India and the World | India Writes

Budget 2015 reactions: Clear Vision, Making India story shine

February 28, 2015 - by India Writes Network

The maiden budget presented India’s Finance Minister Arun Jaitley on February 28 has elicited a largely positive response from leading politicians, industrialists and global investors. Prime Minister Narendra Modi described Budget 2015 as “a Budget with a clear vision.” “It is a Budget that is progressive, positive, practical, pragmatic & prudent,” he said. Mr Jaitely said that it’s time for India to fly. Can India fly? Here are a spectrum of reactions on India’s Budget 2015:
Rajnath Singh, Home Minister: “It will play an important role in the formation of modern India and it will help eliminate poverty and unemployment.”
Mallikarjun Kharge, Congress: “It is just a vision document, a Budget in interest of corporates and industrialists.”

Budget 2015: It’s time for India to fly, new steps to rev up economy

February 28, 2015 - by India Writes Network

With the “world predicting that it is India’s chance to fly,” India’s Finance Minister Arun Jaitley unveiled his first full-spectrum budget that seeks to make India a manufacturing hub and announced a host of policy changes and targets to revitalise Asia’s third largest economy. These include the reduction of corporate tax from 30% to 25% over the next four years, visa on arrival to 150 countries, 46,727 crore (around $8 billion) increase in defence spending, a comprehensive new law to bring back black money stashed abroad, and the setting up of new IIT, IIMs, AIIMS.
Underlining that India is going to take off on a faster growth trajectory, Mr Jaitely presented a robust picture of the India growth story in months to come. “While global growth forecasts have come down, India’s forecasts have either been maintained or scaled up,” Mr Jaitley said in his Budget speech on February 28.
Mr Jaitely reinforced his government’s commitment to greater fiscal consolidation, saying that he will be able to meet the stated 4.1 per cent fiscal deficit target for the current fiscal year.

India’s economy to grow at 8 per cent, room for big-bang reforms

February 27, 2015February 27, 2015 - by India Writes Network

Conjuring up a bright picture for the India growth story, the Indian government has projected that the country’s economy will grow at a rate of more than 8 per cent in the 2015-16 fiscal year, while consumer inflation will drop to between 5 and 5.5 per cent.
The Economic Survey report, which was tabled on February 27 in parliament by India’s Finance Minister Arun Jaitley, a day before the NDA-led BJP government’s first full Union Budget, forecast that the Indian economy would grow by 8.1-8.5 per cent under a new calculation method that makes India the world’s fastest growing large economy.
The survey, a big-picture report on the state of Indian economy, also indicated that India can increase public investments and still achieve its borrowing targets.
The survey is clear about the government’s priorities: India needs to stick to its medium-term fiscal deficit target of 3 percent of gross domestic product.

Mamata’s Dhaka visit sets tone for Modi visit

February 27, 2015February 27, 2015 - by India Writes Network

Boosting further the relations between India and Bangladesh, West Bengal Chief Minister Mamata Banerjee undertook a three-day visit to the neighbouring country from February 19. The visit was at the invitation of Bangladeshi Foreign Minister AH Mohmood Ali to participate in the celebration of Bhasha Divash (International Language Day) on February 21. The visit ended successfully, reinforcing the warmth between the two countries.

Mamata Banerjee’s visit was important for many reasons. West Bengal shares around 2000 km, out of the total 4098km, of the border that India has with Bangladesh. This is the longest border that any of the Indian States have with Bangladesh. With such a long border, the relation between the countries greatly depend on the attitude of the bordering States have towards Bangladesh. Cooperation of the bordering States is important for developing the bilateral relations between the two countries. The sharing of the water of the intra-State river Teesta is a good example. In spite of the positive political will, India and Bangladesh could not sign the water sharing agreement during former Indian Prime Minister Dr Manmohan Singh’s visit to Dhaka in 2011 because of the objection of the agreed draft agreement by Mamata Banerjee.

PM needs to focus on infrastructure for growth

February 27, 2015February 27, 2015 - by India Writes Network

While India is one of the fastest growing economies in the worldtoday, a major obstacle for sustaining its real GDP growth has been the lack of adequate infrastructure, which can support the growth process. Low levels of public investment have made India’s physical infrastructure incompatible and without improving the rate of infrastructure investment, the overall growth rate would remain modest. Therefore, there has been a growing emphasis by the Government of India to mobilise infrastructure investments to the tune of$1 trillion during the 12th plan (2012-17) across sectors such as roads, railways, seaports, airports, power, telecom, water and irrigation of which 50% is expected to come from the private sector in the form of both debt and equity. However, there is a realisation that expecting private sector to contribute nearly 50 per cent to the total infrastructure deficit is a stiff ask given that there are lack of bankable projects and mistrust between the private and government sector.

