Economic Developement Of India

INDEX

TOPIC-

INVESTMENT IN INFRASTRUCTURE IN INDIA IN POST LIBERALIZATION PERIOD

1. ECONOMIC GROWTH AND GDP 2. INDUSTRIAL POLICY OF INDIA 3. INFRASTRUCTE DEVELOPMENT • Railways • Roads • Electricity • Aviation 4. CONTRIBUTION OF VARIOUS SECTORS IN GDP

5. COMPARATIVE STUDY OF INDIA AND CHINA 6. ELEVENTH FIVE YEAR PLAN OF INDIA 7. MONETARY AND FISCAL POLICY OF INDIA

1. ECONOMIC GROWTH AND GDP

Indian economy has been witnessing a phenomenal growth since the last decade. The country is still holding its ground in the midst of the current global financial crisis. In fact, global investment firm, Moody’s, says that driven by renewed growth in India and China, the world economy is beginning to recover from the one of the worst economic downturns in decades. The growth in real Gross Domestic Product (GDP) at factor cost stood at 6.7 per cent in 2008-09. While the sector-wise growth of GDP in agriculture, forestry and fishing was at 1.6 per cent in 2008-09, industry witnessed growth to 3.9 per cent of the GDP in 2008-09. The Prime Minister, Dr Manmohan Singh, on August 15, 2009, in his address to the nation on its 63rd Independence Day, said that the Government will take every possible step to restore annual economic growth to 9 per cent. Further, the World Bank has projected an 8 per cent growth for India in 2010, which will make it the fastest-growing economy for the first time, overtaking China’s expected 7.7 per cent growth. A number of leading indicators, such as increase in hiring, freight movement at major ports and encouraging data from a number of key manufacturing segments, such as steel and cement, indicate that the downturn has bottomed out and highlight the Indian economy's resilience. Recent indicators from leading indices, such as Nomura's Composite Leading Index (CLI), UBS' Lead Economic Indicator (LEI) and ABN Amro' Purchasing Managers' Index (PMI), too bear out this optimism in the Indian economy. Industrial output as measured by the index of industrial production (IIP) clocked an annual growth rate of 6.8 per cent in July 2009, according to the Central Statistical Organisation. Significantly, among the major economies in the Asia-Pacific region, India's private domestic consumption as share of GDP, at 57 per cent in 2008, was the highest, according to an analysis by the McKinsey Global Institute. Meanwhile, foreign institutional investors (FIIs) turned net buyers in the Indian market in 2009. FIIs inflows into the Indian equity markets have touched US$ 10 billion in the April to September period of 2009-10. Foreign direct investments (FDI) into India went up from US$ 25.1 billion in 2007 to US$ 46.5 billion in 2008, achieving a 85.1 per cent growth in FDI flows, the highest across countries, according to a recent study by the United Nations Conference on Trade & Development (UNCTAD).

According to the Asian Development Bank's (ADB) 'Asia Capital Markets Monitor' report, the Indian equity market has emerged as the third biggest after China and Hong Kong in the emerging Asian region, with a market capitalisation of nearly US$ 600 billion. The Economic scenario Indian investors have emerged as the most optimistic group in Asia, according to the Quarterly Investor Dashboard Sentiment survey by global financial services group, ING. As per the survey, around 84 per cent of the Indian respondents expect the stock market to rise in the third quarter of 2009. With foreign assets growing by more than 100 per cent annually in recent years, Indian multinational enterprises (MNEs) have become significant investors in global business markets and India is rapidly staking a claim to being a true global business power, according to a survey by the Indian School of Business and the Vale Columbia Center on Sustainable International Investment. In its optimistic report on Macroeconomic and Monetary Development of the economy in 2009, the Reserve Bank of India (RBI) said overall business sentiment was slated for a sharp improvement from that in the April-June 2009 quarter. Further, India and China will soon emerge as the preferred destinations for foreign investors, revealed Economy.com, the research arm of global rating agency Moody's. The country's foreign exchange reserves rose by US$ 1.28 billion to touch US$ 277.64 billion for the week ended September 4, 2009, according to figures released in the RBI’s Weekly Statistical Supplement. Net inflows through various non-resident Indians (NRIs) deposits surged from US$ 179 million in 2007-08 to US$ 3,999 million in 2008-09, according to the RBI. The most recent World Bank update on migration and remittances reveals that the remittances of US$ 52 billion by overseas Indians in 2008 makes it India's largest source of foreign exchange. India, along with China and Mexico, retained its position as one of the top recipients of migrant remittances among developing countries in 2008. FDI inflows into India in April-May 2009-10 have surged by 13 per cent at US$ 4.2 billion as against the previous two months driven by recovery in the global financial markets. Cumulative FDI in India from April 2000 to March 2009 stood at about US$ 90 billion. FIIs inflows into the Indian equity markets have touched US$ 10 billion in the April to September period of 2009-10. Venture Capital firms invested US$ 117 million over 27 deals in India during the six months ending June 2009, according to a study by Venture Intelligence in partnership with the Global-India Venture Capital Association. The private equity (PE) investment into the country reached US$ 1.03 billion during April-June 2009—registering an increase of 17 per cent sequentially—according to data compiled by SMC Capitals, an equity research and analysis firm.

