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Section : Economics - Indian
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Latest Articles For Economics - Indian
 
Needed: A New Generation Of Policy Economists
It is the political system alone that has the right to decide which direction a country should be moving in.
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Rising Muslim demography and the TFR gap
Delhi was already surrounded by high Muslim population in west UP, Alwar and Mewat. If Haryana keeps going on this trajectory, the encirclement of Delhi will soon be complete.
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Is premature English making India a super-dunce?
start with mother tongue, and introduce English later. The issue in India is not Hindi vs English. Rather, a good Hindi foundation improves English learning later. The trap to avoid is premature introduction of English, or teaching in the English medium to children who don’t speak it.
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India in need of a two-speed economy
The Indian government has unveiled a range of initiatives over the past year that will have a big impact on economic growth.Two biggest ones r GST and Demonetization.
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India in need of a two-speed economy
The Indian government has unveiled a range of initiatives over the past year that will have a big impact on economic growth.Two biggest ones r GST and Demonetization.
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Economic priorities in a protectionist world
This NDA government has the right DNA for infrastructure. That preference is manifest in the progress on roads, rail and minor ports.
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Oxfam slams top 1% of wealthy in India; here’s why FM Arun Jaitley must snub calls for taxing them more in Budget 2017
the tax paid by the top 1.5% of the population is 78% of the R244,716 crore spent by the government on all manner of subsidies for the poor in assessment year 2014-15
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Not a tragedy, but the remedy
how many jobs did UPA’s high growth produce? Believe it or not, just 27 lakhs against 600 lakhs during NDA’s five years, according to NSSO data.
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Indian Exceptionalism: The Case For Abolishing Income Tax For Individuals
My simple starting point is that our tax system should suit the culture of the nation.
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Currency reform: a risky natural experiment
The point is that the currency reform is a game-changer in the true sense of the word. It is quite clear that the immediate impact on the economy will be negative.
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Ashok Gulati Calls For A ‘Brown Revolution’: Indian Agriculture Must Focus On Soil Quality
In US states likes Iowa and Illinois, the results of such experiments have been good, Gulati said and that in these states, in maize cultivation for instance, the yields are as high as 11 tonnes per hectare and this has been achieved with lesser irrigation, seed and fertilisers.
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Looming threat! Automation threatens 69 per cent jobs in India, says World Bank
Research based on World Bank data has predicted that the proportion of jobs threatened in India by automation is 69 per cent, in China it is 77 per cent and in Ethiopia, the percentage of jobs threatened by automation is 85 per cent
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Will Construction Sector Create Jobs that India Badly Needs?
real economic activity leads to faster wage growth in comparison to the government trying to create some work through MGNREGA. When the construction sector is doing well, a section of the farm workers drift towards jobs on offer, and this in turn pushes up wages for those who remain.
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Can India develop without industrialization?
Cowen is as pessimistic on India’s prospects of achieving manufacturing success as Subramanian, if not more. Cowen also argues that India’s failure to become an industrial powerhouse means that the growth process in India is unlikely to be inclusive and egalitarian.
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GST’s a great idea. But making it work is not going to be easy
The slogan “one India, one tax, one market” sounds terrific but may mislead non-experts. GST does not provide for one tax rate across India. Different committees have suggested different tax bands for different sets of goods and services. Chief economic adviser Arvind Subramanian headed one such committee which suggested four tax bands — zero for essentials, 12% for merit items, 17-18% as the standard rate for other items, and 40% for luxuries.
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Yes, GST will change business but it may also change politics
n India, building consensus is an exasperating and time-consuming business — the GST consensus took a decade — but once the give-and-take is complete, even political parties refrain from obduracy.
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Does GST Mean One Nation, One Tax? You Must Be Joking
One-nation-one-tax should ideally mean similar treatment for goods and services across India; but even after GST is implemented, it will be implemented by one central bureaucracy, and 31 state and Union territory bureaucracies, whose attitudes to taxpayers remain unchanged.
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GST ‘Door Ast’: Even If Bills Passed In August, Pain Will Be Frontloaded
At last count, there were more than 6.5 million businesses to be linked. Big or small, all taxpayers have to compulsorily go online. Consider the education and training required to be given before the GST Network, being built by Infosys, can run smoothly.
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Do We Know What We Want With MUDRA Loans?
The scheme may be electorally rewarding, but is this ‘personal sector’ approach a better bet for employment generation than incentivising and facilitating firms and businesses to grow bigger and disincentivising them from staying small?
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Liberalizing India’s urban thinking
The first step is to stop thinking of the city as a machine and start thinking of it as an evolving ecosystem.
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‘Power’ful Plan: Tackling Left-Wing Extremism And Developing North-East In One Go
Power Grid is planning to spend Rs 1 lakh crore over the next four years to expand its network and connect areas affected by left-wing extremism (LWE) and the north-eastern states.
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‘Power’ful Plan: Tackling Left-Wing Extremism And Developing North-East In One Go
Power Grid is planning to spend Rs 1 lakh crore over the next four years to expand its network and connect areas affected by left-wing extremism (LWE) and the north-eastern states.
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Tomorrow’s Reform - Why The Government Needs A Tech Mindset To Change
Taiwan achieved a sustainable electronics manufacturing eco system through Industrial Technology Research Institute (ITRI) and perfected the art of commercialising R&D success.
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Time to diversify pro-poor policies
Poverty is rarely just a binary state of being poor or not. In reality, the poor may experience anything between destitution and moderate poverty, and their condition may change from one end of the spectrum to the other over time.
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More Reforms In Two Years Of Modi Govt Than In Previous Twenty-Two
The fact that China changed its tune, and the LIs did not, proves that it was not democracy that delayed economic reforms in India, but LI ideology — a feudal mindset
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Growth no longer means jobs: Inflexible labour laws, rapid technological change have caused employment generation to stall
inflexible labour laws, that make firing difficult, ensure that employers prefer more automation to more hires.
