During UPA-II, the country’s GDP growth crashed from a high of 9.3 per cent in 2010-11 to around 4.8 per cent in 2013-14. As the new government readies to present its maiden Budget, opinion makers suggest ways to turbo-charge the economy“The government needs to make infrastructure investment friendly. It can consider giving a permanent guaranteed return on equity and take away all the risks associated with infrastructure investment. This will bring in FDI, pension funds and other long-term investors.”— AM Naik, Group Executive Chairman, Larsen & Toubro“Revive infrastructure and manufacturing sectors and promote FDI in defence and insurance. Also, create a consistent tax and legal framework and dispute-settlement mechanism. Review land acquisition processes to enable industrial growth in a transparent manner.”— Naina Lal Kidwai, Director, HSBC Asia Pacific and Chairman, India“Sops for housing, construction and auto sectors will help these sectors have significant backward and forward linkages with other key sectors.” — Brijesh Mehra, MD and Head, International Banking, India and South-east Asia, RBS“Retrospective tax amendments (especially of Section 9) must be immediately withdrawn. Retrospective amendments continue to erode global investor confidence in India.”— Nishith Desai, Founder & Managing Partner, Nishith Desai Associates“The mining sector is in crisis. We need a comprehensive legislation to replace the Mines and Minerals (Development and Regulation) Act 1957. It should reduce discretion, improve transparency in concession grants, incentivise deeper exploration, advanced technologies and attract FDI.” — S. Vijay Kumar, Distinguished Fellow, TERI“Agricultural profitability can only improve by raising productivity. The increase in profitability will come through measures that are outlined to increase productivity and not through an increase in minimum support prices (MSP).”— Ashok Gulati, Chair Professor, Agriculture, Indian Council for Research on International Economic Relations “Taming food inflation is key. Unless we tackle food inflation, the RBI is not going to ease interest rates. And unless you ease up interest rates, private sector investment in infrastructure and other areas is going to be delayed or may not even happen.”— A. Didar Singh, Secretary General, FICCI“We need to go back to drafting a clean and simple DTC. And, we need to bring world-class ideas in public administration to build an effective and accountable tax administration that is grounded in the rule of law.” — Ajay Shah, Professor, NIPFP“Make bio-manufacturing the next big opportunity after generics for India. Invest $4-5 billion each year over the next five years to grow the biotech industry to $100 billion with a 25 per cent return on investment and set a growth rate of 30 per cent year on year.”— P.M. Murali, President, Association of Biotechnology-Led Enterprises(This story was published in BW | Businessworld Issue Dated 14-07-2014)
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The rupee dropped to its weakest level in five months on Friday morning, weighed down by geo-political tensions around the globe with concerns about the continuation of foreign fund inflows into local debt and equities also hurting sentiment.By 9:07 a.m. (0337 GMT), the partially convertible rupee was at 61.60/61, after hitting 61.70, its lowest since March 5.Traders said they expect the central bank to step in and sell dollars to limit volatility if there is further downward pressure on the local currency during the session.Asian shares tumbled as investors sought out safe-haven assets on growing fears that conflicts in Ukraine and the Middle East could sap global growth, extending losses after U.S. President Obama said he had authorized air strikes in Iraq. (Reuters)
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Chairman Emeritus of Tata Sons Ratan Tata on Thursday (7 August) termed Prime Minister Narendra Modi as a 'doer' and said he should be given more time."Modi has track record of being a doer. Gujarat is an example and one should go there to see it," Tata, who retired as chairman of Tata Sons two years back, said at an interaction organised by Ladies Study Group of Indian Chamber of Commerce here.He said that since 1984, there was a paradigm shift in India's democracy with a political party getting single majority, unlike coalition government or a minority government.But the government machinery had now shifted to "quick acting and growth-oriented (work) rather than government-oriented", Tata said."We should given them more time," he said.(PTI)
