Direct Taxes in India

What is Direct Tax? The tax paid to the government directly by the tax-payer (like the Capital Gains Tax and the Income Tax) are called Direct Tax. In other words, it can be stated direct tax is taken away from ones salary or wages directly. However, the property tax which is imposed by the government is also called direct tax. In India, the collections which are clubbed under direct taxes are Banking Cash Transaction, Securities Transaction Tax, Personal Income Tax, Corporate Tax and Fringe Benefit Tax. The collections of Direct Taxes in India are increasing smoothly over the years.

Income Tax in India: The income earned during a financial year (April 1^st till March 31^st) is taxable as per the prescribed rates for that year. Here, a resident based tax paying system is followed. The taxes are charged keeping in view the residential status (not citizenship). The categories are resident, resident but not ordinarily resident, and nonresident. In case of Indian sourced income- all the three categories are taxable in India. However, for the foreign sourced income of only the residents are charged. The foreign sourced incomes of the resident but not ordinarily resident and the non-resident are not taxable in India. The Indian companies are always categorized under Indian resident. Moreover, the companies which are controlled from India are also categorized as Indian. The rest of the companies are non-resident.

The Central Board of Direct Taxation (CBDT) takes care of the Direct Taxation in India. The CBDT is a division of revenue which is a part of the Ministry of Finance. It creates and regulates the direct taxes in India. It manages the direct tax law according to the rules of the Income Tax department. The revenue act of 1963 is utilized to govern the proceedings of CBDT.

The tax structure in India is divided amongst the local government, the state government and the central government. The central government charges taxes for income, service tax, central excise and custom duties. The state government charges taxes like professional tax, land revenue, VAT (value added tax), stamp duty and state excise. The civic (local) bodies charge taxes of properties and octroi. The capital gains, tax incentive, corporate and personal income tax also fall under this category.

In India, the following heads of income are taxed:

• Salaries: The payments received for rendering services, wages, pensions, fees, commissions, as well as the taxable amount of all prerequisites are covered under this head. In India, the employers are provided with standard rules for making these deductions. The deduction depends on the salary of the tax-payer.

• The income from a house or property: The income earned by renting out premises for residential or commercial purposes are taxed under this category. There are two prescribed cuttings under this head.

• The profits or gains from any business or profession: The revenue (above a certain limit) generated from business are permissible for deduction under the tax guidelines of India. The revenue expenditures are also taxed under this head following the taxation rules.

• The capital gains: The capital gains which arise from the transfer of the capital assets. The capital assets which are held for 36 months or less are short-term assets. However, the income from shares and securities of 12 months or more are considered to be long-term capitals. The long-term interests have a lower rate of interest.

• The income from other sources: The other sources of incomes cover any income which is not specified under any of the above heads. The expensed incurred while investing for this income is taken into consideration, and tax benefits are provided accordingly.

Changes in the direct tax slabs in India in the budget 2011-12: The exemption limit was increased from 1.6 lakhs to 1.8 lakhs. However because of inflation over 10 percent this has hardly benefited anybody. The minimum age to qualify as a senior citizen has been reduced from 65 to 60. Exemption limit for the senior citizens have been raised from 2.4 lakhs to 2.5 lakhs. The very senior citizens are exempt from paying taxes till the annual income of 5 lakhs. The salaried people need not file return for income tax if TDS is being deducted from their salary. If the tax is directly deducted from the salary then it is direct tax.

Analysis of the tax incidence on different investment tools:

Pays and Perks: The idea of bringing in the government provided accommodation as a part of the salary has been dropped. The perks of government staff will continue as before. The initial draft of the plan was confronted by the salaries class of government servants.

Income Tax Slabs: The draft states that there will be a 10 percent tax for the slab 1.8 lakhs to 10 lakhs, and 20 % for the others.

Home Loans: The government has planned to continue the major tax incentive on the housing loans. The tax payers will get benefit till the loan of 1.5 lakhs per annual but the rental income will be taxed.

Insurance and ULIPs: The new life insurance products do not have any tax proposed. These fall under the exempt-exempt-exempt rule. The new ULIPs issued after DTC can be taxed only after maturity. The existing ones will be relieved from tax only on midway withdrawal and maturity.

Equity Mutual Funds: The long-term capital gain tax on the unit of equity fund is proposed. It is planned to calculate the long-term gain on equity funds and equity only after the deduction of a certain percentage of the capital gains irrespective of any indexation.

Stocks Investment: In stock investment the difference between the long-term and short-term capital gains have been removed. These gains will be considered as income from the ordinary sources and will be taxed accordingly.

Provident Fund: All saving plans (inclusive of the PF’s) will be taxed or deducted at the time of withdrawal. The PPF (public provident fund), (GPF) government provident fund, and pension fall under the EEE benefit.

Furthermore, the pension products also received special facilities.

What is Direct Tax? The tax paid to the government directly by the tax-payer (like the Capital Gains Tax and the Income Tax) are called Direct Tax. In other words, it can be stated direct tax is taken away from ones salary or wages directly. However, the property tax which is imposed by the government is also called direct tax. In India, the collections which are clubbed under direct taxes are Banking Cash Transaction, Securities Transaction Tax, Personal Income Tax, Corporate Tax and Fringe Benefit Tax. The collections of Direct Taxes in India are increasing smoothly over the years.

 

Income Tax in India: The income earned during a financial year (April 1^st till March 31^st) is taxable as per the prescribed rates for that year. Here, a resident based tax paying system is followed. The taxes are charged keeping in view the residential status (not citizenship). The categories are resident, resident but not ordinarily resident, and nonresident. In case of Indian sourced income- all the three categories are taxable in India. However, for the foreign sourced income of only the residents are charged. The foreign sourced incomes of the resident but not ordinarily resident and the non-resident are not taxable in India. The Indian companies are always categorized under Indian resident. Moreover, the companies which are controlled from India are also categorized as Indian. The rest of the companies are non-resident.

 

The Central Board of Direct Taxation (CBDT) takes care of the Direct Taxation in India. The CBDT is a division of revenue which is a part of the Ministry of Finance. It creates and regulates the direct taxes in India. It manages the direct tax law according to the rules of the Income Tax department. The revenue act of 1963 is utilized to govern the proceedings of CBDT.

 

The tax structure in India is divided amongst the local government, the state government and the central government. The central government charges taxes for income, service tax, central excise and custom duties. The state government charges taxes like professional tax, land revenue, VAT (value added tax), stamp duty and state excise. The civic (local) bodies charge taxes of properties and octroi. The capital gains, tax incentive, corporate and personal income tax also fall under this category.

 

In India, the following heads of income are taxed:

• Salaries: The payments received for rendering services, wages, pensions, fees, commissions, as well as the taxable amount of all prerequisites are covered under this head. In India, the employers are provided with standard rules for making these deductions. The deduction depends on the salary of the tax-payer.