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While the world is jittery over Brexit, India has reasons to smile; here’s why
The slowdown that Brexit will trigger in several economies globally will lead to a fall in the prices of commodities like crude, which will help India save a lot on its import bill
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DECODING RAGHURAM RAJAN’S EXIT
Rajan needs to take onus of the fact that his single-minded pursuit of inflation did more harm than good. A study of results of BSE-500 companies for 2015 shows that operating profit margins fell to 18 per cent vs a 10-year average of 22 per cent, again, thanks to high interest costs which eroded profitability.
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India and the Fallacy of the Demographic Dividend
The demographic dividend benefits a country if the government of the day is able to create the right environment in which jobs are created.
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Good News: 25 Years From Today, Renewables Will Rule The World
the Union government increased its solar capacity target by five times, from 20 GW to 100 GW by 2021-2022. It also has ambitious plans for deployment of 60 GW of wind energy.
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‘RBI's new norms on stressed assets won’t make an impact’ - Report
with the new norms, haircut assumptions for stressed assets will not change and the threshold of Rs500 crore for debt restructuring is too low, says a research report.
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Reshaped by the invisible hand
The much abused Enron power project was revived by getting all stakeholders together in a room by the Prime Minister’s Office (PMO) in just four meetings, thereby creating about 500 MW of power generation capacity
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Jobs Growth: Modi May Be On The Right Track But He Could Trip On Execution
A roof over one’s head is a basic human requirement, and the demand for homes runs into millions – making this the biggest potential job creator in India. But lack of land reforms, and rent-seeking behaviour has killed off jobs even before they can be created.
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Why Is Raghuram Rajan Toying With A Deceptive Idea Like Islamic Banking?
The real truth about Islamic banking is that it is an all-pervasive myth. As one sceptic put it, it is normal banking “sprinkled with holy water.” As a marketing tool, the mere title of Islamic may help attract Muslim customers, but in practice Islamic banking is just normal banking in disguise. All that really happens is the use of Islamic terms to camouflage interest as profit or profit-sharing.
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Cafe Economics | A new fiscal framework
The first such discussion is to be found in the constituent assembly debates on Article 292, with B.R. Ambedkar going so far as to say that he would be surprised if future Indian Parliaments do not impose legislative restrictions on government borrowing to fund the budgetary gap.
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How to leave a lasting economic legacy
The Modi government has done credible work in the past two years in terms of building a new framework of rules for the conduct of macroeconomic policy.
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An Agenda For Modi: Development And Emotional Connect With People
Modi government seems to be doing a lot for benefiting individuals at a personal economic level - life Insurance, access to cooking gas, skilling programs, farm insurance, and so on. But the government seems to be falling short on emotionally engaging the people and building a strong sense of community.
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It’s Better To Let Raghuram Rajan Go Than Keep Him For Wrong Reasons
Rajan is an intellectual with integrity, who can hold his own against the best minds in the west.
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21-year-Old Indian Pays Tribute to Modi’s Solar Vision for India Through this Amazing Aerial Video
When Modi Government came to power, solar energy capacity in India was only 2,400 MW, and the target set by the National Solar Energy Mission (set by Congress) then was 20,000 MW by FY22. But Prime Minister Narendra Modi has increased the target by five times to 100 GW by 2022.
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Modi government sets up panel to DOUBLE farmer income in 6 years
The panel is expected to submit its report in two months. The panel will also look into solutions that will help reduce the cost of cultivation.
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Make In India And Make For India Debate: A Student’s Take On Manufacturing A New India
Make-in India will orient the resources for producing high quality goods for foreign consumers. Not only will it decrease the amount of resources available for Indian masses but also produce goods which have no use for India.
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Time to Dismantle Stranglehold Of Sugar Politics In Maharashtra
Controlling operations of sugar factories: The state should manage the water use by sugar factories closely, demanding full declaration of requirements and actual use. Limiting crushing licenses every year in future may be critical, enabling consolidation of factories generating economies of scale over time.
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Why NDA 2 Is Not UPA 3
The Congress party pursued the most classic of “in the name of the poor” policies ie. policies that are meant to benefit the poor but in reality, help oil the palms of middlemen, political party coffers, etc. In sharp contrast, Modi’s BJP government has attempted to genuinely help the poor, and the farmers, in rural areas.
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The Upcoming Urban Landscape Of India
Unfortunately, most private sector real estate initiatives have ended up in developments which are too small and fragmented, and mostly catering to the wealthy population, making them far from inclusive.
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Rahul Gandhi Needs A Lesson In Inflation
What is inflation? Inflation is essentially the rate of price increase. If the price of a product in March 2015 is Rs 100 per unit and it jumps to Rs 110 per unit by March 2016, the rate of inflation is said to be 10%.
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Radha Mohan Plays Nationalist Card; Dares Monsanto With 70 Percent Cut in Technology Fees
The maximum selling price of the previous version called BG-I has been fixed at Rs 635. The ministry has said no technology fee is payable for it, as it is off patent.
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Why Public Sector Companies Have Made Losses Of More Than Rs 1 Lakh Crore
The accumulated losses of sick public sector enterprises as of 31 March 2014, stood at Rs 1.04 lakh crore. This essentially means that the Government of India has pumped a lot of money into these companies over the years to keep them going.
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Good economics is good politics
Mr. Jaitley has announced a significant increase in the allocation to agriculture and rural development, as well as infrastructure.
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Lavish Funding for Agriculture in the Budget and Some Confused Ideas
In Sikkim, which the Prime Minister declared wholly organic in February, a report in Mint newspaper said local buyers could not afford the produce. The stuff which goes to Siliguri, a neighbouring city in West Bengal, gets mixed up with non-organic produce and fetches low prices.
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How Black Money Helps Indian Banks Finance Real Estate
The black money payment essentially helps banks because the risk they take on in giving out the home loan, essentially comes down.
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Sanjeev Sanyal On Global Economic Trends And India’s Challenges
Sanjeev Sanyal spoke at length about the China factor in the global economy, the downstream effect of the Chinese slowdown and how the country would deploy the excess capital it accumulates.
