Indian Current Affairs: 29.12.2006

It takes an average of 1420 days and 56 different procedures to enforce contracts.
Importing goods takes 41 days and 15 documents.
Starting new businesses takes 35 days.
Tax payments have to be made 59 times a year and the process takes 264 hours.

In the last three years, the ratio of exports of goods and services to GDP has shot up from 14.6% to 20.5%.
India’s share in global merchandise exports has doubled from 0.5% in 1990-91 to 1%.
Its share of global services exports too has doubled in just the last two years to 2.5%.
Export growth has averaged about 25% during the last three years.
During the current year, we are expected to export goods worth $125 billion and $75 billion worth of services.
If the exports and imports are combined, they would total about $450 billion during the current year.

Firstly, a society in which the fruits of development are more evenly spread, makes for a stable social environment that is attractive and reassuring.
Second, it proves that India is an enormous market and that what is being seen in only a tip of the iceberg.
Lastly, it demonstrate the tremendous resilience capability of India. We have survived the zooming oil prices, the fluctuating dollar and global recession, with barely a hiccup.

In nominal terms it is growing at an astonishing 16% per year in dollar terms.
Nominal GDP means the value of goods and services produced in a year when output is valued at current year prices.

The Central government announced that the Justice Sachar committee recommendations on removing the “inequalities” and “imbalances” faced by the Muslim community would be implemented in toto.

The hill state of Uttaranchal which was formed in November 2000 would be renamed as Uttarkhand. The President has given assent to a bill passed by the Parliament in the just concluded winter session.

As we approach the 60^th anniversary of independence, we can see three distinct stages in India’s engagement with the world:

In the first stage, lasting three decades after independence, the country suffered from a severe colonial hangover. In sought self-sufficiency, decoupling itself from the global economy, in the mistaken belief that this alone would yield economic independence to buttress the political freedom that had just been won.
In the second phase, it undertook big IMF structural adjustment loan of 1981. It began opening up cautiously, internally and externally. The pace gained momentum after the economic reforms of 1991.
In the third phase, from 2003-04 onwards, it has witnessed record growth and takeovers by Indian companies of foreign ones.

The finance ministry has set up a 7 member panel headed by HDFC chief Deepak Parekh to explore ways to spur private financing of infrastructure.
Currently as per the IRDA norms, LIC requires to invest at least 15% of its premium in infrastructure projects.

Compared to the spend on R&D by international companies, which is in the range of about 2% of their turnover, Indian companies like NTPC have spent only about 0.025% in 2005-06.
Therefore, government is thinking of imposing a cess on energy majors such as NTPC, Reliance, Cairn, GAIL, IOC etc., to spur investments in R&D.

During April-November 2006, the VAT revenues of states rose 25.5%, while growth in non-VAT states was 21%.

Over 72% of India’s population lives in rural areas according the 2001 census.
About 40% of the farmers surveyed told that they don’t want to stay on in farming.
Agriculture sector contributes approximately 20% to out GDP.

Some interesting thoughts about opportunities and threats to banking business from the telecom sector

The total money mobilized by the telecom sector as advance payments for talk time works out to Rs. 4,459 crores.
Currently consumers are using cell phones to buy items like ring tones and music from the service providers. It is believed that in the years to come, the cell phone might well emerge as one of the major payment channels. This may very well threaten a large chunk of the banking business.
Therefore, banks can think of constructively engage cell phone companies for delivery of microfinance. For telecom companies, a tie up with banks can perhaps reduce their non-performing assets and increase collection of payments. Thus there could be excellent synergies also for both of them.
With about 136.8 million cell-phone subscribers growing at about 20% per annum, it would not be too far off by the time these numbers catch up with the 334 million savings and current account numbers.

Indian Current Affairs