...ministry, has a free hand to put the reform process back on track, Congress sources have said. And the PM has the support of party chief Sonia Gandhi in his initiative. Congress sources were of the view that though election results did not depend solely on the countryâ™s growth rate, the latter did play a crucial role in job creation as well as priming investment in social sector flagship schemes. With the Lok Sabha polls about 18 months away, Sonia and Singh have found a new synergy after the appointment of Pulok Chatterjee as the principal secretary to the PM. The Congress chief is kept in the loop on major reform initiatives and aam admi schemes. A senior party leader claimed that the global downturn and coalition compulsions were behind the slight slowing down of Indiaâ™s growth story. He categorically pointed out that the PM, former Finance Minister Pranab Mukherjee or Sonia could not be blamed for the current situation. Soon after he took additional charge of the finance ministry, the PM had unveiled a series of steps to boost the economy. This included building infrastructure, increasing energy potential, FDI in retail and aviation sectors, pushing economic ministries into taking steps to boost investment, managing subsidies on food, fuel and fertiliser, thrust on social sector schemes and handling petroleum prices in a rational way. A clear signal that the Congress had thrown its weight behind the PM on these reforms emanated from AICC general secretary Rahul...
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...In recent years there have been many legal changes made in India that have affected how firms run their business. The introduction of discrimination, and disability discrimination, an increase in the minimum wage and greater requirements for companies to recycle are a few examples of relatively recent laws that have been introduced and had a huge effect on an organisations actions. In recent years there have been many legal changes made in India that have affected how firms run their business. The introduction of discrimination, and disability discrimination, an increase in the minimum wage and greater requirements for companies to recycle are a few examples of relatively recent laws that have been introduced and had a huge effect on an organisations actions. Industrialisation and Urbanisation have resulted in a profound deterioration of India’s air quality with the highest number of air pollution deaths coming from India. Water pollution is also another major concern in India with most of their waters being contaminated with sewage and chemical wastes. Limited water treatment facilities means that people bath in and drink this water which carries extremely high health risks. Industrialisation and Urbanisation have resulted in a profound deterioration of India’s air quality with the highest number of air pollution deaths coming from India. Water pollution is also another major concern in India with most of their waters being contaminated with sewage and chemical wastes....
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...An Analysis of FSLRC Report – Did it deliver what it promised? Even if India can be called a forever young nation, surely its laws are pretty old. Specially in a sector like Finance, where the last few decades has seen umpteen changes, Reserve Bank of India Act, Insurance Act etc dates back to the 1930s. Though there has been moderations of the laws over the years, Indian Financial Sector and its underlying foundation is in need of holistic restructuring. Keeping this in mind, in March 2011, the Government of India, Ministry of Finance established the Financial Sector Legislative Reform Commission or FSLRC to mend the legal and institutional structure of the Indian Financial Market. The Commission was chaired by B. N. Srikrishna, former judge of the Supreme Court and the other board members consisted of virtuoso of various fields like Finance, Economics, Laws and Public Administration. The Commission took up a intense two year process starting from April, 2011 and submitted its “text of the findings and recommendations” in March,2013. For better and effective functionality in finance sector and avoid conflicts of interest among different regulatory, the Financial Sector Legislative Reforms Commission (FSLRC) recommended to have well structured Government agencies. The Commission has pitched for specialized and consolidated set of provisions on regulatory governance by bringing a bill, called Indian Financial Code Bill. Government agencies are required to perform complicated...
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...India AHEAD Ten Things for India to Achieve its 2050 Potential (BRICS estimation) >India could be 40 times bigger by 2050. > India could be 40 times bigger by 2050 than its current capacity as estimated by brics. >To achieve this, India needs to implement many changes. India needs to improve its governance, control inflation, introduce Credible fiscal policy, liberalize financial markets and increase trade With its neighbors. >It also needs to significantly raise its basic educational standards, And increase the quality and quantity of its universities. >India needs to boost agricultural productivity, improve its infrastructure And environmental quality. >Delivery of all these would ensure strong, persistent, medium to long-term Growth, allowing India to reach its amazing potential. In this project, we outline ten crucial steps that we believe India must take in order to achieve its full potential. In our latest brics analysis, India scores below the Other three BRIC nations, and is currently ranked 110 out of a set of 181 Countries. If India were able to undertake the necessary reforms, it could raise its growth potential by as much as 2.8% per annum, placing it in a very strong position to deliver the impressive growth. We highlight the ten key areas where reform is needed. In a way these are the covered ones, we consider them to be the most crucial: 1. Improve governance. Without better governance, delivery systems and effective...
