Business, Economy & Banking Current Affairs - 2019
Business, Economy and Banking in Current Affairs 2019 with latest news and current affairs in Agriculture, Industry, Banking, Capital Markets, Import and Export and Government schemes in commercial sector.
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The existing clause in the FDI policy states that a company owned and controlled by resident Indian citizens has the power to appoint majority of its directors in that company. Now the Cabinet Committee on Economic Affairs (CCEA) has decided to consider new definition for “control” in FDI policy.
Aim of the new Definition of “control” in FDI policy:
- To provide better mechanism for calculating direct and indirect investment in a company.
- The new definition will include the right to appoint majority of directors.
- It will provide control in the management by virtue of shareholding or management right or shareholder agreement or voting agreement.
The CCEA may also look into revising norms related to sourcing from small industries and investment in back-end by multi-brand retailers.
There will be no change in 30% sourcing limit from small industries and small industries will be defined as those having a total investment in plant and machinery not exceeding $2 million. At present this limit stands at $1 million. The small industry status will be valid for only 3 years after the breach of the $2-million investment limit.
The Reserve Bank of India (RBI) kept the indicative policy (repo) rate unchanged at 7. 25 % and the Cash Reserve Ratio (CRR) at 4% in order to suppress the instability in the foreign exchange market.
The RBI had brought down the repo rate from a peak of 8.50% by 125 basis points in 2012-13 and CRR from a high of 6 % in the last one-and-a-half years by 200 basis points.
RBI’s revised Growth Projection:
The RBI revised its growth projection for the current financial year from 5.7 % to 5.5 %. The depressed global conditions were undermining export performance, even as the heightened instability in capital flows had raised external funding risks. In advanced economies, activity has weakened. Emerging and developing economies are slowing, and are also experiencing sell-offs in their financial markets.