Indian economy poised for takeoff, growth robust

Updated 26 January 2013
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Indian economy poised for takeoff, growth robust

Many articles have been written on India’s growth potential, following the slowdown in economic momentum in the last couple of years. This is myopic as the Indian growth remains robust; and the economic growth rate is likely to accelerate from 2012-13 onwards.
Before the global financial crisis of 2008, the Indian economy had been growing at well over 9 percent. The growth rate slipped to 6.7 percent in 2007-08, but recovered swiftly to 8.4 percent in 2008-09 and stayed at that level the following year as well. Since then, growth has declined to 6.5 percent in 2011-12 and likely 6 percent in the current fiscal year that will conclude in March 2013. You cannot blame an external observer for concluding that Indians have hobbled in their rope trick gone wrong and it is better to wait and watch, if not keep off. But those who let appearance overwhelm their appreciation of the reality are likely to miss the strongest growth story of the next two decades.
The government’s announcement in September last year of a slew of reform measures, allowing foreign investment in multi-brand retail (single-brand retail had already been opened up, although with conditions that are gradually being diluted), allowing foreign airlines to invest up to 49 percent in Indian airlines, raising the foreign investment cap in insurance to 49 percent, opening up some forms of distributing telecast signals to foreign capital, etc. Hopefully, this could well be the turning point for the economy. Not so much because these decisions in themselves break dramatic new ground, but because it signalled political decisiveness, key for India to break her shackles of policymaking inertia.
India has had minority or coalition governments continuously since 1989, except for a brief two-and-a-half years early in the ’90s. Therefore, making policy has been a function of not just reformist intent but of political management of coalitions as well. In this area, the present government had been seen as having a deficit bigger than the fiscal deficit. But the September reforms signalled boldness: A key ally with the second largest contingent of legislators in Parliament broke off in protest at opening up retail and left the ruling coalition but the political leadership was prepared for that exit and roped in external support. The government has been taking a number of measures that require considerable political courage. It has auctioned telecom spectrum, passed reforms to banking regulations that will allow the central bank, which also functions as the banking regulator, to issue new licences, initiated a system of direct cash transfer of subsidies and increased the prices of petroleum fuels, in order to reduce the subsidy burden on the fisc. The expectation is that more reforms would be announced when the annual budget is presented on the last day of February.
While this much is evident to anyone who follows the news on India, there are a few changes in the political economy that receive little attention but have enormous significance for accelerating growth.
The most important change is that in elections to the states (India has 28 provinces with their own elected governments), the people have made it clear that they are no longer content with empty promises or mere offer of voice and identity, as they had been in the past. Leaders are expected to deliver governance and development. Those who rise to this expectation are rewarded with another term in office, and those who do not are voted out.
Politics in India has traditionally been a matter of patronage. The new political economy is forcing the leaders to think of building expressways, new towns, forging policies for releasing land for industry and make schools teach and staff hospitals. Every major state now holds annual investor meets to draw in foreign investment.
The mass upheaval over corruption is forcing the system to adopt unprecedented transparency in the allocation of natural resources. A new mining bill in the works will adopt transparent auctions for mines. Pressures are mounting to dilute, if not scrap, public monopoly in coal mining, which has been a major factor in the shortage of fuel that has been keeping 50,000 MW of power generation capacity idle in the country. A new ruling by a central appellate tribunal now ensures that every state level electricity regulator would revise power tariffs at least once every year. Refusal by these regulators to pass on the higher cost of imported coal has been one reason behind the fuel shortage in the power sector.
The good news is that India today has 50,000 MW of idle capacity. In the absence of enough power to supply rural areas in the daytime (power is despatched for a few hours at night so that farmers can run their pumps for irrigation) has meant that very little rural industry has been possible till now. Once the fuel shortage has been sorted out, rural India would be ripe for structural diversification, new agro processing industry absorbing underemployed manpower and farmers gaining from new climate-controlled warehouses and better prices through local procurement by local industry for local processing. State-owned Bharat Broadband Corporation is busy rolling out fibre-optic cable to 250,000 large villages (India has a little over 600,000 villages in total).
( T K Arun is the Editor, Opinion,
at The Economic Times, New Delhi)


NCWD launches project to evaluate marine species in Arabian Gulf

Updated 15 May 2024
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NCWD launches project to evaluate marine species in Arabian Gulf

  • Goal behind project is to build baseline for developing integrated management plan for marine environments
  • NCWD CEO said project aims to provide basic assessment of the condition of coral reefs

