Posts tagged ‘Narendra Modi’

17/05/2015

India to open $1 billion credit line to finance infrastructure in Mongolia | Reuters

India will open a $1 billion credit line to bolster Mongolia‘s “economic capacity and infrastructure”, the Mongolian and Indian prime ministers announced on Sunday.

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Mongolia is seeking investment in infrastructure for the transport of its minerals as well as in generating energy. Money has been tight for the Mongolian government since the coal market in China weakened and growth has slowed.

Indian Prime Minister Narendra Modi said he hoped his visit would bring closer economic relations that could lead to cooperation in Mongolia’s minerals sector. India has no investments in Mongolia’s mines, although Indian companies have expressed interest in its coal.

Modi said economic relations between the two countries had been modest though that would change as India grew.

“As the Indian economy adds strength to our region and the world, it will also benefit Mongolia,” he said.

Modi began a three-nation Asian tour on Thursday with a focus on economic ties.

Before Ulan Bator, Modi visited the Chinese cities of Shanghai and Beijing. He is next scheduled to go to South Korea.

Mongolian Prime Minister Chimed Saikhanbileg said India would be opening a $1 billion credit line that could be used for expanding the landlocked nation’s railway system.

Mongolia is building a rail link from its coal mines in the Gobi desert to overcome bottlenecks in deliveries to China, but it is seeking funding to finish the job.

Saikhanbileg also mentioned establishing a “joint investment fund” but he did not elaborate.

Indian and Mongolian officials signed 14 agreements in areas such as renewable energy, cyber security and dairy production.

Modi’s visit to Ulan Bator was the first by an Indian prime minister although India was the first country to open diplomatic relations with the north Asian country outside of the Soviet bloc, in 1955.

Modi said India and Mongolia shared friendly connections, recalling how millennia ago, Indians helped bring Buddhism.

“We have a strong convergence of views,” Modi said, adding: “We are starting a new era in our partnership.”

via India to open $1 billion credit line to finance infrastructure in Mongolia | Reuters.

17/05/2015

China, India sign more than $22 billion in deals: Indian embassy | Reuters

China and India signed 26 business deals worth more than $22 billion in areas including renewable energy, ports, financing and industrial parks, an Indian embassy official said on Saturday.

Namgya C. Khampa, of the Indian Embassy in Beijing, made the remarks at the end of a three-day visit by Indian Prime Minister Narendra Modi, during which he sought to boost economic ties and quell anxiety over a border dispute between the neighbors.

“The agreements have a bilateral commercial engagement in sectors like renewable energy, industrial parks, power, steel, logistics finance and media and entertainment,” Khampa said.

At the same event, Modi encouraged Chinese companies to embrace opportunities in India in manufacturing, processing and infrastructure, announcing “now India is ready for business” with an improved regulatory environment.

“You are the ‘factory of the world’ whereas we are the ‘back office of the world’,” Modi said.

via China, India sign more than $22 billion in deals: Indian embassy | Reuters.

14/05/2015

5 Gaps That Define the India-China Relationship, in Charts and Maps – WSJ

1 Trade Gap

To better understand why there is a gaping trade deficit between India and China, take a look at the list of things each country exports to the other.

Some of China’s biggest exports to India are telecommunications equipment, computer hardware, industrial machinery and other manufactured goods. India sends back mostly raw materials such as cotton yarn, copper, petroleum products and iron ore.

As India has grown its consumers and corporations have been importing an increasing amount of China’s affordable products but India’s exports to China have not kept pace.

During his visit to China, Prime Minister Narendra Modi will be seeking better access to Chinese markets to correct the widening trade imbalance.

“The visit is going to be crucial because our trade deficit with China is very huge compared to other countries,” says N.R. Bhanumurthy, an economist at think-tank National Institute of Public Finance and Policy.

While China has a cost advantage in most products, analysts say India is very competitive in the pharmaceutical, textile and some services sectors. That is where it needs more access if it wants to start to rectify the skewed trade balance.

2 The 13-Year Gap

Even though India is now growing faster than China (see number 4)  the world’s largest democracy still has a way to go to catch up with the size of the economy in the world’s most populous nation.

China, though, got a 13-year head start on India in opening its economy and giving companies greater freedom to invest and produce. In exports, capital spending and foreign investment, India today is remarkably similar to China circa 2001.

That should both console and concern India as it gets back on its feet after three years of weak growth and high inflation. Console, since it suggests the country’s economy could remain on a China-like trajectory for years to come. But concern, because India’s delay could mean that the country has missed out on some big advantages that catalyzed China’s boom.

3 The Border Perception Gap

Friction along the two nations’ 2,200-mile-long border, much of which is undefined and contested, has mounted in recent years, India says. And it poses a serious hurdle to improving relations between Delhi and Beijing.

Part of the problem, Indian officials say, is that India and China have “differing perceptions” of their de facto border, known as the Line of Actual Control. Both sides patrol up to their respective perceptions of the border, leading to frequent claims of transgressions.

Without a clearly demarcated border, “it is quite natural for some incidents to happen,” Chinese Defense Ministry spokesman Col.Geng Yansheng said in September during a border confrontation between the two countries.

4 The GDP Growth Rate Gap

Everyone from the World Bank to Goldman Sachs had predicted it wouldn’t happen for another two years but recent recalculations indicate that India has already dethroned China as the world’s fastest-growing big economy.

5 The FDI Gap

While Chinese companies have been great at peddling their products in India, they have been surprisingly reluctant to invest here. China has invested less in India than even Poland, Malaysia or Canada have.

via 5 Gaps That Define the India-China Relationship, in Charts and Maps – WSJ.

14/05/2015

Delayed reforms, market woes tarnish end to Modi’s first year | Reuters

A surprise delay to India’s new goods and services tax (GST) marks one of the most painful setbacks suffered by Prime Minister Narendra Modi‘s government as it nears the end of a first year in power, with markets falling and farmers braced for a poor monsoon.

Prime Minister Narendra Modi attends an event in New Delhi February 17, 2015. REUTERS/Stringer/Files

Investors had hoped that the ruling Bharatiya Janata Party‘s majority in the Lok Sabha, the lower house of parliament, would ensure Modi could push through reforms far more smoothly, but that assumption has taken a battering.

Late on Tuesday, the government submitted to strong opposition in the Rajya Sabha, the upper house, by agreeing to delay the landmark tax legislation until at least July.

The introduction of the GST would constitute India’s biggest tax reform since independence.

The delay to the bill is a blow to a government that is already dealing with rural discontent over proposed land reforms, which have also still to be sent to the upper house for approval.

The GST would replace a patchwork of levies by the central and state governments, reducing corruption, attracting investment and — according to the finance minister — add 2 percentage points to India’s growth.

Senior officials said on Wednesday they feared the delay could become yet another “sell” signal for foreign funds, already angered by the government seeking to tax them for several years of previously untaxed gains.

“A delay in parliament approval of the GST bill will send a wrong signal to investors, who are already grappling with tax notices,” said one senior government official dealing with economic policy decisions.

India was Asia’s second best performing market last year and the government has scored some successes. It has, for example, improved its finances, held successful telecoms and coal block auctions, and allowed more foreign investment into the insurance and defence sectors.

But the shine has worn off. Foreign investors sold nearly $2.2 billion in shares during the last 16 trading sessions.

via Delayed reforms, market woes tarnish end to Modi’s first year | Reuters.

12/05/2015

Optics as well as substance important as India’s Modi visits China | Reuters

When Indian Prime Minister Narendra Modi arrives in the ancient city of Xian on Thursday at the start of a visit to China, he will be met by Chinese President Xi Jinping, in an unusual departure from normal protocol.

