1. India expected to lead salary hike in the world in 2023; ECA’s Salary Trends Survey
Tags: Economy/Finance
According to a recent ECA’s Salary Trends Survey, India is set to see the highest rise in real salaries in the world despite a sharp rise in inflation worldwide. The ECA’s Salary Trends Survey, based on information collected from over 360 multinational companies in 68 countries and cities, sees just 37 per cent of countries globally expecting to report real-term wage hikes.
Real time wage hike means the nominal increase in wage - rate of Inflation.
The ECA Salary Trends Survey expects Pakistan with its high rate of inflation will be the worst performer with a decline in real wage of 9.9%.
According to the ECA Salary Trend Survey, the worst hit region is expected to be Europe, with the United Kingdom expected to fall by 4% in real terms in 2023.
In the US a real-terms drop of 4.5% this year is expected to be reversed by falling inflation next year, translating into a 1% real-terms salary hike.
In the survey ,Asian nations make up eight of the top 10 countries forecasted to see real salaries rise, led by India, up 4.6%, Vietnam rising 4.0% and China up 3.8%.
These are the top 5 countries and their predicted real-terms salary increases in 2023:
- India (4.6 per cent)
- Vietnam (4.0 per cent)
- China (3.8 per cent)
- Brazil (3.4 per cent)
- Saudi Arabia (2.3 per cent)
And the bottom five, with their expected decreases:
- Pakistan (-9.9 per cent)
- Ghana (-11.9 per cent)
- Turkey (-14.4 per cent)
- Sri Lanka (-20.5 per cent)
- Argentina (-26.1 per cent)
Employment Conditions Abroad Limited was set up in 1971 in London, United Kingdom by 24 multinational companies.
2. Netherlands replaces China as the third largest export destination in the first 5 month of the 2022-23
Tags: Economy/Finance
Netherlands has emerged as the third largest export destination for India in the first five months (April-August) of the current fiscal year of 2022-23. The Netherlands has emerged as India’s third-largest export destination, ahead of China and Bangladesh. It has moved up two spots in the list of India’s top ten export destinations since 2021-22, due to a 106% increase in export from India until August this fiscal from a year before to $7.5 billion.
US and UAE top two export destinations
Meanwhile, the United States of America and the United Arab Emirates (UAE) continue to be the largest and second-largest export destinations, respectively, for India. The exports to the US climbed 18.3% until August to $35.2 billion, while those to the UAE shot up 27.3% to $13.8 billion.
Reason for drop in export to Bangladesh and China
Bangladesh which is facing a severe foreign exchange (forex) shortage restricted imports to essential products so as to conserve its forex.
China is still battling the covid pandemic and many cities have been in lockdown affecting its economic activity. This has led to a sharp drop in demand from China.
India’s exports to China contracted sharply by 35.6% until August this fiscal to $6.8 billion, while those to Bangladesh rose just 8.7% to $5.8 billion. In contrast, India’s merchandise exports to all destinations grew 19.5% in the first five months of this fiscal to $196.5 billion.
Boost in export to other countries led by Petroleum Products
India’s exports to the Netherlands were driven mostly by a 238% jump in export of oil products until August this fiscal year to $3.67 billion. Export of chemicals ($513 million) and pharmaceuticals ($219 million) also increased during the period.
Meanwhile, exports to Indonesia jumped 43% to $4.8 billion. The supplies to this Asean country were dominated by petroleum products, which jumped 144% in the year up to August this fiscal to $1.8 billion. The other key products were cereals, sugar and chemicals.
Brazil, which occupied the 21st spot in 2021-22, is now India’s 8th biggest export market. The export to Brazil increased by 70.9% in the first five months of this fiscal year to $4.7 billion. The exports were driven by a 299% jump in supplies of petroleum products to $2.3 billion, followed by those of chemicals ($684 million) and automobiles, auto parts and allied products ($233 million).
