The recent <keyword id="203626" type="COMPANY" weightage="20" keywordseo="World-Bank-Report">World Bank report</keyword> ‘Ease of Doing Business’ placed <keyword id="3658" type="COUNTRY" weightage="20" keywordseo="India">India</keyword> at the 134th position in a list of 189 economies. The report, which evaluated countries on various parameters relating to business and regulatory environment, amply reflected how the country is perceived across the globe when it comes to regulatory and infrastructural ambience for setting up companies and doing business. 
 
While Singapore, Hong Kong, New Zealand, the US and Denmark bagged the top five positions, India even lagged countries that have hitherto been considered ‘less civilised’ for enabling business environment due to autocratic and repressive regimes, debilitating internal strife and haunting hunger and famines like Uganda, Ethiopia, Honduras, Mongolia and Nepal. Despite tall claims of being a counterforce to a resurgent China and one among the world’s top economies, being ranked behind some of the most impoverished African nations in terms of business ambience is a tag that will mar the country’s image among global peers for years to come. 
 Why India is perceived so unfriendly when it comes to facilitating business and attracting companies? The country inherited a huge colonial baggage of red-tapism that got entrenched in its social fabric during the socialist era under Jawaharlal Nehru. Over the years, a litany of harsh regulations, niggling rules and serpentine reporting structure meant that doing <keyword id="1190222" type="UNKNOWN" weightage="20" keywordseo="business-in-India">business in India</keyword> is a humongous challenge. Consider these: companies need to get dozens of clearances to operate; complying with labour law requires employers to maintain 16 separate types of worker registries; starting a business requires an entrepreneur to follow 12 procedures which would take at least 30 days. This is in addition to the need for lavishly greasing the palms of politicians and bureaucrats to get things done in a system that is neck deep in corruption. The existing land law that makes acquiring land for industrial purposes virtually impossible adds to the can of worms. The unsurpassable clout of labour unions that can any time throw a spanner in companies’ operations is another thorny hurdle that entrepreneurs have to live with. 
 
Prime Minister Narendra Modi’s vision of cutting the red tape assumes importance against this backdrop. His recent visit to Japan is remembered—among other things like the $33 billion investment he managed to elicit—for the clarion call ‘come make in India’ he made to Japanese companies and investors. It was an extension of his Independence Day speech when he exhorted global firms to come and manufacture anything from electronic items to chemicals, satellites and submarines in India. 
 
The ‘make in India’ campaign, which is expected to do for investment sentiment what the ‘Incredible India’ campaign has done for tourism, is aimed at reviving the manufacturing sector and taking the economy on a sustainable high growth path. As part of the campaign, which is expected to lift manufacturing growth to 10 per cent over the long term, thousands of global companies from across the globe including the US, the UK, Japan, Korea, Sweden, Poland, Australia, China, Italy, Germany and France, are expected to be invited to explore investment possibilities in India and set up manufacturing units in the country to supply to the rest of the world. An eight-member panel under the Department of Industrial Policy and Promotion will help redress grievances and handle queries of global and domestic investors within 24 hours. In addition to interacting with investors, the panel is also given a mandate to coordinate with central and states departments to resolve infrastructural bottlenecks and issues related to policy. Indian embassies around the world too are expected to join the campaign, which is reminiscent of Modi's ‘Vibrant Gujarat’ summits each of which resulted in investments worth billions of dollars in Modi’s home state. 
 
The campaign is seen as the first step to reform the bureaucratic and policy-related machinery to revive the job-generating manufacturing sector by attracting huge investments. But to extend it to a fruitful level, the government has to tackle a host of issues including reforming land laws, revamping infrastructure including constructing bigger ports and better roads, ensuring uninterrupted power for industrial activities and doing away with an uncertain tax regime. 
 
Going by the way ISRO scientists succeeded in putting the fully home-grown Mangalyaan into Mars' orbit, making India the first country to be successful on its maiden Mars mission, the Modi government is on the right path to transform ‘the world’s back office’ to ‘the world’s factory’ too.

Transforming India: From ‘The World’s Back Office’ To ‘The World’s Factory’

Spy agency boffins call it <keyword id="2284504" type="UNKNOWN" weightage="100" keywordseo="Network-Traffic-Analysis">Network Traffic Analysis</keyword>. But the faceless bureaucrats who will run India’s first tech-centric mass surveillance programme have come up with a catchier name for it – it is called <keyword id="26425" type="CITY" weightage="100" keywordseo="Netra">NETRA</keyword> (means the eye in Hindi). 
 Whatever you call it, NETRA is attracting (un)flattering comparisons with notorious programmes like the <keyword id="376084" type="PERSON" weightage="100" keywordseo="Prism">PRISM</keyword> of the <keyword id="38879" type="ORGANIZATION" weightage="100" keywordseo="NSA">NSA</keyword>. That’s because the Indian intelligence agencies are going down a familiar route of scooping up every tweet, e-mail, phone call, chat history and text message out there to find out if a plan is afoot to undermine India’s national security afoot. 
 
As a nation, Indians are traditionally blasé about being snooped upon. Maybe it is a legacy of the Colonial times when it was assumed that the British rulers would be keeping tabs on the mischief-making natives or the familiarity with India’s current political culture where parties in power regularly use intelligence agencies to swoop on their political rivals. 
 
In a western democracy, allegations that a prime ministerial hopeful used government surveillance to swoop on a woman for personal/professional reasons would have derailed the person’s bid for the highest executive office in the land. In India, such matters were quickly brushed aside as part of the hurly-burly of power politics and the election outcome showed people had bigger problems on their mind. 
 
There is also a greater desensitisation to being watched upon. Step into a mall or a multiplex and CCTV cameras are difficult to miss. Plus, gaining entry into such a public place is only possible after a security pat down from a private security person. So you are already used to being treated as a suspect. 
 
While a Google or Yahoo! in India may complain like their western parents about government demands to part with user data, that’s just one side of the corporate coin. The other side is the opportunity to mint huge amount of money from the explosion in demand for security solutions – from the humble electronic safes to sophisticated intruder-detection systems. 
 
