Tuesday, January 3, 2012

PM’s address at the 99th Annual Session of the Indian Science Congress
The Prime Minister, Dr. Manmohan Singh, addressed the 99th Annual Session of the Indian Science Congress, in Bhubaneshwar today. Following is the text in Prime Minister’s address on the occasion:


“I am delighted to be here in Bhubaneswar for the 99th Annual Sessio¬n of the Indian Science Congress. Odisha is a most appropriate venue for the Congress as this year we celebrate the 60th anniversary of the UNESCO-Kalinga Prize set up by the Late Shri Biju Patnaik. Indian science owes much to the vision of our early nation builders who gave science a prominent place in our development planning processes.

I congratulate Professor Geetha Bali for choosing, as the theme for the Congress, the role of Science and Technology for Inclusive Innovation with special reference to the role of women.

It was a hundred years ago that Madame Marie Curie, one of the most outstanding scientists of the 20th century, won her first Nobel Prize. To honour her achievements, last year was declared as the International Year of Chemistry.

Marie Curie blazed a trail for women in the world of science. But her work also exemplified her belief that science should, in the end, contribute to tangible social good. She helped to set up X-ray stations during the First World War and established the Curie Foundation which became a major force for the treatment of the dreaded disease of cancer.

I have often spoken about the commitment of our Government to give a boost to the science and technology sector in the country. We have taken several steps towards this end.

• We have greatly expanded the higher education infrastructure for Science and Technology by establishing new institutions.

• Public investment in Research and Development has been growing at 20-25% per year during the 11th Plan period.

• We have funded a number of schemes to rejuvenate research and scientific excellence in universities.

• We have introduced a large number of scholarships; most notably, the Innovation in Science Pursuit for Inspired Research or INSPIRE scheme which gives awards to one million science students.

There is also some evidence that these efforts are beginning to produce results.

Over the last few years, the number of scientific publications by Indian scientists working in India has increased at more than 12% per annum against the global average of 4%. India has moved from the 15th rank in 2003 to the 9th rank in 2010 with respect to the number of publications in peer-valued journals.

The university research system is also showing signs of rejuvenation. In 2008, I gave away incentive awards to 14 universities under the Promotion of University Research and Scientific Excellence (PURSE) scheme. In 2010, 30 more universities have qualified under the same criteria. The University of Rajasthan leads among the top 50 Indian scientific institutions in citations per paper under international collaboration. We produce, I have been told, 8,900 Ph.Ds annually in science and engineering, three thousand more than five years ago.

The INSPIRE scheme is doing well and is also responding to our concerns about inclusiveness. The enrolment of weaker sections in the scheme is good and 49.6% of the INSPIRE awardees are women. More than 60% of INSPIRE fellows pursuing doctoral research happen to be women.

Over the past few decades, India`s relative position in the world of science had been declining and we have been overtaken by countries like China. Things are changing but we cannot be satisfied with what has been achieved. We need to do much more to change the face of Indian science. We must strengthen the supply chain of the science sector. While it is true that science and engineering continue to attract some of our best students, many of them later opt for other careers because of relatively poorer prospects in science.

We must also make scientific output more relevant to our stage of development. It is said that science is often pre-occupied with problems of the rich, ignoring the enormous and in many ways more challenging problems of the poor and the under-privileged.

As we head into the Twelfth Plan, there are some objectives we must try to achieve in the Science and Technology sector.

First, we must ensure a major increase in investment in R&D, including by industry and strategic sectors.

Second, we must the ensure creation of a new innovation ecosystem.

Third, we must achieve greater alignment of the Science and Technology sector with the inclusive development needs of our nation.

Fourth, we must expand basic science infrastructure.

Fifth, we must encourage greater research collaboration among universities and national laboratories. We hope to use the National Knowledge Network to this end.

Finally, we must enlarge the reach of international collaboration.

As far as resources are concerned, the fraction of GDP spent on R&D in India has been too low and stagnant. We must aim to increase the total R&D spending as a percentage of GDP to at least 2 per cent by the end of the XII Plan Period from the current level of about 1 per cent. This can only be achieved if industry, which contributes about one-third of the total R&D expenditure today, increases its contribution significantly. I sincerely believe that Public Sector Undertakings, particularly those in the energy sector should also play a major role in this expansion.

