India sees three years of path-breaking and inclusive growth in the aviation sector Emerges as the world's third largest aviation market

New Delhi: Average airfares fall by 18 % making air travel more affordable
The civil aviation industry in India has emerged as one of the fastest growing industries in the country during the last three years. With a 19 percent growth in domestic passenger traffic from about 6.1 crore in 2014 to 10 crore in 2016-17, India is now the third largest aviation market in the world, with the promise to grow even further. What is most impressive about this growth is its inclusive nature defined by the Regional Connectivity Scheme –UDAN, that has made air travel possible for even the common man in remote areas. According to Shri P Ashok Gajapathy Raju, Union Minister for Civil Aviation, his Ministry has worked towards reshaping aviation ecosystem for affordable and convenient flying for everyone by bringing in the National Civil Aviation Policy 2016. The Minister was briefing the media in New Delhi today, about the achievements of the Civil Aviation Ministry during the last three years. The MoS for Civil Aviation Shri Jayant Sinha was also present on the occasion.
Shri Raju said that average or median airfares fell by 18 percent during 2016-17, making flying more affordable for the common man. Scheduled domestic flight movements also rose from 7 lakh in 2014 to 8.2 lakh in 2016, an 8.2 percent CAGR growth. As against 395 aircrafts in the fleet of Indian carriers, there are 496 aircrafts in operation today, and another 654 are under purchase. Route Dispersal Guidelines have been rationalized, multiple provisions have been made for MRO service providers and a slew of initiatives like the AirSewa portal, enhanced compensation for cancellation and boarding denial have been taken for improving passenger convenience
The Regional Connectivity Scheme UDAN has been by far the most path-breaking achievement of the Ministry. 31 currently served, 12 under-served and 27 unserved airports are now connecting 128 RCS routes across the country. 50 airports are being revived and 13 lakh new UDAN seats are being added annually under the first round of UDAN for a Viability Gap Funding of Rs 205 crore.
Shri Raju also talked about the other achievements of the Ministry like promoting Ease of Doing Business by allowing 100 % FDI in domestic scheduled air transport, Open Skies Service Agreements offers to 49 countries and 5 SAARC nations etc, developing a robust security architecture by complying with ICAO requirements, Anti Hijacking Act etc, promoting innovative technology like GAGAN, India’s first navigation based system to improve accuracy of air navigation services and focusing on skill development in the aviation sector. About skill development the Minister informed that the first Executive Aviation Course was launched by India’s first Aviation University in February 2017. 800 ATCs were recruited by AAI in the last 2 years and more than 400 are planned to be recruited in 2017. The Minister said that Aerospace and Aviation Skill Sector Council has been formed to monitor growth of skill development.
Also speaking on the occasion MoS Civil Aviation Shri Jayant Sinha said that the civil aviation sector in India has undergone a complete transformation in the last three years with India emerging as the world’s third largest aviation market. As against 70-75 airports in the country in all these years, we now have more than 100 airports with the implementation of UDAN. We hope to have 200 plus airports in the next 10-15 years. He informed that the capacity of existing major airports is also being increased rapidly, while Greenfield airports are coming up at several places in the country like Goa , Navi Mumbai and other places. Shri Sinha informed that Air India has also performed extremely well during the last three years.
A booklet on the achievements of the Ministry in the last three years was also unveiled on the occasion. To access a soft copy of the document please click the link below.

Sharp rise in Indian diamonds, gems' export to China

Beijing: India has become the second largest exporter of diamonds, gems and stones to China, as total exports grew by 28.48 per cent year-on-year to touch US$ 2.48 billion in 2016, capitalising a total market share of 31.8 per cent, as stated by Mr Prakash Gupta, Consul General of India in Shanghai. During the January-March 2017 quarter, total exports of diamonds, gems and stones from India to China touched US$ 558 million, capitalising a total market share of 33.8 per cent. Mr Lin Qiang, President of the Shanghai Diamond Exchange (SDE), has stated that SDE would actively consider participating at the India International Gems and Jewellery Show (IIJS), to be held in Mumbai from July 27-31, 2017, with a large delegation from eastern China region. The IIJS 2017 event will showcase two separate events, one focusing on the gems and jewellery sector, while the other will display machinery and equipment related to the diamonds and jewellery industry.

