Prime Minister Narendra Modi on Tuesday said that the roll-out of the Goods and Services (GST) tax from July 1 will be "historic" and the world will witness how political parties of different ideological hues came together to usher in this major reform.
He also strongly favoured making the country self-reliant in defence and technology sectors.
Addressing a gathering at the APJ Abdul Kalam Technical University (AKTU) in Lucknow after inaugurating its new building, Modi said, "The roll out of the GST from July 1 will be historic. It will set an example for the world." The prime minister said he was grateful to all those who had contributed towards the formation of a consensus over the tax reform.
I am grateful to all the vidhan sabhas, Lok Sabha, Rajya Sabha and political parties, Modi said.
"The world will witness a transformation (in India) and how all the political parties subscribing to different ideologies united for the implementation of the GST," he said. The biggest tax reform since Independence, GST will re-shape India's business landscape by making the country an easier place to do business in and would bring down barriers between states.
It is all set to be launched at a grand function in the Central Hall of Parliament on the midnight of June 30. GST over the medium to long term is expected to lead to higher revenues for the Centre and the states while also increasing the size of the economy and having a positive impact on the GDP.
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It would unify the USD 2 trillion Indian economy and 1.3 billion people into a single market.
In his speech in Lucknow, Modi also strongly favoured making the country self-reliant in defence sector.
"We are moving forward with the dream of how to make India self-dependent in the field of defence and security," he said.
Presently India imports upto 65 percent of its defence requirements, it is estimated.
Can we not make India self-reliant in defence sector?, the prime minister asked in Lucknow.
"We are marching ahead with this dream and for this we have made policy changes and allowed 100 per cent FDI in defence sector," Modi said.
His impassioned plea to make the country self-reliant in defence sector came against the backdrop of the government recently finalising a policy under which private sector companies will be roped-in to manufacture hi-tech defence equipment like submarines and fighter jets in India in partnership with foreign entities.
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Modi also lauded the Indian Space Research Organisation (ISRO) saying that "the world took notice when India launched 104 satellites. We have such potential and have to take it forward."
He said that India "reached Mars in a budget less than that of a Bollywood movie due to the technological advancement. Our expense to reach Mars was Rs 7 per kilometer."
Lauding scientists, Modi called them "modern rishis". "Scientists are facing a challenge to produce cheap but effective drugs for the poor and needy. They are devoted to the objective of ridding the humanity of pain. Science is universal, but technology is local. We have to defeat diseases with science," he said.
Speaking here, Modi also appreciated the efforts of UP Chief Minister Yogi Adityanath in taking the state forward.
"Everyone is watching the developments in UP. They are curious about what is happening here. The Yogi government has intitiated steps to check the diseases and various hindrances prevalent in UP for years. I congratulate Yogi and his team for this," he said.
Earlier Modi also visited the premier CSIR-Central Drugs Research Institute (CDRI) here and evinced a keen interest in the research work conducted by the state-run institute. Soon after arriving here on a two-day visit, the prime minister flew in a chopper from the Amausi airport to the CDRI complex.
During his 40-minute stay at the institute, he took a round of the two laboratories.
The prime minister even used a microscope to follow the experiments and also had a brief interaction with senior scientists.
CDRI officials briefed him about certain new drugs being developed by the institute for treatment of diseases like osteoporosis and malaria.
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Modi as prime minister is the president of CSIR and this was his first visit to one of its labs.
He also planted a sapling of a medicinal plant in the CDRI premises, flanked by Governor Ram Naik and Chief Minister Yogi Adityanath.
On the first day of his visit to Lucknow, Modi also distributed sanction letters for houses under the Pradhan Mantri Aawas Yojana and inaugurated a 400 KV power line
Hours before he landed in the state capital, UP police detained 22 persons were detained over apprehensions that there may be an attempt to block his convoy or create some other kind of disturbance.
