WEEKLY ECONOMIC BULLETIN

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1 Issue No 686 I July 26-August 01, 2016 ITP Division Ministry of External Affairs Government of India p. 02/04 p. 05/06 NEWS FEATURE PM reviews NITI Aayog vision document, pushes for innovation The 15-year long term plan Vision Document prepared by NITI Aayog has drawn out ambitious plans for the country s development, towards eradicating poverty and achieving targets of sustainable development, Vice Chairman of the plan body Arvind Panagariya said. Modi calls for transformational rather than incremental change Prime Minister Narendra Modi on Thursday called for a transformational change for bettering the lives of the people, saying judicious use of India s resources will be at the heart of this change in the country. More in this section OVERSEAS INVESTMENTS Zen Technologies gets Rs 30 crore export order from Egypt Zen Technologies Limited, a pioneer in simulation technology-based training solutions, on Thursday announced it had bagged an export order of Rs 30 crore, its biggest ever, from the Defence Ministry in Egypt. Indian telecom firms to pitch for executing more projects in Bangladesh India on Tuesday asked Bangladesh to utilise the services of Indian companies in executing telecom projects in the neighbouring country, an official statement said here. More in this section p. 07/08 p. 09/10 p. 11/11 SECTORAL NEWS Over 7 lakh school teachers equipped with IT skills in India: Microsoft Microsoft has so far equipped more than 7.7 lakh government school teachers with IT skills across 12 states in India under its Project Shiksha programme launched in 2003, the tech giant said on Friday. More in this section TRADE NEWS Foreign investment inflows jumped 53% in 2 years: Government India saw a record 53 per cent increase in foreign direct investment (FDI) in the last two years owing to steps taken to foster growth, investment climate, price stability and fiscal prudence, the government told the Lok Sabha on Friday. More in this section NEWS ROUND-UP 60% of Indians will live in Urban areas by 2050: Government The central government on Wednesday said about 60 per cent Indian population will live in cities by More in this section

2 2 >> NEWS FEATURE PM reviews NITI Aayog vision document, pushes for innovation The 15-year long term plan Vision Document prepared by NITI Aayog has drawn out ambitious plans for the country s development, towards eradicating poverty and achieving targets of sustainable development, Vice Chairman of the plan body Arvind Panagariya said here on Thursday even as Prime Minister Narendra Modi urged the panel to lay a foundation for growth. At a meeting of the NITI Aayog, Prime Minister Modi directed the panel - also called a policy research arm of the government after dismantling of the Planning Commission, to shed the past. Prime Minister said I am a person who does experiment and I have confidence this shows results, Panagariya told reporters after Modi reviewed the Aayog s Vision Document at a highlevel meeting. The NITI Aayog should strive to excel and come out to take new challenges and Vision Document should lay the foundation of the 21st century for India, an official source later said quoting the Prime Minister. Prime Minister has stressed on transformational changes rather than having incremental changes, the source told IANS. Modi, also an admirer of new technology and innovation, said that there is a need to win the war of policies and chase things according to the technological demands. We won t speculate on the vision document, many issues have been raised for the first time. We have an ambitious vision, Panagariya said. We had a good meeting with Prime Minister for over two hours, he desired to review our flaws in the planning system, he said. Prime Minister Modi, who is Chairman of NITI Aayog, reviewed the progress made by the policy research arm of the government and suggested remedial measures. Asked whether the Vision Document will be approved by the NITI Aayog Governing Council, Panagariya said no decision has been taken on this. The Council is headed by the Prime Minister with all Chief Ministers on its board. Modi urged NITI Aayog to take inspiration from events such as the success of the Give-it-Up campaign. This experience shows that people are not only interested in benefits for themselves as experts would feel. It proves that people are motivated by the larger public good, he said. The meeting was also attended by the Minister of State for Planning Rao Inderjit Singh, members of the NITI Aayog, besides senior officials from the NITI Aayog and Prime Minister s Office.

