What is it? The estimated drop in inflation once the goods and services tax (GST) is implemented.
Why is it important? Inflation concerns have been central to RBI’s monetary policy reviews, having set the target in 2015 of reducing the headline inflation to 4% in the medium term. The Revenue Secretary Hasmukh Adhia’s estimated of GST’s effect on inflation could finally encourage the central bank to cut the key rate (repo) that it had been keeping unchanged citing the risk of raising inflation.
Tell me more: Adhia insists the government has taken care to prevent the average taxation on commodities from going up. Regarding GST implementation, Adhia mentions the need to educate consumers about the new taxation to keep them from being cheated by unscrupulous traders.
What is it? The value of the initial commitment to SoftBank’s Vision fund, a private equity fund for cutting-edge tech companies.
Why is it important? The Vision Fund, engineered by SoftBank founder Masayoshi Son, is the world’s largest private equity fund that has a planned investment pool of $100 billion as tech venture capital. The current amount, raised from investors such as the Saudi Arabia’s Public Investment Fund, Abu Dhabi’s Mubadala Investment, Apple Inc, Qualcomm, Foxconn Technology and Sharp Corp, besides SoftBank, is the first round of fundraising.
Tell me more: The fund is targeting a $100 billion in the next six months from other investors. SoftBank led the world’s largest venture capital funding in April worth $5.5 billion in China’s Uber-rival Didi Chuxing.
Rs 20,000 crore
What is it? The amount Indian government will spend to acquire four landing platform docks (LPDs) or warfare amphibious ships under the ‘Make in India’ program.
Why is it important? This is the largest naval defence deal. Two ships would be made in partnership with private companies, and the winning private company will help the state-run Hindustan Shipyard Ltd. make the remaining two.
Tell me more: Make in India is a government program to promote domestic manufacturing in 25 sectors including defence.
What is it? Percentage of total budgeted amount spent in April 2017 – the first month of the current financial year.
Why is it important? This represents a marked improvement compared to 8.2% of annual spending estimates in previous financial year. Central government spending used to spike in March, the last month of a fiscal, and drops sharply in the next month.
Tell me more: The move to advance the budget from February 28th to February 1st has helped to spread out expenditure evenly.
What is it? The number of jobs cut by Cathay Pacific, the biggest in two decades.
Why is it important? The move comes after the Hong Kong based airline reported loss in 2016 for the first time since 2008. One-fourth of managerial staff and 18% of non-managerial positions were cut at its Hong Kong head office. The move will save 6% of staff costs.
Tell me more: Air India, India’s national carrier which operates on 64 international and 118 national routes, is struggling to make profits with debt of Rs 50,357 crore and 21,000 employees.