From: Press Information Bureau Ministry of I&B <pib.kolkata@gmail.com>
Date: Thu, Oct 7, 2010 at 3:05 PM
Subject: Releases............pt1
Press Information Bureau
Government of India
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Ministry of Commerce & Industry
Wholesale Price Indices for Primary Articles and Fuel & Power in India (Base: 2004-05 = 100)Review for the week ended 25th September, 2010 (03 Asvina, 1932 Saka)
New Delhi: October 7, 2010.
The WPI [with base year 2004-05] for the week ended 25th September, 2010 in respect of 'Primary Articles' and 'Fuel & Power' is given below:
PRIMARY ARTICLES (Weight 20.12%)
The index for this major group rose by 0.1 percent to 181.0 (Provisional) from 180.9 (Provisional) for the previous week.
The annual rate of inflation, calculated on point to point basis, stood at 18.53 percent (Provisional) for the week ended 25/09/2010 (over 26/09/2009) as compared to 18.31 percent (Provisional) for the previous week (ended 18/09/2010).
The groups and items for which the index showed variations during the week are as follows:-
The index for 'Food Articles' group declined by 0.1 percent to 179.7 (Provisional) from 179.9 (Provisional) for the previous week due to lower prices of moong (3%), fish-inland, fish-marine, masur and gram (2% each) and maize and wheat (1% each). However, the prices of jowar and ragi (2 % each) and barley, beef & buffalo meat, fruits & vegetables, tea and urad (1% each) moved up.
The index for 'Non-Food Articles' group rose by 0.6 percent to 161.0 (Provisional) from 160.0 (Provisional) for the previous week due to higher prices of sunflower (9%), gaur seed (8%), fodder (5 %), linseed and copra (3% each) and groundnut seed, gingelly seed (sesamum) and cotton seed (1% each). However, the prices of mesta (4%), castor seed (2%) and raw silk and raw rubber (1% each) declined.
FUEL & POWER (Weight 14.91%)
The index for this major group remained unchanged at its previous week's level of 147.6 (Provisional).
The annual rate of inflation, calculated on point to point basis, has remained unchanged at its previous week's level of 10.73 percent (Provisional) for the week ended 25/09/2010 (over 26/09/2009).
Build up inflation over the week, financial year end and over the year is given below for some important items.
Next date of press release: 15/10/2010 for the week ending 02/10/2010
Wholesale Price Index and Rates of Inflation [Base Year: 2004-05]
| Commodities/Major Groups/Groups/Sub-Groups | Weight | WPI Sep 25, 2010 | Latest week over week | Build up from end March | Year on year | 52 week Average
| |||
| 2009-10 | 2010-11 | 2009-10 | 2010-11 | 2009-10 | 2010-11 | ||||
| Primary Articles | 20.12 | 181.0 | -0.13 | 0.06 | 12.20 | 8.64 | 9.78 | 18.53 | 18.26 |
| Food Articles | 14.34 | 179.7 | 0.06 | -0.11 | 13.93 | 9.31 | 12.85 | 16.24 | 18.54 |
| Cereals | 3.37 | 168.0 | 0.50 | -0.30 | 5.98 | 1.33 | 14.08 | 5.26 | 10.47 |
| Rice | 1.79 | 164.1 | 0.00 | -0.18 | 4.98 | 0.61 | 16.26 | 3.86 | 9.33 |
| Wheat | 1.12 | 172.2 | 1.89 | -0.58 | 7.02 | 0.64 | 10.53 | 6.49 | 12.68 |
| Pulses | 0.72 | 197.5 | 0.32 | -1.10 | 19.08 | -1.35 | 19.61 | 4.44 | 22.19 |
| Vegetables | 1.74 | 182.9 | -1.28 | 0.38 | 45.46 | 41.02 | 6.39 | 7.65 | 5.26 |
| Potatoes | 0.20 | 143.6 | 6.92 | 6.21 | 160.16 | 40.92 | 131.85 | -50.81 | 3.71 |
| Onions | 0.18 | 200.7 | 1.73 | 10.21 | -2.19 | 28.00 | 6.65 | 9.85 | 2.03 |
| Fruits | 2.11 | 155.2 | 0.52 | 0.98 | 8.66 | 6.81 | 2.05 | 15.65 | 16.25 |
| Milk | 3.24 | 178.2 | 0.00 | 0.45 | 6.57 | 4.52 | 16.02 | 24.88 | 25.20 |
| Non-Food Articles | 4.26 | 161.0 | -0.98 | 0.63 | 4.69 | 6.91 | -1.35 | 22.15 | 13.35 |
| Fibres | 0.88 | 185.0 | 0.45 | -0.11 | 6.29 | 21.79 | -10.65 | 36.94 | 12.92 |
| Oil Seeds | 1.78 | 141.5 | -2.17 | 0.93 | 2.03 | 4.12 | -1.65 | 8.10 | 4.57 |
