Indian Holocaust My Father`s Life and Time- Two Hundred Fifty Eight
Palash Biswas
http://indianholocaustmyfatherslifeandtime.blogspot.com/
Chawla hints at stimulus exit as economy hits high-growth pathEconomic Times - 14 hours ago Incidentally, different voices have been heard from the various quarters in the government on the with-drawal of the stimulus. "You can be sure that Indian ... Continuing stimulus bad for economy: Finance secretaryHindustan Times - Jan 6, 2010 The government on Wednesday indicated that continuing with the economic stimulus package would not be good for the economy, even as the Indian industry ... RPT-India should not withdraw stimulus till June-trade Reuters India India expects to surpass China's growth in 4 years Global Times India's Food-Price Inflation Holds Near 11-Year HighBloomberg - - 4 hours ago ... fiscal and monetary stimulus of more than 12 percent of gross domestic product between September 2008 and April last year, helping India's economy to ... Pak not to guarantee gas flow to IndiaChandigarh Tribune - 18 hours ago December 2008 through February 2009, the Centre extended a slew of stimulus measures to help revive the economy. On the taxation side, beginning December, ... Indian economy to grow in real terms by 7.5% in FY10Myiris.com - 1 hour ago These factors would provide a significant boost to the economy in FY11 over FY10 more than nullifying the impact of partial withdrawal of stimulus measures ... Clamour for stimulus status quoCalcutta Telegraph - Jan 5, 2010 She said, "Withdrawal of stimulus could be counter-productive to recovery. "Fiscal deficit is not only the government's headache but it also affects Indian ... FM to meet India Inc in run up to the budget Moneycontrol.com AK Bhattacharya: Which way will he turn? Business Standard India rupee seen up for 4th day on weak dlrReuters India - - 11 hours ago ... policy meeting suggested the possibility of more stimulus measures for the US economy, while the Australian dollar jumped on strong retail sales data. ... Pranab warns against hasty end to stimulus packagesEconomic Times - Dec 30, 2009 On the Indian economy, he said that stimulus packages are projected to widen the fiscal deficit to 6.8% of GDP this fiscal. He reiterated that this kind of ... Fiscal deficit can't be sustained for long: Pranab Hindu Business Line 'India can top China's growth by 2014'Financial Express - Jan 4, 2010 Basu said the government's stimulus package had helped the economy, adding, "India does stand out as an economy that has handled the crisis very well." Gujarat is a capital of India's entrepreneurs:Uday KotakDeshGujarat - 3 hours ago "Domestic consumption and proper infrastructure are the key factors to propel the Indian economy into the higher growth trajectory. ... | |
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Stimulus may refer to:
* Stimulus (physiology), something external that influences an activity
* Stimulus (psychology), a concept in behaviorism
* Input to a system in other fields
* Economic stimulus:
o For government spending as stimulus see Fiscal policy
o For an increase in money designed to speed growth see Monetary policy
o For general information about economic stimulus see Stimulus (economic)
http://en.wikipedia.org/wiki/Stimulus
Indian Economic Stimulus Package
Indian economic stimulus package was announced in December 2008 to cushion impact of global financial crisis. National government announced an economic stimulus package of $4 billion to shield its economy from recession. A substantial increase in government expenditure coupled with a cut in interest rates by Reserve Bank of India aim towards raising aggregate demand.
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A number of incentives have been announced in economic stimulus package of India. These have been drawn up by government to infuse a sense of optimism in minds of investors and industrialists. Incentive schemes in Indianeconomic stimulus amounting to $70 million have been allocated to boost exports. Measures have been taken to boost exports of labor intensive commodities like textiles and handicrafts to provide stimulus to Indian economic retrieval. Lending rates on housing loans for low and middle income segments have been reduced. Medium and small businesses are being provided tax exemptions and tax holidays. Value added tax has been cut at different levels and across products to increase spending. Reserve Bank of India has reduced its lending rate to 6.5% and its borrowing rate to 5%.
Central Value Added Tax (CENVAT) reduced by 4%, has brought down prices of cement, textiles, and cars. CENVAT on non-petroleum products has been slashed by up to ten percent thereby significantly affecting Indian economic recovery. Customs duty on naphtha, an intermediary product for power industry, has been completely revoked. To provide an impetus to export, duty on export of iron ore fines have been removed and levy on iron lump exports has been cut from 15% to 5%.
A 10-point India economic stimulus package program, charted by Prime Minister Manmohan Singh, is targeted at reviving most badly affected sectors of Indian economy like housing, automobiles, infrastructure, power and medium and small industries. A funding of Rs.300 billion has been earmarked for this. An additional funding of Rs.100 billion in form of tax free bonds has been earmarked for India Infrastructure Finance Company Limited. Montek Singh Ahluwalia, Deputy Chairman of Planning Commission, has commented that this 10-point package is set to force manufacturers to operate in a competitive environment and pass on taz benefits to end users.
http://www.economywatch.com/economic-stimulus-package/indian.htmlCentral Value Added Tax (CENVAT) reduced by 4%, has brought down prices of cement, textiles, and cars. CENVAT on non-petroleum products has been slashed by up to ten percent thereby significantly affecting Indian economic recovery. Customs duty on naphtha, an intermediary product for power industry, has been completely revoked. To provide an impetus to export, duty on export of iron ore fines have been removed and levy on iron lump exports has been cut from 15% to 5%.
A 10-point India economic stimulus package program, charted by Prime Minister Manmohan Singh, is targeted at reviving most badly affected sectors of Indian economy like housing, automobiles, infrastructure, power and medium and small industries. A funding of Rs.300 billion has been earmarked for this. An additional funding of Rs.100 billion in form of tax free bonds has been earmarked for India Infrastructure Finance Company Limited. Montek Singh Ahluwalia, Deputy Chairman of Planning Commission, has commented that this 10-point package is set to force manufacturers to operate in a competitive environment and pass on taz benefits to end users.
Pranab Mukherjee: Indian economy needs stimulus packages
Posted on, Monday, November 16, 2009
He is India's Finance Minister and is hopeful of a gradual recovery of Indian economy from the impact of global financial meltdown. But till the time, Indian economy completely comes out of recession blues, he wants to continue with the stimulus packages for the troubled sectors.
He also has an eye on the recovery in the global economy, particularly the western countries as exports constitute about 17 per cent of India's gross domestic product.
Pranab has just returned from the G-20 meeting of finance ministers in Scotland, where they discussed the current economic conditions and ways to tackle the global financial meltdown.
India is also suffering a loss in exports, as Europe, Japan and North America account for around 60 per cent of its exports.
Till the global economy comes on the right track, Indian government is likely to continue with its stimulus measures to maintain the current pace of growth.
However, India's PM Manmohan Singh has already stated that the stimulus measures would be pulled back by the next year.
As far as the current fiscal is concerned, India's growth rate is likely to be around 6.3 per cent, while it was 6.7 per cent during 2008-09.
Till 2007-08, Indian economy was riding on the waves of glottalization and privatization, and had touched 9 per cent mark for three straight years.
However, after the knock of slowdown on the door of Indian economy, demand of products and services went down drastically, and companies also cut down on their production to match the fall in the demand.
The economy has started showing signs of revival from the economic downturn, and the fact is also evident from the recently released quarterly results of Indian companies which have been termed as 'better-than-expected'.
Pranab also sees the growth rate to hit 9-10 per cent target towards close of the 11th Five Year Plan.
We also hope for a quick economic revival, but till the time things happen, we have no option but to rely his words and actions.
http://www.paisawaisa.com/community/pressrelease/articlesdetail.aspx?PReleaseId=eKFaPfZh1Wz24gJMFt0YCw==
Pranab warns against hasty end to stimulus packages
NEW DELHI: India has cautioned against an immediate withdrawal of stimulus packages by governments across the world as it may lead to a 'collapse
"Immediately coming out of the stimulus package ... exit policy may not be the correct approach because in that case if the world economy collapses the depression would be deeper," finance minister Pranab Mukherjee said on Wednesday at a Corporation Bank function. He was recalling his interaction with Japanese Prime Minister Yukio Hatoyama on Tuesday.
