General Affairs
Quality Of Engineers Very Sub-Standard In India: E Sreedharan
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AHMEDABAD: 'Metro man' E Sreedharan today rued that engineering institutes in the country are producing engineers of "very sub-standard" quality while underlining the paradox wherein IITians are heading to foreign countries for higher studies or better employment.
Addressing a gathering in Ahmedabad, Mr Sreedharan appealed to the engineers to get a "different orientation, standard and mission for handling various infrastructure projects for which Prime Minister Narendra Modi has set a target of (Rs.) 5 trillion."
"In our country, engineers are not able to come up very fast. We (engineers) are not taking enough efforts to keep ourselves up-to-date. Engineering colleges or institutes that we have in the country, according to me, are producing very sub-standard quality of engineers," said Mr Sreedharan, a Padma Vibhusan awardee credited for successfully steering challenging projects like Konkan rail and Delhi Metro.
He was speaking at UN Mahida memorial lecture on the topic of "professional ethics and role of engineers," organised by the state chapter of the Institution of Engineers (India).
- AHMEDABAD: 'Metro man' E Sreedharan today rued that engineering institutes in the country are producing engineers of "very sub-standard" quality while underlining the paradox wherein IITians are heading to foreign countries for higher studies or better employment.
Addressing a gathering in Ahmedabad, Mr Sreedharan appealed to the engineers to get a "different orientation, standard and mission for handling various infrastructure projects for which Prime Minister Narendra Modi has set a target of (Rs.) 5 trillion."
"In our country, engineers are not able to come up very fast. We (engineers) are not taking enough efforts to keep ourselves up-to-date. Engineering colleges or institutes that we have in the country, according to me, are producing very sub-standard quality of engineers," said Mr Sreedharan, a Padma Vibhusan awardee credited for successfully steering challenging projects like Konkan rail and Delhi Metro.
He was speaking at UN Mahida memorial lecture on the topic of "professional ethics and role of engineers," organised by the state chapter of the Institution of Engineers (India).
Left-Linked Trade Union Dares Mamata Banerjee to Foil Tomorrow's Strike
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KOLKATA: Centre of Indian Trade Unions, the Left-affiliated trade union, today accused ruling Trinamool Congress of challenged West Bengal Chief Minister Mamata Banerjee to foil its strike tomorrow
CITU state chief Shyamal Chakraborty said, "Trinamool is planning to let loose violence across the state tomorrow under the garb of Singur Divas. What was the need to organise Singur Divas when a strike has been called on that day? The intention is clear. They want to let loose violence across the state".
Trinamool Congress had yesterday announced to celebrate 'Singur Divas' across the state on September 2 following the Supreme Court's verdict setting aside acquisition of 997.11 acres of land at Singur in 2006 by the then Left Front government for Tata Motors' Nano car manufacturing plant.
Opposing the country-wide strike tomorrow called by central trade unions, Banerjee today said her government will take strongest action against "miscreants" who try to disrupt public life and will ensure compensation for any damage to shops or vehicles.
All central trade unions including INTUC, AITUC, CITU, AIUTUC, TUCC, SEWA, AICCTU, UTUC and LPF had given a one-day national general strike call on September 2 to protest the Modi government's "unilateral labour reforms and anti-worker policies".
CITU state chief Shyamal Chakraborty said, "Trinamool is planning to let loose violence across the state tomorrow under the garb of Singur Divas. What was the need to organise Singur Divas when a strike has been called on that day? The intention is clear. They want to let loose violence across the state".
Opposing the country-wide strike tomorrow called by central trade unions, Banerjee today said her government will take strongest action against "miscreants" who try to disrupt public life and will ensure compensation for any damage to shops or vehicles.
All central trade unions including INTUC, AITUC, CITU, AIUTUC, TUCC, SEWA, AICCTU, UTUC and LPF had given a one-day national general strike call on September 2 to protest the Modi government's "unilateral labour reforms and anti-worker policies".
National Green Tribunal Informed Of Industries Extracting Groundwater
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GHAZIABAD: A large number of industries in Ghaziabad are extracting groundwater through borewells installed in their premises, causing depletion of the water table, the National Green Tribunal was informed today.
The submission that 187 out of 233 industries were extracting groundwater was made in a report of inspection carried out by a team of 16 officers from district administration to check existence of borewells in industrial premises in Ghaziabad.
The report submitted a detailed list of industries operating in Ghaziabad district, including tanneries, breweries, textile units and other water intensive industries.
A bench comprising Justice U D Salvi and Expert Member Ranjan Chatterjee directed Uttar Pradesh State Industrial Development Corporation Limited, state pollution control board and District Magistrates of Ghaziabad and Hapur to respond to a plea alleging indiscriminate extraction of groundwater resulting in depletion of water table.
The tribunal on August 4 had ordered Ghaziabad District Magistrate to appoint a team of officer to inspect 233 industries in Ghaziabad to check if borewells are installed in their premises.
It had earlier issued notices to the Ministry of Environment and Forests, Central Ground Water Authority Uttar Pradesh government, state pollution control board and others in the case.