 

• The income from a house or property: The income earned by renting out premises for residential or commercial purposes are taxed under this category. There are two prescribed cuttings under this head.

 

• The profits or gains from any business or profession: The revenue (above a certain limit) generated from business are permissible for deduction under the tax guidelines of India. The revenue expenditures are also taxed under this head following the taxation rules.

 

• The capital gains: The capital gains which arise from the transfer of the capital assets. The capital assets which are held for 36 months or less are short-term assets. However, the income from shares and securities of 12 months or more are considered to be long-term capitals. The long-term interests have a lower rate of interest.

• The income from other sources: The other sources of incomes cover any income which is not specified under any of the above heads. The expensed incurred while investing for this income is taken into consideration, and tax benefits are provided accordingly.

 

Changes in the direct tax slabs in India in the budget 2011-12: The exemption limit was increased from 1.6 lakhs to 1.8 lakhs. However because of inflation over 10 percent this has hardly benefited anybody. The minimum age to qualify as a senior citizen has been reduced from 65 to 60. Exemption limit for the senior citizens have been raised from 2.4 lakhs to 2.5 lakhs. The very senior citizens are exempt from paying taxes till the annual income of 5 lakhs. The salaried people need not file return for income tax if TDS is being deducted from their salary. If the tax is directly deducted from the salary then it is direct tax.

 

Analysis of the tax incidence on different investment tools:

 

Pays and Perks: The idea of bringing in the government provided accommodation as a part of the salary has been dropped. The perks of government staff will continue as before. The initial draft of the plan was confronted by the salaries class of government servants.

Income Tax Slabs: The draft states that there will be a 10 percent tax for the slab 1.8 lakhs to 10 lakhs, and 20 % for the others.

Home Loans: The government has planned to continue the major tax incentive on the housing loans. The tax payers will get benefit till the loan of 1.5 lakhs per annual but the rental income will be taxed.

Insurance and ULIPs: The new life insurance products do not have any tax proposed. These fall under the exempt-exempt-exempt rule. The new ULIPs issued after DTC can be taxed only after maturity. The existing ones will be relieved from tax only on midway withdrawal and maturity.

Equity Mutual Funds: The long-term capital gain tax on the unit of equity fund is proposed. It is planned to calculate the long-term gain on equity funds and equity only after the deduction of a certain percentage of the capital gains irrespective of any indexation.

What is Direct Tax? The tax paid to the government directly by the tax-payer (like the Capital Gains Tax and the Income Tax) are called Direct Tax. In other words, it can be stated direct tax is taken away from ones salary or wages directly. However, the property tax which is imposed by the government is also called direct tax. In India, the collections which are clubbed under direct taxes are Banking Cash Transaction, Securities Transaction Tax, Personal Income Tax, Corporate Tax and Fringe Benefit Tax. The collections of Direct Taxes in India are increasing smoothly over the years.

 

Income Tax in India: The income earned during a financial year (April 1^st till March 31^st) is taxable as per the prescribed rates for that year. Here, a resident based tax paying system is followed. The taxes are charged keeping in view the residential status (not citizenship). The categories are resident, resident but not ordinarily resident, and nonresident. In case of Indian sourced income- all the three categories are taxable in India. However, for the foreign sourced income of only the residents are charged. The foreign sourced incomes of the resident but not ordinarily resident and the non-resident are not taxable in India. The Indian companies are always categorized under Indian resident. Moreover, the companies which are controlled from India are also categorized as Indian. The rest of the companies are non-resident.

 

The Central Board of Direct Taxation (CBDT) takes care of the Direct Taxation in India. The CBDT is a division of revenue which is a part of the Ministry of Finance. It creates and regulates the direct taxes in India. It manages the direct tax law according to the rules of the Income Tax department. The revenue act of 1963 is utilized to govern the proceedings of CBDT.

 

The tax structure in India is divided amongst the local government, the state government and the central government. The central government charges taxes for income, service tax, central excise and custom duties. The state government charges taxes like professional tax, land revenue, VAT (value added tax), stamp duty and state excise. The civic (local) bodies charge taxes of properties and octroi. The capital gains, tax incentive, corporate and personal income tax also fall under this category.

 

In India, the following heads of income are taxed:

• Salaries: The payments received for rendering services, wages, pensions, fees, commissions, as well as the taxable amount of all prerequisites are covered under this head. In India, the employers are provided with standard rules for making these deductions. The deduction depends on the salary of the tax-payer.

 

• The income from a house or property: The income earned by renting out premises for residential or commercial purposes are taxed under this category. There are two prescribed cuttings under this head.

 

• The profits or gains from any business or profession: The revenue (above a certain limit) generated from business are permissible for deduction under the tax guidelines of India. The revenue expenditures are also taxed under this head following the taxation rules.

 

• The capital gains: The capital gains which arise from the transfer of the capital assets. The capital assets which are held for 36 months or less are short-term assets. However, the income from shares and securities of 12 months or more are considered to be long-term capitals. The long-term interests have a lower rate of interest.

• The income from other sources: The other sources of incomes cover any income which is not specified under any of the above heads. The expensed incurred while investing for this income is taken into consideration, and tax benefits are provided accordingly.

 

Changes in the direct tax slabs in India in the budget 2011-12: The exemption limit was increased from 1.6 lakhs to 1.8 lakhs. However because of inflation over 10 percent this has hardly benefited anybody. The minimum age to qualify as a senior citizen has been reduced from 65 to 60. Exemption limit for the senior citizens have been raised from 2.4 lakhs to 2.5 lakhs. The very senior citizens are exempt from paying taxes till the annual income of 5 lakhs. The salaried people need not file return for income tax if TDS is being deducted from their salary. If the tax is directly deducted from the salary then it is direct tax.

 

Analysis of the tax incidence on different investment tools:

 

Pays and Perks: The idea of bringing in the government provided accommodation as a part of the salary has been dropped. The perks of government staff will continue as before. The initial draft of the plan was confronted by the salaries class of government servants.

Income Tax Slabs: The draft states that there will be a 10 percent tax for the slab 1.8 lakhs to 10 lakhs, and 20 % for the others.

Home Loans: The government has planned to continue the major tax incentive on the housing loans. The tax payers will get benefit till the loan of 1.5 lakhs per annual but the rental income will be taxed.

Insurance and ULIPs: The new life insurance products do not have any tax proposed. These fall under the exempt-exempt-exempt rule. The new ULIPs issued after DTC can be taxed only after maturity. The existing ones will be relieved from tax only on midway withdrawal and maturity.

