New Delhi, Aug 14 (UNI) The brightest minds of the country are not satisfied at what is India today, the missing link being the mass of poor amidst pockets of affluence.
Poverty is a threat to prosperity anywhere and everywhere, goes an old adage.
But the dismay is that the system has not delivered to the poor, who survive on just a dollar a day. The need of the hour is to empower one and all, not just a few.
It is not an act of charity, but borne out of the democratic credentials of the wonder that is India. Empowering also means sustainable development. A hugely unequal system has the potential to explode.
These views crystalised at an event organsied recently by 'NDTV Profit' where the participants included Nobel Laurete Amartya Sen, Amitav Ghiosh, a remowned novelist and author, Dr R A Mashelkar, former Director General, CSIR, Charles Correa, a Mumbai-based architect, and Piyush Pandey, an ad guru. Entitled; 'The Unstoppable Indians; Defining a new India,'the occasion was to debate India's agenda for the future. After brief comments, the celebrities of the world of letters interacted with some award winning students who won an essay competition organsiedby the channel.
"The conclave is essentially a celeberation of the Indian spirit", remarked Manvi Dhillon, who moderated the programme.
Said Dr Sen: "I am not a great believer in the magically inspired power of individual success. The
focus should be on the betterment of human life and not only on commodity expansion."
"The role of society, government and the opposition is important.
The focus should be on the life that people are able to lead and we should be able to justify the ends to ourselves and others," he said.
Mr Correa brought in a comparative approach, saying; "unlike other countries like the United Kingdom and France where London and Paris are their well-known cities, India is balanced with many recognisable cities. Indian cities have incredible potential andare engines of growth."Mr Correa said cities in India form the basis of hope and are changing the nature of societies.
"Unfortunately, they are run in the most terrible system by political parties who rely on real estate for revenues. We need a system that can be held accountable," he said.
On being asked how India can seize the moment, Mr Correa said, "India has the advantage of democracy, demography and diversity. It needs to recognise the power of its talent, unquestionably and undisputedly."
Mr Correa said India needs to be tolerant towards risk-taking, ambiguity and failure.
To a question as to how privileged members of the Indian society can help remove inequity and poverty, Mr Ghosh said, "India has really changed in the last 15 years. The success of the new generation is based on education. They have a real engagement withsociety and believe in spending on the social structure."
On the youth of modern India finding itself at the crossroads paved by traditional values and Western materialism, Mr Pandey said, "we Indians have a big advantage of having our roots in place. We are born in a country that accepts adaptability. We don'tneed to choose."
Thursday, August 21, 2008
Inflation rate finally breaches 12% mark; highest since 1995
New Delhi, Aug 7 (UNI) Inflation rate today scaled an all time high in 13 years with the figure being at 12.01 per cent for the week ended July 26, as the index for the two major groups 'Primary Articles' and 'Manufactured Products' going up by 0.1 per cent each.The index for the groups which showed an increase are: 'Food Articles' (0.1%), 'Non-Food Articles' (0.4%), 'Fuel, Power, Light and Lubricants' (0.2%), 'Food Products' (0.1%), 'Textiles' (0.4%), 'Paper and Paper Products' (0.2%), 'Non-Metallic Mineral Products' (marginal increase) and Machinery and Machinery Tools (0.1%).
Only two group showed a decline in the index. These are 'Minerals' (0.6%) and 'Chemical and Chemical Products' (0.5%).The Wholesale Price Index (WPI) for the previous week stood at 11.98 per cent, but data released by Commerce and Industry Ministry today showed that inflation rate has finally breached the barrier of 12 per cent--the highest since 1995.
The rate of inflation a year ago in the same month stood at 4.7 per cent.
The Finance Ministry, however, said inflation, on a week-on-week basis has continued to remain stable.
It said the annual inflation rate for the group of 30 essential commodities at 6.66 per cent was marginally lower than the inflation of 6.67 per cent recorded in previous week.
The Ministry said annual inflation of these commodities has continued to be range bound between 5.7 to 6.7 per cent in 17 weeks of the current fiscal year.
The Ministry said prices of essential commodities which include food grains, pulses, edible oils, vegetables, dairy products and some other commodities including kerosene, soap and safety matches have more or less stabilised.
For the past few weeks, inflation rate has moved in the region of 11 per cent plus, but did not touch the 12 per cent mark.
Inflation rate is now the highest since 1995.
Inflation data, however, dashed hopes of the corporates that the Reserve Bank of India (RBI) will relax its monetary policy stance of high interest rates, following easing of global crude prices from more than 140 dollars a barrel some times back to about 120 dollars a barrel now.
The stock markets too were nervous for the past few days on fears that inflation data would be disappointing, notwithstanding the fact the BSE Sensex moved up 112 points yesterday and 43.71 points today.There were signs of nervous selling.
The annual rate of inflation, calculated on a point to point basis for 'Primary Articles' stood at 10.32 per cent for the week ended July 26 as compared to 10.47 per cent on July 28, 2007.
The inflation rate for 'Food Articles' stood at 5.78 per cent as compared to 9.74 per cent a year ago.
The Finance Ministry said out of a total of 318 commodities in the 'Manufactured Products' group, 299 have shown no increase in prices over last week.
In the case of four commodities there is a decline in prices. These include cottonseed oil, groundnut oil, resins and acids of all kinds.
However, 15 commodities in the group showed a hike. These are cotton and woolen yarn, woollen cloth, groundnut cake, white printing paper, ball bearings, caustic soda, cement, newsprint and sugar.
