New Delhi, Apr 16 () Former finance secretary Subhash Chandra Garg on Thursday said the government is likely to face a shortfall of around Rs 10 lakh crore in 2020-21 due to the Covid-19 pandemic. In a blog, Garg said the government's tax and non-tax revenues are likely to decline by around Rs 5 lakh crore, while on the expenditure side additional financing of about Rs 6 lakh crore would be required. "There is likely to be an additional shortfall of not less than Rs. 10 lakh crores in the financial year 2020-21. "...The only feasible and the least disruptive measure is to monetise this additional deficit and the RBI to meet this financing requirement," he said. Elaborating on the fiscal situation, the former finance secretary said that indirect taxes, GST, excise duty on petroleum products and customs will under-perform. "Disinvestment programme is likely to remain grounded for quite sometime resulting into substantial under performance," he said. Garg pointed out that there is a requirement of a survival package for sustaining the lives of over 10 crore workers who have been rendered jobless. Noting that the options of resorting to household savings or issuing special bonds like COVID bonds are unlikely to be of much help, he said, "Forcing this additional borrowing requirement on banks and other financial institutions is likely to be more counter-productive." BKS ABMABM

Govt to face Rs 10 lakh cr shortfall in FY21 due to Covid-19: Garg

New Delhi, Jan 19 () With no sight of including jet fuel in Goods and Services Tax (GST) in near future, the government is considering levying specific rate of excise duty on aviation turbine fuel (ATF) in place of current ad valorem rates to insulate its prices from cascading effect in times of volatile prices.
ATF presently is chargeable at 11 per cent ad valorem rate of excise duty. Concessional rate of 2 per cent is applicable for ATF sold under Regional Connectivity Scheme. Ad valorem rate means that the impact of an increase in price of the fuel because of global rate hike translates into an even higher price for airlines as the tax incidence also rises.
To insulate airlines from such volatility, the government may in the forthcoming Budget for 2020-21 fiscal year may bring specific excise duty expressed in Rs per kilolitre, sources aware of the development said.
Petrol and diesel already attract a specific rate of excise duty and so ATF naturally qualifies for such a shift, they said.
Finance Minister Nirmala Sitharaman will present her second budget on February 1.
Explaining the duty structure, sources said if cost of production of ATF is Rs 100 per kilolitre, the fuel at exit from the refinery will be priced at Rs 111 per kilolitre after levying 11 per cent excise duty. If the cost rises to Rs 110, the ex-refinery rate would attract an excise duty of Rs 12. A specific duty of say Rs 11 per kilolitre would mean that even if the cost goes up the tax incidence would remain the same.
Petrol and diesel already attract specific excise duty for the same purpose. Excise duty on petrol currently is Rs 21.16 per litre and that on diesel is Rs 15.83 a litre.
This, they said, would ensure correct payment of duty at the initial clearance stage itself and will eliminate complexities and difficulties in redetermination of duty on further stock transfers which sometime result in avoidable litigation.
Specific excise duty would address part of the concerns of oil companies and airlines of not being able to set of tax paid on inputs against the tax on final product as ATF has been kept out of GST regime.
When the Goods and Services Tax (GST) was introduced on July 1, 2017 amalgamating 17 central and state levies, five commodities namely crude oil, natural gas, petrol, diesel, and ATF were kept out of its purview given the revenue dependence of state governments on this sector.
Under the existing structure, both natural gas and ATF attract the Centre's excise duty and a state's value-added tax (VAT). Both these and all other levies will get subsumed under GST if they are brought under its ambit.
The decision on their inclusion depends on the financial position of states as revenues from these five petroleum products constitute a substantial chunk of state government finances.
The aviation ministry has time and again sought inclusion of ATF under GST as any surge in international oil rates gets reflected in domestic jet fuel prices, leading to costlier air tickets. Oil Ministry too has favoured including ATF along with natural gas under the GST regime to help companies set off tax that they paid on input.
ATF makes up for almost half of the cost of an airline and rates vary from state to state depending on local VAT. ANZ MKJ

Govt considering specific excise duty on ATF

Petrol and diesel prices continued to rise through the week with the two petroleum products getting dearer by 59 and 58 paise per litre on Saturday. The auto fuel prices have now risen seven days in a row with pump prices of petrol increasing by Rs 3.90 and diesel by Rs 4 per litre since Sunday. All through the week petrol and diesel prices have risen by about 60 paise per litre per day barring Tuesday when the rise was marginally lower at 40 paise per litre. Sources in oil marketing companies said that price rise could continue for few more days as global product prices are firming up with a pick up in demand following opening up of economies across the globe post Covid-19 related lockdown. Even global crude prices have more than doubled from April levels at close to $40 a barrel level. Also, OMCs are catching up on price levels that bring the product prices closer to international benchmark rates. The price freeze of 83 days even with a substantial increase in excise duty on petrol and diesel by the Centre, has increased the price gap resulting in losses on sale of product for OMCs. The increase in retail prices on Saturday has been made under the dynamic pricing system for daily revision of fuel prices which OMCs resumed after over 83 days break during the lockdown period. In the national capital, the retail price of petrol increased by 59 paise and diesel by 58 paise per litre to Rs 75.16 and Rs 73.39 per litre respectively. In other cities, the increase could vary depending on the tax structure on products. IANS had published earlier that daily price revision may begin in June and retail prices of petrol and diesel could go up to Rs 5 a litre in phases. Prices of transportation fuel were last revised under the dynamic pricing policy on March 16 and there were few instances of price hike later only when the respective state governments hiked VAT or cess. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/mm-share-price-gains-as-ssangyong-dents-fourth-quarter-profit/articleshow/76338292.cms">Mahindra and Mahindra sees a ₹2,700 crore dent from Ssangyong and other global subsidiaries</a> <a href="https://www.businessinsider.in/policy/economy/news/zero-late-fee-for-those-who-have-nil-tax-liability-says-fm-nirmala-sitharaman-in-gst-meeting/articleshow/76338653.cms">40th GST Council meeting highlights – zero late fee for those who have nil tax liability, says FM Nirmala Sitharaman</a>

Petrol prices hike by 50 paise and diesel by 59 paise - for the seventh day in a row

