Early trend of joint family system was diminished from its core presence and superseded by the nuclear family system with the sudden merge of globalization and modernization in the Indian society. Irrespective of the nature of family there is a designation called the head of the family, may be male or female with whom the vested and absolute rights with regard to ancestral property and self acquired property.
The mode of succession can be testamentary i.e. vide “WILL” or non testamentary i.e. “WITHOUT WILL”. The passing of property in succession varies with respect to religion, nature of family and presences of lineal descendants. Law regulates the mode, quantity and division of property to be succeeded. First, you need to understand how property undergoes succession under different circumstances and basis and statute regulating the same.
Death without Making a WILL
Death without making a will includes the circumstances where there is total absence of will, incapability of executor of the will, incapability of the will to function and if the property is transferred for any illegal purpose as said under the law for the time being. Hindu Succession Act 1956 regulates Hindu, Sikh, Jain and Buddhist. Indian Succession Act regulates Christians, Parsi and Jew. Whereas Muslims are regulated under Muslim Personal Law Application Act, 1937; the interfaith marriages are governed under the Special Marriage Act, 1954.
In case of testamentary succession, the division of property will be based on the WILL and is regulated by respective above said laws. If a Hindu male or female dies, the heir ship is divided into five categories, namely Class I heirs, Class II heirs, agnates, cognates and government. Class I heirs include husband or wife, mother and children. As far as Class II heirs are concerned, the property can be inherited to father, brother, sister, children of sons and daughters. Agnate means relationship with deceased and the heir wholly through male descendants. Cognate means relationship between deceased and heirs through blood or adoption but not wholly through males. With respect to priority it is “Class I heirs> Class II heirs > Agnates > Cognates > Government”. With the amendment of section 6 of the Hindu Succession Act 1956 in 2005, the male and female is entitled to equal rights and liabilities and the division of shares will be done same.
Under the Indian Succession Act, 1925 there is no difference between deceased person’s relatives of father’s and mother’s side. There is no concept of full blood and half blood and also a born child and unborn child in the womb. It entails equal rights of inheritance. Application of succession to Christian female is bestowed through the landmark case of Mary Roy v. Union of India.
Under the Muslim Personal Law (Sheriat) Application Act, 1937, the law is the amalgamation of four sources of Islam i.e. the Holy Quran, Sunnah i.e. the practice of the Prophet, Ijma i.e. learned men’s consensus on decision on a particular factor and Qiya is the decision taken in line with the laid down principles of God. Under this succession there is no differentiation in share of rights and division of property between men and women. This law contains two other laws that are the Sunni and the Shiah law by which former goes for per capita distribution of property whereas the latter goes for per strip distribution of property. Per capita signifies total estate will be distributed equally among the heirs and per strip indicates the inheritance of strip the belong to. As like Hindu law, if the deceased has no heirs then the property shall go to government.
A Muslim widow without child inherits one-fourth of the movable property and one-eighth of the immovable property of her deceased husband. Step children have given no share of rights from step parents but they can inherit from stepbrother or step sister.
Irrespective of the religion, there will be a head(s) that will be holding the inherited property and self acquired property till their death. There is no law which describes the administrative procedure that shall be followed to transfer and inherit the property after the demise of the said head(s). Here are some inevitable documents without which we cannot transfer or convert the self acquired or immovable or movable property of the deceased. The procedure for the same differs from region to region and from state to state.
It is the only document which proves conclusively the demise of a person on said date due to said reason. It is issued by the hospital or clinic which confirms the death of the person. The certificate plays exceptional role in closing or modification of bank accounts and transfer of money in the bank account in the form of bonds, fixed deposits, recurring deposits; transfer of shares in a company; modification of government documents and inheritance.
Legal Heir-ship Certificate
Legal heir certificate is a document that establishes the relationship between the deceased and legal heirs. The certificate can be obtained by furnishing death certificate of the deceased before concerned corporation or municipality. The purpose of this certificate comes on the sudden demise of the family member or the head of the family. However this certificate cannot be used to claim insurance, employee benefits, property registration and so on. The certificate is never a conclusive proof as per the Indian law. The certificate can be obtained by parents, children, siblings or spouse of the deceased.