Analysts put the Indian market for security devices in the region of $650 million. While household names like Godrej and Mahindra have subsidiaries specialising in security products, a new breed of tech-savvy security start-ups with focus on the Internet, communication protocols and data (firms such as Paladion and ClearTrail Technologies) have emerged in the country. 
 
The Indian authorities, too, are well-versed in intruding upon the virtual existence of Indian citizens. Before he was booted out by an angry electorate, former IT minister Kapil Sibal had already incurred the wrath of an overwhelmingly young population by trying to curb their Internet freedom. 
 
Programmes like NETRA would up the ante, both in terms of the technology they leverage for surveillance and the way they invade an individual’s private space in the virtual world. Media reports that describe the system as storing only 300 GB of data or say that the system is primed to sniff out keywords like bomb, attack or kill are quite sketchy, though. Indian intelligence agencies may underperform due to political interferences and red tapism but the people running them are smart enough to know that they will be dealing with petabytes of data and adversaries using cryptic codes and protocols to communicate their nefarious intent. That gives them the legitimate cover to look at every piece of communication. 
 Just as the true extent of the NSA’s <keyword id="6392096" type="PERSON" weightage="100" keywordseo="Spying">spying</keyword> was never known or understood by the Senate and the Congressional committees that were supposed to have control over them, it may take a Snowden-like scandal for Indians to get an inkling of Netra’s true capabilities. 
 
As this enhanced surveillance will be done in the name of protecting India’s billions from security threats, the media may do well to focus on the stalled Intelligence Services (Powers &amp; Regulation) Bill 2011. The bill asks for the appointment of an oversight mechanism to govern the unprecedented powers intelligence agencies and their political masters are gaining now. 
 
Such a bill will bring India in line with the legal framework established in countries like the US and the UK. As the famous quote goes – eternal vigilance is the price of liberty. As India’s intelligence agencies make plans to watch every move made by millions, someone should be watching them.

What Happens When We Add More Byte To India’s Espionage Infrastructure

In a country with 1.25 billion population, health care can be a complicated concept. With policies and laws around health care and supportive system warped in time, India has turned into one of the lowest organ donating countries in the world to have woken up to the concept. This problem has two sides to it. Statistics show that less than one in a million donate their organs, or pledge their organs for donation. 
 Firstly, it would be around the practices and beliefs surrounding the death of a person. Second and most important one is creating the infrastructure that aids <keyword id="48430" type="UNKNOWN" weightage="100" keywordseo="Organ-donation">organ donation</keyword>. First issue is something that is rooted in the Indian psyche. Second one, though can be helped in a short span of time if systems are speeded up, needs some focused work on part of the government to take the cause of organ donation further. 
 
After all, this is a country where 200,000 people need a new kidney every year. And 100,000 need a new liver. But then, only 2% to 3% of the total demand comes close to even being met. There is also a huge paperwork and <a href="http://www.businessinsider.in/searchresult.cms?query=red+tapism+">red tapism</a> involved in the process. As if this is not enough, there is hardly any awareness among people about organ donation. As a result, when a person is declared <keyword id="106702" type="UNKNOWN" weightage="100" keywordseo="brain-dead">brain dead</keyword>, it becomes the prerogative of the family members to ensure organ are donated or preserved, based on the infrastructure of the hospital. This is centered around the urban areas, and rural pockets still suffer both ways – as donors and as receiver as well. 
 
It so happened that the country lost one of its prominent politicians to a liver related complication since he did not get his match on time. Former CM of <a href="http://www.businessinsider.in/searchresult.cms?query=Maharashtra">Maharashtra</a> lost his battle against liver problem, since he did not receive help in time, in the form of a donor. 
 
Finding a donor is the most difficult thing in India, owing to bureaucratic hurdles and lack of awareness. Under the law, it is easy for the close relatives to donate an organ, or a part of it to their family member. Though there has been a preliminary draft pertaining to organ donation under discussion, the pace at which it is moving has created anxiety among the health care workers since this could mean if the draft needs a revision or an amendment, it could take another lifetime to bring it by. 
 
<a href="http://www.businessinsider.in/Rent-A-Womb-In-India-Still-Shrouded-In-Legal-Confusions/articleshow/45067670.cms">Surrogacy</a> has quickly caught up in India more than organ donation because of financial benefits and not too many bureaucratic hurdles in place for such agreements to be made between two parties. However, when it comes to organ donation, the hurdles are not only too many, but also make the waiting a drudgery owing to the life-threatening condition of people who await an organ replacement. The scenario is the same across private and government hospitals, with no difference whatsoever. 
 
Because, according to the existing rules, if the potential donor is not related to the receiver, the donation has to be okayed by a state level committee that includes government officials and doctors from the hospital. 
There have been a lot of efforts underway to change the reality, in order to aid better organ donation and create better awareness about the process. 
 
Some cities such as Mumbai, Bengaluru and Chandigarh are experimenting with doubling up driving licenses as organ donation cards as well. But, this plan is pretty much at a nascent stage. 
 
In the given scenario, Chennai in Tamil Nadu is surging ahead in organ donation while conducting great awareness drives for organ donation and better <a href="http://www.businessinsider.in/Boost-for-Mumbai-infrastructure-Centre-clears-coastal-road-project/articleshow/47587254.cms">infrastructure</a> for harvesting organs from a donor to the recipient. 
 
Another aspect that is making organ donation a tough thing in India is the illegal trade of organs which has been happening since long. Intermittently, some quaint little town in north or south India jolts the country with a flourishing racket of organ trade with international agencies being involved. This is posing a huge risk to modification of laws pertaining to organ donation being involved since the stringent laws came into being in early 90s after one such racket gave a strong jolt to the nation that hadn’t even woken up to the concept yet. The infamous ‘kidney’ racket had everyone running for cover as the skeletons started tumbling from the closet of the government as well, apart from well known surgeons. 
 
