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Daily Financial News Analysis – 21st Oct’19 | PDF Download

 

Potential of India’s cruise industry

  • This year India is the host country for World Tourism Day
  • 2019 theme: ‘Tourism and Jobs: A better future for all’
  • World Travel & Tourism Council (WTTC): cruise industry contributed $8.8 trillion to the global economy in 2018 with over 319 million jobs supported worldwide.
  • Tourism can be a major contributor to the Indian economy given the right mix of policies and infrastructure.
  • WTTC forecasts direct contribution oftravel and tourism to India’s GDP to rise by 7.1% per annum over the next decade to reach 3.9% of the total GDP.
  • The total contribution of travel and tourism to employment, including jobs supported indirectly, is at 8% of total employment.
  • 150,000 cruise passengers head for a global cruise every year.
  • This represents just 3% of the outbound leisure market and indicates the tremendous potential of the Indian cruise industry.
  • However, even as the global cruise industry has shown good growth, the leisure cruise industry in India has not shown any signs of life.
  1. Robust cruise infrastructure
  2. Positive policy decisions
  3. Port fees: reasonable
  4. Removing ousting charges
  5. Granting priority berthing to Indian
  6. cruise ships Training of human resources

Meity to launch a host of initiatives

  • October 21: The Ministry of Electronics and IT is scheduled to launch
  •  Specialised portal for start-ups
  • Updated version of BHIM app
  • Indian software product registry
  • Government is organising a start-up summit and various industry leaders are expected to attend it.
  • The main objectives of the portal are to
  • Support start-ups to reach out to mentors
  • Facilitating technology resources across a gamut of incubators

Help start-ups scale from ideation to marketplace

  • Diwali Home Sales
  • With new launches at just 20,849 units — a third of the number seen in 2018 — this Diwali will be the seventh straight season of subdued sentiment.
  • Although builders are working hard to win over customers, property sales will likely stay dull.
  • The launches last year were 25% lower than those in 2017.
  • Much like last year, when the ILØ&FS issue broke just before the festive season, the DHFL and PMC Bank crises could hurt.
  • Last year 40 of the 50-60 bookings for a particular project were ultimately cancelled.
  • By one estimate, the unsold inventory across India is still upwards of 10 lakh units valued at a staggering Rs 6 lakh crore.
  • DPIIT on E-comm
  • The government has asked Amazon and Flipkart to provide details of their top five sellers.
  • Investments and commission agreements with vendors
  • DPIIT has sent two questionnaires to the ecommerce firms, seeking details of capital structure, business models and inventory management systems.
  • Amazon said it was fully compliant with the rules.
  • Brick-and-mortar trade lobby groups complained that they were in violation of foreign direct investment (FDI) norms.
  • DPIIT is also checking if the marketplaces are compliant with goods and services tax (GST) in letter and spirit.
  • Piyush Goyal said the government would take stringent action against ecommerce companies if they are found to be violating India’s ecommerce policy.

Air India sale

  • The government is planning to invite preliminary bids for 100% stake sale in Air India next month.
  • Some entities have expressed interest in the national carrier.
  • ₹58,000 crore debt pile
  • Besides huge accumulated losses running into thousands of crores.

Paddy straw into biogas

  • India’s first plant to convert paddy straw into biogas.
  • Can be used as CNG in automobiles
  • Bio manure produced from the plant as a byproduct will be organic and can be used to grow organic food and vegetables.
  • Karnal in Haryana by 2022
  • Prevent burning of crop stubble
  • Main reason for pollution
  • The plant will deploy special machines that will chop and bundle paddy straw for transportation to a storage.
  • This storage will used through the year to production CBG.
  • This unit will have the capacity to convert stubble generated from 20,000 acres of farmland in a year into gas.
  • SATAT (Sustainable Alternative Towards Affordable Transportation) scheme on CBG launched by the Ministry of Petroleum and Natural Gas.
  • SATAT was launched in October 2018
  • Target production of 15 million tonnes of CBG by 2023 from 5,000 plants.

 

 

 

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