Nominee is a person whose name is given by another person to deal and inherit the monetary subjects such as insurance policy, bank accounts fixed deposits etc after the demise or inability to function himself by the latter. The latter is commonly known as the account holder. The account can be in a bank, co-operative society or even share/ stock enterprises.
These are the three elements that are essentially required to inherit properties both immovable and monetary after the demise of the person.
What to do with deceased person’s bank accounts?
The general rule is that after the date of demise of the account holder, there shall not be any transaction made from that account. If any person including legal heir draws any amount after the demise, the person will have to deposit money back to the account. If the bank feels any suspicion it is free to conduct any inquiry on the same. As per RBI rules, after the demise of the account holder the amount shall be transferred or inherited to the nominee imputed by the account holder in his statement. If there is no nominee, the amount will be divided equally and given to all legal heirs. If there is a situation of any dispute with regard to legal heirs or the subject matter, the same shall be decided by a civil court of appropriate jurisdiction. The same is applicable in co-operative societies and other financial institutions collecting deposits.
This can be administered only when an application made along with death certificate of the deceased account holder. There are variations in procedure in different regions and states but such procedures strictly stick to the Reserve Bank of India rules.
Nominee versus Legal Heir
The rights of nominee on the balance in the deceased depositor’s bank account supersede the right to inherit by a legal heir. That is, if nominee is a third party, the balance deposits of all form will be transferred to him/her.
Inheritance of Stock
The stock inherited to the legal heir on the event of death of original holder is called inherited stock. On inheritance the cost will step into the value of security at the date of inheritance. The tax on inherited stock is not applicable in our country.
So, what about Property Inheritance?
In case of joint undivided property, your rights will be already mentioned in the deed. Hence the legal heirs shall go to court or Revenue Department Officer or any other authority capable to do partition of property with the death certificate and legal heir certificate. If the joint property is divided and there is no dispute as to division of land, the right can be transferred by a village officer or any other concerned authority.
In order to transfer/ inherit the duty of payment of land tax, the legal heir has to approach the concerned Taluk Office with the death certificate of the deceased and legal heir certificate along with an application for the same to the concerned officer. Taluk office will then revert to the village office after changing the thandaper or pattadar. Irrespective of the remittance of tax by the deceased, the legal heir shall remit the tax to imprint his/her name in the tax receipt.
What happens with NRI?
In a regular fashion NRI assets are inherited by creation will, whereas in the absence the legal heir shall approach Indian Courts to obtain succession certificate. The major documents to be produced in the court include death certificate of the deceased and birth certificate of the legal heir or the successor. In case, the deceased has written a WILL, then the successor for Probate in the concerned civil court. If the deceased has not appointed an executor, there comes the requirement of Letter of Administration through which the beneficiaries are given all the rights of the executor. It is obtained from a court of competent jurisdiction. The NRI successor can inherit from another NRI or Person of Indian Origin by adhering to the permission from RBI if the succession is to a foreign state citizen. The NRI can inherit from another NRI in case of repatriation by submitting proof of inheritance and amount shall be less than 1 million USD.
As already said, the structure of procedure to be followed for succession and transfer of movable and immovable property is the same across India but there are variations in the masculine part of the procedure, which vary with respect to regions and states. Considering this I have dealt the topic in general perspective. In India there is a huge bundle of administrative and legal formalities. The best way to tackle this dilemma is to engage a tax practitioner, a lawyer and a person from concerned municipality; so that they are well versed with dealing the same and your work will be completed in a short span of time.
Adv. Anu Bhuvanachandran is Partner, Outsay Legal. She practices at the Delhi High Court.
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LONG INTERVAL NEEDED FOR SMALL BUSINESSES TO BOUNCE BACK
The effects of COVID-19 were on all the sectors but it dreadfully impacted the small business and entrepreneurs. The widespread closing of stores and businesses in India and around the world due to the coronavirus is unprecedented. Stores, factories, and many other businesses have closed by policy mandate, downward demand shifts, health concerns, or other factors. Many of these closures may be permanent because of the inability of owners to pay ongoing expenses and survive the shutdown. The impact on small businesses around the world is severe.
The survey, conducted by data firm Dun & Bradstreet has shown 82 per cent of businesses have experienced a negative impact during pandemic year. The survey was conducted among over 250 companies, evenly split between the manufacturing and services industries, having a turnover of Rs 100-250 crore yearly.