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At This Juncture, India Cannot Afford Fiscal Consolidation
A major reason why India’s economy has been lackluster is that business capital spending is still anemic. The three C’s that drive business spending—cash flow, credit availability, and capacity—are not supportive.
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Modi Sarkar’s Mudra Bank Appears To Be Doing Well. Here’s How It Is Helping Small Businesses.
The government has also approved setting up a credit guarantee funds against MUDRA loans budgeting for a credit off take of ₹100,000 crore under the three buckets (Shishu – loans up to ₹50,000, Kishor – loans between₹50,000 and ₹500,000, and Tarun – loans between ₹500,000 and ₹10,00,000).
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Listen To Hernando de Soto, Not Piketty, To Address the Inequality Issue
De Soto agrees that capitalism is flawed but doesn’t believe this should lead to an anti-capital approach (much like our very own Raghuram Rajan), but instead to a more pro-markets approach
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India’s economy is on the rise
India needs many different engines of growth. So you have digital India, for instance, which looks at how we can connect India digitally with proper broadband connectivity. We have Make in India, which is about not only manufacturing but manufacturing as well as services and that we can export those goods to the rest of the world.
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PM Modi's grand initiative for Indian startups: A Rs 10,000 cr fund, 3-year tax rebate
"Seeing is believing. Entrepreneurs should tell government, what not to do. When I was listening to Ritesh, OYO Rooms founder, I wondered why a 'chai wala' did not think of starting hotel chain".
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More than Make in India, need Invent in India: Nobel laureates
"Making in India is obviously important for the country, but to make in India without dependence on others, you must invent in India, and to invent you must discover.
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Reviewing cess and tax regimes
In December 2015, the Comptroller and Auditor-General pointed out that over three lakh crore rupees, collected through various forms of cess in 2014-2015, have either been diverted to other causes than stated or have simply remained unutilised. The total budget deficit for 2015-2016 is Rs3.94 lakh crore.
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No reason why India can’t grow at 9-10%, says Lord Meghnad Desai
India has all the capacity to grow at 9%. In last 15 years, India has had high growth periods more often than slow growth. The reason why UPA-II was unpopular was the slower growth rate. I don’t see any reason why we will not grow at 9-10%.
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30,000 MW power generation capacity revived in past 18 months, says Goyal in LS
"Under the scheme, all un-electrified villages/ habitations would be covered for electricification which would give access to electricity to rural households.
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Why Thorium Is The Way Ahead For Nuclear Energy In India
It is unrealistic to expect the BJP to be pro patria before pro politica and walk back its errors on civil nuclear liability. Thankfully, there is another option that allows India to circumvent the nuclear liability logjam altogether – thorium.
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Structural reforms: now the difficult, fiscal part
A recent study by International Monetary Fund (IMF) that analysed reform experiences of 108 countries to infer linkages between structural reforms and macroeconomic performance finds that reform efforts gathered ...when many emerging markets faced financial crises.
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Modi Government’s Most Critical Power Sector Reform Takes Shape
UDAY addresses a range of issues rather than doling out cash and hope things will improve operationally.
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Nehruvian Or Socialistic, NOT the ‘Hindu’ Rate of Growth
While the developing countries of Southeast Asia, which had been far behind India in 1947, raced ahead at over 9% growth and became highly prosperous, with infra-structure rivalling Western countries, India plodded along at what was derisively referred to as the Hindu rate of growth of just 3%, and became a basket-case, begging aid and food from all.
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Need to change economics of the Cow
Perhaps the quality of milk produced by Jersey cows is inferior to the milk produced by desi cows. The government must take up an ambitious programme to breed sedentary desi cows so that the cost of grazing can be reduced.
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'Make in India', but carefully
What is needed for technology transfer from MNCs to developing countries is a carrot-and-stick policy in place.
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MUDRA Bank on a roll
Finance Minister Arun Jaitley said that it had already advanced over Rs 24,000 crore to over 3.7 million micro enterprises and he expected advances to cross Rs 1.2 lakh crore by the end of the current financial year, with over 12.5 million borrowers.
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Space R&D: A Strategic Frontier
India must build an R&D foundation that will support indigenous high-tech companies—we need not emulate China by merely becoming a manufacturing base. India can initiate a strategic national megaproject that can propel it towards becoming an indigenous high-tech giant.
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The way out of the economic tailspin
the Indian economy is headed for a crisis and a crash. The likely date is by early 2016 in my estimation. Can a course correction today rectify and rescue the economy from a crash? Yes, of course, but only if there are short-term and long-term prescriptions to be followed. Does the Narendra Modi government have such contingency prescriptions ready? Not as of now.
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No more Manmohanomics, please
India is also not investing in solar and alternative energy research despite its abundance. A proper policy for non-grid linked domestic solar power can reduce crude import bills and dependence on fossil fuel.
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Modi drawing up growth architecture
Modi did present a potted balance sheet of what Team India — a simple but effective way of describing the collective endeavour — has managed to achieve in just 12 months.
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Key Initiatives To Accelerate Manufacturing
To expand on the ideas of Special Economic Zone (SEZ) and National Manufacturing Investment Zone (NMIZ), creation of National Manufacturing Region on the coasts of India similar to Guangdong in China could be considered.
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Reluctant Reformers And The Missing Revolutions
The fact that Modi is willing to take the temporary brunt of the rural voter to create a better agrarian economy for the future is nothing short of a mini-revolution.
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Speculators Come Back, All Is Forgiven!
Industry is showing drastically reduced profit margins, lower sales/revenues, under-utilisation of capacity, and high debt burdens. It is struggling to service the debt accumulated at high interest rates.
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Ways to meet India’s increasing energy consumption
the growing footprint of terror outfit ISIS in West Asia, which supplies 60 per cent of India’s crude imports, has emerged as a new geopolitical threat to continued flow of oil and gas supplies to India.
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Kalam’s blueprint for a new India
the most remarkable aspect of Kalam was in his balanced vision of a developed India that was replete with formidable defence capabilities and yet had outmost sensitivity towards the environment.
