Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<keyword id="20779198" type="General" weightage="20" keywordseo="Chief-Economic-Advisor" source="keywords">Chief Economic Advisor</keyword> V Anantha Nageswaran emphasized the crucial and positive role that artificial intelligence (<keyword id="19899640" type="General" weightage="20" keywordseo="AI" source="keywords">AI</keyword>) can play for the <keyword id="22505095" type="General" weightage="20" keywordseo="Indian-demography" source="keywords">Indian demography</keyword> and <keyword id="20278114" type="General" weightage="20" keywordseo="labour-force" source="keywords">labour force</keyword> during a press conference on the <keyword id="20613906" type="General" weightage="100" keywordseo="Economic-Survey" source="keywords">Economic Survey</keyword> 2023-24. He noted that within the next decade, India is poised to become the world's third-largest economy and will benefit significantly from its demographic dividend. However, Nageswaran also acknowledged potential challenges posed by AI, particularly for India's <keyword id="20811086" type="General" weightage="20" keywordseo="business-process-outsourcing" source="keywords">Business Process Outsourcing</keyword> (BPO) sector. He stated, "The short-term challenge of generative AI could slow <keyword id="22505093" type="General" weightage="20" keywordseo="BPO-sector-growth" source="keywords">BPO sector growth</keyword>, affecting <keyword id="21300718" type="General" weightage="20" keywordseo="customer-services" source="keywords">customer services</keyword>. It is possible that the jobs related to BPO will be under threat whereas AI may actually turn out to be a booster." Furthermore, Nageswaran also pointed out that the emergence of AI might reduce annual <keyword id="21420133" type="General" weightage="20" keywordseo="productivity-growth" source="keywords">productivity growth</keyword> by approximately 0.3 percentage points in the coming years. This indicates a potential short-term dip in productivity as industries adapt to new technologies. Despite these challenges, Nageswaran added that the long-term potential of AI is promising. The broader adoption of AI could lead to significant improvements in critical areas such as healthcare and education, thereby enhancing human capital. The economic survey presented in the Parliament by finance minister Nirmala Sithraman says in the medium term Indian economy can grow at a rate of 7 per cent. The economic survey stated, "In the medium term, the Indian economy can grow at a rate of 7 per cent plus on a sustained basis if we build on the structural reforms undertaken over the last decade. This requires a tripartite compact between the Union Government, State Governments and the private sector." Achieving a sustained growth rate of over 7 per cent will require a tripartite compact between the Union Government, State Governments, and the private sector. India's financial sector is undergoing critical transformations. During FY24, primary capital markets facilitated capital formation of Rs 10.9 lakh crore, accounting for approximately 29 per cent of the gross fixed capital formation of private and public corporates in FY23. It further adds India faces a unique blend of opportunities and challenges amid global trends such as geo-economic fragmentation, a push for self-reliance, looming climate change, the rise of technology, and limited policy space. (ANI)

AI could slow BPO sector growth: Chief Economic Advisor Nageshwaran

India’s Chief Economic Advisor (CEA), <keyword id="20690607" type="General" weightage="20" keywordseo="V-Anantha-Nageswaran" source="keywords">V Anantha Nageswaran</keyword>, remains optimistic about the nation’s economic prospects despite a slower-than-expected <keyword id="19972825" type="General" weightage="20" keywordseo="GDP-growth" source="keywords">GDP growth</keyword> in the second quarter of FY2024-25. Speaking at the Bharat @100 Summit hosted by Assocham, he said that the fundamental health of the economy remains robust, according to a report by aNI. Nageswaran highlighted several indicators demonstrating the economy’s resilience. “If you run through the checklist for the <keyword id="19948184" type="General" weightage="100" keywordseo="Indian-economy" source="keywords">Indian economy</keyword>, the health is pretty robust,” he noted, pointing to controlled levels of external debt as a share of GDP, declining non-performing assets in the banking system, and stable inflation trends. Although certain food items have caused inflationary spikes, their impact is limited within the overall consumer price index basket, he explained. The CEA praised the shift in fiscal expenditure priorities over the past seven years, with greater focus on capital investments rather than revenue spending. This reallocation, he suggested, has bolstered long-term economic stability and growth potential. India’s GDP growth for the July-September quarter was 5.4%, significantly below the Reserve Bank of India’s forecast of 7%. While this has sparked concerns among economists, Nageswaran urged against overreacting. Erratic monsoons and excessive rainfall disrupted economic activity in Q2, he explained, while global uncertainties and supply chain pressures further weighed on growth. Despite these challenges, he maintained confidence in the broader growth narrative, citing improvements in key economic metrics. For instance, India’s gross capital formation has risen from 27.3% of GDP in the second decade of the 2000s to 30.8% today. Private consumption remains steady, and exports—spanning both services and manufacturing—continue to perform well even amid challenging global conditions. Nageswaran also underscored India’s growing competitiveness in international trade. He noted that the nation’s total <keyword id="24325087" type="General" weightage="20" keywordseo="exports-as-a-percentage-of-GDP" source="keywords">exports as a percentage of GDP</keyword> now surpass China’s, showcasing its resilience and adaptability in a shifting global trade environment. However, he cautioned against reading too much into quarterly fluctuations, highlighting the impact of geopolitical developments such as trade restrictions from the US on critical minerals and rare earths, as well as policy shifts in China. These external factors, he suggested, are likely to persist and may continue influencing short-term economic trends. (with ANI inputs)

