Prime Minister Narendra Modi made a strong pitch for India to be given a seat in the UN Security Council, saying that India, the land of the Buddha and Mahatma Gandhi - a land of peace - is asking for its rights to be given a permanent seat in the UN Security Council. Addressing an enthusiastic civic reception by the Indian community on April 11 evening, Modi also reached out to the diaspora, including to those living in the French territories of Guadeloupe, Reunion Islands and St Martin. "India is a country that is for peace, and helps bring peace to the world, and yet we are struggling to get a seat in the UNSC," he said, to loud
cheers from the packed audience at the Carrousel du Louvre here. Modi said that this is the centenary year of World War I, and India gave 14 lakh jawans to fight in a war that was not its, and lost 75,000 men. He said 11 of them won the Victoria Cross for their valour. "I went to get blessings from them," he said, referring to his visit to the Neuve Chapelle earlier in the day to pay tribute to the thousands of Indians who were killed in the WWI. "I want to give the message to world, that they should view India differently; that this is a country that gives sacrifice not just for itself but for others," he said. He said India is the largest contributor to the UN peacekeeping force and the Indian soldiers are known for their discipline, valour, intelligence. "I appeal to the world, that in the year that the world is observing the centenary of WWI, it is the time to give the haq (right) to the land of Mahatma Gandhi and Buddha. The time is over when India would ask for a favour; today India is asking for its rights," he said to loud cheers. Addressing the Indian diaspora in the French territories, Modi said: "I am so far away, I give my salute to all of you. I know you feel pride in being Indian."He said his speech was being simultaneously translated into French for the benefit of those living in French territories of Guadeloupe, Reunion Islands and St. Martin. He said though the colour of their passports would have changed over the many decades they have been living outside India, "but the colour of our blood cannot change in all these years". "Bharat thinks about you, not from the colour of the passport but our DNA," he said, reinforcing the close links with their country of origin. He said the government had launched a special session at the Pravasi Bharatiya Divas diaspora conclave to understand the problems of the Francophone countries.
Modi said the government will help the diaspora to reconnect with their roots. "We should maintain the connection." Referring to formation of the BJP government last May, he said that his government will live up to the promises that it has made to the people. He also said :"I can say with experience, that there is no reason for India to remain poor." Referring to the close friendship with France, Modi said that both France and India feel for each other whenever there is a terror attack on the other. "There is close relationship between us." Referring to the Make in India initiative, Modi said that in the two days that he has been in France "I would have said Make in India about 10 times, but every leader here said it 25 times; even President Hollande. The meaning is that our message has reached the proper target." He said France can participate in the railway sector in India in a major way by way of upgradation, modernization, expansion, with its technology and expertise. He referred to the good reviews about India's economic growth, by the World Bank, IMF, and "Moody, not Modi", he said evoking laughter. "All financial parameters say that India's economy is to grow the fastest". "The opportunity is there in India, we are striving to create the opportunity, and telling the world," he said. Referring to the youthful demography of India, Modi said that the government is trying to inculcate skills in the youth so that they can comprise the workforce for the world.