3 3 >> NEWS FEATURE The vision document and action plan of NITI Aayog and their review have become important because by the end of fiscal , the 12th Five Year Plan prepared by the now-defunct Planning Commission comes to end. Set up in January 2015, the NITI Aayog was mandated by the Prime Minister and the Governing Council to come up with a 15-year vision document for a period up to The NITI Aayog was also assigned to working on a 7-year strategy starting from to to convert a vision document into implementable policy. It is also to work on a 3-year action plan for to as part of the National Development Agenda. This has been linked to the 14th Finance Commission award period. According to Panagariya in his address, PM Modi has underlined that the vision document should not be treated only as a vision document for 15 years but it should lay down the foundation of an entire century. Among other issues, PM stressed that there is a need to make an exhaustive list of untapped natural resources, the potential of which should be and can be exploited. Modi also pointed out that there is a need to make states equal partners in economic and social development and also that plans should aim at strengthening states - which ultimately can go a long way in creating a strong India. We need to think of multiple utility of existing institutions and resources in to benefit maximum number of citizens, the Prime Minister said. For its part, in the presentation made by NITI Aayog Vice-Chairman emphasis was given on enlisting the services of experts from different fields. Increased complexity of the economy has meant that as a general rule, it is no longer possible for generalists to learn any subject within a matter of weeks, Panagariya said in presence of the PM. Panagariya said that the Aayog will be cautious enough not to be bogged down by the legacies of past and will avoid repeating some of the mistakes of the Planning Commission. Modi in principle said even for export potential, suggestions should come from the states and the Centre then can play a role of a catalyst.

4 4 >> NEWS FEATURE Modi calls for transformational rather than incremental change Prime Minister Narendra Modi on Thursday called for a transformational change for bettering the lives of the people, saying judicious use of India s resources will be at the heart of this change in the country. The time for incremental change, that was the norm across the world for quite some time, is now over. The current age is one that requires transformational change, Modi said while laying the broad contours of India s development path, during a meeting with NITI (National Institution for Transforming India) Aayog members. Judicious and intelligent application of India s natural and human resources will be at the heart of this change. He said Indian policy-makers in the past tended to lament the constraints rather than play on the country s strengths. Modi said the intentions (niyat) of the policy-makers were even more important than the policies (niti) themselves. He asserted that his government had the courage and the ability to deliver transformational change for bettering the lives of the people. He also said: Historically, Indian policy-makers had tended to lament its constraints rather than play to its strengths. Modi highlighted the importance of technology as an emerging driver of change over the last three decades and asserted that this pace of change will not slacken. Stressing the need to build capacities for good governance, he highlighted the importance of real-time data availability. Giving several illustrations of this theme, he mentioned use of available land, the country s mineral wealth, and vast untapped solar energy potential. India has made sub-optimal use so far of its vast coastline, he added. Modi on Thursday called upon the NITI Aayog to create a vision document to chart a roadmap for India s development for the next 15 years, and also lay the foundation for the country s growth over the next decades of the 21st century. He urged the NITI Aayog to take inspiration from events such as the success of the Give-it-Up campaign, and the widespread positive response from the people to the Swachh Bharat Abhiyan. Talking about human resource development, Modi said: Focused skill development is vital, as India has the potential to fulfil the global requirement of human resource in the future. He also stressed on the development of India s tourism potential. Partnership with states for promoting development and boosting exports is not just an element of cooperative federalism, but also the need of the hour, he added. Turning to agriculture, Modi said: The focus cannot be on increasing agricultural productivity alone, but should be on the overall development of a vibrant rural economy.

