PMINDIA
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the creation of National Bench of the Goods and Services Tax Appellate Tribunal (GSTAT).
The National Bench of the Appellate Tribunal shall be situated at New Delhi. GSTAT shall be presided over by the President and shall consist of one Technical Member (Centre) and one Technical Member (State).
The creation of the National Bench of the GSTAT would amount to one time expenditure of Rs.92.50 lakh while the recurring expenditure would be Rs.6.86 crore per annum.
Details:
Goods and Services Tax Appellate Tribunal is the forum of second appeal in GST laws and the first common forum of dispute resolution between Centre and States. The appeals against the orders in first appeals issued by the Appellate Authorities under the Central and State GST Acts lie before the GST Appellate Tribunal, which is common under the Central as well as State GST Acts. Being a common forum, GST Appellate Tribunal will ensure that there is uniformity in redressal of disputes arising under GST, and therefore, in implementation of GST across the country.
Chapter XVIII of the CGST Act provides for the Appeal and Review Mechanism for dispute resolution under the GST Regime. Section 109 of this Chapter under CGST Act empowers the Central Government to constitute, on the recommendation of Council, by notification, with effect from such date as may be specified therein, an Appellate Tribunal known as the Goods and Services Tax Appellate Tribunal for hearing appeals against the orders passed by the Appellate Authority or the Revisional Authority.
The Prime Minister, Shri Narendra Modi, today addressed the inaugural session of the 90th Annual General Meeting of FICCI.
He recalled that around the time of FICCI’s founding in 1927, Indian Industry had united against the Simon Commission that was constituted by the then British Government. He said that Indian Industry had joined all other sections of Indian society, in national interest, at that time.
The Prime Minister said that a similar atmosphere exists today when people of the country are coming forward to fulfill their responsibilities towards the nation. He said the hopes and aspirations of people are to rid the country from internal problems like corruption, and black money. He said political parties and chambers of industry should keep in mind the country’s requirements and the feelings of the people, and work accordingly.
The Prime Minister said that a lot has been achieved since independence, but several challenges have arisen as well. He said the poor seemed to be struggling against the system that came to be established, for things such as bank accounts, gas connections, scholarships, pensions etc. He said the Union Government is working to end this struggle, and to create a system that is transparent and sensitive. He said the Jan Dhan Yojana is one example of this, and increasing “ease of living” has been the focus of the Union Government. He also mentioned the Ujjwala Yojana, construction of toilets under the Swachh Bharat Mission, and Pradhan Mantri Awas Yojana. He said that he has come through poverty, and understands the need to work for the requirements of the poor and the nation. He also mentioned the Mudra Yojana, for collateral-free loans to entrepreneurs.
The Prime Minister said that the Union Government is working to strengthen the banking system. He said the issue of NPAs is a legacy received by the current Government. He said, rumours are now being spread about the Financial Regulation and Deposit Insurance (FRDI) Bill. He said the Government is working to protect the interests of the account holders, but rumours that are being spread are the exact opposite. He said organizations such as FICCI have a responsibility to generate awareness about such issues. He said, that similarly, FICCI has a role to play in making GST more effective. He said the Government’s effort is to ensure that maximum businesses register for GST. He said the more formal the system becomes, the more it will benefit the poor. It will enable easier availability of credit from the banks, and reduce cost of logistics, thereby enhancing competitiveness of businesses. I hope FICCI has some plan to generate large-scale awareness among small traders, he added. He also said that FICCI must also voice concerns, when necessary, on issues such as builders exploiting the common man.
The Prime Minister mentioned policy decisions taken in sectors such as urea, textile, civil aviation, and health, and the benefits achieved from them. He also mentioned reforms in sectors such as defence, construction, food-processing etc. He said that as a result of these measures, India’s rank has risen from 142 to 100, in the World Bank “Ease of Doing Business” rankings. He also mentioned other indicators which point to the robust health of the economy. He said that the steps taken by the Government are also playing a key role in job creation.
The Prime Minister said FICCI has a key role to play in sectors such as food processing, start-ups, artificial intelligence, solar power, healthcare etc. He urged FICCI to play the role of a think-tank for the MSME sector.
The Union Cabinet chaired by Prime Minister Shri Narendra Modi has given its approval for signing of a Memorandum of Understanding (MoU) by Securities and Exchange Board of India (SEBI) with Capital Markets Authority (CMA), Kuwait for mutual co-operation and technical assistance.
The MoU is likely to promote further development of economic links and cooperation between the two regulators, and aims at creating conditions for an effective development of securities markets in the two countries.
It would also contribute towards strengthening the information sharing framework between the two. It is expected to add value to overseas mutual cooperation and regulation activities of SEBI and CMA, Kuwait.
1. At the invitation of H.E. U Htin Kyaw, President of the Republic of the Union of Myanmar, Shri Narendra Modi, Prime Minister of the Republic of India, is paying his first bilateral State visit to the Republic of the Union of Myanmar from 5th to 7th September 2017. The visit is part of the continuing high level interaction between the leaders of the two countries and follows successive State visits to India last year by H.E. President U Htin Kyaw and H.E. State Counsellor Daw Aung San Suu Kyi.
2. Prime Minister Modi was accorded a ceremonial welcome at the Presidential Palace in Nay Pyi Taw on 5th September 2017. He paid a courtesy call on the President of Myanmar, who hosted a State Banquet in his honour. On 6th September 2017, the Indian delegation led by Prime Minister Modi held bilateral talks with the Myanmar delegation led by State Counsellor Daw Aung San Suu Kyi. The talks were held in a warm, cordial and constructive atmosphere as befits the close and friendly relations between the two countries. Thereafter, the State Counsellor and the Indian Prime Minister witnessed the signing and exchange of various documents between Myanmar and India in the areas of health, culture, capacity building, maritime security and collaboration between key institutions and held a Joint Press Conference.
3. Apart from his official engagements in Nay Pyi Taw, Prime Minister Modi will visit places of historical and cultural importance at Bagan and Yangon. In Bagan, he will visit the holy and historic Ananda Temple, where restoration work is being carried out by Indian and Myanmar archaeologists under the expert guidance of the Archaeological Survey of India. In Yangon, he will pay his respects to the memory of General Aung San at the Martyrs’ Mausoleum and also visit the Bogyoke Aung San Museum as well as other prominent sites. He will interact with the Indian origin and expatriate Indian community of Myanmar during his stay in Yangon.
During the talks, the two leaders reviewed developments since the very successful State visits of the President and the State Counsellor of Myanmar to India in August and October 2016 respectively. They reviewed ongoing official exchanges, economic, trade and cultural ties, as well as people-to-people exchanges that reflect the harmony between Myanmar’s independent, active and non-aligned foreign policy and India’s pragmatic Act East and Neighbourhood First policies. They pledged to pursue new opportunities to further deepen and broaden bilateral relations for the mutual benefit of the people of both countries. They reaffirmed their common aspirations for peace, collective prosperity and development of the region and beyond.
