India Economic News Consulate General of IndiaMarch 2015 Munich

India poised as world’s fastest growing economy: IMF chief Lagarde:

Internation Monetary Fund (IMF) Managing Director Christine Lagarde on March 16 announced that India was on its path to becoming the world’s fastest growing economy, as she bagan her two-day visit to the country. The multilateral funding institution predicted a 7.25 percent growth for the country this fiscal, rising to around 7.5 percent the next year.

India to lead Asia’s economic growth: Asian Development Bank:

The Asian Development Bank’s (ADB) Outlook 2015 projected Emerging Asian

economies to clock average 6.3 per cent growth in both 2015-16 and 2016-17 fiscal, as in the current financial year. The growth would be supported by a strengthening recovery in the major industrial economies and soft global commodity prices. The ADB has forecast that India’s growth will improve from 7.4 per cent in current fiscal to 7.8 per cent in 2015-16 and further to 8.2 per cent in 2016-17. As regards China, the ADB projected the economic growth to decelerate from 7.4 per cent in current fiscal to 7.2 per cent next fiscal and 7 per cent in 2016-17 as the government proceeds with its structural reform agenda and fixed asset investment slows. It said India is poised to overtake China in terms of growth as government

Consulate General of India, Widenmayer Strasse 15,80538 Munich, Germany. Web: www.cgimunich.com

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removes structural bottlenecks and lifts investor confidence.

France promises $5 billion for insurance sector in India:

With Parliament recently giving its approval for raising the cap on foreign direct investment in the insurance sector from 26% to 49%, French ambassador to India, Mr. Francois Richier stated that India can look forward to $5 billion in investment from France in the sector.

India ready to resume talks on free trade pact with EU: Sitharaman:

As per Commerce Minister, Ms. Nirmala Sitharaman, India was "ready to talk" with the European Union (EU) on the proposed bilateral free trade agreement. Negotiations on the FTA, officially dubbed the Broad-based Trade and Investment Agreement (BTIA) between India and the EU, were launched in June 2007 but have been facing hurdles with both sides having differences on crucial issues. No negotiation was held after both sides failed to bridge disagreements in May 2013 on

crucial issues including data security status for the IT sector.

India’s Solar Sector attracts Global Funds:

A massive upgradation of the solar power sector is in the pipeline in India with plans to scale-up capacity to 100,000 MW. The Ministry of New and Renewable Energy (MNRE) has been mandated to achieve this goal by 2019. To put its ambitious plan on ground, India needs an investment to the tune of around US$ 110 billion. This would include transmission capacity.

Cabinet paves way for expanding Swacch Bharat Kosh:

The union cabinet on March 4 cleared some enabling provisions to encourage participation of individuals and companies in the Swachh Bharat Kosh (SBK). As per the reports, the cabinet had cleared the provisions to enable people living in India and abroad and companies give funds to SBK. The SBK was set up in response to Prime Minister Narendra

Consulate General of India, Widenmayer Strasse 15,80538 Munich, Germany. Web: www.cgimunich.com

3

Modi's August 15 speech to achieve the objective of Clean India (Swachh Bharat) by the year 2019, the 150th year of the birth anniversary of Mahatma Gandhi through the Swachh Bharat Mission. The sources said the funds will be largely used for construction of toilets and contributions can be made to the fund under the corporate social responsibility provisions. The sources said contributions will get tax exemption.

Ease of Doing Business: Only 3 documents needed for imports, exports:

As part of efforts to improve its ranking on ‘Ease of Doing Business’, India reduced the number of mandatory documents required for import and export of goods to three in each case. The move will also lead to reduction in transaction cost and time. Currently, around 10 documents are needed to fulfil the official obligations. The notification, issued by the Directorate General of Foreign Trade, will take effect from April 1. Mandatory documents required for export of goods from India now include Bill of

Lading/Airway Bill; Commercial Invoice cum Packing List, and Shipping Bill or Bill of Export. Besides, mandatory documents required for import of goods into India include Bill of Lading/Airway Bill; Commercial Invoice cum Packing List, and Bill of Entry. For export or import of specific goods or category of goods, which are subject to any restrictions/policy conditions or require NOC or product specific compliances under any statute, the authority concerned may notify additional documents.