We have to increase public private partnerships and catalyse significantly increased interaction between publicly owned Science and Technology institutions and industry. It is in some ways ironic that General Electric and Motorola have created world-class technology hubs in India, while our own industry has not done so, except perhaps in the pharmaceutical sector. We need therefore, to look at ways of incentivising private Research and Development investment under Indian conditions.

At present, publicly funded R&D is skewed in favour of fundamental rather than applied research. It is easier to attract industrial funds into applied research areas and a set of principles should be formulated to push such funding and to drive Public-Private-Partnerships in Research and Development. The Biopolis in Singapore is an interesting example of a cluster approach that has brought together 2,000 scientists and researchers in the area of bio-sciences from public laboratories and private industry in one place. In India, we have our own Open Source Drug Discovery project, which is a ‘virtual’ cluster enabling the creation of affordable and effective solutions which would not be likely with a conventional ‘in-lab’ approach.

While research generates new knowledge, we need innovation to use this knowledge creatively and productively for social benefit. Our Government has declared 2010-20 as the “Decade of Innovations”. We need to give practical meaning to innovation so that it does not end up being just a buzz word.

I understand that the National Innovation Council is proposing to set up an India Inclusive Innovation Fund that will drive and catalyse enterprise, entrepreneurship, and venture capital, while targeting solutions for the bottom of the national pyramid.

In this context, it is important that we explore and rejuvenate traditional knowledge systems found all over our country in areas such as agriculture, architecture, handicrafts and textiles. One need go no further than the tribal communities of the Kharia, Santhals, Gonds and Kolhas who live in the deep forest areas of Mayurbhanj and have a reservoir of knowledge on medicinal usage of locally available plants.

I congratulate the tribal community of Koraput for the global recognition they have received for their contribution to conserving bio-diversity and developing climate-change resilient farming systems.

An occasion like the present one should be used to revisit a fundamental question: what is the role of science in a country like India? There is no simple answer. But for a country grappling with the challenges of poverty and development, the over-riding objective of a comprehensive and well-considered policy for science, technology and innovation should be to support the national objective of faster, sustainable and inclusive development.

There is much that the scientific community can do to achieve these objectives. Research should be directed to providing `frugal` solutions to our chronic problems of providing food, energy and water security to our people. Science should help us understand how to give practical meaning to the concept of sustainable development and green growth. Science should help us shift our mindsets from the allocation of resources to their more efficient use. Technology and process engineering should help us reach the benefits of development to those who need it most.

Under the National Action Plan on Climate Change, our government has launched eight National Missions in important areas such as Sustainable Agriculture, Water, Energy Efficiency, Solar Energy and Forestry. All the Missions have strong components of science and technology. I would urge the scientific community to pool their knowledge and wisdom to contribute to the success of these critical National Missions.

Several initiatives have already been taken. The Solar Energy Corporation of India headed by Dr. Anil Kakodkar has been established and is now a functional entity. A National Water Policy is under active preparation. The National Mission on Strategic Knowledge for Climate Change has already identified two centres of excellence at IIT, Mumbai and ICRISAT, at Hyderabad to build capacities in climate science.

Increasing food production and nutritional security are critically important and our agricultural scientists should therefore work towards scientific breakthroughs that can enable a second green revolution to become a living reality.

We are examining a proposal to build national capacity and capability in supercomputing which will be implemented by the Indian Institute of Science Bangalore at an estimated cost of Rs. 5000 crore.

The Government is also considering a proposal to establish a Neutrino Observatory in Theni district in Tamil Nadu with a proposed investment of Rs 1350 crore.

The Department of Earth Sciences has launched a Monsoon Mission to improve the predictability of the Indian monsoons.

This year the Nobel Committee recognized the contributions of three extraordinary women who were inspirational agents of change in the struggle for peace, democracy and human dignity in their respective countries.

In India too women are making a mark in traditionally male bastions and decisively breaking the glass ceiling. The Project Director of the Agni Missile programme is a distinguished woman scientist Dr. Tessy Thomas. Last year, for the first time, three women scientists received the prestigious Shanti Swarup Bhatnagar award, as compared to a total of only 11 women awardees for all the years since 1958 up to then.

I congratulate these creative women scientists. I hope that their examples will motivate other women to take up careers in science, where women are under-represented.

