MAY 2015 ECONOMY

MAY 2015 ECONOMY Union Cabinet gives nod to 5% disinvestment in NTPC & 10% in Indian Oil Corporation Share on emailShare on facebookShare on twitterShare on printShare on google May 13, 2015No comments Union Cabinet gave its approval to 5 per cent disinvestment in National Thermal Power Corporation Limited (NTPC) and 10 per cent in Indian Oil Corporation (IOC) National Investment Fund The Government of India constituted the National Investment Fund (NIF) on 3rd November, 2005, into which the proceeds from disinvestment of Central Public Sector Enterprises were to be channelized. National Investment Fund which is to be maintained outside the Consolidated Fund of India. The Government on 17th January, 2013 has approved restructuring of the National Investment Fund (NIF) and decided that the disinvestment proceeds with effect from the fiscal year 2013-14 will be credited to the existing „Public Account‟ under the head NIF and they would remain there until withdrawn/invested for the approved purpose.

1. Recapitalization of public sector banks and public sector insurance companies. 2. Investment by Government in RRBs/IIFCL/NABARD/Exim Bank; 3. Equity infusion in various Metro projects; 4. Investment in Bhartiya Nabhikiya Vidyut Nigam Limited and Uranium Corporation of India

Ltd.; 5. Investment in Indian Railways towards capital expenditure

India and Mongolia have decided to elevate their ties to the level of Strategic partnership. In this regard a joint statement was issued after the delegation level talks between Prime Minister Narendra Modi and his Mongolian counterpart Saikhanbileg in Ulaan Baatar. It should be noted that Prime Minister Narendra Modi is first Indian PM to Mongolia. Apart from this India and Mongolia signed 13 agreements to further strengthen bilateral ties in different sectors. They are

1. Revised Air Services Agreement 2. Agreement on Cooperation in the Field of Animal Health and Dairy 3. MoU on Renewable Energy 4. MoU on enhancing cooperation between the border guarding forces.

International Monetary Fund (IMF) in its recent report titled Act Local, Solve Global: The $5.3 Trillion Energy Subsidy Problem has voiced alarm about energy subsidies across the world. Definition of energy subsidies: The IMF report defined energy subsidies as the difference between the amount of money consumers pay for energy and its true costs, plus a country’s normal sales or value-added tax rate. In addition, the true costs include environmental effects like carbon emissions that lead to global warming and the health effects. Other reports of IMF World Economic Outlook Reports, The Global Financial Stability Report

MAY 2015 ECONOMY

GREECE CRISIS AND MANAGEMENT How does a Government finance its operations?

Obviously by putting direct and indirect taxes on your and me. But even after taxing us, there is not enough money to run any bogus Government schemes, then what can they do? That’ll give the answer for…

What is Sovereign Debt?

Sovereign debt is the money a government borrows from its own citizens or from investors around the world. Then what is Sovereign Debt Crisis? When Government doesn’t have capacity to pay back the Sovereign Debt, it called ―Sovereign Debt Crisis‖. What is a government bond?

Governments borrow money by selling bonds to investors.

In return for the investor’s cash, the government promises to pay a fixed rate of interest over a specific period – say 4% every year for 10 years.

At the end of the period, the investor is repaid the cash they originally paid, cancelling that particular bit of government debt.

Government bonds have traditionally been seen as ultra-safe long-term investments (aka ―Gilt Edged Securities‖) and are held by insurance companies and banks, as well as private investors. They are a vital way for countries to raise funds.

What is a bond market?

Once a bond has been issued – and the government has the cash – the investor can hold the bond and collect the interest every year until it is repaid. But investors can also buy and sell bonds that have already been issued on the financial markets – just like buying and selling shares on the stock market.

The price of the bond will rise and fall according to speculation and analysis by experts.

For example, you bought a Government of India bond. It says Rs.100 / 4% / 2014. That is, you paid the ―MRP‖ Rs.100 to Indian Government, and every year they’ll pay you 4% of the Rs.100 until 2014. And on 2014, they’ll also repay you the entire Principal of Rs.100 Suppose things go nice and smooth until 2012.

But Then

There is heavy inflation, you can’t buy even peppermint for Rs.4 and or

There is a rumor that Government will default and its payment and won’t repay you any money.