The year-on-year (y-o-y) aggregate bank deposits stood at 21.2 per cent as on January 2, 2009. Bank credit touched 24 per cent (y-o-y) on January 2, 2009, as against 21.4 per cent on January 4, 2008. Since October 2008, the RBI has cut the cash reserve ratio (CRR) and the repo rate by 400 basis points each. Also, the reverse repo rate has been lowered by 200 basis points. Till April 7, 2009, the CRR had further been lowered by 50 basis points, while the repo and reverse repo rates have been lowered by 150 basis points each. Exports from special economic zones (SEZs) rose 33 per cent during the year to endMarch 2009. Exports from such tax-free manufacturing hubs totalled US$ 18.16 billion last year up from US$ 13.60 billion a year before. India Inc's order book has more than doubled to an all-time high of US$ 15.32 billion in the second quarter of the current financial year, compared to the first quarter. On a yearon-year basis, the increase is 21 per cent. Advance tax collections for the second quarter of the current financial year (2009-10) have shown robust growth of 35 to 40 per cent across industries. The domestic mutual fund industry registered a moderate growth of 5 per cent in its assets under management (AUM) in August 2009 at US$ 15,702, due to good performance by debt funds. India exported a total of 230,000 cars, vans, sport utility vehicles (SUVs) and trucks between January and July 2009, a growth of 18 per cent owing to its liberal investment policies and high quality manufacturing that stems from its growing prowess in research and development. India's gems and jewellery exports regained momentum and aggregated to US$ 1.9 billion in July 2009 as compared to US$ 1.7 billion in June 2009. The total Merger and acquisition (M&A) deals registered during the first seven months of this year stand at 158 with a value of US$ 5.91 billion, while PE deals stand at 114, totalling a value of US$ 4.89 billion, according to consulting firm, Grant Thornton. Investments in the Indian stock market through participatory notes (PNs) crossed US$ 20.65 billion-mark in May 2009. Sustainable energy investment in India went up to US$ 3.7 billion in 2008, up 12 per cent since 2007, according a report titled 'Global Trends in Sustainable Energy Investment 2009'. The rural India growth story The Indian growth story is spreading to the rural and semi-urban areas as well. The next phase of growth is expected to come from rural markets with rural India accounting for almost half of the domestic retail market, valued over US$ 300 billion. Rural India is set to witness an economic boom, with per capita income having grown by 50 per cent over the last 10 years, mainly on account of rising commodity prices and improved productivity. Development of basic infrastructure, generation of employment guarantee schemes, better information services and access to funding are also bringing prosperity to rural households.