<keyword id="6356916" type="UNKNOWN" weightage="20" keywordseo="excise-duty">Excise duty</keyword> can be explained as a kind of <keyword id="6354678" type="DEFINITION" weightage="20" keywordseo="Indirect-Tax">indirect tax</keyword>. Excise duty refers to the tax amount that gets included in the selling price. The other name of excise duty is excise tax. The consumer has to pay the excise duty or excise tax while making a purchase. Retailers need to calculate the excise duty from time to time and must ensure the timely payment of the same. Excise duty in the Indian context Excise duty is levied on the goods that are manufactured within India as against the custom duty which is levied on the goods that are imported from outside the country. The introduction of GST in India has made some significant changes to how excise duty works in the country. GST has subsumed a majority of indirect taxes like excise duty. This will mean that after the GST was introduced, excise duty has almost ceased to exist in the country. However, excise duty is still applicable in case of products like petroleum and liquor. Here we discuss how the concept of excise duty worked in India before the introduction of GST. The indirect tax of excise duty is generally collected by the retail seller from the customers and paid to the government. This duty is payable on the manufacture of goods. It is payable at the time of taking delivery of the goods from the place of production or from the warehouse for the purpose of selling. Since the excise duty is levied on the manufacturing of the said goods, there is no need to actually sell them to be able to recover the excise duty. The authority for the collection of excise duty in India is the Central Board of Excise and Customs (CBEC). Types of excise duty in India Traditionally speaking in India before the advent of GST, there had been three kinds of excise duty as given under. A revised understanding of the excise duty is called for after the GST took effect. Basic Excise Duty Basic excise duty is also referred to as Central Value Added Tax (CENVAT). This category of excise duty is levied on goods that are classified under the first schedule of the Central Excise Tariff Act, 1985. This duty is levied under Section 3 (1) (a) of the Central Excise Act, 1944. This excise duty is applicable for all goods excepting salt. Additional Excise Duty Section 3 of the Additional Duties of Excise also known as the goods of high importance, coming under Act 1957 levies excise duty on goods that are listed under schedule 1 of the given act. This duty is levied on some special category of goods. The central and state government charge these taxes in lieu of the sales tax. Enacted in 1978, the Act of Additional Duties of Excise (Textiles and Textile Articles) also creates room for a similar kind of legislation. Special Excise Duty This type of excise duty is levied on special goods that are classified under the Second schedule to the Central Excise Tariff Act, 1985.

What is Excise Duty and How it is calculated

New Delhi, Jan 12 () The International Energy Agency (IEA) has slammed India's natural gas pricing policy, saying linking domestic production to very low global reference prices has reduced incentives for producers to raise supplies.
 In its first in-depth review of India's energy policies, IEA said for the share of environment-friendly fuel to rise, the government needs to ensure gas is treated on a level playing field with other fuels for taxation and is included under the Goods and Services Tax (GST).
 However, one challenge to raising share of natural gas in the energy basket to 15 per cent by 2030 from current 6 per cent is gas pricing, it said. "Linking domestic gas prices to a basket of (very low) international reference prices has reduced incentives for domestic producers to increase supply."
 The Narendra Modi government, after storming to power in 2014, had approved a formula to price domestically produced gas at the average rate prevailing in gas exporting countries such as the US, UK, Canada, and Russia.
 Price according to this formula currently is USD 3.23 per million British thermal unit, half of what India's pays for import of liquefied natural gas (LNG).
 With stagnant domestic output, India meets half of its gas needs through imports. "India's latest 2014 gas price mechanism focuses very much on reducing the price level rather than the creation of a market-based system to reflect the domestic supply-demand structure in India," it said.
 IEA said there is no trading hub yet in India, although its creation has been suggested for 2019.
 "The creation of a gas hub would allow transparent price discovery on the basis of buyers and sellers interacting in an open market, and has the potential to remove the multiple price regimes in India," it said.
 Stating that the government should go ahead and implement the creation of a gas hub, it said international experience suggests that a virtual trading hub with an entry-exit regime based on transmission capacity is highly suited for market areas with limited transmission capacity and limited domestic production but rising LNG imports.
 The experience in the European Union can be very instructive for India. It has taken more than a decade to create a liquid natural gas market across 28 EU states, it said, adding a liquid and well-functioning domestic gas market would be a strong pillar for India's security of gas supply.
 "The reforms that allow marketing freedom to new supplies might help. However, there is still very low interest from new upstream companies to bid for acreage, given the competition from incumbent producers that sell gas at below its cost of production," IEA said.
 "The price of domestic gas is lower than that of (imported) LNG and is defined by indexation to international markets. Since India sources around 50 oer cent of its LNG imports via long-term contracts and the other half from spot markets, the price difference between oil-linked and spot gas is very important for Indian buyers."
 IEA said the government should "Foster the creation of a liquid market for natural gas in India, gradually moving from gas allocation and multiple pricing regimes to the creation of a gas hub, so that domestic gas and LNG imports can be used in the most efficient way and competition can flourish."
 Also, there is a need to strengthen and clarify the roles and responsibilities with regard to the regulatory supervision of natural gas market activities (upstream, midstream and downstream) to ensure a non-discriminatory access regime to pipeline capacity so that both LNG imports and new gas discoveries can find their way to markets and investment in gas transport and storage is encouraged, it said.
 The government, it said, must "ensure gas is treated on a level playing field with other fuels for taxation and is included under the GST, as the country strives to increase the share of gas in total energy supply."
 In 2017, the Goods and Services Tax (GST) was introduced with the aim of further rationalising taxation and reducing overlapping taxes between state and central governments. As many as 17 central and state levies such as excise duty and VAT were amalgamated in GST.
 But not all energy sectors are covered and not at the same rate. Crude oil, petrol, diesel, jet fuel (ATF) and natural gas do not fall under GST and they continue to incur central excise duty and state value-added tax (VAT).
 Other fuels such as coal, naphtha, furnace oil, and liquefied petroleum gas (LPG) have been brought under GST.
 "For natural gas to compete in India, costs have to come down, including through rationalisation of subsidies for coal and LPG and adjustment of the GST. Since natural gas does not fall under the GST, gas consumption is taxed at several state and central government levels, in addition to the gas transport tariffs.
 "Bringing natural gas under the GST and introducing a postage stamp gas transport tariff would reduce these costs and create a level playing field with other fuels," IEA said.
 IEA also said access to LNG facilities currently needs to be negotiated with the owner. But the government is considering establishing an open access regime for these facilities.
 "Whether these facilities will be fully utilised, or end up as stranded assets, very much depends on the pricing regime for gas," it said. ANZ ABM
ABM

IEA slams India's gas pricing policy, says it reduces incentives for producers to raise supply

New Delhi, Jan 31 () The Economic Survey on Friday made a case for relaxing the fiscal deficit target of 3.3 per cent of GDP in view of the need to arrest declining growth, estimated to touch a 11-year low of 5 per cent in the current fiscal.
 The Medium Term Fiscal Policy (MTFP) statement presented with the Budget 2019-20, pegged the fiscal deficit target for 2019-20 at 3.3 per cent of gross domestic product (GDP), which was further expected to follow a gradual path of reduction and attain the targeted level of 3 per cent of GDP in 2020-21, and continue at the same level in 2021-22.
 The year 2019-20 has been challenging for the Indian economy owing to the decelerating growth rate experienced in the first half of the year, said the survey prepared by a team led by Chief Economic Adviser K V Subramanian.
 "While, on one hand the outlook for global growth persists to be weak, with escalated trade tensions adding to the risk; on the other hand, the pace of recovery of growth will have implications for revenue collections," it said.
 In order to boost the sluggish demand and consumer sentiments, counter-cyclical fiscal policy may have to be adopted to create additional fiscal headroom, it said.
 During the first eight months of 2019-20, the indirect tax collections have been muted.
 Therefore, revenue buoyancy of goods and services tax (GST) would be key to the resource position of both central and state governments. 
 On the expenditure side, rationalisation of subsidies especially food subsidy could be an important tool for expanding the headroom for fiscal manoeuvre.
 The survey further notes that the geopolitical situation unfolding in West Asia is likely to have implications for oil prices, and thereby on the petroleum subsidy, apart from having implications for current account balance.
 "Going forward, considering the urgent priority of the government to revive growth in the economy, the fiscal deficit target may have to be relaxed for the current year," it said.
 It said structural reforms undertaken in taxation during the current financial year include change in corporate tax rate and measures to ease the implementation of GST.
 The states have continued on the path of fiscal consolidation and contained the fiscal deficit within the targets set out by the Fiscal Responsibility and Budget Management (FRBM) Act, it added. NKD CS ANS
ANS

