Underlining the huge potential for enhancing commercial and investment exchanges between India and Russia, President Pranab Mukherjee has said that new opportunities arising between the two economies should be fully tapped. Speaking at a reception hosted on May 9 by India’s ambassador to Russia P.S. Raghavan for the Indian community here, Mukherjee said the last 15 years have seen a qualitative change in India’s relations with Russia. “With the signing of a declaration on India- Russia strategic partnership in October 2000, India established perhaps its closest institutionalized ties with any foreign country. This association has since continued to grow and diversify into newer areas,” an official statement on Sunday cited Mukherjee as having said. Mukherjee said India today terms its relationship with Russia as “a special and privileged strategic partnership” in recognition of the multi-faceted bilateral engagement. He said the Indian community in Russia has contributed significantly to development of close ties between India and Russia. The president noted that interaction between the two countries at the people-to-people level have always been warm and friendly. “This has been exemplified by Russian interest in Indian cinema, culture and heritage and the popularity in India of Russian literature, arts, circus and sciences.” He said total trade between India and Russia was $6 billion annually, which is less than one per cent of India’s total trade of $765 billion. FDI inflows into India in the past 15 years have been to the tune of $246 billion, out of which only $1 billion has come from Russia. “Given the size of the economies of both the countries, there is huge potential to enhance commercial and investment exchanges. The synergies and new opportunities arising between the two economies should be fully utilized,” he said. Mukherjee said that Indian community in Russia, “as repositories of unique information and insights about India and Russia”, can play an important role in propelling economic ties between the two countries to a higher trajectory.

Prime Minister Modi bats for ‘Team India’ of centre and states

Pitching for a “Team India” of the centre and states for the country’s development, Prime Minister Narendra Modi on May 11 credited his government’s economic policies for making India the world’s fastest growing Anation. Concluding his two-day visit to West Bengal - the first after becoming prime minister - Modi assured his government’s support in ensuring economic progress of eastern India, and exuded confidence that region will be the stage for the country’s second green revolution. The prime minister, who started the May 10 morning on a spiritual note, praying and meditating at the Dakshineswar temple and the Belur Math, later inaugurated the country’s largest blast furnace plant in Burdwan district. Modi became the first prime minister to visit the age-old Dakshineswar temple, where he touched the feet of goddess Bhabatarini, performed arti and paid homage to the 19th century ascetic Ramakrishna Pramahamsa, who had spent years as its priest. His next destination was Belur Math, the global headquarters of the Ramakrishna Math and Ramakrishna Mission, in neighbouring Howrah district. During a hour-long stay, Modi meditated at ascetic- philosopher Swami Vivekananda’s bedroom, and paid homage at the temples dedicated to Ramakrishna Pramahamsa, Swami Brahmananda, Ramkrishna’s consort Sarada Devi and Viveknanada. Heading to Burnpur, Modi, in the presence of Chief Minister Mamata Banerjee, inaugurated the upgraded and modersnised IISCO Steel Plant (ISP), that houses the country’s largest blast furnace. It has been modernized at a cost of Rs.16,000 crore. Highlighting the country’s federal structure, Modi described the prime minister and all the chief ministers as ‘Team India’, and said the centre and states together can solve all problems, including issues relating to foreign countries. He attributed Team India’s efforts for the passage in parliament of the Land Boundary Agreement with Bangladesh as well as the new plant. “This modern plant is an example of how Team India will take the country forward. This plant which was sick is now standing powerfully on its feet. If the chief minister (Banerjee), the state (West Bengal) government had created hurdles, this wouldn’t have been possible,” said Modi. Praising Banerjee for stressing on improved centre-state relationship, he said his government, after assuming power, had been endeavouring to strengthen the country’s federal structure. Modi said: “While the constitution provides a federal structure, for years there has always been tension in centre-state relationships. Those at the centre ignored the states. “That’s why we endeavoured to strengthen the federal structure and asserted that Delhi will not govern the country alone but all the states together will.” Modi also thanked Assam, Meghalaya, Mizoram, Tripura and West Bengal for the passage of the key constitutional amendment bill to give effect to the swapping of border land enclaves between India and Bangladesh under a 1974 agreement. “If international issues can be solved by ‘Team India’, then issues at home can be dealt with ease.” Taking a veiled dig at the erstwhile Congress-led UPA regime for scams, Modi hailed the policy changes initiated by his government that led to India becoming the world’s fastest growing country. “During the months of February, March and April (2014) the only news that came were scams... coal scam, submarine scam, scams on the air, water and land,” he said. “It has been a year of this new government, and today we don’t have news about the coal scam, rather about coal auction,” he said, adding the decision to auction coal has led to states getting richer and using the royalty money from the mines for the welfare of the people. “We also decided that the money from the auctions will not go to Delhi but to that state’s coffers so that the government can initiate welfare of that state,” said Modi. He said a foundation was set up from the mines royalty for the welfare of the states. The prime minister also expressed anguish over India importing steel. “The irony is we kept exporting iron ore and imported steel. If we have iron ore, we will produce steel,” he asserted. Modi also said the central government was working on developing the three main resources for funds - agricultural productivity, mineral resources and human resources. “A year ago the entire world had written off India but now within a year the entire world, be it the IMF, the World Bank or the credit rating agencies, they are unanimously saying India is the fastest growing country in the world,” he asserted. He also exuded confidence of natural resource-rich eastern India getting developed like its western counterpart. “States in eastern India are filled with natural resources but still lag behind... eastern India needs to be strengthened... I clearly see the second Green Revolution happening here... it has abundance of water, land and people. It can usher in the revolution,” he said.

