Friday, August 12, 2011

India will fast-track some long-stalled reforms and help stimulate local consumption—the main driver of economic growth! Hegemony LPG Mafia Finance Minister assured America long before the Beiginning of Recent Double Dip Recession! And as it is now,

India will fast-track some long-stalled reforms and help stimulate local consumption—the main driver of economic growth! Hegemony LPG Mafia Finance Minister assured America long before the Beiginning of Recent Double Dip Recession! And as it is now, India Incs ENGAGED Directly in Policy Making and Governance as Economic Reforms are PUSHED Hard as NEVER BEFORE! India's key policymakers launched a concerted bid early Monday to assure jittery financial markets that the fundamentals of the economy were sound, promising to fast-track reforms while the Reserve Bank of India chipped in with a promise to address liquidity concerns, if any.Finance minister Pranab Mukherjee today reiterated his earlier assertion that the US debt crisis, which has led to uncertainty in many other markets, would not much affect India, as the country's ''economic fundamentals are strong''. TRUE. But it is going to have its Greatest Impact on the Excluded Enslaved Indigenous Aborigin Communities and Rural India, the Majority Masses as Economic Reforms and Bail Out Stimulus Package for the Market Dominatinating Brahaminical Class and Anti People Legislation supported by Mind Cntrol and REPRESSION would WIPE OUT the EXCLUDED form Life and Livelihood!And just see,Mukherjee said the country could see faster and greater FII inflows unlike after 2008 meltdown in view of the higher returns that global investors could get in India and that implementation of pending reforms could be fast tracked!

Indian Holocaust My Father`s Life and Time - SEVEN HUNDRED SEVEN

Palash Biswas

http://indianholocaustmyfatherslifeandtime.blogspot.com/


http://basantipurtimes.blogspot.com


India will fast-track some long-stalled reforms and help stimulate local consumption—the main driver of economic growth! Hegemony LPG Mafia Finance Minister assured America long before the Beiginning of Recent Double Dip Recession! And as it is now, India Incs ENGAGED Directly in Policy Making and Governance as Economic Reforms are PUSHED Hard as NEVER BEFORE! India's key policymakers launched a concerted bid early Monday to assure jittery financial markets that the fundamentals of the economy were sound, promising to fast-track reforms while the Reserve Bank of India chipped in with a promise to address liquidity concerns, if any.Finance minister Pranab Mukherjee today reiterated his earlier assertion that the US debt crisis, which has led to uncertainty in many other markets, would not much affect India, as the country's ''economic fundamentals are strong''. TRUE. But it is going to have its Greatest Impact on the Excluded Enslaved Indigenous Aborigin Communities and Rural India, the Majority Masses as Economic Reforms and Bail Out Stimulus Package for the Market Dominatinating Brahaminical Class and Anti People Legislation supported by Mind Cntrol and REPRESSION would WIPE OUT the EXCLUDED form Life and Livelihood!And just see,Mukherjee said the country could see faster and greater FII inflows unlike after 2008 meltdown in view of the higher returns that global investors could get in India and that implementation of pending reforms could be fast tracked!

The Finance Minister said that as global investors look for opportunities across the world, India's attraction as an investment destination would continue to grow.The Congress Party-led United Progressive Alliance government also plans to quicken the pace of implementation of pending reforms to insulate the nation from global uncertainties, Mukherjee said.  Earlier, Chief Economic Advisor Kaushik Basu said the global sell-off was a matter of concern but not of an alarm and India's long term story ...

The Union Finance Minister Pranab Mukherjee said that we would continue to achieve appreciable growth despite negative sentiments across the world. He mentioned about these sentiments in the developed nations which affected our markets on last Friday. But the Finance Minister  Mukherjee said that we witnessed some recovery already and this is testimony to our capacity for resilience.  Mukherjee said that our growth story is intact and the fundamentals are strong. He said that he is sure that our markets have the capacity to withstand the negative sentiments affecting the external world. The Finance Minister Mukherjee said that we have taken several measures to make our markets attractive, robust and vibrant and would continue to do so making it an attractive investment destination for the foreign capital. The Finance Minister said that as global investors look for opportunities across the world, India's attraction as an investment destination would continue to grow.
12 AUG, 2011, 07.45AM IST, SMRITI SETH & DEVIKA BANERJI,ET BUREAU

UPA government takes a serious look on economic reforms as Morgan Stanley, Citi & Goldman Sachs give thumbs-up

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NEW DELHI: Drift, Policy paralysis, Governance deficit, Lame-duck government, Corrupt... Defined by these epithets for much of this year, the UPA government has given an impression of enervation, as if seven years of ruling India has sapped its vitality.

But in recent days, many influential people say, the government has begun to shake off the torpor, emerging as UPA II, Ver 2.0. The government has announced a series of policy actions in the past month and promised to step up reforms.

A raft of important policy changes and decisions has been announced in the past four weeks and key economic ministers have stepped up engagement with industry to try and allay its concerns. These efforts have not gone unnoticed, and past critics acknowledge that the wheels of government are finally turning.

"In the past two-three weeks we have seen action on many fronts. Even on pending issues, discussions have begun," said HDFC Chairman Deepak Parekh, one of India's most respected bankers.

Parekh, an elder statesman of Indian industry who has been tapped by the government during crisis situations, last January joined a group of eminent citizens in writing an open letter to the country's leaders bemoaning poor governance and warned them against frittering away the historic growth opportunities before India. He kept up his criticism of the government for several months since, but not any more.

"It will not be correct to criticise them now, that nothing is happening... The government has realised the need for urgency and necessity of making fast decision," he said. And he is not alone. Leading Wall Street banks Morgan Stanley and Citigroup have noted the urgency in the government's actions, while Goldman Sachs upgraded its outlook on India after a year of being 'underweight' on the country
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The lower things go, the more I buy. We are in the business of buying," Buffett said, adding that he had never been better.
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The Indian liquor market is forecast to grow into the world's second largest by 2013 behind China, pushing Russia to third spot.
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Unlike in the West, one cannot have a single strategy that one can apply throughout the country says Samsung CEO JS Shin.
http://economictimes.indiatimes.com/news/economy/policy/upa-government-takes-a-serious-look-on-economic-reforms-as-morgan-stanley-citi-goldman-sachs-give-thumbs-up/articleshow/9572119.cms

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Ambedkar on Social Exclusion and Inclusion

Sukhadeo Thorat and Narender Kumar
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ISBN13: 9780195693065ISBN10: 019569306XHardback, 432 pages
Feb 2008, In Stock

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The contribution of social activist and thinker Ambedkar in the development of inclusive policies during the British rule and its culmination into the reservation policy in the Constituent Assembly is immense. In this volume original documents, memorandums, and writings by Ambedkar are put together to highlight the process of development in these policies and his thinking. A comprehensive Introduction discuses both the historical context and the present controversy regarding reservations in a proper perspective.

Features

  • Brings together some of the most important writings of B. R. Ambedkar
  • Showcases the shaping of Ambedkar's thinking and policies
  • Interdisciplinary and with general appeal
  • Has current relevance in view of the present crisis on reservations debate as Mayawati's return to power

Product Details

432 pages;ISBN13: 978-0-19-569306-5ISBN10: 0-19-569306-X

About the Author(s)

Sukhadeo Thorat is Chairman, University Grants Commission, New Delhi 
Narender Kumar is senior lecturer in political science, Motilal Nehru College, University of Delhi

http://www.oup.com/us/catalog/general/subject/HistoryWorld/India/?view=usa&ci=9780195693065


The Union Finance Minister Pranab Mukherjee said that it is true that sometimes the process of reforms has been held hostage by political events and this is in the very nature of our democracy and its polity. The Finance Minister said that despite ideological differences the principal political parties have been able to work together on most issues. The Finance Minister Pranab Mukherjee said that it is in that context that he has no hesitation in saying that the process of economic reforms in India is irreversible and that the economic stakeholders have no reason to fear introduction of any regressive policy measures at any point of time. Thus, for instance, the Finance Minister Mukherjee said that there are no proposals for introducing dual pricing for diesel or increase in duties for bridging any perceived shortfalls in tax revenues, as has been highlighted by a speculating media in the past couple of days.  

The Union Finance Minister  Pranab Mukherjee was addressing the National Conference of Confederation of Indian Industry (CII). The Conference is being attended by the leading industrialists of the country.

The Union Finance Minister  Pranab Mukherjee said that it gives him great pleasure to address this National Conference organised by CII on the theme "Two Decades of Reforms: The Way Forward."  The Finance Minister  Mukherjee said that the year 1991 stands out as a land-mark year for the change it brought in economic policy and administration in the country. He said though the winds of change had started gathering momentum in the early 1980s, yet it was the Union Budget of July 991 that brought out major economic policy initiatives to the forefront.  Mukherjee said that it gradually helped the economy towards newer heights of achievements, opportunities and capacity to confront the ever changing challenges of a globalised world.  CII has been an important stakeholder in this journey and I acknowledge its contribution to the process, the Ministeradded.

The Union Finance Minister  Pranab Mukherjee said that he has always maintained that reforms are an on-going process, not a one-time event. He said that the developments in 1980s created the platform for major changes that occurred in July 1991 and the subsequent years. Similarly, developments in the past decade have set the stage for the future agenda of our economic reforms, the Minister added.   Mukherjee said that it is sometime suggested that we were perhaps a decade or two late in launching our reforms. He said that there are also some who are of the view that these changes should have never happened. But  Mukherjee said that he doesn't sympathize with either of these positions. In life one has to be pragmatic, he added.

The Union Finance Minister Pranab Mukherjee said that the economic reforms since 1991 have enjoyed a bipartisan support, with successive Governments at the Centre working towards liberalising and unshackling the restrictions on enterprise, and addressing distortions in different markets. The Finance Minister said that result has been the flowering of Indian private enterprise, which has made its mark at home and at the most competitive international level.

The Union Finance Minister Pranab Mukherjee said that as we take stock of the two decades of economic reforms and the state of our economy today, it is important to also dwell on where we want to go from here and how do we want to reach that destination..

