<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Chidambaram misled the nation </b>
Pioneer.com
<b>Budget 2006 clearly fails to harness the power of the market to create jobs, says Bharat Jhunjhunwala </b>
The Congress won the last election on the platform of the common man. There was no place for the common man in the economic policies implemented by BJP Finance Minister Yashwant Sinha. No wonder Finance Minister P Chidambaram wants to deliver on the promise. He said in his Budget speech that textiles, food processing, petroleum, chemicals and petrochemicals, leather and automobiles in the manufacturing sector, and tourism and software in the services sector have the potential to create a large number of jobs, if appropriate incentives are given.
Mr Chidambaram, however, does not specify whether the incentives are to be provided to investment in these sectors or to job creation. And here lies the problem. The experience of the past 15 years indicates that more investment and production in these sectors is not leading to jobs.
The Economic Survey gives the rates of growth and the number of jobs created in various sectors. Between 2000 and 2003, the average rate of growth in the manufacturing sector was 6.5 per cent, but the rate of employment generation in this sector was (-)3.0 per cent. In other words, the number of persons employed in this sector declined by 3.0 per cent, despite high rate of growth.
Mr Chidambaram is saying that the manufacturing sector has the potential to create a large number of jobs. But the Economic Survey tells us that jobs are being eaten away in this sector. Similarly, the rate of growth in the services at 8.5 per cent was highest among the sectors. But the number of jobs declined by 0.7 per cent every year. Jobs are being eaten away in both the sectors, in which the Finance Minister sees the potential to create a large number of jobs.
The implication is that economic growth in these sectors is no guarantee for the creation of employment. However, this does not cancel Mr Chidambaram's logic because he also mentioned the need to provide appropriate incentives. So, let us examine what kinds of incentives have been provided to these sectors.
Mr Chidambaram has increased the allocation for Technology Upgradation Fund for the textile sector from Rs 435 crore to Rs 535 crore. Seven textile parks will be developed at a cost of Rs 189 crore. But there is a huge distance between technological upgradation and job creation. Technological upgradation can be undertaken by using computers for textile designing, or for automatic printing of textiles. That would lead to fewer jobs, not more.
The Cluster Development approach is to be continued for the handloom sector. Additional 100 clusters are proposed to be developed with an outlay of Rs 50 crore. A scheme to establish a "Handloom Mark" along the lines of "Woolmark" to certify the quality of handloom products is to be launched. But Cluster Development and Woolmark have not led to the generation of jobs till now. How can we assume that the same strategy will lead to the generation of jobs in future?
NABARD will create a separate window with a corpus of Rs 1,000 crore for refinancing the agro-processing sector. But the loans given to the agro-processing sector has increased much during the previous years and not led to the generation of employment, which has actually fallen by 1.5 per cent in the agriculture sector during 2000-03.
A task force is to be constituted in order to promote investment in the petroleum and chemicals sector. But this is about investment, not jobs. Rapid investment is already taking place in this sector, but jobs are declining.
India Infrastructure Finance Company Limited will continue the existing schemes for providing equity participation to new ventures for the production of hardware, such as wafers, semi-conductors, flat display and storage devices. Once again this is providing incentive to investment, not employment.
The Ministry of Small Scale Industries has identified 180 industries for dereservation. Simultaneously, the corpus of Credit Guarantee Trust for Small Industries will be raised by Rs 1,368 crore. The cost of seeking guarantee from this institution will be reduced. But more loans to these industries need not translate into more jobs. For example, investment in machinery such as excavator or harvester actually eats away a large number of jobs. Agricultural labour across the country earned much during the harvesting season earlier. Nowadays they are unemployed in the harvesting season because the job is being done by mechanical harvesters.
The allocation for the tourism sector has been increased from Rs 786 crore to Rs 830 crore for the development of 15 tourist destinations and setting up of four institutes of hotel management. But there is no explanation how this will lead to more jobs. For example, an ATM set up for the tourists can lead to unemployment among bank workers and the establishment of an automated kitchen can take away the job of the cook.
The Finance Minister has said that these sectors have a potential to create a large number of jobs, if appropriate incentives are given. That may indeed be true. But the schemes announced for these sectors only seek to promote investment and production. There is really no incentive to employment.