5 5 >> OVERSEAS INVESTMENT Zen Technologies gets Rs 30 crore export order from Egypt Zen Technologies Limited, a pioneer in simulation technology-based training solutions, on Thursday announced it had bagged an export order of Rs 30 crore, its biggest ever, from the Defence Ministry in Egypt. The client chose Zen Technologies to provide a range of training equipment, including Smart Target Systems. Zen emerged as the front runner against tough international competition from global companies, the Hyderabadbased company said in a statement. Zen Technologies has, over the years, emerged as a strong player in the field of defence training simulation in India and endeavours to expand its presence abroad, specifically in the Middle East and Africa. The order from the Egyptian government is a reflection of our commitment towards providing the best training tools to security forces to tackle and neutralise both external and internal threats, said Ashok Atluri, CMD, Zen Technologies. He said ministries of defence of different countries have been showing intense interest in Zen s training solutions, especially Combat Training Centre.

6 6 >> OVERSEAS INVESTMENT Indian telecom firms to pitch for executing more projects in Bangladesh India on Tuesday asked Bangladesh to utilise the services of Indian companies in executing telecom projects in the neighbouring country, an official statement said here. New Delhi has already offered line of credit worth $2 billion to Dhaka and Indian companies including Tejas have successfully completed pilot projects in connecting 100 union parishads (gram panchayats) in Bangladesh and has pitched for executing 1,000 such projects. This was conveyed to the visiting Bangladeshi delegation led by State Minister for Posts and Telecommunications Tarana Halim, who called on the Union Minister of Communications Manoj Sinha in New Delhi this morning, the statement said. œboth the sides stressed the need for effective cooperation considering the borderless nature of cyber threats and issues and similar challenges faced by the two countries. India suggested that a Nodal officer may be nominated from Bangladesh for effective and timely cooperation on cyber security matters, it added. Indian companies have also offered to share technology and to impart skill training. Sinha said through technology transfer, Centre for Development of Telematics (C-DoT) could help strengthening Bangladesh telecom network and rural population encouraging local manufacturing. He also suggested to Halim that there is a need for an increased number of postal surface mail exchange points between the two countries as, at present, surface mails are exchanged only at one point (Petrapole-Benapole), while other exchange points like Akhaura-Agartala, Tamabil-Karimgong, Burimari-Changrabandha, and Hilli-Hilli may be considered. This was already discussed in a bilateral meeting in February this year.

7 7 >> SECTORAL NEWS Over 7 lakh school teachers equipped with IT skills in India: Microsoft Microsoft has so far equipped more than 7.7 lakh government school teachers with IT skills across 12 states in India under its Project Shiksha programme launched in 2003, the tech giant said on Friday. The Microsoft India Citizenship Report highlights the achievements of Microsoft s citizenship initiatives that include Project Shiksha, Project Saksham, Project Jyoti and YouthSpark programme. Project Saksham has reached out to 81 state/central universities across 24 states training over 3,800 faculty members, since its launch in 2011, the report said. Aimed at developing skills among youth from under-privileged communities to drive employability and entrepreneurship, Project Jyoti helped establish over 1700 enterprises run by youth in the country. In , over 30,000 young adults received training, 70 per cent of who got gainful employment or are self-employed and over 900 youth enterprises were established, the report added. Microsoft is also running digital literacy initiatives under the YouthSpark programme for marginalised communities, with a special focus on girls and young women. The company also partnered with several institutions of higher education in the country towards skilling youth for employment. Programmes like BizSpark, DreamSpark and Imagine Cup have been immensely successful in driving entrepreneurship and innovation among the youth, Microsoft said.