Indian economy is resilient despite Q2 challenges, says CEA Nageswaran

The <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="261" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword> announced the decision of the newly formed six-member MPC (<keyword id="19913109" type="General" weightage="20" keywordseo="Monetary-Policy-Committee" source="keywords">Monetary Policy Committee</keyword>) today, following the conclusion of the three-day meeting, which began on October 7, 2024. Treading along expected lines, RBI rate-setting panel left the repo rate unchanged at 6.5% for the 10th consecutive time, in its 51st meeting today. The decision was made by a majority, with 5 out of 6 members voting for leaving the rate unchanged. This is the fourth bi-monthly monetary policy review for FY25, and the first since three external members were appointed to the panel earlier this month. The tenure of the previous three members had come to an end on October 4, 2024. While the outgoing members include Ashima Goyal (emeritus professor, Indira Gandhi Institute of Development Research), Shashanka Bhide (honorary senior advisor, National Council of Applied Economic Research); and Jayanth R. Varma(professor, Indian Institute of Management, Ahmedabad), the income members are Ram Singh (Director, Delhi School of Economics), Saugata Bhattacharya, an economist; and Nagesh Kumar (Director and chief executive, Institute for Studies in Industrial Development). <h2>Wait and Watch </h2>RBI also changed its policy stance to neutral, while remaining committed to growth and bringing down inflation to its target of 4%. This means that at present, the bank is not inclined to either increase or decrease the interest rates, but will take a call depending on macroeconomic conditions and prevailing factors. "Taking all these factors into consideration, the real GDP growth for 2024-25 is projected at 7.2%, with Q2 at 7%, Q3 at 7.4% and Q4 at 7.4%", he said. As for inflation, Das highlighted that headline inflation had softened significantly in July and August and even food inflation experienced a certain degree of correction during these two months. Keeping this in mind, CPI inflation for 2024-25 i.e. current year is projected at 4.5%, with Q2 at 4.1%, Q3 at 4.8% and Q4 at 4.2%. CPI for first quarter of next financial year i.e. 2025-26 is estimated at 4.3%. "It's with a lot of effort that inflation horse has been brought to the stable, i.e. closer to the target and within the tolerance span, compared to its place or heightened levels two years ago. We have to be very careful about opening the gate, as the horse may simply hold again. We must keep the horse in tight leash, so that we do not lose control", Das added. Most economists had anticipated a change in the central bank's current policy stance of 'withdrawal of accommodation'. This policy stand indicates that any interest rate cuts are presently off the table. However, given the ongoing geopolitical crisis and Fed's jumbo rate cut by 50-basis points last month, RBI may bring about a cut in interest rates, sooner than later. However, since food inflation remains high at 5.42% as of July 2024, experts had also estimated that now might not have been a good time for RBI to bring down interest rates. Moreover, PMI (purchase managers index) indices, which help in gauging the health of manufacturing and service sectors in the country, presently stand at a multi-month low, and even the core sector output is witnessing a contraction after 42 straight months. As Suman Chowdhury, Executive Director &amp; Chief Economist, Acuité Ratings &amp; Research had highlighted, the current circumstances are not really conducive for RBI to opt for any affirmation action towards an easier monetary policy. "While the fear of the inflation “elephant” may have subsided with the CPI headline print well within 4.0% over the last two months and a favorable monsoon, the concerns around the stability of food inflation still linger among policy makers. The RBI may wait till December 2024 or February 2025 to make a rat cut, he continued. <h2>Housing sector rejoices</h2>From the point of view of homebuyers, the relatively affordable home loan interest rate regime will continue at a critical time for the Indian housing market - the festive season - amid rising housing prices and tapered sales. Q3 2024 saw average housing prices rise by a cumulative 23% in the top 7 cities even as average prices in these markets collectively rose to approximately Rs 8,390 per sq. ft. by Q3 2024-end, from Rs 6,800 per sq. ft. in Q3 2023. "The unchanged home loan rates are much-needed demand support in the ongoing festive quarter. We are expecting faster sales momentum in Q4 2024 when compared to the preceding quarter. This year's festive quarter may see similar demand to that seen in this period a year ago, if not higher. Over 1.27 lakh units were sold across the top 7 cities back in Q4 2023. Unchanged interest rates will play and important role in achieving and maintaining this momentum", says Anuj Puri, Chairman - ANAROCK Group

RBIs MPC meet concludes today: Repo rate left unchanged at 6.5%

The pre-budget <keyword id="20613906" type="General" weightage="20" keywordseo="Economic-Survey" source="keywords" meta.keywordsubtype="org" meta.entityname="Economic Survey" meta.hostid="261" meta.entityid="Economic Survey">Economic Survey</keyword> on Monday called for urgent reforms in India's <keyword id="19915424" type="General" weightage="20" keywordseo="agricultural-sector" source="keywords">agricultural sector</keyword>, warning that the structural issues could impede the country's overall <keyword id="19900794" type="General" weightage="20" keywordseo="economic-growth" source="keywords">economic growth</keyword> trajectory. The survey, tabled in Parliament by Finance Minister <keyword id="19916618" type="General" weightage="20" keywordseo="nirmala-sitharaman" source="keywords">Nirmala Sitharaman</keyword>, highlighted the untapped potential of the <keyword id="20682012" type="General" weightage="20" keywordseo="Indian-agriculture" source="keywords">Indian agriculture</keyword> sector compared to other economies. Chief Economic Advisor V Anantha Nageswaran called for a pan-India dialogue on the agriculture sector. The survey, presented ahead of the annual budget, emphasised that India has yet to fully leverage its agricultural sector for economic growth and job creation, unlike East Asian economies and Western developed nations. "Indian agriculture is not in a crisis now but requires a serious <keyword id="20544318" type="General" weightage="20" keywordseo="structural-transformation" source="keywords">structural transformation</keyword> because climate change and water criticality loom large in the times to come," the survey stated. The CEA advocated for a reassessment of existing policies, despite current government subsidies and support measures for farmers. "The payoff will be immense if we untie the knots that bedevil farm sector policies," Nageswaran said in the survey's preface. While the government provides substantial support to farmers through subsidies on water, electricity, and fertilizers, along with income tax exemptions and minimum support prices, there is room for improvement in policy implementation, he added. The survey identified several key challenges, including balancing growth with food inflation management, improving price discovery, and addressing land fragmentation. To address these challenges, the survey recommends multi-pronged reforms, which include: upgrading agricultural technology, enhancing marketing avenues, adopting farming innovations, reducing input wastage, and improving the agriculture-industry linkages. The document stressed the need to shift focus from basic <keyword id="19992806" type="General" weightage="20" keywordseo="food-security" source="keywords">food security</keyword> to nutritional security, aligning with a 'demand-driven food system' that is both nutritious and environmentally sustainable. The survey suggested that policymakers must strike a delicate balance between incentivizing farmers to increase production and keeping food prices within acceptable limits. "This dual objective requires careful policy interventions." The survey also emphasized the need for a farmer-friendly policy framework to ensure markets function in farmers' interests. It recommended avoiding bans on futures or options markets at the first sign of price spikes; invoking bans only under exceptional circumstances; re-examining the inflation-targeting framework; increasing the total net irrigated area, and aligning farming practices with <keyword id="22505922" type="General" weightage="20" keywordseo="climate-considerations" source="keywords">climate considerations</keyword>. Looking ahead to 2047, the survey highlighted the potential of agriculture and allied sectors (horticulture, livestock, fisheries, dairy, and food processing) for sustained <keyword id="20268655" type="General" weightage="20" keywordseo="employment-generation" source="keywords">employment generation</keyword>. "To sustain growth for nearly a generation up to 2047 or more and to ensure that it makes people's lives better and fulfills their aspirations, bottom-up reforms are necessary," it noted. It suggested that India may need to reconsider the traditional development model of transitioning from agriculture to industry and services.