| Minerals | 1.52 | 248.6 | 0.00 | 0.00 | 15.25 | 7.34 | 11.33 | 28.48 | 25.91 |
| Fuel & Power | 14.91 | 147.6 | 0.00 | 0.00 | 8.29 | 5.35 | -7.81 | 10.73 | 8.56 |
| Liquefied Petroleum Gas | 0.91 | 128.9 | 0.00 | 0.00 | 0.18 | 14.99 | -7.45 | 15.30 | 2.41 |
| Petrol | 1.09 | 139.9 | 0.00 | 0.00 | 9.97 | 8.62 | -11.91 | 15.33 | 7.59 |
| High Speed Diesel Oil | 4.67 | 153.5 | 0.00 | 0.00 | 6.52 | 6.15 | -5.84 | 14.64 | 8.36 |
rj/mrs/dk/kol/14:41 hrs.
Press Information Bureau
Government of India
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Ministry of Finance
Six FDI Proposals Approved
New Delhi: October 7, 2010.
Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on October 1, 2010, Government has approved 6 Proposals of Foreign Direct Investment amounting to Rs. 5.46 Crore approximately.
Details of Proposals considered in the Foreign Investment Promotion Board (FIPB) Meeting held on 01.10.2010
Following 06 (Six) proposals have been approved.
| Sl. No. | Name of the applicant | Particulars of the proposal | FDI/NRI inflows (Rs. in crore) |
INDUSTRIAL POLICY & PROMOTION
| 1. | M/s Praxair India Pvt. Ltd. | To issue shares for consideration other than inward remittance. | No Inflow |
| 2. | M/s Newedge Broker India Pvt. Ltd. | Dilution of the foreign equity participation by way of introduction of an Indian resident joint venture partner. | No Inflow |
INFORMATION & BROADCASTING
| 3. | M/s What's On India Media Pvt. Ltd. | Induction of foreign equity to undertake the activity of TV channel for up-linking a non-news and current affairs TV channel. | 2.24 |
| 4. | M/s Hay House Publishers Pvt. Ltd. | Ex-post facto approval for increasing the foreign equity participation in a company engaged in the printing of foreign books and its distribution in India. | 3.21 |
| 5. | M/s Zee Entertainment Enterprises Ltd | Transfer of shares by way of share swap. | Nil |
TELECOMMUNICATIONS
| 6. | M/s Asergis Telecom Services Pvt Ltd., Bangalore | Transfer of equity shares to non resident to undertake the activities of Voice Mail/Audio text. | 0.01 |
The following 07 (Seven) proposals have been deferred:
| Sl. No | Name of the applicant | Particulars of the proposal | |
| 1. | M/s Falcon Tyres Ltd., Karnataka | Induction of foreign equity by Overseas Corporate Body to carryout the activity of manufacturing. | |
| 2. | M/s Jet Airways India Ltd. | Equity investment through the Qualified Institutions Placement (QIP) route. | |
| 3. | M/s GMR Airports Holding Limited, Bangalore | Induction of foreign equity in an investing company. | |
| 4. | M/s Pran Beverages (India) Pvt. Ltd., Kolkata | Induction of foreign equity by a company from Bangladesh. | |
| 5. | M/s Southern CNG Automobiles India Pvt. Ltd., Kolkata | Induction of foreign equity by a company from Bangladesh. | |
| 6. | M/s Telecordia Technologies Inc. USA | Review of cancellation of Original FC approval. | |
| 7. | M/s Flagship Infrastructure Pvt. Ltd., Mumbai | Ex-post-facto approval for issuance of warrants. | |
The following 05 (Five) proposals have been rejected:
| Sl. No | Name of the applicant | Particulars of the proposal | |
| 1. | Mr. Samir V.Mehta, Mumbai | To set up a Limited Liability Partnership (LLP) in India in conjunction with non-resident partners. | |
| 2. | M/s Shriram Capital Limited, Chennai | Induction of foreign equity in an investing company. | |
| 3. | M/s CNI Enterprise (India) Pvt. Ltd. | To make an amendment in the extant FC approval. | |
| 4. | M/s Quantium Solutions International Pte Limited | To make an amendment in the FC approval and expand activities to courier service. | |
| 5. | M/s Dudheshwar Nath Steel Pvt. Ltd. | To issue and allot equity shares against the advance money towards exports to carry out the business of manufacturing MS steel ingots. | |
by/gn/dk/kol/14:41 hrs.