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...FDI IN INSURANCE & PENSION ECONOMIC ANALYSIS OF INDIAN SCENARIO PROJECT SYNOPSIS Leading Newspaper The Times of India reported on October 4th, 2012, “Big Bang reforms: Cabinet approves 49% FDI in insurance, 26% in pension sector”. This has indeed been a big bang reform announcement post FDI in multi brand retail by the Gov. of India. In light of this our group has tried to weigh the topic in Economic terms. The synopsis of our project on this topic has been discussed henceforth in the document. INTRODUCTION The Gov. of India has allowed 49% FDI in Insurance and 26% in Pension sector. This move permits foreign shareholding in insurance companies to the extent of 49% and to 26% in pension companies with an aim to provide better insurance coverage and to augment the flow of long term resources for financing infrastructure. 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 industry has been demanding for long to increase the FDI limit for adequate funds for expansion of the sector. IRDA Chairman J Hari Narayan recently favored up to 49 per cent foreign investment in the sector. SIGNIFICANCE When a firm controls (or have a strong say in) another firm located abroad, e.g. by owing more than 10% of its equity, the former is said "parent enterprise" (or "investor") and the latter "foreign affiliate". Foreign Direct Investment (FDI) is the financial investment...
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...PRIORITIES IN E-GOVERNANCE RESEARCH PAPER SUBMITTED BY Lokesh Sharma Ankita Prasad Contents Abstract 4 Introduction 4 Research Objective 8 Literature Review 9 Research Approach 10 Impact Assessment of various projects 11 Union Government MMPs 11 MCA21 11 Online Passport Services: 12 Online Income Tax 13 Pension 14 Banking 15 E-office 15 Central Excise 16 U.I.D 17 Insurance 17 State Government MMPs 18 Land Records 18 Road Transport 18 Agriculture 19 Police 19 Treasuries 19 Municipality 20 Commercial Taxes 21 Gram Panchayats 21 Employment Exchange 21 Integrated MMP 22 CSC 22 e-Courts 22 e-Trade 22 India Portal 23 National Service Delivery Gateway 23 e-Biz 23 e-Procurement 23 Prioritizing with respect to parameters 24 Conclusion 25 References 26 Abstract e-Governance is the form of interaction between government and citizens ,businesses and other arms of government using information technology .These technology can help government is fulfilling various needs like improved interaction between business and industries ,better delivery of services to citizens ,improved interactions with business and industry ,better...
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...Y V Reddy: Fiscal policy and economic reforms Address by Dr Y V Reddy, Governor of the Reserve Bank of India, at the National Institute of Public Finance and Policy (NIPFP), New Delhi, 26 May 2008 (edited transcript). * * * Respected Professor Govinda Rao and distinguished scholars, I am honoured by my friend, Prof. Govinda Rao’s, kind invitation to me to visit the National Institute of Public Finance and Policy (NIPFP). I had the opportunity of working very closely with the NIPFP on several occasions. Apart from my personal affinity to the NIPFP, there is a close relationship between the Reserve Bank of India (RBI) and the NIPFP, from an institutional point of view also. For instance, Prof. Govinda Rao is a Member of the Southern Local Board of RBI. Initially, I thought of speaking on fiscal policy and economic reforms from a central banker’s perspective. I realised later that while I have been working as a central banker over the last one decade, I had worked for most parts of the three decades prior to that in the Ministry of Finance, in the Government of India as well as in the Government of Andhra Pradesh. So it was a difficult choice for me as to whether I should give a fiscal view of the monetary policy or a monetary view of the fiscal policy. I have worked for a short period in the World Bank, which gives a global governments’ view and also in the IMF, which gives a global monetary authority’s view. As a via-media, I have opted to give a practitioner’s perspective...
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...also benefit farmers hugely. Farmers in India today receive only a small share of the end consumer price. An organised retail has the potential to drive efficiencies in this chain and increase price realisation for farmers by 10-30 per cent through sourcing directly or closer to the farm. You could soon have cheaper air tickets as well. The government has decided to allow 49 per cent FDI in Airlines. FDI will spur more investments, lead to expansion and mergers and acquisitions as well as open up jobs. However, experts say the sector needs more reforms to be attractive enough for foreign investment. The government on Friday relaxed the FDI limit in direct-to-home (DTH), Cable Networks and teleports to 74 per cent from 49 per cent earlier. The would mean you would have a a wider range of entertainment channels to enjoy. the cabinet has proposed raising the FDI cap from 26 per cent to 49 per cent for the insurance sector. This could help in improving the quality of insurance agents and reduce mis-selling of products. The move would also aid in a better evaluation of claims and help reduce the rejection of policies. pensioners too have reason to cheer with the cabinet proposing FDI in pension. The cabinet cleared a bill to allow up to 49% foreign investment in the pension industry. This would mean pension products would be made available in the private sector as well. The opposition however has slammed the FDI move in insurance and pension....