Later, when asked if he was hinting at a gradual withdrawal of stimulus packages, Mr Mukherjee said, "I am not hinting at anything. What I told (Japanese Prime Minister) was that we shall have to strike a balance between the requirement of the economy and the capacity of the economy to bear this level of fiscal deficit and borrowing."
The finance minister said he has told Japanese Prime Minister that countries have spent huge amount of money in stimulus packages to help the economies which has resulted in high fiscal deficit in almost every country and also greater borrowing which have propensity to leave little resources to the private sector.
On the Indian economy, he said that stimulus packages are projected to widen the fiscal deficit to 6.8% of GDP this fiscal. He reiterated that this kind of fiscal deficit cannot be sustained for a longer period.
The FM said he has target for fiscal deficit for the year 2010-11 and year 2011-12.
The government intends to bring down fiscal deficit to 4% by 2011-12 even though it is projected to widen to an 18-year high in the current fiscal.
In his Budget speech this year the Finance Minister had said, "I intend to... return to the FRBM target for fiscal deficit at the earliest and as soon as the negative effects of the global crisis on the Indian economy have been overcome."
Mukherjee said huge amount of borrowing could leave little resources for the private sector in the markets and they may not get adequate credit.
The government is scheduled to borrow Rs 4.51 lakh crore from the markets, most of which has been raised so far.
http://economictimes.indiatimes.com/news/economy/finance/Pranab-warns-against-hasty-end-to-stimulus-packages/articleshow/5397513.cms
Indian economy needs more stimulus in 2009-10: Ahluwalia
Press Trust of India / New Delhi March 28, 2009, 14:37 IST
The Indian economy needs more stimulus in the next fiscal to counter the impact of global economic slowdown, Planning Commission Deputy Chairman Montek Singh Ahluwalia said today.
"We need a little more stimulus in 2009-10. But there are certain issues which have to be taken up," Ahluwalia said on the sidelines of a function here.
About the GDP growth projection by the Planning Commission, Ahluwalia said multiple models have been used to derive the figures and have been suggested to the Prime Minister.
"We have sent a note to the Prime Minister. Planning Commission dosen't have any projection. What we said to the Prime Minister-- we used multiple models to know what is likely to be growth rate next year," he said.
"There is certain base level of growth which we thought was around 9 per cent. Then you knock off from the growth the affects of shock. Then we add to it the affect of the positive stimuli... So there are different numbers depending on the affects of shock and stimulus measures," he added.
Earlier, Ahluwalia projected a growth rate slightly less than 7 per cent in the current fiscal and the next fiscal.
"We are likely to get a growth rate less than 7 per cent... Between 6.5 and 6.7 per cent in 2008-09," Ahluwalia had said.
On market borrowings impacting the interest rate, Ahluwalia said, "If you borrow it can only raise the interest rate for any given level of monetisation. Markets borrowings are not zero anyway."
Market borrowings, he said, "has always been market borrowings and there will be market borrowings."
"The impact of the exchange rate is the function that whether monetary policy accommodates the borrowing or not. So its not that market borrowing increases and interest rates go up. It is based on how much you borrow and tighten and interest rates will go up," he added.
Earlier addressing a function on "Competition and Regulation in India" by CUTS international he suggested assessment and ranking of state electricity regulatory authorities by the industry body CII or other bodies and replicating it in all states based on best practices.
http://www.business-standard.com/india/news/indian-economy-needs-more-stimulus-in-2009-10-ahluwalia/57498/on
Govt to announce stimulus for select exporters soon
Nayanima Basu / New Delhi January 7, 2010, 0:43 IST
Decides to provide extra helping hand after a sectoral review
The commerce and industry ministry will unveil a stimulus package within the next few days for select export sectors, which continue to suffer even as the overall export situation has shown signs of revival.
The incentives would only be meant for those sectors that have failed to show significant improvement despite sops from the government earlier.
The government had initiated a sectoral review in November to assess the impact of stimulus measures to exporters. The sectors that have shown clear signs of revival during the last three months are petroleum products, engineering goods, drugs and pharmaceuticals, leather manufactures, gems and jewellery and readymade garments.
"The sectoral review exercise is over. We have made an assessment and we will soon announce incentives for those sectors which continue to lag and suffer because of demand recessionary conditions notwithstanding what has happened in the last 14 months. For those sectors, we will provide an extra helping hand," Commerce Secretary Rahul Khullar told Business Standard.
He, however, declined to identify those sectors. But according to official sources, the incentives could be provided to sectors like textile, leather, handicrafts, cotton yarn, jute, minerals and fruit and vegetables in the form of extension of some of the benefit schemes or increasing duty drawback rates.
The stimulus could be in terms of providing more benefits under the Focus Products Scheme (FPS) and Focus Market Scheme (FMS), besides offering greater support through market development assistance and market access initiatives that would enable the exporters market their products more.
Commerce and Industry Minister Anand Sharma had earlier said the government would not hesitate to provide some extra benefits to those sectors which continue to decline and suffer huge job losses. He had also said that the ministry would take as many initiatives as possible to bring export growth back to a rate of 15 per cent by 2010-2011 and 25 per cent thereafter.
"Most of the manufacturing sectors still require some support from the government. We are looking forward to some more measures. Some of the incentives schemes should also continue," said A. Sakthivel, president, Federation of Indian Export Organisations.
Exports had been plummeting by more than 12-15 per cent since October last year. Earlier, exports were rapidly inching towards a 40 per cent decline during April-May. However, there has been a sharp recovery from June onwards.
Last month, exports registered positive growth for the first time in 13 months, reaching $13.2 billion (about Rs 60,450 crore) from $11.16 billion (about Rs 51,110 crore) in November last year. However, overall exports during April-November still showed a decline of 22.3 per cent at $104.2 billion (about Rs 4,77,230 crore), compared to $134.2 billion (Rs 6,14,630 crore) during the corresponding period in 2008-09.
Minister of State for Commerce and Industry Jyotiraditya Scindia had said in November that some part of the Budgetary allocation was kept aside that would be disbursed after a mid-term analysis.
The government had so far announced three stimulus packages — in December 2008, January 2009 and in the Interim Budget in February — for slowdown-hit industries, including the export-oriented sectors.
Besides, some specific incentives were also given to the exporters in terms of continuation of the Duty Entitlement Passbook Scheme, enhancement of duty drawback benefits, zero duty on Export Promotion Capital Goods scheme and additional funds towards providing guarantee by the Export Credit Guarantee Corporation.
In addition, the Reserve Bank of India also took a series of steps to reduce credit cost and infuse more liquidity into the banking system by reducing the key policy rates.
BREATHER ON ANVIL
* Stimulus to be for the select export sectors that continue to suffer even as the overall export situation has shown signs of revival
* The govt had initiated a sectoral review in Nov to assess the impact of stimulus measures to exporters
* According to ministry officials, incentives could be provided to sectors like textile, leather, handicrafts, cotton yarn, jute, minerals and fruit and vegetables
* Sops would be in the form of extension of some of the benefit schemes or increasing duty drawback rates
* Benefits under the Focus Products Scheme and Focus Market Scheme and greater support through market development assistance could be provided
http://www.business-standard.com/india/news/govt-to-announce-stimulus-for-select-exporters-soon/381940/
Michelle Obama 'struggles to maintain domestic bliss'
Seeing is not always believing!
Yes, the US First Couple may be the poster pair for the perfect marriage but Michelle Obama has for the first time revealed that she and her husband Barack also struggle to maintain domestic bliss.
However, the 45-year-old First Lady has admitted that the secret to their success is to keep their troubles behind closed doors.