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Regulating P-Notes: A Quick Trip Down Memory Lane
In early 2004, Sebi ordered that P-notes should not be issued to any non-regulated entity and the know-your-client (KYC) principle should be strictly adhered to. Non-eligible PNs should expire or be wound down.
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Farmer as a backbone of Indian economy
Experts say the Centre should prepare a national land use plan for 2050, reserving land for agriculture and food security, a practice in all developed nations. Thereafter, clusters could be earmarked in each district for industrial development including infrastructure, institutions, commercial enterprises, and residential areas. The task can be completed in six months.
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How Kerala is making the most of organic farming revolution
A raft of studies have linked pesticides to the rising incidence of cancer and other diseases in Kerala. Oncologist VP Gangadharan says high pesticide residue levels cause cancer in two ways. One, a direct effect that leads to gastro-intestinal cancer. Two, an indirect effect that causes breast and uterus cancer in women by disrupting the hormone levels.
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Ideas To Help India Realize Its Solar Power Potential
the Government should make it mandatory for new multi-storeyed residential/commercial buildings/gated communities/MALLS in four metros, Gurgaon, Bangalore, Hyderabad, Pune, Thane, NOIDA, Ahmedabad to have rooftop solar such that common lighting, hot water and minimal light in each unit is provided for. The Haryana government amongst others have made a beginning.
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What PMKSY could learn from the Vajpayee-era PMGSY
Thousands of kilometres of firstrate rural roads have been constructed all over the country during the last 15 years under this PMGSY. Its success convinced me that the PMKSY could be equally successful if properly designed.
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Socio economic survey points to widespread deprivation and retarded development in rural areas
Only about 29.7% of the rural households had access to irrigated land in the country as a whole. The states where the share of households with non-irrigated land was the highest included Uttarkhand (45.5%), Karnataka (47%) and Himachal Pradesh (66.9%).
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Census reveals grim picture of Bharat
the bad news is that over 6.85 crore households (38.27 per cent) hold no land, deriving a major part of their income from casual manual labour. Also, the number of households with destitutes or those living on alms is over 6.68 lakh; as many as 4.08 lakh households rely on rag-picking.
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Push for PM Modi's dream: $100 bn solar plan the new investment magnet for MNCs
Many Indian solar panel producers have benefited over the past six months from a surge in demand for panels not yet fulfilled by foreign companies. But their small scale and outdated technology will quickly make itself felt when the global players arrive.
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Modi's solar dream gets a boost: SoftBank, Bharti, Foxconn team up for $20 bn venture
Government this month raised the solar power generation capacity addition target by five times to 100 gigawatts by 2022 under the National Solar Mission (NSM).
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Nobody Wants To Struggle In The Villages
should not be opposing a properly compensating land bill, if left on their own, away from the political machinations of elite politicians for whom paddy farms is a utopian concept of life close to nature, even if they can’t tell their paddy farm from their wheat farm.
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'It’s also true that poverty is a cognitive tax'
poverty is not only the absence of resources but it’s a certain mindset. It’s a perspective on the choices that are in front of you.
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FARMER SUICIDES The RSS take: why is our food set on a plate of suicides?
The government consults everybody before presenting the budget except for the farmers. Industrialists are called for deliberations on WTO. Why don't governments feel it necessary to take the opinion of farmers?
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The Demographic Imperative Of ‘Make in India’
With clever resource allocation, India can become a global manufacturing hub in sectors like Automobiles & auto components, pharmaceutical, textiles, gems & jewellery, leather goods, IT hardware and solar power.
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Bankruptcy code: Jaitley should speed up, as Rajan is moving faster than him
Last year, the RBI tightened the noose around crony capitalists by allowing banks to categories entire groups as wilful defaulters in cases where even one group firm has failed to pay up its dues to banks.
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Corridors of power: The Great Indian monsoon circus
It is true that the monsoon rains are still vital for the rural economy as 60% of the country’s population is dependent on farming and half of the area under cultivation lacks irrigation, but it is also equally true that the farm sector accounts for merely 15% of a $2.1 trillion economy.
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Deficient monsoon: PM Modi wants challenge to be turned into opportunity
The Prime Minister pitched for an intensive short-term effort to boost the creation of farm ponds across the country. The irrigation plans need to be worked out at the district level, and young officers from the civil services should be asked to propose district-level irrigation plans
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Why talking up markets won't get good rains
Poor performance of monsoon as well as pause in further rate cuts can hurt economic growth in different ways. What has also contributed to the nervousness is that the RBI has signalled a rise in inflationary risks in the economy
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Skymet rejects official forecast of likely drought
Skymet, which says its predictions have been correct for the past three years, forecast rains at 102 percent of the long-term average over the June-September monsoon season, versus Indian Meteorological Department's (IMD's) 88 percent.
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Kick-starting an economic revival
India’s educated youth is skill deficient, risk averse in attitude and largely unemployable in the cutting-edge manufacturing sector. According to Macaulay’s Minute on Education, our universities still produce clerks for government administration and not innovators of the future.
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Why would fastest growing economy need rate cut boost? RBI beats hollow new GDP
“In the eyes of the rest of the world, it is a discrepancy why we feel the need for rate cuts when the economy is growing at 7.5 per cent. Most economies growing at 7-7.5 per cent are just going gang busters and the issue there would be to restrain rather than accelerate growth,” Rajan said.
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Population control key to prosperity
Space is limited and so is water and air. A country progresses step-by-step, but the fruits of progress are usurped by the ever increasing number of mouths to feed. More hands are also continuously added to the work force, looking for employment. As a result, we are back to square one. The goals for a country's progress, therefore, should not be limited to man-made advancements.
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We Want A Deng Out Of Modi
But even as things stand, the Land Bill, despite the lightning and thunder it has provoked as a flash in the pan, will pass in Parliament very soon. So will GST and every other piece of legislation this Government proposes in future.
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Ganga as national highway: Namami Gange is not just a religio-cultural obsession, it builds India’s infrastructure
One school of thought is considering giving it free to villages by the riverside, as an incentive and a gift from the munificent river – and to create a constituency for Namami Gange.