Equity Mutual Funds: The long-term capital gain tax on the unit of equity fund is proposed. It is planned to calculate the long-term gain on equity funds and equity only after the deduction of a certain percentage of the capital gains irrespective of any indexation.

What is Direct Tax? The tax paid to the government directly by the tax-payer (like the Capital Gains Tax and the Income Tax) are called Direct Tax. In other words, it can be stated direct tax is taken away from ones salary or wages directly. However, the property tax which is imposed by the government is also called direct tax. In India, the collections which are clubbed under direct taxes are Banking Cash Transaction, Securities Transaction Tax, Personal Income Tax, Corporate Tax and Fringe Benefit Tax. The collections of Direct Taxes in India are increasing smoothly over the years.

 

Income Tax in India: The income earned during a financial year (April 1^st till March 31^st) is taxable as per the prescribed rates for that year. Here, a resident based tax paying system is followed. The taxes are charged keeping in view the residential status (not citizenship). The categories are resident, resident but not ordinarily resident, and nonresident. In case of Indian sourced income- all the three categories are taxable in India. However, for the foreign sourced income of only the residents are charged. The foreign sourced incomes of the resident but not ordinarily resident and the non-resident are not taxable in India. The Indian companies are always categorized under Indian resident. Moreover, the companies which are controlled from India are also categorized as Indian. The rest of the companies are non-resident.

 

The Central Board of Direct Taxation (CBDT) takes care of the Direct Taxation in India. The CBDT is a division of revenue which is a part of the Ministry of Finance. It creates and regulates the direct taxes in India. It manages the direct tax law according to the rules of the Income Tax department. The revenue act of 1963 is utilized to govern the proceedings of CBDT.

 

The tax structure in India is divided amongst the local government, the state government and the central government. The central government charges taxes for income, service tax, central excise and custom duties. The state government charges taxes like professional tax, land revenue, VAT (value added tax), stamp duty and state excise. The civic (local) bodies charge taxes of properties and octroi. The capital gains, tax incentive, corporate and personal income tax also fall under this category.

 

In India, the following heads of income are taxed:

• Salaries: The payments received for rendering services, wages, pensions, fees, commissions, as well as the taxable amount of all prerequisites are covered under this head. In India, the employers are provided with standard rules for making these deductions. The deduction depends on the salary of the tax-payer.

 

• The income from a house or property: The income earned by renting out premises for residential or commercial purposes are taxed under this category. There are two prescribed cuttings under this head.

 

• The profits or gains from any business or profession: The revenue (above a certain limit) generated from business are permissible for deduction under the tax guidelines of India. The revenue expenditures are also taxed under this head following the taxation rules.

 

• The capital gains: The capital gains which arise from the transfer of the capital assets. The capital assets which are held for 36 months or less are short-term assets. However, the income from shares and securities of 12 months or more are considered to be long-term capitals. The long-term interests have a lower rate of interest.

• The income from other sources: The other sources of incomes cover any income which is not specified under any of the above heads. The expensed incurred while investing for this income is taken into consideration, and tax benefits are provided accordingly.

 

Changes in the direct tax slabs in India in the budget 2011-12: The exemption limit was increased from 1.6 lakhs to 1.8 lakhs. However because of inflation over 10 percent this has hardly benefited anybody. The minimum age to qualify as a senior citizen has been reduced from 65 to 60. Exemption limit for the senior citizens have been raised from 2.4 lakhs to 2.5 lakhs. The very senior citizens are exempt from paying taxes till the annual income of 5 lakhs. The salaried people need not file return for income tax if TDS is being deducted from their salary. If the tax is directly deducted from the salary then it is direct tax.

 

Analysis of the tax incidence on different investment tools:

 

Pays and Perks: The idea of bringing in the government provided accommodation as a part of the salary has been dropped. The perks of government staff will continue as before. The initial draft of the plan was confronted by the salaries class of government servants.

Income Tax Slabs: The draft states that there will be a 10 percent tax for the slab 1.8 lakhs to 10 lakhs, and 20 % for the others.

Home Loans: The government has planned to continue the major tax incentive on the housing loans. The tax payers will get benefit till the loan of 1.5 lakhs per annual but the rental income will be taxed.

Insurance and ULIPs: The new life insurance products do not have any tax proposed. These fall under the exempt-exempt-exempt rule. The new ULIPs issued after DTC can be taxed only after maturity. The existing ones will be relieved from tax only on midway withdrawal and maturity.

Equity Mutual Funds: The long-term capital gain tax on the unit of equity fund is proposed. It is planned to calculate the long-term gain on equity funds and equity only after the deduction of a certain percentage of the capital gains irrespective of any indexation.

Stocks Investment: In stock investment the difference between the long-term and short-term capital gains have been removed. These gains will be considered as income from the ordinary sources and will be taxed accordingly.

Provident Fund: All saving plans (inclusive of the PF’s) will be taxed or deducted at the time of withdrawal. The PPF (public provident fund), (GPF) government provident fund, and pension fall under the EEE benefit.

Furthermore, the pension products also received special facilities.

 

Stocks Investment: In stock investment the difference between the long-term and short-term capital gains have been removed. These gains will be considered as income from the ordinary sources and will be taxed accordingly.

Provident Fund: All saving plans (inclusive of the PF’s) will be taxed or deducted at the time of withdrawal. The PPF (public provident fund), (GPF) government provident fund, and pension fall under the EEE benefit.

Furthermore, the pension products also received special facilities.

 

Stocks Investment: In stock investment the difference between the long-term and short-term capital gains have been removed. These gains will be considered as income from the ordinary sources and will be taxed accordingly.

Provident Fund: All saving plans (inclusive of the PF’s) will be taxed or deducted at the time of withdrawal. The PPF (public provident fund), (GPF) government provident fund, and pension fall under the EEE benefit.

Furthermore, the pension products also received special facilities.

 

Can Budget 2011 strike a balance between supply and demand?

Its February again, time for the Union Budget! As per Article 112 of the Indian Constitution, the Union Budget of India, that is the annual budget of the country, is also known as the Annual Financial Statement. The budget is required to be approved and passed by the Parliament prior to its coming into existence on 1^st of April, which happens to be the beginning of India’s financial year. Like every other year, the Union Finance Minister of India, Mr. Pranab Mukherjee will present the budget for the year 2011, on the last working day of the month of February

Although, the crucial budget document is prepared in complete privacy, yet each one of us is definitely interested to get an overview about the whole process and have an idea of the India Budget Expectations 2011. Some of you might also have started anticipating India’s Budget Results, 2011; isn’t it? Can Budget 2011 strike a balance between supply and demand? Let’s see!