"The truth is that everybody struggles with it - we just don't talk about it," the Daily Express quoted her as saying.
Aside from family life in the White House, Michelle has said that she's learned how to tell when the stress of being President is getting to her husband.
"When he's really sort of brooding about something, it's late at night and there's a lot of little note-writing going on... that's when I know," she said.
Source: PTI
Finance Ministry seeks Idiot's tip to tackle Budget blues, MSNINDIA reports.
New Delhi: As the Ministry of Finance gets into the Budget mode, its officials perhaps want to tell themselves, "All is well". So, they have none other than Aamir Khan, alias Rancho of recent Bollywood blockbuster 3Idiots, talking to them this weekend on Cinema and Society . The Aamir Khan talk is part of a three-day retreat, which will take the Finance Ministry officials away from the dry world of files and bring them back "refurbished", albeit, within the same opaque walls of North Block, which has turned even more secretive this week in the run-up to the Budget.
"The idea is to have just self-reflection and camaraderie among the officials," said a senior finance ministry official. Khan will not be charging anything from the Ministry, as he is "coming as a goodwill gesture". Around 80 officials -- from the level of deputy secretaries and above -- in the departments of economic affairs and financial services would take part.
"Cinema is an important part of the society. We wanted a cerebral film personality to hold the workshop. Last time we had invited Shekhar Kapur," said the Finance Ministry official.
The offsite programme will be held at the National Institute of Financial Management in Faridabad, courtesy the ongoing austerity drive, from January 8 evening. The previous two annual retreats were held at the popular tourist spots of Surajkund and Sohna near Delhi.
http://news.in.msn.com/business/article.aspx?cp-documentid=3517099
Human FEED for Killer MONEY Machine as STIMULUS to continue!On the other hand, With food inflation at an 11-year high, agriculture experts today asked Finance Minister Pranab Mukherjee to address supply constraints by encouraging private sector to set up storage facilities for farm produce and incentivising direct buying from farmers.On the other hand it is quite a FUN to note that Too Much Stimulus Can Harm Economy, Says India's Finance Ministry!Amidst the growing industry pressure to continue with the stimulus measures, the Indian Finance Ministry on Wednesday said too much support is not desirable and can harm a reviving economy, the Press Trust of India (PTI) reported.
"Too much of stimulus, when the body is getting healthy, is not good; it can be injurious to health," Finance Secretary Ashok Chawla said at a seminar on textiles organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) here on Wednesday.
I met Mr SS Yadav and Sheetal Makran during Jaipur Convention. Since I spoke on the First day itself, I had the opportunity to interact with delegates from every tent. Economists, Lawyers, Professors, Professionals, Activists met regularly beside the wings and in the tents until dusk at the morning next day. We discussed the Economy and economics from the Dias as well as person to person level. Even returning for Jaipur,I had talks with Mr Godara, the Convener of All India Jat Maha Panchayat, Colonel Barves, President, Maharashtra Bamcef, Ashok Dogra in Srinagar and so on. We plan to make a Syllabus from ABCD to create Economic Cadre Base. We have talked to the experts affiliated to different Universities countrywide and abroad. But FREE Market Democracy sharply divides the landscape as well Human Scape vertically between haves and Have Nots. Market Dominating Communities worldwide are the HAVES and the Majority Eighty Five Percent Common Men belong to Have Nots groups. landing in kolkata, I had to read some Vikash singh defending Haripur Nuclear Plant and Nuclear Disinvestment on the pages of Ananda bazaar Patrika in Bengali and in the daily Telegraph in English. Though the Patrika published today an Excellent interview of Andre Betein in its edit page which analysed the Sociological Demography of Bengal and the Mass Deprivement from the prospective of the Marxist capitalist Rule and the PHENOMENON, Mamta Banerjee. Andre is worried to see Status Quo in Ruling Hegemony within Brahamin, Baidya and kayastha. He discusses Manusmriti and caste System while discussing the Politics and Economics. But this social reality is dismissed by the so called Progressive, secular mainstream intelligentsia, Civil Society, media, Policy makers and Politicians , not to mention the feudal, Gandhian, RSS, Fascist, rightist Pro American Element.
I had to go to Grocery as I have been Absent for almost a fortnight and Ration at Home fell short Naturally. I was shocked to know that ordinary Rice was rated no less than Rs. Eighteen while Fine Rice other than Basmati rated in between Rs 24 to Rs 30. Moong costed 115 as Sona Moong 140 per KG. Sugar is being sold Rs Fifty per KG. Rasgolla is rated in ordinary shops no less than Rs Five. Any Sweet Piece is rated at Rs Four at least. Vegetables are costly as the Fishes and Meat.
Sabita ordered her weekly quota of Insulin this morning. The Salesman arrived with as Bill of Rs. 695 for Five Cartridge and two syringe. Per Cartridge rated at Rs 129 which had been rated Rs. 119 earlier. Vat is deducted at the rate of 4%. Every life saving drug is costlier against declared government policy. Honey Touch is rated Rs. 56. Blood Test for a heart Patient is rated at Rs 1500 only.My Friend ram Bihari`s Mother was ailing and had a mild stroke. She remained in a local ordinary Nursing Home for Four days. Ram Bihari had to pay Rs. Twenty Five thousand just for Doctors denying to refer the patient to any Hospital with infrastructure.
My son Steve was Hurt during play and the doctor in Neighbourhood saw him denying to take any fees. But the Medicines and First aid for a simple injury costed Rs Five Hindered and more.
Rupee hits 15-month high against dollar!What is the use as the Common Masses are inflicted with Job loss, Food Insecurity, Displacement, Exodus, Ethnic Cleansing, Calamities man made and so on!The rupee rallied to its highest level in more than 15 months early on Thursday on the back of the dollar's broad weakness globally and tracking gains in other regional currencies.
At 9:03 a.m., the partially convertible rupee was at 45.75/76 per dollar, off an early high of 45.74, its strongest since Sept. 23, 2008, and above Wednesday's close of 45.85/86.
Meanwhild, the benchmark Sensex rose 0.1 per cent in early trade on Thursday, with Reliance Industries and Larsen & Toubro leading the gainers.
At 9:00 a.m., the 30-share BSE index was up 0.11 per cent at 17,721.22 points, with 14 components advancing.
The 50-share NSE Index was up 0.07 per cent at 5,285.50.
At the pre-Budget meeting with Finance Minister Pranab Mukherjee on Tuesday, the heads of apex chambers had pressed hard for continuation of the fiscal stimulus packages, which they felt, helped revive the economy hit by global credit crisis that began in September 2008.
Tata Group chairman Ratan Tata had also joined FICCI president Harsh Pati Singhania, Assocham chief Swati Piramal and Confederation of Indian Industry (CII) president Venu Srinivasan in seeking extension of the fiscal sops till September.
December 2008 through February 2009, the Centre extended a slew of stimulus measures to help revive the economy. On the taxation side, beginning December, it had slashed excise duty by six per cent, and service tax by two per cent. On the other hand it also massively stepped up Plan expenditure. All this had fiscal deficit shooting up to an estimated 6.8 per cent this year. That apart, the Reserve Bank of India (RBI) too eased all key interest rates to pump money into the system.
And the booster measures worked sooner than expected, with the economy growing by 7.9 per cent in the second quarter from 6.1 per cent in first three months of the fiscal.
But on the negative side, the while economy recovered much faster than expected, the inflation, after turning negative September October began to shoot up. More worrisome is the ballooning food inflation which touched nearly 20 per cent last week.
All this led to the government to think of withdrawing the stimulus measures on the one hand and tightening the money supply on the other.
"It seems private demand is picking up...the need to keep the government demand at the last year's level may not be necessary," Icrier director Rajiv Kumar said.
Several industries like autos, steel and textiles are back on track, while exports turned positive in November after 13 months. Following improvement in demand, steel and automobile manufacturers have raised prices in the last few days, while the balancesheets of textile firms have started showing better results.