Fiscal deficit target may be relaxed to arrest declining growth: Eco Survey

<ul><li>Petrol and <keyword id="6397171" type="UNKNOWN" weightage="20" keywordseo="diesel-prices">diesel prices</keyword> rose for the 22nd time on Monday in the past 23 days </li><li>Since the daily price revision resumed on June 7, the petrol price has increased ₹9.17 and diesel rose by ₹11.14 in the <keyword id="6360421" type="UNKNOWN" weightage="20" keywordseo="national-capital">national capital</keyword>. </li><li>However, the price varies from one state to another as fuel doesn’t come under the goods and services tax (GST) and states impose their own taxes. </li><li><a href="https://www.businessinsider.in/">Check out the latest news and updates on Business Insider.</a></li></ul>Petrol and diesel prices rose for the 22nd time on Monday in the past 23 days with <keyword id="6402706" type="UNKNOWN" weightage="20" keywordseo="oil-marketing-companies">oil marketing companies</keyword>. The latest rise in the pump price of petrol was 5 paisa and diesel by 13 paisa per litre in the national capital Delhi. Since the daily price revision resumed on June 7, the petrol price has increased ₹9.17 and diesel rose by ₹11.14 in the national capital. In other cities, the magnitude of increase was similar. However, the price varies from one state to another as fuel doesn’t come under the goods and services tax (GST) and each state levies value added tax (VAT) as per its need, resulting in the sharp price difference. Here’s how the petrol and diesel prices look like in some of the major metropolitan cities <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cities </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Petrol </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Diesel </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mumbai </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 87.19 </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 78.83 </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Delhi </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 80.43 </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 80.53 </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hyderabad </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 83.49 </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 78.69 </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Chennai </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 83.78 </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 77.86 </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bengaluru </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 83.04 </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 76.58 </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kolkata </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 82.10 </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 75.64 </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Chandigarh </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 77.41 </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 71.98 </td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Patna </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 83.32 </td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 77.42 </td></tr></tbody></table>*as of June 29 During the past 23 days, the quantum of price hike gradually declined from around 60 paise raise for a few days, immediately post the resumption of daily price revision, to less than 20 paise during the past few days and now even less than 10 paisa per litre. In a historic development, the price of diesel surged above that of petrol in the national capital during this period. It continues to remain higher even though on Saturday the quantum of the petrol price hike was higher than that of diesel. Officials in oil marketing companies said that it is hard to predict which of the two fuels will be priced higher in the capital as the gap between the two is almost negligible. But petrol prices have shown more volatility in international markets that may take it ahead once again in the coming days. Globally diesel is priced a tad higher than petrol. In India too, the base price of diesel is slightly higher than petrol, but taxation at central and state levels changed the complexion of retail prices. If the price of petroleum products and crude hold their positions in global markets, then petrol and diesel prices may stop for a longer period, and we may even see a marginal fall in prices. Fuel prices have been increasing since June 7 when oil companies began the daily price revision mechanism after a hiatus of 82 days during the lockdown. SEE ALSO: <a href="https://www.businessinsider.in/india/news/checkout-devastating-images-and-pictures-of-assam-floods/slidelist/76684624.cms" data-type="tilCustomLink">IN PICS: Devastating images of Assam floods as five more die and 9.26 lakh people bear the after-effects</a> <a href="https://www.businessinsider.in/india/news/ifb-agro-industries-sought-help-from-the-cm-mamata-banerjee-after-an-alleged-attack-on-one-of-its-distilleries-in-south-24-parganas/articleshow/76682327.cms" data-type="tilCustomLink">IFB Agro's share price falls by 6% as company says armed goons attacked its distillery in West Bengal</a>

The price of petrol and diesel in some of the big cities in India

New Delhi, Feb 17 () The revenue department has started capturing district-wise data of goods exports, a move aimed at helping policy makers take data-driven decisions to boost outwards shipments. This is being done to achieve the objective of turning districts into export hubs, the Central Board of Indirect Taxes and Customs (CBIC) said in a statement on Monday. "This additional information from the export declarations will provide a key statistical input to policy makers on the importance of each district for exports and will help in aligning the policies to enhance local capacity," it said. The information would now also capture declarations by exporters intending to avail benefits India's under free and preferential trade agreements with partner countries. This would provide critical data on the gains being made by Indian exporters under FTAs/PTAs and help the government align India's foreign trade policy in the nation's best interests, the CBIC said. Further, CBIC has now made it mandatory that every GST registered importer and exporter must declare their GSTIN on the import and export declarations. This will not only help taxpayers claim the ITC credit and IGST refunds but also in combatting frauds. The data collected will help policy makers take data-driven decisions, the CBIC added. India's exports dropped by 1.66 per cent to USD 25.97 billion in January, the sixth straight month of contraction, on account of a significant fall in shipments of petroleum, plastic, carpet, gems and jewellery, and leather products. Imports also fell for the eighth consecutive months, down 0.75 per cent to USD 41.14 billion in January, widening the trade deficit to a seven-month high of USD 15.17 billion. NKD CS MRMR

