Archive for August, 2016

04/08/2016

Rude Chinese banned from going on holiday | The Times & The Sunday Times

“Uncivilised” Chinese tourists who commit such crimes against etiquette as asking foreigners for selfies, throwing nut shells around or defacing historical sites may find themselves stuck at home because their names are on a travellers’ blacklist.

Authorities in China have been cracking down hard on individuals who sully the country’s name abroad by acting rudely or violently, and the national tourism administration introduced a blacklist for the worst offenders last year.

A draft regulation released this week will, if passed, allow government agencies and tour companies to share blacklists and bar trouble-makers from future trips.

As well as travel companies, government organisations such as customs control, quarantine and border protection bodies would potentially be able to access the blacklist and take measures against those on it.

So far the blacklist contains only 19 names. The administration said that behaviour that could lead to a tourist being blacklisted included “damaging public facilities or historical relics, ignoring social customs at tourism destinations and becoming involved with gambling or prostitution”.

The regulation draft, which is in its public comment phase, stated: “Punishments can be imposed by travel agencies or other related agencies or organisations based on the record.

”Some analysts questioned how effective implementation of the rule could be. Liu Simin, of the China Society for Futures Studies research group, said: “If tourism authorities want to restrict blacklisted tourists from travelling overseas, they can do this only through travel agencies. If travellers plan their own trips and skip the agencies, they’re out of reach.

”The introduction of the blacklist came after President Xi told Chinese tourists in 2014 to clean up their act when abroad to help to dispel negative stereotypes about them.

Talking in a light-hearted fashion, he said: “Do not litter water bottles everywhere. Do not damage coral reefs. Eat less instant noodles and more local seafood.

”The year before the president’s comments, Chinese tourists spent more than £14.5 billion on holidays abroad — more than any other country.

Badly behaved Chinese tourists have continued to make headlines since the introduction of the blacklist.

Last week a Chinese woman was arrested for common assault after throwing orange juice at a flight attendant on a flight from Dubai to Hong Kong. She is understood to have been angry because meals for her children had not been prepared by airline staff in advance.

Source: Rude Chinese banned from going on holiday | World | The Times & The Sunday Times

04/08/2016

5 Sectors That Will Benefit From India’s Proposed Tax Overhaul – WSJ

5 Sectors That Will Benefit From India’s Proposed Tax OverhaulIndia’s upper house of Parliament on Wednesday approved an overhaul of the country’s tax system that, if passed in the lower house, will lead to the implementation of a nationwide goods-and-services tax, or GST.

Here are five sectors that stand to gain.

1 Automobiles

The GST will make cars more affordable in India as it will reduce the taxes levied on the vehicles.India currently has four factory-gate tax rates of 12%, 24%, 27% and 30%, depending on the vehicle’s specifications. On top of that, there are value-added taxes, which range from 12.5% to 14.5%.

The GST will subsume all theses levies into one and passenger vehicles will likely fall into one of  two tax bands: 18% to 20% for regular cars, and up to 40% for luxury autos.

2 Logistics

Haulage and logistics companies will be able to reduce transit hours because the simplified system will mean that their drivers won’t have to wait for so long at borders to pay levies.

Currently, some companies use smaller transporters that charge lower fees because they are able to avoid paying taxes due to the inefficient system. But a more transparent tax system will mean the smaller companies are more likely to pay, leveling the field for larger players.

India’s leading 10 listed logistics companies command less than 5% of the overall market, according to a KPMG report. Stocks of some companies such as AllCargo Logistics Ltd. and Transport Corp of India Ltd. have gained more than 15% in the past month in anticipation of the passage of the GST legislation.

3 Media and entertainment

Cinema multiplex operators now pay entertainment taxes as well as several other levies to federal and state governments. The entertainment tax can be as high as 27% and operators must pay that as well as a service tax of about 15% on advertising revenue.

GST is expected to cut that tax bill, lowering operational costs and boosting margins.

Motilal Oswal Securities says that a GST rate of 18% may improve operating profit of PVR, the largest listed multiplex operator, by as much as 26%.

4 Retail

Consumers’ disposable income is expected to rise in the medium term if the GST rate turns out to be lower than current levies, boosting demand.

