Daily Financial News 17th Oct 2019

Daily Financial News Analysis – 17th Oct’19 | PDF Download

Defence Minister on Defence Products

  • 1st detailed interview after takingover the portfolio.
  • Government’s priority
  1. Cut down dependence on imports
  2. Develop indigenous capabilities
  3. Greater involvement of the private sector
  4. Special focus on start-ups
  • Current contribution of privateplayers is around 20%.
  • Private + Public: R&D + industrial entities
  •  Rafale aircraft would meet theimmediate requirements of the air force.
  • Defence exports
  •  Few years ago were negligible
  •  2018-19: Rs 10,745 crore
  • Current FY target: Rs 15,000 crore

 China’s Driving Force

  •  UN’s WIPO: China accounted fornearly ½ of global patent filings last year.
  •  Record 1.54 million applications.
  • USA ranked a distant second, withnearly 600,000 patent applications
  •  Global numbers
  •  Patent applications: 3.3 million
  •  Trademark applications: 14.3 million
  •  Industrial design: 1.3 million
  •  Asia accounting for more than twothirds.
  • China ranked first in all threecategories.
  • WIPO director-general Francis Gurry:Asia is “increasingly the global hub for intellectual property applications”, noting “impressive increases” in India.

 Bajaj e-Chetak

  • Bajaj Chetak to come back in an allelectric avatar.
  •  Bajaj aims to be the Tesla of twowheelers.Bajaj Chetak electric has beenunveiled and the e-scooter gets some modern tech like all-digital instrument cluster in order to keep up with the competition.

 Indo-US trade

  • FM: Trade negotiations between Indiaand the US are going well and will conclude sooner than expected.
  •  Last month, India and the US failed toannounce a limited trade deal in New York.
  • Washington: medical devices,information and communications technology (ICT) products, dairy products.

CEA K V Subramanian on Economy

  • CEA called upon the industry to startmaking investments.
  • Fundamentals of the economy are“very very strong”
  • Large companies must play a criticalrole in clearing cash dues to smaller companies.
  •  CEA said the slowdown in the economyis due to a decline in investment.
  •  Corporates must recognise that in aslowdown labour is available cheaper and so it is the time to make investments.
  • Subramanian said and added
  •  investment must be made from a longterm perspective.

 No better place to invest than in India

  • Investors can find no better place inthe world than India.
  • Democracy
  • Capitalist
  • Environment
  • Even if the court system is a bit delayed,India is a transparent and open society.
  • Government was continuouslyworking to bring reforms.
  • It has the best skilled manpower.

IMF’s advice to India

  • Forecast for India: 6.1% for thecurrent fiscal
  •  Further monetary policy easing
  •  Broad-based structural reforms
  • Reason for slowdown
  1. Corporate and environmental regulatory uncertainty
  2. Health of the non-bank financial sector
  •  Indian government has takenappropriate steps but it needs to do a lot more.
  • Clean up the balance sheets ofcommercial banks.
  •  Keep the fiscal deficit in check.
  • Severe demand slowdown andliquidity crunch.

Expand Adjudication Regime for IBC

  • IBC is meant to swiftly resolvecorporate distress and redeploy the resources locked up in the failed firm.
  • We need to tidy up the loose ends.
  •  How to allocate the proceeds ofresolution among different classes of claimants, remain incomplete.
  • The government should resist thetemptation to carry out pointless tinkering with the legislation.
  • Don’t small companies need to beresolved?
  •  The code is clear about the primacyof financial creditors over operational ones (such as suppliers of goods) with regard to claims to recoveries.
  • Committee of Creditors, who nowdecide who should get how much from the proceeds of resolution/liquidation.
  • IBC has brought a behavioural changein the borrowers.



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