Fundamentals are strong, says PM
Chennai, Source: The Economic Times
Despite the global meltdown, the fundamentals of Indian economy continue to remain strong. This affirmation came from Prime Minister Manmohan Singh himself while inaugurating the Pravasi Bhartiya Divas 2009, a congregation of overseas Indians, held for the first time in Chennai.
“We expect to achieve a growth rate of about 7% this year, which will be among the highest in the world. Much of India’s growth is internally driven and I expect we can maintain a strong pace of growth in coming years. That certainly will be our ambition,” he said. Referring to the recent terrorists attacks in Mumbai, the PM said there are some who would not like to see India succeed. “But we have shown, over and over again, that we will not allow the forces of terrorism and extremism to destabilise our polity, our economy and our society.
We have taken several measures to strengthen national security, to promote national cohesion and we will continue to work with the international community to ensure that there are no safe havens and launching pads for terrorists.”
The PM, for good measure, also spoke about India’s active involvement with G-20 countries, in creating a new global financial structure. “There is need to ensure that any new architecture that emerges is suited to the new challenges and vulnerabilities facing the world economy and simultaneously, it must be reflective of the changes that have taken place in the economic structure over the years. Countries like India have a right to be shown their due place in the evolving scheme of things,” he said.
Recalling the efforts of global Indians for making India what it is today, he said India’s rise is increasingly being regarded as an important dimension of the emerging world order. “India's counsels on key global challenges are not just being heard, but are being actively sought after and in this enterprise of changing the image of India, the overseas Indian community has played a magnificent role,” he noted.
During his speech, the prime minister also made a specific mention of India’s nuclear feats and the lifting of restrictions with the help of the international community to end its nuclear isolation of the past 30 years. The overseas Indian community, especially in the US, played a key role in ensuing this outcome and in mobilising congressional support for it in the US, he said.
“This is a sign of the growing role that Indian origin communities are now playing in public policy and opinion making across the world. We applaud you for that contribution,” the PM added. “We feel proud of the great achievements of the people of Indian origin around the world. More than any other people, the people of India and of Indian origin know the meaning of tolerance and the art of living together, regardless of caste, creed, religion or language.” |
Government approves Integrated Energy Policy
Kolkata, Source: The Financial Express
The government has approved an Integrated Energy Policy that envisions a road-map for sustainable growth with energy security over a reasonable period of time.
The policy seeks to make energy markets more competitive, have market-determined energy pricing and resource allocation, transparent and targeted subsidy disbursal and improved efficiency. The policy, prepared by the Planning Commission, at optimal exploitation of domestic energy resources and exploring and acquiring energy assets abroad to attain energy security for the country.
Home Minister P Chidambaram, who briefed reporters on the approval of the integrated energy policy, said that the government will set up a monitoring committee under the chairmanship of the Cabinet Secretary to review the progress of implementation of the policy.
The Cabinet Committee on Economic Affairs (CCEA) gave its approval to Suzlon Energy's proposal to undertake Right Issue of equity to its existing shareholders. The approval, which is subject to the conditions recommended by the Foreign Investment Promotion Board (FIPB), allows Suzlon to make the Right Issue of equity to its existing shareholders including persons resident outside India for an amount not exceeding Rs 1,800 crore.
In what will lend additional risk cover for micro, small and medium exporters (MSMEs), the CCEA gave its approval for allocation of Rs 350 crore to Export Credit Guarantee Corporation of India (ECGC). The fund which will come from the National Export Insurance Account (NEIA) will provide higher risk cover to MSME exporters, which will go up from the existing 85% to 95%. For banks financing such MSME exporters, the riskk cover is being enhanced from the present 75% to 85%.
The CCEA also extended a scheme that allows public sector enterprises (PSEs) to invest their surplus funds in select mutual funds. The government had in August 2007 withdrew prohibition on investing surplus funds of navratna and miniratna PSEs in public sector mutual funds, a decision which it was to review a year later. With Friday's decision, the scheme has been extended from August 2008 till further orders. |
India will continue to be a magnet for FDI funds:
Shri Kamal Nath
Shri Kamal Nath, Union Minister of Commerce & Industry, has stated that even in the current global crisis, India will continue to be a magnet for foreign direct investment (FDI) funds. Addressing the Partnership Summit 2009 “Trade & Investment: Focussing on Opportunities and Growth”, the Minister said that during April-October 20008, the FDI inflows to India stood at $ 18.7 billion, which is more than double the inflow during the same period last year. The Summit, which is organized by the Confederation of Indian Industry (CII), was attended by a large number of Ministers from India and abroad, representatives from trade and industry.
