Corporate Icon Nandan Nilekani heads the UID project.What next?
Palash Biswas
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Bury GAAR operation succeded with surgical precision.Pranab is rested in the Rashtrapati Bhavan.Rural markest expanded.India has, for example, been raising limits on foreign investment in bonds, attracting much-needed inflows.FDI policy liberalised and disinvestment pushed ahead.But ndia incs seem to be restless.While P. Chidambaram's return as finance minister in late July was applauded by investors fed up with his predecessor, Pranab Mukherjee, he is still politically hamstrung from pushing through reforms such as allowing foreign direct investment in supermarkets and aviation, or cutting subsidies.Corporate Icon Nandan Nilekani heads the UID project to decide biometric citizenship.What next?Money control reports,India's economic growth may have slowed to a near-decade low, but you wouldn't know it from the pace at which Britain's Costa Coffee and many other consumer-focused companies are expanding.Net foreign institutional investment in Indian stocks and bonds has quadrupled this year to USD 16.7 billion, including nearly USD 4 billion since the start of July, with shares in consumer goods makers such as Hindustan Unilever and Godrej Consumer Products recently hitting records.The Sensex is up 14% this year, making India the second best-performing major stock market in Asia.With sluggish growth in the United States, and Europe fighting to stave off financial meltdown, many companies still covet India for the qualities that once made it one of the world's hottest investment destinations -- namely its 1.2 billion people and a swelling middle class.Our government is engaged to oblige these slow down victims!From Ikea and Coca-Cola to Krispy Kreme Doughnuts Inc and local motorcycle maker Hero MotoCorp , many companies are stepping up investment in India even as overall capital investment is down due to delays in big projects, high interest rates and global belt-tightening.
Contrary to the fiscal obligation to tame deficit, the government of India is planning to boost govt expenditure in public sector to expand the rural consumer market enhancing cash flow.Now it is said that against the backdrop of drought in various parts of the country, a proposal to raise the number of assured employment days under MNREGA from 100 to 150 will be considered by an empowered group of ministers next week with an aim of benefitting the farm labour.Moreover,In what may give a new lease of life to around 9,000 mw of power projects worth Rs. 40,000 crore, hit by lack of fuel, the government is planning changes in the accounting standards for power companies to prevent them from defaulting on loans so that their stranded assets don’t turn into non-performing assets (NPAs).As India's policy makers struggle for options to halt the slowdown in the Indian economy, a parliamentary panel on Thursday asked the government to review the foreign direct investment (FDI) policy to attract overseas capital.
Harking back to the spirit of that hoary accomplishment, a handful of eminent Indians have come together to build an institution dedicated to pedagogy and practice which could help transform and renew the country's cities and towns. Brick by brick, the intellectual and financial foundations of the Indian Institute of Human Settlements are being laid by some of India's most prominent and generous business leaders, academicians and technocrats.Economic times reports that following a donation of Rs 50 crore by Infosys co-founder Nandan Nilekani and his wife Rohini, the institute has been bestowed with gifts of money from investment banker Hemendra Kothari and Uday Kotak, the vice-chairman and managing director of Kotak Mahindra Bank.
Same Nandan Nilekani,UIDAI chairman claims that the authority had taken steps to address the shortcomings like duplication and fake enrolments identified during the first phase and efforts were underway to develop Resident Database in all States.The Unique Identification Authority of India (UIDAI) is hopeful of covering another 40 crore population under the Aadhar cards in the coming two years. A mammoth project that would lead to millions flowing out of the exchequer definitely needs to be debated at the national level.The government has shown sheer urgency in going for the UID project. If the project fails to confront the various questions and doubts being raised, it would hurt democracy. This is a dark joke making its rounds in the political corridors with the idea of investing an identity in every citizen.Many developed countries have retraced their path on the project owing to the issues of citizen privacy. The U.K had to repeal an Act of national identity register following large-scale protests from the citizens. Hungary and Germany look upon the project as a violation of privacy. Political pundits in these countries have termed it the “national e-surveillance act.”
Academia.edu | Papers in critique of UID
www.academia.edu/Papers/in/critique_of_UID
"At various points in its career the Indian state has deployed technologies to govern the country. In its latest move, the state has undertaken a number of large ...
UID: we do have doubts, concerns and confusion - The Hindu
www.hindu.com/op/2011/06/26/stories/2011062652861200.htm
26 Jun 2011 – So far in India about 15 different types of ID work, but the UID is projected to ... The UID promises to give the poor their identity, it is a tool for ..
