Newsmakers: HSBC on GDP growth, Panama Papers and more

Multi-agency team to probe money stashed abroad
With 500 Indians being named in leaked 'Panama Papers' for alleged offshore holdings, government on Monday formed a multi-agency group to monitor exposes in this regard and vowed to take action against all "unlawful" accounts held abroad. Finance Minister Arun Jaitley said Prime Minister Narendra Modi discussed the issue with him this morning and on his advice the group has been set up comprising agencies like CBDT, RBI and FIU (Financial Intelligence Unit).

Tax adventurism will prove extremely costly: Jaitley
Amid reports of some Indians having unaccounted wealth in tax havens, Finance Minister Arun Jaitley said on Monday those who did not take advantage of the compliance window last year to declare illegal assets abroad will find such adventurism extremely costly. The minister said global initiatives to deal with the menace of unaccounted wealth abroad will be in place by 2017, and then it would become extremely difficult for individuals to hide assets.

GDP growth to remain flat at 7.4% in FY17: HSBC
India is likely to clock GDP growth of 7.4 per cent in the current fiscal and consumption is likely to be the main driver of growth in the foreseeable future, says an HSBC report. According to the global financial services firm, investment cycle revival is not expected to happen quickly or easily and the country is likely to see a consumption driven economic growth model.

PM Modi says GST about to happen; retro tax thing of past
Wooing investors with promise of an easier business environment and stable tax regime, Prime Minister Narendra Modi said retrospective taxation has been made a thing of the past but he is "not able to do anything" on two cases inherited from the previous government as they are "sub-judice". Inviting Saudi businesses to come and invest in India's defence, energy, railway, health and agriculture sectors, Modi also said that a common indirect taxation regime in form of GST (Goods and Services Tax) was "about to happen". He, however, refrained from giving any specific timeframe.

Sensex rises 130 points ahead of RBI policy
The S&P BSE Sensex gained 130 points in trade on Monday, while broader CNX Nifty jumped above its key 7,750-mark ahead of RBI monetary policy to be announced on Tuesday at which it is expected to cut interest rates by at least 25 basis points. The headline indices rallied tracking mixed trend seen in Asian markets after solid US payroll data underpinned investor risk sentiment while dovish comments from Federal Reserve Chair Janet Yellen limited expectations of a near-term interest rate hike.