Customs dept starts capturing district level data of goods exports

(Eds: Adds inputs, corrects designation of an official in last para) Patna, Feb 22 () The Bihar government on Monday presented a Rs 2.18 lakh crore budget, with no new tax and a thrust on infrastructure and social sectors, besides giving a fillip to entrepreneurship. Presenting the revenue-surplus budget in the assembly, Deputy Chief Minister Tarkishore Prasad, who holds the finance portfolio, proposed to create a separate department for skill development and entrepreneurship. The decision would ensure better coordination for running ITIs and polytechnic colleges which are now run by the labour department and the science and technology department respectively, he said. Prasad also reaffirmed the government's promise of creating 20 lakh employment opportunities, in private and public sectors combined, by the time it completes its term in 2025, and to this end, a sum of Rs 200 crore has been allocated for the industries department. To encourage entrepreneurship, grants will be given by the government for startups which could be to the tune of 50 per cent of one's project cost or up to Rs 5 lakh in addition to loans of up to Rs five lakh at a nominal one per cent interest rate, he said. Women entrepreneurs will be given special incentives in the form of interest-free loans of up to Rs 5 lakh, he said. Prasad, who took over as Deputy CM in November last year, said in his maiden budget speech that the highest allocation of Rs 38,035.93 crore has been made for education, followed by Rs 16,835.67 crore for rural development, Rs 15,227.74 crore for roads, Rs 13,264.87 crore for health and Rs 8,560 crore for energy. The deputy chief minister said an allocation of Rs 4,671 crore was made for the second phase of 'Saat Nischay' (seven resolves) programme, implemented immediately after the Nitish Kumar-led NDA's return to power. Kumar had, in 2015, announced the first phase of Rs 2.7-lakh crore 'Saat Nischay', and promised to implement the second phase during the assembly polls. Promotion of entrepreneurship, enhancement of skill, improvement of irrigation facilities, strengthening of health infrastructure, better connectivity and development of clean and prosperous villages and cities are some of the components of the seven resolves. Addressing a press conference after presenting the budget, Prasad said, "We have not imposed any new tax. We have presented a budget of Rs 2,18,302.70 crore for 2021-22, which is Rs 6,541.21 crore more than the current year's estimates of Rs 2,11,761.49 crore. The revenue surplus is estimated at Rs 9,195.90 crore." The state's fiscal deficit has been estimated at Rs 22,510.78 crore in the budget, which is 2.97 per cent of the Gross State Domestic Product, estimated at Rs 7,57,026 crore, the deputy CM said. "We have kept the fiscal deficit target within the three per cent limit," he said. Lauding the "balanced" budget, Chief Minister Nitish Kumar said in a statement that it has been prepared, keeping in mind the interests of all sections of people in the society. He also expressed confidence that the budget will keep up the growth momentum in the state, which has witnessed double-digit annual growth rates since 2004-05. Other highlights of the budget include proposals for setting up of universities devoted to imparting higher learning in medical, engineering and sports. Rajgir, one of the state's most popular tourist destinations, has been proposed as the site for the sports university besides an international cricket stadium and sports academy, Prasad said. He also announced that solar street light will be installed in village roads under the second phase of "Saat Nischay" scheme for which Rs 150 crore has been allocated in 2021-22. He declined to comment when asked whether the state government will consider a proposal to lower sales tax on petrol and diesel to provide relief to the people. Responding to a query if the government will make any proposal to bring the petroleum products under the GST regime, principal secretary, finance, S Siddhartha, who was present at the press conference interjected, saying "we are not taking up any such suggestion for discussion." AR NAC BDC BDC

Bihar govt presents Rs 2.18 lakh crore budget, no new tax, impetus to entrepreneurship

<ul><li>The 23-year old <keyword id="1552189" type="General" weightage="20" keywordseo="pine-labs" source="Orion">Pine Labs</keyword> is betting on ‘buy now, pay later’, or <keyword id="9522245" type="General" weightage="20" keywordseo="bnpl" source="Orion">BNPL</keyword>, as well as its new acquisition of Fave, for future growth.</li><li>These strategic pivots are being put under spotlight before an impending initial public offering (<keyword id="6354763" type="General" weightage="20" keywordseo="ipo" source="Orion">IPO</keyword>) in the US where Pine Labs is reportedly hoping to bag a $6 billion valuation.</li><li>For now, the company seems to be pursuing growth on the topline, and is less worried about the size of the profit.</li></ul>The 23-year old Pine Labs is nearly as old as Google but the Noida-based firm has traditionally been a payments processing platform for merchants. Now, it’s decided to go big on ‘buy now, pay later’, or BNPL, as well as its new acquisition of <a href="https://www.pinelabs.com/media-analyst/fave-southeast-asias-fast-growing-fintech-startup-acquired-by-pine-labs">Fave</a>, which connects merchants and consumers for payments and rewards. These strategic pivots are being put under spotlight before an impending initial public offering (IPO) in the US where Pine Labs is <a href="https://economictimes.indiatimes.com/tech/startups/pine-labs-gets-wall-street-bankers-for-its-ipo-eyes-over-6-billion-valuation/articleshow/86246578.cms?utm_source=contentofinterest&amp;utm_medium=text&amp;utm_campaign=cppst">reportedly</a> hoping to bag a $6 billion valuation. This is not the first time Pine Labs is pivoting its business model. Between 2012 and 2017, it focused extensively on shifting from a traditional point-of-sale (PoS) to digital PoS, but a lot has changed since then as explained in the table below. Pine Labs: Over the years <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1998 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Smart card-based payment and loyalty solutions for the retail petroleum industry. </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2009-2012 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">PoS machines, loyalty programmes for merchants </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2012-2017 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Smart, cloud-based unified point-of-sale platform, integrated billing solutions, loyalty and rewards management </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Today </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><ul><li>Enabled PoS terminals to process all forms of digital payments.</li><li>Contactless payment solution for near-field communication (NFC)-enabled smartphones.</li><li>Expansion into Southeast Asia and Middle East. For customers - </li></ul><ul><li>PayLater -- BNPL solution</li><li>Loyalty Programmes</li><li>Prepaid issuance</li><li>Digital gift card solutions via Qwikcilver. </li></ul>For merchants - <ul><li>Working capital loans</li><li>Utility app integrations from good and services tax (GST) compliance to inventory management</li><li>Analytics to record sales, inventory, orders, the average customer spends and potential credit requirements</li></ul></td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source: Company website The share of BNPL as part of the company’s total transactions by value has already crossed the 15% mark, and will grow further as it becomes its mainstay, said Kush Mehra, chief business officer at Pine Labs, in an exclusive interaction with Business Insider India. The margin from payments as a category has been shrinking for all players and Pine Labs wants to shore it up as it prepares to go public. “For us, it (BNPL) is a crown jewel of Pine Labs,” said Mehra. “BNPL would become one of the most dominant, significant business drivers for us, and it already is,” he said. The jury is out on the other big bet i.e., adding retail customers via Fave because the acquisition happened only in April. “The first step towards our journey to really build out the B2C [business-to-consumer] story is on the back of our partnership with Fave. We've just done a quick pilot launch in India,” said Mehra. Through Fave, the company looks to start by offering discounts and gift coupons on making payments at merchant outlets, and then gradually expand its offerings to retail customers. But the focus of the company, he said, would be to continue building merchant-centric solutions and scaling them up. “At the same time, all these new areas that we have started focusing on and we just spoke about the B2C story, would also become very significant contributors in our success in the near future,” he said. Pine Labs turned profitable in the financial year ending March 2017, but swung back to losses for three consecutive years up to 2020. The financial figures for fiscal 2021 were not publicly available. <div type="javascript" title="CardEmbed" contenttype="Image"><cdata><![CDATA[<div class="flourish-embed flourish-table" data-src="visualisation/7375488"></div>]]></cdata></div> Latest data from the Registrar of Companies (RoC), as of March 2020, shows that its revenue grew 43% to ₹701.6 crore, but the bottomline sunk deeper into the red largely due to purchases of stock in trade worth ₹249.88 crore and employee benefit expense worth ₹227.88 crore. For now, the company seems to be pursuing growth on the topline and is less worried about the size of the profit. “We are going to be significantly investing in our growth story, as we are headed towards expansion into new markets, new business lines, and new products. What I'm trying to say is that this is, at the end of the day, the time to make sure that we accelerate, even if it were to come by being a little less profitable, a little less bottom-line centric,” he said. Pine Labs: Funding profile <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Date </td><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Funding Amount </td><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 15pt;overflow:hidden;overflow-wrap:break-word;">Funding Round </td><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 15pt;overflow:hidden;overflow-wrap:break-word;">Investor(s) </td></tr><tr><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:11pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sep 16, 2021 </td><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:11pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$100 mn </td><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:11pt 5pt 5pt 15pt;overflow:hidden;overflow-wrap:break-word;">Series E </td><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:11pt 5pt 5pt 15pt;overflow:hidden;overflow-wrap:break-word;">Invesco </td></tr><tr><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:11pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Jul 06, 2021 </td><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:11pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$600 mn </td><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:11pt 5pt 5pt 15pt;overflow:hidden;overflow-wrap:break-word;">Series E </td><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:11pt 5pt 5pt 15pt;overflow:hidden;overflow-wrap:break-word;">Fidelity Management and Research Co., BlackRock, Ishana, Tree Line, Neuberger Berman, Kotak Mahindra Bank, IIFL Asset Management, others </td></tr><tr><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:11pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">May 17, 2021 </td><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:11pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$285 mn </td><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:11pt 5pt 5pt 15pt;overflow:hidden;overflow-wrap:break-word;">Series D </td><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:11pt 5pt 5pt 15pt;overflow:hidden;overflow-wrap:break-word;">Baron Capital Group, Duro Capital, others </td></tr><tr><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:11pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Dec 21, 2020 </td><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:11pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$46.5 mn </td><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:11pt 5pt 5pt 15pt;overflow:hidden;overflow-wrap:break-word;">Series D </td><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:11pt 5pt 5pt 15pt;overflow:hidden;overflow-wrap:break-word;">Lone Pine Capital, Sequoia Capital </td></tr><tr><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:11pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Jan 24, 2020 </td><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:11pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$85 mn </td><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:11pt 5pt 5pt 15pt;overflow:hidden;overflow-wrap:break-word;">Series C </td><td style="border-left:solid #555555 1pt;border-right:solid #555555 1pt;border-bottom:solid #555555 1pt;border-top:solid #555555 1pt;vertical-align:top;background-color:#ffffff;padding:11pt 5pt 5pt 15pt;overflow:hidden;overflow-wrap:break-word;">Mastercard </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source: Tracxn Currently, the company offers BNPL and other credit solutions to merchants via partnerships with over 30 different banks and non-banking financial institutions in India. Further, it has a network of more than 5 lakh merchant outlets in over 3,700 cities across India, Middle East, and Southeast Asia. SEE ALSO: <a href="https://www.businessinsider.in/business/ecommerce/news/the-amazon-bribery-case-in-india-is-getting-murkier-and-the-lack-of-transparency-is-not-helping/articleshow/86553927.cms">The Amazon bribery case in India is getting murkier and the lack of transparency is not helping</a> <a href="https://www.businessinsider.in/business/news/tesla-boss-elon-musk-becomes-the-richest-man-in-the-world-yet-again/slidelist/86552402.cms">Tesla boss Elon Musk becomes the richest man in the world, yet again</a> <a href="https://www.businessinsider.in/business/startups/news/ofbusiness-was-the-only-woman-led-startup-that-entered-the-unicorn-club-this-year/articleshow/86511076.cms">OfBusiness was the only woman led startup that entered the unicorn club this year</a>