The Union Finance Minister  Pranab Mukherjee said that The global economy has just witnessed one of its worst crises in recent history and is still suffering from its aftermath. He said that it is a matter of pride for us that the Indian economy experienced only a brief pause in its rapid growth and could recover with an average of over 8 per cent growth in the years following the out-break of crisis. In the past two decades, the Finance Minister said that the Indian economy has rapidly globalised and from around 2003-04, it has moved on to a higher trend GDP growth rate of 8.5 to 9 per cent per annum. The Finance Minister  Mukherjee said that today, India is the second fastest-growing large economy in the world, and is widely expected to be among the top three economies in the next two decades.

The Union Finance Minister Pranab Mukherjee said that the experience in the post-2004 period shows that economy has become resilient to both external and domestic shocks. He said that it has undergone a significant structural change with a decline in the share of agriculture and allied sectors to about 14 per cent and a rise in the share of services to nearly 58 per cent and that of industry to 28 per cent. The Minister said that we have been able to increase the rate of savings and investment, our exports have increased robustly and at USD 250 billion in 2010-11 have crossed the USD 200 billion mark for the first time. The foreign exchange reserves, which were almost depleted in 1991, have crossed USD 300 billion mark. The Government's tax and non-tax revenue have increased manifold and the fiscal health is robust. It has provided us with the means to bridge our development gaps and renew the efforts to overcome the disparities in social well-being by implementing some flagship programmes. The social indicators have improved and the poverty incidence has come down.

The Union Finance Minister  Pranab Mukherjee said that the agriculture diversification has added to its resilience in the face of uneven and sometimes delayed monsoons. The agriculture year 2010-11 has seen production record a new high, he added.  Mukherjee said that the food grain production at 242 million tons has grown by 11 per cent over last year's production.  The Finance Minister said that we are getting close to self-sufficiency in pulses with record production of over 18 million tons.

The Union Finance Minister  Pranab Mukherjee said that there are several reasons that growth is almost universally predicted to be sustained at a high rate of 8 to 9 per cent per annum and more, over the next few decades by economic analysts. He said first, the savings and investment ratios have gone up in the last few years and are reminiscent of the high growth East Asian economies. Secondly, India's working age population is young with over half the population is in the twenties. Thirdly, growing middle class incomes have led to self sustaining buoyancy in domestic demand, particularly in the rural areas. Fourthly, India is making rapid progress in infrastructure, both social and physical and along with better access to cutting edge technology is likely to see improvement in productivity. The Minister said although these are the primary factors for India's dynamic growth, yet there are many other drivers of India's growth story including the energy and vibrancy of our entrepreneurs, strong services sectors, emerging knowledge spheres and sunrise sectors and growing number of engineers and scientists.

The Union Finance Minister Pranab Mukherjee said that he is recollecting these factors here because Indian industry seems to be less optimistic about the economic prognosis for the country today, than it was earlier. Private sector investment has been a critical growth driver in the recent past along with growth in private consumption. The Finance Minister said that rise in the share of private investment in domestic demand helped in improving economic efficiency and productivity.  Mukherjee said that while the momentum in consumption has been sustained as the economy has recovered from the slowdown in 2008-09, the recovery in private investment growth has been held back. The Finance Minister said that it is a matter of concern and we must together do what is required to improve business sentiments to restore the investment growth seen in the years before the global crisis.

The Union Finance Minister Pranab Mukherjee said that our major challenge in the short-term is inflation, which has implications of sustaining our growth momentum. Inflationary pressures persist both from higher global commodity prices and domestic structural demand-supply imbalances in several commodities. The management of inflationary pressures in the medium term is critically dependent on an improvement in the supply response of agriculture to the expanding domestic demand and in the short-term by taking steps to moderate aggregate demand. In the past few weeks we have taken measures to address these concerns. The Finance Minister  Mukherjee said that the monetary policy has been gradually tightened, at the same time new initiatives were announced in the Union Budget to address some of the bottlenecks in the food supply chain that were behind the inflationary spikes in past years. The monetary measure may end up moderating the growth rate, if they have to be persisted for an extended period of time. The Finance Minister  Mukherjee said that he is hopeful that we should together be able to repeat the growth performance of 2010-11 in the current year as well.  

The Union Finance Minister  Pranab Mukherjee said that we look ahead to join the ranks of developed countries in the coming decade or so, there are several challenges that we need to address in the medium term. First, our future reforms will need to improve economic efficiency and spread the benefits of growth equitably across States and address disparities between urban and rural areas. Growth has to be more inclusive and pursued more vigorously. He said that improved productivity in agriculture is central to meeting this objective. There is urgent need to address the constraints on the growth of output and incomes in this sector. We have to renew our efforts and perhaps find new mechanisms to incentivize the State Governments to take a lead in addressing local policy gaps in agriculture.

Secondly, the Union Finance Minister Pranab Mukherjee said that education with special thrust on skill formation, health and sanitation are core areas that should receive urgent attention. We need to bridge the human resource deficit that could prevent us from harnessing the demographic dividend and sustain high growth. Policy and regulatory framework is being put in place for the higher education system to develop the required intellectual capital for growth and development.  Similarly, vocational education has to be reoriented in such a way that imbalance between supply and demand in skills at different levels and tiers are gradually bridged. I am very optimistic about the progress being made by the ongoing mission led by the Prime Minister's National Council on Skill Development. I expect the private sector to strongly participate in skills development activities to make our emerging large workforce globally capable and competitive.  

Thirdly, the Union Finance Minister  Pranab Mukherjee said that India needs to invest an additional 3-4 percent of GDP on infrastructure to sustain current levels of growth, or higher, over the next couple of decades. Development of quality infrastructure and ensuring its broad-based, regional and rural-urban balance is central to sustaining high growth. Areas like power and energy, ports and airports, water resources, rural connectivity and urban infrastructure are in need of resources and managerial best-practices. The Government has laid emphasis on Public Private Partnerships (PPPs) which combine the efficiency and technological prowess of the private sector, with the public welfare orientation of Government. We have established unique and innovative financing support such as the scheme to support Viability Gap Funding for PPP projects. The enabling framework for Infrastructure Debt Funds to effectively meet the long-term debt requirements of the infrastructure sector has been finalized.
Fourthly, the Union Finance Minister  Pranab Mukherjee said that issues like land acquisition, environment clearance and resettlement and rehabilitation have to be addressed satisfactorily, with a view to de-risking development and meeting environmental concerns. He said that the new land acquisition bill is in the public domain and is likely to be introduced in Parliament shortly.  Mukherjee said that a committee constituted by the Group of Ministers (GoM) to consider all issues relating to reconciliation of environmental concerns emanating from various development activities related to infrastructure and mining and to examine the efficacy and legality of existing forest clearance norms and procedures being followed, has just finalised its report which will be considered in the next few days. the Finance Minister  Mukherjee said that  B.K. Chaturvedi Committee related to Coal sector, Vinod Dhall committee on Public Procurement Standards and Public Procurement Policy and Ashok Chawla Committee on Allocation and Pricing of Natural Resources are also in the process of being taken-up for consideration by GoM.

Fifthly, the Union Finance Minister  Pranab Mukherjee said that we have to deepen the policy reforms in the financial sector and address gaps in the overall economic regulatory architecture. The Government has outlined a significant legislative agenda for the financial sector which we hope to purse in the coming days in the ongoing Parliament session. The Financial Sector Legislative Reforms Commission that has been constituted is working towards the harmonization of the existing laws, regulations and rules. The FSDC has become operational. It will ensure better inter-regulatory coordination for financial stability and development. SEBI has already approved the new Takeover Code keeping in view the interests of the domestic industry, help mutual funds get more retail investors and making it easier and safer for small investors to access the markets.

Finally, the Union Finance Minister  Pranab Mukherjee said that we have to recognise that the success of our efforts in the coming years hinges critically on our ability to strengthen our macro-economic environment.  Mukherjee said that we need to have the necessary head-room and policy flexibility to address challenges emanating from global markets. In the post-global crisis context, we have already begun the process of fiscal consolidation and succeeded in reducing the fiscal deficit to 4.7 per cent in 2010-11. He said that he is committed to the fiscal balance targeted for the current financial year end. The State Governments also need to work towards fiscal sustainability for meeting their development goals in the medium term.

The Union Finance Minister  Pranab Mukherjee said that we have taken some steps to simplify and place the administrative procedures concerning taxation, trade and tariff and social transfers on electronic interface, free of discretion and bureaucratic delays. We need to move further in that direction. It will set the tone for a newer, vibrant and more efficient economy.  Mukherjee wished that the deliberations during the Conference would bring forth some fresh insights and policy inputs to take the economy forward.


The government on Monday assured investors it would expeditiously work on pending reforms. It said the India story had not been hampered in any way by the developments across global markets.Business Standerd reports.

The Reserve Bank also said the banking system did not face any liquidity pressures and its priority was to ensure that adequate rupee and forex liquidity were maintained in the domestic markets to prevent volatility in interest rates and exchange rates (For detailed RBI statement, see report on page 6).


"The government will fast-track the implementation of the pending reforms and keep a close eye on international developments," Finance Minister Pranab Mukherjee told reporters here. Admitting the developments in the US and the euro zone could have some impact on India's economy, he said the government would encourage greater consumption and drive domestic growth. "India's growth story is intact and its fundamentals are strong," he said.
Mukherjee said there could be a temporary capital outflow, but things would improve as India offered better returns on investment.

"There could be some impact on the capital and trade flows in the country... We could notice FIIs seeing India as an attractive investment destination even if there is any temporary outflow," he said. "We could rather see faster and greater FII inflows, unlike after 2008, in view of the higher returns that global investors could get in India."

Planning Commission deputy chairman Montek Singh Ahluwalia said the US downgrade was an important event. "So, the market reaction is natural." He said India did not have a US-like situation. "Though we have high debt, our growth is much higher, which compensates for that. In overall terms, India's debt-to-GDP ratio will go down in the next five to six years."

Chief economic advisor Kaushik Basu said the slump in the stock market was a panic reaction. "Right now, we don't need any special measures... Should the need arise, the government and the central bank are in a position to step in... But barring the immediate reaction to what is happening now, the India story remains robust," Basu said.

