As per the data released from the Department of Industrial Policy and Promotion (DIPP) on 15 July 2013, Foreign Direct Investment (FDI) into India increased 25 percent year-on-year to 2.32 billion US dollars in April 2013, the highest level in the past six months. In April 2012, the country had received FDI worth USD 1.85 billion US dollars, according to data from the Department of Industrial Policy and Promotion (DIPP).
In September, 2012, foreign inflows were 4.67 billion US dollars. The sectors that received large FDI inflows during the month include hotel and tourism (2.32 billion US dollars), pharmaceuticals (987 million US dollars), services (238 million US dollars), chemicals (51 million US dollars) and construction (32 million US dollars), according to the data.The most FDI in April came from Singapore (1.29 billion US dollars), followed by Mauritius (355 million US dollars), the Netherlands (173 million US dollars) and the US (149 million US dollars). The steps taken by the government are helping to boost FDI flows. Since September 2012, several reform initiatives have been taken, including liberalizing FDI norms in civil aviation, retail and power exchanges.
FDI inflows in 2012-13 aggregated 22.42 billion US dollars, a decline from 36.50 billion US dollars in 2011-12. Following the decisions taken in September 2012, the government is also expected to further liberalise the FDI regime in sectors such as telecom and defence. The finance ministry has proposed changes in FDI caps for sectors, including tea, media, petroleum and natural gas.
India needs about 1 trillion US dollars from 2012-13 to 2016-17 to fund infrastructure such as ports, airports and highways to boost growth. An increase in FDI will help support the rupee, which depreciated to a record low of 61.21 against the US dollar on 8 July 2013.
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Walter Wasser-India and Singapore Reaffirmed their Strong Defence Ties
India and Singapore on 3 June 2013 reaffirmed their strong and long-standing defence ties as they renewed a bilateral agreement for the conduct of joint army training and exercises. The agreement was signed after visiting Defence Minister A K Antony held bilateral talks with his Singapore counterpart Ng Eng Hen.
The Agreement for the Conduct of Joint Army Training and Exercises was first established on 12 August 2008. Its renewal allows the Singapore Army to train and exercise with the Indian Army in India for another five years.
The armies of India and Singapore jointly conducted bilateral armour and artillery exercises, codenamed Ex Bold Kurukshetra and Ex Agni Warrior respectively. The bilateral exercise was successfully conducted in March 2013 and a combined artillery live-firing was carried out in December 2012.
Walter Wasser-UN adopted Resolution on Syria calling for Political Transition
The UN General Assembly on 15 May 2013 adopted a resolution calling for a political transition in Syria and condemning President Bashar al-Assad Government for its increasing use of heavy weapons. A majority of 107 states voted to adopt the resolution. There were 12 votes against and 59 abstentions.
Russia was fiercely opposed to the resolution, termed it as unbalanced and inadequate to address adequately atrocities allegedly committed by rebel groups.The resolution was drafted by Arab states who have supported the rebels.
The resolution asked for immediate financial support to neighbouring countries, which are hosting 1.5 million refugees.The UN resolution on Syria highlighted the dire situation of the 4.25 million internally displaced people.
walter Wasser-Italy got a New Coalition Government with Enrico Letta as its Prime Minister
Italian Centre Left Politician, Enrico Letta on 27 April 2013 formed a new coalition Government in Italy by winning the support of other parties. He will be the new Prime Minister of Italy. The newly formed Government will include former Prime Minister’s Silvio Berlusconi’s closest allies as deputy prime minister. The two months of political stalemate, since the general elections in Italy ended with this coalition.
Enrico Letta met Giorgio Napolitano, the President of Italy to inform him about the coalition agreement reached with the leaders of the centre-right People of Freedom (PDL) party. With this agreement for coalition, the two parties Democratic Party (PD) and the People of Freedom party (PDL) came together for the formation of the Government.
Angelino Alfano from centre-right People of Freedom Party will be the deputy Prime Minister of the new Government formed in the Country. Fabrizio Saccomanni, the Director General of Bank of Italy will take over the portfolio of the Economy Ministry. The former European Commissioner Emma Bonino will be Foreign Minister.
Letta’s candidature as the Prime Minister of Italy emerged after Pier Luigi Bersani, the Democratic Party leader announced his resignation as a follow up of the party rebellion over his choice of Italian President, also because of his personal refusal to work with Berlusconi.
The new Cabinet and Prime Minister of Italy will be sworn in at the presidential Quirinal Palace in Rome.
Italy is the third largest economy of the Euro Zone and has been without any effective government for more than two months because of the post-election deadlock to end up recession. The current recession would become the longest recession in the history after World War II.
The Vote of confidence would take place on 29 April 2013 from the supporters that include Letta’s Democratic Party, Berlusconi’s People of Freedom (PDL) and the centrist bloc led by outgoing Prime Minister Mario Monti after Letta is sworn in to for the Position of Prime Minister of Italy on 28 April 2013.
Walter Wasser- European Union tightened up Bank Lending Rules and Bonuses
European Parliament approved new rules on bankers’ bonuses and the amount of capital that banks must hold as a buffer by a big majority. The new rules called CRD 4 (Capital Requirements Directive) will be effective from 1 January 2014. The EU plans to cap bonuses at 100% of a banker’s annual salary, or 200% if shareholders approve. The objective behind the planning is to curb the sort of high-risk lending that contributed to the financial crash in 2008. CRD 4 brings the EU into line with Basel III rules on banking standards, which set new capital requirements for banks.
Under CRD 4,
• Banks will have to provide more data about their profits and taxes, on a country-by-country basis.