Nearly as old as Google, Pine Labs is betting on these two segments to make it worth $6 billion

<ul><li><keyword id="1386164" type="PERSON" weightage="20" keywordseo="rare-earth-elements">Rare earth elements</keyword> contribute a total value of nearly $200 billion to the Indian economy.</li><li><keyword id="1334" type="COUNTRY" weightage="20" keywordseo="China">China</keyword> today controls nearly 90% of global rare earth production.</li><li>India has the world’s fifth-largest reserves of rare earth elements, nearly twice as much as Australia, but it imports most of its rare earth needs in finished form from its <keyword id="1298556" type="PERSON" weightage="20" keywordseo="geopolitical">geopolitical</keyword> rival, China. </li></ul> As <keyword id="106030" type="PERSON" weightage="20" keywordseo="US-China">US-China</keyword> geopolitical rivalry becomes a permanent feature of the <keyword id="47890" type="ORGANIZATION" weightage="20" keywordseo="global-economy">global economy</keyword>, the globalised supply chains that have powered India’s economic growth can no longer be taken for granted. Rare earth elements (REEs) are central to this new post-pandemic economic landscape: they underpin everything from advanced ballistics systems to industrial machinery and TV screens, contributing a total value of nearly $200 billion to the Indian economy. They are also crucial to emerging technologies such as renewable energy and electric vehicles. China today controls nearly 90% of global rare earth production, posing a vulnerability to manufacturing industries, which the rest of the world is moving to redress. New REE investments and <a href="https://www.mining-technology.com/features/australia-and-the-us-a-rare-rare-earth-partnership/">partnerships</a> between China’s geopolitical and geoeconomic rivals, such as Australia and the US, are being announced practically every week. These developments offer India a precious opportunity. India has the world’s fifth-largest reserves of rare earth elements, nearly twice as much as Australia, but it imports most of its rare earth needs in finished form from its geopolitical rival, China. With adjustments to the existing policy, India could emerge as a <keyword id="459885" type="PERSON" weightage="20" keywordseo="rare-earths">rare earths</keyword> supplier to the world and use these resources to power a high-end manufacturing economy geared to the needs of the 21st century. Here’s how. Existing Bottlenecks Merely having deposits of rare earths is no guarantee of being able to exploit them. The mining and extraction processes are capital-intensive, consume large amounts of energy, and release toxic by-products, an issue that has caused some controversy in India before. Processed <keyword id="56292" type="ORGANIZATION" weightage="20" keywordseo="Minerals">minerals</keyword> usually take the form of a rare earth oxide (REO), which then needs to be converted into a pure metal before it can be used to manufacture anything. India today has granted government corporations such as Indian Rare Earths Limited (IREL) a monopoly over the primary mineral that contains REEs: monazite beach sand, found in many coastal states. IREL produces rare earth oxides (low-cost, low-reward “upstream processes”), selling these to foreign firms that extract the metals and manufacture end products (high-cost, high-reward “downstream processes”) elsewhere. IREL’s <a href="https://www.irel.co.in/">focus</a> is to provide thorium — extracted from monazite — to the Department of Atomic Energy. As such REE production in India is conducted almost entirely by a government organisation focussed on something else entirely! Unsurprisingly, with little incentive to provide to global markets, IREL accounts for only a minuscule fraction of the world’s production: only <a href="https://ibm.gov.in/writereaddata/files/02182020103349Rare%20Earths_2018.pdf">2265 tonnes</a> of REOs in 2016-17, providing almost no value to domestic manufacturers and consumers, who continued to import finished REE derivatives from China. Reforms and Solutions The key challenge for India today is to scale up upstream and downstream processes in the rare earths value chain. Depending on IREL and government financing to do so is to play the game with one hand tied behind its back. India must open its rare earth sector up to competition and innovation, and attract the large amounts of capital needed to set up facilities to compete with, and supply to, the world. The best move forward might be to create a new Department for Rare Earths (DRE) under the Ministry of Petroleum &amp; Natural Gas, drawing on its exploration, exploitation, refining, and regulation capabilities. This DRE should oversee policy formulation and focus on attracting investment and promoting R&amp;D, with its first move being to allow private sector companies to process beach sand minerals within appropriate environmental safeguards. It should also create an autonomous regulator, the Rare Earths Regulatory Authority of India (RRAI), to resolve disputes between companies in this space and check compliance. There are three possible approaches to maximising India’s rare earth potential. First, the DRE could secure access to REEs of strategic importance by offering viability gap funding to companies to set up facilities in the upstream sector. This could make Indian REOs globally competitive. Alternatively, it could focus on downstream processes and applications, such as manufacturing magnets and batteries; this would require a focus on port infrastructure and ease of doing business measures to allow Indian manufacturers to import REOs from whitelisted producers cheaply. Finally, it could coordinate with other agencies to partner directly with groupings such as the Quad, building up a strategic reserve as a buffer against global supply crises. According to a 2016 <a href="https://economictimes.indiatimes.com/industry/indl-goods/svs/metals-mining/india-not-realising-potential-of-rare-earth-industry/articleshow/54940321.cms">estimate</a>, the Indian REE industry could potentially “net a capital employment of about Rs 121,000 crore, including Rs 50,000 crore worth of foreign exchange”. The US, Japan, and Australia are announcing collaborations in this sector worth hundreds of millions of dollars; meanwhile, India’s relationship with China offers little guarantee that there will be no coercive economic actions in coming decades. India has already missed one global wave of industrial manufacturing. Its rare earth reserves and the post-pandemic economic situation offer it an opportunity to ride the next wave towards high-tech manufacturing. It must be sure not to miss this chance. The author, Anirudh Kanisetti, is Associate Fellow at the Takshashila Institution. SEE ALSO: <a href="https://www.businessinsider.in/india/news/petrol-and-diesel-will-become-cheaper-by-5-in-assam-only-from-today-midnight/articleshow/80876847.cms" data-type="tilCustomLink" target="_blank">Assam is making fuel and alcohol cheaper to woo voters ahead of the Assembly Elections in April</a> <a href="https://www.businessinsider.in/business/auto/news/centre-earned-100-crores-by-sharing-vehicle-registration-data-with-companies-such-as-bmw-axis-bank-bajaj-allianz-lt-and-others/articleshow/80879638.cms" data-type="tilCustomLink" target="_blank">Centre earned ₹100 crores by sharing vehicle registration data with companies such as BMW, Axis Bank, Bajaj Allianz, L&amp;T and others</a> <a href="https://www.businessinsider.in/policy/news/gst-council-may-consider-merging-the-12-and-18-tax-slab-in-the-next-meeting-says-finance-minister-nirmala-sitharaman/articleshow/80876459.cms" data-type="tilCustomLink" target="_blank">GST Council may consider merging the 12% and 18% tax slab in the next meeting, says Finance Minister Nirmala Sitharaman</a>