Press Information Bureau
Government of India
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Ministry of Commerce & Industry
Import of Sensitive Items During April-July 2010
New Delhi: October 7, 2010.
The total import of sensitive items for the period April-July 2010 has been Rs.23039 crore as compared to Rs.18916 crore during the corresponding period of last year thereby showing an increase of 21.8%. The gross import of all commodities during same period of current year was Rs.515617 crore as compared to Rs.409518 crore during the same period of last year. Thus import of sensitive items constitutes 4.6% and 4.5% of the gross imports during last year and current year respectively.
Imports of pulses, cotton & silk and tea & coffee have declined at broad group level during the period. Imports of all other items viz. edible oil, automobiles, fruits & vegetables (including nuts), rubber, products of SSI, milk & milk products, spices, alcoholic beverages, marble & granite and food grains have increased during the period under reference.
In the edible oil segment, the import has increased from Rs.7371 crore last year to Rs.8764 crore for the corresponding period of this year. A significant feature of edible oil import is that import of crude oil has gone up by 25.9% and that of refined oil have gone down by 23.4%. The increase in edible oil import is mainly due to substantial increase in import of soya-bean crude oil.
Imports of sensitive items from Indonesia, China P RP, Argentina, Korea RP, Brazil, United States of America, Germany, Cote D' Ivoire, Thailand, Australia, New Zealand, United Kingdom, Czech Republic etc. have gone up while those from Myanmar, Malaysia, Ukraine, Canada, Japan, Benin, etc. have gone down.
rj/mrs/dk/kol/14:44 hrs.
Press Information Bureau
Government of India
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Ministry of Finance
India Signs First Tax Information Exchange Agreement with Bermuda
New Delhi: October 7, 2010.
India and Bermuda have signed a Tax Information Exchange Agreement (TIEA). The agreement was signed by Shri S. S. Palanimanickam, Minister of State for Revenue in the Ministry of Finance from Indian side and Dr. Ewart Brown, Premier of Bermuda from Bermuda side. This is the first TIEA being signed by India.
Salient features of this agreement are as follows:-
- It is based on international standard of transparency and exchange of information.
- Information must be relevant to the administration and enforcement of the domestic laws of the Contracting Parties concerning taxes covered by the agreement.
- The requesting State has to provide some minimum details about the information requested in order to justify the relevance criteria.
- Information is to be treated as secret and can be disclosed to only specified person or authorities, which are tax authorities or its oversight body.
- It also provides for disclosure of information to any other person or entity or authority or any other jurisdiction with the written consent of the competent authority of the requested Party.
- There is a specific provision that the requested Party shall use its information gathering measures to obtain the requested information even though that Party may not need such information for its own tax purposes.
- There is a specific provision for providing banking and ownership information.
- The Agreement also allows exchange of past information in criminal tax matters.
Speaking on the occasion, Shri Palanimanickam said that it is a great occasion for India to be signing its first TIEA with Bermuda. The Agreement is important in the perspective of efforts made by Global Forum to build an effective system for exchange of information around the world. India being the vice chair of Peer Review and Bermuda being the vice chair of Global Forum are playing important role in this work. The Minister expressed hope that the relationship between the two countries would be strengthened with this Agreement.
by/gn/dk/kol/14:45 hrs.
