ADB 46th Annual Meeting of the Board of Governors. Delhi, India 2-5 May 2013
Govt taking measures to spur investment -Prime Minister Dr. Manmohan Singh.
The government is taking measures to spur investment and accelerate economic growth to 8 percent from the sluggish nearly 5 percent recorded in 2012-13, Prime Minister Manmohan Singh said Saturday.
"India has set itself a target of over 8 percent annual growth in our 12th Five Year Plan, which runs from 2012 to 2017. This is the rate of growth the country achieved over the past decade," he said at the inaugural of the 46th annual meeting of the Asian Development Bank (ADB) board of governors here.
"We are initiating measures to spur investment and to make India more attractive to investors both at home and abroad," he said. "We have taken steps to fast track major infrastructure projects."
Low investment is one of the major reasons behind the recent slowdown in the economic growth. India's GDP growth is estimated to have slumped to nearly 5 percent in the financial year ended March 31, the slowest in more than a decade.
The prime minister said his government had also introduced strong measures to achieve fiscal consolidation.
The country's current account deficit has surged to a record high, and fiscal deficit is expected to be at around 5.2 of the GDP in 2012-13.
In the current financial year, fiscal deficit is estimated to decline to 4.8 percent of the GDP.
Manmohan Singh said that despite the recent slowdown, India and other developing countries remained the engine of global growth.
Referring to the IMF estimates, the prime minister said the advanced developed economies were expected to grow at 1.2 percent while developing Asia was expected to grow more than five times faster at 7.1 percent in 2013.
Mr. Rakesh Kumar, President of IEIA presenting bouquet to Union Finance Minister... Asian Development Bank AGM IN GREATER NOIDA.
Mr. Rakesh Kumar, President of the Indian Exhibition Industry Association (IEIA) welcomes the holding of the Asian Development Bank (ADB) conference at India Expo Centre, here from 2-5 May, 2013 and termed it as a landmark achievement for the NCR of Delhi for hosting event of such a magnitude. IEIA President said that such events are the multiplier of the economic growth for the entire city which is a part of NCR of Delhi. He said that hosting of such event outside Delhi give a lot of opportunity to the overseas visitors to provide employment to the different sections of the people. Mr. Kumar said that the conference being held at Greater Noida shows that availability of state of art venues in India. Similar venues are also available in Hyderabad and Bangalore, though the India has only 8 such venues of international scale compared to 84 in China. This is the first time that a conference of such a magnitude of international scale is being held outside Vigyan Bhawan, which is Government of India conventional and pet venue. The ADB conference is hosting simultaneously seminars, bilateral meetings, Governor’s meetings, media lounges, India pavilion and exhibition of the different connected organizations. The entire activities are being taking place under one roof. The Conference will also be addressed by the Prime Minister of India and a large number Finance Ministers of other countries are also addressing the seminar. President of IEIA stressed the need to declare “Exhibition and Event as Industry” by the Government of India. It is estimated that the presently business accrued from such exhibitions and events in India is to the tune of Rs. 94000 crore. He said that a policy of the Government to boost this sector will help to grow this industry at its full potential at the level of Rs. 8,00,000 crore by 2020. IEIA has already presented a vision statement to the Government to this effect. Mr. Rakesh Kumar, President of IEIA is also Executive Director of Export Promotion Council for Handicrafts (EPCH) which is holding Asia’s largest handicrafts and gifts fair and also the Director of India Expo Centre & Mart. He has completed India Expo Centre and Mart from concept to commission as its Managing Director
FM P.Chidambaram, ADB, President Takehiko Nakao, FICCI President, Naina Lal Kidwai & Eco Secy Arvind Mayaram at the ADB meeting in Noida
Speaking at India Day: “India - Next Wave of Inclusive Growth" at ADB Meeting at IEML, Greater Noida on Friday, Chidambaram said: "While, the Indian economy grew at 6.7%, 8.6%, 9.3% and 6.2% in the four years from 2008-09 to 2011-12, respectively, GDP growth is expected to decline to 5.0 to 5.5 per cent in fiscal 2012-13."