Certainly, incentives should be provided to investment in these sectors. But, simultaneously, explicit incentives should also be provided to the creation of jobs. For example, industries creating a large number of jobs can be subjected to lower rates of excise duty and VAT. A condition can be imposed on government contracts that specified works will be undertaken by manual labour, rather than machines. Industries such as agarbatti, papad and handloom can be given exemption from labour laws. Higher tax can be imposed on machinery that eats away jobs and adds little to production like harvesters, excavators and various automatic machines. Industries employing more capital and less labour can be subject to higher level of Income Tax.
Other policies can be developed to provide incentive to business to employ larger numbers. Industrialists employing large number of workers can be honoured along the lines of Padma awards. An "employment audit" can be made mandatory for all big investment proposals, including those cleared by the FIPB. No such policy is mentioned by Mr Chidambaram.
<b>The high rate of growth in the last few years has actually led to the decline in number of persons employed in the organised sector</b>. The Finance Minister should have taken concrete steps to harness the power of the market to create jobs. It will not be sufficient to assume that growth of these sectors will spontaneously lead to the generation of large number of jobs.
Mr Chidambaram is actually misleading the people of the country. It is true that these sectors have the potential to create jobs, if appropriate incentives are provided. Alas! Those very incentives are missing from the Finance Minister's dispensation.
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<!--QuoteBegin-->QUOTE<!--QuoteEBegin--> <b>Since both the revenue and the technical capabilities of Indian municipalities are limited, town planners impose a very stringent limit on the floor-space index, which is computed by dividing a building's total floor area by the size of the land occupied.
This is essentially a limit on a building's height. In most Asian cities, floor-space index readings range from 5 to 15. In India, it is 1.6.
The floor-space index "should be raised significantly in central business districts to create affordable office space and make these areas accessible to small and mid-sized businesses," N.R. Narayana Murthy, the chairman of Bangalore-based Infosys Technologies, said in a speech last month. </b> <!--QuoteEnd--><!--QuoteEEnd-->
Just got back to the USA from a week long trade mission to India. Met and visited with several key interloculaters and ministers in the IT, Agriculture, Commerce ministries. Also, ficci and other organizations.
Coming soon after President Bush's visit, we were received warmly and most of our meetings reinforced the feel-good developing U.S. - India relationship with a few mou's and deals signed between companies in both countries. "The last mile" schism remains. Indians saying they have bent backwards to reduce tarrifs etc (from 100% to 46% now) and we countering that that is not yet sufficient. Perhaps, Indinas need to acclerate the reduction in bureaucracy, tarrifs at a much faster pace. As ususal, I found Indian politicians and bureaucrats using the pretext of democracy as an excuse for non-performance.
The crowning glory of my trip was the personal meeting with His Excellency President Abdul Kalam. The half hour meeting was intense, and he asked extremely incisicive questions on a project I am trying to implement in India. He was clearly prepared for the interview and discussed specific questions and issues (unlike other ministers) and appropriateness for Indian conditions. Dr. Kalam outlined his vision for India (on areas under discussion) and encouraged me to come up with actionable plans within the next 8 weeks.
03-20-2006, 06:14 AM (This post was last modified: 03-20-2006, 06:15 AM by agnivayu.)
I think the best way is create a bunch of "gated communities" in India, by having lot's of privately managed cities that can grow as rapidly and run as well as Dubai or Singapore.
Reggie,
Thanks for feedback, atleast one sane person on top who is still interested in India's future. It means Kalam do lot of homework before any meeting.
<b>India to Make Currency Fully Convertible</b> <!--QuoteBegin-->QUOTE<!--QuoteEBegin-->S.S. Tarapore, a former deputy governor of the bank, will head the committee comprised of economists and officials, the central bank said. The panel is likely to begin the review process May 1 and submit its findings by July 31.
India's rupee is only partially convertible, meaning that most capital account transactions â investment money flowing in and out of the country â are subject to approval by the central bank. Other transactions related to merchandise trade are handled at market rates and without official approval.
...............<!--QuoteEnd--><!--QuoteEEnd-->
http://sify.com/news/fullstory.php?id=14174044
Columns Free Press Journal
<b>West gives flawed advice to India, China</b>
By Dr Bharat Jhunjhunwala |
High growth rates of India and China have become a problem for the Western countries. Till recently the developing countries were voluntarily selling their resources at low prices to them. For example, India was packing her water in Basmati rice, tea and rubber and exporting to Western countries at declining prices. Thus 20 percent people in the Western countries were consuming 80 percent of the world's resources. This distribution was stable because India was herself willing to give away her resources at a cheap price in her pursuit of export-led growth.