4. The Prime Minister of India appreciated the measures taken by the Government of Myanmar towards peace and national reconciliation and commended the on-going peace process of the Government of Myanmar. He noted that peace and stability in Myanmar are of the highest priority to India and reiterated India’s continued support to the Government of Myanmar in consolidating democratic institutions in Myanmar and for the emergence of a democratic Federal Republic.
5. The two leaders discussed the security situation prevailing along their borders and expressed concern at various incidents of terrorism and extremist-inspired violence that have taken place in their respective territories. Recognizing that terrorism remains one of the most significant threats to peace and stability in the region, both sides condemned terrorism in all its forms and manifestations and agreed that the fight against terrorism should target not only terrorists, terror organisations and networks, but also identify, hold accountable and take strong measures against States and entities that encourage, support or finance terrorism, provide sanctuary to terrorists and terror groups, and falsely extol their virtues. Myanmar condemned the recent barbaric terror attacks during the Amarnath Yatra in India as also various acts of terror perpetrated by terrorists from across the borders. India condemned the recent terrorist attacks in northern Rakhine State, wherein several members of the Myanmar security forces lost their lives. Both sides agreed that terrorism violates human rights and there should, therefore, be no glorification of terrorists as martyrs. They called on the international community to end selective and partial approaches to combating terrorism and, in this regard, jointly called for the expeditious finalization and adoption of a Comprehensive Convention on International Terrorism by the United Nations General Assembly.
Recognising that maintenance of security and stability along the common border is essential for the socio-economic development of the peoples of the border areas, Myanmar reaffirmed its respect of the sovereignty and territorial integrity of India and steadfastly upheld the policy of not allowing any insurgent group to utilise Myanmar’s soil to undertake hostile acts against the Indian Government. Myanmar also appreciated Government of India for upholding the same principle.
6. Both sides reiterated their mutual respect for the already demarcated boundary between the two countries and emphasised the need to resolve outstanding boundary demarcation issues as fast as possible through existing bilateral mechanisms and consultations.
7. Both sides reviewed the security situation in their immediate neighborhood and agreed upon the special need for enhancing closer bilateral cooperation in maritime security. They also agreed to foster mutually beneficial and deeper defence cooperation between the two countries and, in this context, noted with satisfaction the recent successful visit of the Commander-in-Chief of the Defence Forces of Myanmar to India. Besides institutionalized cooperation through regular coordinated patrolling initiatives, they agreed to focus on bilateral maritime cooperation in non-traditional security domains, such as humanitarian assistance and disaster relief, which are critical for safeguarding the Bay of Bengal and the Indian Ocean as global commons.
8. Both sides pledged that Myanmar and India will maintain the already-achieved mutual understanding and growing bilateral relations between the two countries and that they will stand by each other as good and trustworthy neighbours in the years ahead in the interest of both peoples and the region.
9. The two sides noted with satisfaction the continued exchange of high-level visits that has fostered better mutual understanding of outstanding bilateral issues. They appreciated the regular holding of sector specific institutional mechanisms in the areas of security and defence, trade and commerce, power and energy, border management and connectivity etc. for effective follow-up of decisions taken at the highest political levels. They also noted with pleasure the excellent exchanges between Indian and Myanmar Parliamentarians and encouraged them to further enhance such interaction.
10. The Myanmar side expressed its heartfelt appreciation to Government of India for all the assistance rendered to Myanmar in support of its endeavour for socio-economic development. Both sides reviewed on-going cooperation projects being executed with technical and financial assistance from the Government of India, noting that these were directly associated with the benefit of the Myanmar people, and agreed that these should be expedited. Prime Minister Modi reiterated India’s abiding commitment to supporting Myanmar in its efforts to build infrastructure and develop human resources capacity. Alluding to the positive experience of the Industrial Training Centres set up with Indian assistance in Pakokku and Myingyan, the Myanmar side thanked India for the support being extended to develop two more Centres at Monywa and Thaton respectively as well as the assistance for a five year comprehensive maintenance plan for ITC, Myingyan. They also expressed appreciation for the support offered by India to upgrade the Myanmar-India Entrepreneurship Development Centre and the Centre for English Language Training at Yangon. The two sides also agreed to continue discussion towards the establishment of a Planetarium at a suitable location in Myanmar, recognizing that this would be a valuable institution that would nurture a scientific temper amongst the Myanmar youth.
11. The two sides shared the view that the situation in Rakhine State had a developmental as well as a security dimension. In this context, they agreed to bring about overall socio-economic development in the State by undertaking both infrastructure and socio-economic projects, particularly in the spheres of education, health, agriculture and allied activities, agro-processing, community development, construction of small bridges, upgradation of roads, small power projects, livelihood activity, setting up of training centres, promotion of household crafts, conservation of environment and cultural heritage. Myanmar welcomed India’s offer of assistance under the Rakhine State Development Programme and the two sides agreed to finalize the implementation modalities within the next few months
12. The two sides noted with satisfaction the cooperation in the field of agricultural research and education, especially through the rapid progress in operationalizing the Advanced Centre for Agricultural Research and Education set up at the Yezin Agricultural University and the Rice Bio Park set up at the Department of Agricultural Research. It also appreciated India’s assistance for facilitating post graduation and doctoral education in agricultural sciences for candidates from Myanmar.
13. The two sides expressed satisfaction at the ongoing capacity building programmes for Myanmar judicial officers, military personnel and police. Myanmar thanked India for the extended period of support to the Myanmar Institute of Information Technology and the India-Myanmar Centre for Enhancement of IT Skills. They agreed that India would extend regular training to Myanmar diplomats at the Foreign Service Institute, New Delhi. Myanmar welcomed India’s offer to enrol two Myanmar diplomats every year for training at the Kendriya Hindi Sansthan while 150 Myanmar civil servants would undergo training in English language at Indian training institutes every year for a period of five years.
14. Recognizing the need to further upgrade the training infrastructure and capacity building of Myanmar Police, the two leaders welcomed the signing of the Memorandum on Upgradation of the Women’s Police Training Center at Yamethin in Myanmar with technical and financial assistance of Government of India. Myanmar welcomed India’s offer to help set up a training centre for police officers in Yangon and it was decided that modalities would be jointly worked out.
15. Myanmar thanked India for supporting various projects in Myanmar that enhance bilateral as well as regional connectivity like the Kaladan Multi Modal Transit Transport Project and other road and bridge construction projects as fully funded grant-in-aid projects. Myanmar appreciated the substantial progress made on the Kaladan Multimodal Transit Transport Project with the completion of works on the Sittwe Port and the Paletwa Inland Water Transport Terminal and the handing over of six cargo barges to the Myanmar Port Authority and Inland Water Transport. The two sides agreed to enter into an MoU on appointing a port operator that may include both sides to be responsible for the operation and maintenance of the port in keeping with the practice that has been adopted at other international ports in Myanmar. This would enable the Port and IWT infrastructure to be used commercially and promote development of the surrounding areas even as the final component of the project, the road from Paletwa to Zorinpui, is under construction. Both sides noted with satisfaction that work on the road was already underway and agreed to facilitate movement of project personnel, construction material and equipment across the border through Zorinpui and Paletwa. They also noted that construction work would shortly begin on reconstruction of bridges on the Tamu-Kyigone-Kalewa Road and on the Kalewa-Yargyi sector of the Trilateral Highway. The two sides have agreed upon the alignment of the Rih-Tedim road and the DPR for its construction. Further steps on construction of the Putao-Myitkyina and Alethankyaw-Ahungmaw roads under available LOC would be taken after DPRs are made available by Myanmar. In response to Myanmar’s request, India agreed to undertake preparation of DPRs for the Rihkhawdar-Zowkhathar bridge and the Bwaynu bridge.