In either case, you want to ―Exit‖ from game before its too late. You want to sell the bond to another person and recover whatever money possible and reinvest that money in something even safer and more profitable. So, you come to sell this bond to me. But I also read the newspapers (except The Hindu), so I know things are not good with Indian Government or economy, so I won’t pay you Rs.100 but only Rs.90 for

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your bond. You’re not in a position to negotiate, you’re panicked, you just want to exit from this game and you fear that if you continue to hold this bond, 15 days from now, people won’t even pay you Rs.50 for it. Thus I buy the Bond worth Oringally ―MRP‖ of Rs.100, for Rs.90 from you. Question: why would I do that? Why would I buy a “not so good-looking” bond from you? Ans.

My profit is more than yours! How? Because, You invested Rs.100 and get Rs.4 every year, so your profit (technically known as Bond-yield) is (4/100) x 100 = 4%.

While I invested Rs.90 and get Rs.4 every year, so my profit (Yield) is (4/90) x 100 =4.44…% which is better than your 4% yield.

I may be speculating that after a month or two, the situation with Indian economy / Inflation / Government will improve and then I would be able to buy a peppermint for Rs.4

Why do bond markets matter?

Because they determine what it costs a government to borrow.

When a government wants to raise new money, it issues new bonds, and has to pay an interest rate on those bonds that is acceptable to the market.

The yield (profit) at which the market is buying and selling a government’s existing bonds gives a good indication of how much interest the government would have to pay if it wanted to issue new bonds.

So, for example, Spanish 10-year bond yields have risen above 6% in recent years. That means that if the Spanish government wants to borrow new money from the bond market for 10 years, it would have to pay an interest rate on the new bond of more than 6% to seduce the buyers.

Borrowing beyond capacity

Governments can just go on print ―Bonds‖ on their HP printers and sell it to junta, because money doesn’t fall from sky. Someone someday will have to pay for it. If they don’t, then the Bond Yield will increase and a point will come when you (Government) have to offer 36% interest rate on fresh bonds to seduce new investors. Therefore, Governments, put limit on their own borrowing. In India we’ve a thing called FRBM (Fiscal responsibility and budget Management). For Europen Union, back in 1997 when they were forming the gang, they had decided that each gang-member (country) will not borrow beyond 3% of its GDP per year. But Government of Greece manipulated its account-books to appear as if they were staying within the 3% limit, but actually they had been borrowing much above their capacity – almost 13% of their GDP.

Why is Greece such a messed up Economy?

1. Around 1,2 million people are employed by the Greece Government —this includes clerks, teachers, doctors, and priests—which amounts to almost 27 percent of the total working population of the country (France24 2010). Thus one out of four working Greeks is employed wholly or partly in the public sector. More than 80 percent of public expenditure goes to the wages, salaries and pensions of the civil servants.

2. Getting a civil service job in Greece is widely perceived as being granted a sinecure and not as a contractual obligation to work. The resulting inefficiency of the civil service reinforced a system of promotions based on seniority and not on merit or talent. One can only move up the ladder more quickly if one has good connections with politicians and trade unionists.

3. This huge bureaucracy just keeps making laws. From 1974 onwards, 100,000 laws were

passed around 2857 per year!

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4. Then there are rules limiting competition. You pay a fees to lawyers for everything. You need a

degree licence for doing anything in Greece

5. In Greece one can find a whole set of laws mandating opening and closing hours of various enterprises, or defining the geographical proximity where two similar establishments can operate, setting minimal prices for various professional services, issuing licenses and preventing or limiting competition.

6. Similar restrictions apply to the operation of drugstores. You are only allowed to own and operate a drugstore in Greece if you hold a degree in pharmacology. The same applies to opticians. You can only own a shop selling spectacles if you hold a degree in optics!

7. If you have a business and you want to advertise your brand or product you have to pay an amount equal to 20 percent of the advertising expenses to the pension funds of the journalists.

8. Each time you buy a ticket on a boat, 10 percent goes to the pension fund of the harbor workers. A part of the ticket price that covers the insurance of passengers goes to the sailors’ social security fund.

9. If you sell supplies to the Army, you will have to pay 4 percent of the money to the pension funds of the military officers. When you buy a ticket at a soccer game, 25 percent of the amount goes to the pension funds of the police.

10. It is estimated that there are more than 1,000 such levies whose total cost amounts, according to some calculations, to over 30 percent of the country’s GDP

11. Greece is a society dominated by rent seeking rather than wealth producing activities. The fact that two thirds of the electorate is living partly or wholly on government hand-outs significantly affects the ideological narratives that are popular in the country.