Rank in 2022-23 (April-August) | Country | Rank in 2021-22 |
1 | United States | 1 |
2 | United Arab Emirates | 2 |
3 | Netherlands | 5 |
4 | China | 3 |
5 | Bangladesh | 4 |
6 | Singapore | 6 |
7 | Indonesia | 14 |
8 | Brazil | 21 |
9 | United Kingdom | 8 |
10 | Saudi Arabia | 12 |
3. Finance Minister Nirmala Sitharaman virtually attends the 7th Annual Meeting of Board of Governors of Asian Infrastructure Investment Bank
Tags: Economy/Finance Person in news
Union Minister of Finance & Corporate Affairs Nirmala Sitharaman attended the 7th Annual Meeting of the Board of Governors of Asian Infrastructure Investment Bank (AIIB) via video conference from New Delhi on 26 October 2022.
Every year at the Annual Meeting, the Board of Governors meets to take key decisions on important matters relating to AIIB, and its future vision.
India is a Founding Member and the second largest shareholder in AIIB. India also has the largest project portfolio within AIIB.
The theme of this year’s Annual Meeting was “Sustainable Infrastructure toward a Connected World”.
Asian Infrastructure Investment Bank (AIIB)
- It is a multilateral development bank which was set up in 2016.
- Its area of operation is in Asia and it provides loans to build Infrastructure of tomorrow -green infrastructure with sustainability, innovation and connectivity at its core.
- However its members are from around the world . At present it has 104 member countries.
- China is the majority shareholder of the bank and India is the second largest shareholder of the bank
- The United States and Japan are not the members of the bank
- AIIB has given maximum loans to India
- It will set up its first overseas office in Abu Dhabi, United Arab Emirates (UAE).
- Urjit Patel of India is one of the five Vice-President of AIIB.
Current President of the Bank: Jin Liqun of China.
Headquarters: Beijing, China
4. IRDAI set up a panel headed by Thomas M Devasia to develop rural insurance
Tags: Economy/Finance Person in news
Insurance sector regulator, Insurance Regulatory and Development Authority of India (IRDAI) has set up a 24-member committee to develop and suggest an affordable and comprehensive cover for the rural population.
The panel will be headed by Thomas M Devasia who is a member of the IRDAI.
The committee will recommend a regulatory framework for proposed cover which will be a benefit based// parametric structure, called Bima Vistaar.
The insurance regulator has also asked the committee to develop and suggest constitution and operation of a preferably, women centric distribution channel called Bima Vahak to focus on reaching untapped/ rural areas and recommend the regulatory framework.
Insurance Regulatory and Development Authority (IRDAI)
It is the regulator of the Insurance sector in India. It was set up in 1999. It was made a statutory body in April 2000 under the Insurance Regulatory and Development Authority act 1999.
IRDAI was set up on the recommendation of the RN Malhotra committee on Insurance reform. The Malhotra committee was set up in 1993.
Headquarters: Hyderabad
Chairperson: Debasish Panda
5. BSE launches electronic gold receipts
Tags: Economy/Finance
BSE has become the first stock exchange in India to launch Electronic Gold Receipts (EGR). The EGR are expected to help in better price discovery of the yellow metal. The exchange has introduced two new products of 995 and 999 purity during the Muhurat trading on Diwali and trading will be in multiples of 1 gram and deliveries in multiples of 10 gram and 100 gram.
What is EGR
Here Gold will not be bought and sold in physical form. Here first gold will be deposited into a registered vault. The investor will deposit gold in 10 grams and 100 grams.
The vault will issue a receipt which can be used by the investor for trading purposes on the BSE platform. This receipt will be called Electronic Gold Receipts (EGR).
How to get the delivery of Gold?
After trading if an investor wants to convert the receipts into physical gold then it has to contact the authorized vault across India. There are vaults in 22 locations in India and the gold will be delivered door to door from these vaults by agencies Brink’s India and Sequel Logistics.
