Public sector no panacea for the government

Public sector enterprises may not be financially sound enough to plug deficit or revive investment

India's public-sector enterprises are receiving the kind of close attention that they had become quite unused to for several years. Since 1991, for much of the post-reform period, public-sector enterprises or PSEs were largely seen as inefficient, a drain on national resources and, therefore, worthy of either divestment, privatisation or closure. Little else was contemplated for them.

The mood has changed quite unexpectedly in the last few weeks. First came the mid-year economic review by the government that underlined the need for increased publicinvestment to revive the economy - since the private sector was woefully short of funds, the banking sector was already overstretched and the governance structure for the much-hyped public-private partnership projects exposed them to several kinds of financial risks and weaknesses. The central exchequer, too, faced a resource crunch that did not allow the government to spend more money on new projects for fear of widening the fiscal deficit.

So what was the way out? The government, therefore, started looking at the 229-odd operational public sector companies to check if they could be encouraged to step up investment by using their reserves. The total cash reserves with these companies at the end of March 2013 were estimated at Rs 2.66 lakh crore.

Could all of it be used to kick-start some of the stalled projects? This appeared a tall task since not all of them were operating in areas where new projects needed to be set up or existing projects were stuck. Most importantly, the cash reserves with the PSEs were already deployed in financial instruments, and withdrawing them from those for re-deployment in new projects might be qualitatively different - but their net incremental impact on the system would be debatable.

An alternative option, therefore, was to gently persuade some of these public sector undertakings to declare special dividends, so that the government could get those resources and channel them for projects that needed to be set up. Remember that this was one of the preferred options of finance ministers during the United Progressive Alliance regime. In the current financial year also, dividends from PSEs will constitute a significant chunk of revenues, and will likely far outstrip the proceeds the government will book from the sale of its equity in some of these enterprises.

All this was perhaps fine. But the big dilemma the government will face now is in allocating the required resources to public sector enterprises next year, without having made any progress in their financial restructuring.

Consider some numbers. In the current year, the government provided Rs 39,663 crore by way of equity to a total of 146 PSEs, up marginally from Rs 36,976 crore in 2013-14. But there is a catch. The bulk of these equity investments - almost 82 per cent of the total equity outlay - was cornered by Air India, the National Highways Authority of India and public sector banks needing recapitalisation. Last year, their share in the equity provided by the government to PSEs was even higher, at 87 per cent of the total government contribution towards equity at Rs 36,976 crore.

Note that, in spite of such equity infusion, these PSEs continue to rely primarily on their internal generation of resources to fund their fresh investments and expansion plans. Apart from the equity contribution, all that the government offers them are loans estimated at Rs 6,637 crore in 2014-15, compared to Rs 5,514 crore last year.

The sorry state of affairs in the PSEs is evident from the fact that they could generate only Rs 1.42 lakh crore from internal resources this year, a drop of about 13 per cent over Rs 1.63 lakh crore they generated from internal resources last year. The decline in internal resource generation has been compensated by a rise in equity contribution from the government and an increase in their mobilisation of resources from the markets through bonds and other financial instruments.

But the sobering thought that must be dawning on government officials is that tapping the public sector to improve the investment rate can become a fashionable idea, but the figures tell a different story - of financial problems and shareholders' negligence made worse by opportunistic use of their available resources and political interference.

CBI drawing up blueprint to incorporate Enterprise Risk Plan

On January 1, Anil Sinha, the new Director of the Central Investigation Bureau (CBI), gave a 40-minute “inspirational” speech to all his officials, setting the direction for the next two years of his tenure.

The Supreme Court had called the CBI a “caged parrot” of the government when Anil Sinha’s predecessor, Ranjit Sinha, was heading it. Another CBI head had been charged with helping crony businessmen. Sinha is on the path of an image make-over, plus a reordering of the body.

The agency is preparing a plan incorporating an Enterprise Resource Plan programme, a forward-looking exercise often undertaken by chief executives of corporate houses to minimise the risk element. All officers will be encouraged to do a SWOT (strengths, weaknesses, opportunities, threats) analysis for the organisation and their own role in it.

Sinha told officers he was reconciled to spending no time with his family at all over the next two years and that he’d told his family as much.

“The speech was impressive. He told all of us that the CBI should not be seen only as a premier investigative agency of the country but that of the world. We need to compete with the likes of agencies such as FBI (US Federal Bureau of Investigation) and that is where he has set the new bar for the agency,” said an official, who was present at the meeting.

