Growth at 7.1% due to demonetization effect, optimistic about current year growth at 8%

Real GDP growth at 7.1% at 2011-12 prices is in line with expectations vis-à-vis impact of demonetization on various sectors of the economy such as mining, manufacturing, construction and trade sectors, said Mr. Gopal Jiwarajka, President, PHD Chamber of Commerce and Industry.

 Growth in manufacturing sector has declined from 10.8% in 2015-16 to 7.9% in 2016-17; growth in construction sector declined from 5% in 2015-16 to 7.8% in 2016-17; growth in mining sector declined from 10.5% in 2015-16 to 1.8% in 2016-17 and growth in trade &services declined from 10.5% in 2015-16 to 7.8% in 2016-17.

 We look forward to a good GDP growth with three major positive developments taking place in the current year i.e positive effect of demonetization, implementation of GST and low inflationary expectations vis-à-vis IMD forecasts a good monsoon, said Mr. Jiwarajka

 Growth is expected to be at around 8% in 2017-18, he said

 The growth rate of agriculture and allied sector at 4.9% in 2016-17 is inspiring and we expect more reforms to come in the sector to strengthen the growth further in a sustainable trajectory, said Mr. Jiwarajka.

 Focus on food processing sector would help in creation of employment opportunities, increase in rural incomes and will boost the manufacturing growth, he added

 Reforms in the construction sector for ease of doing business would go a long way to improve India’s business environment, attract investments and to absorb unskilled, semiskilled and skilled workforce, said Mr. Gopal Jiwarajka.

GST to escalate GSDP growth of Punjab, Haryana, Himachal to the ext level: PHD Chamber

The northern states viz. Punjab, Haryana and Himachal will see a major escalation in their GSDP growth rates with the implementation of GST as the inter-state purchases would see a significant decline of 5-6 percent in the prices of their raw materials and finished goods, said Mr. Gopal Jiwarajka, President, PHD Chamber of Commerce and Industry in a press statement issued here today.

The implementation of GST would remove cascading impact of taxes and levies on their inter-state purchases and would enhance their respective GSDPs by 2-3 percentage points. GST will reduce the barriers between these states and will make the country a common market. A wider tax base and better compliance will boost overall economic growth of the country, he said.

Though predominantly Punjab, Haryana and Himachal Pradesh are agrarian in nature, but the industrial sector in the states has also emerged as a significant contributor in their economic and social development, he said.

But all these three States have increasingly focused on industrial activity and have enhanced the industrial significance in their growth models for creating employment, he added.

                                       

Now these States play a pivotal role in the industrial development and manufacturing activity, said Mr. Jiwarajka.

The share of Haryana in India’s GSDP (combined GSDP of all the States in India) stands at 3.5%, followed by Punjab at 2.9% and Himachal Pradesh at 0.8%. The share of industry (secondary sector) in state’s GSDP of Himachal Pradesh stands at about 41% , followed by Haryana at 29%, and Punjab at about 21%. The combined GSDP of Haryana, Himachal Pradesh and Punjab in India’s GSDP (combined GSDP of all the States in India) stands at 7.4%.

Today, these states offer favorable environment for attracting industrial investments through investor friendly policies and better infrastructural support, he said.

These states are now on their way to rapid industrialization through coordinated development of Small, Medium and Large scale enterprises, he said.

These States are dismantling barriers in markets for land, labour, infrastructure etc and contribute in a massive way to help manufacturing sector achieve greater heights, he added. 

For improvement in the ease of doing in the state, the state government must come forward for reforming labour laws in order to implement minimum and uniformity across the States. Implementation of reforms would also enhance the level of labour productivity. The current laws make acquisition costly as well as tedious.

A robust land acquisition policy would make availability of land much easier. Since land is the state subject, states should ensure the adequate availability of land in terms of land banks. Additionally an attractive relief and rehabilitation package is essential for investment in infrastructure and manufacturing. 

Further, the current overall cost of setting up business in the states is very high which discourages the industries as the Profit After Tax (PAT) obtained by industries becomes low. Thereby, states should focus on reducing infrastructure and logistics costs to reduce the transactional cost faced by industries, said Mr. Gopal Jiwarajka.

