THE WAR IN GAZA

                                                             The War in GAZA

HAMAS has ruled Gaza since 2007 and there is not much to admire. The Islamist party is harsh, narrow-minded and intolerant of dissent. Its charter is anti-Semitic. It fires rockets into Israeli territory and builds tunnels under it to kill or kidnap Israeli soldiers. It knows that the Israeli attacks it provokes will kill hundreds of Palestinian civilians, which will garner sympathy around the world. It is also weaker than it was, for it is now losing the military battle against Israel.

By contrast Israel is the most successful state in the Middle East. It is the region’s only true democracy—a hub of invention, enterprise and creativity. Israel has overwhelming firepower in the fight in Gaza. Most of its people are united behind their soldiers and have the firm backing of America’s Congress. Yet, though Israel is winning the battle, it is struggling in the war for world opinion. That matters in part because Israel is a cosmopolitan trading country that looks to its American ally for security, but also because Israel needs to hear some of what its critics are saying.

Anti-Semitism: a very light sleeper

A generation ago, Israel had the best of the argument with Yasser Arafat’s Palestine Liberation Organisation, in many ways a less vile outfit than Hamas. Young Europeans spent their gap years on kibbutzim. The Western world cheered when Israeli commandos rescued Jewish hostages from the terminal building in Uganda’s Entebbe airport in 1976.

But as the occupation of Palestinian territory has dragged on, sympathy has seeped away. In a poll published in June, before the destruction of Gaza, the citizens of 23 countries put the balance of those who think Israel is a good or bad influence on the world at minus 26%, ranking it below Russia and above only North Korea, Pakistan and Iran. A growing number of Europeans call Israel racist (with the sinister flourish that Israelis, of all people, should know better). And even in America, where a solid majority backs Israel, the share that thinks its actions against the Palestinians are unjustified has risen since 2002 by five percentage points, to 39%. Among 18- to 29-year-olds, Israel is backed by just a quarter.

Many Israelis, and their most fervent supporters in Congress, see today’s hostility as the culmination of a long process of demonisation, double standards and delegitimisation. They have a point. Holding a country to high standards, as Israel’s critics do, can be a compliment—yet against Israel, morality is often used as a cudgel. The common slur that Israel is an apartheid state ignores the fact that Israel’s minorities, such as the Druze, Arabs and Bahais, are protected by the country’s independent courts—including the highest, which has a sitting Arab Israeli judge. The “BDS” campaign to impose boycotts, encourage divestment and introduce sanctions calls not just for an end to the occupation of the West Bank and for equal rights, but also for the right of return of all Palestinian refugees—in other words, for the erosion of Israel as a Jewish homeland. Protests in France against the fighting in Gaza led to attacks on synagogues and Jewish-owned businesses.

No wonder that many Israelis feel that the world is against them, and believe that criticism of Israel is often a mask for antipathy towards Jews. But they would be wrong to ignore it entirely. That is partly because public opinion matters. For a trading nation built on the idea of liberty, delegitimisation is, in the words of an Israeli think-tank, “a strategic threat”. But it is also because some of the foreign criticism is right.

Please, hear them

That begins with the scale of the violence in Gaza. Some 1,400 Palestinians have died in the past few weeks, compared with 56 Israeli soldiers and four civilians. Even allowing for Hamas’s brutality, no democracy should be happy with a military strategy that results in the death of so many children (let alone the crass claim from Israel’s ambassador to Washington that its soldiers deserve a Nobel peace prize). The destruction is driving support towards Hamas and away from the moderate Palestinians who are Israel’s best chance for peace.

But more than that, Israel needs to hear what its critics say about the need for a two-state solution, which remains the only one that will work. Time is not on Israel’s side. Palestinians may already outnumber Israelis in the lands they share. Without two states, Israelis and Palestinians will be left with one that contains them both. The risk for Israel is of either a permanent, non-democratic occupation that disenfranchises Palestinians, or a democracy in which Jews are in a minority. Neither would be the Jewish homeland with equal rights for all that Israel’s founding fathers intended.

America’s secretary of state, John Kerry, has made a Herculean effort to forge peace between the Israelis and the Palestinians along the lines of two states for two peoples. When the talks broke down, a few months ago, he blamed Israel’s settler lobby. That outraged right-wing Israelis. And now the left has joined in the derision because he proposed a ceasefire in Gaza that Israelis thought favoured Hamas. But Mr Kerry is right. If Israel continues to build settlements in the occupied territory, it will gobble up land that would belong to an independent Palestinian state, making peace harder to reach.

The same goes for what appears to be Israel’s strategy towards both Gaza and the West Bank. Having created a huge open-air prison in Gaza, Israel remains committed to a blockade that contains Hamas—but also ensures that ever more Palestinians grow up angry. On the West Bank, Israel’s prime minister, Binyamin Netanyahu, has gone backwards: he has said that Israel cannot relinquish security control of the West Bank for fear of Islamist attack. That implies an intention to consolidate the occupation, thus withdrawing all hope from Palestinian moderates. The West Bank would be likely to explode too, then, while the demographic clock ticked on.