I commend the Department of Science and Technology for introducing the "Women Scientists Scheme" which has helped more than 2000 women scientists resume careers after breaks arising from family commitments.

The Department of Science and Technology is also formulating another scheme called `DISHA` which will help women scientists to relocate to other cities. The Department will create 1000 contractual positions tenable in publicly funded institutions for this purpose. A fellowship matching the total emoluments of an in-service Science and Technology professional will be provided when she moves from one station to another.

But, we should also take note of the results of a study published last year that showed that 60% of nearly 2000 Indian women Ph.Ds in science who were surveyed were unemployed. The main reason cited was lack of job opportunities. Only a very small number cited family reasons. This underlines the need for transparency in selection procedures at institutions and also the great importance of gender audits.

This year we celebrate the 125th birth anniversary of the great mathematician, Srinivasa Ramanujan. We have declared 2012 to be the National Mathematical Year to emphasize the importance of maintaining our traditional strength in mathematics.

It is a matter of great pride that the name of another great Indian scientist Satyendranath Bose is associated with an elementary particle that may revolutionise our understanding of sub-atomic physics.

In the final analysis, the pursuit of science is a process of unlocking the human mind. It is an exploration of the mystery, beauty and method in the universe by stretching the frontiers of our imagination. We need to invoke the power of science in every sphere of our economy and way of life.

I end by quoting Isaac Asimov who said "There is a single light of science and to brighten it anywhere is to brighten it everywhere"

Monday, January 2, 2012

India Raises Iron Ore Export Tax
India has raised the export tax on iron ore, likely increasing local prices and also deepening a slump in shipments of the steelmaking material from the world's third-largest supplier.The government increased the tax to 30%, effective Dec. 30, 2011, from 20% on both iron-ore fines and lumps, according to an order posted on the Central Board of Excise and Customs website Monday.The tax rise will likely hurt India's export competitiveness. India sells iron ore mainly in the spot market to China, unlike Australia and Brazil, the top two iron-ore producers, which sell the commodity mostly through long-term contracts.Shipments from the South Asian country decreased 28% between April and November to 40 million tons, according to the Federation of Indian Mineral Industries. Volumes have been hit by a mining ban in the southern state of Karnataka, a freeze on sale of old stocks in western Goa state and transport bottlenecks in the eastern state of Orissa."Indian iron ore will no longer be competitive in the world market," said R.K. Sharma, the federation's secretary general. "This [export tax rise] will push the industry to the verge of dying."With high export tax and railway freight, India's iron-ore exports won't exceed 50 million tons this fiscal year through March, he added.India exported 97.64 million tons iron ore last fiscal year.The increase in export tax could lower the profit margin of Sesa Goa Ltd., India's largest iron-ore exporter by volume, Managing Director P.K. Mukherjee said.Prior to the export tax change, industry officials had estimated exports in 2011-12 to be between 60 million and 65 million tons because of mining-related issues.The Supreme Court earlier this year banned mining in the major iron-ore producing districts of Karnataka to prevent illegal mining and environmental damage. In Goa, moves to reduce environmental impact and illegal mining are affecting production. The two states account for around 70% of India's iron-ore exports.The tax move follows lobbying by local steelmakers who wanted the level to be raised in order to preserve the raw material because of rapid expansion in capacity by the steel sector.- Umesh Shanmugam
 India’s Foreign Trade: November, 2011

EXPORTS (including re-exports)

India’s exports during November, 2011 were valued at US$ 22321.64 million (Rs.113519.82 crore) which was 3.87 per cent higher in Dollar terms (17.34 per cent higher in Rupee terms) than the level of US$ 21489.49 million (Rs. 96742.01) during November, 2010. Cumulative value of exports for the period April-November 2011 -12 was US$ 192694.38 million (Rs 893094.16 crore) as against US$ 144659.95 million (Rs.661055.88 crore) registering a growth of 33.21 per cent in Dollar terms and 35.10 per cent in Rupee terms over the same period last year.

