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Gems and Jewellery Exports to Grow by 30-35 per cent in 2010-11
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Modernization of India New Airport
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Environmental Accounting & Reporting Set to Become Mandatory for Companies
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| 03. TRADE & INVESTMENT |
| Economy Will Soon Return to 9% Growth Path, says Pranab |
| The Hindu Business Line: November 15, 2010 |
New Delhi: The Finance Minister, Mr Pranab Mukherjee, sees strong prospects for the Indian economy getting back, in the short term, to the nine per cent average economic growth level witnessed prior to the global economic crisis of 2008.
This expectation stems from the revival in investment and private consumption demand, impressive growth in merchandise exports since November-December 2009, favourable capital market conditions and improvement in capital flows besides manufacturing sector buoyancy reminiscent of the pre-slowdown years.
Addressing the India Economic Summit (IES) 2010 in the Capital today, Mr Mukherjee also came up with an encouraging outlook for the Indian economy in the medium to long run. He expressed confidence that the current high economic growth would be sustained in the coming decades as advantages like demographic dividend starts paying off.
The challenge now is to find the means to cross the ‘double digit growth barrier' in the coming year or two, he noted. “We are seeking to make growth more broad-based and ensure that supply demand imbalances are better managed.” Mr Mukherjee also told the IES, comprised largely of foreign investors, that the Government was striving to improve the regulatory environment in the country.
“As you know there are no off-the-shelf solutions available to the regulatory dilemmas facing any developing country. Each country has to chart its own path on the regulatory reform based on its native genius and the conditions on the ground. India too is striving to achieve the optimum path,” he said.
Financial stability council
On financial sector reforms, Mr Mukherjee said that India has decided to set up an apex-level financial stability and development council (FSDC), with a view to strengthen and institutionalise the mechanism for maintaining financial stability.
“This council would undertake macro prudential supervision of the economy, including the functioning of large financial conglomerates, and address inter-regulatory coordination issues. It would also focus on financial literacy and financial inclusion,” he added.
The Government has 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, Mr Mukherjee said.
India's gross domestic product (GDP) growth had averaged close to nine per cent in the four-year period from 2004-05 to 2007-08. Due to the global economic slowdown, the GDP growth declined to an average of seven per cent in 2008-09 and 2009-10. |
| Exports Set to Cross Target of $200 billion in 2010-11: Sharma |
| The Hindu Business Line: November 15, 2010 |
New Delhi: The Commerce and Industry Minister, Mr Anand Sharma, said on Sunday that the country's merchandise exports will cross the $200 billion target for 2010-11 and the Government is working with the industry to double India's exports of goods and services by 2014.
Speaking at the inaugural ceremony of the 30th India International Trade Fair 2010 here, Mr Sharma said, in this regard, he has asked the Commerce Department to develop a systematic plan for trade promotion.
“Sector-specific trade fairs need to be encouraged in those countries which have a demand for products in which Indian competitive strengths lies,” he said.
The Minister said work is on to build world class Exhibition and Convention facilities at Pragati Maidan and international airports in the National Capital Region, adding that his Ministry is pursuing the matter with the Urban Development Ministry and the Delhi Development Authority.
Mr Sharma said the India Trade Promotion Organisation, which is organising the Fair, needs to modernise itself.He said the Pragati Maidan ground, where the Fair is being held, presents a unique locational advantage, adding that a transformational change in this venue will position India as a convention hub of Asia, just as Singapore, China, Malaysia and even Vietnam have developed.
“The work on this activity will commence early next year,” he said, adding, “Work has also started in the earnest in creating similar facility near the international airport and I hope that when we meet next year, we would already have seen some positive movements on both these projects.”
Clean energy focus
The theme of this year's Trade Fair is ‘Energytech and Envirotech: Clean and Energy Efficient Technology, Products and Services', embodies the next big challenge for the entire global community – to ensure growth and development which is sustainable and in harmony with nature, he said. Companies and officials from over 24 countries are taking part in the Fair.
Maharashtra is the Partner State for the Fair and there is a Special Focus on Rajasthan and Chhattisgarh as these States are bringing in new technologies, including in renewable energy and bio-fuels.
In the first six months of the current fiscal, India's exports grew by 27.6 per cent over the same period last year to $103 billion. Exports in services have jumped from $16 billion in 2001 to $100 billion last year. The Minister said the Government has given incentives for market diversification of exports and to labour intensive sectors. |
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| FIIs Cross US$ 20 billion Mark |
| IBEF: October 06, 2010 |
| New Delhi: Net foreign institutional investor (FII) inflows crossed the US$ 20 billion mark on October 5, 2010, surpassing the US$ 17.7 billion high recorded in 2007, according to the Securities and Exchange Board of India (SEBI) data.
Significantly the data illustrated that while the bulk of the inflows—US$ 15.3 billion—came through the secondary market route, US$ 5 billion was invested in the country through initial public offerings (IPO), qualified institutional placement (QIP), rights offers and other equity issuances by Indian companies to foreigners.
Additionally, the net FII inflows in the debt segment also crossed the US$ 10 billion mark on October 5, 2010, as per SEBI data, which was also reported as a new yearly high. putting up a new high figure. The global investors increasingly believe in the India’s growth story. |
| Pvt Investment in Infra to Reach 50% |
| Business Standard: October 08, 2010 |
New Delhi: Finance Minister Pranab Mukherjee expects around 50 per cent of the total spending on infrastructure to come from the private sector by 2012, which will mark the end of the ongoing 11th Plan period. In the first three years of the Plan, nearly 30 per cent of infrastructure spending came from private sources.
“Nearly 30 per cent of the total spending on infrastructure sector during the first three years of the 11th 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,” Mukherjee said at the India Investment Forum.
Asking the global investor community to participate in the India growth story, he said India was looking forward to revert to the high gross domestic product (GDP) growth path, of an average of 9 per cent, and even find the means to cross the “double-digit growth barrier” in the next two years.
Recalling how the country managed to withstand the impact of the global financial meltdown, which pulled down the economic growth to 6.7 per cent in 2008-09 from 9 per cent in the preceding three years, he told global investors: “India presents an opportunity for investment that you cannot afford to miss.” India’s economic growth rate was 7.4 per cent in 2009-10 and is expected to be over 8.5 per cent during the current financial year.
He added the government was constantly trying to simplify the foreign direct investment (FDI) regime and to make it easily comprehensible to foreign investors.
The government had last year recognised both ownership and control as being central to the FDI policy, and methodology for the calculation of indirect foreign investment in Indian companies had been clearly defined. A consistent policy on downstream investment had also been formulated.
Another major initiative had been the complete liberalisation of pricing and payment of technology transfer fee, trademark, and brand name and royalty payments.
These payments could now be made under the automatic route, he said. |
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