For all the blood and misery in Gaza, Mr Netanyahu will soon have a chance to show he has heard the critics. Having won his battle, he could return to the negotiating table, this time with a genuine offer of peace. Every true friend of Israel should press him to do so.

Global employment

Labour markets have been affected by the slower-than- projected economic recovery.Employment growth slowed down in 2013 across most regions, leading to a further upward
revision of unemployment rates . Global employment grew by a mere 1.4 per cent in 2013 – broadly unchanged from 2012, but lower than in any year of the pre-crisis decade. Employment growth deteriorated in every geographic region except South Asia and North Africa. Indeed, it was the strong acceleration of employment growth in South Asia that helped keep global employment growth stable in 2013 compared with 2012. The largest slowdowns occurred in Central and the World Bank and United Nations (UN) at different points in time.

South-Eastern Europe and CIS, Latin America and the Caribbean and South-East Asia and the Pacific. As a consequence, the crisis-related global jobs gap, measuring the number of jobs lost in comparison to pre-crisis trends, widened further to 62 million workers in 2013 (figure 3). The jobs gap includes not only the increase in unemployment, but also those people who have remained outside or dropped out of the labour force after having been discouraged by long spells of unemployment and/or perceived low prospects of finding new job opportunities.
At the global level, the ILO estimates that a total of 23 million people are currently in this situation, so-called “discouraged workers”. As unemployment continues to persist, by 2018 the global gap is projected to rise to 81 million; this includes some 30 million discouraged workers who might never come back to the labour market. The global unemployment rate remained at 6.0 per cent.

World Social Protection Report 2014-15

World Social Protection Report 2014/15
 

Social protection policies play a critical role in realizing the human right to social security for all, reducing poverty and inequality, and supporting inclusive growth – by boosting human capital and productivity, supporting domestic demand and facilitating structural
transformation of national economies. This ILO flagship report: (i) provides a global overview of the organization of social protection systems, their coverage and benefits, as well as public expenditures on social security; (ii) following a life-cycle approach, presents
social protection for children, for women and men of working age, and for older persons; (iii) analyses trends and recent policies, e.g. negative impacts of fiscal consolidation and adjustment measures; and (iv) calls for the expansion of social protection in pursuit of crisis recovery, inclusive development and social justice.
While the need for social protection is widely recognized,the fundamental human right to social security remains unfulfilled for the large majority of the world’s population. Only 27 per cent of the global population enjoy access to comprehensive social security systems, whereas 73 per cent are covered partially or not at all.
The lack of access to social protection constitutes a major obstacle to economic and social development. Inadequate or absent social protection coverage is associated with high and persistent levels of poverty and economic insecurity, growing levels of inequality, insufficient investments in human capital and human capabilities, and weak aggregate demand in a time of recession and slow growth.
The strong positive impacts of social protection have brought social protection to the forefront of the development agenda. Social protection is a key element of national strategies to promote human development, political stability and inclusive growth. The ILO Social Protection Floors Recommendation, 2012 (No. 202),
reflects a consensus on the extension of social security reached among governments and employers’ and workers’ organizations from 185 countries at all levels of development. Further, the roll-out of social protection floors is endorsed by the G20 and the United Nations. However, while there has been a global trend towards
the extension of social protection, particularly in middle-income countries, the effectiveness of social security systems in a number of countries is at risk as a result of fiscal consolidation and adjustment measures.These trends are presented in the different chapters of the report, following a life-cycle approach.
 Social protection for childrenand families: 
A right unfulfilled Social protection policies are an essential element of realizing children’s rights, ensuring their well-being, breaking the vicious cycle of poverty and vulnerability,
and helping all children realize their full potential. Despite a large expansion of schemes, existing social protection policies do not sufficiently address the income security needs of children and families, particularly in low- and middle-income countries with large child populations. About 18,000 children die every day, mainly from preventable causes: many of these deaths could be
averted through adequate social protection.


