Category: COMMERCE & MANAGEMENT BLOG

In June with announcements made in budget 205-16, Govt. is making necessary planning to fund and amount of Rs. 20, 0000 crores in National Investment & Infrastructure Fund (NIIF). Govt. is planning to invest some of the dividend income from Public Sector Undertakings in this fund. The estimated income from dividends during the year 2015-16 is budgeted to Rs. 36174 crores. For the time being, it is planned to invest Rs.15000 crores out dividends likely to be received from two rich companies like ONGC & Coal India Ltd. Remaining Rs.5000 crores is likely to be given by central government in the NIIF.
NIIF funds will be used to raise debts and inturn to be invested as equity in infrastructure finance companies such as Indian Railways Finance Corporation and National Housing Bank.
Government has recently announced investment in 100 planned smart cities and new urban renewal scheme for which funds would come from centre, states and public sector undertakings. Few days back, cabinet has approved a sum of Rs. 1 Lakh crore in next five years for 100 smart cities.
If funds available at NIIF are properly used/invested and amount allocated for 100 smart cities is properly utilized in a planned manner, face of our country in the world could be changed to a great extent.

According to the World Bank’s projections, India would be the fastest growing major economies of the world in the year 2015. It was revealed in Global Economic Prospect report on 11.06.2014 by Chief Economist and senior vice President World Bank. During the quarter January-March 2015, Indian economy could grow at 7.5% against China’s 7%. The World Bank has estimated that India’s growth rate in calendar year 2015 would grow at 7.4% against China’s 7.1%. The Govt’s economic survey had projected India’s growth rate between 8.1% to 8.5% in 2015-16. However, World Bank has projected India’s growth rate at 7.9% in 2016-17 against China’s 7.4%. However in 2015 and in subsequent years, India’s growth rate would be overtaking that of China.

According to Global Financial Services Major i.e. city group has estimated still a higher growth of India in 2015-16. As per its estimates, India GDP growth rate is likely to revived to 7.9% in 2015-16 and 8.1% for 2016-17. This is possible due to structural reforms and higher investments in Indian economy.

On the whole, World Bank expects developing economics to grow 4.4% in the current year and likely to grow at 5.2% in 2016 and 5.4% in 207. Though World Bank’s estimates are slightly low than govt., it is a matter of great satisfaction for India that our growth rate would soon overtake China.