Steel majors including SAIL, Tata Steel, JSW, Essar, abd Bhushan have hiked prices of by up to Rs 2,000 a tonne on the rising demand.
Commercial vehicle makers including Tata Motors, Volvo and Ashok Leyland have also already raised or are considering to jack prices of trucks by up to four per cent this month, even as the segment witnesses return of demand.
The government is expecting the economy to expand by eight per cent during the current fiscal after hitting six-year low of 6.7 per cent during 2008-09.
Chairing a meeting of the full-time members of the Planning Commission, Prime Minister Manmohan Singh today asked the commission's members and officials to keep track of state-level development.
The prime minister urged the Plan panel to tour states, review implementation of centrally-funded programmes and generate reports on state-level economic performance.
He also instructed the commission to revive the practice of producing annual plan reports and regularly brief the Union Cabinet on economic policy issues.
The meeting was held to take stock of the state of economy ahead of the Union Budget for 2010-11, which is expected to be presented in the last week of February.
The prime minister directed the commission to complete the mid-term appraisal (MTA) of the Eleventh Plan (2007-12) by March 2010.
According to Planning Commission member Abhijit Sen, who was present in the meeting, Singh suggested that performances of the current financial year should be incorporated into the MTA.
The issue of rising prices of food articles was also discussed at length in the meeting. Food inflation touched an 11-year high of 19.95 per cent for the week ended December 5.
The meeting, however, did not deal with specific issues related to the upcoming budget, said another member who was present in the meeting. The meeting was attended by Planning Commission Deputy Chairman Montek Singh Ahluwalia, all the eight members of the commission and secretary Sudha Pillai.
The commission, as a regular practice, reviews the performance of the Five-Year Plan after three years and suggests corrective measures for achieving its objectives. The MTA document is also used as input for the next Plan. The document has already been delayed.
Although the Planning Commission had set an ambitious growth target of 9 per cent for the Eleventh Plan, the projections were derailed following the global financial crisis. The GDP growth rate slipped to 6.7 per cent in 2008-09, after posting 9 per cent growth during the previous three years.
Just see!With activists intensifying their stir against Posco's proposed steel project near Paradip, the Orissa government is likely to say no to a visit by South Korean President Lee Myung Bak to the site early next year.
The ground situation at the proposed site is not conducive for such a visit and the state government is mulling it, a senior government official said today. In fact, thanks to the situation, authorities could not even hold a meeting of the Rehabilitation and Peripheral Development Advisory Council scheduled last month, the official added.
Lee, scheduled to visit India for the Republic Day celebrations in Delhi on January 26, had earlier expressed an interest to attend the inauguration of Posco's proposed greenfield project at Kujang in Jagatsinghpur district. The CPI-backed Posco Pratirodh Sangram Samiti (PPSS) has said that it would oppose Lee's visit.
"We will inform the South Korean embassy not to send the President to the proposed plant site area," PPSS President Abhay Sahoo said. "People are ready to sacrifice their lives to protect their fertile land," he added.
Posco, the South Korean steel major, is planning to set up a 12 million tonne per annum steel mill at an investment of Rs 51,000 crore. Though the company signed an MoU with the state government on June 22, 2005, work has not progressed due to hurdles in land acquisition. While the company required 4,000 acres, it has not been able to acquire an inch till date.
Meanwhile, Pravasi meet begins, property-related issues dominate Day 1...PTI reports from New Delhi:
A plethora of issues ranging from cheating by builders to complexities involved in succession and inheritance of properties dominated the first day of the annual Pravasi Bhartiya Divas attended by nearly 1,500 delegates from over 40 countries.
Issues like red tape in approval of investment proposals and bottlenecks in acquiring land for various projects were also raised strongly by the delegates who called for simplifying procedures to facilitate their involvement in India's development.
A group of NRIs from the US, the UK, Australia and some Gulf countries strongly raised the issue of non-delivery of flats sold to them by Maytas Properties, the real estate firm promoted by kin of disgraced Satyam founder B Ramalinga Raju.
"More than one year has passed but not a single brick moved into Maytas Hill County in Hyderabad. Over 300 NRIs are trapped into this tragedy and the government has done nothing," claimed Srinivas Reddy, an NRI from Britain.
Assuring the diaspora of all possible help, Overseas Indian Affairs Minister Vayalar Ravi, Corporate Affairs Minister Salman Khurshid and Minister of State for External Affairs Praneet Kaur said the government would address all the grievances of NRIs and PIOs.
They were speaking at a conference on property- related disputes of the diaspora community.
Business standrad reports thatAgriculturists, including farmer leader Sharad Joshi and Consortium of Indian Farmers Association (CIFA) Secretary-General Chengal Reddy and International Food Policy Research Institute Director (Asia) Ashok Gulati asked the minister to review the working of the farm debt waiver scheme and rationalise fertiliser subsidy. "The country has double the stock it can store. We need to double our storage capacity in public-private partnership. Ask private sector to build all these storage capacities," Gulati told reporters after the pre-Budget meeting.
The suggestion came during the second pre-Budget meeting hosted by the finance ministry today. Mukherjee had met corporate representatives yesterday and is scheduled to meet representatives of the construction industry tomorrow.
Gulati told reporters he had asked for incentivising direct buying by retailers or cooperatives from farmers, so that the value chain could be compressed. "You will be able to give benefit to consumers as well as farmers only when the value chain is compressed. At present, farmers do not get a third of what consumers pay," he said. The rate of food inflation was ruling at 19.83 per cent for the week ended December 12, after touching an 11-year high of 19.95 per cent the previous week.
Reddy said he had asked for incentivising the mechanisation of agriculture through tax exemptions on agriculture and water conservation equipment, and removal of service and processing charges on farm loans. He also called for exempting tobacco farmers from service tax, continuing with the duty structure on cigarettes and maintaining the price difference between better quality and cheaper cigarettes.
Nafed Chairman Bijender Singh said: "We have asked for waiver of the income-tax that was levied on cooperatives. At least, the government should waive the tax on those cooperatives which are directly dealing with the agriculture sector."
Centre talking to states on ArcelorMittal, Posco projects
Union Steel Minister Virbhadra Singh today said the Centre is in talks with the Jharkhand and Orissa governments to facilitate the multi-billion dollar India projects of global steel giants ArcelorMittal and Posco.
"It (talking) is a continuous process aimed at expediting and facilitating the two projects. We are talking to resolve the issues like land acquisition, mining leases," Singh told PTI after visiting the 'Steel Pavilion' at the India International Trade Fair here.
Asked if the government has set a time-frame for these projects to take off, he said, "These are greenfield projects. They take more time than the brownfield projects as issues like land acquisition, evacuation, rehabilitation, mining leases exist. Currently, we wish to expedite it."
Greenfield projects are the ones which are started from the scratch, while in case of brownfield, the company augments the capacity of the existing unit.
The projects of ArcelorMittal and Posco are facing the twin challenges of land acquisition and regulatory clearances. The L N Mittal-led firm has threatened to quit the existing site between Gumla and Khunti districts of Jharkhand because of tribal protest and "regulatory hurdles". It is facing similar problems in Keonjhar, Orissa.
Asked if ArcelorMittal has officially communicated to the steel ministry its interest to shift from the proposed sites, the minister said, "I have not received any communication from the company in this regard."
The steel major has planned to set up two 12-MTPA steel mills, one each in Jharkhand and Orissa. The projects will attract an estimated investment of about Rs 1 lakh crore.
The ventures require about 10,000 acres of land in Jharkhand and about 8,000 acres in Orissa.
It has been allocated Karampada mines in Jharkhand with estimated reserves of 65 million tonnes of iron ore. The company needs about 600 million tonnes of iron ore to feed its steel plant in the state. The company is still awaiting iron ore mining leases in Orissa.
