Economy
Hardly any foreign investment into India: China daily

The article said despite the fact that Modi's government has brought in a series of measures for investors, such as establishing special economic zones, free tax zones and free trade areas, some of these efforts have come up against resistance by state governments, which "hold great control over adopting policies for local economic development".

 

Describing Prime Minister Narendra Modi's "relentless efforts at major power diplomacy" as the main achievement of his first year in office, a leading English daily of China said on Monday there is, however, little evidence of foreign direct investments coming into India.
 
"For the moment, there is little evidence of success for foreign investments from private enterprises," the Global Times stated in an opinion piece barely two days after Modi concluded his official visit to China.
 
"In the end, if any country tries to encourage investments to India, most of the programmes will be led by the government itself, with most of the private business sector skeptical about the whole idea," it said.
 
Pointing out that though India enjoyed a favourable diplomatic climate due to its ideal geographical position, the daily in a hard-nosed assessment of the country said that "even if New Delhi keeps persuading investors how promising it is to do business in India, the current situation is far from reassuring".
 
"Power failures happen frequently. There is a lack of decent roads and ports for transportation. Labour unrest occurs from time to time. Attracting investments against such backdrop will prove to be a major problem," it added.
 
The article said despite the fact that Modi's government has brought in a series of measures for investors, such as establishing special economic zones, free tax zones and free trade areas, some of these efforts have come up against resistance by state governments, which "hold great control over adopting policies for local economic development".
 
Saying the US has been trying to cultivate India in its geopolitical strategy to contain China's rise, while Beijing desires to promote friendly ties with its neighbour, the article stated: "Modi has obviously realised this, that's why he started proactive international engagement soon after he assumed office."
 
"But India has long adhered to an independent foreign policy, with no interest in being manipulated to fight in anyone's corner," the newspaper said.
 
India, it said, has traditionally acted very prudently, "which can be seen from Modi embracing Putin while trying to cement closer ties with Washington at the same time".

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COMMENTS

Senior Citizen

2 years ago

FDI is very difficult in India with Red Tape and Bureaucracy one of the worst in the world.

Assessing one-year's performance of the Modi government
The Narendra Modi Modi government, which completes a year in office on May 26, had won last year's general elections on the plank of development and its promise to bring in ‘Acche Din’. Here is a performance snapshot of the major initiatives undertaken by the government in various broad areas. These include the economy, foreign engagement, agriculture, infrastructural development, social security schemes, urban development, industrial development, health and environment, education and entrepreneurship and employment.
 
Let's first turn to the economy. The economy observed three broad level trends. First, there was the global fall in commodity prices that lead to a gain for oil importing countries as their import costs suddenly reduced from approximately $120 a barrel to $60 a barrel. Second, was the government's acceptance of the Fourteenth Finance Commission's recommendations in the context of devolving more funds to the states. The figure now stands at 42 percent of the total revenue collection, up from the earlier 32 percent. Third, was the revived economic growth forecasts lead by IMF, which in its April 2015 report, revised its forecasts for India to 7.5 percent ahead of any other major developing economy, including China. The ADB similarly pointed to a bettering economy with core inflation down to 5 percent. With an overall bettering situation, the economy scores 7.5 out of 10. 
 
Let's now turn to the area where there was much "sound and fury" - namely foreign engagement and defence. But unlike the phrase, it did signify India’s increasing global stature and aspirations. It included, among other things, trips by many domestic/foreign dignitaries to and from India. The resolve to talk and negotiate contentious border issues was also observed. The passing of the Bangladesh Land Accord Bill was a historic step aimed at transferring enclaves with a clear demarcation of territory. In the defence sphere, there was the decision to acquire 36 Rafale fighter jets that was again an imperative since the squadron strength of Indian Air Force is already down to 35 against a sanctioned strength of 42. Adding two more squadrons will help India protect, to some extent, its skies. Overall a score of 8.5 out of 10 foreign engagement and 7.5 out of 10 on defence. 
 