OPINION: Here's how India can end Chinese dominance in rare earths

<ul><li><keyword id="46013" type="CITY" weightage="20" keywordseo="Kotak-Mahindra-Bank">Kotak Mahindra Bank</keyword> reported an yearly improvement in profit of 27% and income growth of 17% in the second quarter. </li><li>The bank is on ‘alert’ as it recovers from the impact of COVID-19 on its balance sheets.</li><li>The bank has not recognised any non-performing assets (NPA) since August 31, adhering to the Supreme Court’s order. If not for that, its gross non-performing assets (GNPA) would have been at 2.07% and net non-performing assets (NNPA) would have been at 0.74%.</li></ul>Kotak Mahindra Bank (KMB) is still on ‘alert’ as it recovers from the COVID-19 impact. In the three months from July to September, its profit increased by 27%, and net interest income (NII) has grown by 17% compared to the same period last year. The numbers have come in a day after a news report indicated that KMB is eyeing a merger with <keyword id="46717" type="CITY" weightage="20" keywordseo="IndusInd-Bank">IndusInd Bank</keyword>, even as <a href="https://www.businessinsider.in/finance/banks/news/indusind-bank-shares-rally-4-after-rumours-of-kotak-mahindra-bank-merger/articleshow/78867706.cms">spokespersons</a> of both financial institutions have denied this. <div type="Article" hostid="261" msid="78867706" title="IndusInd Bank shares rally 4% after promoters refute reports of merger with Kotak Mahindra Bank" mstype="2" mssubtype="0"></div> Even after earnings, the bank’s shares continue to flat in the stock market, marginally in the red. <div type="image" title="Kotak Mahindra Bank share price" msid="78869847" hostid="261" caption="&amp;lt;p&amp;gt;Kotak Mahindra Bank share price since 1 July 2020&amp;lt;/p&amp;gt;"></div> Impact of compound interest waiver for moratorium loans The bank is yet to address the impact of compound interest waiver for loans under moratorium. At the end of the first quarter, KMB had 10% of its total portfolio opting for the moratorium, which is considerably lower than other banks — except HDFC Bank. The bank has not recognised any non-performing assets (NPA) since August 31, adhering to the Supreme Court’s order. If not for that, its gross non-performing assets (GNPA) would have been at 2.07% and net non-performing assets (NNPA) would have been at 0.74%. “As a matter of prudence, the bank has made additional provisions (including on interest accrued) of ₹92 crore on such advances,” it said its filing. Kotak Mahindra Bank: Asset Quality <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">GNPA </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.55% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">NNPA </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.64% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Capital adequacy ratio </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">22% </td></tr></tbody></table>Source: Company filings. GNPA and NNPA as on 30 September 2020. At the end of the second quarter, KMB’s COVID-related provisions stood at ₹ 1,279 crore, accounting for 0.62% of its net advances. Non-specific provisions towards advances — including standard and COVID provisions — is at 177% of the net non-performing assets (NNPA) of the bank. The bank’s CASA ratio has also improved from 53.6% to 57.1% on a yearly basis. According to the bank, high frequency indicators are positive. This includes GST collections, power, petroleum and other sectors. Increased government spending and the Monetary Policy Committee’s (MPC) accommodative stance were also commended. Considering the slow down in retail loans, KMB is looking to open up select segments for credit growth — home loans and high quality corporates in particular. According to the bank, rural and semi-urban India shows promise. This is reflected by the recovery of India’s infrastructure sector, which surprised everyone, including one of India’s richest men — <a href="https://www.businessinsider.in/business/corporates/news/kumar-mangalam-birla-says-cement-industry-is-recovering-and-analysts-find-evidence-of-it-outside-ultratech-too/articleshow/78791281.cms">Kumar Mangalam Birla. </a> Updated: Correction made. Kotak Mahindra Bank's gross non-performing assets (GNPA) would have been at 2.07% not 5.07% SEE ALSO: <a href="https://www.businessinsider.in/finance/banks/news/indusind-bank-shares-rally-4-after-rumours-of-kotak-mahindra-bank-merger/articleshow/78867706.cms">IndusInd Bank shares rally 4% after promoters refute reports of merger with Kotak Mahindra Bank</a> <a href="https://www.businessinsider.in/tech/enterprise/news/stack-overflow-ceo-prashanth-chandrasekar-explains-how-stack-overflow-flipped-the-script-on-software-development/articleshow/78854564.cms">EXCLUSIVE: Communities, brand and then product — CEO explains how Stack Overflow flipped the script on software development</a> <a href="https://www.businessinsider.in/india/news/trump-calls-india-china-and-russia-filthy-while-justifying-exit-from-paris-agreement/articleshow/78821267.cms">Trump calls India, China and Russia ‘filthy’ while justifying exit from Paris Agreement</a>