The Prime Minister's Economic Advisory Council Chairman C Rangarajan, however, said developments in the US economy would negatively impact exports and moderate capital flows into the country.

http://www.business-standard.com/india/news/pranab-promises-fast-track-reforms/445279/


A CRITICAL STUDY OF SOCIAL EXCLUSION & ITS IMPLICATION Dr. K.S. Ingole, Associate Professor, Dept of Economics Post Graduate Studies and Research, SNDT Women's university, Mumbai ingolekisan@yahoo.in Introduction A caste system is the major feature of Indian society, it is not only reflects in social life of Indian people but also economic and political behavior of people are governed by the caste system. Caste is the identity of a person in Hindu society. In India, exclusion or inclusion in the economic activities such as production, distribution or any gainful job to a particular person depend by his caste. In social science literature the concept of social exclusion is defined as 'the process through which individuals belonging to some groups are wholly or partially excluded from full participation in the society in which they live'. The unfavorable inclusions with unequal treatment may carry the same adverse effects as unfavorable exclusion. The purpose of this study is to examine the caste as exclusion of backward castes people from social respects and economic benefits, and to find out its implication on economic development in general and in particular of backward castes. The meaning and nature of caste Caste is a term derived from a Portuguese word, casta, meaning breed, lineage, or race i . It is a term used to identify the different social segments within the caste based Hindu society. Each caste has its own customs, rituals, family deities and food habits. According to Dr Babasaheb Ambedkar, it is mainly the custom of endogamy that has preserved the castes and prevented one caste from fusing into another. Almost all the writers and scholars conform to this view of Dr. Babasaheb Ambedkar. Sociologist G. S. Ghurye following features of caste 1 Segmented division of society 2 Hierarchies 3 Restrictions on feeding and social inter-course 4 Civil and religious disabilities and privileges of different sections 5 Lack of unrestricted choice of occupation 6 Restrictions on marriageProf. Ghurye holds that caste in India is a Brahminic child and that endogamy, the outstanding feature of caste was first developed by the Brahmin. The functions of caste can be understood only with regard to the caste system. The caste system is the foundation on which Hindu society is built. Dr. Ambedkar says: by the Hindu social system the communities are placed in an ascending scale of reverence and a descending scale of contempt. ii The Hindu caste system is a pyramid like social structure in which the majority of the lowest castes are forcibly kept at the bottom of the pyramid, condemned to manual professions and forced to serve the castes above them. According to him, Brahmins were the originators of this unnatural institution founded and maintained through unnatural means. Brahmin class first raised the structure of caste while making themselves into caste, the Brahmins by virtue of this, created non-Brahmin caste. The government of India's Anthropological Survey of India (ASI), under the leadership of K.S.Singh, brought out a series of publications titled 'The People of India'. This project identified 2800 castes including 450 SC, 461 ST and 766 OBC. It concludes that, caste continues to be the basic building brick of Indian society. This historic verdict of the ASI project did not get any publicity in India's press because our ruling class is shy of admitting this fact which has made them the rulers iii . Dalit Vice editor Mr. V. T. Rajshekar says, "Almost all political party leaders be they nationalists, socialists, communists and Hindu Nazi have uniform opinion on caste 'caste is bad and hence it has to be destroyed; Indian scholars and researchers have produced mountains of literature to prove that caste is non-existent'. They believed and made others believe that with economic development, the superficial "caste" could be eradicated. Our planners and rulers, based on this belief, introduced hundreds of welfare schemes and invested thousands of Cr. of rupees on these schemes. All these economic programs proved an utter failure iv . What Mr. Rajshekar says, is true because, caste system is yet exists in India and functions well organized manner than earlier period. According to Dr. Ambedkar 'Caste does not result in economic efficiency, caste can not and has not improved the race, caste has however done one thing, it is completely disorganized and demoralized the Hindu, He said, the Hindu often complain of the isolation and exclusiveness of a gang or a clique and blame them for anti-social spirit. But they conveniently forget that this anti-social spirit is the worst feature of their own caste system v . The caste system's fundamental characteristic of fixed civil, cultural, religious and economic rights for each caste by birth, with restrictions for change implies forced exclusion of one caste from the rights of castes. Exclusion in economic spheres such as occupation, education and labor employment is therefore, internal to the system, and a necessary outcome of its underlying principles. In the market economy framework, the caste related occupational immobility would operate through restrictions in various markets such as land, labor, credit, inputs, and services necessary for any economic activity. Therefore, in our country all major assets of production are own and concentrated in the hands of upper castes Hindu and lower strata of society particularly depressed classes (SC/ST) are assets less people. The unnatural distribution of national wealth forced depressed classes to depend on for their survival on upper castes Hindu at large extent; this is the main reason for their socio-economic exploitation in India. Caste discrimination continues: Discrimination is the main function of caste system in India. Though the Indian constitution provides for a slew of preferential schemes designed to end discrimination against the scheduled castes/ scheduled tribes yet, atrocities against them continue unabated. The provision in the constitution resolves, 'to secure to all citizens: justice, social, economic and political, liberty of thought, expression, belief, faith and worship; equality of status and of opportunity, and to promote among them all fraternity, assuring the dignity of individual and unity.' The constitution also states that 'the state shall not discriminate against any citizen on grounds only of religion, race, caste, place and birth or any form'. In the directive principles it adds that 'The state shall promote with special care the educational and economic interest of the scheduled castes/tribes and shall protect them from social injustice and all forms of exploitation'. In spite of all these provisions discrimination on basis of castes is still continue till to date. Because, to implementations of provisions made in the constitution are not in the capacity of depressed castes the political, social and economic powers are vested in the hands of upper castes Hindus. As upper castes Hindu could control all powers by the virtue of castes system they do not want to implements the constitutional provisions for their vested interests. Dr. Babasaheb Ambedkar, the champion of human rights said is true even today, he said that, "Millions of people living in the midst of civilization are still in a savage state and are leading the life of hereditary criminals. But the Hindus have never felt ashamed of it. This is a phenomenon which in my view is quite unparalleled" vi . Thus, biases within the law-enforcement machinery and the political class have combined to prevent the depressed castes from utilizing programs designed for them. The statistics speak for themselves. Caste discrimination not only hinders SC/STs children from attending school but also affect the quality of education they receive. Therefore, the progress of schooling among Dalit children between the ages of 6-14 has been low and dropt out rate among them is very high compared to that of the general population. Several such facts have been revealed in the 'Indian Education Report'. Upper castes teachers refuse to touch scheduled castes students. At the same time they make these children special targets of verbal abuse and physical punishment. vii Such behavior of teachers affects adversely on the educational desire among the scheduled castes children. According to Dr Babasaheb Ambedkar the capacity to appreciate merits in a man apart from his caste does not exist in a Hindu. There is appreciation of virtue but only when the man is a fellow caste-man. It is not a case of standing by virtue and not standing by vice. It is a case of standing or not standing by the caste. Have not Hindus committed treason against their country in the interests of their caste? This is the question raised by Dr. Babasaheb Ambedkar is very much relevant in present context. When Malegaon blasts accused were brought by police van Hindu people shower flowers on them. This create the impression that blast by Hindu are welcome but not by Muslim. Dr. Ambedkar was a social reformer of 20 th century he rightly said "Enlightened high caste Hindus, who did not feel the necessary for agitating for the abolition of caste or had not the courage to agitate for it" viii . The root of untouchability is the caste system; the root of the caste system is religion attached to varnashram; and the root of varnashrma is the Brahminical religion; and the root of the brahminical religion is authoritarianism or political power. Dr Ambedkar wanted to change the very body of the caste system which would automatically result in a change in its mind. He proved that deprivation of human rights resulted in untouchability and casteism. A country of castes is a country of stagnation and underdevelopment. A by product of the brahminical discourse, the caste system was believed to be a divine institution till the British period, and despite resistance from the depressed castes the hegemonization of brahminical culture practice and ritualism has been established through well designed ideological and political moves ix . Dalit bias runs deeper and deeper even in 21 st century, not only among the uneducated people but also even among highly modern educated. Discrimination at higher level teaching Thorat committee was appointed by the government to find out the reported discrimination in India's most reputed All-India Institute of Medical Sciences (AIIMS) in New Delhi. The report revealed that, the struggle that SC/ST students face to enter premier institutions of higher learning seems mild compared to what they have to put up with later. On top of coping with academic challenges and a totally unfamiliar environment, many dalit students have to deal with the hostility that comes with being a 'reserved category student'. Most of the students complained that teachers were inaccessible and plain indifferent towards them. The committee found that over a period of time, SC/ST students have moved from their allotted rooms to be closer to other SC/ST students. The one-month of ragging to which the authorities turn a blind eye is sheer hell for these students since they are publicly subjected to caste-based questions, taunts and jeering. Many of the students said they moved because their rooms would be locked from outside repeatedly while they were in, vulgar abuse would be scrawled on the doors and it would be made clear that this would stop only if they moved to floors where other SC/ST students stayed. They also faced social isolation, refusal to share books and notes and objections to sharing seats in class. As far as SC/ST faculty are concerned, their written complaints to the committee are of a serious nature, ranging from non-filling of reserved posts to denial of opportunities to develop better skills and gain further experience x . Similar situations were revealed in the IIT Powai, in Mumbai two years back.Prejudice attitude towards SC/STs students There are pre-conceived notion about academic caliber of the SC/STs students and hence they are labeled as 'academically backward'. Today in college these student identity manipulated as 'reserved quota' students. Thus, in spite of academic competence comments like 'these reserved chaps will never be as good as us' are passed. Another issue is the non-admission of 'merit' students in the 'open' category, despite a central direction that they must be. It is always thought why enroll an extra low caste student when we already have to admit a certain number of them? This follows two consequences, it brands a brilliant student as one coming from the reserved category and it deprives another needy SC/ST student of a seat xi . Their contribution is not recognized in any area; they are always put in an environment which will hamper their personal development and performance. Constant attempts are made to destroy their 'self'. In educational institutions and even at work places discussions are held on reservation policy. The major objective of such discussion is not to find out the ideology of the state behind the measure, but to create hatred among the students and employees in organizations. The worth of SC/STs is not prized at work place, though they have potentials. No one can deny that backwardness very substantially arises from lack of access to economic resources and facilities like quality education and employment opportunities. However, two aspects are conveniently overlooked by upper castes Hindus. Lack of political will The Maharashtra state is known as socially progressive state, political leaders always talk about social reform on the name Phule, Ambedkar yet Khairlanji massacre happen in Maharashtra recently on September 29, 2006, four members of the Buddhist Bhotmange family Surekha, her daughter Priyanka and sons Roshan and Sudhir were killed near their house in Khairlanji in full public view, by an angry village mob, allegedly out of caste hatred. This story do not end here it continued very recently in Marathwada region in Bid district two Buddhist college going girls were half naked paraded