CBI was told to work fearlessly, to go into an investigation without a mindset and the ultimate motive should be to satisfy the courts.

This comes at a time when the agency is under scrutiny in the courts in many high-profile cases. Its sleuths have already drawn criticism in the Sohrabuddin encounter case, in which Bharatiya Janata Party president Amit Shah was discharged as an accused recently by the Bombay High Court. Even the duration of the CBI counsel’s argument in the court was a parameter in the judgment passed by critics.

Sources said agency officials in Mumbai were examining the court’s order and Sinha would be guided by his investigators in deciding whether an appeal should be filed. All eyes are also on how the CBI proceeds in the Hindalco coal block case, in which the agency is set to quiz former Prime Minister Manmohan Singh on the orders of the trial court. It had quashed the agency’s closure report in the case last month and ordered for examining Singh, who held additional charge of the coal ministry when the alleged scam took place, along with other former officials of the PM’s office.\

there is need for specialist security force, independent regulator

India needs to highlight its world-class nuclear security, says report

Study finds there is need for specialist security force, independent regulator

With the spectre of nuclear terrorism growing, the international community is concerned about the security of India's nuclear facilities. The worry has grown since 2010, when radioactive Cobalt-60 surfaced in a New Delhi scrapyard, killing one person and hospitalising eight others.

Now, an important new academic study has found India's nuclear installations better protected than most western countries have believed. "Unlike other recent evaluations, we assess that India's nuclear security measures are comparable to best practices globally," says Rajeswari Pillai Rajagopalan, who authored the report, "Nuclear Security in India", released on Tuesday at a Delhi think tank, Observer Research Foundation (ORF).

The report rebuts the more negative conclusions of earlier international studies, such as that of the non-partisan Nuclear Threat Initiative (NTI), concluding that the NTI "did not examine Indian nuclear security in depth". In contrast, the ORF study included field trips to survey nuclear security in the UK, France and Japan.

The report recommends, "India needs to be more pro-active in publicising its achievements. The Indian reticence in this regard is particularly surprising considering India has a strong case to make."

This is good news for the government, which is campaigning for membership of the Nuclear Suppliers Group; as well as three other counter-proliferation regimes - the Missile Technology Control Regime, Australia Group and the Wassenaar Arrangement.

The report finds that New Delhi's unwarranted secrecy about security structures and protocols has created a perception of poor procedures and standards. "The assumption appears to have been that India was not transparent because its nuclear safety and security measures were below par, although that is far from true," it says.

Even so, the report recommends several changes, such as the establishment of a specialised security force to protect nuclear facilities.

"While the CISF (Central Industrial Security Force), which currently handles the task of securing nuclear facilities, has done a good job so far, its mandate is vast. With the Indian nuclear establishment set to expand, it might be preferable to have a separate force that only secures nuclear facilities," says the report.

Besides nuclear facilities, the CISF's 140,000 personnel are used for securing space establishments, airports, seaports, power plants, sensitive government buildings and even some heritage monuments.

The report also recommends a fully autonomous nuclear regulator. Currently, the Atomic Energy Regulatory Board (AERB), which oversees the functioning of nuclear establishments and facilities, operates under the Department of Atomic Energy (DAE). Since the AERB is required to oversee the DAE, this is widely perceived as a conflict of interest.

The report states: "There has to be clear separation of roles and functions between the nuclear establishment and its regulator to avoid even the appearance of a conflict of interest."

The report evaluates India's preparedness to counter three main forms of nuclear terrorism. First, and most unlikely, terrorists could mount a catastrophic attack with a full-scale nuclear weapon. Such nuclear devices are extremely hard to obtain and require expertise to operate, but cannot be ruled out until nuclear supermarkets - like Pakistan's AQ Khan network - are eliminated entirely.

Second, terrorists could sabotage a functioning nuclear establishment, such as a power plant, effectively transforming it into a slow-burning nuclear bomb.

Doing this from within would require sophisticated technological expertise, but a 9/11 style attack from the air remains feasible.

Third, and most feasible, is the explosion of a "dirty bomb" in a heavily populated environment. This is a relatively simple device in which explosives are packed with radioactive material.

With the explosion spreading hazardous radioactivity over a large area, time-consuming and expensive decontamination would be required, with the second-order impact of an attack on the economy and the psychological effect on the public. This danger demands that users such as hospitals and education institutions tightly safeguard radioactive material.

