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AeroShow 2017 स्वावलंबन के पथ पर अग्रसर

स्वावलंबन के पथ पर अग्रसर … भारतीय वायु सेना

नभः स्पृशं दीप्तम्  – Touch the Sky with Glory — This is the motto of our Indian Air Force, taken from Bhagvad Gita. The Samkrit saying comes at a time in the Kurukshetra battle when Bhagwan Sri Krishna‘s divine form is reaching the sky with glory, evoking fear and loss of self-control in Arjuna‘s mind. The Indian Air Force, similarly, aims to overwhelm its adversaries with its sophisticated air power. The Indian Air Force leading the path towards Self-Reliance… proud to present the #AeroShow2017 event summary…

The eleventh edition of the five-day event began on Tuesday, the 14th February 2017, with Defence minister Sri Manohar Parrikar making a strong pitch for “Make in India”. Asia’s Premier biennial Air show, was concluded at Air Force Station Yelahanka, in Bengaluru on Saturday, the 18th February 2017.

स्वावलंबन के पथ पर अग्रसर …

स्वावलंबन के पथ पर अग्रसर …

Aero India 2017 provided a significant platform in bolstering business opportunities in International aviation sector. It has favourably poised an exponential growth over previous edition. A rapidly growing economy, defence preparedness challenges and opening up of defence production to private sector, have given a major fillip to the defence industry in India. It has also become a hub centre for defence business in the Asia.

Aero India 2017 has become a huge attraction for aviation aficionados and technocrats, who thronged the event in Bengaluru to witness the static and air display. The event turned out to be a carnival during its last two days as lakhs of people thronged the Air Force Station at Yelahanka in Bengaluru to witness the aerial feast. Braving the hot weather, people crawled through heavy traffic on the highway headed to the air base, which presented the picture of a sea of humanity, with crowds jostling for vantage places and craning their necks to witness the daredevilry of aerobatic teams from across the globe.

Besides, 65 ministerial and other high-level delegates from several countries that attended the event, the exhibition at the show saw participation from 549 companies, out of which 270 were Indian and 279 foreign. A five-member Chinese delegation from the People’s Liberation Army Air Force attended the show for the first time!

More than 750 Global and Indian companies have participated in this mega event, including scores of SMEs and MSMEs.

  • Ministerial/Defence Heads/Secretary Level Delegations From 109 Countries
  • More Than 150000 Business Visitors & 300000 General Visitors
  • The Youth Innovative Pavilion
  • India Export Pavilion
  • Airport Infrastructure
  • Defence Engineering
  • Aerospace Industry
  • Civil Aviation
  • Defence Aviation
  • SME and MSME

The companies participated in the Aero India 2017 is listed at the AeroIndia website.

The Hindustan Aeronautics Limited, भारत ‘s premier Aeronautical industry leader (HAL) took the lead along with other companies in sponsoring this mega event in showcasing the majesty and the might of Indian Defence forces. Among others were defence technology manufacturing companies such as Bharat Electronics Limited (BEL), Bharat Earth Movers Limited (BEML), Bharat Dynamics Limited (BDL), Defence Research and Development Organisation (DRDO), Eight TATA Industries, Wipro’s services for Aerospace and Defense Industry, Reliance Aerostructure Limited and many proud SMEs (Small and Medium-sized Enterprises) and MSMEs (Micro, Small and Medium Enterprises). Many foreign firms including the global majors like Dassault Rafale, Airbus and Boeing chased the #MakeinIndia goals at air show!

The main themes of this event are #MakeInIndia and #DefenceManufacturing. The Make in India plan seeks to cut the country’s dependence on imported weapons and position the country as a hub of defence manufacturing.

tejas3

Tejas, the Indian single-seat, multi-role light fighter jet was the main highlight and a great source of pride. This fighter jet was designed by the Aeronautical Development Agency (ADA) and Hindustan Aeronautics Limited (HAL) for the Indian Air Force and Navy. The aircraft has a tail-less compound delta-wing configuration, which gives it high maneuverability. The LCA was officially named “Tejas” in 2003, meaning “Radiant” in Samskrit by the then Prime Minister Sri Atal Bihari Vajpayee. Air Chief Marshal Birender Singh Dhanoa, who took over as the head of the Indian Air Force two months ago, did a 20-minute sortie in the Light Combat Aircraft developed by Hindustan Aeronautical Ltd., Tejas.