by upper castes Hindu people on day light yet accused are not booked by police. Such is the fate of SC/ST in modern India. Economic Implication of Caste system: India is recognized as an economy with a 'stunning' but jobless growth' and a 'booming economy with growing gaps' where the spectacular successes made have not been shared by all equally. The planning commission has also realized that economic growth has failed to be sufficiently inclusive, particularly after the mid 1990, it noted in the approach to the eleventh five year plan. For too many people still lack access to basic services such as health, education clean drinking water and sanitation facilities without which they cannot be empowered to claim their share in the benefits of growth xii . Poverty and economic backwardness may be distributed across caste lines, but there remains a significant difference in the manner in which economic backwardness affects life chances of individuals belonging to different castes. A poor Brahmin, Rajput or Bania may be deprived of good education for reasons of poverty, but his or her whole lifestyle radiates a degree of confidence which a low caste person from an economically well-off background is hard put to match. In India those who are not in the growth process they are particularly SC/ST/OBC and Muslims. Dr. Ambedkar said that, in a castes–based society the choice of occupation was not based on individual preferences or capabilities, but on social hierarchy for Brahmanism. While some occupations are valued by society, others are devalued and are considered polluting, impure, and therefore socially degrading. The social stigma of impurity and pollution attached to occupations such as scavenging and leather-making reduces the social status of the persons engaged in them. Workers those who are forced into these occupations on account of their caste origin do not derive job satisfaction and are constantly prone to aversion, ill will and the desire to in linger. There are many occupations in India which on account of the fact that they are regarded as degraded by Hindus, provoke those who are engaged in there is a constant desire to evade and escape from such occupations which arises solely because of the blighting effect which they produce upon those who follow them owing to the slight and stigma of caste on them by Hindu religion what efficiency can there be in a system under which neither men's hearts nor their minds are in their work, public life in India is controlled by caste identities. xiii This is the one of the main reasons of low productivity and production in India. The implication of such tendencies is the results of under utilization of resources and under production. Worst condition of unorganized sector' workers SC/STs are predominantly working in unorganized sector and their conditions are miserable there it is reported in various commissions' reports appointed by the government of India. The report of the Commission on the condition of unorganized sector workers revealed that, the number of people below the poverty line may have come down, but 79 per cent of unorganized workers 88 per cent of SC/ST, 80 per cent of OBC population and 84 per cent of Muslims belong to the "poor and vulnerable group". Despite high economic growth in recent years, the report note, " They have remained poor at a bare subsistence level without any social security, working in the most miserable, unhygienic and unlivable conditions xiv ". The finding of Kevin Watkins, who edited the United Nation's Human Development Report, said that despite growing prosperity brought on by a sustained boom, child malnourishment in India is higher than Ethiopia and well above the African average of 28 per cent. In India four in every ten children are malnourished despite the country's economy growing at an average rate 9 per cent per year. Report further said, when it comes to economic growth India is a long way ahead of Bangladesh but when it comes to child survival rates, it lags behind. According to Watkins, an Oxford academic, Bangladesh has been cutting child deaths at a rate some 50 per cent higher than in India. Both Bangladesh and Nepal are far poorer than India, but India still has a higher child death rate then both the nations:' said Watkins. Poverty has also been falling far more slowly in India than in other high- growth developing countries, such as Vietnam and Brazil. Watkins believes that part of the problem is that the benefits of growth have been "highly skewed'. Secondly from the side of government agencies there is height of negligence's to implements the prescribed policies made for SC/ST. Government Institutes It is reported in review of the state corporations, the National Institute of Financial Management (NIFM) in 2006 paints a shocking picture. Most of these agencies have parked their funds in fixed deposits instead of giving loans to needy SC/ST it's on an average; their equity–debt ratio was 65:35. The report says that there is widespread irregularity in selection of beneficiaries–cases of submitted lists not matching actual recipients have been recorded. Most state corporations have not prepared accounts for anything between 6 to 16 years. A Parliamentary Committee looking into the working of NSCFDC found that between 2001 and 2004, only 281 SC/STs artisans had been provided loans in the whole country. Another problem is declining allocation and even lower utilization. In the past decade, central government spending on welfare of SC/ST and OBC declined from a tiny 0.005% of the total non- plan revenue expenditure to 0.004%. Plan expenditure for this purpose declined from 2.4% to 1.6% over the same period. Special Component Plan For raising SC/STs families above poverty line, there is a Special Component Plan (SPC) under which each central ministry and all state governments are supposed to allocate funds in proportion to the scheduled castes population. According to the Mid-Term Review of the 10 th five year plan (2002-07) only 14 out of 37 central government ministries had complied with this. Bank Credits Bank credits to SC/ST to run their own businesses have also declined. Data from RBI shows the amount of credit per capita received by SC/ST declined from Rs 495 in 1993 to Rs 285 in 2001 and further to Rs225 in 2004. In fact the number of small borrowable accounts of them declined from 77 to 23 per thousand. The Indian system of exclusion on the basis of castes has also been clearly reflected in the National Sample Survey Organization's (NSSO) Report (2004-05). It is revealed from the report that 40.94 % out of total population are OBC, 19.59 % are SC and 8.63 % are STs. Approximately 70 % of Indian population is backward castes population as per Hindu Social Order. The second important point revealed by report is that, 91.4 percent of STs, 79.8 percent of SCs and 78.0 percent of OBC live in rural areas. The third point is that, the economic growth seems to be reflecting in the expenditure of urban India, which is spending nearly double the amount on an average compared to the rural areas. The per capita monthly expenses of people living in urban areas were Rs. 1052.36 a month as against Rs 558.78 of those in rural areas. With minor exceptions, the general level of spending of SCs and STs was lower than the OBCs and the others, while that of the OBCs was lower than that of others. According to the NSSO survey, the all India average spending by rural STs was the lowest at Rs 426.19, followed by rural SCs at Rs 474.72, OBCs Rs 556.72 and others Rs 685.31. In urban India, STs spent Rs 857.46, SCs 758.38, OBCs Rs 870.93 and others Rs 1,306.10 in a month on an average. These are the implications of social exclusion of SC/STs from main stream of development in our country. As an economic organization caste is therefore, a harmful institution in as much as it involves the subordination of man's natural powers and inclinations to the exigencies of social rules. Economic survey (2005-06) says, if people are healthy, educated and adequately skilled, they can participate fully and contribute more to economic development process. However, India's overall performance on human development has been poor in last decade. Infant mortality rate have been much slower than expected. There is widespread under nutrition among women and children and maternal and child health still remains areas of concern. UNDP's global Human Development Report (HDR) for 2005 ranks India at 127 out of 177 countries of the world in term of a composite Human Development Index (HDI) for 2003. Remedial measures Special Central Assistance (SCA) for the special component plan (SCP) is a major scheme for the welfare and development of SCs. Under the scheme 100% assistance is extended to supplement the efforts of the states/ UTs for ensuring rapid socio-economic development of SC specially those living below the poverty line. Allocation for 2005-06 was Rs 407.36 Cr. for economic development of these disadvantaged groups through income generating schemes, special financial institutions have been set up namely scheduled castes finance and development corporation (NSCFDC) National Safai Karmchari Finance and Development Corporation (NSKFDC) National Backward Classes Finance and Development Corporation (NBCFDC) and National Minorities Development and Finance Corporation (NMDFDC) The Protection of Civil Rights (PCR) Act 1955, and the SC/ST Prevention of Atrocities (POA) Act,1989 are two important legal instruments to prevent/curb persistent problems of social discrimination, prevalence of social evils like untouchability and cases of exploitation and atrocities against these disadvantaged groups. But as I said earlier that, because of prejudice mind set of upper castes Hindus these tools are not implements in right spirit. The upper castes Hindus always find different loopholes to avoid the implementation of the Act and therefore, the exclusion of SC/STs continued. The Bhopal Declaration Some of intellectuals among SC/STs and politician, social reformers gather in Bhopal in January 2002 and come with agenda for SC/STs empowerment known as The Bhopal Declaration. Accordingly, ensure that each SC/STs family will own enough cultivable land for socio-economic well-being. The law must be amended to ensure that lengthy litigation with the ulterior motive of denying SC/STs of legal redresses is not resorted to. Enact legislation and enforce the right of SC/STs, agricultural laborers to living wages, to gender parity in wages, to job security, to better working conditions and welfare measures, and ensure punitive measures against offenders. Enforce with stringent measures the Bonded labor system (Abolition) Act, 1976 and abolish forthwith child labor to ensure freedom with dignity for all the SC/STs Make the reservation quota applicable in all the public and private educational institutions from primary to technical and professional levels. Implement effectively in letter and spirit the SC/ST (Prevention of Atrocities) Act, 1989 and Rules 1995, especially with regard to atrocities against SC/STs women, and accordingly prosecute the dominant caste leaders and their minions who stoke the fire of caste clashes and the police officials acting in connivance with them. Ensure that in all state and national budgets allocations are made as per the proportion of SC/ST population and penal action taken against not utilization or diversion of funds meant for these sections. The state must assume sole responsibility in protecting the SC/ST. Make it statutory for parliament and state Assemblies to debate on the Annual Reports of the National and state level Commissions for SC/ST and Safai karmcharis within the following year, and ensure that these annual reports and the action-taken reports of the government are made public. Make reservation mandatory in the private and corporate sector in the same proportion as in the public sector. These are some of the suggestions of the Bhopal Declaration. But unless the mind set of upper caste Hindus changes the implementation of these provisions are not possible. Identity SC/STs and OBC are in majority in India. They should have their own identity in the Democratic society like India because of self identity all these depressed castes people can organized themselves and fight for justice through democratic ways. Dr. Babasaheb Ambedkar has shown us the path of conversion to Buddhism. All SC/STs and OBC should follow the way shown by Dr. Babasaheb Ambedkar and embraced. Buddhism will be the identity of depressed castes being in majority they can have their own government in democratic society and use the political power to empower themselves and establish the just society based on the principle of liberty, equality, justice, and fraternity. I conclude with the words of Dr. Babasaheb Ambedkat that, "turn in any direction you like, caste is the monster that crosses your path. You cannot have political reform; you cannot have economic reform, unless you kill this monster". i V t rajshekar, caste a nation within the nation, published by books for change, Bangalore, 2002 ii B. A. W.S Vol 9 p 410 iii V.T.Rajshekar, caste a nation within the nation, published by, Books for change, Bangalore, 2002 iv Ibid v Annihilation of caste, Dr. Ambedkar reprinted Babasaheb Ambedkar writing and speeches, Vol 1 , published by government of Maharashtra 1979. vi Annihilation of Caste, Vol 1, p 52 vii Times of India, February 27, 2002 viii Ibid Vol 1, p 41 ix Kancha Ilaiah, Buffalo Nationalism, published by SAMYA, Kalkata 2004 x Thorat Committee Report, EPW June2, 2007 xi Ramesh Chandra, 'Identity and Genesis of Caste system in India, Kalpaz publications, Delhi 2005 xii Tilak B. G., EPW, Sept 22, 2007, p 3872 xiii Babasaheb Ambedkar writing and speeches, vol 1,published by Government of Maharashtra, 1979 xiv Times News Network, 11-08-2007
http://www.ambedkar.org/research/SOCIAL_EXCLUSION_and_ITS_IMPLICATION.pdf
"The government will pursue a faster implementation of pending reforms proposal in the coming days, while keeping a close eye on international developments," Finance Minister Pranab Mukherjee said on Monday as the stock market swung violently. He admitted that events in the US could affect India. "For India, there are implications for capital and trade flows," he said.