Relevance of Swami Vivekananda as Youth Icon of India

Every year since 1985, the Government of India observes 12^th January, the Birth Anniversary of Swami Vivekananda as National Youth Day. To quote from the Government of India's Communication, “it was felt that the philosophy of Swamiji and the ideals for which he lived and worked could be a great source of inspiration for the Indian Youth.”

India is one of the youngest nations in the world, with about 65 percent population under 35 years of age.    It is expected that by the year 2020, the population of India would have a median age of 28 years only as against 38 years for US, 42 years for China and 48 years for Japan. The youth are indeed the most dynamic and vibrant segment of the population in any country.

Swami Vivekananda once said, “Whatever you think, that you will be. If you think yourselves weak, weak you will be; if you think yourselves strong, strong you will be.”

He also said, “See for the highest, aim at that highest, and you shall reach the highest.”

His message was simple yet powerful. Vivekananda conveyed his ideas directly to the people, especially to the youth. His message broke through the shackles of caste and creed and spoke of a language of universal brotherhood. What he said captures the great importance of his ideas and ideals among the youth in our country today. He personified the eternal energy of the youth and their restless quest for truth. It is entirely fitting that 12^thJanuary, the birth anniversary of Swami Vivekananda, is observed as National Youth Day to rekindle the eternal message of this great patriot and son of India. 

But how to make youth realise  the relevance of Swami Vivekananda in these exciting and challenging times, when on the one hand people and nations are engaged in the noble task of developing the personality and leadership qualities of the youth by involving them in various nation-building activities, while on the other hand there are challenges of hunger, poverty, unemployment, corruption and terrorism.

Among the various ways which Swami Vivekananda suggested to rebuild the Indian society, Education was the primary means for empowering the people. He once said, “The education which does not help the common mass of people to equip themselves for the struggle for life, which does not bring out strength of character, a spirit of philanthropy, and the courage of a lion – is it worth the name? Real education is that which enables one to stand on one’s own legs.” For him, education meant secular learning that built character and instilled human values in students.

The Government of India while commemorating the 150^th Birth Anniversary of Swami Vivekananda sanctioned a “Value Education Project” of the Ramakrishna Mission (an organisation established by Swami Vivekananda which is widely recognized for its commendable work in the areas of value based education, culture, health, women’s empowerment, youth and tribal welfare and relief and rehabilitation), to help to inculcate in children a moral compass and a value system against the tide of commercialism and consumerism that is sweeping our societies.

It also gave an endowment of US$ 1.5 million to the University of Chicago, for establishing the Swami Vivekananda Chair to focus on Vivekananda, through lectures, seminars and suitable related academic activities on Indian Culture and Indian Studies. The Chair will be held by each scholar for a period of two years.  The University of Chicago will also facilitate exchange of research scholars between the University of Chicago and the Government of India. This permanent endowment will help spread the message of harmony of religions, understanding between nations and the spiritual oneness of humanity, which Swami Vivekananda worked for.

According to Swami Vivekananda, “Teach yourselves, teach everyone his real nature, call upon the sleeping soul and see how it awakes. Power will come, glory will come, goodness will come, purity will come, and everything that is excellent will come when this sleeping soul is roused to self-conscious activity.”

The Government is also making efforts to convert teachings of Swami Vivekananda into practice in the current context.  To meet the need and aspirations of more than a billion people is not an easy task unless some integrated action is taken in areas where the country has a core competence. Agriculture, Education, Healthcare, Reliable and Quality Electric power, Surface transport and Infrastructure for all parts of the country, Information and Communication Technology and Strategic sector are the areas closely inter-related and if the work on these areas for an integrated action start in the right earnest it will lead to food, economic and national security of India.

     The Government has embarked on the mission of building a united, strong and modern India to fulfil the vision of the great thinkers like Vivekananda. “Ek Bharat, Shreshtha Bharat”, following the principle of “Sabka Saath, Sabka Vikas”. These  are not merely slogans but a commitment to the people particularly to youth to take the nation to new heights. A number of path-breaking initiatives have been introduced recently. ‘Make in India’ campaign has been launched to develop India as a global manufacturing hub. ‘Digital India’ initiative seeks to transform India into a digitally empowered society and knowledge economy. ‘Skill India’ is being launched to impart necessary skills to prepare Indians for the opportunities in Indian Economy as also the opportunities abroad. A number of initiatives, including Smart Cities Project, have been launched for developing infrastructure. In all these ‘Swachh Bharat Mission’ and ‘Clean Ganga’ Mission have been launched for building a clean and green India.