Press Information Bureau
Government of India
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Ministry of Finance
Pranab Mukherjee's Address at Seventh Annual India Investment Forum in New York
New Delhi: October 7, 2010.
Following is the text of the Speech of Finance Minister, Shri Pranab Mukherjee at the Seventh Annual India Investment Forum in New York:
"I am delighted to be here for the 7th Annual India Investment Forum in this city which is the financial capital of the world and address this impressive gathering, of top ranking India focused investors, business leaders from corporate India, representatives from the government institutions and senior executives and fund managers. I congratulate the organizers for their efforts and hope that they will continue to build on it in the years ahead.
The financial crisis that led to an unprecedented economic slowdown has compelled us to rethink some of the basic principles of economics and finance, the functioning of financial markets and the global economy.
Leaders of the G20 countries have come together to discuss and decide on issues relating to global financial instability and the resulting economic slowdown. They are finding ways to ensure better regulation of markets, strengthening the monitoring and response mechanisms to global developments and promoting growth in a sustainable manner. This is a big change. Indeed, we are all witness to an emerging new world order where there is a higher degree of interdependence amongst nations and, hopefully, there is also a more dynamic and equitable arrangement for global prosperity.
While it is my intention to hear from you on your concerns about investing in our country and your analysis of global prospects and that of the Indian economy, let me begin by sharing a brief overview of the recent developments in our economy and the current outlook for growth.
Overview of the Economy
Ladies and Gentlemen,
Over the last two decades, India's economy has evolved rapidly. The contribution of the services sector has increased to around 55 per cent of the country's Gross Domestic Product (GDP). India's external trade i.e. merchandise exports plus imports, as a proportion of GDP has more than doubled from less than 19 per cent in 1997-98 to close to 40 per cent in 2008-09. The country's financial integration with the world has been as rapid as its trade globalisation, if not more. As a broad measure of globalisation, the ratio of total external transactions (gross current account flows plus gross capital flows) to GDP have more than doubled from around 47 per cent to nearly 120 per cent in the same period.
The significant increase in the inflow of foreign capital that this period witnessed was important not so much for bridging the domestic savings-investment gap but for facilitating the financial intermediation of resources to meet the growing needs for long term and risk capital as well as technology for the Indian industry.
Since 2003-04, the Indian economy has witnessed a step-up in its GDP trend growth rate. This has essentially come about due to a significant improvement in our domestic investment and savings rates. The investment rate increased from about 25 per cent in 2002-03 to around 38 per cent in 2007-08 before declining to 35 per cent in 2008-09 due to the slowdown induced by the global financial crisis. During the same period, the savings rate increased from around 26 per cent to around 36.5 percent in 2007-08 before falling to 32.5 percent.
The period saw a significant spurt in the investment growth rate, in particular in private fixed investment and a supportive growth in private consumption. The result was domestic aggregate demand led GDP growth that averaged close to 9 per cent in the four year period from 2004-05 to 2007-08. This period also saw the setting-up and the implementation of prudent fiscal rules under the Fiscal Responsibility and Budget Management Act (FRBMA) 2003, which while releasing more resources for private investment gave a boost to the domestic capital market and business sentiments.
The global financial crisis and the resulting slowdown across the developed and the developing countries also impacted India. Our GDP growth declined by 2.5 percentage points to 6.7 per cent in 2008-09, followed by a growth of 7.4 per cent in 2009-10. A timely broad-based counter-cyclical policy package, comprising a substantial fiscal expansion along with liberal monetary policy support, proved effective in arresting the economic slowdown and putting the economy on a fast recovery path. The quarterly estimate of GDP for 2010-11, released at the end of August 2010, places the growth in real GDP at 8.8 per cent in the first quarter of the current fiscal. The recovery is broad based with growth in all sectors.
The challenge now is to quickly revert to the high GDP growth path of an average of 9 per cent plus and even find the means to cross the 'double digit growth barrier' in the coming year or two. Our objective is to harness this growth to make the development process more inclusive, strengthen food security, improve education opportunities and health facilities both in rural and urban areas. At the same time we are looking to address the weaknesses in our systems, structures and institutions at different levels of governance, making the public delivery mechanisms more robust and transparent, and sharply focus on the role of Government as an enabler.
