The Tribune, Chandigarh, India

	Trade deficit widens, but exports jump to $27.2 bn Sanjeev Sharma Tribune News Service New Delhi, November 11 India’s trade deficit rose in October even as the recovery in exports continued taking it to a two-year high. However, there was turbulence in the currency and equity markets with the rupee hitting a two-month low of 63 to the dollar and the stock markets falling to a one-month low on renewed fears of US Fed tapering. The trade data was on expected lines as recovery in global markets pushed exports to a two-year high of 13.47% to $27.2 billion in October but the trade deficit worsened on account of rise in gold imports in the festival season. Gold and silver imports increased to $1.3 billion in the month under review from $0.8 billion in September, 2013. Trade deficit jumped to $10.5 billion as against $6.76 billion in September this year. Commerce Secretary SR Rao said improvement in Western markets have helped in pushing the exports. Industry said exports will do even better in the coming months as sectoral trends are positive. M Rafeeque Ahmed, president, Federation of Indian Export Organisations (FIEO) said exports will post even better results in forthcoming months as all major sectors are in positive zone helping India to cross the target of $325 billion. He said the double-digit growth in exports continuously for the past four months has helped in reducing the trade deficit significantly. FIEO chief said going by the current trend, trade deficit for the year may be around $140 billion much less than $192 billion recorded in 2012-13. The good show on the export front and easing of the current account deficit was however not enough to bolster the rupee which fell to a two-month low of 63 to a dollar. Slower inflow of FII funds in the stock market caused the rupee to weaken as Finance Minister P Chidambaram sought to assure that the domestic currency will stabilise. The Indian currency started weakening since last week after the dollar purchase by oil companies was partly shifted to the market. Industry body Assocham said while exports are showing a recovery, a watchful eye should be kept on the unfolding situation of pressure again mounting on rupee against the dollar. The Indian currency has lost the maximum among the Asian currencies in the past five days. The rupee worries and fresh fears of Fed tapering spilled over to the stock market with the BSE Sensex sliding for the fifth day, fell over 175 points to a nearly one-month low on selling by overseas funds. Gold also joined the assets rout today and fell for a third day to a three-week low on speculation that the strengthening US economy will spur the Federal Reserve to scale back stimulus.
	PepsiCo to invest Rs 33,000 cr in India by 2020: Nooyi Sanjeev Sharma/TNS New Delhi, November 11 Global beverages and snacks major PepsiCo today announced plans to invest Rs 33,000 crore ($5.5 billion) in India by 2020. Making the announcement, PepsiCo Chairman and CEO Indra Nooyi said, “India is a country with huge potential and it remains an attractive, high-priority market for PepsiCo. We’ve built a highly successful business in India over the course of many years, and we believe we’ve only scratched the surface of the long-term growth opportunities that exist for PepsiCo and our partners. This investment is PepsiCo’s vote of confidence in India’s future”. The company, which has so far invested $2 billion in India since its entry in 1989, said the investment that it is going to make will strengthen its capability in various strategic areas, including innovation, manufacturing, infrastructure and agriculture. India has been one of the top five markets of PepsiCo and it has eight brands which clock turnover of over Rs 1,000 crore in the market namely Pepsi, Lay’s, Kurkure, 7UP, Slice, Mirinda, Mountain Dew and Aquafina. The company has 42 plants across India. As part of the investment programme on the innovation front, PepsiCo will continue to expand the range of foods and beverages in its portfolio and significantly increase manufacturing capacity to meet the growing demand for its foods and beverages. PepsiCo and its partners plan to expand their production capacity in India to more than double the current levels by 2020. For infrastructure, the company plans to ramp up selling and delivery infrastructure throughout the country, with a particular focus on rural market expansion. On the agriculture push, resources will be allocated to expand PepsiCo’s well-known collaborative farming programme, which provides farmers with access to good quality seeds, technical agronomic expertise, bank loans and crop insurance. Pepsico said it is estimated that the strategic initiative announced today will add more than 1,00,000 new employment opportunities, as well as strengthen India as a centre of talent development for PepsiCo. Since opening its first operations in India in 1990, PepsiCo is estimated to have created opportunities for more than 2,00,000 people in the country through direct or indirect employment and agricultural collaborations. “Most importantly, our investments will be aligned with India’s interests,” Nooyi added. “We will be guided by Performance with Purpose. We believe Performance with Purpose will drive sustained value for PepsiCo and positively contribute to India’s development well into the future”, she said.