8 8 >> SECTORAL NEWS Rs 4,000 crore to be invested in Tripura for road, infra development Ministry for Road, Transport and Highway (MoRTH) has planned to invest around Rs 4,000 crore for the development of highways and infrastructure in Tripura, said an official statement. The work will be executed by the state Public Works Department and the National Highways and Infrastructure Development Corporation Ltd ( NHIDCL). The state has 853 km of National Highways, of which 731 km are with the State PWD and 122 km with NHIDCL, said the statement. Four projects are currently on in the state, with a total length of 147 km and total project cost of Rs 1,162 crore. One project with a length of 24 km and total project cost of Rs 42 Crore is likely to be awarded in next three months, and another 3 projects with a length of 110 km and cost of Rs 470 crore are under planning and various stages of award. These are likely to be awarded in the next one year, added the statement. Under the Central Road Fund (CRF), Rs crore have been allocated to the state during Twelve projects amounting to Rs 57 crore have been sanctioned under the scheme. Four new National Highways have been declared in the state with a length of 388 km. According to the ministry, some of the important projects include Agartala - Khowai, which is a new highway with a length of 55 km. The ongoing projects include Agartala - Udaipur which has 48 km with a cost of Rs 369 crore, being implemented by NHIDCL and due for completion in 2018 and Udaipur Subroom highway which has a length of 74 km and project cost of Rs 498 crore and is due for completion in 2018, said the statement.

9 9 >> TRADE NEWS Foreign investment inflows jumped 53% in 2 years: Government India saw a record 53 per cent increase in foreign direct investment (FDI) in the last two years owing to steps taken to foster growth, investment climate, price stability and fiscal prudence, the government told the Lok Sabha on Friday. Finance Minister Arun Jaitley said during Question Hour that comprehensive reforms in FDI have resulted in the highest ever FDI inflow in , adding that the increase over two years has been to the tune of 53 per cent. Steps taken by the government to foster economic growth, price stability and fiscal prudence have improved the overall macroeconomic stability, which brightens the investment climate in the country, he said. Jaitley was responding to a query on the amount of money foreign investors would have taken back by way of dividends and royalties, and he said that if we say that profits cannot be taken, then nobody will come to invest. He said that both foreign and domestic investors needed a reasonable and predictable tax regime.

10 10 >> TRADE NEWS Nissan Motor India earns $4.35 bn exporting cars The Indian subsidiary of Japanese car maker Nissan Motor has earned over Rs 30,000 crore ($4.35 billion) in foreign exchange, Nissan Motor India said on Thursday. In a statement, Nissan Motor India said since 2010 when it started operations in India, over 620,000 cars were exported to over 100 countries and it earned foreign exchange revenue of Rs 30,000 crore. The company gets its models made at Renault-Nissan Alliance s joint venture car plant near here. Our strategy has been to use exports to build a significant presence in India with our plant, the largest and most advanced in the Alliance, and our R&D (research and development) centre which employs 5,000 engineers, Gulaume Sicard, President, Nissan India Operations, was quoted as saying.

11 11 >> NEWS ROUND UP 60% of Indians will live in Urban areas by 2050: Government The central government on Wednesday said about 60 per cent Indian population will live in cities by It is estimated that by 2050, 60 per cent population of the country will live in cities as the rate of urbanisation in India is dramatic, Union Minister of State for Urban Development Rao Inderjit Singh told the Lok Sabha during question hour. He said according to 2011 Census, nearly 31 per cent of the country s population resides in urban areas, and a large number of people would migrate to cities in coming decades. But he maintained that the National Democratic Alliance (NDA) government has drawn up plans and under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) steps will be taken to strengthen big cities first and infrastructure and other facilities will be strengthened in smaller cities in the second stage. AMRUT provides for improvement of basic urban infrastructure like water supply, sewerage, storm water drainage, urban transport and development of green space and parks with special provision. He also said that states and Union territories can raise funds required against their share through own resources or through the World Bank or foreign financial institutions. Some of the broad targets of AMRUT scheme -- launched by Prime Minister Narendra Modi in are ensuring access to tap water and sewerage facilities, greenery like parks and open spaces, digital and smart facilities like weather prediction, internet and WiFi facilities, and pollution reduction by encouraging secure public transport.

12 DISCLAIMER This newsletter is compilation of news articles from various business-e-newspapers and in no way is an endorsement or reflection of Ministry of External Affairs views. Designed & Developed by IANS Publishing