The high growth of India and China has put a spanner in this happy situation for the Western countries. These two have started consuming resources in a big way. Christopher Flavin, president of Washington-based WorldWatch Institute tells China consumed 26 percent of global production of steel, 32 percent rice, 37 percent cotton and 47 percent cement. China is importing food grains in a big way. If domestic food grain production of India or China declines for some reason, it could drive global prices up and "the entire global community could be affected," says Flavin.
The problem is compounded by increasing consumption by developed countries, especially the United States. That country is home to only 4.5 percent of the global population but contributes 25 percent of the global pollution, which continues to increase. Resources of the world face double pressure today - from increasing consumption by the Western countries as well as India and China.
Available resources cannot possibly meet the demands of 'developed' India and China. There are two paths open to India and China to meet this situation. Soft approach is to let the Western countries consume bulk of the global resources and they can redefine 'growth' in a way that consumes fewer resources-like Assamese tribal can be asked to let the people of Kolkata consume bulk of wood produced in his state and he should focus more on the development of tribal dances. <!--emo&--><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo--> Or the bonded labour can be asked to let the Zamindar consume bulk of fruit produced in the village and he should focus more on the use of smokeless stove to improve his standard of living. The hard approach is for India and China to increase their consumption, let the prices of resources increase like that of oil presently and will force a crisis on the global economy and environment.
Global warming will lead to more typhoons and tsunamis. This will be harmful for all. The consumption by the West will reduce due to high prices and the global economy may go into a recession. The global community will then be forced to develop a new definition of development and reduce consumption of resources. This new definition of growth will be applicable to all-including the Western countries. That would re-establish balance in the global economy.
Consumption by the Western countries will be reduced while that of India and China will increase. Global equality will be established with stabilisation of environment. It is expected that Western scholars would advise India and China to adopt the soft approach because that would allow them to dominate the global economy and pollute the environment as presently. Thus World Bank-funded NGOs like WorldWatch suggest that India and China should not follow the growth model of the West and instead 'leapfrog' to secure better life for their people without requiring huge consumption of resources.
Flavin reports that selected lanes have been dedicated for buses in Kunming, capital of Yunnan. The control of stoplights has been given to bus drivers leading to increase of speed during peak hours from 9.6 kilometers per hour to 15.2 kilometers. There has been a fivefold increase in the bus passengers. Similarly China has emerged as the global leader in energy saving bulbs and solar water heaters. Seventy thousand buildings in Chennai have been fitted with water harvesting structures.
Flavin suggests that India and China can secure better life for their people by such leapfrogging and prevent harm to the global environment. However, wise men like Flavin do not tell how the high consumption and pollution by the Western countries be controlled in this soft approach. They do shed crocodile tears and call for "wholesale change in policies" in the United States. But they see no role of India and China in forcing the United States to make such a change. Rather they tell India and China not to create pressure on the global resources.
Basing himself on a review of development plans of these countries, Flavin says these countries show "little recognition of the ecological realities now facing them-or the world." The truth is that Flavin does not want India and China to encroach on the consumption of resources by the Western countries thus he teaches the lesson of 'leapfrogging' to them. That is like government officials telling the poor not to demand greater share of canal waters and instead adopt improved dry land agriculture. Institutions like World Watch are justified in professing such advice to India and China because their objective is to make sustainable the western control of global economy. It is tragic that Indian environmentalists parrot their talk.
In a Foreword to State of the World, 2006 report published by World Watch, Sunita Narain, director of Delhi-based Centre of Science and Environment endorses Flavin's call for India to leapfrog into a new model of development. She gives the example of introduction of CNG buses in Delhi as having reduced pollution greatly by leapfrogging from fitting after-treatment devices to the use of clean fuel. Thus, she says, the south "has no choice but the reinvent the development trajectory."
The implication is that the West may continue merrily with its high consumption of global resources while India and China leapfrog and reinvent. Narain assumes India and China have no role in containing the consumption by the Western countries and forcing them to redefine development. In other words, the people of Delhi must be satisfied with CNG buses while those of New York travel in air-conditioned ones.