All these initiatives of the Government require active involvement and support of youth as they are the major stakeholders of future of this country. Skill development and Entrepreneurship is the flagship programme to put India on the road to become developed nation. Government is making all efforts to invest hugely in youth of the country because it is necessary in the ambitious task of building a modern and prosperous India. And as Swami Vivekananda once exhorted, “Arise! Awake! And stop not till the goal is reached”, let us all unite and work for the country with Purity, patience, and perseverance as the Swami felt long ago that these three are essentials to success.

Swami Vivekananda and Nation building

Swami Vivekananda was a dreamer.  He dreamt big day and night.   But, the only theme of his dream was India.  This one word stirred extraordinary feelings in the deepest regions of his heart.  Perhaps, he was the greatest patriot to have ever been born in this country.  The testimony of Mahatma Gandhi vouches for this assertion.  Mahatma Gandhi visited Belur Math in 1921 and before leaving he wrote in the Visitors’ Book that after reading Swami Vivekananda’s works, his patriotism for the country had increased thousand fold.  One of the Western disciples of Swami Vivekananda, Sister Christine, wrote in her reminiscences, “Our love for India came to birth, I think, when we first heard him (Swami Vivekananda) say the word, “India”, in that marvelous voice of his.  It seems incredible that so much could have been put into one small word of five letters.  There was love, passion, pride, longing, adoration, tragedy, chivalry, himweh, and again love.  Whole volumes could not have produced such a feeling in others.  It had the magic power of creating love in those who heard it.”    In fact, his love for our motherland was perhaps the singular factor which held him tied to this earth.  He was a born Yogi. He was  a great contemplative and diving deep into meditation was the natural drift of his mind.  However, he sacrificed all these to serve our motherland. 

Swami Vivekananda knew everything about India like the palm of his hand.  What was the source and basis of his knowledge?  He was a keen student of history and had a thorough knowledge of India’s glorious past.  He was immensely practical in his outlook and that helped him understand the then condition of our country.  After the passing away of his Guru and mentor, Sri Ramakrishna, he had gone on a pilgrimage of the entire country on foot.  He met people from every segment of the society, from the richest to the poorest, from the most learned to the most ignorant, from high caste priests to those condemned as the low caste, from Maharajas to penniless beggars.  The firsthand knowledge which he gained through his explorations gave him a complete understanding of our country including the causes for its downfall.  Being a visionary and endowed with an extraordinary intellect and even a more feeling heart, he could find out the cure for India’s maladies and for restoring her to her former glory.  He predicted that India’s future glory would far surpass her past glory.  He felt deeply concerned and pained by the degradation of our country.  He said, “If there are holes in this national ship, this society of ours, we are its children, let us go and stop the holes. Let us gladly do it with our hearts' blood; and if we cannot, then let us die. We will make a plug of our brains and put them into the ship, but condemn it never.”  After a stay of four years in the West, during which he achieved extraordinary fame and recognition and was virtually lionized by the society; when he was about to depart for India, a Westerner asked him how he was feeling about returning to his motherland.  In reply he said, “India I loved before I came away.  Now the very dust of India has become holy to me, the very air is now to me holy; it is now the holy land, the place of pilgrimage, the Tirtha." 

Swami Vivekananda clearly identified the causes for our downfall, one of which was the neglect of the masses which he labeled as the great national sin.  He said, “The poor, the low, the sinner in India have no friends, no help – they cannot rise, try however they may.  They sink lower and lower every day, they feel the blows showered upon them by a cruel society, and they do not know whence the blow comes.”  He said that millions were oppressed in the name of religion and one of the chief causes of India’s ruin was the monopoly of education by a few belonging to the privileged classes. 

Swami Vivekananda said that the whole difference between the West and the East is in that, they are nations i.e. civilizations, whereas we are not.  While the higher classes in India and the West are the same, but there is infinite distance between the lower classes of these countries.  He lamented that for centuries people had been taught theories of degradation and have been told that they were nothing.  The masses have been repeatedly told that they are not human beings and frightened for centuries till that they have become animals.  Laziness, lack of energy, want of sympathy and appreciation for others were at the root of all miseries and that they should be given up. 