There could be several reasons and thought processes that goes beyond our expectations from the Union Budget for 2011! Economic growth and development has been noticed in various sectors following the many proposals and initiatives mentioned in the Union Budget of India in the financial year of 2010-11, for the year 2010. This year the budget expectations are quite high unlike few years back, wherein the country’s economy was still reeling under the economic depression that was created by the economic meltdown, globally. Since the Indian Economy is slowly getting back to its track, it can be expected that the budget will bring something beneficial to us. It is being expected that this time, the budget would lay stress on controlling price hikes, controlling the inflation rate, cutting down on fiscal deficit etc.

Straightening up of the PDS and do away with the outflows!

In order to achieve and all-round development of the country and its people, the government should ensure that everyone has access to the essential and the very fundamentals of life such as health, food, education, infrastructure, and security. This calls for the growth and development of the skills in the country. The government has taken up several measures on this front such as the formation of the National Skill Development Co-ordination Board, Skill Development Mission, and NREGA (National Rural Employment Guarantee Act); now the need however is to ensure the effective and proper realization of the plans. Social welfare must count as the first priority for the Government, always.

Inflation – An intense and a burning reality!

Inflation is everywhere! So it’s quite possible that we gate to see its mention in several policy decisions in order to initiate some corrective measures. It could be anything from the usage of sophisticated techniques of farming, to monetary policy or even the budgetary policies that are framed to control the augmented pricing pressures.

As the Government commits towards the controlling of food inflation, the Finance Minister of India might be expected to unleash some of the major measures in the Budget 2011. This might include the opening of distribution and procurement centers for food grains, promote more investment in agri infrastructure, increase the expenditure on irrigation to enhance the overall productivity of the farm sector.

Simplification and Systematization of the Tax System!

Pranab Mukherjee has really done a good job by extending the tax slabs. This has helped people, specially the salaried persons immensely. The high limit of tax-exemption also has brought extra tax revenues for the exchequer since it doesn’t encourage the suppressing of the unaccounted money. There is still a possibility of improvement at the lower end income group, on the present no-tax limit for up to income of Rs.1.6 lakh.

The deadlock on GST (Goods and Service Tax) should not be extended any further by the Government of India. The Government should rather take initiatives to introduce the new tax system from 1^st April, 2012. This would allow the current players to plan their ventures thereby including the cost of operation. It is highly recommended that the Government should cut down on CST that is the Central Sales Tax rate should be cut down to minimum 1% with effect from April 1, 2011.

Deregulation of the Fuel price!

Last year, the price of petrol was deregulated by the UPA government in order to shrink the fiscal deficit of the country, thereby helping the oil marketing companies to reduce their losses on the selling of fuel at subsidized rates.

Is the Government now thinking of deregulating the price of diesel now that constitutes a major share of fuel subsidy bills?

Retail FDI – Tighten Supply Chain!

The recent increase in the price of food has been the result of hoarding up of stock by the intermediaries or because of the supply shortage in the farm production. In order to manipulate the price, FDI can definitely support the government to de-bottleneck the chain of supply that is hindered by the not so effective distribution channel.

Focus on Infrastructure Growth!

A sustained infrastructural growth and development is essential in order to provide that momentum to India’s economic activities, thereby achieving optimum utilization of resources. In order to promote the joint ventures of the public and the private sector and the entry of FDI or Foreign Direct Investment into the infrastructural domain, an appropriate, genuine, organizational, and reliable model must be introduced. The Government should aim at increasing the Gross Domestic Product (GDP). It should take initiatives to plan and develop large amount of corpus for a long term towards the development of infrastructure by the use of debt funds.

Cut down on Excise and Service Tax!

Last year, the excise duty was raised to 10% by the Government, on the non-oil products for withdrawing stimulus, thereby creating sources for the funds that would cut down on the extensity of the fiscal deficit condition. Owing to inflation and rising cost of commodities, India should try and cut down on the Service tax and the excise duty. Corporate tax rates should also be brought down.

Education – Learn as you grow!

Education and Growth can be said to be the two sides of the same coin! While Education results in higher employment, this is turn paves the way for growth and development of the country. In the past few years, the education sector has witnessed several reform measures both at higher as well as primary level of education.

The implementation of the PPP model that is the public-private partnership model can prove very beneficial for the education sector and help in bringing success and sustainable momentum in the long run. The Government needs to fund the projects and encourage and trust the private sector for the final delivery of the models.

Agriculture!

For ensuring the economic growth and development of the country, it is important that India’s agriculture sector grows at a fast pace. Many people in the country still suffer from food insecurity and malnutrition. The Indian Government of India already undertook the National Food Security Mission (NFSM) in the year 2008 but it was not properly supported. The Government should now take the responsibility to support the mission properly for eradicating the malnutrition from the nation. One of the best possible ways would be to combine the mission with other flagship projects such as NREGA etc for reliving the underprivileged people in India, especially those in villages, from nutrition problems.

Since agriculture contributes immensely to the GDP of India, the Government, this year is expected to focus on the problem of rising prices. Higher should be the aim of the government. Favorable policies in the agro input sector, etc would surely help in utilizing the business potentials, in the future.

Indian Railways!

Couple of years back, India’s Railway Department had managed to bring around a good financial turnaround without any hike in the passenger fares. But this year, estimates say that the Indian Railways might miss out on the target for the year 2010-11. In the year 2010, Railways incurred a huge loss of Rs. 4000 crore. This was mainly because of the negative impacts on freight earnings and the setback on passenger earnings owing to the Naxal activities in several states of India.

The question that crops up in this situation is that will India’s Railway Department suffer a setback this time?

Information Technology!

The IT industry in India has shown amazing resilience during the period of recession.  The demand for the IT Services exports is being expected to go on with countries like Europe and US recovering and also due to the increase in discretionary that the consumers spend on IT infrastructure. As per the reports by NASSCOM, it is expected that the exports would dominate the IT industry in India that comes to about USD 59 billion out of USD 76 billion in the software industry.

However, there are certain concerns and fear as well for the IT sector such as slower recovery that the developed markets of US etc, high wage inflation and attrition, pricing pressure owing to competition in the domestic markets and protectionist stance on the part of the Government of US etc. With such a scenario in the backdrop the IT industry must be eagerly awaiting for the proposal in the budget, by the Government.

Construction!

Construction & Infrastructure contributes to about 8-10% in the GDP of India. For an overall development of the country, the importance and role of infrastructure is not unknown to us. However, a big gap has been created in the targets that have been set up for the infrastructure industry and the achievements. This has been due to the slow functioning of the several related sectors, shortfall in the awarding projects, funding potential shortfalls, time and cost overruns in the construction phase etc. Government should now start addressing these problems in the Construction and Infrastructure industry. This year, as per the signals from the Finance Minister, the infrastructure sector is expected to restrict itself from its expectations on tax relief and tax breaks, thereby focusing on how to raise capital and engage in project development.

FMCG!

