3J U N E - J U L Y 2 0 1 2 ~ Economy&Industry2 Economy&Industry ~ J U N E - J U L Y 2 0 1 2

8cover story

Diesel-fuelleddistortions The demand for subsidised dieselis soaring, and this fuel nowaccounts for 50% of India'sconsumption of petro-products

q&a/ l k gupta, md & ceo,essar oil

‘Increase in diesel price will leadto efficiency of use’

comment/ kirit parikh,chairman, irade

Why deregulating diesel pricesis unavoidable

4policy watch

PM bites the bullet oninfrastructure projectsSets ambitious targets for FY13to move towards 9% growth

Government widens theambit of service taxSecond homes, AC rail traveland private tutors added

Export sops extended,SEZ package coming Foreign Trade Policy expandsthe EPCG scheme

6insider’s view

Notes from Pakistan Indo-Pak trade could reach $10billion by 2015. Trade is nowheavily in favour of India, whichmust import more from PakistanBy Chandrajit Banerjee,Director General, CII

14column

Waiting for diesel pricederegulationFuel subsidies may do moreharm than good and distort theenergy economics of the country By Sunil Kant Munjal,Past President, CII, andChairman, CII NationalCommittee on EconomicPolicy, and Joint MD, HeroMotoCorp Ltd & Chairman,Hero Corporate Service Ltd

16column

Restoring India’smacroeconomicsoundness, now or neverSlow progress in reviving theinvestment climate has nowbegun to take a toll on India'snear-term growth prospectsBy Shubhada M Rao,President and ChiefEconomist, YES Bank

18sme focus

Finally, a source of risk capitalBut the real push will come onlyif the intermediary networkbecomes active

20competitiveness

Indian innovation: earlydays yetVery few companies have comeup in India solely on the basisof innovation

22q&a/ vikram kirloskar,chairman, GLobalinnovation andtechnology alliance

‘We need collaborationat every level’The government and industrywill now partner universities todo research and developtechnologies in response tomarket demand

26economic indicators

A four-page data package

30q&a/ marc effron, ceo,the talent strategygroup

“The challenge in mostcompanies isthat theyadd ‘wellintentioned’complexityto their HRprocesses”

34second lead

How to make best use ofthe food mountainBy July the southwestmonsoon will hit northwestand central India, where thebulk of the grain stock isstored in the open

Comment/ Alok Sinha,Former Chairman andMD, FCI

Managing the problemof plentyThere are only two options —export surplus grain or ensurefood security for the poor

q&a/ ashok gulati,chairman, cacp

‘We need to bring backthe private sector in thegrain trade’India's grain stocks areprojected to reach 80 milliontonnes by end-June; storagespace is available for only 66million tonnes

38international

Samsung overtakesNokiaNokia entered the smartphonesegment as early as 1996 withCommunicator, but failed tocapitalise on its first-moveradvantage, and now trails lateentrant Samsung

40regional view

A place in the sunGujarat has emerged as thelargest solar power producingstate in India

43business quiz/ cartoon

44indian cinema

Hundred, not outMultiplexes, online videos,changing methods ofdistribution and rising actorremuneration have redefinedthe Indian film industry

46book review

Breakout NationsRuchir Sharma’s new book saysthe era of easy growth is over,and seeks to identify the tigereconomies of the future

48verbatim

Quotable quotes from the pagesof Businesss Standard

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SPEAKINGVOLUMES

We are preparing technicalanalysis for differentpossible scenarios thatcould impact India’s trade,stock markets andfinancial institutions

KAUSHIK BASU,CHIEF ECONOMIC ADVISOR

of international traffic toand from India is flown byIndian airlines Indian carriers have beenunable to tap inter-continentalpassengers

%30

share of dieselvehicles in2012The segmentgrew 35 per centduring the period to occupythat share

47 %%growth inresidentialreal estateprices inIndia in FY12During the sameperiod, globalhousing pricesgrew 0.9 per cent

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