Moved with speed, boldness to create stable economic environment: Modi
Saying that the Make in India lion was a "symbol of new India" and a "national movement", Prime Minister Narendra Modi on April 12 told the Hannover Messe audience that his government has moved "with speed, resolve and boldness" to create a stable economic environment, including by opening up FDI in insurance, defence and railways, building a stable tax regime and assured protection of Intellectual Property. In his inaugural address at the Hannover Messe, the world's largest trade fair in which India is the partner country, Modi
said, with German Chancellor Angela Merkel listening keenly that all the credit rating agencies have spoken "in one voice of optimism about India. We know that the wind is blowing in the right direction, and it has made us the fastest growing economy in the world." He said that in this time of political instability and economic challenges and with threats of violence, "India will do its part as an anchor of economic stability, an engine for growth, and, as a force of peace and stability in the world." Touching on key elements, Modi said that investors seek not just an attractive destination but also an environment that is stable where rules won't change frequently, and "there would be no surprises". "So, we have moved with speed, resolve and boldness to fulfill our pledge". He said his government is creating a "stable economic environment that inspires confidence at home and abroad", for which it is pursuing strong fiscal discipline. "I know how much Chancellor Merkel will appreciate that point!", in reference to Merkel's insistence that the Eurozone countries abide by fiscal discipline. Enumerating the "sweeping steps" taken by his government, including opening up more FDI in insurance, construction, defence and railways, Modi said: "We are removing unnecessary regulations and simplifying our procedures" and using digital technology to eliminate multiple approvals and endless wait. Modi said the government has set up Invest India and country desks that will be networked to the states. "We will nurture innovation and protect your intellectual property...We are reforming institutions in ways that has not happened in decades. We are building a tax regime that is predictable, stable and competitive. We will now address the remaining uncertainties. The Goods and Services Tax is a long needed revolution that is becoming a reality." He said the Railways will now be a fast track to India's transformation and open to 100 percent Foreign Direct Investments. He said the government has set up a National Infrastructure and Investment Fund and a new institution for integrated development of the infrastructure sector. He said the government has set a target of 175 Giga Watts of new capacity for renewable and clean energy in the next seven years. Modi said his government has moved with transparency and speed and resumed long stalled projects and allocation of resources. The government is "instituting a rational framework for acquisition of land without causing distress to farmers and other landowners", he said referring to the land acquisition bill. "We are creating a predictable and transparent environment approval process that will protect our natural heritage", he said and added that his government is moving in tandem with the states. "But, I am also aware that it is easier to change policies and write new laws than it is to change attitudes, culture and systems. Every CEO who has tried a turnaround knows that. Our task is huge, it won't be completed overnight. But, I am confident that it will. And, we are moving firmly and clearly in that direction. The wind of change is there. and, it is gathering speed," Modi said in a speech that was loudly applauded. Earlier, in his speech, Modi thanked the Hannover Messe authorities for their generosity in "allowing us to unleash our lions in this city". He said the lions "are a symbol of a new India. They roar, but with a message of friendship and promise of partnership, from 25 billion people of India. This is also the message of 15 states, 20 CEOs and 350 companies from India participating in this Fair." Merkel, speaking in German, said that a forum would help both countries chart a new course in the future. She said Germans have "shown they are flexible to accept a lion's presence in our midst and allowing it to move". She said Germany "very warmly welcomes" the Indian delegation, "including a lion", evoking smiles. Merkel said India and Germany would hold inter governmental consultations later in the year when they can go over their problems. "India and Germany should also change the way we do business," she said. She said Germany has cooperative federalism and can learn from India's example. Referring to the trade volume, she said it stands at $16 billion and Germany is the most important trading partner in the EU "and we wish to remain that way". Referring to Modi's France visit, she said that she was aware that he is coming from the neighbouring country "and we know we have huge competition" and the more the competition the better it will get. She said Germany will also have a Make in Germany and also a platform for the SMEs in the fair.
India building predictable tax regime, Modi tells German investors
Prime Minister Narendra Modi said on April 12 that India was building a predictable, stable and competitive tax regime and the policies have been reformed towards more foreign direct investment. In his addresss at the inauguration of Hannover Messe industrial fair, in which India is the partner country, he said India will play its role as an anchor of stability and a force for peace and stability in the world. "We are building a tax regime that is predictable, stable and competitive. We will now address the remaining uncertainties," Modi said. The prime minister said that his government was creating a stable economic environment that inspires confidence at home and abroad and German investors will find environment in India not only open but also welcoming. "We have taken sweeping steps to reform our policies and open up more to foreign direct investments...We will make it easy to do business in India...The Goods and Services Tax is a long needed revolution that is becoming a reality," he said. Modi said his government had resumed long stalled projects and it was adding new momentum to the country's economy. "Our decision to be here in the first year of my government reflects our priority. (We) want to accelerate economic growth and create jobs," he said. "India will do its part- as an anchor of economic stability; an engine for growth and as a force of peace and stability in the world," he added. Modi also said India will endeavour to fuel its growth with "the cleanest and most efficient use of energy". Earlier, Modi was welcomed by German Chancellor Angela Merkel at the Hannover Messe industrial fair, which is the world's largest industrial trade fair.