The submission that 187 out of 233 industries were extracting groundwater was made in a report of inspection carried out by a team of 16 officers from district administration to check existence of borewells in industrial premises in Ghaziabad.
The report submitted a detailed list of industries operating in Ghaziabad district, including tanneries, breweries, textile units and other water intensive industries.
A bench comprising Justice U D Salvi and Expert Member Ranjan Chatterjee directed Uttar Pradesh State Industrial Development Corporation Limited, state pollution control board and District Magistrates of Ghaziabad and Hapur to respond to a plea alleging indiscriminate extraction of groundwater resulting in depletion of water table.
The tribunal on August 4 had ordered Ghaziabad District Magistrate to appoint a team of officer to inspect 233 industries in Ghaziabad to check if borewells are installed in their premises.
It had earlier issued notices to the Ministry of Environment and Forests, Central Ground Water Authority Uttar Pradesh government, state pollution control board and others in the case.
GST Bill Can Now Go For Presidential Assent, Says Arun Jaitley
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Government will seek Presidential assent for the landmark Constitution amendment bill for GST as 16 states have ratified the legislation, Finance Minister Arun Jaitley said today.
With Odisha approving the constitution amendment at a special Assembly session today, 50 per cent of the states have ratified the GST bill.
"The requisite number of states have ratified the GST Constitution Amendment Bill and now it can go for Presidential assent," Mr Jaitley tweeted.
Revenue Secretary Hasmukh Adhia said that the government is ahead of schedule for implementation of GST. "Instead of 30 days kept for this (states' ratification), it is achieved in 23 days," he said in a tweet.
The government plans to roll out the new indirect tax regime from April 1, 2017. GST, the biggest tax reform since Independence, will create uniform market for seamless movement of goods and services with one tax rate.
Since the parliament passed the Constitution Amendment bill on August 8, as many as 16 states, starting with Assam, have ratified the bill. GST being a constitutional amendment requires 50 per cent of state assemblies to ratify it.
The other states which have passed the legislation include Bihar (August 16), Jharkhand (August 17), Chhattisgarh (August 22), Himachal Pradesh (August 22), Gujarat (August 23), Madhya Pradesh and Delhi (August 24), Nagaland (August 24), Maharashtra, Haryana, Sikkim (August 29), Mizoram, Telangana (August 30), Goa (August 31) and Odisha (September 1).
After the Presidential assent, the government will notify the GST Council. Union Finance Minister will head the Council, which will comprise state Finance Ministers.
The GST Council will decide on the tax rate, cess and surcharges which are to be subsumed and also decide on the goods and services which would be exempted from the purview of the new indirect tax regime.
The states and the centre are working overtime and talking to stakeholders to draft the Central GST, State GST and Integrated GST laws, which are to be passed in the winter session of parliament in November.
The CGST and IGST will be drafted on the basis of the model GST law.
The states will draft their respective State GST (SGST) laws with minor variation incorporating state-based exemption. The IGST law would deal with inter-state movement of goods and services.
With Odisha approving the constitution amendment at a special Assembly session today, 50 per cent of the states have ratified the GST bill.
"The requisite number of states have ratified the GST Constitution Amendment Bill and now it can go for Presidential assent," Mr Jaitley tweeted.
Revenue Secretary Hasmukh Adhia said that the government is ahead of schedule for implementation of GST. "Instead of 30 days kept for this (states' ratification), it is achieved in 23 days," he said in a tweet.
The government plans to roll out the new indirect tax regime from April 1, 2017. GST, the biggest tax reform since Independence, will create uniform market for seamless movement of goods and services with one tax rate.
Since the parliament passed the Constitution Amendment bill on August 8, as many as 16 states, starting with Assam, have ratified the bill. GST being a constitutional amendment requires 50 per cent of state assemblies to ratify it.
After the Presidential assent, the government will notify the GST Council. Union Finance Minister will head the Council, which will comprise state Finance Ministers.
The GST Council will decide on the tax rate, cess and surcharges which are to be subsumed and also decide on the goods and services which would be exempted from the purview of the new indirect tax regime.
The states and the centre are working overtime and talking to stakeholders to draft the Central GST, State GST and Integrated GST laws, which are to be passed in the winter session of parliament in November.
The CGST and IGST will be drafted on the basis of the model GST law.
The states will draft their respective State GST (SGST) laws with minor variation incorporating state-based exemption. The IGST law would deal with inter-state movement of goods and services.
Netaji Subhas Chandra Bose Died In Plane Crash: Report
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LONDON: A classified 60-year-old Japanese government document on Netaji Subhas Chandra Bose's death made public today concludes that the legendary freedom fighter died in a plane crash in Taiwan on August 18, 1945, backing the official version.
Bosefiles.info, a UK website set up to document evidence on the circumstances surrounding Netaji's death, today said this is the first time the report titled 'Investigation on the cause of death and other matters of the late Subhas Chandra Bose' has been made public because it remained classified by Japanese authorities and was kept a secret by the Indian government.