IMPORTS

India’s imports during November, 2011 were valued at US$ 35922.43 million (Rs.182688.55 crore) representing a growth of 24.55 per cent in Dollar terms (40.70 per cent in Rupee terms) over the level of imports valued at US$ 28842.33 million ( Rs. 129843.26 crore) in November, 2010. Cumulative value of imports for the period April-November, 2011-12 was US$ 309530.45 million (Rs.1435304.79 crore) as against US$ 237664.08 million (Rs. 1085780.54 crore) registering a growth of 30.24 per cent in Dollar terms and 32.19 per cent in Rupee terms over the same period last year.

CRUDE OIL AND NON-OIL IMPORTS:

Oil imports during November, 2011 were valued at US$ 10307.1 million which was 32.28 per cent higher than oil imports valued at US$ 7792.1 million in the corresponding period last year. Oil imports during April-November, 2011-12 were valued at US$ 94116.5 million which was 42.67 per cent higher than the oil imports of US$ 65967.8 million in the corresponding period last year.

Non-oil imports during November, 2011 were estimated at US$ 25615.3 million which was 21.69 per cent higher than non-oil imports of US$ 21050.2 million in November, 2010. Non-oil imports during April - November, 2011-12 were valued at US$ 215413.9 million which was 25.46 per cent higher than the level of such imports valued at US$ 171696.3 million in April - November, 2010-11.

TRADE BALANCE

The trade deficit for April-November, 2011-12 was estimated at US$ 116836.07 million which was higher than the deficit of US$ 93004.13 million during April-November, 2010-11.

HOTEL SAHARA STAR HOSTED INDIA’S BIGGEST NEW YEAR BASH
SEDUCTION 2012
Mumbai, 1st January, 2012: Sahara Star bid adieu to 2011 with India’s largest New Year bash – SEDUCTION 2012. Filled with excitement, entertainment and the biggest names in Bollywood, the event set the night on fire. Seduction 2012 not only featured electrifying fire and laser shows but also entertaining acts by international dancers and singers.





The night started with a bang as suave Manish Paul opened the show with belly dancers which left the audiences ecstatic with their unmatched performance. This was followed by the sultry and scintillating Neha Dhupia as she sizzled on some of the best Bollywood numbers of 2011 like katiya karo, shiela ki jawani, ohh laa la and many more.
The night unfolded further as the gorgeous Jacqueline Fernandez took the stage and thrilled the audiences with her enigmatic and sensuous performance on songs including dhanno, dum maaro dum, jalebi bai, dhinka chicka etc. The awesome musical duo Vishal - Shekhar then took over for almost an hour and rocked the party with a power packed performance that included their hit tracks of 2011.






On New Year’s event Mr. Vivek Kumar, CEO, Hotel Sahara Star and Aamby Valley City said, “I would like to take this opportunity to thank everybody for their overwhelming response for SEDUCTION 2012. 31st eve was rocking at Hotel Sahara Star this year, the entertainment for the evening included performances by gorgeous divas and thrilling power packed acts which the guests enjoyed all night long; we hope this successful endeavor of ours has made your new year begin on a fantastic note. We look forward to bringing in next year with a even bigger bash. On behalf of Team Sahara, I would like to wish all our guests a very happy New Year and wonderful year ahead”
As the clock chimed 12, the stars of the night came together on stage for the final countdown of the year and to welcome 2012 with all the guests present. The New Year at Sahara Star began to the beats of DJ Amann Nagpal’s music as he took the party to new heights and amplified the night with his foot stomping tunes.
The grand party offered the best ambiance, music, lights, and sound to welcome 2012 right under World’s biggest pillar less clear to sky dome.
An array of cuisines from the finest chefs brought mouthwatering dishes from the Nine Food & Beverage Destinations (including Namak, Aafrein, Mabruk, Ocean, Earthplate, Lagoon Lounge). Accompanying these culinary treats guests chose their favorite soft beverages, premium imported liquor, exotic mixers and juices at the bars located at each zone.
SEDUCTION 2012 promised to be the best party this new year’s eve. Guests enjoyed the elegant fusion hospitality and entertainment at this one-of-a-kind New Year’s Eve experience amidst magnificent tropical lagoon offering a flamboyance of Las Vegas


Qualified Foreign Investors (QFIS) Allowed to Directly Invest in Indian Equity Market; Scheme to Help Increase the Depth of the Indian Market and in Combating Volatility Beside Increasing Foreign Inflows into the County


In a major policy decision, the Central Government has decided to allowQualified Foreign Investors (QFIs) to directly invest in Indian equity market in order to widen the class of investors, attract more foreign funds, and reduce market volatility and to deepen the Indian capital market. QFIs have been already permitted to have direct access to Indian Mutual Funds schemes pursuant to the Budget announcement 2011-12. Today’s decision is a next logical step in the direction.
                                                     
  Foreign Capital inflows to India have significantly grown in importance over the years. These flows have been influenced by strong domestic fundamentals and buoyant yields reflecting robust corporate sector performance.
               