In short, Greece is not a country but Air India running MNREGA. And adding insult to the injury, due to the recession in USA, the tourism and export industry of Greece had took a huge setback.

What‟s the EU Exit Rumor?

There are two major parties in Greece.

The right wing party: they say we continue in Eurozone, agree to their demand, cut more jobs and public spending for receiving more bailout money.

The Left Wing Party: they want to renegotiate the loan-terms with EU and IMF and donot want to implement any austerity measures. They’d take a hostile stand against EU, although in media they say ―We want to continue in Eurozone‖ but their agenda and gesture speaks otherwise.

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Consequences IF Greece Exits Eurozone?

Lines at the Banks

Ordinary Greeks may queue up to empty their bank accounts before they get frozen and converted into drachmas that lose half or more of their value. Depositors in other eurozone countries seen as being at risk of leaving the euro – Spain, Italy – may also move their money to the safety of a German bank account, sparking a banking crisis in southern Europe.

Loan Default by Greece

Unable to borrow from anyone (not even other European governments), the Greek government simply runs out of euros. It has to pay social benefits and civil servants’ wages until the new drachma currency can be introduced.

The government stops all repayments on its debts, which include 240bn euros of bailout loans it has already received from the IMF and EU.

The Greek banks – who are big lenders to the government – would go bust.

Meanwhile, the Greek central bank may be unable to repay the 100bn euros or more it has borrowed from the European Central Bank to help prop up the Greek banks.

Meltdown

Greece’s banks would be facing collapse. People’s savings would be frozen. Many businesses would go bankrupt. The cost of imports – which in Greece includes a lot of its food and medicine – could double, triple or even quadruple as the new drachma currency is introduced.

With their banks bust, Greeks would find it impossible to borrow, making it impossible for a while to finance the import of some goods at all.

One of Greece’s biggest industries, tourism, could be disrupted by political and social turmoil (and rioting).

In the longer run, Greece’s economy should benefit from having a much more competitive exchange rate. But its underlying problems, including the government’s chronic overspending, may not go away.

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Businesshouses go Bankrupt

Greek companies who still owe big debts in euros to foreign lenders, but whose main sources of income are converted to devalued drachmas, will be unable to repay their debts. Many businesses will be left insolvent – their debts worth more than the value of everything they own – and will be facing bankruptcy. Foreign lenders and business partners of Greek companies will be looking at big losses.

Some contracts governed by Greek law are converted into drachmas (=old currency of Greece before Euro), while other foreign law contracts remain in euros. Many contracts could end up in litigation over whether they should be converted or not.

Sovereign Debt Crisis for Weak Eurozone Nations

If Greece leaves the eurozone, that will send negative impression among the investors all over the world, that Eurozone countries are not trustworthy, hence they’ll not lend to other countries such as Spain or Italy and if they lend, they’ll charge heavy interest rate.

This could leave the governments of Spain and Italy short of money and in need of a bailout. These two huge countries together account for 28% of the eurozone’s total economy, but the EU’s bailout fund currently doesn’t have enough money to help them out.

And as explained earlier, they (Spain and Italy) will have to offer more interest rate on new bonds, because of the Bond Yield problem.

Good for US and Japan

Nervous investors and lenders around the world may start selling off risky investments (i.e. Bonds and Equities coming from Greece and similar nations) and move their money into safe havens. They’ll instead prefer to park their money in the gilt-edged securities (i.e. the Government treasury bonds of US, Japan, Germany etc.)

Thus on one hand, the Greece, Spain and Italy will have to pay high interest rate to borrow from market, while US, Japan and Germany can borrow more cheaply.

Political Turmoil in Europe

As eurozone governments and the European Central Bank (ECB) face enormous losses on the loans they gave to Greece, public opinion in Germany may turn against providing the even larger bailouts probably now needed by big countries like Italy and Spain.

The ECB’s role of quietly providing rescue loans to these countries in recent months would be exposed and could become politically explosive, making it harder for the ECB to continue to help these troubled nations.

However, the threat of a meltdown might push Europe’s or the eurozone’s governments to agree a comprehensive solution – either dissolution of the single currency, or more integration, perhaps through a democratically-elected European presidency tasked with overseeing a massive round of bank rescues, government guarantees and growth.

Why Greece Exit =Trouble for India?

When investors take out their money from Greece, they’ll most likely convert it into Dollars and invest it US. Means less ―supply‖ Dollar in the international forex market = dollar becomes more expensive, you’ve to offer more rupees to buy same amount of dollar.