16. The two sides also reviewed projects in the field of health and noted with satisfaction that work on the upgradation of Yangon Childrens’ Hospital and Sittwe General Hospital and on construction of Monywa General Hospital had been completed. They agreed to start consultations to establish and operate a state-of-the-art hospital in Nay Pyi Taw in association with one of the leading Indian hospital groups, based on modalities to be mutually decided.
17. Both sides deliberated on the progress made in utilization of US$ 500 million concessional Line of Credit extended by India to Myanmar in 2012. Noting that the projects to be implemented under the Line of Credit would help augment the physical infrastructure in vital areas and enhance capacities in agriculture and transport, they resolved to implement mutually agreed projects expeditiously.
Both sides expressed that, in order to derive full value from these infrastructure projects, the institutional arrangements related to connectivity needed to be put in place on priority. In this regard, they noted the importance of concluding a bilateral agreement that would enable motor vehicle traffic, both passenger and cargo, to cross the border.
18. Both sides underlined the need for bringing about greater integration of power and energy supply networks between India and Myanmar. Myanmar welcomed India’s participation in its energy sector both in exploration and production and invited Indian companies to participate in tenders for petrochemicals and petroleum products, marketing infrastructure and setting up of LPG terminals. India informed that leading Indian oil and gas companies are in the process of opening their offices in Myanmar. The two sides applauded the agreement reached by Numaligarh Refinery of India and Parami Energy Group of Myanmar on supply of diesel to Myanmar across the land border, noting that this will give the people of north Myanmar cheaper and more reliable access to petroleum products, and also encouraged both sides to collaborate in storage and retail marketing of petroleum products in Myanmar. The first consignment of the high speed diesel reached Myanmar on 4th September 2017.
19. India also expressed its readiness to extend technical as well as project-specific assistance to conventional as well as renewable energy-based power development projects identified by Government of Myanmar. In addition to the earlier offer to conduct a feasibility study for development of solar parks in Myanmar, India offered to conduct a solar radiation resource assessment in Myanmar. The two sides discussed ways to cooperate in the field of energy efficiency between the two countries. Myanmar thanked India for the technology demonstration projects being undertaken through Energy Efficiency Services Ltd. of India to introduce LED-based energy efficient lighting in key townships and buildings identified by Myanmar in Nay Pyi Taw, Bago region and Rakhine State. India shared its experiences in power trade and expressed its interest in examining possible cooperation in this area with Myanmar. It was agreed that these and other relevant issues would be taken up at an early meeting of the Joint Steering Committee on Power and other forums. In view of the immense benefits that would accrue to participating countries, Myanmar promised to give careful consideration to India’s suggestion to join the Framework Agreement for the establishment of the International Solar Alliance.
20. The two sides noted the current level of bilateral trade and investment and agreed that, while robust, it has potential for growth. In this regard, they emphasized the need to improve market access by removing all trade barriers with a view to facilitate trade between the two countries. They expressed satisfaction with the conclusions reached at the 6th meeting of Myanmar-India Joint Trade Committee held in New Delhi, India in June, 2017 and agreed to continue holding of meetings on Border Trade Committee and Border Haats Committee.
India welcomed Myanmar’s desire to seek cooperation with it to develop Myanmar’s textile sector covering standardization, inspection and quality recommendations, research & development, human resource development and capacity building .
21. The two sides acknowledged the importance of pulses in the bilateral trade basket, and the implications this trade has for the Myanmar farmers and Indian consumers. In this context, the State Counsellor expressed grave concern at the recent notification issued by India imposing quantitative restrictions on various categories of pulses and requested Prime Minister of India to lift all restrictions on imports from Myanmar in view of the bonds of friendship and long term interests of the two peoples and nations. The Indian Prime Minister responded that it was important to work out long term arrangements whereby the interests of both the peoples could be safeguarded in future.
22. The two sides welcomed the successful negotiations and finalization of the agreement on border crossing which will help in regulating and harmonizing movement of people across the common land border and thus promote bilateral trade and tourism and directed their senior officials to expeditiously conclude the formalities for its signature. Leaders of both countries agreed to negotiate and swiftly conclude an agreement on commencing a coordinated bus service between the two countries from Imphal in India to Mandalay in Myanmar.
23. They shared the view that enhanced air connectivity between the two countries will boost people-to-people contacts as well as promote greater tourism, trade and investment flows. The leaders also agreed that a DPR would be prepared by Airports Authority of India through the close cooperation with Department of Civil Aviation(DCA) of Myanmar for development of Pakokku Airport or Kalay Airport with financial and technical assistance from India. They also welcomed Government of India’s offer of customized training and capacity building programmes for Air Traffic Controllers of Myanmar in India. The leaders directed their respective officials to also explore the feasibility of construction of a rail link between Tamu and Mandalay in Myanmar. It was agreed that a team from India would be deputed to study and prepare a DPR for the rail link between Tamu and Mandalay.
24. Both sides recognized the importance of establishing mutually agreed procedures for the rescue and rehabilitation of victims of human trafficking. In this context, they welcomed the finalization of the MoU on Cooperation for Prevention of Human Trafficking and conveyed their intent to conclude it at the earliest.
25. The two leaders emphasized the centrality of culture in further deepening the close bonds between the peoples of India and Myanmar and expressed satisfaction with the signature of the Cultural Exchange Programme (CEP) for the period 2017-20. They expressed confidence that the CEP would also promote cultural exchanges between the North Eastern States of India and the bordering areas of Myanmar. India also confirmed that 2 slots would be made available annually for Myanmar archaeologists for advanced studies at the Indian Institute of Archaeology, New Delhi.
The Indian side conveyed that the project being undertaken by the Archaeological Survey of India to preserve and conserve stone inscriptions and temples of King Mindon and King Bagyidaw of Myanmar in Bodh Gaya is at an advanced stage and would be completed by December 2017. The Myanmar side welcomed this information noting that these temples constitute an important aspect of India-Myanmar cultural heritage.
26. Myanmar welcomed India’s assistance in the socio-economic development of Bagan while preserving and conserving its heritage. Prime amongst these is the project to restore and conserve 92 ancient pagodas and structures in Bagan through the Archaeological Survey of India. The two sides welcomed the finalization of an MoU in this regard. Other projects proposed to be undertaken as India-Myanmar cooperation projects are those of setting up of “Bagan Haat” as a hub of Myanmar craft, food and cultural activities, LED-based street lighting, rain water harvesting for sustainable water management, training for alternative income generation for the people of Bagan and upgradation of identified schools.