Economic Survey calls for urgent agricultural reforms; cites growth hurdles

Chief Economic Advisor V <keyword id="148840" type="General" weightage="50" keywordseo="anantha-nageswaran" source="Orion">Anantha Nageswaran</keyword> on Thursday said global uncertainty has been rising after the recent developments in the United States and governments, businesses and individuals should keep 'margins of safety' in fiscal, corporate and savings account planning. He said the global growth estimates of the International Monetary Fund (IMF) given in January look outdated and countries will have to watch what the developments in the US over the last week would do to confidence, bank lending growth and the subsequent chain effects. Two banks in America have gone belly up over the last week. Signature Bank, New York, which lent mostly to the crypto industry was shut down by the regulators on Sunday after there was a run on their deposits. Besides, the failure of Silicon Valley Bank last week left many startups, tech companies, entrepreneurs and VC funds nervous and jittery. SVB, the 16th largest bank in the United States, was closed on Friday last by the California Department of Financial Protection and Innovation which later appointed the FDIC as its receiver. Speaking at the <keyword id="6359483" type="General" weightage="50" keywordseo="crisil" source="Orion">Crisil</keyword> <keyword id="3658" type="General" weightage="50" keywordseo="india" source="Orion">India</keyword> Outlook seminar, <keyword id="13054616" type="General" weightage="80" keywordseo="nageswaran" source="Orion">Nageswaran</keyword> said the uncertainty has been on a rising trend and has gone up a few notches in the last week and this is something which countries need to live with, not only this year but for the next year and beyond. "And the important thing to remember is that when you are facing uncertain times, the key thing to do is to make sure that we have margins of safety in our operations, whether it is for corporates or for investors. The only guidance one can think of is to allow for margins of safety, whether it is in fiscal planning, corporate planning or household balance sheet or savings account planning," he said. He said if the developments that have happened in the last week do create a necessity for the Federal Reserve to pause interest rate hikes then we have to wait and see what happens to real interest rates in the United States and what will that do to the US dollar. "And also, what implications it will have for emerging economies, which I believe will be mostly positive in one sense, that is, the pressure on their currencies will abate. On the other hand, if the Federal Reserve had to go ahead with its tightening programme, having provided a liquidity backstop and put in place some other arrangements to make depositors whole, then we have to wait and see what kind of domino effect it might create on other banking institutions and on the overall economy etc. It is a fairly difficult situation that central banks around the world, especially advanced economies, are confronting," Nageswaran said. He said at this moment, it may be somewhat difficult to quantify the net effect of these developments on countries like India. "The overall positives would be the implications it would have for global demand, for oil prices and for the US interest rates and the dollar. Those kinds of reactions will be mostly positive for us, even if there is an impact on export growth," he said. "You can see the rapidity with which things are evolving, and it is difficult to provide long-term guidance for anyone. It's important, therefore, we allow for uncertainty in our planning processes. And I think to some extent, we have tried to do it in our fiscal policy," Nageswaran said. He said India's GDP growth is expected to be 7 per cent in the current fiscal. "If we are able to get through another week with temperatures in the current ranges, I think the wheat harvest because of the early sowing will also happen ... and we may be able to get a good crop. And this will have positive chain reactions going forward, for inflation, for agricultural output, for monetary policy etc". With regard to the next fiscal, Nageswaran said the growth projection of 6.5 per cent has more downside risk than upside risk. "Of course, all of this is subject to assumptions about how the world situation, both in politics and economics, will look like. But by and large, we look at all sectors, we are well above pre-pandemic levels and private consumption as a share of GDP, if you look at three-quarters of data for the last five financial years, it has been rising," he said. He said one should not be overly optimistic talking about 8-9 per cent GDP growth in the current environment. "If you can achieve, sustain the growth of 6.5-7 per cent or even 6.4-7 per cent in the next 7-8 years until the next decade, we would have done very well". He said public sector capex has been rising in the last several years and has been going up by three times, concentrating on several sectors. Naturally, at some point, public sector capex has to take a step back and the private sector will have to carry on the good work. Public sector capex has created the physical infrastructure for better manufacturing growth and export performance in the years to come, Nageswaran said. The chief economic advisor in the finance ministry also said that the nominal GDP growth for the next fiscal has been assumed at 10.5 per cent, and though India remains optimistic, it is aware of the formidable array of challenges that confronts both developing and advanced economies. "We do require just 2-3 years of steady 10 per cent nominal GDP growth for fiscal parameters to show meaningful improvements. So while it is clear that the quality of expenditure is improving and there is still room for improvement both with respect to quality and quantitative parameters, exaggerated hand wringing may not be necessary," he said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/vedanta-appoints-omar-davis-as-its-president-strategy/articleshow/98690407.cms">Vedanta appoints Omar Davis as its President-Strategy</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/policy/economy/news/indian-economy-likely-to-log-in-a-tepid-6-growth-next-fiscal-crisil/articleshow/98690120.cms">Indian economy likely to log in a tepid 6% growth next fiscal: Crisil</a>

Global uncertainty rising, need to maintain 'margins of safety': Chief Economic Advisor

<ul class="summary-list"><li>Biden needs to spend his debate time attacking Trump's economic policies, sources told CNN.</li><li>The top Democrat sources told CNN that voters just don't care about what Biden has accomplished.</li></ul>Joe Biden's advisors say he should spend more time at the debate attacking Donald Trump than focusing on his own White House successes, according to <a target="_blank" href="https://www.cnn.com/2024/06/25/politics/joe-biden-donald-trump-strategy/index.html">a report from CNN</a>.Several top Democrats, who spoke on the condition of anonymity, told CNN that they've been urging Biden's camp to take an offensive approach to Thursday's debate. They've been advising Biden to focus on criticizing Trump's economic policies and close relationship with corporate America, four sources close to the president told the outlet.Biden shouldn't talk so much about what he's accomplished during his time in office, because the voters don't really care, the sources told CNN."He wants the credit, but it's not working," one of the top Democrat sources told CNN. "He needs to stop."Ron Klain, Biden's former chief of staff and longtime aide, has also said <a target="_blank" href="https://www.businessinsider.com/biden-talks-too-much-about-bridges-ron-klain-2024-4">the president spends too much time discussing</a> the improvements he's made to infrastructure."I think the president is out there too much talking about bridges," Klain said in April. "I think it's kind of a fool's errand."Klain added that Biden needs to focus on issues people actually care about, like the cost of groceries, because bridges just aren't cutting it.More than 80% of Americans listed the economy and inflation as the top two issues that will determine who they vote for this November, according to an <a target="_blank" href="https://www.ipsos.com/en-us/most-americans-say-economy-and-inflation-are-most-important-issues-determining-who-they-will-support-for-president-in-november">ABC News/Ipsos poll </a>in May. And more Americans trust Trump over Biden on these issues — 46% trust Trump on the economy while 32% trust Biden, and 44% trust Trump on inflation while 30% trust Biden, according to the poll.The Biden campaign has been ramping up its attacks on Trump since the former president's felony conviction last month. Just last week, the president's <a target="_blank" href="https://www.businessinsider.com/biden-ad-campaign-trump-convicted-felon-2024-6">campaign announced a $50 million ad blitz</a> that includes a searing TV ad railing into Trump's "criminal" character.A spokesperson for the Biden campaign declined to comment on Biden's debate preparation, but highlighted several recent press releases in which the Biden-Harris team slams Trump and his policies.In a debate week press release on Sunday, Biden's team lambasted what it called Trump's "dark 'vision,' where he will serve as a dictator on day one, give tax cuts to the ultra-wealthy on the backs of the middle class, and rip away women's rights."Biden's team said that its recent messaging has been focused on how Trump is bad for America — specifically, how he orchestrated the repeal of Roe v. Wade, how he attacks democracy and "continues to embrace political violence," and how his economic plans will only serve himself at the expense of the middle class, according to the press release.