A more efficient tax system will also mean that market-stall owners and roadside vendors are more likely to pay tax, analysts say. That will create a more level playing field for larger shops and retailers who already pay.

The retail sector will likely also benefit from lower logistics costs as well as a fall in rental costs. Retailers currently shell out about 10%-15% of their operating expenditure on rent and infrastructure services, on which service tax is levied. But that levy would be reduced post-GST, benefiting retail companies like Future Enterprises Ltd. and Shoppers Stop Ltd.

5 Cement

Overall tax for the cement sector will likely to come down if the GST rate is set at 18%, Kotak Securities says.

After the implementation of the uniform tax, cement companies would likely pay about 920 rupees ($13.78) in tax per ton, down from about 1,320 rupees currently, the broker says. It also expects cement firms to benefit from a more efficient logistics system. This will cut costs for consumers and also help the government achieve its aim to provide housing for all by 2022.

Source: 5 Sectors That Will Benefit From India’s Proposed Tax Overhaul – WSJ

03/08/2016

Road test for homegrown transit elevated bus| Innovation

The transit elevated bus TEB-1 is on road test in Qinhuangdao, North China’s Hebei Province, Aug 2, 2016. China’s home-made transit elevated bus, TEB-1, conducted a road test running Tuesday.

The 22-meter-long, 7.8-meter-wide and 4.8-meter-high TEB-1 can carry up to 300 passengers. The passenger compartment of this futuristic public bus rises far above other vehicles on the road, allowing cars to pass underneath. [

Source: Road test for homegrown transit elevated bus[1]| Innovation

03/08/2016

India’s biggest tax reform GST looms, many companies unprepared | Reuters

Throughout years of political gridlock, the risk that India might pass its biggest tax reform since independence appeared reassuringly remote for many businesses.

Until now.Suddenly, the prospect that a new Goods and Services Tax (GST) could enter force next year has bosses panicking at the likely impact and seeking advice on how to cope.

The expected passage by parliament on Wednesday of a key constitutional amendment would resolve crucial issues needed to transform India’s $2 trillion economy and 1.3 billion consumers into a single market for the first time.

The amendment is likely to clear the Rajya Sabha after the opposition Congress party, which originally proposed the GST while in power, wrung concessions from Prime Minister Narendra Modi‘s government.

Yet the vote will only fire the starting gun in a legislative marathon in which the national parliament and India’s 29 federal states have to pass further laws determining the – still unknown – rate and scope of the tax.

At the same time, a huge IT system needs to be set up, tax collectors trained and companies brought up to speed on a levy that experts say will force them to overhaul business processes from front to back.

One boss who isn’t ready is G.R. Ralhan, head of Roamer Woollen Mills in the northern city of Ludhiana.

“Companies, particularly smaller ones, are apprehensive,” Ralhan told Reuters, calling for more time to adjust and saying a high rate of GST could put his firm out of business.

Countries that have introduced GST in the past have often faced a relative economic slowdown before the benefits of a unified tax regime feed through.

India is already the world’s fastest growing large economy, expanding by 7.9 percent year-on-year in the March quarter. Economists at HSBC forecast a boost of 0.8 percentage points from the GST within three to five years.

80-20 RULE

Tax experts say that only 20 percent of – mostly big – firms are getting ready for the GST. The rest are taking things as they come in a country where coping with a changing tax regime has been a way of life for decades.

Yet even those actively preparing must contend with a series of unknowns as the national and state parliaments tackle the task of transforming a “model” GST law into the real thing.

The first hurdle will be for a majority of state parliaments to pass the GST amendment, which would establish a GST Council to finalise key terms of the new tax.

That could take until November and mean that the legislation to put the GST into force would only come before the national parliament’s winter session.

Hitting the government’s target launch date of next April 1, the start of the fiscal year, looks ambitious. Slippage to July or October 2017 is increasingly likely, say experts.

Source: India’s biggest tax reform GST looms, many companies unprepared | Reuters

03/08/2016

Startups hope to capitalize on the massive IoT market – Times of India

Fresh from the sale of their first venture focused on the heating, ventilation and air conditioning (HVAC) market, Shishir Gupta, Nithin David and Varun Gupta embarked on what they thought was their next breakthrough idea.

