e-Shang Redwood to re-enter India, invest $100 million annually

Source: LiveMint.com, June 26, 2017

Mumbai: International logistics developer e-Shang Redwood (ESR) is returning to India with plans to invest over $100 million in the country annually, a top executive at the company said.

Warburg Pincus-backed ESR is one of Asia’s largest developers and operators in logistics and warehousing. It was formed by the merger of e-Shang Cayman Ltd and Redwood Group Asia Pte. Ltd in 2016. Based out of Hong Kong and Singapore, it owns and manages around 7.3 million sq. metres of assets in China, Japan, Singapore and South Korea.

Between 2006 and 2009, Redwood Group (before its merger with e-Shang) had secured land and started discussions to form joint ventures in India, but none of the projects took off. The company finally decided to leave India in 2011 to concentrate in the “more institutional, liquid and capital-intensive logistics markets of Japan, China and South Korea around the time,” Charles de Portes, co-founder and president of ESR, told Mint over the phone Read the rest of this entry »

All you need to know about GST

download.jpgSource: LiveMint.com, June 26, 2017

What is GST?

Goods and Services Tax (GST) is a value-added tax at each stage of the supply of goods and services precisely on the amount of value addition achieved. It seeks to eliminate inefficiencies in the tax system that result in ‘tax on tax’, known as cascading of taxes. GST is a destination-based tax on consumption, as per which the state’s share of taxes on inter-state commerce goes to the one that is home to the final consumer, rather than to the exporting state. GST has two equal components of central and state GST.

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India’s exposure to US securities touch a high of $124 billion

Source: The Economic Times, June 25, 2017

WASHINGTON: India increased its holding of American government securities to USD 124.1 billion at the end of April.

This is also the highest level since July 2016 when the exposure stood at USD 123.7 billion.

At the end of April, Japan had the maximum holding of USD 1.106 trillion, followed by China with USD 1.092 trillion. The latest data available with the US Treasury Department show that India’s exposure jumped by USD 7 billion to USD 124.1 billion in April. The country had holding to the tune of USD 117.1 billion in March.

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SEZs keen on FTA rates, commerce ministry working on proposal

Source: The Economic Times, June 25, 2017

NEW DELHI: The commerce ministry is working on a proposal to allow special economic zone (SEZ) units to sell products outside these tax-free enclaves at concessional duty rates. An SEZ area is considered to be a foreign territory for trade operations and duties and are mainly set up for the export purpose.

However, goods can be supplied from an SEZ unit to a DTA (domestic tariff area or outside SEZ) buyer on payment of appropriate Customs duty as products coming from these zones are treated as imports into the country. The SEZ players have demanded that they be allowed to sell their goods in DTA on same terms as applicable under free trade agreements (FTAs) signed by India with different countries.
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India-Australia to boost collaboration in clothing, fashion

download (8).jpgSource: IBEF.org, June 23, 2017

New Delhi: India and Australia will intensify cooperation in the field of textiles, clothing, handloom and fashion, with the government approving an agreement between the two nations in this regard.

The Memorandum of Understanding between the Ministry of Textiles and the Department of Foreign Affairs and Trade, Australia will benefit weavers.

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US announces $7.5 mn to advance India’s power grid

download (7).jpgSource: The Hindu Business Line, June 22, 2017

The US will provide $7.5 million to help advance India’s power grid as part of their commitments to ensure access to affordable and reliable energy in both countries.

The Ministry of Science and Technology and industry will match the commitment of US’ Department of Energy, bringing the total commitment to $30 million, officials here said. “This new consortium demonstrates the US and Indian commitments to ensuring access to affordable and reliable energy in both countries,” Energy Secretary Rick Perry said ahead of Prime Minister Narendra Modi’s visit here next week.

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FIEO sets export target of US$ 325 bn for this fiscal

download (6)Source: IBEF.org, June 22, 2017

New Delhi: With exports recording continuous growth, exporters body FIEO expects that the country’s merchandise shipments would reach USD 325 billion this fiscal.

Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta also said while India is showing a positive trend on exports since the last nine months, there is a bit of anxiety in the business with regard to the Goods and Services Tax (GST).

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