•  Factories Rules Amendments Notificationnews
  •  Apply for Renewal of consent order onlinenews
  •  Factories Act 1948 – Renewal of Factory License for the year 2016news
  •  FKCCI News Tracker 14.10.2015news
  •  FKCCI News Tracker 08.10.2015news
  •  The Small Factories Bill and Actsnews
  •  FKCCI News Tracker 24.07.2014news
  •  FKCCI News Tracker 23.07.2014news
  •  FKCCI News Tracker 22.07.2014news
  •  FKCCI News Tracker 18.07.2014news
  •  FKCCI News Tracker 16.07.2014news
  • "Budget 14-15 : A Mixed Bag "news
  • "Union Budget 2014 - Key Direct and Indirect Tax Proposals "news
  •  FKCCI News Tracker 04.07.2014news
  •  FKCCI News Tracker 03.07.2014news
  •  FKCCI News Tracker 01.07.2014news
  •  "Intresting shifts in Global Business Scene"news
  •  FKCCI News Tracker 17.06.2014news
  •  FKCCI News Tracker 12.06.2014news
  •  FKCCI News Tracker 04.06.2014news
  •  Mr.Modi - First Steps In The Prime Minister's Rolenews
  •  FKCCI News Tracker 31.05.2014news
  •  FKCCI News Tracker 27.05.2014news
  •  "E-waste notification of Government of India"news
  •  FKCCI News Tracker 24.05.2014news
  •  FKCCI News Tracker 20.05.2014news
  •  FKCCI News Tracker 19.05.2014news
  •  FKCCI News Tracker 13.05.2014news
  •  FKCCI News Tracker 30.04.2014news
  •  FKCCI News Tracker 29.04.2014news
  •  FKCCI News Tracker 20.05.2014news
  •  FKCCI News Tracker 19.04.2014news
  •  FKCCI News Tracker 18.04.2014news
  •  FKCCI News Tracker 16.04.2014news
  •  Companies Act,2013news
  •  FKCCI News Tracker 15.04.2014news
  •  "Will the change of Guard usher a Change?"news
  •  "Holiday for the General Election to lok sabha 2014"news
  •  Circular  from EFSInews
  •  FKCCI News Tracker 01.04.2014news
  •  FKCCI News Tracker 27.03.2014news
  •  FKCCI News Tracker 25.03.2014news
  •  FKCCI News Tracker 17.03.2014news
  •  FKCCI News Tracker 12.03.2014news
  •  "Keep your fingers crossed - Interesting times ahead" news
  •  TNERC's Draft Notification No. TNERC/SC -7 news
  •  Factory License Renewal,2014 October 05,2013 news
  •  FKCCI News Tracker September 28,2013 news
  •  FKCCI News Tracker September 09,2013 news
"News Flash"

"Factories Rules Amendments Notification"


The amendment notification on various Factories Rules Amendments.

dwdDownload .pdf file here

"Apply for Renewal of consent order online"


DEE i/c, TNPCB, Hosur informing that industries located in SIPCOT/SIDCO to apply for the consent / Renewal of consent of the Board through online.

All the Industries should make application for the consent to Establish / Consent to Operate / Renewal through online only. The Industries are requested to approach care centre at TNPCB office for any assistance needed.

We request all members to comply the same with immediate effect.

dwdDownload .pdf file here

"Factories Act 1948 – Renewal of Factory License for the year 2016"


Application for renewal of the factory license for the year 2016 is due to be sent on or before 30.10.2015 (31.10.2015 is Saturday) to the Joint Director of Industrial Safety and Health, Hosur. The Blank application in Form No. 2 is enclosed herewith in 4 copies for your ready reference.

Please complete and send the application to the Joint Director of Industrial Safety and Heath, Hosur so as to reach on or before 30.10.2015 as follows:-

1. Form No. 2 (3 Copies)

2. Treasury Challan or D.D. in favour of the Joint Director of Industrial Safety and Health, Hosur for the required license fees

3. Court fee Stamp for Rs. 2

4. Original License

5. List of Directors/ Partners. In 3 copies with the details of their Names, Age, Father’s name and residential address

6. Self-addressed, stamped envelope to get back the renewed license (By Registered Post)

If there is any change in the directors / Partners, enclose the necessary documents – Form 32, Revised partnership deed etc along with an additional amendment fee for Rs 100/-

"FKCCI News Tracker 14.10.2015"


Federation of Karnataka Chambers of Commerce and Industry, Bengaluru

News Tracker 14th October 2015


Greetings from FKCCI
Sensex: 26846.53 ▼ 57.58
Nifty   : 8131.70    ▼   11.90
1US $: 65.19


Business Line

* Govt sets up panel to push innovation projects: The Government has set up the Empowered Committee for innovative collaborations headed by NITI Aayog Vice-Chairman to push innovative collaboration joint ventures involving investment of about Rs 2,000 crore with a view to create jobs, promote exports and increase the potential of revenue to the exchequer. The members would include Economic Affairs Secretary, Industry Secretary, Former Cabinet Secretary K M Chandrasekhar and former Central Vigilance Commissioner P Shankar.

Business Standard

* Industrial growth rose to 6.4 percent in August – a nearly three year high from 4.1 percent in the previous month, on the back of resurgence in all segments –Industry, Mining and Electricity generation, official data released on Monday showed.

Deccan Herald

* India has outpaced Israel to become the third largest start-up ecosystem on the planet with more than 4,200 new-age companies said Nasscom President R Chandrashekhar.

* In a bid to make Kolkata a startup capital of India, West Bengal Finance Minister Dr Amit Mitra on Tuesday called upon Manipal Global Education services Chairman T V Mohandas Pai to draft a startup policy for the West Bengal Government. Mr Pai agreed to provide a draft policy and support start ups promotion in West Bengal.

"FKCCI News Tracker 08.10.2015"


Federation of Karnataka Chambers of Commerce and Industry, Bengaluru

News Tracker 8th October 2015


Greetings from FKCCI
Sensex: 27035.85 ▲ 102.97
Nifty   : 8177.40    ▲   24.50
1US $: 64.96


Business Line

* The Karnataka Cabinet on Wednesday approved the formation of a joint venture company formed by GAIL India and Karnataka State Industrial Infrastructure Development Corporation (KSIIDC) to set up a City Gas Distribution network for Bengaluru households and fuel for CNG run vehicles.

Economic Times

* Amazon India, Flipkart and their rivals could soon face tax complications with Karnataka proposing 1percent levy on payments by buyers to sellers on e-commerce sites.

Business Line

* With rainfall below average across most parts of the country, the impact on the agriculture could pose problems to the banking sector. The total exposure of banks to the sector has shot up to Rs 8,07,800 crore from Rs 7,20,400 crore in August last year.

* The Supreme Court on Wednesday refused to modify its interim order and allow bodies such as the RBI and SEBI and some States to allow voluntary use of Aadhaar cards for welfare schemes other than the public distribution system (PDS) and LPG schemes

* Export organizations from sectors such as apparel, carpet, cashew, chemicals, cotton, leather, electronics, computer software,  handicrafts, gems and jewellery, handloom, Indian Silk, plastics, powerloom, sports, goods, synthetic and rayon textiles, wool and woolen, oilseeds, telecom, pharmaceuticals  have asked the government in New Delhi for higher export incentives, cheaper credit, faster reimbursements of input taxes and lower transaction costs to help deal with the crisis of continuously falling exports.

* The government will soon come out with a framework to make inter State transmission of renewable energy free of cost said Piyush Goyal, Power, Coal and New and Renewable Energy Minister.

Deccan Herald

* Mauritius is in talks with India to review a tax treaty that has made this island nation of just 1.3 million people the biggest single source of foreign direct investment (FDI) in India, Finance Minister of Mauritius stated on Wednesday 7th Oct 2015.



HIA has brought out 4 editions of Industrial Directory since 2013, covering only Industries in Hosur. Now, HIA is bringing out HOSUR BUSINESS DIRECTORY 2014-2015, covering data base of all Industries, Trade, Commerce, Services, Educational Institutions, Entertainment and hospitality Industry in & around Hosur and neighbouring districts in Tamil Nadu and Karnataka.  These being a well targeted discerning audience, it will be an effective sourcing tool for the development of your special area of interest through the media of Print & & digital media

I take this opportunity to appeal to you to kindly advertise in this important publication which would boost your brand equity and support the Association in its endeavor to enhance our members image and increase the Association revenue.  I am sure you will take advantage of this offer and advertise in our Directory.

For further clarification contact:
Mr. Ramesh. M – 0900046446, Tel.: 080 – 65599001, 2, 3, 4 & 5


Black & White     
                                                                             H x B

SL. no.





1 Unit Dimension

5.7  x  12.2 cm



2 Unit Dimension

11.7  x  12.2 cm



Half Page Black & White

11.7  x  18.5 cm



2 Col

24  x  12.2 cm



Full Page Black & White

24  x  18.5 cm



SL. no.





Quarter Page Colour

  11.7  x  9 cm



Half Page Colour

11.7  x  18.5 cm



Full Page Colour

24  x  18.5 cm


Premium Page

SL. no.





Back Cover Page

24  x  18.5 cm



Back Inner Cover Page

24  x  18.5 cm



Front Inner Cover Page

24  x  18.5 cm



First Colour Premium Page

24  x  18.5 cm



Second Colour Premium Page

24  x  18.5 cm



Third Colour Premium Page

24  x  18.5 cm



Fourth Colour Premium Page

24  x  18.5 cm



(Special Write Up Section
       Advertisement (10nos)

4.2  x  24.5 cm



SL. no.





One Full Page

24  x  18.5 cm



Two Full Page

48  x  37 cm



  • 100% on Booking.
  • All cheques should be in favour of HOSUR INDUSTRIES ASSOCIATION
  • Above Rates are for only one issue.

"The Small Factories Bill and Acts"



The Small Factories ( Regulation of Employment and
Conditions of Services) Bill, 2014

Download herebill and act

"The Small Factories (Regulation of Employment and Conditions of Services) Bill, 2014" has been finalized after extensive discussions by the Working Group constituted by Labour Ministry,  for your information. A copy of the draft bill is enclosed for your information.

Kindly send your Views/Comments on before
05th November 2014.

Yours Faithfully


T M Jawaharlal, Secretary

33, Hindi Prachar Sabha Street, T. Nagar, Chennai 600 017
Phone : 2432 0801  Fax: 24322750  E-mail: efsi@vsnl.net Web: www.efsi.org.in

"FKCCI News Tracker 24.07.2014"


      RBI working on an exit route for businesses facing bankruptcy. New structure will allow people to voluntarily withdraw from unattractive busineses. The Reserve Bank of India is working on norms to enable entrepreneurs exit insolvent businesses. India does not have a good bankruptcy code like chapter 11in the US.

      Rs 1.80 lakh crore stuck in road projects. A whooping Rs 1,80,000 crore is stuck in 189 road projects

      Amendments to EPF Act coming. The Government is considering a proposal to reduce the threshold limit for coverage of firms under the Employees Provident Fund Act to 10 persons.

      Plan for 100 smart cities. The Government plans to set up 100 smart cities across the country that will provide all modern amenities, education and employment. The cities are yet to be identified

      UK to push for easing retail FDI norms.

      Govt sets the ball rolling for changes in labour laws. 30 percent quota mooted for women  in ITIs. The Government is actively considering amendments to various labour laws for which  tripartite consultations are in progress. The Government is actively considering amendments in Child Labour ( Regulation and abolition) Act 1986, Factories Act 1948, Minimum Wages Act 1948, Apprenticeship Act 1961 and Labour Laws( exemption from furnishing returns and maintaining returns by certain establishments) Act 1988.

      Govt for enhanced PPP model to boost infrastructure. The government is working on a sophisticated and flexible framework for the Public Private partnership (PPP) model to boost infrastructure development, Finance Secretary said on Wednesday.

      World Bank raises credit line to India, lauds Gujarat model. The World Bank Group on Wednesday endorsed India’s commitment to return to a high rate of economic growth by enhancing its loan amount to the country nearly two-fold in the next three years.
      FII investment sub-limit in G-Secs raised by $ 5b. The Reserve bank on Wednesday said the FII limit for investment in government securities has been increased by $ 5 billion within the total cap of $ 30 billion.

      Karnataka eases industrial land allotment rules. Offers 99 year lease instead of the existing 30 year lease cum sale. Karnataka has decided to offer land to industries on 99 year lease instead of the existing 30 year lease cum sale through Karnataka Industiral Areas Development Board (KIADB). The State Cabinet has cleared an amendment to KIADB rules on land allotment. Welcoming the Government’s decision, S Sampathraman, President FKCCI said “FKCCI has been demanding for many years. We welcome it.” ( Business Line July 24, 2014)

      Karnataka traders, farmers oppose APMC Act. Representatives of farmers, traders and chambers of commerce have urged the Karnataka Chief Minister to put on hold the APMC Act 2014. FKCCI President led a delegation that met Chief Minister Siddaramaiah to express their opposition to the Act. (Business Line July 24, 2014).

      Industries to get land on 99 year lease. The Federation of Karnataka Chamber of Commerce and Industry (FKCCI) has welcomed the new model, saying it would benefit several industries.  “Earier due to the 30 year lease period, getting a bank loan was a lot more difficult. But given the near ownership with the 99 year lease, industries will be able to easily secure loans from banks,” said FKCCI President S Sampathraman. ( Deccan Herald July 24, 2014)

      Pepper to rise on tight supply
      Turmeric falls on quality issues

Market Trends
Sensex   26,147.33 ▲ (Up)  ▐ ▐  121.53
Nifty         7795.75  ▲(UP)   ▐     27.90
Forex Rate – Dollar Rupee Exchange Rate

Open      60.11
Closing   60.25
Gold (10g) 28,300.00


India’s stand on WTO trade pact

India has been warning developed countries that it would not give its consent to the agreement, a decision that was taken at a meeting of the WTO trade ministers in Bali last December, unless its concerns on food security are addressed.

“The Prime Minister will take a final call on whether India should insist on a single undertaking at the WTO that would also take care of its food security concerns instead of just agreeing to a trade facilitation pact.”   Trade facilitation is an agreement pushed by a number of developed members, including the US, the EU and Australia, that would put binding commitments on all countries to upgrade their border infrastructure and procedures to make movement of goods smooth. New Delhi is concerned that once developed countries have such an agreement in place, they may not be interested in sorting out its concerns on food security. India and a number of   other developing countries want the WTO to consider subsidies given food procurement from poor farmers (used for food aid programmes) as permissible subsidies not subjected to a cap.

In Bali, WTO members agreed to a ‘temporary solution’  to the problem by promising that no action would be taken against developing countries for breaching their farm subsidy levels ( fixed at 10 percent of total produce) till a ‘permanent solution ‘ was found by 2017.

However, the interim relief is ridden with a number of conditions including submission of production, pricing and other statistics that could make it difficult for developing countries to take advantage of it.  Moreover, if developed countries feel that the subsidies were distorting trade, they would still take action against developing countries.

