Now buying a home in Delhi- NCR gets difficult

Ireo Victory Valley, Gurgaon

Ireo Victory Valley, Gurgaon

Buying a house or flat in the national capital region just got more difficult. The residential market has seen a rise in capital values in most micro markets across the region, which has till date enticed many buyers.

“All locations in NCR, across categories, witnessed increase in capital values as compared to 2011 with the exception of the mid-end properties in South – Central Delhi. NCR’s high-end category recorded an average increase of 22 percent y-o-y while mid-end category recorded an appreciation of 15 percent over the last year,” says a latest report by property management consultants Cushman & Wakefield India.

The highest price increase was recorded for Gurgaon with the luxury category at 42 percent. Gurgaon high-end and mid-end recorded an increase in the range of 15 percent – 35 percent mainly on account of higher demand and the growth of new upcoming locations such as Dwarka Expressway, Southern Peripheral road and Golf Course Extension. Due to high demand for luxury projects, the prices for these projects are also expected to witness an upward trend.

Read more: The Economic Times

Economy

Growth rate to improve in second half of FY13: Montek

The Government is doing a lot to push growth but the impact of its efforts will be felt in the second half of the fiscal when the expansion rate will show some improvement, Planning Commission Deputy Chairman Montek Singh Ahluwalia said today.

“We are doing a lot. The impact will be felt in the second half. Our expectations are that in the second half of the current year the growth rate will improve,” Ahluwalia told PTI on the sidelines of an event here.

He was replying to a question whether the Government was doing enough to support growth in the economy.

He said according to the projection of the Finance Ministry the growth rate in the second half of the current fiscal may be near about 6 per cent, up from the first half of 5.4 per cent.

“The Finance Ministry has just come up with an estimate for the year as a whole at 5.7 to 5.9 per cent. Well that means that they think in the second half…it will go to maybe something like 6 per cent or little about six per cent in order to generate the growth,” he said.

In its Mid-Year Economic Analysis presented in the Parliament earlier this week, the Government lowered the growth projection for 2012-13 to 5.7-5.9 per cent from 7.6 per cent estimated earlier.

Read more: Business Line

Growth needs infrastructure investments & sound policy

We are doing a lot. The impact will be felt in the second half: Montek Singh Ahluwalia

We are doing a lot. The impact will be felt in the second half: Montek Singh Ahluwalia

Our industries suffer from chronic power cuts. Exports are delayed because of poor roads and congested ports. Flights often circle in the air as there is a big queue of aircraft waiting to land. Our office goers spend forever in the traffic. Villagers get power for a mere 6-8 hours a day only.

Economists estimate that 2% is lost in economic growth as an outcome of poor infrastructure leading to serious supply constraints. Accelerated infrastructure investments will not only de-bottleneck the system but will also create its own demand. There can’t be a better example to draw upon than China.

No other country, at no other time in the history of the world, has invested capital on a scale that China has done in recent times. It has built infrastructure at a pace that can only be described as spectacular. And as a result thereof, since the 1980s, China has not only awed and amazed the world with double-digit growth rates, but has also continuously defied the boom-bust theory of economic cycles.

Realising the importance of nation building, our planners and policymakers are targeting a whopping $1 trillion of infrastructure investments during the XII Plan period.

With the combined Central and state deficit at over 11% of GDP and national debt at close to 90% of GDP, government finances are severely constrained. Realising its constraints, the government has actively encouraged private participation in infrastructure development since the early 2000s.

Read more: Financial Express

Malaysia eyeing trade worth over $15 bn with India by 2015

Malaysia has big investment plans for India. The Southeast Asian nation is eyeing trade worth over $15 billion with India by 2015, up from the current $12.5 billion, said Tan Seng Sung, High Commissioner of Malaysia in India.

The country, with a population of close to 2 million people of Indian origin, can prove to be a strategic market for India. Malaysia mainly exports palm oil, petroleum products, chemical products and electronic products to India while the major exports from India include machinery, chemical products and metals.