Gold can be delivered in 10 grams and 100 grams. 10-grams gold delivery can be in the form of a bar or coin and 100 grams of gold will be only delivered in a bar.
Who can invest in EGR?
EGRs will cater to all market participants. It means that buyers and sellers on the exchange will include individual investors, as well as commercial participants along the value chain like importers, banks, refiners, bullion traders, jewellery manufacturers, and retailers.
BSE
It was earlier known as Bombay Stock Exchange. It was set up in 1875 as ‘The Native Share & Stock Brokers' Association in Bombay (now Mumbai). It is the first stock exchange to be set up in Asia.
In 2017 BSE became the 1st listed stock exchange of India.
BSE has launched India INX, India's 1st international exchange, located at GIFT CITY IFSC in Ahmedabad.
BSE's popular equity index - the S&P BSE SENSEX - is India's most widely tracked stock market benchmark index.
6. CCI fines Google Rs 936 crore for abusing its dominant position in its Play store policy
Tags: Economy/Finance
The Competition Commission of India (CCI) has fined search engine giant Google Rs 936.44 crore for “abusing its dominant position with respect to its Play Store policies”. This is the second time that Google has been fined by the CCI. Last week Google was fined Rs 1,337.76 crore by the CCI for abusing its dominant position in the Android mobile device market.
The CCI found Google of following discriminatory policy regarding the listing of an app on its play store . Google play store is the official online store for Android devices. The Android operating system has been developed by Google and almost 96% of smartphone’s in India run on Android operating system.
What is the issue ?
If any company which has developed an android app and wants to get listed at the playstore then it has to pay a fee to google. The app developer has to use the Google Play Billing system(GPBS) only to pay the fees to Google.
App developers that do not use GPBS are not allowed to list their products on Google Play Store.
This was found by CCI as violative of the competition principle as Google was abusing its market dominance position to keep payment competitor’s like Unified Payment Interface (UPI), wallets and other apps out of the market .
The CCI noted Google forced app developers to use in-app payment systems because selling in-app digital goods made an important means for these developers to monetise their work.
The regulator has issued a cease-and-desist order, suggesting eight corrective measures including providing access to third-party billing payment processing systems on its Play Store.
The CCI has given 30 days to implement the corrective measures and modify its conduct.
7. Sangeeta Verma appointed as the acting chief of Competition Commission of India
Tags: Economy/Finance Person in news
The government of India has appointed Sangeeta Verma as the acting chairperson of the Competition Commission of India (CCI) on 25 October 2022.
Sangeeta Verma who was a member of the CCI will take charge on 26 October 2022 after the retirement of the full-time Chairperson Ashok Kumar Gupta on 25 October 2022.
According to the government order she will remain in office for “a period of three months or till appointment of regular Chairperson or till any further orders, whichever is the earliest”.
Ashok Kumar Gupta had taken over as the CCI chairperson in November 2018.
Competition Commission of India (CCI)
The Competition Commission of India (CCI) was established under the Competition Act, 2002 for the administration, implementation and enforcement of the Act.
It was constituted in March 2009.
The following are the objectives of the Commission.
- To prevent practices having adverse effects on competition.
- To promote and sustain competition in markets.
- To protect the interests of consumers and
- To ensure freedom of trade.
Members of the CCI
It consists of 7 members; one Chairperson and six other members.
The members are appointed by the government for five years and are re -eligible for appointments.
However the members have to retire after attaining the age of sixty-five years.
First Chairperson of CCI: Dhanendra Kumar
Headquarters: New Delhi
8. CASHe and IRCTC to launch Travel now pay later facility for ticket booked on IRCTC app
Tags: Economy/Finance
The Digital lending app CASHe has signed an agreement with the Indian Railways Catering and Tourism Corporation (IRCTC), to provide ’travel now pay later’ (TNPL) payment option on tickets booked on IRCTC Rail Connect app.
Under this facility a person booking a rail ticket through IRCTC Rail Connect app can book their ticket and pay the ticket amount later in Equated Monthly Installments((EMI) of three to six months. This facility will be available to salaried professionals.
