Releases.........pt1

Press Information Bureau

Government of India

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Prime Minister's Office                                                                                              Highlights

Economic Outlook for 2009-10 :- Highlights

New Delhi: October 21, 2009

 

      The Indian economy weathered the financial turbulence well

·   6.7 % growth in 2008/09 – amongst the highest growth rates in the world.

·   well calibrated adjustments in the monetary and fiscal policies

Projected growth 6.5 % in 2009/10  against 6.7 % in 2008/09

·   Agriculture :  -2.0 %  (1.6% in 2008/09)

·   Industry (including construction) : 8.2% (3.9% in 2008/09)

·   Services: 8.2 % each. (9.7% in 2008/09)

Unlikely that growth will be lower than 6.25 % but may reach 6.75 %.

         Impact of international conditions

·    Recession, higher household savings and demand contraction in developed  

             economies- adverse for exports growth.

·    Encouraging signs of revival of capital flows.

·   A further negative shock to the global financial system and global inflation could threaten growth in Indian economy.

      Investment rate unchanged from 2008/09

·   Projected investment rate in 2009/10: 36.5%. Will pick up with improvement in domestic conditions.

·   Projected savings rate 34.5% in 2009/10 (33.9% in 2008/09)

 

      22.7 % deficiency in the SW monsoon will lower agricultural output       

·   Large acreage losses under kharif foodgrain, mainly rice. Rabi prospects good

·   Projected food grain production:223 million tonnes in 2009/10 (234 mt in 2008/09)

      Current Account Deficit : - 2.0 % of GDP in 2009/10 ( - 2.6 % in 2008/09) 

·   Exports projected at $188.9 billion in 2009/10

·   Imports projected at $306 billion in 2009/10

·   Projected merchandise trade deficit for 2009/10:$ 117 billion or 9.4 % of GDP.

·   Projected net invisibles: $92.2 billion. Service exports & remittances have revived.

      Capital inflows of $57.3 billion in 2009/10 ($9.1 billion in 2008/09)

·         Net accretion to reserves : $31.6 billion ( - $20.1 billion in 2008/09)

      Surge in food inflation

·         13% annualized increase in overall WPI index and 33% for primary food index in first half of 2009/10. Sharper rise in CPI indices.

·         Global inflationary pressures will be high – oil and commodity prices rising

·         Inflation in March 2010 expected around 6%

      Improvement in financial conditions – global and domestic

·   Recovery in international loan and equity markets – lower LIBOR/CDS spreads

·   Bank credit sluggish till September 2009 but corporate sector raised large amounts from the domestic capital market through debt and equity issuance.

·   Calibration of monetary measures will depend on growth and inflationary pressures.

      Serious fiscal strain

·         Projected consolidated fiscal deficit: 10.09% in 2009/10 (8.6% in 2008/09). Higher revenue and primary deficit to persist.

·         Debt of centre and states as a ratio of GDP is projected to increase to over 77% in 2009/10

·         Need to return to fiscal consolidation

      Some Policy Options – focus on agriculture and power

 

·         Short Term - managing inflation, specially food price inflation

§   Protect and enhance rabi  crop.

§   Focus on strengthening PDS distribution system

·         Medium Term – Farm economy and power

§   Improve farm productivity – use technology optimally

§   Imperative need to achieve targets and  have an active plan over a

                  time horizon of 15 years for capacity creation in electricity

§   Actively explore fuel sources like natural gas and nuclear energy

Table A: Growth – Past Performance and Projections for 2009/10

Annual Rates		2004/05	2005/06	2006/07	2007/08 QE	2008/09 Rev	2009/10 Projected
Percentage change over previous year
1. Agriculture & allied activities	0.0		5.8	4.0	4.9	1.6	–2.0
2. Mining & Quarrying	8.2		4.9	8.8	3.3	3.6	10.0
3. Manufacturing	8.7		9.1	11.8	8.2	2.4	7.7
4. Elect., Gas & Water Supply	7.9		5.1	5.3	5.3	3.4	7.4
5. Construction	16.1		16.2	11.8	10.1	7.2	8.8
6. Trade, Hotels, Transport, Storage & Communication	10.7		12.1	12.8	12.4	9.0	8.4
7. Finance, insurance, real estate & business services	8.7		11.4	13.8	11.7	7.8	8.0
8. Community & personal services	6.8		7.1	5.7	6.8	13.1	8.0
9. Gross Domestic Product (factor cost & constant prices)	7.5		9.5	9.7	9.0	6.7	6.5
Industry (2 + 3 + 4 + 5)	10.3		10.2	11.0	8.1	3.9	8.2
Services (6 + 7 + 8)	9.1		10.6	11.2	10.9	9.7	8.2
Non-agriculture (9 – 1)	9.5		10.4	11.2	9.9	7.8	8.2
GDP (factor cost, const. prices) per capita	5.8		7.8	8.2	7.5	5.2	5.0
Some Magnitudes
GDP factor cost – 1999/00 prices (Rs trillion) (Rs lakh crore i.e. Rs trillion)		26.0	28.4	31.2	34.0	36.1	38.8
GDP market & current prices  (Rs trillion)		31.5	35.9	41.3	47.2	53.2	58.6
GDP market & current prices   ( US$ Billion)		701	810	913	1,175	1,166	1246
Population (million)		1,089	1,106	1,122	1,138	1,154	1,170
GDP current & market prices per capita (Rs)		28,894	32,430	36,802	41,506	46,107	50056
GDP current & market prices per capita (US$)		643	732	813	1,033	1,010	1065