   In the present arrangement relating to foreign portfolio investments, only FIIs/sub-accounts and NRIs are allowed to directly invest in Indian equity market. In this arrangement, a large number of Qualified Foreign Investors (QFIs), in particular, a large set of diversified individual foreign nationals who are desirous of investing in Indian equity market do not have direct access to Indian equity market.In the absence of availability of direct route, many QFIs find difficulties in investing in Indian equity market.
               
  As a first step in this direction, QFIs have been permitted direct access to Indian Mutual Funds schemes pursuant to the Budget announcement 2011-12. As a next logical step, it has now been decided to allow QFIs to directly invest in Indian equity market in order to widen the class of investors, attract more foreign funds, and reduce market volatility and to deepen the Indian capital market.
           
  The QFIs shall include individuals, groups or associations, resident in a foreign country which is compliant with FATF and that is a signatory to IOSCO’s multilateral MoU. QFIs do not include FII/sub-accounts.
            Salient Features of the Scheme:
·         RBI would grant general permission to QFIs for investment under Portfolio Investment Scheme (PIS) route similar to FIIs.
·         The individual and aggregate investment limit for QFIs shall be 5% and 10% respectively of the paid up capital of Indian company. These limits shall be over and above the FII and NRI investment ceilings prescribed under the PIS route for foreign investment in India.
·         QFIs shall be allowed to invest through SEBI registered Qualified Depository Participant (DP). A QFI shall open only one demat account and a trading account with any of the qualified DP. The QFI shall make purchase and sale of equities through that DP only.
·         DP shall ensure that QFIs meet all KYC and other regulatory requirements, as per the relevant regulations issued by SEBI from time to time.  QFIs shall remit money through normal banking channel in any permitted currency (freely convertible) directly to the single rupee pool bank account of the DP maintained with a designated AD category - I bank. Upon receipt of instructions from QFI, DP shall carry out the transactions (purchase/sale of equity).
·         DP shall be responsible for deduction of applicable tax at source out of the redemption proceeds before making redemption payments to QFIs.
·         Risk management, margins and taxation on such trades by QFIs may be on lines similar to the facility available to the other investors.
               
  The scheme is expected to help increase the depth of the Indian market and in combating volatility beside increasing foreign inflows into the county.
           
SEBI and RBI are expected to issue relevant circulars to operationalise the scheme by January 15, 2012.

Sunday, January 1, 2012


Prime Minister’s New Year Message to Nation

The Prime Minister, Dr. Manmohan Singh, has greeted the nation on the eve of the New Year. Following is the text of the Prime Minister’s message to the Nation on the occasion:

“My Fellow Citizens,

I wish you all a peaceful, productive and secure New Year.

New Year’s Day is a day of resolutions. Each of us makes our own resolutions – to live a healthier life, to live a more honest life, to live a better life and to live a happier life. I sincerely hope in the New Year we can all work together with a new resolve: to make our homes and neighbourhood, our village or town, and our nation a better place to live in.

If each of us works towards that end, we can be sure that we are also making the world a better and a safer place.

The year that has just ended was a very difficult year for the world. Economic crises, socio economic tensions, political upheavals in many developing countries and political deadlock in some of the developed countries, all cast their shadow on 2011. A ‘revolution of rising expectations’, fostered by the extraordinary reach of the electronic media and the connectivity provided by new social networking platforms, has kept Governments around the world on their toes.

We in India have had our share of problems.

The Indian economy slowed down and inflation edged up. Concern about corruption moved to the centre stage.

We must not be too downcast at these events. All countries and economies go through cycles. We must remember that downturns are followed by upturns. Indeed, they are often a test of our ability to respond to new challenges.

