2009-10 will be more challenging : RBI Governor
RBI to manage Government Borrowing : D Subbarao
[New Delhi, 27 March 2009] The year 2009-10 will be more challenging as compared to the previous fiscal year, said Dr D Subbarao, Governor, Reserve Bank of India. While speaking at the CII's National Conference and Annual Session 2009, the governor said that painful adjustment is inevitable and the RBI's challenge would be to minimize the pain. He also assured that the government's large borrowing programme will be managed by the RBI so that interest rates are least impacted.
Giving a comprehensive yet complete picture of the crisis, Dr Subbarao pointed out that compared to the 1997 Asian Crisis India is now more integrated with the world economy, not just through trade linkages but also via equally deep financial linkages. A third transmission channel, in addition to the real and financial channels, is through confidence. Drying up of overseas financing, slackening demand and confidence loss in the economy are the factors that have led to growth moderating at a pace that is steeper than earlier thought, said the Governor.
While highlighting the Reserve Bank's response to the crisis, Dr Subbarao said that RBI has adopted a well directed approach of maintaining ample rupee and foreign exchange liquidity and credit flow to productive sectors through both conventional and unconventional measures. As a consequence of the measures, potential liquidity of Rs 390,000 crore has been injected into the system and call rates have been brought within the LAF corridor. However, the governor remained concerned that although banks' credit has expanded, the total flow of resources to the commercial sector has declined.
On evaluation of the government's response, Dr Subbarao pointed out that while in advanced economies, the crisis translated from the financial to the real sector, in emerging economies it was vice versa. Therefore even though the origin of the crisis across the world is common, the response is country specific. In India, healthy inflation outlook, lower crude prices, modest current account deficit, well functioning financial markets, minimal wealth loss and social safety net system will provide a cushion in these times of distress. He assured that when the recovery comes in India, it will be faster and swifter than in advanced economies.
Mr R Seshasayee, Past president, CII and Managing Director, Ashok Leyland Limited, while moderating the session, said that the current crisis presents a huge opportunity for Indian business leadership. The current challenge facing India is to reassess its growth model to ensure certain and sustainable growth. Amidst the possibility of an emerging bipolar world economy with China and U.S. at its centre stage, India should also seek a place without which it may face regional imbalance and geopolitical risks.
While delivering the concluding remarks, Mr K V Kamath, President, Confederation of Indian Industry, struck a positive note saying that if India could focus on its positives, it would be among the first ones to recover from the crisis.
Thursday, April 2, 2009
INDIAN ENTREPRENEURS NEED CAPACITY TO DELIVER
CII and Harvard Business Publishing launch 'India's Global Powerhouses', a book authored by Prof. Nirmalya Kumar
[New Delhi, 01 April 2009] As India offers huge consumer base, a company with largest domestic operations in India automatically becomes a global enterprise. But in order to sustain this position Indian enterprises have to differentiate and innovate to the global standards. Indian Industry has to understand that in a global platform, cost advantage will no more work as much as inherent capacity to deliver, said Prof. Nirmalya Kumar, Director of Centre for Marketing, London Business School.
He was speaking at the launch of 'India's Global Powerhouses', a book authored by the professor. The session was organised jointly by the Confederation of Indian Industry (CII) and Harvard Business Press. Nirmalya Kumar is Professor of Marketing, Faculty Director for Executive Education, Director of Centre for Marketing and Co-Director of Aditya Birla India Centre at London Business School.
Addressing the gathering Professor Kumar, said that the book attempts to broaden Indian commerce perspective from a short cut based approach to globally sustainable management competency policy. He highlighted that Indian management pool holds the intelligence quotient, but should also claim associated intellectual property rights. An effective management will pave way for India gaining global management lead.
He further stated, the book profiles top Indian enterprises with truly global operations. The world today wants to learn about India's potential. The book conveniently positions the possibilities of working in this vast domestic market and how Indian companies are a success story globally.
Earlier giving the welcome address, Mr Vinay Hebbar, Country Head, Harvard Business Press stated this is professor's fourth book with the publishing group. The previous three books have been extremely successful in shaping management thoughts and ideas in India.