 Table B.  Balance of Payments

US$ billion	2004/05	2005/06	2006/07	2007/08	2008/09	2009/10
Merchandise Exports	85.2	105.2	128.9	166.2	175.2	188.9
Merchandise Imports	118.9	157.1	190.7	257.8	294.6	306
Merchandise Trade Balance	-33.7	-51.9	-61.8	-91.6	-119.4	-117.1
	-4.80%	-6.40%	-6.80%	-7.80%	-10.20%	-9.40%
Net Invisibles	31.2	42	52.2	74.6	89.6	92.2
o/w Software & BPO	14.7	23.8	27.7	37.3	45.2	47.3
Private Remittances	20.5	24.5	29.8	41.7	44	50.4
Investment Income	-4.1	-4.1	-6.8	-4.3	-4	-6.1
Current Account Balance	-2.5	-9.9	-9.6	-17.03	-29.8	-25
	-0.40%	-1.20%	-1.00%	-1.40%	-2.60%	-2.00%
Foreign Investment	13	15.5	14.8	45	3.5	46.9
o/w FDI (net)	3.7	3	7.7	15.4	17.5	22.8
Inbound FDI	6	8.9	22.7	34.2	35	36.9
Outbound FDI	2.3	5.9	15	18.8	17.5	14.1
Portfolio Capital	9.3	12.5	7.1	29.6	-14	24.1
Loans	10.9	7.9	24.5	41.9	5	8.7
Banking Capital	3.9	1.4	1.9	11.8	-3.4	2.9
Other capital	0	1.2	4.2	9.5	4.2	-1.1
Capital Account Balance	28	25.5	45.2	108	9.1	57.3
	4.00%	3.10%	5.00%	9.20%	0.80%	4.60%
Error& Omissions	0.6	-0.5	1	1.2	0.6	-0.8
Accretion & Reserves	26.2	15.1	36.6	92.2	-20.1	31.6
	3.70%	1.90%	4.00%	7.80%	-1.70%	2.50%
Memo
GDP mp Rs crores	3149407	3586743	4129174	5321753	5321753	5856569
US$ billion	701	810	913	1166	1166	1246
Forex rate (Rs per US$)	44.93	44.27	45.25	45.63	4563	47

 

akt/hs/sh/lv/vk/dk/kol/13:59 hrs.

 

Press Information Bureau

Government of India

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Ministry of Textiles  

Dayanidhi Maran leads trade delegation to Europe

 

ROAD SHOWS ( PHASE -1) TO MOBILISE FDI IN TEXTILES SECTOR LINED UP

 

IN ZURICH, MILAN & ISTANBUL

New Delhi: October 21, 2009

 

Thiru. Dayanidhi Maran, Minister of Textiles will be leading a high level trade delegation to Switzerland, Italy and Turkey from October 26, 2009 to November 03, 2009, to attract foreign investment in the Indian Textiles Sector. The areas identified are, establishment of Green Field Units in textiles machinery,  fabric manufacturing, garmenting, manmade fibre and yarn, and bringing investments in  technical textiles and clothing brands to Indian domestic market.

Recognizing the importance of foreign investment in textiles sector, the Ministry of Textiles had earlier commissioned a survey to identify countries with potential for investment in India. This study had identified companies in Germany, Switzerland with expertise and potential    for investing in Textiles machinery and high-end fabric, and Turkey, Italy and France with potential for investing in garmenting and apparels.

These efforts to attract investment in textiles sector reflect the philosophy of the Thiru Dayanidhi Maran. India has strong domestic market which helped it to survive the world recession. Hence, 'Come to India, Manufacture in India, Sell in India and Make Money in India'. It is the same philosophy that the Minister had applied in the Telecom Sector with magnificent results. In order to achieve the desired objectives, it is for the very first time that the Government and the Industry have synergized their efforts to attract investment in textiles sector. This is reflected in the composition of the delegation, which comprises various captains of the textiles industry.