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What the next four years hold for Modi
Investors, foreign and domestic, want certainty, clarity and predictability of laws. Retrospective legislation violates all three principles. It is a testament to India’s attractiveness as a market that, despite such a law, foreign investment continues to pour in. Fix the law and watch it become a flood.
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Young Indian Engineers Turn to Manufacturing
From 1986 to 2013 manufacturing barely advanced from almost 16 percent of gross domestic product to 17.3 percent, according to World Bank figures. In China, manufacturing is 42.6 percent of GDP: The Indian government has announced a target of 25 percent.
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Steve Forbes: How Modi can make India a global superpower
India is the world’s largest democracy and China is an authoritarian regime where political activity is proscribed.
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Low inflation gives India chance to cut rates, but window could close
India, is a lot better place to withstand any buffeting from market turmoil, having amassed record foreign exchange reserves.
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Well Started, But Be Careful
Today, the so-called advanced nations can no longer afford to ignore India. Modi has rightly recognised our inherent strength and started interacting with world leaders with an assertive body language unlike his predecessors.
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Does Modi Government Have An Economic Model?
Every economic model is constrained by political reality. Government decisions are based not just on its economic philosophy and beliefs but also on the political constraints it faces at any given time.
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Fiscal Consolidation: The Real Story
Lowering fiscal deficit is good but the manner in which the cut has happened in the last few years by pruning public expenditure is not good for the long-term health of the economy, Crisil chief economist D.K. Joshi said. The NDA government seems to have done this, like previous governments.
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An Open Letter To The Hon’ble Union Finance Minister
the reputation for whimsicality and high-handed arbitrariness that our Income Tax Department has acquired needs to be addressed not only in order to encourage business and entrepreneurship in the country, but quite frankly for a significantly larger political and moral reason.
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India Brings More Power to the People Than Any Other Country
The percentage of Indians with access to electricity has jumped from 51% in 1990 to 79% in 2012, but it is still well behind most other countries in Asia, Europe and the Americas. Only sub-Saharan African countries do a worse job on average, according to the World Bank report.
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India ignored warnings on foreign investor tax row - sources
Jaitley, whom a senior government source said was aware of the issue from January, left open the question of liabilities for past years, citing an outstanding court ruling.
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Making Businessmen Out Of Farmers – The Kutch Example
Every advanced agriculture practice – mulching, sheet protection, shade net cultivation of vegetables, protective nets for pomegranates and figs, sensory systems for drip irrigation in cotton and castor, raised bed cultivation for grain crops with drip (limited only to areas with abundant water) and large cattle rearing areas near grass lands are woven so skillfully with the land by this farming entrepreneurial class that the uninitiated may sometimes get inspired to take up farming as a busin
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Why the Sensex fell by more than 700 points
India Inc. keeps warning about lack of change, and on the ground, investment has not picked up while the government spends time and energy managing the headlines.
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Depression is the main cause of farm suicides
India proves that too. Pesticide poisoning is the biggest form of suicide. Farmers growing fruit, vegetables and commercial crops keep more pesticides at home than grain farmers. Unsurprisingly, insecticide-using farmers have by far the highest suicide rates.
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Ways & means to stop farmers’ suicides
At least one member of each agricultural household should be brought under some non-agricultural activity. The sole dependence on agriculture has made farmers financially and emotionally completely dependent on agriculture, which is reflected at the time of natural calamity.
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Growth: the next steps to be taken
What are the favourable factors that can contribute to a better performance of the economy in 2015-16?low crude oil prices,the external environment as far as India is concerned may be benign,On domestic front,there are signs of a gradual improvement in the investment “sentiment”.
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Socialist Red Tape: a Black Hole where our jobs disappear
Politicians get to institute that many more freebies to all those who stay jobless, and bureaucrats would earn huge amounts dispensing those freebies.
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Smart move? India building 100 high-tech 'smart cities' to rival Dubai and Singapore
With an urban population set to rise by more than 400 million people to 814 million by 2050, India faces the kind of mass urbanisation only seen before in China, and many of its biggest cities are already bursting at the seams.
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Modi's coal turnaround to ease chronic power cuts
The revival has been spearheaded by Piyush Goyal, an accountant and investment banker picked by Modi to run a power and coal super-ministry with a remit extending from the coal face to household power supplies.
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Barefoot solar engineers
With the Gandhian partnership model, the whole village is involved when the fixed solar systems are installed in every house.
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The bleak scenario of the farmers' lot has its origin in the policies of Congress Governments. If one wants to change the status quo, the NDA must pursue means to create jobs and bring development to the rural sector The raging controversy over the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Bill, 2015, pending for parliamentary approval, is a consequence of a conflict between the forces of status quo and those who are seeking a change to en
so long as over half, even upto 70 per cent of the population lives by agriculture, draws its sustenance from farming, the per capita income is bound to remain at the margin of starvation.
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Kayakalp Indian Railways needs
No amount of social media, television and radio or publicity blitzkrieg can personally reach out to the citizens from Kashmir to Kanyakumari and Gujarat to Guwahati as much as the Indian Railways can.
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More than jobs,India must churn out job creators
Government and its agencies have a profound role to play in creating an enabling environment — ensuring ubiquitous low-cost internet connectivity, favourable policies, ease of doing business, affordable education and skilling services, low-cost debt for priority sectors.
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Red Tape vs Red Carpet –Part1
“Bureaucracies are inherently anti-democratic. Bureaucrats derive their power from their position in the structure, not from their relations with the people they are supposed to serve. The people are not masters of the bureaucracy but its clients”. - Alan Keyes
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Red Tape vs Red Carpet –Part2
In a typically bureaucratic administration, the arbitrariness of the rulers is believed to be curtailed by the existence of legal norms and regulations.
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Red Tape vs Red Carpet –Part3
The government should as far as possible set up appropriate institutions for regulation as well as good governance with checks and balances. No doubt professional and pragmatic experts with less bureaucratic approach should man these institutional mechanisms.