"Clearly, the persistence of the global slowdown has finally impacted us significantly. I must, however, candidly admit that some of the reasons for our slowdown are home-grown," he said.
The minister said the boost to demand given by the monetary and fiscal stimulus following the global crisis of 2008 was significant.
"This helped in strong recovery with final consumption growing at an average of over 8 per cent annually between 2009-10 and 2011-12. An unfortunate consequence of this, however, was somewhat high and stubborn inflation.
"It is this that led to a strong contractionary monetary response that slowed consumption demand. Starting 2011-12, corporate investments have been adversely affected."
"As the growth slowed down and Government revenues failed to keep pace with welfare spending, the fiscal deficit emerged as a matter of concern. With Government savings falling and private savings also shrinking, the current account deficit (CAD) widened to 4.6 per cent in H1 of 2012-13 from 4.0 per cent in H1 of the previous year," said Chidambaram.
Speaking on fiscal deficit, the minister said: "Our fiscal deficit in 2012-13 is estimated at 5.2%. We may better this target. The Budget 2013-14 estimates a fiscal deficit of 4.8% at the end of the financial year. I am confident that this will steadily reduce to 3% or even less by 2016-17."
Following is the speech of the Union Finance Minister:
President, ADB, President, FICCI, delegates to the ADB Annual meeting and friends,
I am happy to be here today, when there is renewed optimism in India’s growth story. Seven years ago, when I addressed the opening session of the India Day at the ADB’s Annual Meeting at Hyderabad, I had exhorted you to participate in our efforts. Today, my confidence stems from the fact that while India may not be insulated from the difficulties plaguing the world, India‘s economic fundamentals are strong. With the economic and fiscal reforms already put in place including those on the anvil, I expect India’s growth to be robust and sustainable. I am confident that it will gather further momentum in the coming years. India has become an attractive destination for foreign investors. We have opened up the economy further to foreign direct investments.
Asian Development Bank AGM DELEGATES ARRIVED IN GREATER NOIDA MEETING TO BEGIN AT 9.30 AM
India had hosted the 39th annual meeting of the Asian Development Bank (ADB) in Hyderabad. The feedback the government had received then was that there were not enough Mercedes cars to be hired in the city for use by the 65 finance ministers who came to attend the event.
Eventually, Mercedes cars had to be brought for the delegates from Bangalore, recalls an official involved in organising ADB's annual jamboree in 2006.
That problem is unlikely to recur now, as India hosts the 46th annual meeting of ADB's board of governors from Thursday - at the India Expo Centre and Mart (IECM), Greater Noida, about 40 km from the capital, New Delhi. The four-day event will conclude on Sunday at the sprawling IECM complex, where wi-fi internet connection has been enabled for the occasion.
"Hopefully, we won't face the problem of procuring Mercedes this time, as the event is being held in the National Capital Region and the number and variety of luxury cars in India have gone up significantly over the past seven years," an official said.
Besides, space, too, would not be an issue, as the IECM complex, with eight exhibition halls and 1,800 marts, is spread across 235,000 square metres. The complex has parking space for 8,000 cars and 200 commercial vehicles. That should be enough for the 6,000 delegates expected to be at the four-day event, says an official. Of them, around 4,500 delegates from different foreign countries have already registered for the annual meeting.
Takehiko Nakao is the President of the Asian Development Bank (ADB) and the Chairperson of ADB's Board of Directors. He was elected President by ADB's Board of Governors and assumed office in April 2013.
Ahead of its annual meeting in Greater Noida, the Asian Development Bank issued an advisory for the women delegates asking them to not bare legs or wear short dresses as it could hurt Indian sensibilities and may lead to sexual harassment.
Delegates from 67 countries are attending the meeting being held in the India-Expo mart in Greater Noida from May 2-5.