However, this is the least of all deterrents for the organ donation laws to undergo a better change since the country itself is in need of organs harvested from <a href="http://www.businessinsider.in/A-Bilingual-Brain-is-More-Developed-Oui-or-No/articleshow/40387890.cms">brain</a> dead patients. While the private hospitals in urban areas are better off, the hospitals in rural areas and government hospitals in most urban areas lack the infrastructure to meet the need. This needs to be addressed sooner than later. 
 
Image credits : Indiatimes

Harvesting organs, adding years to lives

This is probably the most crucial <keyword id="6360189" type="COMPANY" weightage="100" keywordseo="Union-Budget">Union Budget</keyword> in recent times and also the one that has raised a lot of hopes. In fact, the maiden budget of Prime Minister <keyword id="6354477" type="PERSON" weightage="100" keywordseo="Narendra-Modi">Narendra Modi</keyword>’s government, due to be presented on July 10, can also determine the economic trends in the time to come.

	 

	After Modi-led BJP clinched absolute majority in the Lok Sabha post a highly charged pan-India campaign that helped identify local needs and aspirations, people are now looking forward to the first Union Budget of the new government with a lot of enthusiasm.

	 

	Even during the election campaign, Modi seemed to have a finger on the pulse of each part of the country. His team of advisors and researchers seem to have their ear to the ground when they assess the requirements of each region in India. However, the fact that Modi had strategically spoken the language of the people and played the tune they wanted to hear from a man who could be their leader is quite obvious now.

	 

	While a Capitalist-favouring budget is being anticipated with measures helping entrepreneurial pursuits grow at large, sops for middle and small-scale businesses will also help the economy. Modi’s image as a mass leader who knows what the BPL category needs in order to be freed from a life of frugality and penury will surely help him to accomplish all these and more.

	 

	In the run-up to his Prime Ministerial campaign, Modi often spoke about bolstering the <keyword id="6356076" type="UNKNOWN" weightage="100" keywordseo="indian-economy">Indian economy</keyword> with comprehensive development. The Gujarat Model of development turned into a Bible in most of his speeches while Modi-worshippers and haters brought up issues and debated on whether the size and the diverse economical needs of India would allow Modi to do this dipstick experiment with his mantra of progress and development by way of creating better employment opportunities.

	 

	As an indicator of positive anticipation, rupee rose by a considerable margin and markets have been swinging in favour of the times to come. While supporters are all gung-ho about the upcoming Union Budget, critics are treading cautiously, wondering if Modi overcommitted on his deliverables. Testimony of this lies in the fact that Modi’s government has minced no words on being inclined to allow 100% FDI in the defence sector. But in spite of the government’s promises, prices of petroleum products are rising steadily owing to changes in the international scenario.

	 

	Foreign investors want to see some tax reforms where the atmosphere is created for increased inflow of investments in the country. Business leaders within the country are hopeful that quicker decisions will be made now and red-tapism will be done away with, at least to some extent.

	 

	Political analysts are willing to give this budget a huge margin, hoping that the new government will take baby steps in creating a better manufacturing environment and thus make the future budgets more robust and focused, so that India may witness an impressive growth trajectory.

	 

	Modi has often spoken about devolution of power, with the provision of giving greater decision-making authority to the states – so that they can chalk out their own progress charts. If red-tapism is reduced, would it mean a smooth passage for the new business environment to boom? Answers are awaited on this front.

	 

	Corporate India, which could be the highest benefactor from the changed business ecosystem, would be closely watching what the first budget of the new government would offer. After all, managing the country for the next five years with a positive spin won’t be an easy job for the BJP after they criticised the previous UPA government on several fronts that may get out of hand even for the current government.

	 

	Failed monsoon is another factor that has turned into a bad omen of sorts for the new government. The agrarian sector is the majority segment of India’s economy and has been a huge stakeholder in the Union Budget for years. It would now demand a good deal of subsidies and support pledged by the government. And this will have to be done before going on to the business environment, failing which the BJP government would be upsetting the majority of its baseline voters who have pinned their hopes on it.

	 

	India’s economy grew 4.9% in 2013-14 after slipping to 4.5% in 2012-13. The current year’s financial growth is pitted at a good 5% but looks like a tall order for the time being.

	 

	All previous governments had faced the challenge and the new government, too, will have to take the bull by its horns. Inflation of essential commodities would piggy-ride the below-average monsoon, pushing the prices up by mammoth figures. Therefore, making policy-level changes to control prices must be done by the government in order to sail through the current financial year.

Narendra Modi’s First Union Budget: Will India Get to See ‘Acche Din’ Now?

It might have been an indication of how things were to progress when <keyword id="46675" type="CITY" weightage="40" keywordseo="Wal-Mart">Wal-Mart</keyword>’s CTO <keyword id="1015034" type="UNKNOWN" weightage="40" keywordseo="Jeremy-King">Jeremy King</keyword> visited the country in September 2012. In a run-up to setting up the business and harnessing the FDI-favourable <keyword id="6366415" type="UNKNOWN" weightage="40" keywordseo="atmosphere">atmosphere</keyword> in India, the biggest global retailer had sent its top executive to hold meetings with the top brass of India, including a meeting with <keyword id="2540" type="POSITION" weightage="40" keywordseo="President">President</keyword> <keyword id="6359124" type="PERSON" weightage="40" keywordseo="Pranab-Mukherjee">Pranab Mukherjee</keyword>. 
 