Out of a total of 98 articles in 'Primary Article' group, 18 articles have shown a decline in prices. These include arhar, gram, barley, wheat, rice, bajra, urad, fresh coconut, cardamoms, groundnut seed and iron ore.
The Ministry said another 53 articles have shown no increase in prices.
Prices of 18 articles, out of a total of 19, in the commodity group 'Fuel and Power' have not shown any increase.
The Indian authorities grappling with the monster of inflation can draw some comfort from the fact that the bug of inflation has bitten entire Asia.
Surging energy and commodity prices are fuelling inflation across the region.
Consumer prices in the Philippines rose 12.2 per cent in July from a year ago, the fastest growth in 16 years.
Taiwan's inflation rate stood at 5.92 per cent in July, the highest in 14 years.
The Bank of Korea today raised its benchmark interest rate to its steepest in the eight years, to combat inflation, the highest in a decade.
Thus, India's Central Bank is not lone in repeatedly raising the benchmart lending rate-the repo--and Cash Reserve Ratio(CRR) to put a squeeze on consumer spending.
But the Indian policy makers are now telling the public that prices will cool down by March 2009. The first call in this regard was that of RBI Governor Y V Reddy and today Planning Commission Deputy Chairman Montek Singh Ahluwalia made a similar statement.
The year 2008 will not only go down in history as the year of the Beijing Olympics, but also of a significant slowdown in almost all the Asian economies.
The big four Asian tigers-- Hong Kong, Korea, Taipei and Singapore--are expected to experience harsh lending where GDP growth would slump.
After many years, China too will be in the single digit zone of growth rate, after surprising the world for many years with sustained double-digit GDP growth.The queer fact, however, about India is that the ruling coalition may have to pay a price for low growth and high prices , faced as itis with elections to some State assemblies later this year and aGeneral Election next year.
Only two group showed a decline in the index. These are 'Minerals' (0.6%) and 'Chemical and Chemical Products' (0.5%).The Wholesale Price Index (WPI) for the previous week stood at 11.98 per cent, but data released by Commerce and Industry Ministry today showed that inflation rate has finally breached the barrier of 12 per cent--the highest since 1995.
The rate of inflation a year ago in the same month stood at 4.7 per cent.
The Finance Ministry, however, said inflation, on a week-on-week basis has continued to remain stable.
It said the annual inflation rate for the group of 30 essential commodities at 6.66 per cent was marginally lower than the inflation of 6.67 per cent recorded in previous week.
The Ministry said annual inflation of these commodities has continued to be range bound between 5.7 to 6.7 per cent in 17 weeks of the current fiscal year.
The Ministry said prices of essential commodities which include food grains, pulses, edible oils, vegetables, dairy products and some other commodities including kerosene, soap and safety matches have more or less stabilised.
For the past few weeks, inflation rate has moved in the region of 11 per cent plus, but did not touch the 12 per cent mark.
Inflation rate is now the highest since 1995.
Inflation data, however, dashed hopes of the corporates that the Reserve Bank of India (RBI) will relax its monetary policy stance of high interest rates, following easing of global crude prices from more than 140 dollars a barrel some times back to about 120 dollars a barrel now.
The stock markets too were nervous for the past few days on fears that inflation data would be disappointing, notwithstanding the fact the BSE Sensex moved up 112 points yesterday and 43.71 points today.There were signs of nervous selling.
The annual rate of inflation, calculated on a point to point basis for 'Primary Articles' stood at 10.32 per cent for the week ended July 26 as compared to 10.47 per cent on July 28, 2007.
The inflation rate for 'Food Articles' stood at 5.78 per cent as compared to 9.74 per cent a year ago.
The Finance Ministry said out of a total of 318 commodities in the 'Manufactured Products' group, 299 have shown no increase in prices over last week.
In the case of four commodities there is a decline in prices. These include cottonseed oil, groundnut oil, resins and acids of all kinds.
However, 15 commodities in the group showed a hike. These are cotton and woolen yarn, woollen cloth, groundnut cake, white printing paper, ball bearings, caustic soda, cement, newsprint and sugar.
Out of a total of 98 articles in 'Primary Article' group, 18 articles have shown a decline in prices. These include arhar, gram, barley, wheat, rice, bajra, urad, fresh coconut, cardamoms, groundnut seed and iron ore.
The Ministry said another 53 articles have shown no increase in prices.
Prices of 18 articles, out of a total of 19, in the commodity group 'Fuel and Power' have not shown any increase.
The Indian authorities grappling with the monster of inflation can draw some comfort from the fact that the bug of inflation has bitten entire Asia.
Surging energy and commodity prices are fuelling inflation across the region.
Consumer prices in the Philippines rose 12.2 per cent in July from a year ago, the fastest growth in 16 years.
Taiwan's inflation rate stood at 5.92 per cent in July, the highest in 14 years.
The Bank of Korea today raised its benchmark interest rate to its steepest in the eight years, to combat inflation, the highest in a decade.
Thus, India's Central Bank is not lone in repeatedly raising the benchmart lending rate-the repo--and Cash Reserve Ratio(CRR) to put a squeeze on consumer spending.
But the Indian policy makers are now telling the public that prices will cool down by March 2009. The first call in this regard was that of RBI Governor Y V Reddy and today Planning Commission Deputy Chairman Montek Singh Ahluwalia made a similar statement.
The year 2008 will not only go down in history as the year of the Beijing Olympics, but also of a significant slowdown in almost all the Asian economies.
