News in Numbers, July 1, 2016: World Bank’s loan to India for solar, Flipkart vs Amazon…

$1 billion

What is it? The amount the World Bank would lend to India for its solar energy programme.

Why is it important? This is the biggest ever loan given by the bank for a solar programme to any country and would help India achieve its ambitious target of installing 100 GW (gigawatts) by 2022. The solar power generation had crossed 19,000 MW (megawatts) in 2015-16 though the Minister for Power, Coal, New and Renewable Energy is looking to achieve this target by the end of 2017 itself.

Tell me more: India wants non-fossil fuel (wind, water, solar and nuclear) to account for 40% of the total installed power capacity by 2030 from 30% currently. The World Bank has lent $4.8 billion to India between 2015 and 2016, making it its biggest client.

Rs 2,28,986 crore

What is it? India’s fiscal deficit (excess of expenditure over receipts) for April and May of 2016.

Why is it important? It’s 42.9% of the budget target for this fiscal compared to 37.5% for the same period last year (despite a slowdown in government’s capital expenditure.) This may make it challenging for the Finance Minister to restrict fiscal deficit to Rs 5.33 lakh crore in 2016-17, especially with the implementation of the Seventh Pay Commission that would cost the exchequer over Rs 1 lakh crore.

Tell me more: The government’s capital expenditure was down by nearly 12% to Rs 33,231 crore in the first two months of 2016-17 from Rs 37,743 crore in the same period last year. The revenue expenditure, which would go up further due to the Seventh Pay Commission payout, increased by 17.6% to Rs 2.64 lakh in April and May from a year ago.

 

Rs 8,392 crore

What is it? The amount held by Indians in Swiss banks at the end of 2015, a third lower than the previous year.

Why is it important? This is the lowest amount of funds held by Indians in the Swiss Banking system since the country started making its data public in 1997 and marks the second straight year of decline. This seems to be the impact of clampdown of illicit wealth by countries including India, which is likely to lead to Swiss banks become more transparent than ever. India has sought faster responses to its pending information requests from the Alpine nation and an automatic financial information exchange would begin in 2018.

Tell me more: The funds held by Indians in Swiss banks was at a record high of Rs 23,000 crore at the end of 2006.

 

91

What is it? E-commerce firm Flipkart’s score in the quarter ended March based on metrics including trust in a brand, product assortment and prices, overall buying experience in terms of ease of using its platform and the ease of product cancellations and returns.

Why is it important? Flipkart is still slightly ahead of Amazon India, which entered the country in June 2013 and had a score of 87, though Snapdeal was a distant third at 60. This is yet another sign that Amazon is ahead of Snapdeal and breathing on the neck of Flipkart. With a recent investment announcement of $3 billion in the country, Amazon India has an advantage over both Flipkart and Snapdeal, which has to depend on external investors. A US mutual fund managed by Vanguard Investment marked down the value of its shares in Flipkart by 25%, the sixth such markdown in recent times.

Tell me more: In terms of ‘Most trusted brand’ and ‘Best value proposition’, Flipkart scored higher than Amazon India while the latter beat the former in terms of ‘Great experience’. The analysis is by RedSeer Management Consulting for Mint.

 

683

What is it? The number of invitees to join the Academy of Motion Picture Arts and Sciences, of which 46% are women and 41% are minorities.

Why is it important? It will make the voters more diverse. The Academy had recently promised to double it female and minority membership by 2020. The Oscars came in for heavy criticism for having no nominees from minority actors for the second year in a row. However, it has a long way to go because even if all the invitees join, the share of women and minorities would only marginally increase (25% to 27% and 8% to 11% respectively).

Tell me more: If all those who invited were to join, it would increase the academy’s total voters to 6,945, a record in the last few years.

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News in Numbers, June 28, 2016: E-commerce in India, committee to maintain inflation targets…

$10.2 billion

What is it? The total gross merchandise value (GMV) of the top e-commerce firms in India at the end of May 2016. GMV is the total value of goods sold excluding discounts.

Why is it important? This is just a 13.3% growth from the GMV the top e-commerce firms recorded last May – and that primarily came from Amazon India, which grew from $1 billion to $2.7 billion in a year. Flipkart’s GMV has remained almost constant at $4 billion for the last one year and Snapdeal’s dropped 50% to $1.2 billion as of June, according to numbers collected by the Economic Times.

