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Indian Economy: Growth -3
<!--emo&Sad--><img src='style_emoticons/<#EMO_DIR#>/sad.gif' border='0' style='vertical-align:middle' alt='sad.gif' /><!--endemo--> In India’s total score of 113.4 points in this year’s index, corporate and personal income tax rates contribute 42 points and 34 points respectively, 12.4 points are for VAT/sales tax, 12 points come for each of employer and employee social security and one point is contributed by wealth tax.

The top-end corporate tax rate of 42 per cent in India is higher than any other jurisdiction in the world, except for two in the US, where New York City has 46.2 per cent and Illinois has 42.3 per cent corporate tax rates. With a corporate tax rate of 41 per cent, Japan is ranked third after the US and India.


<b>India's Balance of Payments Developments during April-December 2008 = USD 36.469 Billion</b>

Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->

<b>International Investment Position (IIP) of India as at the end of December 2008 : USD 80.1 Billion</b>

Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->
the 7 reasons that a country can economicaly fail :

* Restrictions on the free flow of information.
* The subjugation of women.
* Inability to accept responsibility for individual or collective failure.
* The extended family or clan as the basic unit of social organization.
* Domination by a restrictive religion.
* A low valuation of education.
* Low prestige assigned to work.

some countries from Middle Easts have 7 of 7.
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Average Indian's income crosses Rs 3000</b>
PTI | New Delhi
The monthly income of an average Indian for the first time in the country's history has crossed Rs 3,000, thanks to economic reforms and a high growth rate of above 9 per cent achieved for three years since 2005-06.

The per capita income, a measure of average income of a citizen, went up 12.2 per cent to Rs 37,490 per annum during 2008-09, said the advance estimate for national income released by the Central Statistical Organisation (CSO) on Friday.

During 2007-08, the per capita income was Rs 33,283 per annum.

The CSO data further reveals that the per capita income at constant (1999-2000) prices during the last fiscal rose to Rs 25,494 per annum from Rs 24,295 per annum in the previous year, recording a growth rate of 4.9 per cent.

The per capita income would have been higher but for the global economic crisis, which pulled down the country's economic growth during 2008-09 to 6.7 per cent from 9 per cent in the previous fiscal.

The national income during the year went up to Rs 43.26 lakh crore, showing a rise of 14.2 per cent, while the population of the country increased by 1.6 crore to 115.4 crore.

The CSO data further says that the national income at 1999-2000 prices increased by 6.4 per cent to Rs 29.42 lakh crore during 2008-09.
No adjustment of inflation in above data.
<b>Exports down by over 33% in April</b>

New Delhi: The global downturn has taken the wind out of the sails of India’s exports, which fell the most in 14 years in April, by 33.2 per cent, over the same month last year, while domestic slowdown led to imports dropping by 36.6 per cent.

<b>India’s Foreign Trade during 2008-09 (April-March)</b>

<b>Statement 2 : India’s Foreign Trade

Exports : USD 166.749 Billion

Imports : USD 283.846 Billion

Balance: USD 117.097 Billion</b>

Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->

<b>1. Sources of Variation in Foreign Exchange Reserves in India : 2008-09 : USD 57.738 Billion</b>

<b>2. India’s External Debt as at the end of March 2009 : USD 229.9 Billion</b>

<b>3. India's Balance of Payments Developments during 2008-09 (April-March) : USD 20,080 Billion</b>

Cheera <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->

<b>INDIA’S ECONOMIC SURVEY 2008 - 2009</b>

Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->
<!--emo&:cool--><img src='style_emoticons/<#EMO_DIR#>/specool.gif' border='0' style='vertical-align:middle' alt='specool.gif' /><!--endemo--> The third service, clean technology, “will be a big differentiator in at least a certain consumer group,” Seth believes. He thinks it would reap dividends if it can be communicated to the people that a certain company is environmentally conscious and environmentally responsible. This, again, could be used to better a particular company’s public image.

Flexibility, frugality, innovation — a slowdown encourages all this and more. Companies that start at an economically difficult time like this are usually based on strong business values. In the end, the logic is simple: if you can start in a tough market, think what you could do when the times are better.



Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->


Revenue Expenditure… ……: IR 0,868.79 Billion = USD 18.1 Billion – For Personnel & Allied Benefits

Capital Expenditure………….: IR 0,548,24 Billion = USD 11.4 Billion – For Armament & Infrastructure

Total Defence Expenditure.: IR 1,417.03 Billion = USD 29.5 Billion

Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->
<!--emo&Sad--><img src='style_emoticons/<#EMO_DIR#>/sad.gif' border='0' style='vertical-align:middle' alt='sad.gif' /><!--endemo--> Sensex slips 870 points as budget disappoints

Mumbai: In its worst performance in recent weeks, a key index of the Indian equities markets ended trade Monday nearly 870 points down from its last closing figure, as investors blamed lack of policy announcements and increase in minimum alternate tax on corporates for the negative reaction.

