Wednesday, April 10, 2013

Finance Minister Fails to Improve Economic Health --- Now Tries To Motivate Rating Agencies To Improve Ratings

Finance Minister Fails to Improve Economic Health --- Now Tries To Motivate Rating Agencies To Improve Ratings--------This is Indian culture , not to do business but get (BUY )a certificate of doing best business . 

Accounts of Business men may not be as per rules , But Chartered accountants are motivated to certify balance sheet. There may be bad assets hidden in balance sheets of all banks , but a team of CAs will certify the soundness of health of the bank in exchange of some gifts. There may be deficiencies in compliance of various rules but compliance certificate is obtained . 

Character of a person may not be good, but a certificate of best character is bought from the relevant office. 

Income of a family may be higher but a certificate of Low Income is available in market . Drug Inspector may certify a medical shop even if the drugs are fake and doctor s not posted there. 

Pollution control Board may issue a Pollution Free certificate to any industry if he is ready to please the issuing authority. Police verification is easy for issuance of passport if the person is ready to pay a few hundred rupees to police personnel. There may not be a good teacher or even sitting place in school and there may not be teaching but the government is ready to say that Indians has been given the right  to education and all students are given pass certificate. There may not be good doctor in hospitals and no good medicines for patients , but the authority is ready to certify fitness of the Hospital. There may not be good teaching in 90 percent of MBA or Technical colleges but every students get pass certificate.And so on..

Product of a company may not be good but ISO certificate is bought somehow or the other. 

Government may be corrupt and inefficient but Good banners and hoarding are enough to keep India shining.

FinMin readies blueprint to convince rating agencies on growth-Business Line


Fitch, S&P, Moody’s to visit North Block soon
The Finance Ministry plans to fire on all cylinders to convince international rating agencies – Fitch, Standard & Poor’s and Moody’s – that the Indian economy is on a strong recovery path.
Fitch will be the first to visit North Block (which houses the Finance Ministry) on April 12, followed by S&P’s on April 25 and Moody’s on May 7.
The meetings are taking place at time when Asian Development Bank (ADB) has lowered India’s growth projection for 2013-14 to six per cent from 6.5 per cent. The growth forecast is still under review by domestic rating agencies such as Crisil, which had forecast a 6.4 per cent growth rate for the current fiscal.
However, the Finance Ministry does not seem to be too perturbed by the revision. “It is in line with the Government’s estimate at a lower side.” a senior Finance Ministry official told Business Line.
In the Budget, the Ministry had projected growth rate of 6.1-6.7 per cent. Now, apart from ADB, other agencies are likely to keep the growth projection around six per cent.
Talking about the meetings with rating agencies, the official said the Ministry would focus on four areas. The first is fiscal consolidation. “Strong measures have resulted in bringing fiscal deficit even lower than the revised estimate of 5.2 per cent. We are likely to close 2012-13 with a fiscal deficit between 5-5.1 per cent,” he added.
The second key point will be inflation. Although core inflation (inflation excluding very volatile components such as food and energy) has moderated, food inflation is still high.
The third important issue will be the current account deficit (CAD). “The significant thing here is that financing of CAD is without dipping into foreign exchange reserves. However, it needs to be explained that there is no short-term solution,” he said.
After touching a record 6.7 per cent in the third quarter (October-December), CAD is likely to moderate in the fourth quarter (January-March). With this, this deficit is estimated to be around five per cent for the full fiscal 2012-13. Even ADB has projected five per cent CAD.
The Finance Ministry’s fourth point will be on growth and the various reform measures.
“Riding on various reform measures, growth is picking up. We have taken steps to boost manufacturing. The Cabinet Committee on Investment is now very active in giving clearances to stalled projects,” the official said, while mentioning measures such as liberalisation of FDI, raising diesel prices and, more recently, sugar de-control.
The official clarified that the Government would not seek a revision of its rating outlook. “We will explain various aspects of India’s growth story and it is up to them to consider revising the outlook,” the official said.


Does India Inc love corruption: Not a single Indian private co part of UN initiative against graft

11 Apr, 2013, 0537 hrs ISTVikas DhootET Bureau

NEW DELHI: India Inc has been conspicuously absent from a four-year-old United Nations-led global initiative against corruption, an unflattering distinction for Indian industry that could also buttress a widespread feeling that doing business in the country is difficult without bribing officials.

Not one Indian company has yet joined a global panel of companies steered by the world body to act against corruption in their businesses and pressurise governments to stem the graft menace, forcing the head of the initiative to repeat a call to India Inc to join the fight. The panel already has top global names such as Coca-Cola, Microsoft, Siemens and Accenture.

"At the moment, I do not have any company from India - not one of them," Olajobi Makinwa of the United Nations Global Compact Office (UNGCO) told ET, urging the corporate sector to join the fight to remain competitive and reduce poverty. "India is a big market with lots of money that offers huge avenues for corruption to thrive... The private sector must act against graft as governments don't bribe themselves. In most cases, bribes come in the form of huge chunks of black money that flow from the private sector to the government," she said, drawing a linkage between corporate graft and black money flows.

Representatives of Indian industry expressed surprise at the absence of local firms in the UN-led initiative, saying this could simply be because they were not aware of it.

"The United Nations is generally perceived as a diplomats' group, not one for businessmen. So if the UN Global Compact wants us to join their international working group against corruption, they should approach us through industry bodies like the CII," Godrej Group Chairman Adi Godrej said.

'Work for Corruption'

Last November, ET reported that five Indian companies had joined a global business coalition against corruption, pledging to stamp out bribery in their organisations and across their supply chains .

Makinwa's comments come at a time corruption and crony capitalism are dominating the national discourse, casting a cloud over some of the country's top business groups and hobbling government functioning in general.

Saying the private sector has immense power, she urged companies to work together against corruption. "Collective action is very important in this fight against this hydra-headed problem as no company alone can fight the graft menace. If a company says we won't pay bribes, but others continue to do so, it will be left alone. But when everyone says we are not going to pay up, then it becomes a force to reckon with," she said. Makinwa, a Nigerian national who once headed the South African chapter of Amnesty International, said she was surprised to find that although public sector Indian firms have signed integrity pacts designed by Transparency International, the private sector was yet to do so.

"The government and the private sector are a reflection of the society we live in," Makinwa said, suggesting that the popular discourse on corruption be reframed. "We don't want any sector to point fingers. Companies say the government indulges in extortion. The government says 'Oh no, that's not true', and people would say, 'both the government and private firms are bad'. That won't take us anywhere," she said.

Makinwa, in India this week to 
promote the UN's attempt to integrate anti-corruption and good governance into the global development agenda when the millennium development goals expire at the end of 2015, said she would, upon her return to New York, write again to top Indian companies to sign up to UNGCO. Working together at the global level can help Indian companies share the learnings and tools developed to counter graft, which include whistleblower protection policies and risk assessment tools. "A success story can tell a company that when you fight corruption, it does pay," she said

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