Rural folk driving own economy

Mumbai: Indian villages are powering their own economy, but contrary to conventional belief, it's not government largesses which are the drivers, but their own self-sustaining models. Growth at the bottom of the pyramid is at unprecedented level, and the transformation is stark. 

    The factors driving this transformation are dramatic improvements in rural roads, electrification, cell phones and water supply which are raising wages and increasing job opportunities for thousands living in villages. This, in turn, is fuelling demand for consumer goods, and for those companies which have a strong rural push. 
    Case studies from fieldtrips and research undertaken by Credit Suisse show that the growth in productivity is becoming sustainable as jobs in manufacturing drive services jobs in transportation and trade, enabled by mobile phones and roads. 
    Research over the last couple of years by independent sources has confirmed that use of cell phones benefited a diverse set of people—from fishermen to sari weavers. Most of the studies focused on price discovery in agriculture or on skilled artisans improving customer service or price realizations. 
    D K Joshi, chief economist at Crisil, says, "Overall, there has been a definite improvement in the rural economy. Villages have become self sustaining, providing a big push in manufacturing jobs. Roads are increasing demand for vehicles, while cell phones trigger more goods and services. However, a lot more is required; the success stories need to be replicated in a number of areas." 
CHANGING FACE OF INDIAN VILLAGES 
    Village textile stores now stock pre-stitched branded clothing 
    The second hottest-selling item in a rural grocery store is packaged 
gulab jamun instant mix 
    Rural areas have a higher penetration of direct-to-home 
devices for receiving TV content Two in every five mobile subscribers are now rural 
40% of demand for cement comes from rural housing 
Most surprisingly, poultry farming created more days of work per person than the jobs guarantee programme (between 2005 and 2010) Rising wages, land prices spur rural purchasing power 
Mumbai: The face of the rural Indian economy is changing for the better. Access to roads is helping landless people raise poultry (chicken) within limited floor space and sell their produce in nearby towns. In fact, poultry farming created 3.8 million jobs between 2005 and 2010: the 950 million person days of work thus created every year is the same as that by the government's NREGA in the same period. 
    Road access significantly improves land prices, labour mobility, wages and alternative employment avenues, says a study by Credit Suisse. 
    For example, production of mannequins has moved from Ulhasnagar outside Mumbai to villages in Rajasthan, while other examples like pottery (Orissa), saris (West Bengal), furniture (Himachal Pradesh), are all potential jobs difficult to carry out in remote villages previously, but are now made easy by road connectivity. 
    The study found a strong correlation between per-capita output and road networks (represented by vehicle penetration) both within and across states. 
    Since about 80% of the country's rural households own less than two acres of land, they are therefore wage dependent. Analysts point out that this wage growth is largely productivity-driven (and therefore sustainable to a large extent), providing a floor to India's cratering economic growth, and even in the absence of major infrastructure projects taking off, there are substantial changes in basic infrastructure that are taking place in areas other than big cities. 
    Over the last five years, rural wages have increased at an unprecedented 20% CAGR, with land prices appreciating sharply as well. Both have ended up putting more money in the hands of people, and generating purchasing power, experts say. Fast-moving consumer goods companies are enthused with the strong rural demand as it augments their sales. 
    In some cases like Emami with products, offered in 30 lakh rural outlets, including Navratna Oil, Fair and Handsome cream, Zandu Balm, BoroPlus cream, has nearly 50% of sales in some categories coming from rural markets.
    Says N Krishna Mohan, CEO, sales, supply chain & human capital, "We are going to focus on specific brands/stock keeping units and increased outlet coverage in villages/ towns in certain states where we have a strong direct coverage. In other markets, we would be working on ensuring that at least 80% of the villages with a population of 10,000 and above are put under the coverage map by the end of the next fiscal". 
    Another company, ITC, which offers Sunfeast biscuits, Vivel soaps, Superia soaps and shampoos, has been able to tap the rural segment through its e-choupal network. Says an ITC executive: "The divide between urban and rural markets has narrowed down and hence we have expanded our basket of offerings in rural India. Given the vast reach and penetration, ITC has devised mobility solutions for monitoring progress and instant information dissemination". 
    Sales of white goods like refrigerators, and consumer durables like LCD televisions have surged in villages. 
    Private banks have also realized that villages can be the next engine of growth. This is because the share of saving deposit for non-urban branches is high (42-50%) as against the 15-30% in metro/urban branches.

TIME FOR AN UPGRADE As India moves towards greater urbanisation, it is vital to ensure holistic planning and good governance, says

Mahatma Gandhi may have once pointed out that India lives in its villages, but much has changed in the 64 years since Independence, and new cities continue to grow in the country. This growth is haphazard and unplanned, as residents of Mumbai will agree, but there is no denying that metropolitan regions remain attractive to millions of migrants who make their way, even if it is to the city footpaths, to find their fortunes. Experts point out that there will be a doubling of Indian urban population from 280 million to 560 million from 2001 to 2025; they also observe that cities contribute more than 70% of GDP, and are crucial for economic development. However, they suffer from deficiencies in urban infrastructure, citizen services, and governance mechanisms. 