27. Myanmar expressed deep appreciation to India for the decision taken by the Government of India to give Myanmar nationals gratis visa in all categories, except e-visa.
28. The Government of Myanmar thanked India for its decision to grant special pardon to 40 Myanmar nationals who are currently undergoing imprisonment in India for various crimes. This gesture was deeply appreciated by both the Government and the people of Myanmar, especially by the families of those who will be released from Indian jails.
Recognising the importance of the role played by the media in fostering and supporting democracy, both sides welcomed the conclusion of the Memorandum of Understanding on cooperation between the Press Council of India and the Myanmar Press Council. Activities under this framework will encourage exchanges between journalists and promote better understanding of political and economic developments in India and Myanmar.
29. Both sides reaffirmed their shared commitment to deepen regional cooperation to maximize the mutuality of interests and to ensure equitable share of mutual benefits in all areas, including trade, transport and energy. They recognized the importance of various regional/sub-regional collaborative initiatives to improve the lives and livelihoods of all people across the two countries.
30. India and Myanmar reaffirmed their commitment to work closely in the UN and other multilateral organizations. They underscored the importance of coordinating their positions on multilateral issues of common interest. Both sides reiterated the importance of a strong United Nations and emphasized the need for an early reform of the Security Council. They reaffirmed their commitment to support the Inter-Governmental Negotiations for comprehensive reforms of the Security Council. Myanmar reiterated its support for India’s efforts to become permanent member of an expanded and reformed UN Security Council. The two sides also reaffirmed their commitment to work together particularly in the international arena to strengthen the means of implementation as enshrined in the SDGs 2030. The two sides stressed the importance of objectivity and impartiality of the United Nations and its specialized agencies in pursuing their work.
31. Both sides underscored the need for strengthening and reform of multilateral financial institutions and enhancing the voice and participation of developing countries in international economic decision-making.
India and Myanmar expressed firm commitment to set an example of good neighbourliness in the region. They emphasized that they must continue to progress together. They therefore agreed to promote shared interests of the peoples of the two countries so as to live together harmoniously and in a mutually beneficial inter-dependent environment.
32. Prime Minister Modi thanked the President of Myanmar for the warm and gracious hospitality extended to him and his delegation during their stay in Myanmar.
33. Prime Minister Modi also invited State Counsellor Daw Aung San Suu Kyi to visit India at a mutually convenient time. The State Counsellor of Myanmar expressed her deep appreciation for the invitation.
The Union Cabinet chaired by Prime Minister Shri Narendra Modi has given its approval to the norms for establishing equivalence of posts in Government and posts in PSUs, PSBs etc. for claiming benefit of OBC reservations. This addresses an issue pending for nearly 24 years. This will ensure that the children of those serving in lower categories in PSUs and other institutions can get the benefit of OBC reservations, on par with children of people serving in lower categories in Government. This will also prevent children of those in senior positions in such institutions, who, owing to absence of equivalence of posts, may have been treated as non Creamy Layer by virtue of wrong interpretation of income standards from cornering government posts reserved for OBCs and denying the genuine non creamy layer candidates a level playing field.
The Union Cabinet also approved the increase in the present income criterion of Rs. 6 lakh per annum for applying the Creamy Layer restriction throughout the country, for excluding Socially Advanced Persons/Sections (Creamy Layer) from the purview of reservation of Other Backward Classes (OBCs). The new income criterion will be Rs. 8 lakh per annum. The increase in the income limit to exclude the Creamy Layer is in keeping with the increase in the Consumer Price Index and will enable more persons to take advantage of reservation benefits extended to OBCs in government services and admission to central educational institutions.
These measures are a part of the Government’s efforts to ensure greater social justice and inclusion for members of the Other Backward Classes. The Government has already introduced in Parliament, a bill to provide Constitutional status to the National Commission for Backward Classes. It has also decided to set up a Commission, under section 340 of the Constitution, to sub categorize the OBCs, so that the more backward among the OBC communities can also access the benefits of reservation for educational institutions and government jobs. All these decisions, taken together, are expected to ensure greater representation of OBCs in educational institutions and jobs, while also ensuring that the more under-privileged within the category are not denied their chance of social mobility.
Background:
In its judgment dated 16.11.1992 in WP(C) 930/1990 (IndraSawhney case) the Supreme Court had directed the Government to specify the basis, for exclusion of socially and economically advanced persons from Other Backward Classes by applying the relevant and requisite socio-economic criteria.
An Expert Committee was constituted in February 1993 which submitted its report on 10.03.1993 specifying the criteria for identification of socially advanced persons among OBCs i.e. the Creamy Layer. The report was accepted by the then Ministry of Welfare and forwarded to DoPT which issued an OM dated 08.09.1993 on exclusion from the Creamy Layer.
The OM of 08.09.1993 specifies six categories for identifying Creamy Layer (a) Constitutional/Statutory post (b) Group ‘A’ and Group ‘B’ Officers of Central and State Governments, employees of PSUs and Statutory bodies, universities, (c) Colonel and above in armed forces and equivalent in paramilitary forces (d) professionals like Doctors, Lawyers, Management Consultants, Engineers etc. (e) Property owners with agricultural holdings or vacant land and/or buildings and (f) income/wealth tax asessee.
The OM further stipulates that the said parameters would apply mutatis mutandis to officers holding equivalent or comparable posts in PSUs, Banks, Insurance Organizations, Universities, etc. and Government was required to determine equivalence of positions in these organizations with those in Government.
Pending the equivalence to the established in these institutions Income criteria would apply for the officers in these Institutions.
However, this exercise of determining the equivalence of posts in Government and posts in PSUs, PSBs etc. had not been initiated. The determination of equivalence of posts has been thus pending for almost 24 years.
The matter of formulating equivalence has since been examined in detail. In PSUs, all Executive level posts i.e. Board level executives and managerial level posts would be treated as equivalent to group ‘A’ posts in Government and will be considered Creamy Layer. Junior Management Grade Scale–1 and above of Public Sector Banks, Financial Institutions and Public Sector Insurance Corporations will be treated as equivalent to Group ‘A’ in the Government of India and considered as Creamy Layer. For Clerks and Peons in PSBs, FIs and PSICs, the Income Test as revised from time to time will be applicable. These are the broad guidelines and each individual Bank, PSU, Insurance Company would place the matter before their respective board to identify individual posts.
The Prime Minister, Shri Narendra Modi, today addressed a large gathering in New Delhi on the occasion of Chartered Accountants’ Day.
In an address seen live across multiple locations throughout the country, on the first day of the roll-out of Goods and Services Tax, the Prime Minister described Chartered Accountants as doctors for the economic health and well-being of society. He also compared them to the saints and sages of the economic world. He said India’s Chartered Accountants are known the world over for their excellent financial skills.