Measures to Improve Investment Environment
Ladies and Gentlemen,
Let me now share with you some of the policy measures that we have taken up in the recent months to improve our investment environment.
After successfully managing the effects of the global slowdown, we have moved on to strengthen the domestic macroeconomic environment. The policy focus in the past few months has been on effecting a calibrated withdrawal of the stimulus imparted to the economy and a determined attempt to move towards the preferred path of fiscal consolidation over the coming years. There has been a renewed effort to tackle the growing burden of fertilizer and petroleum subsidies. We are seeking to make growth more broad-based and ensure that supply-demand imbalances are better managed.
Foreign Direct Investment
Foreign Direct Investment (FDI) flows have been quite robust in the last two years despite the general decline in global capital flows. India received FDI equity inflows of US$ 25.8 billion in 2009-10 and US$ 27.3 billion during 2008-09. The net portfolio flows from the foreign Institutional Investors (FIIs) surged in the year 2009-10 to a record US$ 30.25 billion after showing a net outflow of US $ 9.8 Billion in 2008-09 during the global crisis. These figures speak for themselves as to the strong measure of confidence reposed by the global investing community in the India growth story, particularly in the general global context of gradual and in certain instances an uncertain recovery.
On our part, a number of steps have been taken to simplify the FDI regime to make it easily comprehensible to foreign investors. Since early last year, for the first time, both ownership and control have been recognised as central to the FDI policy, and methodology for calculation of indirect foreign investment in Indian companies has been clearly defined. A consistent policy on downstream investment has also been formulated. Another major initiative has been the complete liberalization of pricing and payment of technology transfer fee, trademark, brand name and royalty payments. These payments can now be made under the automatic route.
As a further step, in order to make the FDI policy more user-friendly, all prior regulations and guidelines have been consolidated into one comprehensive document, which is reviewed every six months. The last review has been released at the end of September 2010. This has been done with the specific intent of enhancing clarity and predictability of our FDI policy to foreign investors. Government have also started stakeholder consultations on opening up sectors such as multi-brand retail and defence production to greater inflow of FDI.
The regulatory and supervisory framework of the securities market in India has been progressively strengthened through various legislative and administrative measures, and is now consistent with the best international practices. India's risk management systems are dynamic and have kept pace with the demands of the financial sector. The country presents exciting opportunities for global investors. The recovery of the benchmark market indices for India over the last two years has been quite rapid and remarkable and supports this assessment. There is also the added attraction, in the form of implementation of the Government's disinvestment programme, for retail investors and other market participants to share in the growth and prosperity of the Central Public Sector Undertakings.
Finally, in tune with the Indian policy of liberalisation, in September 2010, the Government increased the current limit of Fll investment in Government Securities and corporate bonds by US $ 5 billion each, raising the cap to US $ 10 billion and US $ 20 billion respectively. The incremental limit of US $ 5 billion could be invested in securities with residual maturity of over five years. All these factors contribute to making India an attractive investment destination.
Financial Sector Reforms
Ladies and Gentlemen,
One of the major fallouts of the global crisis has been the conscious attempts by all Governments to take a critical look at the architecture and operative components of their financial systems with an eye on ensuring financial stability. There is no one-size-fits-all approach in this and while the broad principles can be agreed upon, the exact nature of reforms have to be very specific.
We in India have decided to setup an apex-level Financial Stability and Development Council (FSDC), with a view to strengthen and institutionalise the mechanism for maintaining financial stability. Without prejudice to the autonomy of regulators, this Council would undertake macro prudential supervision of the economy, including the functioning of large financial conglomerates, and address inter-regulatory coordination issues. It will also focus on financial literacy and financial inclusion. We hope to institutionalize these arrangements very soon. We have also decided to set-up a Financial Sector Legislative Reforms Commission (FSLRC) to rewrite and clean up the financial sector laws and bring them in line with the requirements of the sector.