In mid-2013, the trio decided to devise solar air conditioners based on their previous experience in the market but, after some pilots, they discovered the idea was commercially unviable.

From the ashes of their second enterprise, they did manage one small gain — a connected controller that reduced energy use by 30% during the night. Using this, they pushed their entrepreneurial energy in a new direction — towards the rapidly emerging opportunity in the internet of things (IoT) , or devices and objects that send and receive data over the internet. Rather than build large systems for this, their new venture Oakter is thinking much smaller. It is building out a series of IoT-based devices to “smarten” homes across India.

In around two years of operation, Oakter’s controllers have smartened some 10,000 gadgets, claims Shishir Gupta, without disclosing the number of homes his controllers have been installed in currently. The startup’s full launch hasn’t even happened, he says, since it is still reaching out informally to consumers. Around Diwali this year, Oakter is expected to make a big-bang offline launch and expects to reach 10,000 homes in a year and revenues of Rs 100 crore by 2018-19.

“Within 10 years, IoT will transform the way we manage our lives,” says Shishir. There are plenty of data points to back his enthusiasm. In 2008 itself, there were more objects connected to the internet than people, and technology researcher Gartner forecasts that by 2020 there will be nearly 21 billion connected devices. If the ATM was perhaps the first popular connected device in the early 1970s, hundreds of companies have since shown an interest in getting wired up.

IoT’s the Thing

In the US, the largest technology market, there has been a mixed response to various kinds of IoT. According to CB Insights, a tracker of this kind of deal data, deal volume is on track to surpass 2015’s total by 30%. Fundingwise, 2016 should be a robust year for IoT in the West, and the second year in a row of $1.2 billion-plus in funding. Several startups in the field raised significant amount of funding, including IoT software and services company Greenwave Systems ($45 million Series C), commercial drone developer Airware ($30 million Series C), and connected HVAC and lighting company Enlighted ($25 million Series D financing).However, deal flow looked less upbeat on a quarterly basis, with both value and volume declining in the second quarter of 2016. After an increase in the first quarter with 54 transactions, deal-making fell 26% quarter-over-quarter. And funding fell from $328 million to $325 million — a 9% quarter-on-quarter decline. At a global level, there is massive potential.

According to a statement from Gartner’s research chief Peter Sondergaard, the incremental revenue generated by IoT suppliers is estimated to reach $309 billion per year by 2020. This growth opens up new business opportunities, as half will be attributed to new startups and 80% will be in services, not products. Manufacturing, healthcare and insurance are expected to lead the IoT race.

Some of this entrepreneurial interest is being generated in India, too. For example, in May this year, Entrepreneurship and Venture Capital (EVC), an early stage investor, launched a $50 million unit to focus on IT.

Qualcomm Ventures, the VC arm of the global chipmaker, recently unveiled its $150 million India fund and made its first investment of $10 million in healthcare IoT venture Attune Technologies. In early July, a centre of excellence for IoT was launched jointly by software industry lobby Nasscom, the department of electronics and information technology and the Education and Research Network. This centre can house up to 40 startups and the model is expected to be replicated nationwide.

Source: Startups hope to capitalize on the massive IoT market – Times of India

02/08/2016

India to impose temporary anti-dumping duty on some steel products | Reuters

An Indian government body has recommended provisional anti-dumping duty on imports of hot-rolled steel products, a government statement said on Tuesday, to reduce overseas purchases of the alloy and shield local mills.

The anti-dumping duty will come into effect after New Delhi formally notifies the tax.

The Directorate General of Anti Dumping recommended the duties on steel products from China, Japan, South Korea, Russia, Brazil and Indonesia, the statement said.Indian steelmakers such as the Steel Authority of India (SAIL.NS) , JSW Steel (JSTL.NS) and Tata Steel (TISC.NS) had lobbied for protectionist measures to prevent cheap overseas purchases that were undercutting local mills and squeezing margins.

Source: India to impose temporary anti-dumping duty on some steel products | Reuters

02/08/2016

Why Experts Say a Donald Trump Presidency Could Benefit India – India Real Time – WSJ

A Donald Trump presidency could help India, according to a panel of India’s top strategic thinkers.