Aim to empower poor as Tagore wanted: Modi at new schemes launch

Expressing his government’s resolve for “empowering the poor instead of aiding them”, Prime Minister Narendra Modi on May 9 launched three ambitious social security schemes, relating to the insurance and pension sector and intended at widening the process of financial inclusion. On his first visit to West Bengal after taking over as prime minister, Modi kickstarted the “Pradhan Mantri Suraksha Bima Yojana” (accident insurance), “Pradhan Mantri Jeevan Jyoti Yojana” (life insurance) and “Atal Pension Yojana” at a programme in Nazrul Manch here. Governor K.N. Tripathi, Chief Minister Mamata Banerjee, and union ministers Jayant Sinha and Babul Supriyo attended the function where Modi inaugurated a plaque by pressing a remote button to launch the schemes. The initiative was simultaneously launched throughout the country from 115 locations. An film was then shown highlighting salient features of the three schemes. Modi then handed out certificates to the first three subscribers - maid Sonali Dhar, farmer Nitai Mondal and widowed shop owner Ruma Chakrabarty. Claiming that 80-90 percent of the country’s population did not have any insurance or pension cover, Modi asserted the new schemes were meant for empowering the poor to enable them to fight poverty. Describing himself as the prime servant, Modi asserted the schemes were not aimed at votes or political gains. “I am not a politician, only the pradhansevak (prime servant). Unlike others who launch schemes for votes, these schemes are not meant for political gains. After 20 years or so when people will reap the benefits of the pension scheme, they will say, Modi did some good work,” he said. Launched on the day marking the 154th birth anniversary of Rabindranath Tagore, Modi said the new schemes targeted at the poor and workers from the unorganized sector, were reflective of the Nobel laureate’s vision for empowering the poor. “Tagore in his poem ‘Atmadan’ in 1906 has observed that the poor don’t need support, they need to be empowered. His words are relevant even today. Today our resolve is to carry out that order of Gurudev,” he said. Stressing on his government’s commitment towards poverty alleviation, Modi said the new initiative was an extension of the Jan Dhan Yojna in which over 15 crore bank accounts have been opened across the country. He also claimed that over Rs.15,800 crore have been deposited by the beneficiaries under the Jan Dhan Yojna, and said the initiative has helped in plugging pilferage of lakhs of crores of rupees given in subsidies. He said over five crore people including 42 lakh from Bengal have enrolled for the three schemes since enrolment process’ trial run began May 1. “It’s a myth that big corporates usher in economic revolution... the country’s financial system is run by the small entrepreneurs.  “Those who sell vegetables on the street junction.. the washerman, tea stall owners.. in India, there are 5.5 crore such people, who give momentum to our financial system. Big industrial ventures give employment to very few people. “But these 5.5 crore small time businessmen provide living for 14 crore people,” said Modi stressing on the importance of the target population of the new schemes. He requested people to enlist the poorer section of the society under these schemes which will help them secure their future and family. “Give Rs. 12 from your own pocket to insure your driver, cook, liftman, housemaid or sweeper for their benefit. (If you do so), will they ever leave you,” he said. The accident insurance scheme envisages cover of Rs.200,000 for accidental death or permanent total disability at an annual premium of Rs.12. It is available to those aged between 18 to 70 years with a savings bank account, giving their consent to join and enabling auto-debit on or before May 31 for the coverage period - June 1 to May 31 - on an annual renewal basis. The life insurance scheme will offer a renewable one year life cover of Rs.200,000 to all savings bank account holders aged 18 to 50, covering death due to any reason, for an annual premium of Rs.330 per subscriber. The pension scheme focuses on the unorganised sector and provides subscribers a fixed minimum pension of Rs.1,000, Rs.2,000, Rs.3,000, Rs.4,000 or Rs.5,000 per month starting at the age of 60 years, depending on the contribution option exercised on entering at an age between 18 and 40 years. Thus, the period of contribution by any subscriber under APY would be 20 years or more. The benefit of fixed minimum pension enjoys sovereign guarantee. The government contribution will be for those joining the scheme before Dec 31, 2015, not being members of any statutory social security scheme and not being income tax payers. Estimates say that the unorganised sector workers, constituting 88 percent of the total labour force of 47.29 crore, as per the 66th Round of NSSO Survey of 2011-12, do not have any formal pension provision. India Inc has hailed the schemes saying they widen the financial security net to the unorganised and underprivileged sector.

