The Confederation of Indian Industry has urged all stakeholders to create better sentiment about the Indian economy for foreign investments to flow.
“Labour violence in Manesar, the grid failure and proposed amendments in GAAR (General Anti-Avoidance Rules) have created negative sentiments with respect to investments in India. We need to create better sentiments for FDI to come,” said the CII President Adi Godrej.
“Do not talk about what is going wrong. The Government is taking steps on the power situation and labour unrest. Talk about the future and what we as an industry can do better to improve productivity and efficiency,” said Godrej, adding that the Indian economy is structurally strong and this must be propagated.
Godrej hopes the Indian economy will be back on the growth path next year. GDP growth during 2011-12 plunged to 6.5 per cent, from 8.4 per cent in the previous year. Quarterly GDP fell steeply to 5.3 per cent in the fourth quarter, from 8 per cent in the first quarter.
The CII President called for economic revival through reforms and governance. Reforms such as the Goods and Services Tax, the Direct Tax Code and FDI in aviation, retail, pension and insurance must be accelerated, urged Godrej.
Read more: Business Line
Policy reform, cuts in government spending required: RBI
The Reserve Bank of India said on Thursday that lower interest rates alone would not help put the economy on the growth track, and the government needs to make policy reforms and expenditure cuts, and address issues delaying infrastructure projects.
The Indian economy is unlikely to improve in the near term because of “policy stasis”, the Reserve Bank of India said in its annual report 2011-12. New investments have slowed down substantially and existing investments’ completion is getting delayed.
“Inflation is likely to remain sticky around 7% with upside risks emanating from a deficient monsoon,” the RBI said.
It urged the government to reduce expenditure by cutting subsidies and called for “a step-up in capital expenditure to crowd-in private investment.”
The report, which is released at the end of the central bank’s accounting year, is a review of the previous fiscal year’s macroeconomic conditions and outlook for the current year
Investment in infrastructure has slumped 52% to Rs. 1 trillion from Rs. 2.2 trillion a year ago, with power and telecom accounting for most of the drop.
The fall in corporate investment in large projects “has had a ripple effect on the economy”, the RBI said.
Read more: HindustanTimes
Govt eyes $1 trillion investment in Infrastructure
New Delhi: Greater public and private participation is required in sectors such as railways, ports and power as India looks at investing USD 1 trillion in infrastructure over the next five years, Minister of State for Urban Development Saugata Ray said today.
Besides, he said, urban development projects have not been able to get a strong response based on Public-Private- Partnership. Although PPP is happening in sectors like telecom, ports and roads, lot of other segments need greater attention, the minister added.
“India’s basic infrastructure was ranked at 86th in the global competitive report 2010 by the World Economic Forum. So, we have a long way to go. There is a potential for PPP to contribute more and help bridge the infrastructure gap in sectors like ports, roads, railways and power,” Ray said. He was speaking at the “2nd Regional Conference on Infrastructure Management” organised by CII and CBRE.
Read more: The Financial Express
Delhi-Jaipur double-decker train flagged off
New Delhi: Passengers to Jaipur can now take a ride on AC double-decker train with Railways on Friday flagging off the service heralding a new era in passenger transportation.
The train will run between Delhi’s Sarai Rohilla and Jaipur and carry 120 passengers in a coach as compared to about 80 passengers in a conventional coach. A ticket will cost Rs 347.
The train will leave from here at 5.35 PM and arrive in the Pink city at 10.05 PM the same day.
In the return direction, commencing regular services from August 25, the Jaipur-Delhi Sarai Rohilla Double Decker AC will depart from Jaipur daily at 6 AM to reach Delhi Sarai Rohilla at 10.30 AM the same day. Comprising eight AC chair car coaches and two power cars, the double-decker AC train services will stop for 2 minutes each at Delhi Cantt., Gurgaon and Gandhi Nagar, Jaipur stations enroute in both directions.
Railway Minister Mukul Roy flagged off the train at a function here which was attended by Delhi Chief Minister Shiela Dikshit and a host of other political leaders and senior railway officials.
In all, railways proposes to introduce five AC double- decker trains across the country, the first of which started running last year between Howrah and Dhanbad. Mumbai- Ahmedabad is next in the line to have a doble-decker train.
Read article: ZeeNews
Delhi Metro launches online ‘lost and found’ service
Delhi Metro commuters can now claim their missing baggage and other items with the new age public transport launching an online ‘lost and found’ service across its vast network.
The service has been initiated with the help of CISF, which provides security to the network, officials said on Friday.
Commuters can either log on to the official Delhi Metro Rail Corporation (DMRC) web portal http://www.delhimetrorail.com or onto the website of the security force – http://www.cisf.nic.in – to check the list of lost items found on each Metro station and later claim it from the control room of the Kashmere Gate station, they said.
The list put on the website also contains the time and date of the item recovered by Central Industrial Security Force (CISF) personnel at any of the stations, the officials said.
Read more: The Indian Express
Good news for Noida Extension flat buyers
New Delhi: In good news for flat buyers in Noida Extension, the National Capital Region Planning Board today gave its approval to the Draft Master Plan for Greater Noida-2021.
“All the members of the NCR Planning Board and the Chief Ministers of the member-states have signed the approval,” Naini Jayaseelan, Member-Secretary NCRPB said.
The National Capital Region Planning Board has Delhi, Uttar Pradesh, Haryana, Rajasthan as its member-states.
The Allahabad High Court had stayed construction in Noida Extension, which is a part of Greater Noida, and directed the Greater Noida Authority to seek approval of its Draft plan from the NCR Planning Board.
The Board, which is chaired by Union Urban Development Minister Kamal Nath, has okayed the Draft Master Plan with the understanding that the earlier recommendations made by the NCRPB technical committee would be incorporated in the plan, officials said.
A statutory committee of NCRPB had already given the the Draft plan the go-ahead after suggesting some modifications, sources said.
Read more: The Financial Express
Who’s afraid of retail reform?
With rising doubts about India’s current economic health, there is renewed speculation about a fresh round of financial sector and infrastructure reforms. One of the key areas is the issue of foreign direct investment (FDI) in multi-brand retail. While it is clear that the government is keen to implement this to spur investment, opposition parties and several chief ministers continue to oppose this on fears that this will have an adverse impact on shopkeepers and kirana stores. If the government wants to implement this measure then it must address these fears. In doing so, the government should cite and also learn from the example of retail in other emerging economies.
Moreover, it should emphasise that retail regulations can be implemented differently by the respective state governments. There is also a need to demonstrate how retail development is fundamentally a democratic process, that is, driven for the local people (customers) by the local people (producers, suppliers, retailers) — allegations of “foreign” hand and alleged exploitation notwithstanding.
Read more: The Financial Express