Long way to go for India to become global growth engine: Raghuram Rajan

The comments assume significance in the wake of a China-led slowdown hurting the markets worldwide in the recent days, which has led to calls in India for taking this crisis situation as an 'opportunity' as the global economy may need alternative growth engines.
  
Asked whether India can replace China as a new growth engine, Rajan said, "India is one-fourth to one-fifth of China's size. Even if we can overtake China in terms of growth rates, the magnitude of the effect will be far smaller for a long time to come."
  
As per the latest data available with the World Bank, GDP of the US is over USD 17 trillion. This compares with China at over USD 10 trillion and India USD 2 trillion. http://post.jagran.com/long-way-to-go-for-india-to-become-global-growth-engine-raghuram-rajan-1440584721

Source: Business News 

Economic policy "directionless", minorities anxious: Arun Shourie

The 73-year-old journalist-turned politician said the one-year rule of Modi is "good in parts", his transformation as Prime Minister is good in foreign policy, but the promised turnaround in economy has not happened.

"The government seems to be more concerned with managing headlines than putting policies in place. The situation is like the many pieces of a jigsaw puzzle lying in a mess with no big picture in mind about how to put them together," he said in an interview.

Shourie, who is not active in BJP these days, said despite promises the fears of foreign investors on retrospective taxes and incentives for manufacturing have not materialised on the ground.

"They (investors) require stability and predictability," he said, adding that the concern expressed by eminent banker Deepak Parekh on the situation on the ground should be seen as a "wake up call".

Asked if the Modi government had done enough to put India on growth path, Shourie said that it was "all hyperbole". "Such claims are meant to grab headlines but lack substance," he said. Shourie handled the Ministries of Disinvestment, Communication and Information Technology in the Vajpayee government.

"Government is talking big on economic matters but nothing is happening on ground. Delivery is missing," he added. In an apparent reference to Finance Minister Arun Jaitley, he said the government lacked a stable approach in dealing with investors and that "lawyerly arguments" would not convince them.

Source: Online Hindi News and Newspaper

Indian CEOs more confident about growth than global peers: PwC

According to PwC's 18th Annual Global CEO Survey, 62 percent Indian Chief Executive Officers are very confident of their growth prospects in the short term (12 months) – higher than their global peers and up from 49 percent last year.

"The optimism in India may be more than just the euphoria following a majority growth-oriented government being voted to power at the Centre," the report said, adding that 84 percent of Indian CEOs see more "opportunities" while only 41 percent see more "threats".

Further, 71 percent of CEOs are very confident of growth in the next three years.

"CEOs in India seem to be benefiting on both counts-developments within and outside the country. Our survey reflects this exuberance of CEOs about growth of their businesses as also of the economy," PwC India Chairman Deepak Kapoor said.

According to the report, CEOs are ready to collaborate for access to new geographic markets, technologies and customers with 63 per cent planning to enter into new strategic alliances or joint ventures over the next year – the highest percentage since 2010.

The key concern for CEOs in India continues to be inadequate basic infrastructure, while global CEOs are more concerned about over-regulation, increasing tax burden, geo-political uncertainty and government response to fiscal deficit and debt burden.

The only threat common to both global as well as Indian CEOs is the unavailability of key skills, PwC said.

Find Latest News from Latest India News

Sharp rise in bad loans; banks taking action: Government

"It is normal for the banks to have 2-3 per cent of NPA (Non-Performing Assets). But in the last 2-3 years the NPA has been increased substantially and gone up to 6 per cent... Stress assets have also been increased," he said during the Question Hour.
 
Jaitley said actions against those who have failed to repay the loan amount have been initiated under various provisions of law - including under Indian Penal Code and and civil laws.
 
To a question on action taken against promoters of Kingfisher Airlines for having huge outstanding loans, he said banks are dealing with all defaulters as per law and actions have been taken that include declaring the promoters and directors as willful defaulters that barred them to obtain loan from any bank in future and auction mortgaged property.
 
Jaitley said there are people and companies who are under stress due to the economic slow down in last 2-3 years and in such cases banks allow the companies to restructure the loan repayment process to give them relief.
 
He, however, said, there are people and companies whose intention is not good and who do not want to repay the outstanding amount to banks. In such cases, the banks take proper action as per law.
 
The minister said the SEBI Act has been amended recently with tough provisions and steps are being taken against those companies which cheat people in the name of chit funds.   

Under the amended law, the state governments can take action against those who cheat people while collecting money in the name of chit fund.
 
Police has full right to take action and many people are in jail for such crime," he said.

Source:News and Business News

India's manufacturing sector output at nearly 2-year peak in November: HSBC

The headline HSBC India Purchasing Managers' Index (PMI) a composite gauge designed to give a single-figure snapshot of manufacturing business conditions stood at 53.3 in November significantly higher from 51.6 in October.

The manufacturing sector output, improved for the 13th month in a row and reached a 21-month peak in November.

A figure above 50 indicates the sector is expanding, while a figure below that level means contraction.

"Manufacturing activity accelerated further in November led by higher output and new orders. Domestic orders saw the biggest increase, even as new export orders continued to be strong," HSBC Co-Head of Asian Economic Research Frederic Neumann said.

November data indicated stronger-than-expected demand, as new order growth accelerated to the quickest in 21 months. Similarly, foreign orders received by Indian goods producers continued to rise strongly in November.

Meanwhile, the country's economic growth fell to 5.3 percent in the second quarter from 5.7 percent rate in the first three-month period ended June, raising the clamour for rate cut by the RBI on Tuesday.

Source: News and Business News