The 11th FYP had projected investment requirements in infrastructure to be about $514 billion. This target was doubled in the 12th FYP to nearly $ 1 trillion highlighting that GDP growth averaging 9% per year can be achieved only if this infrastructure deficit can be overcome. It was opined that domestic savings can contribute significantly to boosting infrastructure investment. However these savings have to be intermediated into infrastructure to achieve these targets.

India unveils 5-year plan for modernisation of railways, no fare hike

February 26, 2015February 26, 2015 - by India Writes Network

India’s Railway Minister Suresh Prabhu has unveiled a multi-pronged plan for the transformation and modernisation of the Indian railways, the backbone of the nation’s economy.

“Over the next five years, the Railway has to go through a transformation,” Mr Prabbhu said. The chartered accountant-turned-politician underlined his key four goals as cleanliness, safety, modernization of infrastructure and making the railways financially self-sustainable. “We have to make Indian Railways a benchmark organisation in safety, security and infrastructure.”

“There will be no hike in railway passenger fares. We will focus on improving passenger amenities,” the minister said.

Here are some highlights of Railway Minister Suresh Prabhu’s rail budget speech, the first rail budget presented by the BJP-led NDA government.

Good news for spouses of US H-1B visa holders

February 25, 2015February 25, 2015 - by India Writes Network

Reinforcing its credentials as a nation of immigrants, the US has announced that it will provide work permits to spouses of H1B visa holders, triggering much rejoicing among Indian-American community.

This policy step will benefit thousands of high-skilled Indian spouses who migrate to America, but are not eligible to work under current immigration policies.

The move has been welcomed by Indian- Americans. “This decision is going to directly affect many of our life members as they would now be able to join the professional workforce and chase the American Dream,” the Telugu Association of North America said in a statement.

According to official estimation, the number of people eligible to apply for employment authorisation could be as high as 179,600 in the first year and 55,000 annually in subsequent years. US State Department statistics show that almost 76 per cent of those who received H-4 status in 2013 were from South Asian countries.

India concerned over Maldives crisis, MDP pitches for Delhi’s mediation

February 24, 2015February 24, 2015 - by India Writes Network

With the political crisis in the Maldives deepening, India has expressed concerns over the “arrest and mishandling” of former President Mohamed Nasheed as the leading opposition party pitched for India’s intervention.
The Maldives government on February 24 vigorously defended the arrest of Mr Nasheed on terrorism charges and accused him of performing “stunts” to grab global attention.
The latest crisis in the troubled Indian Ocean island nation poses a tricky diplomatic situation for India, coming as it does barely weeks before India’s Prime Minister Narendra Modi’s visit to Male around mid-March. India has vital stakes in peace and stability in the Maldives, which is being ardently courted by China. China’s President Xi Jinping visited Maldives and managed to sell the idea of Maritime Silk Road to the Indian Ocean atoll nation, better known for its coral blue pristine islands frequented by tourists and honeymooning couples.

India on diplomatic offensive, showcases pluralism, minorities’ welfare

February 24, 2015February 24, 2015 - by India Writes Network

Stung by accusations of the growing religious intolerance in India, the Modi government has gone on a diplomatic offensive and told a global terror meet in the US that the traditional notion of minorities is not valid in the Indian context. The government underlined that it has been proactively addressing issues relating to their social, cultural and political integration.
Stressing on vibrant pluralism of Indian society and polity, R.N. Ravi, chairman of a joint intelligence committee and head of the Indian delegation to an international conference hosted by the White House on terrorism, highlighted that India is home to over 180 million Muslims in India, the world’s second largest Muslim population after Indonesia. He also drew attention to the recent peaceful Assembly election in Jammu and Kashmir with 65% voter turnout, and stressed that no Indian has been found participating in “violent Pan Islamist groups” to prove that Indian Muslims have faith in the country.

India bats for UNSC seat, warns against selective approach to terror

February 24, 2015February 24, 2015 - by India Writes Network

In a biting critique of the undemocratic functioning of the UN Security Council, India has accused permanent members of the UNSC of picking and choosing the UN principles to suit their own national interests and of being selective in dealing with terrorism. “It is ironical that calls for democracy and the rule of law are being made in a Council that itself embodies the undemocratic stranglehold of the privileges of a few, forged by a wartime alliance that no longer exists,” India’s Ambassador to the UN Ashoke Kumar Mukerji said in New York on February 23.