Biden shouldn't focus on his White House successes at the debate because nobody cares, advisors say

<keyword id="3658" type="General" weightage="80" keywordseo="india" source="Orion">India</keyword>'s software export revenue and remittances act as a strong counter-cyclical buffer against the increase in current account deficit (<keyword id="52599" type="General" weightage="80" keywordseo="cad" source="Orion">CAD</keyword>) due to a hike in global oil prices and rupee depreciation, said the State Bank of India's (SBI) Chief Economic Adviser. In a research report Dr <keyword id="6448502" type="General" weightage="50" keywordseo="soumya-kanti-ghosh" source="Orion">Soumya Kanti Ghosh</keyword>, Group Chief Economic Adviser, SBI, said for every rupee depreciation, software exports increase by $250 million. <keyword id="4757" type="General" weightage="80" keywordseo="ghosh" source="Orion">Ghosh</keyword> said contrary to the expectations, the Q1FY23 Balance of Payments (BOP) numbers have shown a strong counter-cyclical buffer in the form of service exports and remittances. For example, in Q1, India's CAD was expected to reach $30 billion/3.8 per cent of gross domestic product (GDP), but the actual numbers came in at 2.8 per cent of GDP. The positive surprise was because of strong remittances and software exports, the CAD got a lift of 60 basis points, Ghosh said. "We expect that if such trends of strong remittances and software exports have continued (<keyword id="30067" type="General" weightage="50" keywordseo="rbi" source="Orion">RBI</keyword> data suggests software exports in Q2 were strong) in Q2, and India's CAD comes in below the threshold level of 3.5 per cent of GDP in Q2, the CAD for FY23 could still be closer to 3 per cent benchmark and not in excess of 3.5 per cent of GDP," he added. Also, forex reserves could jump by another $5 billion as swap transactions reverse and thus have a positive impact on the rupee as is being currently witnessed, he noted. To understand the factors that are impacting India's CAD, Ghosh worked on the structural vector auto-regressions (SVAR) model. With oil forming 30 per cent of India's import bill, it has a major impact on macroeconomic variables. An increase in oil import price impacts directly the trade deficit and consequently, CAD gets widened. That apart, it also results in inflation. According to Ghosh, the SVAR model introduces a counter-cyclical response to increased oil prices in the form of software service exports that is impacted positively because of rupee depreciation. "Although remittances are positively impacted, we have not considered them in our SVAR model because of data volatility." The results of the SVAR model clearly give an idea of the negative impact of oil price shock on CAD, inflation and growth in one direction and the positive impact of software exports on CAD as a result of rupee depreciation. In particular, a positive shock to oil prices leads to an immediate and sharp increase in CAD, which dissipates completely in about eight quarters. The trade deficit also increases up to two quarters after the initial positive oil price shock, he said. "This implies that India's trade deficit may already have been adversely impacted for the first half of the current fiscal because of the oil price shock," Ghosh said. In the case of GDP, a positive shock to oil prices leads to an immediate decline, which however starts reversing after the third quarter and completely dissipates after the seventh quarter. "This implies that India's first-half GDP growth in FY23 could have been impacted because of the oil price shock. Most interestingly, the rupee-dollar exchange rate also gets impacted and it depreciates slightly after an increase in oil prices till three quarters following which it starts appreciating," he said. As a result, the rupee outlook is likely to improve in Q4 of FY23. The impact of oil price on consumer price index (CPI) inflation will dissipate after four quarters and it means that the CPI inflation outlook for FY24 will be consistent with RBI's forecast of 5 per cent. Ghosh said India's software exports are on the rise with the share of the offsite mode of exports by Indian IT service companies increasing to 88.8 per cent in FY22 compared to 82.8 per cent five years ago. Ghosh said a $10 increase in crude oil prices leads to an increase of 40 bps in CAD, 50 bps in CPI and a 23 bps decline in growth with software exports acting as a counter-cyclical buffer. "The exchange rate pass-through from variance decomposition method shows it is at least 10 per cent for CAD, inflation and growth, but significantly stronger at 35 per cent for software exports. For every rupee depreciation, software exports increase by $250 million," Ghosh added. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/bears-weigh-on-indian-markets-due-to-negative-global-cues/articleshow/95418328.cms">Bears weigh on Indian markets due to negative global cues</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/fusion-micro-finance-ipo-allotment-how-to-check-allotment-status-listing-date-and-more/articleshow/95407416.cms">Fusion Micro Finance IPO allotment – How to check allotment status, listing date and more</a>

For every rupee depreciation, software exports increase by $250 mn: SBI Chief Economic Advisor

