ECONOMY AFFAIRS OCTOBER 2012

ECONOMY AFFAIRS OCTOBER 2012

• The RBI on 30 October 2012 left interest rates unchanged but had cut the cash reserve ratio for banks and told that the inflation remained a primery concern.The repo rate unchanged at 8.00 percent, which is at the same level for the past six months. The reverse repo rate also remained at 7 percent.The new rates will be effective 3 November 2012. D. Subbarao mentioned in his quarterly policy review that with the reduction in inflation, there is an opportunity for monetary policy to act in conjunction with fiscal and other measures to mitigate the growth risks and take the economy to a sustained higher growth trajectory.The RBI, however, cut the Cash Reserve Ratio (the amount parked by banks with the RBI) by 25 basis points from 4.5 per cent to 4.25 per cent. This measure is expected to infuse Rs 17,500 crore liquidity into the banking system. The RBI cut its GDP growth forecast for Asia's third-largest economy to 5.8 per cent for the current fiscal year, from 6.5 per cent previously, and increased its projection for headline inflation in March to 7.5 per cent, from 7 per cent earlier.
  
• Ministry of Information and Broadcasting has released data about achievement of Digitization in the 4 metro cities as on 30th October 2012. The data shows that in Delhi the Cable TV digitization has touched 92% and with DTH the percentage of digitization has gone upto 95%. For Mumbai the percentage of digitization is 100% whereas for Kolkata Cable TV digitization alone has crossed 82%, along with DTH the percentage of digitization goes upto 85%. In Chennai the Cable TV digitization has reached 62% and with DTH it goes upto 86%. The overall percentage of achievement in 4 metro cities, therefore, is 89% as far as the Cable TV is concerned and with DTH, the percentage goes upto 93%. Digitization would usher in a regime of addressability and transparency, bringing a host of exciting benefits to the consumers. Digitization of the Cable TV Network would open up several opportunities for the consumers to get access to Movies and Games on Demand as well as internet.
  
• Worried over high budget deficit derailing growth, Finance Minister P. Chidambaram on 29 October, unveiled a five-year road map for fiscal consolidation to promote investments, contain inflation and take India to high growth trajectory. The government, the Minister said, will continue efforts to restrict fiscal deficit in the current financial year to 5.3 per cent of the Gross Domestic Product (GDP) and reduce it to 3 per cent by 2016-17. The fiscal deficit was 5.8 per cent in 2011-12. “As fiscal consolidation takes place and investors’ confidence increases, it is expected that the economy will return to the path of high investment, higher growth, lower inflation and long-term sustainability”, he said. Economic growth slipped to nine-year low of 6.5 per cent in 2011-12 and it is expected to fall further this fiscal. Referring to fiscal consolidation in 2012-13, Mr. Chidambaram expressed the confidence that government would be able to raise Rs. 30,000 crore from disinvestment and Rs. 40,000 crore from sale of spectrum. As regards the revenue targets, he said, “every effort will also be made to realise the revenue budgeted under tax receipts. Government also expects to be able to contain and economise on expenditure, both on Plan and non-Plan side. “While funds will be made available for essential expenditure, especially capital expenditure, every effort will be made to avoid parking or idling of funds,” he said.
  
• The Cabinet Committee on Economic Affairs on 25 October, approved the proposal for 
  1. continuing the Special Plan for Bihar in 2012-13 with an allocation of Rs.1500 crore, based on the enhanced level of cost of Rs.9985.54 crore of all existing projects, revised cost of existing projects, and the cost of new projects, if any, that may be approved by the Empowered Committee
  2. continuing the Special Plan for the Kalahandi-Bolangir-Koraput (KBK) districts of Odisha in 2012-13 with an allocation of Rs.250 crore, and
  3. continuing the special package for implementing drought mitigation strategies in Bundelkhand region of Uttar Pradesh and Madhya Pradesh in 2012-13 with an Additional Central Assistance of Rs.1400 crore. The Backward Regions Grant Fund (BRGF), which aims to catalyze development in backward areas, was approved by the CCEA in August, 2006. In its present form, the BRGF has two components, namely, District Component covering 272 backward districts in 27 States (including 22 additional districts covered in 2012-13) and State Component which includes Special Plan for Bihar, Special Plan for the KBK districts of Odisha, Special Plan for West Bengal (covered in 2011-12), Integrated Action Plan (IAP) for Selected Tribal and Backward Districts (covered in 2010-11) and Bundelkhand Package (covered in 2009-
  4. The implementation of the programmes is being done by the State Governments. The aim of the programme is to accelerate socio-economic development in the States concerned.
  
