Railways were now less dependent on budgetary support than five years earlier due to the efforts of Lalu Prasad in making the sector financially self-reliant, Finance Minister Pranab Mukherjee said on Saturday.
The Prime Minister Economy Advisory Council has projected a mere two per cent growth in the sector for the current year. Earlier in August, PMEAC had projected the agriculture production to grow at a lower pace of two per cent in the current year as against 4.5 per cent in 2007-08.
"Second quarter will be worse (than 6.1 per cent growth in Q1) and may be Q3 also," Planning Commission Deputy Chairman Montek Singh Ahluwalia said today after the full plan panel meeting. However, he said the economic growth will rebound in the fourth quarter to enable the economy to clock 6.3 per cent for the entire fiscal.
The panel also said the decline in exports would slow down after 2010 when the developed economies would return to positive growth. India's exports are on a down slide since October 2008, because of the global slump in demand. In 2008-09, the country's overseas shipment grew by meagre 3.4 per cent to about $168 billion compared to the same period last year.
The agriculture growth slowed down to 2.4 per cent in the April-June quarter this year from 3 per cent in the same quarter last year.
Chairman of the Economic Advisory Council to the Prime Minister Suresh D Tendulkar, as well as other member of the apex panel submitted their resignation on Tuesday.
While Lalu's chances of retaining Cabinet berth seems remote, experts believe there may not be too many new faces as far as important ministries are concerned.
Food security for all was a poll promise from the ruling Congress party before this year's general elections.
Breaks self-imposed rule never to return to an office he has occupied in the past.
The 'golden share', which will be owned by the government, will ensure that it has a say in all major decisions taken by the private concessionaire. It will also obviate the need for the government to invest in the equity of the company. The proposal has been mooted by the Planning Commission in the new model concession agreement that it has developed for the infrastructure sector. The agreement has been circulated among various stakeholders for consultation.
Setting at rest speculation about the possibility of tax cuts to boost growth, the Planning Commission Deputy Chairman Montek Singh Ahluwalia on Tuesday said the government will not change the tax structure during the current fiscal, ending March 31.
The Planning Commission on Saturday approved the draft integrated energy policy, which seeks to implement market-based pricing and bring about better coordination among ministries.
India is expected to record a gross domestic product (GDP) growth rate of 6 per cent this fiscal, which will improve further in the next fiscal with likely recovery in the global economy, Planning Commission Deputy Chairman Montek Singh Ahluwalia said.
There are wide spread speculations in corridors of power in the Capital that Deputy Chairman of Planning Commission Montek Singh Ahluwalia may take over as the next finance minister of India.
After failing to get bids for over half of its highway projects last year, the National Highways Authority of India (NHAI) has decided to put up 19 highway projects worth Rs 23,805 crore for rebidding next month through a new short-listing process.
With the inflation rate almost halving from the peak levels in August and economic growth slackening, Planning Commission Deputy Chairman Montek Singh Ahluwalia today said there is further scope for the Reserve Bank of India to cut lending rates.
Calling for 'fundamental restructuring' to put India back on its growth trajectory, McKinsey said on Wednesday that the country will run out of capital to support economic expansion.
Planning Commission Deputy Chairman Montek Singh Ahluwalia, on Wednesday allayed fears over significant hardening of interest rates in view of the high government borrowings, pegged at around Rs 4.5 lakh crore (Rs 4.5 trillion) this fiscal.
Was Manmohan Singh focused too much on getting policy right, while Narendra Modi is focused essentially on getting projects moving?
Planning Commission deputy chairman Montek Singh Ahluwalia said on Thursday that inflation would go up and hover between 4 and 5 per cent by the end of this year.
The issues concerning growth and Mid-Term Review of the 11th Plan came up for discussion at the first meeting of the newly constituted Planning Commission. The 11th Plan had set an average economic growth target of 9 per cent for 2007-12. Although the economy during 2007-08 expanded by 9 per cent, growth plummeted to 6.7 per cent during 2008-09 on account of the impact of the global crisis.