Make in India drove FDI up by 56%: Data

As the government struggles to maintain investor confidence, foreign direct investments (FDI) into India has surged by 56% in five months since the Make in India programme was launched on September 24, official data revealed. The inflow into the manufacturing sector alone saw a jump of 45% at $6.9 billion from $4.8 billion in the corresponding period a year ago. “India received $21.2 billion in inflows overall during the five-month period, against $13.5 billion in the same period last year.If this surge continues, then as per our estimates, 2015-16 would be the year with the second highest FDI ever received by the country since 2000 (when maintenance of data started),” the official said. The highest FDI inflow into India was in 2010-11, at $45 billion. FDI inflows in April-September 2014 were to the tune of about $16 billion. Of the five months under consideration, December and January saw the highest FDI inflows, the officials said. Industry experts say that the Make in India campaign has been a game-changer for the investment climate. Said CII president Sumit Mazumdar: “Make in India has worked a lot for India. The recent Hannover fair was a classic example where every investor was excited and wanted to know more about the campaign to plan their investment in India accordingly.” According to data for April 2014-February 2015, Mauritius ($8.44 billion or Rs. 50,640 crore), Singapore ($6.42 billion), the Netherlands ($3.29 billion), Japan ($1.72 billion) and the US ($1.69 billion) were among the leading investors.