Another cause according to him was our exclusiveness. India went into her shell as the oyster does, and refused to give her jewels and her treasures to the other races of mankind, refused to give the life-giving truths to thirsting nations outside the Aryan fold.  He said that we shut ourselves from the outside world, did not go out and did not compare notes with other nations.  One of the drawbacks of our nation according to him was that it totally lacked in the faculty of organization and that we are altogether averse to making a common cause for anything.   He said that the first requisite for organisation was obedience which we lacked as a race.  He said, “In spite of the greatness of the Upanishads, in spite of our boasted ancestry of sages, compared to many other races, I must tell you that we are weak, very weak. First of all is our physical weakness. That physical weakness is the cause of at least one-third of our miseries. We are lazy, we cannot work; we cannot combine, we do not love each other; we are intensely selfish, not three of us can come together without hating each other, without being jealous of each other.”  According to him another major reason for India’s degradation was the trampling of the women.  He said that our country is one of the weakest in the world because Shakti was held in dishonor here.  In addition to the causes identified by Swamiji, corruption, particularly in public life has become yet another major cause.  But, then the solutions given by Swamiji cover this malady also. 

What is the way to regeneration?  The first step in this regard is uplifting the masses by restoring their lost individuality and faith in themselves.  Swami Vivekananda said that we should remember that the nation lives in the cottages and that no amount of politics will be of any avail until the masses of India are once more well educated, well fed and well cared for.  He said, “our mission is for the destitute, the poor, and the illiterate peasantry and labouring classes, and if, after everything has been done for them first, there is spare time, then only for the gentry.”  He said emphatically that we should feel proud of our past and derive our strength and inspiration from those glorious chapters of the bygone days.  Along with this he also advocated respect for the great men of the country.  He was of the firm view that material civilization was absolutely necessary to create work for the poor.  He said, “Bread! Bread! I do not believe in a God, who cannot give me bread here, giving me eternal bliss in heaven! Pooh! India is to be raised, the poor are to be fed,education is to be spread...”  He said that uplift of women deserves utmost priority and only after that can there be hope for any real good for the nation.  He said, “All nations have attained greatness by paying proper respect to women. That country and that nation which does not respect women has never become great”. 

Swami Vivekananda laid the greatest emphasis on education for the regeneration of our motherland.  He said, “Education, education, education alone! Travelling through many cities of Europe and observing in them the comforts and education of even the poor people, these brought to my mind the state of our own poor people, and I used to shed tears. What made the difference? Education was the answer I got.”  According to him, a nation is advanced in proportion as education is spread among the masses.  But, what was the education that he advocated?  According to him “education is the manifestation of perfection already in man and that what a man ‘learns’ is really what he ‘discovers’ by taking the cover off his own soul, which is a mine of infinite knowledge.”  Hence he said that our process of education should be such that it helps the students to manifest their innate knowledge and power.  He advocated a man-making character-building education.  He said, “We want that education by which character is formed, strength of mind is increased, the intellect is expanded, and by which one can stand on one's own feet.”  He said that education must make the students self-reliant and help them face the challenges of life.  He was highly critical of the so-called educated who do not care for the poor and downtrodden.  He said, “So long as the millions live in hunger and ignorance, I hold every man a traitor who, having been educated at their expense, pays not the least heed to them.”  According to him, three things are necessary to make every man great, every nation great and that is we should have conviction in the powers of goodness, the absence of jealousy and suspicion and helping all those who are trying to be and do good. 

Swami Vivekananda had immense faith in the youth of this country and said that they would work out his ideas like lions. “That you may catch my fire, that you may be intensely sincere, that you may die the heroes' death on the field of battle — is the constant prayer of Vivekananda.”

Andaman & Nicobar Tribal Research Institute (ANTRI)