Over two-thirds, or 70 per cent, said it will take them nearly a year to recover demand levels prior to Covid-19. Over the past year, India has emerged to be one of the worst-affected nations globally by the Covid-19 pandemic. The resultant lockdowns, which are springing up again across the country with rise in cases, have an impact on the economic front as demand disappears along with a dip in income generation.
Post-Covid, the majority of small businesses have been looking to sell themselves due to issues such as health issues, lockdown-related challenges, working capital issues, etc. Even as small businesses were hit hardest due to Covid, which reportedly led to the closure or temporary shutdown of some of these units, there is no official data on the number of such shutdowns.
Micro and small enterprises are looking to sell themselves, the scenario at the ecosystem level seems to be moving towards recovery. However, beauty & wellness, which included salons, apparel, footwear and jewellery were yet to catch up to the pre-pandemic levels of sale.
The Government realizes the difficulties faced by the business owners and start-ups to establish and run them. To ease the burden and encourage new business setup and startups, the Government has launched various schemes for business. The Union Government of India has launched schemes specifically for helping the business in India.
While it was difficult for smalll business to survive, as the consumers remained home to stop spread of virus, many had to go creative to run their business. Although many failed, others survived using their innovative operation plans .
REVERSE THE 32-YEAR EXILE OF KASHMIRI PANDITS
Kashmiri Pandits are longing to return to the Valley
If there is a consensus across all the national and regional political Parties in the Country that is for safe & secured return of seven hundred thousand exiled Kashmiri Pandit Community back in the Valley-Their Homeland.Why the current union and LG government does not act to facilitate the return,rehabilitation and empowerment of these aborigines natives back to their roots in Kashmir Valley is a big question.?This is the right time to Reverse their exile and restore their rights of life,liberty and spiritual heritage in their homeland.They urge the PM Act with large hearted ness and with pride to respect the national consensus.Modi Government needs to plan a time bound return action plan and demonstrate statesmanship as the late Prime Minister -Inder K. Gujral who said: “If the nation’s coffers have to be emptied for dignified return and rehabilitation of this illustrious community back in the Valley, still it would be a lesser price for their contribution towards modern Indian State.
It reflects badly on the current regime that Kashmir today is without Kashmir Pandits. Realities are, at times harsh and strange. Kashmiri Pandits, the aborigine of Kashmir, are out in exile, in this modern age of reason and enlightenment. The forced exodus of the Kashmiri Pandits in 1990, designed to effect the motivated ethnic cleansing, will go down in the history of these aborigines of Kashmir as a continuation of the persecution and genocide facing for hundreds of years and the atrocities were peaked during despotic rule of Muslim tyrant kings.
Acute fear and scare had been created which gripped the Kashmiri Pandits from September 1989 onwards after killings of prominent members of the community.
The local government abdicated its constitutional duties and left the citizenry at the mercy of the terrorists who killed scores of Muslims and Pandits.Gun wielding terrorists had a free play.Killing one and scaring a thousand was the strategy of terrorists for selective Pandits. in 1989-90 an orchestrated campaign was unleashed on the loudspeakers of mosques around -“O Kafiro Kashmir Chod Do. Pandits started feeling what they had felt when hounded by Afgans in the second half of the 18th century —-The killers roamed around unchallenged that created fear and dread in the city. The aborigines native exodus was engineered under a concerted plan scripted and executed by the local terrorists that created death,destruction and disorder dominant around.
The terrorists maimed, killed, lynched and looted a large number of Kashmiri Pandits. The terror-stricken Pandits ran for life, leaving their homes and hearths behind them.
They sought refuge in Jammu, Delhi and elsewhere in the country. The cleansing process was completed and now the Kashmir Valley has a very small number of Kashmiri Pandits
How will the present as well as future generations realise that Kashmir is the keystone of our heritage through millennia, finding mention even in our oldest scriptures?
Kashmiri Pandits have rich heritage and their roots are engraved in the soil of the Valley for more than five thousand years which can neither be destroyed nor obliterated by any power,more so by unleashing terror and vicious campaign. But the ground reality in today’s free India and new age of enlightenment is —Aborigines Kashmiri Pandit Community is in exile for last thirty two years(32yrs)
Kashmir was considered the abode of Saraswati, the highest seat of learning in India, and was also referred to as Sharda Peeth. So much so that students on graduating from Kashi would take four symbolic steps towards Kashmir, denoting their aspiration for higher learning. Almost the entire body of Sanskrit literature has its origins in Kashmir.