<ul class="summary-list"><li>Ukraine's chief economic advisor said the US is — perhaps unknowingly — continuing to import Russian oil.</li><li>In March, the US placed a ban on Russian oil and natural gas due to Putin's invasion of Ukraine.</li></ul>Despite the US <a href="https://www.businessinsider.com/biden-us-ban-russian-oil-natural-gas-coal-imports-report-2022-3">ban</a> on Russian oil, it's continuing to find its way to American <a href="https://www.businessinsider.com/gas-prices-falling-oil-demand-waning-energy-inflation-cooling-2022-7">gas stations</a>, said Oleg Ustenko, chief economic advisor to Ukraine President Volodymyr Zelensky. "Motorists — perhaps without knowing it — are continuing to fill the tanks of their vehicles with petrol of Russian origin," Ustenko said in a <a href="https://www.ft.com/content/e593ae2f-62c5-4d8a-8011-b18b6cdee5d0">Financial Times op-ed</a> Sunday. "In what can only be described as a global laundering operation, Russian crude is taken to foreign refineries and then imported into the US as petrol. Once the oil has been refined into other products, it can legally enter the US without breaking sanctions."Patrick De Haan, head of petroleum analysis at GasBuddy, says Iran and other countries have made efforts to skirt sanctions "for quite some time," so it's "possible" US oil companies are "unknowingly" buying Russian oil, though he believes it's "probably not a major amount.""Rogue actors with Russia or intermediates could stand to profit significantly by taking that discounted Russian oil and mixing it with legitimate oil, falsifying records and then sending it to the US," De Haan says.In response to Russia's invasion of Ukraine, the US <a href="https://www.cnbc.com/2022/04/07/senate-passes-ban-on-russian-oil-and-gas-imports-.html">banned</a> the import of Russian oil and natural gas in March. The United Kingdom is planning to <a href="https://www.gov.uk/government/news/uk-to-phase-out-russian-oil-imports">phase out</a> these imports by the end of the year, with European Union leaders aiming to cut Russian oil and gas by <a href="https://www.npr.org/2022/05/31/1102097085/european-union-leaders-agree-to-ban-90-of-russian-oil-by-the-end-of-2022">90%</a> and <a href="https://www.cnbc.com/2022/06/29/europes-plans-to-replace-russian-gas-are-deemed-wildly-optimistic-and-could-hammer-its-economy.html">67%</a> respectively.In addition to punishing Russia, Europe is preparing for the possibility that Russia retaliates — <a href="https://www.wsj.com/articles/europe-fears-a-long-cold-winter-if-russia-ends-supply-of-natural-gas-11658258177">cutting off</a> their access to natural gas this upcoming winter. The drop in demand has caused Russian oil to sell at a <a href="https://markets.businessinsider.com/news/commodities/russian-oil-32-percent-less-brent-crude-discount-may-widen-2022-5">steep discount</a> — and created an opportunity for bad actors functioning as middlemen in the market. By buying Russian oil at a discount, misrepresenting it as non-sanctioned oil, and selling it at the market rate, these "nefarious actors" can rake in profits, De Haan said. Given the seriousness of the US sanctions, De Haan believes US oil companies would "stay as far away from that Russian oil as possible," and that any imports of it would likely be unbeknownst to them. While oil companies could "do better homework" on who they're buying from, there's a "level of trust" inherent in most oil transactions, making this challenging."It's really hard," De Haan says. "It's like buying a used car and hoping you're not going to get a lemon," adding that the "mixed" product would be indistinguishable from what the companies ordered. While De Hann says Russian actors could be involved in this practice, he believes it's the middlemen that are more likely to take this risk — and be able to pull it off without attracting much notice. <h2>"Western sanctions on Russian fossil fuels are a phantom" </h2>US gas prices have <a href="https://www.businessinsider.com/gas-prices-falling-inflation-outlook-energy-crude-oil-gasoline-costs-2022-7">fallen</a> over the past month, driven by a myriad of factors, including fears of an economic downturn, Americans cutting back, and the <a href="https://www.cnn.com/2022/03/30/politics/strategic-petroleum-reserve-release-oil-joe-biden/index.html">release of oil</a> from reserves. Ukraine's Ustenko suggests that the recent <a href="https://nairametrics.com/2022/08/08/the-brent-crude-oil-posted-its-worst-weekly-decline-since-april-2020/">easing</a> of global oil prices is — at least in part — due to Russian oil finding its way to markets like the US."Western sanctions on Russian fossil fuels are a phantom," Ustenko said in the Financial Times op-ed. "The revenues flowing into the Kremlin's coffers from foreign sales of oil, gas and coal are sky-high, having doubled in the first 100 days of the war. The west's energy sanctions regime is not working. That is for a very simple reason — it does not exist."As sanctions on Russian energy have heightened over the past six months, there's been an increase in "<a href="https://markets.businessinsider.com/news/commodities/russian-oil-exports-china-dark-ship-transfers-rise-sanctions-ukraine-2022-7">dark</a>" ship-to-ship transfers — in which one vessel has turned off its tracking signal. This allows some in the market to operate in secrecy. It's enabled <a href="https://markets.businessinsider.com/news/commodities/russian-oil-exports-china-dark-ship-transfers-rise-sanctions-ukraine-2022-7">buyers and sellers</a> eager to avoid the ire of the US and Europe to deal in Russian oil without detection. Ustenko's claims of a "global laundering operation," if true, represent a different example of secrecy in the market.De Haan, however, believes the fact that Russian oil continues to be significantly discounted provides evidence that sanctions are making an impact, and that Russian oil isn't skirting import restrictions at any significant scale. That said, Russia has found some <a href="https://www.axios.com/2022/06/28/how-russia-skirts-sanctions-on-energy">willing buyers</a> in India and China, which has helped offset the decline in sales to Western countries.Moving forward, Ustenko believes that a "complete and immediate embargo on Russian fossil fuels" and a global price cap on Russian oil are both essential. "The sooner Putin is stopped, the faster we can get on with Ukraine's reconstruction. That means keeping Russian fossil fuels in the ground and turning phantom energy sanctions into real ones."But even if the US and Europe take more steps to cut off Russia, some of its oil may continue to slip through the cracks."We don't live in a perfect world," says De Haan, "and there are going to be instances where nefarious actors do this type of thing."

Americans are still using Russian oil and money is 'flowing into the Kremlin’s coffers,' says Ukraine's chief economic advisor