The big four Asian tigers-- Hong Kong, Korea, Taipei and Singapore--are expected to experience harsh lending where GDP growth would slump.
After many years, China too will be in the single digit zone of growth rate, after surprising the world for many years with sustained double-digit GDP growth.The queer fact, however, about India is that the ruling coalition may have to pay a price for low growth and high prices , faced as itis with elections to some State assemblies later this year and aGeneral Election next year.
Financial Inclusion the HSBC way--employees partner SHGs
Financial Inclusion the HSBC way--employees partner SHGs
By Gurdip Singh
New Delhi, Aug 10 (UNI) The Hongkong & Shanghai Banking Corporation Ltd (India) has adopted a unique model of financial inclusion where its employees volunteer to work for projects which are being run by the Self Help Groups (SHGs) funded by the Bank. ''It is mostly the younger employees which are coming forward to offer their services, for which the Bank offers no incentives. We are only facilitators,'' says Ms Naina Lal Kidwai, HSBC Country-Head India.
Ms Kidwai said the Bank as part of its financial inclusion strategy is funding SHGs and Micro Finance Institutions (MFIs).
The employees go and work in institutions that are being run by these SHGs. These are mostly schools, dispensaries and development projects.
In chat with newspersons, Ms Kidwai said the enthusiasm of the employees deserves commendation as what they do in these projects does not find a mention in their confidential reports. They also often pay for their travel to go to these projects.
The employees of the UK-based Bank are normally better paid than those of Indian banks. It is perhaps this feeling which spurs them to community action.
Those who have had their fill would want to return it back to society.
''It is love for India and the good sense of community service which drives the youth of the Bank to work for the less privileged,'' Ms Kidwai said. ''The younger generation is a wonderful lot,'' she remarked.
Ms Kidwai said a key challenge before the Banking sector is to bank the hitherto unbanked population and reach the bottom of the pyramid.
According to a recent survey only 59 per cent of the adult population in India has a savings account. In rural areas only 39 per cent of the adult population enjoys banking facilities.
On a question relating to the thrust areas of the Bank, Ms Kidwai said the focus on Corporate lending will remain funding to Small and Medium Enterprises (SMEs) and help them graduate to higher levels.
She said in Tier-II and Tier-III cities, there is mushroom growth of the SME sector. The Bank with substantial experience—domestic and foreign--can help the growth of these firms. It is not just the requirements of capital that is needed but also environmental knowledge--both business and ecological-- that will help these companies prepare for the ever tougher competitive environment in which they will have to work.
To a question pertaining to outlook for profits, Ms Kidwai said HSBC India expects its profit growth to moderate in the 2008-09 financial year due to the prevailing high-interest rate environment leading to a credit slowdown in the country.
HSBC India had posted a net profit growth of 41 per cent in 2007-08 and 64 per cent in 2006-07.
It posted a 24 per cent growth in Profit Before Tax (PBT) in the first half of 2008.
HSBC India’s balance sheet stood at Rs 76,000 crore in 2007-08, 40 per cent of which is in retail. ''We intend to maintain retail portfolio at that level,'' Ms Kidwai said.
While the Bank is rapidly expanding wholesale banking, corporate banking and trade financing, it is consciously moderating exposure in the retail sector owing to higher provisioning.
Ms Kidwai said if interest rates remain on a higher level for the next six months, demand for credit from corporations would be impacted.
She was of the view that the interest rate scenario will remain ''flat'' at least for the next two to three months.
Ms Kidwai said there had been a slowdown in credit offtake from big corporates and Small and Medium Enterprises. However, there has been a natural slowdown in retail segment.
''If interest rates continue to stay high for the next six months, there will be a slowdown in investment spend. From being buoyantly optimistic about business environment, India Inc is now cautiously optimistic. They are adopting a wait and watch approach,'' Ms Kidwai said.
She said the global footprints of the Bank are an advantage. It enables transfer of technology and helps access the complete profile of a customer.
It is on this basis that the credit profile of the client is assessed.
However, credit cards have been issued on a stand alone basis.This has sometimes created problems of its own for the Banking sector, Ms Kidwai said.
HSBC Bank was founded in 1865 to serve the needs of the merchants of the China coast and finance the growing trade among China, Europe and the United States.
The origins of HSBC Bank in India can be traced back to October 1853 when the Mercantile Bank of India, London and China was founded in Bombay.
In 1959, the Mercantile Bank of India was acquired by the HSBC and the head office of the Bank was established in Mumbai. In 1987, the Bank gave India its first ATM.
Through the 1990s, HSBC Bank blossomed into one of the leading banking and financial services organisations of the world.
HSBC Bank has about 10,000 offices in 76 countries and territories in Europe, the Asia Pacific region, the US, West Asia and Africa.The tagline of HSBC is 'The World's local Bank.' The manner in which the Bank, more particularly its employees, have got on to serve local communities in India and the Bank increasingly lending to Small and Medium Industries, is a testimony of how a foreign bank is adapting itself to local conditions.
By Gurdip Singh
New Delhi, Aug 10 (UNI) The Hongkong & Shanghai Banking Corporation Ltd (India) has adopted a unique model of financial inclusion where its employees volunteer to work for projects which are being run by the Self Help Groups (SHGs) funded by the Bank. ''It is mostly the younger employees which are coming forward to offer their services, for which the Bank offers no incentives. We are only facilitators,'' says Ms Naina Lal Kidwai, HSBC Country-Head India.