  
• Petronet LNG will set up a third LNG terminal, having initial capacity of five million tonne per annum, with an investment of Rs 4,500 crore at Gangavaram Port in Andhra Pradesh. The oil and gas explorer had signed an agreement with Gangavaram Port towards setting up a joint venture company and development of the terminal in May. The detailed feasibility report for the project had been prepared by Tractebel Engineering Limited. Petronet currently caters to over 20 per cent of the natural gas requirement of the country from its first LNG terminal at Dahej in Gujarat, which is being expanded further by another five million tonne. The company will also commission a green-field LNG terminal, having capacity of five million tonne, in Kochi by year end.
  
• The industry body ASSOCHAM and Yes Bank claimed in a joint report that India requires 9-10 million tonnes of additional cold storage capacity in order to prevent post-harvest losses. Inadequacy of storage facilities causes heavy losses to farmers in terms of quality degradation and wastage of farm produce. India produces approximately 200 million tonnes of fruits and vegetables annually out of which 35-40% are wasted. The total warehousing capacity in India is 108.75 million tonnes and another 35 million tonnes capacity is required in the 12th Five-Year Plan. The report also said that following the relaxation of FDI norms in retail, India is expected to see an investment of over Rs 40,000 crore in multi-brand segment and the organised market is likely to grow to Rs 4, 80,000 crore by 2016-17. Major foreign players are now expected to create positive atmosphere for farmers, suppliers, consumers, economy and the enterprise itself.
  
• The Government has planned End-to-end Computerization of Targeted Public Distribution System (TPDS) to make its reach more effective and beneficiaries friendly with an outlay of Rs. 884.07 crore . This plan consists of Digitization of rations cards/beneficiary and other databases, Computerization of Supply-Chain Management, setting up of Transparency Portal and Grievance Redressal Mechanisms. Digitisation of beneficiary database and computerization of supply-chain are expected to be implemented by March, 2013 and October, 2013 respectively. With computerization of supply-chain, the movement of food grains upto FPS level can be tracked and the problem of leakage and diversion can be addressed. Facilities of SMS, e-mails, toll free numbers will be used to inform the beneficiary about the availability of the TPDS supplies in the Fair Price Shop, which will ensure timely and transparent distribution of foodgrains to beneficiaries as per their entitlement. Shares of Government of India and State Governments in the cost are estimated at Rs. 489.37 crore and Rs. 394.70 crore respectively. The pattern of cost sharing between Centre and States would be on 90:10 for the North-eastern States, whereas for other States/UTs, cost is to be shared equally.
  
• The Prime Minister has constituted on 25 October, a coordination committee called the National Committee on Direct Cash Transfers, as a mechanism to coordinate action for the introduction of direct cash transfers to individuals under the various government schemes and programmes. The National Committee chaired by the Prime Minister will have as its members eleven Cabinet Ministers, two Ministers of State with independent charge, the Deputy Chairman Planning Commission, the Chairman UIDAI, the Cabinet Secretary with the Principal Secretary to the PM as the convenor. The Prime Minister may invite any other Minister/Officer/Expert to any meeting of the Committee.The National Committee on Cash Transfers will be assisted by an Executive Committee on Direct Cash Transfers chaired by the Principal Secretary to PM and the Secretaries of the concerned Ministries and the DG UIDAI. The Secretary Planning Commission will be the convenor.
  
• The Cabinet Committee on Economic Affairs on 25 October, approved the disinvestment of 10 per cent paid up equity capital of NMDC out of the Government’s shareholding of 90 percent through ‘Offer for the Sale of Shares through Stock Exchange’ (OFS) method, as per SEBI Rules and Regulations. As of March 31, 2012, the paid up equity capital of NMDC is Rs.396.47 crore. The Government of India holds 90 percent of the paid up capital in the Company. NMDC is a listed, Navratna CPSE. After the disinvestment, the Government of India shareholding in the Company would come down to 80 percent. The NMDC is a Central Public Sector Enterprise (CPSE)under the administrative control of the Ministry of Steel. It is primarily engaged in the business of iron ore mining, but is also expanding its activities towards production of steel and other value added products. It is India's largest producer of iron ore, operating two mining complexes in Chhattisgarh and one in Karnataka.
  
• The Union Cabinet on 25 October approved the National Policy on Electronics 2012. The draft National Policy on Electronics was released for public consultation and it has now been finalized based on comments from various stakeholders. India is one of the fastest growing markets of electronics in the world. There is potential to develop the Electronic System and Design and Manufacturing (ESDM) sector to meet our domestic demand as well as to use the capabilities so created to successfully export ESDM products from the country. The National Policy on Electronics aims to address the issue with the explicit goal of transforming India into a premier ESDM hub. The strategies include setting up of a National Electronics Mission with industry participation and renaming the Department of Information Technology as Department of Electronics and Information Technology (Deity).
  