The Prime Minister said that while the country has the capacity to recover from any setback, its development is seriously impacted when a small section of people start indulging in corrupt practices.
He recounted the various steps, including demonetization, taken by the Union Government in the last three years, against black money, and to bring elements indulging in corruption, to book.
The Prime Minister said that as many as three lakh companies have come under the scanner, in the course of inspecting the data mined after demonetization. He said that one lakh companies who have been found to be in violation of laws, have been removed from the Registrar of Companies. He reiterated that the Union Government has taken bold decisions in national interest.
The Prime Minister called upon Chartered Accountants to introspect and weed out corrupt practices and persons from their fraternity. Giving statistics about income declarations by the people during filing of returns, the Prime Minister urged Chartered Accountants to keep national interest supreme, while advising their clients. He reminded the gathering of the large number of professionals, including lawyers, who had played a key role in the freedom struggle, and urged the Chartered Accountants to follow in their footsteps, and advise their clients to follow the path of honesty, as the country ushers in a new era of economic integration, with the Goods and Services Tax. He said that the entire country reposes faith in the certification of Chartered Accountants, and said that this faith and trust should never be broken. He explained how the tax paid by taxpayers plays a crucial role in welfare of society, and development of the nation.
He urged Chartered Accountants to think about the goals that they can set for their profession in 2022, the 75th anniversary of India’s independence. Talking about the Big 4 auditing firms worldwide, he urged India’s Chartered Accountants to work towards creating the next big 4 global auditing firms.
Quoting Chanakya, the Prime Minister urged Chartered Accountants to not let this opportunity slip, and invited them to join the mainstream of nation-building.
Namaste!
Greetings!
Shriman Nilesh Vikamse, President, Institute of Chartered Accountants of India, Finance Minister Shri Arun Jaitley Ji, my colleagues from the Council of Ministers, dignitaries from the Chartered Accountants field who have joined me on live streaming from almost 200 locations countrywide, the Chief Ministers joining us from respective states, and the enthusiastic fraternity here braving the Delhi rains. A very warm welcome to you all!
The achievers being felicitated tonight on this auspicious occasion, all of you who have assembled here today from various locations, business and industry stalwarts, fellow citizens, youngsters connected through TV, radio, Ladies and gentlemen.
Today, we are celebrating the Foundation day of Institute of Charted Accountant of India (ICAI).My heartfelt wishes to one and all on this momentous occasion. Serendipity indeed! Your Foundation day and the commencement of the new economic paradigm of India- the “Goods and Services Tax” coincide on this very day.
It is indeed a matter of happiness and privilege that I am amidst you on such a historical day. Let me tell, you have significantly contributed as Chartered Accountants over the past decades and you all have been given a solemn right by the government. Its only your fraternity which is authorized to Certify and Audit the entries in Account books and confirm whether they are correct or manipulated. The onus of maintaining a sound economic and financial health of the country rests on you in the same way as the doctors are concerned about the health of the society and people, At the same time, I am confident that there wouldn’t be a doctor who would encourage unhealthy practices to make more people fall sick and enhance his earnings. The doctor is very much aware that if someone is sick, he can make more money, but he still endorses healthy practices and habits among the people.
Dear friends, you shoulder the responsibility of ensuring that the economic and financial system remains healthy and is not plagued by any malpractices. You are the pillars of a sound Economic and financial ecosystem of this country, and it is indeed a great honour to be a part of this conglomerate. In a way it is indeed a great opportunity for me to learn and share with you today. Chartered Accountants of India have earned laurels across the globe for their dexterity in Financial Skills.
Today, I got the opportunity to launch the new Chartered Accountancy Course Curriculum. This is the identity of your Dynamic Course and the Credibility of Examinations. I am hopeful that this new course will further consolidate the financial skills of new aspirants joining this profession. In the wake of globalisation, we have to focus now on developing dynamic systems so that our institutions are able to produce dynamic human resources. In order to remain relevant to the industry, we should design our courses according to the global requirements and benchmarks. Our courses must integrate technological requirements in the field of Accountancy. We should encourage innovation in the Accountant’s Field. We should find ways to innovate Charted Nutral Firms Technology. There is a huge opportunity in the market for new Software which is required in the field of accountancy.
Friends, our scriptures have laid down four Purusharthas-the objects of human pursuits. These include- Dharma (righteousness, moral values) Artha (economic values), Kaama (psychological values), Moksha (spiritual values). Has it ever occurred to you that whenever we discuss Dharma and Moksha, it is the saints and monks who cross our minds! In the same way when one thinks about Accounts and Finance, it is no one else but you who come first in our minds. It beseems to call you the sages of economic world. You have the same important role of guiding the economic systems the way these saints and monks lead us to attain the ultimate truth Moksha.
It is the moral responsibility of all of you engaged in the profession of Chartered Accountancy to guide one towards righteous conduct and practice.
My beloved friends,
I deeply appreciate the love and encouragement you all have been bestowing on me today. I am indebted to you for having allowed me to share my thoughts with you. We share the same patriotic values and envision great accomplishments for the nation and its citizens. But, let us face some harsh realities! These often set you thinking. You might have heard from the experienced in the society that in case a house is engulfed in fire and there is complete loss of property, it is said that the family can get back on its own with its will power and perseverance. They cope up with the trauma but begin afresh with the same fervour. Within no time they bounce back. The elderly will say that it is possible to reinstate the house damaged in fire, but even if one person in the family is in the habit of stealing and theft, such families can never get back to their value systems. Even if one family member treads the wrong path, the family is shattered once and for all.
Dear friends, you are engaged in setting the accounts right If we are righteous, the country can be salvaged from the biggest of crises. During the worst of the natural calamities like floods and earthquakes, the citizens have shown their capabilities to take care of the cause of the nation while supporting the administration. However, if some of the citizens of the country are into the habit of stealing and pilferage, it leads to an irreparable damage to the family and the nation. Dreams are shattered and it causes road blocks in the development of the nation. Government has cracked down heavily to nab such pilferers over the past three years. While new laws have been formulated, older laws have been made more stringent now. We have MOUs and agreements with several nations which have been amended accordingly. The latest statistics from Swiss bank accounts stand a testimony to the strict measures by the government on the Black Money issue. As reported by the Swiss Bank Authorities, the black money deposits of Indian Nationals have a hit a record all time low. Three decades back in 1987, these officials from Swiss Banks had started declaring how much deposits were being made by nationals of a country. According to the reports released for the last financial year, there has been a reduction of 45% in the deposits made by Indians in the Swiss banks..
Ever since 2014, the day you all entrusted us with the reins of the nation, we have put brakes on the trends. You will be shocked and appalled to know that in 2013 Swiss Banks had reported a 42% increase in black money deposits. Ladies and gentlemen, two years later when we shall start receiving real time data from Switzerland, imagine the plight of the black money holders. I am sure you do not have such money in your possession. However, I am sure the love for nation will make you sound those who have amassed black money.