Smart Cities project likely to be rolled out next month:

While addressing a seminar on Smart Cities, Mr. M Venkaiah Naidu, Urban Development Minister announced that the much awaited Smart Cities project is likely to be rolled out next month as the extensive consultation process with all stakeholders has concluded.He described the project as the biggest buzz word and the flavour of the season in the country. NDA governmenthad last year declared the mission of creating 100 Smart

Consulate General of India, Widenmayer Strasse 15,80538 Munich, Germany. Web: www.cgimunich.com

4

Cities across the nation based on better technology, superior management and modern governance strictly on the basis of the criteria laid out by the government. He added that no other consideration, including political ones, will be taken into account.

Health sector to grow at 17 per cent during 2011-2020:

The Indian healthcare sector is expected to grow at a compound annual growth rate of 17 per cent during 2011-2020 to touch $ 280 billion by 2020, Health Minister, Mr J P Nadda said in a written reply to the Lok Sabha. Mr. Nadda also informed that the government has recently reviewed the policy on FDI in Parma sector and has allowed FDI up to 100 per cent under the automatic route for the manufacturing of medical devices.

India's forex reserves up $3.88 bn:

India's foreign exchange reserves increased by $3.88 billion to $338.07 billion for the week ended February 27, Reserve Bank of India (RBI) data showed. The reserves

had increased by $1.02 billion to $334.19 billion in the previous week (Feb 20).

India overtakes US as 3rd biggest steel producer:

India has overtaken the US to become the third-largest steel producer in the world with a production of 14.56 million tonnes (MT) in first two months of the year. India has been the fourth-largest steel producer for the past five years, behind China, Japan and the US. Data compiled by World Steel Association (WSA) showed that the country’s production growth was the highest during the January-February period at 7.6 per cent as compared to the global average of just 0.6 per cent at 127.6 MT. China produced 65 MT steel during the period. Japan, the second-largest producer, reported a total output of 17.4 MT, but production in the country fell 2.2 per cent. The US, which was the third-largest steel producer since 2010, produced 13.52 MT during the January-February period, giving away its position to India. On a yearly basis, India may retain the position given the fact that a lot of capacities

Consulate General of India, Widenmayer Strasse 15,80538 Munich, Germany. Web: www.cgimunich.com

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are set to be commissioned during the year from its present installed manufacturing capacity of a little over 100 MT.

E-visa gives fillip to tourism sector: Economic Survey:

Easing of the Indian tourism visa regime through the expansion of Visa on Arrival enabled by Electronic Travel Authorization (ETA) will give a fillip to foreign tourist arrivals in the country, as per the Economic Survey for 2014-15. “There was an increase in growth on both foreign tourist arrivals at 7.1 percent andforeign exchange earnings at 6.6 percent in the year 2014,” the survey, which was tabled by Finance Minister Arun Jaitley in the Lok Sabha, said.

Defence sector to be opened soon for lobbyists, agents:

For greater transparency in defence deals, the government will soon open up the sector for lobbyists/agents, with the rider that companies will be heavily penalised if they violate stringent conditions, including disclosure of consultancy fee paid to their

agents. Inter-ministerial consultations are on to finalise a revamped defence procurement policy by April, and the norms on defence lobbyists/agents /middlemen are expected to be part of this policy. However, the government has decided that blacklisting of firms will be reserved only for the rarest of rare cases. According to defence ministry sources, the new norms will make it mandatory for companies to disclose the names of agents, the agency fees paid every year till the end of the contract, specify the nature of the relationship between the company and its agent will have to be included in the contract signed with the government.