Tell me more: Due to the festive season and the discounts e-tailers offered, the total GMV clocked was $10.5 billion in December 2015. Of the total GMV of $10.2 billion recorded in May 2016, others such as ShopClues and Paytm accounted for 22.54% ($2.3 billion).

 

14

What is it? The number of Andhra Pradesh state government departments that have shifted from Hyderabad to Vijayawada, Guntur and Mangalagiri on Monday.

Why is it important? Signals Andhra Pradesh Chief Minister Chandrababu Naidu’s anxiety to move out of Hyderabad (which went to Telangana following the bifurcation two years back) as early as possible. Technically, AP government can function out of Hyderabad for the next eight years, and Amaravati, the new capital is not ready yet.

Tell me more: Government departments would relocate between June 29 and July 21 to the new capital region of Amaravati. However, the Andhra Pradesh government would have to make do with a scattered set-up until the administrative city in the core capital area is developed. The state government has pooled 33,000 acres of land for the development of Amaravati.

 

6

What is it? The number of members on the panel that would be responsible for maintaining inflation targets under the new monetary policy framework.

Why is it important? The RBI has initiated the process to set this panel up, marking it as one of the major changes monetary policy saw under Raghuram Rajan.

Tell me more: The panel will have three members from RBI and three recommended by the government. The panel’s main objective is to make sure the inflation remains within the range agreed by them. Now, retail inflation is 5.76% (May). The committee may be formed before August 9.

 

20

What is it? The number of educational institutions for which the Prime Minister’s Office (PMO) has sought greater autonomy from the Human Resource Development Ministry.

Why is it important? A sign that the PMO believes that educational institutions need more freedom to set their own course structure, fee, admission procedures, etc. is needed to become world class. Finance Minister Arun Jaitley had announced during Budget 2016 that easier rules would be provided for 10 public and private institutions to emerge as world-class teaching and research institutions.

Tell me more: HRD had proposed lighter rules earlier for the “world-class” institutions earlier, but PMO has now suggested they relax it even further.

 

272

What is it? The number of Income Tax Department appeals dismissed by the Delhi High Court in a recent order.

Why is it important? The reason for the dismissal was because the department failed to do something simple: correct the defects in the appeals and re-file them without much delay. The errors included: missing pages, illegible script, wrong font, lack of stamps and proper handing over of case records. The court has directed its registry to ensure that these appeals are not filed again, most of which have tax liability exceeding Rs 20 lakh, leading to a likely revenue loss for the government.

Tell me more: The court was waiting since 2012 for the department to correct the errors in the 272 appeals.

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News in Numbers, June 1, 2016: UP’s entry tax, impact of no discounts on online shopping…

7.9%

What is it? India’s economic growth rate in the January-March quarter of 2015-16.

Why is it important? With this, India retains the tag of the fastest growing major economy in the world for the second consecutive year. The growth has mainly been driven by a rebound in agriculture, improved government spending and private consumption, though companies are reluctant to make investments – putting the burden of boosting growth on the government.

Tell me more: India’s economy grew 7.6% in 2015-16 compared to 7.2% in the previous year. It also became a $2 trillion economy based on Tuesday’s exchange rate ($1 = Rs 67.26).

 

5%

What is it? The entry tax imposed by the Uttar Pradesh government on goods purchased from e-commerce sites.

Why is it important? This decision is said to be done to protect offline retailers’ profits due to the new-age e-commerce firms. Industry lobby Nasscom has opposed similar moves by states (such as Assam, Uttarakhand, Bihar and Rajasthan) on the basis that it puts additional burden on customers and SME traders, besides increasing technology upgradation costs of e-commerce firms to accommodate these new levies, which would anyway become redundant once the Goods and Service Tax is implemented.

Tell me more: Flipkart, through its logistics arm eKart, has filed a writ petition in the High Court of Uttarakhand opposing the state’s move of imposing 10% entry tax on goods bought through e-commerce sites whereas the standard entry tax rate is 5%.

 

175 million

What is it? The estimated number of online shoppers in India by 2020, according to a report by Google and consulting firm A.T. Kearney.

Why is it important? This would account for a quarter of the total organised retail sales in four years, up by 10% from the current level. The growth, estimated at over 40% each year, will happen even if e-commerce firms decided to do away with discounts.