"FKCCI News Tracker 23.07.2014"


      RBI unveils tighter regulatory norms for ‘too-big-to-fail’ banks. The RBI set out a framework for identifying and dealing with large banks, termed domestic systemically important banks or D-SIBs. A size beyond 2 per cent of GDP will be one of the criteria for designating a bank as a D-SIB and it will be subject to higher capital requirements, according to the Reserve Bank of India.

      RBI eases norms for loans against gold. The Reserve Bank of India has done away with 1 lakh limit on the amount of non –agriculture loan sanctioned by banks at any point of time against the pledge of gold ornaments and jewellery.

      Plan soon to revive small units. The MSME Ministry is expected to ready an in-depth plan to revitalize the country’s micro, small and medium enterprises within six months time, a sector that contributes almost 38 percent to the country’s GDP and over 42 percent to its overall exports. The Ministry is in the process of preparing a comprehensive development strategy for the sector in consultation with all stakeholders. This is expected to be ready within a period of 6 months.

      Fraud reporting norms soon. The Corporate Affairs Ministry is looking at the possibility of having thresholds of the quantum of frauds at companies that need to be mandatorily reported by concerned auditors to the Government. In this regard, the Government has sought suggestions from ICAI, the apex body for chartered accountants.

      Work begins on Insurance FDI Cap Hike. India is all set to raise the foreign direct investment limit in the insurance sector to 49 percent with prior government approval while it will still be automatic for anything up to 26 percent as the government seeks to put in place the much debated reform aimed at easing the capital crunch faced by the industry.

      Fin Min wants banks to be exempt from CSR spend. Indian banks, particularly those owned by the government and facing an urgent need to raise capital, could get some relief. The Fnance Ministry has written to the corporate affairs ministry, asking the latter to exempt banks from the corporate-social responsibility ( CSR) spending mandated by the Companies Act.

      State government prepares ground for GIM. The Karnataka Government has set the tone for Global Investors Meet (GIM) by bringing in amendments to the Karnataka Land Reforms Act 1961 to create land bank in the State. Commenting on the Bill, S Sampathraman, President FKCCI, said “Industry accepts the responsibility of using the land for the intended purpose within a reasonable time, failing which the industry will accept the clause that the land will be forfeited to the government, but with compensation. If the industry has submitted an application with a clear plan of land utilization in stages at different periods of time, it should be honoured by the government.” (Business Line July 23, 2014)

      Coconut oil up on corporate buying
      Slack demand grinds turmeric
      Range bound trading in sugar
      Stockists keep off edible oils market
      Sugar output to touch 25 million tones next season

Market Trends
Sensex   26,025.80 ▲ (Up)  ▐ ▐  310.63
Nifty         7767.85  ▲(UP)   ▐     83.65

Forex Rate – Dollar Rupee Exchange Rate
Open      60.25
Closing   60.31
Gold (10g) 28,150.00



The Union Budget’s promise of turning Tumkur into an “Industrial smart city” is welcome. The key was providing adequate infrastructure for industries to prosper.  Subsidies are not needed if land, power, water, road, rail and air connectivity and other infrastructure is provided by the government to set up industries.  It was the lack of political will that had led to the government failing to attract industries to tier- II cities.

The move would help people, who were suffering because of drought for the past several years, get employment. It would also check the migration of agricultural labourers to cities such as Bangalore and Mysore in search of jobs due to failure of rain, and help bring down the pressure on the State’s capital’s resources. The project would benefit the city and the district. It would give a spurt to business and economic life of the people would improve.

"FKCCI News Tracker 22.07.2014"



      No need to ban onion exports, say Agriculture, Commerce Ministries. The Agriculture and Commerce Ministries do not want onion exports to be banned as there has been a fall in outbound shipments following the imposition of minimum export price ( MEP) last month.
      Modern retail may hold the 
       key to controlling food inflation. Modern trade retailers are set to come to the rescue of spiraling food inflation, The Consumer Affairs Ministry recently called for suggestions from top retailers to contain the contain the surge in retail prices. Given their advantageous sourcing capabilities, fruit and vegetable retailers are expected to help provide customers with more competitive prices.
      Revenue collection expected to exceed target this fiscal: FM
      FIIs submit Rs 4,857 crore bid for govt bonds. Showing robust interest among foreign investors, an auction of government bonds on Monday attracted bids worth Rs 4,857 crore almost double the amount of such securities on offer at Rs 2,521 crore.

      Turmeric pales on poor demand
      Bullish cues heat up edible oils
      Sugar rules steady in listless trade
      Cardamom gains flavor on thin arrivals
      The National Egg Coordination Committee (NECC) has appealed to the Government to grant a one-year moratorium on payment of interest and loans availed by poultry farmers.
Market Trends
Sensex   25,715.17 ▲ (Up)  ▐ ▐  73.61
Nifty         7684.20  ▲(UP)   ▐     20.30

Forex Rate – Dollar Rupee Exchange Rate
Open      60.31
Closing   60.29
Gold ( 10g) 28,250.00



Undue optimism

The finance minister repeated his happy assertion on tax revenue once again when he claimed that the figure for 2014-15 will exceed the targets set in the budget earlier this month.

To begin with, there was a question mark on the feasibility of his math, which projected 19 percent growth in total tax revenues in 2014-15.  There was plenty to doubt. One, tax revenues had grown by just 11 percent in 2013-14 and, in fact fell short   of the targeted amount by Rs 77,000 crore.  Two, the higher revenues are being expected from a reduced tax base thanks to higher income tax exemptions.

So what has changed in less than a fortnight to inspire such confidence? Not much. It is true that the rainfall deficit has diminished but tax revenue collection needs more than that to fulfil the minister’s prophecy.

"FKCCI News Tracker 18.07.2014"



      RBI sets stiff terms for niche bank licences. The Reserve Bank of India ( RBI) paved the way for niche banking by issuing draft guidelines for setting up payment banks and small banks. While payment banks will offer remittance services, small banks will offer low-ticket loans and basic banking services within a limited area of operation.

      Centre may ban onion exports to curb price rise
      Sugar rules steady on routine demand
      Higher inventory may hit sugar companies hard

Market Trends
Sensex   25,561.16 ▲ (Up)  ▐ ▐  11.44
Nifty         7640.45  ▲ (Up)  ▐     16.05

Forex Rate – Dollar Rupee Exchange Rate
Open      60.18
Closing   60.14
Gold (10g) 28,180.00


Industrial production surges to 19 month high in May

India Inc has opined that the sharp rise in industrial output in May is a sign that the economy is on the road to recovery and expects the rebound to sustain on the back of policy measures unveiled in the maiden budget of the Narendra Modi-led government.

Rise in industrial production for the second month in a row provides a glimmer of hope that the economy could be bottoming out and recovery could be on the anvil. Going forward, the Industry anticipated a rebound in industrial production as the reform-oriented and forward looking Budget would boost business confidence leading to turnaround of the investment cycle.

As growth is subdued in intermediate sector and capital goods growth also comes on a negative base, the manufacturing sector may take some more time to recover. The Industry is hopeful that the measures announced in the budget would help the sector to revive fast. Terming the rise in industrial output as a “good sign”   the Industry hoped that the trend would continue as it would help GDP grow above 5.5 per cent in the current fiscal. However monsoon could be a dampener.  Overall, 16 of the 22 industry groups in manufacturing showed positive growth in May.

"FKCCI News Tracker 16.07.2014"



      More tax treaties on cards. Negotiations are on for new Double Taxation Avoidance Agreements with Hongkong, Iran, Nigeria, Azerbaijan, Chile and Venezuela.

      Prices of bulk diesel cut. Oil marketing companies have cut the prices of bulk diesel sold to industrial consumers such as the Railways. There has been no change made in the retail price of the fuel.  The price cut has been announced by oil marketing companies in line with global crude oil price trends.

      BRICS nations will not resort to protectionist measures. Trade ministers express concern over slow pace of global economic recovery.

      WTO rules against US duties on Indian steel products

      Empowering SEBI: Cabinet to consider Bill next week

      E-governance, energy conservation to be parameters for smart cities.

      RBI signals cheaper housing, infra loans

      Composite foreign investment cap proposed for most sectors. FDI likely in high-speed rail, freight corridors, some PPP projects.

      SBI reduces bulk FD rates by 25 bps. State Bank of India, the country’s largest lender cut the interest rate on its fixed deposits ( FD) up to 179 days by 50 basis points on Tuesday.

      Package planned to revive SEZs. The Commerce Ministry on Tuesday indicated that a “package” including roll back of minimum alternate tax, could be announced to revive special economic zones.

      Difficult to meet indirect tax target. The government acknowledged that achieving the budgetary target for indirect taxes would be challenging this year but hoped a number of measures announced to perk up manufacturing and infrastructure sectors would help economic growth and tax buoyancy.
      Industrialists seek better rail connectivity. Industry organizations in Mysore have urged for better rail connectivity to improve trade and develop the region and the state, in a memorandum to Railway Minister  Sri  D V Sadananda Gowda.

      Mini thermal plants to meet Bangalore’s  energy needs: Energy Minister GOK


      Outlook turns bullish for chana
      Ample supplies keep sugar steady
      Bulk buyers stay away from edible oils
      Cotton output seen at 395 lakh bales.
      Arabica coffee hits 5 month low
      Turmeric gains colour on quality arrivals

Market Trends
Sensex   25,228.65 ▲ (Up)  ▐ ▐  221.67
Nifty         7526.65  ▲ (Up)  ▐     72.50

Forex Rate – Dollar Rupee Exchange Rate
Open      60.14
Closing   60.08
Gold (10g) 28,150.00


Proposals on outer harbor projects can boost growth

The budget proposal to earmark funds for outer harbor projects, if implemented in letter and spirit, can propel growth in exports from the current financial year itself. One of the most crucial impediments faced by Indian exporters has been the high transaction costs as compared to their peers abroad, which has been mainly due to poor infrastructure.  If not world-class, at least reasonably good infrastructure without many bottlenecks for seamless surface and sea transportation is vital for the growth of the country’s foreign trade. The budget has made an effort to address these issues to a certain extent. The rate of success will depend on the urgency and pace at which implementation will be carried out. It has become imperative for emerging economies to adopt measures to change fundamentals, facilitate external adjustments, and streamline monetary policy by having in place result oriented structural reforms. The budget has made earnest efforts in this direction.

However it is disheartening to note that the industry plea for exemption of service tax on all export-related transactions has not been heeded. It can have a negative impact on export.

"Budget 14-15 : A Mixed Bag"


We attach herewith the ENGLISH VERSION of the article written by Mr. D. Muralidhar, President, HIA on "Budget 14-15 : A Mixed Bag" published on 16.07.2014  in the Bangalore regional newspaper ‘PRAJAVANI’. 

attach Download Attachment

"Union Budget 2014 - Key Direct and Indirect Tax Proposals"


attach Download Attachment

Direct Tax

Tax Rates

  • There is no change in current tax rates (including AMT, MAT)
  • No change in surcharge and education cess
Corporate Tax Proposals
  • GAAR applicable from April 1, 2015
  • 15% additional investment allowance to manufacturing undertakings investing more than INR 250 million per year in Plant and Machinery upto 31 March, 2017. Existing benefit of investment allowance to continue
  • Deduction for payments made to non-residents allowed as deduction, if tax is deposited on or before the due date of filing return
  • Disallowance on account of non-deduction or non-payment of tax deducted at source on payments made to residents shall be restricted to 30% of the amount of expenditure claimed
  • Expenditure on the corporate social responsibility (CSR) not treated as tax deductible
Transfer Pricing Proposals
  • Transactions with a domestic unrelated party clarified to be covered as an international transactions, on satisfaction of prescribed conditions
  • APA rollback mechanism introduced
Dividend Distribution Tax ('DDT') Proposals
  • Grossing up provisions introduced for computing DDT on dividend to be paid by companies
  • Concessional tax rate of 15% on dividends received by domestic company from its overseas subsidiary extended indefinitely
Capital Gains Proposals
  • Unlisted securities and units of mutual fund (other than equity-oriented mutual funds)  held for less than thirty-six months, shall be considered as short-term capital asset
Other Proposals
  • Concessional tax rate of 5% available for interest on all long-term bonds (earlier only infrastructure bonds) if bonds issued in foreign currency upto 1 July, 2017
Dispute Resolution  Proposals
  • Scheme of Advance Rulings proposed to be made extended to resident taxpayers also
Indirect Tax 

Service Tax 
  • Value of service portion in works contract relating to movable and immovable property aligned to 70% (effective from 1 October 2014)
  • With effect from 1 October 2014, variable interest rates (18% to 30%) to be applicable for delay in payment of taxes
  • E-payment of service tax mandatory from 1 October 2014
  • Abatement rate to be revised to 60% in case of transport of goods by vessel (effective from 1 October 2014)
Cenvat Credit
  • Cenvat credit on inputs and input services to be availed within a period of six months from the date of issue of invoice (effective from 1 September 2014)
  • Condition of payment of service tax under full reverse charge for availing cenvat credit withdrawn
Excise Duty
  • If goods are sold at a price less than the manufacturing cost including profit, and if no additional consideration is flowing from the buyer, then transaction value will be adopted
Customs Duty
  • Advance ruling facility extended to private limited companies

"FKCCI News Tracker 04.07.2014"


      ‘Modi factor’ Purchasing Managers’ Index (PMI) to 17- month high in June. New order flows, stronger sentiment due to release of pent-up demand. The upbeat mood caused by the Narendra Modi government lifted services, the biggest part of India’s economy to a 17 month high in June according to the HSBC Purchasing Managers’ Index.

      GST rollout: Centre will sort out compensation issue first. Compensation issues and differences over the treatment of petroleum products remain the main hurdles before early implementation of the Goods and Services Tax ( GST) even as the Centre and States appeared optimistic in overcoming these challenges.

      No trade facilitation pact without resolving food security issue: Govt . Hardening its stance in the ongoing talks at the World Trade Organisation, the Govt has said it will not support the Trade facilitation agreement ( TFA) being pushed by the developed nation members, including the US, and the EU and Australia, till its concerns on food security are addressed.

      NHAI  may face more disputes due to lack of clarity in contract document: white paper. Ambiguity in the model concession agreement, which is the contract document between developers and the highways authority, may raise the number of disputes and claims against the National Highways Authority of India ( NHAI)  a white paper by the Road Transport and Highways Ministry has indicated.

      India Inc’s foreign investment limit eased. India Inc could now find it easier to buy foreign assets, with the Reserve Bank of India restoring the limit on overseas direct investment (ODIs) under the automatic route to 400 percent of net worth. The limit was cut by  three- fourths to 100 percent in August last year after the rupee touched an all time low of 68.80 a dollar.

      India should avoid fiscal slippage: WB. Inflation is still uncomfortably high in India and the new government should avoid fiscal slippage as it seeks to revive the economy, the World Bank’s India director said.
      Textile Ministry to ready draft of new policy in 15-20 days. The Textiles Ministry will firm up the draft of the National Textiles policy within the next 15 to 20 days.