Friends, while I am endorsing Swachh Bharat Abhiyan. I have also started the process of cleansing of the economic and financial systems of the country. I am sure 8th November is ingrained deep in your minds. Demonetization was a firm and landmark step to wipe out the black money and corruption from our systems. Let me share with you, I have heard that since 8th November you all have been immersed in more work like never before in your careers. I have even heard that the Chartered Accountant fraternity were on Diwali vacations, hotels had been booked, but some cancelled their trips and were promptly back to their workstations which were functional 24×7. Now I am not aware if you all worked righteously or participated in malpractices! Well, was it in the interest of the nation or your clients? But you did burn the midnight oil in those days!
Friends, for the first time I would like to share my thoughts on this drive of eradicating the black money because you all are aware of the strength of this mission. The government has placed a massive system for data mining, for the money stocked with the banks, whereby the details of the transactions of money before and after 8th November have been extensively studied. We did not interrogate anyone but only analyzed the data. My dear friends, I have already said that your patriotism is no less than mine. For the first time I would like to reveal something to you that would startle the whole country. Whatever data mining has been done till now has revealed that the transactions of more than 3 lakh companies – registered companies are under the radar of suspicion.
A lot of data mining is still left; so I really don’t know what will be the actual figure! Some serious things have come to light after this process began. I am telling you these things with the hope that you might connect with the thoughts of this government and the strength of the politicians. On the one hand, the government, the media, the entire business world were observing closely the night of 30thJune and 1st July to know what transpires next, on the other hand, 48 hours ago, one lakh companies were struck off the list by the stroke of a pen. The names of those companies have been removed from the Registrar of Companies. This is not an ordinary decision, friends. People who take calculative steps only through the prism of politics, cannot take such decisions. Only those who live for the sake of national interest can make such decisions. The power to eliminate one lakh companies with the stroke of a pen can come only from the inspiration of patriotism. Those who have looted the poor will have to return that to the poor.
Apart from this, the government has already identified more than 37 thousand Shell companies who are engaged in hiding black money and hawala transactions. Stern actions shall be taken against them. More stringent actions are in store for the companies who will break the law in future. And I am fully aware of the fact that eliminating fake companies and taking action against black money can be politically incorrect and pose a risk to any political party. But someone has to take such tough decisions for the sake of the country.
My Chartered Accountant friends, I have come here on the occasion of the Foundation day of your institute. I want to ask you a light question. The power to keep the account right lies with you. After demonetization, someone definitely might have helped those companies. These thieves and robbers must have gone to some economic doctor. I know very well that those companies might not have come to any of you for this purpose. But they have definitely taken the help of someone who needs to be identified. Don’t you feel the need to identify such people, who are sitting among you, who supported these companies? Friends, I have been told that there are more than two lakh 72 thousand Chartered Accountants in our country. You also have ‘articled assistants’ and their number is also close to two lakhs. And if we add all those chartered accountants and ‘articled assistants’ and all your staff then roughly these numbers will be more than eight lakhs. Your family is more than 8 lakhs in this field, I mean, in your profession. I would place some more facts for you since you grasp things quickly from the figures.
It is estimated that there are more than crore engineers and management graduates in our country. There are more than 8 lakh doctors. These professions are perceived to be the cream professions or are highly respectable jobs. There are crores of people in such professions in our country. Moreover, there are crores of palatial houses built in the cities of our country. Also, about two crore 18 lakh people had travelled abroad last year. These figures may astonish you; yet only 32 lakh people in our country say that their income is more than ten lakhs while filing tax returns. Can any one of you believe it? I am asking you, the corrector of the account books. Are there only 32 lakh people in this country who earn more than 10 lakhs?
This is the bitter truth of our country, my beloved companions. These numbers show that only 32 lakh people in the country reveal their income to be more than ten lakh rupees. I believe that most of the people in the country are salaried class, where people have fixed income and most of the salary is drawn from the government. Besides this, what is the actual situation in the country? And so brothers I do not want to project data further. But by this you will understand that crores of vehicles are purchased every year in the country. And yet the responsibilities towards the country are not getting fulfilled; it is a matter of grave concern.
Instead of referring to more data, I want to put my thoughts before you. CA brothers, a person or a client pays taxes only when the environment around him is conducive which motivates him to pay the taxes honestly. If he sees that the advisor himself is asking him to hide the truth then he will boldly traverse the wrong path. Thus it is equally important to identify such wrong advisors and take strict actions against them. And for that you also have to take tough steps. CA is an arrangement in which Human Resource Development (HR) is done only by you. Curriculum is made by you only; you conduct the exam; Rules and Regulations are also made by you, and your institute only punishes the culprits. Now the question arises that the temple of democracy i.e. the Parliament of India, which is the voice of 125 crore countrymen, has given you so much authority, then why is it that in the last 11 years, only 25 Charted Accountants have been prosecuted. Did only 25 people make a mess? And I have heard that more than 1400 cases are still pending for many years now. A single case takes years to settle. Tell me my friends, is it a matter of concern or not, for such highly Qualified Professionals? Brothers and sisters, during the freedom struggle, many young people of the country embraced the gallows. Many great men of the country languished in prisons for the country’s independence and at that time there were many professionals in the country who came forward and joined the freedom movement. Most of those professionals were lawyers. These Barristers, in large numbers, took the cudgel of freedom struggle. They knew the law. They were aware of the consequences of fighting against the law. Despite this, all the lawyers of that era who had well flourishing law profession left their advocacy for this country. Not only Mahatma Gandhi, Sardar Patel, Dr. Ambedkar, Jawaharlal Nehru but also Dr. Rajendra Prasad, Pandit Madan Mohan Malaviya, Bal Gangadhar Tilak, Motilal Nehru, C. Rajagopalachari, , Deshbandhu Chittaranjan Das, Saifuddin Kichloo, Bhulabhai Desai, Lalalajpat Rai , Tej Bahadur Sapru, Asaf Ali, Govind Vallabh Pant, Kailash Nathkatju uncountable names in the law profession who had laid their lives for the country. Inspired by patriotism, they dedicated their lives for the country’s independence. Many of them played a decisive role in framing of our constitution. And brothers and sisters, we cannot forget that these great men are indispensable part of our country’s history.
Friends, today our country is at another crucial juncture of history. After the country’s political integration in 1947, today the country is getting economically integrated. Our country is beginning a new journey this year, 2017, when the dream of ‘One Nation, One tax, One market’ has become a reality. On this historic occasion the most important role is that of the Chartered Accountants. Try to fathom my feelings, friends. During the freedom movement, the lawyers had placed their lives at stake for the freedom of India. Today, I am not asking you all to put your lives at stake. You do not have to go behind the bars. This country is yours; also the future of this country is your children’s. Hence the reins of leadership of this new era have to be in your hands, just as the movement for freedom was led by those lawyers. Today the economic development will be led by the army of my Chartered Accountants. And you can see that no one but you can make this road to the greater economic development stronger. I request you again to take your clients to the path of honesty so as to end corruption. To eliminate corruption, you have to take the command.