Tell me more: A third of the estimated 175 million shoppers are likely to drive two-thirds of online purchases.

 

15 lakh

What is it? The approximate number of students in Industrial Training Institutes (ITIs) who will be considered Class XII pass, as per a government announcement.

Why is it important? This makes formal and vocational streams of education equivalent, providing the opportunity to the ITI students to pursue higher education and get better jobs. The ITI graduates will get Class XII (if a student has passed Class X before joining the ITI) and Class X (if a student has passed Class VIII before joining the ITI) certificates from the national board of open schooling by giving an exam.

Tell me more: There were 13,105 ITIs as of May 2016, which is to be increased to 18,000 by September this year.

 

0.5%

What is it? Krishi Kalyan cess to be imposed on all taxable services with effect from today, taking the effective rate of service tax to 15%.

Why is it important? The cess, which is to be used for agriculture and for improving the wellbeing of farmers, is likely to help the government garner Rs 5,000 crore in the remaining 10 months of 2016-17. This would make some services including air and rail travel, mobile bills, eating out in restaurants, health check-ups, movie tickets, insurance policies, private tuition and coaching centres and some banking services more expensive – an extra spend of Rs 5 for every Rs 1,000 spent.

Tell me more: The cess, which is to be levied on the value of the service and not on the component of service tax (similar to Swachh Bharat cess) will apply to bills generated before June 1 but paid from today.

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News in numbers, Jan 13, 2016: TCS Q3 revenue misses estimates, ShopClues’ valuation…

 

-24.4%

 

What is it? That’s how much spending on capital goods, a proxy of investment, shrunk in November 2015. This contributed to Index of Industrial Production (IIP) contracting by 3.2%.

 

Why is it important? Investment spending is crucial to support high growth rate and also for jobs creation. When Indian economy grew in excess of 9% for four years in previous decade, investment contributed to more than 50% of the growth.  

 

Tell me more: Retail inflation higher to 5.61% in December 2015, mainly because of increase in food prices.

 

Rs 75,000 crore

 

What is it? The amount disbursed under Pradhan Mantri MUDRA Yojana (PMMY) so far till December 2015. The scheme aims to lend to small business units or non corporate entities without insisting on collateral.

 

Why is it important? Though banks and microfinance institutions have disbursed this much, they have refinanced only Rs 1,500 crore from the Micro Units Development and Refinance Agency or MUDRA so far. Mainly due to insistence by MUDRA that onward lending should be done at the base rate.

 

Tell me more: MUDRA refinances loans under PMMY at 6.72%.

 

-0.3%

 

What is it? Decline in quarterly profits measured in dollar terms for Tata Consultancy Services (TCS) during October- November 2015, as compared to July-October 2015.

 

Why is it important? India’s largest software services firm missed market expectations for the sixth consecutive quarters, with stock price down by 10% since September 2015. TCS now has to grow 5.7% sequentially in current quarter (dollar terms) to meet the annual target of 8% for 2015-16.  

 

Tell me more: TCS revenue was $ 4.14 billion in December 2015 quarter.  

 

$1.1 billion

 

What is it? Valuation of ShopClues after the latest round of funding from GIC Pte, a sovereign wealth fund, and private equity investors – Tiger Global Management and Nexus Venture Partners.

 

Why is it important? Show the willingness of the investors to bet on a fourth player in the e-commerce market dominated by Amazon India, Flipkart and Snapdeal. E-commerce in US and UK are dominated by one or two players who have dominant market share.

 

Tell me more: Gross Merchandise Value (GMV) – value of goods sold via the site – is expected to touch $ 1.2 billion in 2015-16. The valuation seems to have given close to 1X of GMV.  

 

Rs 2.82

 

What is it? The average electricity prices per unit during 2015 in the spot market, the lowest since 2010

 

Why is it important? Shows the positive and negative side of the state of electricity. The positives: increased connectivity between the northern and southern regions because of higher transmission capacity, and lower coal prices. The negative: state electricity boards not able to buy power because of their poor financial health.

 

Tell me more: Around 11,000 MW of coal-based capacity are lying idle because state utilities are purchasing from spot markets, instead of buying as per agreement signed with power companies, as per this report.

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