      Slack bulk buying dissolves sugar
      Quality turmeric commands premium
      Mustard gains on lower arrivals
      Global food prices fell 1.8 percent in June
      Onion may bring more tears ahead. Only two months’ stock left, new crop to arrive in October.

      Centre to discuss food inflation with State ministers today. Manipulation by vested interests to create an artificial shortage of food items is expected to figure prominently in the daylong meeting of state food ministers called by the Centre on Friday.

      State seeks Rs 3,889 cr to make up for CST revenue loss.

      State may let panchayats levy service tax. The Karnataka government is planning to introduce a bill which will give powers to gram panchayats to levy taxes on services provided by commercial establishments, including airports falling under their jurisdiction to rev up revenue collection.
Market Trends

Sensex   25,823.75▼ (down) ▐ ▐ 17.46
Nifty         7725.15 ▼ (down) ▐     10.35

Forex Rate – Dollar Rupee Exchange Rate
Open      59.74
Closing   59.69
Gold (10g) 28,050.00


Reform PSU holding before disinvestment

The government reportedly plans to raise huge amounts money via disinvestment. Selling chunks of shares in state owned enterprises is good for the companies, besides fetching useful monies for the government- there would be additional voices calling for better management of the company. Outright privatization would be appropriate for some companies, of course. But it would be a pity if the government were to sell off shares in public enterprises on an as-is-where-is basis. That would forgo a terrific opportunity to realize far superior value. The thing to do is to reform the control structure of public enterprises before selling their shares.

A chief constraint on corporate governance at public enterprises is the control exercised by some administrative ministry or the other over every one of them. Bureaucrats of the ministry concerned exercise an unwholesome power over the working of these companies. They decide not just corporate strategy and the public goal the enterprise in question should follow, but also whether, how and why company officials should travel, interfere in their appointment and so on. All this must stop, for public enterprises to realize their potential and value.

Imagine a situation in which the government appoints only the members of holding company individuals with impeccable credentials whose job is to appoint good people to the boards of the enterprises owned by the holding company create incentive structures for sustained sound performance and monitor their working. The chiefs of the enterprises can still be called to testify before a committee of Parliament, to ensure they stick to the objectives for which these companies were set up. If disinvestment takes place after such reform, the government would realize superior value.

"FKCCI News Tracker 03.07.2014"


      Centre brings onion, potato under Essential Commodities Act. To curb inflation, wants State Govts to crack down on hoarders; imposes stock limits
      Market peaks on expectations on pro-reform Budget. Sensex hits all time high of 25,842; Nifty surges to 7,725
      Minimum export price of onions hiked again. The Government has increased the Minimum Export Price ( MEP) of onions to 4 500 a tonne to check rising domestic prices.
      Foreign Trade Policy to offer more incentives. Commerce Ministry wants sop for labour intensive exports extended.
      Govt defers hiking State-specific costs of LPG, Kerosene.
      More favourable sourcing policy for MSMEs soon. Small firms may look forward to better demand in the coming months with the Public Procurement Policy for Micro and Small Enterprises gaining traction.
      Diesel price may be deregulated over next year: Moody’s.
      Defence FDI boundary to be pushed back step at a time.
      IT exemption limit may not be raised significantly in budget.
      Industrial licence validity extended to 3 years. Seeking to improve ease of doing business in India, the government today decided to extend the validity period of industrial licence to three years with a provision for further extension of two years.
      Fearing raids, stockists release pulses
      Slack buying drags sugar
      Mixed trend in edible oils
      Turmeric pales on slack offtake

      State sets up agri price panel. The Karnataka government today announced the constitution of the much awaited Agriculture Price Commission ( APC) which will fix a fair price for agriculture produce in the State.
      K’taka Assembly passes Sakala services bill
      LPG price hike on hold in K’taka

Market Trends
Sensex   25,841.21▲ (Up)  ▐ ▐  324.81
Nifty         7725.15 ▲ (Up )  ▐     90.45

Forex Rate – Dollar Rupee Exchange Rate
Open      59.69
Closing   60.08
Gold ( 10g) 28,170.00



Does the government have room to raise taxes in budget?

Earlier this week finance Minister hinted that the government will discard populist policies and move to a reasonable tax regime to keep the fiscal deficit under check. Slowing economic growth has taken a toll on tax receipts  in the past few years as corporate earnings slowed, but does the government have room to raise taxes?

India’s corporate tax at 34 percent is the highest globally after Japan and the US. Moreover, even the high end of the individual income-tax rate is higher than peers such as Pakistan, Bangladesh and emerging market countries like Indonesia, Mexico and the Philippines.  Barclays Research Confirms that while corporate and personal income-tax rates are high in India, the breadth of its tax net is relatively narrow.

Nevertheless while the corporate tax rate maybe high, the effective tax rate for companies after taking into account the various exemptions is much lower.  According to the statement of the Revenue Foregone in the Union budget, the effective tax rate  on the corporate sector  in 2011-12 was 22.85 percent.

Over the longer term there might be a preference on the part of the government to reduce marginal tax rates,   along with widening the tax net. However, we think changes in the area of taxation are likely to be long term objectives and we do not expect a major overhaul in the upcoming budget.

"FKCCI News Tracker 01.07.2014"


      Sensex gains 341 pts on 2 week high amid pre-budget rally.  Key bench mark indices edged higher on the last trading session of the month and the quarter as a decline in crude oil prices boosted market sentiment. They rose more than a percent supported by banks, infrastructure and PSU oil & gas stocks.
      Petrol and diesel prices hiked by Rs 1.69 per litre and diesel by 50 paise per litre as the crisis in Iraq spooked international oil and currency markets.
      Fiscal deficit hits 45 percent of full-year target in 2months
      Import tariff on gold silver hiked.
      Inflation for industrial workers at 7 percent
      April- May fiscal deficit exceeds 45 percent of FY 15 estimate
      Core sector growth slows to 2.3 per cent in May. Growth in India’s eight key infrastructure sectors fell to 2.3 percent in May from 4.2 percent in the previous month, mainly due to a contraction in outputs from the refinery and steel and natural gas the Commerce Ministry said on Monday.
      India, China sign pact to set up industrial parks.
      Turmeric loses colour with quality
      Edible oils gain on slow planting
      Sugar rises on retail buying
      Cardamom auctions suspended for a week
      Tobacco farmers fume over plan to tax cigarette more

FKCCI office-bearers.  Business Line July 1 2014, Hindu July 1 2014
The federation is happy to announce the election of new office bearers for the year 2014-2015.
Mr Sampathraman S   President
Mr Tallam R Dwarakanath –Sr Vice President
Mr M C Dinesh –Vice President

State News:
      Bangalore IT investment region will create 4 million jobs: Patil
      Petrol to cost Rs 80.68 per litre in City.  As the hikes exclude taxes, the final prices will vary according to different state levies.
      Shiradi Ghat road work to begin soon

Market Trends
Sensex   25,413.78▲ (Up) ▐ ▐  313.86
Nifty         7611.35 ▲ (Up )  ▐     102.55

Forex Rate – Dollar Rupee Exchange Rate
Open      60.19
Closing   60.09

Gold (10g) 28,200.00



The Finance Ministry is seriously considering a proposal for allowing tax rebates to corporates on the mandatory expenditure they have to make on social welfare schemes as part of their corporate social responsibility (CSR).

According to sources, while earlier the ministry opposed the idea, there appears to be some rethink on the subject and the tax concession may form part of the proposals to be announced in the Budget.

The corporate affairs ministry is in favour of tax benefits for social welfare spending. The new Companies Act requires entities with sizeable business to shell out, at least, two per cent of their three- year average annual net profit towards CSR. Industry has also been seeking tax benefits on spending towards CSR which would also serve as incentive to carry out such work. However, the finance ministry was not in favour of giving tax benefits to businesses.

In the new revised draft of Direct Taxes Code (DTC) Bill, the finance ministry, then headed by P. Chidambaram, had observed that allowing deduction for CSR expenditure would imply the government would be contributing one- third of this expenditure as revenue foregone.

The Parliamentary Standing Committee on Finance, headed by Bharatiya Janata Party leader Yashwant Sinha in the previous Lok Sabha, had in its report on the DTC Bill recommended tax benefit for CSR expenditure in backward regions and districts, but the finance ministry was not bound by its recommendations.

Under the new Companies Act, all firms having a net worth of, at least, Rs  500 crore or a minimum turnover of Rs  1,000 crore or a net profit of Rs  5 crore are required to allocate funds for CSR. Going by the rules, notified by the corporate affairs ministry, there is a wide range of activities that come under the CSR ambit. These include livelihood enhancement and rural development projects, working towards protection of national heritage, art and culture, setting up public libraries, promotion and development of traditional arts and handicrafts. Various activities aimed at reducing inequalities faced by socially and economically backward groups have been included in CSR activities.

Going by estimates, the total spending on such activities could turn out to be around Rs 15,000- Rs 20,000 crore annually. Eligible com
panies have to set up a CSR committee comprising, at least, three directors, including an independent director, as members.

Companies which fail to spend the requisite money have to disclose the reasons for not doing so.

"Intresting shifts in Global Business Scene"


The Article written by Mr. D. Muralidhar, President, HIA on the topic "Intresting shifts in Global Business Scene" was published in the Bangalore regional newspaper ‘PRAJAVANI’ on 02.07.2014.

Download Attatchments Download


"FKCCI News Tracker 17.06.2014"


      Avoid retro tax law as principle: Shome panel. Retrospective amendment to tax laws should be avoided as a principle the Parthasarthi Shome commission on tax reforms has suggested. The Commision’s view on retrospective tax amendment comes at a time when efforts are on to restart conciliation between the Government and Vodafone over the Rs 20,000 crore tax dispute.

      Inflation at 5 month high on rising food prices.

      To execute projects, Highway Ministry seeks Rs 35,000 cr budgetary support. Wants assurance from Finance Ministry for higher funding in the next 2 years.

      Rupee breaches 60, gold rises as violence intensifies in Iraq.

      Import tariff on gold, silver hiked. The Government hiked import tariff value on gold and silver to $411 per 10 grams and $ 632 per kg as global prices have increased in the wake of escalating violence in Iraq.

      India posts largest dip in gas production, consumption. India, the fourth largest energy consumer globally, recorded the largest volumetric decline in natural gas production and consumption last year, said the BP Statistical Review of World Energy 2014 today.

      RBI guidelines on liquidity standards credit positive for banks: Moody’s

      RBI putting in place better regulations for NBFC’s

      Hoarding also responsible for rising inflation: FM

      Losses from sale of diesel slide, hopes high on fuel deregulation. The gap between administered price and market rate of diesel has narrowed to Rs 1.62 per litre, raising hopes of deregulation of the fuel and leaving the government with the burden of having to pay subsidies on only LPG cylinders and kerosene.
      Cardamom gains flavor on supply squeeze
      Weak rupee heats up edible oils
      Rice gathers steam on bulk buying
      Spot turmeric gains with futures
      Slack demand holds sugar steady
      Govt mulls reimposing$300/tonne export floor price on onions

      Tobacco board relaxes licensing norms for Karnataka growers.
      Bangalore-Mysore Rod upgrades work to begin next year.
      Second road to KIA soon. The government is making all efforts to open the second road to Kempegowda International Airport from the KR Puram side.

Market Trends
Sensex   25,190.48▼ (down) ▐ ▐  37.69
Nifty         7,533.55 ▼(down)  ▐      8.55

Forex Rate – Dollar Rupee Exchange Rate
Open      60.17
Closing   59.77Gold (10g) 27,930.00


Slipping on oil

The growing risk that Iraq may descend into civil war has boiled the global oil markets. Rising energy prices combined with the possibility of a bad harvest in case of a poor monsoon complicate matters for the new Indian government. Such a combination has usually spelt bad news for inflation, budgetary balances and the current account deficit.

However, there is no need to panic right now. The price of a barrel of the benchmark crude is still within the range it has traded at since April 2011. It is also below the level it hit during the most turbulent months of the Arab Spring. Brent crude had hit a record $143 a barrel on 11 July 2008. Iraq sits on the fifth largest oil reserves in the world but its output has only recently recovered after the steep drop following the US-led invasion.

The recent events in Iraq are a reminder of how Indian economic stability is often at risk because of the volatility in global oil prices. Energy security remains a distant dream.

"FKCCI News Tracker 12.06.2014"


      World Bank sees 5.5 percent India growth. With the new government showing signs of pushing economic reforms and bringing in transparency in governance, the World Bank feels India, the world’s third larges economy could achieve a growth rate of 5.5 percent this year as compared to 4.7 percent last year.

      IMF bullish on India. The IMF sees the Indian economy recovering in a potential growth of 6.75 percent to 7 percent.

      Exports post double-digit growth in May. Exports posted double digit growth in May, the highest in six months as shipments of key commodities, such as engineering goods, petroleum products, ready made garments and pharmaceuticals registered strong increases.

      Commerce Ministry wants tax sops for SEZs, removal of import curbs on gold.

      MFIs must be allowed to collect small deposits. Micro finance institutions ( MFIs) should be given special banking licences to accept small deposits according to Nobel Laureate Muhammad Yunus.

      Subsidy reforms on cards. Govt mulls gradual increase in prices of domestic cooking gas, urea. The government is considering major subsidy reforms to lower wasteful expenditure and release such funds for creation of capital assets.

      Engineering, refinery products push exports 12 percent.

      Outlook turns bullish for moong
      Mixed trend in sugar
      Turmeric pales on quality worries
      Small growers seek minimum support price for green tea

      Karnataka to assess reserves before auction of C-category mines in the State.
Market Trends
Sensex   25,473.89▼ (down)  ▐ ▐  109.80
Nifty         7,626.85 ▼ (down)  ▐      29.55

Forex Rate – Dollar Rupee Exchange Rate
Open      59.28
Closing   59.30Gold (10g) 27,050.00


Silver linings

There have been stray bit of positive economic news in recent days. The latest trade data suggests that domestic demand is inching up. Inflation expectations of Indian households, seems to be stabilizing. Growth in rural wages continues to decelerate. And there are signs that business confidence has been improving since the election results were announced.

It is clearly too early to conclude that the Indian economy has turned the corner. It continues to battle monumental challenges.  The key to a sustainable rebound is a smart recovery in the private sector investment cycle and that will depend   on what the new government does in terms of policy stability, administrative clarity and fiscal policy.

The economic forecasts released by the World Bank this week show that India is likely to see the smartest recovery among emerging markets over the next three years.

"FKCCI News Tracker 04.06.2014"



      Sensex ends at new high, but players hold back. Investors watch out for policy clues from govt.
      RBI cuts SLR by 50 bps to release Rs 40,000 cr. Governor keeps key policy rates unchanged.
      RBI reduces limit for export credit re-finance. The exporter community is skeptical about the Reserve Bank of India’s decision to reduce availability of funds under the export credit refinance (ECR) window to 32 percent from 50 percent of export credit outstanding.
      Indian firms want FDI hike in defence with tech transfer rider
      Jaitley to hold pre-budget talks with industry, trade on Friday. India Inc may pitch for tax reforms, goods and services tax.