But that was a visit which was simply ‘not to be.’ Right from the beginning, the jinx continued. Upon his arrival in Bangalore (along with his team of executives) in a chartered flight from the US, King was told his visa had expired even before his arrival. He was then given a 3-day temporary landing permit, with a Bangalore-only caveat. Hurried meetings over, King left India. Obviously, this cost someone in King’s office his job. 
 From then on, the talks didn’t seem to progress smoothly for Wal-Mart or its US team or even the team it had set up in India. After being at the helm of affairs and paving the way for Wal-Mart’s Indian <keyword id="45535" type="UNKNOWN" weightage="40" keywordseo="Saga">saga</keyword>, Raj Jain, <keyword id="5645" type="POSITION" weightage="40" keywordseo="CEO">CEO</keyword> of <keyword id="303382" type="COMPANY" weightage="60" keywordseo="Bharti-Walmart-Pvt-Ltd">Bharti Walmart Pvt Ltd</keyword>, quit the post, even as the global retailer was working out the details of its India operations. Quite a blow it was. 
 But try not to be myopic here. First of all, the company was battling its own issues. But the <keyword id="44734" type="ORGANIZATION" weightage="60" keywordseo="Indian-Government">Indian government</keyword>’s hesitant steps towards opening <keyword id="254856" type="ENTERTAINMENT" weightage="40" keywordseo="The-Doors">the doors</keyword> for Wal-Mart and creating a feasible <keyword id="6356826" type="COMPANY" weightage="40" keywordseo="environment">environment</keyword> by allowing 51% <keyword id="44528" type="ORGANIZATION" weightage="40" keywordseo="FDI">FDI</keyword> in multi-brand retail only compounded those issues. There are versions that speak of Wal-Mart’s desperate attempts to enter the <keyword id="47445" type="UNKNOWN" weightage="40" keywordseo="Indian-market">Indian market</keyword>, even while battling the charges in the US. Mysteriously enough, the same kind of charges involving corruption and bribery followed the retail giant in India as well. 
 
If the reason for this was obvious, it’s because there was no way this could be dressed in any other garb to camouflage it. While the government was in the process of drafting a Press note that would effectively allow foreign companies to breach the investment levels as per their convenience, it was leaked to the media. That was probably another major blow. The Opposition bayed for government’s blood over that and the government’s just shrugged them aside. 
 
Wal-Mart’s internal structure was not conducive either, to make things happen or focus on a midway to create inroads on its own. The highly volatile atmosphere within Wal-Mart’s India team only contributed to the lost ground. Losing some big players had cost the retail giant dearly. 
 
Typically, foreign companies will have to ally with local partner/s to run businesses in the country. But in order to favour the entry of more companies under FDI, the government had relaxed the rules and created a leeway of sorts – by stating that the companies could set up business by buying 30% of locally manufactured products from small and medium-sized local sellers with nearly $2 million invested in industry and machinery. 
 
But none of this was ‘favourable’ enough for Wal-Mart. In a recently concluded interview, a top brass from Wal-Mart said this “just wasn’t enough” to set up a retail chain in India. “The entry barriers are simply difficult to cross. They aren’t workable,” the executive added. 
 
Wal-Mart had expected a levelled playing field with local traders and businessmen, as against global retail operations. Wal-Mart had clearly not got its logic together, which eventually proved that the company didn’t get its act together either. 
 
Although a tie-up with Wal-Mart would have given Bharti an edge and a phenomenal learning advantage in operating international-standard retail chains, experts feel that the loss of Wal-Mart in this deal is bigger than that of Bharti. The estranged Indian partner of the global retailer will open its own chain of supermarkets very soon, all over India. 
 It means these former partners will become competitors in the near future. Now, <keyword id="130164" type="UNKNOWN" weightage="40" keywordseo="The-Game">the game</keyword> has begun. 
 The entire episode has spooked foreign investors regarding red tapism and other difficulties in getting their operations on the ground in India. A sagging <keyword id="34412" type="ORGANIZATION" weightage="40" keywordseo="economy">economy</keyword> and rising <keyword id="22195" type="COMPANY" weightage="40" keywordseo="Inflation">inflation</keyword> are threats as well. The only solace, however, is the falling <keyword id="6355302" type="ORGANIZATION" weightage="40" keywordseo="Rupee">rupee</keyword> which is giving them the breather. 
 
With the deal falling through, Wal-Mart may well have nailed its own coffin in India. But this may not be entirely good for the country’s investment weather either.

Retail Wars: Why Wal-Mart’s India Plans
Hit A Wall

At a time when <keyword id="46431" type="CITY" weightage="20" keywordseo="India-Inc">India Inc</keyword> is busy looking at the profit graph, <keyword id="6354512" type="CITY" weightage="20" keywordseo="Infosys">Infosys</keyword> has undertaken a gigantic step to save the environment. In sync with PM Modi’s dream to see one lakh MW of solar capacity in India, Infosys will spend Rs 400 crore over the next 4 years to achieve carbon-neutrality commuting and travel by its nearly 1.8 lakh employees and in doing so deepen its commitment to sustainability. 
 As per a news report in <keyword id="77091" type="COMPANY" weightage="20" keywordseo="The-Economic-Times">The Economic Times</keyword>, in the past three years, Infosys has spent about $50 million (Rs 320 crore) retrofitting its equipment such as lighting, air-conditioning, power, etc. 
 
Infosys will spend Rs 70 crore this year on green initiatives including installing solar projects for rural electrification, biogas plants and distribution of smokeless cook-stoves in villages, besides afforestation. 
 "These will benefit communities outside of the company. Our programmes are in sync with the guidelines issued by various international agencies, including the <keyword id="6355833" type="ORGANIZATION" weightage="20" keywordseo="united-nations">United Nations</keyword>. These projects will have the maximum social impact, and are subject to audit by international agencies," Infosys <keyword id="192405" type="POSITION" weightage="20" keywordseo="executive-vice-president">executive vice-president</keyword> <keyword id="350389" type="PERSON" weightage="20" keywordseo="Ramadas-Kamath">Ramadas Kamath</keyword> told the financial daily. 
 
"The buildings built after 2008 are all green structures complying with the highest sustainability standards. We are also implementing zero waste to landfill, and rainwater harvesting," Kamath added. 
 However, Infosys’ <keyword id="45171" type="POSITION" weightage="20" keywordseo="VP">VP</keyword> believes achieving 100% renewable energy in India is difficult because of regulations and red tapism in the states of India. 
 “Only in Karnataka do we have a stable, long-term policy with ease of wheeling and banking, open access and project implementation. The <keyword id="71" type="POSITION" weightage="20" keywordseo="Prime-Minister">prime minister</keyword> wants to see one lakh MW of solar capacity in India, but this will remain a pipedream if states don't come up with proactive policies," he added. 
 