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...------------------------------------------------- Government budget A government budget is a government document presenting the government's proposed revenues and spending for a financial year that is often passed by the legislature, approved by the chief executive or president and presented by the Finance Minister to the nation. The budget is also known as the Annual Financial Statement of the country. This document estimates the anticipated government revenues and government expenditures for the ensuing (current) financial year.[1] For example, only certain types of revenue may be imposed and collected. Property tax is frequently the basis for municipal and county revenues, while sales taxand/or income tax are the basis for state revenues, and income tax and corporate tax are the basis for national revenues. ------------------------------------------------- History[edit] The financial crisis caused by the South Sea Bubble led to the presentation of the government budget under Sir Robert Walpole. Painting by Edward Matthew Ward. The practice of presenting budgets and fiscal policy to parliament was initiated by Sir Robert Walpole in his position as Chancellor of the Exchequer, in an attempt to restore the confidence of the public after the chaos unleashed by the collapse of the South Sea Bubble in 1720.[2] Thirteen years later, Walpole announced his fiscal plans to bring in an excise tax on the consumption of a variety of goods, such as wine and tobacco, and to lessen...
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...evolving insurance sector is of vital importance for economic growth. While encouraging savings habit it also provides a safety net to both enterprises and Individuals. Insurance Companies receive, without much default, a steady cash stream of premium or contributions to pension plans. Various actuary studies and models enable them to predict, relatively accurately, their expected cash outflows. Liabilities of Insurance companies being long-term or contingent in nature, liquidity is excellent and their investments are also long-term in nature. Since they offer more than the return on savings in the shape of life-cover to the investors, the rate of return guaranteed in their insurance policies is relatively low. Consequently, the need to seek high rates of returns on their investments is also low. The risk-return trade off is heavily tilted in favour of risk. As a combined result of all this, investments of insurance companies have been largely in bonds floated by GOI, PSUs, state governments, local bodies, corporate bodies and mortgages of long term nature. Generates Long term funds for infrastructure and strong positive correlation between development of capital markets and insurance/pension sector For GDP to grow at 8 to 10%, qualitative improvement in infrastructure is essential. Estimates of funds required for development of infrastructure vary widely. An investment of 6,19,600 crore is anticipated in the next 5 years. Tenure of funding required for infrastructure...
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...Brazil under Lula: Off the Yellow BRIC Road In 2001 Goldman Sachs had created the term “BRIC” to denote the group of emerging economies with high growth potential, including Brazil, Russia, India and China. But Brazil was the underperformer of the group and had some of the worst business-environment indicators among BRIC countries. “The second Lula administration is committed to a strategy of faster economic growth and higher living standards based on investment promotion, redistributive policies and higher levels of education”. For that Lula solicited his ministers for tax-reform proposals and fiscal incentives that could boost capital investments, mostly in infrastructure, to achieve growth rates of 5% per year. During his first term Lula reduced poverty and income inequality. Lula´s cash-transfer programs reduced the number of poor people significantly and brought down the Gini coefficient of income inequality to its lowest level in recent history. Lula maintained a policy of price and exchange rate stability, increased government savings, paid off the balance owed to the IMF and managed to reduce interest rates steadily. In order to grow like China and India, Brazil would have to tackle “the Brazil cost”: * To reduce the size and importance of the informal sector * Correct some macroeconomics deficiencies (e.g the high real interest rate and a high government debt to GDP ratio) * Reduce red tape * Improve the quality of public services (e.g education...