VICE PRESIDENT VISITS ANDAMAN & NICOBAR TRIBAL RESEARCH INSTITUTE IN PORT BLAIR

The Vice President of India, Shri M. Hamid Ansari evinced deep interest in the anthropological and cultural aspects of different aboriginal tribes of Andaman & Nicobar Islands. He visited the Andaman & Nicobar Tribal Research Institute (ANTRI) in Port Blair today, on the eve of its first anniversary. The Vice President is on a four-day visit to the Islands since yesterday. In ANTRI, Vice President inspected the exhibits on the tribal lifestyles. Lt Governor of the Union Territory, Lt Gen (Retd) AK Singh explained to him the evolution of ANTRI as one of the premier institutes of research on tribal studies in a short span of time. He also explained the differing perceptions on tribal issues among the general public, researchers, pressure groups, NGOs etc and the aspirations of some of the tribes and gave details on the welfare measures being undertaken by the Union Territory Administration with responsibility and accountability, by taking into account the learned views of specialists on the subject and other stakeholders. Prof. Vishwajit Pandya, Honorary Director, ANTRI, made power point presentations on the tribes like Jarawas, Shompens, Onges and Nicobarese and briefed about the linkages of the tribes with their counterparts in certain other parts of the world. He also elucidated the novel bilingual and pictorial educational programme for the Jarawas called "Ang Katha," with the help of the Aadhim Janjati Vikas Samiti, a quasi-Government organisation under the Islands Administration.

Highlights of PM’s speech at Vibrant Gujarat Summit, January 11, 2015, Gandhinagar