As a part of Phase -1 of  the Road Shows , in Zurich, Switzerland , the trade delegation will have interaction with major textiles machinery manufacturers like M/s Beninger (Processing), M/s Rieter {(Spinning) (turnover US$3 billion)}}, M/s Jacob Muller {(Warping and weaving machine (turnover US$ 220 million)}, and high end fabric manufactures viz., M/s Weisbrod-Zuerrer Ltd.

In Milan, Italy, the delegation will interact with CEO of M/s Miroglio {(Yarn, fabrics and garments) (turnover US$1.13 billion)}, M/s Marzotto {(High end woolen fabric and suiting) (turnover US$1 billion)}, M/s Gruppo Coin {(Apparel and retail) (turnover US$1.1 billion)}, M/s Vincenzo Zucchi {(Home textiles) (turnover US$245 million)}, M/s Radici Group {(Fibre) (turnover US$1.7 billion)}, M/s Sinterama {(Yarn) turnover US$130 million)}, M/s Zegna {(High-end menswear and sportswear) (turnover US$ 1.3 billion)}.

In Istanbul, Turkey, the delegation will interact with representative of M/s Bilsar (Designing & Production of Shirts) and M/s Yunsa Yunlu san. Tic. A.S {(Woollen and worsted menswear fabric, woolen and cotton fabrics for women wear, home and office furniture fabric and corporate wear (turnover US$137 million)}.

In the Phase-2, the trade delegation will visit Frankfurt, Germany and Paris, France from November 23-26, 2009 with a view to attract investment in technical textiles.  It may be recalled that the Government has allowed 100% FDI in textiles sector. India has a vertical and horizontal integrated textiles value chain, and represents a strong presence in the entire value chain from raw material to finished goods. The average labour cost in India is US$ 0.7 per hour compared to US$40.75 per hour in Switzerland, US$22.31 per hour in Italy and US$4.27 per hour in Turkey.

The Indian textiles industry will require an additional investment of US$ 24 billion (Rs. 110, 000 crore) by 2015 to maintain a high growth rate of 8%. This may include domestic investment of US$ 18 billion (Rs. 82,550 crore) and Foreign Direct Investment of US$ 6 billion (Rs. 27,490 crore).The Indian Textiles Sector had been able to attract only US$200 million (0.6 % of the overall FDI of US$ 33 billion) in the year 2008, in comparison, the Chinese Textiles Industry has been able to attract foreign investment of US$ 10 billion (Rs. 45,800 crore). There is an urgent need to attract and sustain FDI in textiles sector if India has to achieve the goals of employment generation, technology up gradation, creation of brand India and attain 4% share in global trade in textiles and clothing. India, which is the only bright spot along with China in otherwise bleak global economic scenario, with ever increasing per capita, household and discretionary income, with US$ 425 billion (Rs. 19,46,500 crore) retail Industry will be an attractive destination for foreign Investment in coming years. 

Indian Textiles economy which is US$62 billion (Rs. 283,966 crore) is expected to reach US$110 billion (Rs. 503,380 crore) by 2015 comprising US$65 billion (Rs. 274,800 crore) domestic and US$ 45 billion (Rs. 206,000 crore) export. Indian Textiles and Apparel market is currently valued at US$ 40 billion (Rs. 183,200 crore) and is growing @ 14%, and most of the top global apparel retailers have their scouring network in India like JC Penney, Nautica, Dockers, Bed Bath & Beyond, Target, Kohl's, Liz, cK, Sprit, M&S, GAP, United Colors of Benetton, Mango, Zara and Dillard's.

The Switzerland with GDP of US$492.6 billion has a textiles trade of US$13 billion of which textiles trade with India is of US$89 million, and Swiss major Corporations like Reiter (Textiles Machinery), Nestle (Food products), Clarant (Chemicals) and Noviratis are firmly established in India. Italy with GDP of US$2.3 billion have a total textiles trade of US$70 billion, of which India's share is US$972 million. The Italian major corporations have a long presence in India market like Fiat, Benetton, Zucci Textiles and Perfetti Van Melle (Chewing gum). Turkey with per capita income of US$ 729.4 billion has a textiles trade of US$ 34 billion, of which India's share is US$11 million. The Turkish major corporations like Soktas Tekstil (Textiles), LIMAK (construction) and Barmek (Electrical equipment manufacturer) have a presence in Indian Markets.