Social protection also has a key role in preventing child labour by reducing economic vulnerability of families, enabling children to go to school and protecting them from exploitation.More efforts are needed to step up measures to ensureincome security for children and families. Many childrendo not receive the essential cash transfers that could make a real difference, in terms of nutrition, health, education and care services, to their chances of realizing
their full potential. Specific child and family benefit programmes rooted in legislation exist in 108 countries, yet often cover only small groups of the population. In 75 countries, no such programmes are available at all. On average, governments allocate 0.4 per cent of GDP to child and family benefits, ranging from 2.2 per cent in Western Europe to 0.2 per cent in Africa, and in Asia and the Pacific. Underinvestment in children jeopardizes their rights and their future, as well as the economic and social development prospects of the countries in which they live. Fiscal consolidation and adjustment measures in higher-income economies threaten progress on income security for children and their families. Child poverty increased in 19 of the 28 countries of the European
Union between 2007 and 2012.
Social protection in working age:
The quest for income security Social protection plays a key role for women and men of working age by stabilizing their incomes in the event of unemployment, employment injury, disability, sickness
and maternity, and by ensuring that they have at least a basic level of income security. While the labour market serves as the primary source of income security during working life, social protection plays a major role in smoothing incomes and aggregate demand, thereby facilitating structural change within economies. Worldwide, 2.3 per cent of GDP is allocated to social protection expenditure for women and men in ensuring income security during working age; regionally, levels vary widely, ranging from 0.5 per cent in Africa to 5.9 per cent in Western Europe. Unemployment protection Where they exist, unemployment benefit schemes play a key role in providing income security to workers and their families in the event of temporary unemployment, contributing thereby to preventing poverty; supporting structural change in the economy; providing safeguards against informalization; and, in the event of a crisis,
stabilizing aggregate demand, helping the economy to recover more quickly.However, only 28 per cent of workers worldwide are potentially eligible for benefits (contributory or non-contributory) under existing legislation should they become unemployed. Within this overall figure, regional differences are considerable: 80 per cent of workers are so covered in Europe, 38 per cent in Latin America, 21 per cent in the Middle East, 17 per cent in the Asia and Pacific region, and 8 per cent in Africa. Only 12 per cent of unemployed workers worldwide actually receive unemployment benefits, and again regional differences are large, with effective coverage
ranging from 64 per cent of unemployed workers in Western Europe to just over 7 per cent in the Asia and Pacific region, 5 per cent in Latin America and the Caribbean, and less than 3 per cent in the Middle East and Africa. A number of emerging economies have introduced unemployment benefit schemes, such as Bahrain or Viet Nam, as a means to ensure income security for unemployed workers and facilitate their search for jobs matching their skills in the formal economy. India’s employment guarantee scheme (Mahatma Gandhi National Employment Guarantee Scheme) also provides a form of unemployment protection by guaranteeing 100
days of public employment to poor rural households.
Employment injury protection
In 2013, the world was shaken by the Rana Plaza tragedy in Bangladesh, and became aware that social protection in case of employment injury is essential to protect workers and their families from the financial consequences of accidents at work and to facilitate their rehabilitation. However, only 33.9 per cent of the
global labour force is covered by law for employment injury through mandatory social insurance. Even if voluntary social insurance coverage and employer liability provisions are included, only 39.4 per cent of the labour force is covered by law. In practice, actual access to employment injury protection is even lower, largely
owing to incomplete enforcement of the legislation in many countries. The low coverage of employment injury compensation
in many low- and middle-income countries points to an urgent need to enhance working conditions in respect of occupational safety and health, as well as to improve employment injury coverage for all workers, including those in the informal economy. As more countries move from employer liability as the basis for employment
injury protection to a mechanism based on social insurance, levels of protection for workers are likely to improve – but only if new laws are effectively enforced.
Disability benefits
Social protection plays a key role in meeting the specific needs of persons with disabilities with regard to income security, access to health care and social inclusion. Effective measures to support persons with disabilities in finding and retaining quality employment
are a key element of non-discriminatory and inclusive policies that help to realize their rights and aspirations as productive members of society. Complementing contributory schemes, non-contributory
disability benefits play a key role in protecting those persons with disabilities who have not (yet) earned entitlements to contributory schemes. Only 87 countries offer such non-contributory benefits anchored in national legislation, which would provide at least a minimum level of income security for those disabled from birth or before working age, and those who for any reason have not had the opportunity to contribute to social insurance for long enough to be eligible for benefits.
Maternity protection
Effective maternity protection ensures income security for pregnant women and mothers of newborn children and their families, and also effective access to quality maternal health care. It also promotes equality in employment and occupation.
Worldwide, less than 40 per cent of women in employment are covered by law under mandatory maternity cash benefit schemes; 48 per cent if voluntary coverage (mainly for women in self-employment) is included. Due to the ineffective enforcement and implementation of the law in some regions (Asia and the Pacific, Latin America and Africa in particular), effective coverage is even lower: only 28 per cent of women in employment worldwide are protected through maternity cash benefits which provide some
income security in during the final stages of pregnancy and after childbirth; the absence of income security forces many women to return to work prematurely. An increasing number of countries are using noncontributory maternity cash benefits as a means to improve income security and access to maternal and child health care for pregnant women and new mothers, particularly for women living in poverty. However, significant gaps remain. Ensuring effective access to quality maternal health care is of particular importance, especially in countries where the informal economy accounts for a large proportion of employment.
Old-age pensions: A state responsibility
The right to income security in old age, as grounded in human rights instruments and international labour standards, includes the right to an adequate pension. However, nearly half (48 per cent) of all people over pensionable age do not receive a pension. For many of
those who do receive a pension, pension levels are not adequate. As a result, the majority of the world’s older women and men have no income security, have no right to retire and have to continue working as long as they can – often badly paid and in precarious conditions.
Under existing laws and regulations, only 42 per cent of people of working age today can expect to receive social security pensions in the future, and effective coverage is even lower. This gap will have to be filled also by an expansion of non-contributory provisions.