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...Indian Life Insurance Industry with special reference to LIC of India – Prospects and Challenges Presentation of Pilot Survey To Research Development Committee Kadi Sarva Vishva Vidyalaya Gandhinagar J D Chandrapal 10E0244 - Management Scholar enrolled in PhD program Kadi Sarva Vishva Vidyalaya - Gandhinagar Prof. Dr. A.C. Brahmbhatt – (Guide) Institute of Management - Nirma University, Ahmedabad 382 481, India Mailing Address 7, Krishna flats Opp. Lalbhai Apartment Kiranpark, Nava Vadaj Ahmedabad -380013 Contact Info 9825070933 jdchandrapal@yahoo.com Key words: Life insurance, liberalization, globalization, Competition, Economic Reforms, LIC of India Changing Face of LIC of India in Response to Liberalization Abstract The purpose of this paper is to facilitate the attempts of mapping the change in LIC of India because of liberalization of Indian insurance sector. The insurance sector in India has experienced a 360-degree journey over a period of more than a hundred years. Its transition from an open competitive sector to nationalization and then back to a liberalized market characterizes this phenomenon. Economic reforms have revolutionized insurance sector. The economic reforms started, it leads to liberalization. Liberalization has sparkled a flame of globalization and privatization (LPG). The economic reforms i.e. Liberalization has posed some challenges to LIC of India. In the post liberalization period life insurance business felt...
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...in, or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise), without the prior written permission of the copyright owner. CII has made every effort to ensure the accuracy of information presented in this document. However, neither CII nor any of its office bearers or analysts or employees can be held responsible for any financial consequences arising out of the use of information provided herein. However, in case of any discrepancy, error, etc., same may please be brought to the notice of CII for appropriate corrections. Published by Confederation of Indian Industry (CII), The Mantosh Sondhi Centre; 23, Institutional Area, Lodi Road, New Delhi-110003 (INDIA), Tel: +91-11-24629994-7, Fax: +91-11-24626149; Email: info@cii.in; Web: www.cii.in Confederation of Indian Industry The Mantosh Sondhi Centre 23, Institutional Area , Lodi Road, New Delhi – 110 003 Tel.: 011-24621874, 24629994-97 : Fax: 011-24626149 Website:www.cii.in Edited, printed and published by: Chandrajit Banerjee, Director General, CII on behalf of Confederation of Indian Industry from The Mantosh Sondhi Centre, 23, Institutional Area, Lodi Road, New Delhi –110 003 Tel: 91-11-24629994-7 Fax: 91-11-24626149 email: ciico@cii.in Website: www.cii.in © Confederation of Indian Industry Contents Page A. EXECUTIVE SUMMARY B. BACKGROUND C. ECONOMIC REVIVAL 5 12 1. Fiscal Consolidation................................
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... Individual Assignment Social Security – Proposals to reform the Portuguese system Márcio Felizardo, student no. 11345 Index Introduction 4 Government Intervention – Provision of Retirement Pensions 4 Raising the Retirement Age 5 Limiting the Retirement pension 6 Conclusion 6 Bibliography 7 Introduction The present assignment will focus on the expenditure on old-age pension programs and will focus in the specific case of Portugal. Recent history shows that when economies tend to slow down their performance, there are remarkable expansions in the demand for social benefits. This enforces European governments – especially Portugal - to spend important amounts of revenue in order to provide a certain level of income to all of those who are temporarily affected by unemployment and other social problem. Along with this extra temporary expenditure, governments incur in elderly benefit programs that usually include retirement pensions and healthcare exemptions. Whenever there is a crisis, a public debate regarding efficient allocation of social security benefits arises because economic slowdown shows the fragilities of the system and forces governments to cut some benefits on permanent social security programs – which people claim to constitute a right that meet their working period contributions. It will be analyzed whether or not the systems are sustainable in the present and if there are reforms that may turn Social Security programs more efficient while...
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...system in India Sections 1.0 Financial system in India - Introduction - Evolution - Direction of household sector savings Chart 1.1 Tables 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 Household sector savings in financial and physical assets Proportion of gross household savings in financial assets Banks and financial institutions: Financial assets Indian financial system: Key financials Capital markets: Resources mobilised Stock market: At a glance Mutual funds vis-à-vis bank deposits Mutual funds: Sales and redemptions Mutual funds: Categorywise resourse mobilisation Incremental mutual fund collections to bank deposits Banks: Investments in shares NBFCs: Total assets and deposits NBFCs: Net owned funds vis-a-vis public deposits 10 10 11 11 12 13 14 14 14 15 15 15 16 Financial system in India: Overview 9 8 8 8 8 CRIS INFAC BANKING ANNUAL REVIEW: AUGUST 2002, 136 PAGES i Financial system in India 1.0 This chapter provides an overview of the financial system in India and its evolution, especially in the post-1991 reform period. The evolution of the Indian financial system can be viewed, broadly in two phases, pre-1991 and post-1991. In the post-1991 phase, a series of steps were taken to liberalise and develop the financial system. As a result of the reforms, the depth and width of the financial markets in India, in terms of the number of financial instruments and the number of active participants in the market, has improved. Subsequent to the reforms, preference...
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