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Why Indians should fear the UID - Rediff.com India News
- news.rediff.com › News
- 12 Oct 2010 – The Aadhaar or UID project has grave implications for every Indian. ... and Analysis Wing, CBI, Central Boards of Excise and Direct Taxes, etc).
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UID - An Apolitical Enabler or a Political Tool? at Sanhati
- sanhati.com/excerpted/3237/
- 12 Feb 2011 – Even on a purely technological level UID has faced strong criticism (e.g. a set of articles on Center for Internet and Society web site [2]).
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UID: Facility or Calamity? - South Asia Citizens Web
- www.sacw.net/article1705.html
- 25 Nov 2010 – Within hours of an enlightening critique of UID (written by Dr. Reetika Khera) appearing in a leading national daily, on 30 August 2010, Nilekani ...
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Aadhar, A Few Basic Issues | Arindam Mukherjee
- www.outlookindia.com/article.aspx?279077
- 5 Dec 2011 – The much-feted UID project acquires a few enemies who take to ..... and allow independent observers and groups to assess and critique them.
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eIndia2007: A Campaign for No UID-Till Complete Transparency ...
- eindia2007.blogspot.com/.../campaign-for-no-uid-till-complete.html
- 6 Oct 2010 – The law on privacy be urgently worked on (this will affect matters way beyond the UID project); e. A cost-benefit analysis be done; and, f.
“Aadhar being the unique identity will provide comprehensive and integrated data about who is eligible for entitlement of benefits,” he said. Asked whether the Home Ministry’s proposal to introduce Resident Identity Cards (RIC) would not contradict the work of the authority, he said the UIDAI’s work was complimentary to the National Population Register and the RIC. “Aadhar card is a resident number, not a citizenship number,” he said.
AADHAAR & NPR " RELATED ARTICLES
Why this Blog ? News articles in the Wide World of Web, quite often disappear with time, when they are relocated as archives with a different url. Archives in this blog serve as a library for those who are interested in doing Research on Aadhaar Related Topics.
The very premise of Aadhar is flawed.
Its a certification that those who claim to think on behalf of India or its underprivileged understand it so differently from the beneficiaries they think of.
In a nutshell, Aadhar will not bring about any of the benefits that are intended for its intended beneficiaries. Because that will be solving a problem of governance by adding another layer that is imaginary and unnecessary.
To call it "technological leadership" is as removed from reality as calling a reader a writer of the book. At best it will mean that we can take a technology and ram it down the throat of the poor while other nations with stronger democratic roots and respect for citizens have not been able to do so for reasons of building consensus.
"Aadhar" is like dropping a car by helicopter in a village where there is no road and hope every villager can reach wherever they may want to go.
For anyone willing to think, Aadhar is a reflection of the huge disconnect that India has from both the world of the under privileged and the rest of the world.
Please think through before supporting UID/ Aadhaar, so you do not regret your decision.
http://aadhararticles.blogspot.in/
Moving ahead with its proposal to attract investors by setting up an Exchange Traded Fund for central public sector enterprises (CPSEs), the Disinvestment Department has called the meeting of an inter-ministerial panel tomorrow to firm up the structure of the scheme.
"An IMG will meet on September 3, for guiding the process for creation of a CPSEs' ETF," an official told reporters.
The Department of Disinvestment (DoD) has already constituted an IMG headed by its Secretary Mohammad Haleem Khan for setting up the fund, the official privy to the information said.
The ETF, which is an investment fund traded on stock exchanges much like stocks, would have an underlying benchmark that could be an index on the stock exchange.
The seven-member IMG has drawn members from the Ministry of Corporate Affairs, besides Departments of Legal Affairs and Economic Affairs among others.
"The group would appoint an advisor to assist and advise the government in the process. Besides, it would appoint an Asset Management Company to act as the ETF provider for the proposed fund," the official said.
As an instrument for trading in stock market, the fund was introduced in India in 2001. Presently, there are 33 ETFs having a total asset under management (AUM) of Rs 10,850 crore, which is held by over 4 lakh investors.
The official said the usual mode of taking a partial disinvestment offering of a CPSE to the market include initial/further public offering, through stock exchange and institutional placement programme.
"The proposed ETF for CPSEs will serve as an additional mechanism for the government to monetise its shareholding in those companies that will eventually form part of the ETF basket," he added.
The ETF was introduced in India on the lines of similar instruments in the US, Europe and Latin America.