Let me begin by expressing our solidarity with the people of France as they mourn their loss and come to terms with the brutal terrorist attack. As we see it spread around the world, let us pledge to work together to make sure that it will not succeed against the life that we have all gathered here to build, and the values that we stand for. On behalf of the people of India and on my personal behalf, I welcome you all to this Summit. In January, 2013, while concluding the sixth Summit, I had extended an invitation for today’s event. Your response has been outstanding. I am glad to be here to welcome you. On this occasion, I express my gratitude to the old partners of this event - both countries and organisations. These include Japan and Canada. Without their support, this event could not have come this far. I also welcome warmly and thank new partners like USA, UK, Netherlands, Australia, Singapore and South Africa for joining this event. I particularly thank the Secretary General of the United Nations and the President of the World Bank for their presence. It shows their commitment towards progress and prosperity in emerging economies. Your partnership has enhanced the enterprising spirit of 60 million Gujaratis. It has boosted the morale of 1.2 billion Indians. This event is perhaps the biggest gathering on earth where, a budding entrepreneur has the opportunity to see the President of the World Bank. And where a young farmer, dreaming to set up a food processing unit, can listen to the views of the UN Secretary General on issues like food security. That is why, during one of the previous events, I had called it ‘Davos in Action.’ Friends! India has always believed that the whole world is one family (Vasudhaiva Kutumbakam). Few have seen this in practice. I am informed that more than hundred countries are participating in this event. We are here as a family not only in terms of space, but also because we recognise that • Someone’s dream is dependent on someone’s direction; • Someone’s success is related to someone’s support; • Someone’s curiosity is linked to someone’s care; This is what a family does. The ultimate objective is welfare of all. Loka Samastah Sukhinau Bhavantu. I am sure all of us, from the Secretary General of UN to the President of the World Bank, from leaders of the strongest economies to delegations of small countries, from CEOs of Fortune 500 companies to start-up entrepreneurs, all want the planet earth to become a better place to live. Thus, our meeting here is not just - • A meeting of hands but also of hearts; • It is not only a meeting of ideas, but also of aspirations As a host to this family gathering, As a curator of thousands of dreams floating here, I welcome you all once again. I hope your stay here is comfortable. I trust you will enjoy our hospitality. This is the time of Kite Festival in Gujarat. This festival gives us the message of high spirits. Do participate in it. Friends! After becoming Prime Minister, I have travelled to the remotest parts of India and also to various parts of the world. I have been to the UN, BRICS, ASEAN, East Asian Summit, G-20 and SAARC summits. Some common worries have been expressed everywhere. The biggest concern is about the global economy. We all have to find ways for its stability and recovery. We also have to work for sustainable and inclusive growth. We, in India, believe that problems present us with opportunities to become stronger, disciplined and innovative. My Government is trying to generate confidence. We have prepared a team to secure a robust future. We believe that changes start with a change in mindset. Friends! It is a matter of great pride that today, there is tremendous interest in India. Countries are coming forward to work with us. This has, of course, generated expectations from us. India’s present as well as its rich past is being recognised. I thank the UN Secretary General for giving a formal international stature to Yoga. A record number of 177 countries supported the Indian proposal. Yoga is both a science and an art for improving human life. In today’s world, it teaches us to remain stable even in adverse situations. Friends, the 2009 edition of this event created vibrancy when the state of the global economy was depressing. The summits of 2011 and 2013 succeeded in strengthening investor confidence. It is only because of persistence with positivity that this event of Gujarat Government has become an event for the entire country. This platform has been enlarged so that other states too can take advantage. Today, many other states have adopted this approach. The Government of India is committed to support such initiatives by any state government. Friends! We will have to change the way we have been approaching problems. Recession is often seen just in the context of business and Industry. Have we ever thought of recession as being the result of low per capita income in countries where a majority of the global population lives? Have we ever thought of its solution in terms of enhancing the common man’s employability, income and purchasing power? This is the biggest task at hand in India. Mahatma Gandhi rightly talked about the last man. And Gandhiji’s message can show us the way. It is therefore appropriate that this summit is taking place in Mahatma Mandir. An excellent multimedia exhibition on the life of the Mahatma has been set up in Dandi Kutir nearby. It portrays the life journey of Gandhiji in brief. In addition, just a few steps away from here, there is a world class mega exhibition which showcases products and services by leading companies from India and abroad. I am sure you will not miss the chance to see these magnificent exhibitions. To me, the best outcome of this event should be inclusiveness and involvement of communities needing care and development. Thus, this event stands for- • Inclusiveness of small with big; • Inclusiveness of poor with rich; • Inclusiveness of gut feelings with mature thoughts I assure this global platform that India wants to work with the global leadership. Be they issues of poverty or ecology, we want to contribute to welfare of the global community. We are aware that with one sixth of the world’s population, our activities will have a global impact. We are ready to learn and make this impact positive. However, India has to be seen from a different angle. It is not just a country of today. It is also an old civilisation. It is not just a country of a few cities. It is a country of thousands of towns and several hundred thousand villages. It is a country of diverse communities. Therefore, India has its own solutions for many pressing problems. • Our philosophy is a philosophy of conservation; • Our culture teaches us nurturing of nature; • Our way of life is that of harnessing Such thoughts and practices have existed in India for centuries. Thus, whatever we will do, it will be aligned with our culture, ethos and beliefs. Because, we know, this is what will work in India. Friends! Our last national elections marked a turning point in Indian democracy. They indicated the high aspirations of our people. This was amply reflected in the record voter participation and a clear verdict in favour of one political party after a gap of 30 years. My government is committed to changing and improving the economic and social condition of India including the quality of life. In a short span of seven months, we have been able to change the atmosphere of despair and uncertainty. Since the first day, my government is actively working to revive the economy. My government is committed to create a policy environment that is predictable, transparent and fair. Friends! We are on the path of transformation. To start this process, we are making efforts to change the work culture. We have to strengthen our institutions and systems of delivery. To drive this change forcefully, we have recently re-constituted our Planning Commission. Now, it is known as NITI Ayog. We want to promote co-operative federalism in the country. At the same time, we want a competitive element among the states to create and attract whatever is needed there. I call this new form of federalism: Co-operative and Competitive Federalism. You may be aware that our economic growth had slowed down during the last few years. Now, my