Indian economy to become 100 percent digitised by 2020

Dec 10, 2015 0

NEW DELHI– The Indian economy, which is currently 50 percent digitized, is expected to reach 100 percent by 2020, a top official said on Thursday,

The digital transformation is being fueled by rapid innovation in the technology space, said National Cyber Security Coordinator Gulshan Rai at the 3rd edition of the National CIO Summit organized by Confederation of Indian Industry.

On the flip side, this transformation makes any country vulnerable to cyber threats, he said. India ranks amongst the five top most countries for malware penetration and security breaches.

Mobility, social networking, customer centricity and optimization of supply chain are four key forces driving the digital transformation, said KPMG director Arnab Mitra.

Organisations need to build capabilities to walk through this transformation, he said, adding successful digital transformation depend on degree of simplicity from adoption perspective, the risks identified and a proper mitigation plan needs to be in place.

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Improved governance to make India world’s highest growth nation: IBM

Dec 10, 2015 0

NEW DELHI–India, with improved governance and strong social and physical infrastructure, can become the world’s highest growth nation in the 21st century, says a new IBM study.

“India is witnessing a transformation that promises to minimise constraints and support economic advancement. The build out of social and digital infrastructure, powered by local innovations, will help India become an integral part of the global ecosystem,” said IBM India managing director Vanitha Narayanan, while releasing the findings here on Thursday.

In the study titled “Indian Century: Defining India’s Place in a Rapidly Changing Global Economy”, the IBM Institute for Business Value predicted how India could become the world’s highest growth nation in the 21st century.

The study is based on interviews with 1,088 Indian executives across large enterprises (73 percent), start-ups (11 percent), academia (5 percent) and government (11 percent) to get their perspective on opportunities and roadblocks for the Indian economy.

Nearly 51 percent of the Indian executives highlighted improved governance as a key driver for sustainable growth, while social (46 percent) and physical (45 percent) infrastructure were ranked important growth drivers on second and third spots respectively.

Nearly 43 percent executives placed access to capital on fourth spot and said this key factor has been a hindrance in sustainable growth.

“About 40 percent executives backed availability of skilled resources as the fifth key driver to bring sustainable growth in India,” the findings showed.

According to the study, India benefits from entrepreneurialism and diversity and is currently ranking as the fourth-largest source of technology start-ups globally.

“A young population equipped with the right skills and growing middle class will reinforce economic activity through increased consumption and investment,” it highlighted, noting that by 2020, India will constitute 30 percent of the world’s workforce and by 2030, the nation is projected to have the largest middle-class population in the world.

“The study rightly points out that India has immense potential to leapfrog traditional growth paradigms. If we are able to capitalise on the opportunities present in front of us, the next decade can definitely mark the beginning of the Indian Century,” Narayanan emphasised.

Based on unique advantages that India has and the recognition that economic transformation is essential for India’s long-term well-being, the country is already on the path of economic advancement, said the study.

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Cabinet clears policy to boost shipbuilding in India

Dec 9, 2015 0

NEW DELHI– A Rs.4,000 crore ten-year policy aimed at boosting shipbuilding and ship repair industry in India under the ‘Make in India’ initiative was cleared on Wednesday by the Union Cabinet.

The policy includes grant of a ‘Right of First Refusal’ for Indian shipyards for government purchases; tax incentives and grant of infrastructure status for shipbuilding and ship repair industry.

Shipbuilding and ship repair industry in India is important because it has the same impact as infrastructure sector due to higher multiplier effect on investment and turnover, Shipping Ministry statement said.

“A policy for the grant of financial assistance to shipyards, after delivery of ship, to counter cost disadvantages at 20 percent of the contract price or the fair price, whichever is lower; such assistance is to be reduced at three percent every three years and will be given for all types of ships,” it added.

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Nearly 70 percent of Indian farms are very small, census shows

Dec 9, 2015 0

NEW DELHI– As much as 67 percent of India’s farmland is held by the marginal farmers with holdings below one hectare, against less than 1 percent in large holdings of 10 hectares and above, the latest Agriculture Census shows.

“The average size of the holding has been estimated as 1.15 hectare. The average size of these holdings has shown a steady declining trend over various Agriculture Censuses since 1970-71,” an official statement said on Wednesday.

Nonetheless, the percentage of area that was actually operated under larger holdings was more than 10 times the actual land held at 10.59 percent, while for marginal farmers it was three times lower at 22.50 percent.

This clearly shows the stress that marginal farmers undergo in India.

Another cause for concern is that in 2010-11, the proportion of net irrigated area to net area sown was 45.70 percent, which shows that for half the country’s farmland irrigation is yet to reach farmers, who rely entirely on rains for their crops.

Among the sources of irrigation, tube-wells was main source followed by canals.

While the cropped area in India is estimated at 193.76 million hectares, nine states accounted for 78 percent of it — Andhra Pradesh, Karnataka, Gujarat, Madhya Pradesh, Maharashtra, Rajasthan, Uttar Pradesh, Punjab, and West Bengal.

Out of the total 64.57 million hectare net irrigated area, 48.16 percent is accounted for by small and marginal holdings, 43.77 percent by semi-medium and Medium holdings and 8.07 percent by large holdings, the census shows.

Agriculture Census in India is conducted at five-yearly intervals for collection of information about structural aspects of farm holdings in the country. The basic unit for data is the area under operational holding.

The Agriculture Census data is collected in three phases – first on primary subjects like the numbers and area of operational holdings, followed by a detailed one based on samples from 20 percent of villages on tenancy, land use, irrigation and finally on pattern of input use.

The concept of agricultural operational holdings does not include those holdings which are not operating any agricultural land and are engaged exclusively in subjects such as livestock, poultry and fishing.

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