A high-profile panel set up by the Centre to finalise the proposed tax avoidance rules (GAAR) has effectively sounded the death knell for the controversial regime, and gave a huge bonanza to investors and markets suggesting that transfer of shares in listed companies be exempt from tax.Economic Times reports.
The Parthasarathi Shome-chaired committee has in its report to the finance ministry suggested that the implementation of the GAAR be deferred by three years to give more time for its effective implementation.
"The implementation of GAAR may be deferred by three years on administrative grounds," the committee has said in its report calling for intensive training of officials responsible for its implementation from assessment year 2017-18.
Industry cheered the report and said it will go a long way in lifting the mood. "Welcome Shome panel recommendations... Investment climate needs such an impetus," Deepak Parekh, chairman HDFC told ET Now, ET's sister news channel, which was the first to break the story on Saturday.
Rahul Garg, Leader Direct Tax, PwC India, said the report addresses the concern of corporates reasonably and certain features such as recommendation to abolish capital gain on listed securities are very well thought off.
The finance ministry said it will wait for the final recommendations. "This is the first draft which has been put up for public comments. We will take a call after the final report is submitted," revenue secretary Sumit Bose said on Saturday.
"The proposal to increase work days under Mahatama Gandhi National Rural Employment Guarantee (MNREGA) scheme, will come up for discussion in the meeting of the empowered group of ministers (EG0M) on drought scheduled next week," a source privy to the development said.
"Treating this year as a special case in view of drought declared in the four states, the inter-ministerial group would consider this proposal to provide relief to the rural population especially the farm workers," he added.
MNREGA assures 100 days of work every year to each household in rural areas. Generally, people avail of the benefit under the scheme during the off-season of agriculture.
The government has provided Rs. 33,000 crore to implement the scheme this fiscal, as against Rs. 31,000 crore in 2011-12.
"Since inflow of additional resources in the form of FDI is crucial in financing India's huge investment requirements, the investment climate of our country has to be improved considerably to attract FDI in areas like infrastructure, high technology and export oriented sectors," the Parliamentary Standing Committee on Finance headed by former finance minister and BJP-leader Yashwant Sinha said in a report titled Current Economic Situation And Policy Options. And it is amusing that BJP is spearheading to stall parliamentary system at its best.
A majority of CEOs are pessimistic about the Indian economy and feel that the gross domestic product (GDP) growth would fall below six% in the current fiscal and will be in the range of 6 to 6.5% in 2013-14. According to a snap poll conducted by the Confederation of IndianIndustry (CII) among the members of its National Council shows that a majority of chief executive officers (CEOs) remain pessimistic about the outlook for the economy in the current year and expect only a moderate recovery in the forthcoming year. Mind you,unhappy with 5.5. per cent GDP growth in April-June quarter, industry chambers said opportunities for revival of the economy would soon "peter out" if the government does not take immediate policy action. Expressing serious concern over the continuous slowdown in the GDP, which was the slowest pace of Q1 growth in a decade, industry body CII said the numbers leave no doubt about the "criticality" of the situation.India’s economy grew 5.5% in the April to June quarter, confirming fears of a widespread slowdown caused by a demand and investment sque-eze from a host of factors that include local policy logjam, high interest rates and sluggish exports amid a euro zone crisis
The poll results indicate that GDP growth during 2012-13 is expected to remain below six% by as many as 44% of the respondents while no one expects it to cross seven%.
Another 44% expect it to remain between 6 and 6.5%. The scenario is not likely to improve much in 2013-14 either as more than half of the respondents (52%) expect GDP growth to remain in the range of 6 to 6.5%, while only 36% expect it to lie between 6.5% and 7.5%.
"This reflects low confidence levels in industry. The first quarter GDP growth at 5.5% corroborates the fact that the slowdown is sustaining," Chandrajit Banerjee, director general, CII, said in the survey report.
According to data released by the Central Statistical Organisation (CSO) on Friday the Indian economy grew at a sluggish 5.5% in April-June 2012 period as compared to 8% in the corresponding quarter of previous year.
"Our best hope would be that the economy is bottoming out. However, from the results of the snap poll or from government data, we do not have adequate indicators to substantiate this hypothesis," Banerjee said.
On inflation,56% CEOs expect the average rate of inflation in 2012-13 to be in the range of seven to eight%, while 32% of the respondents expect it to be between six to seven%.
Only 12% expect to higher between eight to nine%. These expectations are in line with the seven% inflation projected by the Reserve Bank of India (RBI).
Majority of the respondents (over 80%) expect both domestic and international investment either to increase or remain unchanged during 2012-13.