I'm not sure if this is the specifically appropriate forum to post these questions if so do direct me for any erroneous arrival in digital destination. I'm also a little baffled as most of the topics in this forum seem to have a post that ends a little while ago. Has everyone migrated to somewhere new and if so any feedback is greatly appreciated.
These are my questions and while I appreciate that often a subscription service can answer these, the funds simply aren't there so any help much appreciated:
I'm looking for market data for the automotive industry:
<i>Distribution of existing passenger cars in India:
- Geographically: by city, by state.
- By age
- By cc
- % insured (comprehnsive)
- by brand, by model
Distribution of new car sales in India:
- Geographically: by city, by state.
- by brand, by model
- By cc
Comprehensive motor insurance penetration:
- Geographically: by city, by state.
- By age
- By cc
- % insured (comprehnsive)
- by brand, by model
Consumer profiles
It would be of interest to have some statistics on consumers.
Of interest:
- income profile of Comprehensive Insurance policyholders
- income profile of new vehicle manufacturer (ideally by brand)</i>
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->India Seeks EU Investment in Farms, Infrastructure
Peter Dhondt
BRUSSELS, Jun 13 (IPS) - India's economy can grow by ten percent a year, if it is able to attract massive investments in agriculture and infrastructure. And Europe can help, says India's finance minister Palaniappan Chidambaram.
The Harvard-educated minister, a firm believer in free trade, explained Monday at a seminar of the European Policy Centre (EPC) and the Sasakawa Peace Foundation, how Europe could participate in India's growth.
After Prime Minister Manmohan Singh, a former World Bank economist, Chidambaram is the man associated most with putting India firmly on the path of economic liberalisation, that was begun 15 years ago.
India is still not among the heavyweights in the European trade statistics. In 2004, only 1.6 percent of European imports came from India. But that is bound to change. By 2026, India's economy is expected to be one of the three largest in the world, and by 2050, it could overtake the US economy.
Chidambaram is thinking big. "We will preserve our leadership in the international services sector, but we also intend to make India a hub for manufacturingà we are already among the world's leaders in textile, leather, steel and pharmaceutical products, and many other sectors can follow."
But that is one of the medium-term goals. First, the country of 1.2 billion people will have to improve its underdeveloped or outdated infrastructure -- ports, highways, railroads, energy and communication networks. "We are currently building 4.2 km of main roads a day. One km costs six million (US) dollars. And India is establishing five million new mobile telephone connections a month -- a massive investment as well."
Much more needs to be done. "Every year, India needs 10,000 Mw of new power generating capacity. A thousand Mw costs one billion dollars. These are mind-boggling investment amounts, but we have to mobilise them."
India is ploughing large amounts of public funds into agriculture, the mainstay of the majority of Indians, to make it less rain dependent. "Our goal is to bring ten million hectares of land under irrigation the next five years", said Chidambaram.
The bulk of the money that India is investing now comes from Indian sources, although foreign investors put in a record 10.5 billion dollars last year. "We realise the importance of foreign investment,'' said the finance minister. According to him, companies or investors from abroad introduce new ideas, technology and contacts. But, Europe still has to wake up to the Indian call. In 2003 and 2004, only 0.2 - 0.3 percent of European foreign direct investment went to India.
India is not growing for the sake of growing, Chidambaram said. "Growth is the best antidote to poverty, it is not sufficient, but imperative,'' the finance minister argued. Apart from that, India has to create jobs for the eight million youth entering the labour market every year. "India is the only big country where the size of the working population is still growing. That is a demographic advantage, but we have to frame economic policy accordingly."
Only a fast growing economy can give India the revenue that is necessary "for the desperately needed investments in infrastructure, education, health care and rural growth", Chidambaram continued. And India needed to â'catch up with developed countries and prevent being outpaced by countries like China".
Several external factors were challenging growth in India, starting with high oil prices. "In my view, there is no justification for these outrageous prices. It's worse than in the colonial age. The colonial masters robbed our cotton and our iron ore, but now, even our vital growth capacities are destroyed. The world has to unite to find a solution to this crisis."
European and other countries could also play a role in keeping two other threats under control -- global imbalances resulting from the fact that "some countries run huge deficits and others build up huge reserves", and rising interest rates that might reverse capital flows in the world.
Chidambaram said that he is waiting for a "reasonable offer" on agriculture from the developing countries that might restart the international negotiations on trade liberalisation.