The FMCG sector saw a series of new launches as well as acquisitions in the year 2010, which contributed phenomenally to the sector with a growth of about 15%. The GDP growth was estimated to be 8.75% in FY11. Hence the sector is expected to continue this way, although it will be faced with several challenges such as irregular monsoon and inflation. After the harvest of the Rabi crop, we can expect the situation to get reversed. With a shift in demand from need to want, it is being expected that the categories associated with home care and personal care would grow at a rate of 15% and 20% correspondingly, in CY11.

Telecom Services & Equipments!

At the moment, the telecom industry in India is characterized by high operating cost, stagnant revenue, huge debt, dwindling earnings, regulatory uncertainty etc. There has been a very slow revenue growth at about 0.4%. The launch of 3G and MNP might act as the immediate momentum. With key metrics declining at an abating rate, it is expected that the telecom sector would do better in FY12E in comparison to FY11E. Companies having foreign market exposure might experience higher growth. During FY12, while the telecom stocks may stay subdued, but at the end of FY12E we might witness the narrowing down of discounts in the broader markets.

Yet Another Petrol Price Hike for India!

States and Union Territories in India

 

Yet Another Petrol Price Hike for India! Once again the price of petrol has gone up! With the changing scenario, the Indian Economy is concentrating on new developments and evolutions for decontrolling the prices. There has been recent increase in the price of petrol. The news channels, newspapers, news portals, political parties are debating and discussing on the advantages and disadvantages of this price hike. There has been a shift from the democratic ideology, which was until now strongly influencing the policies of the Indian economic policies. So an important question that comes into picture is, has the definition of the ‘common people’ gone for a change or has common people gone more elite? Are common men prepared to face the decontrol or there is the need for India, to protect the people from freeing of prices?

In the war raged between inflation and the Indian Government, the former seemed to won on 15^th of January, 2011, as the price of petrol and fuel witnessed a rise. Following this, it has been decided by many oil companies in India, that the price of fuel would be increased by 2-4% since oil prices have soared up globally.

Although, the government of India is trying to battle out inflation in many sections, however, the state oil companies have decided to increase the price of petrol and aviation fuel by 4 and 2% respectively. Apart from this, the Aviation Turbine Fuel will also increase by about 2% that comes to Rs.48, 764 per kilolitre, since January 16^th 2011.

3 of the state oil companies, namely the Bharat Petroleum, Indian Oil and Hindustan Petroleum, will increase the petrol price from Rs.2.50 to Rs.2.54 per liter. The hike in price of petrol happened owing to the fact that the crude prices at the international level reached about the mark of $100 per barrel. This rose has been the highest in past 2 years.

Pranab Mukherjee, the Union Finance Minister stated on 15^th of January, 2011, that the state oil companies needed to increase the price of petrol owing to the rice of crude oil prices in the global market. To quote him-

“Petrol prices have been deregulated and it has been decided that when the prices of the petrol would increase in the international market, the oil companies would adjust the prices,”…..Now the price of petroleum crude has reached almost $90 per barrel (159 litres). So, prices have been increased (in India),”.

Just 2 days after the petrol price hike in India, Murli Deora, the Petroleum Minister said on January 17^th, that there was no other alternative but to go for the hike since the state oil companies were incurring huge losses.

If the price of petrol stands at Rs 58.90, the break up of cost as calculated by the Indian Government is as follows:

• Basic Price: Rs 28.93
• Education Tax: Rs 0.43
• Dealer commission: Rs 1.05
• Excise duty: Rs 14.35
• VAT: Rs 5.5
• Petrol Custom: Rs 1.54
• Crude Oil Custom duty: Rs 1.1
• Transportation Charge: Rs 6.00
• Total price: Rs 58.90

Political Parties and Leaders on Agitation: Will That Help?

In regard to the petrol and fuel price hike, India at present is witnessing agitation on the part of the Political Parties and Leaders. But will that help? The Left Front Parties said on 15^th of January, that if the United Progressive Alliance (UPA) government allows a hike in the price of petrol, they would protest against this, intensely.

Biman Bose, politburo member of the Communist Party of India-Marxist (CPI-M) even asked the citizens to raise a voice against this decision of the Government, which is anti-people. To quote Biman Bose-

“We hear prices of diesel will go up. The petro price increase will raise the transportation cost of essentials like foodgrains and vegetables, thus making them dearer,”.

Debabrata Biswas, the general secretary of All India Forward Bloc (AIFB) stated that that hike was the result of wrong policies on behalf of the UPA government. To quote Debabrata Biswas, in front of the media-

“With the government having decontrolled petrol prices, the price of fuels is increasing by leaps and bounds. We will definitely agitate against it,”.

Kshiti Goswami, Minister of state Public Works Department and also the Senior Revolutionary Socialist Party (RSP) leader was heard saying that the issue of hike in petrol price is definitely a reason for concern. To quote Kshiti Goswami

“We have been protesting against the escalating price of essentials for long. People’s miseries will only increase. All left parties will sit together and decide on the nature of our agitation,”.

All the opposition parties, from Bharatiya Janata Party (BJP) to the Left Front protested against the price hike. CPI-M, the Communist Party of India-Marxist referred to the decision of petrol price hike as a “cruel blow”.

To quote Prakash Karat, the CPI-M general secretary and politburo member

“They should immediately regulate the prices of petrol and diesel, reverse the policy of de-regulation because that is one of the prime reasons that is pushing up prices,”.

The Communist Party of India-Marxist (CPI-M) today termed the decision to increase the price of petrol as a “cruel blow”.

Shahnawaz Hussain, spokesperson of Bharatiya Janata Party (BJP) said that “No item of daily consumption – be it onions or tomatoes – is affordable today.”

Congress, heading the ruling UPA that is United Progressive Alliance government, too admitted that Government needs to take responsibility by stepping forward by limiting the price rise and lessening down the burden of the common citizen.

The Trinamool Congress and Nationalist Congress Party (NCP) New Delhi, said on January 17^th, that the ruling UPA (United Progressive Alliance) government should consult their allies before reaching any crucial decisions on the price hike.

D.P. Tripathi, NCP spokesperson, said to the media that “The allies should be consulted. There should be a coordination mechanism among alliance partners,”. He also stressed on the fact that allies must meet each other frequently that helps in dealing and sorting out different contentious issues, thereby ensuring better coordination. He said “The more you meet the better.” He added that special attention should be given to this issue, since the common man will be the one to face the daily problems.

The Trinamool Congress, another key ally, had also on Sunday expressed concern over the petrol price hike and complained that it was not consulted on the issue. The party had said that a meeting of allies should be held every three months to discuss the ideas of different political parties.

Sudip Bandopadhyay, MP of another important ally of the ruling party, Trinamool Congress commented that their party would protest against the price hike in petrol and the subsequent increase in prices of other items and commodities, in Kolkata and different parts of the state of West Bengal.