"At this juncture our economic fundamentals are sound and we need to focus on protecting and encouraging our domestic growth drivers," he said. The talk seemed to work for a while as the market almost erased the over 2.5% decline but fell sharply near the close to end the day nearly 1.8% down in line with other markets.

Chief economic advisor Kaushik Basu said the developments overseas could not be ignored, but most of it had already been priced into the market. "You saw the panic reaction in the morning," he said, adding the economy was doing fine and there was no need for additional measures as of now.

"I really feel in the medium to the long run, Indian story remains very-very robust and we really do not have concern over that," Basu said. "While downside risks to growth may have increased in the wake of global developments, they are likely to have limited impact," the Reserve Bank of India said early Monday morning. The central bank said it will try and ensure adequate rupee and forex liquidity in the market.

"The most important part of the RBI statement is that in the immediate future its priority is to ensure that adequate rupee and foreign exchange liquidity are maintained in domestic markets to prevent excessive volatility in the interest rates and exchange rates," Mr Mukherjee said, adding, "this is very much reassuring".

The finance minister also spelt out views expressed by G-20 finance ministers and central bank governors. "We, the finance ministers and central bank governors of G-20, affirm our commitment to take all necessary initiative in a coordinated way to support financial stability and to foster stronger economic growth in aspirit of cooperation and confidence."

http://articles.economictimes.indiatimes.com/2011-08-09/news/29867326_1_adequate-rupee-central-bank-liquidity

India Economic Reform


The economy of India is one of the fastest growing economies in the world. Since its independence in the year 1947, a number of economic policies have been taken which have led to the gradual economic development of the country. On a broader scale, India economic reform has been a blend of both social democratic and liberalization policies.

Economic reforms during the post independence period

The post independence period of India was marked by economic policies which tried to make the country self sufficient. Under the economic reform, stress was given more to development of defense, infrastructure and agricultural sectors. Government companies were set up and investment was done more on the public sector. This was made to make the base of the country stronger. To strengthen the infrastructure, new roads, rail lines, bridges, dams and lots more were constructed.

During the Five Years Plans initiated in the 1950s, the economic reforms of India somewhat followed the democratic socialist principle with more emphasis on the growth of the public and rural sector. Most of the policies were meant towards the increase of exports compared to imports, central planning, business regulation and also intervention of the state in the finance and labor markets. In the mid 50's huge scale nationalization was done to industries like mining, telecommunications, electricity and so on.

Economic Reforms during 1960s and 1980s

During the mid 1960's effort was made to make India self sufficient and also increase the production and export of the food grains. To make the plan a success, huge scale agricultural development was undertaken. The government initiated the 'Green Revolution' movement and stressed on better agricultural yield through the use of fertilizers, improved seed and lots more. New irrigation projects were undertaken and the rural banks were also set up to provide financial support to the farmers.

The first step towards liberalization of the economy was taken up by Rajiv Gandhi. After he became the Prime Minister, a number of restrictions on various sectors were eased, control on pricing was removed, and stress was given on increased growth rate and so on.

Economic Reforms during 1990s to the present times

Due to the fall of the Soviet Union and the problems in balance of payment accounts, the country faced economic crisis and the IMF asked for the bailout loan. To get out of the situation, the then Finance Minister, Manmohan Singh initiated the economic liberation reform in the year 1991. This is considered to be one of the milestones in India economic reform as it changed the market and financial scenario of the country. Under the liberalization program, foreign direct investment was encouraged, public monopolies were stopped, and service and tertiary sectors were developed.

Since the initiation of the liberalization plan in the 1990s, the economic reforms have put emphasis on the open market economic policies. Foreign investments have come in various sectors and there has been a good growth in the standard of living, per capital income and Gross Domestic Product.

Due to the global meltdown, the economy of India suffered as well. However, unlike other countries, India sustained the shock as an important part of its financial and banking sector is still under government regulation. Nevertheless, to cope with the present situation, the Indian government has taken a number of decisions like strengthening the banking and tertiary sectors, increasing the quantity of exports and lots more.

Related Links

http://business.mapsofindia.com/india-economy/reform.html
Reforms | March of the elephant
PV Narasimha Rao and his finance minister Manmohan Singh uncaged a tiger. But despite worsening inequalities, the economy's dynamism changed old rules and the pecking order of India's leading companies changed

Salil Tripathi

 