At the socio economic front, these states have taken effective measures towards the implementation of reforms in healthcare, education and in other indicators such as reducing poverty and creating employment, he said. 

We recommend setting up of 1 good vocational training centre in the radius of every 25 kms across the states to generate employment opportunities for the young population, he added.

Further, we recommend setting up of 1 good hospital with state of the art infrastructure in the radius of every 25 kms across the states for addressing the healthcare needs in the state, said Mr. Jiwarajka. 

The state of Punjab endowed with rich culture, tradition and religion is predominantly an agrarian state and has been accorded with the status of Granary of India. 

The real Gross State Domestic Product (GSDP) of the state has increased from Rs. 112997 crores in FY2007 to Rs 331940 crores in FY2016. However, the growth rate of real GSDP has been declined to around 6% in FY2016 from 10% in FY2007.

Revistalisation of sectoral growth coupled with diversified economic base and conducive industrial environment with a special focus on the growth of MSMEs would go a long way to absorb large proportion of unskilled, semiskilled and skilled workforce and push the economic growth trajectory on high road.

We have prepared a roadmap to achieve an 11% growth rate in the economy and to generate 2 million new employment opportunities by 2020.

We will be releasing the details tomorrow under the leadership of Hon’ble Chief Minister of Punjab, concluded Mr. Jiwarajka.

EXTEND JAN DHAN MODEL TO MUTUAL FUND INDUSTRY FOR ITS GROWTH: MD & CEO, BSE

A time has ripened for Jan Dhan Model to be extended for mutual fund industry as a suitable regulatory measure to enlarge and broad base its size both in terms of subscription and volumes for overall expansion and growth of mutual fund industry, according to Managing Director & CEO, BSE Ltd., Mr. Ashish Kumar Chauhan.

Addressing a Conclave on “Mutual Fund Industry – Overview & Evolution” under aegis of PHD Chamber of Commerce and Industry here today, Mr. Chauhan highlighted that just as with the launch of Jan Dhan Yojana, the banking system could open up 25 crores of additional accounts, enlisting participation of poorer masses in banks, a similar initiative is called for mutual fund industry also.

“This would multiply the participation of common masses into mutual fund industry for more positive gains from currently estimated  number of people of close to two crore with its total financial size, currently pegged at Rs.20 lakh crores”, emphasized Mr. Chauhan.

According to him, if the Jan Dhan Model is extended to mutual fund industry without any delay, just as the nation witnessed an anticipated progress on its financial closure angle, similar yield would also be noticed in mutual fund industry with its growth and volume multiplying manifold.

He, however, advised the novice and gullible investors to cautiously park their surpluses in mutual funds and other similar portfolios of equity market by intelligently weighing its pros and corns for higher and better returns as also called upon the participants of mutual funds industry to be fairer with investors while allocating mutual funds to them.

In his welcome remarks, President, PHD Chamber, Mr. Gopal Jiwarajka also advised the investors to be innovative while making their investments in mutual funds even though mutual fund industry has been offering quite a handsome return these days and hoped that the trend would continue.

Chairman, Capital Market Committee, PHD Chamber, Mr. D K Aggarwal in his observations felt that well managed mutual funds are the best portfolios for investors as compared to other savings channels in banks and other traditional avenues.

Among others who spoke on the occasion highlighting the remunerative returns relating to mutual funds comprised Regional Director North, SEBI, Mr. Amit Pradhan; Equity Fund Manager, LIC Mutual Fund, Mr. Sachin Relekar; Managing Director, Taurus Mutual fund, Mr. R K Gupta; Equity Fund Manager, Sundaram Mutual Fund, Mr. Rahul Baijal; Chairman-Northern Region, Association of National Exchanges Members of India, Mr. Narinder Wadhwa and Co-Chairman, Capital Market Committee, PHD Chamber, Mr. B K Sabharwal.​

DELHI WILL BE A CITY OF LOWEST LOCAL TAX SLABS WITH BJP RETURNING TO POWER IN 2018: MANOJ TIWARI

President, Delhi Pradesh, BJP & Member of Parliament, Mr. Manoj Tiwari on Wednesday predicted, claiming that with BJP returning to power in Delhi in 2018, would make the capital city a living tax heavens for its dwellers as the tax slabs in it would be the lowest in the country.