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Consulate General of India, Widenmayer Strasse 15,80538 Munich, Germany. Web: www.cgimunich.com

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DISCLAIMER

This newsletter is a compilation of news articlesfrom various business e-newspapers and in no

way is an endorsement or reflection ofviews of Consulate General of India, Munich.

For queries contact:

Mr. Asheesh Gupta, Consul (E & C), Consulate General of India, Widenmayer Strasse 15, 80538 Munich, Germany. Email: cpic@cgimunich.com , Web: www.cgimunich.com

India poised as world’s fastest growing economy: IMF chief Lagarde

Internation Monetary Fund (IMF) Managing Director Christine Lagarde on March 16 announced that India was on its path to becoming the world’s fastest growing economy, as she bagan her two-day visit to the country. The multilateral funding institution predicted a 7.25 percent growth for the country this fiscal, rising to around 7.5 percent the next year.

India to lead Asia’s economic growth: Asian Development Bank

The Asian Development Bank’s (ADB) Outlook 2015 projected Emerging Asian economies to clock average 6.3 per cent growth in both 2015-16 and 2016-17 fiscal, as in the current financial year. The growth would be supported by a strengthening recovery in the major industrial economies and soft global commodity prices.The ADB has forecast that India’s growth will improve from 7.4 per cent in current fiscal to 7.8 per cent in 2015-16 and further to 8.2 per cent in 2016-17. As regards China, the ADB projected the economic growth to decelerate from 7.4 per cent in current fiscal to 7.2 per cent next fiscal and 7 per cent in 2016-17 as the government proceeds with its structural reform agenda and fixed asset investment slows. It said India is poised to overtake China in terms of growth as government removes structural bottlenecks and lifts investor confidence.

France promises $5 billion for insurance sector in India

With Parliament recently giving its approval for raising the cap on foreign direct investment in the insurance sector from 26% to 49%, French ambassador to India, Mr. Francois Richier stated that India can look forward to $5 billion in investment from France in the sector.

India ready to resume talks on free trade pact with EU: SitharamanAs per Commerce Minister, Ms. Nirmala Sitharaman, India was "ready to talk" with the European Union (EU) on the proposed bilateral free trade agreement. Negotiations on the FTA, officially

dubbed the Broad-based Trade and Investment Agreement (BTIA) between India and the EU, were launched in June 2007 but have been facing hurdles with both sides having differences on crucial issues. No negotiation was held after both sides failed to bridge disagreements in May 2013 on crucial issues including data security status for the IT sector.

India’s Solar Sector attracts Global Funds

A massive upgradation of the solar power sector is in the pipeline in India with plans to scale-up capacity to 100,000 MW. The Ministry of New and Renewable Energy (MNRE) has been mandated to achieve this goal by 2019. To put its ambitious plan on ground, India needs an investment to the tune of around US$ 110 billion. This would include transmission capacity.

Cabinet paves way for expanding Swacch Bharat Kosh

The union cabinet on March 4 cleared some enabling provisions to encourage participation of individuals and companies in the Swachh Bharat Kosh (SBK). As per the reports, the cabinet had cleared the provisions to enable people living in India and abroad and companies give funds to SBK. The SBK was set up in response to Prime Minister Narendra Modi's August 15 speech to achieve the objective of Clean India (Swachh Bharat) by the year 2019, the 150th year of the birth anniversary of Mahatma Gandhi through the Swachh Bharat Mission. The sources said the funds will be largely used for construction of toilets and contributions can be made to the fund under the corporate social responsibility provisions. The sources said contributions will get tax exemption.