Kotak Mahindra Bank still on ‘alert’ as profit improves 27% over the last three months

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">Thomson ReutersIndian Prime Minister Modi addresses a news conference during his official welcoming ceremony at the State House in Nairobi, Kenya.</div></div></div>In a historic move on Wednesday evening, India's upper house of parliament passed a constitutional amendment that clears a path for <a href="http://www.bbc.com/news/world-asia-india-36950205">the most significant tax reform for India since independence</a>. That tax reform would be the Goods and Services Tax (GST), which would <a href="http://www.bloomberg.com/news/articles/2016-08-02/what-s-the-big-deal-about-india-s-goods-and-services-tax-q-a">replace at least 17 state and federal taxes</a> with one unified tax and put India on the path toward being a "single common market."The GST has a lot of potential benefits, number one simply being a substantially simplified tax structure. According to a note from Morgan Stanley, India is ranked 157 out of 189 countries by the World Bank for "ease of paying taxes," reflecting how inefficient the current system is.The unified structure should also integrate state economies more smoothly, allowing goods to move more easily across state borders; and increase tax compliance by making it easier for businesses to follow the tax regime. And of course, this should all increase tax revenues for the government, assuming the tax isn't too high. The upper house's approval of the bill <a href="http://www.cnbc.com/2016/08/04/indias-goods-and-services-tax-may-disrupt-economy-in-the-short-term.html">has been called a "milestone"</a> in Prime Minister Narendra Modi's reign. Modi is known for his pro-business stance and <a href="http://www.businessinsider.com/narendra-modi-profile-2015-11">extensive plans for reforms and progress</a> in India, some of which have been <a href="http://www.businessinsider.com/the-biggest-turnaround-story-in-emerging-markets-2016-7">credited for India's gradual GDP growth</a> over the past few years. But he's also been criticized for not doing enough during his two-year reign. "Elected in 2014 with a promise of bold economic transformation," <a href="http://www.nytimes.com/2016/08/04/world/asia/india-goods-and-services-tax.html">the New York Times writes</a>, "he had been unable to marshal parliamentary support to pursue several of his central initiatives, such as overhauling land and labor laws."So the amendment's approval by the upper house, in which Modi's party was a minority, is a major success for Modi and his party, and signals faith in the government's ability to carry out reforms and helps reestablish India's reform credential. <div class="KonaFilter image-container display-table float_left"><div><div class="image on-image">AP Photo/Altaf QadriIndia's Finance Minister Arun Jaitley reacts as he addresses a press conference in New Delhi, India, Thursday, Aug. 4, 2016.</div></div></div>However, it's still unclear what the effect of the GST will be. <a href="http://www.livemint.com/Politics/pjiRHk6cEELGdTrloapeCJ/Arun-Jaitley-moves-GST-bill-in-Lok-Sabha.html">Finance Minister Arun Jaitley stated </a>that the tax will boost economic growth by 1 to 2 percentage points, and a new <a href="https://www.research.hsbc.com/R/25/z7NPl6wgedA3">research note from HSBC</a> estimates that it could add 80bps to GDP growth.But that all depends on what the actual tax rate is going to be. Currently it's estimated that it will be between 15% and 18%, and won't apply to alcohol products, petroleum, and electricity. Moreover, a recent note from Societe Generale says that the generous estimates could be massively over-hyped, and that the claim that it could boost GDP by 1.5 to 2% is "not backed by any meaningful research."The note also references a <a href="https://ideas.repec.org/p/tul/wpaper/1524.html">recent paper from Bibek Adhikary</a>, which found that while VAT does have a positive impact on the economies of wealthy countries, it doesn't seem to have any significant impact on poorer countries. Societe Generale is also skeptical that the GST will increase tax compliance that significantly, especially if the standard GST rate eventually ends up higher than it is now. However, most experts agree that whatever happens in the long run, the short-term impact is probably going to be messy. HSBC sees adjustment costs for the private sector as well as the central government, and there's probably going to be a <a href="http://www.bloomberg.com/news/articles/2016-08-02/what-s-the-big-deal-about-india-s-goods-and-services-tax-q-a">short-term inflation increase</a>. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/air-force-plane-drops-armored-humvees-5000-feet-2016-7">Watch the Air Force drop 8 armored Humvees out of a plane from 5,000 feet</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="gzdjYxNTE6U-A9W52vTBW0yzCfHK7zo2" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

India just took a big step towards transforming into 'a single common market'