• With a vision to create a Centre of Excellence for capacity building in the areas of post harvest management of foodgrain by providing training on latest developments to the aspirants internationally, a memorandum of understanding (MOU) has been signed between Department of Food & Public Distribution, Ministry of Consumer Affairs, Food & PD, Government of India and Central Warehousing Corporation in New Delhi on 25 October. Under the MOU, CWC will take over the management of training functions and related facilities of IGMRI, Hapur for developing it as a centre of excellence for the purpose of training in post harvest management of foodgrains and other agricultural commodities besides the training programme being presently conducted by CWC in different functional areas. The MOU has been signed for a period of five years effective from 25th October, 2012. The MOU envisages that CWC will develop IGMRI, Hapur as an institution of excellence to attract overseas participants from SAARC nations, neighbouring and other countries for training on post harvest management of foodgrain.
  
• Apple opened its biggest Asian store in Beijing to cash on the flourishing Chinese market which has become the second largest for the American tech giant after the US. The store, located in the city's commercial street of Wangfujing, is Apple Inc's third in Beijing and its sixth on the Chinese mainland. According to John Browett, Apple's senior vice president of retail, the new store is the company's largest store in Asia with an area of 2,300 square meters and more than 300 employees. A full range of accessories for Apple products is available in the store, Browett told state-run Xinhua news agency. China is the company's largest market outside the United States in terms of sales. China has the largest Internet population globally and is a significant market for mobile Internet devices such as tablet PCs and smart phones, according to Apple officials.
  
• Mukesh Ambani has retained his position as the world’s richest Indian for the fifth year in a row, although his net worth declined by $1.6 billion to $21 billion but remained well above that of the second-ranked Lakshmi Mittal Steel baron Mr. Mittal’s net worth also fell by $3 billion at $16 billion, making him the second richest, as per global business magazine Forbes’ annual ranking of 100 wealthiest Indians, released Thursday. Mr. Ambani, who heads energy-to-retail conglomerate Reliance Industries group, and Mr. Mittal were followed by IT czar Azim Premji ($12.2 billion), construction major and Tata group’s major shareholder Shapoorji Pallonji group patriarch Pallonji Mistry ($9.8 billion) and drugmaker Sun Pharma’s Dilip Shanghvi ($9.2 billion) in the top five. Mr. Mukesh’s younger brother Anil Ambani, who heads telecom-to-infrastructure conglomerate Reliance Group, was ranked 11th with a net worth of $6 billion.
  
• Others in top-10 ranking include Adi Godrej at sixth position ($9 billion), followed by Savitri Jindal ($8.2 billion), Shashi & Ravi Ruia ($8.1 billion), Hinduja Brothers ($8 billion) and Kumar Mangalam Birla ($7.8 billion). Even as the net worth of top-ranked persons like Mr. Ambani and Mr. Mittal fell, the collective wealth of India’s richest 100 rose by 3.7 per cent ($9 billion) to $250 billion in the past one year, Forbes said.The number of billionaires also rose to 61, from 57 last year. Sun Pharma group’s Mr. Shanghvi entered the top five for the first time.
  
• Andhra Pradesh ranks fourth in the country in total outstanding private sector investment, both domestic and foreign, as of June 2012, apex industry body Assocham said on 26 October. It accounts for an investment of 8.4 per cent. Gujarat (12.5 per cent), Odisha (10.7 per cent) and Maharashtra (8.9 per cent) are the three States ahead of Andhra Pradesh in this regard. A press release issued by Assocham said that of the total outstanding investments of Rs. 12.3 lakh crore in AP, private sector accounts for over Rs. 6.9 lakh crore thereby registering a share of over 56 per cent in the overall investments. At the national level, the private sector, with a share of over Rs. 82.9 lakh crore, accounts for over 59 per cent of the total outstanding investments across India worth over Rs. 140 lakh crore as of June 2012, the Assocham said. Private sector investments account for a whopping 86.6 per cent in the total outstanding investments worth over Rs. 4.5 lakh crore in Haryana which has a share of about 4.8 per cent in the total private sector investments made across India. “Flow of the private investments is decided by the attractiveness of investment opportunities as they are mostly driven by profitability considerations,” said Ravindra Sannareddy, chairperson of Assocham Southern Region Council. “Bureaucratic efficiency, infrastructure facilities, and ease of land acquisition influence the flow of private investments,” said Mr. Sannareddy. “Tax concessions, product market conditions and exit policies are effective tools of private investment attraction.”
  
