The year 2016 was critically important in determining India's economic growth; while some business events ensured economic destabilisation of an entire country, others forecasted robust growth momentum supported by expectations of a rebound in the economy. All in all, this year India has seen tremendous advances on the economic front.
From strengthening international economic alliances to sustaining a growth rate of over 7.5 percent in the midst of a bleak global economy, our country has made its mark in the world. As we close this year, let us look back at the significant events that have shaped business and finance in our country.
India's First Gold Mine Auction
On February 26, 2016, Vedanta Private Limited won the country's first ever gold mine auction. The Baghmara gold mine in the state of Chhattisgarh was put up for auction in an effort to open up the sector to private companies. Vedanta had quoted the highest bid equal to 12.55 percent of the Indian Bureau of Mines' price.
Vijay Mallya Left India
Debt-riddled Indian entrepreneur Vijay Mallya escaped prosecution and punishment back home by leaving the country on March 2, 2016. His departure led to much political mayhem and disappointment for Indian banks, which had hoped to recover some of the loans made to him. According to news reports, the liquor baron owes something between Rs 7000 crore and Rs 9000 crore to Indian banks.
Punjab Food Scam Unveiled
Sahara Land Put Up For Sale
On May 30, 2016, HDFC Realty and SBI Capital Markets announced India's largest ever pan-India land sale. About 4,700 acres of land owned by the Sahara Group in 14 states of the country was put up for sale. The auctioneers received the go ahead from Securities and Exchange Board of India (Sebi) to auction these 60 properties and raise about Rs 65000 crore.
Flipkart Acquired Jabong
RBI Gets A New Governor
Reliance Jio Services Launched
GST Gets President's Approval
Union & Rail Budgets Merged
Doing away with a 92 year old practice, the Indian government decided to merge the Union budget with the Railway budget starting next year. On September 21, 2016, the cabinet approved the merger and also approved of advancing the date on which the union budget is unveiled each year. The budget will now be presented on February 1 each year.
ATM Security Breach Revealed
Cyrus Mistry Ousted As Executive Chairman of Tata Sons
Sending shock waves through the corporate world, the board of Tata Sons announced the removal of Cyrus Mistry as its Executive Chairman and instated Ratan Tata as its interim Chairman on October 24, 2016. While initials rumours suggested that there was a clear difference in work ethics between Mistry and the Tatas, the company may see a long drawn legal battle over the issue.
PM Undertakes Demonetization Drive
On November 8, 2016, Prime Minister Narendra Modi undertook what has been called surgical strikes against the menace of black money. The PM announced the demonetization of Rs 500 and Rs 1000 notes with immediate effect sending the country's banking systems into a deep state of chaos. Crowds have been seen thronging banks and ATMs ever since in an effort to exchange the old notes. New 500 and 2000 currency notes have been introduced.