Ms Kidwai said the Bank as part of its financial inclusion strategy is funding SHGs and Micro Finance Institutions (MFIs).
The employees go and work in institutions that are being run by these SHGs. These are mostly schools, dispensaries and development projects.
In chat with newspersons, Ms Kidwai said the enthusiasm of the employees deserves commendation as what they do in these projects does not find a mention in their confidential reports. They also often pay for their travel to go to these projects.
The employees of the UK-based Bank are normally better paid than those of Indian banks. It is perhaps this feeling which spurs them to community action.
Those who have had their fill would want to return it back to society.
''It is love for India and the good sense of community service which drives the youth of the Bank to work for the less privileged,'' Ms Kidwai said. ''The younger generation is a wonderful lot,'' she remarked.
Ms Kidwai said a key challenge before the Banking sector is to bank the hitherto unbanked population and reach the bottom of the pyramid.
According to a recent survey only 59 per cent of the adult population in India has a savings account. In rural areas only 39 per cent of the adult population enjoys banking facilities.
On a question relating to the thrust areas of the Bank, Ms Kidwai said the focus on Corporate lending will remain funding to Small and Medium Enterprises (SMEs) and help them graduate to higher levels.
She said in Tier-II and Tier-III cities, there is mushroom growth of the SME sector. The Bank with substantial experience—domestic and foreign--can help the growth of these firms. It is not just the requirements of capital that is needed but also environmental knowledge--both business and ecological-- that will help these companies prepare for the ever tougher competitive environment in which they will have to work.
To a question pertaining to outlook for profits, Ms Kidwai said HSBC India expects its profit growth to moderate in the 2008-09 financial year due to the prevailing high-interest rate environment leading to a credit slowdown in the country.
HSBC India had posted a net profit growth of 41 per cent in 2007-08 and 64 per cent in 2006-07.
It posted a 24 per cent growth in Profit Before Tax (PBT) in the first half of 2008.
HSBC India’s balance sheet stood at Rs 76,000 crore in 2007-08, 40 per cent of which is in retail. ''We intend to maintain retail portfolio at that level,'' Ms Kidwai said.
While the Bank is rapidly expanding wholesale banking, corporate banking and trade financing, it is consciously moderating exposure in the retail sector owing to higher provisioning.
Ms Kidwai said if interest rates remain on a higher level for the next six months, demand for credit from corporations would be impacted.
She was of the view that the interest rate scenario will remain ''flat'' at least for the next two to three months.
Ms Kidwai said there had been a slowdown in credit offtake from big corporates and Small and Medium Enterprises. However, there has been a natural slowdown in retail segment.
''If interest rates continue to stay high for the next six months, there will be a slowdown in investment spend. From being buoyantly optimistic about business environment, India Inc is now cautiously optimistic. They are adopting a wait and watch approach,'' Ms Kidwai said.
She said the global footprints of the Bank are an advantage. It enables transfer of technology and helps access the complete profile of a customer.
It is on this basis that the credit profile of the client is assessed.
However, credit cards have been issued on a stand alone basis.This has sometimes created problems of its own for the Banking sector, Ms Kidwai said.
HSBC Bank was founded in 1865 to serve the needs of the merchants of the China coast and finance the growing trade among China, Europe and the United States.
The origins of HSBC Bank in India can be traced back to October 1853 when the Mercantile Bank of India, London and China was founded in Bombay.
In 1959, the Mercantile Bank of India was acquired by the HSBC and the head office of the Bank was established in Mumbai. In 1987, the Bank gave India its first ATM.
Through the 1990s, HSBC Bank blossomed into one of the leading banking and financial services organisations of the world.
HSBC Bank has about 10,000 offices in 76 countries and territories in Europe, the Asia Pacific region, the US, West Asia and Africa.The tagline of HSBC is 'The World's local Bank.' The manner in which the Bank, more particularly its employees, have got on to serve local communities in India and the Bank increasingly lending to Small and Medium Industries, is a testimony of how a foreign bank is adapting itself to local conditions.
Canara, HSBC, OBC Life Insurance positions itself among top 5 player
New Delhi, Aug 6 (UNI) Canara, HSBC, Oriental Bank of Commerce (OBC)Life Insurance Co Ltd, which kicked off its operations in June, has done a brisk business of Rs 25 crore in the very first month of its existence and has positioned itself among the top five players in the sector, a top Joint Venture partner said here today.
''Insurance has huge potential in India in view of its low penetration. We plan to be among the top five players in the life insurance segment,'' Ms Naina Lal Kidwai, HSBC Country Head, India, told newspersons here.
Ms Kidwai said the inroads made by the Public Sector major Life Insurance Corporation into rural areas have helped companies like the newly set up joint venture to penetrate rural markets.
The new company is a partnership between two of India’s largest nationalised banks--Canara Bank and OBC--and HSBC Insurance (Asia Pacific) Holdings Ltd. The company became operational from June 16,2008.
The company, headquartered in Gurgaon, is capitalised at Rs 325crore. While Canara Bank holds the majority 51 per cent stake in the company, HSBC and OBC hold 26 per cent and 23 per cent stake respectively.
Ms Kidwai said the potential for the company was huge and ascribed this to a number of factors. The emergence of nuclear families, the growing incomes, the lack of a credible social security system and the high savings rate are some of the reasons for this.
She said the new company aspires to be one of the top players in the life insurance field and will leverage the niche areas of each of the joint venture partners. The combined synergy would be phenomenal. Ms Kidwai said HSBC has substantial experience to go by, having sold the products of Tata AIG for sometimes now.