Per Capita Income Per capita income of Indian individuals stood at US$ 773.54 in 2008-09, according to Central Statistical Organisation data. The per capita income in India stood at US$ 687.03 in 2007-08 and has risen by over one-third from US$ 536.79 in 2005-06 to US$ 773.54 in 2008-09. Advantage India According to the World Fact Book, India is among the world's youngest nations with a median age of 25 years as compared to 43 in Japan and 36 in USA. Of the BRIC—Brazil, Russia, India and China—countries, India is projected to stay the youngest with its working-age population estimated to rise to 70 per cent of the total demographic by 2030, the largest in the world. India will see 70 million new entrants to its workforce over the next 5 years. India has the second largest area of arable land in the world, making it one of the world's largest food producers—over 200 million tonnes of foodgrains are produced annually. India is the world's largest producer of milk (100 million tonnes per annum), sugarcane (315 million tonnes per annum) and tea (930 million kg per annum) and the second largest producer of rice, fruit and vegetables. With the largest number of listed companies - 10,000 across 23 stock exchanges, India has the third largest investor base in the world. India's healthy banking system with a network of 70,000 branches is among the largest in the world. According to a study by the McKinsey Global Institute (MGI), India's consumer market will be the world's fifth largest (from twelfth) in the world by 2025 and India's middle class will swell by over ten times from its current size of 50 million to 583 million people by 2025. India, which recorded production of 22.14 million tonne of steel during April-August 2009, is likely to emerge as the world's third largest steel producer in the current year. India continues to be the most preferred destination—among 50 top countries—for companies looking to offshore their information technology (IT) and back-office functions, according to global management consultancy, AT Kearney. The Indian stock markets have risen to be amongst the best performers globally across the emerging and developed markets in 2009 year-to-date, according to an analytical study by MSCI Barra indices. India has reclaimed its position as the most attractive destination for global retailers despite the downturn, according to the Global Retail Development Index (GRDI) brought out by US-based global management consulting firm, A T Kearney. Growth potential According to the CII Ernst & Young report titled 'India 2012: Telecom growth continues,' India's telecom services industry revenues are projected to reach US$ 54 billion in 2012, up from US$ 31 billion in 2008. The Indian telecom industry registered the highest number of subscriber additions at 15.84 million in March 2009, setting a global record.

A McKinsey report, 'The rise of Indian Consumer Market', estimates that the Indian consumer market is likely to grow four times by 2025, which is currently valued at US$ 511 billion. India ranks among the top 12 producers of manufacturing value added (MVA)— witnessing an increase of 12.3 per cent in its MVA output in 2005-07 as against 6.9 per cent in 2000-05—according to the United Nations Industrial Development Organisation (UNIDO). In textiles, the country is ranked fourth, while in electrical machinery and apparatus it is ranked fifth. It holds sixth position in the basic metals category; seventh in chemicals and chemical products; 10th in leather, leather products, refined petroleum products and nuclear fuel; twelfth in machinery and equipment and motor vehicles. In a development slated to enhance India's macroeconomic health as well as energy security, Reliance Industries (RIL) has commenced natural gas production from its D-6 block in the Krishna-Godavari (KG) basin. India has a market value of US$ 270.98 billion in low-carbon and environmental goods & services (LCEGS). With a 6 per cent share of the US$ 4.32 trillion global market, the country is tied with Japan at the third position. PE players are planning to raise funds for the infrastructure sector. Presently, around US$ 1.42 billion is being raised by India-dedicated infrastructure funds, according to data released by Preqin, a global firm that tracks PE and alternative assets. Infrastructure, including roads, power, highways, airports, ports and railways, has emerged as an asset class with long-term growth that can provide relatively stable returns, said an Assocham-Ernst & Young survey on Private Equity in Indian Infrastructure: Strengthening the Nexus. NASSCOM has estimated that the IT-BPO industry will witness an export growth of 4-7 per cent and domestic market growth of 15-18 per cent in 2009-10. Further, it has projected that around 40,000 students will be absorbed by IT companies this fiscal. With the availability of the 3G spectrum, about 275 million Indian subscribers will use 3G-enabled services, and the number of 3G-enabled handsets will reach close to 395 million by 2013-end, estimates the latest report by Evalueserve.

http://www.ibef.org/economy/economyoverview.aspx

2. INDUSTRIAL POLICY OF INDIA

Main features Objectives of the Industrial Policy of the Government are – 1. to maintain a sustained growth in productivity; 2. to enhance gainful employment; 3. to achieve optimal utilisation of human resources; 4. to attain international competitiveness and 5. to transform India into a major partner and player in the global arena. Policy focus is on – 1. Deregulating Indian industry; 2. Allowing the industry freedom and flexibility in responding to market forces and 3. Providing a policy regime that facilitates and fosters growth of Indian industry. Policy measures Some of the important policy measures announced and procedural simplifications undertaken to pursue the above objectives are as under: i) Liberalisation of Industrial Licensing Policy The list of items requiring compulsory licensing is reviewed on an ongoing basis. At present, only six industries are under compulsory licensing mainly on account of environmental, safety and strategic considerations. Similarly, there are only three industries reserved for the public sector. The lists of industries reserved for the public sector and of items under compulsory licensing are at Appendix III and IV respectively. ii) Introduction of Industrial Entrepreneurs’ Memorandum(IEM) Industries not requiring compulsory licensing are to file an Industrial Entrepreneurs’ Memorandum (IEM) to the Secretariat for Industrial Assistance (SIA). No industrial approval is required for such exempted industries. Amendments are also allowed to IEM proposals filed after 1.7.1998.

