Aggressive Campaign required for Skilling Youth: Director, (UGC-Net), CBSE

Director, (UGC-NET), CBSE, Mr. M V V Prasada Rao on Tuesday admitted that much needed to be done to impart skills for wider and comprehensive coverage of Indian populace, particularly at formative years which is the sole reason for India to lag behind on technological front though efforts have now begun on this front.

Addressing a Conference on India’s Yough Dividend-The Future of Digital Skills under aegis of PHD Chamber of Commerce and Industry here today in partnership with ICDL, Mr. Rao, therefore, suggested that digital India would succeed with it being integrated sufficiently with tools through which information dissemination becomes conclusive with skills par excellence at the arms of owners.

According to him, the prevailing operations and applications at mobiles, laptops and computers and getting acquainted with them is not the indication of absorptions of available technology with those that claim skills at their possession. 

“It is beyond these tools and appliances and when we integrate ourselves and connect adequately with emerging devices, we can only then claim to have established liaison with these for successful digitalization which is the requirement of the day”, said Mr. Rao.

In his special address, CEO, ICDL, Mr. Damien O’Sullivan said that his organization would shortly establish its operations in India and provide certification though which Indian youths, seeking to be employed and aspire to be entrepreneur would fulfill all its cherished desire as this certificate would be the indicator of the qualifications and skills that are required for suitable employment and entrepreneurship.

On the occasion ICDL Module on Digital Marketing was also released.

Among others who spoke on the occasion consisted of Co-Chairman, Skill Development Committee, PHD Chamber, Mr. Tahsin Zahid along with Sr. Secretary, Dr. Jatinder Singh.

India-UK trade agreement to spur trade at USD 20 billion by 2020: PHD Chamber

Prospective bilateral agreement and growth avenues would push trade between India and UK to USD 20 billion by 2020 from the current level of at around USD 14.3 billion in 2015-16, said Dr. Mahesh Gupta, President, PHD Chamber of Commerce and Industry in a press statement issued here today.

India and UK are bound by invigorating business and investment opportunities and the close economic linkages based on the fundamentals of understanding and support, said dr. Gupta.

Among various products, India’s thrust products in the UK includes knitted and non-knitted articles of apparels (20.33%); mechanical appliances and machinery (7.64%); pearls and precious stones (5.88%); Vehicles and parts thereof (5.53%); footwear and the like (5.44%); pharmaceutical products (5.15%); electrical equipment (4.49%); articles of iron and steel (3.45%) of the total exports to UK.

UK's thrust products in India includes pearls and precious stones (29.42%); mechanical appliances and machinery (13%); iron and steel (7.86%); electrical equipment (6.49%); optical, photographic, cinematographic and similar instruments (5%); aluminum and articles thereof (4.12%); beverages, spirits and vinegar (3.80%) of the total exports to India.

Dr. Mahesh Gupta also added that Indian exports into UK are mainly focused on Consumer Goods, viz. nearly 65% of the total exports. On the other hand, nearly 43.5% of the total imports from UK are focused on Intermediate goods.

Although the trend in India’s exports to UK has remained in favour of consumer goods over the years, India’s import from UK underwent dramatic shift from raw materials, viz. 36.5% of the overall imports from UK during 2007, to intermediate goods, viz. 43.5% presently.

Dr. Mahesh Gupta said that though India’s penetration in the UK’s market has remained consistent, UK’s penetration rate revealed signs of substantial revival in the recent past. Also, Indian products hold significant footprint in the UK’s market based on the intensity index of India in UK.

India’s export pattern has become more and more aligned with the import pattern of UK over time. Both nations witnessed a favorable complementarity scenario, which exhibits substantial potential trade gains for both the nations, further added Dr. Mahesh Gupta.

Also, the basket of exportable products from India remained opulently diversified compared to the importable basket from UK over time, thereby rendering Indian exporters relatively less susceptible to volatility in a turbulent trade scenario.

He also indicated about the lower than expected intra-industry trade figures between the two nations and to push trade further, both nations must engage in higher intra-industry trade in the medium to long run. Also, it is essential to reduce the exorbitant trade cost between India and UK for agricultural products to provide that much needed impetus to the agrarian exports.