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Hardening its stand, the University Grants Commission (UGC) on Sunday (22 June) asked Delhi University and its colleges to admit students only under the three-year programme from the new academic session and not under four-year undergraduate programme (FYUP) implemented by it last year, a move hailed by both teachers' and students' bodies.With admission to the undergraduate programme beginning on Tuesday (24 June), UGC asked DU and all its 64 colleges to comply with its order or face "consequence" such as freezing of grants."Under no circumstances shall the University of Delhi or any of the colleges under it admit students to the FYUP for academic year 2014-15," the UGC said in a statement."Any deviation from this directive either by the University of Delhi or any of the colleges under it shall be deemed to be in contravention of the UGC Act, 1956 with its consequences," it warned.The move put a lid on the month-long agitation by students' and teachers' bodies demanding scrapping of the programme.An executive committee member of Delhi University Teachers Association Vijaya Venkataraman welcomed the UGC move.She said DU was "flouting" all norms and conduct of the programme and the Vice-Chancellor remained adamant, therefore, UGC's decision is welcome.Delhi University Students Union President Aman Awana also hailed the decision and said they would take out a victory rally tomorrow. They would also meet HRD Minister Smriti Irani to congratulate her.The UGC direction for the new academic session came a day after the Delhi University struck a defiant note, rejecting the Commission's directive to scrap the controversial FYUP.The UGC said it would be ensured that students, who were admitted in 2013-14 in FYUP when it was introduced, are able to migrate to the three-year programme. The Commission has asked DU to inform all colleges to abide by the direction and "to report compliance to the Commission of this directive by the forenoon of June 23 (tomorrow) without fail".BJP, which rules at Centre, had during the elections promised to scrap the FYUP once it came to power.Officials said disobeying the UGC direction could spell trouble for DU as it could stand to lose grants and degrees offered by it could be de-recognised.In the statement, the UGC said, "Admission for academic year 2014-15 at the undergraduate level in the general degree programmes (including the Honours programme in different subjects of Humanities, Science and Commerce) in various colleges under the University of Delhi shall only be to the 3-year undergraduate programme which was offered prior to the introduction of the FYUP."UGC has also decided to constitute a ten-member committee with representations from teachers, students and statutory bodies to advice DU for implementation of the directive.They would ensure that students admitted in 2013-14 are able to migrate to the three-year programme, without any hassle and acquire necessary academic and other competence during the next two academic years, it said.The committee would comprise the Vice Chairman of UGC, President of DUTA and students' body DUSU, among others.At the full commission meeting on June 13, UGC had asked DU to review the programme as it felt it was in violation of the national policy on education which follows the 10-plus 2-plus 3 pattern.DU, however, stood by the programme and in a reply to the UGC maintained that it has followed due procedure. DU had yesterday said it had revised the programme to make it compliant with the National Policy on Education (NPE).Delhi University Teachers Association (DUTA) along with several student organisations such as NSUI and ABVP had been demanding immediate roll back of the FYUP and the VC's resignation.UGC is a statutory organisation responsible for co-ordination, determination and maintenance of standards of education as well of disbursal of funds for universities in the country.(PTI)
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A Delhi court, which had issued summons against Congress President Sonia Gandhi, Rahul Gandhi and others, on Thursday (7 August) deferred till August 28 hearing in the case filed by BJP leader Subramanian Swamy in the matter pertaining to acquisition of National Herald daily.Metropolitan Magistrate Gomati Manocha postponed the matter after the counsel appearing for Sonia Gandhi and others informed the court that Delhi High Court had yesterday stayed the criminal proceedings pending before the trial court till August 13.Senior advocate Ramesh Gupta, who appeared for Sonia, Rahul and others, told the court that summons have not been served on accused Sam Pitroda as he stays in the USA now.Swamy requested the court to hand over the summons