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India to Mould Relations with the Uk: Theresa May

After Britain left the European Union(EU), India is one of those countries to mould an “ambitious” new trading relationship with the UK, Prime minister Theresa May  announced in the parliament.  "At this summit, I held a number of meetings with other world leaders, all of whom made clear their strong desire to forge ambitious new bilateral trading relationships with the UK after Brexit. This included America, Japan, China and India," she stated.  In the recently held G20 Summit in the House of Commons at Hamburg, May mentioned that in the meeting with PM Narendra Modi, they had discussions covering  a wide range of major issues which also involved modern day slavery.  On the issue of new trade deals, and in response to the opposition party leader Jeremy Corbyn, she stated that, “I am very happy to tell him (Corbyn) that we are already working with the Americans on what a trade deal might look like. We already have a working group with the Australians, and we have a working group with India as well.” "We are working on trade in three areas. Obviously, one area is looking ahead to the trade agreements we can have with those countries we do not currently have them with as a member of the European Union”, May added in one of her recent statements.  "The third area is working with countries such as India and Australia to discuss what changes we can make now, before we leave the EU, to improve our trade relationship."  May was questioned if she had raised the issue of modern day slavery and child prostitution in India in the course of her meeting with Modi, to which she replied that it was an issue conferred formerly with the Indian PM as the US wants  "people around the world to address it".  "We are very clear that we want to see this issue being dealt with. That is one of the reasons why we have put into legislation the requirement for companies here in the UK, which will be manufacturing and will be sourcing products from around the world, to look at their supply chains and report on what they find in them and whether or not modern slavery is taking place within them," she told Parliament. On the sidelines of G20 Summit in Germany, Modi and May had bilateral talks. Modi has brought up the issue of Indian economy and its offenders like liquor baron Vijay Mallya and IPL chief Lalit Modi, and appealed for UK’s cooperation in extraditing them to face the Indian courts.
India to Mould Relations with the Uk: Theresa May
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India to Mould Relations with the Uk: Theresa May 30 India to Mould Relations with the Uk: Theresa May News Article
Kranthi Tilak Reddy Aug 04, 2017
After Britain left the European Union(EU), India is one of those countries to mould an “ambitious” new trading relationship with the UK, Prime minister Theresa May  announced in the parliament.  "At this summit, I held a number of meetin...
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Reasons Why Payments Are at Lurch

Are you delayed with your payments? Yes? Then you have to know a few elementary reasons as to why there is a setback in your payments that can let you down to work further. Reasons may vary with situations. With our evolving electronic age, everything is done within an eye wink. But even then, there can be issues in your transactions due to multiple reasons.One of the prime reasons can be holidays or weekends, especially during international transfers, you need to consider holidays in your country and the sending country. During holidays, banks can work few hours or they can be completely inoperative. Meanwhile, if your payment transfer is made on a Friday evening, it is likely to be received after your broke weekend. In some countries, Saturday is working day, while in others it can be a relaxing day. Eg: in Brunei, Saturday is a working day but Fridays and Sundays are considered as weekends. So examine how banks operate before you opt to transfer. In addition, significant difference in time zone can be one of the reasons for late processing of our transactions.    Bosco Tan, the co-founder of the personal finance app “Pocketbook” explains that grounds of delay can be technical issues. International transfers can be compound. In such cases, if the clearing house receives orders in bulk, this might slow down the overall payment process.Suppose, you have entered even one incorrect routing, SWIFT or IBAN numbers etc, on your SpringBoard, time is consumed by banks to scrutinize where the money needs to go or it can simply be rejected.Tightened bank rules to transact internationally that requires inquiry and confirmation to be verified, add to the trauma of delayed payments. Sometimes, if the selected intermediary banks have switched without notice and if the domestic country requires an intermediary bank, cross check if the bank listed in the Spring Board and the intermediary bank are the same. You might want to consider regulatory time frames of the receiving country, most countries transfers funds within a standard time frame of 3-5 business days.Most of all the delay caused depends on the approach of your transaction (wire transfer, electronic payment, etc) as they rely on the federal or state law of respective countries.These can be accounted as the most common reasons for receiving late payments. It is recommended that you communicate with your bank provider and the payer for further queries.
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Reasons Why Payments Are at Lurch

Reasons Why Payments Are at Lurch

Piuesh Daga
Are you delayed with your payments? Yes? Then you have to know a few elementary reasons as to why there is a setback in your payments that can let you down to work further. Reasons may vary with situa...
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Intellectual Property Rights Continue To Be The Top Bilateral Issue

