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Thursday, November 08, 2007

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Development | Disinvestment | Economic Reforms

Foreign Direct Investment | SEBI | Transport

   Economy

Economics experts and various studies conducted across the globe envisage India and China to rule the world in the 21st century.  For over a century the United States has been the largest economy in the world but major developments have taken place in the world economy since then, leading to the shift of focus from the US and the rich countries of Europe to the two Asian giants - India and China. 

The rich countries of Europe have seen the greatest decline in global GDP share by 4.9 percentage points, followed by the US and Japan with a decline of about 1 percentage point each.  Within Asia, the rising share of China and India has more than made up the declining global share of Japan since 1990.  During the seventies and the eighties, ASEAN countries and during the eighties South Korea, along with China and India, contributed to the rising share of Asia in world GDP. 

India is slated to become the third largest economy with a share of 14.3 per cent of global economy by 2015 and graduate to become the "third pole" and growth driver by 2035.

As the share of USA in World GDP falls from 21 to 18 per cent and that of India rises from 6 to 11 per cent in 2025, the latter emerges as third pole in the global economy, according to ADB India Economic Bulletin.

India, which is now the fourth largest economy in terms of purchasing power parity, will overtake Japan and become third major economic power within 10 years.

A growth rate of above 8% was achieved by the Indian economy during the year 2003-04 and in the advanced estimates for 2004-05, Indian economy has been predicted to grow at a level of 6.9 %.  Growth in the Indian economy has steadily increased since 1979, averaging 5.7% per year in the 23-year growth record.  Many factors are behind this robust performance of the Indian economy in 2004-05.  High growth rates in Industry & service sector and a benign world economic environment provided a backdrop conducive to the Indian economy.  Another positive feature was that the growth was accompanied by continued maintenance of relative stability of prices.  There is a paramount need to move Indian agriculture beyond its centuries old dependency on monsoon.  This can be achieved by bringing more area under irrigation and by better water management.

In spite of measures taken to attract Foreign Direct Investment (FDI), the inflow was below expectations in the last five years.  A significant achievement of the economy in the external sector has been the steady and sustained improvement in the balance of payment position.  Another notable development was the decline in the inflation rate during the five years.  

Value-Added Tax (VAT), one of the most radical reforms to be proposed for the Indian economy, has been approved by 21 Indian States.  Over 120 countries worldwide have introduced VAT over the past three decades and India is amongst the last few to introduce it.

Scale to Next Economic Level - by Aravind Sitaraman

THE government move to ensure that at least 33 per cent direct and indirect benefits of all schemes must reach women and girls is commendable. (Empowering Women, Tribune, Editorial, The Tribune, Nov 08, 2007)

Although Bollywood is much maligned for churning out mindless blockbusters, at times, it also obliquely depicts the ground realities. (Nation In Distress , Telegraph, Abhijit Bhattacharyya , Nov 08, 2007)

Warning that terrorism could trigger disasters across borders, Prime Minister Manmohan Singh today asserted that the modern societies must prepare to come together to deal with manmade disasters, be they industrial disasters or disasters caused by terrori (Pm: Terror Threat Can Trigger Disasters, Tribune, Correspondent or Reporter, Nov 08, 2007)

Religious festivals are big business in India. And Diwali is the mother of all festivals if one goes by the money spent. When Diwali was ushered in on Wednesday with Dhanteras, it climaxed a period of frenzied shopping and big spending. (Go, Celebrate, Times of India, Editorial, The Times of India, Nov 08, 2007)

Apparently not to spoil the festive mood ahead of Diwali, the Congress-led UPA government has put off till at least next week a decision on raising fuel prices, despite global crude price nearing $100 a barrel. (No Fuel Hike Till After Diwali, Tribune, Correspondent or Reporter, Nov 08, 2007)

Chief Minister Ghulam Nabi Azad today agreed that human rights violations were rampant in the Kashmir valley and custodial disappearances were also prevalent before the Congress took over the reins from the PDP two years ago. (Human Rights Violations Have Declined, Claims Azad , Tribune, Tejinder Singh Sodhi, Nov 08, 2007)

THEY were everywhere in the house, whole armies of ants, marching over the floor or on the wall. I (Two Sides Of Genocide, Tribune, Vikramdeep Johal, Nov 08, 2007)

Democracy and federalism should be the guiding principles for a new world order as power-sharing arrangements between different units of the government give a sense of belonging to various groups within the political system . . . . (Federalism Tool For Global Order: Pratibha , Tribune, Correspondent or Reporter, Nov 08, 2007)

Business executives in India are the most optimistic across in the world, when it comes to their take on inflation and the overall economy in the country six months down the lane, a new survey states. (Ceos Gung-Ho On The Economy , Deccan Herald, Correspondent or Reporter, Nov 08, 2007)

While one may find the richest man in India, disparities in the country are so wide that it isnt difficult to find the poorest man either. (India In The Billionaire Club: An Increasing Divide , Deccan Herald, Editorial, The Deccan Herald, Nov 08, 2007)

The latest export data released for the month of September 2007 by the Commerce Ministry has surprised many. (Export Resilience , Deccan Herald, Editorial, The Deccan Herald, Nov 08, 2007)

The people of Bengal did not need the state’s home secretary to tell them that Nandigram had turned into a “war zone”. That the rule of law has ceased to exist in the area is public knowledge. (End Violence, Telegraph, Editorial, The Telegraph, Nov 08, 2007)

Chief Minister Vilasrao Deshmukh completed three successful years in office. (Sharing The Benefit Of The Boom , Frontline, LYLA BAVADAM, Nov 08, 2007)

Observing that the concept of federalism is rooted in self-rule, President Pratibha Patil on Wednesday said expectations from it are very high in view of various challenges and instruments needed to be evolved to deal with them. ('Federalism Concept Rooted In Self Rule' , Singapore Times, Correspondent or Reporter, Nov 08, 2007)

On one of the worst days of fighting in the north, in which according to the military at least 63 persons were killed, Sri Lanka President Mahinda Rajapaksa unveiled a hike in defence outlay on the plea that it was essential to completely “wipe . . . . (63 Dead In Sri Lanka Fighting, Hindu, B. MURALIDHAR REDDY, Nov 08, 2007)

The global demand for energy is set to grow inexorably through to 2030 if governments do not change their policies, warns a top energy official. (Energy Needs 'To Grow Inexorably' , British Broadcasting Corporation, Correspondent or Reporter, Nov 08, 2007)

For the safety of its employees, the business process outsourcing (BPO) industry has decided to set up 24x7 hotline wireless networks and create security patrol units to keep a check on movement of cabs. (Hotline Service To Be Launched For Bpo Staff, Hindu, Correspondent or Reporter, Nov 08, 2007)

Half a century ago D. D. Kosambi — whose birth centenary merits celebration at the national level — characterised the great uprising as ‘feudal’ and yet the final verdict on its significance was positive and it was perceived as a glorious struggle. (1857: What Does It Mean To Us?, Hindu, Sabyasachi Bhattacharya, Nov 08, 2007)

Turkey’s Prime Minister Recep Tayyip Erdogan, under pressure from several quarters to remove the restraints on his country’s military and allow it to raid the bases of Kurdish rebels in northern Iraq, obtained far less than he hoped for when he met . . . (A Looming Threat, Hindu, Editorial, The Hindu, Nov 08, 2007)

The Congress Working Committee on Wednesday approved proposals to amend the party constitution to weed out bogus membership and allow for larger participation by delegates in AICC sessions. (Congress To Weed Out Bogus Membership, Hindu, GARGI PARSAI, Nov 08, 2007)

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