Together with other developing countries, India would like Europe and the U.S. to remove agricultural subsidies and market protection before agreeing on measures to further reduce industrial tariffs and start negotiations about trade in services and investment rules. "Everything depends on agriculture,'' Chidambaram concluded. (END/2006) <!--QuoteEnd--><!--QuoteEEnd-->
India is ploughing large amounts of public funds into agriculture
As I understand it there is a large fisal debt to service. Am I mistaken?
Thanks
Charles
<!--QuoteBegin-k.ram+Jun 14 2006, 08:24 AM-->QUOTE(k.ram @ Jun 14 2006, 08:24 AM)<!--QuoteEBegin--><!--QuoteBegin--><div class='quotetop'>QUOTE<!--QuoteEBegin-->India Seeks EU Investment in Farms, Infrastructure
Peter Dhondt
BRUSSELS, Jun 13 (IPS) - India's economy can grow by ten percent a year, if it is able to attract massive investments in agriculture and infrastructure. And Europe can help, says India's finance minister Palaniappan Chidambaram.
The Harvard-educated minister, a firm believer in free trade, explained Monday at a seminar of the European Policy Centre (EPC) and the Sasakawa Peace Foundation, how Europe could participate in India's growth.
After Prime Minister Manmohan Singh, a former World Bank economist, Chidambaram is the man associated most with putting India firmly on the path of economic liberalisation, that was begun 15 years ago.
India is still not among the heavyweights in the European trade statistics. In 2004, only 1.6 percent of European imports came from India. But that is bound to change. By 2026, India's economy is expected to be one of the three largest in the world, and by 2050, it could overtake the US economy.
Chidambaram is thinking big. "We will preserve our leadership in the international services sector, but we also intend to make India a hub for manufacturingà we are already among the world's leaders in textile, leather, steel and pharmaceutical products, and many other sectors can follow."
But that is one of the medium-term goals. First, the country of 1.2 billion people will have to improve its underdeveloped or outdated infrastructure -- ports, highways, railroads, energy and communication networks. "We are currently building 4.2 km of main roads a day. One km costs six million (US) dollars. And India is establishing five million new mobile telephone connections a month -- a massive investment as well."
Much more needs to be done. "Every year, India needs 10,000 Mw of new power generating capacity. A thousand Mw costs one billion dollars. These are mind-boggling investment amounts, but we have to mobilise them."
India is ploughing large amounts of public funds into agriculture, the mainstay of the majority of Indians, to make it less rain dependent. "Our goal is to bring ten million hectares of land under irrigation the next five years", said Chidambaram.
The bulk of the money that India is investing now comes from Indian sources, although foreign investors put in a record 10.5 billion dollars last year. "We realise the importance of foreign investment,'' said the finance minister. According to him, companies or investors from abroad introduce new ideas, technology and contacts. But, Europe still has to wake up to the Indian call. In 2003 and 2004, only 0.2 - 0.3 percent of European foreign direct investment went to India.
India is not growing for the sake of growing, Chidambaram said. "Growth is the best antidote to poverty, it is not sufficient, but imperative,'' the finance minister argued. Apart from that, India has to create jobs for the eight million youth entering the labour market every year. "India is the only big country where the size of the working population is still growing. That is a demographic advantage, but we have to frame economic policy accordingly."
Only a fast growing economy can give India the revenue that is necessary "for the desperately needed investments in infrastructure, education, health care and rural growth", Chidambaram continued. And India needed to â'catch up with developed countries and prevent being outpaced by countries like China".
Several external factors were challenging growth in India, starting with high oil prices. "In my view, there is no justification for these outrageous prices. It's worse than in the colonial age. The colonial masters robbed our cotton and our iron ore, but now, even our vital growth capacities are destroyed. The world has to unite to find a solution to this crisis."
European and other countries could also play a role in keeping two other threats under control -- global imbalances resulting from the fact that "some countries run huge deficits and others build up huge reserves", and rising interest rates that might reverse capital flows in the world.
Chidambaram said that he is waiting for a "reasonable offer" on agriculture from the developing countries that might restart the international negotiations on trade liberalisation.
