Major News and Events of 01 July 2015
What Happened on 01 July 2015
CEO of Airbus Defence and Space Conveys PM Modi about the company's "Make in India" Plans
PM Modi Launches Digital India Today
PM Modi meets Industry Leaders, Hears their woes
Digvijaya Singh seeks CBI Inquiry into Mysterious Vyapam Scam under Supreme Court Supervision
Supreme Court takes Strong stand against Mediation in Rape Cases
Moody's Investor Service shows Concerns on India's Slow Pace of Reform
Manufacturing PMI of India Weakens in June'15
Indian Women's Hockey Team Thrashed by Netherlands in the Quarters of Hockey World League
Grandmaster Abhijeet Gupta wins Commonwealth Chess Championship
Roadmap for Ending Corporate Tax Exemptions to be presented by Government in 45 Days
Indian bourses today not only held ground with Greece accepting bailout conditions set by its creditors but also increased considerably. While Sensex closed at 28020.87 points (an increase of 240.04 points or 0.86 per cent), Nifty closed at 8453.05 (an increase of 84.55 points or 1.01 per cent). Analysts say that market today witnessed broad-based buying. Buying interests were witnessed, especially in auto, realty, power, IT, and capital goods sectors. These indices in BSE increased anywhere from 1.3 to 1.7 per cent. Small caps as well as mid caps advanced by 1.4 and 1.3 per cent respectively. Biggest gainers today are Ambuja Cements, BHEL, Yes Bank, Cipla, Axis Bank, Tata Motors, HCL Technologies, UltraTech Cement, and Power Grid. Greek PM Alexis Tsipras has conveyed in writing to the international creditors that Greece can accept their last minute bailout plan, provided some conditions are changed.
CEO of Airbus Defence and Space, Bernhard Gerwert, met Prime Minister Narendra Modi and conveyed his company’s plan of becoming a part of “Make in India” initiative. Statement issued by Prime Minister's Office said that Gerwert expressed interest in following a cluster approach with regional partners in an effort to become a partner in “Make in India” initiative. The PMO statement also said that Prime Minister Modi welcomed interest shown by Bernhard Gerwert in the ambitious “Make in India” programme. While talking to the media, Airbus CEO said that PM Modi’s visit to France’s Airbus manufacturing unit in Toulouse enhanced their interest and also created positive atmosphere. Airbus Group has already started consolidating its operation in India, as per its new strategy, and brought all the Indian operations under Airbus Group India Private Limited. This is the first ever such move outside France by Airbus Group.
Science and Technology
Prime Minister Narendra Modi today launched the ambitious Digital India project, which aims at connecting more than 2.5 lakh Indian villages with broadband Internet services. Besides the political heavyweights, industrial bigwigs such as RIL Chairman Mukesh Ambani, Cyrus Mistry of Tata Group, Gautam Adani of Adani Group, Bharti Group’s Sunil Bharti Mittal, Kumaramangalam Birla of Aditya Birla Group, and others also attended the event. Reports say that ‘the Information for all scheme’ aims to provide internet services just like PCOs. This grand Digital India programme is expected to see around Rs. 1,13,000 crore investment. The programme was attended by around ten thousand dignitaries and the projects announced by the CM include e-health, e-education, and Digital Locker. While Mukesh Ambani announced investment to the tune of around Rs 2.5 lakh crore, Tata Group Chairman Cyrus Mistry committed his group’s wholehearted participation.
Prime Minister Narendra Modi met business delegations from the Federation of Indian Chambers of Commerce and Industry (FICCI) and Confederation of Indian Industry (CII) separately and listened to the woes of business leaders. The most common problems the business leaders conveyed are lack of ease-of-doing business, high capital cost, lack of transparency in matters of taxation, and others. The FICCI delegation conveyed to PM Modi that investment in India is not increasing due to barriers faced by medium and small companies, poor growth of credit, and high capital cost. PMO statement said that the industry bodies appreciated last one year’s performance (including steps undertaken for ease of doing business) of Narendra Modi government. During Modi’s meeting with CII, he asked industries to become technologically self reliant and invest in “make in India” to create jobs.
Digvijaya Singh, General Secretary of Congress, has filed a petition in Supreme Court where he sought investigation of Madhya Pradesh’s mysterious Vyapam scam by Central Bureau of Investigation (CBI) under the supervision of apex court. The move comes after submission of SIT report said that 44 persons involved in the scam were found dead, either due to heart attack or “unnatural” circumstances, during investigation. Congress upped ante against Madhya Pradesh government after unnatural death of Mhow’s veterinary student Amit Sagar, 44th person involved in the case, was reported recently. Most high-profile death in Vyapam scam case is that of Shailesh Yadav, son of Ram Naresh Yadav (MP Governor as well as former CM of Uttar Pradesh). 50-year-old Shailesh was found in Lucknow’s residence of Ram Naresh Yadav. Congress alleged that Madhya Pradesh CM Shivraj Singh Chauhan is also involved in the case.