CITU also went for a 3 hour shutdown of transport from 12P.M to 3 P.M in the state of West Bengal.  This was held as a protest-against the rise in petrol prices.

Condemning the increase in petrol prices, J. Jayalalithaa, AIADMK chief said the increase in price happens to be one of the causes for inflation that the entire country is going through. To quote Jayalalithaa-

“In the last one month, petrol prices have been increased by Rs.2.55 per litre. The prices have gone up by Rs.15 per litre in the last one year.” “If the situation continues, people will have to travel on bullock carts and cycles. The central and the state governments are taking the country back to the stone age,”. She also added that the two-wheelers and auto rickshaw users along with the industries will suffer severely owing to this hike.

Is there Any Solution to This?

January 11, few days before the price hike in petrol, the Honorable Prime Minister of India, Dr. Manmohan Singh held a meeting with the senior ministers and officials, in order to check on the rising price of fuels that has resulted in the food inflation of India to soar by more than 18%. However, even after the meeting, no measures were declared.

To quote one of the officials present at the meeting-

“A host of issues were discussed. Some inputs have been sought. There will be another meeting in a day or two,”.

The meeting was attended by Finance Minister Pranab Mukherjee, Home Minister P. Chidambaram, Agriculture Minister Sharad Pawar, Cabinet Secretary K.M. Chandrasekhar and Planning Commission Deputy Chairman Montek Singh Ahluwalia.

Although the Central bank and the Government of India, have initiated many measures, to put a check on the inflation, yet the measures were of no use since the price of important items and commodities continued to rise without any indication to slip down. To add to the worries of the Government, Pakistan banned the export of onion through the land route.

According to the Federation of Indian Chambers of Commerce and Industry (FICCI), the monetary policies to control the inflation rate have failed to work. There has been mismanagement in the supply of food, which has resulted in the creation of a wide gap between retail prices and the farm gate.

According to Amit Mitra, a well-known business economist, the secretary general of industry lobby- “Food prices have once again gone up and this shows that monetary policy has become an ineffective tool for containing food inflation,”.

Who Are the Sufferers?

The decision by the Government of India, to increase the cost of fuel and petrol, will result in high inflation, badly and heavily affect the working class, thereby provoking unrest. The higher cost of cooking, lighting and high transport rates will affect millions of common people, immediately and immensely. Nor only this, the cost of other important commodities and products will also increase.  No matter how much the media debates and discusses, no matter how the political parties agitate, yet it will be the common man who will be the sufferers. The ultimate victim would surely be the citizens. On one hand as the rice in price of petrol and the associated products, made them costlier for the common people, thereby taking a heavy toll on their monthly budget, on the other, it sparked off several impacts on the daily life.

 

 

 

 

Indian Aviation Industry: How high is India flying?

Aviation Industry in India

The Indian Aviation Industry is among the world’s fastest growing industries. It has undergone huge transformation following the liberalization of the aviation industry in India. Once owned by the Government, the aviation sector of India is now privately owned with full service airways and affordable carriers. Almost 75% of the domestic aviation sector consists of the private airlines. Earlier viewed as a costly means of transportation, afforded by few, air travel is now cheap and can be availed by many.

Origin of Indian Aviation Sector

The origin of the Indian aviation industry dates back to 1912 when the 1st flight from Karachi to Delhi commenced in collaboration with the Indian State Air Services and Imperial Airways. However, the industry got its real start by JRD Tata through his launch of Tata Airline, in the year 1932. JRD Tata was the 1^st Indian, who got an A-Licence. In the year 1946, Tata Airlines was converted into Air India. Soon after the independence, India was having 9 airline companies providing passenger and cargo services. These airline companies were Tata Airlines, Air service of India, Deccan Airways, Indian National Airways, Ambica Airways, Orient Airways, Bharat Airways and Mistry Airways.

In the first half of 1948, a joint sector company was set up by the Indian Government, in collaboration with the Air India International Ltd and Air India. Through the Air Corporations Act, 1953, 9 airlines were nationalized. Indian Airlines Corporation (IAC) was set up for serving the domestic passengers while Air India International (AI) was set up to cater for the international passengers.

In 1990, open-sky policy was adopted by the government whereby air taxi- operators were allowed to operate their flights from any of the airports, decide their fares for cargo and passenger services and the flight schedules. In 1994, the monopoly enjoyed by AI and IA were stopped by the Government and private operators started providing air transport facilities and services. By the year 1995 many airlines have already started providing services, such as NEPC Airlines, East West Airlines, Jet Airways Sahara, Jagsons Airlines, ModiLuft Airlines, Continental Aviation, and Damania Airways.

Aviation Industry in India saw an important change in the year 2003, when budget flying was introduced by Air Deccan through the lowering down of fares to about 17% in comparison to what the other airlines charged. Air Deccan was joined in this process by Go Airways, Spice Jet, and Kingfisher Air. Thus new trends were introduced in the aviation market, by these budget airlines.

Growth of Indian Air Network

Continued growth has been shown by the aviation industry in India, in recent years. In the year 2008, it grew at a CAGR of about 18% that accounts for US$ 5.6. In August 2007, 3.67 million passengers availed the services of domestic airlines, which was about 26% more in comparison to the previous year. It is estimated by the Centre for Asia Pacific Aviation (CAPA) that the domestic traffic will grow up by almost 25% to 30% by the year 2010 while the international traffic is supposed to go up by 15%.  By 2010, 100 million passengers will avail the air network service in India. In the year 2010, an investment of US$ 9 billion has been incurred by the Aviation Ministry with the aim to modernize the existing airports.

In June, 2010, the market leader was the Jet Airways with a share of 26.5 %. Next in line is Kingfisher Airlines with 21%, and Air India with 16.9%. Hyderabad International Airport ranks among the top 5 as per the annual survey of the Airport Service Quality (ASQ) passengers. New airports and terminals are being developed. The economic slowdown witnessed by the aviation sector in 2008 owing to fall in number of passengers coupled with high fuel cost and severe competition from numerous other airlines, assumed a gradual growth from 2009. At present the growth rate of international and domestic travel has exceeded 25%, which is the world’s highest.

Recent Developments in Aviation Sector

• Modernization of the airports
• Growth and development in the MRO segment
• Policy on Airport security
• Policy on the merchant airports
• Augmentation of fleet
• Foreign equity involvement

Future of Indian Aviation Industry

The future aviation industry is estimated to grow at a rate of 25 % till the year 2010. Also, about 100 million passengers are expected to be handled by the airline industry, which is at present 34 million passengers. By the year 2020, about 280 million passengers are expected to be handled by the Ministry of Civil Aviation.