On an unusually hot day in August 1990 in Al Ruweishid, I stood at the border crossing between Iraq and Jordan, where officials ignored trucks carrying goods to Iraq defying UN sanctions, paying close attention to the flow of poor Indians, Pakistanis, Palestinians and Egyptians entering Jordan. By law Jordan had to accept the men as refugees, but the officers were worried that these men would remain in Jordan, rather than return home.
That was India's fate then. Indians would consider any country—even Jordan, with its vast stretches where nothing grew. Mother India simply could not feed everyone or create jobs for everyone. The good life was accessible to those who were born in the right family, became babus and accepted corrupt ways, secured permits, licences and prevented others from getting there, or became professionals. India was not where you hoped to prosper, but which many chose to leave. Parents scoured matrimonial ads looking for green card-holding suitable boys and girls. Everything was scarce—jobs, gas connections, foreign exchange, and telephone lines. Shopping lists Indians gave to their relatives returning from abroad included Toblerone chocolates, Pampers, sanitary napkins, and Marks & Spencer's lingerie.
Businesses needed permission for everything and the state planned everything: how many safety pins can be made, who could make them, how large could that company grow, could it borrow, at what rate, and how many workers it could hire— firing them was out of question.
The numbers game: A cumulative result of economic reforms was the Sensex reaching 10,000 points for the first time within 20 years of its launch. Abhijit Bhatlekar/Mint
Meanwhile, the world changed. The fall of the Berlin Wall meant the market India took for granted—the Soviet bloc—ceased to exist.
Iraq's invasion of Kuwait led to a sudden increase in oil prices, throwing India's balance of payments in utter disarray. India had to pledge some of its gold reserves to the Bank of England to remain liquid. Such was the context in which Indian officials loosened controls and expanded economic freedoms. As a foreign correspondent in Singapore, I witnessed India's sometimes charming, often clumsy, at times sincere, but also partly reluctant efforts to liberalize the economy. When elephants learn to dance, it isn't always pretty; if it takes two to tango, in the early 1990s, investors wanted to know how sincere India was.
In 1993, at the end of a reception for India's original reformer, prime minister P.V. Narasimha Rao, at the home of the Indian high commissioner in Singapore, some of us reporters were talking to some of India's leading businessmen. Between them, they ran large businesses in cement, tractors, shipping, power transmission lines, and financial services. But instead of getting to meet the heads of Singapore's leading companies— Keppel, Sembawang or Temasek Holdings—they were introduced to prominent traders from the local Indian chamber of commerce, with local businesses like Scotts Holdings, which was at that time Indian-owned, hosting receptions (a dozen years later, in Davos, the story was different: I saw some of the same executives mingling with the heads of the world's largest corporations, who were queueing up to shake hands with Palaniappan Chidambaram, then the finance minister).
In 1992 in Singapore, the flavour of the month was Vietnam, whose reforms, called doi moi, had excited investors. Overseas Chinese businessmen put money in China, in spite of 1989's Tiananmen Square massacre. A leading Singaporean-Indian businessman even called himself "a chocolate Chinaman", lest he be mistaken for an Indophile. It was in such an environment that Indian businesses sought investors' attention. India was unpredictable; it was stodgy and bureaucratic. N. Vittal, at that time India's secretary in the department of electronics, told investors: "We used to tie you up with red tape; now we are rolling out the red carpet." He encouraged Singaporean companies and Singapore-based multinationals to hire more Indians, saying: "Brain drain is better than brain in the drain."
Visiting Indian executives had to measure every penny before spending it. Once, two executives from a leading Indian company were forced to share a hotel room because unexpectedly they had to foot a steep bill for dinner with a client, and they ran short of foreign exchange, and their credit cards were valid only in India and Nepal. To that, add memories of Coca-Cola and IBM leaving India in 1977, Swadeshi Jagran Manch's attacks on foreign investment ("India is a country, not a market"). Had India really changed? Was India a reluctant bride?
But the reforms Rao and his finance minister Manmohan Singh initiated, uncaged the tiger. Unleashed, the economy's dynamism changed old rules. The pecking order of India's leading companies changed. In 1993, when I did a story on Indian companies in Bangalore to watch out for, I had mentioned Biocon and Infosys, neither of which was even a $10 million (around Rs. 44 crore now) company. Over that decade, Indians moved from being code maintainers, Y2K fixers, and phone conversationalists at outsourcing centres, to devising information technology strategy; executives at multinationals stepped up from being vice-presidents to chief executive officers. Jobs that never existed opened up, like Indian teachers tutoring American children online, Indian medic assistants making medical transcripts. And Indian companies expanded abroad. Stephen Roach of Morgan Stanley would observe that unlike in China, Indian malls had consumers, not gawkers, and the consumers were Indians, not foreigners.
While that boom was real, what about the tribals in Chhattisgarh, and the Vidarbha farmers? Weren't they being left behind? Indeed, many were—but it was not a consequence of reforms; reforms were bypassing them. Confusing coincidence, or correlation for causality, some critics said their real plight was because of liberalization. But India had always dispossessed and ignored tribals who were bullied by the state.
Did inequality worsen? But it would: Simon Kuznets' seminal curve shows how income inequality worsens initially as a country grows, but over time inequality decreases. Inequality is bad when it is the result of imbalances designed to deny opportunity to those who lack them. While the Gini coefficient, which measures inequality, worsened between 1993 and 2005, the difference—from 0.30 to 0.32 overall, and from 0.28 to 0.29 in rural India (from 0.34 to 0.37 in urban India)—suggests that the impact was less severe than what critics made out.
The great development challenge is to extend the dynamism of liberalization to those denied access and equal opportunity. That does not make accounts of horrendous poverty suspect, nor does it make the suicides of farmers any less tragic. But think of this: In 1991, 35.8% of India's 846 million people, or about 300 million people, lived on less than one dollar a day, the measure economists use to define absolute poverty. Ten years later, the figure dropped to 27.5%. By 2006, with India's population at 1.02 billion people, it meant there were 270 million people living in absolute poverty. In the intervening years, when India added 156 million people, those living in absolute poverty fell by 30 million. Had the poverty rate remained 35.8%, there would have been 365 million poor. The economy lifted 95 million people out of absolute poverty.
Stocks rose higher. The Sensex reached 10,000 for the first time within 20 years of its launch—perhaps the fastest such growth for any major index worldwide. With exports, foreign reserves rose, making it easier for Indian businesses to borrow hard currency and acquire businesses abroad. Ranbaxy's early investments were followed by Tata, Mahindra, and Bharti Airtel, and Tata's British assets now include Tetley Tea, Jaguar Land Rover, and Corus Steel. Earlier this year, Ratan Tata shocked the delicate sensibilities of British establishment by complaining about the lazy work culture of British middle management.
India's rise will bother many. When Lakshmi Mittal wanted to buy Arcelor, its then chief executive Guy Dolle ridiculed Mittal's aspiration, saying that Arcelor made perfume, but Mittal only offered cheap eau de cologne. A few weeks later Mittal owned Arcelor.
As India tries to reclaim its erstwhile predominant position in the global economy, it has the opportunity to show that economic and political freedoms can go hand-in-hand; that to grow you don't have to be authoritarian, and democracy doesn't hinder wealth. That might sound false to those still in awe of China. But India is not China, and that's worth celebrating.
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US Firms' CEOs Push For Indian Reforms with Rao
India's new Ambassador to the US Nirupama Rao today met CEOs of top American companies here and said the two countries have to "reflect more deeply" on common concerns with a spirit of understanding and accommodation.

As CEOs of Boeing, Wal-Mart, Cognizant Technologies, GE India and Coca-Cola pushed for further reforms in India, Rao said India and the US have to address common concerns and look for greater economic potential.

"We have to reflect more deeply on our common concerns, enormous business opportunities and ability to take businesses beyond frontiers, with a spirit of understanding and accommodation."

The meeting was organised by the American Chamber of Commerce in India (AMCHAM).

While the issue of further reforms and investment in telecom, retail and infrastructure came up for discussion, Rao said the government's economic agenda has to be guided by the needs of the poor.

"Indian reform process cannot afford to forget the underprivileged people and policy framework would focus on bringing them to the mainstream," she said.

In his remarks, Boeing India President Dinesh Keskar said India would need to acquire aircraft worth USD 150 billion in the next 20 years, requiring big investment in airports and traffic management.

He expressed the hope that under Rao's ambassadorship to the US, "the content and tenor" of dialogue in the aviation sector would improve.

New avatar of licence raj stalls projects'

Times of India - ‎21 hours ago‎
NEW DELHI: Aditya Birla Group chairman Kumar Mangalam Birla on Thursday joined the growing chorus of industrialists who have called for stepping up of reforms and for abolition of the "new avatar of licence raj". "The fact is, as we know large projects ...

India needs boldness in policy implementation: Birla

Business Standard - ‎Aug 11, 2011‎
PTI / New Delhi August 11, 2011, 21:23 IST Amidst global economic worries, Aditya Birla Group Chairman Kumar Mangalam Birla today said the government needs "boldness" in policy implementation as fiscal measures taken in 2008 "seem either unsustainable ...

India must play a larger leadership role in global arena: Kumar Mangalam Birla

India Education Diary - ‎Aug 11, 2011‎
New Delhi: Leading industrialist Kumar Mangalam Birla today advocated a larger leadership role for India in the global arena with vigorous policy facilitation and energised domestic investment spending. He also stressed on the importance of making ...
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Federal Reserve chief decision makes job tough for RBI governor Duvvuri Subbarao

Economic Times - ‎Aug 10, 2011‎
MUMBAI: For Reserve Bank of India governor Duvvuri Subbarao, who was given a second innings on Tuesday, the wicket has just got bouncier, thanks to Federal Reserve Chairman Ben S Bernanke, who has promised to keep interest rates at record low for two ...

Welcome extension

Hindu Business Line - ‎Aug 10, 2011‎
The continuity at the RBI means good news for an economy increasingly under strain, from volatile times as much as policy paralysis. Dr D. Subbarao has got a two-year extension of his term as Governor of the Reserve Bank of India. ...

Ourview | Tinkering with rules of the game

Livemint - ‎Aug 10, 2011‎
The granting of a two-year extension to the RBI governor D. Subbarao is a credible move on the part of the Union government The granting of a two-year extension to the Reserve Bank of India (RBI) governor D. Subbarao is a credible move on the part of ...

Dalal Street cheers extension to RBI governor Subbarao

Daily News & Analysis - ‎Aug 9, 2011‎
By Neelasri Barman | Place: Mumbai | Agency: DNA He has surprised the markets once too often during his three-year Mint St reign, and not always pleasantly. His hawkish stance on inflation and aggressive rate hikes have made credit unaffordable and ...

Government's decision to extend the RBI governor's term is welcome

Economic Times - ‎Aug 9, 2011‎
The government's decision to extend the term of the Reserve Bank of India (RBI) governor D Subbarao by two years should bring some cheer to a market sorely in need of some. The last thing the economy (and the country) needs right now is a change of ...

Stability signal: RBI Gov gets 2 more yrs

Indian Express - ‎Aug 9, 2011‎
To ensure stability in regulatory regimes in uncertain times, the government today extended the term of Reserve Bank of India Governor Duvvuri Subbarao by another two years. He was given a three-year term in 2008 and was due to retire on September 4 ...

RBI governor D Subbarao gets two-year extension

Economic Times - ‎Aug 9, 2011‎
MUMBAI: The government has approved a fresh two-year term for the governor of the Reserve Bank of India, Duvvuri Subbarao, reflecting the confidence in the way he has handled monetary policies and also signalling continuity at a time of turmoil in ...

SNAPSHOT-Indian policy highlights on Tuesday, August 9

Reuters - ‎Aug 9, 2011‎
Aug 9 (Reuters) - Following are statements from Indian policymakers as well as the latest news and scheduled events. * Decline in global crude prices will help in managing India's inflation, Finance Minister Pranab Mukherjee said on Tuesday. ...

RBI steps no substitute for economic reforms

Express Buzz - ‎Aug 10, 2011‎
The UPA government showed a measure of decisiveness in extending the tenure of Reserve Bank of India governor D Subbarao for two years from September 4, when he would have completed three years. The decision reflects the government's anxiety that there ...

Subbarao oversees turbulent times

Business Today - D Subbarao - ‎Aug 10, 2011‎
At the earnest of the Prime Minister, Duvvuri Subbarao - Governor of the Reserve Bank of India - has had his tenure extended by two years, up to September 4, 2013. His original three-year stint as the banking regulator has seen exciting times and a ...
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Putting words in Mr Singh's mouth

Financial Times (blog) - James Lamont - ‎3 hours ago‎
When Manmohan Singh, India's prime minister, speaks to the nation from the battlements of Delhi's Red Fort on his nation's Independence Day on Monday, he will not be short of a script. In past days, columnists have imagined themselves in his shoes and ...

Security goes to the dogs this Independence Day

Times of India - ‎8 hours ago‎
NEW DELHI: They have been at it since Aug 8, a week before Prime Minister Manmohan Singh addresses the nation from the Red Fort on Independence Day. Sniffing around garbage and tracking scents through crowded areas, the canine squad of the Delhi Police ...

A political meltdown in Delhi?

Pakistan Observer - ‎15 hours ago‎
Both the print as well as the electronic media rely on opinion surveys to track the mood of the people, and these are proving to be depressing reading for the Congress Party, specifically for Prime Minister Manmohan Singh. Although he himself is still ...

India's parliament stalls as major issues await

Fox News - ‎Aug 11, 2011‎
| AP NEW DELHI – Screaming matches over corruption have again paralyzed India's parliament, stalling crucial work on its malnutrition crisis and land reforms and deepening concerns over whether anyone is running the world's largest democracy. ...