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Maharashtra's beef ban to boost chicken sales
"Usually (demand and prices) drop during summer months, but this year they may not, due to the ban on beef," said Abdul Azar, as he cleaned his small chicken shop.
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Future Of Energy: Sustainable Energy Development
In urban areas, idle residential or large industrial and commercial rooftops can now partake in solar heating or solar power generation, which through the net metering concept can provide additional income to its owners.
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Modi's first budget tries to deliver on promises
GO YAMADA, Nikkei senior staff writer
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RBI-govt deal on monetary policy cuts both ways; FM also has to deliver
there is no reason to believe that even the government would want to pack the MPC with yes-men who will toe the North Block line on interest rates.
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Airwaves auction off to strong start, bids near $10 billion
allocations in four different spectrum bands in an auction that the government reckons could raise $13.3 billion.
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India expects better monsoon rains this year; ‘achhe din’ for farmers on way
Good rains this year could cause the RBI to continue to take the axe to rates.
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Nation World Business Cities Sports Entertainment Lifestyle Technology Opinion Photos Videos All Sections Nation Wednesday, Mar 04, 2015 Home india india-others Regulator set to clear norms for commercial use of drones
“The useful aspects of civilian drones are well known — agriculture, wildlife conservation, search and rescue, aerial photography, perimeter security, remote monitoring of utilities such as transmission towers, pipelines, highways, railways, etc, tracking of natural disasters and, lately, doorstep delivery of products,” said Amber Dubey, partner and India head (aerospace and defence), KPMG.
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Interpreting BJP's 2015 Budget
The "Planning Commission" was renamed to "Niti Commission", all the old staff were retained, and now we're slipping back into the spending ways of the old Planning Commission.
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A framework for recovery and growth
The Finance Minister ought to have abolished PNs in this Budget to stabilise the economy. I do not know if Mr. Jaitley was even shown this legitimisation of PNs which is in the fine print of the Budget documents.
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Union Budget 2015: 12 reform themes lift Jaitley's 2nd budget out of the ordinary
In the long run these changes may be more revolutionary than the tax proposals pertaining to one year.
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India says clean energy a $160 billion opportunity over five years
U.S.-based SunEdison (SUNE.N) and First Solar (FSLR.O) have already said they would build more than 20,000 megawatts of clean energy capacity in India by 2022.
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Bloomberg to give Modi a hand with smart cities
Modi said that although the Smart Cities Initiative is challenging, it is essential to improve quality of life for India's urbanites -- with the participation of all stakeholders.
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Understanding ‘Start-Up Tax’
Granting a specified period of exemption from service tax and excise duty will be one leap in addressing this issue.
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India clears $8 bn warships project to counter Chinese navy
Since taking over last year, Prime Minister Narendra Modi has signalled his resolve to build a strong military after years of neglect that military planners say has left India unable to fight a two-front war against China and Pakistan.
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Land Acquisition Act: How India is sitting on a time bomb
The erstwhile Planning Commission never had a spatial policy and if there was one, it was to keep the rural population in rural areas as far as possible with planning for non-farm employment with doles like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme.
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FM Arun Jaitley says ongoing coal auctions to ensure cheaper power
Jaitley said the reverse auction process will ensure cheaper electricity to common man as against the practice of certain states giving power subsidy.
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Modernise Indian agriculture to face global competition: Modi
the Indian farmer is very skeptical and discerning before adopting any new techniques... He will study at depth before discarding old methods to take up modern practices," Modi said.
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The NITI gritty
Evidence-informed policy and practice could provide the NITI Aayog with a distinct and effective approach to meet its mandate. Simply put, evidence-informed policymaking is an approach that aims to integrate the best available scientific evidence into the design of public policies.
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How to reap a good harvest
Select four districts every year for the next five years, integrate all food impacting government programmes and direct them to these districts. Accept farm advisory services offered from Israel, the Netherlands, Germany and such. Although it is common knowledge that farm extension services have collapsed, its impact on farmers has not been fully grasped.
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A new menu
The proposed reforms would make our food policy more consistent with the rest of the world and avoid unnecessary wrangles at the WTO.
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A make in India conundrum
Both Rajan’s and Panagariya’s arguments fail to get the complete picture. Panagariya seems to want to use exports as a driver of employment generation for our vast pool of unskilled and semi-skilled labour, overlooking the fact that a large and growing volume of our exports now comprises of engineering goods, pharmaceuticals, software as well as components and semi-finished goods wherein skilled labour is required.
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The nuclear ‘breakthrough’ is mostly hype
The Washington Post quotes a US official saying the supposed breakthrough “is not a signed piece of paper, but a process that led us to a better understanding of how we might move forward.” Translation: lots of good intentions but no hard legal document that can end US corporate fears.
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Falling oil prices pull India's budget out of the fire
lower fuel subsidies along with recent diesel tax hikes could together add almost 1.1 trillion rupees ($18 billion) to the 2015/16 budget, and they plan to spend about 500 billion ($8 billion) of that on Modi's flagship infrastructure and manufacturing initiatives.
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Companies set to back huge India solar expansion
The rapidly falling cost of solar power, which is expected to reach parity with conventional energy by 2017, has ignited interest in its potential in India.
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Budget 2015: Modi and Jaitley must not repeat UPA's mistake
Speed, whether it comes to policy and decision-making is something both Indians and the world will expect from PM Modi.
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Macro-economic indicators favour rate cut by RBI: Bankers
The improving fiscal situation, in the wake of a record Rs 22,577 crore garnered from CIL stake sale , and weakness in manufacturing sector are among pointers towards a possible cut in rates, experts said.
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Obama backs India's ambitious solar energy goals, seeks support for climate talks
India is seeking investments of $100 billion over seven years to boost the country's solar energy capacity by 33 times to 100,000 megawatts.
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Make in India: Some lessons from Germany
All in all, more than 99 percent of German companies are SMEs. In absolute figures, that means more than 3.6 million companies, providing more than 60 percent of all jobs in Germany.
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It’s Not The Fiscal Deficit, Mr Jaitley!
