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English Release 27-February 2015
Date Month Year
  • Vice President's Secretariat
  • VICE PRESIDENT RELEASES HINDI TRANSLATION OF BOOKS BY LATE DR. NARENDRA DABHOLKAR
  • Prime Minister's Office
  • Text of PM's reply to the debate on Motion of thanks to President’s Address
  • AYUSH
  • Panchagavya Therapy
  • Election Commission
  • Bye-elections to the Council of States from various States.
  • Min of Agriculture
  • Sowing Area Under Rabi Rice and Summer Pulses And Oilseeds
  • Online Agri Platforms for Sale of Agri Produce
  • Malpractices in Cooperative Societies
  • Decrease in Crops Sowing Area
  • Dependence on Imported Pulses
  • Infrastructure for Online Trading
  • Fertility of Agricultural Land
  • Setting up of Fish Brood Banks
  • Production of Foodgrains and Fruits in Maharashtra
  • Min of Chemicals and Fertilizers
  • Steps Taken to Keep the Prices of P&K Fertilizers at Reasonable Rates
  • No Proposal for Deregulation of Urea
  • Min of Commerce & Industry
  • 'Make in India' Programme
  • Delhi-Mumbai Industrial Corridor
  • Ease of Doing Business Index
  • Ban on Import of Poultry Products from United States
  • Boost to Leather Sector
  • Min of Comm. & Information Technology
  • TRAI issues draft Tariff Order prescribing framework for commercial interoperability of Customer Premises Equipment (CPE) in DTH services, for consultation.
  • TRAI issues a draft Amendment to the Telecommunication Tariff Order, 1999 for revision of tariff regime for national roaming service for comments of the stakeholders.
  • Min of Consumer Affairs, Food & Public Distribution
  • Recommendations for Restructuring of FCI are Under Consideration of the Government
  • National Food Security Act Implemented in Eleven States
  • Steps to Ensure Better Targeting of Food Subsidies
  • 612.91 Lakh Tons of PDS Foodgrains Allocated to the States During Current Year
  • Rs 16,904 Crore Subsidy Released to the States for Procuring Foodgrains for Central Pool
  • Damage in Central Pools Stocks Brought Down to 0.044%
  • Min of Corporate Affairs
  • National Company Law Tribunal
  • Regulation of Salary
  • Contribution to Political Parties
  • Corporate Frauds
  • Competition Commission of India
  • Min of Culture
  • Government accepts the resignation of Shri Mani Shankar Aiyar from the Chairmanship of Coordination Committee of Zonal Cultural Centres (CCZCC)
  • Min of Defence
  • Indian Navy Concludes Its Annual Exercise
  • Participation of States in Republic Day Celebrations
  • Ex-Servicemen Contributory Health Scheme
  • Setting up of Technology Development Board
  • Transportation of Arms and Ammunitions
  • Aircraft and Helicopter Crashes
  • Shortage of Articles in Army
  • Procurement of Arms and Ammunition
  • Production of Defence Equipment
  • Road Projects of BRO
  • Illegal Entry of Foreign Vessels