<b>India Will Borrow Record $93 Billion to Fund Budget; Stocks, Rupee Decline</b>
<b>India’s Mukherjee to Borrow Record to Fund Budget</b> Gap <!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Unveiling the budget for the year to March 2010, Mukherjee said India’s fiscal deficit is expected to widen to a 16-year high of 6.8 percent of gross domestic product from a revised 6 percent. Indirect taxes will be streamlined through a goods and services tax, he said in his speech in New Delhi today.

Prime Minister Manmohan Singh’s government is spending more to speed up economic growth and reduce poverty in a nation where malnutrition is worse than Sub-Saharan Africa. Stocks and the currency weakened on investor disappointment that Mukherjee didn’t announce major asset sales and concerns a ballooning budget deficit may lead to a credit-rating cut.
<!--QuoteEnd--><!--QuoteEEnd--><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Credit Rating

<b>Moody’s Investors Service has a rating of Ba2, two levels below investment grade</b>, on India’s local-term local currency bonds, while <b>Fitch Ratings have a BBB- long-term rating on India, their lowest investment-grade level.</b>

Prime Minister Singh’s government plans to overhaul subsidies and is banking on 8 percent to 9 percent economic growth in the next two years to boost tax revenue and reduce the budget deficit to 5.5 percent of GDP by March 2011 and to 4 percent in the following 12 months.

<b>“The proof of the pudding will be in the eating on this one,”</b> said Robert Prior-Wandesforde, regional economist at HSBC Group Plc in Singapore. <b>“India remains a long way from achieving a 9 percent growth rate on a sustained bases and will need a lot more in the way of infrastructure spending.</b>”<!--QuoteEnd--><!--QuoteEEnd-->

As expected, how long they can hide under cooked books.
Sorry state is because of free dole before election, now borrow and destroy country slowly. Congress will take back country to 2% growth rate.
<b>Ancient wisdom guides India's future</b>

As we near the end of the first decade of the 21st century, the challenges of global governance in an increasingly inter-connected and multi-polar world are truly formidable. Our institutions of global governance, centred on what may be called the UN system, were designed for the most part at the end of the Second World War and reflected the politico-economic realities of that age. The world was then dominantly bipolar, in the political and military sense, international trade and international capital flows were low, the developing countries were not economically important, indeed most of them were not even independent.

There has been a sea-change since then. Bipolarity has given way to multi-polarity, the developing countries are not only sovereign states but some group of developing countries have gained in relative economic importance and this trend will only gain momentum. The world has also become much more interconnected through the expansion of trade in goods and services and expansion of financial flows generated by capital account liberalisation. Interconnection has in turn greatly increased problems of contagion and vulnerability especially through financial linkages.

Our established institutions of global governance have evolved to some extent in response to these changes, but much less than they should have and the pace of evolution is likely to remain well behind the rate at which the world is changing. The centre piece of the post-war global architecture is the United Nations, conceived originally as the Parliament of the nations with the Security Council at its apex. The size of the international parliament has of course expanded and while there is occasional cynicism about how effectively the General Assembly can reflect global opinion, and especially evolve workable solutions on key issues, there is no doubt that it serves a valuable purpose in giving voice to every country.

However, this is not the same thing as saying that we have a structure which is functionally efficient and capable of dealing with the complex challenges the world faces today. The Security Council has not changed at all and its present structure poses serious problems of legitimacy. The system of two-tiered membership, which gives a veto to the five permanent members, ie, the nations that emerged victorious after the Second World War, is clearly anachronistic. Germany [Images] and Japan [Images], which have significantly larger economies than Britain and France [Images], both permanent members, are excluded. China is the only developing country in the P-5 and it is there for historical reasons, not as a large and economically important developing country. It is obvious that if the system was being designed today it would be very different. However, while the problems have long been recognised, efforts to reform the system have made little headway.

The unworkability of the existing structures has led to greater reliance on plurilateral groupings. Some of these such as the G-7, later expanded to the G-8, are to be seen as a group of countries with common interest, not necessarily representative of the global community. The original rationale of the G-7 was the belief that it would evolve more effective consultation among the more powerful countries on one side of the bipolar world of the 1970s and 1980s. Its expansion to the G-8 reflects the disappearance of that particular faultline by the collapse of the Soviet Union. However, while the Group includes many of the economically powerful nations, it is obviously not representative as it does not include any developing country.