Rajatarangini, an authoritative historical tome on the royal lineage of Kashmir, written by Kalhana in the 12th century, outlines the greatness of King Lalitaditya, possibly the most powerful Indian emperor of all times, whose kingdom in the 8th century extended from the Caspian Sea in the north to the Kaveri basin in the south, and included Assam in the east. How many Indians have even heard his name? How many of us know that Srinagar was established by Ashoka the Great?
Mahayana Buddhism was spread across mid Asia, China and Japan by Kashmiri monks. Patanjali gifted his yog sutra to humanity his. Sarangadeva is considered the father of both Hindustani and Carnatic music. Acharya Abhinav Gupta, one of the greatest scholars of all times, wrote 46 literary classics, including the renowned Abhinav Bharti. His principles of ras are being taught in 80 universities around the world. But the irony is that they did not get any respite even in the bright days of the enlightened times, especially in the post-independent days of India.
Whatever be the vicissitudes of their history all pale into insignificance when we look at their present plight. The colossal crisis through which the exiled community or for that matter the entire Kashmiri society is passing through is in reality the crisis in the country’s great values — the perversion in practise of its constitutional jurisprudence, the socio-political and moral norms.
The native Kashmiris have entered in the 32nd year of exile. Pandits are longing for return to their roots. They say bidding farewell to the soil they have sprung from is too traumatic as experience to be conveyed in words. They always say — “we love our homeland and every inch of its bounteous soil has nourished us all”.The everyday resolve of these hapless Kashmiris is — strive, struggle and stop not till the exile is reversed and they return back to their homeland on their own terms.
The successive Central as well as state governments have done precious little for the return and rehabilitation of this community, which has contributed in a big way to the freedom struggle of India against the British imperialism, and also to the national reconstruction in the post-Independent era. It is a community whose history generates envy at their achievements as well as sorrow at their plight today. The long history of these exiled Kashmiris has been of triumphs and tragedies. The antiquity of the Kashmiri natives and its Aryan origin are well established. Human memory is short and so is, unfortunately, the memory of our leaders, especially of the current dispensation. It was I.K. Gujral as Prime Minister who said: “If the nation’s coffers have to be emptied for dignified return and rehabilitation of this illustrious community back in the Valley, still it would be a lesser price for their contribution towards modern Indian State.
From 1989-90 till date the exiled Kashmiri Pandit groups across the globe are relentlessly striving as a mission for reversal of exile and restoration of their roots There is no one at the political level, not even the PM and the home minister or at bureaucratic level, prepared to stick their neck out and assure and commit any actionable time bound plan to restore the homeland ,dignity and honour to Kashmiri Pandits.
After the inoperability of Article 370 and bifurcation of JK State into two Union Territories,hopes and expectations that the Current government would pay serious attention to the plight and future of Pandits were sadly belied. The government has not ever consulted the representatives of the exiled natives nor there is any governmental return module/plan in public domain.
The exiled Pandits have been waiting for 32years, hoping that the day of their return with honour, dignity and security to their homeland will come. It has not so far, despite claims of the considerable improvement in the ground situation.
In the meanwhile, the plight of Pandits has been slowly forgotten. Everybody sheds crocodile tears over their suffering, but there is nothing by way of action.
Rootlessness syndrome and despondency is fast gripping.The future of Pandits, as an important stakeholder and component of the Kashmir is less and less talked about.However the hope is never lost.History is replete Pandit’s have always returned back to homeland after every hounding out exodus by tyrant rulers.
There are attempts by various social groups and civil society activists to ensure that the promises made by the nation, to restore the honour and dignity of Pandits, are not forgotten. These groupings are interacting vigorously with leaders of the government,theOpposition political parties and the international public opinion leaders to ensure that this dimension of the Kashmir scenario is not forgotten. The socio-religious leadership of majority community and the groupings those who have for some reason have chosen not to be part of the mainstream are helpful factors towards the return of natives back home.