  • To be Answered on the 27th February, 2015
  • National Cadet Corps
  • Development of Defence Industries
  • Import of Defence Equipment
  • Veterans Commission
  • Export of Defence Products
  • Submarine Construction Project
  • Purchase of Fighter Aircraft
  • Replacement of Avro Fleet
  • Blacklisting of Companies
  • Min of Earth Science
  • Maldivian Minister Calls on the Minister for Science & Technology and Earh Sciences Dr. Harsh Vardhan to Discuss Issues Relating to Regional Integrated Multi-Hazard Early Warning Systems (Rimes)
  • Ministry of Finance
  • Dr. Kshatrapati Shivaji, IAS(MH:86) Appointed as Chairman and Managing Director, Small Industries Development Bank of India(SIDBI) on Deputation Basis for a period of Three Years
  • ED Investigation on Black Money
  • Recommendations made by the Shome Committee/Tax Administration Refroms Commission
  • Rashtriya Swasthya Bima Yojana; Provides Health Insurance to Unorganized Workers Belonging to BPL Category and their Families
  • Cut in Repo Rate
  • Payment of Dividents from Public Sector Banks
  • Improvement in Female Literacy and Educational Challenges
  • Wiping Every Tear from Every Eye: The Jan Dhan Yojana, Aadhaar and Mobile Numbers Provide the Solution
  • Major Reform Initiatives Undertaken by Government in Banking, Insurance and Financial Sector
  • Economic Survey highlights the need for balance between ‘Make in India’ and ‘Skilling India’
  • A Growth Rate of over 8 Per Cent Expected for the Coming Year
  • Government Remains Committed to Fiscal Consolidation; Economic Survey says Enhanced Revenue Generation is a Priority
  • Infrastructure Growth in terms of Eight Core Industries Higher than Industrial Growth since 2011-12
  • India’s National Solar Mission Being Scaled up Five-Fold to 100,000 Megawatts
  • India needs to create additional Fiscal Space: Economic Survey 2014 – 15
  • Economic Survey Recommends Reform of Railway’s Structure, Commercial Practices, Overhaul of Technology
  • Skill Development and Employment are major Challenges: Economic Survey
  • Economic Survey 2014-15 Highlights
  • The Fourteenth Finance Commission (FFC) will enhance Fiscal Federalism in India: Economic Survey 2014-15
  • Government approves a Rs. 200 crore Central Sector Scheme for implementing e-platform for agri-marketing
  • Hyper-Growth in Tech start ups in India, says Economic Survey on Services Sector
  • Services Sector Clocks Double Digit Growth
  • External Sector is returning to the path of strength and resilience: Economic Survey
  • Inflation shows a declining trend during the year 2014-15 (April-December)
  • Foodgrains production for 2014-15 estimated at 257.07 million tonnes; will exceed average food grain production of last five years by 8.5 million tones
  • From Carbon Subsidy to Carbon Tax: India’s Green Actions
  • Food Subsidy Bill stands at Rs. 107823.75 crore during 2014-15 (upto January, 2015), shows an increase of 20% over previous year
  • Create National Common Market in Agricultural Commodities: Economic Survey 2014-15
  • Revive public investment to improve investment climate: Economic Survey 2014 – 15
  • Min of Health and Family Welfare
  • Medical Facilities in Tribal Areas
  • Mission Indradhanush will Provide Immunization Against 7 Life-Threatening Diseases
  • Steps Taken to Reduce IMR and MMR
  • National Deworming Drive Launched in 11 States
  • Healthcare of Elderly People
  • Health Research
  • AIIMS Like Institutions
  • Essential Drugs
  • Stufies for Assessment of Health and Family Welfare
  • Polio Eradication Programmes
  • National Guidelines for Stem Cell Research and Therapy
  • Evaluation of Accredited Social Health Activists (ASHA)
  • Steps Taken for Prevention and Control of Vector-Borne Diseases
  • Min of Home Affairs
  • Rajnath Singh calls for Promotion of Education with Scientific Temper and Skills
  • Min of Law & Justice
  • Press Communique Related to Appointment of Shri Justice Amitava Roy, Chief Justice of the Orissa High Court as the Judge of the Supreme Court
  • Min of Personnel, Public Grievances & Pensions
  • ACC Appointments
  • Min of Petroleum & Natural Gas
  • Global crude oil price of Indian Basket was US$ 59.19 per bbl on 26.02.2015
  • Min of Planning
  • The Government to continue the financial assistance to 88 districts for Left Wing Extremism Affected Districts
  • Initiatives to improve the performance in infrastructure sectors
  • Min of Science & Technology
  • National Science Day 2015
  • CSIR Wins International Competition to Set up Wax Deoiling Technology at Numaligarh Refinery of BPCL
  • Min of Women and Child Development
  • 2774 adoptions during April-December, 2014
  • 26.55% reduction in moderately/severely underweight children under ICDS between 2009-10 to 2013-14
  • 887 Lakh rupees released to States/UTs for effective implementation of District Action Plans under BBBP programme
  • An amount of Rs 12727 lakh for Child Care Institutions and Rs 915 lakh for Specialized Adoption Agencies allocated under ICPS during 2014-15
  • Setting up of Special Juvenile Police Units under JJ Act, 2000
  • A sum of Rs. 400 lakhs and a total of 24000 beneficiaries covered under the STEP Scheme till date during 2014-15

Previous Date

 
Prime Minister's Office01-April, 2010 20:32 IST
Prime Minister’s address at RBI Platinum Jubilee Celebrations
The Prime Minister, Dr. Manmohan Singh addressed the Platinum Jubilee celebrations of the Reserve Bank of India in Mumbai today. Following is the text of the Prime Minister’s address on the occasion:

“It is indeed a great pleasure to be here in Mumbai for the Platinum Jubilee celebrations of the Reserve Bank of India. For me, this is also a very special moment of nostalgia. I spent some very memorable years in this institution as its Governor. My wife and I cherish the memories of many new enduring friendships that we made during those memorable days. I also recall with deep appreciation the role played by the Reserve Bank in helping the Government of India in the implementation of the agenda for economic reforms when I was the Finance Minister of India at a very difficult time in our country’s economic history. To return as Prime Minister for the Platinum Jubilee of this great institution is indeed an emotionally moving experience for me.