Delivering the vote of thanks, Mr. Vikram Badshah, Head - Public Policy, CII, stated that the book will transfer entire gambut of business approach, which traces the history of Indian industrialisation. The book will answer the quest for Indian business globally, and highlight the associated approaches for operations and marketing in the globalised world.
[New Delhi, 01 April 2009] As India offers huge consumer base, a company with largest domestic operations in India automatically becomes a global enterprise. But in order to sustain this position Indian enterprises have to differentiate and innovate to the global standards. Indian Industry has to understand that in a global platform, cost advantage will no more work as much as inherent capacity to deliver, said Prof. Nirmalya Kumar, Director of Centre for Marketing, London Business School.
He was speaking at the launch of 'India's Global Powerhouses', a book authored by the professor. The session was organised jointly by the Confederation of Indian Industry (CII) and Harvard Business Press. Nirmalya Kumar is Professor of Marketing, Faculty Director for Executive Education, Director of Centre for Marketing and Co-Director of Aditya Birla India Centre at London Business School.
Addressing the gathering Professor Kumar, said that the book attempts to broaden Indian commerce perspective from a short cut based approach to globally sustainable management competency policy. He highlighted that Indian management pool holds the intelligence quotient, but should also claim associated intellectual property rights. An effective management will pave way for India gaining global management lead.
He further stated, the book profiles top Indian enterprises with truly global operations. The world today wants to learn about India's potential. The book conveniently positions the possibilities of working in this vast domestic market and how Indian companies are a success story globally.
Earlier giving the welcome address, Mr Vinay Hebbar, Country Head, Harvard Business Press stated this is professor's fourth book with the publishing group. The previous three books have been extremely successful in shaping management thoughts and ideas in India.
Delivering the vote of thanks, Mr. Vikram Badshah, Head - Public Policy, CII, stated that the book will transfer entire gambut of business approach, which traces the history of Indian industrialisation. The book will answer the quest for Indian business globally, and highlight the associated approaches for operations and marketing in the globalised world.
Tuesday, March 31, 2009
Chamling commits IT exemption to business community
Chamling commits IT exemption to business community
Staff Reporter
Source: Sikkim Express)
GANGTOK, March 30: The ruling Sikkim Democratic Front (SDF) party will be formally releasing its list of candidates for the forthcoming Assembly and Lok Sabha elections on April 3 on the auspicious occasion of Ram Navami.
This was informed by SDF president and Chief Minister Pawan Chamling during a meeting with members of the business community at Samman Bhavan here today.
The Chief Minister said that the SDF party will be announcing its candidates on the auspicious occasion of Ram Navami and the party will create a Ram Rajya in Sikkim, informed some businessmen who attended the meeting.
The Chief Minister also reiterated that the SDF party is committed to deliver income tax exemption to the left out business community of Sikkim at par with Sikkim Subject holders.
The commitment was made during the interaction of the Chief Minister with the members of the business community at Samman Bhavan. Some 250 members of the business community from all parts of the State had been invited by the Chief Minister for an interaction which lasted almost two hours.
The Chief Minister said that he is working to deliver income tax exemption to the business community and promised that he will achieve this, said one businessman who attended the meeting. “The meeting was very fruitful”, he said.
It is informed that the Chief Minister during the meeting underlined the rapid developmental strides Sikkim has been making benefiting all sections of the Sikkimese society including the business community. He also appealed the business community to take up new business ventures in tune with the changing times, it is informed.
Particularly focusing on the commerce and trade sector in Sikkim, Mr. Chamling highlighted the new opportunities before the local trading community presented by Nathu La border trade and coming up projects like Pakyong airport, rail link up to Rangpo. He also called up the business community to actively participate in the floriculture sector of the State, said one businessman. The business community was appealed to come ahead to help the farmers engaged in floriculture and make the sector stable, he said.
The Chief Minister also called up the business community to come up with new industrial projects and said that he was ready to give land and loans, said another businessman who attended the meeting. The Chief Minister pointed out that outside companies are only come forward for such projects and questioned why the locals are not coming forward, he said.