The agricultural sphere witnessed erratic weather and the lack of urea availability made the overall condition bad. Added to this was the land acquisition bill that made matters worse for the government as well as the farmers. The land bill will help the farmers with alternative sources of income and provide employment to the youth. The government’s focus seems to be on irrigation schemes and helping farmers in distress. But much more could have been done and communicated appropriately. An overall score of 6.5 on 10. 
 
The industrial, FDI and power sectors saw varying degrees of success, the most successful being the power sector with an increase in coal production as well as an increase in power capacity and generation. The FDI inflows also saw a spurt in the equity inflows as well as the fact that defence and insurance have been opened up to 49 percent foreign participation bodes well for the economy. The industrial sector was a bit subdued in spite of the Make in India programme. Some more steps need to be taken for Make in India to be successful. Overall a score of 6.5/10 for industries and a score of 8/10 for power. 
 
The education sector saw many schemes being launched like the GIS mapping of schools, the Swachh Vidyalaya Abhiyan and the like. However, the historical legacy of the education system fails to let go. Therefore, parents prefer private schooling to government schools. Also, with respect to higher education, mere opening of institutions will not serve the purpose. Quality and quantity should be the twin pursuits. An overall score of 6.5 out of 10. 
 
In the context of infrastructure, the primary purpose seems to be the creation of new infrastructure as well as upgradation of existing infrastructure. Infrastructure development is a must since the speed of business relies on it. The upgradation of railways and creation of new highways all fall under infrastructure’s ambit. Also included are ports, airport, waterways and canals. The clearance of projects worth Rs.6 lakh crore makes it amply clear that infrastructure growth is likely to be expected in the coming years. Overall, a score of 7.5 on 10.
 
The social schemes have been very impressive and in the reach of the common man. The Jan Dhan Yojana, Pradhan Mantri Jivan Jyoti Bima Yojana (PMJJBY) Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana schemes together have close to 19 crore takers. The government seems to have a social focus on benefitting the poor. An overall score of 8 on 10.
 
In the context of urbanization, the 100 Smart Cities project has not seen that much activity, barring the launch of GIFT city and the development of DMIDC cities. An overall score of 6.5 on 10. Health is an area where the government has not been able to do much, apart from increasing the prices of cigarettes. The state of rural health delivery remains decrepit. Pollution of air, water and land, as also the rise in noise levels, has ensured that people continue to face serious health issues. An overall score of 6 on 10.
 
With respect to entrepreneurship and employment, this is the first time a ministry has been created with a focus on entrepreneurship. Skilling of youth and entrepreneurship are crucial areas for realizing the demographic dividend. Further, a draft policy on skill development and entrepreneurship has already been drafed and put out for public consultation. The direction and intent seem to be good. Overall a score of 7.5/10. 
 
The government’s plans, policies and functioning seem to be in line with the country’s overall growth and trajectory. With respect to the challenges, the government seems to be prepared with adequate steps. In the coming years, most of the things will depend on the pace of decision-making and speed of implementation.

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COMMENTS

LALIT SHAH

2 years ago

Loot fat government nothing else. Refer modis statement on protocol & petrol desiel prince.
Dual speaking goomrah karnewalo ki SARKAR.
Hard Hindus abuseinig MAHATA GANDHI AND ALL OTHER LT.NATIONAL LEADERS
WHO ARE NOT FROM RSS TRYING TO ESTABLISH GODSE AS FATHER OF NATION.
BUT I CAN'T UNDERSTAND THAT WHY MODI BUILT "MAHATMA MANDIR" IN GANDHINAGAR GUJARAT.
DOUBLE STANDARD GOVERNMENT
PUBLIC UNDER STAND THAT THIS IS TOTALLY JOOMLA SARKAR
FINDING NEW SORCIES HOW TO TEL OIL NIKALE PUBLIC KA
LIKH LO EK AUR NAVNIRMAN JAISA ANDOLAN HOGA. DUNIYA BHAR ME JAKE BESHARMI SE PICHHLI SARKARO KO CHHOR BOL RAHE AUR SARI DUNIYA JANTI HEY 51 YEARS TAQ KAHA THEY JUMLA 14 SAL ME HINDUS KO MURKH BANAKE DELHI KI SEHNSHAHAT HASIL KAR 10 LAKHU SUIT PEHRI SAFAI MARI DESH KE KATTER DUSMAN PAK CHAINA SE HATH MILAKE APNE KHUD KE ELECTION PEHLE KE BAYANO KI DHAJIA UDAI
GANGOO TELI magnolia KO 100000 CRORES dollers ka donation kiya bat hai public Se vasoole tax ke paise udana agar sidhi hai to think hai
TOTALLY FAIL
Sending to video clips before election which modi deliverd