A week after a Madras High Court judge Justice D Devdass granted bail to a rapist for arranging mediation session with the victim, Supreme Court today described HC’s order as "a spectacular error" that is against dignity of women. While giving the verdict, the Madras HC judge gave reference to another verdict given by him where he claimed that a happy conclusion was reached between the rapist and victim. However, in this case the victim, who became pregnant due to the rape and also delivered a girl child, has reportedly refused any kind of mediation with the assaulter. In the judgement SC bench headed by Justice Dipak Misra observed that a compromise in case of rape, in the name of marriage, compromises woman’s dignity. Misra also said that promotion of such settlement between rapist and the victim lacks sensitivity.
Moody’s Investor Service has said in its 'Inside India' report that economic growth prospect of India is relatively optimistic and is expected to fulfill Moody’s 7.5 per cent baseline growth rate expansion forecast for current financial year. India’s projection is highest among G20 countries and it adequately supports “Baa3 sovereign rating and positive outlook”. Moody’s upgraded its sovereign rating outlook on India from “stable” to “positive”. However, the latest report of Moody’s points out that in a poll conducted by it that majority of the respondents had “some disappointment” on the slower pace of reforms and were worried about policy stagnation. Moody's said that around 50 per cent of the poll respondents said that the greatest risk to macroeconomic story of India is sluggish reform momentum. However, it pointed out that full result of growth-enhancing reforms will be visible over multi-year horizon.
Nikkei manufacturing Purchasing Managers’ Index for the month of June 2015 shows that in relation to May 2015, PMI has slipped from 52.6 to 51.3. However, it stayed above the 50 point mark, which separates contraction (below 50) from growth (above 50). Economist at Markit (which compiles Nikkei PMI data) Pollyanna De Lima said that during India’s economic revival, month of June witnessed a slowdown in rate of growth in its manufacturing sector. Most importantly, the pace of growth of new businesses were particularly slow and one of the reason being “loss of momentum in export business”. Lima added that manufacturers were particularly cautious and the employment numbers remained “unchanged once again”. Subdued manufacturing growth in June’15 was attributed to slower pace in filling up of factories’ order books. De Lima has said that loosening cycle of RBI is expected to continue because of slower price rise.
Indian women’s hockey team has been humiliated by Netherlands in Hockey World League’s quarter final match as the latter cruised to the semifinals by defeating the former 7-0 at HC Dragons Stadium. Dutch girls’ fast paced attack scattered the Indian defence. Out of the seven goals scored by Netherlands’s women’s hockey team, three penalty corners were converted to goal by Caia van Maasakker and two by Lidewij Walten. Other two who scored are Naomi van As and Ginella Zarbo. World Number 13 Indian women’s team was no match before the Olympic title holder Netherlands. India was successful in breaching the Dutch defence in handful of cases only and was in the position to score just twice, when they received two penalty corners. While Netherlands will play against Australia in the semis, India will fight it out with Italy for 5th to 8th classification spots.
Grandmaster Abhijeet Gupta, who is also a former world junior champion, has clinched Commonwealth Chess Championship after he settled for a draw in the 9th and final round of the match against Arghyadip Das. Abhijeet regained the crown after securing wins in first seven games and draw in two games afterwards. After winning the championship, Gupta told media that it is one of his best performances in any international game as he won seven games in a row. He also said that the toughest game in the tournament was winning the 7th game against Deep Sengupta but he was pleasantly surprised to find Sengupta not quite prepared. The second position was won by Arghyadip Das, followed by M R Lalith Babu for third position. In women’s leg of the tournament, first three positions are held by Padmini Rout, S Vijayalakshmi and S Meenakshi respectively.
Shaktikanta Das, Revenue Secretary, said that Union Government is all set to unveil a roadmap in coming 45 days to end corporate tax exemptions. He also said that the roadmap will lead to lowering of tax rate to 25 per cent in four years time. Das, while making this statement also added that all the preparatory arrangements have been done for implementing Goods and Services Tax (GST) from April 1, 2016. During annual budget placement in February 2015, Union Finance Minister Arun Jaitley also said that corporate tax will be pared out gradually by 5 per cent in coming 4 years from the existing 30 per cent mark. The announcement comes at a time when different political parties are getting ready for the showdown in Rajya Sabha during Monsoon session on the issue of GST, whose implementation can increase economic rate by 1-2 per cent points.