Policy: June 16-June 30, 2012

1. PM Backs Growth, to Revive Sentiment

   Prime Minister, Dr Manmohan Singh, who has decided to keep the Finance Ministry under his care after the resignation of Mr Pranab Mukherjee, who will be contesting the Presidential elections has assured investors that India will soon revert to a growth rate of nine per cent a year.

   At the same time he said that the current growth rate of 6.5 per cent seemed reasonable, given the all round slowing of economic activities across the globe.

   Just before stepping down as Finance Minister, Mr Mukherjee had also announced several steps to boost the economy. This included allowing foreign institutional investors to invest up to $ 20 billion in government securities, providing a new external commercial borrowing scheme manufacturer exporters an investment ceiling of $ 10 billion and allowing qualified foreign investors to invest in mutual fund debt schemes that holds 25 per cent of assets in infrastructure sector, reports said.

2. Public Sector Banks to Expand Overseas

   The Finance Ministry has asked Public Sector banks to join forces and spread across the globe. The Ministry, reports said, has drawn up a list of 42 countries primarily from Latin America, Africa, East Europe and South-East Asia.

   Reports said that 26 public sector banks are hoping to foray into these countries over the next few years. The Banks that have been identified for these operations are State Bank of India, Bank of Baroda, Bank of India, Indian Overseas Bank, Punjab National Bank, Union Bank of India and Central Bank of India, reports said.

   Different banks will team up with each other to foray in different countries, reports said. For instance SBI has been given charge of making inroads into South America including Brazil, Mexico, Chile, Peru and Argentina, reports said.

   The Indian banks will also consider buying a bank in any of these countries to ramp up their operations, reports said.

3. Pravasi Bharatiya Divas 2013 in Cochin

   The 11th Pravasi Bharatiya Divas (PBD) will be held from 7 to 9 January, 2013 in Cochin. Reports quoting Mr Vayalar Ravi, Minister of Overseas Indian Affairs said that the Prime Minister will inaugurate this annual flagship event of the Ministry on January 8, and the President of India will deliver the valedictory address on January 9 and also confer the Pravasi Bhartiya Samman Awards. The pre-conference seminars will also be organized on 7 January.

   The Minister said that the PBD has become a significant forum to connect the overseas Indians from all over the world and the PBD-2013 will be focusing on more connectivity with overseas Indians.

   Kerala will be the partner State of the 11th PBD, which would provide the Diaspora an opportunity to understand the vibrant culture and potential of the State. The Minister said that more than 2000 delegates are expected to participate in PBD-2013 from all over the world.

4. Venture Capital Crosses $ 10 bn in 2011

   Venture capital funding in Indian companies stood at a record Rs 56,868 crore ( over $10 Billion) at the end of 2011, according to data released by the Securities and Exchange Board of India (SEBI) recently.

   This was 18.8 per cent higher than the flows that were recorded in the previous years, reports said. Reports said that among the big ticket venture capital deals in 2011, online retailer Fashionandyou.com raised $ 40 million from a group of investors, while the group buying portal Snapdeal.com attracted $ 40 million. Foreign capital venture funds contributed to over 65 per cent of the funding in the country while Indian VCs contributed over 34 per cent, reports said.

5. Antwerp Diamond Bourse May Partner Indian Bourse

   The Antwerp Diamond Bourse is likely to partner the Mumbai-based Bharat Diamond Bourse to help train workers in the diamond sector, reports said. This was part of the discussion between the Union Minister for Commerce & Industry, Mr Anand Sharma and the Antwerp Bourse officials during his visit to Belgium, reports said.

   Trade in diamond, reports said, accounts for around 60 per cent of India’s $17 billion trade with Belgium. Antwerp, which also houses a number of Indian traders is a major global hub for trade in rough and polished diamonds, reports said.

6. India-Australia Research Projects

   Indian and Australian scientists will jointly undertake 13 new research projects. These include developing new batteries for electrical vehicles, recycling of hazardous e-waste, method to manage wastewater discharged from ethanol distilleries and new vaccines against tuberculosis, reports said.

   The broad areas identified by the two sides are environment science, materials science, stem cells and vaccines, reports said.

References: Hindustan Times, Times of India, The Hindu, Economic Times, Business Standard, Business line