What is it? The effect of the notes-ban on GDP growth in FY17, as estimated in the Economic Survey presented to the Parliament on Tuesday.
Why is it important? The first official acknowledgement of demonetisation’s impact on the economy revises a baseline growth of 7% down to 6.5-6.75%. The Central Statistics Office had not figured in the cash-crunch when giving out its estimate of 7.1% earlier this month. The government took potshots at and challenged unofficial estimates, as most have factored in a larger impact of demonetisation on GDP. It included the IMF, which forecast the withdrawal of 86% of the currency value in November would result in a growth of 6.6%, down a full percentage from its October estimate.
Tell me more: GDP growth in FY18 is expected to be between 6.75 and 7.5%, still lower than FY16’s 7.6%. The government also admitted the GDP estimate would not capture the effect of the cash shortage on the informal sector, the largest employer in the country.
What is it? The salary level an H1B visa-dependent employer will have to meet if the High-Skilled Integrity and Fairness Act of 2017 in the US House of Representatives goes through.
Why is it important? It has sent shivers down stocks of Indian IT companies, who send employees for onsite work using the visa. By removing the H1B minimum wage of $60,000, constant since 1989, and more than doubling it for the employer to be exempt from non-displacement and recruitment assessment requirements, the act could strain the coffers of US-based IT clients. It would lead to not just a rethinking of how many local employees to replace with onsite Indian staff, but also see IT companies mull more expensive US hires or digital delivery from India. Major IT stocks including the big four, fell by 2-4.5% while the Sensex dropped 2.96%.
Tell me more: The act would also reserve 20% of the annual H1B visas for small and start-up employers, while removing the ‘per country’ limit for employment-based immigrant visas.
What is it? Rise in the share price of US’ Iconix Brand Group, on news of its plans to sell majority stake in the beloved franchise Peanuts Worldwide, which includes cartoon strip characters such as Snoopy and Charlie Brown.
Why is it important? Even though the iconic characters generate around $30 million, licensed in over 100 countries, Iconix’s decision to sell could be the result of a large customer — US insurance company Metlife — dropping them after 30 years of use as mascots. This could be a major opening into the over-$-144-billion US licenced merchandise market (the biggest in the world) for keen investors. Peanuts, created by Charles Schulz, still counts Nestle, Zara and Hallmark as its licensees.
Tell me more: The deal could ease the debt burden on Iconix which bought its 80% stake in Peanuts in 2010, while the remaining 20% is owned by Charles M. Schulz Creative Associates, controlled by the creator’s family.
What is it? The number of people whose cash deposits after demonetization do not match their taxpayer profiles as identified by the Income Tax department
Why is it important? Indian government hopes that the exercise, a follow up on large scale currency reform in November, will result in a higher tax collection rate. Economic Survey pointed out that India is among the countries that perform poorly on this metric – just seven direct tax payers for every 100 voters. The Income Tax department has identified over 10 million accounts with deposits exceeding Rs 2 lakh, and would start by scrutinizing those who have deposited over Rs 5 lakh.
Tell me more: The queries by income tax department can be answered via its online portal.
What is it? The number of iPhones sold by Apple in the last quarter.
Why is it important? This is the largest number of phones sold by Apple in a quarter since the launch of iPhone in 2007, and comes after three consecutive quarters of decline in sales, defying industry expectations. The sales helped push Apple’s total revenue by 3% to $78.4 billion. It will also restore some faith in its CEO Tim Cook, who has been losing sheen following the decline of iPhone sales and the absence of any other product in its stable to match iPhone’s success.
Tell me more: iPhones accounts for two-thirds of Apple’s sales. The boost comes after the launch of iPhone 7 / 7 Plus in September 2016. While the lower priced iPhone 7 is the best selling model, the bigger ‘Plus’ version performed better than the previous larger sized models launched by the company.