Economic Survey drives home the message: It is time for big bang reforms

February 27, 2015

New Delhi, Feb 27: Pitching for 'Big Bang' reforms, the pre-budget Economic Survey on Friday called for improving business environment by making regulation and taxes less onerous to help push growth to 8.1-8.5 per cent next fiscal, and to double digits in the coming years.

Economic Survey"India has reached a sweet spot and there is scope for Big Bang reforms now," said the Survey on the eve of the new government's first full-year Budget, to be presented by Finance Minister Arun Jaitley. A clear political mandate for reforms and a benign external environment, it said, "is now expected to propel India to double digit growth trajectory". The BJP-led NDA government came to power in May last year wining a clear mandate.

Other areas highlighted by the Survey include reforming labour laws, building infrastructure and enabling connectivity to reduce cost of doing business in the country.

"In the short run, growth will receive a boost from lower oil prices, from likely monetary policy easing facilitated by lower inflation and lower inflationary expectations, and forecast of a normal monsoon," the Survey said. It also indicated that the growth during 2014-15 may touch 8 per cent on better farm output. The CSO had projected growth at 7.4 per cent for current fiscal. "Several reforms have been undertaken and more are on the anvil. The introduction of the GST and expanding direct benefit transfers can be game-changers," it added.

The major reforms undertaken by the government include deregulation of diesel prices, direct transfer of cooking gas subsidy, hiking FDI cap in defence and insurance, Ordinance on Coal. Stating that macro economic situation in the country has improved significantly in the current year, the Survey raised concerns over growth pattern in exports, construction and mining activities. Investment activity, which is slowly picking up, needs to be grounded on a stronger footing, it said. India must adhere to the medium term fiscal deficit target of 3 per cent of the GDP, it said, adding "this will provide fiscal space to insure against future shocks and also to move closer to the fiscal performance of its emerging peers.

The Indian economy, the Survey said, appears to have gone past the slowdown, persistent inflation, elevated fiscal deficit, slackening domestic demand, external account imbalances and oscillating value of rupee. Saying that inflation has been on a downward trajectory between April-December, it projected the consumer price inflation at 5-5.5 per cent for 2015-16.

The declining inflation and a significant improvement in current account deficit (CAD), which is expected to come down to 1 per cent of GDP in 2015-16, have made India an attractive investment destination, it said.

Private investments must remain the primary engine of long run growth, the Survey emphasised, adding that "public investment, especially in the Railways, will have to play an important role at least in the interim, to revive growth and to deepen fiscal connectivity".

In a separate chapter on 14th Finance Commission, the Survey quoted both first Prime Minister Jawaharlal Nehru and current PM Narendra Modi, to emphasise that adoption of FFC recommendation and creation of NITI Aayog would promote government's cooperative and competitive Federalism.

Recalling the golden rule of fiscal policy, it said the government should borrow to finance investment and not to fund current expenditure. It urged the government to bring down fiscal deficit to 3 per cent of GDP.

Referring to subsidies, it said they were estimated to be Rs 3.78 lakh crore or 4.24 per cent of the GDP. "They (Subsidies) may not be the government's best weapon for fighting poverty," it said, adding that often rich households benefit more from subsidies than a poor one.

The Survey said the adoption of JAM number Trinity -- Jan Dhan Yojana, Aadhaar and Mobile -- would help in delivering subsidies to the poor in a targeted and less distorted manner. Dwelling on the issue of manufacturing versus services, it said, "both are equally important in the Indian context...

Similarly 'Skilling India' is no less important and deserves an equal importance as the other important goal of Make In India". It, however, expressed satisfaction that the number of stalled projects have plateaued and called for revitalising public private partnership model of investment to boost investment.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
Agencies
July 6,2020

New Delhi, Jul 6: The Indian Academy of Sciences, a Bengaluru-based body of scientists, has said the Indian Council for Medical Research's (ICMR) target to launch a coronavirus vaccine by August 15 is "unfeasible" and "unrealistic".

The IASc said while there is an unquestioned urgent need, vaccine development for use in humans requires scientifically executed clinical trials in a phased manner.

While administrative approvals can be expedited, the "scientific processes of experimentation and data collection have a natural time span that cannot be hastened without compromising standards of scientific rigour", the IASc said in a statement.

In its statement, the IASc referred to the ICMR's letter which states that "it is envisaged to launch the vaccine for public health use latest by 15th August 2020 after completion of all clinical trials".

The ICMR and Bharat Biotech India Limited, a private pharmaceutical company, are jointly developing the vaccine against the novel coronavirus -- SARS-CoV-2.