In recent years, many middle- and low-income countries have made efforts to expand the coverage of contributory pension schemes and to establish non-contributory pensions to guarantee at least basic income security in old age to all.
At the same time, countries undertaking fiscal consolidation are reforming their pension systems to make cost savings, by means including raising the retirement age, reducing benefits and increasing contribution rates. These adjustments are reducing state responsibility for guaranteeing income security in old age and shifting large parts of the economic risks associated with pension
provision on to individuals, thereby undermining the adequacy of pension systems and reducing their ability to prevent poverty in old age. Future pensioners will receive lower pensions in at least 14 countries of Europe. It is important to note that a number of countries are reversing the earlier privatizations of pension systems,
implemented in the 1980s and 1990s. Argentina, Bolivia, Chile, Hungary and Poland either have renationalized or are renationalizing their pension systems to improve old-age income security.
Towards universal coverage in health
The urgency of striving for universal coverage in health is illustrated by the fact more than 90 per cent of the population living in low-income countries remains without any right to coverage in health. Globally, 39 per cent of the population is lacking such coverage. As a result, about 40 per cent of all global health expenditure is shouldered directly by the sick. However,even people who are legally covered experience limited health benefits, high out-of-pocket payments and a lack of the health workers needed to deliver services. In such circumstances, despite coverage, health care is frequently neither available nor affordable, and access to needed services can lead to poverty. The ILO estimates that there is a global shortfall of 10.3 million health workers required to ensure that all in need receive quality health services. This gap, and the often close-to-poverty wages of health workers, are blocking progress towards universal health coverage. Globally, 88 countries in several regions of the world have proved that it is possible to close the gaps in health coverage. Many of them began the process of reform at lower levels of national income and invested in times of economic crisis. Further, they have shown that countries can achieve high coverage rates and even universal
coverage using either tax- or contribution-funded systems and schemes or a mix of both. However, countries under fiscal consolidation have often initiated health reforms to make cost savings, by means such as rationalizing the costs of public health facilities, introducing patient co-payments and cutting wage bills for medical staff. These adjustment measures have sharpened inequities
in access to health care and increased exclusion by shifting the burden from the public purse to private households.
Investing in health protection, including paid sick leave, yields returns. However, public expenditure on health is at present too low to be sufficiently effective: the potential economic returns from increased productivity and employment cannot be realized while gaps in coverage persist. Closing these gaps would lead to the
highest rates of return in the world’s poorest countries. Greater joint efforts are necessary to work towards universal health coverage, and towards the associated goal of establishing social protection floors, as recently called for by the UN General Assembly.
Expanding social protection: Key to crisis recovery and inclusive development 
The global financial and economic crisis has forcefully
underlined the importance of social security as a human right, and as an economic and social necessity,as set out in the ILO Social Protection Floors Recommendation(2012), No. 202.
In the first phase of the crisis (2008–09), social protection played a strong role in the expansionary response. At least 48 high- and middle-income countries announced fiscal stimulus packages totalling US$2.4 trillion, of which approximately a quarter was
invested in counter-cyclical social protection measures. In the second phase of the crisis (2010 onwards), governments embarked on fiscal consolidation and premature contraction of expenditure, despite an urgent need of public support among vulnerable populations. In 2014, the scope of public expenditure adjustment is expected to intensify significantly: according to IMF projections, 122 countries will be contracting expenditures in terms of GDP, of which 82 are developing countries. Further, a fifth of countries are
undergoing excessive fiscal contraction, defined as cutting public expenditures below pre-crisis levels. Contrary to public perception, fiscal consolidation measures are not limited to Europe; many developing countries have adopted adjustment measures, including the elimination or reduction of food and fuel subsidies; cuts or caps on wages, including for health and social care workers; rationalizing and morenarrowly targeting social protection benefits; and reforms
of pension and health-care systems. Many governments are also considering revenue-side measures, for example increasing consumption taxes such as VAT on basic products that are consumed by poor households.
In developing countries, some of the proceeds of these adjustments, e.g. from the elimination of subsidies, have been used to design narrowly-targeted safety nets, as a compensatory mechanism to the poorest. However, given the large number of vulnerable low-income households in developing countries, more efforts are necessary to increase the fiscal space to meet the social protection needs of populations. Of particular significance are the divergent trends in richer and poorer countries: while many highincome
countries are contracting their social security systems, many developing countries are expanding them. High-income countries have reduced a range of social protection benefits and limited access to quality public services. Together with persistent unemployment, lower wages and higher taxes, these measures
have contributed to increases in poverty and social exclusion, now affecting 123 million people in the European Union, 24 per cent of the population, many of them children, women, older persons and persons with disabilities. Several European courts have found
cuts unconstitutional. The cost of adjustment has been passed on to populations, who have been coping with fewer jobs and lower income for more than five years. Depressed household income levels are leading to lower domestic consumption and lower demand, slowing down recovery. The achievements of the European social model, which dramatically reduced poverty
and promoted prosperity in the period following the Second World War, have been eroded by shortterm adjustment reforms. Many middle-income countries are boldly expanding their social protection systems, thereby contributing to their domestic demand-led growth strategies: this presents a powerful developmental lesson. China, for instance, has achieved nearly universal coverage of pensions and increased wages; Brazil accelerated the expansion of social protection coverage and minimum wages since 2009. Continued commitment is necessary to address persistent inequalities. Some lower-income countries have extended social protection mainly through temporary safety nets with very low benefit levels. However, in many of these countries
debates are under way on building social protection floors as part of comprehensive social protection systems.
The case for social protection is compelling in our times. Social protection realizes the human right to social security and is a key element of sound economic policy. Social protection powerfully contributes to reducing poverty, exclusion, and inequality – while enhancing political stability and social cohesion. Social protection also contributes to economic growth by supporting household income and thus domestic consumption; this is particularly important during this time of slow recovery and low global demand. Further, social protection enhances human capital and productivity,
so it has become a critical policy for transformative national
development. Social protection, specifically social protection floors, are essential for recovery, inclusive development and social justice, and must be part of the post-2015 development agenda.

