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Uncertainty over $8 billion deal

The strained relationship between India and Canada is also beginning to have an impact on business activities. JSW Group's plan to buy Canada-based Tech Resources' coal plant has been derailed by deteriorating relations between the two countries. The value of this coal plant was fixed at 8 billion dollars. A bank official aware of the deal said the group is in talks with banks in Europe and Japan to raise the funds needed to acquire the company. But the deal doesn't seem likely to go ahead, at least for now, after an escalating diplomatic spat between India and Canada. The acquisition plan may not have been canceled due to the diplomatic row between the two countries, but it has certainly been delayed. JSW was going to invest $2 billion on its own and was working on a plan to raise the rest from its other partners. The deal would require multiple levels of approval from the governments of Canada and India, but now the changed circumstances have increased uncertainty.

The largest university hub in the country

The country's largest university hub is going to be established in the Yamuna Authority area near Greater Noida. The Yamuna Authority has already allotted land to 5 institutions to build the university. Through this scheme five more institutes will be allotted plots for making universities. It is being said that under this scheme foreign universities will be given priority to set up their campuses here. At least two or three plots out of these five will be allotted to foreign universities. The conditions of this scheme will be kept in such a way that major educational institutions can be established in Yida city. Yida City is being developed with planning. Here the emphasis is on setting up large educational institutions. Many other types of projects are being brought up in Yida City. Including medical device park to toy park, apparel park, leather park, semiconductor park, cyber city, all kinds of hotels, industries, warehouses, logistics hubs, commercial hubs, Japanese and Korean cities, film cities and other projects.

Indo-Canada Dispute: Impact on Education and Tourism Industry

The impact of the growing diplomatic dispute between India and Canada is visible only on the education sector and the travel related industry. Now students, travel industry, education sector have also started expressing their concern on this issue. Education counseling agencies said many students and their parents are calling them in panic. These are the people who have registered themselves for admission in September season and winter season (January) for higher education in various Canadian universities. According to data from Immigration, Refugees and Citizenship Canada (IRCC), of the total 5,51,405 foreign students in Canada in 2022, about 41 percent or 2,26,450 students were Indians. India announced the suspension of visa services for Canadian citizens, raising concerns among Indian students and other visa applicants. The Federation of Associations in Tourism and Hospitality said, 'The current situation will affect tourism. Many people have already booked. Passports of many have fallen in embassies. Many flights may also be cancelled. People are very worried considering the situation. The Indian Association for Tour Operators said, 'There is no clarity on whether travel will be suspended or not, especially for those who already have visas. We are also waiting for a clear message. It is also not easy for Canada to close its doors to Indian students and tourists as it is India's major contributor to their income.

Changes in household savings patterns due to changing preferences

The Finance Ministry has clarified that there is no pressure on household savings. The government said the data suggests that changing consumer preferences regarding various financial products have led to changes in household savings patterns. This clarification from the government comes after data released by the Reserve Bank of India showed that the net domestic financial savings rate was at a multi-decade low of 5.1 percent of GDP in FY23, down from 5.1 percent in FY22. Data on changes in the total financial assets and liabilities of households is not a concern for the government as large amounts of loans are being taken to buy real estate and automobiles. Housing loans have been experiencing double digit growth continuously since May 2021. In such a situation, the financial responsibilities are increasing in the purchase of real estate. Vehicle loans have been growing in double digits annually since April 2022. It is clear that there is no pressure on the household sector. People are buying vehicles and houses by taking loans. Households in FY21 spent Rs. 22.8 lakh crore of net financial assets, which in FY22 was around Rs. 17 lakh crore and in FY23 Rs. 13.8 lakh crores.

GST collection target will be achieved

The hike in Goods and Services Tax (GST) collections will continue for the rest of the year. GST collection per month till August in the current financial year is Rs. 1.6 lakh crore has been more than. A record tax of 1.87 lakh crore was received in April. This shows that the revenue collection has increased as compared to last year. GST revenue is expected to increase further due to increased demand during the festive season. Given the increase in tax collection and the festive season, I think we will achieve the estimated target in terms of GST revenue. The revised estimate will be prepared around January next year. 5 Central excise duty is levied on petroleum products, but most of the tax comes from fuel products.

American companies turning away from China

Relations between China and the United States are clearly strained. This is having an impact on American companies operating in China. These companies believe that the strained relationship between the US and China is the biggest obstacle to their business. American companies operating in China see tensions with America over technology, trade and other issues as a major obstacle to their business. This has been revealed in a recent survey. According to a survey conducted by the American Chamber of Commerce in Shanghai, China's reputation as a foreign destination for investment continues to decline. However, two-thirds of the 325 companies surveyed said they had no immediate plans to change their China strategy. More than one in five companies surveyed said they are reducing their investment in China this year, largely due to uncertainty in the US-China trade relationship and forecasts of slower Chinese growth. The survey found that such disruptions were the top reason for companies to expand their operations outside of China.