The IASc welcomes the exciting development of a candidate vaccine and wishes that the vaccine is quickly made available for public use, the statement said.

"However, as a body of scientists including many who are engaged in vaccine development IASc strongly believes that the announced timeline is unfeasible. This timeline has raised unrealistic hope and expectations in the minds of our citizens," it said.

Aiming to launch an indigenous COVID-19 vaccine by August 15, the ICMR had written to select medical institutions and hospitals to fast-track clinical trial approvals for the vaccine candidate, COVAXIN.

Experts have also cautioned against rushing the process for developing a COVID-19 vaccine and stressed that it is not in accordance with the globally accepted norms to fast-track vaccine development for diseases of pandemic potential.

The IASc said trials for a vaccine involve evaluation of safety (Phase 1 trial), efficacy and side effects at different dose levels (Phase 2 trial), and confirmation of safety and efficacy in thousands of healthy people (Phase 3 trial) before its release for public use.

Clinical trials for a candidate vaccine require participation of healthy human volunteers. Therefore, many ethical and regulatory approvals need to be obtained prior to the initiation of the trials, it added.

The IASc said the immune responses usually take several weeks to develop and relevant data should not be collected earlier.

"Moreover, data collected in one phase must be adequately analysed before the next phase can be initiated. If the data of any phase are unacceptable then the clinical trial is required to be immediately aborted," it said.

For example, if the data collected from Phase 1 of the clinical trial show that the vaccine is not adequately safe, then Phase 2 cannot be initiated and the candidate vaccine must be discarded.

For these reasons, the Indian Academy of Sciences believes that the announced timeline is "unreasonable and without precedent", the statement said.

"The Academy strongly believes that any hasty solution that may compromise rigorous scientific processes and standards will likely have long-term adverse impacts of unforeseen magnitude on citizens of India," it said.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
February 29,2020

Kochi, Feb 29: When Major Abdul Rahim, a soldier in the Afghan army, died in a bomb blast in Kabul on February 19, a tear was shed for him in far away Ernakulam district of Kerala.

The major had received a transplant of hands from Eloor native T G Joseph back in 2015, and the latter’s family had grown attached to the Afghan soldier.

Maj. Abdul Rahim, a bomb disposal expert, had lost his hands in an explosion in 2012. For three years thereafter, he struggled with his handicap. Then, when 54-year-old Joseph passed away in a road accident, it was decided to give his hands to the Afghan major.

The transplant procedure was successfully performed by a team of doctors led by Dr. Subrahmania Iyer at the Amrita Institute of Medical Sciences in Kochi.

After the transplant and an intensive spell of physiotherapy, Abdul Rahim could regain a considerable part of his hands’ functions. He rejoined the army and returned to defuse bombs in his war-torn country.

In gratitude, Major Abdul Rahim would visit Kochi every year to meet Joseph’s family. 

“We were shocked to hear of the demise of Major Abdul Rahim. Though Joseph left us, a part of him lived on. Abdul Rahim was a living memorial for us. Whenever he came to the Amrita institute for a consultation, we used to visit him,” Joseph’s wife was quoted as saying by Mathrubhoomi daily.

Major Abdul Rahim struck up a good friendship with his predecessor, in a way of speaking: the first person to have had a successful hand transplant at the Amrita Institute of Medical Sciences. T R Manu became a close friend of the Afghan solider and kept regularly in touch.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
March 2,2020

Mathura, Mar 2: Union Minister of state Sadhvi Niranjan Jyoti on Sunday said after the Citizenship (Amendment) Act (CAA), the Centre might bring a population control law.

Jyoti claimed that she has already spoken to Prime Minister Narendra Modi in this regard.

She said she believes that this issue is under the prime minister's consideration and he himself has discussed the importance of bringing this law.

Jyoti arrived here on Sunday to attend a tribute meeting held at Swami Vamdev Jyotirmath in Chaitanya Vihar. Unnao MP Sakshi Maharaj was also present at the event.

"There was a time when abrogation of Article 370 in Jammu and Kashmir was impossible. It was feared that if such thing happens, there will be bloodbath. No one will be hold the national flag in Kashmir. But this government can bring any law in favour of the nation," Jyoti said.

"Now, everyone believes that if Article 370 can be removed...Prime Minister Narendra Modi can bring any law which is important for the country," she added.

Comments

expat
 - 
Monday, 2 Mar 2020

already people are childless. struggling for IVF treatment. no need of population control. it is automatically getting control byu nature.

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.