• Microsoft on 25 October 2012 launched the latest version of its most awaited operating system Windows 8 in India that is designed to work across PCs, tablets as well as for smart phones. The new Window 8 operating system comes with a new start screen and adds more colours. Windows 8 is available in two versions, Windows 8 and Windows 8 Pro. User who are running PCs with Windows XP, Windows Vista or Windows 7, can download Windows 8 Pro for an estimated retail price of Rs 1,999. To keep its users engaged, Microsoft In India is offering a range of immersive,free and paid apps which can be downloaded using Window 8 and that includes Bharat Matrimony, BookMyShow, Burrp, Goibibo, Hindustan Times, ICICI Bank, iMobile, ICICIDirect, JustEat, MakeMyTrip Explore, Map my India, Yahoo Cricket, and Zovi.
  
• The Civil Aviation Ministry on 16 October 2012 announced to abolish the airport development fee on Delhi and Mumbai Airports, from 1 January 2013. The ministry directed the operators of the two airports to stop levying the charges for Airport Development Fee from the travellers from next year and also asked the Airport Authority of India to infuse equity in form of joint venture firms that operates the two largest airports of the nation.
  The Civil Aviation Minister Ajit Singh asked the DIAL (Dial International Airport Ltd) and MIAL (Mumbai International Airport Ltd) to submit proposals for stopping the Airport Development Fee to the Airports Economic Regulatory Authority (AERA). Charges paid by domestic fliers in Delhi and Mumbai are 200 rupees and 100 rupees and for international fliers it is 1300 rupees and 600 rupees respectively.
  
• The Union Cabinet on 18 October, approved setting up of a National Automotive Board (NAB), a body which would act as a facilitator between the government and the industry and promote R&D activities in the sector. According to sources, NAB will be a specialised body for promoting sustainable development of the Indian auto sector. Besides, it would also have a larger role in developing skills for the growing automobile sector.
  
• Director General Civil Aviation (DGCA) has suspended the Scheduled Operator’s Permit of Kingfisher Airlines. The permit has been suspended with effect from 20th October, 2012 till such time the Kingfisher Airlines submits a concrete and reliable revival plan ensuring safe, reliable, efficient and sustainable Scheduled Air Transport Services to the satisfaction of DGCA. DGCA has observed that the Kingfisher Airlines have not addressed any of the issues raised by the DGCA during the meeting held with the Airline on 02.10.2012 and the points raised in the show cause notice. They were asked to submit their operational preparedness plan for resumption of flight operations. Instead, they have sought more time to file a reply to the show cause notice not indicating any period for submitting the detailed response; therefore, the request could not be acceded to by the DGCA.
  
• A Memorandum of Understanding (MoU) for forging partnership between National Culture Fund (NCF) and Housing and Urban Development Corporation (HUDCO) for heritage initiatives was signed in New Delhi on 18 October , in the presence of the Minister of Culture and Housing & Urban Poverty Alleviation Kumari Selja. Through a series of meetings and deliberations with NCF, HUDCO has outlined 5 main areas of interest in developing the Corporate Social Responsibility (CSR) projects: Training Programmes and Capacity Building, Heritage and Disaster Management, Up-gradation of Museums, Environmental improvement and Visitor amenities and Conservation and Restoration of Heritage Buildings. NCF Executive Committee has approved the signing of the MOU with HUDCO and the offer of heritage projects that match their CSR criteria mentioned above. Subsequently a dedicated Memorandum of Agreement will be signed per project between NCF/HUDCO/implementer.
  
• The Union Cabinet on 18 October, revised the norms and enhanced rates of pension for widows and persons with disabilities. This is in fulfillment of the announcement made by the Finance Minister while presenting the Union Budget 2012-13 in the Parliament on 16th March 2012. In view of the above decision, 76 lakh Below Poverty Line (BPL) widows and 11 lakh below poverty line persons with severe or multiple disability would get enhanced amount of central assistance @ Rs. 300 p.m. This would be in addition to the contribution by the States. Further, 3.56 lakh BPL families will receive one time lump sum enhanced grant @ Rs. 20000/- in the event of death of the primary breadwinner in the family.
  
• The following are the details:- 
  1. To increase the rate of pension under the ongoing Indira Gandhi National Widow Pension Scheme (IGNWPS) from Rs. 200/- to Rs.300/- per month per beneficiary and to revise the eligibility criteria from 40-59 years to 40-79 years.
  2. To increase the rate of pension under Indira Gandhi National Disability Pension Scheme (IGNDPS) from Rs. 200/- to Rs. 300/- per month per beneficiary and to revise the eligibility criteria from 18-59 years to 18-79 years.
  3. To increase the lump sum grant under National Family Benefit Scheme (NFBS) from Rs. 10000/- to Rs. 20000/-and also to revise the eligibility criteria from 18-64 years to 18-59 years.
  4. To continue implementation of the NSAP during the 12lh Five Year Plan and to provide 3 per cent administrative charges on approved items.
  