"The report was completed in January 1956 and submitted to the Indian embassy in Tokyo, but since it was a classified document, neither side released it," the website says.
The seven-page report in Japanese and a 10-page translation in English reaches the conclusion that Netaji met with an air crash on 18 August, 1945 and died at a Taipei hospital the same evening.
"Immediately after taking off, the airplane in which he (Bose) rode fell to the ground, and he was wounded," the report notes in its 'Outline of the result of the investigation'.
It further records that at "about 3.00 pm he entered the Nanmon Branch of Taipei Army Hospital"; and that at "about 7.00 pm he died".
The findings also state that on "August 22, he was cremated (at the Taipei Municipal crematorium)".
In a more detailed description of the incident, the report says: "After the plane had taken off and risen about 20 metres above the ground, one petal of the three-petaled propeller of the left wing was suddenly broken, and the engine fell off.
"The airplane, subsequently unbalanced, crashed into ballast piles, beside the strip of the airport" and "was wrapped in flames in a moment.
Mr Bose, wrapped up in flames, got off the plane; Adjutant Rahmin (Colonel Habibur Rehman) and other passengers exerted themselves to take his clothes off... his whole body was seriously wounded by burns."
The Japanese government report on the death of Netaji, who was 48 years old then, backs the Shah Nawaz Khan-led inquiry instituted by the then Indian Prime Minister Jawahar Lal Nehru, which had investigated the matter later in 1956, according to a press release issued by the website.
Bosefiles.info, a UK website set up to document evidence on the circumstances surrounding Netaji's death, today said this is the first time the report titled 'Investigation on the cause of death and other matters of the late Subhas Chandra Bose' has been made public because it remained classified by Japanese authorities and was kept a secret by the Indian government.
"The report was completed in January 1956 and submitted to the Indian embassy in Tokyo, but since it was a classified document, neither side released it," the website says.
The seven-page report in Japanese and a 10-page translation in English reaches the conclusion that Netaji met with an air crash on 18 August, 1945 and died at a Taipei hospital the same evening.
"Immediately after taking off, the airplane in which he (Bose) rode fell to the ground, and he was wounded," the report notes in its 'Outline of the result of the investigation'.
It further records that at "about 3.00 pm he entered the Nanmon Branch of Taipei Army Hospital"; and that at "about 7.00 pm he died".
The findings also state that on "August 22, he was cremated (at the Taipei Municipal crematorium)".
In a more detailed description of the incident, the report says: "After the plane had taken off and risen about 20 metres above the ground, one petal of the three-petaled propeller of the left wing was suddenly broken, and the engine fell off.
"The airplane, subsequently unbalanced, crashed into ballast piles, beside the strip of the airport" and "was wrapped in flames in a moment.
Mr Bose, wrapped up in flames, got off the plane; Adjutant Rahmin (Colonel Habibur Rehman) and other passengers exerted themselves to take his clothes off... his whole body was seriously wounded by burns."
The Japanese government report on the death of Netaji, who was 48 years old then, backs the Shah Nawaz Khan-led inquiry instituted by the then Indian Prime Minister Jawahar Lal Nehru, which had investigated the matter later in 1956, according to a press release issued by the website.
Business Affairs
Reliance Jio is not exactly aimed at Indian data users
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With the launch of Jio telecom services after much delay, the market is expected to see a tariff war between incumbent operators such as Airtel, Vodafone and Idea. At the 42nd annual general meeting of conglomerate Reliance Industries, its Chairman and Managing Director Mukesh Ambani announced that Jio has the world's cheapest data plan, which effectively costs Rs 50 for one GB (rates go down further with higher data plans). Subsequently, Ambani unveiled tariff plans that range from Rs 149 to Rs 4,999 for 28 days.
Unless there are more tariff plans that the company launches at a later date, Jio's is not exactly aimed at data users. Take a look at the monthly data plans. The cheapest monthly plan - for Rs 149 - has free unlimited voice, 100 SMSes, and just 0.3 GB data (about 300 MB). The next plan is for Rs 499 which has free unlimited voice, unlimited free SMSes and 4 GB data. There are five other plans, ranging from Rs 999 to Rs 4,999, for users with higher data requirements.
So, there are no plans between 300 MB and 4 GB. As per Ericsson Mobility Report India edition, the data traffic per smartphone user stood at 1.4 GB per month in 2015. The difference between 300 MB and 4 GB is vast, and that's where the bulk of the existing users lie. Even for new consumers, 300 MB is going to be less than their needs whereas the 4 GB plan (which costs Rs 499 plus taxes) will be expensive.
In addition, the lowest priced data plan - Rs 149 - is still higher than the average revenue per user (ARPU) rates of Rs 127. That means an average telecom user spent just Rs 127 on telecom services per month during three months ending March 2016. By making voice calls free, Jio will be able to attract a bulk of low-value users as they will spend a tad more per month for unlimited voice calls, but for data users, the Rs 149 plan seems unattractive.