When I took over as Finance Minister in 1991, I was convinced that the economic liberalisation and reforms could only succeed if complemented by broad based reform in the banking and financial sectors. I turned to my old friend and former RBI Governor Shri M Narasimham to Chair a Committee to make recommendations on this very important issue. The Report of the Narasimham Committee outlined a comprehensive agenda of reform which served as a blue print of what we needed to do in subsequent years.

It would have been difficult to implement those reforms had they not received enthusiastic support, as they did, from the Governor of the day, Shri S. Venkitaramanan and Dr. Rangrajan. Subsequently as Venitramanan’s successor Dr C. Rangarajan took the financial reform agenda further forward in many critical areas, including especially the ending of automatic monetisation of the government’s deficit.

As with economic reforms in general, financial sector reforms in India were implemented at a gradual pace. We were often criticised for our incremental approach which critics often complained was far too slow. But few would deny that we have accomplished a great deal over the years and Reserve Bank has made important contribution towards this. We have successfully eliminated stifling controls on industry and investment. We have opened the economy to foreign trade, lowered tariffs and switched over to a market determined exchange rate. We have liberalised capital controls enabling the economy to absorb substantial inflows of capital in the form of both FDI and FII flows into the stock market. In recent years, foreign investment has also become a two way flow as many Indian companies have established a presence abroad through investment or acquisition.

All of this has been achieved without experiencing a serious macro economic crisis or severe inflation over an extended period. Most importantly, the real economy has clearly prospered. The rate of growth of GDP has increased steadily over the past two decades, culminating in an unprecedented 9 percent growth per year in the four year period just before the global financial crisis. Poverty too, has declined steadily, though this is an area where much more remains to be done.

The Reserve Bank of India has played a major role in this transformation. It has been a lead player in banking and financial sector reforms and has acted as a confidential adviser to the Government on many other issues relevant to the complex task of macro economic management in an increasingly open and liberalised economic environment. Indeed, it is one of our great institutions of which we can all be truly proud.

The past two years have been difficult years for governments and central banks all over the world. Excessive credit expansion and asset price inflation both fuelled by so-called “financial innovations” of dubious value, and a lax regulatory environment led to an accumulation of risk that was not adequately understood and ultimately produced a severe crisis.

India was relatively insulated from these developments because our financial system was much less integrated with the global system. However, the RBI deserves credit for having been prescient about the dangers posed by property bubbles. The action taken by Governor Reddy, who is present here, well before the crisis to tighten bank credit against real estate, limited bank exposure on this account.

When the crisis exploded in September 2008, the RBI rapidly reversed its earlier tightening of credit to meet the new and changed circumstances. The CRR and the repo and reverse repo rates were rapidly lowered in a series of quick steps. Some initiatives were also taken to enhance access to bank credit by Non Banking Finance Companies. Signs of panic withdrawals from some private sector banks in the initial weeks of the crisis were met with strong reassurances by both the Government and the RBI that our banks were sound and would be fully supported.

Ensuring that the Indian financial system remained stable in these very difficult times was a major achievement in financial and economic management. I would like to compliment Governor Subbarao and his team at the RBI for the role they played in this period.

With the crisis now nearly over, we need to reflect on the challenges that confront us in the years that lie ahead.

The industrialised countries are almost certainly entering a period of slower growth. India on the other hand is emerging stronger, with a good prospect of better performance in future. Our domestic savings rate has increased to around 35 percent and our domestic investment rates are around 37 percent of our GDP. We have a highly entrepreneurial private sector which has demonstrated that it can compete in global markets, not just in software but in areas of traditional manufacturing also. We have a critical mass of human resources with good quality higher education, which definitely places us at an advantage in today’s world. We are geographically located in a continent which is gaining in economic importance and looks like being a major driver of the world economy in the years that lie ahead.

We must build on these strengths and return as quickly as possible to a high growth path. I believe we can get back to 9 percent growth path by the end of the Eleventh Plan and do even better thereafter. I have therefore asked the Planning Commission to explore the feasibility of achieving 10 percent inclusive growth in the Twelfth Five Year Plan.

Achieving this outcome will require many policy changes. Let me comment briefly on those that concern the Reserve Bank.

As we pursue our objective of achieving rapid and inclusive growth, our monetary and financial policies must be guided by three important objectives. First, they must ensure that inflation is kept under control since it hurts the common man the most and also distorts economic signals. Second, they must ensure stability of the banking and financial system since otherwise we run the risk of experiencing financial crises which always impose high costs on the real economy as well. Third, they must meet the financial intermediation needs of rapid and inclusive growth.