India signed 51 contracts valued at Rs 1.16 lakh crore with foreign vendors for buying weapons and equipment, compared to 90 deals worth Rs 83,344 crore inked with Indian suppliers, in the last three years. The defence ministry has also accorded its acceptance of necessity – the first step towards making an acquisition – for 85 projects worth Rs 1.6 lakh crore in the last two years. Many of these projects come under the Make in India plan.

Airbus has partnered with the Tata Advanced Systems Limited to set up a final assembly line for C295W military transport planes in the country. The C295Ws will replace the Indian Air Force’s ageing Avro fleet as part of a $2-billion programme for 56 new planes. While 16 of these will come in a flyaway condition, the remaining will be built in India.

Airbus has also tied up with Mahindra Defence for manufacturing military helicopters. The group aims to make India the global hub for manufacturing AS565 Panther helicopters for catering to domestic as well as international markets.

British engine maker Rolls-Royce will also pursue opportunities to “co-create, co-develop and co-manufacture” high-end products in India in collaboration with local partners. “Aero India highlights the complete spectrum of the country’s aerospace and defence interests. For us, this is a significant platform to showcase our continued commitment to support India’s future indigenisation and self-reliance ambitions” said Rolls-Royce India and South Asia chief Kishore Jayaraman. The company exhibited the Adour Mk951 engine, which powers the latest variant of the Hawk aircraft. The IAF’s Jaguar fighter planes have been flying with Rolls-Royce Adour Mk811 engines since 1981.

European missile maker MBDA also believes that the #MakeInIndia initiative holds potential. It has offered to share its latest guided missile system technology with India, and will pitch for it again at the air show.

The IAF’s latest Rafale fighters will be equipped with the MBDA-built Meteor Beyond Visual Range missiles, whose no-escape zone is touted to be three times greater than that of current medium-range air-to-air missiles. It has a range of 150 km. The French aircraft will also be equipped with the MBDA’s Storm Shadow/SCALP missile, which can hit targets at a range of 560 km.

The air show was also witness to the Defence Research and Development Organisation (DRDO) delivering the country’s first indigenous airborne early warning and control system (AEW&C) to the IAF in initial operational clearance configuration, bringing it a step closer to induction. An Embraer-145 plane mounted with AEW&C systems took part in the Republic Day parade for the first time last month. India inked a $208-million deal for three Brazil-built Embraer-145 planes in 2008 as part of a DRDO programme to scale up the IAF’s AEW&C capabilities.

The five-day event saw firms from Russia, Europe, Israel and the United States – among others – hard selling their latest armament technologies to India in the hope of partnering with indigenous companies for setting up manufacturing bases that would cater to the military’s future requirements.

(Karnataka Chief Minister Siddaramaiah could not make it to the inaugural of Aero India as he had to reply to the Governor’s address to the joint session of the State legislature. The State government was instead represented by Minister for Large and Medium Scale Industries R.V. Deshpande).

Aero India has already carved a niche for itself globally as a premier aerospace exhibition, with tenth successful editions organised since 1996.

Besides, 65 ministerial and other high-level delegates from several countries that attended the event, the exhibition at the show saw participation from 549 companies, out of which 270 were Indian and 279 foreign. A five-member Chinese delegation from the People’s Liberation Army Air Force attended the show for the first time! More than 750 Global and Indian companies have participated in this mega event in 2017, including scores of SMEs and MSMEs. The various overseas delegations were accommodated over a gross exhibition area of 108,250 sqm.

Memorable moments of the event captured by the author are placed in this Video:

Bhāratīya Vāyu Senā  –  स्वावलंबन के पथ पर अग्रसर …  

Source:

Aero India https://www.aeroindia.in

HAL: HAL Make In India

ET Report: Eight Tata companies-display–of-defence-Aerospace-expertise-at-aero-India

ET Report: Reliance Aerostructure-venture-with-rafale-manufacturer-dassault-aviation

HT Report: Foreign-firms-to-chase-make-in-india

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Demonetization and the Indian Economy (An Interview by Doordarshan with Sri S.Gurumurthy)

Sri Swaminathan Gurumurthy, well-known Chartered Accountant, Economics Thinker, Philosopher and political commentator, has been a long time crusader against black money. He spoke to Doordarshan TV channel (DD News) about the need for Demonetization and how it affects the Indian economy.

sg

Interview Excerpts:
1. Demonetization Is Long Overdue & Inevitable

* Demonetization is long overdue and is inevitable for longevity of economy and sustained growth. This is a huge investment by Government as well as the Economy, as a preparation to reach higher levels of economic growth.