Government is putting all efforts to ensure faster and yet inclusive growth. The initial results are encouraging. On the economic front, during the first two quarters, we registered a growth rate which was one percent higher than the previous year. The IMF has observed that India will be the 2nd fastest growing economy in the coming years. According to the latest forecast of the OECD, India would be the only country among world's top economies which would increase its pace of growth this year. HSBC's latest report has identified India as the world's largest growing exporter, which is set to move from being the fourteenth to the fifth largest exporter in the world by 2030. On the political front also, people of various states have supported us in the recent Assembly elections. This gives us the confidence that we are moving in right direction. Let me tell you a little about what we are doing and where we want to reach. Friends! We are not merely making commitments and announcements. We are also backing them up with concrete action at the level of policy and practice. For example, I announced a Financial Inclusion programme. In four months, we have opened more than 100 million bank accounts. We are planning to build smart cities equipped with world-class amenities. For this purpose, we have further liberalized the FDI policy in construction sector. I announced that a modern rail system including high speed rails will be set up. Immediately, we opened up railways for 100% FDI. I announced that defence production in the country would be encouraged. The next step was to open the defence sector for FDI up to 49%. We have taken similar steps in many other areas. These include bringing 49% FDI in insurance. It also includes liberalization of FDI norms for manufacturing of medical devices. Simultaneously, on the administrative front, we are actively working to provide policy driven governance. We have taken far reaching decisions to ensure supply of key natural resources. This includes coal, iron ore and other minerals. We have also amended legal provisions to facilitate availability of land. This has been done to enable development in remote areas while ensuring better returns to the farming community. We are trying to complete the circle of economic reforms speedily. We are also keen to see that our policies are predictable. We are clear that our tax regime should be stable. In the last few months, we have taken several decisions in this direction. We have put focus on building Infrastructure through public and private Investments. This will include national roads, national grids of gas, electricity and water. It also includes rural infrastructure, 24x7 electric supply, farm irrigation and cleaning of rivers. In order to execute the infrastructure plan, a fast track PPP mechanism is being put in place. We are undertaking the Sagarmala project to ensure port led development. Existing ports are being modernized. New world class ports will be developed along India's coast. Ports will be better connected to the hinterland through road and rail. Inland and coastal waterways will be developed as major transport routes. Low cost airports are being planned to improve regional connectivity, especially to tier-two towns and places of economic and tourist importance. We are also keen to move towards the next generation infrastructure. Just as we need highways, we need I-ways too. Under the Digital India Initiative, IT will be used to drive Government processes to improve service delivery and programme implementation, and also to provide broadband connectivity to villages. To upgrade manufacturing Infrastructure, we are setting up world-class investment and industrial regions along the dedicated freight corridors and industrial corridors. Government of India is working towards single window clearance at the Federal and State levels. Four months back, we launched Make In India initiative to encourage the growth of manufacturing in the country. We are working hard to make India a global manufacturing hub. We are promoting, in particular, labour intensive manufacturing. I have launched these initiatives in a campaign mode so that they force us in the Government to make faster corrections. They challenge us to do away with the red tape and become pro-active. With this purpose, our applications and processes are being aggressively put online. Ease of doing business in India is a prime concern for you and us I assure you that we are working very seriously on these issues We want to make them: • Not only easier than earlier; • Not only easier than the rest; • But, we want to make them the easiest Friends! Many of you might be interested to know - Why India? India has three things to its credit - Democracy, Demography and Demand. This is what you are looking for. And I am sure, you will not find all of them together at any other destination. India offers you the potential of low cost manufacturing. India has low cost and high quality manpower. 65% of our population is below 35 years of age. We are trying to further harness these strengths through better management and good governance. In the recently launched Mars Orbiter Mission, everything was made indigenously. In fact, most mission components were made in very small factories. Friends! We have large number of hands to work. And, we have even larger number of dreams to be realised. Therefore, employment opportunities are being enhanced by promoting manufacturing, agro-based industries, tourism as well as services. We have undertaken labour reforms to encourage enterprise and to create a bigger job market for our youth. I have always said that development process should benefit the common man as well as the business sector. Therefore, my Government has established a new Ministry for skill development to enhance our human resource potential. For this, we are placing equal emphasis on knowledge, technology, innovation and research and development. This includes the use of ICT for improving governance and resource management. I understand this because I use modern tools of communication myself. Friends! Today, India is a land of opportunities. We have to build fast track roads and railways. We have to energise homes and factories on a continuous basis. We have to build infrastructure for cities where almost half of our population lives. We have to take the taste of modern amenities to every village. We have to propel our growth through value addition in our natural resources and agri-produce. We have to provide services to our people which are of global standards. At the same time, the whole world is looking for certain services. If our human resource can be equipped with skills and technology, we may serve the world in many areas. Thus, there are immense possibilities for global investors in India. The process of development we are taking up is not incremental. We are planning to take a quantum leap. It is not limited to one sector or region, it is truly unlimited. And we want to do things in a cleaner and greener way. We are open to ideas, investments and innovations: Friends! • We have made commitments to our people • We have made commitments to ourselves • We have made commitments for India’s great future • We have to write our new destiny • And we have to write it in a very short time We know that to do this, we need an enabling policy framework. We are working constantly to improve it further. However, I can say with confidence that even today, the strength of Indian democracy and independence of our judicial system provide a level playing field for long lasting business. I would conclude by saying that- • We are dreaming big; • And our dreams are numerous; • Our dreams can become the seeds of your growth; • Our aspirations can propel your ambitions Friends! on behalf of the Government, let me give an assurance. We assure you that we will be available to hold your hands whenever you need us. You will find us standing with you in your journey. If you walk one step; we will walk two steps for you. At the end, I urge you to see and realise for yourself that - • India is changing fast; • India is growing fast; • India is moving faster than expected; • India is learning even faster; • India is ready than ever before Let us join hands! Let us work together for progress, prosperity and peace.