Marriott set to open 52 hotels in 4-5 years
Marriott International Inc, one of the world’s largest hotel chains, is set to add 52 properties in India over the next five years to cater to the burgeoning demand for quality hotel stay.Through its partners, the US-based company is adding 10,000 rooms to its existing 7,000 rooms. Arne M Sorenson, president and Chief Executive Officer (CEO) of Marriott International, said: “Today, 57 per cent of our guests in India are Indians compared to 35 per cent five-to-six years ago. Today, we have 28 properties in India, but we would like to have a few hundred. We see many more opportunities. The past few years have been tough, but there is enormous potential to grow here”. Sorenson was in the city to officially open Mumbai's second JW Marriott. Marriott has one of the biggest basket of brands amongst the large hotel chains. Of the company’s 19 global brands, seven are already present in India. To complement JW Marriott and Ritz Carlton, there are plans to bring BVLGARI, its most expensive brand, to the Indian market. “We only have half-a-dozen BVLGARI properties around the world and one is coming up in the Maldives. These are smaller properties compared to, say, a Ritz Carlton. There are four five cities in India which can support a true luxury brand such as BVLGARI,” added Sorenson. In the past five to six years, Marriot t has added five brands to its kitty. These brands, which include Moxy and Autograph Collection, form a part of the Lifestyle Collection. According to Sorenson, some of these brands have a better prospect in India than China. “In China, they still follow traditional luxury. That is why India has a better position to host such lifestyle brands,” added Sorenson. One of the other brands that will get a boost is the upmarket brand Fairfield. With one property operational in Bengaluru, 15 more are under development. Against the management route followed by the company in all its brands, Marriott has invested $30 million to set up Fairfield properties, which will be built through a joint venture with SAMHI Hotels. Marriott controls 26 per cent of stake in the joint venture. In addition, premium brand Ritz Carlton, which has one operational property in Bengaluru, has two properties (one each in Mumbai and Delhi) under development. Courtyard by Marriott has 12 operational properties and 18 are under development. Five years ago, Marriott had declared plans to have 100 properties by 2015 with an intermediate target of reaching 41 properties by 2013. Sorenson agrees there has been a delay. “In a city like Mumbai, it takes 70-100 permits to open a new property compared to six in Singapore. This leads to cost overruns and delays,” added Sorenson. Marriott is not the only company which is running behind schedule. Starwood, Hilton, Intercontinental, Jumeirah, Four Seasons and Hyatt, to name a few, are unable to keep pace with their earlier announcements.
Modi launches bank for small firms with Rs.20,000 crore corpus
Prime Minister Narendra Modi on April 8 launched a bank with a corpus of Rs.20,000 crore to extend credit of up to Rs.10 lakh to small businesses and regulate micro-finance institutions, to promote their growth, add to the country's output and create jobs. The move is aimed at benefiting some 58 million small businesses in the country, who account for a mere four percent of institutional funding, despite employing over 120 million people, many from unprivileged strata of society, the officials said. "After 'banking the un-banked' with the Jan Dhan Yojana, it's time to 'fund the unfunded'," the prime minister said at an event to launch what is called Micro Units Development and Refinance Agency - Mudra. "Mudra is our innovation of funding the unfunded," the prime minister said. "Millions of common men and women in this country, who run small businesses, have almost remained outside the net of formal institutional finance, in spite of their large contributions to the economy," he said at the event, attended, among others by Finance Minister Arun Jaitley. "Providing access to institutional finance to such micro and small business units and enterprises will not only help in improving the quality of life of these entrepreneurs, but also turn them into strong instruments of growth and employment generation," the finance ministry said. The initiative will also lay down the norms for responsible financing practices for micro-finance institutions so that the small businesses do not face hardship over indebtedness, while getting a fair environment for repayment. In his budget speech delivered on February 28, the finance minister had said that while are were 5.77 crore small businesses in India, mostly individual proprietorships, these bottom-of-the-pyramid entrepreneurs found it difficult, if not impossible, to access formal systems of credit. "I, therefore, propose to create a Micro Units Development Refinance Agency (Mudra) Bank, with a corpus of Rs.20,000 crore and a credit guarantee corpus of Rs.3,000 crore. Mudra Bank will refinance micro-finance institutions through a Pradhan Mantri Mudra Yojana," he added. "These measures will greatly increase the confidence of young, educated or skilled workers who would now be able to aspire to become first generation entrepreneurs; existing small businesses, too, will be able to expand their activities."
