Rural Internet Penetration

Rural India: Internet Penetration

"84% of rural India are unaware of Internet"

Although, Urban India has adopted Internet in large numbers (especially younger generation), Internet penetration in Rural India is close to zilch. Even though Government is making huge efforts to increase the penetration, it seems to be failing miserably.

According to the survey conducted jointly by IAMAI and IMRB, about 84 percent of people in rural India are not aware of Internet. The organizations believe that this lack of awareness is the primary reason that has prevented internet take-up in rural India.

The research further found that 38 percent of rural inhabitants feel no need for internet access. Further reasons for not using the internet include lack of an internet access point (31%), unfamiliar with computers (31%), no computer available (28%), need for guidance (28%), no electricity (22%), and not being able to afford internet (10%).

At present, common service centers and cyber cafés serve as the primary mode of accessing internet, with more than 70 percent of the rural population accessing the internet this way.

Union Budget 2011-12

Highlights of Union Budget 2011-2012

The Union Budget for 2011-12 has been announced by the Union Finance Minister, Mr Pranab Mukherjee, in Parliament on February 28, 2011.

OVERVIEW OF THE ECONOMY

• Gross Domestic Product (GDP) estimated to have grown at 8.6 per cent in 2010-11 in real terms. Economy has shown remarkable resilience
• Indian economy expected to grow at 9 per cent with an outside band of +/- 0.25 per cent in 2011-12
• Exports have grown by 29.4 per cent, while imports have recorded a growth of 17.6 per cent during April to January 2010-11 over the corresponding period last year

SUSTAINING GROWTH

• Fiscal consolidation targets at Centre and States have shown positive effect on macroeconomic management of the economy
• Direct Taxes Code (DTC) to be finalised for enactment during 2011-12. DTC proposed to be effective from April 1, 2012
• Areas of divergence with States on proposed Goods and Services Tax (GST) have been narrowed. As a step towards roll out of GST, Constitution Amendment Bill proposed to be introduced in this session of Parliament

INVESTMENT ENVIRONMENT

• Discussions underway to further liberalise the FDI policy
• SEBI registered mutual funds permitted to accept subscription from foreign investors who meet KYC requirements for equity schemes
• Rs 6,000 crore (US$ 1.30 billion) to be provided during 2011-12 to enable public sector banks to maintain a minimum of Tier I CRAR of 8 per cent
• Rs 500 crore (US$ 108.5 million) to be provided to enable Regional Rural Banks to maintain a CRAR of at least 9 per cent as on March 31, 2012
• “India Microfinance Equity Fund” of Rs 100 crore (US$ 21.7 million) to be created with SIDBI.

AGRICULTURE

• Rs. 300 crore (US$ 65.1 million) expenditure to promote 60,000 pulses villages in rain fed areas for increasing crop productivity and strengthening market linkages
• Proposal to spend Rs. 300 crore (US$ 65.1 million) to promote oil palm plantation in 60,000 hectares and Rs. 300 crore (US$ 65.1 million) for the initiative on vegetable cluster
• Rs 400 crore (US$ 86.8 million) is proposed to be spent to improve rice based cropping system in the Eastern Region.

SOCIAL SECTOR

• The allocation for social sector has been increased by 17 per cent to Rs. 1,60,887 crore (US$ 34.9 billion) which amounts to 36.4 per cent of the total plan allocation.
• Remuneration for Anganwadi workers have been increased to Rs. 3000 (US$ 65.1) per month from Rs. 1500 (US$ 32.6) per month while the Anganwadi helpers will get Rs. 1500 (US$ 32.6) per month. This will be effective from 1st April 2011 benefiting about 22 lakh Anganwadi workers and helpers.

EDUCATION

• The allocation on education has been increased by 24 per cent to Rs 52,057 crore (US$ 11.3 billion). Sarva Shiksha Abhiyan gets Rs 21,000 crore (US$ 4.6 billion) which is 40 per cent higher than the previous year’s allocation of Rs. 15,000 crore (US$ 3.3 billion)
• The Finance Minister also proposed to introduce a scholarship scheme for needy students belonging to the Scheduled Castes and Scheduled Tribes studying in classes IX and X. It would benefit about 40 lakh students

HEALTH

• Plan allocation for Health has also been increased by 20 per cent to Rs 26,760 crores (US$ 5.8 billion). The Rashtriya Swasthaya Bima Yojana will be extended to the unorganized sector workers in hazardous mining and associated industries