South Korean steel giant Posco, which had earlier this year said that it may slightly alter the site of its proposed Rs 54,000 crore steel plant near Paradeep on account of similar problems, needs about 4,000 acres of land for the project.
It is awaiting mining leases in Orissa for the venture, which had received approval from the Supreme Court green bench last year.
The Orissa government is "actively working" to remove hurdles coming in the way of Posco's proposed plant so that the company can have the groundbreaking ceremony by January -end next year, a government official had said.
India not prepared to handle mega projects: Mittal
World's largest steel maker ArcelorMittal believes that India is not equipped to handle big-ticket investments, although the country needs over half a trillion dollars to shore up its infrastructure.
Billionaire Lakshmi N Mittal, whose company's projects worth $22 billion have been held up for over four years for want of regulatory clearances and land, told reporters this was so because no one quite saw the rapid growth coming.
"We blame the whole country for this because we did not experience this kind of growth, we did not experience this kind of interest in investments in India," he said, adding that neither the Centre nor the states were prepared for this kind of investment in the steel industry.
In 2005, Mittal signed a pact with Orissa government for a 12 MTPA steel plant and shortly after announced plans for an identical project in Jharkhand, but they are yet to come up.
"Clearly, we are not satisfied with the progress that ArcelorMittal has made so far. There have also been delays in processes because Indian government as well as the state governments have never received such... Mega investments."
"I am sure Prime Minister (Manmohan Singh) is also not satisfied with the progress. He has told many a times that these investments should be accelerated," Mittal said.
These delays are despite India making public that it needs over $500 billion in investments in infrastructure sector and that too steel being a key construction material.
Mittal met the Steel Minister and Karnataka chief minister, whose government has cleared a Rs 30,000 crore investment proposal by the steel maker.
"Just offering lands is not enough. If there is delay...The lands are not right for setting up the steel plants. We may not accept it, after all we have to set up a steel plant," Mittal said.
Asked if the steel behemoth will hold talks with Orissa and Jharkhand, he said: "We are investors. We are not here to fight with the state governments."
He clarified that his company was not withdrawing investments plans in Orissa and Jharkhand. However, the company would prioritise investments depending on the treatment the company gets in different states.
"We are open to all possibilites...We are discussing with various states," he said replying to a question if mineral-rich Chhattisgarh would also be approached.
PM 'anxious' for Jyoti Basu, offers to fly in docs
Kolkata: A "concerned and anxious" Prime Minister Manmohan Singh on Thursday visited Marxist patriarch Jyoti Basu, who is in a critical condition at a private hospital here, and offered to arrange for any medical expert needed to treat the 95-year-old former chief minister.
The Prime Minister spent 22 minutes at the hospital in Kolkata's satellite township Salt Lake, where Basu is on ventilator support at the intensive cardiac care unit (ICCU) after a pneumonia attack. Basu was admitted on January 1.
Manmohan Singh was accompanied by Union Finance Minister Pranab Mukherjee and West Bengal Chief Minister Buddhadeb Bhattacharjee.
The Prime Minister saw Basu from outside the ICCU and discussed his condition with doctors.
"He told them that if they thought it necessary, he would arrange for any expert doctors from any part of the country," former Lok Sabha speaker Somnath Chatterjee told mediapersons.
He said Manmohan Singh also spoke to Basu's son Chandan and extended his best wishes for the ailing leader's speedy recovery.
"We are deeply touched by the trouble the prime minister has taken to come and visit our leader," said Chatterjee, an expelled CPI-M leader.
Union Minister of State for Health Dinesh Trivedi said the Prime Minister was "concerned and anxious" about Jyoti Basu's condition.
"Jyoti Basu is very precious. The Government of India is ready to do anything that can be done. It is for the asking of the doctors. The doctors have said if they feel the need, they will definitely put in such a request," said Trivedi.
Chandan said the doctors told the Prime Minister that the hospital had the best of specialists. "I am also satisfied with the treatment. I don't think there is any need to fly in any doctor."
The prime minister had arrived in Kolkata from Delhi in a special aircraft around 12.30 p.m. to visit Basu. After the brief one-and-a-half hour visit to the city, he left from the Netaji Subhas Chandra Bose International (NSCBI) airport for Delhi.
Entry was restricted to the hospital ahead of the prime minister's visit and traffic was diverted on nearby roads. Jammers were installed and Special Protection Group (SPG) personnel threw a security cordon around the hospital.
The state government deployed a large number of armed policemen, Special Action Force (SAF) and Rapid Action Force (RAF) personnel to ensure foolproof security for the prime minister.
The doctors too had to undergo security checks before being allowed to enter the hospital on Thursday morning.
Orissa clears Rs 30,000 cr investment proposals
The Orissa government today approved 16 investment proposals worth about Rs 30,000 crore, including the expansion plan of domestic major Aditya Alumina.
A meeting of the Single Window Clearance Committee (SWCLC) of the government, chaired by Chief Secretary T K Mishra, cleared 10 new projects and six other expansion plans besides okaying the shift proposal of five others.
"Since some projects were facing land, water and other problems, the SWCLC accepted their proposal to shift the location," Industries Secretary S Garg told reporters adding that the projects would provide direct employment to about 47,000 people besides indirect employment to about 1 lakh others.
The projects cleared include one in automobile sector, two downstream projects in steel, one cement and two power projects, Garg said.
While the expansion plan of SWCLC's refinery from 1 MTPA to 1.5 MTPA was okayed, the capacity of its smelter was also increased from 0.26 MTPA to 0.36 MTPA, Garg said.
Aditya Alumina's plans to increase the capacity of its captive power plant in Rayagada from 650 Mw to 900 Mw at an estimated invest of Rs 5,000 crore was approved, he said.
The committee also cleared Ind-Bharat Energy (Utkal) Ltd's expansion plan from 700 Mw to 1,360 Mw and also approved setting up of two new power projects.
Beef up security for public, pvt aircraft fleet: Centre
With rising terror threat, the Centre today asked states to beef up security for both public and private aircraft fleet and aviation facilities, including abandoned airstrips, and carry out drills on a regular basis.
In the backdrop of accidents involving VVIP aircraft and helicopters including the one that claimed the life of Andhra Pradesh Chief Minister Y S R Reddy, the state governments were also told to adhere to a set of fresh rules and procedures regarding aviation safety, once these are finalised by the Directorate General of Civil Aviation (DGCA).
"We have stressed the need for enhanced security and emphasised that all steps must be taken by state governments in this regard, including carrying out regular anti-hijack drills, planning comprehensive security for aircraft," Civil Aviation Secretary M M Nambiar told reporters after a meeting with officials of state governments on air operations.
Replying to questions, he said state governments have been asked to identify and prepare a list of abandoned or unused airstrips and enhance their security.
Nambiar said till date, no state government, barring Jammu and Kashmir and Rajasthan, had the non-scheduled operators permit (NSOP) to operate VVIP flights. "Other states are operating without any air operating permit."
DGCA chief Nasim Zaidi said there was "no defined or laid down regulation for such operations" though state governments did have aircraft registered under normal and passenger category.
Security fair generates Rs 460 cr business
International and domestic firms generated business of over Rs 460 crore selling latest security equipments, including CCTVs and intruder alarms, to Central and state security agencies and manufacturers.
The three-day exhibition held between October 29 and 31 on fire and security equipment held here recently saw gadget makers and suppliers signing a number of deals with the Indian security agencies generating business of over Rs 460 crore, organisers of the 3rd edition of commercial, homeland security and fire technology exhibition said here.
Around 11,557 security professionals from across the globe dealing in safety equipments displayed their high-end products during the exhibition, they said.
Companies like Panasonic, Samsung Electronics, Turbo, G4S, Honeywell, Hitachi Global storage technologies, Sony, Urmet were the main beneficiary to get a pie in the Indian security business estimated to be worth $600 million.