iii) Liberalisation of the Locational Policy A significantly amended locational policy in tune with the liberlised licensing policy is in place. No industrial approval is required from the Government for locations not falling within 25 kms of the periphery of cities having a population of more than one million except for those industries where industrial licensing is compulsory. Non-polluting industries such as electronics, computer software and printing can be located within 25 kms of the periphery of cities with more than one million population. Permission to other industries is granted in such locations only if they are located in an industrial area so designated prior to 25.7.91. Zoning and land use regulations as well as environmental legislations have to be followed. iv) Policy for Small Scale Industries Reservation of items of manufacture exclusively for the small scale sector forms an important focus of the industrial policy as a measure of protecting this sector. Since 24th December 1999, industrial undertakings with an investment upto rupees one crore are within the small scale and ancillary sector. A differential investment limit has been adopted since 9th October 2001 for 41 reserved items where the investment limit upto rupees five crore is prescribed for qualifying as a small scale unit. The investment limit for tiny units is Rs. 25 lakhs. 749 items are reserved for manufacture in the small scale sector. All undertakings other than the small scale industrial undertakings engaged in the manufacture of items reserved for manufacture in the small scale sector are required to obtain an industrial licence and undertake an export obligation of 50% of the annual production. This condition of licensing is, however, not applicable to those undertakings operating under 100% Export Oriented Undertakings Scheme, the Export Processing Zone (EPZ) or the Special Economic Zone Schemes (SEZs). V) Non-Resident Indians Scheme The general policy and facilities for Foreign Direct Investment as available to foreign investors/company are fully applicable to NRIs as well. In addition, Government has extended some concessions specially for NRIs and overseas corporate bodies having more than 60% stake by the NRIs. These inter-alia includes (i) NRI/OCB investment in the real estate and housing sectors upto 100% and (ii) NRI/OCB investment in domestic airlines sector upto 100%. NRI/OCBs are also allowed to invest upto 100% equity on non-repatriation basis in all activities except for a small negative list. Apart from this, NRI/OCBs are also allowed to invest on repatriation/non-repatriation under the portfolio investment scheme.

vi) Electronic Hardware Technology Park (EHTP)/Software Technology Park (STP) scheme: For building up strong electronics industry and with a view to enhancing export, two schemes viz. Electronic Hardware Technology Park (EHTP) and Software Technology Park (STP) are in operation. Under EHTP/STP scheme, the inputs are allowed to be procured free of duties. The Directors of STPs have powers to approved fresh STP/EHTP proposals and also grand post-approval amendment in repsect of EHTP/STP projects as have been given to the Development Commissioners of Export Processing Zones in the case of Export Oriented Units. All other application for setting up projects under these schemes, are considered by the Inter-Ministerial Standing Committee (IMSC) Chaired by Secretary (Information Technology). The IMSC is serviced by the SIA. vii) Policy for Foreign Direct Investment (FDI) Promotion of foreign direct investment forms an integral part of India’s economic policies. The role of foreign direct investment in accelerating economic growth is by way of infusion of capital, technology and modern management practices. The Department has put in place a liberal and transparent foreign investment regime where most activities are opened to foreign investment on automatic route without any limit on the extent of foreign ownership. Some of the recent initiatives taken to further liberalise the FDI regime, inter alia, include opening up of sectors such as Insurance (upto 26%); development of integrated townships (upto 100%); defence industry (upto 26%); tea plantation (utp 100% subject to divestment of 26% within five years to FDI); Encenhancement of FDI limits in private sector banking, allowing FDI up to 100% under the automatic route for most manufacturing activities in SEZs; opening up B2B ecommerce; Internet Service Providers (ISPs) without Gateways; electronic mail and voice mail to 100% foreign investment subject to 26% divestment condition; etc. The Department has also strengthened investment facilitation measures through Foreign Investment Implementation Authority (FIIA).