    Much has been spoken on the issue in recent times, both in Delhi, where policies are made, and in Mumbai, which is in great need of good governance. On March 13, over 700 delegates from 100 Indian cities, met in the capital for Municipalika 2013, the 11th International Conference & Exhibition on Good Urban Governance for Safe, Healthy, Green, Inclusive and Smart Cities. In his Presidential address, Arun Kumar Misra, Secretary, Ministry of Housing & Urban Poverty Alleviation, spoke of the mammoth needs for urban housing for economically weaker sections and low income groups, and of the need for a multipronged approach to make affordable housing a reality. Highlighted were problems of slum housing for sheltering nearly 90 million. Some positive initiatives for urban housing through interest differential, cost-effective technologies and innovative use of land were alsoanalysed. Rick Fedrizzi, Chairman, World Green Building Council, spoke of sustainable urban development in the context of climate change and stressed the need for optimum, efficient use of resources – water, land, energy and renewable energies – and support national, provincial and local city governments can give to sustainable green built environment. 
    Earlier in Mumbai, at an international workshop on the governance of megacity regions on February 4, experts pointed out much the same thing. The symposium, organised by Centre for Policy Research (CPR) and Confederation of Indian Industry (CII) was focused on a draft report for the Ministry of Urban Development, Government of India, titled 'How to Govern India's Mega Cities: Towards Needed Transformation'. On the occasion, K Sivaramakrishnan, Chairman, CPR observed that megacities are a demographic, economic and political reality, playing a major role in GDP growth – as much as 14 to 36 per cent - and with a global presence and international obligations. The five metros covered – Mumbai, Kolkata, Chennai, Hyderabad and Bengaluru - account for 68.5 million people, which is about 18 per cent of the country's urban population. 
    It was at this event that Ajay Maken, Union Minister for Housing and Poverty Alleviation made his widely quoted comment about how megacities like Mumbai must review Floor Space Index (FSI) policy to encourage affordable housing. The minister stated that the policy for providing infrastructure status to affordable housing schemes was on the cards. 
    CPR spoke of how governance of these big city regions required participation of multiple stakeholders, including national and provincial governments, city governments, business and industry, political representatives, civil society and others. They underlined the need for a single strong entity, such as a Chief Executive Officer, to take holistic decisions. In Mumbai, for instance, as Narinder Nayar, Chairman of Bombay First pointed out, 17 agencies run the city – "some responsible to the State, some to the Centre, and all with narrow agendas. "We have an able orchestra for Mumbai," he observed, "but no conductor. We need a CEO for Mumbai." 
    Infrastructure was one of the core issues discussed at both events. At the Mumbai symposium, Adi Godrej, President, CII, said, "India would need $800 billion in the coming years towards urban development and out of which $350 billion would go towards building urban roads. Administrative reforms, urban service delivery reforms and many more such initiatives are the need of the hour." 
    If megacities are to achieve their potential, there is no denying that the real estate sector must play a large role. Lalit Kumar Jain, National President, CREDAI and CMD, Kumar Urban Development says: "Any city is livable or otherwise based on the quality of physical and social infrastructure as well as ease and cost of living. Mumbai needs to upgrade its physical infrastructure first. Networked public transport is a necessity. The introduction of metro - monorail across the city is definitely a good step; however, it's neither enough nor well integrated." Jain points out that making Mumbai a livable city is everybody's responsibility, right from citizens, government and the real estate sector. "Government and real estate should work hand in hand," he explains. "Mass rental housing, affordable housing for low income groups and economically weaker sections with enhanced FSI limits and special housing zones on the outskirts like Navi Mumbai and Thane and Mira-Bhayander are some of the suggested solutions. "Real estate and infrastructure development need to be looked at as a single phenomenon while planning a city, rather than in isolation," he says. "A sealink is not the answer, what Mumbai needs is homes at lower cost, a better public transport system and better connectivity." 
    Lalit Kumar Jain and other developers have repeatedly stressed the need for policy changes. Sukhraj Nahar, Chairman and Managing Director, Nahar Group, for instance, says: "Mumbai has now emerged as a global financial hub. The city has witnessed unprecedented growth in the last decade. Considering the huge inflow of population across the country in Mumbai, it requires a massive overhaul as far as governance is concerned." 
    Nahar echoes what CREDAI has been highlighting for years – that there is a need to create a single window clearance system for projects, be they of private real estate developers or governmentowned agencies like CIDCO, MHADA and HUDCO. "Currently various authorities are involved in planning and implementation of various ongoing projects in Mumbai, I think, there should be only one system that can take care of planning and implementation of projects in the metro city to avoid any confrontation." He also suggests that a full-fledged cabinet post be created to focus on policy issues and development of Mumbai. 
    Dhaval Ajmera, Director, Ajmera Realty and Infra India Ltd adds: "Infrastructure and real estate are the two vital engines of a city that provide the basis for economic growth…. The biggest bugbear is that there is a paucity of consent on the projects by the concerned authorities." 
    Ajmera also speaks of the need for single window clearance, and more infrastructure projects in Mumbai. A separate monitoring cell should be instituted to ensure projects are completed on time, he adds, and greater public-private partnership (PPP) to encourage better and speedy implementation of infra projects. "Besides an authoritative consent on industry status to the real estate sector would ensure speedy approvals which would in turn bestow the city with the indispensable face-lift," he observes. 
    Everyone in government seems to have the solutions. Municipalika 2013 also had a range of solutions on offer. The deliberations stressed the need for incremental sustenance and the role of the private sector and communities to bring in resources, technology, management and improved innovations for housing and infrastructure development. The new mantra for development has to be Public-Private-People's Partnership (PPPP) as against PPP, they said. Speakers also spoke of the immense potential of decentralisation and involving stakeholders at the local/micro level and monitoring and execution of projects in the decentralised mode with intense community participation. 
    The opportunities are huge. As Dr Prem C Jain, Chairman, Indian Green Building Council (IGBC) pointed out at Municipalika, "Since 60% of the buildings that would exist in 2030 are yet to be built, we have a big opportunity to develop environment-friendly cities in the country." 
    The real estate sector will certainly play a huge role in this development, but only if the right policies are in place. As Niranjan Hiranandani, MD, Hiranandani Group, had pointed out at another seminar in the city last month, there is a difference between talking the talk and walking the walk. Everyone knows what to do, but no one actually does it. The recent Union Budget was only one more example of how the real estate sector is neglected, time and again. 
    INPUTS NISHA SWAMI