Digital Lending and CASHe
Here the loan is not provided by the CASHe. It is a lending service provider which acts as an intermediary between the banks and NBFC regulated by RBI and the borrower. The loan will be provided by Bhanix Finance and Investment Limited . It is a Non-Banking Financial Company (NBFC) regulated by RBI.
CASHe is just an online platform which brings the lender and the borrower online together.
Indian Railway Catering and Tourism Corporation Ltd (IRCTC)
It is a Central Public Sector Enterprise under the Ministry of Railways, Government of India.
IRCTC was set up on 27th September, 1999.
It’s Headquarters: New Delhi
It is involved in the business of
- Catering & Hospitality at Railway station
- Internet Ticketing
- Travel & Tourism
- Packaged Drinking Water (Rail Neer)
Chairman and Managing Director :Smt. Rajni Hasija
9. Myanmar joins North Korea and Iran in the Financial Action Task Force black listed countries
Tags: Economy/Finance International News
The international Money laundering and terrorist financing watchdog Financial Action Task Force (FATF) has put Myanmar on the "black list" and has called on members to apply enhanced due diligence to business relations and transactions in Myanmar. Myanmar joins the ranks of Iran and North Korea who are already in the Black list of the FATF.
Money laundering is a process where the money generated through criminal activities like smuggling ,organised crime etc is integrated with the legal financial system so as to hide the origin of these money.
FATF‘s Grey or Black list
Countries which has weak anti -laundering and anti-terrorist regulatory frameworks are put into Grey list. It basically warns the country to improve its anti-money laundering system.
Black List
Countries which refuse to act and refuse to take concrete steps to combat money laundering are put in High-Risk Jurisdictions subject to a Call for Action or black list. Currently Iran, North Korea and Myanmar are in the list.
Implications for Myanmar
It will become extremely difficult for Myanmar to secure loans from international financial institutions like International Monetary Fund, World Bank, Asian Development Banks.
Foreign investors and financial institutions will avoid dealing with Myanmar and its financial institutions like banks.
The cost of doing business with international customers will increase for Myanmar which will adversely affect its trade and investment.
Credit rating agencies will downgrade Myanmar’s rating which will raise the cost of borrowing for Myanmar's companies and banks in the international market. It means they will have to pay very high interest rates to borrow money.
FATF
The Financial Action Task Force was set up in 1989 on the recommendation of the Group of 7 Countries.
Function of FATF
- The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog.
- The inter-governmental body sets international standards that aim to prevent these illegal activities and the harm they cause to society.
- The FATF reviews money laundering and terrorist financing techniques and continuously strengthens its standards to address new risks, such as the regulation of virtual assets.
- India’s anti Money laundering law Prevention of Money Laundering Act (PMLA) 2002 is modelled on the standards of FATF.
- Total member countries of FATF is at present 39.
- India became a member in 2010.
Headquarters: Paris, France
President: T Raja Kumar (Singapore national)
10. PM Modi launches Rozgar Mela to provide 10 lakh jobs by the Central government and its department
Tags: Economy/Finance National News
Prime Minister Narendra Modi launched Rozgar Mela on 22 October 2022 virtually, to provide 10 lakhs jobs in the coming months. The Prime Minister said that keeping in mind the 75 years of independence, the central government is giving appointment letters to 75,000 youngsters under a programme.
During the ceremony, appointment letters were handed over to 75,000 newly inducted appointees. These new recruits will join 38 ministries/departments of the central governments.
The appointees will join the government at various levels viz. Group – A, Group – B (Gazetted), Group – B (Non-Gazetted) and Group – C. The posts on which appointments are being made include Central Armed Force Personnel, Sub Inspector, Constable, LDC, Steno, PA, Income Tax Inspectors, and MTS among others.
The Prime Minister said that keeping in mind the 75 years of independence, the central government is giving appointment letters to 75,000 youngsters under a programme.