* This move could not have been made more comfortable and there cannot be adequate preparation for Demonetization of this scale. Secrecy is necessary for such a massive operation or else everyone would have guessed as to why new notes are coming into market. Only a strong Prime Minister could have taken such bold decision.

* We must congratulate the people of the country for showing extra ordinary patience by standing in the long queues (with no slogans or protests). The counterfeit currency must go.

* Out of the total circulation of 16.6 lac crores currency, 14.5 lac crores currency (about 87 per cent of 500, 1000 notes) is with the public. How much of it finances genuine economy and how much of it finances illicit economy is not clear. Over and above that is the fake currency in circulation that is not counted in the overall figure of 16.6 lac Crores that directly affects security of India. For instance, 3 per cent of the total amount deposited in the banking system since the Demonetization began, was in Jammu Kashmir bank. The extremists had given a threat not to go and deposit the money – they have queued up to deposit the money! And there has been sudden drop in the unrest in Jammu Kashmir.

2. Reasons that led to excessive “Cash Economy”:

* “Wealth effect” and “Real Estate” have led to Cash economy

* As the banking habits pick up, the “Cash economy” should have gone down, but has increased. The growth of cash economy in proportion to the gross domestic product (GDP) – was less than 10 per percent until 2001, now it is almost 12 per cent of GDP. This has also been facilitated by the rise in the proportion of high denomination currency (as high as 87 per cent) and that has led to illicit money.

* Studies show that 50% of Indian economy is Cash-economy. Cash-economy does not mean it is illicit economy. It is actually genuine Cash-economy. 90% of the employment is attributed to economy driven by largely cash or ‘unorganized‘ sector which is largely funded by cash. It is very complex situation. This has resulted in huge cash hoardings and transactions between cash and gold, transaction between property and gold, which has resulted in unusual amount of hoarding of gold, investment in land and land prices beyond reach of the common man.

* This has led to distortions in the economy, especially in Real Estate, Gold prices, usurious lending to small and micro businesses. This is also partly a failure of the banking system. So, it had distorted the economy in the last 10-12 years, because of what is called the “Wealth effect”. The high rise of the stock market also contributed to all this. This situation had to be handled. Only a strong prime minister could have taken this decision.

* Cash economy has moved deep into Indian economy. Cash does not create illicit opportunity – Illicit opportunity creates Cash.

3. On Terror Funding

* Terror funding by normal currency is one and Terror funding by counterfeit currency is another. For example, Naxalite funding is through normal currency in the form of ‘hafta‘ collections. About Rs 50,000 to Rs 60,000 crores of the extremist funding is in the Naxal-affected area in the cash form, mostly in 500 and 1000 denominations. Naxal funding is designed for Cash economy and not for bank economy. Left extremism will receive a very, very serious setback because of Demonetization.

4. Positive Economic Consequences

* According to an estimate by State Bank of India, out of Rs 12 lac crores in the cash economy, Rs 3 lac crores may never come back into the system (owing to large scale bribes, kickbacks) and will never reach the banking coffers at all. So, there will be the monetary surplus in the Reserve Bank of India (RBI).

* Out of the Rs 12 lac crores that comes in, the government should get substantial tax revenue of about Rs 2 lac crores. This should have far-reaching consequences on the Indian growth story.

* Government should get an estimate of 5 lac Crores as revenue surplus. When it comes into the banking system, this 5 lac Crores may become 20 lac Crores because of the “fractional reserves basis”, this Rs 5 lac crores can become Rs 20 lac crores. (Reserve + Investment of 25 per cent; the rest 75 per cent given as loans that goes back into the system, say a year from now). Thus banking system transforms into multiple of 3 or 4.