India's Prime Minister Narendra Modi (R) and China's President Xi Jinping shake hands during a photo opportunity ahead of their meeting at Hyderabad House in New Delhi September 18, 2014. REUTERS/Ahmad Masood

Top Chinese leaders almost never travel outside Beijing to meet senior foreign guests on bilateral visits, and Xi’s appearance in Xian, located in Xi’s home province of Shaanxi, underscores China’s determination to set aside past rancor between the world’s two most populous nations, experts said.

“It definitely indicates the significance our president puts on Mr. Modi’s visit,” said Li Li, an India expert at the government-backed China Institutes of Contemporary International Relations.

“From the Chinese side, we were very impressed by the hospitality extended by Mr. Modi during Xi Jinping’s visit to India,” he added, referring to Modi greeting Xi in his home state of Gujarat when Xi visited India last year.

Modi will visit a Xian pagoda connected to Xuanzang, also known as Tripitaka, the monk who bought the Buddhist sutras to China from India thousands of years ago, according to people briefed on the trip.

“It is sending a very important message,” Li said of Xi’s going to Xian to greet Modi, a place closely connected to the deep historical links between China and India.

Still, the list of problems both countries face are considerable, ranging from a festering border dispute to China’s support for India’s arch-rival Pakistan.

Mistrust runs deep, something Xi will be keenly aware of despite the bonhomie and billions of dollars in deals likely to be signed.

Modi’s new account on Chinese social media site Weibo, China’s version of Twitter, was filled with messages soon after launching this month asking him to return what China calls South Tibet, otherwise known as the Indian state of Arunachal Pradesh.

“This is the great, great pressure the Chinese government is facing,” said Mao Siwei, a former senior Chinese diplomat who was based in India and Pakistan, talking about the need to manage Chinese public concern about the disputed area.

China claims more than 90,000 sq km (35,000 sq miles) disputed by New Delhi in the eastern sector of the Himalayas.

India says China occupies 38,000 square km (14,600 sq miles) of its territory on the Aksai Chin plateau in the west.

In September, the two armies faced off in the Ladakh sector in the western Himalayas just as Xi was visiting India for the first summit talks with Modi. This time, the border has been quiet ahead of Modi’s arrival.

While chances of a breakthrough on the border look distant, the exchange of visits by Modi and Xi so soon after both took office is a positive sign, said Ram Madhav, a senior leader of the Rashtriya Swayamsevak Sangh, a hardline Hindu nationalist organization that has close ties to Modi’s BJP.

“There is an earnest eagerness to connect with the Indian leadership,” Madhav told a forum in Beijing.

“Prime Minister Modi has chosen to come in his first year (of office) to China. It shows that the leaders on both sides are seriously attempting to … bridge the most important challenge between the two countries – the trust deficit.”

via Optics as well as substance important as India’s Modi visits China | Reuters.

07/05/2015

Primary care centres key to reforming healthcare in India: health economist Kenneth Thorpe

Over 60 percent of deaths in India are due to non-communicable diseases (NCDs) such as cancer, diabetes, chronic respiratory diseases and cardiovascular disease, which are also responsible for about 70 percent of spending on healthcare. They also affect the economic health of the country, with NCDs and mental illness expected to cost India $4.58 trillion between 2012 and 2030.

Health economist Dr. Kenneth E. Thorpe, chairman of Partnership to Fight Chronic Disease, an international NGO, is advising the government of India on developing a policy to deal with the country’s rising chronic disease problem.

In an interview with India Insight, Thorpe shared his thoughts on how India can reform its healthcare delivery system, the need to replicate successful models of primary health centres to cover the entire country, and why payments for health services need to be changed from out-of-pocket expenses to a subscription-based system and through insurance.

Q: Why should India focus on non-communicable diseases (NCDs)?

A: NCDs account for over 60 percent of deaths in India. It’s also a major driver of health spending – 60 to 70 percent of what India spends on healthcare is linked to NCDs. It’s a major problem not just in terms of healthcare but also in terms of productivity.