The systems which were displayed at the exhibition are armoured carriers, bullet proof vehicles, anti-riot gear, bulletproof clothing, night vision devices, surveillance and counter-surveillance equipment, radar tracking devices, electronic devices and wireless equipment.
According to a report commissioned by the British Security Industry Association, the security and fire market in India, estimated at around $530 million in 2007, is growing at a rate of about 25 per cent annually.
About 220 firms from 16 countries, including the US and UK, participated during the 'IFSEC India 2009' event.
India to develop 25% of fifth generation fighter
Ajai Shukla / New Delhi January 6, 2010, 0:36 IST
Scrutinising the Sukhoi Corporation's work on the Fifth Generation Fighter Aircraft (FGFA) — a project that India will soon sign up to co-develop — gives one an idea of Russia's size, and its aerospace expertise. During daytime, in Moscow, the Sukhoi Design Bureau conceptualises FGFA components; by 10 pm the drawings are electronically transmitted over 5,000 kilometres to a manufacturing unit in Siberia. Here, at KnAAPO (Komsomolsk-on-Amur Aircraft Production Organisation) — seven time zones away — it is already 5 am next morning. Within a couple of hours, the drawings start being translated into aircraft production.
Having designed over 100 aircraft (including India's Su-30MKI), built over 10,000 fighters, and with 50 world aviation records to its credit, Sukhoi understandably regards Hindustan Aeronautics Ltd (HAL) — its partner-to-be in designing the FGFA — as very much the greenhorn.
But the newcomer wants its due. Bangalore-based HAL has negotiated firmly to get a 25 per cent share of design and development work in the FGFA programme. HAL's work share will include critical software, including the mission computer (the Su-30MKI mission computer is entirely Indian); navigation systems; most of the cockpit displays; the counter measure dispensing (CMD) systems; and modifying Sukhoi's single-seat prototype into the twin-seat fighter that the Indian Air Force (IAF) wants.
THE FIFTH GENERATION FIGHTER
Cost of development $8-10 billion
India's requirement 250 fighters
Russia's requirement 250 fighters
Cost per aircraft $100 million
Indian name FGFA
Russian name PAK FA
India will also contribute its expertise in aircraft composites, developed while designing the Tejas Light Combat Aircraft (LCA). Russia has traditionally built metallic aircraft; just 10 per cent of the Su-30MKI fuselage is titanium and composites. The FGFA's fuselage, in contrast, will be 25 per cent titanium and 20 per cent composites. Russia's expertise in titanium structures will be complemented by India's experience in composites.
With India's work share almost finalised, the 2007 Russia-India Inter-Governmental Agreement (IGA) to build the FGFA will soon evolve into a commercial contract between Russia's United Aircraft Corporation (UAC) and HAL. Ashok Baweja, until recently the chairman of HAL, told Business Standard: "When HAL and UAC agree on terms, they will sign a General Contract. This will include setting up a JV to design the FGFA, and precise details about who will fund what."
This contract will mark a significant shift in the aeronautical relationship between India and Russia. For decades, HAL has played a technologically subordinate role, assembling and building fighters that Russia had designed. Now, forced to accept HAL as a design partner, the Russians have negotiated hard to limit its role.
The reason: Russia is sceptical about India's design ability in such a cutting edge project. In June 2008, Business Standard interviewed Vyacheslav Trubnikov, then Russia's ambassador to India, and an expert on Russia's defence industry. Contrasting the Su-30MKI with the Tejas LCA, Trubnikov pointed out snidely, "I know perfectly well the Russian ability. But I don't know what contribution the Indian side might make. So, one must ask the question to the Indian designers, to HAL…what is their claim for building a fighter of the fifth generation type? Either avionics, or engine? What might be India's contribution? To be absolutely frank, I don't know."
For long, the UAC argued that HAL could not expect a major role in the FGFA because Sukhoi had finished much of the work while New Delhi dithered about joining the project. UAC asserts that 5,000 Sukhoi engineers have worked for five years to design the FGFA. Such claims are hard to verify, but it is known that the Sukhoi Design Bureau has about 8,000 engineers, distributed between many different programmes.
With Sukhoi's ploughing on alone, Minister of State for Defence Pallam Raju admitted to Business Standard: "The longer India waits to join the project, the lesser will be our contribution. But, we are not sitting idle. Through the defence ministry's existing programmes [such as the Tejas LCA] we are building up our capabilities."
Most Indian officials agree that India has not lost much. Even if the FGFA makes its much-anticipated first flight this year, it is still at a preliminary stage of development. Ashok Baweja assessed in early 2009, "The FGFA's first flight is just the beginning of the programme. My understanding is that the Russians are going ahead (with the test) to validate the FGFA's "proof of concept" (conceptual design). Whatever composite materials they have now, they'll use. But, because the composites will change… the FGFA will keep evolving for a fairly long time."
A top ministry official estimates, "It will take another 4-5 years to develop many of the FGFA's systems. Then, the aircraft will undergo at least 2000 hours of certification flying and, possibly, some reconfiguration. The FGFA should not be expected in service before 2017. And the twin-seat version may take a couple of years longer."
With just a 25 per cent share of design, South Block policymakers still believe that the FGFA project is a vital step towards India's emergence as a military aeronautical power. "Developing 25 per cent of this fighter is far better than just transferring technology to build it in India, as we did with the Su-30MKI," points out a defence ministry official.
Ashok Baweja puts the project in context. "India can only (develop the FGFA) by partnering with Russia. They have so much experience. It's not just the design… you must also have materials… maraging steel, titanium, composite alloys, and the industrial base to convert these into high-tech components like gyros, sensors and optics. The FGFA will give us important experience for building fighters hereafter."
http://www.business-standard.com/india/news/india-to-develop-25fifth-generation-fighter/381786/
IAF slams HAL, bats for private sector
Ajai Shukla / New Delhi November 20, 2009, 0:24 IST
Private sector companies engaged in aerospace manufacture and R&D now have an influential new supporter: The Indian Air Force (IAF). In New Delhi today, the IAF's vice chief, Air Marshall Pranab Kumar Barbora forcefully called for government policy changes to encourage the private sector in aerospace production, to kickstart a sector that has long been dominated by public sector Hindustan Aeronautics Ltd (HAL).
Industry bodies like the Confederation of Indian Industry (CII) have pushed these measures earlier. But the military has so far toed the Ministry of Defence (MoD) line, which automatically grants Defence Public Sector Units (DPSUs) like HAL a predominant position, effectively confining private companies to the ancillary supply of aircraft sub-systems.
But Air Marshall Barbora, a blunt-speaking MiG-21 veteran with a reputation for plain speaking on controversial matters, contrasted the private sector's success in modernising more than 50 airbases, with HAL's dismal export performance.
Pointing out that even Pakistan had more defence exports than India, the IAF vice chief said, "I visited HAL a few days back. They are proud that they are making parts for Airbus. But a few days back, China produced the whole Airbus. We are happy producing a door here and something else there."
Air Marshall Barbora listed out policy changes that the government urgently needed to implement to energise the private sector. These included:
# Government must fund R&D and manufacture by private companies, like it has done for the DPSUs. "They (private sector) have to be part of the new structure. If you don't give them finance, they won't come up."
# Assuring firm orders (or Minimum Order Quantity) to private companies, which will allow them to recover the money they spend in developing a product. "If they know they have to produce 1,000 of this, they will be willing to invest."
# Removing government curbs on defence exports by the private sector, to allow them to recover investment costs. "Our own [defence] requirements are miniscule. If you don't allow private companies to export, he will say, 'you look after yourself, I'll look after myself.'"
# Addressing "the CVC syndrome", in which "anyone can file an FIR and everything comes on hold". The IAF deputy declared that procurement processes must go on without disruptions by motivated allegations of corruption.