issued against Pitroda to him so that he could serve it on him.The court permitted Swamy's contention and fixed the matter for hearing on August 28.In a reprieve for Sonia, Rahul and others, the high court had yesterday stayed till August 13 the criminal proceedings before the trial court against them."Renotify the matters on August 13. Till that time, the impugned order dated June 26, 2014 of the trial court against the accused shall remain stayed," Justice V P Vaish had said.The stay had come as a relief to Sonia, Rahul and others including Congress treasurer Moti Lal Vora, General Secretary Oscar Fernandes, Sam Pitroda and Suman Dubey who were asked to appear before the trial court today. The Congress leaders have challenged the lower court's summoning orders against them on a complaint of Swamy alleging cheating and misappropriation of funds in the acquisition of the daily by Young Indian (YI).Pitroda is the only accused who, so far, has not moved the high court as the summons has not been served on him.The high court has now fixed the matter for further hearing on August 13 when the counsel for Suman Dubey and Swamy will argue their case.While summoning the six as accused in the case, the trial court had held that Swamy has established a prima facie case of cheating, misappropriation of funds and criminal breach of trust against them.Swamy had accused Sonia and Rahul Gandhi and others of conspiring to cheat and misappropriate funds by just paying Rs 50 lakh by which YI obtained the right to recover Rs 90.25 crore which the Associated Journals Limited had owed to the Congress party.The accused persons were summoned under sections 403 (dishonest misappropriation of property, 406 (criminal breach of trust) and 420 (cheating) read with section 120B (criminal conspiracy) of the IPC.(PTI)
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In a pre-budget move, cash-strapped railways on Friday (20 June) effected a steep across-the-board hike of 14.2 per cent in passenger fares in all classes and a 6.5 per cent increase in freight rates to garner Rs 8000 crore a year.The decision, which will come into effect from June 25, marks implementation of an announcement of May 16, the day Lok Sabha election results came, when the hike was announced but put on hold immediately.In a flip-flop, the Ministry first announced that today's hike will be implemented with immediate effect but later changed it to June 25, saying the officials needed time to execute it.Announcing the decision, less than a month after the NDA government took over, Railway Minister Sadanand Gowda said, "I was forced to implement the order that was done by my predecessor. I am only withdrawing the withholding order."He said the interim budget presented by the previous government had assumed certain revenues on the basis of the proposed hike that was announced on May 16."Meeting the annual expenditure would not be possible unless the revised rates as finalised by previous government is implemented, hence order of withdrawing implementation of revised fare and freight has been withdrawn," said the Railway Ministry, which is incurring a loss of about Rs 900 crore per month in passenger segment."Accordingly, the revised passenger fare and freight rates and freight structure rationalization will come into effect from June 25, 2014," it said in a statement.The hike was announced nearly a week after Prime Minister Narendra Modi said the country should be ready for "tough decisions" required to improve the financial health.The Railway Budget will be presented in Parliament in the first week of next month.Two days back, Gowda had said he would meet the Prime Minister before announcing the hike. While a flat 10 per cent has been announced in all classes, an additional 4.2 per cent increase under fuel adjustment component (FAC)-linked revision scheme will be effected on passenger fares, taking the upper revision of fares to 14.2 per cent, an official said.The Railways had earlier issued a notification on May 16 effecting hike in passenger fare by 14.2 per cent across the board and freight charges by 6.5 per cent from May 20. This was followed up with an official press release.The May 16 fare hike decision, which had raised eyebrows as it came in the midst of Lok Sabha election results, led to a scurry of activities in Rail Bhawan on that day and the Railway Board went into a huddle to discuss its fallout.Soon after, the red-faced Railway Ministry had put the decision on hold, saying the matter related to the revision will be left to the next government.The then Railway Minister Mallikarjun Kharge came out with a statement directing the Board to leave the decision