High security for I-Day celebrations

The Day After - ‎3 hours ago‎
BY DANFES, IANS Ahead of Independence Day, security forces have gone on high alert. A five-layer security system will be place Aug 15 when Prime Minister Manmohan Singh addresses the nation from the Red Fort. A senior police officer said largescale ...

The speech Manmohan Singh won't make on Independence Day

Firstpost - ‎11 hours ago‎
Will Prime Minister Manmohan Singh deliver an address unlike any that we Indians have heard from the Red Fort on previous anniversaries of the nation's independence. B Mathur/Reuters 1. I greet you on the 64th anniversary of our independence. ...

India's parliament paralyzed over corruption scandals as key legislation on ...

Newser - Nirmala George - ‎Aug 11, 2011‎
Screaming matches over corruption have again paralyzed India's parliament, stalling crucial work on its malnutrition crisis and land reforms and deepening concerns over whether anyone is ...
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Full coverage

Indian bank unions to discuss more strike action

Straits Times - ‎Aug 6, 2011‎

Union officials claimed that as many as one million government bank employees walked off the job on Friday, partially disrupting banking operations in Asia's third-largest economy. -- PHOTO: AP NEW DELHI - INDIA'S bank unions will next week decide ...

Strike affects banking transactions worth crores

Times of India - ‎Aug 6, 2011‎

KANPUR: Banking transactions remained suspended in the city on Friday due to a day-long strike of of bank employees on the call of United Forum of Bank Unions. The strike was observed across the country. Transactions worth Rs 10 billion were affected ...

Bank employees go on strike

Times of India - ‎Aug 6, 2011‎

LUDHIANA: Punjab Bank Employees Federation (Ludhiana) went on a strike on Friday against government's move to privatize public sector banks and reduce government equity. The strike was called by united forum of bank unions. ...

Bank employees participate in nationwide strike

IBNLive.com - ‎Aug 5, 2011‎

BANGALORE: The Public Sector Bank employees participated in a nationwide strike on the proposed banking sector reforms in the city on Friday. All the 9 major unions in the banking sector participated in the strike. "We are opposing many reforms ...

Strike hits banks, ATMs to rescue

Indian Express - ‎Aug 5, 2011‎

With the employees of nationalised and old generation private banks going on a day-long strike to protest against the banking sector reforms, bank operations were badly affected across the country on Friday. Though almost all banks, ...

Strike leaves banking paralysed

Times of India - ‎Aug 5, 2011‎

NAGPUR: Public sector banking came to a standstill in the region with funds transfers to the tune of Rs 650 crore being held up for a day due to one-day strike. The United Forum of Bank Unions (UFBU), a confederation of all employees' associations, ...

Strike hits Rs 500cr banking transactions

Times of India - ‎Aug 5, 2011‎

LUCKNOW:Banking servicesin the state capital remained paralysed on Friday , as bank employees went on a day strike in protest against privatisation and merger of banks . The worst affected were the businessmen and traders , who could neither deposit ...

Nationwide strike hits banking operations partially

Economic Times - ‎Aug 5, 2011‎

NEW DELHI: Banking operations were partly affected across the country on Friday due to a day-long strike by employees of public sector and old private sector banks in protest against reforms in the sector. While the banking operations remained ...

Some 1 Million Bank Workers Strike in India

Voice of America (blog) - ‎Aug 5, 2011‎

An estimated 1 million bank employees in India observed a day-long strike Friday to protest government plans to reform the banking industry. The United Forum of Bank Unions organized the strike, which observers say disrupted some banking operations ...

Banking services paralysed

Hindu Business Line - ‎Aug 5, 2011‎

Banking services across the country were affected as nearly 10 lakh bank employees and officers owing allegiance to nine trade unions did not report to work, protesting against the UPA Government's 'reforms' policies in the banking sector. ...

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12/08/2011

HM Steps on Guj's toes, BJP hits back

New Delhi: Expressing concern over the situation in Gujarat where some senior police officers have alleged victimisation by the state government, Home Minister P Chidambaram on Friday said the central government could step in if the officers want. The BJP has lashed back, accusing the Congress of conspiring against its government in the state.

HM Steps on Guj's toes, BJP hits back

Terming it a matter of concern, Chidambaram Friday said: "Rules do provide for the central government to take certain steps at a certain stage. But it all depends on the concerned officer to invoke the situation. Let that situation come, then this government will decide," he added.

BJP leader Arun Jaitley accused the Congress of conspiring with the rebel police officers and attempting to destabalise the BJP government in Gujarat. "The central government is not the big brother that it can intervene in this matter," Jaitley said. The BJP leader said it was the state government's duty to take action against the indiscipline of police officials and called the home minister's comment a "documentary evidence" of the centre's efforts to destabalise the BJP government.

"Here is a second evidence where the union home minister, who should really be concerned with serious policing in the country, has intervened in favour of the indisciplined police officers. There is not the least doubt that the Congress party and the central government are trying to encourage the indiscipline," Jaitley said.

HM Steps on Guj's toes, BJP hits back

"We don't expect police officers in this country to be actively conspiring with political leaders as to how to destabilise the state government. Here you have hard documentary evidence available... some police officers are active in contact and communication with political leaders of the Congress party along with some civil-society activists," he alleged.

The BJP leader also said that if the Congress kept intervening in the matter, it will be a serious matter of confrontation between the Congress and the BJP. "It is a serious issue, and if the home minister and the Congress party do not resist from doing so, I think this will become a serious bone of contention between government and the BJP," Jaitley said. Congress spokesperson Manish Tewari, meanwhile, sought the central government's intervention in protecting the whistle-blower officers.

"All seems to suggest that a desperate Gujarat is walking an extra mile to see that the truth of Gujarat remains buried, and I think that the government of India and the Supreme Court have to be proactive to ensure that these whistle-blower officers who decided to stand up are protected," Tewari said.

Three senior Indian Police Service (IPS) officers of Gujarat cadre - Sanjiv Bhatt, Rahul Sharma and Rajneesh Rai - have alleged victimisation by the Modi government after they accused the state government of inaction during the 2002 riots and in a case of alleged staged shootout killing.

HM Steps on Guj's toes, BJP hits back

Rai has told the Central Administrative Tribunal that his annual confidential report has been downgraded by the state government. Bhatt had filed an affidavit in the Supreme Court saying Chief Minister Narendra Modi had instructed officials and police to let Hindus vent their anger after the Feb 27, 2002, Sabarmati Express train coach burning in which 59 Hindus were killed. Bhatt was suspended on Aug 8 for unauthorised absence from duty among other reasons.

Sharma had in 2004 submitted CDs of records of telephonic calls between the police, politicians and Sangh Parivar members during the 2002 riots to the Nanavati-Mehta Commission probing the riots.

The Modi government had issued notice to Sharma asking him who gave him the permission to hand over the records to the commission. The Gujarat home ministry has been given the nod to file a charge sheet against Sharma.

Source: IANS

By DNA/Daily News & Analysis, 08/08/2011

Bharat Ratna for MS Swaminathan?

New Delhi: Prof MS Swaminathan, eminent agricultural scientist and one of the founders of the Green Revolution will soon be honoured with Bharat Ratna, the country's top civilian award. This was announced here by Jayanthi Natarajan, minister of state for environment and forests.

Bharat Ratna for MS Swaminathan?

New Delhi: Prof MS Swaminathan, eminent agricultural scientist and one of the founders of the Green Revolution will soon be honoured with Bharat Ratna, the country's top civilian award. This was announced here by Jayanthi Natarajan, minister of state for environment and forests.

"Prof Swaminathan is a national treasure. No other scientist in India has influenced the government, farmers and the civil society as he has. The government will soon make an announcement about honouring him with the Bharat Ratna ," Natarajan said while releasing the 21st annual report of the MS Swaminathan Research Foundation, a Chennai-based initiative launched by him to help the country's farming community on sustainable development.

The scientist told 'DNA' he was moved by the words of the minister. "When friends and well wishers speak good things about me, I consider it as if they are speaking about someone else. Hence it will not go to my head," he said.
Prof Swaminathan will become the eighth person from Tamil Nadu to be honoured with Bharat Ratna. The Nobel Prize and the Bharat Ratna are the two recognitions that have eluded the scientist.

Copyright restricted. Under license from www.3dsyndication.com

08/08/2011

Asian stock markets fall after US credit downgrade

Bangkok: Asian stocks fell Monday after the historic downgrade of the U.S. credit rating but losses were contained amid a promise by Group of Seven industrial nations to take all necessary measures to support financial stability.

Asian stock markets fall after US credit downgrade

Oil prices extended recent sharp losses, trading below $85 a barrel on expectations that slowing global economic growth will crimp demand for crude.

Japan's Nikkei 225 stock average was down 1.3 percent at 9,178.30 and Seoul's Kospi dropped 1.6 percent to 1,913.58.

Hong Kong's Hang Seng tumbled 2.6 percent to 20,409.01 while Australia's S&P/ASX 200 pared its initial sell-off to be down 1 percent at 4,062.70.

Futures pointed to losses on Wall Street when it opens Monday. Dow futures were off 225 points, or 2 percent, at 11,177 and broader S&P 500 futures shed 23.6, or 2 percent, to 1,174.20.

Standard & Poor's downgrade of the U.S. sovereign credit rating to AA+ from the top-notch AAA -- announced late Friday -- is another blow to confidence in the struggling U.S. economy, analysts said.

Asian stock markets fall after US credit downgrade

Worries that the U.S. economy, the world's biggest, is heading back into recession have been compounded by signs that Europe's government debt crisis is threatening to engulf bigger economies such as Italy and Spain.

"The loss of AAA status will plainly add some salt to the wounds of weak sentiment" in stock markets but concern is likely to quickly return to the prospects for U.S. and global economic growth, DBS Bank Ltd. in Singapore said in a report.

"Investors are far more concerned about the weak economy than what the S&P has to say about US politicians and their inability to wrap a plan around the deficit," the DBS analysts said.