Some of above investors may also invest in gold, (After loosing faith in bond market). Again same supply-demand situation. Gold becomes more expensive.

Seeing the situation of Greece people (Pension and job cuts), the citizens of other European nations will try to save more and more money for the possible bad times ahead = less spending on luxery items = less demand for indian textiles, polished dimanonds and automobiles.

Indian businessmen who exported goods and services to Greece earlier, will have trouble collecting their money.

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Amend Foreign Direct Investment (FDI) norms for NRIs Union Government has decided to amend Foreign Direct Investment (FDI) norms for NRIs, Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCI) to increase capital flows into the country. Decision in this regard was taken at Cabinet Committee on Economic Affairs (CCEA) meeting chaired by Prime Minister Narendra Modi in New Delhi. In order to comply with this decision government will amend FDI policy on investments by NRIs, PIOs & OCIs which will give them parity in economy and education. Now non-repatriable investments of NRIs, PIOs & OCIs under under Schedule 4 of FEMA regulations will considered as domestic investment. The amendments will lead to greater foreign exchange remittances and investment in the country. Previous decisions taken NDA government on FDI are

1. FDI in Railway infrastructure sector has been opened to 100 per cent FDI under automatic route.

2. FDI limit in the insurance sector has been increased to 49 per cent. 3. Sectoral cap for FDI in defence sector has been raised to 49 per cent.

Difference between NRI, OCI and PIO: A Non-Resident Indian (NRI) is a citizen of India who holds an Indian passport and has temporarily emigrated to another country for six months or more for work, residence or any other purpose. Strictly speaking, the term "non-resident" is an economic concept and refers only to the tax status of an person who, as per section 6 of the Income-tax Act of 1961, has not resided in India for a specified period for the purposes of the Income Tax Act. The rates of income tax are different for persons who are "resident in India" and for NRIs. For the purposes of the Income-tax Act, "residence in India" requires stay in India of at least 182 days in a calendar year or 365 days spread out over four consecutive years. According to the act, any Indian citizen who does not meet the criteria as a "resident of India" is a non-resident of India and is treated as NRI for paying income tax. This implies that-Person Resident in India for less than 182 days during the course of preceding financial year and has gone out of India or who stays outside India, in either case:

a) for or on taking up employment outside India; or b) for carrying on outside India a business or vocation outside India; or c) for any other purpose, in such circumstances as would indicate his intention to stay outside

India for a uncertain period. A Person of Indian Origin (PIO) is a citizen of any other country but whose ancestors were Indian nationals at least four generations away. A PIO card is issued to PIOs other than Bangladeshi and Pakistani nationals with Indian origins, holding a foreign passport. The government issues a PIO Card to a Person of Indian Origin after verification of his or her origin or ancestry and this card entitles a PIO to enter India without a visa. Spouse of a PIO can also be issued a PIO card though the spouse might not be a PIO. This latter category includes foreign spouses of Indian nationals, regardless of ethnic origin, as long as they were not born in, or ever nationals of, the aforementioned prohibited countries. PIO Cards exempt holders from many restrictions that apply to foreign nationals, such as visa and work permit requirements, along with certain other economic limitations. PIOs can acquire non-agricultural and plantation property in India; can admit children to all educational institutes in India under NRI quota and can apply for various housing schemes of LIC, state governments and other government agencies. They are also exempted from registration at Foreigners Registration office at District Headquarters if stay in India does not exceed 180 days. The PIO card can be withdrawn under following circumstances: a) the PIO card was obtained through fraud, concealment of facts or false representation; b) the activities of the card holder in India do not conform to the laws of the country and the Indian Constitution; c) the card holder happens to be citizen of a country with which India is at war, or is supporting another country in acts of aggression against India; d) the PIO has been found guilty of acts of terrorism, smuggling of arms and ammunition and narcotics; e) has been sentenced in India up to one year's imprisonment or fined up to Rs.10,000;

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f) the card holder's presence in India is detrimental to the interests of the country. Overseas Citizenship of India (OCI) is provided to a foreign national, who was eligible to become a citizen of India on 26.01.1950 or was a citizen of India on or at any time after 26.01.1950 or belonged to a territory that became part of India after 15.08.1947. His/her children and grandchildren are also eligible for registration as an Overseas Citizen of India (OCI). Minor children of such person are also eligible for OCI. However, if the applicant had ever been a citizen of Pakistan or Bangladesh, he/she will not be eligible for OCI. Following benefits will be given to an OCI: (a) Multi-purpose, multiple entry, lifelong visa for visiting India. (b) Exemption from registration with local police authority for any length of stay in India. (c) Parity with NRIs in respect of economic, financial and education fields except in matters relating to the acquisition of agricultural/plantation properties.

