Want to make India the most open economy in the world: PM
Asian Development Bank (ADB) has said that Indian economy will grow 7(point)4 per cent this fiscal, and 7(point)6 per cent in the next fiscal. India had grown 7.1 per cent in the previous fiscal.
ADB Chief Economist Yasuyuki Sawada said that reforms like the Goods and Services Tax and the new bankruptcy law will make it easier to do business in India. On the impact of rupee appreciation on exports, he said, the appreciation cannot be considered in isolation, and the overall export performance of India so far seems quite positive.
The rupee has appreciated by over 5 per cent against the US dollar since January. Mr Sawada was talking to the media at Yokohama in Japan yesterday, a day before finance ministers and central bank governors meet for the ADB’s 50th annual meeting.
Mr Sawada said, emerging orientation in US and Europe for protectionism in trade is worrisome, but not enough to break the global economy. He said ADB stresses on more open trade and more free movement of capital, and it should play an important role to push an open trade and investment regime.
Mr Sawada cited the example of China, which is shifting from an export driven model to a more internal demand driven model. He said there is a trend in Asia that domestic consumption and investment play a much more important role than external demand. But this trend does not deny the importance of trade, he said.
Minister of State for Food C R Chaudhary said in a written reply to parliament on Tuesday that the government had approved the creation of a buffer stock of up to 2 million tonnes, half of which will be imported.
The Union Cabinet approved a new framework for dealing non-performing assets (NPAs) in the banking system, details will be announced after President Pranab Mukherjee gives his assent to an ordinance to amend the Banking Regulation Act to resolve the Non Performing Assets crisis.
The set of measures includes the promulgation of an Ordinance to amend the Banking Regulation Act to give more powers to Reserve Bank of India and its committees to act on behalf of banks while deciding on NPAs.
The Cabinet also gave its nod to the National Steel Policy- 2017 which targets to achieve 300 Million Tonnes of steel making capacity by 2030 with an additional investment of ten lakh crore rupees.
The new steel policy seeks to enhance domestic steel consumption and ensure high quality steel production and create a technologically advanced and globally competitive steel industry. It is aimed at increasing consumption of steel in major segments like infrastructure, automobiles and housing. It is also intended to create self sufficiency in steel production by providing policy support and guidance to private manufactures, MSME and steel producers.
The Cabinet also approved policy for providing preference to domestically manufactured iron and steel products on Government procurement. The policy seeks to accomplish the Prime Minister’s vision of ‘Make in India’ with objective of nation building and encourage domestic manufacturing. It will be applicable on all government tenders where price bid is yet to be opened.
The Cabinet gave its approval for the declaration of Vijayawada Airport as International Airport, as per the provisions of Andhra Pradesh Reorganisation Act, 2014. It also gave ex-post facto approval to the Memorandum of Understanding on Third Line of Credit of 4.5 billion dollars to Bangladesh for implementation of developmental projects.
The Cabinet Committee on Economic Affairs approved the initiation of the process of disinvestment of hotels and properties of the India Tourism Development Corporation Limited. The CCEA also gave its approval for re-structuring the schemes of the Ministry of Food Processing Industries under new Central Sector Scheme SAMPADA.
India has witnessed significant rise in private equity backed strategic M&As and IPOs in 2016. With the buoyant stock market and confidence in the economy, the momentum will continue going forward. Though the year started at a slow pace in terms of PE/VC investments, it is likely to end with some big ticket deals.
Work begins on 5 expressway projects, 7 more on anvil- The Government has started work on five expressways including Delhi-Meerut while other seven projects will be launched soon. Hon’ble Minister of Road Transport, Highways and Shipping, Shri Nitin Gadkari stated that they are constructing 12 new express highways. Work on five has already started. These include Eastern Peripheral expressway which will be completed by August 15 this year and Delhi-Meerut expressway.
India pitches for Foreign Direct Investment (FDI) in food processing industry – Pitching for foreign direct investment in the food processing sector, India has asked the US companies to take advantage of its liberalised foreign investment rules, ready from the Ministry of Food Processing Industries started their two-day trip to Midwest from Chicago holding meetings with high-level officials from several Chicago land food services, logistics and restaurant companies.
Cabinet approves modifications in the 7th CPC recommendations on pay and pensionary benefits – The Union Cabinet chaired by the Hon’ble Prime Minister Shri Narendra Modi approved important proposals relating to modifications in the 7th CPC (Central Pay Commission) recommendations on pay and pensionary benefits in the course of their implementation. Earlier, in June, 2016, the Cabinet had approved implementation of the recommendations with an additional financial outgo of Rs 84,933 crore for 2016-17 (including arrears for 2 months of 2015-16).
Cabinet approves Policy for providing preference to domestically manufactured iron & steel products in government procurement – The Union Cabinet chaired by the Hon’ble Prime Minister Shri Narendra Modi has approved the policy for providing preference to domestically manufactured iron & steel products on Government procurement. This policy seeks to accomplish the PM’s vision of ‘Make in India’ with objective of nation building and encourage encourage domestic manufacturing.
Cabinet approves Memorandum of Understanding (MoU) on Third Line of Credit of US $ 4.5 billion – The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given ex-post facto approval to the Memorandum of Understanding (MoU) on Third Line of Credit (LoC) of US $ 4.5 billion to Bangladesh for implementation of developmental projects. The MoU was signed during the visit of the Prime Minister of Bangladesh to India in April 2017.
Railways set to get big booster shot, government to start work on $5 bn rail fund within weeks – After scaling up railway capex substantially over the last couple of years via extra budgetary resources, the Government will begin the process for creating a $5-billion Railways of India Development Fund (RIDF) soon. As per the plan, the World Bank-anchored fund will be accessible to all railway projects — public-sector, private ventures and the projects undertaken by their alliance. The idea is that contractors bidding for railway projects will find a cheaper source of funds in RIDF which is in alignment with the long-gestation projects.