Planning Commission Deputy Chairman Montek Singh Ahluwalia Thursday said there is no reason why India, despite the current global financial turmoil, could not get back to earlier high growth path if it can step up domestic investment demands.
Planning Commission Deputy Chairman Montek Singh Ahluwalia Thursday said there is no reason why India, despite the current global financial turmoil, could not get back to earlier high growth path if it can step up domestic investment demands.
The Prime Minister's EAC is expected to give its outlook on economy for the current fiscal in a week's time.
The luncheon at his residence was attended by Planning Commission Deputy Chairman Montek Ahluwalia, Chairman of PM's Economic Advisory Council C Rangarajan, former RBI Governor Bimal Jalan, Foreign Secretary Shiv Shanker Menon and officials of the Prime Minister's Office.
Planning Commission to ask Prime Minister's Office to intervene.
India can now, if required, borrow up to $30 billion a year, up from $6 billion, from the International Monetary Fund for a three-month period which can be renewed twice more in 3-month cycles.
The principal Opposition party said an immediate cut in petrol and diesel prices was required in the larger interest of the nation. The BJP also demanded that interest rate on housing loans be brought down to 6 per cent and a real push be given for infrastructure development to 'avoid a catastrophe'.
The minister further said another industry chamber Federation of Indian Chambers of Commerce and Industry too had contradicted the Assocham study, which had said that in the next 10 days or so about 25 to 30 per cent employees are likely to lose jobs in seven sectors including aviation, information technology, steel, financial services, real estate, cement and construction.
Giving the much needed impetus to the development of science and technology in the country, Centre has allocated Rs 75,000 crore (Rs 750 billion) in the 11th plan, three times more than the preceding plan period, Planning Commission for Science and Technology member V L Chopra said on Tuesday.
Labour and Employment Minister Oscar Fernandes said about 400 government ITIs are also being upgraded under World Bank assistance and about 100 through domestic funding. Besides, about 1,396 government ITIs are being upgraded through PPP mode.
T C A Srinivasa-Raghavan recalls a tussle between the government and RBI when Rajiv Gandhi was prime minister and how it was resolved.
In a note, titled 'IIFCL financing for PPP projects,' sent to Prime Minister Manmohan Singh, Ahluwalia wrote, 'It was pointed out in the meeting that the term of the current CMD (chairman and managing director) of IIFCL ends on March 10. The FS (finance secretary) had indicated that the term can be extended. Action on this front should be expedited to avoid loss of momentum.'
Talking to reporters accompanying Prime Minister Manmohan Singh on his US visit, the deputy chairperson of the Planning Commission Montek Singh Ahluwalia said the trend of constant rising inflation in India was disappearing. Maintaining that the financial meltdown in the US has not had a direct impact on India, Ahluwalia said the country had an ample stock of foreign exchange reserves to deal with the temporary meltdown in financial markets.
A core group of ministers on Wednesday held inconclusive deliberations on a proposal to raise fuel prices, necessitated by a spike in global crude prices that threatens to spawn an oil import crisis.
The campaign aims to raise 1.25 billion pounds, and begins at a high profile international event in London on Wednesday. The launch event at the British Academy features the university's chancellor Lord Chris Patten, and vice-chancellor John Hood. Oxonians from various fields and countries have been roped in to raise funds that will be used to meet rising costs and steep competition from American universities.
Ahluwalia argues that India can attract more capital even in today's world, provided the country retains an open system
With industrial production contracting by 0.4 per cent in October, for the first time in 15 years, and the exports declining by over 12 per cent during the month, the government came out with a stimulus package on December 7 to spur growth and help the industry combat the impact of global financial meltdown. As part of the stimulus package, the government cut excise duty by 4 per cent across the board, except on petroleum products.
The economy, otherwise, is likely to expand by 6.3 per cent in the current fiscal, aided by stimulus packages and United Progressive Alliance's flagship programme National Rural Employment Guarantee Scheme, the report said. The report, prepared by Commission member Kirit Parikh views the measures announced in the interim budget as increase in public consumption and public investment.
In other welfare schemes, such as those for cooking gas, pension and scholarships, which are linked to DBT, cash is transferred directly into the bank accounts of beneficiaries.
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