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Economic Survey: Resolving NPAs, implementing GST to lift GDP (Lead)
New Delhi, Jan 29 (IANS) Resolving the non-performing assets (NPAs), or bad loans, of state-run banks and implementing GST are among the major factors that will help India log GDP growth of 6.75 per cent in the current fiscal, says the Economic Survey for 2017-18 tabled in the Lok Sabha by Finance Minister Arun Jaitley on Monday.
The Survey also cited the recapitalisation plan for government-owned banks, the recent easing on foreign direct investment (FDI) rules and boosting of Indian exports amidst a global recovery as other factors underpinning its gross domestic product (GDP) growth projection, which is higher than the 6.5 per cent growth projected last month by the Central statistics Office (CSO).
“Decisive action was taken to grasp the nettle of the Twin Balance Sheet (TBS) challenge, arguably the festering, binding constraint on Indian growth prospects. On the 4 R’s of the TBS — Recognition, Resolution, Recapitalization and Reforms — Recognition was advanced further, while major measures were taken to address two other R’s,” the Survey, authored by Chief Economic Advisor (CEA) Arvind Subramanian, said.
“The new Indian Bankruptcy Code (IBC) has provided a resolution framework that will help corporates clean up their balance sheets and reduce their debts. And, in another critical move, the government announced a large recapitalisation package (about 1.2 per cent of GDP) to strengthen the balance sheets of the public sector banks (PSBs),” it read.
“As these twin reforms take hold, firms should finally be able to resume spending and banks to lend especially to the critical but-currently-stressed sectors of infrastructure and manufacturing,” it added.
The roots of the NPAs in the Indian banking system, which have reached a staggering nearly Rs 9 lakh-crore (almost $142 billion) lie in the boom period during the previous decade under the United Progressive Alliance (UPA) rule. The bad loans of state-run banks alone add up to around Rs 7.5 lakh-crore.
The Reserve Bank of India has referred 12 accounts, totalling about 25 per cent of the gross NPAs, for resolution under the new Insolvency and Bankruptcy Code (IBC).
The government has embarked on a two-pronged strategy on bad loans. On the one hand, it has brought in the IBC which provides for a six-month time-bound insolvency resolution process, while on the other, it has approved a Rs 2.11 lakh-crore recapitalisation plan for the PSBs.
On the government’s fiscal deficit, the Survey said that ambitious targets of fiscal consolidation for the coming pre-election year be avoided, hinting thereby that the target of 3.2 per cent of the GDP could be exceeded.
“Reflecting largely fiscal developments at the Centre, a pause in general government fiscal consolidation relative to 2016-17 cannot be ruled out,” said the Survey.
It also said that market concerns over Rs 500 billion of additional market borrowings to a proportionate widening of the fiscal deficit for the current fiscal were unfounded because this mop-up could go hand-in-hand with lower withdrawals from the National Small Savings Fund.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.
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