She compared insurance business to that of the telecom revolution.
Just as people were skeptical of its potential, there were doubts as to how far the private players would go. But the telecom revolution has made deep inroads into the rural areas and has helped improve their quality of life.
Similarly, private players in the insurance field will be able to make a dent in the rural areas.
In this regard, she referred to the presence of Canara Bank and OBC in rural India, which would enable the new company to penetrate even remote areas of the country. Ms Kidwai said the break up of the joint family and the emergence of nuclear family would help insurance growth.
For instance, children could buy insurance products for their parents. Besides, the older folks would buy an insurance product to serve as a security.
Ms Kidwai said the high savings rate of more than 30 per cent would also help growth of the insurance sector. Much of the savings rate does not pass through institutional mechanisms. This resource needs to be tapped.
Ms Kidwai said the name of the new company was selected after considerable research. It was felt that the venture which has the names of all three formidable players would be the best bet.
''Insurance has huge potential in India in view of its low penetration. We plan to be among the top five players in the life insurance segment,'' Ms Naina Lal Kidwai, HSBC Country Head, India, told newspersons here.
Ms Kidwai said the inroads made by the Public Sector major Life Insurance Corporation into rural areas have helped companies like the newly set up joint venture to penetrate rural markets.
The new company is a partnership between two of India’s largest nationalised banks--Canara Bank and OBC--and HSBC Insurance (Asia Pacific) Holdings Ltd. The company became operational from June 16,2008.
The company, headquartered in Gurgaon, is capitalised at Rs 325crore. While Canara Bank holds the majority 51 per cent stake in the company, HSBC and OBC hold 26 per cent and 23 per cent stake respectively.
Ms Kidwai said the potential for the company was huge and ascribed this to a number of factors. The emergence of nuclear families, the growing incomes, the lack of a credible social security system and the high savings rate are some of the reasons for this.
She said the new company aspires to be one of the top players in the life insurance field and will leverage the niche areas of each of the joint venture partners. The combined synergy would be phenomenal. Ms Kidwai said HSBC has substantial experience to go by, having sold the products of Tata AIG for sometimes now.
She compared insurance business to that of the telecom revolution.
Just as people were skeptical of its potential, there were doubts as to how far the private players would go. But the telecom revolution has made deep inroads into the rural areas and has helped improve their quality of life.
Similarly, private players in the insurance field will be able to make a dent in the rural areas.
In this regard, she referred to the presence of Canara Bank and OBC in rural India, which would enable the new company to penetrate even remote areas of the country. Ms Kidwai said the break up of the joint family and the emergence of nuclear family would help insurance growth.
For instance, children could buy insurance products for their parents. Besides, the older folks would buy an insurance product to serve as a security.
Ms Kidwai said the high savings rate of more than 30 per cent would also help growth of the insurance sector. Much of the savings rate does not pass through institutional mechanisms. This resource needs to be tapped.
Ms Kidwai said the name of the new company was selected after considerable research. It was felt that the venture which has the names of all three formidable players would be the best bet.
Tuesday, August 12, 2008
On Greening: India Inc does not put its money where its mouth is
New Delhi, Jul 27 (UNI) A KPMG survey released on issues pertaining to India Inc's preparedness to climate change brings out the startling gap between intent and action, with only 41 per cent of the companies having concrete plans on the subject, even though more than 80 per cent understand the compelling circumstances for doing so.
Another surprising dimension of the survey which was released recently finding is that Indian Inc's desire to respond to climate change issues appears to be driven largely by the need to comply with expected regulations, and pressures of adhering to corporate social responsibility initiatives.
Stringency in regulatory requirements is perceived to be the primary risk to business arising out of climate change issues.
Further, the need to prepare for expected regulations emerged as the most important factor in the formulation of the company's carbon strategy.
In short, the fears of India Inc emanate more from the fact of what may happen than what is actually happening. India's increasing pro-active stance in the global arena is worrisome for the Indian companies, this is the underlining message.
European corporates have to devote part of their profits for greening activities. This puts them at a disadvantage vis-a- vis Indian companies whose action on climate change is purely voluntary.
The European corporates may impose similar conditions on Indian companies.
An overwhelming 83 per cent of the respondents claimed to have a fair understanding of climate change issues.
However, just under half of these (41 per cent) respondents said they have a clear strategy in place to tackle these issues.
The survey entitled 'Climate Change: Is India Inc Prepared?' involves 70 respondents, half of which are large companies and other half Small and Medium Enterprises.
This fear has more to do with exporting companies, rather than those which are catering to the domestic market, a KPMG spokesperson of said.
''Developing countries like India and China are under increasing international pressure to undertake measures to limit their aggregate emission levels. While the government on its part has recently announced the National Action Plan on Climate Change, theonus is now on private businesses to do their bit,'' Mr Arvind Mahajan, KPMG National Industry Director (Energy, Infrastructure and Government) said.
The global awareness on climate change is far greater. Most companies in the developed world have measured and announced their baseline carbon footprint, and also their reduction targets over 5 to 10 year periods, the report said.
It also brings to light the lack of appreciation of the tools and capabilities required to contain climate change.
The report speaks about KPMG's own commitment to a greener India. It says the principal ambition of 'KPMG's Global Green Initiative' will be to reduce the member firms combined carbon footprint by 25 per cent by 2010 from a 2007 baseline, through emission reduction schemes and the use of renewable energy by its member firms.