Addressing the Managing Committee Members of PHD Chamber of Commerce and Industry here today, Mr. Tiwari also promised access to tap water to all Jhuggi and slum clusters to give them at least a few of basic amenities.

 “In the meanwhile, the municipalities in Delhi are gearing up not to seal the dwelling units that have recently come up with full construction as it has happened with full notice of the authorities concerned following its recent victory in the municipal elections”, disclosed Mr. Tiwari indicating that a decision to this effect has already been taken at higher political level.  Its implementation would be forthcoming, he added.

On a promise for making Delhi, the city of lowest tax slabs after it captures power in 2018, Mr. Tiwari said that Delhi deserved this treatment for its all-round development and minimize the inconveniences for its people.

 The residential units that have already come up in and around Delhi with investments of their owners would not be allowed to be sealed as such a construction has taken place in  full public view and the authorities, therefore, cannot serve the sealing warrant, this arrangements is coming up very shortly.

According to him, the municipalities in Delhi are also working harder to completely digitalize all their operations so that little physical interactions happens between authorities and the delhites.

The meeting was presided over by the President, PHD Chamber, Mr. Gopal Jiwarajka, assisting him in the chair were its Sr. Vice President, Vice President, Immediate former President and Secretary General, Mr. Anil Khaitan, Mr. Rajeev Talwar, Dr. Mahesh Gupta and Mr. Saurabh Sanyal.

A NEW ECONOMIC MODEL NEEDED FOR GROWTH TO BE INCLUSIVE, CHAIRMAN EMERITUS, FORTIS HEALTHCARE

Mentor & Chairman Emeritus, Fortis Healthcare Limited, Mr. Harpal Singh on Tuesday called for an economic model that can ensure the equitable growth for the people of India as so long as such a model is missing, equity in growth will also miss out.

Participating in an Interactive Session on Ethics Beyond Business under aegis of PHD Chamber’s Young Business Leader Forum here today, Mr. Singh emphasized that three factors will determine the sustainability of modern business namely technology, globalization and climate change and therefore, the businesses that respond to the challenges arising from the trio will sustain and grow and the rest disappear.

According to him, the economic models that we followed in the past have not adequately served on growth as its trickle down has not been inclusive and stay put exclusive as a result one per cent of select Indian wealthy controlled 37% of its wealth a decade ago which went up to an extent of 53% as of now.

If we reduce this percentage even by 15-18%, India could bring out close to 90 million of its populace above the poverty line which could be possible with an economic model that can make sure equity and equitable distribution of wealth, he emphasized exuding hopes that the present government which has such a massive mandate to put in place the suggested model so that the growth moves from being exclusive to inclusive.

Technology, globalization and climate change would issues that India and modern businesses would have to address in an effective manner and that those have begun to prepare for them will survive and sustain their operations with keeping their antenna up and eyes and energies agile.

The interactive session was presided over by the Sr. Vice President, PHD Chamber, Mr. Anil Khaitan who stressed on adherence to ethics without which the modern businesses will begin to dwindle.

PHD Chamber recommends “An Umbrella Body for Logistics Sector”

PHD Chamber of Commerce and Industry today organised a very successful conference titled “Need for Umbrella Body in Logistics Sector” at New Delhi. It was attended by more than 100 delegates from the logistics Industry and other stakeholders.

In spite of  the positive economic outlook in the country, the logistics cost in India is quite high as compare to the developed countries about 13-14% of India’s GDP and estimates too indicate that the country’s inefficient supply chain results in an approximately $65 billion loss per year.

To reduce this logistic cost & to minimize this wastage, captains of the logistics industry who were present during the conference in a one go suggested that there is an ardent need for an integrated logistics policy in the country and an umbrella body which can look at all the aspects related to logistics covering various modes of shipment such as sea, roads and railways. Exporters too have demanded for a specific department to deal with the issues related to logistics.

The conference was addressed by various eminent speakers both from both the govt. and private sector who deliberated on the need to create a single authority for the logistics sector also discussed the way forward against the backdrop of GST.