  
• India is expected to see a slower economic growth of 5.9 percent in the current fiscal even as there are reasons to believe the "economy has turned the corner", an United Nations agency report said on 18 October. The UN Economic and Social Commission for Asia and the Pacific (ESCAP) said India's growth has been slowing down since 2011, mainly on account of "severe" monetary tightening by the Reserve Bank of India. "India is projected to grow at 5.9 percent in 2012-13 compared with 6.5 percent in 2011-12," UN ESCAP said in the report titled 'South and South-West Asia Development Report 2012-13'. Projecting a GDP growth of 6.8 percent for 2013-14, it said there are reasons to believe the economy has turned the corner.
  
• The Cabinet on19 October approved the constitution of a 14th Finance Commission to recommend on division of taxes between the Centre and the states and related financial matters for the period 2015-2020. As reported earlier, former Reserve Bank governor Y V Reddy is considered likely to be chosen as chairman of the Commission. The finance minister’s former advisor, Parthasarathi Shome, and former finance secretary Sushma Nath are reported as likely to become members. An Officer on Special Duty has been appointed to help finalise the terms of reference and decide on a venue for the Commission’s secretariat, along with other administrative issues. The 13th Finance Commission was headed by former finance secretary Vijay Kelkar.
  
• The World Steel Association gathered in New Delhi from October 9 2012 through October 11 2012 for its 46th annual convention to renew its authorities and present an outlook of the industry status. This meeting, was attended by top executives from almost 70 steel companies. During the board meetings, the industry position towards industrial safety was discussed, and the Safety Excellence awards were delivered. The association also presented an update of its steel consumption projection for 2012 and 2013. The new forecast anticipates a 2% global steel consumption growth, which clearly opposes the expansion of more than 6.3% in 2011. The debt crisis worsening in the Eurozone and the slowdown in the growth of emerging countries such as China, India and Brazil account for such decrease. It is expected for the situation to gradually improve in 2013 with a global steel consumption expansion rate of 3.1%.
  
• The Directorate General of Civil Aviation (DGCA) presented on 9 October, the 2011 Carbon Footprint Report for the Indian Aviation Industry, in line with India’s initiatives to address the climate change challenge. The report was released at the 49th Conference of Directors General of Civil Aviation (DGCA), Asia Pacific Regions being held in New Delhi. Compiled for the first time in such a detailed format, the report was prepared in cooperation with the major airlines and airports of the country and with the support of the European Union/India Civil Aviation Cooperation Project is another milestone for the Indian Civil Aviation strategy of developing a sustainable aviation framework. Some of the key points in the report are- 
  1. The carbon footprint of Indian scheduled airlines for domestic and international operations was 12,704,000 tonnes of CO₂; a 6% increase in comparison to 2010.
  2. The carbon footprint of foreign airlines serving international destinations from Indian airports, based on fuel uplift from India, reached 3,623,000 tonnes of CO₂.
  3. CO₂ emissions from Indian scheduled airline operations as well as from foreign airlines to international destinations represent less than 1% of the country’s total CO2 emissions. This number is significantly lower than the global average contribution of airlines, which represent approximately 2% of global anthropogenic emissions. Secretary General of International Civil Aviation Organisation, Mr. R. Benjamin while unveiled the Report. While, DGCA Arun Mishra was participated in this occasion.
• The National Institute for Entrepreneurship and Small Business Development (NIESBUD) an organization of the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India, engaged in training, research and other interventions with the objective of promotion of entrepreneurship and development of small and micro enterprises in the country, on 8 October, has inked MoU with the Sun Online Learning India Pvt. Ltd. for promoting the E-learning initiative developed by the Company for career planning and career enhancement. A Memorandum of Understanding (MoU) was signed today between Arun Kumar Jha, Director General, NIESBUD and Kris Srikkanth, the former Captain of the Indian Cricket Team and Director of the Company. The digital learning package consists of two Modules : Employability Skills and Entrepreneurship Skills. The understanding between the two organizations besides promoting the Initiative among the associates of the Institute is also expected to contribute towards promotion of entrepreneurial culture among different strata of the society through their holistic development.
  