The Chief Minister was also very keen that the local businessmen and investors should come forward for doing mini-hydel power projects in the State, it is informed. He also highlighted the beautification works that was done in Gangtok and Namchi and informed that similar projects are coming up in other urban areas of the State like Rangpo and Namchi.
Staff Reporter
Source: Sikkim Express)
GANGTOK, March 30: The ruling Sikkim Democratic Front (SDF) party will be formally releasing its list of candidates for the forthcoming Assembly and Lok Sabha elections on April 3 on the auspicious occasion of Ram Navami.
This was informed by SDF president and Chief Minister Pawan Chamling during a meeting with members of the business community at Samman Bhavan here today.
The Chief Minister said that the SDF party will be announcing its candidates on the auspicious occasion of Ram Navami and the party will create a Ram Rajya in Sikkim, informed some businessmen who attended the meeting.
The Chief Minister also reiterated that the SDF party is committed to deliver income tax exemption to the left out business community of Sikkim at par with Sikkim Subject holders.
The commitment was made during the interaction of the Chief Minister with the members of the business community at Samman Bhavan. Some 250 members of the business community from all parts of the State had been invited by the Chief Minister for an interaction which lasted almost two hours.
The Chief Minister said that he is working to deliver income tax exemption to the business community and promised that he will achieve this, said one businessman who attended the meeting. “The meeting was very fruitful”, he said.
It is informed that the Chief Minister during the meeting underlined the rapid developmental strides Sikkim has been making benefiting all sections of the Sikkimese society including the business community. He also appealed the business community to take up new business ventures in tune with the changing times, it is informed.
Particularly focusing on the commerce and trade sector in Sikkim, Mr. Chamling highlighted the new opportunities before the local trading community presented by Nathu La border trade and coming up projects like Pakyong airport, rail link up to Rangpo. He also called up the business community to actively participate in the floriculture sector of the State, said one businessman. The business community was appealed to come ahead to help the farmers engaged in floriculture and make the sector stable, he said.
The Chief Minister also called up the business community to come up with new industrial projects and said that he was ready to give land and loans, said another businessman who attended the meeting. The Chief Minister pointed out that outside companies are only come forward for such projects and questioned why the locals are not coming forward, he said.
The Chief Minister was also very keen that the local businessmen and investors should come forward for doing mini-hydel power projects in the State, it is informed. He also highlighted the beautification works that was done in Gangtok and Namchi and informed that similar projects are coming up in other urban areas of the State like Rangpo and Namchi.
Sunday, March 29, 2009
PM WITH CAPTAINS OF INDUSTRIES
PM’S remarks at the meeting with captains of industry
--------------------------------------------------------------------------------
New Delhi dt 28.March 2009
The Prime Minister, Dr. Manmohan Singh, had a meeting with the captains of industry in New Delhi today. Following is the text of Prime Minister’s remarks on the occasion:
“We had met in the first week of November last year, in the shadow of the meltdown which had originated from global macroeconomic imbalances, and problems in the financial sector of the developed world, and reached the shores of the rest of the world. India had also started experiencing the first shock waves of export demand attrition and constriction of capital inflows. Besides, the Indian financial sector was facing a liquidity shortage. Overall sentiment had also been dampened by the impact of the crisis on global and domestic capital markets and the consequent attrition of the savings of many individuals and corporates.
Many valuable suggestions were received in that meeting. These related to the need to maintain adequate liquidity, problems of credit flow and credit cost on the domestic and foreign fronts, special issues of certain stressed sectors, possible fiscal and other measures, and steps to ensure that domestic industry is not adversely affected by the dumping of products by other countries.
I had immediately after the meeting constituted an Apex Group under my Chairmanship to monitor the developments in the economy and take the necessary measures. Since then, the Government and the RBI have, from time to time, come out with measures which were considered necessary and possible. The RBI has steadily adjusted the policy rates downwards and has announced a number of steps in support of MSMEs, NBFCs, and the housing and export sectors. Guidelines have also been issued for restructuring of loans, increasing the rates on non-resident deposits and relaxing the criteria for external commercial borrowings. The Government has announced two stimulus packages, one in December 2008 and the other in January 2009. In these packages, and in subsequent announcements in the Interim Budget, a number of measures have been taken to provide relief to exporters; CENVAT, service tax, and duty concessions to industry; and support to infrastructure projects, and to increase Government expenditure despite an elevated level of fiscal deficit. The Government has also been in touch with banks and has been monitoring the sectoral credit flows, especially by the public sector banks. The Cabinet Secretary has been interacting with the Chief Secretaries of States, as almost the entire additional budgeted amounts have been released to the States and their role in ensuring expenditures on ground is now crucial.