GOVT. APPROVAL ON CARDS FOR 3RD PHASE OF 85,000 ARMED FORCES DWELLING UNITS, SECONDARY STEEL PRODUCERS COULD SELL THEIR STEEL FOR SUCH HOUSING UNDER GOVT. GUIDELINES: DGMAP

Directorate General of Married Accommodation Project (DGMAP) will shortly begin its third phase for constructing 85,000 dwelling units for all ranks of armed forces at pan India level in close partnership with private builders and consultants with an investment of Rs.25,000 crores, in which steel supplies could also be sourced from secondary steel producers, disclosed its DG-MAP, Maj. Gen. Sanjeev Jain.

Addressing a Conference on Infrastructure Status to Affordable Housing- A Game Changer under aegis of PHD Chamber of Commerce and Industry here today, Mr. Jain, however, informed that a cabinet note to this effect could be moved very soon for seeking necessary government’s approval for the job.

He hoped that with this cabinet approval forthcoming soon, the MAP with concerned stakeholders would be able to begin constructing such dwelling units in next few months with all necessary permissions in its possession.

Maj. Gen. Jain also informed that MAP would offer rewarding conditions for its house building builders who promise timely delivery with quality par excellence and accordingly be incentivised with 10% mobilizing advance amount of the total cost of the project with an interest element not exceeding 8%.

“The first phase of construction of dwelling units for armed forces have already been completed with 60,000 units.   In the second phase the MAP would build close to 70,000 houses of which construction of 40,000 houses have also been completed and the remaining 30,000 such houses would be completed by next year”, said Maj. Gen. Jain.

In the third phase in which MAP would build 85,000 dwelling units, it could permit the use of steel from secondary steel producers as per guidelines enunciated by the government with their primary steel manufacturers, explained Maj. Gen. Jain.

Speaking on the occasion, Executive Director, National Housing Bank, Dr. A K Tripathi emphasised that with conferment of infrastructure status on affordable housing, opportunities have arisen for institutions like EPFO and insurance companies to earmark a handsome chunk of their funds for long term infrastructure projects and affordable housing is being one such in their scheme of things.

The conference was presided over by Sr. Vice President, PHD Chamber, Mr. Anil Khaitan in which Co-Chairman, Housing & Urban Development Committee, PHD Chamber, Mr. Anuj Khanna including its Director, Dr. Ranjeet Mehta were present.

JUSTICE SIKRI SEEKS INSTITUTIONAL SUPPORT FOR ARBITRATION CENTRES AT PHD CHAMBER

Justice A K Sikri, Judge, Supreme Court of India on Monday emphasised the need for having a robust Arbitration, Mediation and Conciliation Centre with support from government, judiciary and other stakeholders to make the Centre effective and meaningful to accomplish the intended purpose of disputes resolution.

Launching the PHD Chamber’s Arbitration, Mediation and Conciliation Centre here today, Justice Sikri pointed out that hundreds of such centres exist worldwide though, the PHD Chamber should aim to make this centre acquire an international standard.

In his observations, Justice S Ravindra Bhat, Judge, High Court of Delhi emphasized that the PHD led Arbitration, Mediation and Conciliation Centre should have professionals, chartered accountants and legal luminaries that are active, proficient and effective in their delivery.  Justice Bhat made several recommendations on how the centre could be run to build credibility and expertise.

Both Justice Sikri and Justice Bhat emphasized the importance of making mediation mandatory prior to commercial arbitrations.

In their remarks, President, PHD Chamber, Mr. Gopal Jiwarajka including and its Sr. Vice President, Mr. Anil Khaitan jointly sought that the mechanism of arbitration and mediation in the Chamber would be able to provide for cost and time effective dispute resolution as both these matter a great deal for industry, especially in the MSME segment.

Among others who spoke on the occasion were Dr. Aman Hingorani; Advocate, and Mediator, Supreme Court of India; Mr. Kirit S Javali; Advocate; Ms. Priya Hingorani, Chairperson of Taskforce on Arbitration, Mediation and Conciliation Centre, PHD Chamber and Secretary General of the Chamber, Mr. Saurabh Sanyal.