Illustrative Example: Let us assume Rs 100 is deposited in a bank. About one quarter of the amount will be invested in government bonds and reserves. The remaining 75 per cent will be available for lending. This 75 per cent gets into the banking system. My estimate is that at a minimum, the banking system multiplies the money in the system by three or four times. This money creation by banks will increase prosperity. The black or the cash economy therefore is inefficient in using money this way.

* Reduction in Interest rates: There will be genuine rise in Demand (due to increased consumer spending) leading to genuine rise in GDP numbers. There will be all round reduction in interest rates for business and moderation of interest rates (necessary for our growth in the economy). The lower interest rate is advantage to SME (Small, Medium Enterprises), who may not have sources from abroad unlike big industries or MNCs (who have access to foreign funds at a very lower interest rates / international rates). The reduction in interest rates will be very good for our economy.

* Positive impact on Fiscal situation: Government’s Tax collections may increase, which leads to strengthening of Fiscal situation (due to Rs. 2.5 lac “soft landing rule” – a boon for middle class having savings in the name of family members; had it not been there, they would have had to pay tax on their savings for last 10 years).

Land prices expected to moderate: Because of the withdrawal of Cash from the Real-Estate economy, the land prices are expected to moderate and can see a drop of around 30-40 per cent in the land prices, particularly in urban areas. This will increase the affordability of housing; most people are not able to afford houses because of high land prices. Housing is important economic activity that will pick up.
* Construction prices are dependent on commodities; land prices are dependent on the amount of money that chases land (as land supply is limited). Commodities have Supply-Demand adjustments.

5. The Challenges Ahead:

* Gold & Cash exchangeability is very important of promoting both. Now Cash being cut, Gold-economy will receive a serious setback. Government need to go for some Gold Reforms. Government should have persuasive policy towards Gold spend and not the way it happens in other parts of the world (of fighting against Gold consumption).

* Generation of “illicit cash” will come down rapidly and it will take long time to generate Cash of this kind again, added to Government’s special efforts to curb such cash. Now, such economy has to be replaced with proportionate genuine cash. As per Economic Census 2014 (58 million “non-farming enterprises” have capital of 12 lac Crore which provide employment to 128 million people, was intended to be financed by MUDRA scheme, “Micro Units Development and Refinance Agency Bank under “Pradhan Mantri Mudra Bank Loan Scheme”).

* The Government has to take special measures to fund Cash-led sectors (Agriculture, SMEs and small traders. MUDRA Law should be passed immediately and this sector must be funded through non-banking institutions and private financiers. They should be registered through banking system and their receivables and advances must be refinanced by the banking system. This Dr.Manmohan Singh did in 1993 when commercial vehicles sector was being funded by the banking and non-banking system for the new vehicles. Non-banking system was financing only the second hand or third hand vehicles. So, Manmohan Singh said, some Rs.300 crores must be given for non-banking finance companies so that they can finance even second and third hand vehicles that saw a huge growth in the commercial vehicles sector. The same move can be adopted for all businesses which are being funded by non-banking financial companies and private financiers and the local bank’s branches can register the local non-banking finance companies and the local financiers and advance money’s is their receivables this is the Indian way of helicopter dropping money, which is very necessary in the next one month. This will have a huge impact on providing liquidity, which otherwise banking sector cannot provide directly.

* After calming and correcting the Demand side, the challenge is, how to infuse liquidity on the Production sector (Supply side) : by refinancing/ by putting money into the Production sector through non-banking financial institutions and asking Public Sector, Government and BSE 500 companies to pay salaries in cash (atleast 30 per cent in cash).

* More measures such as “Jan Dhan Yojana” have to be used for increasing greater awareness, especially in rural India.

* Cashless economy is a dream; Minimum Cash economy is practical.

Demonetization as the foundation, Government has to address “jobless growth” for a better Job creation and rapid growth for next 10 years.

6. On Election Funding:

* Consensus required by all the political parties on Election funding; this cannot be done merely by ruling party. Political funding has to become transparent through “State funding of elections” has to be pursed vigorously. The private funding of elections has to stop. There has to be an “Election Tax” at the State level, Central level and Municipal level. Classification of National and Regional parties has to change depending on the capacity of the parties. Center and State elections have to align.

Watch the full interview below: