New Delhi: Indian economy is expected to be a $ 6.5-7 trillion economy by 2030, and at the current exchange rate it would touch $10 trillion by 2035-40, Chairman of the Economic Advisory Council to the Prime Minister (EAC-PM) Bibek Debroy said on Thursday. The per capita income in India by 2030 will, however, be just $4,000, still less than many other countries, he said. "In the year 2030, India's national income will be around $6.5-7 trillion. If exchange rate remains what it is today then by 2035-40, India will be $10 trillion economy
"And if exchange rate appreciates then India will be $10 trillion economy before 2035," Debroy said at Skoch summit here. India will be remarkably different country as the size of its economy will enhance the country's role in global affairs, he said.
He also said that people are not seeking government jobs today, instead more and more people are providing jobs to others. Talking about the issues related to land, Debroy said it is a contentious issue and it is very inefficiently used in India. "We don't have clear system of land titling." A few days ago, Debroy had also said that eliminating tax exemptions can help increase the tax-to-GDP ratio. Blaming India Inc's lobbying for tax exemptions, Debroy, early this month, remarked that he hopes that the government panel tasked with reviewing the Income Tax (I-T) Act would look into this aspect.
He, however, was quick to add that a "consensus" is yet to evolve on the subject and any announcement is unlikely in the next Budget. Debroy claimed revenue worth 5 per cent of GDP is lost to exemptions and if these exemptions are eliminated, the tax-to-GDP ratio will be 22 per cent.
Source:- NDTV News
New Delhi: Maruti Suzuki, the country’s largest car maker, which plans to start selling electric vehicles (EVs) by 2020, has decided to commission a market survey to understand customers’ expectations from such vehicles. According to R.C. Bhargava, chairman of Maruti Suzuki India Ltd, the firm needs to understand what customers think of electric vehicles and expectations regarding availability of charging stations.
“If electric vehicles have to succeed, then it has to be in line with customer expectations. So far, nobody has any idea about what the customers think of electric vehicles. Before making a product, we have to know what the customers are looking for in the segment. When we first launched the Maruti 800 as well, a customer survey was conducted based on which the product was developed,” added Bhargava.
Starting in January, the company will conduct the survey over five to six weeks.
Maruti Suzuki will start selling electric vehicles by 2020, when the first product from the tie-up between Toyota Motor Corp. and Suzuki Motor Corp. is expected to be launched in India.
The New Delhi-based car maker also plans to set up charging stations along with the launch of electric vehicles.
“We will have to establish charging infrastructure once we start selling these vehicles in 2020. I don’t think there will be enough infrastructures available for charging vehicles by then,” explained Bhargava.
Apart from working on electric vehicles with Toyota, Suzuki Motor has also set up a lithium-ion battery manufacturing unit in Gujarat in a joint venture with Toshiba Corp. and Denso. This move would probably give the company an edge over its competitors, when it comes to increasing the localization—sourcing of automotive components from local manufacturers.
According to Bhargava, it is imperative for car makers to increase usage of locally-sourced components for electric vehicles (localization), otherwise it would not be feasible to import so many batteries.
“Make in India will fail if batteries and electric motors are not manufactured here. Assuming 40% of cars by 2030 will be electric, then the total number of electric vehicles will be 4 million. For Maruti, the strategy has always been to increase localization of products and it will not change in the future as well,” Bhargava added.
The arrangement between Suzuki Motor and Toyota Motor suggests that Maruti Suzuki will sell the electric vehicles in India and also look after the service of those vehicles.
No decision has, however, been taken about where the electric vehicles will be manufactured.
The union government has been very categorical about promoting fully electric vehicles in India and has clearly dissuaded car makers from introducing mild, full or plug-in hybrid vehicles by substantially increasing taxes under the goods and services tax (GST).
“The need of the Indian consumers is very different from global consumers, and regarding EVs also this is not going to be different. Traffic and road infrastructure is also different here. Maruti Suzuki being the market leader has a responsibility and it does not make sense to launch an EV without knowing the customer expectations,” said Puneet Gupta, associate director, automotive forecasting, IHS Markit.
Source:- Live Mint
With a net worth of $38 billion, Reliance Industries Ltd (RIL) chairman Mukesh Ambani has topped Forbes' annual list of India’s 100 richest tycoons of 2017, a statement said here on Thursday.
“Reliance Industries Ltd chairman Mukesh Ambani has topped Forbes’s annual list of India's 100 richest tycoons, with a net worth of $38 billion. To put it in context, this is equal to the entire GDP of the former Soviet republic of Azerbaijan, as per World Bank Data 2016 estimates,” the statement said.
Forbes India will release the 2017 India Rich List by way of a special issue that hits the stands on November 6, 2017. The richest newcomer in the list is Wadia Group of companies Chairman Nusli Wadia (No. 25, $5.6 billion).
At $19 billion, the net worth of Wipro's Azim Premji -- who jumped two places up over last year to become the second richest Indian on the list -- is almost equal to Afghanistan's GDP of $19.4 billion, the statement said. The Hinduja family maintained the third position ($18.4 billion) in the list.