The trade delegation will consist of: Mr. Dilip Jiwarajka, Vice-Chairman, Alok Industry (Fabric), Gujarat and Maharashtra; Mr. Rajender Gupta, Chairman, Abhishek Industry (Fabric), Punjab and Madhya Pradesh; Mr. Senthil Kumar, Chairman, BKS Textiles (Fabric), Coimbatore, Tamilnadu, Mr. Prashant Agarwal, Managing Director, BRFL (Fabric to Retail), Maharashtra and Karnataka; Mr. Shishir Jaipuria, Chairman, Ginni Filaments (Technical Textiles), Gujarat and Uttar Pradesh; Mr. Neeraj Saluja, Vice-Chairman, Saluja Group (Spinning, knitting and Garments), Punjab; Mr. Harish Ahuja, Chairman, Shahi Exports (Garments), Haryana, Uttar Pradesh, Karnataka and Tamilnadu; Mr. Nitin Kasliwal, Vice-Chairman, SKNL (Fabric), Gujarat, Madhya Pradesh and Maharashtra; Mr. Sachid Jain, Managing Director, Vardhman (Yarn and Fabric), Punjab, Madhya Pradesh and Himachal Pradesh; Mr. Rajesh Mandawewala, Managing Director, Welspun (Spinning, Hometextiles, Retail), Gujarat and Maharashtra; Mr. Ramaswamy, Chairman, Warsaw (Garments), Tirupur, Tamilnadu; and Mr. A.L. Ramachandran, Chairman, Vijayeswari (Yarn), Tirupur, Tamilnadu, Mr. M.M. Ellango, Chairman, Yuvraj Textiles, Tirupur; Mr. Premal Udani, Chairman, AEPC (Garments), Mr. Vimal Kirti Singh, Director General, AEPC, Mr. A. Sakhtivel, Chairman, FIEO, Mr. V.S. Velayutham, Chairman, TEXPROCIL, Mr. Britto M. Joseph, Chairman, HEPC, Mr. Ganesh Gupta, Chairman, STTEPC.

 

rm/as/dk/kol/14:00 hrs.

 

Press Information Bureau

Government of India

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Ministry of Agriculture  

National Seeds Corporation presents dividend cheque of Rs. 1.85 crore to Shri Sharad Pawar

New Delhi: October 21, 2009

 

The National Seeds Corporation (NSC) presented a cheque of Rs. 1.85 crore as dividend for the year 2008-09 to Shri Sharad Pawar, Minister for Agriculture, Consumer Affairs, Food and Public Distribution here today. The cheque was presented by the Chairman and Managing Director of the NSC, Shri S K Roongta.

The NSC has made an impressive growth during 2008-09 and surpassing all its previous physical and financial results it achieved an all time record turnover of Rs. 292.42 crore as against Rs. 227.38 crore during 2007-08, thus recording a growth of more than 29 per cent. Under the physical parameters the quantity of seeds produced increased from 8.6 lakh quintals during 2007-08 to 10.18 lakh quintals during 2008-09, a growth of 18 per cent. The quantity of seeds sold also increased from 8.15 lakh quintals to 9.96 lakh quintals, registering a growth of 22 per cent during the same period.

The NSC took several initiatives for improving its performance. These include- forging strategic business alliances for production, processing and marketing of seeds through partnership with various state governments, state seeds corporations as well as public-private partnership with leading seed companies. It has also made serious efforts in providing quality seeds to farmers in remote areas including Jammu and Kashmir and northeastern states. Under its scheme of corporate social responsibility, the NSC conducted free soil health testing, organized animal health check up camps, imparted training to seed growers and farmers, distributed seed storage bins and created water harvesting structures in seed villages.

 

mp/sb/cp/dividend(21.10.2009)/dk/kol/14:00 hrs. 

Press Information Bureau

Government of India

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Ministry of Defence  

IAF Commanders' Conference begins

THE AIR CHIEF URGES IAF COMMANDERS TO BUILD UP CAPABILITIES FOR CYBER SPACE

New Delhi: October 21, 2009

 

The Indian Air Force Commanders' Conference began at the Air Headquarters (Vayu Bhavan), in New Delhi today. The conference commenced with the inaugural address of the Chief of the Air Staff, Air Chief Marshal PV Naik.

Addressing the Commanders, the Air Chief brought forth his vision of the Indian Air Force in view of the enhanced capabilities being acquired and a three pronged approach towards the modernization process of the IAF. A modernization process that would include preserving, maintaining, upgrading and improving the current assets as well as processing the cases for acquisitions and replacements on a fast track. The IAF has made rapid strides towards attaining net centricity and has to be capable of dominating the entire spectrum of information, cyberspace and air space, he said. He emphasized that the IAF besides continuing to air maintain troops and delivering more than 37,000 tons annually should continue to sharpen its core competencies to interface with the other services to generate the requisite capabilities.

The Commanders' Conference would see the Air Officers Commanding-in-Chief of the IAF Commands carry out a data based review.

The Conference is attended by the top brass of the Indian Air Force comprising Air Officers Commanding-in-Chief of IAF Commands and the Principal Staff Officers of Air Headquarters. During the Commanders' Conference the operational challenges before the IAF are discussed. Apart from this Flight Safety, Maintenance, Administrative and Logistical issues which impinge upon the operational effectiveness of Air Force would also taken up for discussions.

 

pj/dk/dk/kol/14:00 hrs.