Our experts answer readers' investing questions and write unbiased product reviews (<a href="https://www.businessinsider.com/personal-finance/investing-rating-methodology" class="not-content-link" target="_blank">here's how we assess investing products</a>). Paid non-client promotion: In some cases, we receive a commission from <a href="https://www.businessinsider.com/personal-finance/our-partners" class="not-content-link" target="_blank">our partners</a>. Our opinions are always our own.<ul class="summary-list"><li>A financial advisor can help plan for retirement, build an investment portfolio, or budget to reach your financial goals.</li><li>When hiring an advisor or planner, make sure to consider their specialties and certifications.</li></ul>Hiring a financial advisor or a financial planner can help you achieve your short- or long-term goals — like having a comfortable retirement, funding your child's college tuition, or buying a house. These professionals aren't one-size-fits-all, though, and finding the right one is critical to your success. Here's what you need to know about financial advisors and planners, and how to zero in on the best one for your goals and budget.<h2>How to find a financial advisor</h2>To choose the right <a href="https://www.businessinsider.com/personal-finance/best-online-financial-advisors">financial advisor</a> or planner, you first need to understand what you're trying to achieve. Are you looking to maximize your retirement funds? Do you want to make more from your investments? Is planning your estate and legacy top of mind?Financial professionals typically have specialties, so you'll want to choose one that aligns closely with your goals. Common <a href="https://www.businessinsider.com/personal-finance/financial-plan">financial planning</a> specialties include:<ul><li>Estate planning</li><li>Investing </li><li>Retirement planning</li><li>Business planning </li><li>Debt management</li><li><a href="https://www.businessinsider.com/personal-finance/how-to-budget">Budgeting</a></li><li>Tax planning</li><li>Insurance</li></ul>There are also advisors and planners who specialize in specific life stages, demographics, or even people with certain occupations. "When looking for a financial planner, it is important to understand exactly what you're looking for," says Jay Zigmont, a CFP® planner and founder of <a href="https://childfreewealth.com/" target="_blank" rel="noopener">Childfree Wealth</a>, which focuses on financial planning for adults who choose not to have children. "You will find planners who specialize in just about every group, job, and life stage, so find one that fits you."Choosing a financial planner who's a <a href="https://www.businessinsider.com/personal-finance/fiduciary">fiduciary</a> is also important. This means they must avoid conflicts of interest and always put your interests first."A planner that operates under the fiduciary standard is required by law to always keep your financial best interests ahead of theirs," says Jason Steeno, president of financial advisory firm <a href="https://corecapinv.com/" target="_blank" rel="noopener">CoreCap Investments</a> in Southfield, Michigan. Find a Qualified Financial AdvisorLooking for the right advisor for you? <a href="https://publishers.datalignadvisory.com/aff_c?offer_id=4&amp;aff_id=1005&amp;aff_sub=businessinsider&amp;aff_sub2=bus__falc_bicontent&amp;aff_sub3=msn_find_advisor&amp;aff_sub4=cpc" target="_blank" rel="noopener">Datalign</a> makes finding a financial advisor specific to your needs easier than ever. Datalign Advisory's free tool matches you to an advisor based on your unique financial profile in 3 minutes. All advisors on the platform are registered with the SEC.<a href="https://publishers.datalignadvisory.com/aff_c?offer_id=4&amp;aff_id=1005&amp;aff_sub=businessinsider&amp;aff_sub2=bus__falc_bicontent&amp;aff_sub3=msn_find_advisor&amp;aff_sub4=cpc" target="_blank" rel="noopener"> Get started planning for your financial future!</a><h2>Steps to choose a financial advisor</h2><h3>1. Search for financial advisor options in your area </h3>There are many ways to find a financial advisor or planner near you. Asking friends, family members, and colleagues is often a good place to start, as they can recommend local professionals they've had personal experience with. You can also use one of these online resources, all of which allow you to filter by geographic area:<ul><li><a href="https://www.plannersearch.org/" target="_blank" rel="noopener">Financial Planning Association</a>: FPA's tool lets you search for CFP® professionals in your area, and you can filter by specialty, compensation type, and certification. </li><li><a href="https://www.napfa.org/" target="_blank" rel="noopener">National Association of Personal Financial Advisors</a>: With NAPFA's search tool, you enter your ZIP code and can filter planners based on their distance from you. There's also a map you can use to view all your options in one place.</li><li><a href="https://www.letsmakeaplan.org/" target="_blank" rel="noopener">Let's Make a Plan</a>: This is the Certified Financial Planner Board of Standards' search tool. You can search by location, services offered, or both. All planners listed are CFP® professionals. </li><li><a href="https://www.xyplanningnetwork.com/" target="_blank" rel="noopener">XY Planning Network</a>: XY's tool lets you search for fee-only financial advisors (more on this below) in your area. You can look by location and filter results using various keywords and specialties.</li></ul>Once you've shortlisted a few names, cross-check them on <a href="http://www.brokercheck.com" target="_blank" rel="noopener">BrokerCheck.com</a> and with the <a href="http://www.adviserinfo.sec.gov" target="_blank" rel="noopener">Securities and Exchange Commission (SEC)</a>. There, Steeno says, "You can see how long they've been in business or if they've had any disciplinary history."<h3>2. Review a financial advisor's credentials</h3>There isn't a single "financial planner" or "financial advisor" license or certification. As Steeno puts it, "Just about anyone can call themselves a financial planner."To ensure you're choosing an experienced and knowledgeable professional, look for professional designations like CFP®, CFA, or CIMA. These are just a few credentials a financial advisor can seek, each indicating a different specialty or skill set.Here's a look at some of the credentials you might see:<ul><li>CFP®: A <a href="https://www.businessinsider.com/personal-finance/cfp" rel="noopener">CFP</a>® is a CERTIFIED FINANCIAL PLANNERTM. These professionals must have a bachelor's degree, three years minimum in full-time financial planning, and complete a board-certification program. CFP®s also must take 30 hours of continuing education every two years.</li><li>CFA: CFA professionals must take a three-part exam focusing on investment tools, assets, wealth planning, and portfolio management to be certified.</li><li>CIMA: Professionals with a CIMA designation are Certified Investment Management Analysts. CIMAs are required to have three years of experience in financial services and enroll in a CIMA education course at the Yale School of Management, The Wharton School at the University of Pennsylvania, the University of Chicago Booth School of Business, or the Investment Management Research Program in Australia.</li><li>MRFC: An MRFC is a Master Registered Financial Consultant. These professionals need at least four years of full-time financial planning experience, have a bachelor's degree in accounting, economics, or finance, and complete 40 hours of continuing education every year. </li><li>ChFC: ChFCs are Chartered Financial Consultants. They must have at least three years of full-time business experience, complete 27 credit hours of courses, and receive 30 continuing education credits every two years.</li><li>CRC: This one is a Certified Retirement Counselor. They must have two years of professional retirement planning experience, pass a specialized certification exam, and take 15 hours of continuing education courses annually. </li></ul>You can usually find a planner's credentials listed after their name — both in the online search resources under Step 1 and on their professional profile or LinkedIn account. Important: There are many other designations and credentials a financial professional can hold. To look up a specific one you've seen, use <a href="https://www.finra.org/investors/professional-designations" target="_blank" rel="noopener">this glossary</a> from the Financial Industry Regulatory Authority (<a href="https://www.businessinsider.com/personal-finance/finra" target="_blank" rel="noopener">FINRA</a>).<h3>3. Review fee structures </h3>There are many ways a financial advisor may charge you, so be sure you understand how they charge before working with them. Some services are charged based on the assets or investments the planner manages, while others charge flat fees or receive commissions. How they charge can influence how much you'll end up spending to work with a financial planner so it's always important to research this part beforehand.Here's a look at some of the various fee structures financial planners use:<ul><li><a href="https://www.businessinsider.com/personal-finance/fee-only-financial-advisor">Fee-only</a>: Fee-only planners are paid for the services they provide. This might mean an hourly rate, a flat fee, or a retainer of some sort. Fee-only planners do not receive commissions or kickbacks from the products and policies they recommend.</li><li>AUM: Assets Under Management is another fee-only approach. With this fee structure, you'll pay a set percentage of the total assets your planner manages. </li><li>Commission: Commissioned financial planners get compensated based on the products they sell to you. This can cause a conflict of interest, as it motivates them to recommend certain products, even if they're not best suited to your needs.</li><li>Fee-based: A fee-based model is a combination of fee-only and commission structures. You may pay a fee for the planner's service, and they also may receive a commission for certain products they recommend to you. </li></ul>Generally speaking, most professionals recommend seeking someone who is fee-only, as this ensures they have your best interests at heart. This includes AUM-based models, which motivate the planner to grow your assets (and avoid losses)."It ensures the advisor's interests are in line with yours," Steeno says. "They want your assets to increase in value just as you do."<table style="border-collapse: collapse; width: 100%; height: 88px;" border="1"><tbody><tr style="height: 22px;"><td style="width: 50%; height: 22px;">Fee-only</td><td style="width: 50%; height: 22px;">Fee-based</td></tr><tr style="height: 22px;"><td style="width: 50%; height: 22px;">The planner is paid based on services provided</td><td style="width: 50%; height: 22px;">The planner is paid based on the services provided and the products they recommend</td></tr><tr style="height: 22px;"><td style="width: 50%; height: 22px;">May include a flat fee, hourly rate, retainer, or AUM approach</td><td style="width: 50%; height: 22px;">May include a combination of commissions and fees</td></tr><tr style="height: 22px;"><td style="width: 50%; height: 22px;">Ensures the planner puts your interests first</td><td style="width: 50%; height: 22px;">May encourage planners to put their interests before your own</td></tr></tbody></table><h2>Online financial advisors vs. traditional advisors </h2>You don't have to meet with a financial advisor or planner in person to get professional help. Many financial advisors offer online services that allow you to get the guidance you need without leaving your home. These usually include phone and video calls, in which you "meet" your planner virtually over Zoom, Skype, or another similar service.These can be a good option if you want faster, more convenient service or to work with a planner not in your geographic area. There are also <a href="https://www.businessinsider.com/personal-finance/best-robo-advisors">robo-advisors</a>, which can be used for building and managing your investment portfolio. They're typically more affordable than using a real-life advisor and have low starting balance requirements, but they're also less comprehensive and personalized. Robo-advisors typically won't help with budgeting, estate planning, tax planning, or other non-investment services.As Rob Burnette, an MRFC and chief executive officer of <a href="https://outlookfc.com/" target="_blank" rel="noopener">Outlook Financial Center</a> in Troy, Ohio, explains, "Robo-advisors are only useful for the investment part of a financial plan."Important: Most major investment brokerages offer robo-advisor services. Examples include Schwab Intelligent Portfolios, Fidelity Go, and Vanguard Digital Advisor.In some cases, robo-advisors may include interactions with a live advisor (sometimes for an added fee). But it's usually not a dedicated account professional, and you may be limited on how many times you can interact with them. This means less consistency and personal guidance than you'd get with a financial planner you hired directly."Robo-advisors generally offer a one-size-fits-most solution," says Kris Maksimovich, a CRC and president at <a href="https://www.gwadvisors.net/" target="_blank" rel="noopener">Global Wealth Advisors</a> based in Lewisville, Texas. "They lack personalization and input and don't offer hand-holding during periods of market volatility."<table style="border-collapse: collapse; width: 100%;" border="1"><tbody><tr><td style="width: 50%;">Robo-advisor</td><td style="width: 50%;">Online financial advisor service</td></tr><tr><td style="width: 50%;">Can help you build an investment portfolio quickly and easily</td><td style="width: 50%;">May be more efficient and convenient than meeting a planner in person</td></tr><tr><td style="width: 50%;">Lower cost than traditional financial planners</td><td style="width: 50%;">Allows you to work with a financial planner located anywhere</td></tr><tr><td style="width: 50%;">Services are less personalized to your needs</td><td style="width: 50%;">Gives you personalized guidance and consistency</td></tr><tr><td style="width: 50%;">Does not include non-investment services, like budgeting, tax planning, or estate planning</td><td style="width: 50%;">May be harder to build a personal relationship with your planner</td></tr></tbody></table>A financial advisor or financial planner can help you achieve your long-term goals but choose yours carefully. There are many types of financial planners, and their specialty, costs, credentials, and services should all play a role in your decision. Don't be afraid to interview a few candidates. Set up introductory meetings with two or three professionals, and use the time to ask questions, understand their processes and fees, and make sure they're a good fit before moving forward.