Infosys restructuring top 200 customer accounts 
 The <keyword id="6354321" type="CITY" weightage="20" keywordseo="Bengaluru">Bengaluru</keyword> based software exporter is in its process of revamping the structure of its top 200 customer accounts. Aiming an ambitious $20-billion (Rs 1.27 lakh crore) revenue target in five years, Infosys would pair senior partners with sales leaders . 
 As per a news report by the Economic Times, the <keyword id="24211" type="POSITION" weightage="20" keywordseo="chief-executive">Chief executive</keyword> <keyword id="6369763" type="PERSON" weightage="20" keywordseo="Vishal-Sikka">Vishal Sikka</keyword> also said his office will directly oversee the top 15 accounts. 
 
The company is also in the process of overhauling its compensation structure for sales and delivery executives to ensure higher incremental revenue, or the additional revenue generated in a year. 
 
Under the new structure, India's second-largest software exporter will assign a 'client partner' to its top 200 customer accounts, who will have equal responsibility along with the account managers of those accounts. 
 Infosys' top 100 customers include Fortune-500 companies such as <keyword id="6374849" type="CITY" weightage="20" keywordseo="Bank-of-America">Bank of America</keyword> and <keyword id="6354427" type="CITY" weightage="20" keywordseo="Apple">Apple</keyword>.

Infosys to spend Rs 400 crore over next 4 years to go green

Prime Minister <keyword id="6354477" type="PERSON" weightage="80" keywordseo="Narendra-Modi">Narendra Modi</keyword>'s tour to China to attract foreign investment yielded some results but he has a long way to go to turn India into a magnet for further investments. 
 During Modi’s recent China visit, <keyword id="50726" type="CITY" weightage="60" keywordseo="GMR-Infrastructure">GMR Infrastructure</keyword> inked an agreement with <keyword id="2856583" type="UNKNOWN" weightage="60" keywordseo="Guizhou-International-Investment-Corp">Guizhou International Investment Corp</keyword> (GiIC), a consortium of three Chinese manufacturing firms, which will set-up units at GMR’s SEZ in Kakinada. 
 
This move will see $3.5 billion investments over next five years. 
 
As per a BSE filing, GiIC signed a Memorandum of Understanding (MoU) with Kakinada SEZ (KSEZ), a subsidiary of GMR Infrastructure, to set up an industrial park for the high-end Chinese equipment manufacturing companies. 
 
The filing added that Chinese companies dealing in power equipment, electronics, wind &amp; solar energy and smart technologies were planning to set up their manufacturing units in Kakinada SEZ. 
 
KSEZ is a port-based zone that is spread over around 10,500 acres. Situated on the eastern coast in an area rich in oil and natural gas deposits, the special zone has logistical linkages to national highways, railway networks, air and sea ports. 
 
"GiIC would invest $500 million in developing the infrastructure and various facilities of the industrial park, which would house leading Chinese manufacturing industries. These Chinese companies would additionally invest $2-3 billion in setting up their operations over the next 5 years," the filing read. 
 
Meanwhile, these companies will also be able to avail various benefits from Prime Minister's 'Make in India' campaign and Andhra Pradesh government's investment incentives in the state. 
 
The move will also generate more than 5,000 jobs for both skilled and unskilled workers. 
 
However, Chinese media said that Modi’s tours to attract investments from various countries would prove fruitful only if India improved its domestic environment for investors. 
 
"Over the last 12 months, Modi has not only left his footprints in Washington, Tokyo, Ottawa, Berlin and Beijing, but also hosted heads of states from China, the US 
and Russia," an article in the state-run Global Times said. 
 
The article further read that for Modi, the biggest lesson would be on how to improve country's domestic environment for investors. 
 Even though <keyword id="6360789" type="ORGANIZATION" weightage="80" keywordseo="Modi-Government">Modi government</keyword> brought in a series of measures to appeal investors, including establishing special economic zones, free tax zones and free trade areas, some of these efforts have come up against resistance of local governments. 
 
"India has been experiencing anaemic growth since the economic crisis in 2008. In the meantime, the government is short of money for development. Introducing foreign investments is therefore the only way to reach its economic growth targets," it said. 
 
After winning the biggest mandate last year in May, Modi had vowed to cut red tapism and correct India's ranking in 'ease of doing business', which slipped to 142. 
Modi has been luring various business conglomerates, inviting them to ‘Make in India’ and also realise his dream of turning the country into a manufacturing hub. 
 
(Image: PIB)

Modi gets some Chinese investments home but can’t celebrate yet

Can Prime Minister <keyword id="6354477" type="PERSON" weightage="20" keywordseo="Narendra-Modi">Narendra Modi</keyword> really provide <keyword id="2412928" type="UNKNOWN" weightage="20" keywordseo="housing-for-all-by-2022">housing for all by 2022</keyword>? Well, considering the present market conditions, industry experts call it a far-fetched idea. 
	 “Making 2 crore urban houses and 4 crore rural houses available is a huge undertaking in itself, and will require not only sustained government interest and investment but also substantial private sector investment and involvement,” said <keyword id="6420759" type="PERSON" weightage="20" keywordseo="Anuj-Puri">Anuj Puri</keyword>, country head of <keyword id="484198" type="COMPANY" weightage="20" keywordseo="JLL-India">JLL India</keyword>. 
	 
	He added that in the first budget of the Modi government in 2014, along with announcement of the ‘Housing for All by 2022’ initiative, it was decided to allocate larger resources to the National Housing Bank for both rural housing and for extending credit facilities to the urban poor and those in LIG segment. 
	 
	“There was also talk of setting up a Mission on Low Cost Affordable Housing, which was to be anchored in the National Housing Bank. However, the track record of government-built housing in terms of quantum and delivery timelines has been as abysmal as that of the private sector. The last budget did not indicate any further steps on the 'Housing for All by 2022' initiative,” explained Puri. 
	 