The Seventh Pay Commission report is due around September, how the government deals with its recommendations will put it to test on how serious it is about putting a lid on the revenue deficit.
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Indian infrastructure Basics lie at heart of 'smart city' plan
Technology companies say making smart cities in India is significantly more complicated and time consuming than in more developed countries.
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Everything You Need to Know about NITI Aayog
The authority for creation of the Planning Commission was not derived from the Constitution of India or statute; it was an arm of the central Government of India.
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Entrepreneurship is not about boundaries: Dr Subhash Chandra
The key to success, the tycoon said, is to maintain calm in adverse scenarios.
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India clears order to ease land acquisitions in reforms push
Restrictions on buying land, under a law championed by the last Congress government, are among barriers holding up projects worth almost $300 billion.
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Flaws of Keynesian Economics
It is a logical fallacy with its roots in failing to consider all consequences of your policies, and instead focussing only on the chosen consequence.
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Microsoft CEO Satya Nadella urges Ravi Shankar Prasad to allow White-fi technology to provide Internet in villages
Facebook founder Mark Zuckerberg was the first global CEO to speak to the telecom minister for deploying alternate technology — in its case, solar drones — for last mile connectivity, followed by Google, which offered to provide inexpensive internet access across India through a network of helium-filled balloons, and now Microsoft.
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Modi orders insurance, coal reforms after hitting roadblock in Parliament
"The ordinances demonstrate the firm commitment and the determination of this government to reform," finance minister Arun Jaitley told reporters after a meeting of the Cabinet.
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Suresh Prabhu's advisory panel suggests opening up of coal sector, upgrading Coal India
The report also called for expediting reforms in the distribution sector with targeted actions including privatisation or PPP (public private partnership) in distribution.
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Modi moves in to speed up $300 billion stuck projects
By taking over the Project Monitoring Group (PMG), which was previously in the Cabinet Secretariat, Modi could help firms planning coal, power, steel and infrastructure projects cut through a maze of up to 180 clearances.
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When Will We Throw Out MGNREGA?
Why does it so happen that ceteris paribus, a person with a job is better off than a person without a job?
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No meat in pre-poll promises
Environmentalists worldwide say the world’s growing appetite for meat — especially in developing countries — contributes to water and land clearing and higher levels of greenhouse gases.
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Rapidly cooling inflation supports case for rate cut
Indian businesses have been pleading for a cut in interest rates, which are among the highest in Asia, to stimulate consumption in a domestic demand-driven economy.
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Inflation is dying: WPI hits zero percent in November and you read it here first
We have to thank falling global oil prices and slowing manufacturing – and Raghuram Rajan’s high interest rate regime – for this development.
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Living in the dark for long
This sorry state of affairs certainly trashes all tall claims of the then Chief Minister Nitish Kumar, who had promised electricity to every village in Bihar by 2015. His party, incidentally, is still in power.
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The litmus test before disillusionment sets i
There are successes to count: Handsome pledges of investment and cooperation from several important nations; US President Barack Obama accepting the invitation to be the chief guest at Republic Day 2015; Chinese President Xi Jinping’s visit; Australian Prime Minister Tony Abbot’s visit; and now Russian President Vladimir Putin’s visit,
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Russia agrees with India to construct 12 nuclear reactors
Russian President Vladimir Putin had been pushing for Rosatom to increase the number of reactors it could supply to as many as 25.
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18 non-Congress CMs back PM Narendra Modi's 'Team India' plan; Congress dubs Centre's move to rejig planning panel undemocratic
Walking on the thin line between the party stand and their own aspirations, they favoured an alternate structure be built on the edifice of the present structure and opposed changing its name.
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Winning leap: India can become $10 trillion economy by 2034, says PwC
"Nimbleness in going for new solutions and the new economy would define the future," said Shashank Tripathi, partner at PwC India
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CSR & Indian wisdom
Ancient Hindu philosophy has given the concept of the four Purusharthas, the basic objectives of human life — dharma, artha, kama andmoksha. CSR is a manifestation of dharma, the duty of human beings towards society.
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Finance Minister Arun Jaitley promises to unveil 2nd generation reforms in 2015-16 budget
Looking ahead, the Minister envisages the GDP growth to cross 6 % in 2015-16 once the effect of all the steps proposed kicks in. From thereon, "we are going to take off," he said.
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Narendra Modi moves fast to boost economic growth
the Modi administration has trimmed red tape, ended government price caps on diesel and ­allowed more foreign investment in some industries
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A rational tax policy is needed: Jaitley
Arun Jaitley promised a nonadversarial tax regime to restore investor confidence and boost growth
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India's Modinomics picks up speed on a bumpy road
The pillar of the government's industrial policy is the promotion of manufacturing through the introduction of foreign capital.It has also ventured into politically sensitive territory with proposed revisions to the Land Acquisition Act and the country's rigid labor laws.
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Centre to be ready with 500 road projects, looking for foreign loan: Gadkari
have found a way out to clear Rs 1.20 lakh crore worth of projects out of the Rs 1.80 lakh crore of projects which were almost stuck in various issues. Now, 500 projects will be ready in our shelf."
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India’s Manufacturing Activity Improves in October
business conditions improved moderately with manufacturers receiving more orders, particularly from overseas clients. Foreign orders grew at the strongest pace in four months.
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India’s public planners couldn’t end poverty, but its private sector can
moribund governance blocked India’s entrepreneurial creativity through an invasive, abortive regulatory regime.
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India’s ONGC plans $180bn spending spree
India is set to overtake China to become the largest source of growth in global oil demand by 2020, according to the International Energy Agency.
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Reuters Poll - India's growth pace to pick up as reforms draw investment
"The outlook is improving and that mostly reflects the fact that the new government has pledged to prioritise economic reforms.
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We need 7.5-8% growth for 20 yrs to address employment issue: Arvind Subramanian
you have to provide better infrastructure and create the conditions for the private sector to start coming back; private-sector investments have been declining.
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Made in India
By operating new aircraft for just six to seven years, IndiGo keep maintenance costs low, as newer aircraft, much like newer cars do not need the level of care that older planes need.