Q. Which sector is more crucial to improving healthcare delivery in India – government or private?

A: Both. It’s got to be a public-private partnership. So today, India spends about 4 percent of its GDP on healthcare. About one-and-a-half percent of that is the government and the rest is private. So we just need to scale that up – probably proportionally to something like 5 or 6 percent of GDP.

Q: In what way are you working with the Indian government?

A: We’re working on developing a policymaking framework for healthcare reform solution for India.

Q. Has there been any progress?

A: With the Modi government coming in, there was a renewed interest in developing something as a health policy solution for India. They seem very receptive to some of the things that we’re talking about in terms of preventing chronic disease and treating patients that have chronic disease.

Q: What have you been able to achieve?

A: We were here in December and the ministers asked us to put together a blueprint of what would a healthcare reform look like. And so we put together some thoughts that they basically incorporated into their blueprint (National Health Policy) in February. That’s like an outline, so the next point is saying: “How do we operationalise this outline?”

Q: What have you proposed in your blueprint?

A: One is that we really need to build up the primary care infrastructure. We need more manpower, more hospital beds, but we really need capacity – building up primary care clinics, primary care models that really deal with identifying chronic disease, preventing it and managing it. And there are some good models that we’ve identified throughout the country that we think we can scale them and replicate them throughout India.

Q: Are you saying that the main focus should be on primary healthcare centres?

A: That’s the biggest challenge. That’s the starting place. We need to build from the ground up.

Q: And majority of scaling up will have to come from the private sector?

A: I think one of our messages is that the government can’t do this alone. It just doesn’t have the resources to really build the system and build the infrastructure. It’s going to need private sector investment as well. So we’re trying to figure out how we can harness some of the private sector money and help build a healthcare delivery system and potentially a bigger healthcare insurance system.

Q: Where does the government come in?

A: The government has to play a role in funding, particularly low-income populations – the poor that live in rural areas, urban poor.

Q: What else?

A: Manpower training, more doctors and nurses …

Q: Can the government help in nudging private players to increase their participation, especially in rural areas?

A: The government’s got to play a leadership role and say: “Here’s where we are going, here’s the plan, here’s the framework, the blueprint. We’ll work with the states in order to implement this.”

But we need to sort of change the way that healthcare services are paid for. So today in India, 60 percent of spending is out of pocket. So we need to change that from out-of-pocket buying to something like a primary care package (subscription) or an insurance product.

Q:  Very few people in India have health insurance, and health policies have a very limited coverage.

A: I think the insurance model needs to be completely changed. Private insurance covers just 2 percent of the population and it covers only in-patient hospital care. And the problem is that most of these chronic diseases need primary care, medications, home community-based services – things that are not covered in current insurance policies.

Q: Where does India stand on the problem of NCDs as compared to other developing countries?

A: The challenge India faces is its ability to manage and deal with it is way below the average because the capacity is not there, the infrastructure is not there, the manpower is not there, the investment is really not there.

via Primary care centres key to reforming healthcare in India: health economist Kenneth Thorpe.

21/04/2015

Rahul Gandhi’s Speech: The Indian Media’s Surprise Verdict – India Real Time – WSJ

India’s punditocracy in recent weeks has loved to hate Rahul Gandhi.

Mr. Gandhi, the vice president of India’s opposition Congress party, was derided by some opinion-makers for taking a break from frontline politics in mid-February–and not returning until mid-April. But on Monday, in a speech before Parliament, Mr. Gandhi surprised many pundits.

Not by what he said — he attacked, as expected, the government’s proposed changes to India’s laws on purchasing land — but by the fact that he spoke at all.

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Mr. Gandhi, who is a member of Parliament, rarely speaks in India’s lower chamber, the Lok Sabha. In fact, this was only his first address since Congress lost badly in national elections almost a year ago.

Congress’s loss provoked deep soul-searching within the party about its future. Mr. Gandhi was Congress’s prime ministerial hopeful in that drubbing.