      El Nino may set in by August
      Conditions favourable for the onset of monsoon
      Ample stocks pound wheat
      Chana falls on higher arrivals
      Pepper unchanged on poor demand
      Groundnut oil drops as millers sell
      Sugar futures gain on value buying
      Edible oils slip on slack offtake

      Centre promises to not be hasty on Kasturirangan Report.  Union Environment Minister has promised the Karnataka unit of the BJP that the Centre would not take any hasty decision on the controversial Kasturirangan report.

Market Trends
Sensex   24,858.59▲ (Up)  ▐ ▐  173.74
Nifty         7,415.85 ▲ (Up)  ▐     53.35

Forex Rate – Dollar Rupee Exchange Rate
Open      59.39
Closing   59.16 Gold (10g) 27,050.00


Analysts hopeful of primary market revival

The primary market seems to be fast gearing up to play ball with the bullish sentiment in the secondary market, which has been setting new records since the new government was formed.

According to a study by SMC Global initial public offerings have been evaporating for the last three years, as the economic slowdown forced 109 companies to call off their plans to tap the capital market for raising Rs 52,500 crore. These companies could not hit the market despite the approval of capital market regulator SEBI . Companies have to launch their IPOs  within one year after receiving SEBI nod. The present market rally is led by sentiments but we have to wait for a clear policy signal from the Government before large corporate houses jump  into the fray. It is the right time for the mid and small cap companies to hit the market. It would also be interesting to look at the Government’s approach towards the disinvestment programme which was supposed to bring public issues of several blue chip public sector undertakings.

"Mr.Modi - First Steps In The Prime Minister's Role"



Article written by Mr. D. Muralidhar, President, HIA on " Mr.Modi - First Steps In The Prime Minister's Roleon today's paper 04.06.2014 - in the Bangalore regional newspaper ‘PRAJAVANI’. 

attach Download Attachment

"FKCCI News Tracker 31.05.2014"



      Manufacturing, construction drag economic growth to 4.7 percent in 2013-14.

      International deposits of banks rose 36 percent in December. The RBI on Friday said international liabilities of banks have increased 36 percent as non resident Indians deposited funds in their home country.

      Forex reserves down $ 2.26 billion. The country’s foreign exchange reserves fell by $ 2.26 billion in the week ended May 23 to $ 312.65 billion.

      Retrospective taxation needs to go India Inc tells govt.

      The govt and RBI have both stressed the need to bring down inflation while respecting fact that growth is very weak.

      FDI cap in defence may go up to 100 percent. The Centre has begun consultations on allowing 100 percent foreign direct investments in defence on a case to case basis, with the underlying purpose of expanding the defence manufacturing base in India.


      Karnataka to come out with new industrial policy soon.  State may encourage private parties to set up industrial parks.

      Karnataka invites Peru to GIM 15

      Karnataka set for aggressive highway expansion. Karnataka is set to get a new National Highway with the Centre sanctioning work in this connection. The Union Ministry of Road Transport and Highways has sanctioned construction of the NH 212 which starts at Karnataka border at Muleholehalla at Bandipur Tiger Forest and run on Gundlupet- Nanjangud- Mysore T Narasipur route, and terminate at Kollegal near Uttaramballi, adjoining the Kerala border where it joins the NH-209.

      Canara Bank aims to grow its asset base by 20 percent in FY 15.

Market Trends
Sensex   24,217.34 ▼ (down)  ▐ ▐  16.81
Nifty         7,229.95 ▼ (down)  ▐     5.70

Forex Rate – Dollar Rupee Exchange Rate
Open      59.10
Closing   59.04 Gold (10g) 27,150.00

"FKCCI News Tracker 27.05.2014"



      PM Modi pledges to take India new heights.
      Nifty, Sensex end flat on profit booking
      Current account deficit dips sharply. In what comes as good tidings for the newly sworn in Narendra Modi Government, India’s current account deficit  (CAD) fell sharply to $ 1.2 billion, to a mere 0.2 percent of GDP , in the fourth quarter of 2013-14.
      With new Govt, India Inc looks for economic revival. As Narendra Modi assumed office as the Prime Minister of the country, India Inc said that it looks forward to revival of the economy.
      Foreign investment inflow may double to $ 60b, projects. Industry calls for removing restrictions on gold imports.


      Turmeric loses sheen
      Ample stocks hold sugar on leash
      Rice rules flat on poor off take

Market Trends
Sensex   24716.88 ▲ (Up)    ▐ ▐  23.53
Nifty         7,359.05 ▼(down)▐     8.05

Forex Rate – Dollar Rupee Exchange Rate
Open      58.72
Closing   58.51 Gold (10g) 27,900.00


Riding on Hope

A robust stock market can also help companies fortify their balance sheets by raising new equity capital to replace debt. Moreover, liquidity and sentiment can raise demand and increase real consumption. By reducing import costs, a stronger rupee makes a range of goods from fuel and edible oils to gold and industrial components cheaper, thereby relieving inflation pressures and stimulating demand. The tendency of affluent Indian consumers to put off big-ticket purchases such as cars, jewelry and durables in recent times was as much a problem of consumer confidence as affordability. After all, the slowdown notwithstanding, incomes in India’s organized sector have expanded at a healthy 15 percent in the last three years.

Finally, even investment decisions of companies rely, not so much on interest rates as corporate chieftains would have us believe, but on the likely return on investment. So if margin pressures ease off and consumer confidence revives, those corporates that are not debt- burdened may well look to invest in new projects. This will allow the virtuous cycle of investment, expansion and growth to be set in motion once again.  Summing up, liquidity and sentiment have already won half the economic battle for this government. It is up to it to manage the rest.

"e-waste notification of Government of India"


The notification on e-waste issued by Ministry of Environment & Forest of Government of India as received from CII, Karnataka.

This is for the kind information of all member companies and we request all companies to consider recycling the E-waste generated by them as per circular.

Download Attatchments Download


"FKCCI News Tracker 24.05.2014"


      Forex reserves rise by $ 1 billion. India’s foreign exchange reserves shot up for the fourth consecutive week rising $1.09 billion to $ 314.93  billion in the week.

      Sensex, Nifty continue rally. Equity benchmarks scripted a strong rally to close firm on Friday ahead of the formation of the new government on Monday.

      Top 500 frims raised Rs 20,000–cr debt dividend payouts in FY 14: India Ratings.

      Bring coal and mining sector back on track to revive manufacturing: KPMG. Consulting firm KPMG has suggested resolving issues around coal and mining sector as “ quickly as possible” to revive the manufacturing sector in India.

      SBI  to tap capital markets if loan growth improves. The country’s largest State Bank of India might hit the capital market if loan growth exceeds 15 percent.

      ONGC told to pay out record Rs 56,384 cr in retailer subsidies. Govt to contribute Rs 70 K cr cash subsidy.

      Economic survey to revert to old style. The Economic survey this year will revert to its old style and a whole chapter devoted to employment in 2013-14 survey, will be absent. The focus of the Economic Survey is expected to be on reviving growth in an economy which is facing near stagflation.

      Bellary mines on verge of reaching SC-prescribed cap. Bellary, which was in the limelight for all the wrong reasons during the BJP regime will soon be reaching its mineral resources capping as prescribed by the Supreme Court.

Market Trends
Sensex   24,693.35 ▲ (Up) ▐ ▐ 318.95
Nifty         7,367.10 ▲ (Up)   ▐     90.70

Forex Rate – Dollar Rupee Exchange Rate

Open      58.51
Closing   58.46 Gold (10g) 27,950.00


Focus on job creation

Employment generation
From the Indian people’s point of view, an important product of industrial growth has to be employment generation on a large scale.  Aspiring, young and aware population has to be provided well-paying jobs. So far, the industrial GDP growth in India has not come from labour-intensive manufacturing.  It has been driven by less labour-intensive activities such as the IT and ITES industry, business process outsourcing, finance and banking, and construction and real estate. The employment elasticity of industry ie., per cent increase in employment for every one per cent increase in employment for every one per cent rise in industrial GDP has been declining drastically.

From such near jobless growth; India has to go to a model of growth with job creation. Perhaps, the next government may encourage small and medium scale enterprises so that they form a very large part of India’s manufacturing / industrial sector.  The government should take care that these units are dispersed evenly across the rural and small towns of the country.

The economic slowdown in the world is one major problem. The technological developments are leading to a situation where the employment generation is more at the higher skills level. The worldwide slowdown has merely exacerbated the already existing structural problem. Can low skilled people be employed in an industry that is also competitive on a global scale? Can there be a concerned national effort to enhance training and education and acquire the required skills?



The Article written by Mr. D. Muralidhar, President, HIA on the topic " MODI WILL DELIVER- GIVE HIM A DECENT A CHANCE" was published in the Bangalore regional newspaper ‘PRAJAVANI’ on 21.05.2014.

Download Attatchments Download


"FKCCI News Tracker 20.05.2014"


      Small and mid cap shares led the buying frenzy on Dalal Street on Monday as rising hopes that the new government would repair the economy prompted investors to lap up stocks that were available cheap.
      Modi rally charges up power, infra stocks. Banking on upturn in Indian economy, foreign brokerages upgrade Sensex targets.
      Govt may not take quick steps on multi-brand retail. Though the Bharatiya Janata party ( BJP)s election manifesto has categorically opposed foreign direct investment ( FDI )  in multibrand retail to protect the interest of small and medium traders, the new government is unlikely to reverse  the existing policy.
      Modi regime might fuel FDI rush into real estate. With a clear mandate for a Bharatiya Janata party led government at the Centre, developers and experts are expecting a revival and an increased inflow of foreign investments into the realty sector.
      Controlling inflation is the immediate challenge for the new government. Price rise or inflation, particularly in food items was the single most important factor that led to the routing of UPA II  government in the just concluded general elections.
      Stagflation will end in next few quarters: Morgan Stanley. The election results could be an “inflexion point” for India’s growth story and the country’s GDP expansion is likely to accelerate to 6.5 percent over the next two years according to a report by US investment bank Morgan Stanley.
      Uptick in commercial vehicle loans unlikely before October: Bankers
      Nayak report is credit-positive for state-run banks: Moody’s. The recommendations by a Reserve Bank committee to improve corporate governance structures at public sector  banks are credit positive for the rating agency Moody’s said.

      Karnataka CM vows to clear pending projects. The Congress government in Karnataka, which completed one year in office, plans to lay thrust on increasing power generation, augmenting water resources for both drinking and irrigation and completing all pending irrigation projects.
      Karnataka power supply firms sign pact with AP Genco. The Electricity Supply companies ( ESCOMs) of Karnataka and Andhra Pradesh Power Generation Corporation  (APGENCO) have signed a power purchase agreement ( PPA) for sharing 230 MW power generated from Priyadarshini Jurala Hydro power project. 
      Namma Metro Ph-1 to be completed by Sept ,2015. Work on Rs 26, 405 cr 72-km phase-2 to begin very soon.
      State inks landmark power purchase agreement with Andhra Pradesh. After three and a half decades of of long wait when Priyadarshini Jurala Hydro Power Project was conceived in 1978, Karnataka and Andhra Pradesh on Monday signed the much awaited power purchase Agreement ( PPA ) .  The total project cost is estimated to be Rs 720 crore that will be shared by both the states equally.
      Despite supply squeeze, cardamom loses flavor
      Quality root turmeric finds takers
      Soya oil slips on weak global cues
      Rising rupee drags edible oils
      Selling pressure dissolves sugar
      Govt procures more wheat than last year

Market Trends
Sensex   24,363.05 ▲ (up)  ▐ ▐  241.31
Nifty         7,263.55 ▲(up)   ▐       60.55

Forex Rate – Dollar Rupee Exchange Rate
Open      58.60
Closing   58.78   Gold ( 10g) 29,100.00

Banking on the new government
The meteoric rise of bank stocks in the past three months, especially those of state-owned lenders, is basically a bet that a new and stable government will start the investment cycle and boost economic recovery, which will ease asset quality and improve credit demand.
Given that a cyclical recovery seems far away, the government will need to make decisions quickly in clearing stalled infrastructure projects. That will have a multiplier effect in many other industrial sectors and help boost bank credit growth, which is lagging at 13-14%.
Secondly, there is a lot of money stuck in such projects which appear as bad loans in bank balance sheets. Total stressed assets are estimated at a huge 15% of loans. If projects return to track, asset quality will automatically improve and more capital will be freed up for new lending.
That’s especially important for public banks, which need fresh capital. In the interim budget, the previous government had promised to infuse Rs.11,200 crore into state owned lenders, which may not be enough.  However, the new government will be fiscally constrained to increase this amount unless they find fresh ways of raising money.
Of course, given the National Democratic Alliance’s privatization track record, it may well accept the P.J. Nayak panel recommendations to privatize state-owned lenders.
Another thing that investors are hoping the government will do is frame some policies to bring inflation under control.  But with factors outside its control such as the E1 Nino weather pattern, that is a tough ask. If the Reserve Bank of India (RBI) sticks to its inflation-targeting policy, expect rates to remain high. This is a negative for banks. In the end, unless there is a clear sign that growth is picking up, the rally in bank stocks will run out of steam.

"FKCCI News Tracker 19.05.2014"


      Will FIIs continue to power market rally? Foreign investors were once again at the forefront in driving the Sensex and the Nifty to new highs on Friday. Now that the elections results are out will their strategy change? Will FIIs continue to bring in money in the hope that the new government will deliver? Or will they exit with a new profit?

      Citi Research ups growth forecast to 6.5 percent in 2015-16. Citi Research- a division of Citi group Global Markets- has raised its India GDP growth forecast for 2015-16 to 6.5 percent on expectations of an accelerated pick-up in investments.

      Rising bad loans, pressure on margins force public sector banks to prune dividend.

      Life insurers seek hike in FDI, tax sops. Want foreign investment cap raised to 49 percent from 26 percent now.

      Market valuation: ONGC leads top 9 Sensex companies. The combined market valuation of top nine Sensex firms advanced by a whooping Rs 1.39 lakh crore with energy majors ONGC and RIL emerging as the star performers, while TCS saw a marginal dip last week when stock market recorded life-time highs.

      Forex reserves up $ 1.97 bn to $ 313.83 bn. The foreign exchange reserves rose by $ 1.97 billion to $ 313.83 billion in the week ended May 9, on higher currency assets.


China’s economy, which was smaller than India’s in the 1980s, has raced ahead since, showed a study by CRISILResearch. It led to higher reduction of poverty in China than India. Car sales in the neighbouring country have also zoomed past that of India.