Dr. Mahesh Gupta said that with further liberalization of FDI policy in different segments and the advent of GST next year, FDI from UK is expected to touch a new growth trajectory. Undoubtedly, collaboration of India and UK in the realm of investment and business can truly transform both the nation’s entrepreneurial ecosystem.

In the past 16 years, UK has invested nearly USD 22 billion in various forms of Foreign Direct Investment in India. UK is, presently, ranked 3rd biggest investor in India, and going by the trend, holds the potential to attain the top position, said Dr. Mahesh Gupta.

Dr. Mahesh Gupta further elaborated that majority of India’s investment in UK were in the Manufacturing sector, viz. around USD 766.32 million; followed by Financial, Insurance and Business services (USD 298.27 million); Transport, Storage and communication services (USD 81.77 million) among other significant investments in UK.

Going ahead, it is essential for both the parts to become proactive and become prompt in finalizing the bilateral agreement to rejuvenate the falling trend in trade. Both nations should continuously meet and engage in discussions related to mitigating bilateral trade issues, defence ties, renewable energy, skill development and other vital areas.

Going ahead, growth prospects for trade and development between two countries are very promising and sustainable, not only for the coming years but for the coming decades, said Dr. Mahesh Gupta.

PHD Chamber urges the Government to rationalise 28% GST on white goods

While welcoming the GST rate structure of 5%, 12%, 18% and 28% announced by the Union Finance Minister, the President, PHD Chamber of Commerce and Industry, Dr. Mahesh Gupta said 28 per cent tax on white goods is not in sync with the present tax reforms.

Dr. Mahesh Gupta said that high tax rate will have a cascading impact on the consumer goods segment and hit to consumer demand majorly in the rural segments of the economy as demand is primarily emerging for the rural sectors of the economy.

I strongly believe that the impact of GST would be a major game changer for the economy for accelerating the economic growth and generating more and more employment opportunities, said Dr. Mahesh Gupta.

The lowest tax rate of 5 percent is suggested to be levied on items of mass consumption such as spices, mustard oil etc. which are used particularly by common people is a welcome step. The standard tax rate of 12 and 18 percent would accommodate most of the goods and services including processed foods, soaps, oil, smart phones etc. is also good.

We appreciate the pre emptive measures to keep inflation under check as essential items including food, which presently constitute roughly half of the consumer inflation basket, will be taxed at zero rate, said Dr. Gupta.

Undoubtedly, the interest of common man has been duly taken care of which is evident from finalisation of 5% tax rate on common use items, as against 6% proposed earlier. Further, zero rating of necessities is also a welcome move in the beneficial interest of the common man, said Dr. Mahesh Gupta

The fourth slab of 28 percent will imply to white goods and cars while an additional cess will be collected along with the higher tax rate of 28 percent on Luxury cars, which the industry says is counterproductive to the ongoing tax reforms in the country as it will have impact on demand and make in India programme and consequently on manufacturing and employment, said Dr. Gupta.

The Chamber urges the government to look into GST rate for white goods and to reduce the same to maintain a rational rate in line with the initial aims of GST implementation. The chamber awaits the rates for gold and precious metals which will be announced today during the GST council meet today, he said.

Imports from China seen decelerating by 20% in the coming months: PHD Chamber

Demand for Chinese products in India is decelerating month after month and imports from the country would see a major hit in the coming months finds a survey conducted by PHD Research Bureau of PHD Chamber of Commerce and Industry.

Survey has been conducted in the various consumer and industry segments across the country and around 2000 responses were analysed from the consumption segment and more than 100 industry stakeholders participated in the survey study.

Demand for industrial products such as raw materials etc is declining by 10-15% and demand for consumption goods is less by 20-25% said the survey study.

Dr. Mahesh Gupta, President, PHD Chamber of Commerce and Industry said that Indian production capabilities are incasing and becoming competitive as compared with China because of many reasons such as improvement in the ease of doing business. Also, there is a significant shift in the consumption pattern of Indian consumers from the Chinese  products to domestic products.