How to Choose a Financial Advisor - Pick the Right Financial Planner for You

<ul><li>Many everyday use products -- from pens to cartons, bags, plastics and cards, stand to get dearer as the government looks to merge the 12% and 18% <keyword id="6354679" type="General" weightage="20" keywordseo="gst" source="Orion">GST</keyword> rates.</li><li>The biggest reason for such rationalisation is correction in the <keyword id="2307968" type="General" weightage="20" keywordseo="inverted-duty" source="Orion">inverted duty</keyword> structure that leads to difficulties in claiming the net input tax credit.</li><li>The government is likely to move to just <keyword id="12151525" type="General" weightage="20" keywordseo="two-tax-slabs" source="Orion">two tax slabs</keyword> of 5% and 18% over the next 6-18 months.</li></ul>The Indian government wants fewer tax slabs under the goods and services tax (GST) regime. Recently, <keyword id="82366" type="General" weightage="20" keywordseo="chief-economic-advisor" source="Orion">Chief Economic Advisor</keyword> K V Subramanian said that GST could be turned into a three-rate structure by merging two existing tax slabs. However, experts say that it could also be down to just two slabs, eventually. And the latest move to increase the GST to 18% on pens, cartons, bags, plastics and cards, is part of that plan. Though fewer slabs will make it easier for businesses to pay taxes, it could lead to some key products and services getting more expensive and that is an issue, which the government must be wary of. <cmsannotation type="cmsannotation" annotationid="Current GST Rate Slabs" comment="subhead" text="Current GST Rate Slabs">Current GST Rate Slabs</cmsannotation> <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Goods </td><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Services </td></tr><tr><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">0% </td><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">0% </td></tr><tr><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">0.25% </td><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">5% </td></tr><tr><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">3% </td><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">12% </td></tr><tr><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">5% </td><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">18% </td></tr><tr><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">12% </td><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">28% </td></tr><tr><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">18% </td><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">28% </td><td style="border-left:solid #cccccc 0.75pt;border-right:solid #cccccc 0.75pt;border-bottom:solid #cccccc 0.75pt;border-top:solid #cccccc 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>In the 45th GST Council meeting held on Friday last week, some products that were earlier taxed at 5% or 12%, including cartons, boxes, bags, packing containers of paper, plastic products, metal ores, scented sweet supari, cards, catalogue, and printed material, were moved to 18%, along with other products. Most of these everyday items are used by even those who are not financially well off. And a higher tax is the last thing they need. “What is the logic of taxing them [cardboard boxes] at 18%. Except for rationalisation, I cannot think of any other reason for change in these rates,” said <keyword id="3809784" type="General" weightage="20" keywordseo="sandeep-chilana" source="Orion">Sandeep Chilana</keyword>, managing partner at Chilana &amp; Chilana Associates. Some rates, however, such as for retro fitment kits for vehicles used by the disabled, fortified rice kernels, medicine Keytruda for treatment of cancer and biodiesel supplied to oil marketing companies, among others, were reduced to 5%. <cmsannotation type="cmsannotation" annotationid="Here’s why having fewer tax slabs is good" comment="subhead" text="Here’s why having fewer tax slabs is good">Here’s why having fewer tax slabs is good</cmsannotation> The development comes as the government looks to move to a twin-tax structure under the GST regime, <keyword id="136087" type="General" weightage="20" keywordseo="bipin-sapra" source="Orion">Bipin Sapra</keyword>, tax partner at advisory firm EY told Business Insider India in a video interaction. The biggest reason for such rationalisation, he said, is correction in the inverted duty structure that leads to difficulties in claiming the net input tax credit. An inverted duty structure is a situation where inputs or raw materials are taxed higher than the output or finished products for sale. “But ultimately your product is becoming costlier at some point because once the (input tax) credit gets utilised, what is the net amount of tax that you have added to the product, would need to be seen,” said Sapra. He also expected more such rationalisations to happen in the future. At present, GST is levied under five slabs for services, and under seven slab rates for goods, with the tax on gold that is kept at 3% and rough precious and semi-precious stones that are placed at a special rate of 0.25% under GST. But that may change soon as the government is likely to move to just two tax slabs of 5% and 18% over the next 6-18 months, said Sapra. “We will see more of this happening in the coming days, because they [the government] are ultimately trying to move to two rates of 5% and 18%,” he said. So, most of the items in the 12% GST rate category are likely to move up to 18%, while some may be brought down to 5%. “But, predominantly, whatever we see at 12%, based on the discussions I have had with policymakers, will ultimately move to 18%. That is the broad reason why we are seeing this. My view will be within 6-18 months, we will move to a two-rate regime,” he said. Further, moving certain products to the higher 18% tax slab also seems unfair to customers and businesses during the pandemic, said <keyword id="107827" type="General" weightage="20" keywordseo="anita-rastogi" source="Orion">Anita Rastogi</keyword>, partner - GST and indirect taxes at PwC. “I do not think 18% is the right rate, if we want to do a two-slab rate. It should either be 15% or 16%, because 18% is not the genuine correct rate in today’s scenario,” she said. “There are a lot of factors that need to be re-considered post the pandemic, [such as] the situation in which the businesses are and also the purchasing power of the people. So, if at all the rate fitment committee is discussing it, we really need to urge them to relook at the rates at which they want to do it.” <keyword id="3063029" type="General" weightage="20" keywordseo="abhishek-rastogi" source="Orion">Abhishek Rastogi</keyword>, partner - indirect taxes at law firm Khaitan &amp; Co., concurred. “16% is ideal. There may be some anti-profiteering issues coming down from 18% to 16%, but 16% is the best rate. If that rate doesn’t suit in terms of revenue, then 5% can go up to 6%,” he said. Since the rationalisation for change in the rates was not given by the GST Council, Sapra said that it would be helpful if the committee came up with a vision statement to give more clarity to businesses, instead of doing patchwork to solve the issues of tax cascading, inverted duty structure and perceived revenue loss. “Right now, we believe that the GST council is doing what it needs to (do) to keep the GST running and solve the problems the industry or state governments throw at it, but we need more clarity and vision from the GST council,” he said. SEE ALSO: <a href="https://www.businessinsider.in/cryptocurrency/news/south-koreas-crypto-regulations-are-tightening-around-investors-and-exchanges-alike/articleshow/86426452.cms">South Korea’s crypto regulations are tightening around investors and exchanges alike</a> <a href="https://www.businessinsider.in/stock-market/news/paras-defence-and-space-technologies-ipo-gets-blockbuster-demand-from-investors/articleshow/86422668.cms">Paras Defence and Space Technologies IPO gets blockbuster demand from investor</a> <a href="https://www.businessinsider.in/business/news/experts-say-karnatakas-ban-on-games-of-chance-like-dream11-and-mpl-may-face-a-legal-test/articleshow/86419697.cms">Experts say Karnataka’s ban on games of chance like Dream11 and MPL may face a legal test</a>