RIYADH: The National Center for Wildlife Development launched on Tuesday a project that aims to assess the state of marine habitats in the Arabian Gulf’s Saudi waters, the Saudi Press Agency reported.
The NCWD said the goal behind the project was to build a baseline for developing an integrated management plan for marine environments, preserving biodiversity and reducing threats.
It will also enhance the sustainability of marine environments in Saudi waters in light of their economic, social and cultural value and their provision of many valuable ecosystem services.
Mohammed Ali Qurban, NCWD’s CEO, said the project aimed to provide a basic assessment of the condition of coral reefs, seagrass meadows, mangrove forests, and associated animals and marine species.
The project will identify natural risks associated with human activities that threaten these coastal ecosystems, and concurrently, find solutions to reduce those threats.
It will also design an effective plan to preserve and rehabilitate these coastal habitats, based on the data provided by the project.
Qurban said Saudi waters in the Gulf cover an area exceeding 27,000 square kilometers and contain very important marine habitats, which support a wide range of marine species.
NCWD’s CEO pointed out that marine systems are exposed to many pressures and require continuous monitoring and the application of an effective plan to preserve and manage them in a sustainable manner.
The data provided by the project constitute an essential factor for conservation and rehabilitation measures and enabling NCWD and other relevant parties to build a management plan to sustain these valuable habitats.


Prince Sultan University hosts panel on space exploration

Updated 14 May 2024
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Prince Sultan University hosts panel on space exploration

  • Kingdom has already achieved a high-calibre position in space industry, says NASA’s Bill Nelson

RIYADH: Delegations from NASA and the Saudi Space Agency visited Prince Sultan University on Tuesday to engage with students on the future of human missions in space.

A panel session titled “Beyond Earth: Journeys to the Stars,” brought together NASA administrator Bill Nelson and Saudi astronauts Rayannah Barnawi, Ali Al-Ghamdi and Mariam Fardous, to discuss their own experiences in space.

Chairman of the Saudi Space Agency Abdullah Al-Swaha recently held talks with NASA’s Bill Nelson. (Supplied)

They also debated the future of human missions in space and encouraged the university’s students to be part of the Kingdom’s aspirations in the space field.

Mohammed Al-Tamimi, CEO of Saudi Space Agency, and Ambassador of the US to the Kingdom Michael Ratney, were also present at the reception.

HIGHLIGHTS

• The panel discussion hosted at Prince Sultan University debated the future of human missions in space.

• During his visit to the Kingdom, Bill Nelson also met Munir Eldesouki, president of King Abdulaziz City for Science and Technology.

In an interview with Arab News, Nelson highlighted the importance of space missions. “When we go into space, we have to invent and create new things and that helps us advance our standard of living here on the earth,” he said.

The panel session titled ‘Beyond Earth: Journeys to the Stars’ brought together NASA administrator Bill Nelson and Saudi astronauts Rayannah Barnawi, Ali Al-Ghamdi and Mariam Fardous, to discuss their own experiences in space. (AN photo by Huda Bashatah)

“One of the good examples that I gave in the speech today is the camera in your cell phone, that was developed by NASA. It’s a camera on a chip … there are so many technological outgrowths and spinoffs from our developing space technology.”

Nelson said that there would be further developments in the near future in pharmaceutical research and zero gravity on the International Space Station.

When we go into space, we have to invent and create new things and that helps us advance our standard of living here on the earth.

Bill Nelson, NASA administrator

“There are going to be some major breakthroughs, and already have been on developing drugs, for the cure of diseases. So, there’s a lot of excitement in the future,” he said.

Saudi Arabia has already achieved a high-calibre position in the space industry, he said.

Ahmed Yamani, president of Prince Sultan University, said that it had established a new college of space and aviation with the cooperation with the Saudi Space Agency and Al-Tamimi.

“We went through the process of the initiating this college, which is really based on what we already have … we have a program, aviation management, that was established with Embry-Riddle Aeronautical University in Florida.”

Yamani said that the university was already building the foundation of the space and aviation program with “external consultants that are working with us on both department and both programs. So, we want to definitely touch on the latest and the update updated programs in these areas.”

During his visit to the Kingdom, Nelson also met Munir Eldesouki, president of King Abdulaziz City for Science and Technology, and discussed ways to deepen cooperation in the space sector.

Chairman of the Saudi Space Agency Abdullah Al-Swaha held talks with Nelson in the presence of Al-Tamimi, and they discussed strategic partnership in the field of space to serve humanity.

The Saudi Space Agency is responsible for developing and growing its space sector with a focus on supporting economic growth, stimulating innovation and scientific research.

 


Saudi Arabia takes part in Netherlands Geospatial World Forum as strategic partner

Updated 14 May 2024
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Saudi Arabia takes part in Netherlands Geospatial World Forum as strategic partner

  • The authority is collaborating with the World Bank to conduct studies on the economic impact of geospatial information in Saudi Arabia

RIYADH: Saudi Arabia’s General Authority for Survey and Geospatial Information is serving as a strategic partner in the Geospatial World Forum, a global event with more than 300 speakers specializing in geospatial information.