Govt approves regulator for realty sector
The Union government has finally approved the setting up of a regulator to protect homebuyers and improve the credibility of the real estate sector in a move towards ridding India of the tag of being one of the world’s least transparent property markets. The cabinet on Tuesday approved the amendments to the Real Estate (Regulation and Development) bill, 2013, to create a uniform regulatory mechanism across the country. The bill seeks to ensure accountability and transparency to enable the real estate sector to access financial markets essential for its long-term growth. In essence, more disclosures have been demanded from developers and there are penalties attached in cases of violations. “On becoming an Act, the Real Estate (Regulation and Development) legislation is expected to give a boost to the ‘Housing for All by 2022’ mission by enabling increased flow of investments through enhanced transparency, accountability and standardization,” the ministry of housing and urban poverty alleviation said in a statement. The cabinet has extended the applicability of the bill to commercial real estate as well. In order to ensure that customer advances are used only for project construction, promoters will also be required to deposit 50% of the amount collected from homebuyers in a separate account with a scheduled bank within a period of 15 days. Ongoing projects that have not received completion certificates have been brought under the purview of the bill, and such projects will need to be registered with the regulator within three months. Promoters will not be allowed to change plans and structural designs of a project without the consent of two-thirds of consumers. “It’s a great move, one that will bring in transparency and governance, though it is a little ironical that government agencies, which are significant stakeholders in the real estate ecosystem, haven’t been named as being accountable for severe delays caused to projects, often due to government approvals,” said Anuj Puri, chairman and country head at property advisory JLL India. This will also curb the practice of setting unrealistic targets by developers and make them more reasonable in terms of project execution and delivery. According to JLL’s global transparency index, India figures somewhere in the middle, around the 44th position in a survey of 90 countries, said Puri. While India has been inching up the rankings, China which was behind, has now moved ahead to the 35th position. Among the other new stipulations approved by the cabinet, states have to make rules within one year and put in place a web-based online system for submitting applications for registration of projects, and the regulator has to decide cases within 60 days. Real estate developers, both in the residential and commercial sectors, will be required to register their projects with the regulatory authority. Promoters will have to disclose all information regarding ownership, project plan and layout, development schedule, land status, status of statutory approvals, proforma agreements, names and addresses of real estate agents, contractors, architects, structural engineers and so on. “The bill should bring in more investors, both from individuals and institutions, as it assures protection as well as overall regulation. However, the approach has to be balanced and shouldn’t pose a hurdle instead of helping real estate development,” said Anshuman Magazine, chairman and managing director, CBRE South Asia Pvt. Ltd. Penal provisions include payment of 10% of project cost for non-registration and payment of another 10% of project cost or three years of imprisonment or both if still not complied with. For wrong disclosure of information or for failing to comply with the disclosure norms and requirements, a penalty equal to 5% of the project cost will be imposed. Regulatory authorities can also cancel registration in case of persistent violations. Real estate agents will also be punished for non-compliance of the orders of the regulatory authority and appellate tribunals to be set under the proposed law. For fast-track dispute settlement, one or more adjudicating officers will be appointed to settle disputes and impose compensation and interest. On Tuesday, the cabinet also approved an additional instalment of dearness allowance (DA) to central government employees and dearness relief (DR) to pensioners, with effect from 1 January 2015, at the rate of 6% increase over the existing rate of 107%. The combined impact on the exchequer on account of DA and DR would be of the order of Rs.6,762.24 crore per annum and Rs.7,889.34 crore in 2015-16 ( i.e. for a period of 14 months from January 2015 to February 2016). The cabinet committee on economic affairs, chaired by Prime Minister Narendra Modi, approved two significant foreign investments in the pharmaceutical sector. Aurobindo Pharma Ltd won approval for qualified institutional buyers to infuse fresh equity of up to 7%, amounting to about Rs.2,165 crore, into the company. The existing foreign institutional investment shareholding in the company is 27.32%. This will enable the company to expand its operations in the areas of anti-infective, cardiovascular and central nervous system-related ingredients. Regarding Glenmark Pharmaceuticals Ltd, the cabinet has increased the investment limit by foreign institutional investors from 35.07% to 49%. This will result in an inflow of about Rs.2,022 crore.