It’s good that India wants just two GST slabs⁠ but it has to ensure it doesn’t hurt consumers

<ul><li>India’s <keyword id="82366" type="General" weightage="20" keywordseo="chief-economic-advisor" source="Orion">Chief Economic Advisor</keyword>, K V Subramanian, said that <keyword id="3625814" type="General" weightage="20" keywordseo="universal-basic-income" source="Orion">universal basic income</keyword> is “an idea that is impractical”.</li><li>He instead suggested <keyword id="1041036" type="General" weightage="20" keywordseo="universal-pension" source="Orion">universal pension</keyword> saying that it is a much better and beneficial scheme.</li><li>He was of the opinion that people who have worked for around 35-40 years are very much entitled to a lifetime pension.</li></ul>Universal basic <keyword id="47201" type="General" weightage="20" keywordseo="income" source="Orion">income</keyword> has been experimented by a few countries, but it’s still a debatable idea with no proper model in place. According to India’s Chief Economic Advisor, KV Subramanian, universal basic income is “an idea that is impractical”. Speaking at Business Insider’s <a href="https://www.businessinsider.in/careers/news/the-only-way-to-beat-the-bots-from-taking-your-job-is-to-be-more-human/articleshow/86282273.cms" data-type="tilCustomLink">Future of Work Summit</a>, Subramanian said that a universal pension is a much better and beneficial scheme than a universal basic income. <div type="ExtQuote" text="“It’s an idea that is actually sensational enough to capture media attention, but I don’t think it is practical because first thing, if it has to be implemented it has to mean that all subsidies have to be stopped.”" auname="KV Subramaniam"></div> Universal basic income requires the government to give citizens a fixed amount of income regularly irrespective of whether they work or not. Arguments supporting universal basic income say that it could help alleviate poverty, give people more freedom to stay home and care for relatives, and also ensure economic stability during recessions. As for the common arguments against universal basic income, the reasons include possibility of triggering inflation, no increased standard of living and people may not seek out for jobs. <div type="Youtube" id="ustRqQ2ZgX0" title="KV Subramanian on the state of the (job) market at the #FutureOfWork Summit." thumbUrl="https://i.ytimg.com/vi/ustRqQ2ZgX0/mqdefault.jpg"></div> With COVID-19 leading to loss of jobs and financial loss, the idea of a universal basic income has gained momentum. It has even been endorsed by Facebook chief Mark Zuckerberg, former US presidential candidate Andrew Yang and Tesla boss Elon Musk. Instead of a universal basic income, Subramanian is in support of universal pension. “What is important though is to generate protective nets based on pension for instance, and that is something which is very important. That is an aspect that the government is indeed emphasising on. When you have people who are older who may not be able to reskill themselves as much, their going towards a universal pension is something that is very important, ” he said. According to a <a href="https://economictimes.indiatimes.com/news/india/eac-pm-calls-for-higher-retirement-age/articleshow/85381124.cms">report</a> by The Economic Times last month, a study commissioned by the Economic Advisory Council to the Prime Minister (EAC-PM) recommended that the government increase the retirement age and also introduce a Universal Pension Income programme with a minimum payment of ₹1,500-2,500 per month to help the elderly people in the country. Subramanian explained how people who have actually worked for around 35-40 years, having done all the hard work, are very much entitled to a pension for the rest of their lives. He added that such an idea is “politically implemental and practical”. SEE ALSO: <a href="https://www.businessinsider.in/careers/news/the-only-way-to-beat-the-bots-from-taking-your-job-is-to-be-more-human/articleshow/86282273.cms" data-type="tilCustomLink">Future of Work 2021: The only way to beat the bots from taking your job is to be more human</a>

You Searched For "Chief Economic Advisor" and got 11 results

AI could slow BPO sector growth: Chief Economic Advisor Nageshwaran

ANI

Indian economy is resilient despite Q2 challenges, says CEA Nageswaran

BI India Bureau

RBIs MPC meet concludes today: Repo rate left unchanged at 6.5%

Ira Alok Puranik

Economic Survey calls for urgent agricultural reforms; cites growth hurdles

PTI

Global uncertainty rising, need to maintain 'margins of safety': Chief Economic Advisor

PTI

Biden shouldn't focus on his White House successes at the debate because nobody cares, advisors say

Grace Eliza Goodwin

For every rupee depreciation, software exports increase by $250 mn: SBI Chief Economic Advisor

IANS

Americans are still using Russian oil and money is 'flowing into the Kremlin’s coffers,' says Ukraine's chief economic advisor

Jacob Zinkula

How to Choose a Financial Advisor - Pick the Right Financial Planner for You

Aly J. Yale

It’s good that India wants just two GST slabs⁠ but it has to ensure it doesn’t hurt consumers

Ridhima Saxena

Future of Work 2021: Universal pension is a better idea than universal basic income, says India's Chief Economic Advisor

Marcia Sekhose

Popular Keywords

Buying Guides