While we need to bear in mind that the time taken for these steps to take effect varies across measures and sectors, there are signs of improvement in sectors like steel and cement. The auto sector after a difficult patch seems to be showing signs of recovery. Food grain production for 2008-09 is likely to be in excess of 228 million tonnes. The rural demand for goods and services appears quite robust and the outlook in the agricultural sector gives room for optimism.
At the same time, we are aware of the problems that persist in certain sectors and sub-sectors, particularly where export dependence is high. We are monitoring these sectors. We are aware that a big push to infrastructure would have a counter-cyclical influence and have taken steps to ensure that this happens in 2009-10 and beyond. On the credit front, the figures of the RBI at the end of February 2009 indicate that while the credit growth of public sector banks on a year-on-year basis this year has been 23 per cent against 21.9 per cent of the corresponding period of 2007-08, the credit growth of private banks and foreign banks has been of the order of one-third to one-fourth of what it was a year ago. While public sector banks have reduced the prime lending rates in the last three months between 150 and 200 basis points, other Scheduled Commercial Banks are yet to respond in equal measure. With ample liquidity and low inflation, there is scope perhaps for a further moderation in interest rates. Domestic credit flow for productive needs has to be definitely maintained at reasonable cost.
We are, therefore, in a situation where on the one hand we are decidedly better placed than most countries in the world, on the other hand, there seems to be uncertainty on how developments abroad, positive and negative, will affect us. To tackle a regime of low inflation and demand uncertainties across sub-sectors of the real economy, to ensure that the financial sector remains healthy and supportive, to husband foreign exchange reserves responsibly, to sustain a high level of expenditure bearing in mind the need for fiscal discipline, and to act continuously to improve general sentiment are challenges that we confront as a nation. We need to be particularly sensitive to the impact of the slowdown on the weakest in the organized as well as the unorganized sectors. We must meet the challenge of job losses caused by the slowdown. These are challenges which can be understood and met only if all the stake-holders concerned continuously exchange ideas and support each other with confidence in the future, and concern for the well being of all. I have great faith and confidence in India’s entrepreneurs and particularly in the wisdom and experience of captains of industry assembled here today to meet the challenges confronting our economy. The world today looks at India with respect and hope: respect for our calibrated reforms which have resulted in growth with justice, and hope that India would be an engine of global growth for the world economy. I am confident that we will all work together to fulfil these expectations, and secure the growth essential for our people. I would now request your comments and your assessment of the present economic situation and the steps taken so far and to suggest what needs to be done in the immediate as well as medium term future.”
Source:PIB
--------------------------------------------------------------------------------
New Delhi dt 28.March 2009
The Prime Minister, Dr. Manmohan Singh, had a meeting with the captains of industry in New Delhi today. Following is the text of Prime Minister’s remarks on the occasion:
“We had met in the first week of November last year, in the shadow of the meltdown which had originated from global macroeconomic imbalances, and problems in the financial sector of the developed world, and reached the shores of the rest of the world. India had also started experiencing the first shock waves of export demand attrition and constriction of capital inflows. Besides, the Indian financial sector was facing a liquidity shortage. Overall sentiment had also been dampened by the impact of the crisis on global and domestic capital markets and the consequent attrition of the savings of many individuals and corporates.
Many valuable suggestions were received in that meeting. These related to the need to maintain adequate liquidity, problems of credit flow and credit cost on the domestic and foreign fronts, special issues of certain stressed sectors, possible fiscal and other measures, and steps to ensure that domestic industry is not adversely affected by the dumping of products by other countries.
