Page 13 - Banking Finance January 2018

ROUNDUP

INDUSTRY

NEWS
NEWS
NEWS
NEWS
NEWS

India's GDP to grow at 7.4% in 2019: United Nations Over one-third of regis-
India's economy is likely to grow by 7.2% in 2018 and move up further to 7.4% tered companies out of
in the following year on the back of strong private
consumption, public investment and the ongoing business
structural reforms, a United Nations (UN) report said. According to official data more than
one-third of
Overall, economic outlook for South Asia is seen
largely favourable and steady for the short term, not- the 1.7 mil-
withstanding significant medium-term challenges, said the 'World Economic Situ- lion regis-
ation and Prospects 2018' report unveiled by United Nations Department of Eco- tered compa-
nies in India
nomic and Social Affairs (UN DESA). "The economic outlook remains steady and were shut
largely favourable in South Asia, driven by robust private consumption and sound down as on end of October. While
macroeconomic policies," the report said.
authorities step up their clampdown
Govt reviews tax norms for startup Companies on companies suspected of being used
as a conduit for illegal activities, the
The government is reviewing the regime for startups in a bid to make it more
number of active firms stood at little
attractive for entrepreneurs, especially on the tax front. That discussions have
over 1.13 million as on October 31.
been initiated across ministries over the last few days, ahead of Prime Minister The corporate affairs ministry, which
Narendra Modi's meeting with several startups and their CEOs during the Glo- is implementing the Companies Act,
bal Entrepreneurship Summit.
has so far struck off the names of
Customs duty raised on electonic goods around 224,000 entities that have not
been carrying out business activities for
The government has raised customs duty on various electronic products includ- long. "The total number of companies
ing mobile phones, microwave ovens and cameras to registered in the country as on Octo-
boost local manufacturing and create jobs. The increase ber 31, 2017, stood at 17,04,319.
in customs duty will give local manufacturers a cost There were 11,30,784 active compa-
advantage over imports. The move will also help the nies as on October 31, 2017," the
government boost customs duty collection at a time ministry said in a report for October.
when goods and services tax (GST) receipts have fallen below expectations.
According to the report, out of the
The duty increase will not impact imports from countries such as Thailand and total, 535,000 companies were shut,
Malaysia, with which India has free trade agreements. While it has been in- 1,123 were assigned dormant status,
creased by 5 percentage points on items such as mobile phones, video recording 5,957 were under liquidation and
devices, electricity meters and digital cameras, it has been raised by 10 percent- 31,666 were in the process of being
age points on items like microwave ovens, lamps and lighting fixtures. struck-off, among others.

BANKING FINANCE | JANUARY | 2018 | 13

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