India has caught the imagination of the world as the fastest growing economy in ademocratic framework. There is a new found respect for India on the world stage and anexpressive recognition in the comity of nations impressed with the aura of our PrimeMinister Shri Narendra Modi. The economy has gained momentum to reshape India's future.Our country is acknowledged as a dominant global player with its rich natural resourcesentrepreneurial mindset and youth power as the core strengths. India ranks world's 7thlargest economy based on IMF report of 2018. The Forex Reserves of the country are at anall-time high at over US$ 400 billion and the GDP growth at around 7% is faster than inany G-20 country. We aim at a US$ 10 trillion economy by 2030 to emerge as the 3rd largestin the World next only to US and China.
The present government is on a mission to transform India touching the lives of thelowest sections of society. Some of the groundbreaking reforms include Aadhar' cardcreating an identity for every single citizen of the country which will help thegovernment to deliver the fruits of reforms direct to the intended beneficiaries. Thecountry has been inspired by the Prime Minister's new Digital India vision. TheGovernment's scheme to provide bank accounts to all citizens and have them linked tomobile phones and biometric national IDs has turbocharged digital payments. It is helpingto push more of the Indian economy out of the shadows. The year also witnessed a majorstructural reform of implementation of The Goods and Services Tax (GST) on 1st July 2017.It ushered one nation one tax' regime. GST is expected to boost the entire taxstructure of the country and spur economic growth and investments in the long run. It mustbe added however that the GST which was defined as a Good and Simple Tax' stillsuffers from quite a bit of complexity.
Infrastructure Development Focus on Rail Sector
The Government has accorded high priority to buttress the industrial and socialinfrastructure in the country which has suffered from gross under-investment oversuccessive 5-year Plans. It is evident from the Asian Development Bank's reportMeeting Asia's infrastructure needs' which placed India's investment ininfrastructure at a meagre 5.5% of GDP in 2015. According to the
World Economic Forum's Global Competitiveness Report for 2017-18' India ranked66th out of 137 countries in its infrastructure rating. In contrast the emergingeconomies in South East Asia spent as much as 7 10% of their GDP on infrastructureduring their growing years. It is acknowledged that we will have to substantially scale upour allocation on infrastructure to fulfil our aspiration to be the Growth
Engine of the world. The Make in India' movement launched by the Prime Ministerwould require India to grow into a major manufacturing hub. It would call for robustexpansion of the manufacturing sector as a prime mover of economic growth. The issuesbearing on the growth of this sector need to be holistically addressed to create aconducive environment for world class hi-tech facilities.
Rail Network Transformation
The Government of India has planned unprecedented thrust on improving the railinfrastructure entailing massive outlays on network upgradation and expansion - involvingtrack renewals & doubling electrification and signalling with advanced TrainProtection and
Warning System (TPWS). Significantly the electrification in FY 17-18 has increased 7times.
The Indian Railways is planning to treble its freight traffic to 3 billion tonnes by2030 the back of the Eastern and Western Dedicated Freight Corridors which are slated tobe commissioned by April 2020. This will throw up a huge demand for wagons andlocomotives generating good business for your company as the leading manufacturer in thefield.
Texmaco as the total rail solution provider with its recent acquisition of EPCcompanies - Kalindee specialising in track laying & signalling and Bright Power inoverhead electrification a soul to bring purpose and (OHE) has built a substantial orderbook thru' successful participation in key railway projects across the country. Thecompany has also secured some major projects in neighbouring countries and expects to tapexport opportunities in other countries in South East Asia Africa and West Asia in thenear future.
Challenges in Banking Sector
Lately the Banks have come under spotlight as a key sector crying out for reform.Banks were nationalised in 1969. Almost 5 decades later there is a jolt to the entirebanking system. State-owned lenders which account for around two-third of the Sector havea bloated portfolio of stressed loans . Going by reports some of these banks embarked onan ill-advised lending spree backing lots of infrastructure projects that got snarled inbureaucracy. Bad loans have piled up and there is disruption of the normal flow of creditto the trade and industry demanding swift action including recapitalising the Banks.
International Trade - Borderless World
We are at the crossroads of disquieting global trade conflicts. There is a surge ofpoliticised national identity in the garb of protectionism. The leading powers areovertaken by a skewed view of international trade settlement with all the portents of uglyconsequences. The global economy is mired in structural malaise impacted by the spectre ofthe trade war' and rising oil prices. It is hoped that mature leadership of G-7countries would save the world from plunging into a catastrophic situation.
Building a Knowledge & on Happy Society
Ourcountryhasnodoubtahugedemographic dividend. But we cannot be frittering it awayby smugly reproducing illiteracy and poverty perpetuating the historic legacy of unequalsociety. Our Constitution mandates that the people have a fundamental right to a fairopportunity of starting out in life given equity and dignity. In our social ethos we haveto meaning in find the lives of the people.
The vital aspect of Population Management is proper education failing which thegreatest national asset will turn into an unlimited liability. There is a dire need tocreate millions of jobs for the skilled and not-so-skilled personnel. For sustainedeconomic growth the key challenge is transformation of our society into a knowledgesociety'. India has about 800 Universities but these have to distinguish as centres ofknowledge to reach global fame and preferred destination for R&D excellence.
Corporates and well-to-do individuals have all to volunteer and share theresponsibility to meet the aspirations of the teaming millions to be partners in thegrowth of the country. Accordingly our governance model has to target Gross NationalHappiness (GNH) of the people beside GDP/GNP. India ranked 133rd among 156 countries inWorld Happiness Index 2018 released by a UN Agency recently.
A Strong India
We have abiding faith in the native genius of our people and their will anddetermination to rise as an United India'. We believe in people empowerment and willcontinue to strive relentlessly to attain our full potential given strong nationalleadership.