Obama not properly informed, says Government on reforms remark; Opposition slams him

July 16, 2012

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New Delhi, July 16: India has dismissed Barack Obama's statement that the investment climate in India is "deteriorating," suggesting that the US President is "not properly informed" about the country's strong economic fundamentals. And that certain "international lobbies" are attempting such misinformation. Mr Obama's weekend statement has raised the hackles of not just the government, but also opposition parties of every hue.

The US President had said on Sunday, "In too many sectors, such as retail, India limits or prohibits the foreign investment that is necessary to create jobs in both our countries, and which is necessary for India to continue to grow... there appears to be a growing consensus in India that the time may be right for another wave of economic reforms to make India more competitive in the global economy."

Corporate Affairs Minister M Veerappa Moily made a strong rejoinder saying, "Certain international lobbies like Vodafone are spreading this kind of a story and Obama was not properly informed about the things that are happening, particularly when India's economic fundamentals are strong."

In an interview to Press Trust of India, the minister also said that the perception of a deteriorating investment climate in India was not based on economic parameters, but on certain impressions of a few individuals, entrepreneurs and investors. "That is also being removed. Once that perception is removed, I think in 2-3 months, we are back again with a kickstart to pick up the same speed as we had done in the last decade," he added.

The minister was emphatic that there was no crisis in India, whereas the US and other countries had faced crises, "not once but twice in 2008 and 2010". "Not even a single financial institution has collapsed in this country, whereas many such things have collapsed in US and other countries," he said.

In the last one decade, India had registered a vibrant growth rate of 8 to 9.5 per cent, he said, adding "but perhaps for the economic crisis in the US and Europe, the country would have definitely crossed 10 per cent of the GDP."

"That is the potential of India which can recover back immediately by taking some remedial steps," Mr Moily said. He said 55 per cent of the investment in the form of Foreign Institutional Investors (FIIs) and Foreign Direct Investment (FDI) comes from as many as ten countries like Mauritius, Cyprus and Singapore, and only 19 per cent comes from the US and other countries.

"Ultimately Prime Minister Manmohan Singh is going to address all these problems and it is being considered. That's why, again, the investment climate is picking up," he said.

In this, the government's position is backed firmly by the Opposition. The BJP has taken umbrage at Mr Obama saying that India prohibits foreign investment in too many sectors. The party's Yashwant Sinha, a former Finance Minister, said India could not open its markets just because the US President wished it. "If Obama wants FDI in retail and India does not want, then it won't come just because he is demanding it," said Mr Sinha.

Noting that India prohibited foreign investment in too many sectors such as retail, Mr Obama had, on Sunday, cited concerns over the deteriorating investment climate to endorse another "wave" of economic reforms. (Read)

The party's Mukhtar Abbas Naqvi said the US President's remarks were "laughable". "That country is giving us a certificate on investment and economy when it itself is facing economic problems. We have to ensure our national interests on our own," he said.

The CPI-M reacted strongly too. "They want to open up our economy and market on their terms. For this purpose they are creating this pressure...as it is, no one believes that under the present situation, there will be any sea change in the investment scenario world over," said party leader Nilotpal Basu.

The BJP and the Left have opposed FDI, especially in retail, citing interests of the small trader.

The Samajwadi Party, which is extending outside support to the Congress-led United Progressive Allinace (UPA) at the Centre, too said India would not take a decision in support of the United States. "They only want their market to expand in our country," party leader Shahid Siddique said.


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News Network
January 31,2020

New Delhi, Jan 31: The central government has decided that pensioners' life certificates will be collected from their doorstep, saving them from hassles of visiting pension disbursing banks.

The service will be charged an amount not exceeding Rs 60, according to a statement issued on Thursday by the Department of Pension and Pensioners' Welfare (DoPPW).

Every year a pensioner is required to give proof of him being alive to banks in order to ensure continued pension. These certificates can be submitted online or by visiting the bank.

"The department has taken a landmark step to make life easier for senior citizens to submit their annual life certificate for continued pension," it said.

Directions have been issued to all pension disbursing banks to send SMS or emails to all their pensioners on October 24, November 1, November 15 and November 25 every year reminding them to submit their annual life certificates by November 30, the statement said.