The return of Pandits to their homeland is achievable ,there is a national consensus and the people of Kashmir are in unison craving /asking for return of natives. The Government of India and the LG administration have to plan out a common and comprehensive return module and enforce the same in time-bound framework. New Delhi has a constitutional and political responsibility to and demonstrate a strong political will. It has to create infrastructures, housing colonies, etc, provide adequate jobs to the educated youth and secure all the religious places, cultural centres and endowments. The greater obligation on the Central and LG governments is to create a conducive economic and socio-political environment for reversing their exile and facilitate their safe and dignified return to their homeland. — their roots and homeland.
If not now then when is what KPs are asking on their exile entering today the 32nd.year.
SPICES BOARD OF CENTRE CONDUCTS MEETING WITH SCIENTIST COMMUNITY AND CHILLI CROP EXPERTS
Meeting done to chalk out strategies to tackle Thrips outbreak in chilli crop in Telangana and Andhra Pradesh. Chairman, Chilli Task Force Committee, G.V.L. Narasimha Rao, directs agricultural scientists to chalk out strategies to tackle the pest outbreak in chilli crops.
Severe Thrips attack in Chilli crops in Telangana and Andhra Pradesh has seriously affected the crop yield and the chilli farmers are highly distressed and worried about the crop loss, which will add on to their financial burden.
In order to chalk out ways to address the issue caused by the invasive Thrips species the Chairman, Chilli Task Force Committee, G.V.L. Narasimha Rao, MP, conducted a meeting with Scientist community and Chilli crop experts today. Organised by the Central Government’s Spices Board, the meeting was attended by eminent scientists from the ICAR- Indian Institute of Horticultural Research (IIHR), Dr YSR Agriculture University, ICAR- National Bureau of Agricultural Insect Resources (NBAIR), Indian Cardamom Research Institute (ICRI), Spices Board; officials from the Directorate of Plant Protection, Quarantine & Storage (DPPQS), New Delhi, Horticulture Department from States of Karnataka, Andhra Pradesh and Telangana and representatives from Chilli Seed Suppliers.
This video conference, chaired by GVL Narasimha Rao, was a follow up action to last month’s field visit to the pest-infested chilli farms led by him along with teams of scientists from institution and horticulture department to analyse the ground reality. Dr. A.B. Rema Shree, Director, Spices Board welcomed Shri Rao and experts and explained the gravity of the situation during the field visit conducted by a team of experts from IIHR, NBAIR, Spices Board, State agri / horti dept and other stakeholders in Chilli area. The field visits led by Shri Rao enabled the scientist communities to develop strategies / action plan to equip the farmers to prevent the further spread of pest attack and take precautionary measures to protect their crop.
During today’s meeting the detailed deliberation were made by the Crop experts and Scientists. Shri Rao requested the need for coherent and confluent approach to the deal the with attack from invasive pest Thrips parvispinus, in the states of Andhra Pradesh, Telangana, Karanataka other states, wherever this risk is prevailing. He emphasized to focus on developing advisories for farmers on Good Agriculture Practices, and recommend low-cost / affordable materials like blue sticky trap, cultivation of short duration chilli varieties, so that farmers can manage and survive the pest attack till a firm strategy against the pest is jointly prepared by the line departments and institutions. In meantime, Shri GVL Narasimha Rao, requested ICAR-IIHR to take the lead and analyse and screen for chilli varieties that are resistant to thrips attack from the affected plots in Andhra Pradesh and Telangana; he directed the IIHR entomologists to screen existing molecules which can be used against thrips and identify natural enemies of thrips with help of other institutes like ICAR-NBAIR.
The major reasons cited for serious infestation by invasive thrips were identified as the indiscriminate usage of pesticides, excessive application of Nitrogenous fertilizers, October-November rains, followed by hot and humid conditions which mediated triggering of thrips, replacement of common chilli thrips Scirtothrips dorsalis by invasive species – Thrips parvispinus, etc.
During the deliberations, the representative of State Agricultural Dept, Andhra Pradesh mentioned that the presence of thrips are now found in mango plantation also, which might affect the yield. It was also pointed out that the fields where the infested chilli crops were removed and Bengal Gram was grown, the latter crop also got infested with the thrips. The Deputy Director, State Horticultural Department, Karnataka mentioned that in major chilli growing belt in the state – Bellary and Raichur, the fruit rot is main issue and farmers have not been much affected by thrips attack, though it is equally damaging the chilli crop. The Director, Spices Board mentioned that due to fruit rot, the Board has received grievances from the Chilli manufactures that during value addition process, the final chilli product is losing its colour, which might affect the export of chilli from the country.