On Monday, Mr. Gandhi blasted India’s prime minister, Narendra Modi, and his Bharatiya Janata Party, for proposed changes to the Land Acquisition Act that, among other things would make it easier for businesses and the government to buy land for defense, industrial corridors, affordable housing and infrastructure projects by removing a requirement to obtain the consent of more than two-thirds of landowners.

Mr. Gandhi’s Congress party argues these changes are bad for India’s huge population of farmers, who he described in Parliament as the country’s backbone. “Everything has been built on a foundation that has been provided to us by the farmer,” Mr. Gandhi told lawmakers.

Pictures of Mr. Gandhi, dressed in a close-fitting white kurta and flanked by some of the party’s youngest members of Parliament, filled television screens and set his name trending on Twitter on Monday evening.

It also put the ruling BJP on the defensive after months of relatively limited challenges from the Congress party.  A piece in the Indian Express newspaper said the government was pushed into “damage control after Rahul Gandhi’s attack over the agrarian situation.”

Sanjay Singh, who writes about politics for Firstpost, wrote that Mr. Gandhi’s “rather aggressive pitching in Parliament has surely charged up Congress’ ranks.”

Another piece, posted on the IBNLive website of the Indian news channel CNN-IBN, said Mr. Gandhi had shown “he is back and he means business.”

“Maybe it is the low expectations,” the IBNLive piece said, “but Rahul Gandhi was definitely on fire.” The article was published with no byline.

via Rahul Gandhi’s Speech: The Indian Media’s Surprise Verdict – India Real Time – WSJ.

19/04/2015

Govt may offer visa-on-arrival facility to Chinese tourists – The Hindu

An intelligence agency expressed reservations and suggested a cautious approach before taking a final decision.

Home Minister Rajnath Singh with Mahesh Sharma, MoS, Tourism at the launch of the tourist e-visa facility in New Delhi. File photo

Ahead of Prime Minister Narendra Modi’s proposed visit to China, India may extend the e-tourist visa facility to citizens of that country, despite strong opposition from an intelligence agency.

The matter was discussed threadbare at a recent high-level meeting, chaired by Union Home Secretary L.C. Goyal, during which the intelligence agency expressed reservations and suggested a cautious approach before taking a final decision.

The Tourism Ministry has been strongly advocating extending the e-tourist visa facility to five more countries, including China. The other four countries are the U.K., France, Italy and Spain.

Home Ministry officials said the intelligence agency has red-flagged granting of the e-tourist visa facility to Chinese nationals due to various reasons.

Frequent issuance of stapled visa by China to people from Arunachal Pradesh was one of the key reasons for the objection, an official said.

There is a possibility of announcement of visa-on-arrival facility to Chinese nationals before Mr. Modi’s proposed visit to China in May.

via Govt may offer visa-on-arrival facility to Chinese tourists – The Hindu.

19/04/2015

Entrepreneurship in India: Ready, steady, go | The Economist

IN 2013, when foreign capital suddenly rushed out of emerging markets, India was one of the worst-affected countries. There were plenty of reasons for investors to panic. GDP growth had slumped. The public finances were a mess. And inflation was hovering around 10%. A year earlier a power cut had plunged hundreds of millions of Indians into darkness.

It is a testament to the country’s enduring promise that within a year investors were once again scrambling for a stake in its future—this time tempted by the pro-growth promises of Narendra Modi, who won a resounding victory in elections last May. India’s population rivals China’s in size, but has a far younger complexion. That India is so much poorer in most other regards seems only to add to its allure. Those who missed out on China’s boom might still catch the wave in India.

“Restart” by Mihir Sharma, a columnist for the Delhi-based Business Standard, is a reliable and readable guide to India’s stop-start economy. It is admirably clear on what has to change if India is to taste the high living standards enjoyed in other parts of Asia. Each year 13m Indians join the workforce. Jobs must be found for them. But the giant factories that hummed with baby-boomers in other places are scarce in India, because it is so difficult to do business there.