	Rising inflation, falling rupee hit fortune of India’s richest New Delhi, November 11 Rising inflation and falling rupee seem to have hit the fortune of India's 100 richest people, but they have still managed to beat the growth in Indian stock market valuation. Though the total wealth of India's 100 richest people grew by a modest 3% from the year ago period to $259 billion, the elite group of entrepreneurs have beaten the BSE market cap's growth over the past five years, as per the latest Forbes India Rich List. "The growth in wealth might have been lacklustre due to India's stumbling economy, which has been hit by inflation and a falling rupee," Forbes India said adding "at the same time, the five-year trend shows this elite group of entrepreneurs beating the BSE market cap's growth". The Indian economy is battling weak growth, higher inflation levels and falling rupee which in turn has affected wealth creation. The Wholesale Price Index (WPI)-based inflation climbed to a 7-month high of 6.46% in September, and the one based on CPI inched closer to double digit at 9.84%. This year's list has 65 billionaires, four more than last year. — PTI
	Roadshows for IOC stake sale begin from today New Delhi, November 11 The government will tomorrow begin roadshows in the US for the sale of its 10% stake in nation's largest oil firm, Indian Oil Corporation (IOC), that may fetch as much as Rs 3,900 crore. Roadshows are planned in the US and London this week, sources with direct knowledge of the development said. Officials from Ministry of Petroleum and Natural Gas and the Department of Disinvestment will hardshell IOC stake sale, which is crucial for meeting government's disinvestment target of Rs 40,000 crore. The issue of 19.16 crore IOC shares is likely to hit the market sometime in December, they said. IOC chairman RS Butola had last week stated that the Department of Disinvestment (DoD) may be wanting to assess the market conditions at the roadshows and will take a view on the stake sale based on the response. IOC scrip closed at Rs 203.15 on the BSE, 46% below the 52-week peak of Rs 375 reached on January 18. The sale of 19.16 crore IOC shares at the current price would fetch the government about Rs 3,900 crore. Government holds 78.92% stake in the country's largest oil refiner as on June 30. — PTI
	Net users worried about info being stolen: Report Tribune News Service New Delhi, November 11 As connected devices, which together make up the ‘Internet of Things’, play a greater role in business and daily life, Indian consumers seem conflicted about the trade-offs among privacy, security and convenience factors. ISACA’s 2013 IT Risk/Reward Barometer survey shows 88% of Indians are concerned about their information being stolen online. Despite that, 50% reuse the same two to three passwords across multiple online accounts. More than one-third (35%) of Indians have used a family member’s name as a password and 31% have used a significant date such as a wedding, anniversary or birthday — all of which can be guessed easily and may create security issues as consumers begin using an increasing number of Internet-connected devices. The term ‘Internet of Things’ refers to machines, devices, sensors, cars, cameras and other items that are connected to the Internet and often to each other. As many as 50 billion devices are expected to be connected to the Internet by 2020. Conducted by ISACA, a global association of 1,10,000 IT security, assurance, governance and risk professionals, the IT Risk/Reward Barometer examines the risks and rewards of key trends, including the Internet of Things, Big Data and BYOD. The findings from the Indian consumer survey reveal some gaps between fears and actions as Indians try to manage privacy and security in an increasingly connected and censored world. For example, while nearly 9 in 10 (88%) say they are concerned about their information being stolen and only 8% say app makers are the source they trust most with their data, 61% continue to share important personal information online.
	Tax Advice Execute a Will with regard to prospective gifts by SC Vasudeva Q. I and my wife are senior citizens and stay with our children for long spell of time, particularly when either of us is unwell. We are Punjab Government pensioners and have interest income also. We are able to save some money at the end of the year for which we would like to purchase long-term FDs with our grandchildren as nominees. Can we prospectively gift maturity of these instruments to grandchildren by writing a letter of having gifted the same to them? — Krishan Dev Uppal A. There is no prospective gift envisaged by the Gift Act, 1958, which is not in operation presently or in any other law on the issue involving gift of the property by a donor to the donee. A nominee has the right to receive the proceeds of the fixed deposit made by a person who is not alive as on the date of the maturity of the fixed deposit. Therefore, in case of a long-term fixed deposit made by you and your wife with your grandchildren as nominees, it will provide a facility to your grandchildren to receive the proceeds of such fixed deposit on its maturity in case of an unfortunate happening. In view of this position, with regard to prospective gifts, it would be advisable to execute a Will in favour of your grandchildren in respect of such fixed deposits so that they become the owners of such deposits after the unfortunate happening. Q. I wish to gift my married major daughter a sum of Rs 1 lakh. Kindly advise in case I transfer the amount of gift from my SB A/c to her SB A/c directly through bank transfer, instead of issuing a crossed cheque in her favour, would it be treated as a gift to her and the entry in her SB A/c of transfer of amount would serve the purpose of proof of gift, or payment by cheque is necessary for a gift. Would it attract any income tax either on donor or donee. — Surender Verma A. A gift can be made by a bank transfer. There is no necessity for a cheque being made out in donee’s name in case the gift has been made through a bank transfer. However, a letter from the donor, giving his/her complete address and Permanent Account Number with regard to the making of gift and a letter from the donee, giving his/her address with Permanent Account Number accepting the said gift should be available as an evidence of the gift made through a bank transfer. A copy of instructions given to bank for bank transfer should also be retained which can be produced to the tax authorities in case of any enquiry by the department.