Académique Documents
Professionnel Documents
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Presented by
Shabeer Babu
Roshni Suresh.P
TOPICS TO BE COVERED
INDIAN SCENARIO ECONOMIC SURVEY GOVERNMENT POLICIES GOVERNMENT FINANCE PUBLIC AND PRIVATE SECTOR INVESTMENT
Introduction
"Today India is among the most attractive
Overall growth in the Index of Industrial Production (IIP) was 4.1 per cent during August 2011.
The eight core Infrastructure industries grew by 3.5 percent in August 2011 and by 2011-12, these sectors increased by 5.3 per cent. Exports and imports in terms of US dollar increased by 44.3 per cent India reclaimed its position among top 10
ECONOMIC SCENARIO
India expected to remain among the top five attractive destinations for
US$ 320 billion for the week ended October 28, 2011, on account of revaluation
of foreign currency assets.
India currently holds the 12th position in Asia and 68th position in the overall list world's most attractive tourist destinations, as per the Travel and Tourism Competitiveness Report 2011 by the World Economic Forum (WEF).
INVESTMENT ENVIRONMENT
PUBLIC SECTOR BANK CAPITALISATION 6,000 crore to be provided during 2011-12 to enable public sector banks to maintain a minimum of Tier I CRAR of 8 per
cent.
3,000 crore to be provided to NABARD to provide support to handloom weaver co-operative societies which have become financially unviable due to non-repayment of debt by handloom weavers facing economic stress.
Public sector banks to achieve a target of 15 per cent as outstanding loans to minority communities under priority sector lending at the earliest
OPPORTUNITIES Swift and broad based growth in 2010-11 has put the economy back to its precrisis growth trajectory. Fiscal consolidation has been impressive. Significant progress in critical institutional reforms that would set the pace for double-digit growth in the near future. Dynamism in the rural economy due to scaled up flow of resources to the rural areas.
CHALLENGES
Structural concerns on inflation management to be addressed by improving supply response of agriculture to the expanding domestic demand and through stronger fiscal consolidation. Implementation gaps, leakages from public programmes and the quality of outcomes pose a serious challenge.
Impression of drift in governance and gap in public accountability is misplaced. Corruption as a problem to be fought collectively. Government to improve the regulatory standards and administrative practices. Inputs fom colleagues on both sides of House are important in the wider
national interest.
Budget 2011-12 to serve as a transition towards a more transparent and result
Continued high food prices have been principal concern this year.
Consumers denied the benefit of seasonal fall in prices despite improved availability of food items, revealing shortcomings in distribution and marketing systems.
Monetary policy measures taken expected to further moderate inflation in coming months.
Exports have grown by 29.4 per cent, while imports have recorded a growth of 17.6 per cent during April to January 2010-11 over the corresponding period last year.
Fiscal consolidation targets at Centre and States have shown positive effect on macro economic management of the economy.
Proposal to introduce the Public Debt Management Agency of India Bill in the next financial year.
GOVERNMENT FINANCE
In specific terms, the following major fiscal concessions were granted:
Full exemption from basic customs duty and special additional customs duty for ground source heat pump to tap geo-thermal energy. Full exemption from excise duty on additional specified raw materials for the manufacture of rotor blades for wind-operated electricity generators. Mono Rail Projects for urban transport granted project imports status with concessional rate of 5 per cent basic customs duty. Concessional customs duty rate of 5 per cent presently available up to 6 July 2010 on specified machinery for tea, coffee, and rubber plantations extended up to 31 March 2011. Excise duty exemption has also been reintroduced on these items up to 31 March 2011.
The rates were increased in following areas: Excise duty on petrol and diesel was increased by 1 per litre so as to restore it to pre-June 2008 levels. Full or partial excise duty exemptions/ concessions available on some items were withdrawn and duty imposed on them at the rate of 4 per cent or 10 per cent. Excise duty on cigarettes and other tobacco products was increased. Customs duty was increased on crude petroleum from nil to 5 per cent; petrol and diesel from 2.5 per cent to 7.5 per cent; and other specified petroleum products from 5 percent to 10 per centonce again to restore these duties to pre-June 2008 levels.
Customs duty on gold, silver, and platinum increased by 50 per cent of the earlier applicable specific rates. Ad-valorem component of excise duty on large cars, multi utility vehicles, and sports utility vehicles was increased from 20 per cent to 22 per cent.
GOVERNMENT POLICIES
The government has both owned a large proportion of industrial establishments and has tightly regulated the private sector. From the late 1970s, the government sought to reduce its role, but progress remained slow throughout the 1980s.
The Congress government that came to power in June 1991 had a renewed commitment to cutting back the role of government, and in the mid-1990s the liberalization program made progress, although many uncertainties remained about its
implementation.
The Industrial Policy Resolution of 1948 gave the government the go-
ahead to build and operate key industries, which largely meant those
producing capital and intermediate goods The industrial policy resolutions of 1948 and 1956 delineated the lines
between the public and private sectors and stressed the need for a
large degree of self-sufficiency in manufacturing, the basic strategy that guided industrialization until the mid-1980s
Tariffs and quantitative controls largely kept foreign competition out of the domestic market, and most Indian manufacturers looked on
In the 1980s and early 1990s, India began increasingly to remove some of the controls on industry. Nevertheless, in the mid-1990s, there were state monopolies for most energy and communications production and services, and the state dominated the steel, nonferrous metal, machine tool, shipbuilding, chemical, fertilizer, paper, and coal industries.
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