Posts tagged ‘prime minister of india’

18/05/2015

India beats own target to contain fiscal and revenue deficits | Reuters

The government said on Sunday it managed to better its target for containing the fiscal and revenue deficits in the last financial year.

A money lender counts rupee currency notes at his shop in Ahmedabad, May 6, 2015. REUTERS/Amit Dave/Files

The fiscal target was 4 percent of gross domestic product for the year ending March 31, compared with a goal of 4.1 percent, the government said in a statement. The revenue target was 2.8 percent, compared with the aim of 2.9 percent.

Over the past year, Prime Minister Narendra Modi has taken a slew of measures to stabilize the economy and attract investment. But while inflation has cooled, in large measure due to the dramatic fall in global oil prices, recovery in India’s domestic demand-driven economy remains sluggish.

via India beats own target to contain fiscal and revenue deficits | 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.

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.

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.

12/04/2015

Modi’s ‘Make in India’ Gets $2 Billion Vote of Confidence From Airbus – India Real Time – WSJ

On Saturday, Indian Prime Minister Narendra Modi paid a visit to Airbus Group ‘sEADSY +0.49% facilities in Toulouse, France.

He was greeted with a vote of support, from the aerospace company’s CEO, for his Make in India initiative to build up manufacturing in the South Asian country.

Airbus is “ready to manufacture in India, for India and the world,” said Airbus chief Tom Enders. “India already takes a center-stage role in our international activities and we want to even increase its contribution to our products.”

Airbus Group aims to increase its sourcing of aerospace parts from Indian companies to $2 billion in the next five years, the company informed Mr. Modi, as it seeks to diversify its supplier base and tap low-cost suppliers worldwide.

The company’s strategy to ramp up outsourcing from India comes as it competes to secure billions of dollars in deals for military hardware from the country.

India has yet to decide on a joint bid by Airbus and India’s Tata Group to make Airbus’s C295 aircraft, in a contract estimated at about $3 billion. The company is also pursuing separate deals for hundreds of helicopters from the Indian military.

India has already selected Airbus to supply six A330 multirole tanker-transport planes for an estimated $2 billion.

In a presentation to the Indian prime minister on Saturday, the company said it would work with partners in India in areas such as engineering, customer services and pilot training, and to establish centers for the maintenance, repair and overhaul of planes, according to Indian Foreign Ministry spokesman Syed Akbaruddin.

In a statement, Airbus said it aims to produce helicopters, military planes, sensors as well as satellites in India, in partnerships with local firms. The company predicted India would India would require 1,291 new planes over the next two decades. It forecast the Indian air travel market to grow 11% each year through 2025.

via Modi’s ‘Make in India’ Gets $2 Billion Vote of Confidence From Airbus – India Real Time – WSJ.

09/04/2015

Demands for Bribes and Other Barriers Get in Way of Modi’s Banking Push for the Poor – India Real Time – WSJ

Firozaben, a nurse at an upscale clinic here, opened an account at the state-owned Bank of Baroda Ltd. in December, attracted by the promise of an overdraft provision and accident- and life-insurance policies—all for no fee, courtesy of a government program to bring India’s masses into the banking system.

The same month, Mohammad Assalam Ansari, a tailor, traveled to an account-opening “boot camp” run by the bank. He says he had to pay 100 rupees before a clerk would give him an application form. Despite this, he says his application was rejected; he isn’t sure why.

Their stories reflect both the promise and the weakness of an ambitious program by Prime Minister Narendra Modi to widen access to financial services to the country’s poor. The goal is to make India less cash dependent, shrink the black economy, reduce corruption and boost growth.

via Demands for Bribes and Other Barriers Get in Way of Modi’s Banking Push for the Poor – India Real Time – WSJ.

13/03/2015

India seeks edge over China as Modi visits Sri Lanka | Reuters

When Sri Lanka’s President Maithripala Sirisena received India’s Prime Minister Narendra Modi at an ocean-front colonial building on Friday, the two looked out over a $1.4 billion Chinese real estate project halted days ago after criticism from New Delhi.

India's Prime Minister Narendra Modi (L) talks to Sri Lanka's President Maithripala Sirisena at the Presidential Secretariat in Colombo March 13, 2015. REUTERS/Dinuka Liyanawatte

The vista will have pleased Modi, whose government strongly opposed the land reclamation project inaugurated by China’s President Xi Jinping last year under a deal that gives China ownership of a patch of land overlooking a strategic port.

Modi’s was the first bilateral visit by an Indian premier in 28 years, a sign of a friendship that has warmed rapidly since a January election ousted a leader whose close ties with China had left Sri Lanka’s larger neighbour feeling unloved.

India and China are increasingly jostling for influence in South Asia and the Indian Ocean and former Sri Lankan President Mahinda Rajapaksa‘s decision to let Chinese submarines dock in Colombo port and the real estate deal were very worrying for New Delhi.

via India seeks edge over China as Modi visits Sri Lanka | Reuters.

13/03/2015

India in pacts to develop infrastructure in Mauritius, Seychelles | Reuters

Curious: India not known for its own infrastructure is offering to help its neighbours!

Indian Prime Minister Narendra Modi has secured agreements to develop islands in Mauritius and Seychelles in an early success for his drive to wrest back influence in the Indian Ocean from China.

India's Prime Minister Narendra Modi speaks at the inaugural session of Re-Invest 2015, the first Renewable Energy Global Investors Meet & Expo, in New Delhi, February 15, 2015.  REUTERS/Adnan Abidi

China has invested millions of dollars in recent years building seaports and highways in countries stretching from the Maldives to Sri Lanka that lie on vital shipping lanes through which much of its energy supplies and trade passes.

India, alarmed at the prospect of China building a network of friendly ports in a “String of Pearls” across the Indian Ocean, has stepped up its diplomacy, offering a range of civil and military assistance.

On Wednesday, as Modi toured Mauritius, officials signed an agreement to upgrade sea and air links on the remote Agalega islands, offering India a foothold in an area hundreds of miles from its coast.”

via India in pacts to develop infrastructure in Mauritius, Seychelles | Reuters.

09/03/2015

China says progress being made on India border talks | Reuters

Progress is being made on drawn-out border talks with India, China’s foreign minister said on Sunday, likening the process to climbing a mountain that becomes harder the closer to the summit you get.

Chinese Foreign Minister Wang Yi gestures as he speaks at a news conference at the annual session of the National People's Congress (NPC), the country's parliament, in Beijing, March 8, 2015. REUTERS/Stringer

The neighboring giants have had numerous rounds of talks over the years without making much apparent process, in a dispute which dates back to a brief border war in 1962.

Chinese Foreign Minister Wang Yi described the problem as one “left over from history”.

“After many years of hard efforts, the border talks continue to make progress, and the dispute has been brought under control,” Wang told reporters on the sidelines of China’s annual meeting of parliament.

“At the moment, the boundary negotiation is in the process of building up small and positive developments,” he said. “It’s like climbing a mountain: the going is tough, and that is only because we are on the way up.”

China lodged an official protest last month when Indian Prime Minister Narendra Modi visited one of the border regions in dispute.

via China says progress being made on India border talks | Reuters.

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