Another surprising dimension of the survey which was released recently finding is that Indian Inc's desire to respond to climate change issues appears to be driven largely by the need to comply with expected regulations, and pressures of adhering to corporate social responsibility initiatives.
Stringency in regulatory requirements is perceived to be the primary risk to business arising out of climate change issues.
Further, the need to prepare for expected regulations emerged as the most important factor in the formulation of the company's carbon strategy.
In short, the fears of India Inc emanate more from the fact of what may happen than what is actually happening. India's increasing pro-active stance in the global arena is worrisome for the Indian companies, this is the underlining message.
European corporates have to devote part of their profits for greening activities. This puts them at a disadvantage vis-a- vis Indian companies whose action on climate change is purely voluntary.
The European corporates may impose similar conditions on Indian companies.
An overwhelming 83 per cent of the respondents claimed to have a fair understanding of climate change issues.
However, just under half of these (41 per cent) respondents said they have a clear strategy in place to tackle these issues.
The survey entitled 'Climate Change: Is India Inc Prepared?' involves 70 respondents, half of which are large companies and other half Small and Medium Enterprises.
This fear has more to do with exporting companies, rather than those which are catering to the domestic market, a KPMG spokesperson of said.
''Developing countries like India and China are under increasing international pressure to undertake measures to limit their aggregate emission levels. While the government on its part has recently announced the National Action Plan on Climate Change, theonus is now on private businesses to do their bit,'' Mr Arvind Mahajan, KPMG National Industry Director (Energy, Infrastructure and Government) said.
The global awareness on climate change is far greater. Most companies in the developed world have measured and announced their baseline carbon footprint, and also their reduction targets over 5 to 10 year periods, the report said.
It also brings to light the lack of appreciation of the tools and capabilities required to contain climate change.
The report speaks about KPMG's own commitment to a greener India. It says the principal ambition of 'KPMG's Global Green Initiative' will be to reduce the member firms combined carbon footprint by 25 per cent by 2010 from a 2007 baseline, through emission reduction schemes and the use of renewable energy by its member firms.
Inflation dips to 11.89%; its good news for the govt all the way
New Delhi, Jul 24 (UNI) The inflation data released here today was further good news for the Manmohan Singh government as inflation rate moved in the reverse direction with the figure of 11.89 per cent for the week ended July 12 as compared to 11.91 per cent forthe previous week.
This was unceasing good news for the UPA government after winning the trust vote on July 22 and stock market giving a thumbs up to its victory yesterday, it was inflation data which showed signs of downturn after almost a secular rise week after week and month and month. The annual inflation rate stood at 4.76 per cent as on July 14, 2007.
The index for 'Primary Articles' group rose by 0.6 per cent; for 'Fuel, Power, Light and Lubricants' group remained unchanged as compared to the previous week, and for the major group 'Manufactured Products', it rose by 0.05 per cent.
The index for 'Food Products' group rose by 0.1 per cent, for the 'Textile' Group declined by 0.1 per cent, 'Basic Alloys and Metal' group rose by a negligible amount and 'Machinery and MachineTools' group was up by 0.2 per cent.
The Finance Ministry, in a statement, said inflation has continued to remain "stable."
It said out of total 98 articles in the 'Primary Article' group, 10 articles have shown a decline in prices as compared to July 5, 2008.
These include fish marine, chillies dry, tea, potatoes, oranges, garlic, cardomom, black pepper, maize and cummin. Another 54 articles have shown no increase in prices.
Just a few weeks ago, when inflation crossed double-digit, the group 'Fuel and Power,' contributed 94 per cent to the inflation rate.
However, in this weeks' data, all the 19 articles in this commodity group have not shown any increase.
In the case of 'Manufactured Products', out of a total of 318 commodities, 299 have shown no increase in the prices over last week.
For nine commodities, there is a decline in prices. These include rice bran oil, cotton seed oil, ground nut oil, imported edible oil, gur, texturised yarn, hessian bags and cloth and liquid vitamins.
Only ten products, particularly lead and zinc ingots, ground nut cake, tyre cord fabrics, and rubber chemicals witnessed an increase in prices.
The annual inflation rate for the group of 30 essential commodities continues to be range-bound.
Prices of essential commodities which include food grains, pulses, edible oils, vegetables, dairy products and some other commodities including kerosene, soap and safety matches have more or less stabilised.
The BSE index moved up yesterday by a whopping 838 points on the government's winning the vote of confidence and amid hope that the Indo-US nuclear deal would come through as also the easing of global crude prices.
However, the market went down by 165 points today; paradoxically on fears that inflation rate will go up compelling the Cental Bank to further suck out liquidity in its review of the Credit Policy next week.
It even discounted renewed activity on the part of Foreign Institutional Investors (FII). Analysts say there was also profit booking in some counters after the hefty rise yesterday.
Reforms seems to be back on the agenda of the government with Left parties off its back.
All said and done, the fact of the matter is that inflation continues to be in the realm of double digit.
But how long it will remain so has become a hazardous activity.
The silver lining has been the reduction in prices of crude oil from 140 dollars plus a barrel to about 125 dollars a barrel.
Galloping world fuel and food prices have resulted in India's high rate of inflation. It is, however, some consolation that most countries in the region have also been seriously adversely effected.
The double-digit inflation has been due to the low base as inflation was less than four per cent until December, 2007 and the laggard effect of both monetary and fiscal policy measures taken recently to moderate inflation.