CRISIL’s latest study showed India's economy was 1.75 times bigger than China's in 1960. In fact, by 1980 as well, India's economy was $0.3 trillion, while Chinese was only $0.2 trillion on a purchasing power parity (PPP) basis.
However, by 2013, the Chinese economy had become 2.7 times India’s. By 2018, the Chinese economy will be more than $20 trillion (PPP), while India’s will not even touch $8 trillion, the study noted.

For obvious reasons, this has also led to higher per capita income in China. China achieved the per person income of $9,000 plus on PPP basis in 2012 compared to $3,000 in India. This has also led to faster reduction of poverty in China than India. For example, the proportion of the people under the poverty line was higher than India by over 10 percentage points in 1994. While China had close to 60 per cent of population under the poverty line, half of the population was poor in India then.

By 2009, India's poverty ratio was over 20 percentage points higher than China's. Close to 33 per cent of population was poor in India, while around 12 per cent of population was under poverty line in China.

China's faster movement than India's is also seen in the number of car sales. In 2003, car sales in China zoomed past India's by 2.1 million. By 2010, the difference rose to 7.5 million. “As a result of higher sales, cars per 1,000 persons in China was nearly 2.6 times India's,” the study noted.

"FKCCI News Tracker 13.05.2014"



      Market scales new highs on hopes of a BJP  win. Rising expectations of a stable government, led by the BJP  saw the Nifty and the Sensex close at all time highs on Monday adding over Rs 1.35 lakh crore of market capitalization over Friday.
      Diesel prices hiked. Diesel prices were today hiked by Rs 1.09 a litre, excluding State levies.
      Factory output dips, inflation surges. Factory output shrinking for the second month in a row contracting 0.5 percent in March, and retail inflation surging to a three month high of 8.59 per cent in Aril sent out alarm signals for the new government.
      Public sector banks’ debts hit 9 year high. Bad debts of public sector banks have surged to a nine year high, with the corporate sector accounting for the biggest increase.
      Exporters in a tizzy as rupee hits 10 month high. Exporters are keeping their fingers crossed as the rupee strengthened to a 10 month high of 59.50 to  dollar on Monday before closing at 60.05 threatening to make a big dent in their earnings.
      Tax info: India to keep the heat on Switzerland. India intends to exert pressure on Switzerland to abide by its obligations under the recently adopted declaration on Automatic exchange of information in tax matters.
      Depending on banks for infra funding, a costly failure . High dependence on banks for infrastructure financing has been a costly failure for the Indian economy according to Department of Economic Affairs Ministry of Finance.
      Industrial output remains negative, dips 0.5 percent in March. Weak consumer demand and investment pulled down India’s industrial production ( IIP) to 0.5 pecent in April year on-year  but as compared to the last month , the number was better than a contraction of 1.8 percent. For the year as a whole in 2013-14, industrial output remained flat.
      Finance Minister asked public sector general insurance companies to improve their market share from 53 percent currently.

      Power tariff hiked in Karnataka. Karnataka Electricity Regulatory Commission   (KRRC) has approved an increase of power tariff for commercial and industrial consumers across the State by 30-40 paise per unit. Domestic consumers too not spared.
      Tariff hike may hit industrial activity : Chambers of Industry and Commerce have criticized the tariff hike approved by the regulator saying that it has come in at an inopportune time. FKCCI said it was an inopportune moment to increase the tariff when industrial activities in the entire country are low.  (Business Standard Tuesday 13th May 2014 )
      State likely to add 4,600 Mw by 2018 . New capacity will come from Kudagi, Yermarus, Edlapur, Bellary thermal power projects.
      Tamil Nadu asked to select hub for Chennai-Bangalore corridor.  The Tamil Nadu government has been asked to soon finalise the node ( industrial hub) for the Chennai-Bangalore Industrial Corridor ( CBIC). The integrated master plan for the project will be finalized by March 2015, and the next stage is to prepare for the nodes as suggested by the state governments.
      State asks Centre to reduce toll charges along airport road. Under pressure from various quarters, the State government has opposed the steep increase in the toll on a stretch of NH 7 leading to Kempegowda International airport and urged Union Minister for Road Transport and Highways to slash the charges by applying the 2014 toll policy.
      Diesel to cost Rs 61.33 in city. Diesel price went up to Rs 61.33 litre in Bangalore as the oil marketing companies (OMCs) effected an increase of Rs 1.32 per litre in the City from Monday midnight.
      Health care can be focus of ties with India: Israeli envoy Alon Ushpiz, Israeli Ambassador to India emphasized on focusing an affordable health care and increasing the scope of cooperation between India and Israel in the areas of policing and counter terrorism  at an interaction with Federation of Karnataka Chambers of Commerce and Industry ( FKCCI) Deccan Herald May 13 2014
      Israel plans to sign FTA with India said Israel ambassador to India at an interactive meeting with FKCCI ( Business Page No 15) Deccan Herald May 13 2014.
      Incentives to attract private players in tourism sector. State govt to develop 18 beaches as tourist destinations. 319 tourist destinations identified in State.  Creation of Tourism infrastructure Corporation for centralizing tourism-related activities. Appointment of a private consultant for every district to approve tourism development plans.

      Domestic buyers feast on Alphonso mangoes.
      Stack buying sours sugar
      Bullish outlook for soya
      Edible oils rule steady
      Rice seen ruling in ranges
      Summer showers dampen cardamom’s flavor

Market Trends
Sensex   23,551.00 ▲ (up)  ▐ ▐  556.77
Nifty         6,652.55 ▲(up)   ▐    155.45

Forex Rate – Dollar Rupee Exchange Rate
Open      60.05
Closing   60.03   Gold ( 10g) 30,000.00


Watching the watchdogs

The new companies Act rules will go some way in ensuring auditors do what investors expect of them.

Of the many provisions in the new Companies Act intended at tightening tax corporate governance standards, those relating to the auditing profession are possibly the most significant. Recently notified rules under the Act have made it mandatory for companies – both listed and unlisted to rotate their auditor once every five years and the audit firm once in ten years. The idea here is to ensure that the auditor’s objectivity is not compromised by a cosy relationship with the client. Auditors have been barred from taking on consulting or other assignments from their clients and will attract personal liabilities for negligence; at the same time, they will be vested with a whistle-blower function. Thus, in the event of detecting any irregularities committed in the company, they are obliged to report the same within 45 days to its board and within 60 days to the Central government. Besides, the Act has proposed a new regulatory body – the National Financial Reporting Authority (NFRA) – to oversee these rules, conduct enquiries and levy penalties on auditors for non-compliance.

Predictably, leading audit firms have criticized the new rules. Mandatory rotation, they claim, will dilute the quality of the audit, as there will be less time now to understand the company or the industry it is in. But this doesn’t hold water as 10 years is more than sufficient to acquire industry knowledge. The argument against subjecting unlisted firms to compulsory auditor rotation is also a non-starter. After all, it is not only public shareholders, but also banks, suppliers, buyers and tax authorities that rely on a company’s published financials. Even more specious is the claim that banning consulting assignment and penalties for negligence will make statutory audits a costly and unattractive proposition. What stops auditors from hiking their fees? Investors who rely on the opinion of auditors will certainly not object to that.

For investors, lenders and other stakeholders, the real problem arises from the failure of auditors to flag serious accounting issues. All too often, when faced with non-disclosure of material facts, bad accounting policies or non-adherence to standards, auditors shy away from qualifying their reports and take shelter under ‘emphasis of matter clauses or notes’ tucked away in the accounts. These render published accounts unreliable. There are nearly 1,700 listed companies suspended from trading for not complying with basic disclosure requirements such as filing financial results. Companies routinely vanish from the bourses as a result of promoters siphoning off funds. These are common infractions that rigorous auditing can uncover. The Centre should expedite taking the next step, that of constituting the NERA. 

"FKCCI News Tracker 30.04.2014"


      Crisil: Fiscal deficit control makes higher growth challenging: New Govt must raise productive spending. The Government’s efforts to narrow the fiscal deficit since the last two years by expenditure cuts has resulted in lower productive spending and the new government would find it challenging to give it a boost says a report.

      Exim Bank to focus more on assisting project exports. Move will help country earn more foreign exchange. Export- Import Bank of India (Exim Bank) will step up focus on supporting project exports from India to Africa, South Asia and Latin America.

      CEOs pin their hopes on the new government. Around 50 percent of Indian CEOs surveyed for a poll said they are optimistic about the Indian economy and expect it to be stronger in the next six months.

      Indian business optimism at its highest since 2010: Grant Thornton. Indian business optimism has surged to its highest since the end of 2010 on hopes of a more business friendly administration after the elections according to the Grant Thornton International business Report.

      Mixed trend in sugar market
      Hybrid turmeric gains
      Steady demand keeps wheat flat
      Cropping pattern to change on lower rainfall
      Gem & Jewellery exports decline by 11% in 2013-14

      Six- laning of B’lore-Mysore Road. Six laning of Bangalore-Mysore highway had become inevitable as the traffic density on the 137 Km stretch had doubled during the last few years.

      Green issues stall Kaiga-Kerala power line. The controversial proposal to draw a high tension power transmission line from Kaiga in Uttara Kannada district to Kerala via Kodagu and Mysore districts is back in focus with the State government seeking a report on the pros and cons of the proposed project of the Power Grid Corporation of India Limited ( PGCIL).
      Govt revokes order on sale of power by pvt co-gen units. In a surprise move, the State government has told the High Court that it is revoking its order dated March 26,2014 which mandated private players to sell all the power generated by them only to the State grid as the  “emergency” has ceased to exist and there is “surplus” power in Karnataka.

Sensex   22,466.19 ▼ (down) ▐ ▐ 165.42
Nifty         6,715.25 ▼ (down)   ▐    46.00

Forex Rate – Dollar Rupee Exchange Rate
Open      60.43
Closing   60.65    Gold (10g) 30,250.00


Is an 8% economic growth rate feasible for India?

Amidst the mixed signals from economic indicators such as IIP, inflation and trade data, analysts and economists are in a dilemma - has the economy bottomed out? Adding to the uncertainty are the likely policy announcements by the next government. The formation of a new government is being viewed by many as a make-or-break event for the economy.

While opinion polls and markets are largely favouring a New aggressive Government  to rescue the economy from the rut of low growth, major ratings agencies are of the view that a decisive, rather than fractured mandate would bode well for the country as a whole.

What is the growth rate potential of the Indian economy? Having plunged to decade-low sub-five per cent growth rate levels, how feasible is it for India to achieve 8% plus levels of GDP growth?

C Rangarajan, Chairman of PMEAC is of the opinion that India can easily achieve 7.5 to 8 per cent growth, given its high savings and investment rate. "What is the potential rate of growth in the economy? The analogy is from capacity utilisation. The savings and investment rates are still high enough. Even as late as 2012-2013, the savings rate of the economy was 30% of the GDP and the investment rate was 34% or plus. Therefore given the incremental capital output of 4:1, the rate of growth in the economy should have been 7.5 to 8%. Therefore, given this level of savings and investment rate, the potential rate of the growth of the economy is somewhere around 7.5 to 8%," he said. "If you are able to raise the savings rate and the investment rate to a much higher levels we can go back to 9%,"

Recently, Montek Singh Ahluwalia, Deputy Chairman-Planning Commission also expressed hope that in the long-term, the economy would be able to achieve an above 7.5% growth rate. "I would not be surprised if the long-term growth potential of the Indian economy is somewhere between 7 and 7.5%, but right now we are below potential. In the next three to four years we should be aiming at better than 7 to 7.4%, but over a longer period if India manages to grow, I would hope for 8% for several years,"

So, if economists have little doubts about the robust growth prospects of the country, what is stopping India from achieving a high GDP growth rate? Rangarajan feels that bottlenecks and delay in the completion of projects is the root cause of the problem. "The gross fixed capital formation rate, even according to the latest numbers is somewhere around 31% of the GDP. Therefore, if the normal incremental capital output ratio held good, we should have get something like 7% to 7.5% very easily. But, we got less and that is precisely because of delay in the completion of projects, the lack of complementary investments and perhaps in some cases the non-availability of critical inputs,"

"The most important thing that needs to be done is to get the maximum out of the investments that are being made. Savings in the form of financial assets are much less than what used to be as a proportion of GDP. We need to raise it,"

"Even as of now the gross fixed capital formation is high enough to give us the growth rate of 7.5 to 8%, provided we take action for speedy completion of projects, remove the bottlenecks that come in the way of the fulfilment of projects,"

The new government's pace of implementing reforms would decide the course of growth, feel analysts.

"FKCCI News Tracker 29.04.2014"


      Commodities futures market caught in bear grip. The commodities futures market continues to reel under the twin impact of the commodities transaction tax (CIT) and the National Spot Exchange Ltd (NSEL) imbroglio. These developments which have affected liquidity and discouraged trading, have led to a sharp dip in turnover in the market.

      Policy push vital for high growth: India Ratings. To return to the higher growth trajectory, the new government will need to push serious policy reforms India Ratings has said. Although, the ratings agency has kept its growth forecast for 2014-15 at 5.6 percent, claiming that the worst is over, the Indian economy is unlikely to migrate to a high growth phase of around 9 percent over the next two to three years.

      Government for discussion paper on royalty payment ceiling. Amid worries over a 50 percent rise in royalty payments by Indian firms to their foreign partners or multinational parents in four years to 2012-13, the government is likely to bring a discussion paper for review of the present unbridled policy after the Lok Sabha polls are over.

      Automobile slump stoking labour issues at companies.

      MOF calls Sebi okay for MF monitor wrong. The finance ministry has objected to the capital market watch dog allowing an entity backed by the mutual fund industry to function as a self regulatory organization for mutual fund distributors going to the extent of calling it a violation of securities laws.

      New land acquisition act hampers infra projects. With industrialists and infrastructure project developers complaining about the increasing cost of land after the new land acquisition act came into force since January, pressure is mounting on the Centre to review certain provisions of law.

      MF industry lost 33 lakh investor accounts in FY 14.Mutual funds lost about 33 lakh investors, measured in terms of individual accounts or folios  in the last financial year,2013-14 primarily on account of volatility in equity market.


      Tea  output may wilt 10 percent on NE dry spell
      Slack arrivals push soya bean oil
      Sugar turns sour on selling
      Turmeric gleams on N India orders
      Imported oils gain
      Record cashew exports last fiscal

      Karnataka gears up for tackling water shortages. Karnataka would hold day to day review meetings in districts to discuss the preparedness of officials to tackle drinking water crisis.

      State still at a loss to meet rural healthcare needs.

      Mysore, B’lore may not face water crisis. Cities like Mysore, Bangalore and Mandya may not face drinking water problem this year, with the Krishnarajasagar (KRS) and Kabini reservoirs  recording enough storage. But things do not appear too rosy for Hassan that depends on the Hemavathi reservoir for its water needs.

Sensex   22,631.61 ▼ (down) ▐ ▐  56.46
Nifty         6,761.25 ▼ (down)   ▐    21.50

Forex Rate – Dollar Rupee Exchange Rate
Open      60.65
Closing   60.63    Gold (10g) 30,300.00

An inclusive growth Policy
The impressive gain by rural households in spite of the favouritism towards non-primary activities appears real.