Delhivery gets $85 million booster shot from US company

E-commerce logistics company Delhivery has raised close to $85 million in a new round of funding led by venture capital firm Tiger Global Management Llc, giving a fresh boost to the Gurgaon-based start-up that is looking to expand in India and tap international markets. A top company executive said existing investors Multiples Alternate Asset Management, Nexus Venture Partners and Times Internet Ltd participated in this round as well. The funds co-founder and chief executive Sahil Barua said, would be used to expand e-commerce enabling services such as cataloguing, warehouse management and shipping to West Asian and African markets as well as India’s immediate neighbours in South Asia. The funding, which comes less than eight months after the company raised $35 million in a Series C round, has bolstered the logistics provider’s valuation to $350- 400 million, two persons close to the development said on condition of anonymity. Delhivery will also look at acquisitions in the e-commerce value chain to complete its suite of services, apart from investing in technology. “We are at an advanced stage of discussion with a few companies in the e-commerce enablement space,” said Barua, suggesting that the company is eyeing 4-5 potential acquisition targets over the next eight months. Lee Fixel, a partner at Tiger Global, said Delhivery had reached its market-leading position through a combination of innovation and expansion of its logistics infrastructure, fulfilment and transportation services. Delhivery, run by SSN Logistics Pvt. Ltd, has raised close to $125 million since its inception in 2011. It works with 1,500 online retailers, including Flipkart, Snapdeal, Paytm and Myntra, and 200 offline retailers, providing logistics and last-mile delivery. The company expects to double its Indian presence from 250 cities to 500 by December 2015. The company has gone in for top-level management hires to bolster its growth plans. It brought on board former FedEx Corp. executive Suraju Dutta and Bain and Co.’s Sandeep Barasia as managing directors. Dutta, who comes with over two decades of experience, will help Delhivery expand its domestic and international footprint. Barasia will lead Delhivery’s consumer products and services business. The rapid growth of e-tail in India—expected to touch $50 billion by 2020, according to a report by UBS Securities—has led to a surge of business for and investor interest in allied sectors such as logistics. The 14 April report by UBS Securities, titled Is India in an e-commerce bubble?, suggested that the revenue pool for logistics service providers, including both in-house and third-party, is likely to grow from under $500 million in 2014 to $5.3 billion in 2020 and $13.7 billion in 2025. So it’s no surprise that the sector is a hub of activity. Earlier this year, online marketplace Snapdeal, owned by Jasper Infotech Pvt. Ltd, said it would pick up a stake in logistics firm GoJavas. In September last year, Gurgaon-based Ecom Express Pvt. Ltd, founded by former Blue Dart employees, raised close to Rs.75.5 crore. While speciality e-commerce logistics companies are the flavour of the season, traditional logistics companies such as DHL and FedEx aren’t sitting on the sidelines. In August last year, DHL, owner of Blue Dart, announced that it was investing €100 million over two years on building infrastructure and warehouses, as well as options for delivery and payment, to cater to e-commerce companies. Some e-commerce firms have launched their own logistics arms, but Anand Ramanathan, director at KPMG in India, believes what is needed is more specialists with the bandwidth to cover the smallest of markets. “The biggest constraint in e-commerce as we speak is clearly logistics,” said Ramanathan. India has over 40,000 pin codes that need to be serviced and the top e-retailers service only reach 15,000. “Supply of logistics has not been in step with demand generated by e-commerce companies,” added Ramanathan.

Nivea opens first plant in India, invests Rs 850 crore

Personal care products maker Nivea India Pvt. Ltd on May 6 opened its Rs.850-crore plant at Sanand in Gujarat, its first in the country. It will help the company raise the development and production capacity for India and the South Asian Association for Regional Cooperation (Saarc) markets, the Indian affiliate of German personal care major Beiersdorf AG said in a statement. The 72,000 sq. m. land to build the plant at the Gujarat Industrial Development Corp. (GIDC) industrial park was acquired by the company last year. While the company did not reveal latest sales figures, in 2013 Nivea India sold about 60- 70 million units, importing nearly 60% of this. The company expects to reduce imports by half once the factory goes on stream, its company officials had said during the ground breaking ceremony in June 2014. Currently, the factory has about 200 employees. The plant has a capacity to produce about 80 million units a year, including creams and lotions in tubes, jars, tins and bottles. The plant will make Nivea and Nivea Men brand products for India and neighbouring countries. “German companies have been making in India for a long time. Beiersdorf is present since almost a century. And it is great that Beiersdorf now not only invests over Rs.850 crore here in Sanand, but also teams up with authorities to boost skill development—a field where India and Germany are ‘natural partners’, as PM Modi has rightly put it,” said Michael Steiner, German Ambassador to India. The new unit also houses a regional development lab to focus on innovations especially for Indian consumer needs and for catering to neighbouring markets. “The idea is to get closer to the consumer and to respond faster to market needs. We can focus on local insights with greater flexibility and develop products that are suitable for Indian skin care needs. Our aim will be to provide products of the highest quality that are aspirational yet accessible for the growing Indian middle class consumer,” said Stefan De Loecker, executive board member, Beiersdorf AG. Beiersdorf had sales of €6.3 billion in 2014. Nivea is the flagship brand in its portfolio, which also includes brands such as Eucerin, La Prairie, Labello, and Hansaplast. “This is Nivea India’s contribution to the Make in India initiative”, said Rakshit Hargave, managing director of Nivea India, highlighting the progress the company has made in India over the last few years. The skincare and deodorants market in India is about Rs.7,000-7,500 crore, according to the company.