Now, let's look at the effective rate of Rs 50 per 1 GB. During his speech, Ambani compared his Rs 50-1GB plan with telcos who he claimed charge Rs 250 for 1 GB. A back-of-the-envelope calculation shows that none of the plans that are launched today are effectively priced at Rs 50 per 1 GB. Two plans, that's 60 GB plan for Rs 3,999 and 75 GB plan for Rs 4,999, are effectively priced at Rs 66.65 per 1 GB. These calculations are exclusive of unlimited 4G access at night and access to its Wi-Fi hotspots that are bundled in six out of seven plans.
But here's the catch. In order to woo customers, the company has kept everything - voice, data, and access to its apps - free for a period of 118 days ending December 31, 2016. During this period, the company will try to build a strong subscriber base, including converting some existing users of Airtel, Vodafone and Idea into Jio users. But as soon as the standard tariff plans apply, it would be difficult for Jio to make these consumers pay after December 31.
Unless there are more tariff plans that the company launches at a later date, Jio's is not exactly aimed at data users. Take a look at the monthly data plans. The cheapest monthly plan - for Rs 149 - has free unlimited voice, 100 SMSes, and just 0.3 GB data (about 300 MB). The next plan is for Rs 499 which has free unlimited voice, unlimited free SMSes and 4 GB data. There are five other plans, ranging from Rs 999 to Rs 4,999, for users with higher data requirements.
So, there are no plans between 300 MB and 4 GB. As per Ericsson Mobility Report India edition, the data traffic per smartphone user stood at 1.4 GB per month in 2015. The difference between 300 MB and 4 GB is vast, and that's where the bulk of the existing users lie. Even for new consumers, 300 MB is going to be less than their needs whereas the 4 GB plan (which costs Rs 499 plus taxes) will be expensive.
In addition, the lowest priced data plan - Rs 149 - is still higher than the average revenue per user (ARPU) rates of Rs 127. That means an average telecom user spent just Rs 127 on telecom services per month during three months ending March 2016. By making voice calls free, Jio will be able to attract a bulk of low-value users as they will spend a tad more per month for unlimited voice calls, but for data users, the Rs 149 plan seems unattractive.
Now, let's look at the effective rate of Rs 50 per 1 GB. During his speech, Ambani compared his Rs 50-1GB plan with telcos who he claimed charge Rs 250 for 1 GB. A back-of-the-envelope calculation shows that none of the plans that are launched today are effectively priced at Rs 50 per 1 GB. Two plans, that's 60 GB plan for Rs 3,999 and 75 GB plan for Rs 4,999, are effectively priced at Rs 66.65 per 1 GB. These calculations are exclusive of unlimited 4G access at night and access to its Wi-Fi hotspots that are bundled in six out of seven plans.
But here's the catch. In order to woo customers, the company has kept everything - voice, data, and access to its apps - free for a period of 118 days ending December 31, 2016. During this period, the company will try to build a strong subscriber base, including converting some existing users of Airtel, Vodafone and Idea into Jio users. But as soon as the standard tariff plans apply, it would be difficult for Jio to make these consumers pay after December 31.
Reliance Jio: Mukesh Ambani unleashes price and speed war in telecom
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Flexing the financial muscle of Reliance Industries (RIL), the largest private company in India by revenues (Rs 2.3 lakh crore), Chairman Mukesh Ambani announced the launch offer of Reliance Jio - free voice, zero roaming charges, and Rs 50 for a one-GB data plan - at the company's 42nd AGM.
Jio will be launched on September 5.
Also, Jio will offer unlimited LTE data at night. There will be 10 4G LTE data plans to choose. The peak download speed will be 135 mpbs on the Jio network. Airtel has started offering the same speed in Mumbai and Kerala circles. Roaming charges for Jio will be 'zero' within India. Under a special discount scheme, students will get 25 per cent more data. Jio's apps bouquet will be available for free till December 31, 2017.
The data tariff plans will start from Rs 149 for 0.3 GB to Rs 4,999 for 75 GB. All data plans, except for the 0.3 GB plan.
"These are the simplest and the most attractive tariff plans in the market, with the lowest data rates anywhere in the world," Ambani said.
Jio will launch 4G-enabled smartphones at Rs 2,999 under its LYF brand. Jio network is 5G and 6G ready, said Ambani.
"Jio will put an end to voice call charges in India. No Jio customer will ever have to pay for voice calls again," Ambani said during the AGM.
India is 155th in the world for mobile broadband access; Jio will take the country to the top 10. Jio has created an all-IP network. ''There is only one language spoken on the Jio network. We will have a single digital mother tongue. The all-IP design also makes Jio's network the most expansive and future-proof network in the country'' said Ambani. ''Jio is a data strong network built for the Internet from the ground up. By March 2017, we will cover 90 per cent of India's population. It is the first mobile network that is only 4G LTE.''
The onboarding process will now be 100 per cent digital, using Aadhaar-based e-KYC, starting today from Mumbai and Delhi. With instant e-KYC, customers will be able to walk out with an operational connection within 15 minutes.
Flexing the financial muscle of Reliance Industries (RIL), the largest private company in India by revenues (Rs 2.3 lakh crore), Chairman Mukesh Ambani announced the launch offer of Reliance Jio - free voice, zero roaming charges, and Rs 50 for a one-GB data plan - at the company's 42nd AGM.