Despite the high growth over the past two decades, concerns have been raised over the growth not being equally distributed.

The story of growth at the aggregate level is fascinating because most of the changes during the liberalization phase have favoured the growth of non primary activities. But the impressive gain by rural households in spite of the favouritism towards non primary activities appears real and requires further investigation.

The average income growth of other vulnerable groups was higher than that of high caste Hindus. The income of Adivasis grew at 5.7 per cent annually while the income of Muslims grew by 5.4 per cent.

The relatively greater progress of vulnerable despite this growing inequality seems to suggest that the inclusive growth policy implemented during the 11th Five Year Plan may have been working. While a much more rigorous analysis is required to delineate the factors that have led to this, our conjecture is that some of the social sector schemes like the Mahatma Gandhi National Rural Employment Guarantee Act. Janani Suraksha Yojana, the National Rural Health Mission may have contributed to this inclusive growth.



The Article written by Mr. D. Muralidhar, President, HIA on the topic " Will The Real Gop (Congress Party) Stand Up ?" wass published in the Bangalore regional newspaper ‘PRAJAVANI’ on 23.04.2014.

Download Attatchments Download


"FKCCI News Tracker 20.05.2014"


      Small and mid cap shares led the buying frenzy on Dalal Street on Monday as rising hopes that the new government would repair the economy prompted investors to lap up stocks that were available cheap.
      Modi rally charges up power, infra stocks. Banking on upturn in Indian economy, foreign brokerages upgrade Sensex targets.
      Govt may not take quick steps on multi-brand retail. Though the Bharatiya Janata party ( BJP)s election manifesto has categorically opposed foreign direct investment ( FDI )  in multibrand retail to protect the interest of small and medium traders, the new government is unlikely to reverse  the existing policy.
      Modi regime might fuel FDI rush into real estate. With a clear mandate for a Bharatiya Janata party led government at the Centre, developers and experts are expecting a revival and an increased inflow of foreign investments into the realty sector.
      Controlling inflation is the immediate challenge for the new government. Price rise or inflation, particularly in food items was the single most important factor that led to the routing of UPA II  government in the just concluded general elections.
      Stagflation will end in next few quarters: Morgan Stanley. The election results could be an “inflexion point” for India’s growth story and the country’s GDP expansion is likely to accelerate to 6.5 percent over the next two years according to a report by US investment bank Morgan Stanley.
      Uptick in commercial vehicle loans unlikely before October: Bankers
      Nayak report is credit-positive for state-run banks: Moody’s. The recommendations by a Reserve Bank committee to improve corporate governance structures at public sector  banks are credit positive for the rating agency Moody’s said.

      Karnataka CM vows to clear pending projects. The Congress government in Karnataka, which completed one year in office, plans to lay thrust on increasing power generation, augmenting water resources for both drinking and irrigation and completing all pending irrigation projects.
      Karnataka power supply firms sign pact with AP Genco. The Electricity Supply companies ( ESCOMs) of Karnataka and Andhra Pradesh Power Generation Corporation  (APGENCO) have signed a power purchase agreement ( PPA) for sharing 230 MW power generated from Priyadarshini Jurala Hydro power project. 
      Namma Metro Ph-1 to be completed by Sept ,2015. Work on Rs 26, 405 cr 72-km phase-2 to begin very soon.
      State inks landmark power purchase agreement with Andhra Pradesh. After three and a half decades of of long wait when Priyadarshini Jurala Hydro Power Project was conceived in 1978, Karnataka and Andhra Pradesh on Monday signed the much awaited power purchase Agreement ( PPA ) .  The total project cost is estimated to be Rs 720 crore that will be shared by both the states equally.
      Despite supply squeeze, cardamom loses flavor
      Quality root turmeric finds takers
      Soya oil slips on weak global cues
      Rising rupee drags edible oils
      Selling pressure dissolves sugar
      Govt procures more wheat than last year

Market Trends
Sensex   24,363.05 ▲ (up)  ▐ ▐  241.31
Nifty         7,263.55 ▲(up)   ▐       60.55

Forex Rate – Dollar Rupee Exchange Rate
Open      58.60
Closing   58.78   Gold ( 10g) 29,100.00

Banking on the new government
The meteoric rise of bank stocks in the past three months, especially those of state-owned lenders, is basically a bet that a new and stable government will start the investment cycle and boost economic recovery, which will ease asset quality and improve credit demand.
Given that a cyclical recovery seems far away, the government will need to make decisions quickly in clearing stalled infrastructure projects. That will have a multiplier effect in many other industrial sectors and help boost bank credit growth, which is lagging at 13-14%.
Secondly, there is a lot of money stuck in such projects which appear as bad loans in bank balance sheets. Total stressed assets are estimated at a huge 15% of loans. If projects return to track, asset quality will automatically improve and more capital will be freed up for new lending.
That’s especially important for public banks, which need fresh capital. In the interim budget, the previous government had promised to infuse Rs.11,200 crore into state owned lenders, which may not be enough.  However, the new government will be fiscally constrained to increase this amount unless they find fresh ways of raising money.
Of course, given the National Democratic Alliance’s privatization track record, it may well accept the P.J. Nayak panel recommendations to privatize state-owned lenders.
Another thing that investors are hoping the government will do is frame some policies to bring inflation under control.  But with factors outside its control such as the E1 Nino weather pattern, that is a tough ask. If the Reserve Bank of India (RBI) sticks to its inflation-targeting policy, expect rates to remain high. This is a negative for banks. In the end, unless there is a clear sign that growth is picking up, the rally in bank stocks will run out of steam.

"FKCCI News Tracker 19.04.2014"



Forex reserves rise to $ 309 billion. India’s foreign exchange reserves rose to $ 309.44 billion as of April 11 from $ 306.65 in the week earlier.

Banks may be allowed to act as corporate agents for multiple insurers. In a bid to ensure that banks offer more choice insurance products through their branches a proposal is likely to be made to allow banks to tie up with multiple insurers as corporate agents.

Industry ministry for redrafting land acquisition act. In an effort to push the country’s manufacturing sector and foreign investment inflows, the Department of Industrial Policy and Promotion (DIPP) will push for redrafting of the land acquisition, rehabilitation and resettlement act under the new govt.

For FIIs, India is the best in emerging market basket. Foreign investors are betting top dollar on the country as growth is likely to recover at a time when other emerging markets are battling macroeconomic adjustments.


At 67.28 pc, State logs 3rd best LS poll turnout.

Falling Re:

Current account deficit is not the only problem. Credit growth, led by the government, is also to blame.

The major mistake is to view the current account deficit as the sole thorn in the falling rupee saga. The relative price of the currency, like any other commodity in the market place, is a function of supply and demand.

The only way to save the value of the currency is to ensure that every rupee of credit created by banks leads to higher production of goods and services – less new money producing more goods.

When credit off take was mainly driven by genuine demand of the private sector in 2003-07, it ensured high growth rates and an appreciating rupee.

However, since the financial crisis of 2008, the government’s plunder of the taxpayer’s money was back with a vengeance. The ratio of government credit off take to private sector credit off take rose rapidly.

With wasteful credit not contributing to growth, these re-distributionist policies of the government have been the single biggest cause for the decline of our currency, lowering of growth and spiraling inflation.

The important thing is to cut down on wasteful central schemes and expenditures. No matter how well intentioned they are, they largely lead to leakages and waste.Instead, it is important to empower States to carry out their own programmes based on regional needs.

"FKCCI News Tracker 18.04.2014"


National * Sensex jumps 352 pts on US Fed assurance. Indian markets rose about 1.5 percent, snapping three days of losses, after the US Federal Reserve said it remained committed to supporting an economic recovery. * Top 100 companies told to set up risk management committees. The Securities and Exchange Board of India has said that the top 100 companies must constitute risk management committees immediately in line with its revised corporate governance norms. * New Govt must modernize the tax administration. India must pay more attention to modernising its tax administration and look to broaden the tax base to increase its Central tax revenue to GDP ratio Senior Resident Representative India and Nepal, International Monetary Fund has suggested. * Higher exports, stable rupee are key to curbing current account deficit. India needs to keep its current account deficit in check by promoting exports and stabilizing exchange rate to realize the good economic prospects being projected by agencies such as the World Bank said Commerce Secretary. * SEBI tightens norms for related party transactions. Market regulator SEBI has mandated that all companies must formulate a policy on its dealings with related parties and the materiality of its related party transactions ( RPIs). * RBI may hike rates as inflation pressure persists : HSBC. The RBI is likely to keep singing a hawkish tune and possibly hike policy rates further because of additional risks to inflation in the form of El Nino and geopolitical uncertainities that have emerged in recent months. * Limited liability partnerships can accept FDI, clarifies RBI. The Reserve Bank of India said a limited liability partnership formed and registered under the Limited Liability Partnership Act, 2008 will be eligible to accept Foreign Direct Investment subject to conditions. * Credit growth slips to 13.8% deposits up 15%. According to Rserve Bank of India data bank deposits grew at 14.98 percent year-on- year basis to Rs 79,31,104 as on April 4, better than credit growth. * US urges Indian government to be more investment friendly. United States urged the Indian government that emerges from ongoing elections to follow economic policies that encourage investment. Washington would like to see bilateral trade grow to $ 500 billion in a year. * Over Rs 1,800cr excise duty evasion in 2013-14. * RBI implements Bhaskar panel recommendations on financial benchmarks. Agri/Commodities/Metals * Sugar rules steady; demand eases * Hybrid turmeric at Rs 9,600/quintal * Palmolein, soya oil prices rise * Bulk buyers keep away from rice * Tea output up marginally * Unofficial gold imports rose 75% in 2013: survey * Industry restive over delays in subsidy revision. The sugar industry is complaining about the unexplained delay by the government in revising the subsidy for export * Jaggery prices shoot State * Impressive turnout in KARNATAKA State at 65 percent. Sensex 22,628.84 ▲ (Up) ▐ ▐ 351.61 Nifty 6,779.40 ▲ (Up) ▐ 104.10 Forex Rate – Dollar Rupee Exchange Rate Open 60.29 Closing 60.39 Gold (10g) 29,750.00 OVERVIEW Survey states elections will usher the changes; fresh sector specific policies expected A recent study of companies across India shows an optimistic expectation of 4 per cent business growth and 5 per cent employment growth in the next six months. The outlook is a result of the impending elections and fresh sector specific policies as new regime is expected to usher in. Upbeat organisations are expecting business and employment to grow at a brisk pace for the HY1 April-September, 2014. The Business and Employment Outlook HY1 report released by Team Lease Services, a composite staffing company from India, shows that most cities across India will be having a positive hiring outlook in the forthcoming half year (HY1). Pune is expected to register employment outlook growth in the top three sectors - infrastructure (2%), healthcare and pharma (1%) and financial services (1%). The study, which covered 614 companies in the latest round, focuses on the employment growth potential, the business outlook and hiring forecasts with relation to the location and the company profile. Good tidings are anticipated for the Indian economy and this is obviously going to reflect on job creation. The overall sentiments have significantly improved this time around. The detailed study brings forth some important employment and business trends that will play a significant role in determining how job creation and hiring is to pan out in India over the next six months. The outcome of elections and the expected sector specific policy changes seem to have spurred the corporate sector which is witnessing a marked improvement in employment and business outlook. From a sector perspective, healthcare and pharmaceutical, financial services and infrastructure seem to be driving the growth. Key findings -Upbeat organisations expecting outlook growth of 4% business and 5% employment. -Gaining employment outlook are Mumbai (4%), Bangalore (5%) and Ahmedabad (4%). - Down on employment outlook are Kolkata (1%), Chennai (1%) and Hyderabad (2%). -Upswing in business outlook is Delhi (4%) -Down in business outlook are Pune and Chennai (2%) -Healthcare & Pharmaceuticals (employment 5% & business 4%) -Up in Financial Services (employment 4% and business 5%) -Infrastructure up by 4% business outlook, -ITeS down 4% business outlook. - Hiring to pick up across at entry level (2%) and junior (3%)

"FKCCI News Tracker 16.04.2014"


      Costlier food items push inflation up in March. Costlier food items especially vegetables and fruits pushed inflation based on wholesale prices up to 5.7 per cent in March.

      Jewellery manufacture may shift to China, WGC cautions India. The World Gold Council (WGC) has cautioned the government that the gold jewellery manufacturing industry may move to China if it does not take measures to institutionalize bullion trade in the country.

      RBI to ease curbs on exchange traded currency futures. The RBI may allow foreign institution investors (FIIs) to participate in the exchange traded currency derivatives market where volumes have been dropping at an alarming rate.

      Credit profile of small units may worsen this fiscal: India ratings. Small and medium enterprises (SMEs) in the country have been the first casualty of the current cyclical downturn says India Ratings & Research.

      Slowdown, rising interest rates affecting loan repayments: Moody’s analytics.  Moody’s analytics cautioned that deterioration in credit conditions is already being felt in India, where slower economic growth and rising interest rates have made it tougher for borrowers to repay debt.

      NPAs rising because of inadequate system checks. Former RBI Governor said public sector banks could be saddled with bloated non performing assets because of the absence of accountability within the system.

      Duty refunds will be made soon: Commerce Ministry. With the Finance Ministry finally lifting the unofficial embargo on duty refunds to exporters, the Commerce Ministry wants to press for  speedy clearance of the payments estimated at Rs 12,000 cr  which has been pending for the last  six months.

      Turmeric scales Rs 7,000/quintal
      Demand hopes sweeten sugar
      Sharp fall in wheat prices unlikely
      Mango to cost more on low output
      Edible oils heat up with cues from futures
      Slack demand robs flavor off cardamom
      March veg oil imports drop 6% on weak demand

      SBI home loan portfolio in Karnataka crosses Rs 14,800 cr.
Sensex   22,484.93 ▼ (down) ▐ ▐ 144.03
Nifty       6,733.10    ▼ (down)   ▐     43.20

Forex Rate – Dollar Rupee Exchange Rate
Open      60.23
Closing   60.18     Gold (10g) 29,680.00



India's economic slowdown in the recent years could be attributed more to domestic reasons than global economic slowdown, International Monetary Fund said in its latest World Economic Outlook report.

The Indian government has maintained that the economic crisis in the West is largely responsible for India's decelerating growth.

External factors have generally been much less important compared with internal factors for some relatively large or closed economies, such as China, India, and Indonesia, one of the chapters of the yet to be released report said.

"India's internal factors began dampening growth in early 2008, likely as the result of tensions from growing bottlenecks in infrastructure after a period of rapid growth," it said. Their negative incidence continued until mid-2009, when internal factors started contributing more to growth again.

India's GDP growth recorded a growth of 8.6% in 2009-10, to 8.9% in 2010-11 which sharply decelerated to 6.7% a year later to finally a decade low growth of 4.5% in 2012-13.