I had immediately after the meeting constituted an Apex Group under my Chairmanship to monitor the developments in the economy and take the necessary measures. Since then, the Government and the RBI have, from time to time, come out with measures which were considered necessary and possible. The RBI has steadily adjusted the policy rates downwards and has announced a number of steps in support of MSMEs, NBFCs, and the housing and export sectors. Guidelines have also been issued for restructuring of loans, increasing the rates on non-resident deposits and relaxing the criteria for external commercial borrowings. The Government has announced two stimulus packages, one in December 2008 and the other in January 2009. In these packages, and in subsequent announcements in the Interim Budget, a number of measures have been taken to provide relief to exporters; CENVAT, service tax, and duty concessions to industry; and support to infrastructure projects, and to increase Government expenditure despite an elevated level of fiscal deficit. The Government has also been in touch with banks and has been monitoring the sectoral credit flows, especially by the public sector banks. The Cabinet Secretary has been interacting with the Chief Secretaries of States, as almost the entire additional budgeted amounts have been released to the States and their role in ensuring expenditures on ground is now crucial.
While we need to bear in mind that the time taken for these steps to take effect varies across measures and sectors, there are signs of improvement in sectors like steel and cement. The auto sector after a difficult patch seems to be showing signs of recovery. Food grain production for 2008-09 is likely to be in excess of 228 million tonnes. The rural demand for goods and services appears quite robust and the outlook in the agricultural sector gives room for optimism.
At the same time, we are aware of the problems that persist in certain sectors and sub-sectors, particularly where export dependence is high. We are monitoring these sectors. We are aware that a big push to infrastructure would have a counter-cyclical influence and have taken steps to ensure that this happens in 2009-10 and beyond. On the credit front, the figures of the RBI at the end of February 2009 indicate that while the credit growth of public sector banks on a year-on-year basis this year has been 23 per cent against 21.9 per cent of the corresponding period of 2007-08, the credit growth of private banks and foreign banks has been of the order of one-third to one-fourth of what it was a year ago. While public sector banks have reduced the prime lending rates in the last three months between 150 and 200 basis points, other Scheduled Commercial Banks are yet to respond in equal measure. With ample liquidity and low inflation, there is scope perhaps for a further moderation in interest rates. Domestic credit flow for productive needs has to be definitely maintained at reasonable cost.
We are, therefore, in a situation where on the one hand we are decidedly better placed than most countries in the world, on the other hand, there seems to be uncertainty on how developments abroad, positive and negative, will affect us. To tackle a regime of low inflation and demand uncertainties across sub-sectors of the real economy, to ensure that the financial sector remains healthy and supportive, to husband foreign exchange reserves responsibly, to sustain a high level of expenditure bearing in mind the need for fiscal discipline, and to act continuously to improve general sentiment are challenges that we confront as a nation. We need to be particularly sensitive to the impact of the slowdown on the weakest in the organized as well as the unorganized sectors. We must meet the challenge of job losses caused by the slowdown. These are challenges which can be understood and met only if all the stake-holders concerned continuously exchange ideas and support each other with confidence in the future, and concern for the well being of all. I have great faith and confidence in India’s entrepreneurs and particularly in the wisdom and experience of captains of industry assembled here today to meet the challenges confronting our economy. The world today looks at India with respect and hope: respect for our calibrated reforms which have resulted in growth with justice, and hope that India would be an engine of global growth for the world economy. I am confident that we will all work together to fulfil these expectations, and secure the growth essential for our people. I would now request your comments and your assessment of the present economic situation and the steps taken so far and to suggest what needs to be done in the immediate as well as medium term future.”
Source:PIB
STATISTICS UPDATE ON SIKKIM
Sikkim presently has 25,000 government employees AND the Government spends a sum of Rs. 500 crores annually to pay their salaries. Total number of 1 lakh and 14 thousand households in Sikkim
TOURISTS ARRIVAL IN SIKKIM ON INCREASE
Domestic tourist arrivals on the rise in Sikkim
March 28th, 2009
Gangtok, March 28 (IANS) Domestic tourist inflow into Sikkim is on the rise so far this year, but there has been a drop in foreign tourists visiting the state.
According to tourism department’s records, as many as 27,138 domestic tourists arrived in Sikkim in January 2009. This is 5,623 more than the number of tourists who visited the state last year in January. Similarly, in February, 32,038 domestic tourists visited the northeastern state, 7,883 more than the corresponding period in 2008.