Last year's second richest Indian, Dilip Shanghvi of Sun Pharmaceuticals (No. 9, $12.1 billion) is the biggest dollar loser on the list as his net worth fell by $4.8 billion.
“The Indian economy is still grappling with the impact of demonetisation and GST. This makes The Forbes India Rich List 2017 edition special since it features those who have faced the challenges head on and continued to deliver phenomenal results.
The list has come to stand as a testament to brand India and also puts many emerging successful entrepreneurs on the global map,” said Forbes India CEO Joy Chakraborthy.
According to the list, the total wealth of India's top 100 billionaires, which stands at a whopping $479 billion, is more than the country's foreign exchange reserves estimated at $402.5 billion in September 2017.
The entry point to the list is at its highest ever, at $1.46 billion. Last year, the minimum amount required to make the list was $1.25 billion, 17 percent lower than this year. The aggregate wealth of the top 100 has risen 26 per cent over last year.
MELBOURNE: Ahead of his first official visit to India, Victorian Premier Daniel Andrews today said the state government is formulating a strong and effective strategy to further strengthen business links with India.
The premier who is set to visit in January said the strategy plan will be a positive framework that will have real targets, milestones and metrics.
The four key themes of the strategy will encompass meaningful engagement, equal exchange, personal connections and long term commitment, Andrews said at a business forum.
The strategy will explore how the state can work with key stakeholders in seven key areas of strengthening personal connections, creating new ways of working together, building knowledge and understanding of India across government and industry.
It will also explore ideas to invest in structures to help state government connect with India, focusing geographically and driving closer engagement across priority sectors.
He said the government had over 180 consultations with stakeholders so far to develop the strategy.
"We also want to invest in the pivotal drivers of economic growth," he said, adding sectors, where the two sides can partner together, are counter-terrorism, cyber security, transport industry, education, health, water management and urban planning.
Victoria has lot to offer to India in terms of service sectors, including education, tourism, road safety management, developing smart cities, water and waste management, said Manika Jain, Consul General of India in Melbourne.
"India is very complex and a little difficult as it has various centuries living together side by side in one city... so making that city a smart city has many folds," Jain pinpointed while stressing on areas of developing partnership in smart cities development.
"Australia has done well in the area of water management and we can collaborate in that too," she said.
Jain commented that there was a learning experience that India could offer to Australia which was dealing with new migrants from different parts of the world.
Under the new strategy, the state government identified that there were opportunities for Victoria to partner on health, education and livable cities and places, infrastructure development, water management, clean technology and environmental protection.
Other areas of growth identified were sports, creative industries, entrepreneurship and innovation and e commerce while continue supporting engagement in more established areas of agriculture, IT and tourism.
Victoria welcomed over 1,11,000 visitors from India and is home to over 200,000 people of Indian-origin.
India is the largest source of international students for Victoria.
Source: Economic Times
Prime Minister Narendra Modi on Friday described India as one of the fastest growing economies in the world while inaugurating World Food India 2017 at Vigyan Bhavan in New Delhi. The Prime Minister further applauded India’s jump in World Bank’s ease of doing business rankings. “India has jumped 30 ranks this year in the World Bank Doing Business rankings. India was ranked number 1 in the world in 2016 in greenfield investment. India is also rapidly progressing on the Global Innovation Index, Global Logistics Index and Global Competitiveness Index,” he said
Talking about home-based cooking techniques in India, he said, “Simple, home-based techniques, like fermentation, have resulted in creation of our famous pickles, papads, chutneys and murabbas that excite both the elite and the masses across the world,” he said. Modi described train passengers in the country as customers for the food processing industry. He also called the farmers in the country as annadata and said: “Our farmers, whom we respectfully call as annadatas are central to our efforts in food processing."
At the start of the three-day event, PM said: “The government has undertaken a range of transformational initiatives. India is now the most preferred investment destination in this sector (food processing). It is a priority sector in our Make in India programme. 100 per cent FDI, is now permitted, for trading, including via e-commerce, of food products manufactured in India. A single-window facilitation cell provides handholding for foreign investors. There are attractive fiscal incentives from the Union and state governments. Loans to food and agro-based processing units, and cold chains, are classified under priority sector lending, making them easier and cheaper to obtain."
“The unique portal — Nivesh Bandhu — or investor’s friend — that we have just launched, brings together information on Central and state government policies, and incentives provided for the food processing sector. It maps resources up to the local level, with processing requirements. It is also a platform for business networking, for farmers, processors, traders, and logistics operators,” the PM said.
“The combination of traditional Indian food, with modern technology, processing and packaging, can help the world rediscover the health benefits, and refreshing taste of Indian food ingredients. To improve last mile delivery, we are improving governance, by increasing access to digital technology. We plan to link our villages through broadband connectivity, within a clear time frame. We are digitising land records, and providing various services to the people on mobile platforms,” he added.
Food processing minister Harsimrat Kaur Badal said WFI was a “historic achievement” for the food processing industry with over 7,000 stakeholders from 60 countries converging on one platform. She said that the fair received investment proposals worth Rs 65,000 crore, which would create over ten lakh jobs.
Source:The Indian Express