As a part of our International engagement and in an effort to address our own concerns on the flows of funds and also address concerns which our investors could have as a result of their compliance requirements, India has been engaged in the exercise of becoming a part of the Financial Action Task Force ( FATF). In June 2010, the FATF Plenary adopted the Mutual Evaluation Report on India and admitted India as 34th Country Member of FATF. This will help India and its investors in securing a more transparent and stable financial system by ensuring that financial institutions are not vulnerable to infiltration or abuse by organized crime groups. The FATF process will also help us in co-ordination of anti money laundering/countering financing of terror (AML/CFT) efforts at the international level.
Banking Reforms
The banking system channelizes resources from those who save to those who invest, and to transfer risk from those who can't afford it to those who are willing and able to bear it. This sector has come into sharper focus after the global crisis .The fact that India has not gone through any financial turbulence, as a result of the earlier phase of financial deregulation is not only remarkable, but a testimony to our consistent view that reforms in global standards have to be adapted to local conditions. However, the cost of banking intermediaries in India is higher and bank penetration is limited to only a few customer segments and geographies.
The Reserve Bank of India (RBI) is considering giving some additional banking licenses to private sector players, with a view to further diversify the Indian banking scenario and environment. While cross-border banking, in the post crisis period, has to be encouraged, future reforms in this area have to be guided by progress on adequate mechanisms and systems to prevent the possibility of sudden external contagion creating systemic risks for the domestic financial system.
Tax Policy
Ladies and Gentlemen,
A very important part of the investment environment is the tax policy. Complex laws and procedures complete with exemptions and incentives can leave potential investors with a hazy picture and also be a deterrent to decision making. The Government is committed to improve the efficiency and equity of the tax system, by eliminating distortions in the tax structure, introducing moderate levels of taxation, expanding the taxable base, promoting efficiency and equity while enhancing revenues and simplifying the language of the taxation provisions. The new Direct Taxes Code (DTC) has been unveiled with these objectives and is expected to come into effect shortly. Efforts are also underway to reform the indirect tax regime by introducing a country wide Goods and Services Tax (GST), based on a consensus between the different stakeholders. These measures will create for India a modern and more efficient tax system in near future.
Infrastructure Investment
The fast growth of the economy in recent years has placed an increasing stress on physical infrastructure, such as electricity, railways, roads, ports, airports, irrigation, urban and rural water supply and sanitation, all of which suffer from a substantial capacity deficit. During the XI Plan period (2007-08 to 2011-12), our Government targeted a sharp increase of infrastructure spending from around 4-5 per cent of GDP to 9 per cent of GDP in the terminal year of the Plan period. In financial terms, this represented a doubling of real infrastructure spending. I am happy to note that the actual financial spend in the first three years of the Plan period has remained largely on course and we have witnessed robust resource flows into infrastructure. The aspiration for the next Plan period (2012-2017) is even more ambitious with the projected spending likely to double once again to around US$ 1 trillion.
In order to sustain the high growth in infrastructure spending, it is essential to source more and more funds from the private sector. Accordingly, our Government has laid great emphasis on Public Private Partnerships (PPPs) which combine the efficiency and technological prowess of the private sector, with the public welfare orientation of Government. Nearly 30 per cent of the total spending on infrastructure sector, during the first 3 years of the XI Plan period, has come from private sources. As we go into the next Plan period, we expect this proportion to go up to nearly 50 per cent.
The PPP route for investment in Indian infrastructure represents a commercially attractive opportunity for foreign investors. First, nearly all the infrastructure sectors allow Foreign Direct Investment (FDI) to come in through the automatic route, to the extent of 100 per cent of the investment. Secondly, India has evolved a stable and transparent regulatory regime which promises a level playing field between public and private agencies, with regard to entry norms, conditionalities and dispute resolution. Regulators now exist in many sectors such as electricity, telecommunications, ports, airports, petroleum & natural gas, with a regulator for the coal sector on the anvil. Standardised and sophisticated contract documents in the form of concession agreements, procurement guidelines and bidding documents are being used for different sectors of infrastructure, ensuring a healthy balance between the interests of the public and private sectors. Finally, we have established unique and innovative financing instruments such as a scheme to support Viability Gap Funding (VGF) for PPP projects and specialised institutions for extending long term debt assistance to infrastructure projects, so as to effectively meet the financing challenge. The other real sector issues like land, environment and resettlement and rehabilitation (R&R) are under continuous scrutiny and examination, with a view to de-risking both greenfield and brownfield project development.