China proposes joint mining of Indian Ocean with India

Ahead of Prime Minister Narendra Modi’s visit here next week, China has said it is “eager to cooperate” with India on deep seabed mining in the Indian Ocean where its deep diving vessel reported to have discovered large deposits of precious metals like gold and silver. “With quickening oceanic development and increasing mineral exploration in the Indian Ocean, China is eager to cooperate with India on deep seabed mining,” the China Daily quoted China Ocean Mineral Resource R&D Association as saying. Terming India an ideal partner, deputy director of the association He Zongyu told the state-run daily that “China and India are both developing countries and contractors with the International Seabed Authority (ISA) so we have a lot in common and plenty of opportunities for further cooperation.” The association is China’s official organisation engaged in exploration and development of ocean floor and subsoil. Chen Lianzeng, deputy director of the State Oceanic Administration, visited India on April 20 and suggested the two sides enhance cooperation on oceanic research and development. “If we cooperate, we could share the costs, the risks and the benefits,” He said. Proposing the cooperation, He said China and India are on about the same level in terms of the development of deep seabed mining, which makes India an ideal partner. Deep seabed mining is high-cost and high-risk work, with costs for a mining site topping USD 1.6 billion, He said. Beijing’s proposal for India-China cooperation comes in the immediate backdrop of the completion of the 118-day voyage of the China’s deep-sea manned submersible Jiaolong in the southwest Indian Ocean here it reported to have discovered large deposits of precious metals like gold and silver. During the latest mission in March, Jiaolong successfully carried out 13 dives to observe different hydrothermal areas, the characteristics of hydrothermal fluids and deep-sea biodiversity, gathering a huge amount of data and more than 700 samples. The surprise proposal comes ahead of Modi’s three-day visit from May 14 during which he will hold formal and informal talks with Chinese President Xi Jinping and Premier Li Keqiang in Xi’an and Beijing. Deep-sea “chimney vents”, also known as hydrothermal sulfide, are a kind of seabed deposits containing copper, zinc and precious metals such as gold and silver. Those metals formed sulfides after chemical reactions and came to rest in the seabed I n the form of “chimney vents,” state run Xinhua quoted Chinese scientists as saying. China has already gained a 15-year approval in 2012 to explore a 10,000 sq km polymetallic sulphide ore deposit in an international seabed region of the southwest Indian Ocean. It has also obtained exclusive rights to prospect in a 75,000-square-km polymetallicnodule ore deposit in the east Pacific Ocean in 2001. Ahead of Modi’s visit, Chinese officials have been saying that China would like to address India’s security concerns about its mega Maritime Silk Road project over which India has reservations over its strategic significance in the Indian Ocean. China has made significant inroads in Sri Lanka and Maldives with billions of dollars of investments already.

 NEWS

Govt approves Rs5,000 crore tax-free bonds to support solar mission

The ministry of new and renewable energy (MNRE) has approved the sale of tax free-bonds worth Rs.5,000 crore to support the government’s solar mission. Of this, the Indian Renewable Energy Development Agency (IREDA) is likely to raise Rs.2,000 crore through an issue of tax-free bonds in the next few months. The announcement was made by Tarun Kapoor, MNRE joint secretary, in a speech at the Solar Power Summit- 2015 in New Delhi. IREDA is expected to use these funds to lend to solar energy developers at a lower interest rate of 10.5%. Developers, in turn, will use these loans to fund roof-top solar panel installations. Kapoor also announced a withdrawal of subsidies extended on targets of non-conventional power generation for industrial and commercial purposes. State-run NTPC Ltd is also soon expected to issue tenders for solar power projects of 15,000 megawatts, the PHD Chamber of Commerce said in a statement on Friday. However, Kapoor acknowledged that public sector companies are not likely to add non-conventional power capacities in a big way. “The government would want the private sector to play a major role to lighten the India through solar power initiatives,” he said.