Indian Defense Industry

Indian Defense Industry

The Indian defense industry is one of the fastest-growing global defense markets. India‟s defense capital expenditure, which refers to the part of the defense budget that is spent on the acquisition of all types of military hardware and technology, has grown at a CAGR of 12.25% over the review period. In 2010, India was allocated US$13.1 billion for defense capital expenditure in the budget. Defense expenditure is expected to record a CAGR of 13.08% during the forecast period, to reach an annual expenditure of US$67.8 billion by 2016. This is primarily due to the country‟s ageing military hardware and technology which is in need of replacing, and demands for defense against domestic insurgencies and hostility from neighboring countries. The strong growth in the industry is attracting foreign original equipment manufacturers (OEMs) and leading companies from the domestic private sector to enter the market. Moreover, terrorism is leading to sharp increases in the defense budget and a shorter sales cycle, which offers an attractive market for defense manufacturers. The country is especially expected to demand unmanned combat aerial vehicles (UCAVs), advanced electronic warfare systems, combat systems, rocket and missile systems, fighter and trainer aircraft, stealth frigates, and submarines during the forecast period. In addition, its expenditure on IT and communications is expected to increase significantly, with a strong focus on enterprise applications, systems integration, and real-time mobile communications. The country relies upon imports to procure defense equipment with advanced technology, and, since most of the equipment India is seeking use advanced technology, there will be a significant prospect for foreign OEMs to enter the Indian defense market. The Indian homeland security budget reached US$5.8 billion in 2010 Government spending on India's homeland security market has increased significantly as a result of terrorist attacks, the smuggling of arms and explosives, and domestic insurgency. In 2010, the country's homeland security budget registered an increase of 12.8% over the previous year, with the Central Reserve Police Force (CRPF) receiving the largest share of the budget. Due to the nature of the security threats which the country faces, the main opportunities for growth in homeland security are expected in the aviation, mass transportation and maritime security markets. Following the increase in both domestic and foreign terrorist attacks, spending is expected to increase in surveillance technology, global positioning systems, radars and biometric systems. Russia is the largest arms supplier to India India is one the world‟s largest importers of military hardware, with an estimated import spending of over US$9 billion in 2009–2010. The country relies on imports to meet 70% of its defense requirements, with the remaining 30% met through domestic companies, of which the public sector fulfills 21% and the private sector fulfills 9% of the defense procurement requirements.

During the review period, Indian defense procurement policy has seen a strategic shift from Russia in favor of Israel and the US. There are other countries entering the market however, Russia is expected to dominate the arms market of India. The improving bilateral ties with US have led to the strengthening presence of American OEMs in the country. During forecast period, Israel and the US are expected to further strengthen their marketpositions, reducing the market share of Russian and other European suppliers such as the UK, Germany and France. Foreign OEMs are participating in joint ventures in order to enter the Indian defense industry Despite the country‟s foreign direct investment (FDI) limit of 26%, the number of foreign companies entering the Indian defense industry through joint ventures has increased. An outlook of steady growth is driving foreign OEMs to change their strategy in order to adopt a long-term market view. The primary focus of these companies is to establish a presence in the market to enable them to take advantage of opportunities as they arise in future years. In addition to this, foreign OEMs are setting up export and outsourcing bases that can cater to global markets in the future. Restricted FDI, lack of transparency and bureaucracy are the key challenges for the industry Despite expanding opportunities in the Indian defense industry, the government‟s comparatively strict regulatory regime poses challenges for foreign investors who are keen to enter the country. With an FDI limit of just 26%, foreign OEMs are unwilling to extend sensitive technologies to their Indian joint venture partners. The critical area of concern is the offsets in defense, which have been placed at 30%, and in some cases, such as in the development of Medium Multi-Role Combat Aircraft (MMRCA), offsets rise to 50%.