Some years ago the G-8 has been expanded into the G-8+5 by adding China, India, Brazil [Images], Mexico and South Africa [Images]. More recently, the group has been expanded even further to include a handful of countries in the name of achieving additional outreach. While these ad hoc expansions are a useful way of broadening the range of consultation undertaken by the G-8, it suffers from two limitations. The expanded group is not cohesive since the countries included for purposes of outreach do not participate fully in the proceedings, or the preparations, and the expanded group therefore does not have a composite identity. Second, these groupings do not have any special legitimacy within the UN system.

The deficiencies of the existing system of governance have been dramatically brought home during the recent international financial and economic crisis. The crisis has highlighted the fact that all economies are now highly inter-connected and problems originating in one part of the world economy can quickly snowball into a global crisis. It has forcefully exposed fundamental weaknesses in the approach to financial regulation which emphasised light regulation and greater reliance on inhouse controls and market discipline to control risk. This approach gained popularity in the 1990s and is now perceived to have been overdone. The issue has revealed the inadequacies in the existing domestic regulatory systems in the industrialised countries and also in the international institutions set up to police these areas and to take remedial action when needed.

Whatever the causes and specific failures underlying the crisis, the world was quick to realise that a global crisis requires a global solution. It was also realised that the existing institutions of global governance did not permit effective coordination of a global response. The world therefore responded not by working within the existing system, but by convening a meeting of the G-20 at the level of leaders. The G-20 was established in 1999 at the suggestion of Paul Martin of Canada [Images] and has a composition which is somewhat different from the IMFC which meets regularly at the finance ministers level. The G-20 has been meeting at the level of finance ministers since 1999.

Recognising the seriousness of the crisis, the United States convened a meeting of the leaders of the Group of 20 in Washington DC in November 2008. The Group met again in London [Images] in April 2009. Unlike the G-8+5, this group has a composite identity since all member countries participate on equal terms including in the preparatory process. However, the selection of countries remains arbitrary and can be questioned as to its representativeness, especially since it departs from the composition of the IMFC which reflects the representation on the Board of the IMF.

The G-20 meeting in London certainly achieved a great deal more than normal meetings of this type, especially in two respects. First, it succeeded in expanding the perimeter of financial regulation and endorsing the establishment of global standards to which national standards can be aligned. These standards will be developed by the Financial Stability Forum (now renamed the Financial Stability Board) which has been expanded to include all G-20 countries that were not members earlier. Second, it achieved a significant expansion in funding for the Bretton Woods Institutions. However, it did not achieve any significant reform of the international financial institutions. The Group has decided to meet again in September and it remains to be seen whether it will be able to evolve some ideas for making significant reforms by then.

The problems faced by the institutions of governance charged with handling the financial system are also relevant for other international institutions dealing with political and security issues, trade, climate change, etc. They need to update structures and upgrade work methods; reform decision-making and ensure effective delivery. They need to adapt, adjust and accommodate to adequately reflect ground realities, contemporary aspirations, and pressing requirements of developing countries including emerging economies.

India, as the largest democracy in the world and an emerging economy that has achieved the ability to grow rapidly, remains deeply committed to multilateralism. It has been an active member in global institutions -- the United Nations, Bretton Woods Institutions, World Trade Organisation, International Atomic Energy Agency and so on. It will continue to be so in the decades ahead, based on commitment to principles and values that define these institutions. India will seek its due place, play its destined role and share its assigned responsibility, giving voice to the hopes and aspirations of a billion people in South Asia.

It will continue to strive for the reform of the United Nations to make it more democratic; to fight against the scourge of terrorism and dismantling its infrastructures on the basis of zero tolerance; to fight piracy on the high seas; to restructure the Bretton Woods Institutions to create a new financial architecture; to achieve an early conclusion of the Doha Round of trade negotiations, with its development dimension, and to address climate change issues, guided by the principle of common but differentiated responsibility and respective capability.

India's view of the world has always been guided by the wisdom of that ancient Indian saying -- Vasudhaiva Kutumbakam -- 'the whole world is one family'. This idea found expression in Jawaharlal Nehru's very first address as prime minister: 'Those dreams are for India, but they are also for the world, for all the nations and peoples are too closely knit together today for any of them to imagine that it can live apart. Peace has been said to be indivisible; so is freedom, so is prosperity now and so also is disaster in this One World that can no longer be split into isolated fragments. That eternal message of the Indian people will guide us in our attempt to seek inclusive global solutions to intractable global problems, and give new hope to humanity.'

