Happy 68th Independence Day from IndusView!
Happy Independence Day!
The Independence Day of India, celebrated on 15 August, is a holiday commemorating India's independence from the British rule and its birth as a sovereign nation on 15 August 1947.
India achieved independence following the Indian independence movement noted for largely peaceful nonviolent resistance and civil disobedience led by the Indian National Congress.
The independence coincided with the partition of India wherein the British Indian Empire was divided along religious lines into two new states—Dominion of India (later Republic of India) and Dominion of Pakistan (later Islamic Republic of Pakistan).
The Independence Day is a national holiday in India. The flagship event takes place in Delhi where the Prime Minister hoists the national flag at the Red Fort, followed by a nationally broadcast speech from its ramparts.
The day is observed all over India with flag-hoisting ceremonies, parades and cultural events. Citizens rejoice the day by displaying the national flag on their attire, household accessories, vehicles; varied activities such as kite flying, bonding with family and friends, and enjoying patriotic songs and films are seen.
India Overtakes Japan as Worlds Third Largest Economy
India has displaced Japan to become the world's third biggest economy in terms of purchasing power parity (PPP), according to the World Bank.
The 2011 round of the bank's International Comparison Program (ICP), a United Nations program in tandem with the World Bank, ranked India after the US and China. The last survey in 2005 had placed the country on 10th place.
PPP is used to compare economies and incomes of people by adjusting for differences in prices in different countries to make a meaningful comparison.
India's share in World GDP (Gross Domestic Product) in terms of PPP was 6.4% in 2011 compared with China's 14.9% and the US' 17.1%, the latest ICP showed. The survey covered 199 economies.
Despite high inflation in India in recent years, prices in the country are still well below those in advanced economies, explaining the higher raking for India on the PPP measure. But according to the International Monetary Fund (IMF), India's economy is 12th largest and only about a third of Japan's in terms of absolute unadjusted dollars.
PPP is particularly important in the study of poverty levels and quality of life across countries as it adjusts for price changes across national economies. PPP, for example, is used by the World Bank in its poverty threshold of $1.25 per day per person. Given that a dollar can buy more in some countries and less in others, PPP-based comparative analyses allow for comparisons between economies. India’s GDP per captia in PPP terms still ranks the country 127 out 199 — a reminder that the country has much to do in combating poverty.
In terms of FDI, China’s rose last year by 5.3%, to a whopping $117.6 billion, albeit at slower rates of increase than previously attained. India’s, while smaller at some $28 billion, still rose by 17% over the previous year – an increase over three times higher than that of China’s.
The World Bank’s report has been widely featured in the Indian media and is a morale-improving piece of news for a country that has been besieged by high inflation, stagnant growth, corruption, and other economic ills in the past year.
India has the potential to outpace China with new business friendly reforms to come under the new Government - investment into infrastructure is racing ahead at close to 8% growth per annum.
India Inc Cheers Modi, Says Victory to Revive Growth
Indian corporate houses and industry associations said on Friday that the Narendra Modi led Bharatiya Janata Party and its allies have won a decisive victory, enough to give the new government a free hand to formulate industry-friendly strategies and bring the country back on a high growth trajectory.
"The outcome of the General Elections reaffirms India's vibrant and dynamic democracy and would greatly help to revive growth and investor sentiments," said Ajay Shriram, President, of the Confederation of Indian Industry (CII). "The economic reforms agenda can be taken forward with a stable political dispensation and a multidimensional tool-box of policy instruments is required to kick-start growth."
He said that with prudent macroeconomic management, the economy could recover to 6.5 per cent GDP growth rate in 2014-15 as against an estimated 4.9 per cent in 2013-14. "Continued reforms could take GDP growth rate to 8% level in three years," he added.
Although the country's GDP grew at an average of 7.9 per cent between 2004-05 and 2012-2013, when the Congress-led UPA government had been in power, growth tapered to 4.5 per cent in 2012-13, and an estimated 4.9 per cent in 2013-14, as investments dropped, the infrastructure sector came to a standstill and bureaucrats grew wary of taking crucial decisions. The industry is hoping that this gets rectified, and positive sentiments drove the stock markets, taking the Sensex to an all time intra-day high of 25,000 on Friday.
"Congratulations, Shri Modi for your remarkable rise," tweeted Anand Mahindra, Chairman of the Mahindra Group. "India's impatience to rise has put you on top. May you fulfill these great expectations."
Biocon Chairperson Kiran Mazumdar Shaw said that Modi had "outperformed all electoral forecasts, and he will outperform" as India's 14th Prime Minister. "The country is entering a golden era of change," she added.
"We congratulate the winning party and look forward to partnering with the new government," said TV Narendran, Managing Director, India and South East Asia, Tata Steel. "We look forward to clarity on policy going forward and a commitment to strong action that will help the steel and mining industry to play its part with the government in enabling India's overall all - round growth." The mining sector, especially coal, had been passing through a difficult phase, riddled by scams, environmental hurdles and slipping production.
The industry wants a CEO for the country, just as a corporate needs a leader who can deliver. "India needs a CEO as a Prime Minister that Modi represents," said Bundeep Singh Rangar, Chairman of London-based consulting firm IndusView. "Modi has captured the Indian vote by combining charisma and clearly pronounced policies and successfully tapped into an anti-incumbency sentiment."
Capital investment contributes nearly 35 per cent to India's $1.8 trillion economy, but it barely grew in the fiscal year that ended in March as delays in clearances from various ministries and funding issues grounded many major projects.
Rangar said that Indian leaders had targeted $1 trillion in infrastructure investment over five years to close gaps preventing growth in manufacturing but policies still inhibited foreign investment. Growth in Asia's third-largest economy has almost halved to below 5 per cent in the past two years on weak investment and consumer demand, the worst slowdown since the 1980s. India ranked a poor 134 out of 189 countries as a place to invest and start a business.