India plays music to cement cultural, economic ties with Africa

   Prime Minister  Narendra Modi and the African Leaders watching the cultural performances, at the inaugural ceremony of the 3rd India Africa Forum Summit 2015, in New Delhi on October 29, 2015. 

 Point by point analysis of PM Modi speech at India-Africa Forum Summit,Oct 29 ,2015 New Delhi , as regards economic cooperation.  

PM Modi : Two-thirds of India and two-thirds of Africa is under the age of 35 years. And, if the future belongs to the youth, then this century is ours to shape and build.

PC analysis: He has a point. The key is China , which has been very aggressive on Africa business opportunities, is ageing, giving India advantage.

PM Modi : Four hundred thousand new businesses were registered in Africa in 2013; and, mobile telephone now reaches 95% of the population in many places. We will work to reduce digital divide within Africa and between Africa and rest of the world.   

PC analysis: Bharti Airtel made inroads into Africa, but is struggling as experience does not seem to be as rewarding as expected

PM Modi: Africa is now joining the global mainstream of innovation. The mobile banking of M-Pesa, the healthcare innovation of MedAfrica, or the agriculture innovation of AgriManagr and Kilimo Salama, are using mobile and digital technology to transform lives in Africa. 

PC analysis: Surely, these are areas, India must engage with Africa, especially in healthcare as India has already made big strides as a major supplier of affordable pharmaceutical products

PM Modi:Today, Africa and India are two bright spots of hope and opportunities in the global economy. In less than a decade, our trade has more than doubled to over 70 billion dollars. India is now a major source of business investments in Africa. Today, 34 African countries enjoy duty free access to the Indian market. 

PC analysis: True , but it is not as if troubles in China, Europe and Japan are of benefit to us both. The entire world gets affected if major economies like China , US or EU slow down. So, this bright sport and sweet spot things should not be stretched.    

PM Modi : When we meet at Nairobi Ministerial of the WTO in December, we must ensure that the Doha Development Agenda of 2001 is not closed without achieving these fundamental objectives. 
We should also achieve a permanent solution on public stockholding for food security and special safeguard mechanism in agriculture for the developing countries.   

PC analysis: Traditionally India and Africa have worked together in WTO Ministerial Meetings, excepting that some of them become vulnerable to pressures from the developed world when it comes crunch. 

Pic courtesy: PIB

India doing all it takes to woo Africa , promising growth engine

Prime Ministeri Narendra Modi receiving the African leaders during special dinner hosted by him, on the sidelines of the 3rd India Africa Forum Summit, in New Delhi on October 28, 2015.

Pic: Courtesy PIB

Indigo’s IPO great success as Indian aviation flies high on low fuel price

The Initial Public Offering of InterGlobe Aviation , operator of India’s no-frill airlines Indigo has been a grand success. It has raised Rs 30180 million through this IPO which clearly signals investors’ renewed interest in the aviation sector that has seen significant improvement in their sales and profitability.

The low price fuel regime has also helped another low cost airline, Spice which had almost sunk . It has successfully been revived. Aviation is among the few Indian sectors which are flying high on the back of low commodity prices.  

Questions raised on corporate governance about Indigo’s promoters have  deterred  the investors’ interest in its IPO. The promoters had transferred large reserves as dividend before the IPO.

GoAir is also mulling IPO.

Pic: Courtesy Indigo Airlines

The Initial Public Offering of InterGlobe Aviation , operator of India’s no-frill airlines Indigo has been a grand success. It has raised Rs 30180 million through this IPO which clearly signals investors’ renewed interest in the aviation sector that has seen significant improvement in their sales and profitability.

The low price fuel regime has also helped another low cost airline, Spice which had almost sunk . It has successfully been revived. Aviation is among the few Indian sectors which are flying high on the back of low commodity prices.  

Questions raised on corporate governance about Indigo’s promoters have  deterred  the investors’ interest in its IPO. The promoters had transferred large reserves as dividend before the IPO.

GoAir is also mulling IPO.

What improved India’s World Bank ranking in ease of doing business

1.     No capital requirement:  In May 2015 the government adopted amendments to the Companies Act that eliminated the minimum capital requirement.  Now Indian entrepreneurs no longer need to deposit Rs one lakh (USD 1,629 )-equivalent to 111 per cent  of income per capita—in order to start a local limited liability company. The amendments also ended the requirement to obtain a certificate to commence business operations, saving business founders an unnecessary step and five days.

2.     Removal of Inspector Raj in Delhi, Mumbai electricity connections

Another focus is to make the process for getting a new electricity connection simpler and faster. Toward that end the utility in Delhi eliminated an internal wiring inspection by the Electrical Inspectorate—and now instead of two inspections for the same purpose,there is only one. The utility also combined the external connection works and the final switching on of electricity in one procedure.

The utility in Mumbai reduced the procedures and time for connecting to electricity by improving internal work processes and coordination. It combined several steps into one procedure—the inspection and installation of the meter, the external connection works and the final connection. Now companies can get connected to the grid, and get on with their business, 14 days sooner than before. 

Pic courtesy: GOI