India has been dramatically improving in all the global frontiers with its accomplishments in the Global Competiveness Index by moving 16 spots up to 39th place from 55th place earlier, Ease of Doing Business Ranking (130th) and improvements in goods market efficiency, business sophistication, and innovation which reflects there is a rising accentuation in global competitiveness of India, said Dr. Mahesh Gupta

India’s imports from China increased more than 500% from US$10bn to US$61bn during the last ten years from 2005 to 2015. China’s share in India’s imports increased from 7% in 2005 to around 16% in 2015 said the analysis by PHD Research Bureau.

However, the trend has been reversed and growth of imports from China decelerated by 8% in the first six months of the current financial year 2016-17.

The growth of imports from China has been decelerating and is in the negative trajectory in the recent months; no enthusiasm is seen in the upcoming months too.

Despite the festive season imports from China decelerated (-) 14.5% in the month of September 2016  whereas imports from World decelerated (-) 2.5%.

Majority of the decline in imports has been witnessed in products such as ships and boats, tobacco products, aquatic products, pearls and precious stones, musical instruments and parts thereof, mineral fuels and oils, lead and articles thereof, cocoa products, and wool and products thereof, further revealed the analysis.

Analysis highlighted the pivotal role of investments for the long term sustainable goals.

FDI inflows from China to India between April 2000 and March 2015 stood at USD 288.512 billion wherein China’s share was roughly 0.47% which rightfully indicates that China is not a significant and substantial investor in India as compared to Singapore, Mauritius and Switzerland.

As the Make in India programme is getting pace month after month, we can anticipate a significant improvement in the balance of trade with China, said Dr. Mahesh Gupta.

Improvement in Ease of Doing Business Ranking Inspiring: PHD Chamber

While appreciating the importance in Ease of Doing Business to the rank of 130 by the World Bank, Dr. Mahesh Gupta, President, PHD Chamber of Commerce and Industry said that lot of things at the ground level are becoming visible and the business community is enthusiastic to enhance its growth trajectory going forward.

India is now ranked at 130th among 190 economies by the World Bank.

Implementation of the Insolvency and Bankruptcy code would improve the ranking further.  It is also expected that the goods and services tax will help make significant improvement in India’s ranking next year, he said.

Going ahead, President, PHD Chamber, Dr. Mahesh Gupta suggested that the Government must focus on the reforms in labour laws and decriminalization of businesses as stringent labour laws are a major roadblock to enhance production possibility frontiers and employment generation in the economy.  

GST: November 8 is the date finalised for migration of eight million assesses under Goods and Services Tax Network

The Goods and Services Tax Network (GSTN), which is expected to provide common and shared IT infrastructure for GST implementation, will transfer on-board to its platform the details of about 80 lakh existing assessees of excise, value-added tax, customs and service tax, according to Mr.. Prakash Kumar, Chief Executive Officer, GST Network said. He was speaking at the second series of Interactve Session on GST at the PHD Chamber of Commerce & Industry, here.

“On this date (November 8), we are releasing enrolments. This means getting these existing eight million assessees on to our system. This move will help them do business without any hassle from April 1 next year, which is the likely GST implementation date,” said Mr. Prakash Kumar told the Members of PHDCCI.

Mr. Prakash Kumar noted that with the migration of assessee details onto the GSTN platform, the existing assessees will have clean data. This will sort out inconsistencies and get ready for smooth transition to the implementation date of April 1, he said.

GSTN, a not-for-profit entity incorporated in March 2013, has been set up primarily to provide IT infrastructure and services to the Central and State governments, taxpayers and other stakeholders for implementation of GST. It has also been allowed to partner with other agencies for creating an efficient and user-friendly GST eco-system.

Mr. Prakash Kumar also said that GSTN will in the coming days obtain imports related data (Bill of Entry) from the Central Board of Excise Customs (CBEC). This will be useful for levy of iGST (GST levy on imports).

Other Officers from GSTN who were present on the occasion included  Mr. Nitin Mishra, EVP, Technology, GSTN; Mr. Praveen Kumar, AVP, GSTN; Mr. K P Verma, VP(Services), GSTN & Mr. Shashi Bhushan Singh, VP(Services), GSTN. 