	Industry experts believed that the government needs to lay down clear policy as well as outline the exact deliverables, which is accompanied by initiatives to streamline the development process. 
	 
	“This entails reducing approval times while providing specific incentives to build such houses on time. Considering that the government has seven years in all to achieve this target, it fundamentally involves construction of 30 billion square feet of housing stock, or approximately 4 billion square feet per year if we assume an average of 500 square feet per house (this is in line with creating smaller houses for the rural population and urban poor),” stated Puri. 
	 
	According to the industry players, the biggest challenges remain land availability, easy credit and involving construction experts, town planners and the private sector to expedite this target. 
	 
	“There is a need for systemic change in how the government perceives the entire issue of housing for the urban poor. Regulatory changes, faster approvals, removal of red tape and resolution of land litigation issues need to be adequately addressed to improve stakeholder participation. While the consent clause for the affordable housing segment has been done away with in an ordinance, the government is still struggling to get it passed through parliament,” highlighted Puri. 
	 
	He suggested a three-pronged strategy which involves the state, regulatory bodies and the private player, for achieving the target. Both the Central and state governments need to have their own housing policies in synergy with each other. 
	 
	“Execution penalties will be deterrents, but it is essential to have the right development partners who will not put their hands up in the middle of project execution citing financial viability. Suitable fiscal incentives to the private industry as well as financial support through cheaper industry loans will also be required to ensure healthy participation,” noted Puri. 
	 
	Besides, first and foremost, the government needs to get rid of multiplicity of time consuming approvals that a builder requires before he can begin the construction of the project. 
	 
	Apart from eliminating red-tapism, granting infrastructure status to such projects should also be considered as this will facilitate cheaper finances for such projects. 
	 
	“The plug and play approach for infrastructure as enumerated in the Budget makes for an ideal blueprint to begin with for the Centre and the states so that the entire focus is towards timely delivery of housing units, which is what everyone hopes and expects in the next seven years,” he said.

PM Modi’s ‘Housing For All’ to remain a
distant dream?

<ul><li>The State Bank of India released its Subnational <keyword id="86986" type="ORGANIZATION" weightage="20" keywordseo="human-development-index">Human Development Index</keyword> (SHDI) today. </li><li>The list was topped by Kerala, Goa, Himachal Pradesh, Haryana, Punjab and Tamil Nadu. </li><li>The report offered an interesting assessment on the effect or lack thereof of higher <keyword id="553420" type="PERSON" weightage="20" keywordseo="social-spending">social spending</keyword>: it doesn’t necessarily translate into higher standard of living. </li></ul>The State Bank of India released its Subnational Human Development Index (SHDI) today. The index ranks states on the basis of three indicators; Education, Health and Standard of Living. The list was topped by Kerala, Goa, Himachal Pradesh, Haryana, Punjab and Tamil Nadu. While some findings weren’t very surprising - South Indian states consistently do better than their Northern counterparts while Northeastern states score poorly - the report offered an interesting assessment on the effect or lack thereof of higher social spending: it doesn’t necessarily translate into higher standard of living. In order to determine whether higher social expenditure resulted in a higher human development index (HDI) ranking, the report’s authors compared the compounded annual growth rate (CAGR) of social spending with the improvement in HDI scores for a 27 year period starting in 1990. The report showed that there was a low correlation between the two, indicating that a number of impediments such as red tapism, institutional bottlenecks, implementation inefficiencies and a lack of awareness prevent an increase in social spending from being fully effective. The conclusion will be a sobering one for India’s political parties, most of which promise significant handouts and higher social spending ahead of <keyword id="6355644" type="DEFINITION" weightage="20" keywordseo="elections">elections</keyword>. In a perfect world, India’s voters would understand that spending alone does not help. SEE ALSO: <a href="https://www.businessinsider.in/youth-inactivity-in-india-is-30-highest-among-developing-mkts-imf-economists/articleshow/68299282.cms">IMF economist raises concern over rising youth unemployment in India</a> <a href="https://www.businessinsider.in/the-state-government-of-indias-capital-new-delhi-is-all-set-to-rank-5800-schools-in-the-city-the-first-such-evaluation-exercise-of-its-kind/articleshow/66534731.cms">The state government of India’s capital New Delhi is all set to rank 5,800 schools in the city — the first such evaluation exercise of its kind</a>

Higher social spending in Indian states is not enough to boost standards of living, says a study

Two years ago, on May 26, the <a href="http://www.businessinsider.in/searchresult.cms?query=BJP&amp;sortorder=effectivedate">Bharatiya Janata Party</a> (<keyword id="14666" type="ORGANIZATION" weightage="20" keywordseo="BJP">BJP</keyword>) stormed to power in New Delhi after a landslide victory in the 2014 general elections, trumping <a href="http://www.businessinsider.in/searchresult.cms?query=congress&amp;sortorder=effectivedate">Congress</a> to its worst ever defeat. 
 
The Modi-wave, back then, worked in favour of the saffron party, which also played-up the development plank and won the trust of majority of the 1.2 billion Indian population. 
 
Cut to 2016, the BJP, which suffered few blows in state and civic polls and a momentous win in Assam, is celebrating two years in office, and also preparing itself for next three years. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=prime+minister+narendra+modi&amp;sortorder=effectivedate">Prime Minister Narendra Modi</a>, in these two years, took steps to transform India into a manufacturing hub with his ‘<a href="http://www.businessinsider.in/searchresult.cms?query=make+in+india&amp;sortorder=effectivedate">Make in India</a>’ scheme, shook up a cleanliness drive with ‘<a href="http://www.businessinsider.in/searchresult.cms?query=swachh+bharat+abhiyan&amp;sortorder=effectivedate">Swachh</a><a href="http://www.businessinsider.in/searchresult.cms?query=swachh+bharat+abhiyan&amp;sortorder=effectivedate"> Bharat </a><a href="http://www.businessinsider.in/searchresult.cms?query=swachh+bharat+abhiyan&amp;sortorder=effectivedate">Abhiyan</a>’ and promoted yoga that is now being celebrated as ‘<a href="http://www.businessinsider.in/searchresult.cms?query=international+yoga+day&amp;sortorder=effectivedate">International Yoga Day</a>’ on June 21. 
 