• The Government decided to upgrade five airports -- Tiruchirapalli, Coimbatore, Mangalore, Lucknow and Varanasi -- to the international level. The Cabinet Committee on Economic Affairs (CCI), at its meeting, approved a proposal for the upgradation of the five airports, which have the required infrastructure in place like large terminal, immigration and customs facility to handle international operations. An international airport is one that can accommodate international flights that requires separate layers for immigrations and customs including high-end facilities at the terminal like aerobridges and mandatory runway length to accommodate jets. Currently, all of the five airports are servicing at least one international operation from airlines like Air India Express, FlyDubai, Air Asia, Thai Airways and Mihin Lanka.
  
• Unitech has agreed to sell its stake in the joint venture, which operates under the "Uninor" brand, for "a nominal amount", it said in a statement to Indian stock exchanges on 11 October. The company declined to comment on terms and conditions. Unitech, the Indian partner of Norwegian telecommunications group Telenor ASA, has agreed to sell its share of their mobile phone joint venture..
  
• The Securities and Exchange Board of India (SEBI) has decided to introduce electronic IPOs from January 1, 2013. The facility to submit the application forms would be available in more than 1000 locations which are part of the nationwide broker network of the stock exchanges and where there is a presence of the brokers’ terminals (broker centre). In the first phase, around 400 broker centres would be covered by January 1, 2013 and the remaining centres would be covered by March 1, 2013. Accordingly, details of locations including name of the broker, contact details such as name of the contact person, postal address, telephone number and e-mail address of the broker, where the application forms shall be collected, will be disclosed by the stock exchanges on their websites at least 15 days before the dates specified by SEBI for introduction of electronic IPO. SEBI also asked stock exchanges to ensure that the details disclosed on their websites are regularly updated.
  
• World bank and the Government of India on 5 October 2012 signed a loan agreement of 500 Million US Dollar for Secondary Education Project named Rashtriya Madhyamik Shiksha Abhiyan(RMSA). The project is going to help in achieving increased and good quality secondary education as directed in the framework of Rashtriya Madhyamik Shiksha Abhiyan, the flagship government of India program for gradual Universalisation of secondary education. The agreeement was signed by Prabodh Saxena, the joint secretary, department of economic affairs and Onno Ruhl, the country director of World Bank. Like Sarva Shiksha Abhiyan (SSA), the Department of School Education and Literacy of the Ministry of Human Resource Development (MHRD) under Government of India is launching Rastriya Madhyamic Shiksha Abhiyan (RMSA) with an aim to achieve Universal Access and Quality Secondary Education. Under Rashtriya Madhyamik Siksha Abhiyan, the responsibility to develop Secondary-Education Management Information system (SE-MIS) is given to the Department of Educational Planning, National University of Educational Planning and Administration (NUEPA), New Delhi.
  
• The International Monetary Fund (IMF) has slashed India’s growth forecast to 4.9 per cent for 2012due to low business confidence and “sluggish structural reforms.” The IMF had in July projected a growth rate of 6.1 per cent for the current year. During the first quarter ended June 2012, Indian economy expanded by 5.5 per cent. “India’s activity suffered from waning business confidence amid slow approvals for new projects, sluggish structural reforms, policy rate hikes designed to rein in inflation, and flagging external demand,” IMF said in the World Economic Outlook (WEO) released in Tokyo ahead of the IMF-World Bank 2012 Annual Meetings. In India, the report said, “growth weakened more than expected in the first half of 2012, an outcome of stalled investment caused by governance issues and red tape, and a deterioration in business sentiment against the backdrop of a rising current account deficit and the recent rupee depreciation.” Compared with the region’s growth performance in recent years, the near— and medium—term outlooks are less buoyant, the report said. The report has projected 6 per cent growth for the next year (2013), compared to an earlier 6.5 per cent projection. For 2012—13 fiscal, the IMF said that growth is projected to average 5—6 per cent in 2012—13, more than one percentage point lower than in the April 2012 WEO.
  