Central Statistics Office has estimated a 4.9% growth for 2013-14, which also seems challenging given that it will require the fourth quarter growth to rise by 5.5%. The multilateral agency had in its January report projected a 5.4% growth for India in 2014-15 on stronger global scenario, improving export competitiveness, a favourable monsoon and a confidence boost after recent policy actions.

For 2013-14, it estimated a 4.6% growth for the Indian economy. "Internal factors reduced growth from 2011 until the third quarter of 2012, but there is an increase in their contribution since late 2012," IMF said. India has been facing persistent inflation, fiscal imbalances, and investment bottlenecks which have pulled down growth.

Reserve Bank of India has kept interest rates high to tame inflation. IMF, however, added that growth in emerging market economies is significantly associated with growth in their trading partners, including that in other large emerging markets such as the BRICS (Brazil, Russia, India, China, South Africa).

"It highlights the increasing sensitivity of emerging market economies' growth to changes in these external conditions as these economies have rapidly integrated into the global economy," the reports said.

"Companies Act,2013"



The Ministry of Corporate Affairs (MCA) has notified rules for 10 chapters of the new Companies Act of 2013. 

These include rules for specifications and definitions, incorporation of companies, prospectus and allotment of securities, shares and debentures, registration of charges, management and administration, declaration and payment of dividend, accounts, appointment and qualification of directors, board meetings and powers, and corporate social responsibility.

The new Act, which replaces the Companies Act of 1956, comes into force from 1st April 2014. The Act has got lot of penal provisions on contravening the important provisions of the Act.

On contravening these provisions will attract minimum penalty of Rs.25,000/- and up to Rs.5,00,000/- or penalty with imprisonment of 6 months.

Mentioning of Corporate Identification Number (CIN) in Company Letter Heads, Invoices and on all official correspondence and publication.   Also Email ID, Contact Details and Website address if any must be incorporated with effect from 01/04/2014.

As per Section 188 of the New Companies Act,2013 the company has to get approval of the Board and its members before entering into any transaction with a related parties in respect of the items mentioned in the provisions sent herewith.

Loan to Director’s of in the Form of Books Debts or security for the loan taken by the directors will be viewed seriously as the same is prohibited as mentioned in the section mailed herewith.

Acceptance of Deposits as per new section 73 to 76 of the Companies Act,2013 Loan from other than directors will be treated as deposits including Share Application Money.   A lot of procedure is stipulated in the provisions as mailed to you herewith.

Please go through all the four important items attached under the New Companies Act,2013 as the consequences of Non Compliance is more severe.


"FKCCI News Tracker 15.04.2014"


      India – Asean services FTA in limbo over retail FDI. India’s free trade agreement (FTA) on services with the 10 member Association of Southeast Asian Nations is still in a limbo, as three members – Thailand, Indonesia and the Philippines are yet to ratify the deal.  While Thailand and Indonesia are demanding unconstitutional access to India’s multi-brand retail trading segment, the Phillippines appears to be scared of India’s Information technology (IT) sector.

      Round tripping: SEBI issues notices to five major corporate houses. Market regulator Securities and Exchange Board of India has issued notices to at least five major Indian corporate houses including United Spirits, Unitech, Essar, GMR and Sterlite on suspicions of stock price manipulation and possible insider trading through funds parked abroad.

      India Inc readies for a bright Q4. Better forex earnings, hopes of a stable govt drive profit growth. Better forex earnings and growing optimism about a “progressive” Government being formed after the general elections boosted the fourth quarter performance compared to the previous and the year-ago periods says analysts.

      Govt to simplify exploration norms. Companies such as Cairn and Reliance Industries may soon be able to hunt for hydrocarbons without any hassles and even after expiry of the exploration period if a proposal of the Petroleum and Natural Gas Ministry is approved. At present, a contractor faces restrictions while carrying out exploration in the block where it has made commercial discovery and started production.

      Most FIIs see stable new govt priming market for a fresh rally. The stock market has been on a bull run in the hope of a stable government emerging post elections.

      India’s share in global exports static in 2013. India’s share in global exports and ranking amongst top exporters remained unchanged in 2013. The country’s growing current account deficit, however, was flagged as an area of concern by the World Trade Organisation (WTO) in its trade forecast report releasedon Monday.

      At 10.3%, salary hikes this fiscal to be slightly lower than in FY 14. Pharma sector to see highest increase at 12.4% says Deloitte survey.

      60 percent of bank deposits owned by households. A study on the composition and ownership pattern of deposits with scheduled commercial banks by the Reserve Bank of India ( RBI) reveals that household sector continue to dominate deposit ownership. As of March 2013, they owned a shade under 60 percent of the Rs 71,46,600 crore of deposits in banks in the country.

      Fertiliser arrears touch Rs 30K cr at end of FY 14.

      Dealmakers eye poll boost to $30b M&As in 2014. The Indian mergers and acquisitions market is likely to see increased momentum post elections and experts believe overall deal values in India could exceed $30 billion this year if Lok Sabha poll result in a stable government at the Centre.


      Sugar export sops will continue, India tells WTO
      Refineries raise palmolein rates
      Demand hopes lift sugar
      Sluggish trend to continue in soya oil
      Arabica slips from 2-year peak


Why Should We Vote 
Voting in India is a Constitutional right if one is a citizen over 18 years of age. However, that also makes it optional. It has been a tendency among voters, especially in the urban areas, to treat the voting day as a day of rest. While skipping the vote may not seem to cause any harm, the long-term consequences are disastrous.

Here's why every citizen of India must cast his or her vote:

·         Agent of change: Voting is the agent of change. If the people of India think that the ruling government is not performing its duties satisfactorily, they can show it the door by voting against it. Refraining from doing so can result in the same party, or a worse one, being elected for the next five years.

·         Every vote counts: In a country so populous, a voter might feel that a single vote does not make any difference. However, the balance tilts when this becomes a national attitude and lakhs—perhaps crores—of votes are not cast. By casting their vote, citizens may not necessarily be able to get the best candidate elected—politics being what it is—but by avoiding casting their vote they improve the chances of the unsuitable ones winning the polls. At the end, it is only the voter who has to suffer through poor governance.

·         Get heard: Voting offers every citizen a medium of expression. In a country as vast and diverse as ours, different regions have different concerns and priorities. The process of voting allows every citizen to have a say in what should constitute the matters of importance by voting for the candidate he or she deems fit for the purpose. While it is true that the outcome of elections is seldom predictable, by not casting one's vote, that citizen is giving up on the chance of getting heard.

·         Voting as a responsibility: Voting is as much a responsibility as it is a right. The whole edifice of Indian democracy is built on the foundation of voting. If citizens are not careful about casting their vote—or worse, skip their vote altogether—it will jeopardize the existence of our democratic Republic.

·         Voting as an honor: Finally, voting is an honor conferred on the citizens by the founding fathers. By exercising their right to vote, citizens demonstrate their respect for the history of the country.

It can't be denied that the recent democratic experience in India has not been encouraging. For the past several years, India has been struggling with rampant corruption, unsure economy, and unclear foreign policy. Election after election has seen ineffective governments come to power that have done more harm than good. However, not casting one's vote will only worsen the condition. It is our duty as responsible citizens of India to make informed decisions and choose the best candidate from those presented. Moreover, with reforms like Right to Reject gaining wider support, it wouldn't be long before the system of elections is improved.




The Article written by Mr. D. Muralidhar, President, HIA on the topic "Will the change of Guard usher a Change?" wass published in the Bangalore regional newspaper ‘PRAJAVANI’ on 09.04.2014.

Download Attatchments Download


"holiday for the General Election to Lok Sabha, 2014"


Letter from Commissioner, Labor Dept, Govt of Tamilnadu declaring holiday for the General Election to Lok Sabha, 2014.Copy attatched

Download Attatchments Download

24th April 2014 , has to be a paid holiday for employees in all trade, industrial and other establishments.

TN GO declaring 24.04.2014 as General Public Holiday under NI Act, 1881 for the information of members. Copy attatched

Download Attatchments Download


Circular from EFSI


Circular from EFSI, Chennai

Subject : Clarification on Contribution under section 6 not payable on CTC.

Download Attachment EFSI

FKCCI News Tracker 01.04.2014


      Rajan likely to hold key rates on elections, softening prices: RBI Governor is likely to hold the key interest rates when he announces his annual monetary policy when he announces his annual monetary policy today.
      SEBI gets teeth to act against Ponzi schemes. For more effective and transparent implementation of market regulation, the Government has incorporated new checks and balances in the SEBI ordinance which was repromulgated on  March 28 to curb the menace of illegal deposits and Ponzi schemes.
      Current account deficit may be contained at $33 b this fiscal. The current account deficit ( CAD) for 2013-14 is likely to be contained at around $ 33 billion, much lower than the initial projection of $ 70 billion and around $ 88 billion of 2012-13.
      Digital marketing is the new frontier for IT sector, says Nasscom.
      GDP to grow at 5.5% in 2014-15 says FICCI
      Corporate Affairs Ministry clears air on depreciation schedule for firms. The Corporate Affairs Ministry has made changes in the depreciation schedule under the new company law to avoid confusion among stakeholders and introduce consistency in its recent guidance.
      Bullish on revival, experts pat govt’s back on reforms. India has managed to resolve some of its thorniest economic issues in the past six months and a combination of low valuations and increased foreign fund flows is likely to spur the markets to new highs in the coming months.
      Foreign investors hold high hopes for India vote.


      Agri, food processing sector to undergo image makeover



      Metro green line nets Rs 1.33 cr revenue in a months time. The stretch between Sampige Road and Peenya has netted Rs 1.33 crore revenue by ferrying a total of 6.8 lakh passengers.



In keeping with pre-election trends in emerging markets, India’s stock markets are sprinting ahead. Investors are betting big on a victory for the NDA (National Democratic Alliance) the 2014 general elections that are to begin on April 7 and finish with counting on May 16. Consecutive opinion polls are forecasting a better performance which spearheads the NDA. The investor optimism stems from the hope that a stable alliance will form a business-friendly government which will speed up reforms and accelerate economic growth.
But whatever the election results, a new coalition is expected to mint new ideas to spur economic recovery. The 2014 elections are being termed a defining moment in India’s economic story. A recent RBS report said that a change of leadership and ensuing policy changes could revive the Indian economy similar to Japan and China in recent years.
Earlier this week, Goldman Sachs Group upgraded India to “overweight” from “marketweight”. It raised the Nifty index’s 12-month price target to 7,600 (March 19 closing – 6524). “Cyclical macro adjustments in India have reduced external vulnerability. We now expect domestic fundamentals to improve as growth recovers in 2Q. Corporate earning downgrades seem to have bottomed out, with more signs of improvement in the investment cycle,” Goldman Sachs said. The benchmark Sensex has risen over 3% this year, and closed at 21,834 points on Wednesday (March 19) after breaching the 22,000-market several times in the week. Foreign investors have pumped in over $1 billion into Indian stocks since the beginning of 2014.
Experts say that optimism also arises out of the expectation that Indian companies will launch an expansion drive that will involve large capital expenditure if the political environment changes. The government recently cleared 92 major investment projects that had been amounting to 4% of India’s gross domestic product.
India’s economic fundamentals too appear to be stronger. Consumer price inflation eased to 4.7%, the lowest in 9 months. The current account deficit has narrowed.
Some experts caution that even if a pro-business alliance forms a stable government, it will have a challenging time reviving the economy and maintaining fiscal deficit. The Food Security Bill, for instance, will drive subsidy expenditure beyond the numbers estimated in the budget. But, as election dates draw nearer, the markets are expected to run up further.

FKCCI News Tracker 27.03.2014


      Economists paint a bleak picture of country’s growth: Stable govt may trigger a bounce back. With growth bottoming out in the current fiscal, experts are not very optimistic about the country’s economic picture changing significantly in 2014-15 even if a new govt comes to power after the general elections starting next month.
      Corporate Affairs Ministry notifies 183 more sections in new company law. Most provisions to come into force from April1.
      Indirect tax collection up 5.6% at Rs 4.41 lakh crore in April-Feb.
      World Bank sees capital flight from Russia.
      Poll outcome to decide pace of economic reforms: Global brokerage firm Morgan Stanley said the pace of economic reforms depends on the outcome of general elections, which, it assumed will throw up a stable government.

      Sugar exports hit as local prices touch 7 month high
      Apr-Feb cashew kernel exports jump 17%.
Sensex   22,095.30 ▲ (Up) ▐ ▐    40.09
Nifty       6,601.40 ▲ (Up)    ▐    11.65

Forex Rate – Dollar Rupee Exchange Rate
Open      60.17
Closing   60.48 Gold ( 10g) 29,120.00


Bad loans biggest challenge facing state-run banks: FM
Public sector banks could report higher non-performing assets in the current financial year ending March, Finance Minister said after a performance review meeting with public sector banks and financial institutions. So we have to wait and watch and see what it will be for March 2014. It is likely to be a little higher. NPAs and asset quality of loans are the biggest challenges for banks.

The minister refused to detail the NPA level for the first three quarters of the fiscal, saying the numbers could be misleading. NPA levels should be looked only at the end of the year. Bad loans had increased due to the stress in large corporate accounts, the small-scale industry, and small and medium enterprises. (PSU banks) will focus on asset quality, credit appraisal, recovery. During the first three quarters of the current financial year, PSU banks had recovered 189.3bn rupees worth bad loans, and have further upgraded accounts worth 219.8bn rupees. The government is monitoring the top 30 NPA accounts in the banking system.

FKCCI News Tracker 25.03.2014


    &nbstp; Gas price hike put on hold: Poll panel writes to Petroleum Secretary: Producers will have to wait for new govt.
      Stable govt hope pushes Sensex to life time high
      Banking stocks rally on hopes of economic revival
      FII inflows this year 4th highest ever: This financial year is among the top five in terms of buying activity by foreign institutional investors (FIIs). This year, FIIs have been net buyers by Rs 73,235 crore, the fourth highest.
      Govt hopes tax collections will meet target: With only nine days left for the financial year to end, the government is yet to collect Rs 45,800 crore to meet its direct tax target of Rs 6.38 lakh crore in 2014-15. The Central Board of Direct taxes is however confident of collecting all tax dues in the remaining nine days and meeting the target.

      Sugar export subsidies will not cross $ 80 million: India’s export subsidies on sugar announced last month will not exceed $ 80 million and is essentially designed to encourage diversification away from white sugar to raw sugar, the country has clarified at WTO.
      Slack buying grinds turmeric
      Global coffee deficit seen at 612,000 bags
      Cardamom gains aroma on dwindling inflow , higher demand

Sensex   22,055.48 ▲(Up)  ▐ ▐    300.16
Nifty       6,583.50  ▲(Up)  ▐      88.60

Forex Rate – Dollar Rupee Exchange Rate
Open      60.79
Closing   60.93 Gold (10g) 29,620.00

      A standoff between the management and employees of Toyota Kirloskar Motor, the Indian arm of Japan’s Toyota Motor Corp, continued on Monday even though the lockout at the company’s two manufacturing units was lifted. This was because the workers refused to sign an undertaking before joining duty.