Jio will be launched on September 5.
Also, Jio will offer unlimited LTE data at night. There will be 10 4G LTE data plans to choose. The peak download speed will be 135 mpbs on the Jio network. Airtel has started offering the same speed in Mumbai and Kerala circles. Roaming charges for Jio will be 'zero' within India. Under a special discount scheme, students will get 25 per cent more data. Jio's apps bouquet will be available for free till December 31, 2017.
The data tariff plans will start from Rs 149 for 0.3 GB to Rs 4,999 for 75 GB. All data plans, except for the 0.3 GB plan.
"These are the simplest and the most attractive tariff plans in the market, with the lowest data rates anywhere in the world," Ambani said.
Jio will launch 4G-enabled smartphones at Rs 2,999 under its LYF brand. Jio network is 5G and 6G ready, said Ambani.
"Jio will put an end to voice call charges in India. No Jio customer will ever have to pay for voice calls again," Ambani said during the AGM.
India is 155th in the world for mobile broadband access; Jio will take the country to the top 10. Jio has created an all-IP network. ''There is only one language spoken on the Jio network. We will have a single digital mother tongue. The all-IP design also makes Jio's network the most expansive and future-proof network in the country'' said Ambani. ''Jio is a data strong network built for the Internet from the ground up. By March 2017, we will cover 90 per cent of India's population. It is the first mobile network that is only 4G LTE.''
The onboarding process will now be 100 per cent digital, using Aadhaar-based e-KYC, starting today from Mumbai and Delhi. With instant e-KYC, customers will be able to walk out with an operational connection within 15 minutes.
Grim GDP data hits PM Narendra Modi's 250 million job plan
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India's economic growth hit a 15-month low between April and June, putting Prime Minister Narendra Modi's target further out of reach and making it tougher for him to create millions of new jobs for a burgeoning workforce.
While 7.1 percent GDP expansion was well below economists' predictions and the 7.9 percent growth registered in the preceding quarter, it was still faster than figures reported by China and the Philippines.
But the title of world's fastest-growing large economy does not mask the challenge Modi faces in delivering on his promise of creating 250 million jobs over the next decade.
The government is targeting average growth of around 8 per cent, which economists say is the bare minimum needed to provide jobs to around one million people who enter the workforce every month.
Since taking office in 2014, Modi has taken a raft of measures to attract foreign investors and revive listless domestic investment. But those initiatives have not yet succeeded in convincing cautious companies to commit to fresh capital spending.
Investment as a proportion of GDP fell by about 3 percentage points in the June quarter from the corresponding period a year ago. Worryingly, private consumption that had been underpinning economic growth thus far weakened.
Annual growth in private spending slowed to 6.7 per cent in the latest quarter from a 7 per cent increase in the same period last year. The slowdown more than offset a 19 per cent annual surge in public spending.
"Growth continues to be driven by government spending..., which is a worry," said Abhishek Upadhyay, an economist at ICICI Securities Primary Dealership Ltd in Mumbai.
Dilemma
The reading on private consumption may complicate the central bank's decision on whether to resume interest rate cuts or stay put.
For some economists, Wednesday's data strengthen the case for a rate cut in the October-December quarter.
But with consumer price inflation running at 6.07 per cent, above the Reserve Bank of India's (RBI) target band, the incoming governor, Urjit Patel, has a balancing act to perform.
A hefty hike in wages for nearly 10 million central government employees and pensioners is widely expected to fuel spending, countering some of the caution among urban consumers caused by low wage growth.
"Given that the RBI faces a tough challenge in meeting its inflation targets, we think that it will keep the repo rate on hold," said Shilan Shah, economist at Capital Economics consultancy in Singapore.
The new RBI governor will also have to decide whether to take the GDP figure at face value.
It has been more than a year since India shifted to a new method of measuring economic output, which captures value addition rather than production volumes, and economists are still struggling to square GDP figures with reality on the ground.
For example, other indicators point to persistent weakness in manufacturing, but GDP data show a robust 9.1 growth in the sector.
Monsoon Relief
Still, few would dispute that India remains a bright spot in a gloomy global environment, which explains why foreign investors are buying shares in Indian firms. The benchmark National Stock Exchange index has added 8 percent this year.
Looking ahead, bountiful rains in the June-September monsoon season should provide some support to growth and relief to India's 263 million farmers as they recover from two consecutive drought years.
That should help lift farm output, which grew 1.8 percent from a year earlier in the June quarter.
Normal rainfall this summer would boost rural consumption by $80 billion in the year to end-March 2017, according to Citibank's estimates.
"We hope that in the second half, consumption will support growth," said Shubhada Rao, group president and chief economist at Yes Bank.
India's economic growth hit a 15-month low between April and June, putting Prime Minister Narendra Modi's target further out of reach and making it tougher for him to create millions of new jobs for a burgeoning workforce.
While 7.1 percent GDP expansion was well below economists' predictions and the 7.9 percent growth registered in the preceding quarter, it was still faster than figures reported by China and the Philippines.