Managing their offset obligations will continue to be the biggest challenge for foreign companies, especially due to the restricted FDI limit. However, the recent changes in offset policy indicate that the regulatory regime may ease during the forecast period, making the Indian defense market more competitive. With continued pressure on the government from Indian industry bodies and key corporate companies, the FDI limit as part of joint ventures is expected to increase to 49% during the forecast period.

In the Indian defense budget the army receives the largest share of the total defense budget expenditure. The main reason for the army‟s large budget allocation is the large size of the army. During the review period, the army was allocated an average of 50% of the total defense budget, while the air force which was allocated 26%, the navy was allocated 17%, and the of the department of defense production and research and development received 7% of the total defense budget. During the forecast period, the army is expected to receive the largest allocation of the Indian defense budget. The average allocation for army is expected to be 49% of the total defense budget in India. The expenditure for army, which is estimated at US$18.5 billion in 2011, is expected to grow at a CAGR of 12.46% over the forecast period, to reach US$33.2 billion by 2016. The total expenditure for army during the forecast period is estimated at US$149.8 billion. During the forecast period, the Indian air force is expected to receive an average allocation of 27% the Indian defense budget. The expenditure for air force is estimated at US$10.3 billion in 2011, and is projected to grow at a CAGR of 12.18% over the forecast period, to reach US$18.3 billion by 2016. The total expenditure for air force during the forecast period is estimated at US$82.7 billion. During the forecast period, the navy is expected to continue receiving an average allocation of 17% the Indian defense budget. The expenditure for navy is expecting to reach at US$5.6 billion in 2011. Naval expenditure is expected to grow at a CAGR of 15.40% over the forecast period, to reach US$11.5 billion by 2016. The total expenditure for navy is estimated at US$51.2 billion during the forecast period. While the US and China dominate the global defense industry with defense budgets of US$722 billion and US$78 billion respectively in 2010, India maintains significant presence in the international arms market. The Indian defense budget is expected to grow at a CAGR of 13.08% during the forecast period and, as a result, it will surpass the defense expenditure of Germany and Saudi Arabia. The Indian defense budget is expected to value US$68 billion by 2016. During the review period, Russia dominated the Indian defense market by providing the largest share of the country‟s defense imports. Russia accounted for 80% of the total defense market in India, while the UK accounted for 6% of the total arms market in India during the review period. By 2010, the import market share of Russia increased to 85% and the market share of UK reduced to 4%. Other countries which cater to Indian market for arms are Israel, France, Uzbekistan, Germany and US. Russia is expected to continue to dominate the Indian arms market during the forecast period. However, Russia‟s import share is expected to decrease as Israel and the US are expected to delivery more imports to India.

Prof.R.C.Sharma is no more

Prof. R.C.Sharma is no more

Prof.R.C Sharma was Professor and Head,Department of Management and Dean ,School of Commerce and Management,Central University of Rajasthan,Kishangarh (Ajmer).He remained Prof and Head,School of Future Studies and Planning,Dean ,Manangement Studies,Devi Ahilya University,Indore, and also worked as VC for sometime.He did Ph.D in Econometrics which was awarded by Prof.K.L.Krishna in 1990-91.He guided 14 Ph.D scholars and published 42 research papers.He completed 4 research projects , namely, CSIR-PI,UGC-PL,World Bank and UGC-CO-PI respectively. He has organised many conferences, seminars, workshops, FDP,MDP,apart from attending as resource person.In 2000 and 2011,he organised the annual conference of TIES at Indore.

He was a man of excellence and cooperating.He has edited a book on selected papers of the conference at Central University of Rajasthan on econometrics application in management entitled ,"Econometric Applications in Management" jointly with Dr.S.K.Garg-of Central University of Rajasthan.This effort is extra-ordinary because he finished the work of publication of the book containing accepted papers and distributed the volume in the conference to all authors.I am fortunate among one of them and praised this effort in the valedictory session and all the participants admire this work.

 I had a good and personal relation with him as an academician who inspired me a lot.

