GG News Bureau
New Delhi, 16th Jan. Some trouble-making countries, particularly China and Pakistan, are not pleased with Bharat’s economic success. However, certain friendly countries of Bharat are occasionally implicated in this anti-Bharat propaganda. Overall, global market forces have grown active nowadays, attempting to affect Bharat’s economic advancement. These powers are attempting to rip apart the social fabric of Bharat as well as assault India’s cultural unity, causing a rift in Bharat’s social peace, so that Bharat would suffer economic as well as political consequences.
The handiwork of the Chinese business Vivo
Despite the foregoing, some Chinese enterprises and global market forces continue to attempt to influence the Bharatiya banking, insurance, and stock markets. Recently, a Chinese business named Vivo fraudulently transferred a large sum of money from Bharat to its headquarters in China. The aforementioned amount was transferred through money laundering without paying any taxes.
Vivo, a Chinese smartphone manufacturer, has illegally transferred 50% of its total revenue, or Rs 62,476 crore, to its headquarters in China. This corporation did not pay tax on this amount despite dodging tax under Bharatiya rules. The Enforcement Directorate has launched a thorough investigation into the massive misappropriation and has arrested several of the company’s top personnel. The Enforcement Directorate has banned 119 of the company’s accounts, which include Rs 495 crore in deposits. Vivo has 23 subsidiaries in Bharat. Vivo Company believes that because certain of its subsidiary firms are losing money, no tax has been paid by adjusting Vivo Company’s profit against the loss recorded by these companies. However, several forms of irregularities have been discovered in the foundation of these subsidiary firms. Foreign powers are thereby harming Bharat’s economic interests by failing to pay taxes on profits gained while doing business in Bharat as required by law.
ED tightening its grip on Xiaomi
Similarly, in April 2023, the Enforcement Directorate confiscated Rs 5,551 crore from another Chinese business named Xiaomi for failing to observe foreign exchange norms. In comparison to Bharatiya banks, foreign banks lag behind.
There are 45 foreign banks operating in Bharat, whereas there are 137 government, private, payments, and small finance banks. However, foreign banks account for only approximately 5% of total deposits in Bharat and only 3.8% of total loans. Foreign banks are unable to compete with Bharat’s governmental and private sector banks. Because of the Reserve Bank of Bharat’s vigilance, international banks must conduct banking activity in accordance with the tight restrictions that apply in Bharat, which these banks may not like. As a result of this and its failure to expand, Citibank was obliged to sell its consumer banking business to Axis Bank of Bharat in 2022-23. South Africa’s Bank First Rand discontinued its Bharat operations in 2021, and Royal Bank of Scotland did the same in 2016. In 2015-16, HSBC shuttered many of its branches in Bharat. Barclays, a British bank, ceased retail operations in Bharat in 2012.
Bharat’s banking sector is robust
In fact, Bharat’s banking, insurance, and stock market sectors are now highly robust. The primary reason for this is that these three sectors are dominated by Bharatiya banking institutions, Bharatiya insurance companies, and Bharatiya investors. Even if foreign institutional investors withdraw their investments from the Bharatiya stock market, the impact on the Bharatiya stock market appears to be minimal because Bharatiya institutional investors and various Bharatiya mutual funds compensate for the amount withdrawn by foreign investors. They promptly increased their stock market investment. Otherwise, global market forces will stop at nothing to influence and pull down the Bharatiya stock market.
Bharatiya banks hold more than 95% of the market
Similarly, in banking, Bharat’s public and private sector banks account for more than 95% of the market, while in insurance, Bharat’s public and private sector insurance companies account for over 90% of the market. Second, Bharat restricts foreign corporations’ stakes in Bharatiya banking companies to 24% although foreign companies can invest up to 74% in Bharatiya insurance companies. Third, the RBI’s stringent implementation of corporate governance requirements by various financial institutions contributes to effective control over international banks and insurance businesses.
Global market forces, including countries such as China, are constantly attempting to destabilize Bharat’s financial sector; however, due to the vigilance of Bharatiya banking, insurance, and stock market regulatory institutions, global market forces, including foreign financial institutions, have been unable to influence all three sectors.