Domestic car sales up 18.1% in April

Domestic passenger car sales grew 18.14% to 1,59,548 units in April this year compared with 1,35,054 in the same month of 2014. According to the data released by the Society of Indian Automobile Manufacturers (SIAM), motorcycle sales last month were down 2.77% at 8,81,751 units from 9,06,909 in the same month of the previous year. Total two-wheeler sales in April 2015 slumped 0.16% to 12,87,064 units from 12,89,183 in the year-ago period. Total sales of commercial vehicles, however, jumped 6.48% to 45,872 units from 43,080 a year ago, SIAM said. Total sales of vehicles across categories registered a growth of 1.91% to 15,83,551 units in April 2015 as against 15,53,871 in the same month of 2014, it added.

India tops China in number of tech venture capital deals

In a sign of the rising opportunities in India, the country outpaced China in the number of deals struck by venture capital (VC) funds in the first quarter of 2015. India saw 69 deals happening in the first quarter as against China’s 66, according to a report by CB Insights, a New York-based firm that tracks VC funding. India saw the most deal growth among Asian countries, at 60% compared to the first quarter of 2014, when the number of deals stood at 43. China was still ahead of India in terms of deal value at $2.99 billion. India’s funding stood at $1.35 billion. For India, this was a rise of 225% over the same quarter of the previous year. Both countries reported a drop in the quantum of money raised from the last quarter of 2014. Japan saw 28 startup deals by VCs during the first quarter. Overall the top 3 countries in Asia accounted for 66% of all deals to VC-backed tech companies in Asia in the first quarter of 2015. Sunil Rao, country head of the startup programme in Google India, said India is on the same trajectory that China was in 2007-08 with respect to the number of startups emerging from the country and the number of internet users. “The country will reach 500 million internet users in two-three years and the gap won’t be much now. Even the GDP growth rates are around the same levels,” he noted. According to the CB Insights, Chinese startups constituted 12 of the top 15 startup deals in Asia while India startups constituted the rest. For the first time, India has raised more than $1 billion for three consecutive quarters. Rao said China would continue to see larger valuations as it is a much larger market. Mohan Kumar, partner, Norwest Venture Partners, said one quarter is too early to say anything about a trend. “Having said that, China has recorded $3 billion in annual investment in the last five years. There are a few positives on the Indian side with the economy picking up steam. If we can replicate China’s growth in the last decade by growing at 10%, the catch-up could be possible in a few years. We have to give it 3-4 quarters before saying India is beginning to outshine China,” he said. Sequoia Capital was the most active investor in India in the quarter, the CB Insights report said. The VC firm participated in three of the six largest deals of the quarter - FreeCharge, CarDekho, and NewsHunt. Tiger Global Management was the second most active investor, with multiple early-stage deals to companies including Grofers, News in Shorts, and MoonFrog Labs. “After a big Q4 2014 which featured six $500-million plus rounds, Asian VC-backed tech companies came slightly back down to earth, raising $4.8 billion on 247 deals. The funding total is still the second highest total since 2013, up 95% versus the same quarter a year prior,” the report said.

Government aims at 2% share of global tourist arrivals by 2025

The government wants to make India an attractive tourist destination so that the country’s share in world tourist arrivals rises to 2% by 2025 from the present 0.68%, according to the draft of a new tourism policy released on May 1. The tourism ministry has invited comments from the public on the national tourism policy by 10 May. The policy outlines the vision, mission and objectives that the country wants to achieve in the travel and tourism segment as well as detailed delivery mechanisms, product development, infrastructure requirement and the skill development that are required. The move to float a new policy, which will replace the one in place since 2002, is in line with the National Democratic Alliance (NDA) government’s aim to make tourism a major driver of economic growth. The contribution of travel and tourism to gross domestic product (GDP) is expected to rise by 7.3% a year to Rs.1,658.7 crore in 2025, accounting for 7.6% of GDP, from Rs.764.25 crore, or 6.7% of GDP, in 2014, as per data compiled by World Travel and Tourism Council, an industry body. Foreign tourist arrivals in India increased from 2.38 million in 2002 to 7.7 million in 2014, while global international tourist arrivals are expected to grow from 1.1 billion to 1.8 billion by 2030, according to United Nations World Tourism Organization. The draft policy aims to strengthen India’s position as a welcoming, safe, secure, clean, hygienic and sustainable destination for both foreign and domestic tourists as well as enhance the brand image “Incredible India”. One of the key areas the policy looks at is to “foster and develop a coordination mechanism between the centre and the states and Union territories, and between the various ministries and departments” to create a framework that will also include and engage local bodies to drive the national tourism agenda. It will also promote lesser known places and destinations based on India’s unique civilization, heritage, and culture rather than just focusing on gateway cities. The government also plans to set up a National Tourism Advisory Board, which will be chaired by the tourism minister and have a dedicated secretariat and a corpus to undertake various promotional activities, according to the proposed policy.