Pointing out that Malaysian firms had a notable presence in India’s infrastructure space, including highway and monorail projects, he said Indian firms made investments close to $260 billion in Malaysia, mainly via acquisitions, in 2012. While companies such as Reliance, Ballarpur and L&T already had a presence in Malaysia, the country is now keen on also inviting small and medium Indian enterprises to set up shop there.

The Malaysian companies are eyeing opportunities in the country’s infrastructure sector with focus on roads, real estate, mono rail projects and maintenance repair and overhaul (MRO) business in the aviation sector.

Read more: Financial Express

India, Asean finalise terms of free trade in services

With Prime Minister Manmohan Singh and the leaders of ten Asean (Association of South-East Asian Nations) member-countries calling for increasing bilateral trade volumes to $100 billion by 2015, the two successfully concluded the negotiations on Asean-India trade in services and investment.

Prime Minister Singh announced the completion of negotiations at the plenary session of India-Asean commemorative summit.

“Following the implementation of our FTA in goods, two-way flows in investments have grown rapidly to touch $43 billion over the past decade. As Asean investments into India have multiplied, Asean countries too have emerged as major destinations for Indian companies.

“From energy, resources to farm products, from materials to machinery and from electronics to information technology, Indian and Asean companies are forging new partnerships in trade and investment,” Singh said.

Briefing media-persons after the plenary, External Affairs Minister Salman Khurshid said that no timeframe has yet been fixed for signing of the agreements. “There are no hiccups. The negotiations have been concluded successfully,” he said.

Addressing the plenary session, the Prime Minister said that as maritime nations, India and the Asean should intensify their engagement for maritime security and safety, for freedom of navigation and for peaceful settlement of maritime disputes in accordance with international law. Emphasising on building connectivity between India and the Asean, Manmohan Singh said that it was necessary to attach high priority to a quick implementation of the India-Myanmar-Thailand Trilateral Highway and its extension to Lao PDR and Cambodia.

Read more: Business Line

NRI

Indians working in Canada exempted from double taxation

Indian professionals working in Canada will now be exempted from paying social security contribution there if they make such payments in India.

The benefit will be available under the social security pact signed by India and Canada here today to relieve their workers from double taxation.

Under the agreement, workers on short term contracts up to five years will not be required to make any social security contribution in Canada provided they continue to make social security payments in the country of their origin.

The agreement was signed by Overseas Indian Affairs Minister Vayalar Ravi and Canada’s Minister of International Trade and Minister of Asia Pacific Gateway Edward Fast.

Officials said according to provision of the pact, professionals will get the benefit of portability of contributions at the time of relocation while totalisation of the periods of contribution would be ensured for determining eligibility to a benefit.

Currently around one million Indians are living in Canada.

Read more: The Economic Times

Transportation

From New Year, Cathay Pacific, Dragon Air to charge you less

You need to be careful while choosing which airline to fly on your next international trip. A wrong choice could see you paying more.

For instance, flying with the Hong Kong-headquartered Cathay Pacific and its subsidiary Dragon Air will become marginally cheaper in the new year, while flying with the Dubai-based Emirates is set to become more expensive by between Rs 1,500 and Rs 1,000, depending on where and when you are flying. This is because Emirates has introduced an additional Q surcharge for all tickets issued from today.

Emirates operates 185 weekly flights to 10 destinations in India.

On the other hand, Cathay Pacific and Dragon Air have decreased the fuel surcharge on a one-way long-haul flight by $14.10 and on short-haul flights by $1.50.

What this means is that for a return journey between Delhi and Hong Kong a passenger will pay $28.20 less in the new year.

In a communication, Cathay has said that the new fuel surcharge rates revised for all tickets issued or reissued (due to rerouting and/or rebooking on the first coupon) on or after January 1 and for travel on or after that date.

Cathay Pacific flies to Delhi, Mumbai, Chennai and Hyderabad, while Dragon Air flies to Bangalore and Kolkata.

Flyers travelling on Emirates between December 28 and January 18 and April 1 and May 31 will have to pay Rs 1,500 more for a ticket in all the three classes.

Read more: Business Line

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