Rising from the tenth largest, India has stood as the ninth single country trading partner for the US since 2016. India and US are not supposed to let their economic differences obstruct the Indo-US ties that bound the growth of the bilateral strategic partnership. As per an official US report, the Intellectual Property Rights (IPR) remains to be one of prime bilateral trade issues between these two countries. This is due to the  inadequacy of measures for the improvement of IPR regime, reported “The Year in Trade 2016”  published by the US International Trade Commission (USITC). "IPR protection remained one of the top bilateral trade issues between the two countries," mentioned the annual report. India remained on the priority watch list in 2016 due to a lack of measurable improvement to its IPR regime, it noted. From there, economic growth of India has deteriorated to 6.8 percent in 2016 from almost 7.9 percent in 2015, said he annual report of USITC. India does not have many notable linkages to the global economy compared to China, but has made constant efforts for a drastic growth rate. It has hit a record of highest growth rate in the world in 2016. The service sectors and small manufacturing sectors form a vital part of its growth. In 2016, it has derived per capita income of USD 6,590. As a result, India's economy does not spur strong demand for imports," USITC said. In 2015, there was a rise in US merchandise trade from 1.8 to 1.9 percent. Added to this, US two-way merchandise trade with India went up by 2.2%, resulting in 67.7 billion in 2016. Even though there was a slight increase in US exports in 2016, the imports surpassed the exports. The trade deficit rose by 4.2 percent to USD 24.3 billion in 2016. India stood as the seventh largest services trading partner on the basis of two-way trade, although it remained to be the only top trading partner with US, despite having a services trade deficit, the report stated. While trade deficits have scaled down since 2014, there was again a slight rise in exports which caused US services to decline by 1.6 percent to USD 6.8 billion. Total US services trade with India grew to USD 46.7 billion approximately to 10.3 percent  in 2016, it said. There were many active WTO dispute settlement proceedings which involved India and US in 2016. India has sent requests regarding measures on non-immigrant temporary work visas during March. In July, US requested arbitration concerning importation of few agricultural products on the grounds that India fell short to implement measures into compliance within set frame of time.  In September, India sought for consultations with the US concerning alleged domestic -content elements in the renewable energy sector furnished by several US states. Finally the Dispute Settlement Body approved  the Appellate Body report and the panel report, altered by the Appellate Body report, concerning India’s purchase power agreements upon solar firms and domestic content requirements. India and the US have constantly imparted measures to improve bilateral trade and investments encompassing IPR protection. 
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Intellectual Property Rights Continue To Be The Top Bilateral Issue

Intellectual Property Rights Continue To Be The Top Bilateral Issue

Saurabh Jain
Rising from the tenth largest, India has stood as the ninth single country trading partner for the US since 2016. India and US are not supposed to let their economic differences obstruct the Indo-US...
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Israel Anticipating To Boost Exports to India

India and Israel are two nations maintaining extensive military, economic and strategic relations. India imports massive military equipments from Israel and is currently the largest buyer of Israeli military equipment. To boost exports, Israel is eyeing the strong middle class base in India. The visit of Prime Minister Narendra Modi has been a “historic” moment, as none of preceding Prime Minister had attempted a visit to Israel. Dubiety persists here due to discussions on a free trade agreement (FTA). The negotiations have worked on from past seven years. Despite that, FTA between the two nations has remained elusive. On May 26, 2010, the first rounds of negotiations were held. On a question concerning the long-pending pact, Israeli foreign ministry officials said that India was “re-evaluating” it, but giving little weight to its significance, said that there are newer developments that will help enhance the potential of the economic relationship between the two countries. “India is a key export market for Israel. Tightening relations with India and this historic visit of the Indian Prime Minister will lead, beyond increasing security exports, to growth in trade in goods and services,” Israeli minister of economy and industry Eli Cohen said. “The Indian economy is becoming a prime destination for Israeli exports, with its 1.3 billion consumers led by 300 million citizens in the middle and upper-middle class, with purchasing power equal to the middle class of Western economies,” Cohen noted. In an interview, Modi mentioned that India was not looking forward to a traditional “import-export relationship” with the Jewish nation. “It is more than a buyer-seller relationship. We are more interested in a tech-based partnership with an emphasis on ‘Make in India.’” he added. According to the ministry of economy and industry of Israel, trade allying the countries has mounted up from $200 million in 1992 to $4.13 billion in 2016 (including diamonds). Exports had reached to $1.29 billion, but later it had a drop down, with exports totalling $1.15 billion(excluding diamonds). There was a dip by 13% in 2016.   Alliances on R&D creation of a joint fund and identifying key sectors like water, agriculture and space technologies have been taken into consideration. For this, two nations have to collaborate, extend support and deepen ties, majorly to increase economic cooperation between the nations.
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Israel Anticipating To Boost Exports to India

Israel Anticipating To Boost Exports to India

Saurabh Jain
India and Israel are two nations maintaining extensive military, economic and strategic relations. India imports massive military equipments from Israel and is currently the largest buyer of Israeli...
Continue reading