The numbers are good and what is encouraging for the tourism sector is that even 2008 was a good year. As many as 44,275, 38,415 and 32,090 domestic tourist arrivals respectively were recorded in the last three months of 2008. In 2007, 38,695, 34,143 and 29,676 domestic tourists visited the state in October, November and December respectively.
According to available records, the arrival of international tourists has, however, seen a drop so far this year. In January and February 2009, only 696 and 1,053 international tourist arrivals were recorded. Last year the numbers for these two months were 910 and 1,106 respectively.
Sikkim, however, witnessed an increase in international tourists inflow in the overall winter tourist season running from October 2008 to February 2009. During this period, 9,173 foreign travellers came to Sikkim. In the same period in the previous season the figure was marginally lower at 8,811.
March 28th, 2009
Gangtok, March 28 (IANS) Domestic tourist inflow into Sikkim is on the rise so far this year, but there has been a drop in foreign tourists visiting the state.
According to tourism department’s records, as many as 27,138 domestic tourists arrived in Sikkim in January 2009. This is 5,623 more than the number of tourists who visited the state last year in January. Similarly, in February, 32,038 domestic tourists visited the northeastern state, 7,883 more than the corresponding period in 2008.
The numbers are good and what is encouraging for the tourism sector is that even 2008 was a good year. As many as 44,275, 38,415 and 32,090 domestic tourist arrivals respectively were recorded in the last three months of 2008. In 2007, 38,695, 34,143 and 29,676 domestic tourists visited the state in October, November and December respectively.
According to available records, the arrival of international tourists has, however, seen a drop so far this year. In January and February 2009, only 696 and 1,053 international tourist arrivals were recorded. Last year the numbers for these two months were 910 and 1,106 respectively.
Sikkim, however, witnessed an increase in international tourists inflow in the overall winter tourist season running from October 2008 to February 2009. During this period, 9,173 foreign travellers came to Sikkim. In the same period in the previous season the figure was marginally lower at 8,811.
WHAT INDIANS WANT TO SEE BY 2022
100% literacy, innovation, world-class infrastructure and sustainable development in a corruption-free society are top priorities for Indians, says the report
[New Delhi, 26 March 2009] CII, Yi, and The Boston Consulting Group (BCG) today announced the launch of India@75: The Peoples' Agenda with an objective to spark a transformation of India by the year 2022. The first step towards transforming India into an economically vital, technologically innovative, socially & ethically vibrant leader was to create an aligned agenda. The 'Peoples' agenda' was commissioned to involve people across the country in a visioning of how India could be at 75 years of independence.
"India@75 is the most tested and supported idea in India today" said Professor CK Prahalad. He also adds that "India@75 is an election manifest. If our politicians want to know what people want, they should look to what India@75 has unearthed." Professor Prahalad is the inspiration behind India@75. At the India@60 celebrations, he posed the idea of looking ahead and engaging the populace of India to envision and act for an India@75. He then helped structure and guide the exercise over the past year.
BCG developed an innovative approach that was structured at the grassroots level of the state level, since each state is unique, at its own stage of development, facing its own unique sets of issues. This included hearing & studying 6,000 voices across many different geographies, different socio-economic classes, different age groups, different occupations, different genders and different religions. Unlike any vision document that has come before, this was written by the people of India and every one of their voices is captured in the document.
Mr. Gopal Srinivasan, Chairman of CII India@75 Mission said "Across the country, people had strong aspirations of what they wanted for India@75. The five aspirations that cut across all geographies and people are:
Education and skills is a top priority for all the people: 100% literacy; 200 million college graduates and 500 million skilled workforce
Efficient infrastructure deployment can change the pace of India's growth dramatically
Development has to be environmentally sustainable � that is non-negotiable
Innovation and 'next practices' are key to progress: We must find new ways to do things
Corruption is seen as a major corroding influence eating away the vitality of India: India can become a moral leader in the world"
"In fact India@75 can show us how we can take advantage of this economic situation. Everyone sees India becoming a global leader, and perhaps this crisis is just an opportunity," said Mr. Chandrajit Bannerjee, Director General of CII.