DIFFERENCE BETWEEN FDI AND FPI Foreign direct investment (FDI) and foreign portfolio investment (FPI) are two of the most common routes for overseas investors to invest in an economy. FDI implies investment by foreign investors directly in the productive assets of another nation. FPI means investing by investors in financial assets such as stocks and bonds of entities located in another country.

FDI versus FPI

Although FDI and FPI are similar in that they both originate from foreign investors, there are some very fundamental differences between the two.

The first difference arises in the degree of control exercised by the foreign investor. FDI investors typically take controlling positions in domestic firms or joint ventures, and are actively involved in their management. FPI investors, on the other hand, are generally passive investors who are not actively involved in the day-to-day operations and strategic plans of domestic companies, even if they have a controlling interest in them.

The second difference is that FDI investors perforce have to take a long-term approach to their investments, since it can take years from the planning stage to project implementation. On the other hand, FPI investors may profess to be in for the long haul but often have a much shorter investment horizon, especially when the local economy encounters some turbulence.

Which brings us to the final point. FDI investors cannot easily liquidate their assets and depart from a nation, since such assets may be very large and quite illiquid. FPI investors have an advantage here in that they can exit a nation literally with a few mouse clicks, as financial assets are highly liquid and widely traded.

New Bank Note Paper Line unit Union Finance Minister Arun Jaitley inaugurated the New Bank Note Paper Line unit of 6000 metric ton capacity at Security Paper Mill in Hoshangabad in Madhya Pradesh. He also flagged off the first consignment of one thousand rupee bank notes made indigenously from this paper mill to the Currency Note Press Nasik. This plant belongs to Security Printing and Minting Corporation of India Limited (SPMCIL), a Miniratna Category-I CPSE, which is a wholly owned by Union Government. By commissioning this plant, India will become self-reliant in producing Bank Note Paper for higher denominations. Prior to this, India was considerably dependent on import of bank note paper for currency of big denominations.

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Committee to review and revitalise public private partnership (PPP) Union government has constituted a 10-member committee to review and revitalise public private partnership (PPP) mode of infrastructure development. The committee will be chaired by former finance secretary Vijay Kelkar and submit its report within a period of 3 months from the date of its Constitution. Terms of Reference of the Committee Review of the experience of PPP Policy.

1. It will also include the variations in contents of contracts and difficulties experienced with particular conditions.

2. Suggest optimal risk sharing mechanism by analyzing risks involved in PPP projects in different sectors.

3. It will also look into existing framework of sharing of such risks between the Government and project developer.

4. Propose design modifications to the contractual arrangements of the PPP based on best international practices and in correspondence with our institutional context.

5. Suggest measure to Government in order to improve capacity building for effective implementation of the PPP projects.

6. For firming-up its recommendations, the Committee may consult various stake holders in the different sectors including private, government sector, legal experts, banking and financial institutions and academia.

The Millennium Development Goals (MDGs) are eight international development goals that were established following the Millennium Summit of the United Nations in 2000, following the adoption of the United Nations Millennium Declaration. All 189 United Nations member states at the time (there are 193 currently), and at least 23 international organizations, committed to help achieve the following Millennium Development Goals by 2015. India‟s Progress India has halved its incidence of extreme poverty, from 49.4 per cent in 1994 to 24.7 per cent in 2011, ahead of the 2015 deadline set by the U.N The report set the limit for extreme poverty as those living on $1.25 or less a day. The reduction in poverty is still less than that achieved by several of India’s poorer neighbours. Pakistan, Nepal and Bangladesh have each outstripped India in poverty reduction While the report says India is on track to achieving the hunger targets, the nation remains home to 1/4th of the world’s undernourished population, over 1/3rd of the world‟s underweight children, and nearly 1/3rd of the world’s food-insecure people. India has achieved 11 out of 22 parameters in the report — spanning education, poverty, health, education and so on.