India becoming one of world’s fastest growing economies: IMF

India’s growth rate is expected to rise to 7.5 percent this year and next, making it one of the fastest growing economies in the world, according to the IMF’s latest economic health check.

The other Asian giant China’s economy is slowing to a more sustainable pace - 6.8 percent GDP growth in 2015, and 6.3 percent in 2016, according to the International Monetary Fund’s Regional Economic Outlook for Asia and the Pacific. Growth in Asia and the Pacific will continue to outperform the rest of the world, and is expected to remain steady at 5.6 percent in 2015, easing slightly to 5.5 percent in 2016, said the report released Thursday. Growth will be

driven by domestic demand, underpinned by healthy labour markets, low interest rates, and the recent fall in oil prices. The global recovery, while moderate and uneven, will continue to support Asia’s exports, says the report. The IMF’s Regional Economic Outlook calls for a strong push for structural reforms across most, if not all, economies in the region. The report notes that in addition to boosting productive capacity, structural reforms can help rebalance growth toward consumption, which remains a priority for some major Asian economies. Major reform areas include measures to address supply-bottlenecks in India, state-owned enterprises, and financial liberalisation in China, and initiatives to raise services productivity, and labour force participation in Japan. Maintaining flexible fiscal and monetary policies to effectively manage aggregate demand will remain important in the future, say the report’s authors. The report noted that lower oil prices have provided an opportunity to undertake further fiscal reforms aimed at lowering energy subsidies, and measures have been taken in a number of countries, including India, Malaysia, and Indonesia. Financial and macro-prudential policies should continue to address financial sector risks. This will be particularly important to increase resilience to shocks, and to contain the build-up of systemic risk associated with shifting financial conditions, and volatile capital flows, the report said. Asia, which accounts for nearly 40 percent of global output, but contributes nearly two-thirds of global growth, will remain the global growth leader, even though potential growth-the economy’s speed limit-is likely to slow, it said. But the outlook could be vulnerable to adverse events, says the report. Most Asian policymakers have in place broadly appropriate interest rate and fiscal policy settings, although the risk of renewed financial volatility may warrant a somewhat tighter monetary policy stance in some countries, it said.

India’s e-learning market second largest after US, says report

India has become the largest market for e-learning after the US, and the sector is expected to receive a boost from the government’s Rs.1.13 trillion Digital India initiative, says a recent report by the UK-India Business Council. While the existing educational infrastructure is inadequate to meet the current and future needs of the country, the Digital India initiative will increase Internet access, which in turn will help take quality education to large a part of the population that have been hitherto neglected, says the report. India’s e-learning sector is expected to grow at a compounded annual rate of 17.4% between 2013 and 2018, twice as fast as the global average. “Education providers from various countries are aggressively targeting the Indian market and the competition is stiff. For instance, Germany is strong  on centres of excellence and education as part of its development agenda. The Australian model is based on government-sponsored assessment programmes. It has gained popularity because the certifications issued are recognised by Australian authorities,” the report says. Many business in India are developing e-learning content for markets such as the US, Australia, the UK and Europe. This content is not being deployed locally because of infrastructural and technological inadequacies, says the report. E-learning also has a role to play in providing the required skill sets to future job market entrants. By 2022, the country faces a potential shortage of 250 million skilled workers across sectors. The report said the tourism and hospitality sector is a critical areas for skill development, apart from the manufacturing. India is the world’s third largest market by Internet users, behind China and the US, but it has only achieved 16% Internet penetration as compared with 45% in China, and 84% in the US, according to industry estimates. Meanwhile, emerging technologies including cloud, big data and the Internet of Things are changing the way e-learning content is being produced and consumed. “Technological advances are affecting the way we learn and work and disrupting the education sector globally. Big data allows for greater customisation of learning solutions, in the way that Amazon tailors its products to consumers’ needs. This opens up endless possibilities for education providers,” says the report.