English - PRAVASI BHARATIYA - Overseas Indian

ECONOMYINDIA STORYGrowth peggedat 7.2 percentPM’s council says growth would accelerate to8.2 and 9 percent over the next two yearsThe Prime Minister’s EconomicAdvisory Council onFebruary 19 predictedIndia’s growth for this fiscalat 7.2 percent, and later acceleratingto 8.2 percent and 9 percent, respectively,over the next two years.“The council expects a bounceback in agricultural gross domesticproduct in the next year and maintenanceof the desired trend growthof 4 percent in 2011-12,” Chairman C.Rangarajan said at a press meet in$ billionNew Delhi after a review of theIndian economy.The high-profile council alsoexpected the industrial and servicesectors to continue to expand stronglythrough both these years andhoped the government’s prioritiesand initiatives on infrastructurewould proceed along desired lines.“On this basis, we are making aninitial estimate that the economywould grow by 8.2 percent in 2010-11and by 9 percent in 2011-12,” saidRangarajan, after presenting thereview to Prime Minister Dr. ManmohanSingh.The council noted with concernthe price movements in the currentfiscal that has resulted in very highrates of inflation in food products,both primary articles and manufactureditems. “The danger of thisspreading to other commoditiesexists, especially in the backdrop ofthe strong recovery that the Indianeconomy has been making since thesummer of 2009,” it said.INDIAN IT & BPO INDUSTRY PERFORMANCE60504030201004712.82008-2009Export earnings2009-2010 2010-2011(Projected)Domestic market revenues (Source: Nasscom)Note: Government IT spend is estimated to reach $ 5.4 billion in 2010-11from $ 3.6 billion in 2009-10, including $ 897 million in e-governance alone505.5% YoY growth 13-15% YoY growth14.3412% YoY growth 15-17% YoY growth56-5716.64FDI limit needingcabinet nod upIndia on February 11 doubled to$240 million the limit for foreigndirect investment proposals thatrequire prior cabinet approval. Ameeting of the Cabinet CommitteeEconomic Affairs, presidedover by Prime Minister Dr. ManmohanSingh, raised the limitbased on recommendations by thecommerce and industry ministry.At present, all proposals with atotal project cost of up to $120million are approved by thefinance minister, and those aboveare placed before the cabinet.Ford India toexport FigoThe Indian arm of global automaker Ford Motor will commenceexports of its small car Figoand diesel and petrol engines toSouth Africa and Asean countries,the company said on February 4.“We will be shipping outfully built Figo andengines (dieseland petrol) toSouth Africa andAsean nations,”Ford India president and managingdirector Michael Bonehamsaid after inauguration of Ford’snew engine plant near Chennai.UK group tobuild highwaysAgroup of key British constructioncompanies have set up aconsortium to build roads andhighways in India, Road Transportand Highways Minister Kamal Nathsaid in London on February 2. TheBritish-India Roads Group metKamal Nath on February 1 and willsign an agreement with the governmentwithin two months. Thegroup has over 20 British firms andwill enter into pacts with Indianpartners to facilitate India’s ambitionto build 20 km of highwaysper day over the coming years.India plans seed reservesIndia plans to build seedreserves to ensure nationalfood and income security tomillions of its farmers, reelingunder the impact of a deficit monsoonand a harsh drought in 2009, atop official said on February 12.“We are working with the seedindustry to produce surplus highyielding,pest and disease-resistantseeds to build reserves that can beused in the event of crisis arisingout of droughts or floods during themonsoon,” union Agriculture SecretaryT. Nanda Kumar toldreporters in Bengaluru.Noting that despite monsoon failureand drought in many parts ofthe country, supply of food grainswas not affected due to surplusstocks and seeds from the 2008-09bumper crop, Kumar said the proposedseed reserve would be independentof the stock the NationalSeed Corporation of India or stateA depositary ofseeds will be locatedacross the countryin different statesThe game plan is tobuild sufficient seedreserves from nextyear to be quicklymade available tofarmers affected bydrought or floodseed corporations build-up everyyear. “A depositary of seeds will belocated across the country in differentstates and made available tofarmers depending on their requirements.In states like Punjab,Haryana and Madhya Pradeshwhere wheat is produced more, wewill stock wheat seeds and in southernstates like Andhra Pradesh andTamil Nadu, we will stock riceseeds,” Kumar said on the marginsof the first Indian Seed Congress,organised by the National SeedsAssociation of India.“Similarly, seed reserves for corn,pulses, edible oils and other foodcrops will be stored in states wherethey are produced more,” Kumarpointed out.As such an ambitious projectinvolves substantial cost involvingprocurement, storage and maintenance,Kumar said the central governmentwould have to pick thebill and it would be shared by therespective states. “The game planis to build sufficient seed reservesfrom next year to be made availableto farmers faster in emergencyafter they are affected bydrought or flood,” Kumar averred.Admitting that Indian agricultureand millions of farmers werestill monsoon-dependent due toinadequate water resources andincomplete irrigation projects inmany states, Kumar hinted therewas no guarantee that another climatevariability may not occur inthe short term. “Maybe, five yearsdown the line, we may have eitherdeficit or excess rainfall resultingin either drought or flood. Both situationscreate problem to farmersand food productivity. In such distresssituation, seed reserve willhelp farmers to access seeds fortimely sowing of food and cashcrops,” Kumar added.24 Pravasi Bharatiya March 2010Pravasi Bharatiya March 2010 25