"The bank in addition will also ask such pensioners through SMS/email as to whether they are interested in submission of life certificate through a chargeable doorstep service, the charge not exceeding Rs 60, it said.

The department for stricter monitoring and in order to ensure that no pensioners are left out has also directed the banks to make an exception list on December 1 every year of those pensioners who fail to submit their life certificate and issue another SMS or email to them for submitting it.

The Central Pension Processing Cells (CPPC) of the pension disbursing banks shall now be duty bound to submit a report to the DoPPW in January, February and March.

The report will indicate the total number of pensioners who have not given their life certificate along with a breakup of the certificates submitted physically and through digital means, the statement said.

This is a landmark step from the side of the central government showing due care for pensioners, it said.

This step is in addition to the order issued in July last year, vide which all pensioners aged 80 years and above have been given an exclusive window to submit their life certificate w.e.f. 1st October every year instead of 1st November every year, the statement added.

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News Network
July 25,2020

New Delhi, Jul 25: Congress leader Rahul Gandhi on Saturday accused the government of benefitting by making profits during the coronavirus-induced lockdown when people were in trouble.

He tagged a news report that claimed the Indian Railways was making profit by running 'Shramik trains' for transporting migrants during the pandemic.

"There are clouds of disease and people are in trouble, but one seeks to benefit -- this anti-people government is converting a disaster into profits and is earning," he said in a tweet in Hindi.

The news report claimed that the railways made a profit of Rs 428 crore by running Shramik special trains during the lockdown that transported migrants to their native places.

In another tweet, he lauded the efforts of the Himachal government in conducting a survey to select 'one district, one product', saying he had suggested this sometime back.

"This is a good idea. I had suggested it some time back. Its implementation will need a complete change of mindset," he said on Twitter.

He also tagged a report that stated the state Industries Department is conducting a baseline survey in all districts to select one district, one product for centrally-sponsored Micro and Small Enterprises Cluster Development Programme (MSE-CDP). 

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News Network
May 4,2020

New Delhi, May 4: The country's manufacturing sector activity witnessed unprecedented contraction in April amid national lockdown restrictions, following which new business orders collapsed at a record pace and firms sharply reduced their staff numbers, a monthly survey said on Monday.

The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) fell to 27.4 in April, from 51.8 in March, reflecting the sharpest deterioration in business conditions across the sector since data collection began over 15 years ago.
The index slipped into contraction mode, after remaining in the growth territory for 32 consecutive months.

In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.

Amid widespread business closures, demand conditions were severely hampered in April. New orders fell for the first time in two-and-a-half years and at the sharpest rate in the survey's history, far outpacing that seen during the global financial crisis, the survey said.

"After making it through March relatively unscathed, the Indian manufacturing sector felt the full force of the coronavirus pandemic in April," said Eliot Kerr, Economist at IHS Markit.
Panellists attributed lower production to temporary factory closures that were triggered by restrictive measures to limit the spread of COVID-19.

Export orders also witnessed a sharp decline. Following the first reduction since October 2017 during March, foreign sales fell at a quicker rate in April. "In fact, the rate of decline accelerated to the fastest since the series began over 15 years ago," the survey said.

On the employment front, deteriorating demand conditions saw manufacturers drastically cut back staff numbers in April. The reduction in employment was the quickest in the survey's history.

"In the latest survey period, record contractions in output, new orders and employment pointed to a severe deterioration in demand conditions.
“Meanwhile, there was evidence of unprecedented supply-side disruption, with input delivery times lengthening to the greatest extent since data collection began in March 2005," Kerr said.

On the prices front, both input costs and output prices were lowered markedly as suppliers and manufacturers themselves offered discounts in an attempt to secure orders.

Going ahead, sentiment regarding the 12-month outlook for production ticked up from March's recent low on hopes that demand will rebound once the COVID-19 threat has diminished and lockdown restrictions eased.

"There was a hint of positivity when looking at firms' 12-month outlooks, with sentiment towards future activity rebounding from March's record low. That said, the degree of optimism remained well below the historical average," Kerr said.

In India, the death toll due to COVID-19 rose to 1,373 and the number of cases climbed to 42,533 as on Monday, according to the health ministry.

Meanwhile, the coronavirus-induced lockdown has been extended beyond May 4, for another two weeks in the country.

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