The extent of foreign participation – both through debt and equity – in the financing of India's infrastructure has been of the order of around 8-10 per cent in the recent past. I expect, going forward, a much greater degree of involvement of foreign investors in this sector. I look forward to your views on how we can make our investment environment more viable and attractive in key infrastructure sectors.
Prospects
Ladies and Gentlemen,
There are several factors that have emerged from the performance of the economy in the last 12 to 18 months, which, combined with an analysis of performance over the last couple of years, augur well for the Indian economy. There are some deep changes that have taken place in India, which suggest that the economy's fundamentals are strong. First, the rates of savings and investment have reached levels that even ten years ago would have been dismissed as a pipedream for India. On this important dimension, India is now completely a part of the world's fast-growing economies. Since these indicators are some of the strongest correlates of growth and do not fluctuate wildly, they speak well for India's medium-term growth prospects. It also has to be kept in mind that, as the demographic dividend begins to pay off in India, with the working age-group population rising disproportionately over the next two decades, the savings rate is likely to rise further.
Second, the arrival of India's corporations in the global market place and informal indicators of the sophisticated corporate culture that many of these companies exhibit also lend to the optimistic prognosis for the economy in the medium to long run.
In the short term it is reasonable to expect that the economy will go back to the robust growth path of around 9 per cent average that it was on before the global crisis slowed it down in 2008. To begin with, there has been a revival in investment and private consumption demand, though the recovery is yet to attain the pre-2008 momentum. Secondly, Indian exports have recorded impressive growth since November December 2009. The favourable capital market conditions with improvement in capital flows and business sentiments are very encouraging. Finally, the manufacturing sector has been showing a buoyancy reminiscent of the pre-slowdown years. There is also a substantial pick-up in corporate earnings and profit margins.
Today, as I stand before you, I represent a nation which is determined and dedicated to march ahead on the path of growth and progress. We are ready to shoulder our share of responsibilities for strengthening global financial stability and growth. We have faith and full confidence in ourselves and we have the political will to sustain our economic momentum.
India presents an opportunity for investment that you cannot afford to miss!"
dsm/by/gn/dk/kol/14:46 hrs.
Press Information Bureau
Government of India
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Ministry of Personnel, Public Grievances & Pensions
Centre's October 14 Holiday Extended to Gurgaon, Faridabad, Noida & Ghaziabad
New Delhi: October 7, 2010.
The Government had declared the 14th October (Thursday) 2010, as a Holiday for Central Government Offices, including Central Public Sector Undertakings, located in Delhi/New Delhi on the occasion of Closing Ceremony of the Commonwealth Games-2010. This holiday will also be applicable for Central Government Offices, including PSUs located in Gurgaon, Faridabad, Noida and Ghaziabad.
The above holiday is also being notified in exercise of the powers conferred by Section 25 of the Negotiable Instruments Act, 1881.
rs/sr/dk/kol/14:46 hrs.
Press Information Bureau
Government of India
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Ministry of Social Justice & Empowerment
Government Extends term of Committee to Draft a New Legislation to Replace the Persons with Disabilities Act, 1995
New Delhi: October 7, 2010.
The Government has extended the term of the Committee which was constituted in April this year to draft a new legislation to replace the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 till 31st December, 2010 for submission of draft legislation replacing the earlier Act.
The Ministry of Social Justice & Empowerment has said that the Committee will make an assessment of the financial implications - recurring and non-recurring - of the draft legislation prepared by it for the (i) Central Government, (ii) State Governments, (iii) Local Authorities, and (iv) others on whom obligations may be cast.
The Committee has been asked to ensure that the task of submitting new draft legislation may be completed within the extended time timeline of the Committee i.e. upto 31st December, 2010.
It may be recalled that the above Committee was formed on 30.04.2010 and it is headed by Dr. (Mrs.) Sudha Kaul, Vice-Chairperson, Indian Institute of Cerebral Palsy, Kolkota.
vba/rs/dk/kol/14:47 hrs.
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Palash Biswas
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