QUICK 
BYTES 
    EXPERTS POINT OUT THAT THERE WILL BE A DOUBLING OF INDIAN URBAN POPULATION FROM 280 MILLION TO 560 MILLION FROM 2001 TO 2025 
    DEVELOPERS WILL PLAY A LARGE PART IN MEETING THE CHALLENGES OF THIS GROWTH, BUT THE RIGHT POLICIES MUST BE IN PLACE

Maha tops census list with 21k slum blocks in India

1 Out Of 6 Urbanites Live In Slums Across Country, Shows Data

New Delhi: Nearly one in every six urban Indian residents lives in a slum, newly released census data shows. The new numbers are significantly lower than the slum growth that had been projected for India. 

    "Our own projections were that the all-India slum population would be 27.5% by 2011, so the new data comes as a pleasant surprise," Arun Kumar Misra, secretary in the ministry of housing and urban poverty alleviation, said. Slum populations in individual cities like Mumbai was also lower than expected, Mishra said. 
    The census defines a slum as "residential areas where dwellings are unfit for human habitation" because they are dilapidated, cramped, poorly ventilated, unclean, or "any combination of these factors which are detrimental to the safety and health", registrar general of India C Chandramouli said. 
    Roughly 1.37 crore households, or 17.4% of urban Indian households lived in a slum in 2011, data released by the Registrar General and Census Commissioner's office showed. The new data is difficult to compare with previous years, because the 2011 Census covers all 4,041 statutory towns in India, as compared to 2001 when only statutory towns with population over 20,000 were covered. The 2001 data had set India's slum population at 15% of the total population. 
    The census counted slums notified under various acts, those recognized by governments but not notified, and those that were in no way accepted by state governments, but fit the definition of a slum. Housing and Urban Poverty Alleviation minister Ajay Maken said that the high proportion — over 37% — of slum households in this last, unrecognized, category was a serious problem, and committed to his ministry extending benefits like the Rajiv Awas Yojana to such slums too. "State governments are unwilling to admit to their being more slums in their cities because then they will have to provide these slums basic services like water and drainage," Maken said. 
    With the exception of sanitation, the indicators on housing amenities for slum and non-slum households in most of India are more similar than most would expect. Over 77% are permanent and 70% are owned, and not rented. Close to half are made up of just one room and most are home to one married couple. Over 70% of slum households get their water from a tap but just half get water inside their homes. Over 90% get electricity and most use LPG for cooking; 70% have a TV and 10% even a computer. The census data seems to indicate that the "more cellphones than toilets" line might be wrong for urban India: two out of three slum households have a toilet within the premises, while slightly fewer have a mobile phone. 
    More than one in five urban households in AP, Chhattisgarh, Madhya Pradesh, Odisha, West Bengal and Maharashtra lives in a slum. In absolute terms, Maharashtra has the highest number of slum blocks of any state – over 21,000 out of a total of just over 1lakh for the whole country. 
    Over a third of India's slum population lives in its 46 million-plus cities. Of the metros, Mumbai has the highest proportion of slum-dwelling households (41.3% of its population). Kolkata is next at nearly 30% with Chennai not far behind. Delhi has 14.6% of its households living in slums. Bangalore is best off of the five metros at less than 10%. 
    Among all million-plus cities, Vishakhapatnam has the highest proportion of slums (44.1% of households). However, Census authorities were treating with skepticism the unexplained spurt in slum populations across cities in AP.

