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Assocham: Country’s economy to improve within six months

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Economy of India
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New Delhi: According to Assocham Bizcon Survey, the state of country’s economy would improve in the coming six months but investments in the private sector will still be a concern because of under utilisation and pressure on profit margins.

Nearly 63 per cent of the poll respondents felt “the state of the economy would be better in the coming six months”.

However, it found that lack of investment appetite in the private sector in the backdrop of lower capacity utilisation, excess supply and continuous pressure on profitability are the key areas of concern for the next few quarters.

In terms of the domestic investment, 58.3 per cent respondents felt there has been no change in the investment plans at the level of individual firms.

The sentiment seems to remain muted, going forward with 62.5 per cent respondents of the view that January to March 2016 quarter would not see much change in the investment levels.

“Thus, there seems to be a continuing lack of appetite for new investment in the private sector,” the survey noted.

Assocham Secretary General D S Rawat shared the concerns brought out by the respondents in terms of pressure on profitability and lack of investment.

“Global deflationary situation creeping into India in several sectors is hitting investor sentiment. The consumer confidence can return only if there are more job opportunities through higher investment into productive areas of the economy like construction, infrastructure and manufacturing.

“The lead has to be taken by the government which has an onerous task before itself along financial sector regulators like RBI and SEBI to ensure investor confidence in the markets which can then feed the investment climate,” Rawat said.

The respondents seem to be highly optimistic with regards to their firm’s future performance as 70.8 per cent of them feel that they will be in a better position in the coming six months.

As many as 41.7 per cent of respondents felt that there is a decline in the sales volume during October to December 2015 while expecting better sales volume during January to March 2016 and 45.8 per cent expect that their sales volume will increase in future.

In terms of the future capacity utilisation, 66.7 per cent said the industry will be engaged at higher levels.

Besides, 54.2 per cent said there was no change in the cost of credit during October to December 2015.

“This is slightly surprising considering the fact that the monetary authority has reduced the policy rates. The possible explanation to this could be that the benefit of the rate cuts is not being passed onto the industry appropriately,” Assocham said.(IANS)(image: internetblog.urg.uk)

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The Institution Of Governors to Play Crucial Role: Modi

Governors could leverage their experience in different walks of life

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The Institution Of Governors to Play Crucial Role: Modi
The Institution Of Governors to Play Crucial Role: Modi, flickr

Prime Minister Narendra Modi said on Monday the Governors had a crucial role to play within the constitutional framework and they could ensure better implementation of the central schemes for the benefit of a larger section of the population.

Addressing the opening session of the 49th Conference of Governors at the Rashtrapati Bhavan, Modi said the Governors could leverage their experience in different walks of life to ensure people get the maximum benefit of various central development schemes and initiatives.

The institution of Governor had a “pivotal role to play within the federal structure and Constitutional framework of our country”, he said.

The Prime Minister said Governors of states with significant tribal population can help in ensuring financial inclusion of the tribal communities as well as in facilitating various government initiatives in fields such as education, sports and others to reach them.

This was in consonance with the message given by President Ram Nath Kovind earlier who asked the Governors to use their position in bringing about changes in the lives of those marginalised and enhancing higher education standards in the country.

Prime Minister Narendra Modi along with mayor
Prime Minister Narendra Modi along with mayor, flickr

The Prime Minister mentioned some key themes of development such as the National Nutrition Mission, electrification of villages and development parameters in the aspirational districts. He suggested that Governors could visit a few recently electrified villages to witness first-hand the benefits of electrification.

Noting that the Governors were also the Chancellors of state universities, he said they could help ensure that admissions, appointments, examinations and convocations were on time.

He said that International Yoga Day on June 21 could be utilized as an opportunity to generate greater awareness about yoga among the youth and the universities could also become the focal point for the celebrations for Mahatma Gandhi’s 150th anniversary.

Modi suggested that planning for the 50th Governors’ Conference next year should begin immediately. This effort should focus on making this annual event even more productive.

Earlier, in his inaugural address at the Conference, Kovind observed that the Governor was “a mentor and guide to the state and an important link in the federal structure”.

“As per the Constitution, the post of Governor has an exalted place in the scheme of governance. The Governor is a mentor and guide to the state and an important link in the federal structure.

“The people of the state view the office of the Governor and the Raj Bhavan as a fount of ideals and values,” he told the Governors and Lt Governors.

He said the Governors could help in shaping the roadmap for the betterment of lives of the citizens who have not benefited “as much as expected from our development journey”.

The central focus for this year’s conference is to sensitise the attending state heads to the programmes being implemented for citizens who have been left behind in the country’s developmental journey.

The two-day meet will discuss important issues including flagship programmes, internal security, higher education, skill development, steps taken on the report of Committee of Governors set up during the 48th Conference and commemoration of the 150th birth anniversary of Mahatma Gandhi.

It will also discuss schemes being run in the 115 aspirational districts across the country to help Governors better understand and enable them to guide the stakeholders in the welfare schemes for the poor, women, Dalits and tribals, farmers and young people, said Kovind.

“There are approximately 100 million people in our country who belong to the Scheduled Tribes. A majority of this population lives in regions that are covered under the Constitution’s Fifth and Sixth Schedule,” he said about the people who need support.

Also read: Modi visits Malaysian Prime minister

Apart from the Governors and Lt Governors of all states and Union Territories, Vice President M. Venkaiah Naidu, various Union Ministers besides the NITI Aayog CEO and other senior officials were also at the meet. (IANS)