Problems Faced by Aviation Industry

Indian Airline Industry is beset with many problems, which consist of high price of aviation turbine fuel (ATF), scarcity of skilled labor, quick fleet expansion, rise in labor costs and price competition among the players. However, the major issue that poses a challenge for the airline industry in India is infrastructure limitation that requires to be rapidly upgraded.

Several steps have already been taken up. Many airports have been recently privatized. 2 greenfield airports will be set up at Bangalore and Hyderabad. Investments are being made in different department such as pilot training, aircraft maintenance, and air cargo services.

Role of Indian Aviation Industry in GDP

Aviation industry has played a phenomenal role in the Gross Domestic Product (GDP) of India. The GDP of India has increased over 8% following the growth of the Indian economy. With large number of domestic and international airlines operating in India, the country has become one of the most sought after location for commercial and trade activities.

Aviation Industry- Upcoming Challenges

With the growth and development, comes challenges and the aviation sector is no exception. The severe challenges posed against aviation industry are that the industry has to deal with safety concerns, decline in returns, stiff competition, rise in fuel cost, regional connectivity, improper exploitation of trunk routes, soaring input costs and many more.

Employment Opportunities in Indian Aviation Industry

The Indian aviation industry has a good scope for employment opportunities. With a requirement of large number of pilots, cabin crew members and many more, the industry seems to be prosperous one. The increase in airlines has generated great job opportunities, some of which are:

• Commercial pilot
• Air cargo pilot
• Co-pilot
• Cabin crew
• Cabin safety instructor
• Air traffic controller
• In-flight base managers
• In-flight managers
• Cabin services instructor
• Training instructor
• Cabin crew
• Maintenance controllers
• Aircraft maintenance engineering
• Cargo officers
• Quality control manager
• Guest service agent
• Ground staff

Aviation Institutes in India

• Ahemdabad Aviation & Aeronautics Ltd Aviation School

AAA Hangar, Old Terminal Airport,

Ahmedabad, – 380003, India

• Frankfinn Institute of Air Hostess

Best Buliding, ‘A’ Wing, 5th Floor,

S.V. Road, Opposite Andheri Railway Station, Andheri(W)

Mumbai 400058

Tel No.: 022-26706039/40/41

• Indian Aviation Academy

7/8 Rushabh Complex, Opp. Fun Republic Cinema,

Off New Link Road, Oshiwara, Andheri (W)

Mumbai 400053

Tel.: 26740041/26749058

• International Airlines Academy

4-H, Mount Chambers, 758 Mount Road,

Opp. TVS, Chennai-2 (T.N.)

• Air hostess academy

AHA HOUSE

A-5, Kailash Colony, New Delhi -110048

Tel : 011-46566835 – 43, 46566848

• Indian Institute of Aeronautics

Delhi

• Bharat Institute of Aeronautics

Patna

• Indian Institute of Aeronautics Science

Jamshedpur

• Indian Institute of Aeronautical Science

Kolkata

• Avalon Aviation Academy

Aptech House

• Aero-Sports

Opposite Devamatha Church, Shoranur Road

Thrissur – 680022

Phone- 0487-3252449

• American Flyers (India) Pvt.Ltd

37, Virwani Industrial Estate, Western Express Highway,

Gurgaon – 400063

Phone- 022-28748042

• Amritsar Aviation Club

Raja Sansi Airport

Civil Aerodrome, Amritsar

Phone- 0183-2214044

 

 

 

 

 

 

Major Car Manufacturers in India

Major Car Manufacturers Map of India

Despite the economic slowdown, the total automobile production has surged in the FY 2008-09 from 10.87 million vehicles in FY 2007-08 to 12.17 million vehicles. The three major car manufacturers in India and their launches are mentioned as under:

Maruti Suzuki

Maruti Udyog Limited (MUL) started its operation in 1983 and since the FY 2004, the firm has been manufacturing over 6 million cars every year. Maruti cars are traded at the cost of 500,000 cars every year and are believed to have changed the scenario in Indian auto market drastically. Some of the major launches of the firm are: Maruti Suzuki Swift, Maruti Alto, Maruti Grand Vitara, Maruti DZire Sedan Version, Maruti Grand Vitara Sports Utility Vehicle, Maruti Wagon-R, Maruti Suzuki SX4, Maruti Zen Estilo, etc

Tata Motors

TELCO (TATA Engineering and Locomotive Company) or Tata Motors Limited is a transnational car making firm with its head office based in Mumbai. Initiated in 1945, Tata Motors takes pride of being the first firm to be registered in the New York Stock Exchange. It is India’s biggest firm in context of producing both commercial and passenger vehicles. It has renowned associates in the form of Land Rover and Jaguar and has set a trademark in the market by launching the world’s cost-effective and cheapest car – Nano. Other major launches of Tata Motors are: Tata Indigo CS, Tata Sumo Victa, Tata Sumo Grande, Tata Indica V2, Tata Xenon XT, Tata Indigo Marina, Tata Indica Vista, etc.

Mahindra and Mahindra

Established in 1945, Mahindra & Mahindra is a division of the US $6.5 billion worth Mahindra Group. The firm was the first one to launch Mahindra Scorpio from the SUV sector, which was later awarded as “Best Car of the Year” by BBC on Wheels. The car maker hosts a range of around 25 models along with a powerful chain of 275 units across India. Some of the major car launches of Mahindra and Mahindra are: Mahindra Bolero, Mahindra Maxx Maxi Truck, Mahindra Scorpio mHawk, Mahindra Scorpio Getaway, Mahindra Xylo, Mahindra-Renault Logan, etc.

Major Hydro Power Plants in India

Map of Hydro Power Plants in India

India was the first nation to establish hydro-electric power plants. The foremost Hydro Power Plants in India were set up at Shimsha in 1902 and Darjeeling in 1898. The installed competence of Indian hydro power plants in the FY 2008-09 was 36877.76 approximately.

This is a list of major hydro power plants in India.