"We have detained 22 persons apprehending that they might breach security during today's VVIP visit," Senior Superintendent of Police (SSP) Deepak Kumar said. Those detained included some youth leaders belonging to the Samajwadi Party.
Managing Director of Kotak Mahendra Asset Management Co Ltd Nilesh Shah today said India has emerged as the fastest growing major economy in the world as per the Central Statistics Organisation (CSO) and International Monetary Fund (IMF)
He said the Central Government has forecasted that the Indian economy will grow by 7.1 per cent in FY 2016-17. As per the Economic Survey 2016-17, the Indian economy should grow between 6.75 and 7.5 per cent in FY 2017-18. The improvement in India's economic fundamentals has accelerated in the year. Indian Stock market is now growing up like a phenomenon to the financial establishments and showing up a new trend to the global capital market.
Mr Shah said to reconstruct the Indian Financial scenario initiatives such as Make in India, Invest India, Start up India and e-biz Mission Mode Project under the National e-governance Plan are expected to further improve the ease of doing business and provide a boost to manufacturing in the country.
He also mentioned, "As per NITI Ayog's directional framework, the government plans to focus on 5 major areas of infrastructure in order to augment overall infrastructure, attract investments and facilitate overall growth. Railways, Roads, Sagarmala project (for ports and coastal development), Inland waterways and Housing for All by 2022."
The Indian Stock market is undoubtedly depicting the new face of economic uplift for the corporate world. The entire new facet of Indian economic system has lessened the impact of the economic crisis to a greater extent.
Stressing much on the emerging Sino-Trade trends of the two powerhouses of the world India and China, Calcutta Chamber of Commerce (CCC) president Dinesh Jain in a Talk Session on the agenda of 'Re-Architecting India: Where Will It Lead Sensex To?' held in the city today said the Calcutta Chamber of Commerce is the vanguard of development in trade and commerce serving since 186 years. We at the CCC believe discussions and dialogues lead to enhancement and resolution of self and the country.
He said to reconstruct the Indian Financial scenario initiatives such as Make in India, Invest India, Start up India and e-biz Mission Mode Project under the National e-governance Plan are expected to further improve the ease of doing business and provide a boost to manufacturing in the country.
Other steps taken by the government in recent times include - Smart City, Urban development, Digital India initiative, Financial and communications inclusivity, Revitalizing public sector banks. These have shown positive results. The Indian financial scenario is not re-building, but is in making towards something newer, way bigger and better, Mr Jain added.
Also present at the session were State's top business leaders, leaders of civil society and senior members of the diplomatic core whose presence added special meaning to this occasion.UNI BM
Source: Web India 123
After years of comfortably dominating the dairy market, Amul’s turf is being encroached upon by a bunch of new entrants.
From big multinationals to local dairy giants, there is a rush of brands preying on its market and Gujarat Cooperative Milk Marketing Federation, owner of the Amul brand, is fighting back. With more ambitious brand associations, a stronger supply chain and a technological upgrade for its processing facilities, the cooperative is going all out to protect brand Amul.
To keep competitors at bay, GCMMF has drawn up an expansion blueprint worth Rs 800 crores for the domestic market that looks to bolster the milk supply chain, give a technological boost to its milk processing units and strengthen its brand extensions in frozen Indian snacks and sweets. Its strategy is driven by increased competition at home and a desire to position itself as a global brand
At home, Pepsico has just announced its entry into the market with the Quaker brand following Coke, Patanjali and ITC. Private dairies such as Prabhat, Dynamix Schreiber and other local brands are getting more aggressive and the old hands, Nestle and Mother Dairy, are expanding their product range and brand footprint. While there is no immediate threat to Amul’s leadership, analysts anticipate supply pressures on the country’s milk production.
GCMMF is also keen to position Amul as a global player. Amul was the prime sponsor of the New Zealand cricket team for the Champions Trophy in England. It got high visibility as the prime sponsor of the Black Caps, besides of course aligning with a country known as the dairy capital of the world. Amul was also the official sponsor for the Indian Rio contingent for the Olympics 2016.