FKCCI News Tracker 17.03.2014



  •       US  informs  India to submit data on food security scheme to WTO
  •       India Inc invests $ 29.3 billion abroad so far in FY 14
  •       WPI inflation cools to 9 month low in Feb as food, fuel prices fall
  •       Forex reserves up $1.08 billion
  •       Wholesale inflation dips to 4.68 percent on lower food, fuel prices
  •       Retail inflation still high : Rangarajan
  •       Economy likely to grow at 4.7 percent : Fitch ratings
  •       Govt to buy back securities worth Rs 15,000 cr
  •       Captive power units facing severe coal shortage
  •       Feb wholesale inflation at 9-month low of 4.6 percent
  •       Growth will be 5.5 percent in Q4.


  •       Imported veg oils dip on global cues
  •       Pulses plummet as arrivals rise
  •       Wheat under pressure


  •       Karnataka woos aviation firms to aerospace park
  •       UKIBC opens startup zone in Bangalore:  the UK India business council is opening its first startup zone at its UK India business Centre in Bangalore in July.

Top Most Business Friendly States of India

BANGALORE: A study by Deloitte-commissioned by the planning commission-gives insight into the business friendliness of Indian states and throws up some interesting results. The state that tops the list is Haryana, followed by Madhya Pradesh and Gujarat and the bottom most performers’ include-Assam, Goa, Jharkhand and West Bengal.  Maharashtra, which is generally considered a business friendly state, features among poorest performers. The north eastern state Nagaland secures a place among the top 10 business friendly states. Tamil Nadu is way ahead of Karnataka in the list, reports Financial Express.

Deloitte ranked the states based on ‘Business Regulatory Impact Analysis’ and taking into account their business regulatory environment, taxation, speed of environmental clearance, land and building approval and availability of skilled man power among other things. Now, let’s take a look at the business climate of the most business friendly states of India.

Haryana: Haryana is the state with second highest per capita income in the country.It’s is also one of the largest recipient of per capita investment in India. According to Haryana government sources, the state produces, “two third of passenger cars, fifty percent of tractors, sixty percent of motor cycles and fifty percent of refrigerators manufactured in the country” and “About twenty-five per cent of India’s Total production of Sanitary-ware is from Haryana. One out of every four bicycles in the Country is manufactured here.” Haryana’s geographic location also gives it an advantageous position. The state surrounds Delhi from three sides and a large region of Haryana is included in the national capital region.  Faridabad and Gurgaon are becoming the preferred locations for the IT and ITES industries. Some of the industries like Maruti Udyog Limited, Hero Honda, Modi Alcatel, Perfitti India, DCM, Benetton, TDT Copper, Asahi India Safety Glass, Escorts, Sony India, VXL India, whirlpool Industries and Wipro have projects here. Thus Haryana is the top most business friendly state of India.


Download Attatchments Download

HIA is bringing out HOSUR BUSINESS DIRECTORY 2014-2015, covering data base of all Industries, Trade, Commerce, Services, Educational Institutions, Entertainment and hospitality Industry in & around Hosur and neighbouring districts in Tamil Nadu and Karnataka.  These being a well targeted discerning audience, it will be an effective sourcing tool for the development of your special area of interest through the media of Print & & digital media

I take this opportunity to appeal to you to kindly advertise in this important publication which would boost your brand equity and support the Association in its endeavor to enhance our members image and increase the Association revenue.  I am sure you will take advantage of this offer and advertise in our Directory.

For further clarification if any you may contact:
Mr. Ramesh. M – 0900046446, Tel.: 080 – 65599001, 2, 3, 4 & 5




      Exports see first fall in 8 months; rupee’s strength mars outlook. Trade deficit narrows despite exports declining 3.67% in February as imports drop 17.09 percent.

*      Govt plans billion dollar fund to seed desi tech firms- If the Government has its way, the next Apple or Ericsson could be from India. In a bid to encourage local technology in the manufacture of telecom equipment and devices, the National Manufacturing competitiveness Council ( NMCC) has floated a plan to set up a venture capital fund with a billion-dollar war chest.

*      Despite drop in exports, trade deficit narrows in February: India’s exports contracted 3.67 percent in February following seven months of sluggish growth. Achieving the export target of $ 325 billion for the current fiscal now appears almost beyond reach.

*      Indirect tax refunds at Rs 43,409 crore. The Revenue Department refunded Rs 43,409 crore in customs, excise duty and service tax refunds in April-February this fiscal, which was 27.4 percent higher that that in the same period last year.

*      India has said that it will drive the food security agenda at the World Trade Organisation and ensure that a permanent solution is found to the problem of providing farm subsidies for public stock holding so that they do not attract penalties.

*      OECD sees moderate growth: The recovery in developed economies is on track although slowing activity in big emerging markets means global growth will be only moderate at best in the near term.

*      RBI may have to buy dollar to keep rupee on leash



  •       Unseasonal rain damages wheat crop
  •       Outlook turns bullish for channa dal.
  •       Hybrid turmeric gains on lower arrivals
  •       Bearish cues drag imported oils
  •       Wheat may rule steady


Sensex   21,826.42 ▼(down)  ▐ ▐    108.41

Nifty       6511.90 ▼(down)  ▐       25.35


Forex Rate – Dollar Rupee Exchange Rate

Open      60.95

Closing   61.84 Gold (10g) 30,700




      Banks link Aadhaar numbers to account through ATM: Over 60 banks have enabled linking of Aadhaar numbers with coustomer’s bank accounts through ATM Kiosks.


When emerging markets cry foul

 Blaming monetary policies of the developed world for crises at home is not fair

From Istanbul to Brasilia to Mumbai comes a crescendo of complaints about dollar imperialism. Heads of state and central bank governors allege that the policies of central banks in Industrial countries are weakening havoc in emerging-market economies. This allegation is mostly unfair. Emerging markets aren’t hapless and undeserved victims; for the most part they are simply reaping what they sowed.


 When the Fed relaxed its policy via quantitative easing, emerging-market countries, especially Brazil, complained about the wall of money flooding their markets and putting upward pressure on their currencies. Now, with the Fed slowly unwinding the programme, the complain from emerging economies is that capital is fleeing.


Then there is the complaint about the asymmetry of cooperation. Emerging markets had supported global growth through huge stimulus in the aftermath of the Lehman Brothers Holdings crisis.


However, as emerging markets experience volatility now action or concern from Industrial countries isn’t forthcoming. The problem with this nonreciprocal argument is that the stimulus enacted in 2008 and 2009 was entirely self-interested.


The Fed many not be internalizing the objectives and constraints of other countries today, but neither did emerging markets act on the behalf of the Fed then.


 A matter of interests

Over the last five years in India, every episode of rupee pressure has provoked a relaxation of regulations on foreign inflows, which has rendered the economy vulnerable to the next rupee shock, which, in turn, provokes the next liberalization and so on. In Turkey, policy-makers spun a tale of invulnerability to shocks and contagion even as the economy’s growth was driven by a flood of short-term capital inflows. China provides an instructive contrast, China has chosen to insulate itself from foreign capital and has correspondingly been less affected by the vagaries of Fed actions and the fickleness of foreign finance. Chinese policies aren’t blameless, but their economic insulation has afforded them the luxury of being the recipient of complaints rather than the distributor.


 Inviting Volatility

Emerging market countries proceeded to follow policies that were bound to create volatility. The fragile five ran up large current account deficits; some had high inflation and fiscal deficits.


These countries lapped up foreign funds instead of tightening lending regulations and imposing prudential controls. Political turmoil has compounded the problem.


The world economy could do better with more international coordination. But the fact is that the emerging economies troubles are domestically generated and not the fault of foreigners. It seems a classic case of blaming outsiders for choices and actions that have been predominantly domestic.


Emerging markets need to wake up to what many should have long known. Financial globalization is a decidedly mixed blessing. It is a source of volatility, and it exposes a country to the actions of others, especially the US, a nation with no obligation to charity.


Sudarshan Tirunarayan

Secretary General

Feedback: sg@fkcci.in


Keep your fingers crossed


The Article written by Mr. D. Muralidhar, President, HIA on the topic "Keep your fingers crossed - Interesting times ahead" wass published in the Bangalore regional newspaper ‘PRAJAVANI’ on 12.03.2014.

Download Attatchments Download



TNERC's Draft Notification No. TNERC/SC -7


Download Attatchments Download Download Download Download

The proposed (draft) Amendments to Supply code & Distribution code initiated by TNERC received from Tamil Nadu Electricity Consumers Association (TECA), Coimbatore.

The comments of TECA on the proposed amendments.

There are other issues in the proposed amendments which deserve your attention. Kindly go through the proposal and send your views to us on or before 17/03/2014,


Factory License Renewal for the year 2014
We are informed by DCIF, Hosur that Factory License Renewal for the year 2014 should be submitted to "The Joint Director of Industrial Safety and Health, on or before 31st October 2013 (Amount received after due day will attract the penalty). Application (Form-2) should be signed by Occupier (Director) and Manager. License fee should be remitted by DD in favour of "Joint Director of Industrial Safety and Health", payable at "Hosur".

Those who submitted License renewal application for the year 2012 on time (before 31.10.2011) and remitted balance amount for 2012 (subsequently), can adjust the balance amount paid for 2014 renewal. So, the balance amount paid for 2012 can be deducted from 2014 renewal amount and balance alone to be paid.

For Further clarification in this point can be obtained from The Joint Director of Industrial Safety and Health, Hosur over phone. 04344-274347.



FKCCI - News Tracker September 28, 2013
  • Right to reject: Parties will be scared to field wrong candidates.- the Supreme Court’s judgment directing for incorporating none of the above (NOTA) options in the EVMs for the voters keen to cast negative votes could prove to be major stepping stone for bringing electoral reforms in the form of selection of “sound” candidates for the political parties
  • Rs 59-60 per dollar right level for rupee: FM
  • Low interest rates have little merit: Rajan RBI  is questioning whether current ultra-low interest rates are the right way to return to growth after the financial crisis It was time to ask if there were better tools than the rock bottom rates used by major central banks in the rich world, including the US Federal Reserve, Bank of England, Bank of Japan and European Central Bank. Lower interest rates have unintended consequences.
  • Reconsider bank licences for corporates: Finance panel to Govt- Points to poor performance of 12 banks set up after RBI guidelines of 1993 & 2001
  • Priority tag sought for export credit- the finance Ministry wants the Reserve Bank of India to include bank credit to the exporters under the priority sector lending category. Such a move could boost export income and reduce the country’s current account deficit. Typically priority sector loans are small value loans for the weaker sections.
  • Now open: Overseas capital for unlisted firms- Lifeline will help companies repay foreign debt, fund overseas acquisitions. The government has lifted the curbs that prevented unlisted Indian companies from raising funds abroad.
  • Science & Tech Ministry for curbs on FDI in Pharma
  • Rs 1-1.50 monthly hike in diesel price proposed by GOI
  • Forex reserves at $277.3 billion- India’s forex reserves rose by $2billion to reach $277.3 billion data released by the Reserve Bank of India showed. Foreign currency assets rose by $1.97 billion to reach $249.22 billion
  • House panel opposes bank licences for companies- A parliamentary panel on Fridayopposed the new bank licences  to corporate houses and voiced concerns over the discretionary power vested with RBI applying ‘fit and proper’ criteria for deciding on applications.
  •       Karnataka Industrial policy by December- The new industrial policy of Karnataka for the five year period of April 2014 to March 2019 will be announced by December 2013, according to the additional chief secretary, commerce and industries department government of Karnataka.
  •       States can decide on land acquisition.- The Centre today said it is up to the States to decide on how much multi-crop irrigated land they could acquire for urban and industrial infrastructure, but noted it should be the last resort. States should first give priority to barren land. Acquisition of multi-crop irrigated land will be the last resort’’ demonstrable last resort after exhausting all other options.
  •   Register the vehicle in any RTO.- The transport department will start “anywhere vehicle registration facility” across all Regional Transport Offices (RTOs) here from the first week of October. People can now walk into any RTO and register their vehicle, regardless of the location of their residence.
  •  Parking fee move put on hold for 3 months- Bruhat Bangalore Mahanagara Palike has put on hold the move to introduce exorbitant parking fee for three months.
Market Trends
      Sensex   19,727.27   ▼ (down)  ▐▐ 166.58 points
      Nifty         5833.20    ▼ (down)  ▐     49.05 points  
Forex Rate  USD
 Open                     62.50
Closing       62.08


News Tracker from FKCCI


China looking to buy more Indian goods – Continues to order raw material, ignores manufactured goods.
     Basel III : Big banks cut capital reserves gap – Capital shortfall has narrowed by 42 per cent at the end of 2012. The Basel group defines large global banks as those with more than Euro 3 billion in Tier 1 capital and which are internationally active. The US, UK, Sweden and Switzerland are among nations that have promised to set tougher rules for their banks than required by Basel.
     More may get a ticket to ride on Bank street – Reserve Bank could ease initial equity capital requirement of Rs.500 crore for new bank licences.
     Fuel prices will be cut, but can’t say when, says Moily.
     Reserve Bank bans 0% interest schemes. Merchant outlets not to levy fees on debit card Fair practice on consumer protection.
     High inflation impacting India’s growth. Uncomfortably high inflation coupled with supply restraints is impacting India’s growth.
     India’s GDP has halved from a peak at 9.2 per cent in 2011 to 4.4 per cent in second quarter of 2013. Economy is bumping up again supply constraints.
     FDI – Walmart bargains for more mandatory 30 per cent sourcing from the domestic small sector which remains in policy. Clarification sought further.
     RBI tells banks to review export credit limits regularly to help insulate exporters from rupee fluctuations. Borrower’s requirement needs to be ascertained.
     Rupees raises to 62.43 on dollar sales, half year closing and selling of dollars may help rupee gain.
     Need to rethink Banking Structure: FICCI. Country needs a big and specialized banking system to support growth of Industry 75 per cent of Banks system is in hands of Government making lending restricted.
     Small retailers will never die in India. The personal touch and business model of small Enterprises hard to beat. Small retailer make cash profit every evening, bit retail profitability is a 10 year wait !!
FKCCI viewpoint on Repo rate:
The main job of RBI is to tackle inflation owing to deterioration of value of Rupee. Lower interest rate would hopefully have increased economic activity and drive the growth rate upwards. The bane of the Indian political system has been the emphasis on politics at the cost of economics.
The future however does not appear to be bright. It depends on ability and willingness of politician to put the National interest over and above Sectarian requirements.
 Market Trends
     Sensex   19,856.24 ▼ (down) ▐▐  63.97 points
     Nifty         5,873.85 ▼ (down) ▐    18.60 points  
 Forex Rate
 Open          62.77
Closing        62.44

Copyright © 2013 Hosur Industries Association
thethirdeyefilmsPowered By Thethirdeyefilms clickhere