Friends, Chartered Accountants are like ambassadors of any country’s economic system. Your work is like that of an interface between the government and the tax-paying companies and individuals. Your signature is more powerful than that of a Prime Minister.
Your signature is a testimony to the trust in the truth. Companies may be small or big, however, if you certify their books of account then the government believes in that, people of the country believe in that.
And have you ever thought that once you have signed a balance sheet then no one questions the balance sheet of that company; files are not held up after that. Friends, a new chapter begins after that.
Today, I’ve come here to showcase that new life to you people. If you certify the account books of a company then the government officers trust in your assessment. The company grows, it flourishes and you people also grow, flourish with that. Friends, however, the matter doesn’t end there.
When you people certify the balance sheet of a company and when the details are placed before general public; when an old person invests his savings in a mutual fund; a poor widow invests her savings of the entire month in the share market, if, the correct situation of a company is not revealed, facts are concealed; and when the real position is exposed then not only that company sinks, my dear friends, the life of that poor widow sinks too, that old person’s life too is devastated. They invest their lifetime savings only on the basis of just one signature of yours.
Hence I appeal to you, I appeal to all of you because one-hundred and twenty-five crore people of India have faith in your signature. Never ever break their trust, don’t let anyone to even doubt that.
If you feel deep down in your hearts that trust has been breached, then please come forward, please take initiative to restore that trust. The first of July, the date of your foundation, gives you another opportunity to restore that faith. I invite you, I have come here to invite you people to join in this festival to celebrate integrity. Please look at the importance of your work and then choose your path. You yourself will realise the pride that the society will have in you.
Friends, there are different definitions for the term ‘tax return’. However, I feel that whatever taxes are collected by a government whether those taxes have been utilised in the development of the country or not? This is the ‘tax return’.
It plays an important role in curbing inflation. It provides a gas connection to a lady who has used woods for cooking food all her life. This fund is used in giving old age pension to those whose children shirked their responsibility of looking after them.
This money is used in providing self-employment to the youth who works hard throughout the day so that he can attend evening classes to complete his education.
This money is being used in providing affordable medicines to those poor people who don’t have money for their treatment, who can’t afford to take a break from their work despite illness lest their children should go to bed without a meal.
The money collected through taxes is being used for those brave soldiers who risk their lives on the border to protect us.
This money is being used in providing electricity to those households that don’t have electricity supply even after seventy years of independence. Not a single bulb was ever illuminated in their homes; they have been living without electricity.
What could be a greater service than helping the country’s poor in providing what is due to them. You could have never imagined that how just one signature of yours can help the poor people of this country.
You have huge responsibility in fulfilling the dreams of a common man of this country; you can play an important role in it. And once you decide then I’m confident that the 1st of July 2017 will certainly become a turning point in the history of ICAI.
And, friends, once you take a vow then I can say with confidence that nobody will try to evade taxes. People only break laws when they know that there is someone to protect them.
Friends, GST is going to become a medium for you to contribute in nation building; I urge you to reach out to the people. When I was on the way to this place, Neelesh told me that you people are going to help the traders to understand GST. I congratulate him, I offer my gratitude.
You please reach out to the people, enlighten them. Encourage them to join the mainstream of integrity. In a way, the government has provided a fresh opportunity to the people in the field of chartered accountancy. Please prepare yourself for this; I specifically urge the young professionals in this field.
Please come forward, Chartered Accountants have an extremely important role in the success and proper implementation of the laws recently passed by the government, particularly the insolvency and bankruptcy code.
Under this code when a company has been declared bankrupt then its control will be passed on to an insolvency practitioner. Chartered accountants can start a new career in this field by becoming insolvency practitioners. This is a new avenue opened by the government for you people. However, whichever path you people choose today, in that path, the term CA should mean Charter and Accuracy, Compliance and Authenticity.
Friends, our country is going to complete 75 years of its independence in 2022. The country has set some targets for the year 2022. New India has been expecting hard work and industry from all of us.
What kind of India we want to see when it completes 75 years of its independence as an institute, as a chartered accountant, as an individual and also as a citizen and play our role, contribute in making the country like that. The Institute of Chartered Accountants of India will complete 75 years of its existence two years after India completes 75 years of its independence in 2022.
You people should prepare the programme on the occasion of 75 years of your existence from today itself. You should prepare a roadmap for that historic occasion from today itself to scale new heights for the institution and its character. And decide what you will do for the country, for the future of millions and millions of aspiring youths.
Can’t you help in providing a transparent and corruption free system for the country? What will you say? Will you look at the number of the people that you saved from paying the taxes? Or will you look at the number of people that were encouraged by you to lead honest lives by paying taxes? You will have to decide on this.
You set a target for yourself that how many people you will bring in the mainstream by honestly paying the taxes. Who can be a better judge than you yourself to set a target for this task?
Please also think how you can expand the role of technology in your profession. What could be the role of forensic science in the field of chartered accountancy, how to use that, how to cater that, if possible you should also set targets for these things too.
Friends, I have one more expectation from you since you can do it. I fail to understand why you lag behind. Friends, there are four highly respected Audit firms in the world and top companies and institutions entrust these four firms with their audit work. These are called big four. We are nowhere in these big four. You are capable of it and there is no dearth of talent either. All of my friends, can you set a target for yourself if India were to gain respect in the world then when India will celebrate seventy five years of its independence in 2022, then we will convert these big four into big eight.
And out of those big eight, four big firms will belong to the people who are sitting here before me. Friends this is our dream. And it’s not difficult given the reputation and professionalism of our firms.
My friends you people must be respected world over in the field of chartered accountancy. In the end, I’d like to remind you of an advice by the most revered economist – Chanakya. He said: “Kalati Kramat Kal Avam Falam Pivati”, it means the time itself undermines the value of the success of something if it was not done in the right time. Therefore don’t let your time go in vain.
Arun Ji was talking to you just a while ago; he was saying that India never had this kind of opportunity before. It is a rare opportunity for you people as well. Don’t let this opportunity go past you.
I’ve come to invite you to associate yourself with the mainstream of India’s development. Please don’t lose sight of the fact this profession has the capacity to protect, to sustain the entire economy. I once again convey my best wishes to the entire faculty of the institute, to all the chartered accountants present here on the occasion of the foundation day of ICAI.
I also thank the people who are watching this programme through the video link and also to those chartered accountants of our country who are watching this programme in other countries.
I express my gratitude to you; I thank all of you with the wish that we should move forward in a new direction, with a new zeal and with a new pace to engage the common man of this country in a celebration of honesty. Many thanks my friends, many thanks.
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the proposal to introduce a Financial Resolution and Deposit Insurance Bill, 2017. The Bill would provide for a comprehensive resolution framework for specified financial sector entities to deal with bankruptcy situation in banks, insurance companies and financial sector entities.
The Financial Resolution and Deposit Insurance, Bill 2017 when enacted, will pave the way for setting up of the Resolution Corporation. It would lead to repeal or amendment of resolution-related provisions in sectoral Acts as listed in Schedules of the Bill. It will also result in the repealing of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 to transfer the deposit insurance powers and responsibilities to the Resolution Corporation.
