Issue 276 WEEKLY MEDIA UPDATE 16 January, 2017 Monday (This document comprises news clips from various media in which Balmer Lawrie is mentioned, news related to GOI and PSEs, and news from the verticals that we do business in. This will be uploaded on intranet and website every Monday.) India will remain one of the fastest IIP clocks 13-mth high growth of growing major economies in 2017: ICRA 5.7% in Nov despite note ban Moody's Investors Service and its Indian affiliate Industrial production grew at a 13-month high ICRABSE -1.16 % said India will remain one of the of 5.7 per cent in November notwithstanding fastest growing major economies globally in 2017, the demonetisation that was implemented, although GDP growth will moderate in the first half while retail inflation remained subdued at of the year, as the economy adjusts after multi-year low of 3.41 per cent in December, demonetisation. India is rated Baa3 positive by government data showed today. The industrial Moody's. Moody's also believes that the output during November, when the government will likely achieve its fiscal deficit government announced demonetisation of target of 3.5% of GDP for the current fiscal year high value currency notes of Rs 500 and Rs ending 31 March 2017, the international rating 1000 effective from 9th of the month, showed agency said in a statement on Monday. ICRA overall improvement in manufacturing, mining expects the country's growth of gross value added and electricity sectors, according to the figures at basic prices to remain healthy in 2017, although released by the Central Statistics Office (CSO). such growth will ease somewhat to about 6.6% As regards the retail inflation measured in from around 7.0% in 2016, with a likely pick-up in terms of Consumer Price Index (CPI), it slipped H2 2017, it said. "Even after the currency in to a multi-year low of 3.41 per cent in circulation is replenished, we expect that India's December reflecting cash crunch. This is the economic growth will stabilize with a lag, while lowest level at least since January 2014. CPI- remaining strong," said Aditi Nayar, an ICRA based inflation stood at 3.63 per cent in Principal Economist. "The adjustment and November 2016 as per data released by the recovery period could stretch to as much as 2-3 government. A year ago, in December 2015, quarters for certain sectors," she said. retail inflation was at 5.61 per cent. The Economic Times - 16.01.2017 Deccan Herald - 12.01.2017 http://economictimes.indiatimes.com/news/econ http://www.deccanherald.com/content/59112 omy/indicators/india-will-remain-one-of-the- 8/factory-output-grows-57-pc.html fastest-growing-major-economies-in-2017- icra/articleshow/56585935.cms World Bank cuts India’s GDP growth December export grows 5.7% to 21- forecast to 7% for FY17 month high The World Bank has sharply cut its economic Merchandise export grew in December for a growth forecast for India to 7 per cent in 2016-17 fourth straight month and was at a 21-month after taking into account the impact of high in absolute terms. Led by a spike in oil demonetisation and the fall in private prices and improved competitiveness from a investments. This growth forecast is lower than weaker rupee, amid muted global demand. the 7.6 per cent growth projected in the middle of Import growth moderated to a four-month low, last year. “Growth in India is estimated to reach 7 owing to sharp decline in that of gold. Export per cent in the financial year 2017...reflecting a grew 5.7% in December and import by 0.5%, modest downgrade to India’s expansion,” the compared to the year-ago period, leaving a World Bank said in its Global Economic Prospects trade deficit of $10.3 billion, showed data report, released in Washington on Tuesday. issued by the ministry of commerce and Unexpected demonetisation — the phasing out of industry on Friday. Outbound shipment was large denomination currency notes — weighed on $23.8 billion, the highest in close to two years; growth in the third quarter of 2016-17, it added. it was $20 bn in November. Petroleum, The World Bank report said that weak industrial engineering, gems & jewellery and production and manufacturing and services pharmaceuticals were the top contributors. purchasing managers’ indexes suggest a setback Incidentally, industrial production in to activity in the fourth quarter of 2016-17. The November, showed data issued by the Central Central Statistics Office had last week pegged the Statistics Office on Thursday, grew at a 13- 2016-17 advance real GDP estimate at 7.1 per month high of 5.7%, however, this was cent. The statistics agency had, however, explained more by a low base effect than consciously not factored in the surge in bank actual improvement in manufacturing activity. deposits while calculating growth in the financial Non-oil, non-gold import in December rose by services group. 