Reports now say that an emboldened government is thinking of reversing some of these measures, such as relaxing futures trading in certain commodities.
Expected good rabi crop might moderate the inflation rate to some extent from August onwards.
What the Central Bank will do now is as good as anybody's guess.
If it presses the brakes too harsh on monetary policy, then growth will certainly be a casualty and it may be harsh lending for the economy. Since the beginning of 2008, it has already been showing a downward movement.
It is also possible that it could achieve the same results by intervening in the forex market by strengthening the rupee.
This would result in lower import costs and also reduce money supply growth. This will moderate inflation both on the supply and demand side.All in all, a guess on the future inflation rate has become akin to guessing the fate of the government before the vote of confidence. The chances weigh 50:50.
This was unceasing good news for the UPA government after winning the trust vote on July 22 and stock market giving a thumbs up to its victory yesterday, it was inflation data which showed signs of downturn after almost a secular rise week after week and month and month. The annual inflation rate stood at 4.76 per cent as on July 14, 2007.
The index for 'Primary Articles' group rose by 0.6 per cent; for 'Fuel, Power, Light and Lubricants' group remained unchanged as compared to the previous week, and for the major group 'Manufactured Products', it rose by 0.05 per cent.
The index for 'Food Products' group rose by 0.1 per cent, for the 'Textile' Group declined by 0.1 per cent, 'Basic Alloys and Metal' group rose by a negligible amount and 'Machinery and MachineTools' group was up by 0.2 per cent.
The Finance Ministry, in a statement, said inflation has continued to remain "stable."
It said out of total 98 articles in the 'Primary Article' group, 10 articles have shown a decline in prices as compared to July 5, 2008.
These include fish marine, chillies dry, tea, potatoes, oranges, garlic, cardomom, black pepper, maize and cummin. Another 54 articles have shown no increase in prices.
Just a few weeks ago, when inflation crossed double-digit, the group 'Fuel and Power,' contributed 94 per cent to the inflation rate.
However, in this weeks' data, all the 19 articles in this commodity group have not shown any increase.
In the case of 'Manufactured Products', out of a total of 318 commodities, 299 have shown no increase in the prices over last week.
For nine commodities, there is a decline in prices. These include rice bran oil, cotton seed oil, ground nut oil, imported edible oil, gur, texturised yarn, hessian bags and cloth and liquid vitamins.
Only ten products, particularly lead and zinc ingots, ground nut cake, tyre cord fabrics, and rubber chemicals witnessed an increase in prices.
The annual inflation rate for the group of 30 essential commodities continues to be range-bound.
Prices of essential commodities which include food grains, pulses, edible oils, vegetables, dairy products and some other commodities including kerosene, soap and safety matches have more or less stabilised.
The BSE index moved up yesterday by a whopping 838 points on the government's winning the vote of confidence and amid hope that the Indo-US nuclear deal would come through as also the easing of global crude prices.
However, the market went down by 165 points today; paradoxically on fears that inflation rate will go up compelling the Cental Bank to further suck out liquidity in its review of the Credit Policy next week.
It even discounted renewed activity on the part of Foreign Institutional Investors (FII). Analysts say there was also profit booking in some counters after the hefty rise yesterday.
Reforms seems to be back on the agenda of the government with Left parties off its back.
All said and done, the fact of the matter is that inflation continues to be in the realm of double digit.
But how long it will remain so has become a hazardous activity.
The silver lining has been the reduction in prices of crude oil from 140 dollars plus a barrel to about 125 dollars a barrel.
Galloping world fuel and food prices have resulted in India's high rate of inflation. It is, however, some consolation that most countries in the region have also been seriously adversely effected.
The double-digit inflation has been due to the low base as inflation was less than four per cent until December, 2007 and the laggard effect of both monetary and fiscal policy measures taken recently to moderate inflation.
Reports now say that an emboldened government is thinking of reversing some of these measures, such as relaxing futures trading in certain commodities.
Expected good rabi crop might moderate the inflation rate to some extent from August onwards.
What the Central Bank will do now is as good as anybody's guess.
If it presses the brakes too harsh on monetary policy, then growth will certainly be a casualty and it may be harsh lending for the economy. Since the beginning of 2008, it has already been showing a downward movement.
It is also possible that it could achieve the same results by intervening in the forex market by strengthening the rupee.
This would result in lower import costs and also reduce money supply growth. This will moderate inflation both on the supply and demand side.All in all, a guess on the future inflation rate has become akin to guessing the fate of the government before the vote of confidence. The chances weigh 50:50.
Congress clashes with BJP, Left in acrimonious debate
New Delhi, Jul 21 (UNI) The debate in the Lok Sabha on the Confidence Motion moved by Prime Minister Manmohan Singh today proceeded on expected lines with the ruling alliance and the Opposition often trading charges against each other, even as Leader of the House Pranab Mukherjee claimed that the Government has the support of 276 members.
The debate was not without acrimony leading to two adjournments and some scuffle, which often compelled Speaker Somnath Chatterjee to admonish the members and remind them that they must maintain the decorum of the House as the nation was watching them with keen interest.
Immediately after the Prime Minister moved the one-line motion that the House expresses confidence in the Council of Ministers, Leader of the Opposition L K Advani launched a scathing attack on the UPA government for hurrying through the Indo-US nuclear deal without evolving a consensus on the issue and its failure on variousfronts, including the spiralling prices and unabated terrorism invarious parts of the country.