The businessman and television personality, known for his pledge to shake up the global status quo and “make America great again,” could help Indian business by squashing free-trade deals that disadvantage the South Asian nation and while also opening up a larger role for India’s military, speakers at a Brookings India event in Delhi said Monday.

Mr. Trump’s plan to make Asian allies pick up more of the slack for defense spending in the region would “open up a huge amount of space for India” in global affairs, said C. Raja Mohan, director of Carnegie India.

Meanwhile, Mr. Trump’s opposition to the Trans Pacific Partnership would also be a bonus for India, which never signed the deal, said Brookings India’s Harsh V. Singh. Mr. Trump says such deals disadvantage U.S. workers. Many Indian companies “would breathe a sigh of relief” if the trade deal, which favors signatories like Vietnam and Malaysia over India, was squashed, Mr. Singh said.

Mr. Trump has already sent jitters through the Asian security community by saying: “Many countries are not paying their fair share,” for U.S. military protection. By contrast his opponent Hillary Clinton, is seen as someone who would most likely leave relationships unchanged with major allies.

For India, which has no U.S. military bases on its soil, the prospect of life with a diminished American presence in east Asia and the Middle East would mean a sharpening of divisions in the region, but also allow it to expand its influence and invent a new global role for itself, said Mr. Mohan.

The changes could be as large as those that accompanied the withdrawal of the British military from the region post World War II, a shift that saw the birth of modern India in 1947, he said.

Still, if Mr. Trump wins office, he will likely withdraw U.S. support and investment for Indian renewable energy, the Hindustan Times’ Foreign Editor Pramit Pal Chaudhuri said. Protectionist policies could be “a disaster” for the global economy, triggering a spate of trade wars, Mr. Chaudhuri said.

Source: Why Experts Say a Donald Trump Presidency Could Benefit India – India Real Time – WSJ

01/08/2016

Didi, Uber said to merge in China in $35 billion deal | Reuters

Ride-hailing firm Uber is to merge its China operations with bigger rival Didi Chuxing, and hold a one-fifth stake in the new business, in a $35 billion deal to end bruising competition between the two, according to a source familiar with the matter.

A deal between the two – which have been spending heavily to gain market share and battling fiercely for passengers – could be announced as early as Monday, said the source, who declined to be identified because the deal is not yet public.

The new entity combines Didi’s most recent valuation of $28 billion and Uber China’s $7 billion valuation for the $35 billion market capitalization. Uber China investors will have a 20 percent stake in the new company, the source said.Uber did not offer any immediate comment. Didi could not be reached for comment.

“It makes huge sense, Uber faces an uphill task in China especially since Didi is multiple times larger by transaction value and city coverage,” said Hong Kong-based Richard Ji, co-founder of All-Stars Investment Ltd, which manages about $900 million and owns Didi stock.

“This will lead to favorable outcomes for both companies. The biggest benefit is cost savings, they no longer have to give out subsidies to drivers and passengers. It will give pricing power as the new entity will become the dominant player. That means profitability will come sooner than later,” he added.

Source: Didi, Uber said to merge in China in $35 billion deal | Reuters

01/08/2016

How Cheap Oil Is Squeezing South Asia’s Cash Lifeline – India Real Time – WSJ

Chronically low oil prices are disrupting a critical financial lifeline across Asia and depriving economies of much-needed hard currency.

The flow of cash, or remittances, from Asian citizens working in the Gulf soared when the price of oil was high, boosting growth across the board. The billions of dollars in annual inflows paid for necessities such as schooling and health care and helped propel families into the middle class for the first time.

Now that money is disappearing, perhaps permanently, as laborers lose work in oil-driven Mideast countries. That’s adding a new threat to growth in some Asian nations and depriving them of currency inflows they need to balance their national accounts and keep their currencies from depreciating too quickly.

A barrel of Nymex crude is now trading at around $41, up from below $30 earlier this year. But prices are a long way from the peak of the boom and aren’t expected to return to previous highs soon. In February 2014, a barrel of crude cost more than $100.

Demonstrating the pressures of sustained low prices, thousands of Indian workers protested in Saudi Arabia on Saturday at being left without jobs, pay and food after they were laid off. The Indian government stepped in over the weekend to hand out food to hungry workers.

Source: How Cheap Oil Is Squeezing South Asia’s Cash Lifeline – India Real Time – WSJ

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