The task before us is clear. We must address the new concerns that have arisen while remaining steadfast in our commitment to put the nation on a development path which ensures rapid, inclusive and sustainable growth. I want to assure you all on this New Year’s day that I personally will work to provide an honest and more efficient government, a more productive, competitive and robust economy and a more equitable and just social and political order.

I believe we have made more progress than is commonly realised. I am personally delighted that Government was able to introduce the Food Security Bill and the Lok Pal and Lok Ayukta Bill in Parliament. The Lok Pal and Lok Ayukta Bill was passed by the Lok Sabha. It is unfortunate that the Bill could not be passed in the Rajya Sabha. However, our Government is committed to the enactment of an effective Lok Pal Act. Taken together with the Right to Information Act, the National Rural Employment Guarantee Act and the Right to Education Act, these are legislative legacies that generations of Indians will come to value, appreciate and benefit from.

Friends,

On this New Year’s Day I do not wish to dwell on the year gone by. Instead, I would like to focus instead on the challenges of the future, so that we can all work together to over come them.

Our biggest challenge today remains that of banishing poverty, ignorance and disease. Simultaneously, we must work to build an India that holds the promise of prosperity to the many millions of our people who are just beginning to emerge out of poverty. We must remain focused on this fundamental task in the Twelfth Plan period which begins in 2012-13.

As I look ahead I see Five Key Challenges facing the nation. To meet these challenges we need the concerted efforts of the central government, the state governments, political parties and indeed all concerned citizens.

First, there is the urgent challenge of eradicating poverty, hunger and illiteracy and providing gainful employment to all. I call this the challenge of Livelihood Security.

There are many steps we need to take to address this challenge and of these, the most important is to empower every citizen with the light of education. I say this with the deepest conviction because I know what education did for me.

I was born into a family of modest means, in a village without a doctor or a teacher, no hospital, no school, no electricity. I had to walk miles every day to go to school, but I persevered and was fortunate to be able to secure a high school education, and then go on to higher education. It is this access to education that transformed my life and gave me new opportunities which others with my background could not dream of.

I firmly believe that educating our children, providing them with employable skills, while also ensuring their good health, must be our first and primary task. There is no better investment we can make in the future – the future of our children, of our families, of our communities, and of our nation.

Along with education and affordable health care, we must also generate a growth process that can provide gainful employment to all. This is the only way that we can wipe out poverty in a sustainable fashion.

However, since many elements of this strategy will take time to bear full fruit, we must in the meantime pay urgent attention to the needs of those who need immediate support. It is for this reason that the government has taken steps to provide minimum employment and access to food to those who need it most.

I believe that the initiatives we have taken to invest in education and health, provide an employment guarantee and also provide food security, constitute a robust response to the challenge of providing greater Livelihood Security for our people.

My Fellow Citizens,

The second challenge that demands our attention isEconomic Security. Economic security comes from having an economy that can produce the material output required to achieve desired consumption levels for the people and one that can generate the productive jobs needed to satisfy the aspirations of the workforce. To reach this level we will have to ensure rapid growth accompanied by adequate job creation. Rapid growth is also necessary to generate the revenues we need to finance our livelihood security programmes.

The process of economic reforms was initiated in the mid eighties and accelerated the 1990s precisely to accelerate our growth potential. Because of our democratic system, the reforms were introduced gradually to begin with, in order to garner broad based support. That we succeeded in this objective is evident from the fact that successive governments of different political complexions at the centre, and many governments belonging to different political parties in the states, have more or less pushed in the same direction. However, this gradualist pace also meant that the full effects of the reforms took time to have effect.

Yet, the fruits of this effort have been amply evident in the past several years. The average growth rate of the economy was around 4 % per year before the 1980s. It increased to an average of about 8 % since 2004.

Although we have every reason to be satisfied with this performance, it would be wrong to conclude that India is now unshakeably set on a process of rapid growth. Our growth potential is indeed established. But there are many challenges we have to face if we want to maintain this growth in the years ahead, as indeed we must.

To achieve sustained rapid growth we need to do more than halt the current slowdown though that is certainly the first step.  We need to usher in a second agricultural revolution to ensure sufficient growth in rural incomes. We also need to usher in the many reforms needed to trigger rapid industrialisation and to build the infrastructure which such industrialisation needs.

Rapid growth will also bring structural change, notably in the rate of urbanisation. Our urban population is expected to grow from 380 million at present to 600 million by 2030. We must be able to provide productive jobs in the non agricultural sector for this expanding urban population and we must also be able to expand our urban infrastructure to deal with the expected expansion of the urban population.

In 1991 when we liberated our economy from the shackles of the Licence-Permit Raj, our main objective was to liberate the creativity of every one of our citizens from the deadweight of bureaucracy and corruption. Today’s youth, born in the 1980s and later, would have no memory of the kind of corruption that the regime of controls and permits had created. To get a railway ticket or a telephone connection you had to bribe someone. To buy a scooter you had to bribe someone to jump the queue!

However, even as the creative energies of our people have been unleashed and old forms of corruption have vanished, new forms of corruption have emerged which need to be tackled. Elimination of corruption is critical to support genuine entrepreneurship. It is also the demand of the ordinary citizen who encounters corruption all too often in everyday transactions with those in authority.

This is a serious problem that calls for a multi-dimensional response.

New institutions such as the Lokpal and the Lokayuktas are an important part of the solution and we have initiated the process for establishing them. But this is only one part of the solution. We also need reforms in systems of government which would increase transparency and minimise discretion so that the scope of misgovernance is reduced. We have taken several steps in this regard. We have introduced in Parliament a Bill on Citizen’s Charters which will empower citizens to demand services at appropriate standards from government departments. We have introduced a Bill on Judicial Accountability.

These initiatives will take time to have their full effect and we must therefore be patient. But I do believe they are transformational initiatives, which will be recognised as such a few years down the line.

A critical element in ensuring economic security and prosperity is the need for fiscal stability. India has paid a heavy price in the past for fiscal profligacy. Many of us can recall the dark days of 1990-91 when we had to go around the world begging for aid. Fortunately we were able to overcome the problem fairly quickly and for most of the past two decades we have been able to hold our head high, because we have managed our fiscal resources well. We must ensure that the country does not go down that road once again.

I am concerned about fiscal stability in future because our fiscal deficit has worsened in the past three years. This is mainly because we took a conscious decision to allow a larger fiscal deficit in 2009-10 in order to counter the global slowdown. That was the right policy at the time. But like other countries that resorted to this strategy, we have run out of fiscal space and must once again begin the process of fiscal consolidation. This is important to ensure that our growth process is not jeopardised and, equally important, our national sovereignty and self respect are not endangered.

The most important step for restoring fiscal stability in the medium term is the Goods and Services Tax. This would modernise our indirect tax system, increase economic efficiency and also increase total revenues. Another important step is the phased reduction in subsidies. Some subsidies, such as food subsidies are justifiable on social grounds and are expected to expand once the Food Security bill becomes operational. But there are other subsidies that are not and these must be contained.

Some of the reforms needed for economic security attract controversy and cause nervousness. This is understandable, but we should learn from our past experience with reforms. Things that we take for granted today caused similar controversy twenty years ago. We should remember that change is necessary for development and while we must anticipate change, and even protect the most vulnerable from ill effects, we should not lock ourselves into a blind refusal to contemplate change. If we have confidence in ourselves, we will be able to meet any challenge.

Friends,

The third challenge we face, is the challenge of Energy Security. Energy is an essential for development because higher levels of production inevitably involve larger energy use. Our percapita energy levels are so low that we need, and must plan for, a substantial growth in energy availability.

The energy security challenge is particularly great for India because we are trying to develop in an environment in which our domestic energy resources are limited and the world is transiting to a period when energy is likely to be scarce and energy prices are expected to be high.

As a first step, we must ensure effective utilisation of all available domestic energy resources. Unfortunately, our attempt to tap both old and new sources of energy is being threatened by a range of problems. Be it coal or hydro power, oil or nuclear power we find new challenges that have to be overcome to develop these resources to the fullest extent possible. We must re-examine all domestic constraints on such development to see how they can be overcome.

The domestic agenda for energy security is clear. We need new investment in established sources of energy such as coal, oil, gas, hydro electricity and nuclear power. We also need investment in new sources of energy, like solar and wind. Parallel with expanding domestic supplies, we need to promote energy efficiency to contain the growth of energy associated with rapid growth.