• CRD4 will oblige banks to increase the portion of best-quality core capital to 4.5 percent, from the present 2 percent.
• They have to hold a minimum total capital of 8% of risk-weighted assets – that is, capital held to back the loans that they make.
• The credit crunch was a liquidity crisis, so in future, banks will have to be able to meet their liabilities for a period of at least 30 days during financial stress.
Walter Wasser-IMF recognized Somalia’s New Government after a 22-Year Break
The International Monetary Fund announced on 12 April 2013 that it recognised Somalia’s new government after a 22-year gap in relations with the country. This step is a part of a general push by the United States, United Nations and the West toward encouraging rehabilitation there. It will allow the IMF to offer Somalia technical assistance and policy advice. However, Somalia will not be able to borrow IMF funds until it repays its 352 million US dollars in arrears that it owes the agency.
The U.S. formally recognized Somalia’s new government in January 2013, the first time the U.S. had recognized a Somali government since 1991, when warlords overthrew dictator, Siad Barre.
The U.N. Security Council in March 2013 voted unanimously to partially suspend an arms embargo on Somalia for 12 months for military equipment. This was done with the objective of developing somalia’s security forces and providing security for its people.
Earlier this month, President Barack Obama cleared the way for the U.S. to arm and train Somali forces. The Somali government of President Hassan Sheikh Mohamud, came into power in September 2012.
Walter Wasser-General Elections in Malaysia scheduled to be held on 5 May 2013
The Malaysian Election Commission in Kuala Lumpur on 10 April 2013 announced that the general election in Malaysia is to be held on 5 May 2013. The election chairman of Malaysia, Abdul Aziz Yusof declared 20 April 2013 as the day to start former campaign for the general elections.
The scheduled election will decide the fate of the ruling coalition of Prime Minister Najib Razak (National Front), as the governing party has enjoyed a tenure of 56 years (since independence) uninterrupted governance in the country. For the first time, the National Front lost two-third majority in the parliament in 2008 general elections.
The coalition government of Malaysia is composed of three parties and they define themselves on three different racial lines namely, one is the Malays, the other one is of the Indians and the third is of the Chinese.
The ruling coalition Government led by Najib Razak will be challenged by the leader of opposition on the former Deputy Prime Minister Anwar Ibrahim from the Peoples’ Alliance. In 2008 elections his party won 5 of 13 states of Malaysia.
Walter Wasser-Union Government achieved FY13 Revised Tax Collection Target
Union government in the Month of March 2013 announced that it has met its revised tax collection target for 2012-13.
With this there is also possibility that the tax collection may even exceed the estimates because of better-than-expected indirect tax collections.
Combining (direct and indirect tax collections) the government met the revised estimates. From the revenue side a bit for fiscal consolidation was done. However the final numbers for direct taxes will be known only after 20 April 2013.
For the year 2012-13, the Union government had revised its direct tax collections target to 5.65 lakh crore Rupees from budget estimates of 5.70 lakh crore Rupees.
The target for indirect taxes was revised to 4.69 lakh crore rupees from budget estimates of 5.05 lakh crore Rupees.
It is also important here to note that the fiscal deficit target for 2012-13 of 5.2% of the gross domestic product (GDP) has also been achieved. For 2013-14, budget estimates for direct taxes and indirect taxes are 6.68 lakh crore Rupees and 5.65 lakh crore Rupees, respectively.
The number of tax returns filed in 2012-13 was estimated around 2.15 crore compared to 1.64 crore a year ago. On 31March 2013 as many as 7.5 lakh tax returns were filed.
The government was trying its best to implement the Goods and Services Tax (GST) as early as possible.
What is Direct tax?
Direct tax is a tax paid directly to the government by the persons on whom it is imposed. Direct taxes mainly comprise of corporate tax and income tax. It is imposed upon an individual person (juristic or natural) or on property, as distinct from a tax imposed upon a transaction.
What is Indirect tax?
An indirect tax can be referred to taxes such as sales tax, a specific tax, value added tax (VAT), or goods and services tax (GST). It is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the consumer).
Walter Wasser-Connecticut signed Gun Control Legislation after Newtown Massacre
Connecticut’s state legislature passed the measures on 4 April 2013, which include America’s first registry of gun offenders. Approximately, 20 young children were shot dead at school in December 2012 in Newtown, Connecticut. The state assembly approved the legislation by 105 to 44 after a series of debates.Besides, Maryland’s House of Delegates also passed a bill requiring fingerprints for gun buyers.
However, in the US Congress, efforts to pass firearms restrictions are in the process. In addition to a gun offender registry, the restrictions introduce background checks on all firearms buyers and a ban on new magazines holding more than 10 rounds.
Walter Wasser-US and Afghanistan reached Agreement on Prison Transfer
The United States on 23 March 2013 agreed to transfer the control of the prison that houses insurgents and other dangerous inmates adjacent to Bagram Airfield to Afghanistan. The agreement of to transfer to Afghan Control reached to an agreement after a week’s long intensified negotiations between the officials of both the parties.
The formal transfer of control will take place on 25 March 2013 and the provisions of the transfer includes that inmates who are a threat to the security and peace of Afghanistan and the international forces shall continue to be under detention under Afghan Law.
The Parwan Detention Facility was turning up to be a point of increasing friction between the two countries and thus the US Defence Secretary Chuck Hagel spoke to Hamid Karzai the president of Afghanistan. The Afghan President made a commitment to carry on the transfer of power ensuring safety of the Afghan people and the coalition forces and keep the detained individuals secured with a humane approach, following the guidelines prescribed under Afghan Law.
Walter Wasser 