• Srisailam Dam – Located in Andhra Pradesh with a capacity of 1,670 MW
• Nagarjunasagar – Located in Andhra Pradesh with a capacity of 965 MW
• Sardar Sarovar – Located in Gujarat with a capacity of    1,450 MW
• Baspa-II – Located in Himachal Pradesh with a capacity of 300 MW
• Nathpa Jhakri – Located in  Himachal Pradesh with a capacity of 1,500 MW
• Bhakra Dam– Located in Himachal Pradesh with a capacity of 1,325 MW
• Dehar – Located in    Himachal Pradesh with a capacity of 990 MW
• Baira Suil – Located in Himachal Pradesh with a capacity of 180 MW
• Chamera-I – Located in Himachal Pradesh with a capacity of 540 MW
• Chamera-II – Located in Himachal Pradesh with a capacity of 300 MW
• Pong – Located in     Himachal Pradesh with a capacity of 396 MW
• Uri Hydroelectric Dam – Located in Jammu & Kashmir with a capacity of 480 MW
• Dulhasti – Located in Jammu & Kashmir with a capacity of 390 MW
• Salal    – Located in Jammu & Kashmir with a capacity of 690 MW
• Sharavathi – Located in Karnataka with a capacity of 1,469 MW
• Kalinadi – Located in Karnataka with a capacity of 1,225 MW
• Idukki – Located in   Kerala with a capacity of 780 MW
• Omkareshwar – Located in  Madhya Pradesh with a capacity of 520MW
• Indira Sagar – Located in Maharashtra with a capacity of 1,000 MW
• Loktak – Located in  Manipur with a capacity of  105 MW
• Koyna – Located in   Maharashtra with a capacity of 1,920 MW
• Rangeet – Located in Sikkim with a capacity of    60 MW
• Teesta-V – Located in Sikkim with a capacity of    510 MW
• Tanakpur – Located in Uttarakhand with a capacity of   120 MW
• Dhauliganga-I – Located in Uttarakhand with a capacity of 280 MW
• Loharinag – Located in Uttaranchal with a capacity of    600 MW

Indian Leather Industry fostering employment and expansion

Indian Leather Industry Map

After liberalization, the Indian market opened plethora of opportunities for Leather Industry in India. India is all set to gain a massive share of international market, with conglomerates seeking out for new funding alternatives. Renowned and top-notch brands from Europe and US are importing their products in Indian markets and are laying strategies to supply leather and leather goods from India.

India which enjoys 3% of international share in leather trade is directly compared to China which possess 17% extra market share. Considering the massive potential of the Indian Leather Industry and its role as an economic indicator, the Indian government has been implementing important steps to endorse the speedy expansion of the sector.

With above the mark export revenues, steady expansion and taking pride of being the tenth biggest manufacturing industry in India, Indian Leather Industry employs around 2.7 million individuals under it besides providing job to underprivileged section of the society and women.

The Leather Industry possesses a vital place in Indian financial system considering its considerable export revenues, service potential and development. Indian Leather products feature among the top ten export drawers in Indian manufacturing industry.

The Indian Leather industry falls under organized sectors and produces garments, Leather merchandise besides tanning and finishing, with major manufacturing hubs in Chennai, Kanpur and Kolkata.

Software Parks in India

Information Technology is one of the expanding sectors in the Indian economy. The vibrant technological developments in the IT sector has controlled the utilization of IT products and equipments in every industry and has emerged as one of the major ingredients of the human attempt.

Ministry of Information Technology, Government of India has acknowledged the prospective of Software exports and devised the software Technology Park Scheme (STP) all over the country. The Software Parks in India are independent societies, which endorse software exports and facilities by offering conductive ambiance & infrastructure services. Basically STP play a major role of a promoter, catalyst, Infrastucture supplier and executes different regulatory activities.

The various software parks in India are:

• Bangalore STP – for endorsing computer software exports
• Bhubaneswar STP – for endorsing and assisting software exports
• Calcutta STP – for endorsing and assisting software exports
• Delhi Taskforce – squad for preparing Information Technology Policy
• International Infotech Park – for offering infrastructure services to software firms
• Jaipur STP – for endorsing and assisting software exports
• Kanpur STP – for endorsing and assisting software exports
• Maharashtra IT Parks – cataloging of IT parks in India and its state-of-affairs
• Mohali – for endorsing and assisting software exports
• Mysore STP – for endorsing software exports
• STP Chennai – for endorsing and assisting software exports
• STP Gandhinagar – for endorsing and assisting software exports
• STP Goa – for endorsing Software export agency
• STP Hyderabad – for endorsing and assisting software exports
• STP Mumbai – for endorsing and assisting software exports

Goa Real Estate Industry amidst SEZ debate and increasing crime rate

Goa Real Estate

The global tourist destination promises a profitable and flourishing real estate for the prospective buyers, investors and developers, in spite of the increasing crime rate and prohibition on SEZs. As per the sector’s sources, Goa real estate industry has recorded a 100% growth in past few years. The factors responsible for this remarkable growth are – purchasing price being the lowest in the nation, minimal stamp duty and registration costs at 2% and impressive returns on investments. Investigation assessment reveals that realty worth Rs. 54 lakh at the beginning of construction arrives at the cost of Rs. 69 lakh after its completion which can be translated as a 10% guaranteed return on any investment in realty sector of Goa.

Purchasing a property in Goa is no more uncomplicated, particularly after the government inflicted a ban on the foreigners. Moreover, its increasing crime rate is acting as a big hindrance in the execution of realty transactions. Adding to the problems, the Goa real estate industry witnessed a debate on the establishment of Special Economic Zones (SEZs) after the Indian government rejected the proposal of initiation of 8 SEZs due to the increasing demands by anti-SEZ activists of the state.

As per the arguments put forward by the activists, SEZ will only mount the pressure on the fragile infrastructure of Goa and witness a huge influx of outsiders who would cascade the state in search of employment, leaving minimal opportunities for the locals.

Inspite of all these controversies, the real estate expansion in Goa is in its full swing due to the major investments by foreigners and it’s High-Net worth Individuals (HNI). But one cannot ignore the impact which the implementation of SEZ could have created in the already developing real estate industry of Goa.

Industrial initiatives to promote India Health Insurance Industry

India Health Insurance

In the FY 2008-09, the India Health Insurance Industry was worth US$ 1.6 billion. Keeping the growth in consideration, the sector is estimated to expand to US$ 8.7 billion by the end of FY 2016-17. In India, Health Insurance Policies are mostly offered by general insurance providers, but as per the statistics around 5% is contributed by life insurers in the overall trade of health insurance. Major insurance players are implementing new initiatives either by setting a health insurance division or by investing in the market in order to promote the health insurance sector in India.

In an attempt to feature among the top three health insurance firms in India within a pre-set target of three years, Reliance Life Insurance owned by Anil Ambani group has already incorporated a new division that would entirely concentrate on expanding its health insurance base in Indian market. In the next few months, the firm is planning to provide short term policies ranging from 3 to 5 years besides acquiring 10% in the Insurance market share in the coming years.

Another insurer which aims to acquire 5% market share under its 5 years premeditated strategy is Apollo DKV Health Insurance. The insurer has rechristened itself as Apollo Munich Health Insurance after its tie-up with Germany based Munich Health.

The fiscal year 2010-2011 will also witness the launch of new health insurance product by Max India in association with its joint venture partner Max Bupa besides investing  US$ 43.35 million in the sector. Other life insurers which are all set to make a foray into health insurance sector are Aegon Religare, Star Health and Allied Insurance.