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The country’s economy stagnant, no investment coming in: Cong

It will take time for this message to reach people, for the false claims made by the government to be understood in totality.

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New Delhi, Apr 15 : The Congress today sought to deflate Prime Minister Narendra Modi’s claim of 7 per cent GDP growth, saying the country’s economy is stagnant with no investments coming in.

Quoting official figures, Congress spokesperson Jairam Ramesh said bank credit growth is lowest in 60 years and power plants are functioning at 60 per cent capacity – lowest in last 15 years, which shows that the Indian economy is not taking off and the government needs to take this challenge seriously.

“The prime minister may claim that GDP is growing at 7 per cent, but indicators show a stagnant economy. The rise in growth is not visible and resultantly investments coming into the country are stagnant.

“The condition of the economy is a matter of serious concern and the government must look into the challenges faced by the economy,” he said.

Ramesh said if there are no investments, the employment opportunities are not there. This, he said, is the biggest challenge before this government.

He, however, lamented that the prime minister and finance minister have no reply to offer on this, both outside and inside Parliament.

“Everything is not well and things are deteriorating and there is no improvement in the Indian economy,” he said.

Taking a dig at Modi, Ramesh said if the offtake is not there, the economy will take off. He also recalled how prime minister talked of “not cashless, but less-cash” while talking of promoting digital transactions.

“If offtake is not there, there will be no takeoff. There is no offtake of power and bank credit when the PM talks of takeoff,” he said.

The Congress leader said employment opportunities in the country stands at a new low, with only 4.4 lakh new jobs being generated in the organised sector during the first two years of the Modi government.

This, in comparison, is far less than 21 lakh jobs generated during the first two years of UPA-2 government, he said, adding “We created five times more jobs”.

Citing the RBI data for 2016-17, he said it shows that bank credit has grown at 5 per cent, the slowest rate in the last 60 years.

Similarly, he said, the Power Ministry data shows that in 2016-17 there is lowest plant load factor in 15 years and said they are on an average generating power at 60 per cent of their installed capacity.

“These two data shows that prime minister’s words that Indian economy is taking off is absolutely wrong,” he said.

“No point of the Prime Minister and Finance Minister taking refuge in figures of GDP of 7-7.5 per cent which is meaningless and frankly the world does not believe in India’s GDP numbers,” he said.

Ramesh said the Congress party will take this message to the people across the country that all is not well with the country’s economy under the present government despite the tall claims made by the prime minister and the finance minister.

Asked why this message is not going across to people as had been shown in repeated Congress defeats, the Congress spokesperson said it takes time for the public to realise that there is no pension, no food, no employment under MGNREGA.

He cited the example of Rajasthan where 30 per cent of those entitled for wheat rations are not getting wheat as aadhar card had been made mandatory there.

“It will take time for this message to reach people, for the false claims made by the government to be understood in totality.

“People are already beginning to feel that there is already no improvement and there is an atmosphere of enormous fear is prevailing in the country. People are not speaking as freely now as they were speaking 4-5 years ago,” he said.

Business

Tata, GE comes together to manufacture jet engine components

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TATA , GE

Mumbai, Dec 14: Industrial conglomerates GE and the Tata Group have joined hands to manufacture “CFM International LEAP” engine components in India, for the global supply chain, a company statement said here on Thursday.

As per the statement, the two firms also evinced their intention to jointly pursue military engine and aircraft system opportunities for the Indian market, news agency IANS reported.

“We look forward to working with GE to build more expertise and strengthen India’s defence manufacturing capabilities,” stated N. Chandrasekaran, Chairman of Tata Sons.

“Tata group’s partnership with GE will help drive synergies in defence manufacturing and focus on innovation to support our armed forces,” he further added.

The strategic partnership indicates GE Aviation and Tata Sons’ subsidiary, Tata Advanced Systems Limited (TASL), in a bid to join forces for “manufacturing, assembling, integration and testing of aircraft components” IANS reported.

Adding to this, a new Centre of Excellence (COE) will be built to develop a robust ecosystem for aircraft engine manufacturing in India and establish related capabilities.

“Tata Group is a leader in the Indian defence and aerospace sector, and we look forward to working together to meet the growing demand for LEAP engines. Our collaboration in building innovative technologies will support the ‘Make in India’ vision of the Indian government,” said John L. Flannery, Chairman and CEO of GE.

The “LEAP” is one of the world’s leading jet engines known for its technological superiority, efficient fuel consumption and performance for powering single-aisle commercial jets.

Traditionally, GE military engines have had a intense history in India. At present, the company provides jet engines and marine gas turbines for many Indian military applications including the Light Combat Aircraft-Tejas Mk 1, Indian Navy P-8I aircraft and the P-17 Shivalik class frigates.

While on the other hand, TASL is focused on providing integrated solutions for aerospace, defence and security.

WeForNews 

 

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Remove ‘bail-in’ clause in FRDA Bill: Assocham

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Assocham's Secretary General D.S. Rawat
Assocham's Secretary General D.S. Rawat . (File Photo: IANS)

New Delhi, Dec 14 : Assocham on Thursday urged the government to remove a clause in the Financial Resolution and Deposit Insurance (FRDA) Bill that seeks to treat bank depositors as other creditors and shareholders for “bail-in”.

Assocham Secretary General D.S. Rawat said that in the Indian context, the concept of bail-in — especially by depositors — should be completely done away with and their money in the banks has to be protected at all costs.

“Otherwise, the trust in the banking system runs the risk of being eroded and the savings by the households would find way into unproductive avenues like real estate, gold, jewellery and even in unorganized and informal financial markets run by unscrupulous people,” said Rawat.

According to Assocham, panic has arisen among bank depositors largely due to “bail-in” clause in the Bill which was being tried for the first time in the Indian financial markets.

The industry body also sought the government’s assurance to protect depositors’ interest in case of a bank going down under. This should be clarified in the Bill, it said.

Rawat said middle class families, and especially pensioners and aged people, have no social security and thus bank deposits were the only financial security for their life-time savings.

“In any case, the rising cost of health, which is mostly available in the private sector, is hurting this class. Any move to copy the Western model of ‘bail-in’ must be avoided,” he added.

IANS

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Petroleum products could be taxed above GST: Bihar Deputy CM

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sushil modi
Bihar Finance Minister (File Photo)n

New Delhi, Dec 14: Even if petroleum products are brought under Goods and Service Tax regime, central and state governments will be free to levy taxes over and above the GST slabs, Bihar’s Deputy Chief Minister Sushil Modi said on Thursday.

“… I want to clarify one thing — in whichever country the petroleum products are part of the GST, they are in the highest tax slab, and the states and Centre are free to levy taxes over and above the GST rates. It is the case everywhere in the world,” said Modi, who is the Bihar Finance Minister and a member of the GST Council.

“People feel if petroleum products come under the GST, the highest tax will be 28 per cent. But since 40 per cent of the state and central revenues come from petroleum products, they will have the liberty to levy taxes over and above the GST rate,” Modi said at FICCI Annual General Meeting here.

He said the GST Council was discussing the issue of bringing electricity, real estate, and petroleum under the GST ambit in coming days.

The Bihar Deputy Chief Minister said that whenever the GST Council decided, petroleum products would become a part of the GST without any need for a constitutional amendment.

He said that revenue from petroleum products would not get reduced under the GST but “it would be around the same amount of taxation”.

“Yet, if they come under the GST, it will benefit the industry and the people,” Modi said.

IANS

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