Monetary and financial policies can achieve these objectives efficiently only if the macro economic environment is sound. The size of the fiscal deficit is a key parameter in this context. We allowed a large increase in the fiscal deficit in the past two years as we responded to the global economic crisis. I compliment my colleague and friend Pranab Mukherjee for this. This must now be reversed. We are therefore, firmly committed to bring the economy back to a fiscally sustainable path. This involves a reduction in the fiscal deficit from 6.8 percent of GDP in 2009-10 to 5.5 percent in 2010-11 with a further reduction in the next two years reaching 4.1 percent in 2012-13.

It will be much easier for monetary policy to control inflation if the fiscal targets are met. This is not to say that monetary policy has no role to play in the face of fiscal imbalance. However, its role in that situation is essentially defensive, of avoiding monetary expansion to accommodate the deficit since such accommodation will only stoke inflation. The problem is that monetary discipline in such a situation may help contain inflation but it will not offset the negative impact of large fiscal deficits on the availability of resources for private investment, or on the long term interest rate, both of which are critical for growth.

In fact, in an economy open to capital flows, monetary discipline in the face of fiscal imbalances can lead to a rise in interest rates triggering excessive capital inflows, which in turn put pressure on the exchange rate, making the task of macro-management that much more difficult. This is the well known problem of the impossible trinity or trilemma. In an economy with capital mobility you cannot simultaneously have exchange rate stability and an independent monetary policy. The responsibility for handling this delicate balancing act falls on the Reserve Bank of India. Its task is made easier by the fact that the capital account is not entirely open and there are restrictions on inflows of debt, especially short term debt. Caution in the pace of opening the capital account has been a conscious feature of our policy, and there are good reasons to continue with this approach.

The second objective I mentioned is the need to ensure financial stability. There are important lessons to be learnt from the recent crisis in this respect. Financial regulation must be designed to avoid excessive risk taking keeping in mind that banks must protect their balance sheets from cyclical variations. We must be particularly watchful of regulatory loopholes which can create systemic risk. Micro prudential regulation which focuses on the stability of individual institutions has to be supplemented by macro prudential considerations, which relate to the stability of the system as a whole.

All these issues are being examined in the Financial Stability Board which is the key multilateral forum for evolving an agreed architecture of financial regulation. As members of the G20, we are now full members of this Board and are represented in that body by the Reserve Bank of India. The Bank must ensure that our concerns, reflecting our constraints and special circumstances, are fully reflected in the new international consensus that emerges out of the deliberations of the Financial Stability Board.

This brings me to the third objective of ensuring that the financial system meets the intermediation requirement of rapid and inclusive growth. This is in some ways the most challenging task before us. Our financial system has proved to be stable, but that does not mean that it does not need further development and refinement. I sometimes hear it said that our insulation has served us well and we should therefore avoid experimentation and further liberalisation in this sector. This I fear would be the wrong lesson to learn from the crisis. We must not draw the conclusion that financial innovation is not important in our situation.

Our banking and financial system is still relatively small compared to the size of the economy and there are many dimensions in which it must develop to enable it to support the higher rates of economic growth we are now aiming at. These higher rates of growth will occur in an economic environment in which India will remain open to the world and Indian companies will operate globally. Management of foreign currency risk will be an increasingly important concern in future and the financial system must provide our companies with the instruments they need to manage these risks at reasonable cost.

Similarly, rapid growth requires massive investments in infrastructure and much of this will have to be funded through long term debt. Banks are not ideally suited to provide long term debt and this underscores the need to develop a domestic corporate debt market. This too requires a conscious plan of action.

Finally, for growth to be truly inclusive, banking must reach out to many more people than it reaches now. Technological changes in the form of Information Technology and mobile banking greatly expand the potential reach of the banking system. The Reserve Bank has already shown commendable flexibility in allowing the system of banking agents to develop. It must remain committed to further expansion of banking services so that banks can touch the lives of more and more of our ordinary people. Our banking system must never lose sight of credit needs of our farmers, the small and medium industry and other priority sectors. We have a long way to go before the benefits of financial inclusion reach the worthier common man.

The Reserve Bank has served our country with great distinction in its seventy five years of existence. I conclude with the prayer that the best is yet to come and that its next seventy five years will be still more productive and still be more creative for our great country. I wish the Reserve Bank of India and its staff all the very best for the future.”
* * *


AKT/SH/SKS
(Release ID :60027)

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