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MMR and sanitation. ―slow‖ progress on the other 10 parameters, including maternal mortality and access to sanitation, says the MDG Report. Although the infant mortality rate fell drastically from 88.2 deaths per 1,000 live births in 1990 to 43.8 in 2012, the annual progress on this had been slow. The same could be said for the maternal mortality rate, which fell from 560 per lakh live births in 1990 to 190 in 2013.

Fall in Co2 emission

On the environment front, India is one of the few countries that have reduced its carbon dioxide

emissions in relation to its GDP. India emitted 0.65 kg of carbon dioxide per $1 of GDP in

1990, which fell to 0.53 kg in 2010.

India‟s progress on the MDGs for 2015

Target No. Target Description Progress Signs

1. Halve, between 1990 and 2015, proportion of population below national poverty line

Δ

2. Halve, between 1990 and 2015, proportion of people who suffer from hunger

Θ

3. Ensure that by 2015 children everywhere, boys and girls alike, will be able to complete a full course of primary education

ΔΔ

4. Eliminate gender disparity in primary and secondary education, preferably by 2005, and in all levels of education no later than 2015

Δ

5. Reduce by two-thirds, between 1990 and 2015, the under-five mortality rate

ΘΔ

6. Reduce by three quarters, between 1990 and 2015, the maternal mortality ratio

ΘΔ

7. Have halted by 2015 and begun to reverse the spread of HIV/AIDS Δ

8. Have halted by 2015 and begun to reverse the incidence of malaria and other major diseases

ΘΔ

9. Integrate the principles of sustainable development into country policies and programmes and reverse the loss of environmental resources

ΔΔ

10. Halve, by 2015, the proportion of people without sustainable access to safe drinking water and basic sanitation

ΔΘ

11. By 2020, to have achieved, a significant improvement in the lives of at least 100 million slum dwellers

φ

12. In cooperation with the private sector, make available the benefits of new technologies, especially information and communication

ΔΔ

Δ : Moderately/almost nearly on track considering all indicators

Θ : Slow/almost off-track considering all indicators

ΔΔ : On-track or fast considering all indicators

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Sustainable development goals One of the main outcomes of the Rio+20 Conference was the agreement by member States to launch a process to develop a set of Sustainable Development Goals (SDGs), which will build upon the Millennium Development Goals and converge with the post 2015 development agenda. It was decided establish an "inclusive and transparent intergovernmental process open to all stakeholders, with a view to developing global sustainable development goals to be agreed by the General Assembly". In the Rio+20 outcome document, member States agreed that sustainable development goals (SDGs) must:

1. Be based on Agenda 21 and the Johannesburg Plan of Implementation. 2. Fully respect all the Rio Principles. 3. Be consistent with international law. 4. Build upon commitments already made. 5. Contribute to the full implementation of the outcomes of all major summits in the economic,

social and environmental fields. 6. Focus on priority areas for the achievement of sustainable development, being guided by the

outcome document. 7. Address and incorporate in a balanced way all three dimensions of sustainable development

and their interlinkages. 8. Be coherent with and integrated into the United Nations development agenda beyond 2015. 9. Not divert focus or effort from the achievement of the Millennium Development Goals. 10. Include active involvement of all relevant stakeholders, as appropriate, in the process.

It was further agreed that SDGs must be:

1. Action-oriented 2. Concise 3. Easy to communicate 4. Limited in number 5. Aspirational 6. Global in nature 7. Universally applicable to all countries while taking into account different national realities,

capacities and levels of development and respecting national policies and priorities. The outcome document further specifies that the development of SDGs should:

1. Be useful for pursuing focused and coherent action on sustainable development 2. Contribute to the achievement of sustainable development 3. Serve as a driver for implementation and mainstreaming of sustainable development in the

UN system as a whole 4. Address and be focused on priority areas for the achievement of sustainable development

The Rio+20 outcome document The Future We Want resolved to establish an inclusive and transparent intergovernmental process on SDGs that is open to all stakeholders with a view to developing global sustainable development goals to be agreed by the UNGA.

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Manufacturing Sector

Enterprises Investment in plant & machinery

Micro Enterprises Does not exceed twenty five lakh rupees

Small Enterprises More than twenty five lakh rupees but does not exceed five crore rupees

Medium Enterprises More than five crore rupees but does not exceed ten crore rupees

Service Sector

Enterprises Investment in equipments

Micro Enterprises Does not exceed ten lakh rupees:

Small Enterprises More than ten lakh rupees but does not exceed two crore rupees

Medium Enterprises More than two crore rupees but does not exceed five core rupees