INDIAN RAILWAY BUDGET 2014-15

HIGHLIGHTS OF RAILWAY BUDGET 2014-15

* No new increase in passenger fares and freight charges

* Bullet train in Mumbai-Ahmedabad sector

* Diamond quadrilateral for high speed trains

* Plan to hike speed of trains to 160-200 km/hr in 9 sectors

* Online booking to support 7,200 tickets per minute; to allow 1.2 lakh users log in simultaneously

* Reservation system to be revamped, ticket-booking through mobile phones, post offices to be popularised

* Online platform for unreserved tickets

* Combo parking-platform tickets at stations

* Women RPF Constables to escort ladies coaches; 4,000 women constables to be inducted

* Retiring room facility to be extended to all stations

* Battery operated cars for differently-abled and senior citizens at major stations

* Feedback services through IVRS on quality of food

* Food can be ordered through SMS, phone; Food courts at major stations

* Cleanliness budget up by 40 per cent over last year

* CCTVs to be used at stations for monitoring cleanliness

* Setting up of corpus fund for stations’ upkeep; RO drinking water in some stations and trains

* Automatic door closing in mainline and sub-urban coaches

* 58 new trains and extension of 11; 864 additional EMUs to be introduced in Mumbai over 2 years

* FDI in railway projects, except in operations

* FDI, domestic investments in rail infrastructure

* Office-on-Wheels: Internet & workstation facilities on select trains

* WiFi in A1, A category stations and in select trains

* Railways university for technical and non-technical subjects

* Some stations to be developed to international standards through PPP model

* Parcel traffic to be segregated to separate terminals to make passenger traffic unhindered

* Loss per passenger per kilometre up from 10 per cent in 2000-01 to 23 per cent in 2012-13

* Solar energy to be tapped at major stations

* Highest ever plan outlay of Rs. 65,455 crore for 2014-15

* Expenditure in 2014-15 pegged at Rs. 149,176 crore.

New Trains

Jansadharan Trains

i) Ahmedabad-Darbhanga Jansadharan Express via Surat

Ii Jaynagar-Mumbai Jansadharan Express

ii) Mumbai-Gorakhpur Jansadharan Express

iv) Saharasa-Anand Vihar Jansadharan Express via Motihari

v) Saharasa-Amritsar Jansadharan Express

Premium Trains

i) Mumbai Central-New Delhi Premium AC Express

ii) Shalimar-Chennai Premium AC Express

iii) Secunderabad-Hazrat Nizamuddin Premium AC Express 6

iv) Jaipur-Madurai Premium Express

v) Kamakhya-Bengaluru Premium Express

AC ExpressTrains

i) VijayawadaNewDelhiAPExpress (Daily)

ii) LokmanyaTilak(T)-Lucknow (Weekly)

iii) Nagpur-Pune (Weekly)

iv) Nagpur-Amritsar (Weekly)

v) Naharlagun-NewDelhi (Weekly)

vi) Nizamuddin-Pune (Weekly)

Express Trains

i) Ahmedabad-Patna Express (Weekly)via Varanasi

ii) Ahmedabad Chennai Express (Biweekly)via Vasai Road

iii) Bengaluru -Mangalore Express (Daily)

iv) Bengaluru -Shimoga Express (Biweekly)

v) Bandra(T)-Jaipur Express (Weekly) via Nagda, Kota

vi) Bidar-Mumbai Express (Weekly)

vii) Chhapra-Lucknow Express (Tri weekly) via Ballia, Ghazipur, Varanasi

viii) Ferozpur-Chandigarh Express (6 days a week)

ix) Guwahati-Naharlagun Intercity Express (Daily)

x) Guwahati-Murkongselek Intercity Express (Daily)

xi) Gorakhpur-Anand Vihar Express (Weekly)

xii) Hapa-Bilaspur Express (Weekly)via Nagpur

xiii) Hazur Saheb Nanded-Bikaner Express (Weekly)

xiv) Indore-Jammu Tawi Express (Weekly)

xv) Kamakhya-Katra Express (Weekly) via Darbhanga

xvi) Kanpur-Jammu Tawi Express (Biweekly)

xvii) Lokmanya Tilak(T)-Azamgarh Express (Weekly)

xviii) Mumbai_Kazipeth Express (Weekly) via Balharshah

xix) Mumbai-Palitana Express (Weekly)

xx) New Delhi Bhatinda Shatabdi Express (Biweekly)

xxi) New Delhi-Varanasi Express (Daily)

xxii) Paradeep-Howrah Express (Weekly)

xxiii) Paradeep-Visakhapatnam Express (Weekly)

xxiv) Rajkot-Rewa Express (Weekly)

xxv) Ramnagar-Agra Express (Weekly)

xxvi) Tatanagar Baiyyappanahali (Bengaluru) Express (Weekly)

xxvii) Visakhapatnam-Chennai Express (Weekly)

Passenger Trains

i) Bikaner-Rewari Passenger (Daily)

ii) Dharwad-Dandeli Passenger (Daily)via Alnavar

iii) Gorakhpur-Nautanwa Passenger (Daily)

iv) Guwahati-Mendipathar Passenger (Daily)

v) Hatia-Rourkela Passenger 7

vi) Byndoor-Kasaragod Passenger (Daily)

vii) Rangapara North-Rangiya Passenger (Daily)

viii) Yesvantpur-Tumkur Passenger (Daily)