http://www.dipp.nic.in/evol1.htm

3. CONTRIBUTION OF VARIOUS SECTORS IN GDP

The Indian economy is the 12th largest in USD exchange rate terms. India is the second fastest growing economy in the world. India’s GDP has touched US$1.25 trillion. The crossing of Indian GDP over a trillion dollar mark in 2007 puts India in the elite group of 12 countries with trillion dollar economy. The tremendous growth rate has coincided with better macroeconomic stability. India has made remarkable progress in information technology, high end services and knowledge process services. However cause for concern would be this rapid growth has not been an inclusive in nature, in the sense it has not been accompanied by a just and equitable distribution of wealth among all sections of the population. This economic growth has been location specific and sector specific. For e.g. it has not percolated to sectors were labor is intensive (agriculture) and in states were poverty is acute (Bihar, Orissa, Madhya Pradesh and Uttar Pradesh). Though India has the second highest growth rate in the world, its rank in terms of human development index (which is broadly used has a measure of life expectancy, adult literacy and standard of living) has gone down to 128 among 177 countries in 2007 compared to 126 in 2006. Indian GDP –Trend Of Growth Rate 1960-1980 : 3.5% 1980-1990 : 5.4% 1990-2000 : 4.4% 2000-2009 : 6.4% Contribution of Various Sectors in GDP The contributions of various sectors in the Indian GDP for 1990-1991 are as follows: Agriculture: - 32% Industry: - 27% Service Sector: - 41% The contributions of various sectors in the Indian GDP for 2005-2006 are as follows: Agriculture: - 20%

Industry: - 26% Service Sector: - 54% The contributions of various sectors in the Indian GDP for 2007-2008 are as follows: Agriculture: - 17% Industry: - 29% Service Sector: - 54% It is great news that today the service sector is contributing more than half of the Indian GDP. It takes India one step closer to the developed economies of the world. Earlier it was agriculture which mainly contributed to the Indian GDP. The Indian government is still looking up to improve the GDP of the country and so several steps have been taken to boost the economy. Policies of FDI, SEZs and NRI investment have been framed to give a push to the economy and hence the GDP.

http://www.tradechakra.com/indian-economy/gdp.html

4. COMPARATIVE STUDY OF INDIA AND CHINA An attempt has been made in this paper to compare the competitiveness of India and China for the last decade. China’s GDP was three times that of India in 2007. China’s share of GDP to the world was 10.8% which was double of that of India. The average annual growth of per capita GDP of China was just double of that of India in 2007. There was current account surplus for China (9.4% of GDP) against current account deficit for India (-1.1% of GDP). Adult literacy rate was 61% for India against 91% for China during 1995-2005. India and China both had followed centralized planning but China adopted an approach of communism to implement policies whereas India’s approach was to implement policies in a democratic system. China carried forward the reform process aggressively in 1980’s and 1990’s whereas India has initiated reform process in 1991 and carried forward moderately. The structure of output in India has moved in favour of service sector from 42.1% of GDP in 1991 to 52% GDP in 2007, whereas in China it has moved in favour of industry from 42.1% of GDP to 48.6% during the same period. China strictly followed the traditional development model, but India tried to jump from agriculture to service sector resulting very low manufacturing growth for India compared to China. The low manufacturing growth of India resulted low over all growth of the country. The labour law in India and lack of infrastructure are the major deterrents of industrial growth in India. Manufacturing value added growth for India was just 6% during 1993-2003 whereas it was 12% for China during 1990-2005. Based on the global competitive index, India’s ranking was 50, whereas that of China it was 30 among 134 countries in 2008-09. Labour productivity in China was 0.137 which was higher than India (0.128) in 2002. Total factor productivity growth in China was 12% higher than in India during the period 1998-2003. FDI inflow in India was meager US $ 16.9 billion against China’s FDI inflow of US $ 69.5 billions in 2006. The competitiveness of India’s exports did not improve in post liberalisation period but improved in the case of China. Cost competitiveness for China was relatively less compared to its competitors. India’s export profitability compared to its competitors improved very much during post liberalisation period but it improved in China only during 1994-1997. Both Indian and Chinese imports were more competitive compared to their competitors. China had better revealed comparative advantage than India in many products.