Bees Saal Baad: SC gives Sanjay 5 yrs, Yakub death, spares 10 the gallows, puts Pak in dock Life Term For 33 In 1993 Mumbai Blasts Case

NewDelhi:Two decades after serial blasts maimed Mumbai, the Supreme Court on Thursday commuted to life term the death sentence of 10 persons convicted by the trial court for planting bombs as part of the first-ever coordinated terror attack that left 257 dead and 713 injured. The court upheld the death penalty for Yakub Abdul Razak Memon, the only one among the masterminds of the horrific terrorist crime—one of the deadliest internationally and the first one involving the use of RDX—who could be tried. 

    Pronouncing its final verdict in the terrorist atrocity, plotted as an extension of the communal violence that broke out in Mumbai in the wake of the Babri demolition in December 1992, the SC blamed Pakistan for encouraging and helping the terrorists. 
    In a unprecedentedly long judgment running into over 2,000 pages, a bench of Justices P Sathasivam and B S Chauhan said that while Yakub participated in the conspiracy with Tiger Memon and Dawood Ibrahim and deserved no leniency, the other 10, though responsible for placing explosive laden vehicles at several places, needed to be evaluated on a different plane as they belonged to the lower strata of society and were sucked into the conspiracy to be used as "arrows" by the mastermind "archers". 
    Of another 19 sentenced to life by the trial court, the apex court upheld the punishment for 17. Of the remaining two, the life sentence was reduced to 10 years imprisonment in one case, and to the period already served in the other. 
    Significantly, it allowed appeals of the Maharashtra police and enhanced the sentences of six accused to life term. The six are Uttam S Potdar, Issaq Mohd Hajwane, Sharif Abdul Gafoor, Manoj Kumar Bhanwarlal, Farooq Illiyas Motorwala and Mohd Rafiq Usman. This brought the number of those sentenced to life to 33. The court stressed that they will stay in jail for the rest of their lives. 
    The SC also confirmed the sentence of customs officials and policemen who facilitated the conspirators in return for bribes, and censured the Coast Guard for not being vigilant enough to block the shipments of arms and explosives that were used. Commenting on the enormity of the crime, the judges said, "This was the first-ever terror attack in the world where RDX (Research Department Explosives) was used on a large scale basis after World War II." 
END OF THE 
BEGINNING? 
Mar 12, 1993 | 13 places in then Bombay bombed in the space of 130 minutes; 257 killed, over 700 injured 
July 31, 2007 | Of 123 people tried, TADA court convicts 100; gives death to 12; life to 20, varying terms to remaining 68 
March 21, 2013 | SC confirms capital punishment for Yakub Memon, an organizer; commutes it to life for 10 planters; one passed away in between. Upholds 17 life sentences, reduces two and adds six 
THE CRIME ROLL 
    Yakub Abdul Razak Memon, brother of absconding accused Tiger Memon 
    The 10 planters | Zakir Hussain Shaikh, Abdul Khan, Firoz aka Akram Amani Malik, Mohd Mustaq Tarani, Asgar Yusuf Mukadam, Shahnawaz Qureshi, Mohd Shoeb Mohd Kasam Ghanasar, Abdul Gani Ismail Turk, Parvez Shaikh and Mohd Farooq Mohd Yusuf DIFFERENT YARDSTICK 
Holding that "sentence should directly reflect the role of the accused in the crime", court said Yakub deserved no leniency, while the 10 others were mere "arrows" used by mastermind "archers" 
STAR CROSSED 
    Court upheld conviction of Sanjay Dutt for possessing three AK-56 rifles and ammo which had been delivered at his Bandra residence by Abu Salem and others at the behest of Dawood Ibrahim's brother Anees in 1993 
    It also upheld 5-year sentence to Yusuf Nulwala and ordered release of Samir Hingora, who was sentenced to 9 years in jail TOP COURT RULING'Masterminds leading comfortable lives in Pak' 
    However, there were doubts that the verdict would bring closure to the victims, considering that the masterminds—underworld don Dawood Ibrahim, his brother Anees Ibrahim and Yakub Memon's brother Tiger Memon—have not been brought to justice. By all indications, the three are leading comfortable lives in Pakistan. 
    In fact, the sense that justice had not been done may only be reinforced by what Justices Sathasivam and Chauhan said to justify the use of different approaches towards "mastermind" Yakub on the one hand, and the 10 "pawns" on the other. "The sentence should directly reflect the role of the accused in the crime," the bench said. "These 10 parked explosivesfilled vehicles in the respective destinations. However, if we lift the veil, it is actually the mastermind's strategy, which was executed by the subservient minions... We contemplate that the ends of justice would be served if the death sentence of these 10 appellants be commuted to life imprisonment." 
    On Yakub, the bench said, "A perusal of the above confessions by the co-conspirators would show that the appellant was playing a key role in furtherance of the conspiracy. The evidence… (shows that Yakub) played an active role in the generation and management of funds for achieving the object behind the conspiracy and in subsequent events. 
    "Yakub left for Dubai on 11.03.1993 with an Indian passport and entered Pakistan with a Pakistani passport. Though he was not among the persons who carried the arms and ammunition used for the blast, it was he who stood behind them from starting till the end. 
    "We are satisfied that the prosecution has established all the charges leveled against Yakub and the designated court rightly convicted him." 
    The other 10 given the death sentence were Zakir Hussain Noor Mohd Shaikh, Abdul Khan aka Yakub Khan Akhtar Khan, Firoz aka Akram Amani Malik, Mohd Mustaq Moosa Tarani, Asgar Yusuf Mukadam, Shahnawaz Abdul Kadar Qureshi, Mohd Shoeb Mohd Kasam Ghanasar, Abdul Gani Ismail Turk, Parvez Nazir Ahmed Shaikh and Mohd Farooq Mohd Yusuf. 
    The bench was quick to add that lesser punishment to the co-accused would not be treated as a precedent. It also clarified that life sentence meant the convict has to spend the rest of his life in prison, subject to the pardoning and remission powers of the President or state governor. 
    Immediately after the demolition of the Babri Masjid on December 6, 1992, Tiger Memon and Dawood Ibrahim, then living in Dubai, planned a terror strike in Mumbai. Dawood sent arms and ammunition from abroad and it was received by Tiger Memon, who also sent some of the accused to Dubai and from there to Pakistan for training in the handling of arms and ammunition.