How do Banks Make Money and Ways to Save It

Have you ever wondered why banks pamper you with great infrastructure, amazing service support, dedicated Relationship Managers, Treasury managers, Trade managers and so on and so forth. Do you think banks provide these personalized services free of cost or at nominal cost? How much are you paying for these services?  To make it easy for understanding, the revenues that banks generate from clients like you are broadly categorized as Net interest income (NII), Net Fee Income (NFI) or both together. Income from current account balances, cash credit /over draft utilization interests are generally categorized as NII. Charges related to Import/Export transactions, Foreign Exchange margins, Guarantee Issuance commission/LC issuance commission, processing fees, etc. will form a  part of NFI. Do you know, banks in India have garnered overall revenue of $172Bn last year and these numbers are growing to the least by 8-10% YoY.  For instance, a client having a lending facility, typically pay anywhere between 9-14% in today’s scenario upon utilization. This basically means, there is a base rate or MCLR which is nothing but the cost of funds for the bank, added with a margin of 1-4%(NII), depending on risk assessment of the client. The way pricing is done by banks are driven by various factors like cash flows, financial strength of company, collateral offered to the bank, external ratings if any and above all, it depends on your understanding of your working capital requirement, structuring relevant working capital limit, understanding cost associated specific to each of the facility and transactions out of it. You typically tend to pay 1-4% as margins and there is always room to negotiate and reduce it by 20-30%. Now about NFI, Corporates who are into international trade (Export/Import of Goods/services) are vulnerable to pay up to 3.5% only as exchange margins if Foreign Exchange is not meticulously managed. Complex hedging products attract even higher costs and you can possibly pay 5-6% of your transaction value as premiums/commissions or exchange margins. In other terms, for exporters, you may not have received the right premium which are available and receive 3-5% lesser which otherwise you should have received .Other transaction specific costs apart from exchange margins such as processing fees ,import commission, SWIFT charges, Export handling Charges, Collection charges, Guarantee commission, LC issuance, Retirement charges etc. are classified as NFI.  The moment we hear about bank charges, you may think that we don’t pay much for our operations and we would refer to our reconciled statements which clearly shows all the charges that are directly debited to your statement. These are far lesser than your actual charges. Do you know that some of the above charges do not get reflected in your statements or are hidden in nature? Why do you think you should know about the direct/hidden banking costs? With our experience, we analyzed many financials and their facilities associated with their transactional level banking cost. It was well established that these corporates could save some of these charges which could add 5-7% on their bottom line numbers. First things first, “what gets measured gets managed well”. Understand what you are currently paying your bank for every transactions that you do with them. Be vigilant and understand the current market dynamics when it comes to foreign exchange transactions. This is an area you could always save on. Ask your bankers as to what margins you are paying and monitor it when there is an exchange involved. To give you a perspective on absolute numbers, if you are buying/selling $100,000, you could save anywhere between 25k to 180k depending on the bank you deal with. In case you have any specific question relating your company’s banking cost (Interest, Foreign Exchange) optimization, please write to Bhaskar@savedesk.co to unravel your overall banking cost. Author understands & writes about Foreign Exchange, International Trade Finance, Liquidity management for corporates.
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How do Banks Make Money and Ways to Save It

How do Banks Make Money and Ways to Save It

Saravana Bhaskar
Have you ever wondered why banks pamper you with great infrastructure, amazing service support, dedicated Relationship Managers, Treasury managers, Trade managers and so on and so forth. Do you thi...
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Rupee Rises up by 14 Paise as Dollar Depreciates

The rupee value on Tuesday made a sharp recovery after Monday's huge pitch in prices. It has increased by 14 paise, that is close to  64.74 against the US currency on fresh sessions of dollar selling exporters and banks. “Despite high volatility in domestic equities, vigorous inflow of capitals massively aided the recovery despite high volatility in domestic equities,” a forex dealer said. From July 1, 2017, after the Goods and Services Tax came into force in a historic midnight session in the Central Hall of Parliament, domestic equity markets opened widely to global markets. Amid easing dollar pressure at the Interbank Foreign Exchange (Forex) Market, the local currency inflated at 64.80 against Monday's value close of 64.88. Before the day ended, it showed a rise of 14% or 0.22 percentage from 64.69 to 64.74 and hit an intra-day high by late afternoon. Against all other currencies overseas, it received backing from a weak dollar. The rupee value on the previous day had a sharp fall of 30 paise against the US dollar, which implies over one-month low of 64.88. Meanwhile, the RBI defined the reference rate for Euro at 73.5995 and for dollar at 64.8168. Amidst all predictions of Fed rate hikes in near term, the dollar traded overseas effectively against all its rivals. Against six major rivals, the dollar index kept  US currency up at 96.00 i.e, the US dollar kept its uptrend against all major currencies of the world, altering Fed policy expectations and proposed possibility of a hike at the meetings of FOMC in September and December.  In cross-currency trades, the rupee retrieved losses against pound sterling from 84.03 per pound to 83.70, and also recoiled against the euro to finish from 73.77 to 73.42 from yesterday.  From 57.40 per 100 Japanese yen, it strived to settle down to  57.21. The six-month benchmark mark premium accountable in December flashed down from 146-148 paise to 143.50-145.50 paise and succeeding the June 2018 contract, it also depreciated from  293-295 paise to 289-291 paise.  Premium for dollar fell weak due to proficient receivings from exporters in the global upfront today.
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Rupee Rises up by 14 Paise  as Dollar Depreciates

Rupee Rises up by 14 Paise as Dollar Depreciates

Saravana Bhaskar
The rupee value on Tuesday made a sharp recovery after Monday's huge pitch in prices. It has increased by 14 paise, that is close to  64.74 against the US currency on fresh sessions of dollar sel...
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