# Increase the Foreign Direct Investment limit, which is currently 26 per cent. "We have taken steps, but they are not bold enough. We have to be bolder, to invite more investment."
The IAF deputy also slammed political parties for criticising and scanning defence contracts signed by the previous government, each time power changed hands. Air Marshall Barbora said, "The government becomes the opposition and the opposition becomes the government and blocks everything. That impinges very badly on defence."
Pointing out that dependence on defence imports remained an Indian vulnerability, the IAF deputy slammed the US for placing sanctions on India after the Pokhran nuclear tests. Holding France up as a model to follow, Air Marshall Barbora said, "France said that, by so and so year, we will go fully indigenous. And they did that. [After that] France blasted all the nuclear devices that they wanted in the Pacific Ocean and nobody could do anything, because they had indigenised [defence production]."
According to a CII-Ernst and Young report, India has over 6,000 SMEs supplying DPSUs, Ordnance Factories, DRDO and the armed forces with 20–25 per cent of their total requirement of components and sub-assemblies. In addition, there are almost a hundred large private companies involved in defence manufacture.
These recommendations were made at a seminar on "Energising Indian Aerospace Industry" in New Delhi.
http://www.business-standard.com/india/news/iaf-slams-hal-bats-for-private-sector/12/47/377040/
IAF's $11-bn order may become larger
Ajai Shukla / New Delhi October 16, 2009, 0:36 IST
India may go beyond the purchase of 126 medium multi-role combat aircraft.
The winner's jackpot could soon become even bigger in what is already the world's most lucrative fighter aircraft tender: India's proposed purchase of 126 medium multi-role combat aircraft (MMRCA) for an estimated Rs 51,000 crore ($11 billion).
The reason is a breakdown in India's long negotiations with Dassault Aviation, the French aircraft manufacturer, for upgrading 51 Indian Air Force Mirage-2000 fighters. According to senior IAF sources, Dassault has refused to reduce its quota of Rs 10,000 crore ($2.1 billion) for extending the service life of the IAF's Mirage-2000 fleet by fitting new radars and avionics. The Ministry of Defence (MoD) considers this price — Rs 196 crore ($41 million) per aircraft — unacceptably high, given that the airframes and engines will not be changed.
In comparison, each of the 126 brand-new, next-generation MMRCAs will cost some Rs 400 crore ($87 million) per aircraft. That includes the cost of technology transfers, as well as capital costs for setting up a manufacturing line in India. Once those costs are amortised, additional MMRCAs would be significantly cheaper.
Dassault's India head, Posina V Rao, did not return multiple phone calls from Business Standard. MoD sources say Rao is engaged in last-ditch attempts to salvage the deal.
But, the MoD is veering around to the view that the Mirage-2000 fleet should continue service in its current form. After six squadrons (126 aircraft) of MMRCAs have entered IAF service, an additional two squadrons of MMRCAs would be built to replace the 51 Mirage-2000 fighters. That amounts to a 40 per cent rise in the MMRCA's numbers.
Israeli aerospace companies have reportedly entered the fray, offering to upgrade the Mirage-2000 for half the price being quoted by Dassault. The MoD, however, is not inclined to accept that offer.
Price negotiations for the Mirage-2000 upgrade have travelled a rocky road over two years. Initially, Dassault quoted Rs 13,500 crore ($2.9 billion), which it brought down to the current level of Rs 10,000 crore ($2.1 billion) after the IAF diluted its upgrade requirements. But the MoD believes Dassault's reduced bid only reflects the diluted requirements, rather than any flexibility on the latter's part.
The IAF, traditionally a staunch supporter of Dassault and the Mirage-2000 fighter, is apparently changing its views. Dassault, say pilots, has badly damaged its credibility during the recent negotiations by arm-twisting the IAF over the supply of spares for the Mirage-2000 fleet.
The Gwalior-based IAF squadrons that currently fly the Mirage-2000 are Number 1 squadron (Tigers) and Number 7 squadron (Battle Axes).
Five of the six contenders for the MMRCA contract — Boeing, Lockheed Martin, Eurofighter, Gripen and RAC MiG — know they could reap handsome gains, through larger fighter orders, if India chooses not to upgrade the Mirage-2000. The sixth contender, Dassault Aviation itself, realises failure to negotiate the Mirage-2000 upgrade contract could seriously damage the chances of its Rafale fighter for the MMRCA contract.
The fighters in contention for the MMRCA contract are sequentially undergoing flight trials and evaluation, which the IAF expects to complete by April 2010. It will take another six months to finalise the trial report and send that to the MoD, which will then announce the winner of the contract.
http://www.business-standard.com/india/news/iafs-11-bn-order-may-become-larger/00/25/373419/
India Eco Summit: Power and policy will shape global finance order
WEF builds scenarios to facilitate strategic decision-making and collaborative action
BS Reporter / New Delhi November 11, 2009, 0:31 IST
The World Economic Forum has sketched four scenarios on the probable evolution of the global financial system between now and the year 2020, based on a survey of the Forum's industry partners, interviews with leaders in the field and extensive research.The scenarios, which form the subject of a WEF report, The Future of the Global Financial System: A Near-Term Outlook and Long-Term Scenarios, are determined by two critical uncertainties. The first is the pace of the ongoing geo-economic power shift from today's advanced economies to the emerging world; the second is the degree of international coordination on financial policy.
Each of the four scenarios takes a myriad of underlying driving forces into account—such as the evolution of energy and commodity prices, global economic growth, fiscal policies, trade regimes, climate change, exchange rate policies, extremism, demographics and global wealth distribution.
Financial regionalism (Scenario I) is a world in which post-crisis blame-shifting and the threat of further economic contagion create three major power blocs on trade and financial policy (one each led by the US, the EU and China), forcing global companies to construct tripartite strategies to operate globally. As the crisis deepens in the US and Europe through 2010, the emerging markets walk away from a series of global talks, reject Western models, and form their own bloc of domestically focused economies. The US is isolated. With the exception of tourism and energy materials, most trade flows among the blocs decline sharply. Energy security becomes a key issue.
Financial regulation and governance are coordinated at a regional level and vary significantly between the three main trade and economic jurisdictions. The US continues to push a "market democracy" paradigm of minimal regulation. Eastern countries adopt a "controlled openness" system, while the EU turns inward, regulating financial institutions heavily.The separate capital and regulatory requirements in each bloc increase costs for global players; nationalized champions in the EU and Asia distort markets, particularly in insurance; while companies look to the East for both stability and yield.
Re-engineered Western-centrism (Scenario II) is a highly coordinated and financially homogenous world that has yet to face up to the realities of shifting power and the dangers of regulating for the last crisis rather than the next. With emerging economies severely affected by the global recession, the West maintains economic primacy and drives a new phase of growth. The financial world is once again a major engine of profitability and growth managed by insiders.
Existing financial institutions are reformed and there is a new, supranational financial regulator, the International Financial Stability Fund, with the majority of the world's countries as members. Markets are criticized as being overly homogenized and highly vulnerable to contagion in the event of another shock.
The industry structure is characterized by significant consolidation, thanks to a global level playing field and the after-effects of the 2008-09 recession. Western companies still dominate financial markets.
Fragmented protectionism (Scenario III) is a world characterized by division, conflict, currency controls and a race-to-the-bottom dynamic that only serves to deepen the long-term effects of the financial crisis. As the global recession bites, countries try to look after their own economic interests, blaming each other and turning to populist, protectionist policies.
Regulation is extremely fragmented by country and often extremely intrusive. The banking sector is nationalized in many jurisdictions. Restricted capital flows, the low-trust geopolitical environment and widespread trade protectionism mean very little financial policy cooperation among countries.
The industry structure is characterized by severe pressure on life insurers, with constraints on investing assets and growing liabilities. Global service providers are forced to hold capital locally, greatly reducing capital efficiency and forcing many to reduce their geographic footprint. Severe restrictions on capital and liquidity make banking a far less profitable business.