March 12, 1993 Shivaji Park

Income tax pinch lurks in Budget for realty deals in India

Mumbai: Forget about doling out sops to prospective flat buyers. The Central government has instead, in the Union budget for 2013-14, mooted tax proposals that could make property deals more expensive for buyers and sellers if the properties are 'undervalued' when stamp duty is paid. Furthermore, those who are gifted properties face an income tax .      Realty experts said the amendments to Section 56 of the I-T Act, as proposed by Union finance minister P Chidambaram, would be farreaching, especially in a metro like Mumbai.      If a property has been bought for Rs 80 lakh, but the ready reckoner (RR) rate is Rs 1crore, realty experts said the buyer would have to pay a 30%  income tax on Rs 20 lakh (the difference between Rs 1 crore and Rs 80 lakh). This would be in addition to the stamp duty. Furthermore, when capital gains tax is computed, the seller would have to pay the difference between Rs 1 crore and the rate he originally purchased the property at.      If a person receives a property as a gift and it is valued at Rs 1 crore when paying stamp duty, he would have to pay I-T on Rs 1 crore. 'Budget proposal would hit realty, amounts to double taxation'  Govt Trying To Crack Down On Undervaluing Of Property      The amendments would apply to all deals that involve a stamp duty of more than Rs 50,000. The tax on gifted properties would be applicable only when the gift doesn't come from close relatives.      The government has decided to treat the difference between the rate on which stamp duty is paid and the Ready Reckoner (RR) value as a "concession", say experts. They added that the government may be trying to gather into the tax net those who undervalue property to pay less stamp duty.      However, critics have urged the government to rethink the proposal. Property experts and tax consultants said the impact would hit cities like Mumbai, where RR rates are extremely high. More importantly, the government does not use a standard formula for computing property value.      For example, if a flat in a poorly maintained building is sold for Rs 8,000 per sq ft (psf), the RR rate could be Rs 10,000 psf. Though the sale in such case would be genuine, the government would consider the difference of Rs 2,000 psf as a 'concession' and levy an I-T on it. This is in addition to the stamp duty the buyer has already paid. That's not all. The seller, in turn, would have to pay a hefty capital gains (CG) tax. The 22% CG tax, incidentally, would be computed on the RR value of Rs 10,000 psf.      Pranay Vakil, chairman of Praron Consultancy Pvt Ltd, said the government does not seem to have thoroughly thought of the implications that the amendment could have on the real estate industry. "This amendment clearly forfeits the rights of a buyer and seller to get a good deal merely because their agreement value is less than the Ready Reckoner value. This could amount to double taxation. It is unjust and would only further stagnate the real estate market in the city," said Vakil.      "What is also unclear is that if at a future date the buyer decided to sell the property, what would be the rate for him to compute capital gains when selling. Would it be the price at which he purchased, or the Ready Reckoner value at the time of purchase? This would create confusion," Vakil added.      Incidentally, this is the second time in three years that the government has mooted this proposal to tax 'concessions' in immovable properties. The proposal was earlier mooted in the 2010 Finance Act, but later removed.      Echoing Vakil's view, senior advocate K K Ramani said, "The provision obviously is designed to prevent revenue leakage through the practice of under-reporting of sales in real estate transactions. But the government has erred in one aspect. If the price of a property is different from the stamp duty value, it is not always a case of underreporting. Property values are not standardized. The values depend on a number of factors that are generally not considered while determining the RR rate."      Rajesh Mehta, of Raha Realtors, claimed there were various high court judgments that have clearly said that RR rates were merely indicators and not the final values of property in any area. "The Centre, by basing tax computation on the RR rates, is confirming the irregular manner in which the state fixes property prices in a location. In addition to VAT, service tax and property tax, it would now become very difficult for individuals to shell out such huge sums as RR rates keep increasing at an average of 17% every year," said Mehta.      Experts said there is also a lack of clarity on how the amendments would apply to redeveloped buildings.