He was also mocked at various instances for several foot-in-the-mouth comments from his ministers, his Kerala-Somalia comments, rigged history, suit-boot ki sarkar, etc. 
 
Modi is also often attacked for his foreign trips. A man who was denied a visa to the US owing to Gujarat riots, has now visited the country thrice in two years and is now scheduled for a fourth trip soon. 
 
Apart from meeting global leaders, Modi, who sports a French beard and is famous for his Khadi kurtas, also befriended <a href="http://www.businessinsider.in/searchresult.cms?query=global+ceos&amp;sortorder=effectivedate">global CEOs</a>, assuring them of ease of doing business in India and cutting red tapism. 
 During these two years, Modi met many global CEOs, who are now eying India and are setting up offices. <keyword id="6354427" type="CITY" weightage="20" keywordseo="Apple">Apple</keyword> looks India as a bright spot and even Google and <keyword id="10387" type="CITY" weightage="20" keywordseo="Microsoft">Microsoft</keyword> are increasing their number of offices in the country, which is pegged to be one of the fastest growing economies of the world. 
 
Here is a list of the top 10 global CEOs whom Modi met over the last two years and gave them all reasons to come and invest in India. 
 
(Images: Indiatimes, PIB)

These are the 10 global CEOs Modi befriended in last two years

The Indian capital market is betting big on the upcoming <keyword id="2783177" type="UNKNOWN" weightage="20" keywordseo="Budget-2016">Budget 2016</keyword>. With the global markets not performing well, market analysts are hoping that the government will announce key policy reforms in order to keep <keyword id="6355178" type="UNKNOWN" weightage="20" keywordseo="Dalal-Street">Dalal street</keyword> up and running. 
 
“There are huge expectations from the government, as already the international markets are keeping Indian economy on edges, Thus all eyes are set on the budget which can bring some shine back on the Dalal street,” said Rohit Gadia, CEO of Capital Via, one of the largest pure play financial market research and consulting company . 
 
He added, “One of the major expectation of the industry is smoothening of administrative procedures around refund claims and valuations which are plagued with inordinate delays in assessments coupled with huge revenue deposits which result in uncertainty and blockage of working capital for companies. The Government should focus on these aspects.” 
 
The market is hoping that the government will look at eliminating red-tapism which in turn will prove to be a boon for the government’s startup India initiative. “Due to delays in these procedures, many start-ups die an eventual death. Reduction in Corporate Tax is expected to promote the business environment as it is unfavourable as compared to other emerging economies,” he noted. 
 
Talking about the equity market, Gadia explained that the government will have to come up with innovative ways to create incentives for investing in the long term equity markets. “Considering the increase in cost of living, we may expect rise in the current basic exemption limit of 2.5 lakh to Rs. 3 lakh. We believe the consequent revival in economic activity will further bolster India’s position as one of the fastest growing economies in the world,” he suggested. 
 
Apart from this, lowering of securities transaction tax and removal of dividend distribution tax is also expected to work well for the markets. “Strained tax receipts given the general economic slowdown, implementation of the seventh pay commission, need to boost the rural economy after two years of subnormal monsoon and necessity of infrastructure and social investments place increased demands on the expenditure side,” he added. 
 
Thus, the Union Budget 2016-17 has an important task to keep up the positive economic outlook of India by bringing in major indirect tax reforms and addressing business concerns. In addition, the passing of Constitutional Amendment Bill for GST in this budget session, will not only help the Government to set up a positive environment but also will be a giant step towards reinforcing the perception about India as the next investment destination.

Dalal street looks at Budget 2016 to keep the steam running!

The Indian government wants to fix its infrastructure and needs over $1 trillion over the next five years for the same. 
 However, putting aside a large sum in the budget is not feasible for the Indian government, which is why it is planning to kick-start <keyword id="2746942" type="UNKNOWN" weightage="20" keywordseo="National-Infrastructure-Investment-Fund">National Infrastructure Investment Fund</keyword> (<keyword id="6451472" type="UNKNOWN" weightage="20" keywordseo="NIIF">NIIF</keyword>). 
 The NIIF, which was announced by <keyword id="6391015" type="UNKNOWN" weightage="20" keywordseo="Finance-Minister-Arun-Jaitley">Finance Minister Arun Jaitley</keyword> in the budget last year, is considered as a fund of funds. It maximizes the equity that the government is able to provide from its budgetary resources. 
 
Under NIIF, the government can contribute Rs 20,000 crore and then the investors can pool in a little more than that. 
 
So, if the NIIF become a Rs 40,000-crore fund, it can be used for infra projects and the funds get multiplied over the years. 
 
Minister of State for Finance, Jayant Sinha, said the government has been working on NIIF since a year and global experts of all the major consulting companies, all the major investment banks have been contacted for the same. 
 
"It's an extremely well-meaning initiative. It could catalyze resolution of stressed assets in the country... by providing last-mile capex and working capital to projects which have the potential and are stuck. This will bring in much relief to the banks who are otherwise the only source of such capital,” Sanjay Nayar, CEO of KKR India, told ET. 
 
Vinayak Chatterjee, chairman, Feedback Infra. Told ET, “You take Rs 20,000 crore from the budget in a year and you can raise Rs 4 lakh crore. Next year, by putting in another Rs 10,000 crore, you can add to this. This is happening only at the NIIF level, and by going a step below you can enhance the leverage 15-20 times." 
 
Meanwhile, the NIIF, which will be 49% government owned, will ensure there is no red-tapism. 
 
"We are firewalling the NIIF from the government, not just in this government but all other subsequent governments as well," said Jayant Sinha. 
 
(Image: Indiatimes)

Govt is looking to create fund of funds to fix creaky infrastructure

Despite tight schedule, Prime Minister <keyword id="6354477" type="PERSON" weightage="80" keywordseo="Narendra-Modi">Narendra Modi</keyword> addressed members of Indian community in Seoul and highlighted how the ‘mood’ in India had changed from the day he took over and also elucidated what all measures he is taking to present the country as one of the major global players. 
 