R S Sodhi, MD, GCMMF. recently claimed that Amul is a bigger brand than Hindustan Unilever today.
Turnover of GCMMF has increased by about 3.5 times in the last seven years. The provisional unduplicated group turnover of member unions of Amul group has crossed Rs 38,000 crores. While HUL clocked Rs 36,128 crores for 2016-17.
GCMMF’s current turnover (2016-17) is Rs 27,000 crores. It aims to take this to Rs 50,000 crores by 2020-21. While the federation has been clocking a compounded annual growth rate of 20 per cent for seven years, maintaining a similar rate of growth is not going to be easy in the long run. The key challenge is procurement of milk.
Milk in the bank
The 18 member unions of GCMMF provide around 17.7 million litres of milk per day. GCMMF ranks among the top 13 dairy companies of the world in terms of milk processing as per International Farm Comparison Network. Analysts point out that the challenge is not only to keep the procurement steady, but also increase continuously on a high base.
Sodhi says they plan to add 50,000 to 100,000 farmers every year for the next three years. The member unions of GCMMF have also started creating their own processing plants in states like Haryana, Uttar Pradesh, Maharashtra, Madhya Pradesh, West Bengal and Rajasthan. Milk procurement from other states has also been initiated.GCMMF plans to enhance its milk processing capacity from the current level of 32 to 40 mlpd in the next three years. It has invested Rs 1,500 crores already for an increase of capacities by 5 mlpd in the last three years. Future expansions will come at a higher price as it will need to pay higher procurement prices to its farmers, which are already among the highest in the country.
GCMMF is also keen to raise its earnings from value-added products such as yoghurt, chocolates and cheese. Jethabhai Patel, chairman GCMMF said, “Based on estimated growth in market demand and our future marketing efforts, we anticipate at least 20 per cent CAGR growth in the business of GCMMF during the next five years.”
The federation has started working on enhancing capacity to meet demand and has already trebled its cheese-making capacity.
“Chocolates are another area we are focussing on. Demand is growing at 25 to30 per cent CAGR. We plan to increase our chocolates capacity five times to 2,000 tonnes per month by investing around Rs 150 crore at our plant in Anand,” Sodhi said.At present, VAP and liquid milk have an equal share in GCMMF’s overall turnover. Sodhi does not see much change in this ratio because both are growing at a similar pace. While VAP is growing at 10 to 15 per cent volume wise, milk volumes are growing at 9 to 10 per cent. Both are clocking a 19 per cent CAGR in value terms, he says.
Amul is adding to its milk powder manufacturing capacity, demand for which has burgeoned.
“We are also doing significant capacity expansion for chocolates and paneer, to the magnitude of 7.8-8 mlpd with a proposed outlay of Rs 2,200 crores,” Sodhi said.
All of this will be matched by a wider distribution network. “Our direct reach is in approximately 3,000 cities and towns plus another 3,600 through our super distribution network. We aim to double this in the next three to four years,” Sodhi said.
Ahead of Prime Minister Narendra Modi's visit to the US, the Commerce Ministry on Tuesday said bilateral trade was a "win-win" situation for both the countries even though the balance of trade was not in America's favour.
The US had started a review of its trade policy with countries with which it has adverse trade balance, Commerce Secretary Rita Teaotia told the media here.
"India is 9th on that list... but we are confident that Indian exports to the US are a win-win for both the countries," she said.
"Our products are cheaper, while the Indian information technology supports the American industry to be much more competitive," she added.
The officer said that where the US government procurement rules required so, Indian companies, like in the pharmaceuticals sector, had set up plants in the US.
"On the other hand, many US companies find it profitable to serve from India and they have thus set up base here," Commerce Minister Nirmala Sitharaman said, citing the latest agreement by a US major to manufacture fighter aircraft in India.
Source: Business Standard