Worst not over yet for India, says OECD

New Delhi: There seems to be little respite from the economic downturn with the OECD, the Paris-based agency, saying that growth is slowing down in India. "In China, India and to a lesser degree in Brazil, the composite leading indicators (CLIs) point to growth below trend," the think-tank said in a statement. 

    Compared to the long-term trend of economic activity, which is put at 100, the Indian economy had a score of 97.2, the lowest level seen in the last five months. Compared to January 2012, the decline is of the order of 2.25%, the second worst among a group of 11 economies that includes Brics and the G-7. Only Russia put up a worse performance, with a fall of 2.8%. But OECD saidthat the CLI indicated a pick-up in growth, indicating that the worst was over.
    In India's case, the worst was not yet over with the CLI graph continuing to fall since 2011 after plateauing in 2010. In fact, OECD did not spot a turning point in the curve despite the finance ministry making a pronouncement over a month ago. 
    The finance ministry had contested the Central Statistical Office's estimate of the Indian economy expanding at 5% during 2012-13, the slowest pace of growth in a decade, and had suggested that the increase in economic activity would be of the order of 5.5%. North Block had based its assessment on three "turning points" but apart from an improved export performance, there has been little to cheer. 
    On the manufacturing front, car and truck sales, a key barometer of economic activity, are down. 
    Similarly, demand for white goods remains tepid. And, the slowdown in the manufacturing space has impacted the demand for services, as CSO had estimated. WB chief sees 6% growth next year 
NewDelhi:The Indian economy is likely to grow at a rate of 6% next year and probably more thereafter as exports markets start doing better, World Bank president Jim Yong Kim said on Monday. Kim, who is on a three-day India visit, met finance minister P Chidambaram here. 
    "Growth rate of 5% (projected for this fiscal) here is one that has been somewhat disappointing but we are very encouraged by what has happened and what will happen and we think India will get back to higher levels of growth," he said. The Indian economy is subject to global slowdown, he said, adding that "as export market starts doing better, we think India will do better as well". 
    Indian economy is estimated to have grown 5% in 2012-13. The Economic Survey of 2012-13 has predicted a growth rate of 6.1-6.7% for the next fiscal.
    In his meeting with the World Bank chief, Chidambaram underlined the need for enhancing the capital base of the World Bank to meet the challenges of poverty reduction and infrastructure development in the developing countries. AGENCIES

MUMBAI :Eastern Freeway to be completed today

Mumbai: The city's longest flyover, connecting the 9.29-km stretch from Orange Gate on P D'Mello Road to the Mahul creek salt pan between Anik and Chembur, will be completed on Saturday. It will also be the second largest flyover in the country, the largest being the one that connects Hyderabad airport to that city.      Still, the Eastern Freeway elevated road will be the longest such in an urban area in the country once the final concrete block is lifted and placed on Saturday afternoon. The bridge will have 313 pillars and 3,340 segments.      With the development, massive traffic decongestion on the eastern road corridor of the city will be achieved from May onwards, as the flyover forms part of an upcoming 17-km signal-free freeway. Mumbaikars would be able to enter and exit the road from eight points. While six pairs of ramps would become be operational in May, the remaining two will be opened to traffic in June at the earliest.      A 4.5-km mixed roadtunnel-flyover connectivity willcome about between Anik and Chembur; the freeway will offer Mumbaikars a much-awaited 20-minute road journey from CST to Chembur—the entry point there being at Panjarpol near R K Studios.      Thus, the 17-km freeway is divided in three parts: the 9.29-km elevated road, the 4.3-km road-tunnel-flyover and an elevated 2.5-km flyover from Panjarpol till the Mankhurd-Ghatkopar Link Road (MGLR) via Govandi.      "By May end, we will start the four-lane road up to Shivaji Chowk, Chembur, from CST, but for the last leg (till MGLR), we may need another one or two months," said a senior MMRDA official. "The second part of the freeway will be eight-laned to take traffic from four lanes of flyovers and four lanes of roads below. BRIDGING THE GAP: The Eastern Freeway elevated road will be the longest such in an urban area in the country, once its final concrete block is lifted and placed on Saturday afternoon