Themed “Geospatial Transition: Powering the World Economy,” the four-day forum is taking place in Rotterdam, the Netherlands, until May 16.

GEOSA represents the Kingdom at home and abroad in the geospatial sector.

Themed ‘Geospatial Transition: powering the world economy,’ the four-day forum is taking place in rotterdam, the Netherlands, until May 16. (SPA)

The Rotterdam forum provides a platform to exchange knowledge and unveil smart solutions provided by geospatial information, and includes more than 55 pavilions showcasing the latest technology in the sector.

During the opening session, Mohammed Al-Sayel, president of the authority, said in a speech that geospatial information is playing an important role in decision-making within the rapidly growing Saudi economy.

FASTFACT

Geospatial World Forum held in Rotterdam provides a platform to exchange knowledge and unveil smart solutions provided by geospatial information.

The authority is collaborating with the World Bank to conduct studies on the economic impact of geospatial information in the Kingdom, he added, highlighting work with international organizations concerned with geospatial information management specifications, standards and governance.

Themed ‘Geospatial Transition: powering the world economy,’ the four-day forum is taking place in rotterdam, the Netherlands, until May 16. (SPA)

Al-Sayel said that the Kingdom, represented by GEOSA, has contributed to the development of geospatial information management globally by hosting the UN Global Geospatial Ecosystem Center of Excellence in Riyadh. The center allows experts to exchange expertise and knowledge within the geospatial information management sphere.

The Kingdom has built and maintained national geospatial infrastructure according to the best international practices, he added, in addition to working on developing national capabilities in the sector.

During a session titled “Geospatial Transition Driving Economic Value in Various Sectors,” GEOSA spokesperson Fatma Al-Shammari said that the Kingdom is undergoing a “significant transition” in various developmental fields, with major projects benefiting from advanced geospatial technologies to achieve national targets.

On the sidelines of the forum, the Kingdom, represented by GEOSA, took part in an accompanying exhibition with its main pavilion as a strategic partner, showcasing Saudi Arabia’s national geospatial infrastructure to visitors and introducing the most prominent development projects in the country.

The exhibition covered hydrographic surveying, national geodetic infrastructure and map production.

 


Exercise to deal with environmental emergencies starts in Tabuk region

An exercise aimed at raising readiness to confront environmental emergencies or oil spill incidents is underway on Tabuk coast.
Updated 14 May 2024
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Exercise to deal with environmental emergencies starts in Tabuk region

  • Exercise is being supervised by the National Center for Environmental Compliance and is taking place in cooperation with 39 governmental and private agencies

RIYADH: An exercise aimed at raising readiness to confront environmental emergencies or oil spill incidents kicked off on the Tabuk coast on Tuesday.

The two-day exercise, called “Response 14,” is part of the Kingdom’s plan to combat pollution of the marine environment with oil and other harmful substances, Saudi Press Agency reported.

The exercise is being supervised by the National Center for Environmental Compliance and is taking place in cooperation with 39 governmental and private agencies.

The center’s official spokesman, Saad Al-Matrafi, revealed that the readiness of each participating agency increased every time such an exercise was held.

He added that there was a noticeable development in the technology being used by the various participating agencies as well as the skills of their employees, as a result of such exercises.

He explained that the exercise is being carried out in several stages in which satellites and advanced simulation programs are used.

Participants will learn how to deal with simulated scenarios of pollution spreading in the middle of territorial waters and its impact extending to coasts and marine habitats.

They will also learn how to contain this pollution and reduce its negative effects on the marine environment and the region’s economy.

Al-Matrafi said the national plan to combat oil spills and harmful substances has succeeded in testing its ability to contain a spill of 75,000 barrels, with a high response rate not exceeding 50 minutes, through the largest fleet of naval units designated for this purpose, in addition to specialist aircraft.


Saudi deputy minister takes part in Arab ministerial meeting on Somalia

Abdulrahman Al-Rassi leads Saudi delegation in Arab ministerial meeting in Bahrain to Support Somalia. (Supplied)
Updated 14 May 2024
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Saudi deputy minister takes part in Arab ministerial meeting on Somalia

  • During the meeting, the group discussed the importance of strengthening Arab coordination on issues of common interest, and the importance of respecting the sovereignty of states

MANAMA: Saudi Arabia’s Deputy Minister for International Multilateral Affairs Abdulrahman Al-Rassi on Tuesday participated in the ministerial working group’s meeting in Manama, Bahrain, about supporting Somalia in confronting attacks on its sovereignty and territorial integrity.

During the meeting, the group discussed the importance of strengthening Arab coordination on issues of common interest, and the importance of respecting the sovereignty of states in accordance with international laws and norms, the foreign ministry said in a report.

The meeting was attended by Saudi Arabia’s Permanent Representative to the Arab League Abdulaziz Al-Matar and the director general of the deputy minister’s office, Mohammed Al-Shehri, among other officials.