August 26 Pages 27-48

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Indo American News • Friday, August 26, 2011

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India Plans Manufacturing Policy to Boost Job Creation NEW DELHI (ET): India aims to sharply crank up its manufacturing base to help provide jobs to 100 million young people who will join the workforce by 2025, a minister said Friday. “About 100 million young people will enter the job market and emphasis on manufacturing is the critical part of creating

twice the number of jobs added to the economy between 2005 and 2010, adding job creation had not kept pace with growth in gross domestic product (GDP). “GDP growth increased to 8.6 percent during 2005-10 from six percent during 2000-05, but the net addition to jobs remained almost flat at around 27 million during

India has a population of 6 billion plus, more jobs are needed.

employment for them,” Commerce Minister Anand Sharma said. The “National Manufacturing Policy”, to be unveiled in a few weeks, plans to boost the share of manufacturing in the country’s economy to 25 percent from a current 15 to 16 percent, Sharma said. The proposals will include a policy aiming for creation of world class manufacturing infrastructure by setting up special manufacturing zones, Sharma said. India’s Crisil Research, a private research house, said in a report earlier in the week the country needs to generate at least 55 million new jobs by 2015 to maintain current levels of employment in the country of 1.2 billion people. Crisil noted this would be nearly

the two time periods,” chief Crisil economist Dharmakirti Joshi said. India’s government has been seeking to promote industrial expansion and shift its economy away from service-sector led growth to create jobs. Services including the flagship outsourcing sector account for 55 percent of India’s GDP but provide only 25 percent of jobs while agriculture represents 15 percent of the economy but nearly 60 percent of employment. Such factors as restrictive labour laws, poor supply chains, bureaucratic red-tape, dilapidated infrastructure and land acquisition problems have held back growth in the manufacturing sector. The country also suffers from a major vocational skills shortage.

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Manmohan Singh Says 9 Pct growth in 12th Five-Year Possible, but With Fiscal Correction NEW DELHI (NTI): The Prime M i n i s t e r, D r. Manmohan Singh, on Saturday said achieving nine percent growth during the 12th five-yearplan period (201217) would require large investments in infrastructure development as well as appropriate fiscal corrections in the Indian economy. Delivering an opening statement at the start of a full planning commission meeting here today, L-R: Lee Myung-Bak, Nicolas Sarkozy, Luiz Inacio Lula Da Silva, Gordon Brown, Dr. Singh, referring to Cristina Fernandez de Kirchner, Taro Aso, Angela Merkel, Mario Draghi, Dmitry the Approach Paper Medvedev, Kgalema Motlanthe, Silvio Berlusconi, Jose Luis Rodriguez Zapatero, on the 12th five-year- Tayyip Erdogan, Manmohan Singh, Dominique Strauss-Kahn, Felipe Calderon, Kevin Rudd, Susilo Bambang Yudhoyono, Ban Ki Moon, Jose Manuel Barroso, plan, said: “Achieving Jan Peter Balkenende, George W Bush, Hu Jintao, Robert Zoellick, Stephen nine percent growth Harper, Abdullah II of Jordan. will require large to both these components so that Mukherjee), even if this means investments in infrastructure sector development. present infrastructure shortages can that total resources available for the The Approach Paper notes that be addressed in the shortest time plan in the short run will be limited. Resource limitations imply the need we have been fairly successful available. He added: “The Planning to prioritise carefully. Some priority in the eleventh Plan in using a Commission has rightly endorsed areas, e.g., health, education and combination of public investment and Public Private Partnerships the importance of the process infrastructure will have to be funded for infrastructure development. We of fiscal correction announced CONTINUED ON PAGE 28 need to bring greater momentum by the Finance Minister (Pranab

Rupay Card Launch by Fiscal End: NPCI

NEW DELHI (IE): Nearly a year after the soft launch as a limitedservice debit card, the Rupay Card, which is the domestically developed equivalent of the Visas and MasterCards of the world, will offer full-service debit card services by the end of this fiscal. “We hope to commercially launch the Rupay Card before the end of this fiscal. We will be equipped to offer full service debit cards to our mainstream partner banks by February or March next,” National Payments Corporation of India (NPCI) MD and Chief Executive

Abhaya Prasad Hota said. “By then, we hope to integrate our software with the nearly 4.5 lakh merchant terminals across the country,” he said. NPCI, set up by the Reserve Bank, has developed the Rupay Card in April. In 2009, RBI had asked the Indian Banks Association to launch a notfor-profit company and design a rival card to Visa and MasterCard. China has already developed a similar card called the Union Pay of China.

The Rupay card is set to replace the visa card for performing debit services. The card will be linked to major banks in about a year. The software linked to this card will act 4.5 lakh terminals throughout the country

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