Indian cos may stop Iran oil imports

New Delhi: India is set to halt all crude imports from Iran because insurance companies in the country have said refineries processing the oil will no longer be covered due to Western sanctions, the head of refiner MRPL said on Friday. India is Iran's second-largest buyer, taking around a quarter of its oil exports worth around $1 billion a month.      "If cover is not available, all Indian refiners will have to halt imports from Iran or take a  huge risk," P P Upadhya, managing director of Mangalore Refinery and Petrochemicals Ltd, said. MRPL is India's biggest buyer of Iran crude. "Insurance companies said if I buy Iranian crude, my refinery's cover will be cancelled. If we do not get insurance for the refinery, we will stop buying Iranian crude." AGENCIES Stopping oil imports will hit Iran hard  New Delhi:Indian refiners are mulling a halt to Iran oil imports over insurance threat. It is unclear why the oil imports have become an issue now, several months after Europe and the US introduced tough sanctions aimed at Iran's oil trade to force Tehran to the negotiating table over its nuclear programme.      In a letter in January, the General Insurance Corporation of India told the General Insurance Council, an industry group, that it had "dawned" on insurers that cover and losses on processing the crude would not be payable by reinsurers due to the sanctions. A source at HPCL, a refiner that buys Iranian crude, also said imports were threatened by the insurance problems.      Oil being Iran's biggest income generator, a halt in sales to India will be a heavy blow. Sanctions more than halved the country's crude exports in 2012. In January, India imported over 286,000 barrels per day (bpd) of Iran's around 1.1 million bpd total exports. AGENCIES

India Inc gets more women in top mgmt Women’s Presence In Senior Positions Up Over 50% In ’12 As Cos Bridge Gender Gap

Mumbai: That India Inc has had an abysmally low representation of women at the top has been well chronicled over the years. But there is a bright spot emerging that gives hope. Women's presence in senior management roles has now crossed the double-digit mark, signalling the progress that they have made in the corporate world. 

    Given the needs of gender diversity in modern businesses, Indian companies during 2012 went all out to woo women for top roles. As a result, their share in senior management roles increased to 14% last year from 9% in 2011, an over 50% growth, reveals the findings of a study commissioned by TOI to global recruitment firm, Randstad. 
    It's expected to gather strength over the next few years as there is also a growing trend of more women appearing for CAT exams and business schools admitting more female students. 
    Chanda Kochhar, MD & CEO of ICICI Bank, finds the trend encouraging. "This increase has come out as a result of organizations becoming gender-neutral, realizing the benefit of diversity and because women themselves are taking charge and at the same time exuding more confidence." She feels even their presence on boards would increase over a period since it's a process of evolution. "With a substantial number of women at the entry level now, their presence in the middle management would also improve over a period and ultimately it would lead to some of them making it to the top." 
    Not all numbers are that heartening though. The study, which tracked the BSE 500 firms, reveals that only 3% of women hold top positions in executive committees in India Inc. Against this, the comparative figure is 10% in Europe and 14% in the US. This is despite the fact that organizations are implementing diversity programmes and focusing on getting more women into the workforce, so much so that head hunters are being paid more to get a suitable woman candidate. 
    "The increase in number of women leaders is a welcome trend. Typically, women tend to sacrifice their careers over family. This is the single biggest deterrent for Indian working women to scale the corporate ladder," says E Balaji, CEO, Randstad India. 
    The lack of women at the top rung is a fallout of fewer options being available for organizations to choose from as far as female talent 
goes. "The reason for the number of women in senior positions going up is reflective of the fact that Indian women have become more career minded, have more social support along with the climate and context being right for this growth in female participation in the workforce. We have to recognize that women themselves have done very well academically and professionally instead of crediting the affirmative actions being taken by organizations," says Santrupt Misra, director, group HR, Aditya Birla group. 
    Here's another woman CEO's perspective on why their representation is still low. Says Bala Deshpande, India MD of New Enterprise Associates, a private equity fund: "We have the ethos, we have the talent too. It is now a matter of igniting minds with the right type of education, inspiring through mentorship and encouraging a more expansive mindset about the role of women in our society." 
    The future appears bright. In 2010, around 53,732 women took the CAT exam and this number grew by 13.2% between 2010 and 2012. Overall, IIMs have around 15% female students, and in 2012 the percentage of women shortlisted at the top three IIMs went up to 23.3% from 15.96%. 
    Indian School of Business (ISB), on the other hand, has an impressive 28% women in its present class of 767 management students against a global average of around 35-45% at business schools like Harvard and Wharton. 
    "We have seen the number of women increase every year and what is even more encouraging is that the average age of these women is 27 years. This is indicative of a big change happening in the Indian society as many of them at that age face other pressures but still wade through everything and pursue an MBA," says Deepak Chandra, deputy dean of the ISB.