Prime Minister Dr Manmohan Singh's [Images] article was published in the compendium brought out by the G-8 nations on the eve of their summit in Italy [Images]

<!--emo&<_<--><img src='style_emoticons/<#EMO_DIR#>/dry.gif' border='0' style='vertical-align:middle' alt='dry.gif' /><!--endemo--> NEW YORK: Indian Prime Minister Manmohan Singh's speeches may not be winning him followers but his works do and his actions have "changed tens
Manmohan Singh of millions of lives for the better", Time magazine has said.

The American publication has said that Singh first as Finance Minister and then as Prime Minister since 2004 has made the world's largest democracy one of the fastest growing economies through radical economic reforms.


<b>International Investment Position (IIP) of India as at the end of March 2009 : USD -65.34 Billion</b>

Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->
<b>Delhi revenue collection falls 13% short of target in Q1</b>
pioneer.com<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Rajesh Kumar | New Delhi

The cocktail of Mumbai terror, swine flu and slowdown in economy has hit Delhi hard. The results of the first quarter show a shortfall of Rs 670.99 crore against the targeted revenue collection in the current financial year.

According to the data released by the Government,<b> the shortfall is around 13 per cent of the targeted growth </b>as compared to the revenue collection in 2008. The Government had pegged the revenue collection at Rs<b> 4,846.02 crore in the first quarter in the Budget Estimate (BE), but only Rs 4,176.03 crore</b> have been collected up to July.

<b>This is largely due to the fall in collection of luxury tax, levied on hotels and restaurants, and stamp duty on the sale and purchase of property</b>.

Finance Minister Dr Ashok Kumar Walia hinted that if the shortfall in revenue collection continued, the Government would be forced to reduce the Plan size of the next Budget, besides shelving some mega projects (which are not related to the 2010 Commonwealth Games). (Details on Page 3)<!--QuoteEnd--><!--QuoteEEnd-->
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Govt admits to ailing economy</b>
Santanu Banerjee | New Delhi

Plan panel paper warns of its shadow in 2009-10 too

The global meltdown and weak southwest monsoon are all set to impact the Indian economy adversely this fiscal, admits UPA-II in the agenda paper for the full Planning Commission meeting on Tuesday.

Sources said that the agenda paper admits that the global slowdown — which began in 2007 and snowballed into a major crisis in 2008 – would continue to affect performance of the Government in 2009-10 too.

Despite the Indian economy growing by 6.1 per cent during the first quarter of this fiscal, the erratic monsoon may dampen growth in the forthcoming quarters. The GDP has improved marginally from 5.8 per cent in the previous two quarters, though it was much higher at 7.8 per cent in the first quarter of last fiscal, according to figures released by the Central Statistical Organisation (CSO) on Monday. The data showed that manufacturing and some services like hotels are yet to fully come out of the crisis.
I thought Queen Sonia and Moron Singh are ruling, sea level will go down, good monsoon and prosperity all around in India.
What happened?
<b>Suzuki, Hyundai’s ‘Made-in-India’ Car Exports Edge Out China</b> <!--emo&:cool--><img src='style_emoticons/<#EMO_DIR#>/specool.gif' border='0' style='vertical-align:middle' alt='specool.gif' /><!--endemo-->
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Sept. 7 (Bloomberg) -- India, whose auto market is 19 percent of China’s, has the edge in exports.

<b>Suzuki Motor Corp.,Hyundai Motor Co., and Nissan Motor Co. are making India a hub for overseas sales of minicars as incentives lift demand for smaller, fuel-efficient autos. Helped by cheaper labor and a surging local market, India this year overtook China in auto exports and is challenging Thailand and South Korea as an alternative production center in Asia.</b>

<b>“There is a worldwide shift toward fuel-efficient, compact cars</b>,” said Jayesh Shroff, who helps manage about $7 billion of assets including carmaker shares at SBI Asset Management Co. in Mumbai. “<b>This offers a huge potential for India and it can emerge as a leader in the small car segment.”</b>

Maruti Suzuki India Ltd.’s exports more than doubled to 79,860 this year. It aims to ship 130,000 vehicles in the year to March, 86 percent more than last year, said Chairman R.C. Bhargava.

Maruti Suzuki sold a monthly record 14,847 vehicles overseas in August. India’s exports of minicars and hatchbacks gained 44 percent between January and July to 201,138, according to the Society of Indian Automobile Manufacturers. Total exports, including vans, sport-utility vehicles and trucks, rose 18 percent to 229,809. Cars are exported to over 100 countries, and don’t include the U.S. or Japan.<!--QuoteEnd--><!--QuoteEEnd-->

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