Both goals of expanding new investment and achieving energy efficiency require a more rational pricing policy, aligning India’s energy prices with global prices. This cannot be done immediately, but we need to outline a phased programme for such adjustment and then work to develop support for making the transition. I realise that this will not be easy, but unless we can achieve this transition we will not be able to promote energy efficiency as much as we should, and we will certainly not be able to attract enough investment to expand domestic energy supplies.

Energy security also has a global dimension. Even with the best domestic effort our dependence on imported energy is expected to increase. We need assured access to imported energy supplies and also access to new energy related technologies. This means we need sensible policies that can promote economic partnership with countries that have energy resources and technologies. We also need a pro active foreign policy, protecting our access to such resources and to foreign technology.

A fourth important challenge we face in the years ahead is the challenge of ecological security. Economic growth is essential for the well being of our people, but we cannot allow growth to be pursued in a manner which damages our environment. We owe it to future generations to ensure that the environment they inherit from us is at least as capable of providing economic security for them as the one we inherited from our parents

We cannot allow the waters of our rivers to be polluted by untreated effluent and sewage. Yet this is happening today because of weak regulation and lack of enforcement over industry and the cities. Similarly, we cannot allow air pollution to proceed unabated promoting respiratory diseases which impose a heavy burden on large numbers of our people especially the poor.

Ecological security also involves protection of our forests which play a critical role not only in absorbing carbon emissions but also in providing us with water security. Forests help reduce water run off and siltation and increase water retention in the ground, recharging our underground acquifers. Some forest land often has to be surrendered to allow the exploitation of natural resources including energy and mineral resources and hydro electric potential. This must be done in a manner which minimises the extent of surrender and also provides sufficient compensatory afforestation to ensure ecological security to the nation.

All these problems can be solved and have been solved in other countries. It requires stronger and more transparent regulation and it also involves extra costs. These costs must be borne by those who pollute and this principle must be well understood and strictly enforced.

Looking beyond the immediate ecological issues, there is the larger challenge of climate change. As responsible citizens of the world we must pursue a pattern of development which reduces greenhouse gas emissions per unit of our GDP by about 20-25% by 2020 as our contribution to global ecological security. This objective is closely linked to the pursuit of rational energy policies mentioned earlier.                                                  

Dear Citizens,

Finally, and most importantly, our vibrant democracy faces threats to internal and external security which together can be viewed as  the challenge of National Security.  

Despite grave provocations from extremists and terrorists, the people of India have remained united. They have not lost faith in our plural, secular and inclusive democracy. Across the world people look to India for inspiration. Our model of Inclusive Growth in an Open Society inspires those who seek freedom from tyranny.

A new wave of democracy demanding the empowerment of ordinary people is sweeping the world and India stands tall as a functioning democracy. We are a nation of over a billion people, plural, secular, democratic – with all the great religions of the world freely practiced here, with so many languages and cuisines, so many castes and communities – living together in an open society. This is an achievement for which every Indian can be proud.

The world acknowledges this achievement. I do believe that the world wants India to succeed because India offers hope.

Our democracy has its faults, but our people are aware of them and have shown their ability to correct these faults.

Often democracy can be frustrating – both to those who are in government and to those who expect it to be more efficient, effective and humane. But our democracy is our strength. It is the basis of our unity. It is also the most important guarantor of internal security.

Equally important for our national security is the modernisation of our defence forces. Indeed, India’s economic and energy security also require this.  Our Army, our Navy and our Air Force require modernisation and upgradation of personnel and systems. Ensuring this will remain my most important task as Prime Minister.                                                     

Dear Fellow Citizens,

Today I have shared my thoughts with you to make you understand the nature of the challenges we face entering a New Year.

I have identified Five key challenges facing us. These will be on top of our policy agenda this year - Livelihood Security (education, food, health and employment), Economic Security, Energy Security, Ecological Security and National Security.

In addressing each of these five challenges we must work together as a nation, while working with like-minded nations around the world.

I assure you that I will work with all the energy at my command to ensure that we meet each of these challenges and overcome them.

Let us stand united as a people in overcoming these challenges.

I wish you the best in the year and the years ahead.

Jai Hind!”
May the new year usher in peace and prosperity. May the light of happiness shine just that bit brighter. May laughter touch hearts and conquer anger. May the world live as one!