Together with other developing countries, India would like Europe and the U.S. to remove agricultural subsidies and market protection before agreeing on measures to further reduce industrial tariffs and start negotiations about trade in services and investment rules. "Everything depends on agriculture,'' Chidambaram concluded. (END/2006) <!--QuoteEnd--><!--QuoteEEnd-->
[right][snapback]52477[/snapback][/right]
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LONDON (MarketWatch) -- Mittal Steel and Arcelor SA reportedly have agreed to merger terms following Mittal's moved to sweeten its bid to 40.37 euros ($50.51) a share, raising the cash portion of the officer to 26.81 billion euros ($33.54 billion), according to published reports Sunday.
A story in the online edition of the Wall Street Journal reports principals from the two companies have agreed to the new terms but Arcelor's board of directors has yet to approve it.
If approved, it would mark the end of five months of dogged pursuit by Mittal for Arcelor and Mittal's success in upstaging Russian rival Severstal.
Under Mittal's improved bid, the majority of Arcelor's board would be made up of independent directors. Arcelor executives would have a greater presence on the management board for a set period of time, according to the Journal report, citing people familiar with the deal.
Spokespersons for Arcelor and Mittal could not be reached for comment on the reports.
In its efforts to fend off Mittal, Arcelor in May agreed a $16 billion tie-up with Russian producer Severstal.
Shortly after the Mittal/Arcelor talks started, Severstal, which is owned by Russian billionaire Alexei Mordashov, decided to improve the terms of its offer to address some of the shareholders' concerns that could have blocked a deal.
But that wasn't enough as investors pushed for Arcelor to merge with its bigger rival with more international operations.
<b>History</b>
Rotterdam-based Mittal first approached Arcelor in January with an unsolicited $22.7 billion bid.
Arcelor Chief Executive Guy Dolle tried to fend off the bid with a $6 billion buyback and the ringfencing of recently acquired Canadian producer Dofasco into an independent Dutch foundation with control over the unit.
In mid-May, Mittal raised its offer by 34% to $32.9 billion but was again rebuffed.
A few days later, in the ultimate snub, Arcelor agreed a hook-up with Russia's second-largest producer Severstal. <b>See Battle Timeline.</b>
In the following weeks, Mittal's Chief Executive Lakshmi Mittal waged a war of words on the deal, taking out numerous ads in financial newspapers urging Arcelor shareholders to reject the Severstal deal and arguing that it would give control of the combined company to Mordashov.
<i>Aude Lagorce is a reporter for MarketWatch in London.</i>
<b>June 25 (Bloomberg) â Arcelor SA Chairman Joseph Kinsch said his board is unanimously backing a new takeover offer from Mittal Steel Co., ending five months of hostility to the steel industry's biggest-ever transaction.
Mittal raised its offer by 10 percent and the new company will be called Arcelor Mittal, Kinsch told reporters after a board meeting at the company's headquarters in Luxembourg today. Mittal's previous offer was valued at 23.5 billion euros ($29.4 billion)</b>.
Arcelor had since Jan. 27 sought to repel a hostile bid from Mittal that would see it become part of a steelmaker three times larger than the nearest rival. Arcelor last month told investors it would instead buy most of Russia's OAO Severstal. Some investors have opposed that deal and Mittal raised its offer by more than a third.
Citigroup Inc., HSBC Holdings Plc, Goldman Sachs Group Inc., Credit Suisse Group and Societe Generale SA are advising Mittal. Arcelor's advisers include BNP Paribas SA, Calyon, Deutsche Bank AG, JPMorgan Chase & Co., Merrill Lynch & Co., Morgan Stanley and UBS AG. Severstal is being advised by ABN Amro Holding NV and Lehman Brothers Inc.
<b>India's economic report card </b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Given the huge positive press that India has received in recent times, it is sobering to discover that India's per capita income is just a shade higher than that of sub-Saharan Africa, and about one-sixth that of Latin America.
Equally surprising is that 35% of India's population lives on less than $1 a day, which is comparable to Bangladesh's 36% and much worse than Pakistan's 17% and Sri Lanka's 6%.
What then is the basis of optimism for India?
It has everything to do with change.
To check this out statistically I pulled out WDI 1998 from my shelf. This gives data for mainly 1996 and so is unaffected by the East Asian crisis which started in 1997.
In 1996, India had a per capita income of $380, Pakistan $480, Bangladesh $260 and Sri Lanka $740.