http://www.iimk.ac.in/publications/WorkingPapers/CompIndiaChinaComparison.pdf

India vs China Economy: Comparing the Economies of India and China is to embark on an old puzzle that has fascinated smart people for centuries. Although it is urgent and important to discuss it because China and India are the world's next major powers. It is also important because the two countries have embraced very different models of development. Looking at the Similarities between the Economies of India and China, both are conscious of their role in the world economy. Both seek to play a bigger political role on the world stage. China is already doing that as a permanent member of the U.N. Security Council. Now observing the Differences between the Economies of India and China we see that China is taking tangible but slow steps towards embracing private entrepreneurship. India on the other hand is continuing to struggle with making things easier for multinationals. Although the differences are arguably narrowing, but the firstorder effect of all this is still “a big difference”. In general, FDI has been positive to both the Economies of India and China. It has provided goods and services that did not otherwise exist. It has also introduced competition into moribund sectors. Both countries have clocked up strong economic growth since 1980, China at a spectacular 9 per cent plus and India at nearly 6 per cent. Both countries have opened up to international trade and capital in the past quarter of a century, decisively in China and more hesitantly in India. China's per capita GDP growth has averaged 8 per cent in the 25 years since 1980, more than double the growth rate of Indian per capita GDP. Somewhere between 1975 and 1985 China's average income is believed to have surpassed India's. Since then it has kept moving ahead. By 2003 China's per capita GNP was at least 70 per cent higher than that of India's and her economy was more than twice as large as India's. Much of China's growth was powered by labor-intensive manufactured exports, which took the share of manufacturing in GDP to nearly 40 per cent, compared to a mere 16 per cent in India. Other indicators like living standards were just as decisively in China's favor by the turn of the millennium. China's poverty ratio was less than half India's 35 per cent. Female adult literacy was nearly double India's pathetic 45 per cent. Life expectancy in China was a solid 8 years higher than that in India. Looking at the future, it is easier to forecast a widening of the existing Economic disparities between China and India than a reduction.

5. INDIA’S CURRENT FIVE YEAR PLAN

Eleventh plan (2007-2012) The eleventh plan has the following objectives: 1. Income & Poverty o Accelerate GDP growth from 8% to 10% and then maintain at 10% in the 12th Plan in order to double per capita income by 2016-17 o Increase agricultural GDP growth rate to 4% per year to ensure a broader spread of benefits o Create 70 million new work opportunities. o Reduce educated unemployment to below 5%. o Raise real wage rate of unskilled workers by 20 percent. o Reduce the headcount ratio of consumption poverty by 10 percentage points. 2. Education o Reduce dropout rates of children from elementary school from 52.2% in 2003-04 to 20% by 2011-12 o Develop minimum standards of educational attainment in elementary school, and by regular testing monitor effectiveness of education to ensure quality o Increase literacy rate for persons of age 7 years or above to 85% o Lower gender gap in literacy to 10 percentage points o Increase the percentage of each cohort going to higher education from the present 10% to 15% by the end of the plan 3. Health o Reduce infant mortality rate to 28 and maternal mortality ratio to 1 per 1000 live births o Reduce Total Fertility Rate to 2.1 o Provide clean drinking water for all by 2009 and ensure that there are no slip-backs o Reduce malnutrition among children of age group 0-3 to half its present level o Reduce anaemia among women and girls by 50% by the end of the plan 4. Women and Children o Raise the sex ratio for age group 0-6 to 935 by 2011-12 and to 950 by 2016-17 o Ensure that at least 33 percent of the direct and indirect beneficiaries of all government schemes are women and girl children

o

Ensure that all children enjoy a safe childhood, without any compulsion to work

5. Infrastructure o Ensure electricity connection to all villages and BPL households by 2009 and round-the-clock power. o Ensure all-weather road connection to all habitation with population 1000 and above (500 in hilly and tribal areas) by 2009, and ensure coverage of all significant habitation by 2015 o Connect every village by telephone by November 2007 and provide broadband connectivity to all villages by 2012 o Provide homestead sites to all by 2012 and step up the pace of house construction for rural poor to cover all the poor by 2016-17

6. Environment o Increase forest and tree cover by 5 percentage points. o Attain WHO standards of air quality in all major cities by 2011-12. o Treat all urban waste water by 2011-12 to clean river waters. o Increase energy efficiency by 20 percentage points by 2016-17.

MONETARY AND FISCAL POLICY OF INDIA