Jaitley promises better as Moody's turns positive on India
Sixteen months after it warned of a downgrade, ratings agency Moody's on Thursday raised its outlook on India to positive, hoping for further steps from the Narendra Modi government to push growth. The finance ministry said this was significant and promised more. "India has grown faster than similarly-rated peers over the last decade due to favourable demographics, economic diversity, as well as high savings and investment rates," Moody's Investors Service said, adding this will keep the country's economic expansion on track. "Moody's decision to revise the ratings outlook to positive from stable is based on its view that there is an increasing probability that actions by policy-makers will enhance the country's economic strength and, in turn, the sovereign's financial strength over coming years." The agency, however, did not raise the sovereign credit rating from Baa3, awaiting more signs from the Indian economy. In December 2013, during the tenure of the United Progressive Alliance (UPA), it had warned of a downgrade that would have potentially hurt India's global standing.
But Moody's specified what could lead to an upgrade. "Evidence over the coming months that policymakers are likely to be successful in their efforts to introduce growth-enhancing and growth-stabilising economic and institutional reforms would lead to the rating being considered for an upgrade." Reacting to the development, Finance Minister Arun Jaitley said: "Moody's has changed the rating outlook to positive from stable and affirms Baa3 rating. The upgrade in outlook is significant, but we've got to do more." The markets reacted positively. The sensitive index (Sensex) of the Bombay Stock Exchange (BSE) rose 177.46 points or 0.62 percent, to close at 28,885.21 percent. Moody's said its Baa3 rating reflects the fact that higher levels of growth and infrastructure development will be accompanied by better prospects, adding credit improvements over the next 12-18 months will depend on the extent to which growth, policies and buffers can contain risks. "India's Baa3 government bond rating incorporates the credit strengths, such as its diversified economy, robust growth prospects, relatively high domestic savings rate and a high international reserve buffers," it said. "It also reflects India's weaker performance, relative to peers, on fiscal, inflation and infrastructure-related metrics. And while policies are beginning to address each of these factors, the extent of likely improvements is as yet unclear," it said. "Moreover, India's banking system's asset quality, loan loss coverage and capital ratios are relatively weak," it said, and added this posed credit risks because of the financial sector's role in financing growth and the government's deficits. "In the absence of any improvement in banking-system metrics over the coming months, India's sovereign credit profile will remain constrained."
New aviation policy to connect India with ‘Bharat’: Minister Raju
A new civil aviation policy, which is on the anvil, will facilitate more airlines to connect metros and state capitals with more cities and towns across the country, Civil Aviation Minister Ashok Gajapathi Raju said on April 12. "We want more airlines to operate across the country, connecting more cities and towns, as air connectivity is crucial for rapid economic growth. Our new aviation policy will accelerate the sector's growth and connect as many cities and towns in Bharat," Raju told reporters at a function here. Admitting that running an airline was a tricky business and the aviation sector has gone through turbulent times, the minister said the new policy would encourage more investment in the sector, attract new players and enable the existing airlines expand their operations in the domestic and international routes. "Our new policy will ensure sustainable growth benefiting all stakeholders, especially passengers and cargo operators. We have about 30 airports without aviation activity, which is non-productive. We need a long-term strategy to turn them around into assets," Raju said at the launch of Air Pegasus, a new low-cost regional airline, at the city airport. The new policy, whose draft has been circulated among all the stakeholders, aims at enhancing air connectivity, developing six metro airports as international hubs, developing more airports through public-private partnership mode, rationonalising jet fuel cost, promoting air cargo, maintenance, repair and operations (MRO), helicopter operations and improving passenger facilitation. "Taxation is a major issue in the sector. We have asked the finance ministry to exempt service tax on MROs for 5-10 years so that airlines can maintain, repair or service their aircraft within the country than sending them to Sri Lanka, Singapore and Dubai and save costs," Raju said. In this context, he mentioned the inordinate delay in the setting up an MRO facility at Nagpur by national carrier Air India with the global aerospace major Boeing since 2006 due to tax and regulatory issues. Similarly, Raju said he has written to all chief ministers to slash VAT on aviation turbine fuel, as 40-45 percent of the operational cost is incurred on this. "Some (CMs) have responded, but not many of them. The tax on jet fuel ranges from four to 30 percent across states. To tax them (airlines) to death is not good. The tax on jet fuel needs to be rationalised," he stressed. The policy also will address the issue of route dispersal guidelines (5/20 rule) and inter-connectivity, as the prevailing rule does not allow an airline to fly overseas without five-year operational experience and a fleet of 20 aircraft. The ministry has identified six airports in Delhi, Mumbai, Chennai, Kolkata, Bengaluru and Hyderabad for developing them as major international hubs for aircraft, passenger and cargo movement.