<!--QuoteEnd--><!--QuoteEEnd--> <b>India's next test: spreading prosperity </b>By Scott Baldauf, Staff writer of The Christian Science Monitor
Why today BBC, CBS and CM are spitting India's report card with 90% reporting?
<b>Arcelor shareholders on Friday voted against the companyâs merger deal with Russiaâs Severstal, clearing the way for a merger with Mittal Steel to create a new steel titan.
About 58 per cent of Arcelorâs share capital - or 96 per cent of the shares present at the companyâs extraordinary meeting - voted against the binding agreement Arcelor had made with Severstal as part of its defense against early approaches from Mittal.</b>
Luxembourg-based Arcelor struck a deal with Severstal last month in an effort to repel Mittal Steelâs hostile takeover bid. But Arcelor changed its mind and agreed to a merger on Monday after Mittal raised its offer to â¬26.9bn ($33.9bn), 44 per cent above its opening offer after a five months epic battle that turned into one of the most sustained corporate dramas of the past decade.
The Severstal deal would have gone ahead unless more than 50 per cent of Arcelor shareholders voted against the plan at the meeting.
Severstal shares jumped 9 per cent in Moscow. Arcelor shares were 0.3 per cent higher and Mittal Steel shares 0.3 per cent lower by late afternoon.
<b>Romain Zaleski, the Franco-Polish businessman who has built a 7.8 per cent stake in Arcelor, said earlier this week he would vote against the Severstal deal and back the merger with Mittal. Luxembourg earlier this week also backed the Mittal/Arcelor alliance, after initial hostility. The country is thought to be the third-largest shareholder, with a 5.6 per cent stake.
Severstal could still make a counterbid for Arcelor. On Wednesday, Alexei Mordashov, Severstalâs chief executive told a French parliamentary commission he was planning to make an âimprovedâ proposal. A person close to the deal said then that Severstal was reviewing âall the options.â</b>
Mittalâs offer for Arcelor, which would create a new Luxembourg-based entity called Arcelor Mittal, by far the worldâs largest steel company, has been extended from an original deadline of July 5 to July 12, to allow regulators to look at Mittalâs improved offer.
Meanwhile, it is likely that Arcelor and Mittal will wait a while before deciding the fate of Dofasco, the Canadian steel company bought by Arcelor for $4bn in January. Mittal had promised to sell Dofasco to Thyssen-Krupp of Germany if it was successful in taking over Arcelor, but Arcelor maintains that it wants to keep Dofasco
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>India 12th wealthiest nation in 2005: World Bank</b> link
Press Trust of India
Washington, July 8, 2006
India has emerged as the 12th wealthiest nation in the world with its GDP touching $785.47 billion or Rs 35,34,615 crore in 2005, calculated by the World Bank.
US was the wealthiest nation with GDP of $12.46 trillion, according to a list of 15 wealthiest countries prepared by the World Bank in terms of their gross domestic product.
The GDP figures have been adjusted to reflect purchasing power.
While India was way down compared to <b>China, positioned fourth with $2.23 trillion </b>of GDP, it was wealthier than Mexico, Russia and Australia.
The first nine countries had GDP of more than $1 trillion.
The United States was followed by <b>Japan with $4.51 trillion and Germany $2.78 trillion.</b>
<b>Britain, France and Italy occupied fifth, sixth and seventh rank with GDP of $2.19 trillion, $2.11 trillion and $1.72 trillion, respectively</b>.
Next came<b> Spain, Canada, Brazil and South Korea with their GDP estimated at $1.124 trillion, $1.115 trillion, $794.10 billion and $787.62 billion</b>, respectively.
There was no African country among the 15 richest nations, while <b>India was the only south Asian country in the list.</b><!--QuoteEnd--><!--QuoteEEnd-->
I think these figure don't tell the whole story e.g if u divide India's capital by it's population, it will come tumbling down. <!--emo&<_<--><img src='style_emoticons/<#EMO_DIR#>/dry.gif' border='0' style='vertical-align:middle' alt='dry.gif' /><!--endemo--> [FONT=Impact][COLOR=blue]
--><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo--> Or the bonded labour can be asked to let the Zamindar consume bulk of fruit produced in the village and he should focus more on the use of smokeless stove to improve his standard of living. The hard approach is for India and China to increase their consumption, let the prices of resources increase like that of oil presently and will force a crisis on the global economy and environment.