Nifty, Bank Nifty, Sensex on an uptrend – Monday closing report

Nifty will remain bullish, as long as, it stays above 8,250

 

We had mentioned in last week’s report that Nifty may struggle to rally but it would still be on an uptrend, as long as, it stays above 8,150. Today, the index opened marginally higher and moved in a range till 1.06 pm. After this the benchmark gained an upward momentum and hit its 15-day (including today) high and closed near to it.
 
Sensex opened at 27,417 while Nifty opened at 8,285. After hitting their lows at 27,370 and 8,272 the benchmark moved higher to the level of 27,726 and 8,385. Sensex closed at 27,687 (up 363 points or 1.33%) while Nifty closed at 8,374 (up 111 points or 1.35%). Bank Nifty witnessed a gradual upmove today. After opening at 18,275, it hit a low at 18,214 and from there it moved upto 18,440. It closed at 18,423 (up 240 points or 1.32%). NSE recorded a volume of 74.50 crore shares. India VIX fell 9.65% to close at 17.9025.
 
Data released by the government, after trading hours on Friday, showed that India's merchandise exports declined 13.96% to $22.05 billion in April 2015 over April 2014. Imports declined 7.48% to $33.04 billion in April 2015
 
Based on provisional accounts for the year ended 31 March 2015 (2014-15), the fiscal deficit stood at 4% of GDP for 2014-15 as against the target of 4.1%. The revenue deficit stood at 2.8% of GDP in 2014-15 as against target of 2.9%. The government's gross tax collections rose 9% to Rs12.45 lakh crore in 2014-15.
 
The Finance Ministry said in a statement issued on Sunday that the government has managed to better its target for containing the fiscal and revenue deficits in the last financial year.
 
India and South Korea on Monday inked seven agreements, including one on  Avoidance of Double Taxation and shipping.
 
India needs to continue to move towards making the rupee more convertible for capital transactions by foreign investors, said Reserve Bank of India Executive Director G Padmanabhan, amid a growing debate over the merits of a freely floating currency.
 
The Finance Ministry is expecting a rating upgrade by credit agencies by the year-end on the back of policy initiatives, moderating inflation and improvement in the fiscal position of the government.
 
SpiceJet is planning to raise $150 million (over Rs900 crore) in debt or equity and is in discussions with private equity firms and banks. The funds will be used as working capital and to repay dues.
 
The SBI Monthly Composite Index, a leading indicator for manufacturing activity in Indian Economy, inched up from 46.8 in April 2015 to 53.8 in May 2015.
 
Jain Irrigation (16.46%) was the top gainer in ‘A’ group on the BSE. The stock hit its 52-week low last week. It reported a net profit of Rs49.83 crore for FY14-15 as compared to Rs3.90 crore for FY13-14.
 
NCC (9.11%) was the top loser in ‘A’ group on the BSE. It has reported increased sales for FY14-15 and its board has declared equity dividend of 20%.
 
Dr Reddy’s Lab (3.48%) was the top gainer in the Sensex 30 pack while Hero MotoCorp (0.31%) was the top loser.
 
On Friday US indices closed flat. The US Federal Reserve could look at a rate hike in June if the economy is strong enough, Chicago Fed President Charles Evans said in the Swedish capital on Monday.
 
Asian indices closed mostly in the green. Nikkei 225 (0.80%) was the top gainer while Hang Seng (0.83%) was the top loser.
 
In Japan, the latest data showed that Japan's core machinery orders, excluding often volatile orders for electric power companies and ships, rose 2.9% in March from the previous month.
 
European indices were showing mixed performance while US Futures were trading lower.
 
Canadian ratings service DBRS Inc. on Friday cut its rating on Greece, citing uncertainty over whether it will be able reach an agreement with its creditors.
 

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