But the title of world's fastest-growing large economy does not mask the challenge Modi faces in delivering on his promise of creating 250 million jobs over the next decade.
The government is targeting average growth of around 8 per cent, which economists say is the bare minimum needed to provide jobs to around one million people who enter the workforce every month.
Since taking office in 2014, Modi has taken a raft of measures to attract foreign investors and revive listless domestic investment. But those initiatives have not yet succeeded in convincing cautious companies to commit to fresh capital spending.
Investment as a proportion of GDP fell by about 3 percentage points in the June quarter from the corresponding period a year ago. Worryingly, private consumption that had been underpinning economic growth thus far weakened.
Annual growth in private spending slowed to 6.7 per cent in the latest quarter from a 7 per cent increase in the same period last year. The slowdown more than offset a 19 per cent annual surge in public spending.
"Growth continues to be driven by government spending..., which is a worry," said Abhishek Upadhyay, an economist at ICICI Securities Primary Dealership Ltd in Mumbai.
Dilemma
Dilemma
The reading on private consumption may complicate the central bank's decision on whether to resume interest rate cuts or stay put.
For some economists, Wednesday's data strengthen the case for a rate cut in the October-December quarter.
But with consumer price inflation running at 6.07 per cent, above the Reserve Bank of India's (RBI) target band, the incoming governor, Urjit Patel, has a balancing act to perform.
A hefty hike in wages for nearly 10 million central government employees and pensioners is widely expected to fuel spending, countering some of the caution among urban consumers caused by low wage growth.
"Given that the RBI faces a tough challenge in meeting its inflation targets, we think that it will keep the repo rate on hold," said Shilan Shah, economist at Capital Economics consultancy in Singapore.
The new RBI governor will also have to decide whether to take the GDP figure at face value.
It has been more than a year since India shifted to a new method of measuring economic output, which captures value addition rather than production volumes, and economists are still struggling to square GDP figures with reality on the ground.
For example, other indicators point to persistent weakness in manufacturing, but GDP data show a robust 9.1 growth in the sector.
Monsoon Relief
Monsoon Relief
Still, few would dispute that India remains a bright spot in a gloomy global environment, which explains why foreign investors are buying shares in Indian firms. The benchmark National Stock Exchange index has added 8 percent this year.
Looking ahead, bountiful rains in the June-September monsoon season should provide some support to growth and relief to India's 263 million farmers as they recover from two consecutive drought years.
That should help lift farm output, which grew 1.8 percent from a year earlier in the June quarter.
Normal rainfall this summer would boost rural consumption by $80 billion in the year to end-March 2017, according to Citibank's estimates.
"We hope that in the second half, consumption will support growth," said Shubhada Rao, group president and chief economist at Yes Bank.
Airtel, Idea may have to change business model due to Reliance Jio
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The launch of Reliance Jio will force big telecos Bharati Airtel and Idea Cellular to bring about major changes in their business model, according to experts.
Reliance Industries (RIL) Chairman Mukesh Ambani announced the launch offer of Reliance Jio today at the company's 42nd annual general meeting.
He announced free voice, zero roaming charges, and Rs 50 for a one-GB data plan as some of the top features of Reliance Jio.
"Jio will never charge for voice calls across India and messages," Ambani said while addressing RIL's annual general meeting in Mumbai.
Since 70 per cent of the revenues of incumbents in telecom come from voice calls, the free voice move is likely to be a cause of big concern for Jio's competitors.
Today, stocks of these telecos fell by 8 % to 9% after Ambani unleashed the speed and data war. Airtel, India's largest operator with more than 230 million subscribers, saw its stock fall to Rs 302 at around 12 PM after the announcement.
With the shockwaves already visible, experts believe that telecos are likely to make changes in the way they operate due to the arrival of Reliance Jio.
"Other telcos will be forced to change their business model, revenue model and the network in use," said Prayesh Jain, AVP Research IIFL.
But doubts remain as to how Reliance will be able to sustain such aggressive rates.
"It would be interesting to see that how Jio is going to recover its investment after quoting such aggressive rates. Market is quite eager to see this," Jain added.
Meanwhile, Reliance Industries (RIL) shares went down 2.85% to Rs 1029.8. Interestingly, Network18, a Reliance company, also saw its share price fall by 3.59% to Rs 44.35.
The launch of Reliance Jio will force big telecos Bharati Airtel and Idea Cellular to bring about major changes in their business model, according to experts.
Reliance Industries (RIL) Chairman Mukesh Ambani announced the launch offer of Reliance Jio today at the company's 42nd annual general meeting.
He announced free voice, zero roaming charges, and Rs 50 for a one-GB data plan as some of the top features of Reliance Jio.
"Jio will never charge for voice calls across India and messages," Ambani said while addressing RIL's annual general meeting in Mumbai.
Since 70 per cent of the revenues of incumbents in telecom come from voice calls, the free voice move is likely to be a cause of big concern for Jio's competitors.