Moody’s: Worst over, GDP set for 6.2% growth in ’13

NewDelhi:The worst may be over for the Indian economy, with the December quarter likely the bottom of the economic cycle and a steady acceleration in growth expected in the coming year, Moody's Analytics said on Thursday. It will bring much-needed comfort to the government at a time the economy is battling the perception of an acute slowdown. 

    Moody's Analytics, which is an arm of global ratings agency Moody's Investors Service, has forecast economic growth in 2013 to be 6.2% against 5.1% in 2012. After presenting his 2013-14 Union Budget, finance minister P Chidambaram had forecast over 6% growth. Higher growth will translate into higher revenues and be a positive factor in taming the stubborn fiscal deficit. 
    The agency was more optimistic about the economy's growth prospects from next year which, analysts say, should also come as a morale booster for the Manmohan Singh government which has been on the back foot in recent months over its handling of the economy. 
Govt firm on arresting service tax evaders I gnoring protests from businessmen and a section of politicians, the Union finance ministry has decided to go ahead with the proposed amendments that will empower tax authorities to arrest those who collect service tax but do not deposit it with the government within the specified time. P 21 Over 7% growth to fuel inflation: Moody's 
New Delhi: Moody's Analytics has predicted a 6.2% growth in the Indian economy in 2013. "Our forecast from 2014 is for an economic growth of around 7%, which is India's new rate of trend growth. This is well short of the rate near 10% from a couple of years back," Glenn Levine, senior economist at Moody's Analytics, said in the report. 
    But he cautioned that policymakers should be careful while pushing for double-digit growth as this is wildly optimistic and without structural reform, a dangerous view to take. He cited the case of Reserve Bank of India governor D Subbarao's push for double-digit growth. Planning Commission deputy chairman Montek Singh Ahluwalia has also said the Indian economy can return to the 8% growth trajectory in the coming years on the back of favourable conditions. 
    "Headlong pursuit of double-digit GDP growth three years ago kept policy setting too loose for too long, causing the economy to overheat and contributing to the current problems of inflation and current account deficit," Levine said in his report. "Policymakers should end any pretense that the economy can grow at 10% without fanning inflation--it simply can't. Anything above 7% will lift inflation and result in a more painful future adjustment," the Moody's Analytics report said. 
    According to Levine, apart from stability in the global environment, the biggest change is that the government is now on a steady path of fiscal and regulatory reforms and better governance. "The so-called big bang of economic reforms announced since August has helped lift corporate confidence and should translate into better spending and capital expenditures from mid-2013," he said. 
    "Risks around the economy, particularly the fiscal and current account deficits, have begun to recede. Gains in financial markets reflect the rising expectations around the economy as well as lower risk," the Moody's Analytics senior economist added. 
    He said the 2013-14 Budget delivered the easiest and smallest cuts in the deficit, enough to free up funds to help the government's 2014 electoral prospects without fanning fiscal risk. The government has announced plans to continue with rolling back fuel subsidies, tax income of high net worth individuals and some luxury items as well as a modest asset sales programme. 
    "None of this is particularly prudent, and the Budget does nothing to fortify India's long-term growth. But it does suggest that government consumption, which slowed sharply in the fourth quarter, will accelerate in 2013, lifting GDP growth," Levine said.

BMC should recover demolition cost from encroachers: Court

PICKING UP THE TAB

Mumbai: The Bombay high court on Monday suggested that the BMC should recover from encroachers the costs it incurs for razing illegal structures. 

    "Why should the BMC bear the financial brunt of demolishing structures illegally built by someone," said a division bench of Justice A M Khanwilkar and Justice A P Bhangale, adding that it was no surprise that the corporation faced a financial crunch. "In cases where the owner or occupant of the illegal structure is identified, the cost of demolition should be recovered from them," they said. 
    The court asked the municipal commissioner to issue a circular to this effect. 
    The court was hearing a PIL filed by Awaaz Foundation against the construction of an illegal religious structure in a graveyard in Manori. The PIL claimed the structure had come up in violation of the CRZ rules. The BMC's lawyer said the structure was razed after the trust was issued a notice. The HC then asked the BMC whether it had recovered the demolition costs from the trust. The matter will be heard on April 4. 
    In 2012, in three cases, the HC had rapped the BMC for its approach towards illegal constructions. The HC had, in a petition, asked the BMC to set up a mechanism to redress complaints against encroachments. In another case, the HC had said there was no need for the BMC to wait for an FIR before taking action against illegal structures. It had warned government officials against creating "obstacles" for BMC officials over action against such structures. In a third case, the HC had said BMC can't "throw its hands up" if an illegal structure it has razed is rebuilt.