A flurry of weekend activity by global finance officials gave rise to hopes of coordinated action to prevent a market meltdown.

Asian stock markets fall after US credit downgrade

The G-7 industrial countries issued a joint statement late Sunday pledging increased cooperation to attack economic problems and saying they were committed to taking all necessary measures to support financial stability and growth.

The G-7 statement came after the group held an emergency conference call to discuss the debt crisis in Europe and market prospects following the announcement of the first-ever downgrade of the credit rating of the U.S. government.

The European Central Bank, meanwhile, said it will "actively implement" a bond-purchase program that could boost Spanish and Italian bonds and drive down interest yields that threaten those countries with financial disaster.

The burst of activity underscored how government debt levels in Europe and the U.S. have unsettled financial markets -- and sharpened fears that debt troubles could derail the global recovery from the 2007-2009 financial crisis.

Asian stock markets fall after US credit downgrade

Elsewhere in Asia, Taiwan's benchmark index slipped 1.6 percent and New Zealand's market dropped 2.2 percent. Singapore's key index retreated 1.8 percent.

The Dow fell 5.8 percent last week amid dour U.S. economic news. It plunged 513 points on Thursday alone, the worst day for the Dow since the global financial crisis erupted in 2008.

Benchmark oil for September delivery was down $2.55 to $84.33 a barrel in electronic trading on the New York Mercantile Exchange.

Source: AP

12/08/2011

Air India will not be privatised: Govt

New Delhi: Crying foul, the Opposition on Friday alleged in Lok Sabha that there was a deliberate design to make State carrier Air India bankrupt in order to privatise it, prompting the government to rule out privatisation and promise administrative and monetary steps to turn it around.

New chief, turnaround strategy for AI

CPI and BJP members slammed the government saying it was doing nothing to help the bleeding 'Maharaja', which used to be a symbol of prestige, and is now on death bed. Specifically targeting Air India's Chairman and Managing Director for the mess and attacking the Prime Minister's Office for his appointment, they demanded an overhaul of the entire management followed by full financial infusion, contending that the recent Rs 1,200 crore package was not at all enough.

Responding to the members' concern expressed through a calling attention motion, Minister of State for Parliamentary Affairs V Narayanasamy ruled out any move to privatise Air India and said the government would provide "all possible support" to strengthen the carrier. Listing various steps being contemplated to turn around the airline, he said there will be a complete "rationalisation" of manpower.

New chief, turnaround strategy for AI

"If government found any officer responsible for the losses, government will take action. Government has an open mind, ... government will definitely consider that ... action against officers responsible," said Narayanasamy, responding on behalf of Civil Aviation Minister Vayalar Ravi who is suffering from a throat infection.

Dissatisfied with the reply, the opposition members staged a walkout. Noting that a Group of Ministers (GoM) was looking into the problems of Air India, Narayanasamy said a turnaround plan with financial support would be unveiled soon.

"The policy of the government is to strengthen Air India. Whatever possible support is required, will be given," the minister said.
Contending that Air India had suffered due to declining passenger load and competition from private airlines after 'Open Skies' Policy in 2003 during NDA rule, he said the state carrier was facing a debt of over Rs 44,000 crore and a scheme is being worked out to address it.

New chief, turnaround strategy for AI

Measures under consideration include rationalisation of routes to cut losses, rescheduling of aircraft, complete rationalisation of manpower, redeployment of staff, reduction in contractual appointments, aligning all operational and technical agreements between management and staff to reflect the present market conditions.

On issues pending from the merger, especially concerning human resources, the Minister said a Committee headed by Justice Dharmadhikari was soon going to submit its recommendations to the government. While the airline Board was being reconstituted and remaining posts of functional directors being filled soon, he said the Ministry has also tightened its oversight mechanism.

The Opposition members, including Gurudas Dasgupta (CPI), Murli Manohar Joshi and Shahnawaz Hussain (both BJP), asked the government to "come clean" on how large aircraft orders were given, why the losses mounted heavily after the merger two State-run airlines and "giving away" of profitable routes to private and foreign airlines.

Source: PTI

12/08/2011

RBI maintains 8% growth forecast for 2011-12

New Delhi: The Reserve Bank of India (RBI) has stuck to its economic growth forecast of eight per cent for the current fiscal despite the recent sharp variations in monthly industrial output figures.

RBI maintains 8% growth forecast for 2011-12

"We think growth will be eight per cent in 2011-12. We have made this projection in the policy statement and there is no change in it," RBI Deputy Governor Subir Gokarn told reporters on the sidelines of an event organised by the Confederation of Indian Industry (CII) here.

He said the yearly projections should not be guided by the monthly and weekly fluctuations in industrial output and inflation numbers. "In our policy statement in July, we said that we were seeing signs of growth moderating but these were not broadbased and this number (June industrial output growth) validates that view," Gokarn said.

India's industrial output grew better than the expected 8.8 per cent in June year-on-year as compared to 5.6 per cent in the previous month. Gokarn said June factory output figures were encouraging but it would not be a deciding factor in the central bank's policy making. "Just one number here and there is not a decisive number," said Gokarn.

The Prime Minister's Economic Advisory Council, headed by C Rangarajan, recently lowered the GDP growth forecast for 2011-12 at 8.2 per cent against the budgetary estimate of 9 per cent (plus-minus 0.25 per cent).

Source: IANS

12/08/2011

Industrial growth revives to 8.8% in June

New Delhi: Industrial growth in the country revived moderately to 8.8% in June this year on the back of a smart recovery in the manufacturing sector and better offtake of capital goods.

Industrial growth revives to 8.8% in June

Growth in factory output, as measured in terms of the Index of Industrial Production (IIP), stood at 7.4% in June last year, as per government data released here.

During the first quarter (April-June) this fiscal, IIP growth stood at 6.8%, as against 9.6% in the corresponding three-month period last year.

Output of the manufacturing sector, which constitutes over 75% of the index, grew by 10% in June, 2011, compared to 7.9% in the same month last year.

Offtake of capital goods jumped by 37.7% in June, 2011, in comparison to a growth of merely 3.7% in the previous year.

Similarly, electricity production also improved, witnessing a growth of 7.9% during the month under review, as compared to a growth of 3.5% in June, 2010.

However, growth in mining sector output declined to a mere 0.6% in June, 2011, from 6.9% in the same month last year.

Non-durable consumer goods (FMCG) production also saw a slowdown in growth to 2.1% in June, compared to 7.5% expansion a year ago, while growth in consumer durables output also fell sharply to just 1% from 21.2% a year ago.

Meanwhile, the industrial growth number for May this year has been revised upward to 5.9% from the provisional estimate of 5.6%.

Industrial growth revives to 8.8% in June

As per the latest data, industrial growth during the April-June quarter stood at 6.8% compared to a growth of 9.6% in the first quarter of last fiscal.

The slowdown could be attributed to a weaker performance in April and May 2011, when the IIP growth stood at 5.7% and 5.9%, respectively.

Manufacturing sector grew by 7.5% in April-June this year as against a growth of 10.3% in the same period of 2010.

Growth in mining also fell to a mere one% during the first quarter of the current fiscal from a 8% jump registered in the year-ago period.

Offtake of capital goods grew by 16.9% in April-June this year as against a growth of 17.2% in the year-ago period.

Consumer non-durables witnessed a growth of 4.9% during the period under review as compared to 5.3% in April-June 2010, while consumer durables grew by only 3.3% as against 19.7%.

However, electricity output increased by 8.2% during the first quarter of this fiscal as against a growth of 5.4% in the same period of last year.

Source: PTI

12/08/2011

Markets open higher on strong global cues

The markets started in the green in line with the global markets, with the Sensex up 109 points at 17,161 and the Nifty up 31 points at 5,168. However, the BSE benchmark index pared some of its initial gains and is currently at 17,109 up 50 points. The Nifty is up 14 points at 5,152.

The broader markets have started on a stronger note with both the smallcap and the midcap indices up 0.8% each outperforming the Sensex which is up 0.4%

In the US markets overnight, stocks shot up 4% as bargain-hungry investors overcame the recent wave of fear that drove selling over the last two weeks. Yesterday's rally was the second bounce in a yo-yo week. After a sell-off that pushed the S&P 500 down as much as 17% since July 22, the market was showing some signs of regaining its footing.

The Dow Jones industrial average surged 4%, to 11,143. The Standard & Poor's 500 Index shot up 4.6%, to 1,173. The Nasdaq Composite Index jumped 4.7%, at 2,493.

As a result, the Asian stocks edged higher. Also, investors hunted for value after an intense week of volatility, though the festering European financial crisis may mean that havens like gold and the Swiss franc may still draw buyers.

Hang Seng, Jakarta Composite, Straits Times and Seoul Composite up 1% each are the top gainers. Shanghai Composite added 0.6% and Japan's Nikkei share average rose 0.2%.

All the sectoral indices started in the green except the Oil & Gas index down 0.3%. The ones leading the opening gains are Realty, Metal and Health Care indices up 0.8-1%. The movers in the realty space are Sunteck Realty up 8% followed by Sobha Developers, D B Realty, HDIL, Unitech and DLF adding 1% each.

The draggers in the Oil & Gas space are HPCL, Oil India, IOC down 0.4-0.6%.

The losers among the Sensex stocks in the opening trades is Tata Motors down 1.5% after CLSA downgraded the company to under-perform from outperform, with the target price reduced to Rs 790 from Rs 1,150. The other notable losers are Hindalco, Reliance Industries and Wipro down 0.2-0.4%

Among the Sensex gainers are Mahindra & Mahindra, Sterlite, Jindal Steel, Tata Power, Cipla and ICICI Bank up 1% each.

The market breadth is positive. 979 stocks advanced while 270 declined in opening trades.

Among individual stocks, L&T Finance Holdings, a unit of engineering giant Larsen & Toubro (L&T), has debuted at Rs 49.50, a 5% discount against its issue price of Rs 52 per share on the Bombay Stock Exchange. The stock that hit high of Rs 52 thus far has seen around one million shares changing hands on the counter in opening deals.

Source: Business Standard


--
Palash Biswas
Pl Read:
http://nandigramunited-banga.blogspot.com/
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