Business Today 12 February 2017

This Budget will be different from all others presented in earlier years for several reasons. One, the Railway Budget is being folded into the main Budget. Two, the Budget will get out of the Plan and non-Plan expenditure format followed traditionally, and instead create a framework for revenue and capital expenditure classifications. The Budget exercise has also been advanced by a month and it will be presented on February 1, and not February 28. The idea is that Budget proposals, once passed by Parliament, should be rolled out from April 1 as soon as the new financial year begins. Earlier, Budget proposals came into effect theoretically on April 1, but it normally took a month or more for most of it to be operational. Everyone will watch this Budget keenly,…

How Super Business Edifices Are Possible This refers to your cover story on start-ups (Snip, Snip, Snip, January 29). It was an interesting investigation of the changing forms of the start-ups in India. The findings have confirmed that only start-ups who tailor their business propositions to the unpredictable demands of the market scenario will rule the roost. The primary speed and multiplication of various start-ups are being impeded by the shrinking elasticity of financial availability on account of ballooning operational expenses (opex). The Internet business firms are hit hard by the adverse business environment and the dwindling business prospects are forcing them to prune their opex and reduce capex (capital expenditure). Fierce competition among the e-retailing entrepreneurs is inherently advantageous to the customers rather than cartelisation of operatives as seen…

INSURANCE WINDFALL The Cabinet Committee on Economic Affairs headed by the Prime Minister has given in-principle nod to list five government-owned general insurance companies – New India Assurance Company, United India Insurance, Oriental Insurance Company, National Insurance Company and General Insurance Corporation of India. The government shareholding in these companies will be reduced from 100 per cent to 75 per cent in one or more tranches over a period of time GROWTH SETBACK The International Monetary Fund has lowered India’s growth forecast for 2016/17 from 7.6 per cent to 6.6 per cent following the disruption caused by the government’s demonetisation move. With the announcement, India will lose the “fastest growing major economy” tag to China, which grew at 6.8 per cent in 2016 and is expected to clock 6.5 per…

30 BIG DATA WHAT: CII Marketing Summit 2017 WHEN: January 30, Mumbai WHAT TO LOOK FOR: The one day summit organised by CII in collaboration with KPMG will bring together 200 participants, including senior marketing and business strategy leaders, and IT professionals, start-ups and entrepreneurs to analyse whether the emergence of digital marketing will need marketers to be data scientists 31 RISK APPETITE WHAT: Risk Management System: ISO 3100 series WHEN: January 31, Gurgaon WHAT TO LOOK FOR: The CII program will analyse risk management systems, including cyber and structural risk and control systems, and help identify, influence and understand company- and project-specific risk management systems. It will also throw light on software that identify frauds, such as IDEA, SPSS, Minitab, to safeguard business activities 1 GREEN FUND WHAT: Innovation…

COST Banks charge a merchant discount rate (MDR) from the retailers, who often pass on the cost to consumers. The RBI has restricted MDR for debit cards at 0.75% for transaction values up to `2,000 and 1% above that. There is no cap on MDR for credit card payments Reverse Transaction Transferring money from bank to wallet is free, but wallets charge you for a reverse transaction. Oxigen wallet charges 1.5%, inclusive of service tax Mobikwik wallet charges 4% of the transfer amount Paytm 4% of the total amount in case of non KYC customers, 1% for KYC compliant customers BENEFITS Government Initiatives Government will support Regional Rural Banks and Cooperative Banks through NABARD for issuing "Rupay Kisan Cards" to 4.3 crore Kisan Credit Card holders 1 lakh villages with…

PANEL: Public Accounts Committee CHAIRMAN: K.V. Thomas FOCUS: Review of monetary policy PANEL: Standing Committee on Finance CHAIRMAN: M. VEERAPPA MOILY FOCUS: Demonetisation and its impact PANEL: Standing Committee on Information Technology CHAIRMAN: Anurag Singh Thakur FOCUS: Digital payments and cyber security PANEL: Standing Committee on Labour CHAIRMAN: Kirit Somaiya FOCUS: Direct bank transfer of wages for contract labour Ever since Prime Minister Narendra Modi announced his government’s decision to demonetise high value currencies on November 8, there has been heightened activity among key parliamentary committees. At least four panels are looking at issues linked to demonetisation, its impact and the government’s plans for a less-cash economy. However, other than the political and public debates such moves give rise to, it is perhaps time to turn Parliamentary panels more meaningful.…