Modi, who landed in Seoul on final leg of his three-day tour, played his development plank and said ‘development’ was a medicinal herb, which would solve India’s problems. 
 
Citing examples of how India helped Nepal in its distress and how India evacuated not only its nationals but people from other countries, including Pakistan, also from Yemen, Modi said that cooperation was rising among countries. 
 
The Prime Minister, who is known for his oratory skills, quoted poet Rabindranath Tagore, saying he said South Korea was ‘Lamp of the East’, and told the gathering about his Government’s ‘Act East Policy’. 
 
He looked for investments from Indian diaspora, saying they had equal rights on the country. “The extent to which Narendra Modi has a right over India, you too have the same right on the country,” he said. 
 
As Modi nears one year of completion of his office, he did not fail to praise his own Government among people, emphasising how the country had starting changing after 30 years. 
 
This time he chose to wore a band-gala suit for the event in contrast to other events in the past in different countries, where he is spotted wearing traditional kurta-churidaar to address Indian community. 
 
Mentioning about SAARC and BRICS, India said now was the time to emphasise on ‘I’, which had become strong in past one year. 
 After his address, Modi will meet South Korean President <keyword id="1193885" type="UNKNOWN" weightage="60" keywordseo="Park-Geun-Hye">Park Geun-hye</keyword> and present his ‘Make in India’ initiative to South Korean chaebols, like Samsung, LG and Hyundai. 
 
He is expected to meet highest officials of the companies and lure them to do businesses in India. 
 
After winning the biggest mandate last year in May, Modi had vowed to cut red tapism and correct India’s ranking in ‘ease of doing business’, which slipped to 142. 
 
After arriving in the country, Modi laid a wreath at Seoul National Cemetery. He also received a rousing welcome by Indian diaspora and is scheduled to address 1,500 members of Indian community before meeting the President. 
 
India and South Korea look forward to boost bilateral trade, which stands at $16 billion. 
 
Globetrotting Modi wants to attract maximum investments in India. The Indian PM wants to invite countries for his various projects like smart cities, sanitation drive, clean Ganga campaign, among others. 
 
Modi started his tour with China and then visited Mongolia. 
 
(Image: PIB)

Modi’s act of self-praise, woos Indian diaspora in Seoul

It’s the payback time. The common man who bet all he had on a single horse last year, accepted a rather hurried budget that was presented by the ‘fresh’ government last time. This time around, the expectations have risen and clearly so. The ‘aam junta’ of India is now seeking return favours, and the big question is: how ready is the government to meet the aspirations of common man without inviting any retribution? 
 Last year’s budget had reasons to cheer, though the expectations were that the government would deliver a somewhat flowery budget for the general public. Women’s safety was being talked about, senior citizens were being referred to; and most importantly, on personal tax front, individual tax payers had a lot to raise a toast for themselves. Reference to <keyword id="44528" type="ORGANIZATION" weightage="20" keywordseo="FDI">FDI</keyword> in defence was met with partial criticism, but that settled down a little later. 
 
To increase the level of savings, the investment limit under Sec 80C was hiked, encouraging citizens to pool in their resources that would in turn help the government meet its fiscal needs to arrive at the infrastructure investment. 
 
The euphoria that gripped the entire nation during 2014 Lok Sabha elections is very much alive, even to the dismay of those who had expected a cryptic reaction to last year’s hurried budget. 
 
Having rested their hopes on the Modi regime that’s a few months old by now, people are expecting this time the government will address their needs and aspirations. There is also high expectation on policy level changes that have been counterproductive to investments, savings and increased red tapism, which is hindering the growth of industries. A significant change is expected from the government’s side to make the common man’s life better than before. 
 
In the last few months, the government has adopted several measures to correct the policy logjam to speed up reforms on both FDI and structural front. This has resulted in increased participation from private parties, with progressive rejuvenation of investors’ confidence on Indian equities. 
 But, mind you, the common man wouldn’t care about the details, though the devil lies in it. The man on the street isn’t bothered about the fine print. All he wants to know is whether he will be paying more taxes than before, and if they would be reduced this year, and what kind of investments can he make to protect his family from losing money. Of course, the property rates are a concern too, and so is the price of essential commodities with <keyword id="22195" type="COMPANY" weightage="20" keywordseo="Inflation">inflation</keyword> refusing to settle down. Things like <keyword id="35050" type="CITY" weightage="20" keywordseo="gdp">GDP</keyword> and black money can wait while the ‘aam janta’ understands if rice and dal would cost the same or less, and if the vegetables will turn predictable with their prices. 
 
Last year, and this year too it has been a lucky ride for the government which has reduced petrol and diesel prices. Thank stars that the international oil prices have come down and this is a universal phenomenon. 
 
What’s pinching the middle class is the stagnant price of products. Their price is not reduced because manufacturing costs have remained stable at a high, and have not come down since last year. 
 
Now, when domestic savings rate has been on a regressive fall, it will really hurt the middle class unless the government finds a way of addressing it through the budget. Because, unless the country’s savings rate goes up, it could boost the GDP growth at the best. The government should aim at restoring domestic savings, after having encouraged the common man to pool in his money under various savings headers, through tax incentives. 
 The common expectation of salaried class now is the hike in <keyword id="6354751" type="COMPANY" weightage="20" keywordseo="Income-Tax">income tax</keyword> exemption to Rs 3 lakh from Rs 2.5 lakh. This will inturn favour the government by attracting more savings. 
 With every passing year, working women’s participation in country’s <keyword id="34412" type="ORGANIZATION" weightage="20" keywordseo="economy">economy</keyword> is increasing. As an incentive, raising the IT exemption to Rs 4 lakh would again be a productive measure adopted by the government, attracting huge savings from this class. 
 
Addressing senior citizens’ pension funds and extension of health insurance plans to ensure better returns will put the government on good stead. 
 
Image: PIB

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