Rebalanced multilateralism (Scenario IV) is a world in which initial barriers to coordination and disagreement over effective risk management approaches are overcome in the context of rapid shifts in geo-economic power. The global community learns from its mistakes through sharing, realizing that meaningful collaboration is the only way forward. Major shifts in international institutions and a new recognition of the meaning of global governance imply that the financial system is better suited to the challenges of a complex, interdependent world in 2020, if not at all perfect.Emerging markets set the pace for economic growth, cooperation on financial policy and new approaches to systemic financial risk. The financial system is globally integrated but, given the rapid growth in the emerging markets, in many cases dominated by BRIC-focused players.
The new regulatory regime is characterized by a greater focus on systemic risk management through links to macroeconomic policy, confidence-building measures and contingency plans. The Bank for International Settlements becomes global lender of last resort.
As for industry structure, the Chinese insurance industry matures and successfully enters the US market following the 2017 financial crisis there. Increasing levels of global competition drive consolidation and specialization in asset management, leading to strategies such as scale-driven distribution and specialised fund management.
http://www.business-standard.com/india/news/india-eco-summit-powerpolicy-will-shape-global-finance-order/376047/
India to spend $4 billion on economic stimulus
Will also expand mortgage lending and cut value-added tax
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updated 2:16 p.m. ET Dec. 7, 2008
MUMBAI, India - The Indian government plans to spend an additional $4 billion to boost the nation's slowing economy, the Prime Minister's Office said Sunday.
The government also announced targeted measures to help exporters, small businesses and textile manufacturers, a plan to expand mortgage lending and a cut in a valued-added tax.
It also said a state-run financing firm will be allowed to issue $2 billion worth of tax-free bonds to finance infrastructure projects.
"The government is keeping a close watch on the evolving economic situation and will not hesitate to take any additional steps that may be needed to counter recessionary trends and maintain the pace of economic activity," the Prime Minister's Office said in a statement.
Growth skidded to 7.6 percent last quarter — off from 9.3 percent in the third quarter of 2007 — and exports shrank in October for the first time in seven years.
India's ballooning fiscal deficit means it can do far less than a country like China — which last month announced a $586 billion stimulus package — to spend its way out of an economic slump.
Citibank said in a report Thursday that it expects India's deficit in this fiscal year will swell from 6 percent to 8.6 percent of its gross domestic product — far higher than the government's target.
The government said Sunday that spending for the remaining four months of the fiscal year would total $60.2 billion.
The government recently announced plans to float $9 billion worth of bonds, which some worried would crowd out other borrowers from an already lean market.
Until now, India has focused on using monetary policy to counter the effects of the global slowdown. Since mid-September, the Reserve Bank of India has infused $60.2 billion into the financial system to boost liquidity.
On Saturday, the bank again slashed interest rates. It cut the benchmark repo rate, at which the central bank makes short-term loans to commercial banks, from 7.5 percent to 6.5 percent. That's the lowest since June 2006 and down from an October high of 9 percent.
The reverse repurchase rate — the rate at which it borrows from commercial banks — was lowered from 6 percent to 5 percent to encourage banks to lend more to consumers.
Business leaders had hoped the government would do even more.
"The fiscal package is pointing in the right direction, but could have done even more of stimulation to increase the growth trajectory," Amit Mitra, secretary general of the Federation of Indian Chambers of Commerce and Industry, said in a statement Sunday.
Last week, Commerce Minister Kamal Nath told reporters the government would be unfurling a series of stimulus measures, but that the details and timing of the measures were unclear.
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Published 11/30/2009 by South China Morning Post
Indian economy surges 7.9pc on stimulus
India's economy grew an annual 7.9 per cent in the September quarter, much faster than expected on government stimulus spending and a surge in manufacturing, adding pressure on the central bank to lift interest rates as inflation rises.
The annual growth...
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First Reported 12/04/2009 - Updated 12/05/2009 - 13 Documents
IANS/New Delhi India?s growth rate over the next couple of years will be 8-9%, World Bank president said here yesterday. ?India?s growth rates could over the next one to two years see a return to the 8-9% envisaged in the country?s 11th (Five-Year) Plan,? ... [Gulf Times - 12/05/2009]
India's Economy Shows Surprising Growth
Spurred by an $80 billion stimulus package, the Indian economy grew by 7.9% in the third quarter as the nation's consumers displayed an appetite for spending
India's $1.2 trillion economy may be among the world's first to come roaring out of the global recession, as government data showed it grew by 7.9% in the quarter ended on Sept. 30, the largest growth since the Indian government started releasing the figures in 1996. Industry grew 9.2%, compared with 5.1% in the year-earlier quarter. "These recent figures may well signal that the worst effects of the global financial crisis have passed for the economy," says Anuj Chande, head of the South Asia Group at Grant Thornton, which advises companies doing business in Asia.
The numbers, released on Nov. 30, have economists considering raising their estimates for full-year gross domestic product growth in India; the average estimate is currently about 6.5%. The government, meanwhile, has said it expects the Indian economy to grow by 7% to 8% by the end of the fiscal year in March 2010, and hit 9% the year after. "Our own 6.2% number for the current fiscal year is certainly looking on the low side," says Robert Prior-Wandesforde, Singapore-based Asia economist for HSBC (HBC).
It's an interesting turnaround by the Indian economy, which spent the period from October 2008 to March 2009 on government-sponsored life support—some $80 billion in tax cuts and other benefits in the form of a stimulus. Without the stimulus, growth in those two quarters would have been less than 1%; the stimulus pushed it to 5.8%.
Broad-Based Growth
Since then the Indian stock exchange has more than found its footing—it is up 72% for the year—and Indian companies have taken advantage of the rising market to mop up billions of dollars in share sales, using that money to pay down debt, prop up production, and even consider overseas acquisitions, including a $12 billion bid by Reliance Industries, India's largest private company, for LyondellBasell, a Dutch chemicals manufacturer. "As upside surprises go, this was a big one,"says Prior-Wandesforde. "This was an extraordinary result."
More reassuringly, growth was driven by a wide spectrum of increased economic activity. Trade, hotels, transport, and communication, which make up one-third of the economy, grew by 7.7%. Private consumption grew 5.6%, vs. 1.6% a year earlier, signaling that the famously parsimonious Indian consumer feels more comfortable about his job and is spending more freely. "The broad-based nature of the third quarter's domestically driven improvement is encouraging," says Nikhilesh Bhattacharya, a Sydney-based economist with Moody's Economy.com (MCO). "India may experience a quicker return toward its trend growth rate of around 9% than had earlier been anticipated."
In India, where GDP growth figures are closely watched as part of a race with neighboring China, TV news reports took on a celebratory tone. The stock market, widely expected to plunge because of the news from Dubai on Friday, added 1.71% to the benchmark 30-stock Sensex.
Signs of Weakness
As always, though, there are some signs of weakness. It isn't clear how much of the quarter's growth can be attributed to the stimulus package, which continues unabated. One indicator is that the "community, personal, and social services" sector grew by 12.7%, compared with 6.8% the year before. Both Indian Prime Minister Manmohan Singh and Commerce Minister Anand Sharma have said the stimulus will continue well into next year.
Dubai remains a source of concern, albeit small. The 4.5 million Indians living in the Gulf region sent nearly $30 billion back to their relatives in India—that number could drop significantly if many of them lose their jobs. That's a likely scenario; most of them work in construction projects. Indian exports to the United Arab Emirates could be affected, too—with $17.5 billion of merchandise exports in 2008-09, it is India's second-biggest trade destination after the U.S. Luckily, though, of those exports, much is food, which is unlikely to slow. "Overall, there is likely to be some direct impact of the Dubai debacle on remittances into India, as well as on exports, but in our judgment a fairly small one,"http://www.businessweek.com/globalbiz/content/nov2009/gb20091130_594070.htm
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