been on the increase and the momentum is expected to continue over the 12 months. This aligns with the recalibration of the investment community’s role as a long term partner with key and select developers,” it added.

Union Budget 2016-17 – A majority of respondents, however, feel that equity investments will be restricted to Grade A names and will not be available for developers with limited institutional financing track record over the next 12 months.

Read Full Article Over Here : Business Standard News

UN Report Says India to be Fastest-Growing Economy in 2016


Budget 2016 – India will be the world’s fastest growing large economy at 7.3 per cent in 2016, improving further to 7.5 per cent in the following year, a United Nations world economy report said on Friday.

“India’s economy, which accounts for over 70 per cent of South Asia’s GDP, is projected to grow by 7.3 per cent in 2016 and 7.5 per cent in 2017, slightly up from an estimated 7.2 per cent in 2015.”

Union Budget 2016-17 – India will be the fastest-growing large economy in the world, said World Economic Situation and Prospects 2016, which was released by the UN here.

The report said South Asia is expected to be the world’s fastest-growing region in 2016 and 2017.

Read Full Article Over Here : Business Standard News

‘Make in India’ road show held in China


Business leaders of over 80 Chinese companies and enterprises today participated in a road show organised in the southwestern Sichuan province, highlighting the opportunity for entrepreneurs to invest in India under the government’s ‘Make in India’ initiative.

Speaking on the occasion, Consul General of India in Guangzhou, Sailas Thangal said that ‘Make in India’ campaign offers great opportunities for Chinese business and entrepreneurs to invest in India and take advantage of India’s large potentials for growth.

He invited all Chinese business leaders present at the road show at Chengdu to attend the ‘Make in India’ week to be held in Mumbai from February 13-18. Read Articles