4.4%. The Hindu Business Line - 12.01.2017 Business Standard - 15.01.2017 http://www.thehindubusinessline.com/economy/ http://www.business- world-bank-drops-indias-growth-rate-to-7-post- standard.com/article/economy- demonetisation/article9473321.ece policy/december-export-grows-5-7-to-21- month-high-117011301352_1.html Centre to rank states on the basis of Jaitley hopes to overcome GST digital transactions hurdles The Centre will soon rank states on a digital Finance minister Arun Jaitley today said all transaction index as part of its big push to make pending issues would be resolved in the next India a less-cash economy. Government think few weeks for the rollout of GST from April 1 tank Niti Aayog has begun the exercise by even as the Centre and states are locked in a reaching out to states to collate data, which will stalemate over the control of taxpayers. The help it compile the first of its kind index. States GST Council, which has been deadlocked in the will be ranked on the basis of this index. An official past few meetings, will meet on January 16 to involved in the exercise told ET that the move will discuss the issue of jurisdiction over assesses give a boost to the government's digital payments as well as taxation of trade in territorial waters. drive and help states improve their ease of doing "Most of the issues have been sorted out. business. The government has been promoting Some critical issues remain and these over the digital transactions since November 8 when it next few weeks we will try and solve out," announced demonetisation of old Rs 500 and Rs Jaitley said at the Vibrant Gujarat Global 1,000 notes. The official, who spoke on the Summit here. The goods and services tax condition of anonymity, said the Prime Minister's (GST), which is to subsume most of the central Office has supported the idea. Prime Minister and state taxes such as excise, service tax and Narendra Modi is the chairperson of Niti Aayog. VAT, needs to be rolled out latest by "The first ranking of states on the basis of digital September 16, 2017, he said. Under the transactions will be out in few months," the official constitutional amendment passed by said. The digital transaction index is likely to be Parliament for the implementation of GST, based on three parameters — total transactions in some of the existing levies will expire after a state, proportion of cash and digital September 16. "There is a provision for the transactions, and the extent of penetration and implementation of GST because the usage of different modes of digital payments. constitutional amendment has been passed. The Economic Times - 12.01.2017 The Telegraph - 12.01.2017 http://economictimes.indiatimes.com/news/econ https://www.telegraphindia.com/1170112/jsp omy/policy/centre-to-rank-states-on-the-basis- /business/story_129791.jsp#.WHyX5PB97IU of-digital-transactions/articleshow/56485673.cms No charges on card payments for India's 2016 fuel sales growth highest customers, pumps: Pradhan in at least 16 years There will be no additional charges on digital India's fuel demand in 2016 grew at its highest transactions made at petrol stations, Petroleum pace in at least 16 years as low oil prices for Minister Dharmendra Pradhan announced on most of the year boosted demand for gasoline Monday even as petroleum dealers threatened to and aviation fuels. Consumption of fuels, a stop accepting credit and debit cards after Friday. proxy for oil demand, surged 10.7 percent to "Neither the customers nor petrol pumps will bear 196.48 million tonnes in 2016, data from the additional charges on digital transactions. The Petroleum Planning and Analysis Cell (PPAC) of issue will be resolved," Pradhan told reporters the Oil Ministry showed. State polls in India in here after meeting Finance Minister Arun Jaitley five states in February and March are likely to over the matter. "Regarding the issue, it is a send thousands of voters criss-crossing vast business module between banks and oil marketing distances, boosting gasoline demand companies which they will resolve. "Government throughout the first quarter of 2017, but will abide by guidelines issued in February 2016 analysts say growth could slow over the year wherein it stated customers won't bear extra as currency woes bite. Huge rallies by parties charges on digital transactions," Pradhan said. The to showcase their political might among voters minister said the discussions between the petrol are a common sight before elections. pump association and banks over card transaction Canvassing involves transportation of charges does not affect consumers, since it thousands of people from neighbouring areas focuses on sharing of the merchant discount rate to the rallies in trucks and buses.