Citing all the observations made during the meeting, Rao asked IIHR and Spices Board to conduct joint training programmes to impart knowledge on Good Agricultural Practices by emphasizing on judicious usage of pesticides, use of Integrated Pest Management techniques, adoption of good hygienic practices in field to prevent as well as withstand the pest as well as disease attack. He also asked the two institutes to draw chilli samples from the market yards and test its quality to analyse and record how the pest and disease attack is affecting the quality of chilli as well as for recording the seriousness of pesticide residue in the final produce due to indiscriminate usage of pesticides from farmers to thrive the thrips attack. He asked the Joint Director (PP), DPPQS, to present the consolidated report by adding points suggested by the scientist community during the meeting, to the Secretary, Agriculture Ministry along with the report prepared by the DPPQS.
The meeting ended with request by GVL Narasimha Rao force to the scientists community to jointly work and share the details such as the publication of thrips attack worldwide in the various crops, the extent to which it caused damage, how the invasive thrip -’Thrips parvispinus’ was introduced in India, consultations with international pest management institutes to identify how various countries are tackling the issue, etc and prepare a consolidated report so that he can discuss it with Ministry of Agricultural and Farmers Welfare before the parliament session begins.
INDIA TO ADD 50 FRESH UNICORNS IN 2022: STUDY
In India more than 50 startups have the potential of entering the unicorn club in 2022 as showcased in a new study. This will take the total tally of India to well over 100 startup unicorns(those well valued over $1 billion each). The year 2022 has shaped up nicely to become a matrix and a petri-dish of startups and with each success the chances of others joining them becomes well over-precedent. The growth of startups can be attributed to various national economic policies and the ease of doing business norms. The shopping capabilities and buying parameters of the people also has to do a lot with this, the report by a consultancy firm suggested.
Amit Nawka, partner(deals and startup leader) in PwC India, which conducted the study said that, “ We can say that the base of these companies in growth stage and late-stage deals have improved have improved significantly in the calendar year 2021, depicting a stronger base of companies having the potential to reach the unicorn status. With market sentiments favourably inclined towards startups, and the large base of scaled startup companies at the end of CY21, we expect the startup’ unicorn tally to go well beyond 100 by the end of 2022.” Over $10 billion was invested in the Indian startup ecosystem in the October-December quarter alone, according to the report.
81 is the total number of startups in India as of now with a total valuation of 4274 billion. Of these 44 unicorns with a total valuation of $89 billion were born last year, shows data from Invest India, the national investment promotion agency. The PwC report shows that in the fourth quarter, startup funding crossed the $10 billion mark.
If we talk about categorisation, Fintech startups raised nearly four times more funds last year as compared to the previous year. Edtech followed closely with a growth of 86% compared to $2.2 billion raised in 2020. Software as a service came in a close third. Growth and late-stage deals comprised around 85% of the total funding. Among the most persistent and active investors were Sequoia Capital, Accel and Tiger Global. A December 2021 report by the Hurun Research Institute had mentioned that India is the third largest home for unicorns globally but trails the US and China by a wide margin.
Bengaluru and the Nation Capital Region witnessed nearly three-fourth of the total funding by venture capital and private equity funds, the report said. In its list of 50 potential unicorns it placed companies like Khatabook, Whatfix, Practo, Ninjacart, Inshorts, Pepperfry as among the candidates because of their history of having raised over USD 100 million to date.
Effect of high rated fuel on country’s economy
High fuel taxes combined with a recovery in international crude oil rates has affected millions of people, slowing down the recovery of the country. The price of petrol and diesel hits a new record everyday. In Mumbai, petrol can be bought at Rs 109.98 per litre and diesel costs Rs 94.14 for one litre as on 18th January.
Experts have warned that rising fuel rates could severely derail India’s economy, which is already under pressure due to the impact of the second Covid-19 wave. High petrol and diesel prices have not only impacted vehicle owners, but also people who do not own a car. Rising fuel prices have resulted in a sharp rise in retail inflation, making a host of essential commodities and services costlier for citizens.