Today, stocks of these telecos fell by 8 % to 9% after Ambani unleashed the speed and data war. Airtel, India's largest operator with more than 230 million subscribers, saw its stock fall to Rs 302 at around 12 PM after the announcement.
With the shockwaves already visible, experts believe that telecos are likely to make changes in the way they operate due to the arrival of Reliance Jio.
"Other telcos will be forced to change their business model, revenue model and the network in use," said Prayesh Jain, AVP Research IIFL.
But doubts remain as to how Reliance will be able to sustain such aggressive rates.
"It would be interesting to see that how Jio is going to recover its investment after quoting such aggressive rates. Market is quite eager to see this," Jain added.
Meanwhile, Reliance Industries (RIL) shares went down 2.85% to Rs 1029.8. Interestingly, Network18, a Reliance company, also saw its share price fall by 3.59% to Rs 44.35.
Govt to impose sugar stock limit on mills to check hoarding
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The government will impose a limit on the amount of sugar that mills can hold at the end of September and October, the food minister said on Thursday, as the government tries to keep prices under check ahead of key festivals when demand rises.
India, the world's biggest sugar consumer, had made a similar move in April as two straight droughts in 2014 and 2015 reduced output while demand stayed high.
"It has been decided to impose stock limit on sugar stock to be held by sugar mills at the end of September 2016 and October 2016," Ram Vilas Paswan tweeted.
The limit at the end of September would be 37 per cent of the total sugar that mills had in the same period a year ago, while for October it would be 24 per cent.
The government will impose a limit on the amount of sugar that mills can hold at the end of September and October, the food minister said on Thursday, as the government tries to keep prices under check ahead of key festivals when demand rises.
India, the world's biggest sugar consumer, had made a similar move in April as two straight droughts in 2014 and 2015 reduced output while demand stayed high.
"It has been decided to impose stock limit on sugar stock to be held by sugar mills at the end of September 2016 and October 2016," Ram Vilas Paswan tweeted.
The limit at the end of September would be 37 per cent of the total sugar that mills had in the same period a year ago, while for October it would be 24 per cent.
General Awareness
Union Minister Sadanandha Gowda inaugurated the 8th meet of SAARCSTAT
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India hosted the three-day(August 29-31,2016) Eighth meeting of SAARCSTAT and delegates from SAARC Member States and other international organizations viz., FAO, PARIS 21, and ADB attended the Meet.
The theme of this Meeting is “Trade Statistics – Merchandise & Services”.
Venue: New Delhi
About SAARCSTAT :
The South Asian region is richly endowed in terms of human resources and has to its credit several internationally renowned statisticians. P.C. Mahalanobis, the founder of Indian Statistical Institute was one of them who visualized, in early 40’s, Statistics as the “Key Technology of the era”.
- Over decades, Statistics has been used as the technology on how to measure various social and economic indicators in order to understand our Society better. This will be clear from PARIS21 document which quoted “IF YOU CANNOT MEASURE YOU CANNOT MANAGE”.
- It is now imperative that the Statistics has to play an important role for closercooperation within the SAARC region be it analysis of Intra-regional Trade Statistics according to common denomination and standardized Trade Classification or various socio-economic statistical parameters including poverty profile of the region.
- Thus, for justified reason, the proposal for establishing cooperation in Statistics received enthusiastic support of the SAARC Member States which got the approval at the Thirtieth Session of the Standing Committee of SAARC (Islamabad, 18-19 July 2004).
- The Twelfth Meeting of the Committee on Economic Cooperation (Islamabad, 20-21 November 2004) welcomed the offer of India to host the First Meeting of the Heads of Statistical Organizations of SAARC Member States to examine the possibility of initiating cooperation in the field of statistics with a view to finalizing standard formats for exchange of statistical data in various economic and social fields.
- Accordingly, in order to pursue and concretize cooperation in the field of statistics, the Heads of SAARC Statistical Organisations in their Meeting at Kolkata, India on 26-27 May 2005 formed a permanent “SAARC Group on Statistics”, namely, SAARCSTAT; SAARCSTAT is now a reality and this could be termed as milestone development for this region.
- In the First meeting of SAARCSTAT at Kolkata, following Technical Subgroups were formed and the four countries offered to work as coordinators of Technical Subgroups:
S. No. Technical Sub-Group on Coordinator 1. SAARC Statistical Yearbook Bangladesh 2. Informal Sector India 3. Capacity Building India 4. SAARCSTAT Action Plan India 5. SAARCSTAT Website Pakistan 6. Classification Pakistan 7. SNA93 Sri Lanka
8th Meet :
i.The Statistics Ministry in India attaches considerable importance to coverage and quality aspects of statistics released in the country and are constantly working to achieve international standards.
ii.This was stated by the Minister for Statistics and Programme Implementation, Shri. D.V. Sadananda Gowda, while inaugurating the 8th Meeting of Heads of SAARC Statistical Organizations (SAARCSTAT).
iii.He also stated that Accurate, reliable and timely information plays an important role for effective decision making in almost every aspect of human endeavor. It is an essential ingredient for decisions makers and Policy planners.
iv.Reducing Asymmetry in Trade data amongst SAARC countries is one of the topics for discussion in this Meeting. Reducing asymmetry in bilateral trade data is an issue which requires serious attention from the data compilers.
v.Although India has taken up the issues of data reconciliation with a few countries likeChina, Brazil, Vietnam, Philippines, South Korea, Japan, South Africa, Sri Lanka but much more needs to be done to bring down the asymmetry to an acceptable level especially in the SAARC Region.