Asian Development Bank (ADB) and Punjab National Bank (PNB) sign $100 million loan to finance Solar Rooftop projects

New Delhi: This is the first tranche loan of the $500 million multi tranche finance facility Solar Rooftop Investment Program (SRIP)
India’s solar rooftop market expanding fast with an estimated total capacity potential of 124 GW
The Asian Development Bank (ADB) and the Punjab National Bank (PNB) yesterday signed a $100 million loan — to be guaranteed by the Government of India — that will finance large solar rooftop systems on industrial and commercial buildings throughout India. The PNB will use the ADB funds to make further loans to various developers and end users to install rooftop solar systems.
This is the first tranche loan of the $500 million multi tranche finance facility Solar Rooftop Investment Program (SRIP) approved by ADB in 2016. The financing includes $330 million from ADB’s ordinary capital resources and $170 million from the multi donor Clean Technology Fund (CTF) administered by ADB. The first tranche loan of $100 million would be financed entirely from the CTF.
“With a sharp drop in the price of solar panels, India has a huge potential to expand its use of solar rooftop technologies,” said Mr. Kenichi Yokoyama, ADB Country Director in India who signed the loan on behalf of ADB. “The program will contribute to the government’s plans to increase solar power generation capacity, and also help India meet the carbon emission reduction target in line with its commitment at the recent global climate change agreement.” India’s solar rooftop market is expanding fast with an estimated total capacity potential of 124GW.
“The project is aligned with the goal set by Government of India to increase the country’s solar rooftop capacity by 40 GW by 2022, and would also contribute to Government's efforts to promote solar energy solutions as affordable and sustainable energy sources,” said Mr. Raj Kumar, Joint Secretary to the Government of India, Department of Economic Affairs, Ministry of Finance, who signed the Guarantee Agreement for Government of India. The loan agreement was signed by Mr. H.K. Parikh, General Manager on behalf of PNB.
The entire Solar Rooftop Investment Program will cost $1 billion, inclusive of ADB $500 million funding, and the projects financed under the program will install solar rooftop system of around 1 GW capacity. This will contribute to the climate change goal of reducing greenhouse gas emissions by about 11 million tons of carbon dioxide equivalent over the typical 25-year lifetime of rooftop solar systems.

Agri grew at robust 5.2% in March quarter

New Delhi: The country’s gross value added (GVA) in the agriculture, forestry and fishing sector grew 5.2 per cent in the JanuaryMarch quarter, final one of the 2016-17 financial year.
This was the highest in two years, with record production of foodgrain and horticulture. The GVA for agriculture and allied activities during the same quarter of the year before was 1.5 per cent. Output of grain was a record high despite the acute cash crunch right in the middle of the rabi sowing season. On November 8, 2016, the Centre had announced that the currency notes of ~500 and ~1,000 denominations would cease to be legal tender from midnight.
Even so, farmers brought a higher area under cereals, pulses and oilseeds as compared to previous years.
The full-year GVA growth in agriculture, forestry and fishing is estimated ato 4.9 per cent, as against 0.7 per cent in 2015-16. Foodgrain production in the 2016-17 crop year was estimated at 273.38 million tonnes, the highest since Independence. Horticulture output is projected at 295 mt. Wheat production is estimated at a record of a little over 97 mt. That of pulses is estimated to be 22 mt. The southwest monsoon in 2016 was the first normal one after droughts in 2014 and 2015.
The rains aided a record kharif output and seemed to have a positive impact on the rabi.

Private investment to lead India GDP growth in 2018-19, says World Bank

New Delhi: Although private investment growth in India will remain challenging in the short term, it will eventually pick up in 2018-19 to overtake private consumption as the main driver of economic growth, the World Bank said in its latest ‘India Economic Update’ released on Monday.
Gross fixed capital formation (GFCF), which indicates investment demand in the economy, is forecast to grow by 3.3% in FY17, jump to 6.8% in FY18 and overtake private consumption (7.4%) in FY19 with 8.8% growth to become the major growth driver.
This is due to the key reform steps taken by the government such as implementation of bankruptcy law and goods and services tax, higher infrastructure push and continued inflow of foreign direct investment, the Bank said. “Abolition of Foreign Investment Promotion Board will further support investment growth. Moreover, RBI efforts to reform banking sector in addition to a higher steady state of banking sector deposits post-demonetization will eventually allow credit growth to recover robustly and sustainably,” it added.
Private investment continues to face impediments in the form of corporate debt overhang, stress in the financial sector with rising bad loans, excess industrial capacity, and regulatory and policy challenges, putting downside pressures on India’s potential growth.
In February, the industrial production index for capital goods contracted 3.4%, while credit to industry contracted 5.2%, suggesting a meaningful recovery in private investments is unlikely until later in FY18.
“On the positive side, consumption will remain robust, given declining inflation and solid household credit growth, and pick-up in trade is likely to endure at least through the first half of the fiscal year, helping lift investment,” the Bank said.
Private investment, which accounts for three quarters of total GFCF, has not been forthcoming despite the promise of crowding-in by public sector investments and government efforts to improve the business environment and facilitate foreign direct investment (FDI). GFCF contracted by 2.1% in the fourth quarter and GFCF as a percent of gross domestic product (GDP) stood at 28.5% during the same quarter compared to a medium-term average (5 year) of 32.4% of GDP. “This weakness in private investment has been attributed to local and global excess-capacity, leveraged corporate and bank balance sheets, and remaining domestic bottlenecks,” the Bank said.
Supporting the view of an incipient pick-up, production of capital goods expanded by 6.8% in January 2017 after 13 consecutive months of negative growth, imports of machinery rose by 13.5% in March, and FDI expanded by 10.9% in Q3 FY17 driven primarily by investments in the telecommunications sector.
At a time of weakness in investment growth, private consumption remains a stable growth driver, expected to range between 7.2% and 7.5% between FY17 and FY20. The minor deceleration in FY17 is offset by higher rural incomes from favourable agricultural growth, revisions to civil servants’ pay by an average of 24%, and declining inflationary expectations.
Sunil Kant Munjal, chairman, Hero Enterprise agreed with the World Bank’s assessment that next year could see a revival in private investments. “Companies do not invest because they see little scope for return. Now capacity is getting absorbed and consumption is increasing, companies are looking at investing in the months to come,” he added.
The Bank expects government to maintain its momentum in public infrastructure spending, with government capital expenditure budgeted at 3% of GDP in FY18, flat from previous year. “Private investment is expected to pick up, but only gradually as recovery may be protracted, in part due to relatively longer-term effects of demonetization on cash-reliant construction activities (household investment, largely housing, accounts for approximately 1/3 of total investment), corporate leverage and the persistent weakness in credit growth, which suggest that the financial sector may require more time to adjust,” it said.