Mr Sharma applies regular doses of rueful humour as he explains why some of the toughest job-protection laws in the world have ensured that there are few decent jobs in India. The jokes are a necessary feature in a book that contains as many unpalatable truths as this one. They are also a mask for the author’s anger at India’s poverty, at the nation’s failure to match the development of its Asian neighbours and at the self-delusion of its policymakers. “It’s almost as if we genuinely believe all the lies about ourselves we tell foreign investors,” he writes.

Mr Sharma is at his funniest (or angriest) when listing the ludicrous regulations that business must adhere to. Complying with them all is impossible, so officials routinely extort bribes for breaches. Businesses are required, among many other things, to keep an abstract of the 1948 Factories Act to hand. Pass it to a visiting labour inspector, allow him a moment to reflect and “he will find a violation”, notes Mr Sharma. The wisecrack has a painful sting. To avoid a shakedown, businesses stay tiny and inefficient. And India remains poor and woefully short of decent jobs.

Where did India go wrong? Mr Sharma picks the leftward lurch in 1969—when Indira Gandhi nationalised banks to outflank opponents in her own party—as a moment when things shifted. Manmohan Singh’s famed budget of July 1991 was badly flawed because the reforms it contained were incomplete. Mr Singh opened up goods markets to competition but did nothing to free markets for land, labour and capital. A ban on selling farmland to industry remains; labour inspectors can still prey on factory owners; and without a bankruptcy law, capital stays trapped in dying firms. New factories could not readily spring up to compete with imports, and manufacturing has been in relative decline since the mid-1990s.

Mr Sharma thinks factories can still be India’s salvation. But manufacturing-led growth has become harder to pull off. Modern factories use more machinery and less labour than in the past. While India was making half-hearted reforms, China was securing its position in global supply chains. It is now tougher for aspiring nations such as India to break in. It is perhaps for this reason that others look for hope in India’s vibrant services sector. Hindol Sengupta is one such author. His “Recasting India” is a paean to the commercial flair of millions of hawkers and small shopkeepers plying for trade in India. Yet the small-scale service enterprises celebrated by Mr Sengupta are a developmental dead end. They are a sign of economic weakness and not vitality, as Mr Sharma rightly argues. Small traders seem less impressive in other countries only because the best entrepreneurs have been able to grow bigger.

via Entrepreneurship in India: Ready, steady, go | The Economist.

16/04/2015

The Statesman: Roadmap for India-Canada free trade pact by Sept: Modi

India and Canada on Wednesday expressed commitment to have a free trade pact, with Prime Minister Narendra Modi saying a roadmap will be laid for the market opening agreement by September.

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Modi said the Bilateral Investment Promotion and Protection Agreement (BIPPA) will also be concluded soon.

“I am confident that we can conclude the Bilateral Investment Promotion and Protection Agreement very soon.

“We will also implement the roadmap to conclude the Comprehensive Economic Co-operation Agreement by September 2015,” he said at a joint press conference with his Canadian counterpart Stephen Harper.

He said Canada has the potential to partner India’s economic transformation and “it exists in a new environment in India which is open, predictable, stable and easy to do business in”.

Prime Minister Harper and I are absolutely committed to establishing a new framework for economic partnership. I am pleased that we have made rapid progress on long-pending agreements,” Modi said.

On the free trade pact, Harper said there are many issues in this to be resolved, but “we are committed to see it through”.

Harper further said there was no reason why Canada should not have a free trade pact with India which “is a vibrant democracy. Nothing precludes that”.

The Canadian Prime Minister said while the trade between the two countries has increased, “it is still not as much as it should be”.

He expressed confidence that nuclear agreement signed today with India will raise the bilateral trade volume further.

The bilateral trade increased to USD 5.18 billion in 2013-14 from USD 4.83 billion in previous year.

via The Statesman: Roadmap for India-Canada free trade pact by Sept: Modi.

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