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Growing challenge from e-tailers
One of the largest consumer producing companies almost created a monopoly by merging, acquiring and edging out competitors. They have virtually more than doubled prices of products like soap cakes, toothpaste tubes and other cosmetics. A soap cake that used to cost around four rupees in 2010, today is sold at not less than Rs10; toothpaste which was priced at five rupees or less costs more than Rs15.
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Step ahead in reforms
While there is still a long way to go, critical moves have been taken to end the ‘Inspector raj’ and make it easier for employees to manage their provident fund accounts by making such accounts portable through a Universal Account Number.
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Narendra Modi selected Arvind Subramanian as chief economic adviser
He said macro-economic stability and creating favourable conditions for investment will be priorities.
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PM Modi Launches Labour Reforms Key to His 'Make-In-India' Push
The new system aims at getting rid of what is called the "Inspector Raj" or terror rule of inspectors that has hobbled industry for many years.
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Smart Cities:Some Points to Ponder
The population of the country is increasing. The requirement of electricity, fuel, water and oxygen is growing rapidly while availability of these resources is limited. It is necessary to reduce the demand of these natural resources while improving the living standards of our people.
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Headless & directionless Govt. Banks.
While the top posts are vacant, things are no better at the Executive Director (EDs) level.
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A fresh approach to financial inclusion
Making the financially excluded persons financially capable and providing them with customised feasible products would be the road ahead for financial inclusion.
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Modi's speech in the US may be a good medicine for CMs too, even if they are from rival parties
He did not leave out any topic under the sun in the four major speeches at The Madison Square Garden, The Foreign Relations Council, at The Forum of Top CEOs and Investors of America or at the UN General Assembly.
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‘Bimaru’ MP now fastest-growing state in India
Agriculture has been MP’s dynamo, averaging over 20% growth for three years. This is fabulous: rarely in history has any region consistently averaged even 10%.
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Denationalize coal, produce gas along with it
Some aspects of the Supreme Court verdict are worrisome. The allocation of coal blocks was indeed arbitrary, conferring windfalls on beneficiaries. But wasn’t this true of virtually every decision in four decades of the licencepermit raj?
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Sloppy research by Fareed Zakaria & Morgan Stanley’s Ruchir Sharma?
Zakaria, who has been accused of passing off other people’s stuff as his own, is plain wrong this time, for depending on this second-hand opinion sourced from Ruchir Sharma.
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India Today Roundtable: Get used to India that'll not bend: Ram Madhav
"The priority for the Modi government is to ensure that Indians prosper, that fruits of development reach the last man,"
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1 lakh, and counting: TCS is now top employer of women
"We have a lot of female talent in India, especially in the technology space. It's great to see that the company has been able to attract them. From 10,000 to 1,00,000, that is a growth of about 10x in 10 years,"
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If Indians aren’t investing here, will foreigners?
Big foreign investments make big headlines. Yet India itself has a savings rate of 30% of GDP, and this once touched 37%. It is contributed mainly by households and unincorporated businesses. Foreign direct investment in India is barely 1-2% of GDP.
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Banks mop up Rs 1,500 crore under Jan Dhan scheme
Under the scheme, those who are poor and do not have a bank account will be able to open a zero-balance bank account, which will be kept alive even if it is not operated.
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India on runway, must move forward: Modi
Stressing that India had passed the hour of crisis already, the Prime Minister said a number of initiatives had been taken in the fields of labour reforms, financial inclusion, skill development as well as 49 per cent FDI in defence and a proposal to raise the cap on FDI in insurance as well.
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Defence ministry scraps deal for 197 Light Utility choppers, opens it for Indian industry
the decision will bring in business worth Rs 40,000 crore to the Indian industry
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To make ‘Make in India’ happen, delete control
Get the government out of business, not just in terms of selling PSUs, but also having no arbitrary or discretionary control over individual businesses.
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Arvind Subramanian likely to be chief econ adviser
Recently, he criticised the Indian government's decision to derail a WTO deal struck last year to streamline trade procedures by tying it to a separate controversy over food subsidies.
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Good days ahead, but not round the corner
India’s early revival to near double digit growth now hinges on massive investment in infrastructure, a certain vehicle for over a trillion dollars in investment. India is seeking investment from a number of countries, including Japan, China and now Singapore, into this sector and others, and there are several other countries keen to invest, particularly now that the tangle of red-tape is being cut.
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Modi Calls for Faster Development of Defense Technology
“Keeping technology at the forefront, we need to further speed up our defense program and keep pace with the world,” Mr. Modi tweeted
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Indian firms tool up for defence orders on Modi's 'buy India' pledge
India, the world's largest arms importer, will spend $250 billion in the next decade on kit, analysts estimate, to upgrade its Soviet-era military and narrow the gap with China, which spends $120 billion a year on defence.
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Encourage innovation to pave the path to progress
the regulatory authorities need to protect patent laws in letter and spirit.
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Jaitley nudges RBI to cut rate to boost growth
central bank will take decision after taking into account various factors.
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India – A Complicated Story With Upside Drift
the methodology laid out by the government of how it plans to reduce the fiscal deficit, we can see a clear strategy of reducing current spending and increasing capital spending.
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Most protests against Subansiri dam unjustified: V K Singh
North East has the highest potential of hydro power. It costs least. The region can reap the benefit by selling power to the rest of India and also to neighbouring countries,
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Will Modi grasp the economic nettle?
In putting the country's economy back on the rails, it is best that Narendra Modi and Arun Jaitley draw on grass-roots feedback and their own practical sense and native wisdom without allowing themselves to be sucked into the quicksand of economic punditry..
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Education sector's link to black money
Speculations are that a big part of this money goes to politicians and bureaucracy as a large number of institutes are owned, controlled and managed by politicians and business houses
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India vows action, warns hoarders after May inflation spike
The government "is committed to take measures which will positively impact the GDP and result in higher growth than expected. I am hopeful that the inflation which is moving upwards now would eventually come down, said Jaitley.
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