HOUSING SECTOR

• Existing scheme of interest subvention of 1 per cent on housing loan further liberalized
• Existing housing loan limit enhanced to Rs 25 lakh (US$ 54,271.1) for dwelling units under priority sector lending
• Provision under Rural Housing Fund enhanced to Rs 3,000 crore (US$ 651.3 million)
• To enhance credit worthiness of economically weaker sections and LIG households, a Mortgage Risk Guarantee Fund to be created under Rajiv Awas Yojana
• Central Electronic Registry to prevent frauds involving multiple lending on the same immovable property to become operational by March 31, 2011

INFRASTRUCTURE AND INDUSTRY

• Allocation of Rs 2,14,000 crore (US$ 46.5 billion) for infrastructure in 2011-12. This is an increase of 23.3 per cent over 2010-11. This also amounts to 48.5 per cent of total plan allocation
• Government to come up with a comprehensive policy for further developing PPP projects
• IIFCL to achieve cummulative disbursement target of Rs 20,000 crore (US$ 4.3 billion) by March 31, 2011 and Rs 25,000 crore (US$ 5.4 billion) by March 31, 2012
• Under take out financing scheme, seven projects sanctioned with debt of Rs 1,500 crore (US$ 325.6 million). Another Rs 5,000 crore (US$ 1.1 billion) will be sanctioned during 2011-12
• To boost infrastructure development, tax free bonds of Rs 30,000 crore (US$ 6.5 billion) proposed to be issued by Government undertakings during 2011-12

NATIONAL MANUFACTURING POLICY

• hare of manufacturing in GDP expected to grow from about 16 per cent to 25 per cent over a period of 10 years. Government will come out with a manufacturing policy
• Two Committees set up for greater transparency and accountability in procurement policy; and for allocation, pricing and utilisation of natural resources
• Issues relating to reconciliation of environmental concern from various departmental activities including those related to infrastructure and mining to be considered by a Group of Ministers
• National Mission for hybrid and electric vehicle to be launched
• Financial Assistance to be made available for metro projects in Delhi, Mumbai, Bengaluru, Kolkata and Chennai
• Capital investment in fertiliser production proposed to be included as an infrastructure sub-sector.

INNOVATIONS

• National Innovation Council set up to prepare road map for innovations in India
• Special grant provided to various universities and academic institutions to recognise excellence

SKILL DEVELOPMENT

• Additional Rs 500 crore (US$ 108.5 million) proposed to be provided for National Skill Development Fund during the next year
• An international award with prize money of Rs 1 crore (US$ 217,085) being instituted for promoting values of universal brotherhood as part of National celebrations of 150th Birth Anniversary of Gurudev Rabindranath Tagore

BUDGET ESTIMATES

• Gross Tax receipts are estimated at Rs 9,32,440 crore (US$ 202.4 billion)
• Non-tax revenue receipts estimated at Rs 1,25,435 crore (US$ 27.2 billion)
• Total expenditure proposed at Rs 12,57,729 crore (US$ 273 billion)
• Increase of 18.3 per cent in total Plan allocation
• Increase of 10.9 per cent in the Non-plan expenditure.

India in top 10

India in top 10 manufacturers list

India was amongst the top 10 manufacturers in 2010 and together with Brazil and China accounted for a third of the world manufacturing output, up from one-fifth 10 years ago, said a United Nations report .

"India is listed as one of the top 10 manufacturers of the world in 2010," the international yearbook of industrial statistics 2011, published by the United Nations Industrial Development Organisation (UNIDO) said.

India along with other leading developing economies such as Brazil and China showed strong performance in economic growth in 2010 and the manufacturing value added of all these countries grew by over 10% last year.

The share of these three countries in world manufacturing output reached 32% compared to 20% 10 years ago.

World manufacturing value added, or MVA, rose 5.3% in 2010, as per the agency's estimate.

The MVA of industrialised countries was up 3.4% in 2010.

India topped developing countries (excluding China) in production of textiles, chemical products, basic metals, general machinery and equipment, and electrical machinery.

It overtook Brazil in the production of motor vehicles and now ranks second among developing countries after Mexico.

However, its Asian competitors Thailand, Malaysia and the Philippines are ahead in the production of electronic goods such as computers and office equipment, radio, television and other communication equipment.