Speaking at the Summit, Shri Kamal Nath said: “India looks forward to partner with countries that have a strong agri-food sector from production through processing and distribution to partner with India in bringing about the second agricultural revolution”. He further stated that the second sector that offers immense potential is the SME sector. “India’s production design and process engineering costs – especially in the case of medium sized companies, are 70-80 per cent lower than in a developed country”, he added.
On the Doha Round of talks at WTO, the Minister said: “We cannot have a Development Round without an outcome which provides full comfort to the livelihood and food security concerns of the poor in the developing countries. These are too vital to be the subject of trade-offs. There cannot be a one size fits all approach. While developing countries have aspirations of moving from poverty to a semblance of the prosperity enjoyed by common people in countries of the North, the developed countries, quite validly have expectations from the rest of the WTO membership. The challenge that we have to grapple with is how to reconcile the legitimate aspirations of some with the understandable expectations of others. The key to finding this convergence would also be, I presume, the key to finding the convergence between globalisation and social justice”. |
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EXPORTS UP BY 19.4% IN APRIL- NOVEMBER
India’s Cumulative value of exports for the period April- November, 2008 was US $ 119301 million (Rs.523879 crore) as against US $ 99912 million (Rs.404417 crore) registering a growth of 19.4 per cent in Dollar terms and 29.5 per cent in Rupee terms over the same period last year. Exports during November, 2008 were valued at US $ 11505 million which was 9.9 per cent lower than the level of US $ 12768 million during November, 2007. In rupee terms, exports touched Rs.56374 crore, which was 12.0 per cent higher than the value of exports during November, 2007.
India’s Imports during November, 2008 were valued at US $ 21571 million representing an increase of 6.1 per cent over the level of imports valued at US $ 20329 million in November, 2007. In Rupee terms, imports increased by 31.8 per cent. Cumulative value of imports for the period April- November, 2008 was US $ 203642 million (Rs.897246 crore) as against US $ 153109 million (Rs.620050 crore) registering a growth of 33.0 per cent in Dollar terms and 44.7 per cent in Rupee terms over the same period last year.
Oil imports during November, 2008 were valued at US $ 7254 million which was 11.9 per cent higher than oil imports valued at US $ 6483 million in the corresponding period last year.
Oil imports during April- November, 2008 were valued at US $ 74114 million which was 55.7 per cent higher than the oil imports of US $ 47597 million in the corresponding period last year.
Non-oil imports during November, 2008 were estimated at US $ 14318 million which was 3.4 per cent higher than non-oil imports of US$ 13846 million in November, 2007. Non-oil imports during April- November, 2008 were valued at US $ 129528 million which was 22.8 per cent higher than the level of such imports valued at US$ 105511 million in April- November, 2007.
The trade deficit for April- November, 2008 was estimated at US $ 84341 million which was higher than the deficit at US $ 53197 million during April- November, 2007. |
SEZ tax benefits extended to sub-contractors
Source : Business Standard
The commerce ministry amended rules governing the Special Economic Zones (SEZs). About 16 amendments to the rules were incorporated in the SEZ rule book, catering to various demands of exporters and developers operating in the tax-free industrial enclaves for exports.
These include allowing reimbursement of duty through the Duty Drawback Scheme to suppliers outside SEZs even if payment is made in rupees. Duty Drawback enables exporters to claim back taxes paid while importing, or any other local taxes paid. Tax benefits enjoyed by developers and contractors are now being extended to sub-contractors, who are engaged in developing an SEZ.
In addition, the new rules allowed SEZ developers to provide housing to staff and workers within the tax-free enclaves. Gems and jewellery, one of the most affected segments due to the economic slowdown, has been given some relief.
These units will be allowed to bring back consignments, which have been found to be defective by the overseas buyer, or refused payment.
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India participates in WEF Meeting in Davos
Shri Kamal Nath, Union Minister of Commerce and Industry, attended the World Economic Forum (WEF) Meeting, in Davos (Switzerland) from 28th January to 31st January 2009. The five-day WEF meeting (Jan. 28 to Feb. 01) was attended by over 2,500 participants from 96 countries. The meeting assumes significance as more than 40 Heads of State and Government participate. Business leaders from all sectors and from all regions will be represented. Other participants include heads of NGOs and labour leaders, social entrepreneurs and young global leaders.Shri Kamal Nath, during the WEF meeting, had several bilateral meetings with Australia, Germany, USA, EU, New Zealand, Brazil and Thailand among others. |
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