• Number of millionaires may rise 53% to 84,000 in India by 2017: report
  As many as 84,000 Indians are expected to become millionaires by 2017, according to a global wealth report. "India is likely to see a substantial jump of 53 per cent in the number of millionaires to 84,000 by 2017," Credit Suisse Research Institute's Global Wealth Report said. According to the report, the number of millionaires in emerging economies is expected to jump substantially in the next few years. China could see its number double by 2017 to almost 2 million, it said. However, the report warns that India still sees a significant amount of poverty. “While wealth has been rising strongly, and the ranks of the middle class and wealthy have been swelling, not everyone has shared this growth and there is still a great deal of poverty," the report said. The report states that 95 per cent of India’s population has wealth below $10,000. In comparison, only a small proportion of the population (just 0.3 per cent) has a net worth over $100,000. According to Credit Suisse, India has 237,000 members of the top 1 per cent of global wealth holders. There are 1,500 Ultra-High net-worth individuals (UHNW) with wealth over $50 million and 700 members with more than $100 million. Falling growth rate has seen India shedding $700 billion from its household wealth during mid-2011 to mid-2012 period, the steepest in Asia, the report said, adding that this amounts to 50 per cent of the total erosion that the continent has seen."There's no question that the economic uncertainties of the past year - particularly those affecting the Eurozone - have cast a huge shadow over household wealth," Credit Suisse said. From mid-2011 to mid-2012, aggregate global household wealth fell by 5.2 per cent in current dollar terms to $223 trillion due to the economic uncertainties, particularly those affecting the Eurozone. During the period under consideration, Eurozone members suffered the largest losses, led by France ($2.2 trillion), Italy ($2.1 trillion), Germany ($1.9 trillion) and Spain ($870 billion). Moreover, there was also a significant rise in household debt, which rose in aggregate by 81 per cent from 2000-2012. However, despite the setbacks in 2007 and the recent slowdown, household wealth has grown strongly over the past decade. The global aggregate doubled from $113 trillion, recorded at the start of the millennium, the report said. A similar kind of uptrend was witnessed in the case of India as well, where aggregate wealth more than tripled during 2000 to 2011.
  
• The report further states that household wealth is expected to rise by almost 50 per cent in the next five years from $223 trillion in 2012 to $330 trillion in 2017 and the number of millionaires worldwide would reach 46 million in 2017
  
• Sonim Technologies, holder of the Guinness World Record for the 'World's Toughest Phone' on 3 october, gave the team responsible for initiating such an incredible phenomena in the field of telecommunication.company said it was the hard work of a team of 77 skillful engineers in Bangalore who worked with teams in China and the USA. The team successfully designed the tough mobile which is intended to appeal more to construction workers, builders, site engineers and workmen.
  
• The government on 4 October, decided to move ahead with its proposal to hike foreign investment ceiling in the insurance sector to 49 per cent from the present 26 per cent. A decision in this regard was taken by the Union Cabinet headed by Prime Minister Manmohan Singh. The government also gave the green signal to foreign investment in pension funds and said the FDI limit could go up 49 per cent in line with cap in the insurance sector. Allowing FDI forms a part of the amendments to Pension Fund Regulatory and Development Authority (PFRDA) Bill, which was approved by the Union Cabinet. TheFinance Minister clarified that state-run insurance companies will remain in the public sector. With the Cabinet approving the proposal, the Insurance Laws (Amendment) Bill is likely to be taken up by Parliament for passage in the forthcoming Winter Session. The Bill introduced in Rajya Sabha in December 2008 proposes to increase the foreign direct investment (FDI) limit in the insurance sector to 49 per cent. The Insurance sector was opened up for private sector in 2000 after the enactment of the Insurance Regulatory and Development Authority Act, 1999 (IRDA Act, 1999).
  
• The Supreme Court on 5 October, stayed until further orders all mining operations, including transportation of mined iron ore and manganese in leases, in Goa. The Forest Bench comprising Justices Aftab Alam, K.S. Radhakrishnan and Swatanter Kumar granted the stay on a writ petition filed by the Goa Foundation, an environmental action group, and asked the Central Empowered Committee to give its response in four weeks. The court made it clear that no mineral, whether lying at a mine head or stockyard, would be transported until further orders.The Foundation pointed out that the Justice M.B. Shah commission, appointed in November 2010, said illegal activities in mining had been going on in the State since 2000. All 90 mines were functioning without the mandatory permission from the National Board for Wildlife and 33 of them were located within 1.5 km of wildlife sanctuaries.
  
• The International Monetary Fund has lowered its forecasts for global economic growth to 3.3 percent this year and 3.6 percent in 2013 from earlier forecasts of 3.4 percent and 3.9 percent respectively. For India, growth forecast is seen at 6 percent versus a previous forecast of 6.6 percent for the year 2013.The IMF expects the euro zone economy to shrink by 0.4 percent this year and then grow 0.2 percent in 2013.Chinese growth for 2013 is seen at 8.2 percent, versus a previous IMF estimate of 8.4 percent and Brazilian growth at 4 percent versus 4.7 percent.
  
• ADB lowered India's growth projection to 5.6 pc from 7pc projected earlier
  citing falling global demand and impact of delayed monsoon on agricultural production. India, however, can reverse the trend of falling growth by promoting economic reforms and taking steps to improve investment climate, said the ADB's Asian Development Outlook 2012 Update.
  