"India@75 is a rallying cry for the young in our country. We want to create a volunteer corps of young people who will work with institutions across the country at the grassroots level to make the vision a reality," says Rajan Navani, Co-Chair of India@75 Mission.
James Abraham, Senior Partner & Director, BCG said "Crisis will come and go. Only a shared aspiration like India@75 can keep us on track and point to the things that we have to get done no matter what."
India@75 is an initiative which goes beyond the realms of just visioning. It seeks to create a movement where everyone can get involved into realizing the dreams of our country. The report has been structured around the ten broad themes that are Education & Skill Development, Technology & Innovation, Agriculture, Businesses, Infrastructure & Urbanization, Health, Environment, Arts, Sports & Literature, Governance & Public Administration and Moral Leadership.
[New Delhi, 26 March 2009] CII, Yi, and The Boston Consulting Group (BCG) today announced the launch of India@75: The Peoples' Agenda with an objective to spark a transformation of India by the year 2022. The first step towards transforming India into an economically vital, technologically innovative, socially & ethically vibrant leader was to create an aligned agenda. The 'Peoples' agenda' was commissioned to involve people across the country in a visioning of how India could be at 75 years of independence.
"India@75 is the most tested and supported idea in India today" said Professor CK Prahalad. He also adds that "India@75 is an election manifest. If our politicians want to know what people want, they should look to what India@75 has unearthed." Professor Prahalad is the inspiration behind India@75. At the India@60 celebrations, he posed the idea of looking ahead and engaging the populace of India to envision and act for an India@75. He then helped structure and guide the exercise over the past year.
BCG developed an innovative approach that was structured at the grassroots level of the state level, since each state is unique, at its own stage of development, facing its own unique sets of issues. This included hearing & studying 6,000 voices across many different geographies, different socio-economic classes, different age groups, different occupations, different genders and different religions. Unlike any vision document that has come before, this was written by the people of India and every one of their voices is captured in the document.
Mr. Gopal Srinivasan, Chairman of CII India@75 Mission said "Across the country, people had strong aspirations of what they wanted for India@75. The five aspirations that cut across all geographies and people are:
Education and skills is a top priority for all the people: 100% literacy; 200 million college graduates and 500 million skilled workforce
Efficient infrastructure deployment can change the pace of India's growth dramatically
Development has to be environmentally sustainable � that is non-negotiable
Innovation and 'next practices' are key to progress: We must find new ways to do things
Corruption is seen as a major corroding influence eating away the vitality of India: India can become a moral leader in the world"
"In fact India@75 can show us how we can take advantage of this economic situation. Everyone sees India becoming a global leader, and perhaps this crisis is just an opportunity," said Mr. Chandrajit Bannerjee, Director General of CII.
"India@75 is a rallying cry for the young in our country. We want to create a volunteer corps of young people who will work with institutions across the country at the grassroots level to make the vision a reality," says Rajan Navani, Co-Chair of India@75 Mission.
James Abraham, Senior Partner & Director, BCG said "Crisis will come and go. Only a shared aspiration like India@75 can keep us on track and point to the things that we have to get done no matter what."
India@75 is an initiative which goes beyond the realms of just visioning. It seeks to create a movement where everyone can get involved into realizing the dreams of our country. The report has been structured around the ten broad themes that are Education & Skill Development, Technology & Innovation, Agriculture, Businesses, Infrastructure & Urbanization, Health, Environment, Arts, Sports & Literature, Governance & Public Administration and Moral Leadership.
INDIAN ECONOMY OFF ITS HIGH GROWTH- MONTEKSINGH
New Delhi, 27 March,2009] Giving the outlook on the economy, Dr. Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, Government of India, said that the ongoing crisis, which is probably the worst crisis in last 60 years, will push the Indian economy off its higher growth trajectory, that it has seen in last 5 years. Delivering the special address at the CII's National Conference and Annual Session 2009, he alluded that although some painful adjustment is inevitable in the current difficult time, the government is trying its best to minimize the pain.
