India to benefit from shifting of global supply chains from China: Survey


India could benefit from the likely shift in global supply chains from to other economies in the aftermath of the COVID-19 pandemic, according to a survey.

The Ficci-Dhruva Advisors Survey conducted this month covered more than 150 companies in India.

“Another major outcome of COVID-19 is the likely shift in global supply chains away from to other economies. Nearly 70 per cent of the survey participants have said India could benefit from this move and they expect a fair share of manufacturing to shift from to India in the near future,” said Ficci on the findings of the survey.

Moreover, the prospect of introduction of a vaccine against COVID-19 early next year has improved the confidence level of businesses, with almost 74 per cent of the participants foreseeing a significant positive impact on their business once the vaccine is made available, the survey revealed.

However, to capitalise on the opportunities that could come India’s way, there is need to strengthen its manufacturing ecosystem. Under the Aatmanirbhar Bharat package, the government has introduced several measures to address the immediate pain points of the economy as

MSMEs, small dealers not to be affected by 1% cash GST payment rule


Small businesses and dealers will not be impacted by the new government rule of paying at least 1 per cent of liability in cash as only entities with annual turnover of Rs 6 crore and above are required to follow the new rule, sources said.

After unearthing rampant use of fake invoices to evade goods and services tax (GST), the Central Board of Indirect Taxes and Customs (CBIC) had last week amended rules to make it mandatory for businesses with monthly turnover of over Rs 50 lakh to pay at least 1 per cent of their liability in cash.

Sources said the rule applies only to about 45,000 taxpayers out of the taxpayer base of 1.2 crore and genuine dealers and businesses would not be impacted.

The new rule, they said, has been brought to check use of fake invoices to claim credit for tax paid on non-existent or highly inflated input cost.

The new rule restricts the use of input tax credit (ITC) for discharging GST liability to 99 per cent, effective January 1, 2021.

The sources added that

India to become 5th largest economy in 2025, 3rd largest by 2030: CEBR


India, which appears to have been pushed back to being the world’s sixth biggest economy in 2020, will again overtake the UK to become the fifth largest in 2025 and race to the third spot by 2030, a think tank said on Saturday.

India had overtaken the UK in 2019 to become the fifth largest economy in the world but has been relegated to 6th spot in 2020.

“India has been knocked off course somewhat through the impact of the pandemic. As a result, after overtaking the UK in 2019, the UK overtakes India again in this year’s forecasts and stays ahead till2024 before India takes over again,” the Centre for Economics and Business Research (CEBR) said in an annual report published on Saturday.

The UK appears to have overtaken India again during 2020 as a result of the weakness of the rupee, it said.

The CEBR forecasts that the will expand by 9 per cent in 2021 and by 7 per cent in 2022.

“Growth will naturally slow as India becomes more economically developed, with the annual GDP growth expected to sink

Manufacturing firms log ‘softer contraction’ in sales at 4.3% in Q2: RBI


Demand conditions in the sector returned to the recovery mode with a softer contraction of 4.3 per cent (Y-o-Y) in the second quarter of this fiscal in terms of nominal sales after shrinking 41.1 per cent in the previous quarter that was hit by countrywide lockdowns due to COVID-19, according to RBI data.

The recovery was led by iron and steel, food products, cement, automobile and pharmaceuticals companies, showed the data on the performance of the private corporate sector during the second quarter of 2020-21.

companies reported sales of Rs 5,99,479 crore in the second quarter, compared to Rs 3,97,233 crore in April-June of FY 2020-21.

The data has been drawn from abridged quarterly financial results of 2,637 listed non-government non-financial (NGNF) companies, the RBI said.

Nominal sales of non-IT services sector also registered lower contraction of 14.5 per cent (Y-o-Y) led by expansion in sales of telecommunication and real estate companies.

Sales growth of IT sector companies remained steady at 3.6 per cent (Y-o-Y) in Q2 FY 2020-21.

As per the data, sales of non-IT firms and IT firms during

Bangladesh, India finalising first bilateral rice deal in 3 years: Report


is finalising a purchase of 150,000 tonnes of rice from India’s NAFED, the New Delhi-based state agency told Reuters, in what would be the first such bilateral deal in three years after floods in sent local prices to a record high.

India, the world’s biggest rice exporter, is offering a steep discount to supplies from rivals Thailand and Vietnam to cut its surplus after a bumper harvest.

“We are negotiating with Bangladesh,” said a spokesman for NAFED (the National Agricultural Cooperative Marketing Federation of India Ltd). “NAFED is in a position to supply up to 500,000 tonnes rice to

A senior official with Bangladesh’s food ministry said they could buy 100,000 tonnes of parboiled rice and 50,000 tonnes of white rice under a government-to-government deal.

India could sell parboiled rice at around $407 and white rice at around $417 per tonne on a cost, insurance and freight (CIF) liner out basis, an Indian government source said. The rates are about a third cheaper than those from Thailand and Vietnam.

The entire shipment is likely to be made in the first quarter

Companies hopeful of economic recovery in 2021 but cautious about Covid-19


Sanitaryware makers to

manufacturers of consumer durables remain optimistic about an economic revival in 2021 but cautious as the risk of COVID-19 pandemic still exists, officials said on Wednesday.

Many companies across sectors are looking to make their balance sheets strong after they have experienced market disruptions in the current calendar year due to the raging global outbreak, they said.

Firms ranging from tourism, food and beverage sectors to sanitaryware industry are focusing on the health and hygiene segment and strengthen their digital presence to overcome the challenges, the officials said, adding that the economic revival is expected in the second half of the next year, they said.

“Despite the major blow in the economy in 2020 due to the pandemic, 2021 seems to be the year of redemption and we can expect the economy to not only recover but also to show significant signs of growth,” Roca Bathroom India managing director KE Ranganathan said.

Revenue from some of its brands has reached 90-100 per cent of the pre-COVID levels, while sales from the touchless and hygiene products have gained momentum and the company has also

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