Mr Advani said the BJP was not opposed to either nuclear energy or a closer and strategic relations with the United States. But he alleged that the deal would make India an "unequal" partner and if the BJP was voted to power, it would re-negotiate the nuclear deal between two equal partners.
The BJP stalwart questioned the secular credentials of the ruling alliance, saying that it should not put the Hindus at a disadvantage. The Prime Minister, in his five-minute introductory remarks, said the trust vote was not only on the deal, but also on thepolicies and performance of the UPA government. He maintained the deal was squarely in the interests of the nation.
Mr Pranab Mukherjee and Minister of State for External Affairs Anand Sharma said it was disparaging that the Opposition leaders and the Left parties had questioned the integrity of the Prime Minister, who was above board.
Throughout the debate, UPA Chairperson Sonia Gandhi, Dr Singh and his cabinet colleagues as well as senior members of the BJP remained glued to their seats.
The Left leaders, including Mohammad Salim (CPM)and Mr Gurudas Dasgupta, accused the government of bulldozing the deal and betraying the supporting parties on the issue. Mr Dasgupta said that most of the suggestions of the Left had often been ignored andcited the petrol price hike as an instance.
Mr Dasgupta said it was with a heavy heart that the Left had to part ways with the UPA even though it was responsible for putting it in the ruling saddle.
The Speaker conducted the proceedings in his usual manner and kept the guessing game on as to whether he would obey the diktats from the party by resigning or defy it.
While the new found friend of the Congress, the Samajwadi Party, came to its defence, the BSP which is projecting its leader Mayawati as the Prime Ministerial candidate, spared no effort to attack the government.
Mr Ramgopal Yadav (SP) asked the entire opposition to either support the confidence motion or abstain from voting.
Mr Brajesh Pathak(BSP) charged that the government was being run by 'wheeler-dealers' and said the deal was an onslaught on the sovereignty and integrity of the country.
Mr Devendra Yadav(RJD) charged the BJP with "doublespeak", saying the BJP-ruled states were indulging in divisive politics.
The debate was also not without humour and wit. In a remark, Mr Anand Sharma told the BJP not to count its chickens before they were hatched, or rejoice at the Left leaving the UPA for they were in support of Mayawati as the Prime Minister.
Mr Advani, in his inimitable style, often had a dig at the government in his long speech. He remarked that the only problem that had engrossed the UPA for more than past one year was the nuclear deal as if it the was only thing that mattered to the commonman.
He said that while the IAEA draft was not a secret for the foreigners, it was so for Parliament.
The debate was not without acrimony leading to two adjournments and some scuffle, which often compelled Speaker Somnath Chatterjee to admonish the members and remind them that they must maintain the decorum of the House as the nation was watching them with keen interest.
Immediately after the Prime Minister moved the one-line motion that the House expresses confidence in the Council of Ministers, Leader of the Opposition L K Advani launched a scathing attack on the UPA government for hurrying through the Indo-US nuclear deal without evolving a consensus on the issue and its failure on variousfronts, including the spiralling prices and unabated terrorism invarious parts of the country.
Mr Advani said the BJP was not opposed to either nuclear energy or a closer and strategic relations with the United States. But he alleged that the deal would make India an "unequal" partner and if the BJP was voted to power, it would re-negotiate the nuclear deal between two equal partners.
The BJP stalwart questioned the secular credentials of the ruling alliance, saying that it should not put the Hindus at a disadvantage. The Prime Minister, in his five-minute introductory remarks, said the trust vote was not only on the deal, but also on thepolicies and performance of the UPA government. He maintained the deal was squarely in the interests of the nation.
Mr Pranab Mukherjee and Minister of State for External Affairs Anand Sharma said it was disparaging that the Opposition leaders and the Left parties had questioned the integrity of the Prime Minister, who was above board.
Throughout the debate, UPA Chairperson Sonia Gandhi, Dr Singh and his cabinet colleagues as well as senior members of the BJP remained glued to their seats.
The Left leaders, including Mohammad Salim (CPM)and Mr Gurudas Dasgupta, accused the government of bulldozing the deal and betraying the supporting parties on the issue. Mr Dasgupta said that most of the suggestions of the Left had often been ignored andcited the petrol price hike as an instance.
Mr Dasgupta said it was with a heavy heart that the Left had to part ways with the UPA even though it was responsible for putting it in the ruling saddle.
The Speaker conducted the proceedings in his usual manner and kept the guessing game on as to whether he would obey the diktats from the party by resigning or defy it.
While the new found friend of the Congress, the Samajwadi Party, came to its defence, the BSP which is projecting its leader Mayawati as the Prime Ministerial candidate, spared no effort to attack the government.
Mr Ramgopal Yadav (SP) asked the entire opposition to either support the confidence motion or abstain from voting.
Mr Brajesh Pathak(BSP) charged that the government was being run by 'wheeler-dealers' and said the deal was an onslaught on the sovereignty and integrity of the country.
Mr Devendra Yadav(RJD) charged the BJP with "doublespeak", saying the BJP-ruled states were indulging in divisive politics.
The debate was also not without humour and wit. In a remark, Mr Anand Sharma told the BJP not to count its chickens before they were hatched, or rejoice at the Left leaving the UPA for they were in support of Mayawati as the Prime Minister.
Mr Advani, in his inimitable style, often had a dig at the government in his long speech. He remarked that the only problem that had engrossed the UPA for more than past one year was the nuclear deal as if it the was only thing that mattered to the commonman.
He said that while the IAEA draft was not a secret for the foreigners, it was so for Parliament.
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