Mr. Gopal S Jiwarajka, Sr. Vice President, PHD Chamber; Mr. Anil Khaitan Vice President, PHD Chamber; Mr. Bimal Jain, Chairman Indirect Taxes, PHD Chamber & Mr. N K Gupta, Co-Chairman, Indirect Taxes Committee, PHD Chamber also presented their views on the subject.

Mr. Nitin Mishra, EVP, Technology, GSTN, presented how GSTN portal will provide for dashboard registration. He discussed the importance of uploading B2B invoice, Amended B2B invoice and B2B invoice for the supplier and receiver. Sh. Mishra elaborated the details of monthly return, turnover details, outward and inward supplies under GSTR-3.

Mr. Bimal Jain, Chairman, Indirect Tax Committee, PHDCCI, shared that GST will facilitate Make in India by making one India. He felt that certain issues need ironing out under GST including whether seamless flow of credit will be available under GST; how the matching of Input Tax Credit will be taken care under GST; how the registrations will be made under GST for service providers having multiple offices located across States within the country; how returns will be simplified under GST. He also emphasised preparedness required for industry to gear up for GST. He felt that the govt. is making all positive efforts for GST and it is expected that GST will turn out to be Good & Simple Tax for the benefit of trade & industry.

Mr. Gopal S Jiwarajka felt that timely GST preparedness is a key to smooth transition for industry. Mr. Anil Khaitan shared that IT processes for every company would have to be customised as per the requirements under GSTN.

PHD Chamber organized an interactive session with GSTN today with the objective of providing an interface between industry and the GSTN

PHD Chamber organized an interactive session with GSTN today with the objective of providing an interface between industry and the GSTN to help the industry align its IT Systems under the GST regime of Indirect Taxation.

Officers from GSTN who were present on the occasion included Shri Prakash Kumar, CEO,GSTN; Shri Nitin Mishra, EVP, Technology, GSTN; Shri Praveen Kumar, AVP, GSTN; Shri K P Verma, VP(Services), GSTN & Shri Shashi Bhushan Singh, VP(Services), GSTN. Shri K R Srivats Finance Editor, Hindu Business Line was also present at the Conference. Shri Gopal S Jiwarajka, Sr. Vice President, PHD Chamber; Shri Anil Khaitan Vice President, PHD Chamber; Shri Bimal Jain, Chairman Indirect Taxes, PHD Chamber & Shri N K Gupta, Co-Chairman, Indirect Taxes Committee, PHD Chamber also presented their views on the subject.

Shri Prakash Kumar opined that GSTN is the IT backbone of GST. He discussed the GST IT strategy adopted by the government. He discussed the structure of registration process under GST. He shared that all the taxpayers who have valid PAN will migrate to GST. He discussed about filing of various return GSTR- 1, GSTR- 2and GSTR- 3, etc under GST law.

Shri Nitin Mishra presented how GSTN portal will provide for dashboard registration. He discussed the importance of uploading B2B invoice, Amended B2B invoice and B2B invoice for the supplier and receiver. Mr. Mishra elaborated the details of monthly return, turnover details, outward and inward supplies under GSTR-3.

Mr. Bimal Jain shared that GST will facilitate Make in India by making one India. He felt that certain issues need ironing out under GST including whether seamless flow of credit will be available under GST; how the matching of Input Tax Credit will be taken care under GST; how the registrations will be made under GST for service providers having multiple offices located across States within the country; how returns will be simplified under GST. He also emphasised preparedness required for industry to gear up for GST. He felt that the govt. is making all positive efforts for GST and it is expected that GST will turn out to be Good & Simple Tax for the benefit of trade & industry.

Shri Gopal S Jiwarajka feLt that timely GST preparedness is a key to smooth transition for industry. Shri Anil Khaitan shared that IT processes for every company would have to be customised as per the requirements under GSTN. Shri K R Srivats observed that GST will help industries in reducing cascading effects of taxes and will be beneficial for the industry.