The Resolution Corporation would protect the stability and resilience of the financial system; protecting the consumers of covered obligations up to a reasonable limit; and protecting public funds, to the extent possible.
The Government has recently enacted the Insolvency and Bankruptcy Code, 2016 (“Code”) for the insolvency resolution of non- financial entities. The proposed Bill complements the Code by providing a resolution framework for the financial sector. Once implemented, this Bill together with the Code will provide a comprehensive resolution framework for the economy.
The Financial Resolution and Deposit Insurance Bill, 2017 seeks to give comfort to the consumers of financial service providers in financial distress. It also aims to inculcate discipline among financial service providers in the event of financial crises by limiting the use of public money to bail out distressed entities. It would help in maintaining financial stability in the economy by ensuring adequate preventive measures, while at the same time providing the necessary instruments for dealing with an event of crisis. The Bill aims to strengthen and streamline the current framework of deposit insurance for the benefit of a large number of retail depositors. Further, this Bill seeks to decrease the time and costs involved in resolving distressed financial entities.
Recalling his initial address, the Prime Minister said that in a very simple way, he spoke of the vision for New India, and about the Vedas written 5000 years ago. He said the Vedas have said that milking of nature is permitted, but exploitation of nature is not.
He said that he had been asked this question three days ago in Germany, and he had said at that time that whether or not there is a Paris accord, India’s traditions have been to hand over a clean planet, with clean air, to our children, so that they too can live well. He emphasized that the issue here is not about being on one side or the other, but about being on the side of generations yet to be born.
On India Russia relations, and on China
The Prime Minister said that the world is no longer bipolar as it was a few decades ago. He said that when we discuss global relations, we must understand that the whole world is interconnected and interdependent. He said every country is connected to every other in some way, and there may be areas of differences, as well as of cooperation.
Reiterating that relations between India and Russia are strong, the Prime Minister said that the whole world will read the St. Petersburg Declaration carefully, to understand this relationship, and see how we move forward.
With China, the Prime Minister said that though there is a border dispute, not a single shot has been fired across the border in the last forty years. Economic relations are expanding, the Prime Minister said. He said that the relationship between any two countries, should not be seen from the prism of a third. He said that in BRICS, all member countries are working together. In this context, he mentioned the BRICS Bank as an example. India believes in the credo of Sabka Saath, Sabka Vikas, the Prime Minister said, adding that we wish to take everyone together on the path to development.
On Terrorism
The Prime Minister said that in the eighties and nineties, the world did not fully understand terrorism and the dangers it posed. He said India has been a victim of cross border terrorism for forty years. He said that it was only after 9/11 that the world understood the true horrors of terrorism, and the fact that it has no boundaries.
The Prime Minister said that the need of the hour is for all humanitarian forces to unite to save the world against terrorism.
The Prime Minister regretted that for forty years, the United Nations has not been able to come to an agreement on the definition of terrorism. He welcomed President Putin’s assertion yesterday that he will raise the matter at the United Nations.
Noting that terrorists cannot manufacture weapons or print currency, the Prime Minister said that clearly, terrorists obtain these things from certain countries. He said that the whole world must realise that this is an issue that concerns humanity, and only then will we be able to overcome terrorism.
On global trade
The Prime Minister said that India believes in an open economy. He said that in global trade, all countries make adjustments for each other, and should help each other.
The Prime Minister, Shri Narendra Modi, today addressed the Plenary Session of the St. Petersburg International Economic Forum (SPIEF). The theme of the Plenary was – “Achieving a New Balance on the Global Stage.”
India is a “guest country” at the SPIEF this year, and Prime Minister Modi is the “Guest of Honour.”
In his remarks, the Prime Minister thanked President Putin for the opportunity to be present at SPIEF, in the beautiful city of St. Petersburg.
Touching upon India-Russia relations, the Prime Minister said they are moving forward with good momentum. He said there are very few relations between, where the basis of the relationship is mutual trust. He said the India-Russia relationship of the last 70 years, has been based on trust, and deepened, even in a changing world.
The Prime Minister said he is at SPIEF as a representative of 1.25 billion people. He said the world is focused on Asia, and therefore, naturally to India. He said that over the last three years as Prime Minister, the Union Government is making progressive decisions on all fronts. We have today an annual GDP growth rate of 7 per cent, he added.
“Minimum Government, Maximum Governance” and “Red carpet instead of Red tape” have been the basis of governance reforms in India, Prime Minister Modi said. He said that political will and clear vision are necessary for reforms. Bureaucracy too has to be vibrant and in tune with leadership, he added.
Noting that diversity is India’s strength, the Prime Minister said that the Goods and Services Tax will be implemented from July 1st, and this will herald a uniform tax system across the country.
Agreeing with President Putin, who spoke before him, the Prime Minister said technology is going to play a key role, and mentioned the Digital India initiative. He said a “digital divide” cannot be allowed to take root in the society.
The Prime Minister mentioned the Government’s initiatives in financial inclusion – and the Jandhan, Aadhaar, Mobile (JAM) trinity. He mentioned the scrapping of over 1200 laws by the Union Government.
The Prime Minister said India has made 7000 reforms targeting “Ease of Doing Business” – just at the Union Government level.
The Prime Minister mentioned initiatives taken for FDI and for competitiveness. He said international rating agencies had identified India as one of the top three destinations for FDI.
Noting the importance of security for investors, the Prime Minister said that India’s vibrant democracy and use of English go a long way in ensuring a sense of security.
The Prime Minister said that with the vision of “New India” skill development is a top priority for India’s 800 million strong talented youth. In this context he mentioned the success of India’s Mars Mission in the first attempt. He said the New India would have youth that are not job seekers but job creators; and can fulfil the global requirements of skilled human resource.
He said rising urbanization in India requires most modern infrastructure including metro networks, waste management systems etc. He spoke of expanding and modernizing the railway network. The Prime Minister also spoke of the initiative to clean the Ganga. He said all these represented great opportunities for investment.
Outlining initiatives in agriculture, the Prime Minister mentioned organic farming and food processing as areas for investment. In the manufacturing sector, the Prime Minister mentioned medical device and defence equipment manufacturing as key areas for foreign investment.
In the services sector, the Prime Minister said the tourism and hospitality sector will receive high priority.
Stressing that one of the four Vedas- the Atharvaveda – encapsulates dedication to nature 5,000 years ago, the Prime Minister said India’s economic growth was based not on exploitation of nature – which is a crime- but on its use and preservation and on respecting it. He pointed out that India has target of generating 175 Giga Watts of renewable energy by 2022, and added that India is setting up more power generation capacity in renewable energy sector than in thermal. He asserted that India will be a responsible nation with regard to climate and work towards zero-defect, zero-effect manufacturing, entailing no detrimental effect on the environment. He said programmes such as LED bulb distribution had already resulted in huge power savings.
The sky is the limit for investment opportunities in India, asserted the Prime Minister, making a strong pitch for global investors to invest in India.