Ease of Doing Business: Only 3 documents needed for imports, exports

As part of efforts to improve its ranking on ‘Ease of Doing Business’, India reduced the number of mandatory documents required for import and export of goods to three in each case. The move will also lead to reduction in transaction cost and time. Currently, around 10 documents are needed to fulfil the official

obligations. The notification, issued by the Directorate General of Foreign Trade, will take effect from April 1. Mandatory documents required for export of goods from India now include Bill of Lading/Airway Bill; Commercial Invoice cum Packing List, and Shipping Bill or Bill of Export. Besides, mandatory documents required for import of goods into India include Bill of Lading/Airway Bill; Commercial Invoice cum Packing List, and Bill of Entry. For export or import of specific goods or category of goods, which are subject to any restrictions/policy conditions or require NOC or product specific compliances under any statute, the authority concerned may notify additional documents.

Smart Cities project likely to be rolled out next month

While addressing a seminar on Smart Cities, Mr. M Venkaiah Naidu, Urban Development Minister announced that the much awaited Smart Cities project is likely to be rolled out next month as the extensive consultation process with all stakeholders has concluded. He described the project as the biggest buzz word and the flavour of the season in the country. NDA government had last year declared the mission of creating 100 Smart Cities across the nation based on better technology, superior management and modern governance strictly on the basis of the criteria laid out by the government. He added that no other consideration, including political ones, will be taken into account.

Health sector to grow at 17 per cent during 2011-2020

The Indian healthcare sector is expected to grow at a compound annual growth rate of 17 per cent during 2011-2020 to touch $ 280 billion by 2020, Health Minister, Mr J P Nadda said in a written reply to the Lok Sabha. Mr. Nadda also informed that the government has recently reviewed the policy on FDI in Parma sector and has allowed FDI up to 100 per cent under the automatic route for the manufacturing of medical devices.

India's forex reserves up $3.88 bn

India's foreign exchange reserves increased by $3.88 billion to $338.07 billion for the week ended February 27, Reserve Bank of India (RBI) data showed. The reserves had increased by $1.02 billion to $334.19 billion in the previous week (Feb 20).

India overtakes US as 3rd biggest steel producer

India has overtaken the US to become the third-largest steel producer in the world with a production of 14.56 million tonnes (MT) in first two months of the year. India has been the fourth-largest steel producer for the past five years, behind China, Japan and the US. Data compiled by World Steel Association (WSA) showed that the country’s production growth was the highest during the January-February period at 7.6 per cent as compared to the global average of just 0.6 per cent at 127.6 MT. China produced 65 MT steel during the period. Japan, the second-largest producer, reported a total output of 17.4 MT, but production in the country fell 2.2 per cent. The US, which was the third-largest steel producer since 2010, produced 13.52 MT during the January-February period, giving away its position to India. On a yearly basis, India may retain the position given the fact that a lot of capacities are set to be commissioned during the year from its present installed manufacturing capacity of a little over 100 MT.

E-visa gives fillip to tourism sector: Economic Survey

Easing of the Indian tourism visa regime through the expansion of Visa on Arrival enabled by Electronic Travel Authorization (ETA) will give a fillip to foreign tourist arrivals in the country, as per the Economic Survey for 2014-15. “There was an increase in growth on both foreign tourist arrivals at 7.1 percent and foreign exchange earnings at 6.6 percent in the year 2014,” the survey, which was tabled by Finance Minister Arun Jaitley in the Lok Sabha, said.

Defence sector to be opened soon for lobbyists, agents

For greater transparency in defence deals, the government will soon open up the sector for lobbyists/agents, with the rider that companies will be heavily penalised if they violate stringent conditions, including disclosure of consultancy fee paid to their agents. Inter-ministerial consultations are on to finalise a revamped defence procurement policy by April, and the norms on defence lobbyists/agents /middlemen are expected to be part of this policy. However, the government has decided that blacklisting of firms will be reserved only for the rarest of rare cases. According to defence ministry sources, the new norms will make it mandatory for companies to disclose the names of agents, the agency fees paid every year till the end of the contract, specify the nature of the relationship between the company and its agent will have to be included in the contract signed with the government.