It is essential to put into
- Operation simplified and transparent rules of origin;
- Implementation of trade facilitation measures;
- Harmonization of standards relating to Technical Barriers to Trade (TBT) and
- Sanitary and phyto-sanitary measures;
- Harmonized, streamlined and simplified Custom procedures;
- Elimination of non-tariff and para-tariff barriers;
It is noted that the policy initiatives for comparable statistics and smooth & efficient transit and transport facilities, which will provide an opportunity to the SAARC Members countries to review the implementation of the recommendations made in International Merchandise Trade Statistics (IMTS) 2010 and Manual on Statistics of International Trade in Services (MSITS) 2010.
India hosted the three-day(August 29-31,2016) Eighth meeting of SAARCSTAT and delegates from SAARC Member States and other international organizations viz., FAO, PARIS 21, and ADB attended the Meet.The theme of this Meeting is “Trade Statistics – Merchandise & Services”.Venue: New DelhiAbout SAARCSTAT :The South Asian region is richly endowed in terms of human resources and has to its credit several internationally renowned statisticians. P.C. Mahalanobis, the founder of Indian Statistical Institute was one of them who visualized, in early 40’s, Statistics as the “Key Technology of the era”.- Over decades, Statistics has been used as the technology on how to measure various social and economic indicators in order to understand our Society better. This will be clear from PARIS21 document which quoted “IF YOU CANNOT MEASURE YOU CANNOT MANAGE”.
- It is now imperative that the Statistics has to play an important role for closercooperation within the SAARC region be it analysis of Intra-regional Trade Statistics according to common denomination and standardized Trade Classification or various socio-economic statistical parameters including poverty profile of the region.
- Thus, for justified reason, the proposal for establishing cooperation in Statistics received enthusiastic support of the SAARC Member States which got the approval at the Thirtieth Session of the Standing Committee of SAARC (Islamabad, 18-19 July 2004).
- The Twelfth Meeting of the Committee on Economic Cooperation (Islamabad, 20-21 November 2004) welcomed the offer of India to host the First Meeting of the Heads of Statistical Organizations of SAARC Member States to examine the possibility of initiating cooperation in the field of statistics with a view to finalizing standard formats for exchange of statistical data in various economic and social fields.
- Accordingly, in order to pursue and concretize cooperation in the field of statistics, the Heads of SAARC Statistical Organisations in their Meeting at Kolkata, India on 26-27 May 2005 formed a permanent “SAARC Group on Statistics”, namely, SAARCSTAT; SAARCSTAT is now a reality and this could be termed as milestone development for this region.
- In the First meeting of SAARCSTAT at Kolkata, following Technical Subgroups were formed and the four countries offered to work as coordinators of Technical Subgroups:
S. No. Technical Sub-Group on Coordinator 1. SAARC Statistical Yearbook Bangladesh 2. Informal Sector India 3. Capacity Building India 4. SAARCSTAT Action Plan India 5. SAARCSTAT Website Pakistan 6. Classification Pakistan 7. SNA93 Sri Lanka 8th Meet :i.The Statistics Ministry in India attaches considerable importance to coverage and quality aspects of statistics released in the country and are constantly working to achieve international standards.ii.This was stated by the Minister for Statistics and Programme Implementation, Shri. D.V. Sadananda Gowda, while inaugurating the 8th Meeting of Heads of SAARC Statistical Organizations (SAARCSTAT).iii.He also stated that Accurate, reliable and timely information plays an important role for effective decision making in almost every aspect of human endeavor. It is an essential ingredient for decisions makers and Policy planners.iv.Reducing Asymmetry in Trade data amongst SAARC countries is one of the topics for discussion in this Meeting. Reducing asymmetry in bilateral trade data is an issue which requires serious attention from the data compilers.v.Although India has taken up the issues of data reconciliation with a few countries likeChina, Brazil, Vietnam, Philippines, South Korea, Japan, South Africa, Sri Lanka but much more needs to be done to bring down the asymmetry to an acceptable level especially in the SAARC Region.It is essential to put into- Operation simplified and transparent rules of origin;
- Implementation of trade facilitation measures;
- Harmonization of standards relating to Technical Barriers to Trade (TBT) and
- Sanitary and phyto-sanitary measures;
- Harmonized, streamlined and simplified Custom procedures;
- Elimination of non-tariff and para-tariff barriers;
It is noted that the policy initiatives for comparable statistics and smooth & efficient transit and transport facilities, which will provide an opportunity to the SAARC Members countries to review the implementation of the recommendations made in International Merchandise Trade Statistics (IMTS) 2010 and Manual on Statistics of International Trade in Services (MSITS) 2010.
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