• India, China consumer market to touch $10 trn: BCG
  China and India combined will add up to a $10 trillion consumer market by 2020, says 'The $10 Trillion Prize', a book by Boston Consulting Group (BCG). The book further says that consumer spending in China and India will triple by the end of the decade. According to Boston Consulting by 2020, Chinese consumers will spend $6.2 trillion annually on consumer goods while Indian consumers spend would be around $3.6 trillion. The book also finds that China which had only one billionaire in 2001 witnessed a tremendous growth and the number grew to 115 by 2012. Similarly, the number of billionaires in India grew to 55 in India from 4 in the year 2001. The book written by BCG consultants Michael J Silverstein, Abheek Singhi, Carol Liao, David Michael also said that China already has three of the world’s top 10 companies by market value. In 2000, there were eight Chinese companies and one Indian company in the Fortune 500. By 2010, there were 46 Chinese companies and eight Indian companies. Further, it said by 2015, around one billion people in the country would have cell phones. Around to $350 billion in payment and banking transactions will flow through those phones – more than the total Indian credit- and debit-card market today. According to the BCG global consumer survey, 36% of Chinese and 19% of Indians expect to increase their discretionary spending over next 12 months
  
• Deepak Parekh panel for hiking power charges, rail fares:
  Suggesting big-ticket reforms to attract investment in the infrastructure sector, a high-level committee, on 3 October, recommended increasing electricity charges and rail fares. The high-level committee on financing of infrastructure, which is headed by HDFC Chairman Deepak Parekh, also pitched for 100 per cent foreign direct investment (FDI) in the telecom sector. The limit at present is 74 per cent. The panel also suggested raising prices of natural gas. These recommendations are aimed at attracting Rs.51.46 lakh crore for funding the infrastructure sector during the XII Plan (2012-17), according to the report, which was presented to Prime Minister Manmohan Singh earlier. The government, the report says, should draw “a time-bound action plan...with a view to improving the enabling environment for private investment, which is expected to finance about 47 per cent of the projected investment during the XII Plan. The share of private sector in infrastructure funding was 37.53 per cent during the XI Plan, the report says, adding that the contribution of public sector is estimated to decline to 53.32 per cent during the XII Plan from 62.47 per cent in the previous Plan.
  
• Total premium collections of life insurers dip 3.2 pc at Rs 39,357.6 c:
  Total premium collections of life insurers dipped by 3.18 per cent in April- August period this year at Rs 39,357.6 crore, according to Insurance Regulatory and Development Authority (IRDA). During the first five months of current financial year the largest public life insurer Life Insurance Corporation of India's (LIC) premium collection also declined by 3.2 per cent at Rs 29,893.21 crore, the insurance regulator's data showed
  HDFC Bank on 4 October 2012 tied up with Indian Oil Corporation where rural Petrol Pump Outlets of Indian Oil will act as HDFC Bank Business Correspondent (BCs). It is unique and first kind of tie-up, where an oil distribution company is coming up with the bank to make available modern banking services to the people of remote areas. The Indian oil is going to make it possible through Kisan Seva Kendra which is an retail outlet model pioneered by Indian Oil to cater to the needs of customers in the rural segment. HDFC Bank planned to cover 1000 Kisan Seva Kendras in a phased manner and each of these outlets will be able to serve around 1,500 customers. The Kisan Seva Kendra outlets will offer banking services such as preliminary processing of loan applications, disbursal and collection of small value deposits, sale of micro-insurance, mutual funds and other investment instruments. HDFC plan is to bring 10 million families into its banking Fold.
  
• Govt approves draft of 12th Five Year Plan:
  The Union Cabinet on 4 October 2012 approved the 12th five-year plan with its aim to renew Indian economy and use the funds from government in improving the facilities of education, sanitation and health. This plan has seen a three-fold increase in the budget constraints when compared to that of the 11th five-year plan. The plan would infuse a huge fund of Rs 47,70,000 lakh crore and this will help to accomplish the economic growth to an average level of 8.2 percent. 12th five-year plan is guided by the policy guidelines and principles to revive the following Indian economy, which registered a growth rate of meager 5.5 percent in the first quarter of the financial year 2012-13. The plan aims towards the betterment of the infrastructural projects of the nation avoiding all types of bottlenecks. The document presented by the planning commission is aimed to attract private investments of up to US$1 trillion in the infrastructural growth in the 12th five-year plan, which will also ensure a reduction in subsidy burden of the government to 1.5 percent from 2 percent of the GDP (gross domestic product). The UID (Unique Identification Number) will act as a platform for cash transfer of the subsidies in the plan. The plan aims towards achieving a growth of 4 percent in agriculture and to reduce poverty by 10 percentage points, by 2017. The formulated draft of the plan would be presented for final approval before the National Development Council (NDC) that is headed by the Prime Minister having the Cabinet Ministers and Chief Ministers on board. National Development Council (NDC) is the apex decision- making body and authority to signal the five-year plan in the nation