Elevated tax levels are playing a major role in the current record high prices in India. The central government had last year increased levies on petrol by Rs 14 per litre and on diesel by Rs 16 per litre to shore up revenues as the pandemic forced a sharp slowdown in the economic activity. Central and state taxes currently account for about 53.5 per cent of the pump price of petrol and about 47.6 per cent of the pump price of diesel in Mumbai
The rising crude oil prices, and the higher taxation impact, have also contributed to the prices of petrol and diesel regularly setting new record highs across the country in 2021. Petrol in nation’s capital is priced at Rs 95.41 per litre while diesel in the national capital is retailing at Rs 86.67 per litre. India has seen a faster recovery in the consumption of petrol than of diesel after pandemic-related restrictions with petrol consumption up 9 per cent in September compared to the year ago period but diesel consumption remaining 6.5 per cent below 2020 levels. Diesel accounts for about 38 per cent of petroleum product consumption in India and is a key fuel used in industry and agriculture.
India has long pushed for Middle eastern countries to remove the Asian premium that Asian countries have to pay for crude oil as key oil producers set higher prices for India than for the US and European countries. Despite a 40 cent per barrel cut in the official selling price of light crude to Asia, Saudi Arabia is still charging a $1.30 premium on the benchmark price for light crude sold to India compared to a $2.4 discount on the benchmark price for European customers.
Experts have noted that countries like India do not have much bargaining power in the current market scenario where supply is lower than demand and that India’s bargaining power may be reduced further if we try to further diversify crude oil procurement. Also, the level of output and pricing benchmarks are decided by cartels such as OPEC.
So, Experts believe that the government should cut excise duty to some extent as it will provide some relief to customers and lead to higher sales and revenues which will accelerate the economy. But economic recovery will become tricky if the government continues to ignore rising fuel prices. If the commodity becomes too expensive, it would see a sharp decline in revenue.
India-born top the list of founders among US unicorns: Study
It is not only in India but in the US too that Indian founders are creating unicorns.
A study by Professor of Finance at Stanford University’s Graduate School of Business, Ilya A. Strebulaev researched that 90 out of 1,078 founders and entrepreneurs across 500 US unicorns were born in India which signalled a significant presence of Indian-Americans in the country’s startup and tech economy. He tweeted that, “Over four out of ten unicorn founders are first gen immigrants”. Indian born founders were followed by the ones from Israel and Canada with 52 and 42 founders respectively.
Some of the Indian origin founders of prominent unicorns include: Rohan Seth of Clubhouse, Baiju Bhatt of Robinhood, Dheeraj Pandey, Mohit Aron, Ajeet Singh of Nutanix, Apoorv Mehta of Instacart, Aayush Phumbhra of Chegg, among many others.
The research undertaken by Strebulaev is ripe at the time when India based technology want to return back home. Indian immigrants in the US are increasingly leaving their American dream behind because of visa issues and also because of the allure of a thriving startup culture in the home country. America has had a history of extremely successful Indian-origin entrepreneurs including Kanwal Rekhi, Pramod Haque, Sanjay Malhotra among others. India born executives are not only fueling the startups of the US but they are the executives of the most powerful tech giants.
U.S based Kaufman Foundation 33.2% of the co-founders of technology and engineering founded by immigrants in the US were Indians. Kaufman Foundation found out that Indian immigrant contribution in tech and startup industry was the only one that increased, all other immigrant contributions saw a decline. Another finding showed that 33 of the top 50 AI companies have at least one first generation immigrant founder. And 53 of the 125 founders are first generation immigrants. India and Israel were the largest senders of immigrant AI founders followed by the UK, China and Portugal.
India has a vibrant and an ever growing startup ecosystem. A recent report by venture capital fund Orios Venture Partners said Indian startups raised $42 Billion in 2021 up from $11.5 Billion in the previous year. The newly minted unicorns include ShareChat, Cred, Meesho, Moglix, MPL, Grofers(now blinkit), upGrad, Mamaearth, Acko, Spinny and others. India with 90 unicorns is the third largest unicorn hub behind the US(487) and China(301) and ahead of the UK(39). According to the report Flipkart was the most valuable unicorn($37.6 Billion).
India has seen four decacorns(companies with a valuation of USD 10 billion and above) so far- Flipkart, Paytm, BYJU’s and Oyo Rooms. While Bengaluru was the ‘Unicorn Hub’ with 18 unicorns emerging from the city in 2021 and 35 in all. It also happens to be the seventh largest unicorn city in the world.
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