Almost half of the respondents expect domestic investment to pick up as compared to 43% in case of international investment. Additionally, 75% of the respondents believe capacity utilisation will either increase or remain unchanged in 2012-13.
Just read this report!
Stock markets are likely to react positively tomorrow as an expert committee on General Anti Avoidance Rules (GAAR) has recommended postponement of the controversial tax provision by three years.
However, rest of the week could be volatile as global market reactions to US Federal Reserve Chairman Ben Bernanke's Jackson Hole speech is likely to keep traders busy along with a host of local cues, they added.
Bernanke in an August 31 speech to central bankers and economists at an annual forum in Jackson Hole focussed on economic challenges that the US faces while hinting the Fed will provide more policy stimulus, if needed, to aid recovery.
Back home, automobile and cement stocks will be focus this week as companies from these sectors declare monthly sales data for August.
"Stock market would react positively to the GAAR move in near term," CNI Research CMD Kishor Ostwal said.
As a step towards reassuring global investors, the GAAR committee in its draft report, also suggested that GAAR provisions should not be invoked to examine the genuineness of the residency of entities in Mauritius.
Analysts, however, said domestic investors may continue to be concerned over the logjam in Parliament, which raised the prospect of washout of the remaining part of Monsoon Session which ends on September 7, dashing hopes for much-awaited economic reforms.
"Parliament's Monsoon Session stayed immobilised due to objection and uproar from BJP over coal block allocations. This has once again raised doubts over the timely implementation of reforms," Rakesh Goyal, Vice-President, Bonanza Portfolio said.
The 5.5. per cent growth in GDP data for April-June quarter could imply weak hopes over an interest rate cut in near future and this may lead to further selling pressure in rate-sensitive sectors, he said.
Besides, rising crude oil price is not a good signal in an already slowing economy and would lead to rising costs, Goel added. Brent crude is trading over USD 100 a barrel.
According to Ostwal, "The next driver for the market is RBI policy on September 17."
On the global front, the ECB meet on September 6, remains an important event as it would give details on its plan to relaunch government bond-buying programme to help fight the region's economic crisis, an expert said.
Brokers said robust foreign fund inflows is a big positive for the equity market. In August, Foreign Institutional Investors (FIIs) were gross buyers of shares worth Rs. 48,136 crore, while they sold equities amounting to Rs. 37,332 crore, translating into a net inflow of Rs. 10,803 crore, according to a Sebi data.
http://profit.ndtv.com/news/market/article-markets-to-rejoice-panels-recommendation-to-defer-gaar-experts-310212
Overseas investors pumped in close to Rs. 11,000 crore in the Indian stock market in August - highest in six months - amid hopes of government initiatives on policy reforms and easing of monetary policy globally.
Thus, FII investment in the country's equity market has reached Rs. 63,070 crore so far this year, and Rs. 24,518 crore in the debt market during the same period.
In August, Foreign Institutional Investors (FIIs) were gross buyers of shares worth Rs. 48,136 crore, while they sold equities amounting to Rs. 37,332 crore -- net inflow of Rs. 10,803 crore (USD 1.94 billion), according to the data available with the market regulator Sebi.
This was the highest net investment by FIIs in stocks since February, when they had infused Rs. 25,212 crore. In July, they had pumped in Rs. 10,273 crore.
Market experts said that despite slowing economic growth and a high interest rate regime, foreign investors continued to prefer Indian equities on expectations that government would take fresh policy initiatives.
Besides, they said, investors were anticipating monetary policy easing by the US Federal Reserve and the European Central Bank as global economy remains fragile.
Geojit BNP Paribas Research Head Alex Matthews said, "FII inflow continues, as hopes of policy reform announcements are still alive. But if there are no reform announcements, there might be slowdown in inflow or could be a pause as well."
However, the current political environment may dashed hopes as the monsoon session of Parliament has been stalled many times following the CAG's report on coal block sanctions.
"The huge FII inflows were driven on anticipation of monetary easing by the US Federal Reserve and the European Central Bank," Destimoney Securities MD and CEO Sudip Bandhopadhyay said.
Another market analyst Kishor Ostwal of CNI Research Head said, "FIIs have been infusing money into the defensive stocks such as pharma and FMCGs which have led the inflows."
Apart from equity, FIIs also invested Rs. 265 crore in the debt market last month.
Buoyed by strong inflows, the BSE 30-scrip index, Sensex, rose 194 points or 1 per cent last month to settle at 17,429.56 points on Friday.
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