Govt meets FY17 fiscal deficit target

New Delhi: The government has met its fiscal deficit target of 3.5 per cent of gross domestic product for 2016-17. From official data issued on Wednesday, the deficit in absolute terms was Rs 5.35 lakh crore; the budgeted estimate had been Rs 5.34 lakh crore. As a percentage of GDP (at current prices) of Rs 151.8 lakh crore, that comes to 3.52 per cent. The latest provisional GDP data was also issued on Wednesday.
This was achieved in spite of a higher than budgeted capital expenditure for the year. “Encouragingly, tax inflows and capital spending exceeded the revised estimates, thereby offsetting the anticipated shortfall in non-tax revenue. Higher than estimated capital spending has provided a boost to the quality of expenditure, relative to the revised estimates,” said Aditi Nayar, principal economist with rating agency ICRA.
Total expenditure was Rs 19.75 lakh crore; the budgeted estimate of Rs 20.14 lakh crore. Plan spending was Rs 5.72 lakh crore, compared with estimates of Rs 5.84 lakh crore; non-Plan expenditure was Rs 14.03 lakh crore, as against the budgeted estimate of Rs 14.3 lakh crore.
From this financial year, 2017-18, expenditure will be classified into revenue spending and capital spending. A quick calculation shows that capital spending for 2016-17 was Rs 2.9 lakh crore, as against budgeted estimates of Rs 2.79 lakh crore.
Total receipts for 2016-17 were Rs 13.8 lakh crore, compared with budgeted estimates of Rs 14.8 lakh crore. Tax revenue showed a positive trend, partly due to increased compliance after demonetisation. It was Rs 11.02 lakh crore; the budget estimate was Rs 10.89 lakh crore.
Non-debt capital receipts were boosted by divestment returns, the highest so far in a year.
Total non-debt capital receipts were Rs 63,503 crore, compared with budgeted estimates of Rs 56,571 lakh crore. Non-tax revenue was Rs 2.74 lakh crore; the budget estimate was Rs 3.34 lakh crore.

Maruti aims to sell 3 lakh automatic cars annually by 2020

New Delhi: India's largest car manufacturer, Maruti Suzuki India, is targeting to sell around 150,000 units of vehicles equipped with automated gear shift (AGS) technology by end of FY 2017-18, and touch 300,000 units mark by 2020, from the current levels of 94,000 units per annum. The company currently offers AGS technology in Alto K10, Wagon R, Celerio, Ignis and Dzire, CVT (continuously variable transmission) technology in Baleno, and AT (automatic) transmission in Ciaz and Ertiga. The company is also in the process of enhancing its production capacity of automatic transmissions and has also gone in for localisation of various parts in order to make the variants affordable. The company currently has a 47% market share in India's domestic passenger vehicle market. Total passenger vehicle sales touched 94,736 units comprising AGS, CVT and AT technologies in FY2016-17, compared with 56,968 units in 2015-16, and 32,426 units in FY 2014-15.