MEMU services

i) Bengaluru-Ramanagaram 6 days a week (3 Pairs)

ii) Palwal-Delhi-Aligarh

DEMU services

i) Bengaluru-Neelmangala (Daily)

ii) Chhapra-Manduadih (6days a week) via Ballia

iii) Baramula-Banihal (Daily)

iv) Sambalpur-Rourkela (6 days a week)

v) Yesvantpur-Hosur (6 days a week)

Measures for improving Safety & Security· 

The railway minister has also taken steps to ensure safety and security of passengers. A total of 5,400 unmanned level crossings eleiminated – 2,310 by manning it and 3,090 by closure / merger / construction of ROBs or RUBs.

· Improved audio – visual warning to road users in advance of approaching trains.
· Induction of indigenously developed Train Collision Avoidance System
· Development of ‘crashworthy’ coaches
· In last five years, offering employment to over one lakh persons in Group C categories and to 1.6 lakh persons in erstwhile Group D categories.
· Provision of Vigilance Control Device in all locomotives

 Various measures to prevent fire incidents on trains –
Ø  Fire retardant materials
Ø  Multi-tier protection for electric circuits
Ø  Portable fire extinguishers in coaches
Ø  Induction based cooking to replace LPG in pantry cars
Ø  Intensive checks against explosives and inflammable materials.

Financial Health·

Rail infrastructure by cost sharing arrangement with State Governments; Karnataka, Jharkhand, Maharashtra, Andhra Pradesh and Haryana agreed to several projects
·    Several Public Private Partnerships (PPP) projects are in the pipeline.
·    FDI being enabled to foster creation of world-class rail infrastructure.
·   Rail Land Development Authority raised Rs 937 crore so far.

Modernisation and Technology Induction·

The minister also announced that the government is working on the possibility of bringing High Speed Trains in the country.

-  Joint feasibility study by India and Japan for Mumbai – Ahmedabad Corridor to be co-financed by Japan International Cooperation Agency
-  Business Development Study by SNCF for Mumbai – Ahmedabad corridor.
-   Semi- High Speed Projects
-  Exploring low cost option of speeds 160- 200 kmph on select routes

- Trains will be equipped with wireless internet

- Future E-Ticketing to support 7200 tickets per minute & to allow 120,000 simultaneous users

Green Initiatives

The Railway Minister also announced government's plan to use green energy in the railways. The minister, while presenting the budget said that windmill and solar power plants will be set up with 40% subsidy from Ministry of New & Renewable Energy. Other initiatives to be taken by the government are:

- 200 Stations, rooftops of 26 buildings and 2,000 level crossing gates to be covered.
- Railways bagged 22 out of 112 awards given by the Government.
- ‘Green Curtains’ along the track close to major stations; Pilot work at Agra and Jaipur
- Coverage of Bio-toilets in 2,500 coaches and would be increased progressively.

Passenger Friendly Initiatives·

- Overwhelming public response to e-booking of ticket
-  On-line tracking of exact location and running of train movements
-  51 Jan-Ahaar outlets for Janta Meals ; 48 passenger escalators commisionsed at stations and 61 more being installed ; air-conditioned EMU services in Mumbai from July 2014 ; information display system in important trains to indicate stations & arrival time.
- ‘Upgradation’ scheme extended to AC Chair Car and Executive Chair car passengers.


Demand Management through Dynamic Pricing·         Premium AC Special train introduced in Delhi – Mumbai Sector with shorter advance reservation period and dynamically varying premium over tatkal fare



Enhancing Market Share·         Clearing missing links in Carrying Capacity + 8 tonne routes; freight train speeding ; upgradation of rolling stock ; increasing length of trains ; tariff and incentive schemes to encourage traffic to rail and minimizing empty running.

Rail Tariff Authority·         Independent Rail Tariff Authority set-up to advise on fixing of fares and freight, to engage all stake-holders

Information Technology·         Initiatives taken include – proliferation of cash accepting Automatic Ticket Vending Machines ; ticketing on mobile phones in unreserved segments ; system update on PNR status; online booking of retiring rooms at important stations ; online booking of meals for selected en-route stations ; introduction of e-forwarding note and electronic transmission of railway receipts for freight customers

Revenue Freight Traffic·         Loading target of 1047 Million Tonnes for 2013-14 would be surpassed
·         Empty Flow Discount Scheme to be implemented
·         Carrying Capacity + 9 tonne + 1 tonne routes being planned
·         Easing of some restrictions on movement of imported commodities through Containers
·         Carrying capacity of 20 feet containers increased by 4 tonnes
·         Parcel Terminals & Special Parcel Trains with scheduled timings.
·         New policy on parcels to encourage transportation of milk.
·         New concept of ‘hub and spoke’ for parcel business
·         Third party warehousing in Special Parcel Terminals envisaged.