on the hike to the new government."It is now informed that under the directions of the Minister of Railways Mallikarjun Kharge, the decision on the proposed hike in the freight charges and passenger fares have been kept pended till further advice for placing this proposal before the new government," the statement said.A fresh notification was issued later, stating that the "revision of fares with effect from May 20 should be pended till further advice." PTI ARU AKKThe Railway Minister had on Wednesday met Finance Minister Arun Jaitley and said that he would discuss the fare issue with the Prime Minister.Seeking a significant increase in gross budgetary support, Gowda, along with Minister of State for Railways Manoj Sinha and senior railway officials, had met Jaitley as part of the pre-budget discussion.About the discussion with Jaitley, the Railway Minister had said "it was a fruitful meeting with the Finance Minister who suggested some measures which will be reflected in the rail budget."Gowda said "we have sought more budgetary support. There is a need for more funds for national projects." (PTI)
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The Indian rupee recovered by 16 paise to trade at 61.33 against the dollar in early trade Thursday (7 August) at the Interbank Foreign Exchange market, tracking positive sentiments after the government approved FDI liberalisation in defence and railways sectors.Forex dealers said besides selling of dollars by exporters, strength in other currencies against the American unit overseas also supported the rupee, but a lower opening in the domestic equity market capped the gains.The Cabinet Wednesday (6 August) cleared the long-delayed proposal for raising FDI limit in defence to 49 per cent and fully opened up the railway infrastructure segment, like high-speed trains, for foreign investment.The rupee had plunged 65 paise in its biggest single-day drop in over six months to end at 61.49 in Wednesday's trade against the greenback, hit by spike in dollar demand and negative cues from local stocks.Meanwhile, the benchmark BSE Sensex fell further by 54.13 points, or 0.21 per cent, to 25,611.14 in early trade Thursday.(PTI)
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The Indian rupee crashed by 65 paise -biggest fall since January 24, 2014- to close at five-month low of 61.49 against the Greenback on weak local equities and dollar demand from importers on fears of rise in global oil prices after escalating Ukraine crisis.Firm dollar in overseas market and slow down in foreign funds in stocks too lay down pressure on the rupee.Russia builded up their troops on Ukraine border despite despite tightening sanctions by US and Europe, showing no signs of backing down over ongoing crisis.As a result, importers and some banks went on dollar buying on hopes of further rise in this safe haven unit, leading to sharp fall in rupee value. Forex dealers also rushed to cover their short dollar positions.At the Interbank Foreign Exchange (Forex) market, the domestic currency commenced weak at 61.06 and immediately touched a high of 61.03.Later, it continued its downslide and touched a low of 61.53 before concluding at 61.49 -level not seen since March 5, 2014 when it had settled at 61.75- revealing a steep fall of 65 paise or 1.07 pct. Previously, it had plunged by 73 paise on January 24, 2014.The benchmark S&P BSE Sensex slumped by 242.74 points or 0.94 pct while FIIs bought Rs 52.85 crore shares yesterday, as per provisional data.The dollar index was up by 0.19 per cent against a basket of six major global rivals.Pramit Brahmbhatt, CEO, Veracity Group said,"Today Rupee depreciated for the first time in this week and broke all the immediate supports and lost over one per cent as corporate dollar demand was seen in the market which forced Rupee to fall near 5 month low. Local equities also ended on a negative note which further dented the movement of Rupee. The trading range for the Spot rupee is expected to be within 61.00 to 62.00."In the forward market, premium fell back on renewed receipts by exporters.The benchmark six-month premium payable in January closed lower at 246.5-248.5 paise from last close of 248-250 paise.Far-forward contracts maturing in July, 2015 also moved down to 491-493 paise from 493-495 paise.The Reserve Bank of India fixed the reference rate for dollar at 61.3360 and for the euro at 81.9630.The rupee dipped further against the pound to 103.49 from 102.59 previously while reacted downwards to 60.07 per 100 Japanese yen from 59.25.It also turned negative to end at 82.02 per euro from 81.45.(PTI)
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