India's First Fleet of 200 Electric Vehicles Launched in Nagpur

New Delhi: The Minister of Road Transport & Highways and Shipping Shri Nitin Gadkari and Maharashtra Chief Minister Shri Devendra Fadnavis launched India’s first multi-modal electric vehicle project at the Nagpur airport complex today. This unique project brings together e-buses, e-cabs, e-rickshaws and e-autos on a single platform, the Ola App, which will enable commuters in Nagpur to book them. The fleet of 200 vehicles consists of 100 of Mahindra’s new e20 Plus vehicles, besides those from other manufacturers like Tata Motors, Kinetic and TVS.
Speaking on the occasion Shri Gadkari said that it was his Government’s vision to make India a 100 percent e-vehicle nation. Shri Gadkari said his Ministry was prepared to facilitate manufacturers and other companies to take the Nagpur model to other parts of the country. He said e- vehicles need to be promoted in order to cut down the huge crude oil bill, reduce pollution and create cost effectiveness in transportation. To begin with, the emphasis would be on commercial vehicles and then on others.
Shri Gadkari informed that growing demand, coupled with R&D would gradually help to bring down the operational costs, and especially the battery cost. He added that once the cost of batteries comes down, e-vehicles will compete with diesel and petrol vehicles and finally phase them out.

India on right path to becoming global steel player: Steel Association

New Delhi: India has become a net exporter of steel during FY 2016-17 and is on the right path to become a global player with globally competitive quality of steel, according to the Indian Steel Association (ISA). During FY 2016-17, steel imports fell 36.6 per cent to 7.427 million tonnes (MT), whereas steel exports rose 102.1 per cent to 8.244 MT, backed by the measures taken by the Government of India. Mr Sanak Mishra, Secretary General and Executive Head, ISA, stated that this trend will continue backed by new technology, equipment, automation and process control, thereby giving a boost to the domestic production. He further stated that, the figures currently are not very high and India should strive to reach 15 MT to be globally recognised. Apart from increasing production, India should also explore new markets with high imports but low production capacity.

Our Country is the Largest Producer of Milk in the World: Shri Radha Mohan Singh

New Delhi: Under Rashtriya Gokul Mission, on the lines of Gokul Gram, ‘ Gir Cow sanctuary’ has been Approved
It Is the Responsibility of Veterinarians to Contribute in Keeping the Nation Healthy By Increasing Availability of Animal Protein
By 2022 the Government of India is committed to Double Farmers' Income
Union Minister of Agriculture and Farmers Welfare, Shri Radha Mohan Singh today said that the Government of India has undertaken several new initiatives in the field of animal husbandry in Gujarat. Under Rashtriya Gokul Mission, on the lines of Gokul Gram ‘Gir, Cow Sanctuary’ has been approved. This will be established in Dharampur, Porbandar under Livestock insurance coverage. Earlier only two milk animals were included , now 5 milk animals and 50 small animals are included. This scheme has been implemented in all the districts of the state, whereas earlier only 15 districts were included. During the year 2014-16, about 26,000 animals have been insured in the state. To fulfil the shortage of veterinarians, a veterinary college has been established in Junagadh. The Agriculture Minister was speaking at the inauguration ceremony of polytechnic at Kamdhenu University, Sabarkantha.
The Agriculture Minister said that it is a matter of immense pride that our country is number one in milk production in the world. In the year 2015-16, the growth rate of milk production has been 6.28 per cent due to which total production has reached 156 million tonnes. And now, per person milk availability is 337 gram on an average, while on the world level it is 229 gram. It is worth mentioning that in comparison to the years 2011-14, the growth in milk production during the years 2014-17 has been 16.9 per cent.
He said that the standard of living of urban and rural families is rising, therefore, the demand for the animal protein is increasing. So, it is necessary that we constantly make effort to increase the production of our livestock, poultry and fish so that the country's citizens are well-nourished and healthy. That is why it is the responsibility of veterinarians to contribute in keeping the nation healthy by increasing availability of animal protein.
He said that the Government is committed to double farmers' income by 2022 and veterinaries play a significant role in fulfilling the Government’s resolution to double the farmers’ income. A healthy animal will result in greater production which will automatically enhance the farmer’s income and the country will proceed on the path of economic prosperity.
Agriculture Minister said that India is world’s highest livestock owner at about 512.05 million out of which 199.1 million are bovines, 105.3 million buffaloes, 71.6 million sheep and 140.5 million goats. In the case of goats, India is at the second position in the world and it is approximately 25 % of the livestock. India is second largest poultry market in the world and it includes the production of 63 billion eggs and 649 million poultry meat. India's marine and fish industry are growing at around 7 percent compound annual growth rate. Overall, India’s livestock sector is growing fast and emerging as a major contributor in the global market.
The Agriculture Minister said that the Government of India is ensuring the quality of education in universities is of international standards. In this direction, ICAR’s Fifth Deans Committee Report has been approved. Schemes like ‘Student’ and ‘Arya’ have been started with scholarships. Students’ scholarship amount has been increased.
In the end, the Minister said that to see our nation prosper and agriculture sector and farmers flourish, we need to work together. When the agriculture will grow, the farmer will be happy and the country will move forward.