Dr Ahluwalia, while giving an overview of the next financial year, said that 2009-10 will be significantly worse than the previous fiscal year. He however added that recovery is expected to begin sometime around second quarter of 2009-10. He noted that uncertainty is expected to reduce and results will start showing up of the various measures taken by the government in few months to come. This in turn can lead to the bottoming out of the crisis in a couple of months.
Differentiating the current crisis from the previous ones, Dr Ahluwalia pointed out that the crisis is being transmitted to India from foreign channels and the positive side is that Indian rural economy has not been as adversely affected as the urban one. He also emphasized that the crisis presents an opportunity for Indian Business leaders to introspect and optimize the present opportunity to emerge stronger for the more competitive times to come.
Dr Arvind Virmani, Chief Economic Advisor, Ministry of Finance, Government of India, ruled out any possibility of a sustained deflation in the economy. He explained that Consumer price inflation, having higher weightage of food items, is still in double figures and would come down rather slowly. Consumer Price deflator used for GDP is more indicative of inflation and is not expected to be anywhere near 0%, let alone deflation, opined Dr Virmani.
Giving a clearer picture on fiscal deficit, both Dr Ahluwalia and Dr Virmani said that fiscal deficit is expected to widen by 3.5 - 4% as compared to previous year. The higher deficit is a deliberate step by the government in order to carry out more spending to revive the economy. The increased spending by the government will not crowd out the private spending in the shorter run and once the demand revives, government would work towards achieving the targets set out by the FRBM Act.
Its important to distinguish between market regulation and institutional regulation, said Dr Virmani. According to him, India has institutional regulations in place, while it has ample room to move faster as far as market regulations are concerned. He reiterated that for revival of the fragmented markets, which resulted from the crisis, the government has carefully implemented well coordinated fiscal and monetary measures. Dr Virmani further added that India Inc would perhaps face a challenge of slackening demand for exports and thus it's important for them to undertake a diversification strategy.
Delivering the concluding remarks, Mr Sunil Kant Munjal, Past President, CII and Chairman, Hero Corporate Service Limited, expressed hope that India would be among the first ones to emerge out of the crisis.
Dr Ahluwalia, while giving an overview of the next financial year, said that 2009-10 will be significantly worse than the previous fiscal year. He however added that recovery is expected to begin sometime around second quarter of 2009-10. He noted that uncertainty is expected to reduce and results will start showing up of the various measures taken by the government in few months to come. This in turn can lead to the bottoming out of the crisis in a couple of months.
Differentiating the current crisis from the previous ones, Dr Ahluwalia pointed out that the crisis is being transmitted to India from foreign channels and the positive side is that Indian rural economy has not been as adversely affected as the urban one. He also emphasized that the crisis presents an opportunity for Indian Business leaders to introspect and optimize the present opportunity to emerge stronger for the more competitive times to come.
Dr Arvind Virmani, Chief Economic Advisor, Ministry of Finance, Government of India, ruled out any possibility of a sustained deflation in the economy. He explained that Consumer price inflation, having higher weightage of food items, is still in double figures and would come down rather slowly. Consumer Price deflator used for GDP is more indicative of inflation and is not expected to be anywhere near 0%, let alone deflation, opined Dr Virmani.
Giving a clearer picture on fiscal deficit, both Dr Ahluwalia and Dr Virmani said that fiscal deficit is expected to widen by 3.5 - 4% as compared to previous year. The higher deficit is a deliberate step by the government in order to carry out more spending to revive the economy. The increased spending by the government will not crowd out the private spending in the shorter run and once the demand revives, government would work towards achieving the targets set out by the FRBM Act.
Its important to distinguish between market regulation and institutional regulation, said Dr Virmani. According to him, India has institutional regulations in place, while it has ample room to move faster as far as market regulations are concerned. He reiterated that for revival of the fragmented markets, which resulted from the crisis, the government has carefully implemented well coordinated fiscal and monetary measures. Dr Virmani further added that India Inc would perhaps face a challenge of slackening demand for exports and thus it's important for them to undertake a diversification strategy.
Delivering the concluding remarks, Mr Sunil Kant Munjal, Past President, CII and Chairman, Hero Corporate Service Limited, expressed hope that India would be among the first ones to emerge out of the crisis.
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