<ul><li><keyword id="6367091" type="UNKNOWN" weightage="20" keywordseo="petrol">Petrol</keyword> and diesel prices reached an all-time high in <keyword id="3658" type="COUNTRY" weightage="20" keywordseo="India">India</keyword> this morning. </li><li>Not only is this a result of the rise in global <keyword id="6359072" type="UNKNOWN" weightage="20" keywordseo="oil">oil</keyword> prices, which are nearing $80 a barrel, but also because of the Indian <keyword id="26362" type="ORGANIZATION" weightage="20" keywordseo="Government">government</keyword>’s <keyword id="6356916" type="UNKNOWN" weightage="20" keywordseo="excise-duty">excise duty</keyword> hikes. </li><li>Excise duties and value-added taxes currently comprise over 50% and 40% of the price of petrol and diesel, respectively. </li></ul> Paid a bomb for fuel today? After a three-week pause in the build-up to the Karnataka elections, fuel prices in India reached <a href="https://www.iocl.com/TotalProductList.aspx">a record high</a> this morning after increasing for eight consecutive days. In Delhi, petrol and diesel cost ₹76.87 per litre and ₹68.08 per litre, respectively - a 10% plus rise from the beginning of 2018. The highest fuel prices in the country were seen in Mumbai, where petrol is being sold for ₹84.70 per litre, while diesel costs ₹72.48 per litre. Since June last year, India has had a dynamic pricing regime, wherein fuel prices change on a daily basis in response to the global market. This alarming spike, however, begs the question. Why are fuel prices in India so high? Firstly, global oil prices are rising, <a href="https://oilprice.com/">nearing $80</a> a barrel amid curbs in production by OPEC (Organisation of Petroleum Exporting Countries) countries like Saudi Arabia. However, if this were the only reason, then countries that import oil from India, like <a href="http://ceypetco.gov.lk/marketing-sales/">Sri Lanka</a>, where petrol is currently ₹59 a litre, and Bangladesh, where petrol is <a href="http://www.bpc.gov.bd/contactus.php?id=39">₹69 a litre</a>, would have similar (if not higher) fuel prices. In addition to the global price of crude oil that is borne by distributors, fuel prices in India are composed of excise duty, which is collected by the central government, and value-added tax, which goes to state governments. The higher fuel prices are a direct result of the central government’s taxation and excise policy on petrol and diesel. Since taking over the Centre in 2014, the BJP-led government has hiked excise duties on fuel more than 10 times. It bears mentioning, however, that there have been no hikes this year though global oil prices have risen. Since the initial part of the BJP’s stint coincided with a sharp reduction in global oil prices, it imposed higher duties on customers in order to increase its revenues. As a result, consumers did not benefit from lower oil prices. Despite the price of Brent crude oil plummeting from <a href="https://oilprice.com/oil-price-charts">$102 a barrel </a>in July 2014 to $34 in early 2016, the price of petrol in Delhi only fell from <a href="https://www.iocl.com/Product_PreviousPrice/PetrolPreviousPriceDynamic.aspx">₹73.6 per litre</a> in July 2014 to a low of ₹56.6 by March 2016. From an excise duty of ₹9.20 a litre on unbranded petrol in November 2014, excise duties currently stand at ₹19.48 per litre. Meanwhile, the excise duty on diesel has risen from ₹3.55 a litre in November 2014 to a current level of ₹15.33. Thus, excise duties comprise roughly 25% of the purchase price of fuel today. Including VAT, the proportion comes to <a href="http://www.thehindu.com/news/national/petrol-diesel-prices-hit-highest-level/article23957119.ece">more than 50% in the case of petrol and over 40% for diesel. </a> A correction is necessary High fuel prices affect everyone. They significantly increase your transportation expenses and reduce your disposable income. They increase the costs of transporting goods for companies, which leads to higher product prices. They lead to higher airfare. Even if you don’t own a car, you end up paying higher for transport. The government is likely aware that higher fuel prices and the resulting contraction in demand and investment will weigh on economic growth. Hence, it needs to act decisively. Earlier this week, India’s Oil Minister, Dharmendra Pradhan, told reporters that the government was <a href="https://timesofindia.indiatimes.com/city/bhubaneswar/alternatives-being-explored-to-check-fuel-prices-oil-minister/articleshow/64253207.cms?&amp;utm_source=Articleshow&amp;utm_medium=Organic&amp;utm_campaign=Related_Stories">exploring measures to reduce fuel prices </a>but he gave no details on what these measures were. Since the government has no control over international oil prices, it seems that the only option at its disposal could be to reduce either the duties or value-added taxes on fuel. Another measure involves scrapping duties and value-added taxes entirely and bringing fuel products under the GST regime - something that has been proposed by a number of experts as well <a href="https://www.financialexpress.com/industry/ficci-for-urgent-excise-duty-cuts-on-fuel-as-transport-oil-prices-cross-previous-highs-in-delhi/1175293/">as the FICCI,</a> an industry association. Even the highest tax rate of 28% for luxury products would result in lower prices. Any measures, however, will entail a reduction in government revenues. But it will be worth the boost to aggregate demand.

Here’s why fuel prices in India are at a record high

Emphasizing on the need to reduce the tax burden on the export sector in India, Federation of Indian Export Organisations (<keyword id="154579" type="CITY" weightage="20" keywordseo="FIEO">FIEO</keyword>) discussed the recently passed Goods and Services Tax (GST) and reintroduction of interest subvention scheme in its meeting with Finance Minister <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> on Tuesday. 
	 
	“We would suggest that all the incidence of Indirect Taxes at the State levy including electricity duty, sales tax on diesel and petroleum, turnover tax, etc. should be brought within the rebating mechanism so that exports are zero rebated at a time when global competition is becoming serious and orders are being lost on razor thin margins,” said M Rafeeque Ahmed, president of the apex body of exporters. 
	 Another recommendation made by the association is that exporters should be exempted from all indirect taxes especially the removal of the National Calamity Contingent Duty (<keyword id="2559752" type="ORGANIZATION" weightage="20" keywordseo="NCCD">NCCD</keyword>) on crude oil, which is levied at Rs 50 per tonne. 
	 
	“Petroleum product exports constitute more than 19% of India’s total exports. Removal of this duty on imports under advance licenses, which only earns the Government a sum of less than Rs 100 crore per annum, will lead to improving the competitiveness of Indian exports. Petroleum refining is a business based on very thin margin. NCCD imposes additional cost to the industry which is not rebated. At a time, when even exports of petroleum products have witnessed a decline in recent months, there is a need to take all necessary measures to support export of petroleum products,” added Ahmed. 
	 The association also suggested that exporters should also be exempted from excise duty on purchase of capital goods under the current Export Promotion Capital Goods (<keyword id="406717" type="ORGANIZATION" weightage="20" keywordseo="EPCG">EPCG</keyword>) scheme. 
	 
	Ahmed in its letter has also stated that exporters should not be liable to pay service tax. The body has stated that if overall exemption from service tax adversely impacts the revenues earned from taxes, then exporters should not be subjected to pay service tax on services taken from ECGC Premium, container freight stations, Clearing House Agents charges, terminal handling charges for exports, bank charges, services charges for conversion of inward remittances as well as courier charges for documents and commercial shipments. 
	 
	“The government should also look into the matter of delay in payment of duty drawback. It has been experienced that payment of duty drawback and central excise rebate claims are delayed during the last quarter of the Financial Year. Some technical omission is subsequently shown to justify the delay. Moreover, interest is also not paid on such delayed legitimate payments. The delay in the reimbursement of drawback claims causes a lot of problems for the exporters in carrying on with their new export orders. It is requested that an urgent and permanent solution of this problem may be found to avoid blockage of exporters working funds and consequent affect to country’s exports,” noted Ahmed. 
	 
	Apart from exemption from service tax and other such suggestions, FIEO has urged the government to re-introduce interest subvention scheme that expired on March 31, 2014. The government had provided 3% interest subvention on export credit for sectors such as handicrafts, handlooms, carpets, readymade garments, processed agricultural products, sports goods and toys along with 235 sub-sectors of engineering sectors. The association has suggested that the scheme should not just be confined to certain sectors, but should cover the entire export community including the services sector and merchant export sector. 
	 
	“We have also suggested the government to augment the flow of credit by bringing exports under Priority Sector (5% of total lending within 40% norms for Priority sector). The availability of capital and cost of capital is of paramount importance. The share of export credit in net bank credit has come down from over 9% to 3.5% in December, 2013 as against RBI desired level of 12%. Banks are reluctant to provide credit to export sector,” stated Ahmed. 
	 
	In its meeting with Finance Minister Jaitley, the association has also recommended the government to provide funds for marketing and branding exercise of Indian goods that are exported overseas. 
	 “An Export Development Fund (<keyword id="334775" type="COMPANY" weightage="20" keywordseo="EDF">EDF</keyword>), with focus on marketing research and innovative tools of marketing, would help not only the existing exporters but would attract new entrepreneurs in the field of exports. The corpus of the fund should be at least 1% of preceding year’s exports. The detailed guideline for operation of the EDF can be worked out by the Department of Commerce in consultation with stakeholders,” averred Ahmed.

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